1. Performance of Slovenian State-owned enterprises compared to regional peers Peter Pontuch DG Economic and Financial Affairs European Commission International Conference, 17 March 2015, Ljubljana

2. Background 2  The objective is to study the association between company ownership and performance.  Focus on around 2,900 State-controlled companies from eight CEE countries (>25% ownership).  Describe differences in financial indicators of SOEs against regional peers' SOEs in the same industry.

3. SOEs represent a relatively larger share of the corporate sector in Slovenia 3 Share of State-owned firms in sector value added, 2013 (%, based on available ORBIS data)

4. Slovenian SOEs are among the less profitable ones 4 Return on equity (ROE) of State-owned firms in selected industries, 2013 (%)

5. Their generally high indebtedness… 5 Debt to EBITDA ratio of State-owned firms in selected industries, 2013 (multiple)

6. … is in some industries accompanied by low liquidity 6 Current assets to current liabilities ratio of State-owned firms in selected industries, 2013 (pp.)

7. While investment into non-core assets particularly affects Slovenian SOEs 7 Other fixed assets as a share of total assets of State-owned firms in selected industries, 2013 (%)

8. Conclusion 8  Slovenian SOEs show generally weaker financial performance in a regional comparison.  These results are also confirmed if one compares Slovenian SOEs against their domestic private peers.  Possible causes and factors  Governance, financing, skills, technology transfers…

9. Thank you!