News 25. 4. 2019

Annual Report - SSH Group and SSH for 2018 Has Been Published

Slovenian Sovereign Holding has published the Annual Report of SSH Group and SSH for 2018, pursuant to the provisions of the Financial Instruments Market Act, the Rules of Ljubljana Stock Exchange, and applicable legislation.

On its regular session, taking place on Wednesday, 24 April 2018, the Slovenian Sovereign Holding's Supervisory Board endorsed the Annual Report of SSH Group and SSH for 2018.

Slovenian Sovereign Holding was successful in 2018: the operating profit and loss before taxes amounted to EUR 44.9 million, and following the deduction for deferred taxes, net profit and loss for the reported period amounted to EUR 43.1 million. The result generated is higher than in 2017 mainly due to reservations formed in that year with the purpose of satisfying denationalisation liabilities.

There was a EUR 59.7 million income generated, of which 77.4 % was attributed to financial income. The most significant revenue was the dividend income, however, due to the transfer of capital assets to RS (at the end of 2017), dividends are lower by approximately 12% as compared to 2017. Expenditure amounted to EUR 14,8 million. Operating expenses in 2018 were significantly higher as compared to the preceding period mainly due to costs incurred in the processes for the sale of capital assets although operating income was higher for the same reason – these costs are reimbursed by RS. Interest expenses decreased compared to the preceding period since all liabilities to commercial banks had been settled by SSH.

SSH continues to actively participate in denationalisation proceedings, now mainly dealing only with the most complex cases. On behalf of and for the account of the Republic of Slovenia, SSH also settles liabilities under the following laws: ZPOZ, ZIOOZP and ZVVJTO. SSH provided cash for the coverage of its liabilities mainly with matured deposits and repayments by RS. The most important source of funds to cover the SSH denationalisation liabilities in 2018 was the pay-out of dividends of companies owned by SSH. SSH decreased its debt in the total amount of EUR 5 million and decreased its financial liabilities to EUR 100 million, representing the debt issued with the SOS3 bond.

Management of SSH and RS capital assets in 2018

At the level of the portfolio, recording a 6.5% ROE, 2017 was the most successful year since the introduction of the centralised system of asset management, and the first estimates for 2018 show that in spite of a modified portfolio (the sale of the equity stake in NLB), a 6.3% ROE is expected to be achieved, thus the goal set in AAMP 2018 will presumably be exceeded. The total of EUR 266.8 million of "regular" dividends arising from the ownership of SSH and RS capital assets were collected in 2018 (for FY 2017). If "additional" dividends by Telekom Slovenije and Nova Ljubljanska banka (NLB), considered as one-off events, are taken into account, the total amount of all dividends collected amounts to a sum of EUR 487.3 million (EUR 259,7 million for FY 2016).

The final results with regard to the management of capital assets of RS and SSH will be presented in the Annual Report - Management of Capital Assets of RS and SSH 2018, on the basis of the audited financial statements for 2018 of all portfolio companies.


*English version of the Annual Report will be published in May.


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