Report
Sašo Stanovnik

Slovenian Weekly Report 19.3.2018-23.3.2018

Petrol will embark on a pilot project with 5 stores in city centres in a month time where there will offer several products and service, but w/o petroleum products. It has to be noted Petrol sees future growth potential especially in merchandise sales (also due to digitalization) and in energy and environmental system projects in Slovenia and the region. Nevertheless these test stores seem an interesting project for an energy company to embark on. They see competitive advantage of their stores in
- Known brand (Fresh, Coffee to Go);
- Convenient location in city centre;
- Special mix of product/services – convenience products, coffee, food corner, ticket sale, sale of financial services.

Petrol Group strategic document (now target till 2020) is scheduled to be upgraded in June.

Statistic office reported 4Q17 real estate data. Positive real estate price dynamic continued. QoQ respective growths were 3.7% (total) , 9.4% (new) and 2.8% (existing) YoY. All in all 2017 dwelling prices increased by 10.0% YoY and with a record number of sales transactions achieved. The biggest growth in 2017 was achieved in newly built family houses (by 15.7%).
House price index is now at 116.1 given 2015 levels, with newly built dwellings index at 118.2 while existing dwellings at 115.7.

Underlyings
KD Holding d.d.

Kd Group DD. KD Group dd is a Slovenia-based holding company. It operates four segments, namely Insurance, Investment Fund Management, Banking Services, and Capital Investment and Real Estate. The Group is active in seven fields: property insurance, life insurance, health insurance, financial operations, banking services, capital investment and real estate, as well as fund management. As of December 31, 2011, the Company operated 33 subsidiaries, based in such countries as Slovenia, Romania, the Netherlands, Croatia, Cyprus, Serbia, Uzbekistan, Bosnia and Herzegovina, and British Virgin Islands. As of December 31, 2011, the Company was 70.36%-owned by KD dd. As of July 11, 2012, Factor bank dd acquired a 100% stake in the Company's subsidiary, KD Banka dd.

Petrol d.d.

Petrol Ljubljana. Petrol dd Ljubljana is a Slovenia-based company engaged in the provision of oil and other energy products. The Company operates through two segments, Oil and Merchandise sales and Energy activities. The Oil and Merchandise sales segment consists of sale of oil and petroleum products, and sale of supplementary merchandise comprised of automotive products, foodstuffs, accessories, tobacco, lottery products, coupons and cards. The Energy activities segment consists of sale and distribution of gas; generation, sale and distribution of electricity and heat; energy consumption projects and comprehensive energy supply projects, and environment activities. As of December 31, 2011, it operated a number of subsidiaries based in Slovenia, Austria, Bosnia and Herzegovina, Croatia, Serbia, Montenegro and Macedonia, among others. On February 11, 2013, the Company acquired a 51% stake in Instalacija doo. On May 10, 2013, the Company acquired a 100% stake in Nafta Geoterm doo.

Salus Ljubljana

Salus Ljubljana dd is a Slovenia-based company engaged in the wholesale and distribution of medical products. The Company's portfolio includes pharmaceuticals, medical devices, medical supplies, food supplements, cosmetic products and other health products. The Company's core clients are pharmacies, hospitals and health centers from both Slovenia and abroad. Moreover, Salus Ljubljana dd offers the products to its business partners through the Internet store. The Company also provides additional services related to the registration of medicines and the distribution and storage of pharmaceuticals and other medical products.

Provider
Alta Invest
Alta Invest

ALTA Invest, investicijske storitve, d.d., (ALTA Invest, investment services, Inc.) is a part of ALTA Group, the biggest financial non-banking group in Slovenia. ALTA Invest has around 28% market share on the domestic Ljubljana Stock Exchange and has more than EUR 95m of assets under management.

Our trading advantage is our execution of large trading blocks with low impact on the market. We offer trading on several platforms on numerous markets, with a wide variety of financial instruments. Our advantage is also a research department, which is both sell side and buy side and has the far most extensive and regular coverage of domestic companies. We cover 9 companies on Ljubljana Stock Exchange, which is around 90% of Mcap on LJSE – and here we are practically the only local broker providing this kind of extensive and regular coverage for Slovenian companies.

A part of ALTA Group are ALTA Skladi, a mutual fund asset management company with roughly EUR 260m of asset under management. ALTA Group is also extensively involved in corporate finance projects and raised considerable assets (fixed income and equity) in the last two years for several companies.

Analysts
Sašo Stanovnik

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