News 24. 4. 2020

SSH Group and SSH Annual Report for 2019 Has Been Published

Pursuant to the provisions of the Financial Instruments Market Act, Rules of Ljubljana Stock Exchange, and applicable legislation, Slovenian Sovereign Holding has published the SSH Group and SSH Annual Report for 2019.

The SSH Group and SSH Annual Report for 2019 was approved by the Supervisory Board of the Slovenian Sovereign Holding on its regular session which took place on Wednesday, 22 April 2019. 

Profit or loss before taxes, generated by SSH in 2019, amounted to EUR 2.2 million. The operating result was significantly affected by the creation of provisions for denationalisation, which amounted to EUR 37 million, and deferred taxes. As a result of the free-of-charge transfer of strategic and important assets to RS, which is envisaged to take place by the end of 2020, in accordance with the provisions of ZSOS-C, no capital gains, which would otherwise be realised by the sale of services in the market, will be created which is why deferred tax liabilities and deferred tax assets will be reversed in the part that refers to the transfer of assets. Considering all of the above stated, the net profit or loss for 2019 is negative with the loss amounting to EUR 16.6 million. 

SSH continues to participate actively in denationalisation proceedings, mainly dealing only with the most complex cases for the past years, and regularly satisfies it liabilities arising from denationalisation. The most important source of funds to cover the SSH denationalisation liabilities in 2019 was the payout of dividends of companies owned by SSH. 

Sound performance of companies from the RS and SSH portfolio, favourable economic climate and active governance have contributed to successful performance of RS and SSH portfolio in 2019, exceeding targeted values.

The first estimates in regard to the operations of companies under SSH's corporate governance in 2019 show that the return of equity (ROE) of the portfolio of companies owned by RS and SSH will amount to a high 6.8% and 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, the proportion of the Financial Pillar in the SSH portfolio, as well as the proportion of important and portfolio asset, has significantly decreased for the benefit of higher proportion of strategic assets which, as a rule, achieve lower ROE figures duo to their strategic nature and their objective to attain the strategic goals of the state (the SSH portfolio of assets holds 77.3% of strategic assets as at 31 December 2019). 

Dividend income received by RS and SSH and paid out by companies from the RS and SSH’s portfolio in 2019 amounted to EUR 252.9 million; this amount also exceeds the sum planned in AAMP which stands at EUR 242.6 million.

More detailed information regarding the performance results related to RS' and SSH' capital assets will be presented in the Annual Report - Management of Capital Assets of RS and SSH, on the basis of the audited financial statements of 2019 of all portfolio companies.


Attachment: SSH Group and SSH Annual Report for 2019

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