Earlier today, Triglav and Sava Re published their view on the recommendation.

Earlier this morning, Slovenian insurers (Triglav and Sava Re) published an announcement on the Ljubljana Stock Exchange stating that they received a letter from the Slovenian Insurance Supervision Agency recommending that insurance, reinsurance and pension companies temporarily suspend dividend payments and refrain from making any irrevocable commitments to pay dividends. Through this temporarily measure, in force until 1 October 2020, the Insurance Supervision Agency believes insurance companies will increase their resilience to the financial shock resulting from the consequences of the COVID-19 epidemic, maintain financial stability and prevent any potential business disruptions.

TRIGLAV

In accordance with the requirement, the Management Board will take a position within three business days as well as transparently notify the shareholders and the general public. We will be updating you, as soon as Triglav publishes more information on the notice.

SAVA RE  

Although based on currently available information Sava Re estimates that it is capable of declaring dividends in line with its dividend policy and the proposed appropriation of distributable profit set out in its audited annual report 2019, the Sava Re management board will propose to the Company’s supervisory board that Sava Re follow the recommendation of the Insurance Supervision Agency in its entirety and that its notice of the 36th general meeting of shareholders be prepared in compliance with the measure of temporary suspension of dividend payments for 2019.

Due to a change in the composition of CROBEX, we decided to give you a brief overview of CROBEX components’ free float.

In our analysis we considered free float to equal all individual shareholdings lower than 5%, while pension funds and UCITS funds were considered as free float regardless of their shareholding percentage.

Free Float of CROBEX Constituents (%)

Among the 21 CROBEX components 7 have a free float higher than 50%, indicating that a small group of majority shareholders still holds the roughly two-thirds of CROBEX components. Of the constituents, Adris (preferred) stock tops the list with a free float of 93%, followed by Atlantska Plovidba with 81%. Podravka comes next with a free float of 78%.

On the other side, banks have the lowest free floats with PBZ having only 2%, as it is almost entirely owned by Intesa Sanpaolo (97%). ZABA, almost completely owned by Unicredit (84%), has the second-lowest free float of 3%.

It is worth noting that the Prime Market, which is the Stock Exchange’s most demanding market regarding the requirements set before the issuer, requires the issuer to have a free float of at least 35%. If we were to compare CROBEX to that parameter, seven companies would not meet the criteria.

In the FY 2019, the company recorded an increase in sales of 3.9%, increase in EBITDA of 5.9% and a decrease in net profit of 14.2%.

As Unior Group published their FY 2019 report, we are bringing you key takes from it. According to the report, the company reported sales of EUR 256.0m, representing an increase of 3.9% YoY or EUR 9.5m.

On an unconsolidated level, Unior d.d. generated EUR 175.4m in net sales, representing an increase of 1.7% YoY. Unior operates in the forgings industry, which supplies its products almost exclusively to the automotive industry. During the year, Unior was facing slightly lower order status, with orders decreasing significantly at the end of the year, especially in December. Consequently, they produced 1% YoY less of forgings. The sales structure has changed as the share of connecting rods has increased and the proportion of forged gears sold has decreased, while the share of sales to the two largest customers, VW and ZF, has decreased. The largest increase in revenue was witnessed on the mechanical engineering segment, where this year the dynamics and value of sales were completely different from the last year, rising by 37% (5% higher than planned) and have amounted to EUR 22.8m.

When observing operating expenses on a Group level, they amounted to EUR 246.5m (+1.7% or EUR 4.1m). Such an increase could mostly be attributed to higher service costs by EUR 3.0m , higher amortization (+EUR 2.1m) and higher employee expenses by EUR 1.3m. Operating income of the company increased by EUR 4.6m and grew 1.8% YoY which has resulted in growth of operating profitability.

Going further down the P&L, EBITDA amounted to 32.0m representing a solid increase of 5.9%. As a result, EBITDA margin stood at 12.5% (+0.24 p.p. YoY). Operating profit amounted to EUR 15.6m, showing an increase of 3.8% YoY.

Despite the solid top-line growth, the company recorded a decrease in net profit of 14.2%, amounting to EUR 10.4m. Such a result puts the profit margin at 4.1% (-0.9 p.p. YoY). The decrease came on the back of a lower net financial result by EUR 2.7m. Lower financial result was due to lower payment of profits from associated companies than in 2018 and due to additional expense for a commercial dispute in the amount of EUR 1m.

Turning our attention to CAPEX, the Group recorded new investment in fixed assets of EUR 20.5m in the FY 2019. Out of which EUR 3.2m in intangible assets, EUR 17.4m in tangible fixed assets. Investments in the metal industry have amounted to EUR 18.5m, while those in the tourism sector have totaled EUR 2.1m.

Board of Directors mandated Electrica’s representative in the GSM of the two companies within the Group to vote for the approval in principal of the merger through absorption between FISE and SEM and the participation of the companies to the merger, with FISE as absorbing company.

Electrica published an announcement on the Bucharest Stock Exchange stating that the company’s Board of Directors mandated Electrica’s representative in the GSM of the two energy services companies within Electrica Group to vote for the approval in principal of the merger through absorption between Filiala de Intretinere si Servicii Energetice Electrica Serv (FISE) and Servicii Energetice Muntenia (SEM) and the participation of the companies to the merger, with FISE as absorbing company. This approval in principal is in line with the strategy elaborated by Electrica Group for the period 2019-2023 and has as objective the increase in the efficiency of the two companies involved.  

The company notes that the merger through absorbtion of the two companies within Electrica Group would take place only in case Electrica’s Extraordinary GSM mandates Electrica’s representative in the Companies’ GSM to vote for the approval of the dissolution of the absorbed company.