SEK STANDS FIRM · notes on the U.S. market in 2008, issuing a total of USD 4.4 billion. READ MORE...

LENDINGSEK ensured that Swedish export companies had access to financing. PAGE 16

ADVISORY SERVICESThe 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

FUNDINGOnly the most trustworthy institutions had access to borrowing on good terms in 2008. SEK was one of the most trustworthy. PAGE 26

ANNUAL REPORT

SUSTAINABILITY REPORT 30 REPORT OF THE DIRECTORS 68

SEK STANDS FIRM at a time when Swedish exports are more

important than ever

2 SEK annual report 2008

OUR OPERAtIONS

SEK – Experts in International Financing

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 compared with market rates.

READ MORE ON PAGE 15

SEK – USMtN LEADER IN 2008

SEK was the largest foreign 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

3SEK annual report 2008

OUR OPERAtIONS

CONNECtING 17,500 ISLANDS Ericsson has won a commis-sion to construct a nation-wide network of mobile telephone masts in Indonesia. Together with two commercial banks, SEK provided support through a long-term loan of Skr 1.7 billion.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

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

PERMANENt PRESENCE

There are already 200 Swedish companies

present in Singapore. From 2009 SEK will

have a permanent office in the Asian metropolis.

READ MORE ON PAGE 14

Exports are vital for Sweden’s economy. SEK’s mission is to ensure access to financial solutions for export and infrastructure, on a commercial basis. The company promotes the develop-ment of Swedish business and is involved in finance both in Sweden and internationally.

For over 45 years we have provided the Swedish export industry with financ-ing. We offer customized, long-term and sustainable financial solutions for companies, the public sector, financial institutions and capital investors.

Business, however, needs more than just financing. Our advisors help build more efficient organizations and contribute to the success of complex projects.

To further develop SEK’s ability to support the Swedish export industry with financial solutions, in 2008 the Swedish government and parliament provided SEK with a substantial capital contribution and significantly expanded SEK’s lending capacity. These decisions were made against the background of the global financial turmoil, which made it harder for companies to borrow

money on the international capital markets.

SEK provides Swedish companies with a competitive advantage in the global market. The world map above highlights a few examples of deals that SEK has been involved in and made possible in 2008. On pages 10-15 you can read more about these and other SEK assign-ments during the year. You will also find more information about SEK’s expanded role and about SEK’s establishment of a permanent office in Singapore, one of the real hubs of Asian commerce.


FINANCIAL KEY RAtIOS

NEW LENDING 2004–2008 (Skr bn)

05

10152025303540455055606570

20082007200620052004

NEW LONG-TERM BORROWINGS 2004–2008 (Skr bn)

0

20

40

60

80

100

120

20082007200620052004

FINANCIAL HIGHLIGHTS2008 2008 2007

Amounts (other than %) in mn USD 4) Skr Skr

ResultsOperating profit (IFRS) 1) 23.9 185.2 497.0Pre-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 operationsNew 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

BorrowingNew long-term borrowings 7) 13,391 86,136 107,970Outstanding senior debt (IFRS) 39,918 309,468 269,452Outstanding subordinated debt (IFRS) 429 3,324 2,837total assets (IFRS) 47,728 370,014 297,237

CapitalCapital 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.


CONtENtS

Unless otherwise stated, amounts in this report are in millions (mn) of Swedish krona (Skr), abbreviated “Skr mn”. The international code for the Swedish currency – SEK – is not used in this report in order to avoid confusion with the same three-letter abbreviation that has been used to denote AB Svensk Exportkredit since the company was founded in 1962.

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 parentheses refer to the same date or period, respectively, for the preceding year.

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-nies Act. In some instances, a public company is obliged to add ‘(publ)’ to its company name.

For more inFormation about SEK’s business operations, call our Communi-cations Department on +46 8 613 83 00.

paper: The cover of this annual report is printed on Galerie Art Silk 250 g and the inside pages are printed on Galerie Art Silk 150 g and Scandia 2000 100 g.

photoGraphY: Janne Danielsson, Silver Dollar Pictures AB

imaGe aGencies: Corbis/Scanpix/Masterfile/AGE: Richard T. Nowitz, Alexander Farnsworth, Mark Tomalty, Wojtek Buss.Gorilla/Folio. Johnér: Ulf Huett.

prodUction and print: Intellecta Infolog 2009

68 REPORt OF thE DIRECtORS

73 Income Statements 74 Balance Sheets 75 Statement of Recognized Income and Expenses 76 Statement of Cash-flows 77 Capital Adequacy and Exposures 80 Notes 108 Proposal for the Distribution of Profits 109 Auditors’ Report

110 GRI REPORt

112 Assurance Report

2 OUR OPERAtIONS

4 FINANCIAL KEY RAtIOS

6 StAtEMENt BY

thE PRESIDENt

10 REVIEw

16 LENDING

22 ADVISORY SERVICES

26 FUNDING

30 SUStAINABILItY REPORt

36 Environmental Responsibility 39 Social Responsibility 43 Economic Responsibility

44 OwNER AND MANAGEMENt

46 BOARD OF DIRECtORS AND

AUDItORS 48 MANAGEMENt

49 CORPORAtE GOVERNANCE

REPORt

51 RISK REPORt

52 Risk Management 54 Risk Overview 58 Basel II 63 Risk Data


StAtEMENt BY thE PRESIDENt

N ever beFore have Sweden’s economy and prosperity been so dependent on the export indus-try, and never has SEK’s role as a stable and trustworthy lender

to Swedish exporters been more important. In 2008, the global financial crisis, whose impact has been greater than most people originally thought, led to an extreme liquidity shortage. In many cases, this made it impossible for companies, both large and small, to obtain vital financing. For an economy like Sweden’s, the export industry’s problems of obtaining capital are particularly serious. Sweden is a country that is highly dependent on exports, which account for more than half of our GDP. A lack of financing for companies could seriously damage Swedish companies’ ability to compete internationally and lead to the Swedish export industry losing market share globally. A decline in our export industry has a harsh and immediate impact on the Swedish real economy, resulting in increased unemployment.

the sitUation in the world’s capital markets deteriorated significantly in mid-September when the investment bank Lehman Brothers sought bankruptcy protection, and lending

between banks largely ceased. In addition, most of the large international banks reduced their activity on the Scandinavian market, making it much harder for Swedish export companies to obtain long-term financing. A growing number of companies therefore turned to SEK. Over the year, SEK was one of only a few institutions that were able to provide long-term financing despite the tough situation in the markets, and consequently was able to play an important role in defending the Swedish economy. For SEK, this has resulted in increased interest in SEK’s financing solutions, with the volume of new financing solutions in 2008 amounting to Skr 65 billion, a 14 percent increase on the previous year and the highest volume in SEK’s history. The higher volumes of course led to 2008 also being a successful year in terms of earnings. After write-downs totaling about Skr 557 million, IFRS earnings amounted to Skr 185 million. The adjusted IFRS result – core earn-ings – is, however, the result that provides the best comparison with the accounting standards in place before the IFRS rules were implemented in 2007. Core earnings for 2008 amounted to Skr 834 million, which is the best result in SEK’s history.

Over the past year SEK has played an important role in the Swedish economy.

SEK – Part of the Solution



despite the liqUiditY shortaGe that occurred, much of the Swedish export industry continued to do well in 2008, and there is signifi-cant demand for financing. Developing econo-mies, especially the Asian markets, are continu-ing their strong development, with increasing purchasing power and increasingly modern and developed infrastructure. The Swedish export industry is largely focused on infrastructure, telecoms, energy supply, transport and environ-mental technology – all areas that are enjoying very strong demand in emerging economies. But access to financing is often the deciding factor in whether or not an export deal goes ahead.

the importance of SEK for Swedish exports became even clearer in December. In order to increase SEK’s ability to assist the Swedish export industry, the Swedish parliament decided to make a capital contribution of Skr 3 billion and allow SEK to take over the shares in state-owned com-pany Venantius, significantly increasing SEK’s lending capacity. Venantius AB is a financial institution with equity of Skr 2.4 billion. SEK was also granted a credit facility of Skr 100 billion and parliament has also authorized the govern-ment to allow SEK to purchase state guarantees on commercial terms for its new borrowing up to Skr 450 billion.

The decision meant that SEK was immediately able to pledge financing for the Swedish export industry. The decision is a dynamic and effec-tive way of strengthening the competitiveness of Swedish companies and ensuring that their access to financing solutions is as good as that of competitors.

However, SEK cannot single-handedly manage the increased demand for financing coming from Swedish export companies. While we have strong liquidity, our balance sheet and risk capacity are still limited in relation to the demands that exist. Standing alone is not necessarily always strongest. By cooperating we can do so much more good, not just for SEK but for Swedish companies and, consequently, for all of Swedish society. If



we can combine the significant risk capabilities and larger balance sheets of the Swedish Export Credits Guarantee Board and Swedish banks with SEK’s borrowing and lending abilities, we have a great opportunity to ensure that Swed-ish companies’ financing needs are met. The financial crisis could then instead result in the Swedish export industry further increasing its market share. This is possible if we are prepared to cooperate.

access to financing is important, and access to financing in local currency can sometimes be even more important and can be absolutely vital to winning an order. SEK’s emerging markets business area EMMA has had a highly successful year, expanding its customer offer-ing to comprise financing in Brazilian real, Kazakhstani tenge and Romanian leu. Moreover, in December, after a tough selection process, SEK became one of only six foreign operators to be granted a license by Thailand’s finance ministry to issue bonds in Thai baht. This is proof of SEK’s strong standing in the inter-national capital markets and, above all, it is an increasingly important competitive advantage for Swedish exporters.

Another SEK business area that enjoyed an excellent year was the recently started Trade Finance, which offers contract guarantees and short-term trade finance solutions. Customer in-terest has exceeded expectations and the future looks equally positive.

Our subsidiary SEK Securities also developed very well in 2008. The number of customers and deals increased, leading to significantly higher volumes. At a time when companies can no longer count on their principal banks for all their financing, SEK Securities can provide the solution, helping to spread borrowing across new investors.

But access to financing doesn’t just benefit the Swedish economy; financing can also be environmentally sound, and SEK’s pro-environ-mental work is continuing. Modern clean technology is an area in which Sweden has world-class products, and there are considerable growth opportunities for Swedish companies in global markets. Clean technology is not just an important growth market; it’s also important for the environment. SEK signed a cooperation agreement with Polish pro-environmental bank BOS to provide better opportunities to supply environmentally friendly technology to the Polish market. This cooperation is perhaps most beneficial for small companies since it makes it simpler for them to break into the Polish market as well as monitor and successfully compete for public procurement tenders in Poland. SEK’s work with energy consumption management in Ukraine has also been highly successful. Follow-ing a commission from the European Bank for Reconstruction and Development (EBRD), SEK is leading a major project to provide Ukrainian companies with loans to make investments for better energy management. There has been considerable interest, and the results have been very good. Energy use in Ukrainian industry has decreased significantly and carbon dioxide emissions have been cut by 410,000 tons. That’s equivalent to the emissions from 180,000 cars. We are now bringing this concept to Sweden and the Swedish export industry.

oUr stronG market position and our increasingly important role mean that we are growing. To meet the significant demand from the Swedish export industry we need greater resources and know-how.

Our funding operations have worked very well, despite the difficult situation in the mar-kets. In spite of the financial crisis we have been able to borrow large amounts, Skr 86.2 billion,

“ ACCESS TO FINANCING IS OFTEN THE DECIDING FACTOR.”


and we have been one of the world’s largest borrowers on the structured finance market. What’s more, our borrowing operations have won prestigious awards during the year for their expertise and professionalism. But most importantly, our successful borrowing benefits Swedish export companies. It is now clear how important it is for Sweden and for the Swedish export industry to take advantage of an institu-tion like SEK, which has access to all the capital markets of the world when crisis strikes.

it is with pride that I look back on our work in 2008. Pride at how all employees worked hard for SEK, our customers and one another when demands, expectations and the work load

increased. We have shown that we can be relied on, and that we truly are an important part of the solution to the difficulties that the Swedish economy faces. In 2009 Swedish exports will undoubtedly face even greater challenges. But with our good earnings, our strengthened lend-ing capacity and our expertise, SEK stands well prepared to meet these new challenges.

Stockholm, April 2009

Peter YngwePresident



REVIEw OF 2008

REVIEW OF 2008 The year 2008 was an eventful period, dominated by the international financial crisis and a looming economic downturn. For SEK, the year was marked by great demand for our services.

The following pages showcase some of the projects and events that SEK and its staff have worked with during 2008.


REVIEw OF 2008

SEK’S UNIqUE POSItION MAKES thAILAND DEALS POSSIBLE For companies that want to invest in Thailand, or that want to be able to help Thai customers with financing, access to loans in Thai baht is essential. The country’s capital market is regulated and the currency is not fully convert-ible. Taking out a loan in another currency carries significant currency risk, and many companies have a strict limit on the size of currency exposures.

Banks that want to lend in baht need to issue debt in baht, which requires a license that is difficult and time-consuming to obtain. SEK is one of very few foreign institutions that are able to lend in baht for long periods. In December 2008 only six foreign institutions were granted a license for this kind of lending. SEK was one of them.

EXPORt LOANS LEAD tO LARGE DEALS the export loan was created in cooperation with SEK, Almi, the Swedish Export Credits Guarantee Board, the Swedish Trade Council and Swedfund to improve financing opportunities for small and medium-sized companies. It enables companies to increase exports by providing scope for larger and a greater number of orders. The Export Loan has been a rapid success and demand was significant in 2008. Arcos Hydraulik, based in Borlänge in central Sweden, is one of those companies that has improved its liquidity with the help of the Export Loan.

“The loan reduces the pressure on the company’s finances. It can be a long time from production and delivery until we get paid. If we take more orders we risk stretching our liquidity. So it feels secure to have the possibility of a loan,” says Torsten Helgeson, CEO for Arcos Hydraulik.


REVIEw OF 2008

in late aUtUmn 2008, a govern-ment initiative resulted in SEK receiving a capital contribution of Skr 3 billion, and the company was also allowed to take over the shares in state-owned company Venantius, with equity of about Skr 2.4 billion. Shortly after this, the Swedish parliament granted SEK a credit facility of up to Skr 100 billion from the Swedish national debt office. The objective of both measures was to rapidly increase SEK’s capacity to assist Swedish export com-panies with financing. The background to this, of course, was the financial crisis, which had made it increasingly difficult for Swedish companies to borrow money.

The decision was welcomed by SEK’s

President, Peter Yngwe, who notes that financing needs are huge and that many companies have contacted SEK for help with financing.

“The decisions show that the govern-ment sees SEK as an important part of the solution to the serious financial crisis that has affected the Swedish export industry. The measures mean that SEK can immediately pledge financing for Swedish exporters over long periods,” says Peter Yngwe, adding: “We can now break a downward trend and provide Swedish export companies with good opportunities to increase their sales and take market share, especially in the growth markets of emerging economies.”

In order to improve the opportunities for Swedish exporters to obtain lending, two measures have given SEK significantly increased financial power.

NEw BILLIONS PROVIDE OPPORtUNItIES

LENDING IN LOCAL CURRENCY GENER-AtES MORE BUSINESSsek and packaGinG group Tetra Laval have together created a unique financial arrangement in Thailand with financing in local currency. This cooperation has led to several new deals.

“Financing in local currency is a highly complex area that requires robust long-term solutions,” says Ola Thomson, Senior Manager of Struc-tured Customer Financing at Tetra Laval International.

In 2007 SEK and Tetra Laval, which consists of the three companies – Tetra Pak, DeLaval and Sidel, began planning financial arrangements for the Thai market.

“We need to pay more attention to high-growth markets than we did before. We’ve been able to combine local commercial knowledge with central financial expertise. We event ually developed a solution that enables us to offer our customers in Thailand financing in baht.”

Ola Thomson says that there has been a strong response from the market.

“Following the financial crisis, it has emerged that we are better positioned than many of our competitors.”

The arrangement provides Tetra Laval with advantages.

“We can offer our customers attractive solutions both in terms of interest rates and maturities. Another major advantage is that customers have received loans from a bank out-side their home country. That raises their standing at home,” says Ockert Van Jaarsveld, Director of Finance for Tetra Pak South & South-East Asia.

Tetra Laval has developed the program together with SEK.

“We believe that it has been beneficial to have been involved from the beginning,” says Carl Gustav Svanström, Head of Financial Services at Tetra Laval.

SEK’s solutions are particularly im-portant in countries where financing in local currency is required.

“SEK complements our global facil-ities financing portfolio very well,” says Carl Gustav Svanström.

The next stage is to develop simi-lar arrangements in other countries with our business areas EMMA and Customer Finance.

“Next on our list are Mexico and Indonesia,” says André Sebelius, SEK’s Account Manager for Tetra Laval.


REVIEw OF 2008

tELECOMS INVEStMENt CONNECtS INDONESIA’S ISLANDS indonesia is a fast-growing market with 225 million consumers. To really get the economy moving and be able to compete in a modern global market, communications infrastructure is vital. As the country consists of more than 17,500, often remote, islands, this poses a considerable challenge, making mobile telephone masts more suitable than land lines.

Ericsson has been commissioned by Indonesian company Excelcomindo to build a nationwide network of mobile telephone masts. It’s a large project consist-ing of many parts. In 2008 Ericsson needed help organizing a long-term loan of Skr 1.7 billion so that the customer would be able to make the purchase. SEK was able to assist with the loan, despite the squeeze on the global capital markets.

DOUBLE BOND LOAN FOR ELECtROLUXto meet Electrolux’s demand for financing, SEK arranged two bond loans in 2008 for the appliance group. For the first loan in June Electrolux chose a loan in U.S. dollars for six years – a maturity that was well suited to Electrolux’s debt maturity structure. The bond loan amounted to USD 42 million.

Towards the end of the year, in December, SEK arranged another bond loan on behalf of Electrolux. On this occasion Electrolux preferred euros as the currency, with the five-year loan amounting to EUR 85 million. Both bond loans were issued with variable-rate interest, known as “floaters”.

“In the prevailing market environment Electrolux realized that SEK could offer a secure financing solution at a competitive rate,” says Jonas Samuelson, Electrolux’s CFO.


REVIEw OF 2008

sek’s nicholas anderson spent the first half of 2008 in Singapore to find out whether there was a good business rationale for having a permanent office there. Until now, SEK has only had offices in Stockholm and Helsinki. In the space

Asia is becoming increasingly important for the Swedish export industry. Many countries are experiencing rapid economic development. India’s middle class, for example, is already as big as the EU’s. As their purchasing power increases, the countries of Asia are turning from producers into consumers. there is great potential here.

of six months, he visited 18 countries and 160 companies. He describes his experi-ence as “superb.”

“Our presence in Singapore tangibly raised SEK’s profile among our Swed-ish customers, among both those that

have permanent operations here and those who are visiting. It didn’t take long to realize that a permanent office was a good and highly profitable idea.”

He recounts that, from day one, the operation resulted in two new deals a month. He emphasizes that a key factor is the good cooperation with the Swedish ambassador Pär Ahlberger, who has been extremely involved in regularly making introductions to the local business com-munity and to Swedish companies with local representation.

Despite SEK’s objective of assisting the Swedish export industry, aware-ness of SEK’s operations is insufficient. “Setting up during these difficult times meant that we came into contact with many companies that could benefit from what we have to offer,” explains Nicholas Anderson.

The office will become permanent and former Head of Structured Finance Carl Engelberth has been put in charge of the operation. He notes that 1,500 Swedes work in Singapore, and 200 companies are represented there.

“That’s not why we chose Singapore. Of course, there are more Swedish companies in China, for example. But Singapore is Asia’s financial center. If you are based there you get an understand-ing of and access to all the main Asian markets: China, Thailand, Indonesia, Vietnam and others.”

The advantages of a permanent office are a higher profile and more contact with potential customers and investors. This makes it possible to pick up deals at an earlier stage and develop relations with banks, authorities and end-cus-tomers to an extent that is impossible to maintain from the other side of the world. One aim is to become a discussion partner when an export deal is in the process of being made, rather than being contacted about export credits when the deal has already been made.

“Even if you shuttle between Stockholm and Beijing, Manila, Hong Kong and Bangkok, you miss business opportunities that arise through one-to-one meetings,” he notes.

With the Singapore office now becom-ing permanent, its role will also change slightly. Carl Engelberth won’t be flying around the area as much as Nicholas Anderson did, as the aim is no longer to sound out interest for an Asian outpost, but instead to establish SEK in the busi-ness community for the longer term. “It’s extremely important that we take this step,” says the new Head of the Singapore operation. “In the long term I wouldn’t rule out us also following customers to other regions in a similar way.” ●

A PERMANENt PRESENCE IN ASIA


REVIEw OF 2008

ASIA IN FOCUS At thE 2008 CULtURAL EXPORt SEMINAR the asian market – which is increasingly important for Swedish exporters – was the theme for SEK’s 2008 Cultural Export Seminar, which was well attended. About 130 people were present at the semi-nar to listen to people like Tommy Kullberg, who oversaw the successful launch of both Ikea and H&M in Japan; Pär Ahlberger, Sweden’s ambas-sador to Singapore; and Ewa Kumlin, CEO of Svensk Form, who started the Swedish Style in Tokyo project during her time in the Japanese capital. Some 10 percent of Sweden’s exports go to Asia, and Swedish culture has an important role to play, both as an independent export sector and in helping to open doors for major Swedish exporters.

SEK – USMtN LEADER IN 2008 sek was the largest foreign issuer of USMTNs on the U.S. market in 2008. This is according to research by financial information service mtn-i. SEK significantly increased its volumes on the U.S. market com-pared with the previous year, issuing USD 4.4 billion in USMTNs in 2008. Only two domestic U.S. issuers is-sued more than SEK during the year.

CRISIS MANAGER StRENGthENS SEKan important element of the strengthening of SEK’s capital base in the late autumn of 2008 was the takeover of all the shares in state-owned company Venantius, with equity of about Skr 2.4 billion.

Venantius was created following the severe bank and real estate crisis at the start of the 1990s. When Venantius was started in 1995 it took over Skr 33 billion in problem loans from the state and SBAB, and a number of properties. The loans consisted of more than 70,000 mortgage loans. The government com-missioned the company to liquidate the loans in as advantageous way as possible for the state.

Venantius has been very successful in its mission, and at the end of 2006 its mission was deemed to have been largely completed. The majority of the loan stock had been liquidated, all the properties had been sold off and over 1,600 Swedish tenant-owner associations with financial problems had undergone financial reorganization.

In recent years Venantius had paid out a dividend to its owner, the state. Thus all the shares in a financially very strong company with expertise have now been transferred to SEK in order to further bolster SEK’s ability to assist Swedish export companies with credits.

64.9billion kronasek’s volUme oF new cUstomer FinancinG solUtions in 2008. an increase oF 14 percent on the previoUs Year.

“We can now break a downward trend and provide Swedish export companies with good opportunities to increase sales and take market share”

SeK’S preSIDent peter YnGWe on tHe SWeDISH parlIaMent’S DeCISIon to SIGnIFICantlY StrenGtHen SeK’S CapItal BaSe

MORE COMPANIES USING CIRR dUrinG the Financial crisis Swedish exporters have benefited greatly from the CIRR system. CIRR, or Commercial Interest Reference Rate, means that exporters’ customers have access to credits. Interest in CIRR has grown considerably, especially since the difficulties in the financial markets began.

“The aim of CIRR is to offer a fixed rate of interest to support exporters in their commercial negotiations with foreign buyers,” says Eva Ohlsson, a Director at SEK Structured Finance.

In a normal market situation this system is only of benefit when market rates are in an up-cycle. This is because there is a built-in time lag that means that customers pay a rate based on a rate of interest that can be up to 10 months old. This means that if rates are rising, it results in the interest rate being subsidized due to the time lag.

The financial crisis has made it more advantageous to borrow at the CIRR rate since the rate is now significantly lower than market rates. This has resulted in most large exporters making use of CIRRs.

“But it’s entirely possible for all companies that export capital goods with a normal credit period of at least two years to use CIRR financing. SEK would certainly like to make the use of it more widespread,” continues Eva Ohlsson.

Put briefly, CIRRs work by the foreign buyer receiving a loan. The exporter is then paid upon delivery. SEK then assumes the buyer’s undertaking to pay. The credits are arranged by a bank and usually guaranteed by the Swedish Credits Guarantee Board (EKN). The total amount outstanding of CIRR credits at year-end 2008 was Skr 9.4 billion.

w

LENDING

LENDING IN BRIEFsek oFFers a wide ranGe of financial solutions, everything from standardized loans to innovative and complex financing products. SEK provides support through export financing solutions, general corporate finance, project finance and capital market transactions. SEK’s lending is often aimed at helping Swedish export companies to find the right financing solutions for their customers so that they are able to purchase goods or services from Swedish exporters. SEK also offers financing solutions for the public sector, primarily for infrastructure investments. The subsidiary SEK Securities helps to arrange capital market products and acts as an intermediary.


The year 2008 was dramatic for both the capital markets and the export industry. SEK made significant progress and secured its role as an important and stable resource for the Swedish export industry.

It started as a crisis in the U.S. mort-gage market. This had been going on for over a year and had become gradually worse, when the investment bank Lehman Brothers went under in mid-September

2008 and the capital markets ground to a halt. Many export companies, particularly those

selling capital-intensive products, depend on being able to help their customers with financ-ing solutions. All of this was suddenly at risk. Without financing, there was no business. And with no business, facilities would have to shut and employees be let go. For a country like Sweden, where exports account for more than half of GDP, this would be devastating.

“We usually consider that SEK’s importance increases in proportion to the turbulence in the market,” says Måns Höglund, Head of SEK’s cus-tomer operations, “but autumn 2008 was totally unique. The turbulence swelled into the worst storm in a very long time, and numerous factors contributed in different ways to the capital markets ceasing to function. Our role has never been so important,” he adds.

Sweden has an unusually big proportion of large companies. As a rule, they have made

use of international banks with a global reach. When the crisis hit, particularly in the U.S., a tendency was noted for U.S. banks to prioritize U.S. companies. Banks in other countries followed suit. Swedish companies had to turn to Swedish banks at a time when the banks had to be more careful with their lending.

The new Basel II regulations, which were drawn up and established before the crisis, make stricter demands on capital adequacy and risk-taking in the event of increased risk for capital lent. Just as demand for capital was rapidly increasing, the banks had to reduce the leverage on their own capital and increase their own capital adequacy in relation to loans made.

“This happened at a time when many Swedish exporters saw an increased need for financ-ing and when their banks were pulling out of Sweden to prioritize companies in their own home countries,” explains Måns Höglund. “It was a very dramatic period.”

With its diversified funding, enabling it to issue debt on the private bond market through-out the year, and its expressed objective of assisting the Swedish export industry, SEK ensured that capital was available.

LENDING

A Reliable Partner


LENDING

In order to further increase SEK’s lending capacity the Swedish government significantly strengthened SEK’s equity in December. This enabled lending to increase and leverage to decrease.

“As the needs increased, we were able to increase our lending to a corresponding degree,” explains Måns Höglund. “We showed that we are a part of the solution, not part of the problem.”

“In terms of new customer financing solu-tions, it was one of SEK’s best years ever. Over-all, we arranged customer financing solutions totaling almost Skr 65 billion.”

“SEK’s importance increases in proportion to the turbulence in the market,” continues Måns Höglund.

sek’s cUstomer operations are orga-nized into eight business areas. The bulk of lending occurs in two of these areas: Corporate and Structured Finance.

The Corporate business area is responsible for SEK’s lending portfolio and bilateral lend-ing, and also has overall responsibility for the coordination of SEK’s clients. When companies need simple, straightforward loans they come to the Head of Corporate, Håkan Lingnert. About half of total lending in 2008, just over Skr 30 bil-lion, was made under his management.

Responsibility for SEK’s lending portfolio is one of the business area’s two main tasks. The other is to lead and coordinate the company’s customer operations. Corporate allocates limits, prioritizing customer projects based on the applicable limits on total lending, and leads the customer teams. For each customer, SEK puts together a team from the various business areas that might be relevant.

Corporate also has the task of managing product development. It’s particularly important to be able to support small and medium-sized companies to a greater extent with export finance. Sweden’s exports are unusually depen-dent on a small number of large companies, entailing considerable risk. While the largest Swedish exporters also account for the bulk of SEK’s lending, there is also a focus on support-ing smaller companies that have good export potential.

“The Export Loan, which we launched just over two years ago together with the Swedish Export Credits Guarantee Board (EKN), Swed-fund, the Swedish Trade Council and Almi is, for example, tailored to help support small and medium-sized companies with export projects,” explains Håkan Lingnert. “It’s been a rapid success.”

The business area Structured Finance deals with project export finance, that is, different forms of export credits to large companies in which the state often assumes the risk. Export credits have been SEK’s core activity since it began.

“We primarily help major companies such as Ericsson, ABB, Volvo and Scania to finance individual projects,” explains Carl Engelberth, who has been Head of Structured Finance since 2001. “When Ericsson wins a tender to build a national mobile phone network or ABB is com-missioned to carry out a power transmission project, these are long-term projects that often require long-term financing for the customers.”

For the majority of transactions, the Swedish Export Credits Guarantee Board provides guar-antees and assumes the bulk of the risk. SEK’s task is not to take on risk, but rather to meet the demand for credits, particularly long-term credits. SEK cooperates with both Swedish and foreign banks in its lending, and the company’s role is more complementary and as a partner to the banks and not as a competitor.

“In 2008 we lent more money than ever before,” he explains. “It’s been an exceptionally successful year, despite the financial crisis. It’s because we are a safe partner for both com-panies and banks. We’ve shown that we are a reliable lender, come rain or shine.”

During the year, Structured Finance carried out 70 transactions totaling Skr 20 billion, a record amount both in terms of the number of transactions and volume. The pace of growth is fast; since 2004 project export financing has tripled. The department needs to grow in 2009 to meet the demand.

But Carl Engelberth will not be leading this expansion. He’s moving to Singapore to be SEK’s man in Asia.

“We’ve always worked a lot with Asia,” he

“ SEK’S IMPORTANCE INCREASES IN PROPORTION TO THE TURBULENCE IN THE MARKET.”

MåNS HöGLUND

Export credits 26.8

Other lending to exporters 12.7

Lending to other corporates 1.9

Lending to the public sector 8.1

Lending to the financial sector 14.1

Syndicated customer transactions 1.3

total new customer financing solutions 64.9

NEW CUSTOMER FINANCING SOLUTIONS 2008 (Skr bn)

ExportkrediterÖvrig utlåning till exportörerUtlåning till övriga företagUtlåning till publika sektornUtlåning till den finansiella sektornSyndikerade kundtransaktioner


LENDING

says. “We’ve now reached the point where it’s much more efficient to have permanent repre-sentation rather than fly back and forth from Sweden. By having a presence there we can raise our profile and develop important contacts with exporters, banks and end-customers. We also want to become more of a discussion partner early on in business deals, rather than being contacted when the deal is already settled.”

asia is an important market, or rather a number of increasingly important markets. China and India are huge countries that are growingly rapidly, but countries like Indonesia, with 225 million people, Thailand and the Philippines, are also becoming increasingly important markets for Western exporters.

Many Asian countries shield their markets with regulatory red tape that’s hard to break

through. SEK has a special business area known as EMMA (Emerging Markets) that focuses on providing local currency to Swedish companies in countries where it can be difficult to access currency. SEK can offer financing in 15 currencies.

Two other business areas have also completed their first year. The first is Trade Finance, led by Peter Lager, which offers contract guarantees and short-term trade finance, consisting of loans with a period of credit of up to one year. SEK Trade Finance’s offering to customers includes advances for competitive tender processes and performance guarantees, as well as bespoke solutions for larger projects.

“We’ve beaten our budget target by a fair mar-gin,” he says. “Our success is due to us being good at listening to what customers want and adapting to this. For example, the crisis made trade finance more important than we had thought, so we quickly adjusted to meet the demand.”

“ WE’VE SHOWN THAT WE ARE A RELIABLE LENDER, COME RAIN OR SHINE.”

CARL ENGELBERTH


LENDING


Peter Lager believes that demand will be at least as large in 2009.

“We’ve now got things underway,” he says. “We have the team in place and have been of great benefit to companies.”

The other area, Customer Finance, helps com-panies with customer financing solutions.

Instead of companies having to turn to vari-ous banks for each individual transaction, SEK offers a one-stop shop that more or less involves companies outsourcing their customer financing to SEK Customer Finance.

“We’ve started a five-year cooperation with a medical technology company,” says Sirous Kia, who heads up the business area. “To begin with, we’re going to provide end-customer financing in five to six different markets and then gradually expand the number of markets.” SEK Customer Finance focuses primarily on large volumes of relatively small deals, for which financing from banks is not a satisfactory solution. For larger deals, there were already a number of parties and a well-functioning competition, but the financial crisis has changed the game plan. “A change in circumstances has demanded that we now also focus on deals in the USD 5 million and over segment,” he explains.

It is also part of SEK’s task to improve Swed-ish companies’ competitiveness in the long term. Companies don’t just need loans for current business; they also need well developed infrastructure both in Sweden and abroad to enable them to reach customers’ markets more efficiently. The financial crisis has also highlighted physical infrastructure plans. The business area Infrastructure and Project Finance (IPF) works, for example, with ensuring access to energy at competitive prices. Or, as in 2008, by facilitating the export of Swedish products by contributing to the construction of a major

motorway, the A1, in Poland, a project in which Swedish construction company Skanska has a significant role.

The A1 will go from the coastal city of Gdansk in the North to the Czech border in the South, where it will link up with the D1, the Czech Republic’s main artery. Once complete, it will bring Sweden closer to markets in large parts of Central Europe.

there is alwaYs a limit to how much risk SEK can assume for a particular customer. The task of the subsidiary SEK Securities is to find other bond investors in order to be able to offer more and larger financing solutions.

“This year we’ve seen an influx of new cus-tomers,” explains SEK Securities President Jane Lundgren Ericsson. “There have been more customers and transactions, and larger volumes. SEK Securities has been able to assist with longer maturities.”

What made 2008 different from previous years was that companies that had not previ-ously borrowed from SEK, but that had banks through which they managed their finances, were obliged to look for other, additional lenders.

In total, SEK Securities arranged about 40 bond loans in 2008.

“We actually haven’t changed our offering,” she explains. “The difference is that our compet-itors have greater difficulty in meeting compa-nies’ needs. Companies that are used to having access to liquidity suddenly had no access.”

“We were able to help, and have been of great benefit and more important than ever.”

That’s a description that applies to all parts of SEK’s lending operations. From the point of view of exporters, SEK has increased dramati-cally in importance as other lenders have been forced to curb lending. The financial crisis has shown why SEK is needed – more than ever. ●

LENDING

“ THERE HAVE BEEN MORE CUSTOMERS AND TRANSACTIONS, AND LARGER VOLUMES.”

JANE LUNDGREN ERICSSON

ADVISORY SERVICES

ADVISORY IN BRIEFsek assists companies and the public sector in Sweden and abroad with financial advisory services. SEK Financial Advisors AB offers independent financial advice – both strategic and operational, as well as providing management for hire and project management. SEK Advisory Services – Project Finance provides support with advice on financing large infrastructure projects.


ADVISORY SERVICES

Helping All the Way

OUr advisors help large, complex projects to be completed according to plan, says Nicholas Anderson, Head of Advisory Services

– Project Finance.“For example, we can assist Swedish com-

panies with financial modeling, profitability estimates and independent advice on financ-ing solutions when they need to make a large investment. We can also manage large projects ourselves or together with technological con sultants, when particular financial or, for example, energy know-how is needed.”

As an example, he mentions UKEEP, a billion krona energy management project in Ukraine. Access to inexpensive Russian gas has meant that Ukrainian heavy industry has not had sufficient incentive to switch from out-dated, inefficient production technology. Energy consumption is on average three times higher per unit produced than in the EU. In the meantime the country has discovered that it can’t rely on Russian gas, especially not at a low price, and environmental awareness has increased. There are numerous good reasons to reduce the consumption of energy from coal, oil and gas.

Following a commission from the European Bank for Reconstruction and Development (EBRD), SEK has therefore led a major project to provide Ukrainian companies with loans to make investments in technology to provide better energy management. There has been considerable interest, and the results have been overwhelming. The loans have been very profitable investments, with pay-back periods of 2–5 years, while energy use is set to decrease by 1.6 TWh per year and carbon dioxide emis-sions to fall by 410,000 tons. That’s equivalent to emissions from 180,000 cars.

“Drastically cutting costs by reducing depen-dence on Russian gas and reducing greenhouse gas emissions has meant that UKEEP has been an incredibly successful project,” explains Nicholas Anderson.

throUGh its work with UKEEP, Advisory Services – Project Finance has developed important contacts, in particular with Vattenfall Power Consultant, and has developed a range of solutions that will now be customized for the Swedish market.

“Although energy wastage was worse in Ukrainian industry, there are significant finan-cial and environmental gains to be made in the

Our mission is to assist Swedish industry. By providing good advice, we can help companies increase their control and efficiency in processes and projects.


