The Government of the Republic of Slovenia grants its consent to the Asset Management Annual Plan 2020 and to SOEs Performance Criteria
Ljubljana, 6 February 2020 - At its session of 6 February 2020, the Government of the Republic of Slovenia granted its consent to the Annual Asset Management Plan 2020 ("AAMP") and to the SOEs Performance Criteria ("Performance Criteria"). The plan for the consolidation and restructuring of the state-owned tourism companies is an integral part of the Special Section of the AAMP and has been prepared by SSH in line with the Strategy for Sustainable Growth of Slovenian Tourism ("Tourism Strategy").
The adoption of these documents is of key importance for SSH as the central ownership entity of state assets, as it provides the basis for carrying out its activities, it clearly states the owner's expectations for 2020 and enables SSH to track the goals set for 2020.
ROE estimate for 2019 and ROE outlook for 2020 for the portfolio of companies owned by RS and SSH
The first estimates in regard to the operational performance of companies under SSH's management in 2019 show that the return of equity (ROE) of the portfolio of companies owned by RS and SSH will exceed the target value of 6.2% that was set in AAMP 2019. It is expected that the above mentioned target, which has been set at the same level as in 2018, will be exceeded in spite of significant changes to the structure of the portfolio under SSH management. The fact is that, following the sale of banks, in the SSH portfolio, the proportion of the Financial Pillar, as well as the proportion of important and portfolio assets, has significantly decreased for the benefit of the higher proportion of strategic assets which, as a rule, achieve lower ROE figures duo to their strategic nature and their objective to attain strategic goals of the state (the SSH portfolio of assets holds 82% of strategic assets). The target ROE for 2020, taking into account the portfolio structure and changes arising from the regulations, is set at 5.9 %.
The dividend income to be received in 2020 (for the financial year of 2019) is anticipated to reach the total amount of EUR 142.4 million.
The total of book-value of assets owned by RS and SSH as at 30 September 2019 amounted to EUR 9.9 million.
Consolidation and restructuring of state tourism companies
Important measures for achieving goals set in the Tourism Strategy include a single management of state tourism companies, the consolidation of state ownership in tourism companies and their restructuring. As regards tourism, AAMP envisages the consolidation and restructuring of the state tourism portfolio to take place in several phases.
The main goals that SSH wishes to achieve by realising the plan for the consolidation and restructuring of state tourism companies are firstly, the increase in the value of state-owned tourism portfolio and in the value of the portfolio's ROE, and secondly, further development of tourism activities, in accordance with the Strategy Tourism.
The state-owned tourism portfolio represents and important part of the Slovenian tourism thus, the realisation of the plan will positively affect the development of the entire industry.
The support and the cooperation of all state stakeholders involved, and active participation of state-owned tourism companies along with their readiness to change will play an important role for the plan to be successful in order to increase the value of the state-owned tourism portfolio.
About the adopted documents:
AAMP is one of SSH's four key documents on asset management. It defines detailed goals SSH is set to achieve in the management of assets owned by SSH and of assets owned by 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 document also includes the chapter on tourism industry which makes it possible for activities implementing the Tourism Strategy to be carried out. The Special Section also states the expected cash flows arising from the management of assets. AAMP has been prepared for all significant assets in the SSH portfolio.
In terms of its content, the Performance Criteria, which defines ratios for measuring the performance of SOEs, is a document which is linked to AAMP. The Performance Criteria are regularly updated and supplemented in order to adapt the monitoring of companies' performance to special characteristics of their operations and in some cases to align the method for calculating indicators with the calculation method used by companies. In this manner, it will be easier and more reliable for SSH to oversee the operational performance of companies and the progress they achieve and to better plan future values of indicators.
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