SSH Group and SSH Annual Report 2017 Has Been Published
Slovenian Sovereign Holding has published the SSH Group and SSH Annual Report 2017, pursuant to Financial Instruments Market Act, Rules of Ljubljana Stock Exchange, and other applicable legislation.
On its regular session, taking place on Wednesday, 25 April 2018, the Slovenian Sovereign Holding's Supervisory Board gave its approval to the SSH Group and SSH Annual Report 2017.
Slovenian Sovereign Holding was successful in 2017 - its operating profit and loss before taxes amounted to EUR 37.54 million, and following the deduction for deferred taxes, net profit and loss for the reported period stood at EUR 31.95 million. The result is lower than in 2016 mainly due to newly formed reservations for denationalisation liabilities.
The business result was positively influenced by higher dividends and capital gains generated with the sale of shares in Paloma, Intertrade ITA and with the dissolution of Dekorativna.
There was a EUR 62.72 million of income generated, of which approximately 88.9 % amounted for financial income. Dividend income received was again the most significant revenue. Operating expenses amounted to EUR 20,98 million (of which reserves for denationalisation related liabilities totalled EUR 14,45 million), being lower than in 2016 mainly on account of having paid off its loans. Likewise, 2017 recorded no interest expenses for SOS2E bond which matured in 2016.
In 2017, SSH decreased its debt by the total amount of EUR 280 million which is EUR 80 million higher than the capital increase carried out at the end of 2016. The volume of financial debt is manageable, amounting to EUR 105 million at the end of 2017; SSH plans to further decrease its debt by additional EUR 5 million by the end of 2018.
At the end of 2017, SSH transferred free of charge one portion of SSH-owned capital assets to RS with the value of the transferred assets totalling EUR 200 million; further transfer of all strategic and important assets to RS is envisaged to take place by the end of 2020. In light of ZSOS (Slovenian Compensation Fund Act), the transfer of assets is justified by capital increase carried out in SSH and with the fact that denationalisation proceedings are soon going to terminate. After 2020, SSH will have at its disposal only assets classified as portfolio assets to be dedicated for the repayment of the remaining outstanding denationalisation liabilities.
The first estimates in regard to the operations of companies under SSH's management show that, in 2017, these companies will achieve ROE of 6.1%, exceeding the ROE indicator of 5.2 % as planned for 2017 by the Annual Asset Management Plan.
SSH supports the development and efficiency of operations of companies under its management, and, by means of its decisions made at General Meetings of Shareholders of companies, pursues a responsible approach to the dividend policy in terms of advocating a suitable balance between dividends and development needs of companies. From the aspect of dividends received, 2017 was a record-hitting year. In 2017, companies with direct RS's ownership stake, and managed by SSH, paid out dividends in the amount of EUR 211 million, which was by EUR 69 million or 49% more than in the preceding year. On account of the participation in the profit generated by companies in which SSH holds ownership stake, in 2017, SSH received dividend income amounting to EUR 46 million, or by EUR 2.1 million (4.8 %) more than in the preceding year.