SSH Group and SSH Annual Report for 2021 Has Been Published
The Supervisory Board of Slovenian Sovereign Holding approved the SSH Group and SSH Annual Report 2021 on its regular session which took place on Wednesday, 20 April 2022.
SSH’s operations were successful in 2021. The profit or loss before taxes amounted to EUR 45.1 million. As regards sales revenues, which totalled EUR 52.5 million, the most important income items include dividend income, income from the management of assets owned by the Republic of Slovenia, revalued operating income and interest income. The most important expenses mainly include labour costs, costs of services and reserves arising from denationalisation.
SDH exceeded its targets in 2021 for the management of RS and SSH capital assets. SSH actively monitored the impact of the epidemic in individual sectors and carried out a number of corporate governance activities. All companies in the SSH portfolio that manage critical infrastructure were able to ensure continuity of their operations and provide uninterrupted services at all times. The epidemic had a significant impact on the operations of some companies, particularly in the tourism and gambling sectors. Transport companies, some manufacturing companies and energy companies have also not yet achieved their pre-epidemic results in 2021 due to the effects of the crisis. The total book value of the equity holdings managed by SSH amounted to EUR 10.3 billion as at 31 December 2021. In 2021 (for FY 2020), dividend payments by the companies in the SSH's management portfolio totalled EUR 151.3 million, of which the RS (and ZPIZ) received EUR 111.5 million and SSH received EUR 39.8 million, a total increase of 15% over the planned amount. The return on equity (ROE) of the RS’ and SSH’ portfolio is currently estimated at 6.2%, which is 1.9 percentage points higher than the 2020 target and 2.0 percentage points higher than the 2021 target. The general recovery of the Slovenian economy, which has exceeded expectations, has contributed significantly to these results, while various anti-Covid measures have also had an impact.
The sum of EUR 23.5 million of denationalisation compensation was paid out. SSH continues to participate actively in the denationalisation proceedings, which for several years now mostly only include the most complex cases, and is fulfilling its obligations in this respect on an ongoing basis. On behalf and for the account of the Republic of Slovenia, SSH also pays compensation to beneficiaries under the two laws, ZSPOZ and ZIOOZP, and is regularly reimbursed from the budget for the funds paid.
Several projects have been implemented to strengthen sustainable business and corporate governance. Based on analyses of the remuneration arrangements and practices of selected European countries and a review of the remuneration arrangements and actual remuneration payments by the portfolio companies, SSH has formulated and adopted recommendations on a Remuneration Policy for Management Bodies. The one-year project ended in March 2022 with the publication of the document, which aims to regulate the remuneration of members of the management bodies of SOEs in a systematic and transparent manner, while it also addresses certain human resources risks, implements current trends and aims to contribute to more sustainable corporate business through the remuneration system.
Two other important asset management instruments, namely the SSH Asset Management Policy and the SSH Corporate Governance Code, were also supplemented. Based on the analysis of compliance with the SSH Code and the SSH Recommendations and Expectations in portfolio companies, SSH is preparing amendments and additions to the SSH Code in 2022; if necessary, the SSH Recommendations and Expectations will also be amended and supplemented.
In line with its competences, SSH has implemented the State's commitments as regards the transition to a low-carbon economy in the Annual Asset Management Plan 2022, where it has set out recommendations and concrete expectations for companies in relation to ESG factors. These endeavours will mark an important part of SSH’s activities in 2022.
Pursuing organisational and technological development of the Company is a constant task for SSH. SSH wants to be recognised as an exemplary, reliable, efficient and trustworthy financial institution. In 2021, SSH therefore continued to implement advanced technological and business solutions in the areas of information technology and corporate security, among others. The maturity level which SSH has reached will allow us to move forward and implement new solutions in the areas of digitalisation of operations and data management.
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 and consolidated financial statements for 2021 of all portfolio companies.