Swedish paper and pulp industry, and in the steel, glass and engineering industries, to give just a few examples,” adds Nicholas Anderson. “We estimate that Swedish industrial companies can generate an annual return of 25 percent on the required investments.”

At a time when rising energy prices and falling demand are a reality for many Swedish exporters, it’s vital for them to cut unnecessary energy con-sumption. As the global economy contracts, it’s those companies that make the best use of their resources that will thrive at the cost of less efficient companies. Moreover, there is of course a fierce debate about the CSR aspect and environmental benefits in Sweden. SEK offers a prudent and profitable way of simultaneously taking responsi-bility for the environment and company finances.

Nicholas Anderson says that the work with UKEEP and the cooperation with Vattenfall Power Consultant have made it possible to develop a highly effective process that can also be applied to Swedish companies.

“We only need a few days to lay the foundations for a well-suited efficiency program based on a customer’s particular circumstances,” he says. “We estimate that the project will be of great benefit to customers, our cooperation partners, us and the environment.”

Advisory Services – Project Finance had a successful year in 2008. Revenues have increased and there is an upward trend. The financial crisis has had a positive effect on business, owing to the specialization in cutting energy consumption. It is also highly likely that energy prices will rise con-siderably when there is an upturn in the economy.

sek’s advisorY Unit consists of two consulting businesses. One of these is Advisory Services – Project Finance, which is headed up by Nicholas Anderson. The other is SEK Finan-cial Advisors AB, which is led by Peter Livijn and specializes in helping Swedish companies and banks to develop or strengthen aspects of their financial operations. Financial Advisors can save customers millions of krona by, for example, cutting banking expenses, improving customer receivables processes, improving risk management or streamlining balance sheets.

In 2008, for example, a bank procurement process was implemented at Coor Service Man-agement, a company in the property sector with 3,700 employees and Skr 5.5 billion in revenues. The consultants from Financial Advisors helped throughout the entire process, from developing selection criteria to the practical management of the procurement process. The results exceeded expectations, and the company obtained bank-ing services that better matched its require-ments for less than half the price of the previous services. “The company gained greater control over its cash flows and a stronger balance sheet. Greater control over its own resources reduced its need to borrow money,” explains Peter Livijn.

He notes that that it is higher-quality opera-tions rather than the savings that are the main objective. But it’s not unusual for a well implemented bank procurement to result in increasing quality, reducing tied-up capital and lowering costs by about 50 percent.

Companies and banks have faced the chal-lenges of a deteriorating economy, difficulties in

ADVISORY SERVICES

“ WE ESTIMATE THAT THIS PROJECT WILL BE OF GREAT BENEFIT TO CUSTOMERS, OUR COOPERATION PARTNERS, US AND THE ENVIRONMENT.”

NICHOLAS ANDERSON


ADVISORY SERVICES

borrowing money and volatile exchange rates and commodity prices in 2008. This has in-creased companies’ interest in freeing up liquid-ity, for example by reducing tied-up capital and by controlling risks. There has also been greater demand from companies for treasury reviews and overall financial reviews in order to gain a better understanding of their own business and identify economies of scale and organizational improvements.

The financial crisis has affected Financial Advisors insofar as customers have a greater need for liquidity and better control of currency risks.

peter livijn and nicholas anderson share a positive outlook despite the weak economy. By specializing in services that are of extra value in difficult times – by reducing unnecessary energy use, tying-up of capital and inefficient processes – difficult times can serve to emphasize the comparative advantages of advisory services.

“Above all, our importance for the Swed-ish export industry increases in an economic downturn,” says Nicholas Anderson. “That’s when companies have to make the most of their resources. Now is the time that good advice and good advisors are needed most.” ●

FUNDING IN BRIEFsek is one oF the Nordic region’s largest borrowers on the international capital markets. Our funding opera-tions comprise financial and technical expertise, accessibility and efforts to diversify borrowing across all of the world’s principal capital markets. SEK’s funding consists of large global benchmark loans, other public bond loans and private placements. As a long-term and stable provider of financing, SEK needs to keep its liquidity at a high level. Liquidity is invested primarily in bonds from issuers with high credit ratings and with short maturities.

FUNDING


More Important than EverDespite the turmoil in the markets, SEK’s fundingwas successful throughout the year.

t oUGh times separate the wheat from the chaff, and in the financial markets 2008 was the toughest year in a long time. After Lehman Brothers filed for bankruptcy pro-

tection in September, confidence in the financial system disappeared and the capital markets suddenly ground to a halt.

The capital markets were already volatile before the collapse of Lehman Brothers. When 2008 began, the U.S. mortgage crisis had been going on for half a year, and in the spring there was a clear flight to quality in investments. A premier league emerged on the international capital markets, with only the most trustworthy credit institutions able to make large issues on the public market at attractive levels. Then it hap-pened: Lehman Brothers went under, taking the confidence in the entire financial sector with it.

“The Lehman collapse was the real water-shed,” says Per Åkerlind, CFO. “After that, it was a different world.”

After the world’s governments provided guar-antees for the banking system, confidence was sufficiently restored to the break the stalemate. When the markets began to recover, only the most trustworthy credit institutions continued to have access to borrowing without guarantees.

sek’s borrowinG was successful during the year, owing to its strong balance sheet, good credit rating and increased confidence from the government and parliament. The company is among the most trustworthy participants in the market, and consequently benefits from volatil-ity and flight to quality. For structured loans and short-term borrowing, 2008 was one of the most successful years ever.

“Not only did we stand firm in the face of one of the worst crises ever, we also increased our market share in the structured market. And despite the private bond market contracting significantly, we increased our borrowing in absolute terms,” says Per Åkerlind.

FUNDING


The fact that other banks and financial institutes named SEK SSA Issuer of the Year (Supra national Sovereign Agency Issuer) in mtn-i’s prestigious international vote is telling, and gives SEK additional credibility into 2009. The crisis is not over, and there will continue to be a clear dividing line between those who are able to borrow and lend at competitive prices and those who cannot.

SEK also won the award for Landmark Deal of the Year for a deal in Japan of more than USD 400 million, which it carried out together with the U.K.’s Barclays Capital. Elsewhere, 2008 was a year with fewer larger, spectacular deals.

“For structured loans, 2008 was a good year,” says Per Åkerlind. “The downside was a clear decline for public plain vanilla benchmark loans with longer maturities.”

Structured loans are bonds that are adapted to investors’ preferences. Plain vanilla are straight-forward, simple issues that central banks, pension funds and other large institutions are invited to invest in for a set period and a set yield. This type of borrowing was difficult to carry out in 2008, particularly in the second half of the year.

Obviously, there was a substantial effect due to the public markets stopping and, consequent-ly, the long loans of a billion dollars or euros ceasing.

“The unique thing about us is that we were still able to meet the demand,” he explains.

SEK has always been careful to diversify its borrowing. This is a strategy that is particularly important when a whole investment category grinds to a halt. For SEK, the credit crisis of autumn 2008 led to the plain vanilla segment more or less disappearing and the private bond

market taking on a more important role than before. Private investors have always been important for SEK, particularly in the U.S. and Japan, as they are less sensitive to market move-ments than large institutions. In 2008, private borrowing increased by USD 3 billion, and its share of total borrowing more than doubled.

In general, access to capital with short maturi-ties has been good for companies with top-class credit ratings, with the exception of the days fol-lowing the Lehman bankruptcy, when the mar-kets were effectively frozen. SEK successfully continued to make issues in Japan and the U.S. throughout the year. The increased dependence on the private bond market, however, means shorter maturities. Short-term loans are an important and valuable part of SEK’s business, but these alone are not sufficient.

Swedish export companies in sectors such as infrastructure and telecoms depend on being able to offer their customers long-term financing solutions when they are competing for 8- to 10-year contracts worth billions of krona. SEK needs to be able to meet this de-mand in both good and bad times, both when it’s easy to borrow capital and when it’s difficult. The new market conditions resulted in SEK’s role becoming more important.

in december, the Swedish parliament took the decision to contribute Skr 3 billion in equity and allow SEK to take over the shares in the state-owned company Venantius, a financial institution with equity of Skr 2.4 billion. This doubled SEK’s equity, making it possible to ex-pand its balance sheet and thus meet exporters’ financing requirements.

FUNDING

“ WE INCREASED OUR MARKET SHARE IN THE STRUCTURED MARKET.”

PER åKERLIND

Japan 44%USA 32%Asien utöver Japan 9%Europa 9%Mellanöstern 4%Norden 1%Sydamerika 1%

Japan 44%

U.S. 32%

Asia excl. Japan 9%

Europe 9%

Middle East 4%

Nordic region 1%

South America 1%

MARKETS 2008


Parliament also decided to grant SEK a credit facility of Skr 100 billion on a commercial basis, and parliament has also authorized the govern-ment to permit SEK to purchase state guarantees on commercial terms for its new borrowing up to Skr 450 billion. The credit facility makes it pos-sible for SEK to offer exporters long-term loans even at times when long-term capital is difficult or impossible to borrow on the public market.

“Our offering to the export industry is: ‘We organize the money,’” says Per Åkerlind. “It’s vital for the Swedish economy that the export industry is able to help its customers with financing solutions. We have shown that we can perform our role even during one of the worst crises ever.” ●

FUNDING

DURING thE YEAR SEK RECEIVED thE FOLLOwING AwARDS FOR ItS FUNDING OPERAtIONS:


SUStAINABILItY REPORt

SEK’S SUStAINABILItY REPORt FOR 2008sek is reportinG its sUstainabilitY work for the first time, in accordance with the international reporting GRI (Global Reporting Initiative) standard. We have selected the content of our sustainability reporting based on SEK’s core operations and our day-to-day contact with various interested parties. Those areas that we have chosen to report therefore reflect the most significant sustainability aspects for SEK. We are reporting at the C level of a three-level system. This annual reporting covers all of SEK’s units and subsidiaries, with the exception of Venantius, which SEK took over full ownership of in December 2008 and which is primarily based in Sweden. We also have a small representative office in Finland and a newly opened office in Singapore. Those responsible for the various areas covered have provided the underlying data for the following pages on sustainability. On pages 110–111 you can see a more detailed report of what GRI indicators we report. These pages have been reviewed by an external party. For more information, please contact SEK’s Communications department.


For SEK, taking responsibility is an integral part of our credit and consulting business. For us at SEK, sustainable development and taking responsibility mean that we consider issues relating to the environment, corruption, human rights, labor conditions, money laundering and the financing of terrorism.

Taking Responsibility

Swedish exports cUrrentlY account for more than half of Swedish GDP and are therefore vital for the country’s prosperity. Since 1962 SEK has supported companies

in need of financial solutions for exports and other projects. We are also a partner in munici-pal and state infrastructure investments that benefit the development of Swedish business. We also cooperate with banks and other financial institutions to provide small and medium-sized Swedish companies with competitive financ-ing. In addi tion, SEK administrates the Swedish system for state-supported export credits and the state’s program for concessionary credits. With our thorough knowledge of financing issues we contribute in all these roles to sustainable social development, both within and outside Sweden’s borders.

Supporting Swedish companies’ ability to develop in the highly competitive global market is core to our business and our responsibility. We contribute directly, for example when our financing leads to new job opportunities or when we invest in projects in environmental technology and enable Swedish companies to use their know-how to benefit the environment. It’s also clear that the environmental sector is a growing export market.

For us at SEK, sustainable development and taking responsibility mean that we take account of issues relating to the environment, corrup-tion, human rights, labor conditions and money laundering. We assess existing and potential


1. core valUes These are the core values that SEK stands for. 2. attractive emploYer To be an attractive employer, SEK needs to operate a business that is sustainable in the long term.

thREE REASONS whY RESPONSIBILItY IS AN INtEGRAL PARt OF SEK’S BUSINESS:

3. commercial opportUnities In view of the considerable untapped international environ-mental needs and Swedish busi-ness’ environmental expertise, SEK sees commercial opportuni ties for companies active, for example, in the export of environmental technology.

counterparties based on these areas and work constantly to develop the tools available to us to be able to integrate aspects of sustainability into our business in a more systematic way.

“We do a lot of business in countries with low environmental requirements and where there is corruption, which means that we need to constantly develop our processes and control systems. Our ownership by the state makes further demands of us in terms of social respon-sibility,” says Bo Leander, Senior Vice President, who has overall responsibility for sustainability issues at SEK. Bo Leander reports directly to the President and works with colleagues who are in charge of different aspects of respon sibility issues. SEK takes a comprehensive approach to these issues in its external as well as internal activities. ●



SEK’s work for sustainable development is integral to our day-to-day business. we follow international guidelines from the UN and the OECD regarding the environment, corruption, human rights, labor conditions and money laundering.

thE BASIS OF OUR RESPONSIBILItY

sek sUpports the Swedish Partnership for Global Responsibility, which is based on two fundamental international declarations of principles:• The UN Global Compact, with 10 principles relating to the

environment, corruption, human rights and labor standards. • OECD guidelines for multinational enterprises, with recom-

mendations on corporate responsibility.

We are continually developing our own guidelines and, thus, the responsibility we take. SEK’s responsibility is based on the company’s core values. These are reflected in policies that are based on the issues that we have prioritized regarding sustainable development and that all employees should follow.

environmental policYSEK’s environmental policy for lending means, for example, that SEK ensures that an environmental review is carried out for ex-

port projects for which there is a risk of a negative environmental impact and analyzes the project’s positive and negative environ-mental aspects.

policY aGainst corrUptionSEK’s ethical guidelines on corruption are based on us not accepting employees taking or giving bribes on their own behalf or on behalf of the company. We also require a declaration from all credit applicants that no bribes occur in the transaction in question.

policY aGainst moneY laUnderinG and FinancinG oF terrorismSEK applies the provisions in the law on measures against money laundering and the financing of terrorism. SEK has a systematic approach for assessing the risk of money laundering and the financing of terrorism. ●


RESPONSIBILItY thROUGh DIALOGUE


cUstomersSEK’s customers are various kinds of private and public organiza-tions that make use of our financing solutions and our advisory services to develop their business. We conduct day-to-day dialogue with our customers, and sustainability is an integral aspect of that dialogue. This makes demands on both us and our customers for those prioritized issues.

emploYeesCommitment and know-how are central to SEK and our employees. Yearly employee surveys and employee discussions are examples of the tools we use to gain an overall picture of employees’ expectations at SEK. SEK also organizes regular information days for staff about sustainability.

oUr ownerThe Swedish State owns SEK, and brings its influence to bear through annual general meetings. The Ministry for Foreign Affairs and its Department for the EU Internal Market and the Promo-tion of Sweden and Swedish Trade (MFA-FIM) are responsible for the state’s ownership.

investorsSEK’s capital is funded by borrowing on the international capital markets. We are therefore in continual contact with our lenders.

cooperation partnersSEK cooperates with the Swedish Export Credits Guarantee Board (EKN) and other guarantee institutions within the OECD, Swedish and foreign banks, and other financial institutions in order to support our joint end-customers. Together, we also spread the risks in the transactions we conduct. Our collabora-tion with banks is also aimed at harmonizing social, ethical and environmental requirements. We cooperate with organizations

such as ALMI Företagspartner and EKN, on, for example, export loans to small and medium-sized companies. Our network also includes the Ministry for Foreign Affairs, the Swedish Trade Council, Swedfund, the Swedish Energy Agency, the Swedish International Development Cooperation Agency (Sida) and Swedish embassies abroad.

In the Nordic region, Finnish Export Credit (FEC), Norway’s Eksportfinans and the Nordic Investment Bank (NIB) are three strategic parties also involved in our network. Cooperation in the Nordic Region also forms the basis for our network of contacts in the rest of the world. Elsewhere, institutions like the German development bank Kreditanstalt für Wiederaufbau (KfW) and Export-Import Bank of the United States (USEXIM) are important partners. We also have strong and established business relations with a number of multilateral institutions such as the World Bank Group (IBRD, IFC and MIGA), the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB).

Read more about the organizations in our network at www.sek.se.

Other examples of particular organizations with which we exchange information on sustainability issues are non-profit organizations like Amnesty International, Transparency Interna-tional and Swedwatch. We are also involved in the international cooperation initiative FATF (Financial Action Task Force), which combats money laundering. Dialogue ranges from individual meetings and participation in seminars on various topics to gathering information about various counterparties, countries and projects. SEK, and in particular the Credit Management department, has noted a marked interest in how we integrate sustainability issues in our business in practical terms. ●

based on international recommendations like the OECD’s guidelines for multinational companies and the UN’s Global Com-pact, SEK is further developing its work with issues of responsibil-ity in close cooperation with interested parties. They help us iden-tify needs, clarify mutual expectations and make progress in our work with the sustainability issues that we have prioritized. SEK has contact with a large number of parties both in Sweden and internationally. Through our network we are able to offer not only financing solutions and advisory services, but can also collaborate

on issues such as risk management and other aspects of business. Other parties, like banks, adopt different roles and may be SEK’s customer, competitor and cooperation partner. We also participate in projects and areas outside the pure business arena, with the aim of contributing to the development of society. One example is our involvement in Global Challenge, an organization that works to improve conditions for economic, social and environmentally sustainable development in Sweden and internationally.

OUR ORGANIZAtION’S CORE StAKEhOLDERS:



while issUes relating to the environment, corruption, human rights, labor conditions and money laundering are part of our credit assess-ment process, it is difficult to have full insight into all of SEK’s customers and cooperation partners. And it’s even more difficult to gain an overall view of the parties with which they work.The most important thing for us is to know that our counterparties act responsibly, deal with sustainability issues satisfactorily, and, as far as is possible, we of course want to know that they are working with responsible counterparties.

nevertheless, financing projects are often complex and involve many different standpoints. It’s extremely important that SEK’s credit assess-ment includes a thorough review of risks, and, at the end of the process, we adopt a position. It’s also important to note that SEK always acts within guidelines from the Swedish State and the applicable legislation. In Sweden, the legisla-tion on the export of armaments, for example, is

restrictive and lays down requirements for areas such as human rights.

But, as noted above, there are also positive aspects to each project. Sometimes these are of direct benefit to the environment or the society in which the investment is being made. What’s important is that before each decision that we take we have an overall understanding of both the opportunities and the risks.

For SEK itself, responsibility is largely about minimizing risk. There are strong indications that companies that can clearly show how they act responsibly with regard to the environment and society will have a greater ability to attract capital in the future, and will consequently have a lower cost of capital. This is another reason why we need a clear understanding of our counterpar-ties in respect of the environment, corruption, human rights, labor conditions and money laun-dering, on which our definition of sustainable development is based. ●

LENDING FOR A BEttER FUtURESEK contributes directly to sustainable development through its lending. we also see business opportunities in areas such as the environment and infrastructure that have a positive effect on society.


Based on the principles by which SEK stands, SEK’s Credit Management department is in charge of ensuring that sustainability issues are integrated into the process of assessing our counterparties.

sek obtains relevant information so that it can make an assessment of counterparties with regard to sustainability factors. Our dialogue with a counterparty is vital in order to make an overall assessment of the requested credit facility. We also cooperate extensively with the Swedish Export Credits Guarantee Board and other state guarantee institutions. Before a potential project, SEK makes extensive use of data from international and national informa-tion sources. For state-supported export credits, SEK follows the OECD binding regulations on environmental assessment based on an envi-ronmental classification system. Since 2005, environmental assessments have also applied to export finance and other lending made on market-based terms.

Our account managers use check lists to en-sure that our prioritized sustainability issues are taken into consideration. They obtain informa-tion about the counterparty’s policies, internal sustainability work and other documentation. In cases of lending where there is a risk that the borrower will not meet the requirements defined by SEK, or where there is a lack of infor-mation, we carry out a more in-depth analysis. There may be cases where it is not clear that a counterparty can be expected to follow those principles and norms that SEK supports (Global Compact’s 10 principles and OECD’s guidelines for multinational companies).

In 2008, we extended this review process to make the assessment a more systematic part of the credit analysis, in terms of both quantity and quality. SEK’s analyst for social responsibility, Martina Wikström, is an in-house expert and coordinator in this area. She has led our work on developing a fully comprehensive and systematic way of integrating SEK’s social responsibility into the credit assessment process. This has resulted in what is known as the traffic light system.

assessment oF coUntriesThe traffic light system has initially been inte-grated into SEK’s country analyses. According to the system, risk classification is aimed at raising awareness and indentifying and providing an overall assessment of actual or potential risks of directly or indirectly contributing to violations in various countries. The assessment within the categories – SEK’s prioritized areas – pro-vides an understanding of how international principles and the country’s regulations are met

in practice. By examining the country’s actual structures at these levels we gain both informa-tion and experience about the society’s structure and, in particular, about vulnerable sectors and groups in the society. A red or amber light for a country provides an initial warning signal, indicating a particular need for more in-depth risk mapping at the level of business practice. In 2008, 23 countries were classified.

companies and banksThe assessment of companies and banks is also based on the traffic light system. They are classi-fied in terms of risk in the same way, according to SEK’s prioritized areas of sustainability, to identify how these counterparties deal with sustainability issues. The assessment should reflect the risk in the company or project. Risk mapping using the traffic light system provides an initial indication about a counterparty. A red classification requires more in-depth risk map-ping. When necessary, and when the level of risk is deemed to be higher, an additional qualitative assessment of counterparties is performed in special cases.

Whether or not a red light leads to financing or not being granted is decided on a case by case basis. “There have been cases where we have declined a transaction when our requirements were not met,” says Martina Wikström.

Another important reason for the traffic light system for classifying counterparties is that it creates awareness among employees about SEK’s sustainability work within the frame-work of the credit process. Martina Wikström also emphasizes the importance of embedding SEK’s social responsibility internally within the company and of developing methods, and the work on sustainability, in close dialogue with the business side, which actually applies them in its day-to-day work. In 2008, SEK analyzed and classified just over 650 states, municipali-ties, public organizations, companies and banks, of which about 50 counterparties were assessed under the revised method. Ongoing monitoring is conducted in all customer relations. SEK is continually working to strengthen, systematize and document the assessment of counterparties with regard to the environment, corruption, human rights, labor conditions and money laundering, and in all of our interaction with business partners. ●

thE tRAFFIC LIGht SYStEM SENDS AN IMPORtANt SIGNAL



SUStAINABILItY REPORt – ENVIRONMENTAL RESPONSIBILITY

International demand for environmental investments, stricter environmental requirements and Swedish industry’s know-how and capacity in several environmental areas are contribut ing to growth in Swedish environmentally related exports. SEK is working in particular to take advantage of business opportunities and contribute to a better environment, for example in Central and Eastern European countries.

For the export oF swedish environ-mental expertise, especially in clean technol-ogy in which Sweden is a world leader, SEK is important both as a lender and financial advi-sor. During 2008, for example, SEK Advisory Services was commissioned by the European

Bank for Reconstruction and Development to initiate an energy-saving program in Ukraine, known as UKEEP. Energy efficiency in Ukraine is markedly lower than in EU member states, and its industrial facilities use large amounts of fossil fuels. This is mainly because energy is

Advisory Services for a Positive Environmental Impact



ENVIRONMENtAL wORK IN POLAND Another project with a clear environmental focus is the agree-ment that SEK signed during the year with the Polish bank BOS Bank. This cooperation aims to make it easier for Swedish com-panies to supply environmentally friendly technology to the Polish market and help them monitor public procurement tenders in Poland. BOS Bank has a clear environmental focus and is an important participant in the implementation of the coun-try’s EU adaptation work in the environment sector. The current agreement provides valuable support for Swedish companies in the clean tech sector that want to penetrate or expand in the Polish market.

still mostly generated from coal and imported Russian gas, and the market is subsidized by the state. The subsidies are due to stop, how-ever, which means that there is a need to make the energy market more efficient and reduce companies’ energy costs. This offers significant environmental advantages. It is mostly compa-nies in processing and manufacturing indus-tries, but also agriculture, steel making and the food industry that have significant potential for energy efficiency.

SEK wants to raise awareness among Ukraini-an companies and Ukrainian commercial banks about how they can help increase energy effi-ciency and reduce carbon dioxide emissions. In 2008, we also arranged well-attended seminars

around the country to increase knowledge about these opportunities. SEK has primarily spoken about energy efficiency as a financial issue more than as a technical issue, despite it usually being the other way round.

The project has already been successful both financially and from an environmental point of view. Anders Lund at SEK Advisory Services, who is in charge of the UKEEP project, says that by the end of 2008 annual energy savings of 1.6 TWh had been achieved. That’s equivalent to the annual residential electricity consumption of a city the size of Helsinki. Carbon dioxide emissions have fallen by 410,000 tons a year, a reduction that equates to emissions from about 180,000 cars. ●


GOALS FOR 2009

Develop methods and routines to measure greenhouse gas emissionsCut greenhouse gas emissions per full-time employeeReduce energy consumption per full-time employee100% of electricity consumed to be certified as “good environmental choice”Cut consumption of office paper per full-time employee

ENVIRONMENTAL INDICATORS

Unit 2008Total energy consumption GJ 5,000Energy consumption per full-time employee 1 GJ/employee 27Greenhouse gas emissions (energy) Tons 46Greenhouse gas emissions 2 (other) Tons 750Greenhouse gas emissions per full-time employee 2

Tons CO2/employee 4.3

Water consumption3 Cubic meters 2,201Total purchased office paper4 Tons 6Consumption of office paper per full-time employee 4 Kilos/employee 32Waste – office paper and cardboard 4 Tons 5.98Waste – electronics4 Tons 0.984Level of recycling % 991 185 full-time employees. 2 Rough estimate, refers to CO2 equivalents.3 Refers only to SEK’s own property 4 Stockholm only. in Stockholm.

OUR OwN ENVIRONMENtAL wORK

Our environmental work starts with our own business. that’s why SEK employees are working to reduce their own environmental impact.

SEK’s main environmental impact is in energy consumption at its offices and in business travel. Since 2007 we have been using certified “good environmental choice” electricity at our Stockholm office. Our goal for 2009 is for all our energy to be gener-ated from renewable sources, including for our external data centers.

During the year we upgraded our video-conferencing equipment, which in recent years has reduced the need for flights, particularly between SEK’s offices. We also arrange for employees to borrow a bicycle to get to customer meetings that are nearby or for other purposes. We estimate that the carbon dioxide emissions from business trips in 2008 were about 750 tons of CO2 equivalents. One goal for 2009 is to further develop our methods of measuring and calculating our emissions.

SEK has decided to compensate for its 2008 greenhouse gas emissions by buying emission reductions from Clean Develop-ment Mechanism projects. This means that

we will purchase reductions from climate projects in developing countries that are covered by UN and EU system regulations and that are part of the Kyoto Agreement. The project chosen by SEK will contribute to Kyoto Agreement objectives by ensuring that emissions are reduced, have a high level of transparency, and will also contribute to sustainable development.

SEK also has an environmental impact through the purchase of goods. During the year we changed our printers and copying machines, and our copy paper, to environ-mentally certified products. In addition to the direct environmental advantages of this, we can now also measure paper consump-tion and set goals for the future. For some time we have been working with environ-mentally certified suppliers, and provide organic fruit for employees. Since 2007, bottled mineral water has been replaced by carafes of tap water and cups made of corn starch instead of plastic. Our promo-tional pens are also made of corn starch, which means that they are compostable. This is just a selection of what SEK is doing to reduce the company’s environmental footprint.



SUStAINABILItY REPORt – SOCIAL RESPONSIBILITY

sek has been active in the Baltic region since the early 1990s. Our focus is on providing advi-sory services for projects that improve energy supply, transport infrastructure, reduce envi-ronmental impact and benefit local develop-ment. SEK has previously carried out advisory assignments, for example, in the Lithuanian energy sector.

SEK’s membership in the network Institutions of the European Union Specialising in Long-Term Credit (ISLTC), which consists of export credit institutions within the EU, also plays an important role in SEK’s endeavors to promote the work in the Baltic region. The aim of the ISLTC is to exchange information, ideas and knowledge that may be of benefit to member

countries’ economies and development in the region. SEK held the chairmanship in 2008 and organized the organization’s annual meeting in Stockholm on the themes of Baltic coopera-tion and the environment. These themes reflect the Swedish government’s priorities during the Swedish Presidency of the EU during the second half of 2009 and the great significance of the environmental issue ahead of the UN’s environmental conference in Copenhagen in December 2009. Baltic cooperation encom-passes many different groups at both state and regional level. Of particular importance is the collaboration with business in order to provide companies with better opportunities to gain a presence in this region. ●

A Region with Development PotentialSEK wants to contribute to economic development in Central and Eastern Europe, with a special focus on the Baltic Region, which is important for Swedish economic growth. we are working with other export credit organizations in Europe for greater collaboration and local development in the region.



NUMBER OF EMPLOYEES BREAKDOWN BY AGE AND GENDER (NUMBER)

LEVEL OF EDUCATION (%)

At Dec. 31, 2008Total number of employees 1 198

of which management 31of which non-management 167

of which permanent employees 186of which temporary employees 12

of which full-time employees 2 192of which part-time employees 3 6

1 Does not include employees who have not yet started.

2 Full-time employees refers to the level of employment to which an employee is entitled to work, i.e. those on parental leave or those employees who work part-time due to the age of their children are counted as full-time employees here.

3 Refers to contracts drawn up for a level of employment of less than 100 percent.

At Dec. 31, 2008Number of employees who termi-nated their employment in 2008 4 16

of which women 6of which men 10

of which under the age of 30 0of which between 30 and 50 13of which over 50 3

of which in Sweden 16of which in Finland 0

4 Refers to temporary employment where-by employment ceased in accordance with the employment contract.

Data also includes 11 Venantius employees.

2008 2007

Number of employeesof which in Finland

Number of employeesof which in Finland0

50

100

150

200

250

Women

Men0

5

10

15

20

25

30

35

40

< 50 yrs 40-49 yrs 30-39 yrs >29 yrs

University graduates

2008 20070

20

40

60

80

100%


A Dependable Employer that Invests in StaffSEK is a long-term partner, for both our customers and employees. the development of leadership skills, expertise and organizational efficiency are our areas of priority.

sek and oUr employees need to develop constantly so that we can perform our task to the best of our abilities. An organization that learns through its day-to-day work with employees that take responsibility for both the development of the business and their own skills are key to achieving success.

It’s important for SEK that we are able to attract, retain and develop the most skilled and committed employees. Our approach is based on our core values: Respect, Dialogue, Profes-sionalism and Drive. These core values should be part of all our work that goes towards creat-ing an attractive place of work.

In 2008 staff turnover at SEK was 9 percent, and 37 new members of staff were recruited. Of these, 15 were replacement hirings.

Hiring the right women or men for the right position using structured and well thought out recruitment is part of our efforts to achieve high organizational efficiency.

Because our investment projects and business opportunities are located throughout the world, an international background and experience

are a key aspect of employees’ skill sets. We are pleased that many of our employees are able to use their multicultural backgrounds in their careers with SEK.

Skills development through internal career paths and training constitute other important elements in SEK being an attractive employer. “We also have a relatively good level of internal mobility, with employees changing jobs within the company and taking on new responsibilities. This is an important part of our ability to retain staff,” says SEK’s Director of Human Resources Sirpa Rusanen.

Training opportunities are increasing in 2009 through, for example, training weeks with a focus on SEK’s values and product development.

it all starts with good leadership. That’s why at SEK we work mindfully to develop lead-ers in the organization. As part of the program for leadership development that was introduced in 2007, over the past year we completed an initial training course for SEK’s managers. Based on SEK’s core values, we have developed


Goals 2008 2009 2011SEI = Satisfied employee index 67 75 85Leadership index 66 75 85Organizational efficiency 50 60 80


SEK EMPLOYEE OF thE YEAR

an overall leadership philosophy, which, for example, emphasizes the personal aspect of leadership and the importance of the potential of each employee contributing to SEK’s success. This proactive work with leadership develop-ment will continue in 2009.

It’s also important that we adapt the organi-zation’s structure and processes to enable it to be highly efficient. This is something that has also been highlighted in employee surveys in recent years. It’s encouraging that last year’s survey showed considerably improved results for organizational efficiency. “This allows an organization to work and cooperate more ef-fectively, and was particularly evident amid the heavy workload in the autumn as a result of the financial crisis,” notes Sirpa Rusanen.

Of course, there’s still room for improve-ment when it comes to working more efficiently within the organization, and this is an area with which we are constantly working.

sek is a small and flexible organization, which makes it easy for employees to talk to their managers and tailor their work tasks to their skills and ambitions.

Our flexibility also provides employees with good opportunities to find effective ways of balancing their work and private lives.

Absence due to sickness is a key indicator of the quality of a work environment: in 2008 this was about 2 percent. During the year SEK focused particularly on communicating the importance of health. In 2008 employees also took greater advantage of opportunities such as fitness vouchers and massage and participated in a health initiative using pedometers. During the second half of the year about 30 employees took voluntary stress tests to check for signs of high stress levels.

The 2008 employee survey showed improved results across all parameters. The high levels of motivation and skills were particularly encouraging. Through focused efforts, we are continuing to work towards further improving leadership, skills and organizational efficiency within SEK. ●

Patrik Lindgren Credit Analyst, Financial Institutions, Credit Managementcomments: Patrik is an excellent representative for SEK’s core values in the way that he works with respect, through dialogue, and in his professionalism and drive.

Through his know-how, his commitment, his engaging, calm and helpful attitude towards colleagues at SEK, Patrik is always ready to help and meets expectations. What’s more, he does this in a straightforward and clear way, making him a particularly valuable person in our work.

Congratulations!


PATRIK LINDGREN


Infrastructure for All of SocietyCredits for infrastructure projects that improve public communications are a part of SEK’s business. At the end of 2008 we signed an agreement of this kind to part-finance a motorway in Poland. the road creates another link between Scandinavia and the rest of Europe.

toGether with the Nordic Investment Bank and the European Investment Bank, SEK decided in 2008 to part-finance stage two of the Polish A1 motorway. The road is a project within Transeuropean Transport Networks (TEN-T), which aims to improve communications between EU member countries. Sweden’s parliament decided in 1995, when Sweden joined the EU, that SEK would be actively involved in financing these kind of projects.

It involves a 62 kilometer (39 miles) stretch between the towns of Nowe Marzy and Torun. SEK’s lending will start on condition that the project company Gdansk Transport Company (GTC), which will own and operate the motor-way, meets a number of lending and environ-mental conditions. The motorway is estimated to be complete in 2011. Skanska is carrying out a large part of the construction contract.

When the entire motorway is complete it will stretch from Gdansk, through Poland, to the Czech Republic, Slovakia and Hungary. “This infrastructure investment is important for the entire Baltic area, and shows the

SEK’s business involves many different stake-holders. Our business involves us granting export credits to companies and other lend-ing to both the private and public sector to strengthen the international competitiveness of Swedish business. These transactions have a positive effect on the Swedish national econo-my and welfare.

The economic value that our business creates is distributed by SEK in different ways and to different stakeholders. To the right is a sum-mary of the economic value that we create and that benefits our principal stakeholders.

importance that Swedish companies and Swed-ish exports have in developing the region’s industrial potential and competitiveness,” says Anna Karin Ljung, who works with the motor-way project at SEK. the a1 is an example oF how SEK integrates environmental aspects in all large infrastructure projects. The motorway passes through, or is in the vicinity of, three Natura 2000 areas and other protected natural areas. SEK has therefore carried out a more in-depth environmental review. This has, for example, meant a field visit to Poland, collaboration on the project’s environmental aspects together with other financiers and a review of the requi-site environmental documentation. Following this, SEK made the assessment that Gdansk Transport Company had been proactive with regard to the issue of the environment. For example, measures have been taken to mitigate the potentially negative effect on the environ-ment in line with both EU directives and Polish environmental legislation. ●

SEK’S ECONOMIC VALUE CREATION IN 2008

Skr mn Stakeholder 2008 2007Value createdIncome from interest Borrowers (customers) 12,964.1 11,046.8Subsidies State – –

Value distributedInterest expenses Lenders (financiers) –11,420.8 –10,213.7Supplier costs Suppliers –111.8 –87.7Salaries and benefits Employees –228.5 –194.9Taxes State –41.3 –151.1Dividend State – –Sponsoring Society –0.1 –0.1

SUStAINABILItY REPORt – ECONOMIC RESPONSIBILITY


Owner and Management

SEK is wholly owned by the Swedish State. The owner exercises its influence at general meetings of the company and through representation on the Board of Directors. Among other things, such representation on the Board of Directors ensures that the state has good insight into the company.

The control of SEK is divided between the shareholders, the Board of Directors, and the President in accordance with the Swedish Companies Act, the Articles of Association and pro-cedural rules of the Board of Directors. The Board of Directors appoints the President, who oversees the management of the com-pany in accordance with the Board’s guidelines and instructions.

