Consent granted by the Government of the Republic of Slovenia to the Asset Management Annual Plan 2016 and Performance Criteria for State-Owned Enterprises
At the session held on 16 December 2015, the consent was granted by the Government of the Republic of Slovenia to the Asset Management Annual Plan 2016 which had been prepared by SSH in accordance with ZSDH-1 on the basis of State Assets Management Strategy ("the Strategy"). The Plain defines detailed goals to be achieved by SSH in the management of individual assets, together with measures and policies for attaining these goals. In addition, the forecast cash flows from the management of assets owned by SSH and the Republic of Slovenia are also determined. The Asset Management Annual Plan is composed of the General Section and the Special Section. The General Section includes general pieces of information and guidelines in connection with the asset management plan, the fundamental goals in asset management and premises for determining measures and actions for attaining goals and additional goals determined in the Strategy and the forecast cash flows from the management of assets. The Special Section presents all companies from the RS's and SSH's portfolios by stating their strategic goals, economic and financial indicators and SSH's asset management objectives.
Marko Jazbec, the President of the Management Board, said "We are glad that the consent was granted to SSH by the Government of the Republic of Slovenia before the end of the year so that activities for the disposition of the most important assets may be initiated right away." In the future, the main focus will be placed on asset management and on attaining target returns on equity for the RS's and SSH's portfolios. Mr Jazbec added: " Slovenian Sovereign Holding will act as a determined and demanding owner. The focus on active management of capital assets and allocation of resources and energy into factors resulting in the highest value for owners of capital assets will be of key importance. Our common goal is to increase a relatively good profitability levels obtained by assets in the ownership of SSH and to significantly increase returns on equity of capital assets owned by RS and to gradually follow and get in line with the ambitious goals set in the State Assets Management Strategy«.
The list of portfolio assets held for sale is also determined in the Asset Management Annual Plan for 2016. For some, the process of sale has already been initiated, and for some, this process will be started next year. The most important assets allocated for sale include: NLB, Adria Airways, Cimos, Geoplin, Hit, KDD, MLM, Paloma, Peko, Polzela and Unior Zreče. A detailed list is presented in the attached General Section of the Asset Management Annual Report (currently in Slovenian).
Likewise, the consent was granted by the Government of the Republic of Slovenia to the Performance Criteria for State-Owned Enterprises. This is a legal document of SSH being one of shareholders, and the legal document of a representative of the state acting in the role of a shareholder in SOEs in which the criteria (ratios) are defined by way of which the performance of SOEs will be monitored by SSH. The aim of performance criteria is not only to measure past performance results but, by means of determining realistic yet ambitions goals, establish the expectations of the state as the owner of assets and contribute to the increase in the business performance of SOEs. Slovenian Sovereign Holding will adopt individual corporate decisions in light of how SOEs will attain the goals set.
By adopting the above mentioned documents, the corporate governance system for state-owned enterprises which also includes State Assets Management Strategy, Corporate Governance Code and Assets Management Policy has thus been established. This will enable full focus to be placed on the supervision and the implementation of the corporate governance system and best practices at the level of SOEs, together with the supervision over SOE's performance results.
Performance Criteria for State-Owned Enterprises (in Slovenian)