SSH Group and SSH Annual Report for 2022 Has Been Published
The operations of SSH in 2022 were successful. The net operating income amounted to EUR 66 million, with the most significant revenue coming from dividends totalling EUR 60 million. The consolidated net operating income of the SSH Group, including the Sava Group of companies, amounted to EUR 128.4 million in 2022. Out of this figure, EUR 43.4 million is related to a one-time effect upon the first inclusion of the Sava Group in the consolidated financial statements.
SSH continues to actively engage in the denationalization process, focusing mainly on the most challenging cases in the recent years, and regularly satisfies it liabilities arising from denationalisation. In 2022, EUR 889,000 in denationalization compensation was paid, with 182 denationalization claims still open at the end of the year.
The return on equity (ROE) for the entire portfolio of capital assets under management considerably decreased in 2022 compared to 2021, primarily due to poor results from energy companies, and it amounted to 2.8%. Other asset management pillars showed better results than in the previous year, with ROE for companies excluding the Energy pillar (covering companies from the pillars of “Transport”, “Finance”, “Economy and Tourism”) reaching 7.4%.
In 2022, dividend payments by the companies in the SSH's management portfolio totalled EUR 190.7 million, of which the Republic of Slovenia (and ZPIZ) received EUR 130.7 million and SSH EUR 60.0 million, a total increase of 4.3% over the planned amount (EUR 182.8).
The total book value of equity stakes in the portfolio managed by SSH amounted to EUR 11.2 billion at the end of 2022, which is an increase compared to the end of 2021 (EUR 10.3 billion).
Following the merger with BAMC, SSH gained two new activities: claim management and tangible assets management. The aim in managing these assets is to increase their value through appropriate management activities and achieve the proceeds planned. At the end of 2022, the fair value of financial claims acquired through the merger was EUR 225.2 million, while the book value of tangible assets, mostly consisting of real estate, was EUR 106.2 million, with an estimated market value of EUR 161.4 million.
Highlights of 2022
At the end of February 2022, SSH exercised its pre-emption right to purchase a 43.226% ownership stake in Sava, d. d. from York Global Finance Offshore BDH, Luxembourg. The pre-emption right was exercised jointly with KAD (Kapitalska družba), and SSH acquired York's ownership stake in Sava for EUR 32.01 million, becoming a 61.91% owner of Sava, d. d. The transaction was concluded in September 2022, and since then, Sava, d. d., or the Sava Group, has been included in the consolidated financial statements of the SSH Group.
In mid-2022, strong efforts were made to merge Bank Asset Management Company (BAMC) with SSH. The merger was successfully completed at the end of December. The fundamental guiding principle of the merger was to create a united organization which would bring together the best from both companies and enable the integration of teams, processes, culture, and values.
Enhanced development of corporate governance
Improvements were made at both the level of SSH’s own operations, mainly through changes in the SSH Asset Management Policy and other internal policies and regulations due to the merger with BAMC, and at the level of companies through amendments to the Corporate Governance Code, SSH Recommendations and Expectations, as well as the objectives of the Annual Asset Management Plan for 2022. Numerous recommendations and expectations also pertain to the sustainable business practices of companies. In 2023, SSH further reinforced its commitment to sustainable business by incorporating additional measures within a comprehensive overhaul its internal policies and regulations.