The owner has decided that the company should adhere to the rules both of the government’s 2007 Owner Policy and the Swed-ish corporate governance code (the Code). The basic principle is that the Code complements the government’s 2007 owner policy. Non-compliance with the Code and the government’s 2007 owner policy may be found in the following Corporate Gover-nance Report section.

thE COMPOSItION AND wORK OF thE BOARD OF DIRECtORS AND DIVISION OF RESPONSIBILItIESThe tasks of the Chairman of the Board of Directors conform to the Swedish Companies Act and the rules of procedure of the Board of Directors. The Chairman of the Board monitors the work of the Board of Directors and is responsible for ensuring that the other members of the Board are provided with the necessary information. When required, the Chairman of the Board participates in impor-tant meetings and represents the company in ownership matters.

the Board of Directors establishes rules of procedure every yearThe rules of procedure govern such matters as reporting to the Board of Directors, the frequency and form of Board meetings, delegation and assessment of the work of the Board of Directors and the President. Besides the appointment of the President, the most important tasks of the Board of Directors are to draw up business plans and budgets, make certain lending- and funding-related decisions, approve major investments and significant changes to the company organization, and to establish central instructions. In addition, the Board of Directors monitors eco-nomic developments and has overall responsibility for internal auditing and risk management.

the composition of the Board of DirectorsThe company’s Board of Directors, which is appointed by the annual general meeting, consists of nine members. None of SEK’s executive management body are members of the Board. Four of the members of the Board are women. One of the members of the Board is a foreign citizen. The average age of the members of the Board is 53.9. The annual general meeting held on April 23, 2008 elected the following persons to the Board of Directors: Ulf Berg (re-elected), Christina Liffner (re-elected), Karin Apelman (re-elected), Pirkko Juntti (re-elected), Helena Levander (re-elected), Bo Netz (re-elected), Harald Sandberg (re-elected), Jan Roxendal (re-elected) and Risto Silander (re-elected). Ulf Berg was appointed to the chairmanship of the Board and Christina Liffner to the vice chairmanship. Information about the members of the Board may be found on page 46. Information about fees to the Board may be found in note 5 on page 89. Information about the President may be found on page 48.

Appointment of the Board of Directors and auditorsNomination to the Board of Directors is dealt with by the Swedish Ministry of Foreign Affairs. This process is coordinated by the unit for government action within the Ministry of Industry, Employment and Communications. The owner is responsible for choosing the Board and auditors. However, the practical work of procuring auditors is managed by the company. The final decision is taken by the owner at the annual general meeting.

At SEK’s annual general meeting of 23 April, 2008 authorized public accountant Jan Birgerson (Ernst & Young) was appointed auditor and authorized public accountant Anna Peyron (Ernst & Young) was appointed alternate auditor to the company.

Description of the work of the Board of DirectorsThe Board of Directors met on 15 occasions in 2008. In addition, the Board of Directors held a special strategy seminar. The work of the Board was carried out in accordance with the established rules of procedure. Meetings of the board discussed such matters as annual and interim reports, business activities, the 2009–2011 business plan, the 2009 budget, organization and staffing issues, employee surveys and questions relating to capital structure, return on investment and dividend policy. One of the meetings of the Board was held in Lund. At this meeting of the Board, the Board of Directors and the executive management were informed of the activities of Sparbanken Finn and a study visit was made to Ideon Science Park and Tetra Pak.

Besides the Board committees and the work for which the chairman is responsible, work is not divided within the Board of Directors. The company’s general counsel acted as the secretary to the Board of Directors. The Board Credit Committee (the committee dealing with credit-related matters), the Board Finance Committee (the committee dealing with other financial matters besides those relating to credits) the Board Remunera-tion Committee (the body that deals with certain remuneration matters) and the Board Audit Committee (the body dealing with company’s financial reporting) met 13, 5, 3 and 7 times respec-tively during the year.

While examining the annual accounts the company audi-tors participated in two meetings of the Board of Directors and commented on their observations arising from the scrutiny and assessment of SEK’s operations.

Evaluation of the work of the Board of Directors and the executive management The Board of Directors assesses its own work and that of the executive management once a year. Constant assessments are made during the financial year through the chairman’s conversa-tions with other members of the Board. In addition, a separate assessment is made under the leadership of the chairman.

thE BOARD COMMIttEESthe Credit CommitteeThe committee discusses matters relating to credits and credit decisions. The Board of Directors has drawn up instructions for the Credit Committee. Minutes from meetings of the Credit Committee are submitted to the Board and examined during board meetings. Decision-making rights regarding credits follow an order of delegation established by the Board of Directors. The Board has appointed the following four Board members to the Credit Committee: Christina Liffner (chairwoman), Pirkko Juntti,


Helena Levander and Harald Sandberg. From executive manage-ment, the President and the Head of Risk were ordinary members of the committee. The company’s general counsel acted as the secretary to the committee.

the Finance CommitteeThe committee is a drafting and reference group for the Board of Directors and the executive management in overall questions relating to the company’s financial activities. Such financial activities refer to long-term and short-term borrowing, liquid-ity management, risk measurements and risk limits, and matters relating to policy or quality assurance. The Finance Commit-tee is empowered to decide upon the borrowing of certain risk capital. The Board of Directors has established instructions for the Finance Committee. Minutes from meetings of the Finance Committee are submitted to the Board and examined during board meetings.

The Board has appointed the following four members to the Finance Committee: Risto Silander (chairman), Karin Apelman, Bo Netz and Jan Roxendal. From the executive management, the President and the CFO were ordinary members of the commit-tee. The company’s general counsel acted as the secretary to the committee.

the Remuneration CommitteeThe committee discusses matters relating to salaries and other benefits for the company’s executive management and overall policy issues relating to salaries and other benefits. The commit-tee decides on salaries and other benefits for the executive man-agement (with the exception of the President) and the con ditions for the general incentive system. The Board of Directors has

drawn up instructions for the Remuneration Committee. Minutes from meetings of the Remuneration Committee are submitted to the Board and examined during Board meetings. The Board has appointed the following three members to the Remuneration Committee: Ulf Berg (chairman), Christina Liffner and Harald Sandberg. The President participated in meetings of the com-mittee in matters that did not relate to the President’s terms and conditions of employment. The company’s general counsel acted as the secretary to the committee.

the Audit CommitteeAt the beginning of 2008, the Board established an audit com-mittee. The Board deemed that, in respect of efficiency, it would be beneficial to have a committee that, among other things, dealt with matters relating to the company’s financial reporting and corporate governance report (including the Board’s internal audit report) in accordance with the Code. The Board has set out the instructions for the Audit Committee and appointed the follow-ing Board members to the committee: Jan Roxendal (chairman) and Christina Liffner. The Board has judged that two commit-tee members is a suitable number for the committee’s work. The President is entitled to participate in the committee’s meetings. SEK’s Chief Accounting Officer has reported on the committee’s work and SEK’s general counsel has acted as secretary to the committee.

REMUNERAtION OF MEMBERS OF thE EXECUtIVE COMMIttEEFor information on the remuneration of the Board of Directors, the executive management and auditors, see page 89, note 5.


Board of Directors and Auditors

Harald SandbergBorn: 1950. Education: MA, University of Uppsala.Elected: 2006. Member of SEK’s Remuneration Committee and SEK’s Credit Committee.Previous posts: Served as Ambassador to Jakarta, Indonesia and Seoul, South Korea, and as Head of the Department for the EU Internal Market and the Promotion of Sweden and Swedish Trade (MFA-FIM).Other appointments: Assistant Undersecretary, Ministry of Foreign Affairs, Head of Human Resources.

Christina Liffner Vice Chairwoman of the BoardBorn: 1950. Education: MBA, Stockholm School of Economics.Elected: 2003. Chairwoman of SEK’s Credit Committee and member of SEK’s Remuneration Committee and Audit Committee.Previous posts: AssiDomän AB, Vice President and CFO, and various financial responsibilities at Asea AB/ABB.Other appointments: Chairwoman of the Board of Directors of Svensk Adressändring AB and the Swedish Endometriosis Association. Member of the Board of Directors of Sveaskog AB, Länsförsäkringar Bergslagen, SJR in Scandinavia AB and Prevas AB.

Karin ApelmanBorn: 1961. Education: MBA, Stockholm School of Economics.Elected: 2003. Member of SEK’s Finance Committee.Previous posts: LFV, CFO. Saab Aircraft Leasing, Vice President. SAS, Leasing and Project Finance Manager.Other appointments: Director General and member of the Board of Directors of the Swedish Export Credits Guarantee Board (EKN). Member of the Swedish Radiation Safety Authority’s financing delegation.

Bo Netz Born: 1962. Education: Economist, University of Stockholm.Elected: 2006. Member of SEK’s Finance Committee.Previous posts: The Swedish National Audit Office, Efficiency Auditor. The Swedish Ministry of Finance, Departmental Secretary. The Swedish Ministry of Finance, Assistant Undersecretary, Company and Property Unit.Other appointments: Assistant Undersecretary, Swedish Ministry of Finance, Head of Budget Department.

Risto SilanderBorn:1957. Education: MBA, Stockholm School of Economics.Elected: 2004. Chairman of SEK’s Finance Committee.Previous posts: Alfred Berg, Group Chief Executive and UBS Warburg, Nordic Manager.Other appointments: Member of the Board of Directors of East Capital Asset Management AB, E. öhman Jr Holding AB, 11 Real Asset Fund AB, Stronghold Invest AB and Trygg Stiftelsen, Varenne AB, BREVAN Howard Ltd.

Pirkko JunttiBorn:1945. Education: Bachelor of Laws, University of Turku, LL.M.Elected: 2005. Member of SEK’s Credit Committee.Previous posts: JP Morgan, Director and HSH Nordbank, Senior Advisor.Other appointments: Member of Directorate of the Financial Supervisory Authority of Finland, Member of the Board of Directors of Rautaruukki Oyj and the Finnish Aviation Authority, Finavia.

No members of the Board hold shares or other financial instruments in the company.


Ulf Berg Chairman of the BoardBorn: 1951. Education: MSc, Electrical Engineering, Chalmers University of Technology.Elected: 2006. Chairman of the SEK Remuneration Committee.Previous posts: Saab Ericsson Space, Vice President. Ericsson Microwave Systems, President. Ericsson AB, President. Management consultant with own company.Other appointments: President of the Swedish Trade Council. Member of the Board of Directors of RayClinic AB and Volvo Aero.

Helena LevanderBorn: 1957. Education: MBA, Stockholm School of Economics.Elected: 2004. Member of SEK’s Credit Committee.Previous posts: Neonet AB, Vice President. Odin Fonder, President. Nordea, Asset Management, Senior Fund Manager.Other appointments: Part owner and President of Nordic Investor Services AB. Member of the Board of Directors of Erik Penser Bankaktiebolag, Nordisk Energiförvaltning ASA, SBAB, Stampen AB, Transatlantic AB, and Wiborg Kapitalförvaltning.

Auditors

OrdinaryJan Birgerson Authorized Public Accountant, Ernst & Young.Born: 1954.Auditor at SEK since 2008.

AlternateAnna PeyronAuthorized Public Accountant, Ernst & Young.Born: 1965.Auditor at SEK since 2008.

Jan RoxendalBorn: 1953. Education: General College Degree in Banking.Elected: 2007. Chairman of SEK’s Audit Committee and member of SEK’s Finance Committee.Previous posts: Intrum Justitia AB, President. ABB Group, Vice President. ABB Financial Services, President and Group Head.Other appointments: President of Gambro AB. Chairman of the Board of Securia Intressenter AB. Member of the Board of Directors of CBN Chambers Business Networks AB.

48 SEK annual report 200848 SEK annual report 2008

Management

Peter Yngwe PresidentBorn: 1957.Education: Degree of Doctor of Humane Letters and MBA from Old Dominion University, Norfolk, Virginia, USA.Employed: 1984.Assignments: Chairman of the Board of Directors of SEK Financial Advisors AB, SEK Customer Finance, SEK Exportlånet AB, AB SEK Securities and Venantius. Member of SEK’s Credit Committee and SEK’s Finance Committee.

Måns Höglund Executive Director – Corporate & Structured FinanceBorn: 1951.Education: MBA, Stockholm School of Economics.Employed: 2002.Assignments: Member of the Board of Directors of SEK Customer Finance AB, SEK Exportlånet AB, SEK Financial Advisors AB and AB SEK Securities. Alternate to SEK’s Credit Committee.Other appointments: Chairman of the Board of Directors of Searching4Knowledge AB. Member of the Board of Directors of Intellectual Capital Sweden AB.

Jane Lundgren EricssonPresident – AB SEK SecuritiesBorn: 1965.Education: Bachelor of Laws (Stockholm), LL.M (London).Employed: 1993.Assignment: Member of the Board of Directors of SEK Financial Advisors AB.

Sirpa RusanenExecutive Director – Human ResourcesBorn: 1964.Education: Behavioral Science, University of Lund.Employed: 2005.

Sven-Olof SöderlundExecutive Director – Strategic Analysis & PlanningBorn: 1952.Education: Economics, University of Stockholm.Employed: 1988.Assignments: Member of the Board of Directors of SEK Customer Finance, SEK Exportlånet AB, AB SEK Securities and Venantius AB. Member of SEK’s Credit Committee.

Per åkerlindExecutive Director – Capital MarketsBorn: 1962.Education: MSc Engineering, the Royal Institute of Technology, Stockholm (KTH).Employed: 1990.Assignments: Member of the Board of Directors of AB SEK Securities. Member of SEK’s Finance Committee.Other appointments: Chairman of the Credit Markets Group, Swedish Society of Financial Analysts (SFF).


Corporate Governance ReportThe company applies the Swedish Corporate Governance Code (the Code), which together with the State’s 2007 owner policy, governs its operations.

The Board of Directors is responsible for ensuring that the company’s financial reports are prepared in accordance with statutory require-ments, applicable accounting standards and other requirements. The quality of the financial reporting is ensured by the Board of Directors reading, and submitting points of view for pro posals on interim reports and annual reports prior to publication. During meetings of the Board of Directors, matters of material importance to financial reporting are discussed, and prior to each meeting reports are sub-mitted to the Board about financial and economic developments in accordance with predetermined templates. Work relating to these matters is mainly dealt with by the Audit Committee, which reports back to the Board. The Board of Directors and the company auditors communicate in a number of ways. Communication takes place primarily through the auditors’ participation in the meetings of the Audit Committee. The Board also receives summary audit reports. Each year, in a mandate letter, the Audit Committee establishes the way in which auditors are to work and rules for the procurement of auditing-related services.

The auditors receive written documentation, which is sub mitted to the Board of Directors, and study all the minutes from meetings of the Board of Directors and the committees. In addition, the auditors participate in at least one meeting of the Board of Directors per year. During the year, the President of the company has regular meetings with the auditors during which the following matters are discussed: the direction and scope of the audit, the coordination of internal and external audits, internal control, critical auditing issues, and financial reports submitted by the company.

In addition, the Board is responsible for a well thought-out and firmly established policy and strategy for dealing with respect for the environment, social responsibility, human rights, corruption and equal opportunities and diversity.

Terms and condiTions of remuneraTionThe company follows the state’s guidelines on the terms and conditions of remuneration for senior executives in companies with state owner-ship (July 3, 2008). In accordance with the guidelines, the company applies the general principle that pay and remuneration for members of SEK’s Executive Committee should be competitive, but not be higher than at comparable companies, and should instead be marked by moderation.

The Board has phased out variable remuneration for members of the Executive Committee. With the exception of the President, the Chief Accounting Officer, members of the Executive Committee and only a few employees at one of the company’s subsidiaries who receive commission-based pay, the company offers all employees a general incentive system. The maximum amount in the general incentive system is two months’ salary. In addition, certain employees within the company’s operating business have the possibility of individual variable remuneration, in addition to the company’s general incentive system, of up to a maximum of three months’ salary. Such remunera-tion is common in the financial sector. The company has decided to limit individual variable remuneration to a maximum of two months’ salary from 2009.

There is no outstanding share or share price-related incentive pro-gram for the Board or members of the Executive Committee.

non-comPLiance WiTH THe codeCorporate governance deviates from the requirements of the Code on the following issues:

Appointment of the Board and auditorsThe appointment of the Board of Directors – the Company is wholly owned by the Swedish State. The nomination process for members

of the Board of Directors adheres chiefly to the principles described in the 2007 state owner policy (article number N6019). The policy can also be ordered or downloaded from http://www.regeringen.se/sb/d/108/a/66145.

The appointment of auditors – the Company is wholly owned by the Swedish State. The responsibility for nominating and choosing auditors for state-owned companies always lies with the owners. The nomination process for auditors adheres to the principles described in the 2007 state owner policy (article number N6019). The policy can also be ordered or downloaded from http://www.regeringen.se/sb/d/108/a/66145.

the Board of Directors’ independence from the ownerThe 2007 government owner policy ensures that nominations to the Board of Directors are made public in accordance with the Code’s guide lines, except in regard to the reporting of independence in rela-tion to major owners. The reason why companies must have at least two members of the Board of Directors who are independent of the major shareholders and the independence of all members of the Board of Directors from the major shareholders must be reported in accordance with the Code is mainly to protect minority shareholders in companies with dispersed ownership. These reasons for reporting independence are not present in wholly state-owned companies and in jointly owned companies with few owners.

the Audit Committee As the Board established an audit committee at the start of 2008, the company no longer deviates from the Code in this respect. The Board deemed that, in respect of efficiency, it would be bene ficial to have a committee that, among other things, dealt with matters relating to the company’s financial reporting and corporate governance report (in-cluding the Board’s internal audit report) in accordance with the Code. The Board has set out the instructions for the Audit Committee and appointed the following Board members to the committee: Jan Roxen-dal (chairman) and Christina Liffner. The Board has judged that two committee members is a suitable number for the committee’s work. The President is entitled to participate in the committee’s meetings. SEK’s Chief Accounting Officer has reported on the committee’s work and SEK’s general counsel has acted as secretary to the committee.

THe annuaL generaL meeTing of 23 aPriL, 2008In order to give members of parliament a chance to attend the meet-ing, the company sent an invitation to attend the meeting to the Offices of the Swedish Parliament. On the day of the annual general meeting a special presentation was arranged, which customers and other stakeholders in the company with a general interest were in-vited to attend. At the presentation Ewa Björling, Minister for Trade, together with the Chairman of the Board and President, spoke of the importance of exports for Sweden’s economy and prosperity and how the competitiveness of Swedish companies on the global market can be increased. In addition, the chairman of the Board of Directors spoke about the principal events during the annual general meeting and, together with the President, about the company’s role and operations. Participants were also invited to submit questions to the executive management.

NON-COMPLIANCE wIth thE StAtE OwNER POLICYThe company deviates from the 2007 state owner policy in the follow ing matters:

A special presentation was arranged in conjunction with the annual general meeting in order to provide the public with the opportunity to submit questions to the Board and executive management.


SEK deviates from the state guidelines on the key financial ratio of earnings per share in that this key ratio is not reported in the annual report. This is because during 2008 SEK carried out a cash rights issues and received a company Venantius AB, as a shareholder’s contribution. This has significantly altered the equity and number of shares in SEK. In order to be able to retroactively adjust the number of shares for what is known as the bonus issue effect in calculating earnings per share, an independent valuation of SEK would be required, and this is has not been deemed necessary.

Attendance frequency at meetings of the Board of Directors and the committees in 2008

The Board of

DirectorsCredit

Committee

Finance

Committee

Remun-eration

CommitteeAudit

Committee

Ulf Berg 13/15 3/3Christina Liffner 14/15 13/13 3/3 7/7Karin Apelman 14/15 5/5Pirkko Juntti 15/15 11/13Helena Levander 14/15 10/13Bo Netz 15/15 4/5Jan Roxendal 15/15 4/5 7/7Harald Sandberg 15/15 10/13 3/3Risto Silander 11/15 5/5

The corporate governance report has not been reviewed by the com-pany auditors.

INtERNAL CONtROL

the Board of Directors’ report for the 2008 financial year about internal control and risk management with regard to financial reporting The Board of Directors’ report on internal control for 2008 has not been reviewed by the company auditors. Pursuant to a decision by the Swedish Corporate Governance Board, the Board of Directors’ description of how internal control functions worked need not be reviewed nor do the Boards of Directors of limited companies that obey the Code for 2008 need to issue statements on how well internal control functioned.

SEK is a foreign private issuer (FPI) as defined by U.S. regulations and is, in addition to the Code, therefore also affected by the Sarbanes-Oxley Act. The effects of the Sarbanes-Oxley Act were significant for SEK during the year. Between 2004 and 2006 SEK undertook a project with the aim of meeting the requirements in section 404 of the Sarbanes-Oxley Act with regard to internal control of financial reporting. SEK follows the regulations from December 31, 2007 with regard to tests and validations by the executive management, whereas the auditors’ validation of internal control will be mandatory for the first time in 2009.

The control environment – Efficient board work is the basis of good internal control and the Board of Directors of SEK has established rules of procedure for its work and the work of the committees. Part of the work of the Board of Directors is to establish, update and approve a number of fundamental policies, which govern the work of the com-pany regarding internal control. Another import ant aspect is to prepare guidelines that provide the prerequisites for an organizational structure with clear roles and responsibilities that favor the efficient management of company risks and promote good internal control. In addition, it is the responsibility of the executive management to establish guidelines so that all employees understand the need for maintaining good inter-nal control and the work of the individual in such work.

Reporting according to section 404 of the Sarbanes-Oxley Act – The executive management has assessed the internal control of finan-cial reporting in accordance with the SEC’s rules on foreign private issuers. The conclusion as at December 31, 2008 was that there were no effective internal controls concerning the valuation of certain assets and liabilities reported at fair value, which entails a risk of the financial

reporting containing inaccuracies. This risk has been particularly notable due to the turmoil in the market, with significant volatility in market prices during the latter part of 2008. In order to resolve the deficiencies that have been noted, the company has established an action plan that will henceforth render controls more effective. The action plan developed by the President has been approved by the Board. Since the start of the year 2009 key controls regarding financial reporting have been reviewed and redesigned. This has resulted in a number of improve ments in methods and routines for matters such as quality assurance of market data and market valuation of assets and lia bilities. A lack of resources and a reliance on key members of staff have been addressed through temporary support with the help of ex-ternal consultants and through recruitment. During the remainder of 2009 activities will be conducted to increase the level of automation in market valuation and financial statement processes in order to further increase the quality of internal control and reduce operational risks.

Risk assessment and control activities – SEK’s risk analysis of finan cial reporting is intended to identify those financial reporting items that are subject to the risk of material errors. The control structures have been designed around these risks to prevent or reveal deficiencies in financial reporting. In SEK, this control structure partly consists of the company being organized in order to suitably divide responsibili-ties and partly of specific control activities associated with the work of compiling accurate bookkeeping records and preparing financial reports.

Information and communications – Policies, guidelines, instructions and manuals are kept constantly updated and communicated to staff via relevant channels, especially the intranet, through internal train-ing courses and personnel meetings. Formal and informal commu-nication between staff and management may usually be carried out without hindrance due to the small number of employees and the fact that they are mainly concentrated at one location.

Monitoring – The Board of Directors and the Audit Committee are constantly informed of management reports on financial develop-ments with analyses of and commentaries on results, budgets and forecasts. Where required, the Board of Directors and the Audit Com mittee receive reports on meetings of the executive management with external auditors. The company management’s work includes assessing important accounting principles and other matters pertain-ing to financial reporting and dealing with interim reports, account-ing reports and annual reports for approval by the Audit Committee and the Board of Directors. The work of the company management also includes constant monitoring of the effectiveness of internal control. The company management has an annual procedure for ensuring that suitable action is taken in respect of deficiencies and recommendations for actions that may arise both from internal and external auditing work.

SEK’s Compliance function acts to help ensure that operations within the SEK group conform to applicable rules. The Compliance function must also monitor compliance with rules within the SEK group.

SEK has an internal auditing function, which reviews and assesses the company’s internal management and control (comprising risk control and the compliance function) in accordance with the auditing plan approved by the Board of Directors appli cable at a particular point in time. Internal auditing is under the authority of the Presi-dent and independent of other company activities. The Head of Internal Audit reports her observations to the Audit Committee on an ongoing basis. Where required, the Head of Internal Audit and the officer responsible for the compliance function must report directly to the Chairman of the Board of Directors.

Stockholm, April 30, 2009

The Board of Directors


Risk and Capital Management As of 2007, the capital required for the company has been calculated according to the so-called Basel II regulations. Through 2009, the new rules are subject to transitional rules based on the old Basel I requirements. The Basel II regulations are more risk-sensitive than the Basel I regulations, and in the company’s view, more appropriately assess its capital needs. The company, therefore, primarily focuses on these regulations, without any regard to the transitional rules other than meeting the formal transitional requirements.(See also the capital adequacy tables on pages 77 and 78.)

The company has assessed its capital position for the next three-year period. In summary, the assessment concludes that the expected available capital balances the company’s expected risks in the different scenarios that the company envisages in a way that should support high creditworthiness. SEK’s total capital requirement as of December 31, 2008 was (exclusive of the Basel I based additional requirement) Skr 5,126 million (3,441).

For complete information in accordance with Basel II, Pillar 3, see the separate Pillar 3 report at www.sek.se.

riSK rEport


Risk Management Ability Provides Business Opportunities and StabilityRisk management is a key factor in SEK’s ability to offer its customers favorable financing solutions and develop SEK’s business activities and thus contribute to the company’s long-term development.

SEK’s customers often require large credits with long maturities and sometimes with risks that would be too large to be accept-able without risk-mitigating measures. Therefore, in order to be able to carry out such transactions, a well-developed risk management program is required with the ability to discern the counterparties and transactions that are desirable. Risk manage-ment requires knowledge and processes that are able to handle previously well-known risks with well-defined techniques but also identify new risks and manage them by developing new techniques.

It is not only in customer financing that risk management skills are vital for success. Based on SEK’s business model, which has been used for many years, SEK’s borrowing activities benefit from the market’s various types of risk preferences. By being flexible and accepting new types of structures at an early stage – but also being able to handle the risks – it is possible to satisfy investor demands regarding risk exposure and at the same time obtain funding on favorable terms. A key part of this management is transaction documentation. For many years, SEK has been pushing forward the development of documenta-tion techniques.

risk management and risk controlProviding its customers with financial solutions and products means that SEK exposes itself to various risks that have to be managed. The company’s profitability is directly dependent on its ability to assess, manage and price these risks, while at the same time retaining sufficient capital strength to be able to meet unforeseen developments. For this reason, the risk management process is a constant priority for SEK and is continuously devel-oped. Support from the Board, a clear line of decision making, combined with awareness of risk among our employees, uniform definitions and principles, and control of risks incurred within an approved framework, as well as a transparency in the external accounts, make up the cornerstones of SEK’s risk and capitalmanagement.

SEK defines risk1 as the probability of a negative deviation from an expected financial result. Risk management includes all activities that affect assumption of risk, i.e., SEK’s processes and systems that identify, measure, analyze, monitor and report risks at an early stage. Adequate internal control, consisting of a set of rules, systems and routines, as well as follow-up of adherence to

them, ensures that the company is run in safe, efficient and con-trolling forms. By risk control, we understand all activities for measuring, reporting and following-up risks, independent of the risk-taking commercial units. SEK exercises risk control from two different perspectives, (i) partly through risk-related man-agement and control that primarily includes risk management and limits, and (ii) partly through management and control that is carried out at the company level and which includes organiza-tion, corporate governance and internal control.

The ultimate responsibility for SEK’s business, and for assess-ing whether it is carried out with a good internal control system, is held by the Board of Directors. The Board has established a dedicated Finance Committee whose primary task is to follow up, check, and manage SEK’s risk profile, risk level and capitalization. The Board’s Credit Committee makes up, after the Board, the highest decision-making body in individual matters relating to credits. The Board draws up central policy documents, and at every meeting, receives a summary report of the risk situation. The President is responsible for ongoing administration. In addition to the Board and the President, there are committees with various competences to make decisions depending on the types of risks.

During 2008, there have been no significant changes to SEK’s objectives, principles, risk management methods or methods of measuring risk. Furthermore, the exposure to various types of risk, or their origins, has not changed materially.

The Executive Committee’s Finance Committee (the Asset and Liability Committee, ALCO), which the President chairs, manages, among other things, questions regarding SEK’s overall risk level and proposes market risk limits and methods for risk measurement and distribution of internal capital. ALCO draws up supervisory documentation for distribution of responsibility and handling of SEK’s risk types and for the relationship between risk and capital within the framework of the Board’s overall capital policy.

The Executive Committee’s Credit Committee, which the president chairs, is responsible for matters that impact credits and credit risk management within SEK. Within the framework for its mandate, and on the basis of the order of delegation decided by the Board, the Credit Committee has the right to make credit decisions.

SEK’s risk-related management and control is directed to-wards credit, market, liquidity, and operational risks. The man-agement and control at the corporate level include the entire company, i.e., all risks, but are directed especially at risk appetite and ambient risk.

The independent risk control is carried out by the Risk Control function, which reports to the Head of Risk and to the President. SEK’s policy documents for the risk and capital areas are reviewed and updated annually by the Head of Risk, but are decided by the respective decision-making bodies.

Based on a portfolio perspective, Risk Control is responsible for control, analysis and reporting of financial risks. These risks are primarily made up of credit and counterparty risks, market risks, as well as funding and liquidity risk. The function follows

riSK MANAGEMENt

1 Risk is a balancing of the probability of consequence of any given event. The expression “risk” is generally used when there is at least one negative consequence of an event. The balancing means that the risk, in total, may be high, even if the probability is low, depending on whether or not the consequences are serious.


up the company’s scope and alignment regarding risk strategy, risk management and rating methods for credit risk classifica-tion, as well as calculating, analyzing and forecasting regulatory capital adequacy and the need for economic capital. The func-tion is also responsible for the choice of methods and models and must act as a center of excellence with the task of contributing to increasing SEK’s risk management capacity, with the intention of analyzing diversification and risk mitigation effects. An impor-tant part of Risk Control’s work is performed by keeping pace with the business functions with regard to the risks that occur in the company and, thereby, being able to manage new questions that arise within the area.

There is also a Compliance function in SEK. The overall pur-pose of this function is to secure adherence to the various rules governing SEK.

Internal audit, which is independent of the commercial activi-ties and reports to the President, but is also obliged to report to the Board, investigates and assesses the efficiency and integrity of the risk management described above. It is a fundamental principle for all control functions to be independent of the com-mercial activities.

See the chart below that shows SEK’s organization for man-agement and control.

Aim, focus and objectives of risk managementAs stated above, risk management is a central part of SEK’s busi-ness model and activities. Meeting customers’ financing needs does not rely only on efficient and innovative risk management of the transactions themselves. It is equally important to be able to take advantage of market opportunities in order to obtain

funding and manage liquidity on attractive terms. This in turn provides the basis for favorable conditions for granting credits. The focus of risk management is mainly to reduce and limit risks since SEK’s business model implies a transaction volume which is large in relation to the capital base. The objective of risk management is to create conditions under which SEK is able to meet the needs of its customers, particularly regarding financing needs. SEK also wishes to take advantage of business opportuni-ties in such a manner that net risks are at levels that are sustain-able in the long-term in relation to SEK’s capital base. The aim is to maintain high creditworthiness. Risk management contains two important components. One is to manage risks so that net risks are kept at the right level. The other is to assess internal capital adequacy and ensure a level and composition of the capital base that is in harmony with the development of business activities.

riSK MANAGEMENt

Basic principles for risk Management

n SEK will carry out its business in such a manner that SEK is perceived as a first-class counterparty by its business counterparties.

n SEK shall be selective in its selection of counterparties in order to ensure high creditworthiness.

n All SEK’s credit commitments will at all times be fully funded through maturity.

n SEK will at all times have a capital base that is well above regulatory requirements.

the Board’s remuneration

Committee

the Board’s Credit

Committee

the Board’s Finance

Committee

Board of Directors

president

Executive Committee

the Executive Committee’s

Credit Committee

the Executive Committee’s

Finance Committee (ALCo)

Head of risk

Head of internal Audit

Head of risk Control

Head of Compliance

Head of Credit Management

SEK – Corporate Governance Structure

the Board’s Audit

Committee

Reports to

Appointed by

internal Control Committee


riSK oVErViEW

Risks – an Overview

In its business activities SEK is exposed to a number of different risks: from credit risk to operational risk. In order to be able to offer customers financial solutions – for the most part long-term financing solutions that promote Swedish exports – SEK sometimes carries out trans actions that, without risk-mitigation activi-ties, would have a higher risk than the company considers acceptable.

In order to be able to carry out such transactions despite this, SEK uses a number of methods to reduce or transform risks to the desired levels. The main methods used for reducing or trans-forming risks include derivative instruments and guarantees. As a result, SEK’s net risks – although SEK’s gross exposure in certain cases may be considerable – are controlled, limited, and relatively low.

To ensure that the inherent gross exposure of a transaction can be converted in an effective and controlled manner, SEK has developed clear guidelines with regard to which gross exposures can be acceptable and which risk conversion techniques can be applied.

The following risk categories are particularly important to SEK:

Credit risks are SEK’s largest risks. Credit risks are inherent in all assets and other contracts where a counterparty is obliged to fulfill obligations. Credit risks are limited through the methodical and risk-based selection of counterparties, and they are managed, among other things, by the use of guaran-tees and credit derivatives.

Market risks arise due to mismatches of assets and liabili-ties in individual currencies or in interest-rate terms. The resulting market risks are denoted, currency exchange-rate risks and interest-rate risks, respectively. Market risks can also arise in transactions that include embedded deriva-tive contracts. Mostly, SEK manages market risks related to embedded derivative contracts by entering into matching (off-setting) transactions. An embedded derivative contract is a part of a host contract (for instance, a bond) and its effect is that some or all of the cash flow of the host contract will be determined by the development of the value of the underly-ing assets/debts/prices or other values that are defined in the embedded derivative contract.

Interest-rate risks are managed at an individual contract level, and at a total portfolio level. The interest-rate risks are restricted by limits set by the Board of Directors.

Currency exchange-rate risks are kept at a low level since SEK usually matches assets and liabilities in terms of currencies. The remaining currency exchange-rate risk, which is limited, arises due to the difference between revenues and costs (net interest margins) related to assets and liabilities in the respec-tive currencies. Currency exchange-rate risks are restricted by limits set by the Board of Directors.

Market-related counterparty risks – which are a kind of credit risk – arise when derivative instruments are used to manage risks. In order to limit this risk, SEK enters into such transac-tions solely with counterparties with good creditworthiness. A further reduction of the risk is achieved since SEK strives to obtain collateral or mark-to-market agreements with its counterparties before the derivative contracts are entered into. These agreements mean that the highest permitted risk levels, in relation to each individual counterparty, are agreed upon in advance. The formulation of the agreements safeguards that the agreed risk levels will not be exceeded, independent of which market value changes occur.

Funding and liquidity risks. SEK defines funding and liquidity risk as the risk of not being able to meet its own payment obligations when due without the cost of obtaining funding increasing significantly. SEK applies a conservative policy concerning funding and liquidity risks in order to avoid liquidity risk. The policy means that all contracted credit commitments, including unpaid credit, will be funded through maturity. SEK plans to be able to continue to grant new loans at the normal scope for approximately one year without having to take any new loans. SEK’s funding and liquidity risk is measured on the basis of different forecasts regarding the development of available funds defined as shareholders’ funds and untaxed reserves as well as borrow-ing in comparison with different credit commitments. See the chart “Development over time of SEK’s available funds”.

Operational risk. Since SEK’s transactions often have long maturities and a high level of complexity, SEK has high demands on systems, processes, and employees in order to minimize operational risk. The extensive risk management conducted by SEK is often complicated and, therefore, leads to additional operational risk that is minimized in a corre-sponding way. There is also a risk that SEK’s reputation will be damaged if the company fails to comply with current legis-lation and best practice or in another manner fails to meet its commitments, even those that are not explicit. Such risks are reduced through active efforts relating to risk culture, compli-ance with regulations, and corporate governance.


riSK oVErViEW

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Development of counterparty exposures (net) related to long-term creditsOutstanding and committed credits as at December 31, 2008

Development over time of SEK’s available fundsBorrowing plus shareholders’ funds, and lending with maturities of more than one year, respectively, as of December 31, 2008

Counterparty exposures (net) by rating and asset classDecember 31, 2008

Counterparty exposure – gross December 31, 2008

Corporates, 10%Financial institutions, 46%Securitization positions, 13%States and regional governments, 31%

Corporates, 37%Financial institutions, 43%Securitization positions, 13%States and regional governments, 7%

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Upplåning som överstiger utlåningplus eget kapitalUtlåning med löptid över ett år

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Borrowing plus shareholders’ funds exceeding lending

Lending with maturities exceeding one year


SEK’s risk manage-ment primarily involves using various techniques to trans-form gross risks into net risks that are at a level that is accept-able to SEK. This matrix describes management’s view on risk management for SEK’s most signifi-cant risk categories.

riSK oVErViEW

GROSS ExPOSuRE RISK MAnAGEMEnT nET RISK

Credit risk (for more details see the section on Risk Data) Some of SEK’s credits are granted to parties that have a lower credit quality and therefore higher risk than SEK wishes to be exposed to. This applies to a large extent to export credits where the ability to provide financing is a key competitive tool for the supplier. Even in cases where customers have good credit quality, the gross risks can be higher than is desirable if the financing requirements are substantial.

