SSH Group and SSH Annual Report for 2020 Has Been Published
The SSH Group and SSH Annual Report 2020 was approved by the Supervisory Board of the Slovenian Sovereign Holding on its regular session which took place on Wednesday, 21 April 2021.
The profit or loss before taxes of SSH amounted to EUR 26.6 mio EUR; the profit of EUR 39.9 million was planned. The restrictions imposed by supervisory institutions resulted in the loss of EUR 19 million of the planned dividend income.
The output of the SSH’s management of the RS's and SSH's portfolios was significantly affected by the COVIDd-19 epidemic in 2020.
After the outbreak of the epidemic, SSH enhanced its asset management activities in the most important portfolio companies, and for a prolonged period of time, monitored closely all those companies which represent the critical infrastructure of Slovenia, particularly companies from the Energy and Transport sectors. SSH was also regularly informed of the assessments about the impact of the COVID-19 epidemic on the portfolio companies' operations, especially on their revenues, and monitored measures undertaken to protect employees' health and to ensure sufficient liquidity.
Profitable operations are expected to be achieve at the level of the total portfolio in 2020. The first estimates about the operations of companies from the portfolio managed by SSH show that the portfolio’s ROE is expected to stand at 4.3%, which is by 1.6 percentage point lower than planned by AAMP 2020. It has to be pointed out that the result does not include a one-off impact of the impairment of assets held by HSE due to TEŠ, neither one-off positive impacts recorded by NLB on account of its take-over of Komercijalna banka Beograd. Considering all of the above-mentioned items, ROE of the portfolio amounted to 2.2% in 2020.
According to the latest IMAD's forecast on the economic growth in Slovenia, the portfolio output show that, considering current circumstances, the operation of companies from the portfolio managed by SSH was relatively successful, in spite of an estimated drop in the ROE indicator. A fall in the ROE value was also negatively affected by certain regulatory modifications, such as, for example, amendments to the Legal Act on the methodology for determining the regulatory framework and network charges for the electricity distribution system. Otherwise, the effects of the COVID-19 crisis has had a different impact on the operation of individual companies. The companies from the SSH's portfolio which have been hit the most by the crisis include enterprises from the tourism and gaming industries, and companies from manufacturing and transport industry, whereas pharmaceutical and telecommunication industries have been the least impacted by COVID.
The total amount of dividends paid out to the Republic of Slovenia and SSH in 2020 (for the financial year of 2019) amounted to EUR 85.9 million (of which EUR 23.3 million was paid to SSH). The lower amount of dividends income, as compared to the target value, which was set at EUR 142.4 million in AAMP 2020, is the result of tighter business conditions. These, in turn, have been reflected in poorer performance results achieved by some companies in 2020 and in the worsening of their financial situation. The main reason for lower dividend income is the result of restrictions upon dividend pay-outs by banks and insurance companies which were imposed by supervisory institutions in 2020.
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 for 2020 of all portfolio companies.
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