2007 Annual Report State-owned companies 2007 This report can be ordered via Internet at www.regeringen.se Item number: N8012 Annual Report State-owned companies Ministry of Enterprise, Energy and Communication www.regeringen.se 001_omslag_plano_eng.indd1_omslag_plano_eng.indd 1 22008-10-06008-10-06 111:31:251:31:25 Contents 1 Financial overview 58 Kasernen Fastighets AB 87 Svensk-Danska Broförbindelsen AB, 3 Preface 59 Kungliga Dramatiska Teatern AB SVEDAB 4 The year in brief 60 Kungliga Operan AB 88 Sveriges Bostadsfinansieringsaktiebolag, 8 State ownership administration 61 Lernia AB SBAB 9 The government’s commission 62 Luossavaara-Kiirunavaara AB, LKAB 89 Systembolaget AB 12 Framework 63 Nordea Bank AB 90 TeliaSonera AB 14 State ownership policy 64 Norrland Center AB 91 Teracom AB 20 Sale of state-owned companies 65 OMX AB 92 V&S Vin & Sprit AB 22 Sustainable development 66 Posten AB 93 Vasakronan AB 32 Follow-up and assessment 67 Samhall AB 94 Vasallen AB 35 The state corporate sphere 68 SAS AB 95 Vattenfall AB 37 Two groups of companies 69 SIS Miljömärkning AB 96 Venantius AB 38 Companies operating under 70 SJ AB 97 VisitSweden AB market conditions 71 SOS Alarm Sverige AB 98 Voksenåsen A/S 41 Companies with special 72 SP Sveriges Tekniska 99 In process of being wound up societal interests Forskningsinstitut AB 102 Important events 43 State ownership of listed companies 73 Specialfastigheter Sverige AB 105 Changes in ownership 74 Statens Bostadsomvandling AB, Sbo 106 Accounting principles 44 Company survey 75 Stattum, Förvaltningsaktiebolaget 107 Definitions and abbreviations 45 A-Banan Projekt AB 76 Sveaskog AB 108 Review of companies 46 Akademiska Hus AB 77 Swedcarrier AB 110 Review of state-owned companies 47 ALMI Företagspartner AB 78 Swedesurvey AB 112 Government bills 48 Apoteket AB 79 Swedfund International AB 114 Changes in executive managements 49 Arbetslivsresurs AR AB 80 Swedish National Road Consulting AB, and boards 50 AB Bostadsgaranti SweRoad 116 Division of responsibility within the 51 A/O Dom Shvetsii 81 AB Svensk Bilprovning government offices for state-owned 52 Botniabanan AB 82 AB Svensk Exportkredit, SEK companies 53 Green Cargo AB 83 AB Svenska Miljöstyrningsrådet 118 Board members elected by the annual 54 AB Göta kanalbolag 84 Swedish Space Corporation general meeting of shareholders 55 Imego AB 85 Swedish Ships Mortgage Bank 124 Report dates for 56 Innovationsbron AB 86 AB Svenska Spel state-owned companies 57 IRECO Holding AB 125 Addresses This is an unofficial translation. In the event of any discrepancy between this English version and the Swedish original, the latter will take precedence. This report has been produced by the Ministry of Enterprise, Energy and Communications in collaboration with Edita Communication. Photographs originate from companies included in the Report. Printed by: Edita Västra Aros 2008 001_omslag_plano_eng.indd1_omslag_plano_eng.indd 2 22008-10-16008-10-16 111:01:131:01:13 1 Financial overview STATE-OWNED COMPANIES Financial facts, SEK bn 2007 2006 Change, % Net turnover 336.4 314.5 7 Profit before tax 63.1 67.1 –6 Net profit 53.6 55.4 –3 – attributable to shareholders in parent company 52.6 54.2 –3 – attributable to minority interests 1.0 1.2 –17 Equity attributable to shareholders in parent company 320.2 304.2 5 Equity attributable to minority interests 13.2 11.8 12 Total equity 333.4 316.0 6 Total assets 1 229.4 1 133.6 8 Cash flow from operating activities 25.8 28.6 –10 Gross investment 36.7 35.1 5 Average no. of employees, thousands 124.9 127.4 –2 Average no. of employees, including associated companies in thousands 176.1 177.1 –1 Return on equity, % 16.8 18.6 –1.8 percentage points Equity/assets ratio, % 23.9 23.7 –0.2 percentage points Dividend 31.2 37.1 –16 Estimated value 750* 770 *OMX and Vin & Sprit are not included in the calculation of estimated value RETURN ON EQUITY, % DIVIDEND, SEK bn CHANGE IN VALUE*, SEK bn 20 40 800 15 30 600 10 20 400 5 10 200 0 0 0 2006 2007 2006 2007 2006 2007 MINISTRY OF ENTERPRISE, ENERGY AND COMMUNICATIONS 2007 2 The Swedish state is an important company owner in Sweden. The state portfolio of companies includes 54 wholly- and partly-owned companies, of which three are listed. The state has a great responsibility to be an active and professional owner. The overarching goal for the Government is that the companies should create value and, where applicable, comply with the special societal interests. MINISTRY OF ENTERPRISE, ENERGY AND COMMUNICATIONS 2007 PREFACE 3 Preface 2007 was another successful year for the state- owned companies. The aggregate turnover increased and the result was among the best ever. Dividends continued to be at a high level, SEK 31 billion. The 54 state-owned companies represent a substantial value, tainable development. This is the responsibility of every com- SEK 750 billion at the latest valuation, and they are the common pany, but the state-owned companies