By use of different methods for corporates, municipalities and financial institutions, SEK establishes credit ratings for its individual counterparties. Most of the counter-parties against whom SEK accepts net exposures are also rated by one or more of the internationally recognized rating agencies. In order to be able to keep the credit risk at the desired level, SEK usually uses various types of guarantees and other risk- mitigating solutions. For export credits, where the ultimate borrower may have a low creditworthiness, guarantees from Export Credit Agencies (ECAs) and banks are normally used. To avoid larger than desired risks, SEK may also need risk mitigation in those cases where the counterparties have high creditworthiness, if the financing requirements are large. In such cases, credit derivatives are normally used. The coun-terparty risks related to the credit derivative contracts are usually managed through ISDA-agreements with a collateral or mark-to-market supplement.

The net risk is limited mainly to counterparties with high creditworthiness. In many cases there are several guarantors for the same exposure. The net risk for an exposure with several guarantors will be considerably lower than the risk would have been against an individ-ual counterparty. In cases where credit derivatives are used for transformation of a gross risk, the net expo-sure in the event of a gradual deterioration of the bor-rower’s credit quality will gradually decrease. This is done through the collateral adjustment that covers a change in market value above a certain set level.

Market-related counterparty risk (for more details see the section on Risk Data) Various derivative instruments such as swaps, forward contracts and options are used to limit and reduce risks. The value of these instruments can be considerable in the event of market changes, particularly for contracts with long maturities. This gives rise to a market-related counterparty risk for which realization of the value of such contracts depends on the counterparty’s ability to meet its obligations throughout the entire contract period.

In order to keep counterparty risks at a controlled and acceptable level, SEK methodi-cally chooses counterparties with good credit quality for derivative transactions. To further reduce these risks, SEK strives to obtain collateral or mark-to-market agree-ments – which mean that the highest permitted risk level, regardless of market value changes that may occur, is decided in advance – from their counterparties before entering into a derivative contract.

The combination of a careful choice of counterparties and collateral agreements leads to a limited net risk. All exposures related to market-related counterparty risk must be contained within set counterparty limits.

Market risks – Interest rates (for more details see the section on Risk Data) In order to be able to offer credits – often with complicated disbursement and repayment structures – with fixed interest at attractive terms, it is cost-efficient for SEK to take some interest-rate risk. SEK’s borrowing is also often made at fixed interest. SEK primarily sets interest rate terms based on the various needs and preferences of customers and counterparties. Consequently, assets and liabilities can to some extent have different fixed interest periods, which leads to interest-rate risk.

SEK uses various techniques for measuring and managing interest-rate risks which are designed to give a clear picture and good control of these risks. using different deriva-tives, the original interest-rate risks in assets and liabilities are normally transformed from long-term to short-term fixed interest terms in currencies with well functioning markets. EuR, uSD and Skr are preferably used.

The net risk is limited. To the extent derivatives are used to manage interest-rate risk, a market-related counterparty risk remains against counterparties in the derivative transactions.

Market risks – Currency (for more details see the section on Risk Data) SEK’s granting of credits and a large proportion of its borrowing can take place in the currency chosen by the borrower and investor respectively. It seldom happens that borrowing and lending are made in the same currency and therefore directly balance each other. Liquidity investments and some borrowing may, to the extent that market conditions allow, be made in the currencies SEK chooses in order to match assets and liabilities.

Differences in exposures to individual currencies that exist between different transactions are fully matched with the aid of various derivatives, primarily currency swaps. Currency exposure also arises in the net interest income that is continuously generated in foreign currency. This is hedged regularly in order to minimize risks.

The net risk only comprises an accrued net interest income in foreign currency, that is hedged regularly, which results in low risk. To the extent derivatives are used to handle currency risk, a market-related coun-terparty risk remains against counterparties in the derivative transactions.

Market risks – Other markets (for more details see the section on Risk Data) A large portion of SEK’s funding is carried out on terms that are adapted to investor requirements for exposure to different risks. Such adjustments provide exposure not only against credit risk but also changes in different market prices and other market-related variables, such as indices. These adjustments result in funding transactions that contain embedded derivatives. The risk in these derivatives must be managed to avoid undesirable exposures for SEK.

unwanted market risks in embedded derivatives are hedged by SEK using free-standing derivative contracts with offsetting risk profiles.

Generally, SEK does not have any net exposure to any types of risk other than interest rate, currency and credit risks. The derivatives used for hedging of undesired market risks result in a market-related counterparty risk against counterparties in the derivative transactions.

Funding and liquidity risk SEK’s customers demand credits in different currencies and with different maturities. Maturities are often long. In order to avoid funding risk, it is SEK’s policy that all credit commitments must be funded until maturity. A limited liquidity risk exists, however, in the management of SEK’s liquidity.

All credit commitments are funded through-out their entire maturity. Surplus borrowing is invested in assets with good credit quality and with a maturity profile that matches expected needs. SEK also has a strict policy for liquidity risk in its short-term liquidity management. This policy includes requirements for backup facilities.

Overall, SEK has a limited and well controlled funding and liquidity risk.

Operational risk (for more details see the section on Risk Data) SEK’s transactions often have long maturities and a high degree of complexity, which create operational risk. The extensive risk management carried out by SEK for different types of risk is often complicated and therefore leads to additional operational risk.

SEK places great importance on developing structural capital by having clear and reliable routines, a clear division of responsibility, competent and knowledgeable employees and good systems support. SEK also conducts determined work on ethical and moral issues. Persistent and consistent conduct develops the risk awareness and attitudes of employees.

Operational risk exists in all operations and can never be totally avoided. Through consistent quality assur-ance work operational risk is kept at a controlled, acceptable level.


riSK oVErViEW

GROSS ExPOSuRE RISK MAnAGEMEnT nET RISK

Credit risk (for more details see the section on Risk Data) Some of SEK’s credits are granted to parties that have a lower credit quality and therefore higher risk than SEK wishes to be exposed to. This applies to a large extent to export credits where the ability to provide financing is a key competitive tool for the supplier. Even in cases where customers have good credit quality, the gross risks can be higher than is desirable if the financing requirements are substantial.

By use of different methods for corporates, municipalities and financial institutions, SEK establishes credit ratings for its individual counterparties. Most of the counter-parties against whom SEK accepts net exposures are also rated by one or more of the internationally recognized rating agencies. In order to be able to keep the credit risk at the desired level, SEK usually uses various types of guarantees and other risk- mitigating solutions. For export credits, where the ultimate borrower may have a low creditworthiness, guarantees from Export Credit Agencies (ECAs) and banks are normally used. To avoid larger than desired risks, SEK may also need risk mitigation in those cases where the counterparties have high creditworthiness, if the financing requirements are large. In such cases, credit derivatives are normally used. The coun-terparty risks related to the credit derivative contracts are usually managed through ISDA-agreements with a collateral or mark-to-market supplement.

The net risk is limited mainly to counterparties with high creditworthiness. In many cases there are several guarantors for the same exposure. The net risk for an exposure with several guarantors will be considerably lower than the risk would have been against an individ-ual counterparty. In cases where credit derivatives are used for transformation of a gross risk, the net expo-sure in the event of a gradual deterioration of the bor-rower’s credit quality will gradually decrease. This is done through the collateral adjustment that covers a change in market value above a certain set level.

Market-related counterparty risk (for more details see the section on Risk Data) Various derivative instruments such as swaps, forward contracts and options are used to limit and reduce risks. The value of these instruments can be considerable in the event of market changes, particularly for contracts with long maturities. This gives rise to a market-related counterparty risk for which realization of the value of such contracts depends on the counterparty’s ability to meet its obligations throughout the entire contract period.

In order to keep counterparty risks at a controlled and acceptable level, SEK methodi-cally chooses counterparties with good credit quality for derivative transactions. To further reduce these risks, SEK strives to obtain collateral or mark-to-market agree-ments – which mean that the highest permitted risk level, regardless of market value changes that may occur, is decided in advance – from their counterparties before entering into a derivative contract.

The combination of a careful choice of counterparties and collateral agreements leads to a limited net risk. All exposures related to market-related counterparty risk must be contained within set counterparty limits.

Market risks – Interest rates (for more details see the section on Risk Data) In order to be able to offer credits – often with complicated disbursement and repayment structures – with fixed interest at attractive terms, it is cost-efficient for SEK to take some interest-rate risk. SEK’s borrowing is also often made at fixed interest. SEK primarily sets interest rate terms based on the various needs and preferences of customers and counterparties. Consequently, assets and liabilities can to some extent have different fixed interest periods, which leads to interest-rate risk.

SEK uses various techniques for measuring and managing interest-rate risks which are designed to give a clear picture and good control of these risks. using different deriva-tives, the original interest-rate risks in assets and liabilities are normally transformed from long-term to short-term fixed interest terms in currencies with well functioning markets. EuR, uSD and Skr are preferably used.

The net risk is limited. To the extent derivatives are used to manage interest-rate risk, a market-related counterparty risk remains against counterparties in the derivative transactions.

Market risks – Currency (for more details see the section on Risk Data) SEK’s granting of credits and a large proportion of its borrowing can take place in the currency chosen by the borrower and investor respectively. It seldom happens that borrowing and lending are made in the same currency and therefore directly balance each other. Liquidity investments and some borrowing may, to the extent that market conditions allow, be made in the currencies SEK chooses in order to match assets and liabilities.

Differences in exposures to individual currencies that exist between different transactions are fully matched with the aid of various derivatives, primarily currency swaps. Currency exposure also arises in the net interest income that is continuously generated in foreign currency. This is hedged regularly in order to minimize risks.

The net risk only comprises an accrued net interest income in foreign currency, that is hedged regularly, which results in low risk. To the extent derivatives are used to handle currency risk, a market-related coun-terparty risk remains against counterparties in the derivative transactions.

Market risks – Other markets (for more details see the section on Risk Data) A large portion of SEK’s funding is carried out on terms that are adapted to investor requirements for exposure to different risks. Such adjustments provide exposure not only against credit risk but also changes in different market prices and other market-related variables, such as indices. These adjustments result in funding transactions that contain embedded derivatives. The risk in these derivatives must be managed to avoid undesirable exposures for SEK.

unwanted market risks in embedded derivatives are hedged by SEK using free-standing derivative contracts with offsetting risk profiles.

Generally, SEK does not have any net exposure to any types of risk other than interest rate, currency and credit risks. The derivatives used for hedging of undesired market risks result in a market-related counterparty risk against counterparties in the derivative transactions.

Funding and liquidity risk SEK’s customers demand credits in different currencies and with different maturities. Maturities are often long. In order to avoid funding risk, it is SEK’s policy that all credit commitments must be funded until maturity. A limited liquidity risk exists, however, in the management of SEK’s liquidity.

All credit commitments are funded through-out their entire maturity. Surplus borrowing is invested in assets with good credit quality and with a maturity profile that matches expected needs. SEK also has a strict policy for liquidity risk in its short-term liquidity management. This policy includes requirements for backup facilities.

Overall, SEK has a limited and well controlled funding and liquidity risk.

Operational risk (for more details see the section on Risk Data) SEK’s transactions often have long maturities and a high degree of complexity, which create operational risk. The extensive risk management carried out by SEK for different types of risk is often complicated and therefore leads to additional operational risk.

SEK places great importance on developing structural capital by having clear and reliable routines, a clear division of responsibility, competent and knowledgeable employees and good systems support. SEK also conducts determined work on ethical and moral issues. Persistent and consistent conduct develops the risk awareness and attitudes of employees.

Operational risk exists in all operations and can never be totally avoided. Through consistent quality assur-ance work operational risk is kept at a controlled, acceptable level.


Basel II

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As of 2007, the reformed Basel rules (Basel II) came into force in Sweden and the rest of the Eu. The main purposes of the new rules were to achieve greater transparency and improved risk management in banks and financial institutions and, thus, boost the stability of the financial system. An important part of this approach is that institutions should maintain capital levels that are com-mensurate with the institutions’ risk profiles.

The main structure of the new system consists of the three so-called pillars:

Pillar 1 deals with minimum capital requirements for credit •and market risks and also for operational risk, based on explicit calculation rules. Under Pillar 2 the company shall identify risks and assess risk •management from a wider perspective to supplement the capi-tal requirements calculated within the scope of Pillar 1. This Internal Capital Adequacy Assessment Process (ICAAP) also includes qualitative risks, which cannot be directly measured in the form of positions that can be covered by capital. Pillar 3 addresses greater openness and transparency, the man-•ner in which institutions are to report (in the widest sense of the term) their operations to the market and the general public.

internal ratings-Based approach (irB)All of SEK’s counterparties must be rated internally.2 The decision concerning an internal rating for a counterparty is made by SEK’s Rating Committee. The committee members, who come from various functions within SEK, must provide both a wide and a deep level of expertise in risk assessment in total and experience in credit rating.

The design of the company’s IRB-system includes a number of operational as well as analytical aspects.

The operational design concerns the organizational process for, and checks on, how counterparties are assigned risk classifica-tions. Important operational aspects include, e.g., where in the company the risk classification is made and established, and how the responsibility for follow-up, validation, and control is distrib-uted throughout the organization.

The analytical design concerns how risk is measured and assessed. This includes, among other things, how the risk and loss concepts are defined and measured, and which methods and models are used for risk classification and calculation of risk. The analytical design of the risk classification system often differentiates signifi-cantly between different financial institutions. The systems share, however, the fact that every credit exposure within a specific risk class is associated with a number of quantifiable risk expressions. The two expressions that together primarily explain the credit risk of an exposure are the probability of default or ceasing of payment by a borrower (Probability of Default, PD) and the portion of the loan that will be lost given the default (Loss Given Default, LGD). Using these two parameters and the size of the outstanding exposure at default (Exposure at Default, EAD), it is possible to calculate the statistically expected loss (Expected Loss, EL) for a given counterparty exposure. By using the so-called Basel formula, the unexpected loss (UL) can also be estimated. In the Foundation IRB-model, only the PD is estimated internally. The values of the other parameters are set by the supervisory authority.3

An internal ratings-based approach is a tool for improving the precision of credit assessments and to make them consistent. By storing historical data of counterparties’ defaults and credit rating history, SEK is able to follow up its credit assessments and through them create a clearer “institutional memory” in the organization. The history assists SEK in revealing and correcting erroneous systematic assessments. By having awarded each coun-terparty an explicit (cardinal) default probability, the company can check its own risk classification against external sources. SEK’s internal ratings-based approach aims at assessing the credit risk of individual counterparties. In an expert-based system, the internal definitions of risk classes are often written in qualita-tive terms and without strict quantitative guidelines. In a more model-based system, each risk class is associated with the neces-sary quantitative conditions for various variables. The choice of an expert or a model-based method is partly determined by a company’s corporate culture, but also by the composition of the company’s customers. The expert-based method normally demands more resources and is therefore used primarily for classification of financial institutions and major corporates, while the classification of smaller corporates generally tends to be more standardized and determined by risk models.

SEK’s methodology for internal risk classification is based on both qualitative and quantitative factors. Within SEK, risk clas-sification is based, to a high degree, on the analyst assessments, but also to a certain extent on statistical models or approaches. Within the framework of SEK’s basically expert-based system, we use quantitative models as support for, or checking of, the analysts’ risk assessment.

Through the use of different methods for corporates, regional governments and financial institutions, the individual counter-parties are rated. The aim of using a common rating scale for all counterparties is, put simply, to be able to correctly price and quantify risk over time for SEK’s counterparties and, thereby, to maintain the desired risk level in the company. The tool used for

2 Except those counterparties that are included in the exceptions from the requirement for internal risk classification that have been granted by the Swedish Financial Supervisory Authority to the company.

3 Under normal circumstances the maturity will be 2.5 years and the LGD will be 45 percent.


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this is the rating, which is an ordinal ranking system. Therefore the risk classification within SEK is, to a great extent, a question of a relative assessment. The risk classification does not aim at estimating a precise probability of default, but rather to place the counterparty in a category of comparable counterparties, based on a risk perspective.

SEK’s internal rating system (the IRB system) comprises all of the various methods, work and decision processes, control mech-anisms, supervisory documents, IT-systems, as well as processes and procedures that support risk classification and quantification of credit risk.

SEK’s rating CommitteeThe Rating Committee’s task is based on analysis and credit assessment that is carried out according to established methods and rating proposals from the credit analysis function (Credit Management), (i) to establish ratings for new counterparties, (ii) when considered relevant, to reassess ratings for existing counterparties, and (iii) at least on an annual basis, to review credit ratings for existing counterparties. Committee members are appointed by the Executive Committee in such a way that the majority of the members represent non-business generating functions. The members must possess the requisite experience and expertise within areas that are relevant for the task at hand. A rating that has been established by the Rating Committee may not be overridden or amended by another body within SEK. The minutes of the Rating Committee are made up of memorandums drawn up by the analyst responsible and signed by members of the committee.

rating methodologyFinancial institutionsThe two driving factors in SEK’s internal credit risk assessment for financial institutions are business risk and financial risk. The analyst is responsible for making a recommendation as the basis for the decision in the Rating Committee. In brief, the business risk is assessed based on an analysis of the counterparty’s busi-ness, market position and ownership, as well as the significance of legislation and regulations for its business activities.

The financial risk includes the financial strength of the counter-party and its ability to withstand financial burdens, as expressed in annual reports and other financial information. It is, however, not possible to set a rating solely on the basis of financial data, without assessing business and financial risk against each other in the individual cases, i.e., each individual assessment is made up of a combination of quantitative and qualitative factors.

SEK’s analysis intends to rate financial institutions’ financial risk based on a traditional financial analysis in combination with our in-house-developed quantitative model. The aim of this dual approach is for both approaches to complement each other with the purpose of verifying the result between them, or in the case of any divergence, indicating that the analysis should be complemented with further in-depth assessment. The rating, which makes up the quantitative model’s output, acts, within the framework of the total rating methodology, as an indicative

rating of the counterparty’s financial risk. Therefore, alone it does not give an indication of the balanced final internal risk classi-fication, which explicitly also takes into account, e.g., potential owner support or government ownership.

CorporatesIn SEK’s internal credit risk assessment for corporates the two driving factors are also business risk and financial risk. In the same way as for financial institutions, the analyst is responsible for making a recommendation as the basis for the decision in the Rating Committee.

The currently applicable model for assessing financial ratios is, to a certain extent, based on median values of U.S. industrial companies and is, therefore, somewhat limited in its precision when solely calculating a corporate’s rating level from financial information. SEK has, however, during 2008 built up its own database of financial ratios, which is aimed to constitute the basis for a continued development of methodology. For this reason, in 2009 the company plans to create a quantitative risk classifica-tion model for corporates, which is comparable with that which already exists for financial institutions.

Specialized lendingWithin the exposure class corporate exposures, exposures that represent specialized lending will be identified. For such expo-sures, SEK calculates risk-weights based on so-called slotting. According to the regulations, there are five categories for corporate exposures that are specialized lending. Categories 1–4 represent non-defaulted exposures, and category 5 represents defaulted exposures. The break-down by categories 1–4 is based on the increased risk levels for the exposures (where category 1 repre-sents the lowest risk). Of SEK’s exposure, Skr 508 million (603) is attributable to category 1, that is, the category that represents the highest credit rating, and also Skr 183 million (0) to category 3. The size of the exposure totals, with consideration given to credit risk mitigation and conversion factors, Skr 691 million (603).

positions in securitization positionsSEK applies the so-called ratings-based method for securitiza-tion positions. This means that the risk weight is determined by external credit assessments, based on the position’s credit quality step defined in accordance with the regulations governing external credit assessments. SEK has not acted in the role of originator or as participating institute. SEK has only functioned as an investor.

Calculation of the risk-weighted assets according to the standardized approach

According to the standardized approach for credit risk, financial institutions must refer their exposures to the prescribed exposure classes and apply to the exposures the risk weights that are appro-priate to the respective exposure classes. In certain cases, the risk weights may be in accordance with an external rating. External credit assessments may be used to decide which credit quality levels an exposure corresponds to. In order to determine this, financial institutions must use correspondence tables between the


credit rating agencies’ various credit ratings and the credit quality scales that the Swedish Financial Supervisory Authority deter-mines. SEK follows these instructions. Most of the exposures to which the company has the permission to apply the standardized approach are related to the highest credit quality level, giving zero percent in risk weight.

Limits, risk reporting and risk measurement systemThe highest level for decision-making for credit-risk limits is the Board. The Board has delegated its mandate to make credit deci-sions, with the exception of decisions that are matters of principle to the Board’s Credit Committee.

Calculation of the amount that indicates at which level a limit may be established is made based on the formula for calculation of the capital requirement under Pillar 1 of the Basel II regula-tions. As discussed previously, all parameters except PD are set by the supervisory authority. These conditions are, however, in line with the actual requirement for SEK’s entire existing portfolio, which makes it reasonable to use the Basel II formula as a starting point. This calculation also gives the minimum capital require-ment that legislators have determined for calculation of the capital adequacy requirement, which is why it is also conceptually considered as a reasonable starting point.

The Board of Directors and the Executive Committee aim to have a good understanding of the function of the internal rating-based approach, as well as a good understanding of the content of the reports from the risk classification system that are sent to them. The President and the Head of Risk inform the Board about all significant changes to, or exceptions from, instructions decided that govern the design and use of the company’s risk clas-sification system.

The company’s Executive Committee acquires regular informa-tion from the independent risk control function (Risk Control). This information concerns the conclusions from the validation process, areas that are in need of improvement, and how the work with previously determined improvement measures is proceeding.

A central part of the regular reporting of credit risks to the Board of Directors and Executive Committee is based on the company’s risk and product classification and risk estimates. Risk Control and the credit analysis function, Credit Manage-ment, are responsible for different parts of this reporting. The reporting includes distribution of counterparties and exposures across risk classes, risk estimates for each product and risk class, comparisons between estimates and realized outcomes for each product and risk class, migration between risk classes, as well as information about, and results of, the stress tests that are applied. In addition, the reporting also includes the company’s use of credit risk protection, as well as the development of positions in securitization positions.

SEK-specific exemptions SEK’s permission to base its capital requirement for credit risk on the IRB approach covers the majority of the company’s expo-sures. The company’s application for the IRB approach for credit risk included a request for approval of an exemption from the basic requirements for an IRB approach in two regards. The two

exemptions, which were approved, were the following: Exemption from the IRB approach for export credits guaran-•teed by the Swedish Export Credits Guarantee Board (EKN) or corresponding foreign entities within the OECD. Exemption from the IRB approach for the exposure class •governments.

Consequently, SEK has previously been granted exemption for the above exposures. In January 2009, the Swedish Financial Supervisory Authority granted the company the right, through December 31, 2012, to apply the standardized approach for these exposures.

On November 20, the Swedish parliament, on the basis of the governmental bill 2008/09:73, decided to transfer to SEK 100 percent of the shares in Venantius AB. The transfer of the shares in Venantius AB, which occurred without compensation (uncondi tional shareholder contribution), was carried out on December 18, 2008. Venantius’ assets primarily consisted of loan receivables and the investment of liquid funds. In December 2008, SEK applied for a concession, with the support of FFFS 2007:1, chapter 38, section 20, for time-limited authorization to apply the standardization method for credit risks attributable to loan receivables in Venantius AB. In January, the Swedish Finan-cial Supervisory Authority also granted the company the right, as of December 31, 2012, to apply the standardized method for these exposures.

Exposure classifications within SEKAll of SEK’s exposures must be referred to an exposure class. In order to secure maximum congruity between the different calcu-lations, for which exposure classes make up a calculation factor, the definitions that are used for the exposure classification must, as far as possible, be the same. The definitions to be used are laid out in the current capital adequacy regulations.

The company’s exposures are limited to central government exposures, exposures to regional governments, financial institu-tions exposures, and corporate exposures, as well as to securitiza-tion positions (positions in securitization positions). This means that the company in principle does not need to take into account potential boundary problems between retail and corporate exposures.4

Responsibility for all exposure classifications within SEK is held by the credit analyzis function, Credit Management.

the validation process A basic requirement for using an IRB system is that the company has a continual and well-functioning process for validation of all parts of the system. It is, therefore, SEK’s responsibility to prove that the internal risk estimates have sufficient ability to predict probability of default. The company must have a stable system forvalidating the risk classification system and estimates of the risk parameters.

The validation process must comprise a consistent and appro-priate analysis of whether the risk classification system measures risk in a satisfactory way. Validation takes place regularly, at least once a year. The company compares realized values with risk parameter estimates in the dimensions where own estimates are

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4 Exemption for Venantius AB where minor boundary problems may arise.


used. The analysis is partly made on outcomes from the most recent period and partly on outcomes during the entire period for which the company has available data. As far as the PD dimension is concerned, the company analyzes the strength of the risk clas-sification system’s ability to discriminate, i.e., how well the risk classification discerns between counterparties and exposures that default or migrate during the period and those that do not. The company must always decide on suitable actions when the valida-tion process shows that the results deviate more than expected from the institute’s estimate and risk classification. The analysis must take into account economic cycles and similar systematic variation in realized defaults and in rating migrations. If the result shows that the risk parameters are higher or lower than the estimated values over an extended period, the company must adjust its estimates.

The reliability of SEK’s IRB system is indicated by how well the forward-looking estimates relate to the outcomes that are observed later. An ongoing and well-functioning validation process creates conditions to discover differences, which in turn increase the opportunities for remedying any faults in the IRB system.

SEK analyses the correlation between SEK’s internal risk classification and external credit ratings. The analysis as of December 31, 2008 shows that SEK’s risk classification was more conservative than the corresponding classification from the two rating agencies Standard & Poor’s and Moody’s.

The validation process ensures that, among other things, (i) the assumptions and methods for the classification models are appropriate, (ii) the risk classification process is used in a uniform way within the company’s various business areas, (iii) the system identifies exposures and counterparties with dif-fering credit risks, and (iv) that the system ensures reliable and precise estimates of the risk parameters that the company uses.

When assessing whether the classification system is consistent, the principles for the choice of classification models and explana-tory factors must be stated. It must also be possible to prove that the principles are still relevant. The Credit Management function is responsible for this.

When different models are developed, documentation of the development plays a central part, especially with the assessment of existing and future models based on quantitative methods. The documentation must also take a position on known permanent and temporary deficiencies in the classification models.

The company has internal instructions for cases in which the risk parameter estimates deviate from the actual values so much that there is reason to doubt the correctness of the estimates. The instructions take into account variations in the economic situation and similar systematic variations in counterparties’ rating migration. If the actual values continually deviate more than expected from the estimates, the company’s independent risk control function (Risk Control), in cooperation with the company’s Rating Committee, revises the estimate upwards or downwards, in order that they more correctly reflect the com-pany’s experience. All of this is included in the validation process for which Risk Control is responsible. Risk Control continually works at develop ing and improving its validation methods in ac-cordance with changes in best practice in the industry.

the irB Use testAn important criterion for the qualitative validation of the IRB system is the actual application of the rating result in SEK’s risk and business processes. This type of qualitative validation thus aims at assessing how well different internal administrative processes and routines work, and can be described as a process-oriented validation. In order to receive permission to employ an IRB system for calculation of capital requirements, the company must, according to the regulations, fulfill a so-called “Use Test”.

The Use Test entails that a company must be able to prove that the IRB system is well integrated in the organization and that it forms a central component in its business and risk management environment. In addition, it is a requirement that the IRB system and its different risk estimates must have great influence on decision-making and the company’s credit process.

The Use Test is given great significance when the Financial Supervisory Authority assesses the reliability of SEK’s IRB system on an ongoing basis. A system that is well integrated within the business and on which the company’s routines for measuring and managing credit risk are based, is likely to be highly credible.

The company’s internal product and risk classification and esti-mate of risk parameters form an integrated part of the company’s corporate governance, credit process, risk management and internal allocation of capital. Estimates are well rooted in, and accepted by, the business organization. Within SEK, a product and risk classification of new counterparties and exposures are performed before credit decisions are made. The individuals and decision forums that are responsible for credit decisions are aware of a counterparty’s or exposure’s rating.

In principle, SEK applies the same value to risk parameters in its business processes as in the calculation of capital require-ments. The company also has documented cases where it uses different values in its business processes and in the calculation of the capital requirement. The adjusted values are primarily applied in the company’s pricing model, as well as when the company, in its internal capital adequacy assessment process, calculates the need for economic capital.

Credit risk protectionSEK’s credit risks are limited by methodical and risk-based selec-tion of counterparties and are managed, among other things, by the use of guarantees and credit derivatives.

A purchased credit derivative contract provides the holder with the right, under certain presumptions – amongst others, default of the underlying, risk-covered counterparty – to sell an asset, for its nominal value, to the issuer of the credit derivative contract. Accordingly, credit derivative contracts make it possible for the buyer to create a combined risk (or double default risk) of the under lying counterparty and the issuer of the credit derivative contract. SEK converts large volumes of exposures, by the use of credit derivative contracts, to individual counterparties to com-bined (double default) exposures, where one counterparty (the issuer of the credit derivative contract) is a financial institution.

Through the use of contracts that obligate the individual issuer of credit derivative contracts to provide collateral in case the market value of the issued credit derivative contracts exceeds a

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certain level further reduces the total risk. The market value of a credit derivative contract is derived from the change in creditwor-thiness of the underlying, risk-covered counterparty. As a result, SEK will – if the creditworthiness of the underlying counterparty whose credit risk is covered by the credit derivative contracts deteriorates – successively receive collateral for the risks covered. This risk mitigation technique is, therefore, particularly efficient from a real risk management perspective.

Collateral SEK uses various types of collateral in order to reduce and re- allocate credit risks. Approved collateral under the collateral agreements based on the ISDA agreement is generally government bonds and cash. To a certain limited extent, other collateral is also used such as real estate, ships and aircraft mortgages, as well as security in leased equipment. A special type of security that is also used is a so-called environment certificate. The value of individual collateral is usually assessed as the equivalent to a long-term mar-ket value. Any collateral that SEK demands must be managed and documented in a manner that means that the collateral fulfills its function and can be used in the intended manner when needed.

When a credit decision is made, the creditor’s assessed credit-worthiness and ability to repay, as well as, when applicable, the value of any collateral is taken into account. The credit decision may be made on condition that certain collateral is provided.

internal Capital Adequacy Assessment One aspect of great importance under Pillar 2 is that institutions are responsible for designing their own processes for internal capital adequacy assessment (ICAAP). This requires that institutions must, in an overall and comprehensive manner, measure their risk and assess their risk management and, based on this, assess their capital needs. They must also communicate their analysis and conclusions to the Swedish Financial Supervisory Authority. The ICAAP must be documented and disclosed throughout the whole company. As part of its strategy planning process, SEK’s Board of Directors and executive management establish the company’s risk appetite and clear objectives with regard to the level and composi-tion of the capital requirement.

SEK’s ICAAP is assessed by management as being well in line with the underlying principles, intentions and evaluations of the rules.

A company can assess its risks in accordance with pillar 2 in its internal process in two alternative ways, (i) either with a com-prehensive model for the calculation of the need for economic capital, or (ii) as in SEK’s case, with the consolidation method (the so-called building block approach). In the latter method, SEK generally bases this on the regulatory capital requirements cal-culated in accordance with those models or methods that are ap-proved in pillar 1 (in other words, for credit risks, market risks and operational risk). Thereafter, the assessment of capital require-ments is complemented for other risks in accordance with pillar 2. Pillar 2 also includes qualitative risks that cannot be measured in the form of positions that can be covered with shareholder funds. Instead, the handling of these requires sufficient control measures.

However, for internal evaluation and assessment of the capital requirements regarding credit risks under pillar 2, SEK works with so-called economic capital, which in relation to the regulatory capital requirement is a more exact and risk-sensitive measure-ment.

The need for economic capital is based on a calculation of Value at Risk (VaR) and forms a central part of the company’s internal assessment. SEK’s assessment of whether the company, in addition to the capital requirement under Pillar 1, needs to allocate capital

for credit risk under Pillar 2, is mainly based on a quantitative approach. This approach is also complemented with a compara-tive analysis of the capital requirement under the so-called Basel formula and the necessary economic capital (calculated with a confidence level of 99.9 percent). This quantitative approach is complemented with qualitative assessments. The primary aim of the analysis is to assess whether the total capital requirements un-der Pillar 2 should be set higher than the mechanically calculated capital requirement under Pillar 1.

In addition, it is considered important to be able to break the difference down according to the various individual factors. Even if the net difference can be small, the analysis shows that the dif-ference between the approach under Pillar 1 and Pillar 2, respec-tively, concerning individual factors may have a large impact on quantification of the risks. Factors which increase the capital re-quirement in the total internal assessment include the company’s view on the loss proportion in the case of default (LGD), which is more conservative than what the Basel formula provides. Another such factor which increases the need for economic capital is that the company, under Pillar 2, takes into account concentration risks that are caused by individual large exposures. The regula-tions also permit certain types of exposure to be exempted from capital requirements under Pillar 1. It is SEK’s opinion that capital, in relation to actual risk, is also needed for such exposures. Of the components that also have an impact on the need of economic capital, here it can be mentioned that SEK uses other correla-tions than those in the Basel formula. The analyses also take into account the fact that the regulations under Pillar 1 contain a limit that is expressed in terms of an absolute level regarding the lowest permitted probability of default (0.03 percent), which applies to most exposure classes, leading to overestimates of the credit risk for counterparties with very high creditworthiness. The regulations do not take into account under Pillar 1 the risk reduction resulting from a very short maturity. The company’s model for calculation of economic capital does, however, take this effect into consideration. A positive factor, from which the company is not permitted to benefit from under Pillar 1, is the full effect of risk reduction through the use of guarantees and credit derivatives (i.e., combined risks, or so-called double default), as well as collateral agreements with issuers of credit derivatives. In total, with regard to credit risk, concentration risk makes up the individually largest risk contribution in the company’s compara-tive analysis.

BASEL ii


riSK DAtA

Risk DataThe figures shown in the Risk data section concern the Group. The Group and Parent Company figures are essentially the same.

Depending on the applied valuation principles in the financial reporting, the risk measures described below will have different impacts on SEK’s net interest revenues and shareholders’ funds.

Credit risk Credit risk represents the risk of the loss that would occur if a borrower or other party in another contract involving counterparty risk and any guaran-tors are unable to perform in accordance with contractual terms and condi-tions. Exposure to credit risk can be related to credits, securities and other assets, as well as guarantees, other risk-mitigating instruments, and positive market values in other contracts. Credit risk exposure to a counterparty is always preceded by a decision on a counterparty limit, which the exposure must not exceed. The volume of derivative contracts is included in the table on page 78.

Market risksMarket risks occur when the terms of a contract mean that the size of the payments linked to the contract or the value of the contract vary due to a market variable, such as interest-rates or exchange-rates. SEK’s policy allows net exposure to interest-rate, currency and credit-related market risks. Other market risks must be hedged. All market risks are measured and reported regularly to ALCO and the Board. In total, the concentration risk aspect forms only an insignificant contribution to market risk. A positive parallel shift in all yield curves upwards by one-percentage-point for all SEK’s interest-sensitive positions would have resulted in a market value change of Skr 67 million (–112). An equivalent calculation but with a negative shift of all yield curves would have resulted in a market value change of Skr –172 million (91). The strong convexity arises via a combination of prevailing market conditions with low market interest rates and the fact that SEK’s perpetual subordinated debt is hedged with contracts whose time to maturity is limited. A change in the interest-rate levels by one-percentage-point has no material impact on SEK’s shareholders’ funds.

The following describes how SEK internally measures and reports market risk. Risk neutrality for interest-bearing assets which are funded with senior debt or with non-perpetual subordinated debt can only be achieved if both currency, interest rate terms and remaining maturity for the liabilities matches the corresponding assets. Conditions are quite different when it comes to shareholders’ funds as interest rate terms cannot be matched. Risk neutral-ity should, according to SEK’s approach, nourish the ambition to minimize earnings volatility as a starting point and relate to the shareholder’s return requirements on equity. According to prevalent capital market theory, the return requirement on equity consists of two separate parts, the risk free rate and a risk premium. If the return requirement on equity could be expected to follow this theory this would mean that the operating profit should not remain unchanged if interest rates were to change; on the contrary a change in interest rates that represent the proportion of the risk free rate should be considered risk neutral. In addition to this theory, SEK has taken an assess-ment of the average maturity in the credit portfolio as a starting point and has also taken reinvestment risk into consideration. On the basis of these starting points SEK has defined zero risk in assets funded with shareholder’s funds as a maturity structure where 1/7 of the total portfolio matures every year from year 1 to year 7.

Market risk measureSkr mn

Measure LimitRisk (also see under

resp. heading)

Interest rate risk Parallel shift

Total 70 (70) 35 (33)of which in foreign currency 35 (27)of which in Skr 0 (6)

Basis risk 190 (190) 57 (70)Credit spread risk (trading book) n.a. (80) n.a. (56)Exchange rate risk 15 (15) 13 (1)

Interest rate risk: The interest rate risk is calculated from a parallel shift in the yield curve of one percentage point. Perpetual subordinated debt with related hedging transactions, as well as assets in which shareholders’ funds and untaxed reserves are invested, are excluded from the calculation of these interest rate risks and limits.

