Government-Owned Companies 2000
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Government-owned companies 2000 1 CONTENT Table of contents TABLES AND DIAGRAMS 4 PREFACE 5 Valuable corporations create valuable jobs 5 GOVERNMENT OWNERSHIP POLICY 6 The objective: to create value 6 Three ownership tools 7 Effective boards 7 Increased transparency 8 Core operations in sharper focus 8 Key policy issues for Government-owned companies 9 GOVERNMENT-OWNED COMPANIES IN 1999 12 Government ownership of listed corporations 26 Significant events in 1999 and early 2000 27 THE CORPORATIONS 32 Content and technical notes 33 63 companies from A-Banan to Zenit Shipping 34 DEFINITIONS 131 HISTORICAL NOTES 132 GOVERNMENT ORGANISATION FOR OWNERSHIP ADMINISTRATION 134 COMPANY CONTACTS AT THE GOVERNMENT OFFICES 137 KEY EXECUTIVES AND BOARD MEMBERS 138 ADDRESSES – CORPORATE UNITS 147 The English version has adjustements compared to the original printed Swedish version on pages 19, 61, 69 and 92. 3 TABLES AND DIAGRAMS Tables and diagrams Employees in Government-owned companies 12 Proportions of women and men in Government-owned companies, chart 12 Regional distribution of employees in Government-owned companies, chart and table 13 Revenues and earnings in Government-owned companies 15 The Government’s billion-kronor corporations in Sweden´s Top 500 corporations 16 Foreign activities of Government-owned companies 16 Government-owned companies by sector 17 Government-owned companies by sector, according to employee headcount, chart 17 Sector division of Government-owned companies according to Morgan Stanley Capital International (MSCI), list 17 Total assets and capital ratios of Government-owned financial institutions 18 Earnings generated by Government-owned financial institutions 18 Vacancies in Government-owned real estate corporations 18 Government-owned real estate corporations: revenues and earnings 18 Value-added, Government-owned companies 19 Net investments by Government-owned companies 19 Government-owned companies, by holding 20 Government-owned companies by principal 21 Government-owned companies by principal, April 2000, list 22 Corporations owned directly by the Government Offices, key figures, April 2000 23 Level of commercial activity, April 2000 25 Listed Government-owned companies as of 31 December 1998, 1999 and 20 July 2000 26 Government ownership of listed corporations from 1999 to Q2 2000, list 26 For each corporation you will find a table with key figures for 1995–1999. 4 PREFACE Valuable corporations create valuable jobs The Government is Sweden’s biggest corporate owner, they encounter competition from domestic and inter- with its ownership sphere employing over 200,000 peo- national sources. Competition will accentuate further, ple, harbouring very substantial values and encom- shadowing deregulation across Europe, a trend ampli- passing several of the country’s largest corporations. fied by the emergence of the IT society, where the Accordingly, the management of these enterprises is a entire production and distribution chain is rationalised vital issue for Sweden and her economy. Thus, the by the Internet, borders effectively disappear, goods and Government bears a significant responsibility to func- services are marketed globally, and threats are not tion as an active and professional owner. merely sourced from competitors nearby, but from This duty of active ownership implies the owner remote locations. declaring unequivocal objectives and guidelines for Obviously, such enormous realignment will have its corporations, monitoring and evaluating them. But the difficulties: adapting to a deregulated market is far Government’s overarching objective is that its corpora- from easy. But to maintain competitiveness, change is tions should create value. imperative, and the Government’s ambition is that Value creation is crucially significant because valu- Government-owned companies will be well positioned able corporations create valuable jobs, which are secure to benefit from this process. and stimulating for employees, where the individual can Over the year, a number of major changes occurred feel that he or she is exerting an influence on his or her in the Government corporate sphere: Celsius AB has work. Value creation also implies the imperative of the been divested, Telia AB has been floated on the stock corporations working for the long term, forging durable market, the Government acquired forest products cor- customer relationships and building trust as reliable, poration Sveaskog AB, while technical inspection com- competitively priced providers. pany SAQ Kontroll AB and central securities depository For corporations that serve specific societal interests Värdepapperscentralen VPC AB were divested. How- such as The Swedish Motor Vehicle Inspection