should set an example, property of all Swedish citizens. Although the Government con- show the way and be at the leading edge of this work. The state- siders that state-ownership of companies should reduce, the state owned companies should present sustainability reports in com- will remain an owner, for a shorter or longer period of time, in a pliance with the GRI guidelines. number of companies. It is therefore important that the state I am convinced that the companies that are successful in the performs its ownership role in a responsible way. Active manage- future will be those that have worked actively to integrate these ment should continue in a professional way with the creation of issues, which understand the opportunities and realise how value as the overarching objective. these aff ect the companies’ competitiveness, and contribute to The Government has been given a mandate by the Swedish long-term creation of value. parliament, the Riksdag, to reduce state ownership of six com- We are proud that our work with sustainability issues in the panies. This work is in process. In May 2007, the state sold part state-owned companies has attracted attention internationally. of its ownership stake in TeliaSonera and in February 2008, its Among other things, the Government has initiated collabora- shares in OMX. In April, an agreement was signed to sell Vin & tion with China and the Chinese state-owned companies. It is Sprit to the French company Pernod Ricard. also gratifying that three of four prices for the best sustainabil- During the spring, Posten’s plans for a merger with Post Dan- ity report were awarded to state-owned companies in autumn mark were announced. Through Nordic collaboration, Posten 2007. These were Green Cargo, Vattenfall and SAS, which also will be strengthened to be better able to meet increased compe- received a prize for the best annual report. tition, take market positions and provide customers with the We also see how the work of increasing the proportion of international service required today. women on the boards of state-owned companies has produced We also see that companies are continuing to invest. LKAB’s results. I am proud that we have further increased the propor- ongoing investment programme includes investments of over tion of women on the boards of the state-owned companies SEK 22 billion over ten years. This means a lot for confi dence in from 47 to 48 per cent, compared with 18 per cent in the listed the future, both in the region and in the company. companies. The proportion of female chairmen of the board Up to 2016, Vattenfall is investing SEK 44 billion in renewable has increased from 27 to 33 per cent compared with 2.7 per cent electricity, SEK 41 billion of this investment is being made in for listed companies. This shows that there are a lot of compe- wind power production. In November 2007, Vattenfall initiated tent women who are willing to take responsibility if a real eff ort collaboration with Sveaskog on the largest investment in wind is made to fi nd them. It also shows that long-term sustained power ever in Sweden, which can result in 550 wind power plants work produces results. There are no short cuts. with a total eff ect of 1,500 MW, providing electricity for 800,000 More remains to be done, of course. For instance, I would like households. In June 2008, I participated in the inauguration of to see more women and people with a diff erent ethnic back- the Lillgrund wind farm in the Öresund; Sweden’s largest wind ground in leading posts in the companies. For just as we need power investment. This plant produces 0.33 TWh of electricity the competence of both women and men on the boards, we also per year, equivalent to electricity for 60,000 households. need people with diff erent experiences, of diff erent ages and As owner, it is important that companies are given the oppor- backgrounds. tunity and the prerequisites to develop and grow, this creating In this year’s annual report, we have included an expanded long-term value for their owners and contributing to creating section on social responsibility and sustainable development new jobs. with concrete examples from state-owned companies. One component of state management was the Government’s decision last autumn on new guidelines for external reporting Stockholm, June 2008 with an expanded information requirement for sustainability reporting for the state-owned companies. Being a responsible and professional owner entails, among other things, taking re- Maud Olofsson sponsibility for matters relating to social responsibility and sus- Minister for Enterprise and Energy MINISTRY OF ENTERPRISE, ENERGY AND COMMUNICATIONS 2007 4 THE YEAR IN BRIEF The year in brief Merger between Posten Green Cargo establishes and Post Danmark a joint company Green Cargo and Deutsche Bahn have estab- The merger plans were announced on lished a joint production company for Scan- 1 April 2008.