Basis risk: The differences in the interest rate basis for different currencies lead to a risk in the case of surpluses or deficits in borrowings in relation to loans in individual currencies over a specific period. The basis risk is cal-culated (with the exception of surpluses in Skr, uSD or EuR) as the change in present value due to changes in interest rate bases by a certain number of basis points. Surpluses in Skr, uSD and EuR are excluded from the calcula-tion of basis risk since the majority of SEK’s lending is done in these curren-cies. Surpluses in these currencies may fairly immediately be transferred into a new type of lending, if desired.

Rotation risk: Rotation risk is defined as the impact on SEK’s result and/or financial position that would occur as a result of an assumed rotation of the yield curve (a linear shift with, at most, 0.5 percentage points in each direction). For each currency, the yield curve may either be steeper or flatter (depending on the direction of rotation), and the absolute value of each currency’s contribution is totaled in order to see the greatest of these. (Internally, SEK reports the highest value of either the rotation risk or the risk of a parallel shift in the yield curve by one percentage point.)

Credit spread risk: The risk is constituted by the market value change that arises when the interest margin the market requires in order to compensate credit risk (credit spread) has changed. The risk is measured as a change in the market value in the event of a certain change in the credit spread. The credit spread change that is used for risk calculation is based on the risk counterparty’s rating and industry as well as the duration of the exposure. The credit spread risk is calculated only on assets in the trading book. In accordance with the decisions of the Eu commission and the Swedish Financial Supervisory Board’s assessment, SEK has chosen to reclassify assets in the trading book from the category ”Financial assets at fair value through profit and loss” to the category ”Loans and receivables”. The reclassification was made as of July 1, 2008. Therefore, SEK had no credit spread risk as of December 31, 2008.

Interest rate risk in perpetual subordinated debt: The volume of perpetual sub-ordinated debt at December 31, 2008 amounted to uSD 350 million (350), corresponding to Skr 2,713 million (2,264). The interest rate risk related to Skr 2,713 million (2,258) of this volume was hedged with interest rate swaps with maturities between 2019 and 2034. The interest rate risk in assets which are funded with perpetual subordinated debt is measured as the change in present value that arises from a parallel shift in the yield curve of percentage point or a rotation of 0.5 percentage points. The maturity, up until now, for perpetual subordinated debt, has been approximated to 30 years and hedg-ing has been made in order to match this maturity. Thus SEK measures an approximated interest rate risk in assets which are funded with perpetual subordinated debt.


Interest-rate risk in assets corresponding to shareholders’ funds and untaxed reserves: In order to ensure a long-term stable return on equity, SEK’s policy is to invest shareholders’ funds in SEK’s office building (Skr 0.1 billion) and securities with medium-term maturities. At year-end 2008, the volume of securities for this purpose had a book value of approximately Skr 5.0 billion (4.7) with an average outstanding maturity of 3.6 years (3.6). The risk to a one-percentage-point parallel shift was Skr 154.7 million (136.2) at the end of 2008.

Currency risk: The risk is calculated as a change in the value of foreign currency positions resulting from a ten-percentage-point change in the exchange rate for the Swedish krona.

Other price risk: The company does not consider itself exposed to market risks other than those described above.

operational riskOperational risk is defined as the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events. The definition also includes legal risk.

Complementary informationCapital requirementsSince 2007, Basel II regulations are applicable in Sweden. The regulations are based on the so-called Basel framework, and apply for the entire Eu. According to Basel II, the capital requirement will, to a higher degree than previously, be related to the risks. The transition to regulations, which to a greater extent than before, are based on actual risk, can result in major changes in the minimum capital requirement. Legislators have chosen not to immediately allow the full impact of the new regulations in those cases where this would result in a lower capital requirement than a gradually reduced capital requirement calculated in accordance with the old regu-lations. Therefore, during the transitional period 2007-2009, the capital requirement will be calculated parallel in accordance with the older, less risk-sensitive, rules. However, to the extent that the capital requirement, as calculated under the old rules – reduced to 90 percent for 2008 and 80 percent for 2009, respectively – exceeds the capital requirement based on the new rules, the capital requirement based on the old rules shall constitute the minimum capital requirement during the transitional period. As of December 31, 2008 SEK’s total capital requirement (excluding Basel I based transitional requirements) amounted to Skr 5,126 million (3,441). (See detailed specifications below.) The aggregate amount of SEK’s large exposures on December 31, 2008, was 81 percent (325) of SEK’s regulatory total capital base, and consisted of risk-weighted exposures to 7 counter-parties (22), or counterparty groups, of which the majority relates to com-bined exposures, for which more than one counterparty is responsible for the same payments.

Capital requirement credit riskFor risk classification and quantification of credit risk SEK uses an internal ratings-based (IRB) approach. The Swedish Financial Supervisory Authority has approved SEK’s IRB approach. There are two different IRB approaches. SEK applies the Foundation Approach. under the Foundation Approach, the company determines the probability of default within one year (PD), of its counterparties, while remaining parameters are established by the Swedish Financial Supervisory Authority. under the Advanced Approach, a company also determines losses given default (LGD) and exposure at default (EAD).

Capital requirements standardized approach

Skr mnCentral governments 48 (17)Central export credit agencies 26 (10)Corporates 34 (4)Retail 8 (0)Total 116 (31)

Corporate exposures are mainly managed according to the IRB approach. The Export Credit Loan, which is a product aimed at small and mid-size companies, is, however, an exception. For these exposures, SEK applies the standardized approach. The loan is a result of collaboration between Almi, Svensk Exportkredit (SEK), the Swedish Export Credits Guarantee Board (EKn), the Swedish Trade Council and Swedfund. Almi, which works region-ally, close to small companies, manages the loans. SEK is responsible for providing capital. Almi, SEK and EKn take on different shares of the credit risk. For exposure in Venantius AB, which was formed by the government in 1995 and transferred to SEK in December 2008 and consequently became a new subsidiary of SEK, SEK has authorization to use the standardized method. These exposures are primarily found under the exposure classes Corporates and Retail exposures.

Capital requirements IRB approach

Skr mnFinancial institutions 2,596 (1,819)Assets-backed securities 924 (309)Corporates 1,309 (850)Other non-credit obligations 11 (12)Total 4,840 (2,990)

Capital requirement operational riskThe regulations provide opportunities for companies to use different methods for calculation of capital requirement for operational risk. For calculations of this capital requirement the Basic Indicator Approach is available, which can be used without any permit from the Swedish Financial Supervisory Authority, along with the more advanced methods – the Standardized Approach and Advanced Measurements Approaches – whichrequire specific permits from the Swedish Financial Supervisory Authority. SEK calculates the capital requirement for operational risks according to the Basic Indicator Approach. The capital requirement for operational risk under the Basic Indicator Approach equals 15 percent of a revenue indica-tor. The revenue indicator represents an average of the operational rev-enues during the last three years. The operational revenues are calculated as the sum of the following items: interest and leasing revenues, interest and leasing expenses, dividends received, commissions earned, commissions paid, net results of financial transactions, and other operational revenues.

Capital requirements operational risk

Skr mnBasic indicator approach 170 (121)

Credit risk exposure The table on the next page shows the break-down of credit exposures to various exposure classes. In the table it can be seen, among other things, that exposure to central governments, regional governments and central export credit agencies is equivalent to around 31 percent of the company’s total exposure. (See also the graph, “Counterparty exposures (net) by rat-ing and asset class December 31, 2008” on page 55.)

Amounts expressing gross exposures are shown before guarantees and credit derivatives while net exposures are reported after taking into con-sideration guarantees and credit derivatives. At the end of 2007 gross and net exposures were defined differently than at the end of 2008. Figures as per 2007 have not been recalculated in accordance with the new principles since this would be impracticable. Therefore there will be no comparison figures presented in tables displaying exposures.

riSK DAtA


riSK DAtA

The table below describes the company’s exposure per exposure class, gross and net, based on geographic break-down.

Gross exposure broken down by geography and exposure classes, per December 31, 2008

Skr bn Africa Asianorth

America Oceania SwedenSouth

America

Other European countries

Other nordic

countries Total

Central governments 0.0 8.2 0.0 0.0 1.7 0.5 0.6 3.6 14.6Government export credit agencies 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0Regional governments 0.0 0.0 0.0 0.0 7.1 0.0 0.0 3.2 10.3Multilateral development banks 0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.0 0.1Financial institutions 0.0 2.7 17.2 6.8 41.6 0.1 67.4 10.7 146.5Corporates 2.6 20.1 19.1 1.0 37.2 3.5 23.2 18.8 125.5Securitization positions 0.0 0.1 5.3 7.9 0.4 0.0 31.2 0.5 45.4Retail 0.0 0.0 0.0 0.0 0.1 0.0 0.0 0.0 0.1Total 2.6 31.1 41.6 15.7 88.1 4.1 122.5 36.8 342.5

net exposure broken down by geography and exposure classes, per December 31, 2008

Skr bn Africa Asianorth

America Oceania SwedenSouth

America

Other European countries

Other nordic

countries Total

Central governments 0.0 0.0 0.0 0.0 1.8 0.0 6.5 3.6 11.9Government export credit agencies 0.0 0.0 10.0 0.0 30.8 0.0 29.9 1.5 72.2Regional governments 0.0 0.0 0.0 0.0 17.5 0.0 0.0 3.7 21.2Multilateral development banks 0.0 0.0 0.0 0.0 0.0 0.0 0.5 0.0 0.5Financial institutions 0.0 0.4 24.0 6.8 38.8 0.0 75.1 12.4 157.5Corporates 0.0 0.4 1.7 0.0 20.0 0.0 4.1 9.3 35.5Securitization positions 0.0 0.1 5.3 7.9 0.3 0.0 29.4 0.6 43.6Retail 0.0 0.0 0.0 0.0 0.1 0.0 0.0 0.0 0.1Total 0.0 0.9 41.0 14.7 109.3 0.0 145.5 31.1 342.5

The table below shows the company’s exposures broken down by maturity and exposure classes.

Gross exposure broken down by maturity and exposure classes, per December 31, 2008

Skr bn ≤ 1 yrs > 1 yrs and ≤ 3 yrs > 3 yrs and ≤ 5 yrs > 5 yrs Total

Central governments 3.4 1.0 0.9 9.3 14.6Government export credit agencies 0.0 0.0 0.0 0.0 0.0Regional governments 3.9 2.5 2.0 1.9 10.3Multilateral development banks 0.1 0.0 0.0 0.0 0.1Financial institutions 61.4 56.3 10.5 18.3 146.5Corporates 17.4 34.6 31.1 42.4 125.5Securitization positions 2.1 16.1 14.6 12.6 45.4Retail 0.0 0.0 0.0 0.1 0.1Total 88.3 110.5 59.1 84.6 342.5

net exposure broken down by maturity and exposure classes, per December 31, 2008

Skr bn ≤ 1 yrs > 1 yrs and ≤ 3 yrs > 3 yrs and ≤ 5 yrs > 5 yrs Total

Central governments 3.6 2.0 0.7 5.6 11.9Government export credit agencies 7.7 16.5 12.5 35.5 72.2Regional governments 4.9 3.9 3.0 9.4 21.2Multilateral development banks 0.5 0.0 0.0 0.0 0.5Financial institutions 63.3 63.1 17.2 13.9 157.5Corporates 6.2 8.9 11.1 9.3 35.5Securitization positions 2.1 16.1 14.6 10.8 43.6Retail 0.0 0.0 0.0 0.1 0.1Total 88.3 110.5 59.1 84.6 342.5

Credit risk exposure, as per December 31, 2008

Skr bnGross exposure

December 31, 2008 Sharenet exposure

December 31, 2008 ShareAverage gross

exposure 2008 A)Average net

exposure 2008 A)

Central governments 14.6 4% 11.9 3% 14.0 8.8Government export credit agencies 0.0 0% 72.2 22% 0.0 56.6Regional governments 10.3 3% 21.2 6% 8.9 19.9Sum 24.9 7% 105.3 31% 22.9 85.3Multilateral development banks 0.1 0% 0.5 0% 0.4 0.8Financial institutions 146.5 43% 157.5 46% 136.1 145.3Corporates 125.5 37% 35.5 10% 98.7 30.5Securitization positions 45.4 13% 43.6 13% 46.3 42.5Retail 0.1 0% 0.1 0% 0.0 0.0Total 342.5 100% 342.5 100% 304.4 304.4A) The average exposure figures are calculated on a monthly basis.


Market-related counterparty riskFor counterparty exposures that exceed the threshold amounts under col-lateral agreements, collateral or cash settlement is demanded. Thereby, the counterparty exposure shall amount to the lower of market value and the threshold value. The positive gross value of all derivative contracts, includ-ing credit default swaps (CDS) as of December 31, 2008 was Skr 38.9 billon (20.3). After netting on the basis of the current ISDA agreements (by coun-terparty), the exposure was Skr 18.3 billion (5.0), i.e., Skr 20.6 billion (15.3) less than the gross exposure. The counterparties had, as of December 31, 2008, provided Skr 2.4 billion (1.6) in collateral or cash settlements. During 2008, collateral or cash settlements received amounted on average to Skr 3.0 billion (0.7). At the end of 2008 SEK had paid unsettled accounts under ISDA agreements with different counterparties amounting to Skr 11.3 billion (0.0), meaning that the counterparties total risk against SEK was diminished with the amount in question.

Credit risk protection

GuaranteesSEK’s most important guarantors are various government export credit agen-cies. As of December 31, 2008, these guaranteed a total of Skr 72.2 billion (48.7), which was equivalent to 21.1 percent (16.3) of total credit exposures. Skr 50.5 billion (39.2) covered corporate exposures, and Skr 21.7 billion (9.5) covered exposures to financial institutions. The guaranteed corporate exposures are included in the class of financial instruments “Credits to the public and the guaranteed exposures to financial institutions” in the class Credits to credit institutions.

Credit derivativesAt year-end 2008, Skr 31.0 billion (31.7) of SEK’s assets were secured through CDSs (Credit Default Swaps) coverage via 20 (21) different banks. (SEK has not purchased any CDSs issued by so-called monolines.) Skr 28.8 billion (26.8) covered corporate exposures and Skr 1.8 billion (4.9) covered exposures in securitization positions and Skr 0.4 billion (0.0) referred to exposures with financial institutions. All exposures covered by CDSs are included in either the class of financial instruments, “Other interest-bearing securities”, except credits or “Credits in the form of interest-bearing securi-ties”. SEK has so-called collateral agreements in place with issuers of credit derivatives. These collateral agreements oblige the individual issuers of credit derivatives to provide collateral or cash settlements if the market value of the credit derivatives issued exceeds previously agreed levels (threshold value). All credit derivatives are covered by collateral agreements.

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The table below shows the exposures to financial institutions and corporates per risk class (rating) and probability of default (PD). The capital requirement calculations for exposures to these risk classes are based on the PDs stated in the tables. For other exposure classes, the capital requirement calcula-tions are based on the risk weights set by the Swedish Financial Supervisory Authority, based on internally set risk classes. The quality of SEK’s internally rated credit exposures has decreased somewhat compared with the previ-ous year. See the migration matrix on the page opposite.

note that the PD estimates are the company’s internal estimates. FFFS 2007:1 states that for institutional and corporate exposures the PD must be at least 0.03 percent. SEK applies this basic rule in connection with formal capital requirement calculations.

0

5

10

15

20

25

30

35

40

BBBBBB+A-AA+AA-AAAA+AAA

Protected exposure, split by the protecting financial institutions internal rating, as a share of total protected exposure, per December 31, 2008 and 2007.

December 31, 2008December 31, 2007

Credit risk converted exposure in PD dimension, per December 31, 2008 and 2007Skr bn

Rating PD Financial institutions Corporates

AAA 0.01% 5.9 (9.7) 0.0 (1.2)

AA+ 0.01% 0.2 (0.2) 1.0 (0.5)AA 0.02% 22.3 (30.4) 1.0 (0.2)AA- 0.03% 39.4 (58.7) 1.5 (1.4)A+ 0.05% 40.0 (21.2) 4.3 (4.6)A 0.08% 30.7 (5.7) 3.1 (1.7)A- 0.12% 10.0 (5.8) 4.2 (4.1)BBB+ 0.19% 5.8 (1.6) 7.3 (2.3)BBB 0.29% 1.1 (0.3) 4.8 (3.3)BBB- 0.44% 0.4 (0.4) 3.1 (2.5)BB+ 0.86% 0.8 (0.0) 2.4 (0.7)BB 1.27% 0.0 (0.0) 0.4 (0.2)BB- 2.12% 0.3 (0.0) 0.4 (0.6)B+ 3.39% 0.0 (0.0) 0.2 (0.6)B 9.22% 0.0 (0.0) 0.0 (0.0)B- 13.66% 0.0 (0.0) 0.1 (0.0)CCC 30.95% 0.0 (0.0) 0.1 (0.0)D 100.00% 0.5 (0.0) 0.1 (0.0)Total 157.4 (134.0) 34.0 (23.9)


riSK DAtA

Migration matrix, internal risk classification December 31, 2008The vertical axis shows SEK’s internal risk classification as per December 31, 2007 and the horizontal axis displays SEK’s internal risk classification as per December 31, 2008. The shaded diagonal displays the share of unchanged internal ratings at the year end 2008 compared to the equivalent internal ratings at year-end 2007. One row in the matrix shows ratings as per December 31, 2008 for counterparties with the rating as per December 31, 2007 shown in the first column.

AAA AA+ AA AA- A+ A A- BBB+ BBB BBB- BB+ BB BB- B+ B B- CCC D Total

AAA 88% 12% 100%AA+ 91% 9% 100%AA 12% 40% 5% 18% 7% 11% 7% 100%

AA- 6% 1% 54% 31% 1% 1% 3% 3% 100%

A+ 2% 40% 30% 6% 10% 4% 8% 100%A 3% 3% 75% 13% 3% 3% 100%A- 11% 8% 42% 25% 6% 8% 100%BBB+ 4% 21% 59% 8% 4% 4% 100%BBB 4% 11% 45% 33% 7% 100%BBB- 16% 56% 16% 4% 8% 100%BB+ 80% 20% 100%BB 50% 50% 100%BB- 40% 20% 20% 20% 100%B+ 100% 100%B 100% 100%B- 100% 100%


rEport of thE dirEctorS

Report of the Directors

Volume Development, Lending

Skr mn Total Of which S-systemTotal Of which

CIRRcredits

Concessionarycredits

2008 2007 2008 2007 2008 2008

Offers of long-term credits accepted 63,591 53,143 912 1,329 890 22Syndicated customer transactions 1,298 3,683 – – – –Total customer financial transactions 64,889 56,826 912 1,329 890 22Undisbursed credits at year-end 21,431 22,454 11,459 12,615 10,897 562Credits outstanding at year-end 158,678 109,287 10,106 8,831 9,415 691

(See Note 10 and 24)

All amounts in this Report of the Directors relate to the consolidated group unless otherwise stated. (See Note 1). For differences between consolidated group and parent com-pany see Note 1 (m), Income state-ments, Balance Sheets, Statement of Recognized Income and Expenses, Statements of Cash-flows and related Notes.

Business ActivitiesSweden depends heavily on its exports and exports accounts more than half of Sweden’s GNP. Also a few number of very large corporations accounts for a large part of export revenues. These corporations have earlier been dependent on large multinational banks for their long-term financing. The liquidity crisis in the financial markets and that most of the large international banks have reduced their activities in the Scandinavian market, has made it increasingly difficult for Swedish export companies to find long-term financing during the year. The interest in SEK’s financing solutions has increased significantly.

Due to its high liquidity, SEK has been one of only a few parties able to provide long-term financing, in spite of the difficult mar-ket situation, and the volume of new financing solutions in 2008

amounted to Skr 64.9 billion, a 14 percent increase compared with the previous year and the highest volume ever for SEK.

Credits for the Swedish export industry and lending to the financial sector were the main drivers behind these high volumes. The increase to the financial sector contributed indirectly to lending to small and medium-sized companies through Nordic financial institutions.

The role of SEK for the Swedish export industry has become all the more important during the year. In December the Swedish government significantly strengthened SEK’s lending capacity through a capital contribution of Skr 3 billion in new equity and a transfer of the shares of the state-owned company Venantius AB to SEK. Venantius’ equity amounts to approximately Skr 2.4 billion. Also, in the beginning of 2009 SEK was provided a bor-rowing facility of up to Skr 100 billion. The parliament has also given mandate to the government to give SEK the possibility to purchase state guarantees on commercial terms for its new bor-rowing up to Skr 450 billion.

During the year, SEK successfully expanded its ability to offer its customers financing in local currency. In December, SEK became one of only six foreign institutions to be granted a license to issue bonds in Thai baht. In addition, in 2008 SEK expanded its offering to also include Brazilian real, Kazakh tenge and Romanian leu.

Skr 0.9 billion (1.3) of long-term credits was granted under the S-system (see Note 24).

The total amount of credits outstanding and credits committed though not yet disbursed increased during the year to Skr 180.1 billion at year-end (131.7), of which Skr 158.7 billion (109.3) represented credits outstanding, an increase of 45 percent. The increase was related mainly to increased new business volumes. Of the aggregate amount of Skr 180.1 billion (131.7) of credits outstanding and credits committed, Skr 21.6 billion (21.4) was related to the S-system, of which Skr 10.1 billion (8.8) represented credits outstanding.

The aggregate amount of outstanding offers for new credits at year-end increased to Skr 27.4 billion (45.6).

The rating level established after the ownership change in 2003 has remained unchanged since then. SEK’s long-term debt rating is AA+ from Standard & Poor’s and Aa1 from Moody’s.

In 2008, SEK’s standing as a reliable and stable institution in the international capital markets has become increasingly stron-ger as the global financial crisis has grown in severity. Over the year, SEK has been one of very few institutions that were continu-ally able to issue bonds.

New Customer Financial Transactions

Skr bn 2008 2007

Export credits 26.8 18.0Other credits to exporters 12.7 9.6Credits to other corporates 1.9 6.2Credits to the public sector 8.1 10.7Credits to the financial sector 14.1 8.6Syndicated customer transactions 1.3 3.7Total 64.9(1) 56.8

(1) Of which Skr billion 21.4 (22.5) has not yet been paid out.



Over the year SEK carried out 705 transactions, with borrowing amounting to Skr 86.2 billion (108.0), or USD 13.4 billion (15.9). This represents a decrease of Skr 21.8 billion compared with the previous year, but was nonetheless a strong performance in view of the turmoil and liquidity crisis in world markets during the year. The maturities for SEK’s new borrowing have been slightly shorter than before.

The global market situation has resulted in SEK focusing pri-marily on structured capital market borrowing during the year. The Japanese and U.S. retail bond markets accounted for the bulk of SEK’s new borrowing. SEK has consequently been able to fund itself almost entirely without using the public markets. SEK has also been highly active in repurchasing its own bonds during the year.

capital contribution On December 18, 2008, SEK has received an infusion of Skr three billion in new capital from its owner, the Swedish state and has also received from the Swedish state the totality of the shares of Venantius AB, as a part of the state’s program to strengthen SEK’s capacity to finance the Swedish export industry.

The consolidated group Venantius (“Venantius”) has equity of approximately Skr 2.4 billion, a loan portfolio amounting to approximately Skr 0.5 billion of outstanding loans and liquidity amounting to approximately Skr 1.9 billion. For the acquisition of Venantius, see Note 31.

In addition on February 5, 2009 the government has decided, via the Swedish National Debt Office, to provide SEK a loan facility amounting to Skr 100 billion, an action approved of the parliament. Further, the parliament has authorized the govern-ment that SEK should be given the possibility, on commercial conditions, to buy government guarantees for its new borrowing up to Skr 450 billion.

Adjustments of previous yearsAdjustments of previous years have been made regarding com-parative figures related to the Consolidated Group and the Parent Company. (See Note 1.)

For fiscal year 2008 the income was restated from Skr 167.7 million to Skr 185,2 million, compared with the Year-End Report published February 20, 2009.

performance measurement and return on equitySkr mn Jan–Dec, 2008 Jan–Dec, 2007Operating profit (IFRS) 185.2 497.0

Adjustment for change in market valuation according to IFRS (Note 4) 648.7 38.0

Adjusted operating profit (Core Earnings)

833.9

535.0

Pre-tax return on equity (IFRS) 3.9% 11.4%After-tax return on equity (IFRS) 2.8% 8.2%Pre-tax return on equity (Core Earnings) 17.5% 12.8%After-tax return on equity (Core Earnings) 12.6% 9.2%For financial highlights 2004–2008, see Note 30. Adjusted to the Year-End Report published February 20 from 167.7 (506.9) to 185.2 (497.0).

SEK discloses operating profit (IFRS), which is operating profit including certain effects of market valuation, and adjusted oper-ating profit (Core Earnings), which is operating profit exclusive of certain effects of market valuation. Based on the functioning of SEK’s economic hedging, SEK believes Core Earnings constitutes a complement to operating profit (IFRS) in reflecting the eco-nomic results of SEK’s activities. The reason is that Core Earnings excludes valuation effects on items which pursuant to IFRS have to be accounted for at market value even though they are eco-nomically hedged.

return on EquityReturn on equity (IFRS) was 3.9 percent (11.4) before taxes, and 2.8 percent (8.2) after taxes, respectively. Return on equity (Core Earnings) was 17.5 percent (12.8) before taxes, and 12.6 percent (9.2) after taxes, respectively.

operating profit (ifrS)Operating profit (IFRS) amounted to Skr 185.2 million (497.0), a decrease of 63 percent year-over-year. Included in operating profit (IFRS) are market valuation effects amounting to Skr –648.7 mil-lion (–38.0) which are excluded from Core Earnings. These market valuation effects are mainly related to the mismatch that arises in operating profit (IFRS) due to the requirement to that certain derivatives be valued at market value, even though corresponding hedged items are measured at amortized cost. During 2008 such ef-fects had a much larger impact in the result than earlier due to the turbulent market situation which has resulted in major changes in credit-spreads, interest rates and exchange rates, special during the fourth quarter. See the section ’Net results of financial transactions’ below. Core Earnings as well as operating profit (IFRS) was affected by avoiding a negative earnings effect of Skr 27.8 million due to the adoption of new regulations regarding the classification of financial assets during the autumn 2008. (See Note 1 and 11.)

Adjusted operating profit (core Earnings) Core Earnings amounted to Skr 833.9 million (535.0), an increase of 56 percent. The increase in Core Earnings was mainly related to an increase in net interest revenues of Skr 710.2 million, related to improved margins and higher business volumes. The increase in business volumes was due to favorable market conditions for SEK as a result of the turbulent financial market conditions and due to the fact that SEK has a stable borrowing base in USD. The result is that SEK have had higher margins than normally when USD-denominated financing has been alternated via derivative contracts to EUR and placed in EUR-denominated assets. The result has been affected by impairments amounting to Skr 557.0 million (–) (See the section Recovered credit loss and impairment of financial assets and Note 7).

Net interest earningsNet interest earnings totaled Skr 1,543.3 million (833.1), an increase of 85 percent. The increase was mainly due to increased average margins but also to increased average volumes mainly in the credit portfolio but also in the liquidity portfolio.

The average volume of debt-financed assets totaled Skr 270 billion (234), an increase of 15 percent. The increase in volumes was mainly due to increased volumes in the credit portfolio but also to the liquidity portfolio. The increase in the credit port-folio was related to an increase in new lending, especially during the second half- of the year, and to currency exchange effects. The average margin on debt-financed assets was 0.49 percent p.a. (0.28), an increase of 75 percent. This increase was due to favorable market conditions for SEK as a result of the turbulent financial market conditions and due to the fact that SEK has a stable borrowing base in USD. The result is that SEK have had higher margins than normal when USD-denominated financ-ing has been alternated through derivative contracts to EUR and placed in EUR-denominated assets.

Net interest earnings includes Skr 22.4 million (29.8) rep-resenting remuneration from the S-system, based mainly on outstanding volumes of credits. This is compensation paid to SEK for carrying the S-system credits and the related credit risks in SEK’s balance sheets.

commissions earned and commissions incurredCommissions earned amounted to Skr 34.7 million (31.6). The in-crease was due mainly to higher amounts of capital market commis-sions. Commissions incurred amounted to Skr 21.7 million (19.1).


party to individual, performance-related remuneration agree-ments. Total variable remuneration for the individual employee may amount to a maximum equivalent to five months.

other items in operating profitDepreciations of non-financial assets amounted to Skr 21.0 million (30.2). Costs were mainly related to depreciations of intangible assets related to SEK’s business system.

recovered credit loss and impairment of financial assetsIn 2008 an amount of Skr 4.7 million (–) was recovered on an earlier reported credit loss. Impairment of financial assets amounted to Skr 561.8 million (–). Of that amount Skr 388.7 mil-lion (–) is related to an exposure to Glitnir Bank, and Skr 135.0 million (–) is related to a CDO. (See below.) SEK’s exposure to Icelandic banks consists of an exposure to Glitnir Bank amount-ing to the equivalent of approximately Skr 517 million (before im-pairment). No part of this exposure is denominated in Icelandic currency. At the date of this report there is a lack of information with regard to how the government of Iceland will act with regard to the lenders to Icelandic banks and with regard to the economic position of Glitnir Bank. Due to this lack of information and consequent uncertainty, an impairment charge has been recorded in an amount equal to 75 percent of the outstanding claim, ap-proximately Skr 388.7 million. (See Note 7.)

Furthermore, SEK holds two Collateralized Debt Obligations with end-exposure to the U.S. mortgage market. The rating of one of these assets has been very severely downgraded during 2008. Based on information presently known, the Company assesses that one of the assets that has a book value before impairment, amounting to Skr 384,5 million not will generate cash flow that will cover the Company’s claim. Consequently, SEK has deter-mined to write down the value of the asset by Skr 135.0 million. (See Note 7.)

SEK has not recorded any impairment related to its exposures to Lehman Brothers Group. Following the parent company in the Lehman Brothers group, Lehman Brothers Holdings Inc.’s request for bankruptcy protection on September 15, 2008, SEK replaced most of the outstanding derivative contracts the company had en-tered into with three different Lehman Brothers entities. Accord-ing to the terms of the contracts, SEK has prepared Calculation Statements in relation to all of these Lehman Brothers entities. The Calculation Statements were delivered to the respective counterparties in the beginning of October 2008.

SEK has assessed that due to off-setting, the company will not suffer any material costs relating to bankruptcy of Lehman Brothers. The majority of the contracts SEK had with different Lehman Broth-ers entities served primarily to hedge SEK from market risk. Those contracts have been replaced with new contracts. In addition, SEK had entered into credit default swaps with Lehman Brothers entities that were accounted for as financial guarantees and therefore re-corded at amortized cost. The underlying counterparties covered by these credit default swaps all now have such creditworthiness as to qualify under SEK policy to be held without credit default swap cov-erage. As a result SEK has not replaced these credit default swaps. The Calculation Statements include claims for calculated costs related to replacement of these financial guarantees which has been accounted for as contingent assets. SEK’s claims against Lehman associated with these financial guarantees are approx i mately Skr 1.5 billion which has not been recognized in the financial statements due to the requirement that contingent assets only be recognized when there is virtual certainty of collection. Given the unprec-edented nature of the Lehman Brothers bankruptcy filing and the expected length of the bankruptcy process an assessment has been made that the virtual certainty of collection threshold has not yet been met. SEK will continue to assess this situation and await the outcome of Lehman Brothers bankruptcy proceedings.

Net results of financial transactionsIn operating profit (IFRS) valuation effects are added to the net results of financial transactions. These amounted to Skr –648.7 million (–38.0) and are related to other items in the balance sheet.

During 2008 such effects has got substantially major impacts in the result than earlier due to the turbulent market situation as re-sulted in major changes in credit-spreads, interests and exchange rates, special during the fourth quarter. The negative result im-pact depends mainly on three factors. It most important is related to that SEK have one portfolio of bonds amounting to Skr 11.2 billion that are hedged with consideration to interest risk, cur-rency risk and, via credit-derivate, credit-spreads changes. The portfolio is presented to fair value via the income statement. Mainly during the fourth quarter, the difference between the bonds credit-spread and credit derivatives spread has increased remarkable, which has resulted in negative net value changes. SEK have the intention to keep the assets to maturity. The other factor that has affected value changes negative according to IFRS, is the valuation of derivatives representing exchange from USD to EUR. The fair value on these derivatives has been volatile during the whole 2008. The third factor that affected the IFRS-result neg-ative was that the short-term EUR rate fell strongly at the end of the year. It has affected the value of short-term positions between interest turnover days. The net result of financial transactions has been positively affected with Skr 114.6 million (0,0) on account of revaluation of credit-spreads on own liability.

In Core Earnings net results of financial transactions totaled Skr 191.8 million (2.4).

The increase was mainly related to realized currency exchange effects, partly related to positions against Lehman Brothers-related positions (see note 4), and to a reclassification of assets according to changed accounting principles implemented in October, but effective as of July 1, 2008. Assets previously accounted for at fair value in the trading portfolio respective available-for-sale assets have been reclassified both to the loans and receivables category. The trading portfolio was reclassified as of July 1, 2008 and the available-for-sale as of October 1, 2008. The reclassification of the trading portfolio meant that SEK avoided a negative effect on its net results of financial transactions of Skr 27.8 million. The reclas-sification of the available-for-sale assets did not have any effect on SEK’s net result of financial transactions (see notes 1 and 4). Fur-thermore the results of financial transactions have been positively affected by profits related to repurchased bonds issued by SEK. In the current financial turmoil there has been an increase in such repurchases, especially with respect to structured issues.

Administrative expensesAdministrative expenses totaled Skr 340.3 million (282.6), an increase of 20 percent. The increase is related to that the business activity grows and to maintaining of legislations. Administrative expenses include a cost for the general incentive system amount-ing to Skr 19.3 million (17.7). The general incentive system is based on Core Earnings. The average number of employees was 183 (160), an increase by 14 percent.

During 2008 the administrative expenses were affected by a Skr 19.3 million (17.7) provision under SEK’s general incentive system for its staff. The total cost for the incentive system for every individual year is limited to an amount equaling two months salaries per employee plus social insurance costs. SEK’s general incentive system, which is based on the outcome of Core Earnings includes all employees which have a permanent employ-ment, not a temporary employment, within the Group. Excluded from SEK’s general incentive system are certain employees work-ing with advisory services. Excluded from SEK’s general incentive system are also the executive committee and the chief accounting officer of the Group. The total number of employees which was included in the general incentive system at December 31, 2008, was 170. In addition to the general incentive system, SEK is also a



other Exposures and risksSEK maintains a conservative policy with regard to market exposures, interest-rate risks, currency exchange-rate risks and operational risks. See section “Risk report” in this annual report.

EquityOn December 18, 2008, the Swedish State delivered to SEK Skr three billion in new equity financing, as well as the totality of the share capital of the formerly state-owned company Venantius AB with the aim to strengthening SEK: s capacity to finance the Swedish export industry.

In November, the government suggested that SEK’s capacity to assist the Swedish export industry with long-term financ-ing should be strengthened, partly through the aforesaid capital injection of Skr three billion in new capital and partly through the allocation to SEK of the shares of the State company Venantius AB. Venantius has equity of approximately Skr 2.4 billion, approximately Skr 0.5 billion and liquidity amounting to approximately Skr 1.9 billion. The proposal was approved by the parliament and was implemented as a whole.

capital Adequacy SEK capital adequacy ratio calculated according to Basel II, Pillar 1, at December 31, 2008, was 21.4 percent (17.1) before inclu-sion of effects related to the transitional rules. Inclusive of effects related to the transitional rules the capital adequacy ratio at December 31, 2008 was 15.5 percent (8.9), of while the Tier-1-ratio was 14.8 percent (y-e: 6.5). See the section Capital adequacy and exposures.

The capital injection received from the Swedish state in a total of Skr 5,440 million impacted the capital base positively by same amount. At the same time the assets of Venantius have increased capital requirements by Skr 58 millions. The credit portfolio of Venantius has been calculated in accordance with the standard-ized method. The Swedish Financial Supervisory Authority has approved an exemption from the IRB-approach.

In December 2008 the Swedish Financial Supervisory Author-ity decided about new regulations concerning the calculation of primary capital with the effect that credit institutions and securi-ties companies can have a larger proportion of Tier-1-eligible capital in their Tier-1-capital. This capital is allowed to be added to Tier-1 capital up to 30 percent of the total amount of Tier-1 capital, in comparison to the previously allowed 15 percent. The amended regulation impacted SEK’s Tier-1-ratio positively by 1.3 percentage points.

results under the S-systemCIRR credits, one of the two types of credits in the S-system, contributed to the S-system results with Skr 105.4 million (–0.3). Costs related to concessionary credits, the other type of credits in the S-system, were Skr 36.5 million (42.5). The S-system paid a net compensation to SEK amounting to Skr 22.4 million (29.8). This is compensation paid to SEK for carrying the S-system cred-its and the related credit risks in SEK’s balance sheets.

