SEK STANDS FIRM at a Time When Swedish Exports Are More Important Than Ever

ANNUAL REPORT LENDING SEK ensured that Swedish export companies had access to financing. PAGE 16 ADVISORY SERVICES The year 2008 was marked by companies’ requirements to free up liquidity, and by the needs of companies and countries to reduce energy consumption. PAGE 22 FUNDING Only the most trustworthy institutions had access to borrowing on good terms in 2008. SEK was one of the most trustworthy. PAGE 26 SEK STANDS FIRM at a time when Swedish exports are more important than ever SUSTAINABILITY REPORT 30 REPORT OF THE DIRECTORS 68 OUR OPERATIONS MORE COMPANIES USING CIRR As a result of the financial crisis, CIRR, or Commercial Interest Reference Rate, is increasingly being used by exporters. The financial crisis has made it more advantageous to borrow at the CIRR rate SEK – USMTN compared with market rates. LEADER IN 2008 READ MORE SEK was the largest foreign ON PAGE 15 issuer of U.S. medium-term notes on the U.S. market in 2008, issuing a total of USD 4.4 billion. READ MORE ON PAGE 15 SEK – Experts in International Financing 2 SEK ANNUAL REPORT 2008 OUR OPERATIONS Financing IN dollarS AND euroS In 2008 SEK Securities arranged two bond loans for Electrolux – one for USD 42 million and another for EUR 85 million. READ MORE ON PAGE 13 UniQue posiTion FOR SEK SEK is one of very few foreign institutions licensed to lend – and issue – in baht, the currency of Thailand. This offers unique opportunities to assist customers that want to invest in Thailand, such as Tetra Laval. READ MORE ON PAGE 11 PERMANENT CONNECTING PRESENCE 17,500 ISLANDS There are already 200 Ericsson has won a commis- Swedish companies sion to construct a nation- present in Singapore. wide network of mobile From 2009 SEK will telephone masts in Indonesia. have a permanent office Together with two commercial in the Asian metropolis. banks, SEK provided support READ MORE through a long-term loan of ON PAGE 14 Skr 1.7 billion. READ MORE ON PAGE 13 Exports are vital for Sweden’s economy. Business, however, needs more than just money on the international capital SEK’s mission is to ensure access to financing. Our advisors help build more markets. financial solutions for export and efficient organizations and contribute to SEK provides Swedish companies with infrastructure, on a commercial basis. the success of complex projects. a competitive advantage in the global The company promotes the develop- To further develop SEK’s ability to market. The world map above highlights ment of Swedish business and is support the Swedish export industry a few examples of deals that SEK has involved in finance both in Sweden and with financial solutions, in 2008 the been involved in and made possible in internationally. Swedish government and parliament 2008. On pages 10-15 you can read For over 45 years we have provided provided SEK with a substantial capital more about these and other SEK assign- the Swedish export industry with financ- contribution and significantly expanded ments during the year. You will also find ing. We offer customized, long-term SEK’s lending capacity. These decisions more information about SEK’s expanded and sustainable financial solutions for were made against the background of role and about SEK’s establishment of companies, the public sector, financial the global financial turmoil, which made a permanent office in Singapore, one of institutions and capital investors. it harder for companies to borrow the real hubs of Asian commerce. SEK ANNUAL REPORT 2008 3 FINANCIAL KEY RATIOS FINANCIAL HIGHLIGHTS 2008 2008 2007 Amounts (other than %) in mn USD 4) Skr Skr Results Operating profit (IFRS) 1) 23.9 185.2 497.0 Pre-tax return on equity (IFRS) 2) 3.9% 3.9% 11.4% After-tax return on equity (IFRS) 2) 2.8% 2.8% 8.2% Adjusted operating profit (Core Earnings) 3) 107.6 833.9 535.0 Pre-tax return on equity (Core Earnings) 2) 17.5% 17.5% 12.8% After-tax return on equity (Core Earnings) 2) 12.6% 12.6% 9.2% Customer operations New customer financial transactions 5) 8,370 64,890 56,826 of which offers for new credits accepted by borrowers 5) 8,203 63,591 53,143 Credits, outstanding and undisbursed 5) (6) 23,232 180,109 131,741 Borrowing New long-term borrowings 7) 13,391 86,136 107,970 Outstanding senior debt (IFRS) 39,918 309,468 269,452 Outstanding subordinated debt (IFRS) 429 3,324 2,837 Total assets (IFRS) 47,728 370,014 297,237 Capital Capital adequacy ratio, including Basel I based additional requirements 15.5% 9) 15.5% 9) 8.9% 9) Capital adequacy ratio, excluding Basel I based additional requirements 21.4% 8) 21.4% 8) 17.1% 8) Adjusted capital ratio adequacy, excluding Basel I based additional requirements 22.3% 8) 22.3% 8) 18.5% 8) References to and definitions of the Financial Highlights are included in Note 30. NEW