News 15. 1. 2019

The Government of the Republic of Slovenia grants its consent to the Annual Asset Management Plan 2019 and to SOEs Performance Criteria

At its session of 10 January 2019, the Government of the Republic of Slovenia granted its consent to the Annual Asset Management Plan 2019 ("AMAP") and to the SOEs Performance Criteria ("Performance Criteria")

AMAP defines detailed goals SSH has to achieve in the management of assets owned by SSH, and of assets owned by the Republic of Slovenia ("RS") but managed by SSH. The said AMAP is composed of the General Section which is public and of the Special Section which includes a plan for asset management presented for each asset separately. Such plan defines in detail asset management goals and key criteria for measuring the performance in attaining the management objectives, together with policies and specific measures for attaining goals.

The Special Section also states the expected cash flows arising from the management of capital assets.

In terms of its content, the Performance Criteria, in which ratios are defined for measuring the performance of SOEs, is a document which is linked with AMAP. Significant amendments refer to new measures having been introduced for Gen energija, HSE, Plinhold and Koto.  Some measures were withdrawn since companies are not under SSH's management any longer (DRI) or since they are financed by the budget (Infra) or they stop to be reasonable for other reasons (PS za avto d. o. o.).

ROE estimate for the portfolio of companies owned by RS and SSH for 2018 and ROE outlook for 2019

The Annual Report - Management of Capital Assets of RS and SSH for 2017, submitted by SSH to the Parliament in October 2018, shows that both the total value of capital assets owned by RS and SSH (raising from EUR 10,4 billion in 2016 to EUR 10,9 billion in 2017) and the total return on equity (ROE) of these companies (from 6% in 2016 to 6.5% in 2017), in addition to the amount of dividend pay-outs (EUR 487,3 million), have increased in 2017.

In the future, expectations and target return on equity ratios as well as the amount of dividend pay-outs to be received by the budget will have to be adapted to a modified structure of asset portfolio under management. Sales process of banks, implemented and planned, will have a negative impact to the portfolio's ROE and to the amount of dividends received by the RS's budget since in the last two years both banks, NLB and Abanka, presenting a significant portion of the weight in the said calculation (approximately one fifth of the value of the total portfolio of capital assets), paid high dividends and achieved high ROEs. Other assets in the portfolio defined as strategic will not be able to compensate for these differences, therefore it is not realistic to expect ROE indicator to grow, neither is further increase in dividend pay-outs expected as the dividend income in 2018 was the result of two significant one-off payments (by NLB and by Telekom Slovenije). Further on, the main goal for strategic assets is not only achieving the suitable return on equity, but, first and foremost, the satisfaction of national strategic goals as set for an individual company.

It is assessed that in 2018, ROE achieved by RS and SSH portfolios will stand at 5.8%; in this regard the two pillars representing the Financial Sector and Tourism and Economy will achieve a significantly higher level of ROE, specifically 8.7%, but their weight in the portfolio is lower than the weight represented by the Energy Sector (its ROE is expected to reach 3.3%) and by Transport (its ROE is expected to stand at 5.5%). The target ROE planned for total RS and SSH portfolio in 2019 is expected to raise as compared to 2018, specifically to 6.2 %, with increase in ROE expected to occur in the following two pillars: Energy and Tourism and Economy.

If the above stated data are shown according to the classification criteria, it can be expected that in 2018, strategic assets, holding as much as 67.4% of the weight in the portfolio, will achieve ROE of 4.5%,  important assets will achieve ROE of 11.2% (their weight in the portfolio presents only 22%) and portfolio assets will achieve ROE of 7.8% (they hold a 10.6% weight in the total portfolio).  For 2019 it is expected that strategic assets will achieve ROE of 5.4%, important assets will achieve ROE of 10.4% and portfolio assets will achieve ROE of 8.4%.

It is estimated that dividend income for 2019 will amount to EUR 203 million for RS and EUR 39 million for SSH.


Sale of capital assets in 2019

An indicative review of state-owned enterprises for which activities have been planned to be taken in 2019 aiming at their sale is presented below.



RS ownership stake* (%)

SSHS ownership stake* (%)






















KDD D.D.**



NLB D.D.****



M1 D.D.***










*Amendments to ZIS needs to be made prior to the sale kick-off or prior to its closure.

**The Sale and Purchase Agreement has been concluded which will be realized after conditions precedent are satisfied.

***Shareholdings are held in a company but they are rounded up to two decimal places.

**** The sale of 10% ownership stake in NLB will be realised by the end of 2019.


In cooperation with financial and legal advisers, SSH is pursuing activities in connection with the sale of Abanka shares, and the sale of 10%-stake in NLB minus 1 share is planned to be realised by the end of 2019, in accordance with commitments given to the European Commission. The decision with regard to the time schedule of this sale will be made by taking into account several factors and in consideration of restrictions given in the Prospectus for the IPO of NLB shares.


In 2019, activities in connection with the sale of capital assets will continue for all remaining capital assets held by RS and SSH and being classified under the group of portfolio assets, when, subject to the following circumstances - operations of these companies, market conditions and business environment and other factors - it is assessed that it is reasonable to launch the above mentioned activities.

The Annual Asset Management Plan for 2019



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