Net deficit of both types of credits in the S-system is fully reimbursed by the state while net surplus is repaid to the state. A breakdown of results is shown in the table below.

Net profitNet profit amounted to Skr 143.9 million (345.9). Net result was positively impacted by a reduction in the corporate tax rate, from January 1, 2009, from 28 percent to 26.3 percent, which resulted in that deferred taxes were calculated on the basis of the new lower tax rate. The impact on net profit 2008 of the reduced tax rate amounts to Skr 19.3 million.

changes in fair value recognized directly in equityChanges in fair value recognized directly in equity amounted to Skr 199.7 million (–107.2) after tax, of which Skr –48.4 million (–64.3) was related to available-for-sale securities and Skr 248.1 million (–42.9) was related to derivatives in cash-flow hedges.

A reclassification of available-for- sale securities has been com-pleted to conform to according to changed accounting principles implemented in October, effective as from October 1, 2008. The assets have been reclassified to the loans and receivables category. The reclassification has affected value changes direct to equity.

total AssetsThe gross value of certain balance sheet items, which effectively hedge each other, primarily derivatives (assets or liabilities) and senior securities issued by SEK is to some extent uncertain. There is however, no such uncertainty with regard to the value of net assets. (Note 11.)

SEK’s total assets totaled Skr 370.2 billion (y-e: 297.3) at period-end, an increase of 24 percent. The main components of the net change in total assets were a Skr 1.9 billion increase in the portfolio of interest-bearing securities, and a Skr 49.4 billion in-crease in the credit portfolio. Currency exchange effects positively affected the book values of these portfolios by approximately Skr 20.1 billion and Skr 17.5 billion, respectively. Credits out-standing represented Skr 158.7 billion (109.3) of total assets, while interest-bearing securities represented Skr 161.8 billion (159.9). (Note 10.)

In addition to the revenue-generating assets, the balance sheet at year-end also included Skr 38.9 billion (20.3) representing derivatives, Skr 6.1 billion (5.3) representing accrued and prepaid items, Skr 0.1 billion (0.1) representing non-financial assets, and Skr 4.5 billion (2.3) representing other assets. The approximate month-end average volume of total assets during the year was Skr 270 billion (234).

The aggregate amount of outstanding offers for new credits totaled Skr 27.4 billion at year-end (45.6) at year-end, a decrease of 40 percent. The decrease in the volume of outstanding offers is due to a higher acceptance than normal of the offers outstanding at year-end, due to the current market situation.

SEK maintains a high level of liquid assets and a low fund-ing risk. The aggregate volume of funds borrowed and equity exceeded the aggregate volume of credits outstanding and credits committed though not yet disbursed at all maturities. According-ly, all credit commitments are funded through maturity. See also the graph “Development over Time of SEK’s Available Funds” in the section “Risk report” in this annual report, which section forms an integral part of the Report of Directors.

counterparty risk The quality of SEK’s assets remains high. The table, Exposures, in the section “Capital Adequacy and Exposures” shows the distribution of risk exposures to the various categories of coun-terparties. There were no major shifts in the breakdown of SEK’s counterparty risk exposures.

The amounts of gross counterparty exposures, before taking into consideration credit guarantees and other risk-mitigating instruments, is shown in the Risk Report which is an integrated part of this annual report.


Results in the S-system by Type of Credit CIRR

CreditsConcessionary

CreditsSkr mn 2008 2007 2008 2007

Net interest revenues +126 +27 –35 –41Remuneration to SEK –21 –28 –1 –2Foreign exchange effects 0 +1 – –Total +105 0 –36 –43


review also covers project related credits as well as credits to cor-porates which have been offered at market conditions. In SEK’s review of its counterparties’ creditworthiness the environmental aspect is an integrated part of the analysis. The objective of SEK’s internal environmental activities is to attain well-functioning operations in an environmentally appropriate office.

Sustainability accountingFor sustainability accounting see other section in this Annual Report.

future development SEK’s future development is based on a number of factors, some of them which are difficult to predict and generally beyond the Company’s control. These factors include among other things the following:• Changes in general economic business conditions;• Changes and volatility in currency exchange and interest rates;• Changes in the competitive situation on one or more financial

markets• Changes in government policy and regulations and in political

and social conditions.SEK is not aware of that any of these factors as of the date of this report will have a material negative impact on the future of the Company.

post-balance sheet eventsThe Government has on February 5, 2009, decided that SEK should be provided with a loan facility amounting to Skr 100 billion through the Swedish National Debt Office, a measure that has been approved by the Parliament.

The new share capital amounting to Skr 3,000 million was paid to the company on December 18, 2008. On January 26, 2009, the Swedish Financial Supervisory Authority approved the change in share capital and the new number of shares. On February 4, 2009 the new issue has been registered at the Swedish Companies Registration Office.

SEK has as of March 8, 2009, in connection with the regulation of a claim towards Sparbanksstiftelsernas Förvaltnings AB (the Borrower), come to an arrangement with the largest creditors to the Borrower, meaning that SEK assumes the control of in total 25,520,000 shares in Swedbank AB. The shares represent 3.3 percent of the share capital and votes in Swedbank AB. The fair value of the shares at the date of this annual report is well above the book value of the original claim.

SEK’s Board of Directors has decided on March 20, 2009, to amend principles for remuneration and other benefits to key officers. The decision is taken retroactively for the financial year 2008, and means that no variable remuneration is given to key officers.

CIRR-based export credits in the S-system generated deficits every year from the year after the system’s introduction, 1978, until 1989. The aggregate surplus for 1990 to 2008 was approximately Skr 2.2 billion, with the average year-end volume of credits out-standing amounting to Skr 7.8 billion. In 2007 the CIRR-based export credits generated a small deficit and in 2008 it generated a surplus. The surplus in 2008 was primarily due to favorable bor-rowing rates in USD.

corporate GovernanceThe Swedish Corporate Governance Code (Svensk kod för bolagsstyrning) is in effect for certain public companies. For the financial year 2008, the Board of Directors’ report on internal control does not include any statement regarding how well the internal control has been conducted during the past financial year. However, the Board issued a Corporate Governance Report in which the Board comments on certain deficiencies in internal control. See also Corporate Governance Report on page 49.

SEK is a Foreign Private Issuer (FPI) as defined by regulation in United States and therefore affected by the Sarbanes-Oxley Act. The implications of the Sarbanes-Oxley Act were significant to SEK in the year. SEK had been running a project from 2004 until 2006 intended to achieve compliance with Section 404 of the Act. SEK will report in accordance with the regulations with regards to management’s testing and attestation by December 31, 2007, while auditors’ attestation of the internal control not will be compulsory until 2009.

personnel and organization During the year, the number of employees averaged 183 (160), of whom 78 (69) were female and 105 (91) were male. The total number of employees at year-end was 209 (177). The average age of the employees at year-end was 42 years (43).

The Executive Committee consisted of 6 (6) directors at year-end, of whom 2 (2) were female and 4 (4) were male. The number of persons included in management exclusive of the executive committee at the end of the year was 26 (25), of whom 8 (9) were female and 18 (16) were male.

Principles for remuneration and other benefits to key officers are established by the annual general meeting. The following proposal, meaning a significant change of principle, which means that no variable remuneration is given to key officers will be presented to the annual general meeting in May 2009. Remunera-tion to key officers consists of fixed salary and other benefits. The pension commitments for key officers should as a rule be in the form of defined contribution plans and covered by insurance. Exception is allowed taking into consideration existing pension agreements.

SEK has an equal opportunities plan as part of its efforts to utilize and enhance the skills of women and men. This plan is intended to nurture and enhance the skills of both genders to maximize profitability, productivity and customer benefit. During 2008 SEK arranged a number of seminars for all its personnel covering aspects related to environmental issues, ethical values, and corporate social responsibility.

Environment SEK’s environmental policy is in accordance with the OECD’s agreement on common approaches to considering the environ-mental impact of projects when providing officially supported export credits. The policy stipulates SEK ensuring that an envi-ronmental review is conducted for export projects where there is a risk of an adverse environmental impact. SEK’s environmental



iNcomE StAtEmENtS

January–December, 2008 January–December, 2007(2)

Skr mn NoteConsolidated

GroupParent

CompanyConsolidated

GroupParent

Company

Interest revenues 12,964.1 12,961.7 11,046.8 11,049.3Interest expenses –11,420.8 –11,421.2 –10,213.7 –10,214.2Net interest revenues 2 1,543.3 1,540.5 833.1 835.1Commissions earned 3 34.7 7.8 31.6 4.3Commissions incurred 3 –21.7 –18.5 –19.1 –17.6Net results of financial transactions 4 -456.9 -456.8 –35.6 –35.6Other operating income 0.1 6.7 0.3 2.8Operating income 1,099.5 1,079.7 810.3 789.0Administrative expenses 5 –340.3 –319.2 –282.6 –265.5

Depreciations and amortizations of non-financial assets 6 –21.0 –17.9 –30.2 –27.4

Other operating expenses –0.7 0.0 –0.5 0.2Recovered credit losses 7 4.7 4.5 – –Impairment of financial assets 7 –557.0 –561.8 – –Operating profit 185.2 185.3 497.0 496.3

Changes in untaxed reserves 8 n.a. 138.7 n.a. 0.3

Taxes 9 –41.3 –100.9 –151.1 –150.1Net profit for the year (after taxes) (1) 143.9 223.1 345.9 346.5

(1) The entire profit goes to the shareholder of the parent company.(2) Restated, see Note1.

Income Statements

NotES


December 31, 2008 December 31, 2007(1)

Skr mn NoteConsolidated

GroupParent

CompanyConsolidated

GroupParent

CompanyASSEtS

Cash in hand 0.0 0.0 0.0 0.0Treasuries/government bonds 10, 11 1,494.7 1,494.7 1,857.9 1,857.9Other interest-bearing securities except credits 10, 11 136,551.4 136,551.4 147,849.3 147,849.3Credits in the form of interest-bearing securities 10, 11 63,609.3 63,609.3 45,983.7 45,983.7Credits to credit institutions 10, 11, 13 48,399.6 46,519.1 24,812.6 24,808.5Credits to the public 10, 11, 13 70,440.2 69,906.5 48,702.0 48,702.0Derivatives 11, 12 38,929.1 38,929.1 20,326.5 20,326.5Shares in subsidiaries 14, 31 n.a. 2,561.6 n.a. 120.2Property, plant, equipment and intangible assets 6 136.5 22.1 144.0 33.1Other assets 15 4,341.7 4,397.4 2,268.8 2,357.2Prepaid expenses and accrued revenues 16 6,111.7 6,073.6 5,292.0 5,288.5Total assets 370,014.2 370,064.8 297,236.8 297,326.9

LiABiLitiES, ALLocAtioNS ANd EQUitY Borrowing from credit institutions 11, 17 3,310.0 3,320.0 2,064.1 2,074.1Borrowing from the public 11, 17 185.7 188.6 42.7 45.6Senior securities issued 11, 17 305,971.8 305,971.8 267,345.6 267,345.6Derivatives 11, 12 39,414.6 39,414.6 13,224.8 13,224.8Other liabilities 18 1,548.3 1,597.2 1,910.9 1,960.4Accrued expenses and prepaid revenues 19 5,443.4 5,439.6 4,761.3 4,760.2 Deferred tax liabilities 20 387.1 57.7 430.1 42.6Provisions 20 35.5 13.5 9.9 16.1Subordinated securities issued 11, 21 3,323.5 3,323.5 2,837.0 2,837.0Total liabilities and allocations 359,619.9 359,326.5 292,626.4 292,306.4

Untaxed reserves 8 n.a. 1,135.2 n.a. 1,273.9

Share capital 3,990.0 3,990.0 990.0 990.0Legal reserve n.a. 198.0 n.a. 198.0Reserves 31.2 31.2 –168.5 –168.5Retained earnings 6,229.2 5,160.8 3,443.0 2,380.6 Net profit for the year 143.9 223.1 345.9 346.5Total equity 22 10,394.3 9,603.1 4,610.4 3,746.6

totAL LiABiLitiES, ALLocAtioNS ANd EQUitY 370,014.2 370,064.8 297,236.8 297,326.9

coLLAtErAL proVidEd Collateral provided None None None NoneInterest-bearing securities

Subject to lending 425.1 425.1 255.1 255.1

coNtiNGENt LiABiLitiES ANd coNtiNGENt ASSEtS 23 None None None None

commitmENtS Committed undisbursed credits 23 21,431.0 21,431.0 22,454.2 22,454.2

(1) Restated, see Note 1.

BALANcE ShEEtS

Balance Sheets

NotES


Consolidated Group

Skr mn Note January–December, 2008 January–December, 2007(2)

Net profit for the year 143.9 345.9Changes in fair value recognized directly in equity:

for available for sale securities –63.1 –89.3for derivatives in cash flow hedges 339.5 –59.6tax effect –76.7 41.7

Total changes in fair value recognized directly in equity 199.7 –107.2Total recognized income and expenses for the year (1) 22 343.6 238.7

Note 22 shows the reconciliation between the opening and closing balance regarding the components of equity.

(1) The entire profit goes to the shareholder of the parent company.(2) Restated, see Note 1.

Statement of Recognized Income and Expenses

StAtEmENt of rEcoGNizEd iNcomE ANd ExpENSES

NotES


Statement of Cash-flows2008 2007(1)

Skr mnConsolidated

GroupParent

CompanyConsolidated

GroupParent

Company

Cash flows from operating activities Profit before tax (A) 185.2 185.3 497.0 496.3

Adjustments to reconcile net profit to net cash provided by operating activities:Group Contribution n.a. –6.6 n.a. 0.0Impairment of financial instruments 557.0 561.8 – –Depreciations 21.0 17.9 30.2 27.4Decrease (+)/increase (–) in derivative instruments excluding foreign exchange effects 31,058.5 31,058.4 –9,430.6 –9,430.7Foreign exchange effects 71.3 71.8 –35.7 –35.7Decrease (+)/increase (–) other 48.6 25.6 –90.3 –27.2Income tax paid –213.1 –217.8 –200.6 –196.0Total adjustments to convert net income for the year to cash flow generated by operations:

31,543.3

31,511.1

–9,727.0

–9,662.2

Disbursements of credits –38,055.2 –38,055.2 –36,496.1 –36,496.1Repayments of credits 9,594.9 8,303.7 18,833.9 18,833.6Net increase (–)/decrease (+) in bonds and securities held 30,056.5 30,056.2 –26,658.7 –26,659.4Other changes – net –2,230.6 –2,211.7 –242.8 –309.5NET CASH USED IN (–)/PROVIDED BY (+) OPERATING ACTIVITIES 31,094.1 29,789.4 –53,793.7 –53,797,3

CASH FLOWS FROM INVESTING ACTIVITIESCapital expenditures –13.5 –8.1 –5.7 –5.7

Acquisition of Venantius (2) 577.1 – – –

NET CASH USED IN (–)/PROVIDED BY (+) INVESTING ACTIVITIES 563.6 –8.1 –5.7 –5.7

CASH FLOWS FROM FINANCING ACTIVITIESNet decrease (–)/increase (+) in originally short-term debt –32,324.2 –32,324.2 12,031.0 12,031.0Proceeds from issuance of long-term senior debt 86,136.2 86,136.2 107,970.2 107,970.2Repayments of long-term debt –71,513.4 –71,513.4 –60,179.5 –60,179.4Dividend paid – – – –Own long-term debt repurchased, net change –3,396.7 –3,396.7 94.4 94.4New share issue 3,000.0 3,000.0 – –

NET CASH USED IN (–)/PROVIDED BY (+) FINANCING ACTIVITIES –18,098.1 –18,098.1 59,916.1 59,916.2

Net decrease (–)/increase (+) in cash and cash equivalents 13,472.8 11,595.9 6,158.8 6,155.3

Exchange rate difference in cash and cash equivalents 86.8 87.3 –42.1 –42.1Cash and cash equivalents at beginning of year 10,211.5 10,207.4 4,094.8 4,094.2

Cash and cash equivalents at end of year (B) 23,771.1 21,890.6 10,211.5 10,207.4

Comments on the cash flow statements: (A) Interest payments received and expenses paid:

2008

2007

Skr mn

ConsolidatedGroup

Parent Company

ConsolidatedGroup

Parent Company

Interest payments received 12,150.6 12,182.9 9,964.2 9,967.3Interest expenses paid 10,756.9 10,757.3 9,278.7 9,279.2

(B) Cash and cash equivalents: December 31, 2008 December 31, 2007 Skr mn

ConsolidatedGroup

Parent Company

ConsolidatedGroup

Parent Company

Cash at banks 1,965.6 1,385.1 188.9 184.8Cash equivalents 21,805.5 20,505.4 10,022.6 10,022.6

23,771.1 21,890.6 10,211.5 10,207.4

Cash at banks represents amounts that immediately can be converted into cash. Cash equivalents represents short term, liquid instruments where the amount is known in advance. Cash and cash equivalents is included in the the balance sheet in Credits to credit institutions.

(1) Restated, see Note 1.(2) See note 31 regarding the acquisition of Venantius.

StAtEmENt of cASh-fLowS

NotES


Capital Base

Consolidated Group Parent Company

Skr mn December 31, 2008 December 31, 2007 December 31, 2008 December 31, 2007

Primary Capital (Tier-1) 13,066 5,338 13,120 5,409Supplementary Capital (Tier-2) 619 2,003 619 1,993Of which: Upper Tier-2 72 1,544 72 1,534 Lower Tier-2 547 459 547 459Total Capital Base (2) 13,685 7,341 13,739 7,402

Adjusted Tier-1 Capital (3) 13,666 5,938 13,720 6,009Adjusted Total Capital Base (3) 14,285 7,941 14,339 8,002

(2) Total Capital Base, net after reductions including reduction for estimated loss in accordance with IRB calculation. The Capital Base includes net profit for the period less expected dividend related to the said period. The capital base for December 31, 2007, is not restated taking into account retroactive adjust-ments since these are not deemed to have a material impact. See Note 1.

(3) The adjusted capital adequacy ratios are calculated with the inclusion in the capital base of SEK’s guarantee, amounting to Skr 600 million, in addition to the legal primary-capital base.

cApitAL AdEQUAcY

Capital adequacy and exposures

capital requirementsThe capital adequacy ratio of SEK as a consolidated financial en-tity, calculated according to Basel II, Pillar 1 (i.e., the new regula-tion), as of December 31, 2008 was 21.4 percent (17.1) before the inclusion of effects related to the transitional rules (see below). Inclusive of effects related to the transitional rules the capital adequacy ratio of SEK as a consolidated financial entity as of De-cember 31, 2008 was 15.5 percent (8.9). The Tier-1-ratio was 14.8 percent (6.5). SEK’s increased capital ratios have mainly resulted from the government’s contribution of new capital during 2008.

In December 2008 the Swedish Financial Supervisory Author-ity decided on new regulations concerning the calculation

of capital with the effect that credit institutions and securities companies can have a larger proportion of “other capital than equity” in their capital base. This other capital – so-called “Tier-1-eligible capital” is allowed to be added to Tier-1 capital up to 30 percent of the total amount of Tier-1 capital excluding such capital before, in comparison to the previously allowed 15 percent. The amended regulation impacted SEK’s Tier-1-ratio positively by 1.3 percentage points.

For further information on capital adequacy and risks, see the section Risk and Capital Management on pages 51–67 in this Annual Report.

Capital Requirement in Accordance with Pillar 1


Skr mn December 31, 2008 December 31, 2007 December 31, 2008 December 31, 2007

WeightedClaims

RequiredCapital

WeightedClaims

RequiredCapital

WeightedClaims

RequiredCapital

WeightedClaims

RequiredCapital

Credit Risk Standardized Method 1,444 116 391 31 949 76 391 31Credit Risk IRB Method 60,507 4,840 37,370 2,990 62,719 5,017 37,379 2,990Trading Book Risks – – 3,743 299 – – 3,743 299Currency Exchange Risks – – – – – – – –Operational Risk 2,126 170 1,512 121 2,086 167 1,497 120Total Basel II 64,077 5,126 43,016 3,441 65,754 5,260 43,010 3,440

Basel I Based Additional Requirement (1) 24,071 1,926 39,397 3,152 23,826 1,906 39,401 3,152Total Basel II incl. Additional Require-ment 88,148 7,052 82,413 6,593 89,580 7,166 82,411 6,592

Total Basel I 97,942 7,835 86,749 6,940 99,534 7,963 86,748 6,940

(1) The item “Basel I Based Additional Requirement” is calculated in accordance with § 5 in “the law (2006:1372) on implementation of the new capital adequacy requirements (2006:1371)”.

NotES


Capital Adequacy Analysis (Pillar1)


December 31, 2008 December 31, 2007 December 31, 2008 December 31, 2007

Excl. Basel 1

based add. requirement

Incl. Basel 1


Excl. Basel 1


Incl. Basel 1


Excl. Basel 1


Incl. Basel 1


Excl. Basel 1


Incl. Basel 1


Total Capital Adequacy 21.4% 15.5% 17.1% 8.9% 20.9% 15.3% 17.2% 9.0%Of which: Rel. to Tier-1 20.4% 14.8% 12.4% 6.5% 20.0% 14.6% 12.6% 6.6% Rel. to Tier-2 1.0% 0.7% 4.7% 2.4% 0.9% 0.7% 4.6% 2.4% Of which: Upper Tier-2 0.1% 0.1% 3.6% 1.8% 0.1% 0.1% 3.6% 1.8% Lower Tier-2 0.9% 0.6% 1.1% 0.6% 0.8% 0.6% 1.0% 0.6%Adjusted Total 22.3% 16.2% 18.5% 9.6% 21.8% 16.0% 18.6% 9.7%Of which: Adjusted Tier-1 21.3% 15.5% 13.8% 7.2% 20.9% 15.3% 14.0% 7.3%

Capital Adequacy Quota (4) 2.67 1.94 2.13 1.11 2.61 1.92 2.15 1.12

(4) Capital Adequacy Quota = Total Capital Base/Total Required Capital

cApitAL AdEQUAcY

ExposuresThe tables below include amounts of total exposures, calculated to take into account risk mitigation technique in the form of guarantees, as well as credit derivatives.

TotalCredits & Interest- bearing securitites

Undisbursed credits, Derivatives, etc

Consolidated Group Skr billion Dec 31, 2008 Dec 31, 2007 Dec 31, 2008 Dec 31, 2007 Dec 31, 2008 Dec 31, 2007

Classified by type of counterparty Amount % Amount % Amount % Amount % Amount % Amount % Central Governments (1) 43.2 13 32.8 11 32.6 11 24.5 9 10.6 31 8.3 28Regional governments 21.2 6 20.5 7 19.1 6 15.3 6 2.1 6 5.2 18Government export credit agencies 41.4 12 25.8 9 33.3 11 19.1 7 8.1 24 6.7 23Financial institutions 157.5 46 145.6 49 146.4 47 138.1 51 11.1 32 7.5 25

Asset backed securities 43.6 13 48.7 16 43.6 14 48.7 18 0.0 0 0.0 0Retail (2) 0.1 0 0.0 0 0.1 0 0.0 0 0.0 0 0.0 0Corporates 35.5 10 25.0 8 33.0 11 23.2 9 2.5 7 1.8 6Total 342.5 100 298.4 100 308.1 100 268.9 100 34.4 100 29.5 100

(1) Includes exposures to the Swedish Export Credits Guarantee Board (EKN).(2) Retail exposures are as a whole related to exposures of Venantius AB.

The table above shows a breakdown, by counterparty category, of SEK’s total counterparty risk exposure related to credits, interest-bearing securities, committed undisbursed credits (including guarantees and credit default swaps) and derivatives. Exposure amounts for derivatives are stated at market value and take into account netting permitted under netting agreements. Other items outside the balance sheet are stated in nominal amounts.

There is a difference between the group and parent company relating to exposure in Venantius AB. Total exposure for Venantius AB, as at December 31, 2008, amounted to Skr 2.4 billion. Venantius AB has exposures towards the counterparty categories financial institutions, corporate and retail.

NotES


cApitAL AdEQUAcY

The table below includes current aggregated information regarding SEK’s total net exposures (after effects related to risk-cover and any write-downs) related to securitization positions held. All of these assets represent first-priority tranches, and they were all rated ’AAA’/’Aaa’ by Standard & Poor’s or Moody’s at the time of acquisition. Two of these assets have since been downgraded, namely the two CDO’s to which the Company has net exposures. These CDO’s represent exposures to the U.S. mortgage market.

Securitization positions held as of December 31, 2008Net exposures

Skr mn

Exposure RMBSCredit Cards

Auto Loans CMBS

ConsumerLoans CDO CLO Total

…of which rated

’AAA’/’Aaa’

…of which CDO rated

’B’/’Caa3’

…of which CDO rated ’CC’/’Caa3’

Australia 7,870 7,870 7,870Belgium 930 930 930Denmark 547 547 547

France 492 96 588 588

Ireland 1,603 496 2,099 2,099

Italy 156 156 156

Japan 53 53 53

Holland 1,869 124 600 2,593 2,593

Portugal 557 557 557

Spain 2,515 410 680 1,191 4,796 4,796

U.K. 14,042 1,426 15,468 15,468

Sweden 317 317 317Germany 2,156 94 2,250 2,250U.S. 547 615 4,051 5,213 4,598 365 250 (1)

Total 29,542 1,973 3,235 411 776 615 6,885 43,437 42,822 365 250 (1)

(1) This asset represents a CDO (a first-priority tranche) with end-exposure to the U.S. market. There have been no delays with payments under the tranche. However, the rating of the asset has been downgraded dramatically during the year, by Standard & Poor’s from ’AAA’ to ’CC’ and by Moody’s from ’Aaa’ to ’Caa3’. Due to the dramatic rating downgrade, the Company has analyzed the expected cash flows of the asset. Based on information presently known, the Company has determined to write down the value of the asset by Skr 135 million.

NotES


NotesAll amounts are in Skr million, unless otherwise indicated.

iNtrodUctorY NotE

rEportiNG ENtitY

AB Svensk Exportkredit (SEK or the Parent Company) is a company domi-ciled in Sweden. The address of the Company’s registered office is Västra Trädgårdsgatan 11B, P.O. Box 16368, SE-103 27 Stockholm. The consoli-dated financial statements of SEK as of December 31, 2008, comprise SEK and its wholly-owned subsidiaries AB Sektionen, AB SEK Securities, SEK Financial Advisors AB, SEK Financial Services AB, SEK Customer Finance AB, SEK Exportlånet AB and Venantius AB including its wholly-owned subsid-iary VF Finans AB (the Subsidiaries). These are together referred to as the Consolidated Group or the Group.

AB Sektionen’s main property, plant and equipment is its building, serving as SEK’s headquarters, and AB Sektionen does not presently operate any busi-ness other than renting its building to SEK. AB SEK Securities is a securities com-pany under the supervision of the Swedish Financial Supervisory Authority. SEK Financial Advisors AB’s and SEK Customer Finance AB’s objective is to engage in advisory services. Venantius AB is engaged in financing activi-ties, however not such activities that requires under the supervision of the Swedish Financial Supervisory Authority. SEK Financial Services AB and SEK Exportlånet AB are inactive companies.

BASiS of prESENtAtioN

(i) Statement of complianceAs of January 1, 2007, SEK is applying International Financial Reporting Standards (IFRS). This annual report has been prepared in compliance with IFRS as issued by International Accounting Standard Board (IASB). The IFRS-standards SEK are applying are all endorsed by the European Union (EU). Additional requirements in accordance with the Swedish Annual Accounts Act for Credit Institutions and Securities Companies (1995:1559) (ÅRKL), the recommendation RFR 1.1-Supplementary Accounting Principles for Groups, issued by the Swedish Financial Reporting Board (RFR) as well as the account-ing regulations of the Financial Supervisory Authority (FFFS 2006:16) have been applied. The accounting policies of the parent company are the same as in the consolidated financial statements, except as stated in section (m) below.

The disclosures required in the standards, regulations or in legislation have been included in the notes, the Risk Report (pages 51–67) or in other parts of these financial statements. In such cases the information shall be deemed to be included herein by reference.

The consolidated financial statements and the Parent Company’s annual report were approved for issuance by the Board of Directors on April 30, 2009. The Group’s and the Parent Company’s income statements and balance sheets are subject to adoption at the Annual General Meeting on May 6, 2009.

(ii) Basis of measurement The consolidated financial statements have been prepared on the historical cost basis except for the following;• derivative financial instruments are measured at fair value, • financial instruments at fair value through profit and loss are measured

at fair value,• available-for-sale financial assets are measured at fair value, and • hedged items in fair value hedges are at amortized cost adjusted to changes

in fair values with regards to the hedged risks.

(iii) Functional and presentation currency SEK has determined that Swedish krona (Skr) is its functional and presenta-tion currency under IFRS. The determination is based on several factors, the important ones being that SEK’s equity is denominated in Swedish kronor, its performance is evaluated based on a result expressed in Swedish kronor, and that a large portion of expenses especially related to administrative expenses and taxes is denominated in Swedish kronor. SEK manages its risk exposure with regard to foreign currency exposure in such a way that the exposure between Swedish kronor and other currencies is hedged.

Note 1. Significant accounting policies The accounting policies set out below have been applied consistently to all periods presented in these consolidated financial statements, if not stated otherwise.

tABLE of coNtENtS

(a) Basis of consolidation(b) Segment reporting(c) Recognition of operating income and expenses(d) Foreign currency transactions(e) Financial instruments(f ) Tangible assets(g) Intangible assets(h) Employee benefit(i) Untaxed reserves(j) Equity(k) Income tax(l) Critical accounting policies and estimates(m) Parent company(n) New standards and interpretations not yet adopted

chANGEd AccoUNtiNG poLiciES

The accounting policies, in all material aspects, are unchanged in comparison with the 2007 Annual Report, with the exceptions stated below.

The group has introduced the following revised standards from IASB as from 2008: IAS 39 and IFRS 7 (revised) Reclassification of financial instruments (endorsed by EU at October 15, 2008).

The revised standards permit certain financial instruments to be reclassi-fied from one accounting category to another under specific circumstances. Financial assets in the category financial assets at fair value through profit and loss could be reclassified to loans and receivables (at amortized cost), with the exceptions of derivatives and assets that were designated at initial recognition in the category fair value through profit and loss. The amendment also allows a company to reclassify a financial asset from the category financial assets avail-able for sale to loans and receivables if the assets would meet the definition of loans and receivables (unless the financial asset had been designated as a financial asset available for sale), and if the company has the intention and the possibility to hold the financial asset during a foreseeable future.

As of July 1, 2008, and October 1, 2008, SEK has reclassified assets to the category loans and receivables from the categories trading portfolio and assets available for sale, since those assets have been illiquid due to the extraordinary market conditions, and the Company assesses itself to be able to hold the assets to maturity, there being therefore no need for impairment of securities held for trading or securities available for sale. The securities previously held for trading are not longer hold with the intention to sell them during a foresee-able future. The outstanding assets with maturity not later than 2012, as of December 31, 2008 amounted to Skr 7.7 billion. The impact on the result of such reclassification for the six-month period ending December 31, 2008, was to avoid negative earnings effects of Skr 27.8 million before tax. The outstand-ing amount in previously included in the category available for sale assets but reclassified to loans and receivables was, as of December 31, 2008, Skr 13.0 billion with maturity not later than 2017. The effect of reclassification for the three-month period ending December 31, 2008, is an absent negative value change in equity amounting to Skr 321.1 million before tax. See Note 11 for further information on effects of the reclassifications.

GOING CONCERN

SEK’s board of directors and management has made an assessment of SEK’s ability to continue as a going concern and is satisfied that SEK has the resourc-es to continue in business for the foreseeable future. Furthermore, board of directors and management are not aware of any material uncertainties that may cast significant doubt upon SEK’s ability to continue as a going concern. Therefore, the financial statements continue to be prepared on the going concern basis.

NotES


rEStAtEmENtS rELAtEd to 2006 ANd 2007

SEK has restated its consolidated IFRS financial statements for the years ended December 31, 2007 and 2006, respectively, in order to correct certain techni-cal errors in the marking to market of a small number of derivative positions, assets and liabilities required to be reported at fair value. The changes have the overall effect of reducing previously reported net income for 2006 and 2007, while increasing previously reported shareholder’s equity for those years. The change in profit and loss appears in net result of financial transac-tions and is related to unrealized value change due mainly to technical difficul-ties to correctly value hedged transactions where the hedged instrument has been replaced with a new instrument, and also due to corrections of credit spreads where the unrealized value change related to such credit spreads is presented through the profit and loss.

The net effect of the restatement has resulted in a reduction of previously reported net income for 2007 by Skr 7.1 million and has reduced previously reported net income for 2006 by Skr 85.0 million. Conversely, the Company’s shareholder’s equity as of December 31, 2007 has increased by Skr 113.9 mil-lion and shareholder’s equity as of December 31, 2006 has increased by Skr 121.0 million. Furthermore, shareholder’s equity upon SEK’s transition to IFRS, as of January 1, 2006, has increased by Skr 206.0 million. See the tables below for further details.

The accounts for the parent company has been recalculated for 2007 and 2006 with similar effects.

Balance SheetsRestated effects for the

Consolidated Group

Skr mn 2007-12-31 2006-12-31

Opening balance

2006-01-01

ASSETSOther interest-bearing securities except credits

–1.5

–0.4

–0.4

Other assets –20.9 –1.4 –1.1TOTAL ASSETS –22.4 –1.8 –1.5

LIABILITIES, ALLOCATIONS AND EQUITYDerivatives 49.4 7.7Other liabilities –12.1 –91.0 –30.2Deferred tax liabilities 35.5 136.7 109.2Provisions –6.2 –4.8 –3.9Subordinated securities issued –202.9 –171.4 –282.6Total liabilities and allocations –136.3 –122.8 –207.5Retained earnings 121.0 206.0 206.0Net profit for the year –7.1 –85.0 –Total equity 113.9 121.0 206.0TOTAL LIABILITIES, ALLOCATIONS AND EQUITY

–22.4

–1.8

–1.5

EquityConsolidated Group

Skr mn 2007-12-31 2006-12-31

Opening balance

2006-01-01

Equity before adjustment 4,496.5 4,250.7 3,965.8Adjustment 113.9 121.0 206.0Equity after adjustment 4,610.4 4,371.7 4,171.8

Statement of recognized income and ExpensesConsolidated Group Restatement

Skr mn 2007 2006

Net profit for the year –7.1 –85.0Total recognized income and expenses for the year

–7.1

–85.0

The statement of cash-flows has been restated as a consequence of retroac-tive adjustments in income statements and balance sheets as well as with regard to the form for presentation. Adjustments for unrealized foreign exchange effects after revaluation of all assets, liabilities and derivatives are presented as a separate line item. Under the heading Net cash used in (–)/provided by (+) operating activities the analysis begins with Profit before tax instead of Net profit (after tax).

Statement of cashflowsConsolidated Group Skr mn

Restatement 2007

Restatement 2006

Net cash used in (–)/provided by (+) operating activities

872.6 1,257.1

Net cash used in (–)/provided by (+) investing activities

0.0 0.0

Net cash used in (–)/provided by (+) financing activities

–872.6

–1,257.1

Cash and cash equivalents at end of year 0.0 0.0

Restatements have been made in the comparative figures in the subsequent notes. Information on the retroactive adjustments related to above will be provided in the quarterly statement for the period January to March 2009 or published in any other way.

priNcipLES

(a) Basis of consolidation Subsidiaries are entities controlled by the Group. Control exists when the Group has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. Business combinations are accounted for in accordance with the purchase method. The financial state-ments of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. The accounting policies of subsidiaries are consistent with Group policies. Intra-group transactions and balances, and any unrealized income and expenses aris-ing from intra-group transactions are eliminated in preparing the consolidated financial statements. The information in the notes represents, unless otherwise stated, both the Consolidated Group and the Parent Company.

At acquisition date the assets and liabilities in the acquired company are recognized at fair value. The difference between the acquisition value of the shares in the subsidiary and the net assets in the subsidiary is recorded as goodwill. The fair value of assets and liabilities in the acquired company are prepared by management and in doing so partly consider independent valu-ation. In cases where the shares have been acquired without any exchange of cash remuneration, the fair value of assets and liabilities in the acquired company are also prepared by management and in doing so partly consider independent valuation.

Goodwill is not depreciated, but is subject to impairment test on a, at least, yearly basis.

(b) Segment reportingA segment is a distinguishable component of the Group that is engaged either in providing related products or services (business segment) or in providing products or services within a particular economic environment (geographical

income StatementsConsolidated Group 2007 2006

Skr mn

Before restatement Restatement

After restatement

Before restatement Restatement

After restatement

Net result of financial transactions –24.3 –11.3 –35.6 –7.9 –118.9 –126.8Administrative expenses –284.0 1.4 –282.6 –254.0 0.9 –253.1Operating profit 506.9 –9.9 497.0 501.3 –118.0 383.3

Taxes –153.9 2.8 –151.1 –145.8 33.0 –112.8Net profit for the year (after taxes) 353.0 –7.1 345.9 355.5 –85.0 270.5

NotES


segment), which is subject to risks and returns that are different from those of other segments. The Group’s primary format for segments is business segment.