Company ever, the Government takes a pragmatic view of whether and Swedish Alcohol Retailing Monopoly, Systembolaget it should own a particular enterprise. The Govern- AB, value creation implies the creation of values for ment’s intention remains to protect the interests of its society by satisfying specific objectives and through the assets, i.e. to be an active, long-term owner, and to con- efficient utilisation of resources. fer its corporations with the right prospects to create In terms of the management of these corporations, value. The Government functioning as an active and the Government has upgraded its objectives markedly, professional owner enhances Sweden’s welfare. We have with the increasing distinction between management a vision of Government-owned companies being the and issues such as regulatory responsibility being an best managed and most reputable players in their indi- element of this process. Now, Government-owned com- vidual sectors. Indeed, we believe that everybody par- panies know precisely what their owner wants from ticipating in these efforts – employees, boards, man- them, and indeed, the tools their owner wields to con- agers and other parties – share this vision, which may tribute to value creation. become a reality faster than we envisage at present. Like the whole of Swedish business, Government- This would be good for Sweden. owned companies now face two major challenges, which represent threats and opportunities: the deregulation of formerly regulated markets in Europe, and the new IT Stockholm, July 2000 society, which further underscore the significance of active ownership. Göran Persson Björn Rosengren Many of the Government-owned companies were prime minister minister of industry, employment and communications previously active on regulated markets. Today, however, 5 GOVERNMENT OWNERSHIP POLICY The objective: to create value Government-owned companies constitute a very sizeable of special real estate landlord Specialfastigheter Sverige proportion of Swedish business. Of the 63 Government- AB and the aforementioned Swedish Alcohol Retailing owned companies, 80 per cent are active on fully com- Monopoly AB, are more apparent in other societal con- petitive markets, while 20 per cent are legislated texts: in the former, through criminal custody premises monopolies or corporations with full or partial sole and in the latter, reduced costs to society. Accordingly, status. In terms of employee headcount, over 90 per applying the aforementioned customary measure of cent of employees are active in competitive operations. value creation exclusively is not appropriate for these Thus the Government’s actions as an owner affect many activities. Instead, it is more important that these cor- groups: employees, unions, customers, suppliers, cred- porations function with the greatest possible financial itors and more, implying that this role necessitates efficiency and provide contracted quality. Accordingly, attentiveness and commitment. for these corporations, value creation relates to the Due to the fact that Government ownership inte- societal benefits they achieve. If the spotlight remains rests are so broad based and encompass such diverse exclusively on the customary measures of value cre- activities, the actual practice of ownership becomes ation in these corporations, their socio-economic objec- complex. Accordingly, the Government’s ownership tives or values are not realised. Clearly, while these cor- policies must vary according to whether the corpora- porations may function so as to increase shareholder tions themselves are wholly or partially owned, whether value, socio-economic losses could result. Accordingly, the corporation is to serve specific societal interest and and with retained financial efficiency, these corpora- whether it is a legislated monopoly or has sole status on tions are focused on the designated tasks the Govern- its market. In a number of cases, such as The Swedish ment assigns them, in terms of, for example, regional National Pharmacy Corporation AB, The Swedish diversification or selling to special customer groups. Motor Vehicle Inspection Company, Swedish Alcohol One reform enhancing the Government’s prospects Retailing Monopoly AB and gaming corporation Svenska of functioning as an active owner was implemented in Spel AB, several of these conditions apply simultane- autumn 1998, when increasingly, ownership issues were ously, rendering the practice of ownership more com- distinguished from regulatory responsibilities within plex. A consequence, evaluations of the Government’s the Government Offices, with thereby, the Govern- ownership policy and how these corporations will satisfy ment gaining its first opportunity to formulate active, their objectives become more demanding. professional