74th yearContents of operations Key Figures . 2. Balance Sheet . 9. Presentation . 3. Capital Adequacy Ratio . 10. Comments by the Chairman and the Managing Director . 4. Cash Flow Analysis . 10. Market Review . 5. Notes . 11 – 14. Summary of Income Statements and Balance Sheets . 6. Accounting and Valuation Administration Report . 7. Principles . 14. Income Statement . 8. Auditors’ Report . 15. ship portraiture – a forgotten art Ship portraiture as an identifiable must be commissioned or be painted with the definite intention of genre arose some time during the being sold. It is therefore not possible to paint a “genuine” ship latter part of the 18th Century. The portrait of one’s own boat or for one’s own needs. great breakthrough came around Special care and attention was given to correctly reproducing the the middle of the 19th Century, and rigging and characteristic details of the ship. It was less important the period of greatness lasted until the first few decades of the 20th that wind direction and the colours of the waves and sky were in Century when the painted picture was displaced by photography. agreement and were true to nature. The ship is at the centre, every- The ship portraits we see reproduced on the following pages have all thing else is decoration and framing. The ship is therefore, in the been at the Ship Portraiture exhibition which has been held at the vast majority of cases, painted straight from the side. Nordic Water Colour Museum in Skärhamn. A procedure which also facilitates the industrial element and the use A genuine ship portrait has to fulfil several criteria. It has to be of templates and standardised substrates. These special features carried out by hand, in colour or monochrome. Materials and sub- contribute to the somewhat naive strates may vary: water colours, gouache, oil or mixed technique, on and illustrative expressions of the paper, panel or canvas. The portrait must faithfully and in detail genre, but also to its undeniable reproduce a named vessel. It must be possible to read the name of charm. The standardised method of both the ship and its captain on the painting, directly on the picture, working means that it is quite easy on the passe-partout or the frame. Hence the term Captain’s Portrait to recognise the artist, even if there which is sometimes used for this genre. In addition, the portrait is no signature, which is unusual. 1 Key Figures swedish ships’ mortgage bank 2001 2000 1999 1998 1997 Operating income, msek 58.3 51.5 43.3 46.7 48.4 Balance sheet total, msek 5,417.2 3,944.4 3,469.7 2,537.2 2,614.5 Reserve fund, msek 943.3 885.0 833.5 790.2 743.4 Profit level, per cent 1.3 1.4 1.4 1.8 1.3 Return on equity, per cent 6.6 6.2 5.5 6.3 7.0 Solidity, per cent 17.4 22.4 24.0 31.1 28.4 Capital adequacy ratio, per cent 21.2 25.1 29.3 42.8 37.0 Number of employees 9 9 9 9 9 ErikSweden, 1872-1947. Hast Born in Österjörn, Västerbotten but active in Helsingborg, not just as a ship portrait artist but also as a decorator and sculptor. Often used a mixed technique, wave crests and ships may be painted in chalk while sea and sky may be in water colour or gouache. Liked to use recesses in the paper which changed character with time as the paper turned yellow. L Agnes. 60 x 50 cm. Falken. 70 x 57 cm. Ally. 53 x 46 cm. ”Agnes, Skärhamn. B.F.HT. Berntsson. 1938.” ”Falken. Lilla Tjörnekalf. Kapt. M. Johansson. ”Ally. MD 233. Skärhamn. Kapt. B. Olsson. Three-masted schooner, built in Marstal in 1901. E. Hast. 1918” Two-masted schooner, built in E. Hast 1913” Sold in 1930 to Skärhamn and was then given 1892. Bought in 1917 by the skipper and ship owner Yacht, built in Marstrand in 1906. Sailed until the name Agnes. Sold on to Bergkvara in 1960. Martin Johansson. Disappeared on 28 Nov. 1918 1942 when she collided with the S/S Pylades at the Continued sailing until 1963. with a cargo of earthenware and four men. She was Haneklo Lighthouse in the Göta Älv river. en route from Höganäs to Kotka in Finland. 