(c) Recognition of operating income and expense(i) Net interest incomeInterest revenues and interest expenses related to all financial assets and liabili-ties, regardless of classification, are recognized in net interest revenues. The reporting of all interest revenues and interest expenses is made on a gross basis with the exception of interest revenues and interest expenses related to derivative instruments which are reported on a net basis. Interest revenues and interest expenses are calculated and recognized based on the effective interest rate method or based on a method that results in interest revenue or interest expense that is a reasonable approximation of using the effectiveinterest method as basis for the calculation.

The State-supported system (“S-system”). SEK administers, against compensa-tion, the Swedish state’s export credit support system, and the state’s tied aid credit program (the “S-system”). Pursuant to agreements between SEK and the state, the state reimburses all interest differentials, financing costs and net foreign exchange losses under the S-system while any credits or borrowings remain outstanding. These settlements are every three months in arrears. For Balance Sheets, all amounts related to the S-system are included in the rel-evant amounts shown for the Consolidated Group and the Parent Company. Assets and liabilities related to the administration of the S-system are assets and liabilities, respectively, of SEK. SEK’s net compensation from administrat-ing the “S-system” is recognized as interest revenues in the income statement.

(ii) Net fee and commission incomeNet fee and commission income are presented as commissions earned or commissions incurred. The recognition of commission income depends of on the purpose for which the fee is received. Fees are either recognized as revenue when service are provided or amortized over the period of a specific business transaction. Commissions incurred are transaction based and recog-nized in the period when the services are received.

(iii) Net result of financial transactionsNet results of financial transactions includes realized gains and losses related to all financial instruments and unrealized gains and losses related to all financial instruments carried at fair value in the balance sheet except for such financial instruments when the fair value changes are recorded directly in equity. Gains and losses comprises mainly gains and losses related currency exchange effects, interest rate changes and changes in the fair value of financial instruments related to changes in creditworthiness of the counterpart of the financial contract. The item also includes market value changes attributable to hedged risk in fair value hedges.

(d) Foreign currency transactionsMonetary assets and liabilities in foreign currencies have been translated to the functional currency (Swedish kronor) at the year-end exchange rates. Transactions in foreign currencies are translated to Swedish kronor at the cur-rent exchange rate as of the respective day of accrual. Any changes in the cur-rency exchange rates between the relevant currencies and Swedish kronorrelated to the period between the day of accrual and the day of settlement are reported as currency exchange effects. Currency exchange effects are included as one component of net results of financial transactions.

(e) Financial instruments(i) Recognition and derecognition in the balance sheetThe recognition in and derecognition from the balance sheet is based on trade date for securities bought as well as securities issued and derivatives. All other financial instruments is recognized and derecognized on settlement date. The difference between the carrying amount of a financial liability (or part of a financial liability) extinguished or transferred to another party and the consid-eration paid is recognized in profit or loss as one component of net results of financial transactions.

(ii) Repurchase agreements and securities lendingRepurchase agreements are reported as financial transactions on the balance sheet. Securities lent to other parties are reported as securities on the balance sheet. Securities/assets sold subject to repurchase agreements and securi-ties/assets lent to other parties will be reported under the heading collateral provided. Cash received from the counterparts are recognized on the balance sheet as borrowing. Cash advanced to the counterparts are recognized on the balance sheet as “Credit to credit institutions” or “Credit to the public”.

(iii) OffsettingFinancial assets and liabilities are set off and the net amount presented in the balance sheet when the Group has a legal right to set off the amounts and intends either to settle on a net basis or to realize the asset and settle the liability simultaneously.

(iv) Measurement on initial recognitionWhen financial instruments are recognized initially, they are measured at fair value plus, in the case of a financial asset or financial liability not at fair value through profit and loss, transaction costs that are directly attributable to the acquisition or issue of the financial asset or financial liability.

(v) Financial instruments and subsequent measurementFinancial assets are categorized into three categories for valuation: loans and receivables, financial assets at fair value through profit and loss and financial assets available for sale.

Loans and receivables. With regard to financial assets, the category loans and receivables constitute a main category for SEK. This category is used not only for loans originated by SEK but also for securities acquired by SEK that are not quoted on an active market. However, securities quoted on an active market cannot be classified in the category loans and receivables. Therefore, a num-ber of securities, deemed to be quoted on an active market, are classified as available-for-sale securities.

Transactions in the category loans and receivables are measured at amor-tized cost, using the effective interest rate method. In the case where one or more derivatives is hedging currency and/or interest rate exposures, fair value hedge accounting is applied. Furthermore, for certain transactions classified as loans and receivables cash flow hedge accounting is applied.

SEK, in its ordinary course of business, acquires leasing objects which are classified as financial leasing objects (as opposed to operational leasing objects). When making such classification all aspects regarding the leasing contract, including third party guarantees, are taken into account. Financial leasing objects are reported as receivable from the lessee in the category loans and receivables. The lease payment is recorded as repayment of principal and interest income.

Committed undisbursed credits are reported as contingent liabilities. SEK sometimes utilizes financial guarantees utilizes to reduce counterparty expo-sures for certain assets. Such guarantees are reported at amortized cost.

Financial assets at fair value through profit and loss. There are two main sub-categories in the category financial assets at fair value through profit and loss: financial assets designated upon initial recognition at fair value through profit and loss; and assets held for trading. In the case where two or more deriva-tives are hedging both interest rate and credit exposures such transactions are sometimes classified irrevocably as financial assets at fair value through profit and loss. Furthermore, securities held for trading are included in this category. Derivatives are always classified as financial assets or liabilities at fair value through profit and loss except when they are subject to hedge accounting.

Financial assets available for sale. Assets that are classified as available-for-sale securities are carried at fair value, with changes in fair value recognized directly in equity. This category is used for securities quoted on an active market thatwould otherwise be classified in the category loans and receivables.

Financial liabilities are categorized into two categories for valuation: financial liabilities at fair value through profit and loss and other financial liabilities.

Financial liabilities at fair value through profit and loss. There are two main sub-categories in the category financial liabilities at fair value through profit and loss: financial liabilities designated upon initial recognition at fair value through profit and loss; and liabilities held for trading. Senior securities issued are irrevocably classified as financial liabilities at fair value through profit and loss in the case where the security issued contains an embedded derivative that otherwise would be bifurcated and accounted for separately. Derivatives are always clas-sified as financial assets or liabilities at fair value through profit and loss except when they are subject to hedge accounting.

Other financial liabilities. All other senior securities issued than those classified as financial liabilities at fair value through profit and loss are classified as other financial liabilities. In the category other financial liabilities transactions are measured at amortized cost, using the effective interest rate method. In the case where one or more derivatives is hedging currency, interest rate, and/or other exposures, fair value hedge accounting is applied. Subordinated debt is classified as other financial liabilities and is mainly subject to fair value hedge accounting. When applying fair value hedge accounting on perpetual subor-

NotES


dinated debt, hedging of the subordinated debt is made for the time period which corresponds to the time to maturity of the derivative.

Derivatives. In its normal course of business, SEK uses, and is a party to, dif-ferent types of derivatives for the purpose of hedging or eliminating SEK’s interest-rate, currency-exchange-rate and other exposures. Derivatives are always classified as financial assets or liabilities at fair value through profit and loss. In the cases where SEK decides to categorize a financial asset or liability at fair value through profit and loss the purpose is always to avoid the mismatch that would otherwise arise in the income statement resulting from the fact that the derivative, which economically hedge the risks in these instruments, is valued at fair value through profit and loss. Some credit default swap con-tracts are derivatives and accordingly classified as financial assets or liabilities at fair value through profit or loss, whereas others are classified as financial guarantees and therefore carried at amortized cost. When SEK classify a credit default swap as a financial guarantee SEK always own the referenced entity and the potential amount is limited to the actual loss incurred by SEK related to its holding of the referenced entity.

Embedded. Derivatives In Its normal course of business, SEK issues or acquires financial assets or liabilities that often contain embedded derivatives. In cases where financial assets or financial liabilities contain embedded derivatives it is the Company’s policy to use the fair value option at recognition of these financial assets or financial liabilities rather than separately bifurcate and fair value the embedded derivate.

Reacquired debt. SEK from time to time reacquires its debt instruments and related derivatives. The nominal value of reacquired debt is deducted from the corresponding liability on the balance sheet. No amortization of premium or discount or other components (remuneration for interest rate differentials, etc.) is made in net interest earnings. Realized gains when reacquiring own debt instruments are accounted for in the income statement as one compo-nent of net results of financial transactions.

(vi) Hedge accountingIn accordance with IAS 39 all derivatives must be measured at fair value. In order to give a true and fair view of its active and extensive risk manage-ment operation, SEK finds it necessary to use the possibilities given in IAS 39 to account for economic hedging activities. With regards to accounting for economic hedges according to IAS 39, one of the two main alternatives avail-able to SEK is to apply hedge accounting. With regard to hedging of financial exposures in financial transactions either fair value hedge accounting or cash flow hedge accounting can be applied. Fair value hedge accounting has been applied on transactions where a derivative is hedging a fixed interest rate risk arising from a hedged asset or liability. The same derivative or another deriva-tive can also be hedging foreign exchange risk. When applying fair value hedge accounting the amortized cost value of the underlying hedged item will be remeasured to reflect the change in fair value attributable to the exposures that have been hedged. The other alternative (besides hedge accounting) is to designate fixed interest rate assets and liabilities which are hedged by deriva-tives irrevocably at initial recognition as instruments at fair value through profit and loss. One main difference between those two alternatives is that the latter includes valuing of the hedged item to its full fair value, while when applying fair value hedge accounting the underlying asset or liability which is hedged is valued at fair value through profit and loss only with regard to the components which the derivative is hedging. In some instances, cash flow hedge account-ing has been applicable in SEK’s accounting. When applying cash flow hedge accounting, both hedged and hedging items are measured at amortized costs through profit and loss while fair value changes in the derivative are measured directly in equity until the hedged cash-flow is recognized in the income state-ment, when the change in fair value changes of the hedging instrument is rec-ognized in the income statement well.

In the hedging relationship of a financial asset or liability, SEK designates the risk being hedged as one of the following:1. The risk of changes in the overall fair value of the entire hedged item2. The risk of changes in its fair value attributable to changes in the designated

benchmark rate (referred to as interest rate risk)3. The risk of changes in its fair value attributable to changes in the related

foreign currency exchange rates (referred to as foreign exchange risk)4. The risk of changes in its fair value attributable to changes in the obligor’s

creditworthiness and changes in the spread over the benchmark interest rate with respect to the hedged item’s credit quality at inception of the hedge (referred to as credit risk).

There are currently the following two different strategies used within SEK to hedge changes in fair value:A. Hedge of changes in fair value due to interest rates. It is SEK’s objective to

mitigate the risk of changes in fair value due to changes in interest rates, i.e., to convert a fixed interest rate in loans or investments into a variable interest rate. The hedging instrument is an interest rate swap, swapping fixed to floating interest rates.

B. Hedge of changes in fair value due to interest and foreign exchange rates. It is SEK’s objective to mitigate the risk of changes in fair value due to changes in interest and foreign exchange rates, i.e. to convert a fixed interest rate in one currency into a variable interest rate in the functional currency. The hedging instrument is a cross currency interest rate swap, going from fixed interest rate in one currency to floating interest rate in another currency.

Both at inception of the hedge and on an ongoing basis, SEK’s hedging rela-tionships are expected to be highly effective in offsetting changes in fair values attributable to the hedged risks. When changes in the difference between fair value and amortized cost (unrealized gains or losses) are recorded in the income statement, they are reported as one component of net results of financial transactions. When changes in the difference between fair value and amortized cost (unrealized gains or losses) are recorded directly in equity, the accumulated changes are reported as changes in fair value recognized directly in equity.

(vii) Determination of fair value of financial instrumentsThe best evidence of fair value is quoted prices in an active market. If the market for a financial instrument is not active, fair value is established by using a valuation technique. The objective of using a valuation technique is to establish what the transaction price would have been on the measurement date in an arm’s length exchange motivated by normal business considerations. Valuation techniques include using recent arm’s length market transactions between knowledgeable, willing parties, if available, reference to the current fair value of another instrument that is substantially the same, discounted cashflow analysis and option pricing models. Periodically, the valuation techniques are calibrated and tested for validity using prices from any observable current market transactions in the same instruments or based on any available observ-able market data. A major part of SEK’s financial instruments are not publicly traded, and quoted market prices are not readily available.

In all asset and liability classes of financial instruments fair value is estab-lished by using internally established valuation models, extarnally established valuation models, quotations furnished by external parties and dealers in such instruments or market quotations.. However, different pricing models or assumptions or changes in relevant current information could produce differ-ent valuation results. For certain senior securities issued, classified as financial liabilities designated upon initial recognition at fair value through profit and loss, an valuation assumption has been made that the credit spread related to those instruments have been basically unchanged during the reporting periods. Such assumption is evaluated and reconsidered on a quarterly basis.

(viii) Impairment of financial assetsSEK monitors loans and receivables and other assets held for impairment as described in the Risk Report (pages 51–67). Loans on an individual loan level are identified as impaired if there is objective evidence of impairment and an impairment test indicates a loss.

Provisions for incurred impairment losses. Provisions for incurred impairment losses are made if and when SEK determines that the obligor under a credit, or another asset held, and existing guarantee or collateral will probably fail to cover SEK’s full claim. Such determinations are made for each individual credit/asset. If there is objective evidence that an impairment loss on loansand receivables has been incurred, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the financial asset’s original effective interest rate. The amount of the loss is recognized in profit and loss. If and when a decline in the fair value of an available-for-sale financial asset has been recognized directly in equity and there is objective evidence that the asset is impaired the cumula-tive loss that had been recognized directly in equity is removed from equity and recognized in profit and loss even though the financial asset has not been derecognized in the balance sheet. The company has determined, based on the consideration that all determinations are made on an individual basis for each asset, that there is no need of a general reserve concerning uncertain claims.

NotES


(f) Tangible assetsItems of property are measured at cost less accumulated depreciation and impairment losses. Costs include expenditures that are directly attributable to the acquisition of the asset. When parts of an item of property or equipment have different useful lives, they are accounted for as separate items (major components) of property and equipment. Office equipment, buildings andbuilding equipment relating to the building are depreciated on a straight-line method over an estimated useful life. Land is not depreciated. The average useful life for the building is approximately 67 years, for certain building equip-ment 10 years and for other property and equipment 5 years. The average useful life, depreciation methods and book value are evaluated and reconsid-ered on a yearly basis.

(g) Intangible assetsIntangible assets comprise the capitalized portion of investments in IT-system which includes expenses considered to relate to the intangible asset, such as consulting fees and expenses for Company personnel contributing to produc-ing such intangible asset. Intangible assets are depreciated on a straight-line method over an estimated useful life from the date the asset is available for use. The average useful life for intangible assets is approximately 5 years. The average useful life is evaluated and reconsidered on a yearly basis.

(h) Employee benefitsThe companies in the consolidated group participate in different defined benefit multiemployer plans covering all employees. All contributions paid or payable to the plans have been expensed. Defined benefit accounting should be applied also for arrangements with multiemployer plans provided sufficient information will be made available to allow the company to account for its proportionate share of the defined benefit obligations, plan assets and costs associated with the plan. Such information has been made available for some but not all of the companies in the consolidated group. If underlying assump-tions in the plan would change, future costs for the plan could change accord-ingly. In addition, the company has supplementary pension obligations to certain key employees. The benefits currently earned are covered by annuity contracts, the cost of which has been expensed. Certain pension liabilities to former employees are carried in the balance sheet at the actuarially calculated present value of the obligation.

(i) Untaxed reservesIn accordance with Swedish tax law, the parent company and some of the subsidiaries maintain certain untaxed reserves. However, no untaxed reserves are separately reported in the consolidated balance sheet, nor are revenues and expenses related to untaxed reserves separately reported in the con-solidated income statement. Instead, in the consolidated balance sheet, the untaxed reserves are broken down by (i) an after-tax portion, reported as one component of equity, and (ii) a portion representing deferred taxes, reported separately.

(j) EquityEquity in the consolidated group consists of the following items: share capital; fair value reserves; retained earnings; and net profit for the year. Fair value reserves consist of the following items: reserve for fair value changes on available-for-sale assets and reserve for fair value changes on derivatives in cash flow hedges. Retained earnings include legal reserve and after-tax portion of untaxed reserves.

(k) Income taxIncome tax on the profit or loss for the year comprises current and deferred taxes. Current tax is tax expected to be payable on taxable income for the financial year. Deferred tax includes deferred tax in the untaxed reserves of the individual group companies and deferred taxes on taxable temporary dif-ferences. Deferred taxes on taxable temporary differences are calculated with an expected tax rate of 26.3 percent at December 31, 2008, and 28.0 percent at December 31, 2007, of the taxable temporary difference. Deferred taxes are calculated on all taxable temporary differences regardless of whether the temporary difference is recognized in the income statement or recognized directly in equity. There are no material temporary differences that have not been recognized.

(l) Critical accounting policies and estimatesWhen applying the accounting policies management makes judgments and estimates that have significant effect on the amounts recognized in the financial statements. The estimates are based on past experience and assumptions that the company believes are fair and reasonable. These estimates and the judgment behind them affect the reported amounts of assets, liabilities and

off-balance sheet items, as well as income and expenses in the financial state-ments presented. Actual outcome can later, to some extent, differ from the estimates and the assumptions made. Please see below for items were critical estimates has been made. The company assesses the judgment made related to the following critical accounting policies to be of most significance:• The functional currency of the parent company• Classifications of securities as quoted on an active market• The selection of the appropriate valuation techniques when prices from

active markets are not available for derivatives and other financial instru-ments carried at fair value

• SEK is regarded as an agent with respect to the S-system• Assessment at acquisition of Venantius Furthermore, the company has identified the following key sources of estima-tion uncertainty when applying IFRS:• Provisions for probable credit losses• Estimates of fair values when quoted market prices are not available

The functional currency of the parent companySEK has determined that the Swedish krona (Skr) is its functional currency under IFRS. SEK is economically hedged regarding foreign currency exchange revaluation effects related to revaluation of balance sheet components. A major part of its assets, liabilities and related derivatives is denominated in for-eign currency. Under IFRS both the assets and the liabilities are translatedat closing exchange rates and the differences between historical book value and current value are reflected as foreign exchange effects in revenues and expenses, where they largely offset each other. This reflects the economic substance of SEK’s policy of holding assets financed by liabilities denominated in, or hedged into, the same currency.

Classifications of securities as quoted on an active marketWhen classifying securities as loans and receivables the Company is making judgment on whether these securities are quoted on an active market based on a number of pre-established factors. SEK has established an operational definition of when a transaction should be regarded as quoted on an active market. An instrument is regarded as quoted on an active market by SEK if there are sufficient numbers of parties offering bid and/or ask prices. All other transactions are regarded as not quoted on an active market. In the case of uncertainty, additional qualitative criteria are taken into consideration in accor-dance with a predefined format.

If a larger number of securities were deemed to be quoted on an active market, these securities would be classified as assets available for sale and the after-tax changes in fair value for these securities would affect equity. It is, however, essentially impossible to predict the quantitative impact of any such changes because of the lack of homogeneity of our portfolio of non-quoted securities; the impact would very much depend on which types of securities were so classified, and any process we developed for identifying such types would be inherently speculative.

The selection of the appropriate valuation techniques when prices from active markets are not available for derivatives and other financial instruments carried at fair valueWhen reporting the amounts of its assets and derivatives, and its revenues and expenses, assumptions and estimates must be made in assessing the fair value of financial instruments and derivatives, especially where unquoted or illiquid securities or other debt instruments are involved. SEK makes judg-ments regarding what the most appropriate valuation technique is for the different financial instruments held by the group. If the conditions underlying these assumptions and estimates were to change, the amounts reported could be different. When financial instruments are carried at fair value, fair value is calculated with the use of market quotations, pricing models, valua-tions established by external parties and discounted cash flows. A major part of SEK’s financial instruments are not publicly traded, and quoted market prices are not readily available. Different pricing models or assumptions could produce different valuation results. Furthermore, the estimated fair value of a financial instrument may, under certain market conditions, differ significantly from the amount that could be realized if the security were sold immediately. Derivative instruments are carried at fair value, and fair value is calculated based upon internally established valuations, external valuation models, quota-tions furnished by external parties or dealers in such instruments or market quotations. However, different pricing models or assumptions could produce different valuation results. If the assumptions underlying those internal models were to change it could result in a material change in the fair value of those assets or liabilities.

NotES


If, for example, the assumption regarding the yield of (interest-bearing fixed asset or liability) were changed so as to be 0.10 percent higher or lower than the yield actually used in the calculation, this would affect operating profit for the fiscal year ending December 31, 2008 by approximately Skr 10–30 million and equity, at such date, by approximately Skr 10–50 million.

Please see more information regarding used valuation techniques in note 11.

SEK is regarded as an agent with respect to the S-systemSEK has assessed the S-system to be an assignment where SEK acts as an agent on behalf of the Swedish state rather than being the principal in the individual transactions. This assessment has been made based on a number of indicators such as: (i) SEK does not in substance, even though in format, have risk and reward of ownership; (ii) SEK does not have discretion in establishing prices; and (iii) SEK receives compensation in the form of a fixed commission. SEK has consequently presented the operations of the S-system in the income statement as the amount of net commission received, rather than the grossamounts collected in accordance with the agreement with the Swedish state. If SEK would be regarded as a principal with respect to the S-system, all rev-enues and expenses in the S-system would be revenues and expenses of SEK. However, the net effect on SEK’s operating profit would be unchanged.

Assessments at acquisition of Venantius At acquisition of Venantius it was assessed that common control existed from the owner, the Swedish state, over the acquired and the acquiring company. Furthermore, it was assessed that the purchase price method should be used for the transaction and that the acquisition cost should be determined based upon a valuation of the shares in the acquired company.

Provisions for probable credit lossesProvisions for probable credit losses are made if and when SEK determines that the obligor under a credit or another asset held, and existing guarantees and collaterals, will probably fail to cover SEK’s full claim. If the judgment underlying this determination were to change it could result in a material change in provisions for probable credit losses.

Credit or impairment losses are recognized as the difference between the carrying value of a loan and the discounted value of our best estimate of future cash repayments. These estimates takes into account a number of fac-tors related to the obligor. The actual amounts of future cash flows and the dates they are received may differ from these estimates and consequently actual losses incurred may differ from those recognized in the financial state-ments. If, for example, the actual amount of total future cash flow were 10 percent higher or lower than the estimate, this would affect operating profit for the financial year ending December 31, 2008 by Skr 50–60 million and equity by Skr 30–40 million at that date.

Estimates of fair value when quoted market prices are not availableIf a transaction is classified at fair value through profit and loss it includes valuing the instrument to its full fair value, including the impact of the credit spread. When quoted market prices are not available for such instruments certain assumptions must be made about the credit spread included in these valuations. If these assumptions were to change it could result in a material change in the fair value of these instruments.

If the assumption with relation to the valuation of assets classified at fair value through profit and loss were changed such that the average credit spread applied to such assets were 0.10 percent higher or lower than the spread actually used in the calculation, this would affect operating profit for the fis-cal year ending December 31, 2008 by approximately Skr 40–60 million and equity, at such date, by approximately Skr 30–50 million.

If the assumption with relation to the valuation of liabilities classified at fair value through profit and loss were changed such that the average credit spread applied to such liabilities were 0.10 percent higher or lower than the spread actually used in the calculation, this would affect operating profit for the fiscal year ending December 31, 2008 by approximately Skr 400–700 million and equity, at such date, by approximately Skr 300–500 million. These sensitivity analyses show possible effects on fair value from changes in assumptions about credit spreads. However, they can also be viewed as an estimate of potential risk for changed fair values related to a change in market pricing of credit risk for the issuer of the asset or liability.

SEK issues debt instruments in many financial markets. A large portion of these are hybrid instruments with embedded derivates. SEK’s policy is to hedge the risks in these instruments using swaps with corresponding struc-tures in order to obtain effective economic hedges. These hybrid debt instru-ments are classified as financial liabilities measured at fair value. As there are

no market quotes for this group of transactions, valuation models, valuations established by external parties or quotations furnished by dealers in such instruments are used to calculate fair value. Models used are the same for a hybrid liability and the structured swap hedging it, except for adjustments due to counterparty or own credit risk. Thus, with the exception of effects from changes in counterparty and SEK’s own credit risk valuation, fair value changes in a hybrid liability are always matched by corresponding changes in the fair value of the swap that is hedging that liability. Although SEK’s credit rating has not changed during the year, the development on financial markets has to some extent affected the level at which SEK’s debt is issued. This change, which is different in different markets, has been included in the calculation of fair value for these liabilities. The models used include both directly and observable and implied market parameters.


Valuation of derivatives without observable market pricesA large part of SEK’s portfolio of senior securities and related derivatives are in the form of structured products where the fair value of certain embedded derivatives (even though not bifurcated) sometimes require sophisticated models for valuing these instruments at fair value. If these assumptions were to change it could result in a material change in the fair value of these since SEK only enters into market matched hedge relationships (economic or accounting hedge) the only potential material effect on profit and loss or equity would result if there were changes in the credit spreads.

SEK uses swap agreements (primarily) to hedge risk exposure in financial assets and liabilities. SEK enters into the swap agreements only under ISDA master agreements and all swap contracts are with financial institutions as counterparties. Counterparty risks are managed by using a Credit Support Annex or other agreement where the credit exposure Is mitigated on at least a monthly basis. Swaps are measured at Fair Value by using the market quoted rates where available. If market quotes are not available valuation models are used. For counterparties where SEK has a positive swap portfolio value, SEK uses a model to adjust the net exposure fair value for changes in the counter-party’s credit quality. The models used include both directly observable and implied market parameters.


(m) Parent companyThe financial statement for the parent company, AB Svensk Exportkredit (publ) has been prepared in accordance with Swedish legislation, the require-ments in accordance with the Swedish Annual Accounts Act for Credit Institutions and Securities Companies (1995:1559) (ÅRKL), the recommenda-tion RFR 2.1 Accounting for Legal Entities, issued by the Swedish Financial Reporting Board (RFR) as well as the accounting regulations of the Swedish Financial Supervisory Authority (FFFS 2006:16), which means that IFRS stan-dards have been applied as far as possible within the framework of ÅRKL and the accounting regulations of the Swedish Financial Supervisory Authority. ÅRKL includes among other things limitations because of regulations on a required connection between accounting and tax regulations in the parent company.

The differences in the applied policies of the parent company to the con-solidated financial statements are the following:

(i) Shares in subsidiariesInvestments in subsidiaries are measured at cost. Dividends from investments in subsidiaries are recognized as other operating income in the income state-ment if they are of an immaterial amount otherwise as a separate line item.

(ii) Income taxesIn accordance with Swedish tax law, the parent company and some of the subsidiaries maintain certain untaxed reserves. Untaxed reserves are disclosed in the balance sheet of the parent company and changes in untaxed reserves are disclosed in the income statement of the parent company.

(iii) Group contributionsGroup contributions given to subsidiaries are reported directly to equity if they are made for tax purpose only. In other cases group contributions given, taking into account their tax effect, is recognized as investments in shares in subsidiaries unless impaired.

(iv) EquityEquity in the parent company consists of the following items: share capital; legal reserve; fair value reserves; retained earnings; and net profit for the year. Fair value reserves consist of the following items: reserve for fair value changes

NotES


Commissions earned in the Consolidated Group by geographic market is approximately 30 percent (60) to Sweden, 10 percent (30) to Europe except Sweden and 60 percent (10) to countries outside of Europe.

Commissions incurred in the Consolidated Group by geographic market is approximately 0 percent (40) to Sweden and 10 percent (60) to Europe except Sweden and approximately 90 procent (0) to countries outside of Europe.

Commissions earned from financial assets and liabilities not measured at fair value through profit and loss amounts, for the Consolidated Group to Skr 1.3 million (0.7), and for the Parent Company to Skr 1.3 million (0.7).

Commissions incurred from financial assets and liabilities not measured at fair value through profit and loss amounts, for the Consolidated Group to Skr 0.2 million (0.2), and for the Parent Company to Skr 0.2 million (0.2).

Note 2. Net interest revenues

2008 2007

Skr mnConsolidated

GroupParent

CompanyConsolidated

GroupParent

CompanyInterest revenues were related to:Credits to credit institutions 1,702.9 1,702.9 940.5 940.5Credits to the public 1,490.1 1,490.1 1,492.7 1,492.7Interest-bearing securities 9,435.0 9,435.0 8,408.0 8,408.0Other items 336.1 333.7 205.6 208.1Total interest revenues 12,964.1 12,961.7 11,046.8 11,049.3Interest expenses –11,420.8 –11,421.2 –10,213.7 –10,214.2Net interest revenues 1,543.3 1,540.5 833.1 835.1

Interest revenues were related to:Financial assets available for sale 391.7 391.7 511.2 511.3Financial assets at fair value through profit and loss 1,175.8 1,175.5 1,137.9 1,138.3Loans and receivables 11,396.6 11,394.5 9,397.7 9,399.7Total interest revenues 12,964.1 12,961.7 11,046.8 11,049.3

Interest expenses were related to:Financial liabilities at fair value through profit and loss –5,085.3 –5,085.2 –3,871.9 –3,871.8Financial guarantees –107.7 –107.7 –94.0 –94.0Other financial liabilities –6,227.8 –6,228.3 –6,247.8 –6,248.4Total interest expenses –11,420.8 –11,421.2 –10,213.7 –10,214.2

Net interest revenues 1,543.3 1,540.5 833.1 835.1

In interest revenues Skr 22.4 million (29.8) represents remuneration from the S-system (see Note 24).

Interest revenues in the Consolidated Group by geographic market is approximately 29 percent (35) from Sweden and 71 percent (65) from other countries.

Note 3. commissions earned and commissions incurred

2008 2007

Skr mn

Consolidated Group

Parent Company

Consolidated Group

Parent Company

Commissions earned were related to: Financial consultant commissions 19.1 6.5 19.0 3.6Capital market commissions 14.3 0.0 11.9 0.0Other commissions earned 1.3 1.3 0.7 0.7Total commission earned 34.7 7.8 31.6 4.3

Commissions incurred were related to:Risk capital guarantee from shareholder –3.6 –3.6 –3.6 –3.6Financial consultant commissions –1.8 –0.0 –1.5 –0.0Other commissions incurred –16.3 –14.9 –14.0 –14.0Total commissions incurred –21.7 –18.5 –19.1 –17.6

on available-for-sale assets and reserve for fair value changes on derivatives in cash flow hedges.

(n) New standards and interpretations not yet adoptedIASB permits early adoption of amendments to IAS 27” Consolidated and Separate Financial Statements”, IFRS 3R” Business Combinations”, IAS 1” Presentation of Financial Statements”, IAS 32” Financial Instruments: Presentation” IAS 39” Financial Instruments: Recognition and Measurement” and the new standard IFRS 8, Operating Segments. These amendments are

applicable from January 1, 2009, with the exception of IFRS 3, parts of IAS 27 and IAS 39 that are applicable from financial years commencing after July 1, 2009. It is voluntary to apply the amendments for the financial year 2008, and SEK has chosen not to implement in advance any of these amendments in 2008. The company is currently evaluating whether the adoption of the amendments will have a material impact on the financial reporting, with the exception that certain transactions affecting equity will be presented in a sepa-rate statement, total comprehensive income statement.

NotES


Note 4. Net result of financial transactions

2008 2007

Skr mnConsolidated

GroupParent

CompanyConsolidated

GroupParent

CompanyNet results of financial transactions were related to: Realized and unrealized results related to held-for-trading securities (1) –35.9 –35.9 –38.4 –38.4Currency exchange effects (2) 140.4 140.5 –0.7 –0.7Total net results of financial transactions before results of repurchased debt, etc., and certain fair value changes 104.5 104.6 –39.1 –39.1

Realized results of repurchased debt, etc. 87.3 87.3 41.5 41.5Total net results of financial transactions after results of repurchased debt, etc., but before certain fair value changes 191.8 191.9 2.4 2.4

Changes in fair value related to financial assets, financial liabilities and related derivatives, excluding securities in trading portfolio –648.7 –648.7 –38.0 –38.0Total net results of financial transactions –456.9 –456.8 –35.6 –35.6

(1) Reclassification has been made of earlier accounted at fair value in held-for-trading securities to the categories loans and receivables. The results from the held-for-trading securities are included in core earnings.

(2) As the parent company in Lehman Brothers group, Lehman Brothers Holdings Inc., September 15, 2008 applied for bankruptcy protection, SEK replaced most of the outstanding derivative contracts the company had entered into with Lehman Brothers entities. In connection with replacing such a derivative contract, a currency position in Australian dollars arose vis-à-vis American dollars at the end of September, and the position was not closed until December. The currency position has caused a realized currency exchange profit during the fourth quarter amounting to Skr 104.7 million.

2008 2007

Changes in fair value related to financial assets, financial liabilities and related derivatives, except securities in trading portfolio, for categories of financial instruments:

Consolidated Group

Parent Company

Consolidated Group

Parent Company

Financial assets or liabilities at fair value through profit or loss 241.3 241.3 4,858.2 4,858.2Financial assets available for sale (3) 133.3 133.3 –127.5 –127.5Loans and receivables (3) 1,594.5 1,594.5 –141.4 –141.4Other financial liabilities –2,617.8 –2,617.8 –4,627.3 –4,627.3Ineffectiveness of cash flow hedges that have been reported in the profit and loss 0.0 0.0 0.0 0.0Total –648.7 –648.7 –38.0 –38.0

of whichtotal amount of the change in fair value estimated using valuation technique based on assumptions that are not supported by prices from observable current market transactions in the same instrument recognized in profit or loss during the period

–782.0

–782.0 89.5 89.5

Realized results of repurchased debt, etc, for categories of financial instrumentsFinancial assets or liabilities at fair value through profit or loss 79.9 79.9 29.9 29.9Available for sale –11.0 –11.0 0.1 0.1Financial guarantees 2.1 2.1 8.8 8.8Other financial liabilities 16.3 16.3 2.7 2.7Total 87.3 87.3 41.5 41.5

(3) Changes in fair value of financial assets available for sale and loans and receivables have been accounted for through profit and loss when such asset is subject to fair value hedging in terms of changes in fair value related to the hedged risk. See Note 11 for information on the portion of those assets that are subject to fair value hedging.

NotES


Note 5. Administrative expenses

2008 2007

Skr mnConsolidated

GroupParent

CompanyConsolidated

GroupParent

CompanyAdministrative expenses were related to:Personnel expensesSalaries and remuneration to the Board of Directors and the President –9.6 –5.3 –8.0 –5.1Salaries and remuneration to other employees –125.7 –114.6 –111.5 –102.7Pensions (1) –36.6 –30.7 –29.4 –26.8Social insurance –42.7 –38.3 –36.7 –32.8Other personnel expenses –13.9 –12.3 –9.3 –8.7Total personnel expenses –228.5 –201.2 –194.9 –176.1

Other administrative expensesThe company’s real estate and premises (2) –10.4 –14.3 –9.3 –13.0Other expenses –101.4 –103.7 –78.4 –76.4Total other administrative expenses –111.8 –118.0 –87.7 –89.4

Total administrative expenses –340.3 –319.2 –282.6 –265.5

(1) Of which Skr 2.6 million (2.3) relates to the President and of which Skr 1.9 million (1.6) is in excess of what is tax-deductible. Skr 4.6 million (4.4) pertains to other key officers included in senior management of which Skr 2.1 million (2.0) is in excess of what is tax-deductible.

(2) SEK is a party in agreements in which it rents additional office space in Stockholm, Helsinki and Singapore.

None of these agreements represent obligations for SEK that are material or long-term.