LENDING NEW LONG-TERM BORROWINGS 2004–2008 (Skr bn) 2004–2008 (Skr bn) 70 120 65 60 100 55 50 45 80 40 35 60 30 25 40 20 15 10 20 5 0 0 2004 2005 2006 2007 2008 2004 2005 2006 2007 2008 4 SEK ANNUAL REPORT 2008 CONTENTS 2 OUR OPERATIONS 30 SUSTAINABILITY REPORT 68 REPORT OF THE DIRECTORS 36 Environmental Responsibility 73 Income Statements 4 FINANCIAL KEY RATIOS 39 Social Responsibility 74 Balance Sheets 43 Economic Responsibility 75 Statement of Recognized 6 STATEMENT BY Income and Expenses THE PRESIDENT 44 OWNER AND managemenT 76 Statement of Cash-flows 46 Board OF DIRECTORS AND 77 Capital Adequacy and Exposures AUDITORS 10 REVIEW 80 Notes 48 ManagemenT 108 Proposal for the Distribution of Profits CORPORATE Governance 16 LENDING 49 109 Auditors’ Report REPORT 22 advisory services 110 GRI REPORT 51 RISK REPORT 112 Assurance Report 52 Risk Management 26 FUNDING 54 Risk Overview 58 Basel II 63 Risk Data UNLESS OTHERWISE STATED, amounts in this report are in millions (mn) of Swedish PAPER: The cover of this annual report PRODUCTION krona (Skr), abbreviated “Skr mn”. The international code for the Swedish currency – SEK – is is printed on Galerie Art Silk 250 g and AND PRINT: not used in this report in order to avoid confusion with the same three-letter abbreviation that the inside pages are printed on Galerie Intellecta Infolog 2009 has been used to denote AB Svensk Exportkredit since the company was founded in 1962. Art Silk 150 g and Scandia 2000 100 g. Unless otherwise indicated, amounts stated relate to December 31, in the case of positions, and to the twelve-month period ended December 31, in the case of flows. Amounts within PHOTOGRAPHY: Janne Danielsson, parentheses refer to the same date or period, respectively, for the preceding year. Silver Dollar Pictures AB AB Svensk Exportkredit (SEK), Swedish corporate identity number 556084-0315, with its registered office in Stockholm, Sweden, is a public company as defined in the Swedish Compa- IMAGE AGENCIES: nies Act. In some instances, a public company is obliged to add ‘(publ)’ to its company name. Corbis/Scanpix/Masterfile/AGE: Richard T. Nowitz, Alexander Farnsworth, FOR MORE INFORMATION about SEK’s business operations, call our Communi- Mark Tomalty, Wojtek Buss. cations Department on +46 8 613 83 00. Gorilla/Folio. Johnér: Ulf Huett. SEK ANNUAL REPORT 2008 5 STATEMENT BY THE PRESIDENT SEK – Part of the Solution Over the past year SEK has played an important role in the Swedish economy. EVER BEFORE have Sweden’s between banks largely ceased. In addition, most economy and prosperity been so of the large international banks reduced their dependent on the export indus- activity on the Scandinavian market, making it try, and never has SEK’s role as much harder for Swedish export companies to a stable and trustworthy lender obtain long-term financing. A growing number Nto Swedish exporters been more important. In of companies therefore turned to SEK. Over 2008, the global financial crisis, whose impact the year, SEK was one of only a few institutions has been greater than most people originally that were able to provide long-term financing thought, led to an extreme liquidity shortage. despite the tough situation in the markets, and In many cases, this made it impossible for consequently was able to play an important companies, both large and small, to obtain vital role in defending the Swedish economy. For financing. For an economy like Sweden’s, the SEK, this has resulted in increased interest in export industry’s problems of obtaining capital SEK’s financing solutions, with the volume of are particularly serious. Sweden is a country that new financing solutions in 2008 amounting is highly dependent on exports, which account to Skr 65 billion, a 14 percent increase on the for more than half of our GDP. A lack of financing previous year and the highest volume in SEK’s for companies could seriously damage Swedish history. The higher volumes of course led to companies’ ability to compete internationally 2008 also being a successful year in terms of and lead to the Swedish export industry losing earnings. After write-downs totaling about Skr market share globally. A decline in our export 557 million, IFRS earnings amounted to Skr 185 industry has a harsh and immediate impact on million. The adjusted IFRS result – core earn- the Swedish real economy, resulting in increased ings – is, however, the result that provides the unemployment. best comparison with the accounting standards in place before the IFRS rules were implemented THE SITUATION IN the world’s capital markets in 2007. Core earnings for 2008 amounted to deteriorated significantly in mid-September Skr 834 million, which is the best result in SEK’s when the investment bank Lehman Brothers history.

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