2 3 Swedish Ships’ Mortgage Bank – presentation The Swedish Ships’ Mortgage Bank (the Bank) Loans must be secured through balances with or guaran- was established in 1929, with the task of facilitating the tees from banks or the State or collateral in ships. The collat- financing of Swedish shipowners, and contributing to the eral must fall within 70 % of the value of the ship as rejuvenation of the Swedish merchant fleet. estimated by the Bank (in special cases 80 %). Today, the Bank can also finance foreign-owned shipping operations Loans are provided in foreign or Swedish currency and with floating if there is a significant Swedish interest or influence. The Bank does or fixed interest rates at the option of the borrower. Interest rates are business on purely commercial terms, and in competition with other determined individually. credit institutions. Operations are financed primarily through promissory note loans. Operations are governed by the Swedish Ships’ Mortgage Bank Act Borrowing is in principle subject to the same terms as lending with (SFS 1980:1097). The most recent amendment came into force on 1 July regard to currencies and fixed interest terms. 1998 (SFS 1998:310). loans to smaller shipping companies the bank is subject to public law In certain cases, loans of up to 90 % of the vessel’s value can be provided The Swedish State has provided guarantees for the Bank’s operations. under the terms of a special ordinance. Preference will be given to These amount to msek 350. The Bank’s reserve fund (currently msek 943) smaller shipping companies. and the Swedish State guarantee are to be used to cover any losses. The Bank’s registered office is in Gothenburg. The Board – which board for shipping support consists of 7 Members and 7 Deputy Members – is appointed by the The government has instructed the Board for Shipping Support government. to administer approved subsidies to Swedish shipping. The Bank’s The term of loans may be up to 15 years. The Bank principally provides personnel also run the day-to-day operations of the Board for long-term loans against the security of Swedish or foreign ships. Shipping Support. J.H.According to theHarrison small amount of information available, he was active in Swansea around the turn of the century. Both the examples reproduced are signed 1906. They are very similar and are notable for their characteristically blue, almost lavender-blue, colour. L belongs to the åland maritime museum belongs to the åland maritime museum Southern Belle. 79 x 54 cm. Albania. 68 x 42 cm ”Southern Belle fr Mariehamn. Capten Axel Erikson. J. H. Harrison ”Albania fr; Mariehamn. Capt: Gustaf Erikson. Swansea. August 24th. 1906” Barque, built in Nova Scotia in 1871. Came into Swansea August 22th 1906. J.H. Harrison” Åland ownership in 1891 and remained so until she was broken up in 1919. The rig- Full rigger, built in St Johns in 1884. The Albania was bought to Åland ging was re-used for the newly built Carmen, which was launched in 1921 in Lemland in 1903, five years later she was sold in Rio de Janeiro. Captain Gustav Granboda. The Southern Belle in 1904 made a much talked-about fast voyage Erikson was her commanding officer from 1906 to 1908. between Hull and Stockholm, taking only six days. The captain was Axel Erikson. 2 3 Comments by the chairman and the managing director The Swedish Ships’ Mortgage Bank who attains specific targets. A bonus can be through the addition of the surplus from last reports a surplus for 2001 of sek 58 million paid up to a maximum of 15 % of annual pay year and amounts to sek 943 million. (sek 51 million). This profit signifies an and 25 % for the Managing Director. Despite a difficult economic climate, the increase in surplus of 13 %. The system has turned out well with regard Bank does not have any non-performing or Return on equity rose to 6.6 % (6.2 %), to increased motivation and raised skills. The doubtful credits. and loans granted by sek 300 million to Board has decided to modify the system for We are committed to continued expansion sek 1,500 million. Outstanding loans to ship- 2002 to a maximum bonus of 10 % of annual on competitive terms, customised solutions ping companies increased by sek 1,795 million pay for the staff and 20 % for the Managing and first-class service. or 50 % to sek 5,364 million. Director. In truth, we exist to serve our clients and The Bank has therefore shown healthy growth The bonus does not qualify for pension. therefore provide our owner with a good return which has been maintained with unchanged The growth in operations has meant that on capital, which we have ourselves built with manning. This is due to the high motivation of solidity has fallen to 17.4 % (22.4 %) and our own profits. the staff and the fact that our commitment to capital adequacy ratio to 21.2 % (25.1 %). Our training and personal development has yielded balance sheet remains strong and has been Pehr G Gyllenhammar results. We are probably one of the most effi- built up to cope with the on-going expansion.