2008 2007

Average number of employees Total Of which women Total Of which womenParent Company 162 70 139 63Subsidiaries 21 8 21 6Total 183 78 160 69

Number of employees at year endParent Company 178 79 154 71Subsidiaries 31 14 23 6Total 209 93 177 77

Number of employees abroad amounted to 6(5), salaries amounted to Skr 5.3 million (4.2) and total personnel expenses amounted to Skr 6.4 million (5.1)

2008 2007

Women in the Board of Directors and Group Management, %Board of Directors 44 44Group Management 33 33

Absence due to illness, %Parent CompanyBreakdown of total absence due to illness by age:–29 years 1.2 0.730–49 years 2.3 2.450 years– 2.5 1.5Total absence due to illness for women and men:Women 4.1 3.5Men 0.8 0.8

Total absence due to illness for all employees 2.3 2.0The proportion of long-term absence due to illness, 60 days or more 0.0 0.7

NotES


Note 5. Administrative expenses (continued)

Remuneration and other benefits to Board and Executive CommitteeSkr mn Fee

Fixed salary and

other benefits

Pension fees Total 2008

Total 2007, excluding

pension fees

Chairman of the Board of Directors:Ulf Berg 0.2 0.2 0.2Vice Chairman of the Board of Directors:Christina Liffner 0.2 0.2 0.1Other members of the Board of Directors:Karin Apelman 0.1 0.1 0.1Pirkko Juntti 0.1 0.1 0.1Helena Levander 0.1 0.1 0.1Bo Netz 0.1 0.1 0.1Harald Sandberg 0.1 0.1 0.1Risto Silander 0.1 0.1 0.1Jan Roxendal 0.1 0.1 0.1Executive CommitteePeter Yngwe, President and CEO (1) 4.2 2.6 6.8 4.0Jane Lundgren Ericsson, President-AB SEK Securities (2) 1.4 0.4 1.8 1.5Sirpa Rusanen, Executive Director-Human Resources (2) 1.1 0.3 1.4 1.2Måns Höglund, Executive Director-Corporate & Structured Finance (2) 3.0 2.1 5.1 4.7Per Åkerlind, Executive Director-Capital Markets (2) 2.8 1.1 3.9 4.4Sven-Olof Söderlund, Executive Director-Strategic Analysis & Planning (2) 2.1 0.7 2.8 2.4Total 1.1 14.6 7.2 22.9 19.3

(1) Of the total remuneration to the President, Skr 4.2 million (4.0) is qualifying income for pension purposes. The President´s retirement age is 60 years. Between the ages of 60 and 65 the pension is equal to 75 percent of final salary. From age 65 the Swedish Banks’ Occupational Pension (BTP) plan is fol-lowed, with a supplement for income exceeding 30 income base amounts. From that point a pension amounting to 32,5 percent of salary is paid. The agree-ment also inludes additional health insurance and survivors’ pension. The pension commitments are covered by continuous premium payments to a chosen insurance company. The pension agreement was signed in 1997. The benefits are unassailable, i.e. they are not subject to conditions concerning future employment. In the event of the President’s employment being terminated by the company the President shall receive a salary of two years, pursuant to the agreement, and the period of notice for the employee is 6 months. In such event, however, pay from any new position of employment shall be deducted.

(2) The combined total of these people’s remuneration amounted to Skr 10.4 million (14.3), of which Skr 0 million (4.2) consisted of variable compensation. According to a decision made by the Board in March 2009 variable remuneration for 2008 has been removed for senior executives. Of the remuneration to senior executives , Skr 10.1 million (9.8) is qualifying income for pension purposes.

The retirement age for senior executives is 65. The retirement age for two senior executives who were employed before 2003 is 60. The company follows the BTP scheme, with the exception of two senior executives who have older employment agreements and who are covered by a personalized occupational pension agreement. These two senior executives each have an extra retirement benefit. These consist of benefit-based insurance comprising the payment of a pension premium for that part of salary between 30 and 70 income base amounts. The pension commitments are covered by continuous premium payments to a chosen insurance company. The benefits are unassailable, i.e. not subject to conditions concerning future employment. For three senior executives, in the event of their employment being terminated by the company, they shall receive a salary for two years, pursuant to old agreements, and the period of notice for these employee is 6 months. In such event, however, pay from any new position of employment shall be deducted. For other senior executives the period of notice from the company is 6–12 months.

The Board of Directors annually appoints Directors to the Board of Directors’ Credit Committee, Finance Committee, Remuneration Committee and the Audit Committee. For engagement in the Credit Committee, Finance Committee and the Audit Committee, Directors received separate remuneration, in accordance to decision on Annual General Meeting, amounting to in aggregate Skr 0.3 million (0.2).

SEK has both defined contribution and defined benefit pension commitments. The main pension plan is the “ITP” plan for salaried employees in Sweden, which is guaranteed by means of insurance with the insurance company Alecta. This plan, which is largely defined as a defined benefit plan, is reported as a defined contribution plan since SEK has not had sufficient information available to report it as a defined benefit plan. In addition to this, SEK provides a number of individual defined benefit pension solutions that are based on length of employment and final or near-final remuneration.

The total pension cost for defined benefit and defined contribution obligations are shown below

Skr mn 2008 2007Service cost 2.7 2.6Interest cost 1.6 1.1Expected return on plan assets –1.3 –1.0Curtailment and settlements 0.0 0.0Amortization of actuarial (gains) and losses 0.0 0.1Net defined benefit pension cost 3.0 2.8Net defined contribution pension cost 33.6 26.6Net pension cost 36.6 29.4

The following table specifies the net value of defined benefit pension obligationsSkr mn 2008 2007Defined benefit obligations 113.9 38.3Plan assets –76.6 –24.4Net value 37.3 13.9Unrecognized past service cost, net 0.0 0.0Unrecognized actuarial gains and (losses), net –13.6 –4.0Provision for pensions, net 23.7 9.9

NotES


Note 6. tangible and intangible assets

December 31, 2008 December 31, 2007

Skr mnConsolidated

GroupParent

CompanyConsolidated

GroupParent

CompanyOffice and building equipment Acquisition cost 63.1 60.0 53.0 53.0Accumulated depreciations at year-end –43.5 –41.1 –34.3 –34.3

Of which made during the year (–6.6) (–6.6) (–6.1) (–6.1)Book value 19.6 18.9 18.7 18.7

Intangible assets Acquisition cost 116.8 106.4 110.9 106.4Accumulated depreciations at year-end –105.8 –103.7 –93.6 –92.5

Of which made during the year (–12.2) (–11.2) (–21.9) (–21.3) Book value 11.0 2.7 17.3 13.9

Buildings and land Buildings:Acquisition cost 142.8 0.7 142.8 0.7Accumulated depreciations at year-end –37.0 –0.3 –34.9 –0.3

Of which made during the year (–2.1) (0.0) (–2.1) (0.0)Book value 105.8 0.4 107.9 0.4Taxable value 41.8 0.8 41.6 0.6

Land: Acquisition cost 0.1 0.1 0.1 0.1Book value 0.1 0.1 0.1 0.1Taxable value 31.6 0.6 31.4 0.4

Buildings and land:Total acquisition cost 142.9 0.8 142.9 0.8Total accumulated depreciations at year-end –37.0 –0.3 –34.9 –0.3

Of which made during the year (–2.1) 0.0 (–2.1) (0.0)Total book value 105.9 0.5 108.0 0.5Total taxable value 73.4 1.4 73.0 1.0

Total tangible and intangible assets 136.5 22.1 144.0 33.1

The following table shows the development of defined benefit obligations

Skr mn 2008 2007Defined benefit obligation, opening balance 38.3 35.4Service cost 2.7 2.6Interest cost 1.6 1.1Benefits paid –1.3 –1.2Curtailments and settlement 0.0 0.0Received liabilities* 64.0 0.0Actuarial (gains) and losses 8.6 0.4Defined benefit obligation, closing balance 113.9 38.3

The following table shows the development of plan assets

Skr mn 2008 2007Fair value of plan assets, opening balance 24.4 18.8Expected return on plan assets 1.3 1.0Contributions by the employer 3.5 3.4Benefits paid 0.0 0.0Curtailments and settlement 0.0 0.0Received assets* 48.5 0.0Actuarial gains and (losses) –1.1 1.2Fair value of plan assets, closing balance 76.6 24.4

The following table shows principal actuarial assumptions used end of year

% 2008 2007Discount rate 3.0 4.2Expected return on plan assets 4.0–5.0 5.0Expected salary increase 3.0–3.5 3.5Expected inflation 2.0 2.0Expected turnover 2.0–3.0 2.0

*The acquisition of Venantius AB

Note 5. Administrative expenses (continued)

Remuneration to the auditors and related audit companies 2008 2007

Skr mn Audit fee Other fee Audit fee Other feeAudit companyErnst & Young 8.8 0.6Deloitte 2.2 0.2 1.7KPMG 2.7 2.8 6.8 0.8PricewaterhouseCoopers 0.2 4.8Riksrevisionen 0.1Total 11.7 10.4 7.1 2.5

Audit fees also includes auditing of reporting to authorities and issue prospectus.

Remuneration to the auditors may for accounting purposes be included in other items than administrative expenses.

NotES


Note 8. Untaxed reserves

Parent Company

Skr mn Dec 31, 2008 Dec 31, 2007Tax allocation reserve:Opening balance 1,273.9 1,274.2Dissolution during the year –230.2 –244.4Allocation during the year 91.5 244.1Closing balance 1,135.2 1,273.9 Of which:

2002 Tax allocation reserve – 230.22003 Tax allocation reserve 203.7 203.72004 Tax allocation reserve 208.6 208.62005 Tax allocation reserve 184.4 184.42006 Tax allocation reserve 202.9 202.92007 Tax allocation reserve 244.1 244.12008 Tax allocation reserve 91.5 –

Consolidated Group

Skr mn Dec 31, 2008 Dec 31, 2007Balance sheet:Opening balance included in equity 918.9 918.3Change due to lower tax rate 19.3 –Net change during the year –99.2 0.6Closing balance included in equity 839.0 918.9

Opening balance deferred tax liabilities 357.3 357.1Change due to lower tax rate –19.3 –Net change during the year –38.7 0.2Closing balance deferred tax liabilities 299.3 357.3

Total opening balance included in deferred tax liabilities and equity

1,276.2

1,275.4

Total net change during the year –137.9 0.8Total closing balance 1,138.3 1,276.2

In the financial statements of the Consolidated Group, the untaxed reserves of the Group companies are allocated 73,7 percent to equity and 26,3 percent to deferred taxes (related to untaxed reserves), included as deferred tax liabili-ties in the balance sheet. Changes in the amounts reported as deferred taxes are included in taxes in the income statement.

Note 9. taxes

2008 2007

Skr mnConsolidated

GroupParent

CompanyConsolidated

GroupParent

CompanyCurrent tax –141.2 –142.5 –238.2 –237.7Deferred tax:Deferred tax, temporary differences 80.6 41.7 87.1 87.6Effect on changes in tax rate 19.3 –0.1Total, deferred tax 99.9 41.6 87.1 87.6Total income tax accounted for in the Income Statement –41.3 –100.9 –151.1 –150.1

Income tax accounted for in the report “Statement of Recognized Income and Expenses”Current tax 14.6 31.8Deferred tax –91.3 9.9Total –76.7 41.7

Reconciliation of effective tax rateThe Swedish corporate tax rate, % 28.0 28.0 28.0 28.0Profit before taxes 185.2 324.0 497.0 496.6National tax based on profit before taxes (28%) –51.9 –90.7 –139.2 –139.0Tax effects of:Non-deductable expenses –2.2 –2.2 –2.5 –2.5Imputed interest on tax allocation reserve –10.7 –10.7 –9.1 –9.1Effect on changes in tax rate 19.3Other 4.2 2.7 –0.3 0.5Total tax –41.3 –100.9 –151.1 –150.1Effective tax expense in % –22.3 –31.1 –30.4 –30.2

From 2009, the Swedish corporate tax rate was reduced from 28.0 percent to 26.3 percent.

Note 7. recovery and impairment

January–December, 2008 January–December, 2007

Recovery of impaired receivable 4.7 –Total recovery 4.7 –

Write-down of impaired financial assets (1, 2) –561.8 –Reversal of previous write-downs 5.4 –Loan losses –0.6 –Total write-down –557.0 –

(1) Of which an impairment has been made with Skr 389 million (–) of an exposure against Glitnir Bank. SEK’s exposure to Icelandic banks consists of an exposure to Glitnir Bank amounting to the equivalent of approximately Skr 517 million (before impairment). No part of this exposure is denominated in Icelandic currency. At the date of this report there is a lack of information with regard to how the government of Iceland will act with regard to the lenders to Icelandic banks and with regard to the economic position of Glitnir Bank. Due to this lack of information and consequent uncertainty, an impairment charge has been recorded in an amount equal to 75 percent of the outstanding claim, approximately Skr 389 million.

(2) Of which impairment has been made with Skr 135 million (–) regarding a CDO. SEK has two assets in form of CDO’s (first-priority-tranches) with end-exposure to the U.S. market. The rating of one these has been downgraded very severely during the year. The asset has a book value before impairment of Skr 385 million. Based on information presently known, SEK makes the assessment that the asset will not generate enough cash flow to cover the Company’s claim. Consequently, SEK has determined to write-down the value of the asset with Skr 135 million.

NotES


Note 10. credits and liquiditySEK considers that credits in the form of interest-bearing securities are a part of SEK’s total credits. On the other hand, deposits with banks and states, nostro and repos are not a part of total credits, although they are included in the items Credits to Credit Institutions and Credits to the Public. Thus, SEK’s total credits and liquidity are calculated as follows:


Skr mnConsolidated

GroupParent

CompanyConsolidated

GroupParent

CompanyCredits: Credits in the form of interest-bearing securities 63,609.3 63,609.3 45,983.7 45,983.7Credits to credit institutions 48,399.6 46,519.1 24,812.6 24,808.5Credits to the public 70,440.2 69,906.5 48,702.0 48,702.0Less:Deposits, nostro and repos –23,771.1 –21,890.6 –10,211.5 –10,207.4Total credits 158,678.0 158,144.3 109,286.8 109,286.8

Liquidity:Treasuries/Government bonds 1,494.7 1,494.7 1,857.9 1,857.9Other interest-bearing securities except credits 136,551.4 136,551.4 147,849.3 147,849.3Deposits, nostro and repos 23,771.1 21,890.6 10,211.5 10,207.4Total liquidity 161,817.2 159,936.7 159,918.7 159,914.6

of which– issued by public authorities 6,703.2 6,703.2 4,856.3 4,856.3– quoted on an exchange 30,764.2 30,764.2 43,252.5 43,252.5

Regarding recovery and write-down see Note 7.

Interest-bearing securities not carried at fair value and that exceed or fall short of the amount contractually required to be paid at maturity are reported with the excess/shortfall amount:


Skr mnConsolidated

GroupParent

CompanyConsolidated

GroupParent

CompanySum of amounts exceeding nominal 35.3 35.3 29.1 29.1Sum of amounts falling below nominal –108.5 –108.5 –100.1 –100.1

SEK, in its ordinary course of business, acquires leasing objects which are classified as financial leasing objects (as opposed to operational leasing objects).When making such classification all aspects regarding the leasing contract, including third party guarantees, should be taken into account. The acquisition price of the leasing objects amounts to Skr 183.4 million (416.1), and the book value of at year-end amounted to Skr 187.6 million (170.3).

2008 2007

Skr mnConsolidated

GroupParent

CompanyConsolidated

GroupParent

CompanyDeferred tax assets concerning:Loss carry forwards 11.7Temporary differences financial instruments, cashflow hedges 33.7 33.7Other temporary differences 2.1 3.6 2.8 4.5Total deferred tax assets 13.8 3.6 36.5 38.2

Deferred tax liabilities concerning:Untaxed reserves 299.2 357.3Temporary differences, real estate 30.2 30.2Temporary differences, financial instruments– Cash flow hedges 57.7 57.7– Other valuation differences 42.6 42.6Total deferred tax liabilities 387.1 57.7 430.1 42.6

Net, deferred tax liabilities 373.3 54.1 393.6 4.4

No deductible deficiency in addition to what is accounted for in the Balance sheet.

Change in deferred taxes December 31, 2008 December 31, 2007

Skr mnConsolidated

GroupParent

CompanyConsolidated

GroupParent

Company

Opening balance –393.6 –4.4 –490.6 –101.9

Change in Income Statement 99.9 41.6 87.1 87.6

Change in equity –91.3 –91.3 9.9 9.9

Acquisition of Venantius AB 11.7

Total –373.3 –54.1 –393.6 –4.4

Note 9. taxes (continued)

NotES


Note 11. classification of financial assets and liabilities

Financial assets by accounting category: Consolidated Group/December 31, 2008

Total Financial assets at fair value through profit and loss

Derivatives used for hedge

accounting

Available for sale(3,4)

Loans and receivables(5)

Held for trading Desig. upon initial recogni-

tion (FVO)(6)

Skr mn

Trading portfolio

(1,2)

Derivatives used for eco nomic

hedges (7)

Treasuries/government bonds 1,494.7 1,494.7Other interest-bearing securities, excluding credits 136,551.4 7,757.8 128,793.6Credits in the form of interest-bearing securities 63,609.3 3,432.1 60,177.2Credits to credit institutions 48,399.6 48,399.6Credits to the public 70,440.2 70,440.2Derivatives 38,929.1 27,705.7 11,223.4Total financial assets 359,424.3 0.0 27,705.7 11,190.0 11,223.4 0.0 309,305.2

(1) Reclassification has been made of earlier accounted at fair value in held-for-trading securities to the category loans and receivables. Reclassification occurred as of October 1, 2008 with retroactive effect until July 1, 2008. The reclassification has affected the result by avoiding negative earnings effect of Skr 27.8 million. For the financial year 2007 the profit has been negatively affected by changes in fair value in the trading portfolio amounting to 39.1 million. For the period January 1 to June 30 2008 has been negatively affected by changes in fair value in the trading portfolio amounting to 36.2 million.

December 31, 2008 July 1, 2008

Reclassified financial assets:

Nominal value

Book value

Fair value

Book value

Fair value

Other interest-bearing securities except credits 7,501.3 7,486.5 7,342.1 7,351.9 7,351.9

(2) The weighted effective rate for these assets amounts to 3.9 percent.(3) Reclassification has been made of assets earlier accounted as Available-for-Sale to the category loans- and receivables. Reclassification occurred as of

October 1, 2008. The reclassification has affected value changes direct to equity by avoiding negative effect to equity of Skr 321.1 million. For the financial year 2007 the equity has been negatively affected by changes in fair value in these assets amounting to 89.3 million. For the period January 1 to September 30 2008 the equity has been negatively affected by changes in fair value in these assets amounting to 84.2 million.

December 31, 2008 October 1, 2008

Reclassified financial assets:

Nominal value

Book value

Fair value

Book value

Fair value

Other interest-bearing securities except credits 8,232.9 8,238.3 7,873.3 7,231.5 7,231.5Credits in the form of interest-bearing securities 4,756.9 4,755.1 4,539.2 4,116.2 4,116.2

12,989.8 12,993.4 12,412.5 11,347.7 11,347.7

(4) The weighted effective rate for these assets amounts to 5.3 percent.(5) Of loans and receivables approximately 11 percent are subject to fair value hedge accounting and 1.5 percent are subject to cash flow hedge accounting.(6) The amount of cumulative change in the fair value attributable to changes in the credit risk was Skr –1,126.3 million. The amount of change during the

period was Skr –914.9 million.(7) Derivatives used for economic hedges, accounted for as held-for-trading under IAS 39.

Financial liabilities by accounting category: Consolidated Group/December 1, 2008

Total Financial liabilities at fair value through profit and loss


accounting

Other financial liabilities(8)

Held for trading Desig. upon initial recogni-tion (FVO)(9,10)

Skr mn

Trading portfolio

Derivatives used for eco nomic

hedges(11)

Borrowing from credit institutions 3,310.0 3,310.0Borrowing from the public 185.7 185.7Senior securities issued 305,971.8 156,221.9 149,749.9Derivatives 39,414.6 35,152.4 4,262.2Subordinated securities issued 3,323.5 3,323.5Total financial liabilities 352,205.6 0.0 35,152.4 156,221.9 4,262.2 156,569.1

(8) Of other financial liabilities, approximately 71 percent are subject to fair value hedge accounting.(9) The amount of change during the period and cumulative change in the fair value attributable to changes in the credit risk were Skr 114.6 million which rep-

resents a decrease of the liabilities booked value.(10) The difference between nominal and carrying amount is Skr –35,999.5 million. Nominal amount is Skr 192,221.4 million.(11) Derivatives used for economic hedges, accounted for as held-for-trading under IAS 39.

NotES


During 2008, in fair value hedges gains on hedging instruments amounts to Skr 755.7 million and losses on hedged items attributable to the hedged risk amounts to Skr 591.3 million. During 2007, in fair value hedges gains on hedging instruments amounted to Skr 4,745.3 million. Losses on hedged items attributable to the hedged risk in 2007 amounted to Skr 4,873.5 million.

The amount of total assets as of December 31, 2008, Skr 370.0 billion, was approximately Skr 37.6 billion higher than it would have been if the currency exchange rates as of December 31, 2007, had been unchanged. During the twelve-month period repayments of long-term debt, including foreign exchange effects, have been made with approximately Skr 71.5 billion, and net increase of own debt repurchased amounted to approximately Skr 3.4 billion.

Note 11. classification of financial assets and liabilities (continued)

Financial assets by accounting category: Consolidated Group/December 31, 2007



accounting

Available for sale(12)

Loans and receivables(13)

Held for trading Desig. upon initial recognition

(FVO)(14)

Skr mn

Trading portfolio(15)

Derivatives used for eco-

nomic hedges(16)

Treasuries/government bonds 1,857.9 1,430.4 427.5Other interest-bearing securities, excluding credits 147,849.3 13,485.6 8,814.2 8,038.3 117,511.2Credits in the form of interest-bearing securities 45,983.7 3,006.2 2,727.5 40,250.0Credits to credit institutions 24,812.6 24,812.6Credits to the public 48,702.0 48,702.0Derivatives 20,326.5 16.9 11,631.1 8,678.5Total financial assets 289,532.0 13,502.5 11,631.1 13,250.8 8,678.5 10,765.8 231,703.3

(12) Of assets available for sale, approximately 26 percent are subject to fair value hedge accounting.(13) Of loans and receivables, approximately 10 percent are subject to fair value hedge accounting and 2 percent are subject to cash flow hedge accounting.(14) The amount of cumulative change in the fair value attributable to changes in the credit risk amounts to Skr –211.4 million. The amount of change

during the period amounts to Skr –169.0 million.(15) Derivatives in trading portfolio used for economic hedges within the portfolio.(16) Derivatives used for economic hedges, accounted for as held-for-trading under IAS 39.

Financial liabilities by accounting category: Consolidated Group/December 31, 2007



accounting

Other financial liabilities(17)

Held for trading Desig. upon initial recognition

(FVO)(18,19)

Skr mn

Trading portfolio(20)

Derivatives used for eco-

nomic hedges(21)

Borrowing from credit institutions 2,064.1 2,064.1Borrowing from the public 42.7 42.7Senior securities issued 267,345.6 118,502.9 148,842.7Derivatives 13,224.8 11.5 12,135.2 1,078.1Subordinated securities issued 2,837.0 2,837.0Total financial liabilities 285,514.2 11.5 12,135.2 118,502.9 1,078.1 153,786.5

(17) Of other financial liabilities, approximately 71 percent are subject to fair value hedge accounting.(18) The amount of change during the period and cumulative change in the fair value attributable to changes in the credit risk amounts to Skr 0.0 million.(19) The difference between nominal and carrying amount is Skr –6,208.8 million. Nominal amount is Skr 124,711.7 million.(20) Derivatives in trading portfolio used for economic hedges within the portfolio.(21) Derivatives used for economic hedges, accounted for as held-for-trading under IAS 39.

Financial assets and liabilities at fair value by valuation method: December 31, 2008

Book value

Fair value

Quota pricesValuation model observable data

Valuation model partly observable data

Treasuries/government bonds 1,494.7 22 % 0 % 22 % 0 %Other interest-bearing securities except credits 136,551.4 14 % 5 % 9 % 0 %Credits in the form of interest-bearing securities 63,609.3 19 % 4 % 15 % 0 %Credits to credit institutions 48,399.6 8 % 0 % 8 % 0 %Credits to the public 70,440.2 15 % 0 % 15 % 0 %Derivatives 38,929.1 100 % 2 % 27 % 71 %Total financial assets 359,424.3Borrowing from credit institutions 3,310.0 0 % 0 % 0 % 0 %Borrowing from the public 185.7 0 % 0 % 0 % 0 %Senior securities issued 305,971.8 86 % 0 % 0 % 86 %Derivatives 39,414.6 100 % 0 % 9 % 91 %Subordinated securities issued 3,323.5 84 % 0 % 84 % 0 %Total financial liabilities 352,205.6

In assessing financial assets and liabilities SEK applies generally accepted valuation methods. For certain transactions there are no observable data during the matu-rity of the transaction. SEK has not made this assessment on level of transation therefore some transactions in the category Partly Observable Data has been assessed on the basis of Observable Data.

NotES


Note 12. derivatives

Consolidated Group and Parent CompanyDerivative instruments by categories: December 31, 2008 December 31, 2007

Skr mnAssets

Fair valueLiabilities Fair value

Nominal amounts

Assets Fair value

Liabilities Fair value

Nominal amounts

Currency-related contracts 15,580.5 11,902.5 300,674.7 5,847.2 5,309.3 238,221.5Interest rate-related contracts 19,831.6 8,515.9 202,557.2 9,607.5 3,089.5 211,850.3Equity-related contracts 2,568.0 17,158.5 77,505.1 4,574.6 4,026.9 45,901.3Contracts rel. to commodities, credit risk, etc. 949.0 1,837.7 37,697.5 297.2 799.1 36,807.7Total derivatives 38,929.1 39,414.6 618,434.5 20,326.5 13,224.8 532,780.7

Derivatives used for economic hedges,accounted for as held-for-trading under IAS39Currency-related contracts 12,324.8 9,962.5 271,964.7 4,036.6 4,992.5 213,811.1Interest rate-related contracts 11,863.9 6,193.7 86,196.0 2,722.7 2,316.7 90,073.9Equity-related contracts 2,568.0 17,158.5 77,505.1 4,574.6 4,026.9 45,901.3Contracts rel. to commodities, credit risk, etc. 949.0 1,837.7 37,697.5 297.2 799.1 36,807.7Total derivatives 27,705.7 35,152.4 473,363.3 11,631.1 12,135.2 386,594.0

Derivatives in trading portfolio,used for economic hedges within the portfolioCurrency-related contracts 0.0 0.0 0.0 0.0 0.0 0.0Interest rate-related contracts 0.0 0.0 0.0 16.9 11.5 974.2Equity-related contracts 0.0 0.0 0.0 0.0 0.0 0.0Contracts rel. to commodities, credit risk, etc. 0.0 0.0 0.0 0.0 0.0 0.0Total derivatives 0.0 0.0 0.0 16.9 11.5 974.2

Derivatives used for hedge accountingCurrency-related contracts 3,255.7 1,940.0 28,710.0 1,810.6 316.8 24,410.3Interest rate-related contracts 7,967.7 2,322.2 116,361.2 6,867.9 761.3 120,802.2Equity-related contracts 0.0 0.0 0.0 0.0 0.0 0.0Contracts rel. to commodities, credit risk, etc. 0.0 0.0 0.0 0.0 0.0 0.0Total derivatives 11,223.4 4,262.2 145,071.2 8,678.5 1,078.1 145,212.5

In accordance with SEK’s policies with regard to counterparty, interest rate, currency exchange, and other exposures, SEK uses, and is a party to, dif ferent kinds of derivative instruments, mostly various interest rate-related and cur-rency exchange-related contracts (swaps, etc.). These contracts are carried at fair value in the balance sheet on a contract-by-contract basis.

SEK uses swap agreements (primarily) to hedge risk exposure inherent in financial assets and liabilities. SEK enters into swap agreements only under ISDA master agreements and all swap contracts are with financial institutions as counterparties. Counterparty risks are managed by using a Credit Support Annex where the credit exposure is mitigated on at least a monthly basis. Swaps are measured at Fair Value by using market quoted rates where avail-able. If market quotes are not available valuation models are used. For coun-terparties where SEK has a positive swap portfolio value, SEK uses a model to adjust the net exposure fair value for changes in the counterparty’s credit quality. The models used include both directly observable and implied market parameters.

SEK issues debt instruments in many financial markets. A large portion of these are hybrid instruments with embedded derivatives. SEK’s policy is to hedge the risks in these instruments using swaps with corresponding structures in order to obtain effective economic hedges. These hybrid debt instruments are classified as financial liabilities measured at fair value. As there are no market quotes for this group of transactions, valuation models are used to calculate fair value. Models used are the same for a hybrid liability and the

structured swap hedging it, except for adjustments due to counterparty or own credit risk. Thus, with the exception of effects from changes in counter-party and SEK’s own credit risk valuation, fair value changes in a hybrid liability are always matched by corresponding changes in the fair value of the swap that is hedging that liability. Although SEK’s credit rating has not changed during the year, the development on financial markets has to some extent affected the level at which SEK’s debt is issued. This change, which is different in differ-ent markets, has been included in the calculation of fair value for these liabili-ties. The models used include both directly observable and implied market parameters.

The nominal amounts of derivative instruments do not reflect real expo-sures. In the case where a collateral agreement has been negotiated with the counterpart, the threshold amount under the collateral agreement represents real exposures. In the case where no collateral agreement has been negotiated with the counterpart, the positive fair value represents the real exposure. In almost all cases SEK has negotiated collateral agreements. See table Exposures for amounts of risk exposures related to derivatives, etc.

Some Credit Default Swap contracts are derivatives and accordingly classi-fied as financial assets or liabilities at fair value through profit or loss, whereas others are classified as financial guarantees and therefore carried at amortized cost. As of December 31, 2008 the nominal amount of such financial guaran-tee contracts were Skr 20,743 mn.

NotES


Note 13. past-due credits

In accordance with the Swedish Financial Supervisory Authority’s regulations, the Company reports credits with a principal orinterest that is more than 90 days past-due as past-due credits.


Past-due and doubtful credits at year-end: Consolidated Group

Parent Company

Consolidated Group

Parent Company

Past-due credits (A):Aggregate amount of principal and interest past-due 0.2 0.0 5.6 5.6– of which covered by adequate guarantees 0.2 0.0 5.6 5.6Principal amount not past-due on such credits 4.0 0.0 23.1 23.1– of which covered by adequate guarantees 4.0 0.0 23.1 23.1

(A) All past-due credits are covered by adequate guarantees. And therefore not impaired.

Of aggregate amount of principal and interest past-due Skr 0.1 million (4.6) were due for payment more than 3 but less than 6 months ago, and Skr 0.0 million (1.0) were due for payment more than 6 but less than 9 months ago.

Note 15. other assets


Skr mnConsolidated

GroupParent

CompanyConsolidated

GroupParent

CompanyDue from the State –1.2 –1.2 9.3 9.3Current tax claim 43.3 41.6 0.3 –Deferred tax claim related to financial instruments 0.0 0.0 33.7 33.7Other deferred tax claim 13.8 3.6 2.8 4.5Claim on subsidiary n.a 90.4 n.a 86.9Debt for which value has not yet been received 4,200.5 4,200.5 2,098.0 2,098.0Other 85.3 62.5 124.7 124.8Total 4,341.7 4,397.4 2,268.8 2,357.2

Note 16. prepaid expenses and accrued revenues


Skr mnConsolidated

GroupParent

CompanyConsolidated

GroupParent

CompanyInterest revenues accrued 6,091.3 6,055.9 5,277.8 5,277.2Prepaid expenses and other accrued revenues 20.4 17.7 14.2 11.3Total 6,111.7 6,073.6 5,292.0 5,288.5

Note 14. Shares in subsidiaries


Skr mnConsolidated

GroupParent

CompanyConsolidated

GroupParent

CompanyShares in subsidiary (AB SEKTIONEN) (A) n.a. 103.5 n.a. 103.5Shares in subsidiary (AB SEK Securities) (B) n.a. 10.0 n.a. 10.0Shares in subsidiary (SEK Financial Advisors AB) (C) n.a. 5.0 n.a. 5.0Shares in subsidiary (SEK Financial Services AB) (D) n.a. 0.1 n.a. 0.1Shares in subsidiary (SEK Customer Finance AB) (E) n.a. 1.6 n.a. 1.6Shares in subsidiary (SEK Exportlånet AB) (F) n.a. 0.1 n.a. –Shares in subsidiary (Venantius AB (publ)) (G) n.a. 2,441.3 n.a. –Total 2,561.6 120.2

(A) The wholly-owned subsidiary, AB SEKTIONEN (reg.no. 556121-0252), is domiciled in Stockholm. The company’s equity at year-end 2008 amounted to Skr 1.4 million. The nominal value of the shares in AB SEKTIONEN was Skr 0.4 million.

(B) The wholly-owned subsidiary, AB SEK Securities (reg.no. 556608-8885), is domiciled in Stockholm. The company’s equity at year-end 2008 amounted to Skr 12.7 million. The nominal value of the shares in AB SEK Securities was Skr 10.0 million.

(C) The wholly-owned subsidiary, SEK Financial Advisors AB (reg.no. 556660-2420), is domiciled in Stockholm. The company’s equity at year-end 2008 amounted to Skr 4.9 million. The nominal value of the shares in SEK Financial Advisors AB was Skr 0.5 million.

(D) The wholly-owned subsidiary, SEK Financial Services AB (reg.no. 556683-3462), is domiciled in Stockholm. The company’s equity at year-end 2008 amounted to Skr 0.1 million. The nominal value of the shares in SEK Financial Services AB was Skr 0.1 million.

(E) The wholly-owned subsidiary, SEK Customer Finance AB (reg.no. 556726-7587), is domiciled in Stockholm. The company’s equity at year-end 2008 amounted to Skr 0.1 million. The nominal value of the shares in SEK Customer Finance AB was Skr 0.1 million.

(F) The wholly-owned subsidiary, SEK Exportlånet AB (reg.no. 556761-7617), is domiciled in Stockholm. The company’s equity at year-end 2008 amounted to Skr 0.1 million. The nominal value of the shares in SEK Exportlånet AB was Skr 0.1 million.

(G) The wholly-owned subsidiary, Venantius AB (publ) (reg.no. 556449-5116), is domiciled in Stockholm. The company’s equity at year-end 2008 amounted to Skr 2,448.8 million. The nominal value of the shares in Venantius AB was Skr 500.1 million.

The net result for the Subsidiaries in aggregation was Skr 5.9 million (0.7).

NotES


Note 17. Senior debt


Skr mnConsolidated

GroupParent

CompanyConsolidated

GroupParent

CompanyTotal senior borrowings, excluding senior securities issued 3,495.7 3,508.6 2,106.8 2,119.7Total senior securities issued 305,971.8 305,971.8 267,345.6 267,345.6Total senior debt outstanding 309,467.5 309,480.4 269,452.4 269,465.3

Of which denominated in:Swedish kronor 9,326.4 9,339.3 12,117.1 12,130.0Foreign currencies 300,141.1 300,141.1 257,335.3 257,335.3

The reported amount of total senior debt outstanding has been affected (reduced) by the following amounts, representing own debt repurchased –5,628.3 –5,628.3 –553.6 –553.6

Note 18. other liabilities


Skr mnConsolidated

GroupParent

CompanyConsolidated

GroupParent

CompanyLiability to subsidiaries n.a 57.1 n.a. 53.4Current tax liability 4.9 – 34.1 32.9Liabilities related to assets acquired but not yet delivered and paid for 1,035.0 1,035.0 419.0 419.0Other 508.4 505.1 1,457.8 1,455.1Total 1,548.3 1,597.2 1,910.9 1,960.4

Note 19. Accrued expenses and prepaid revenues


Skr mnConsolidated

GroupParent

CompanyConsolidated

GroupParent

CompanyInterest expenses accrued 5,329.8 5,330.1 4,647.4 4,647.8Prepaid revenues and other accrued expenses 113.6 109.5 113.9 112.4Total 5,443.4 5,439.6 4,761.3 4,760.2

Note 20. deferred tax liabilities and allocations


Skr mnConsolidated

GroupParent

CompanyConsolidated

GroupParent

CompanyDeferred tax liabilitiesDeferred tax liabilities 387.1 57.7 430.1 42.6Total 387.1 57.7 430.1 42.6

AllocationsPension liabilities 23.7 13.5 9.9 16.1Termination reserve 11.8 – – –Total 35.5 13.5 9.9 16.1

NotES


Note 22. Equity

January–December, 2008

Consolidated Group Equity Share capital (1) Reserves: Retained earnings Net profitSkr mn Hedge reserve Fair value reserveOpening balance of equity 4,610.4 990.0 –86.7 –81.8 3,788.9Net result for the year 143.9 143.9New issue 3,000.0 3,000.0Shareholders’ contribution 2,440.3 2,440.3Changes in fair value recognized directly in equity: Available-for-sale securities –109.6 –109.6 Derivatives in cash flow hedges 339.5 339.5 Tax effect –76.7 –91.3 14.6 To income statement 46.5 0.0 46.5Dividend paid –Closing balance of equity 10,394.3 3,990.0 161.5 –130.3 6,229.2 143.9

Note 21. Subordinated debt securities


Skr mnConsolidated

GroupParent

CompanyConsolidated

GroupParent

CompanyPerpetual, non-cumulative subordinated loan, foreign currency (A, B) 2,776.7 2,776.7 2,363.3 2,363.3Non-perpetual, cumulative subordinated loan, foreign currency (C) 546.8 546.8 473.7 473.7Total subordinated debt outstanding 3,323.5 3,323.5 2,837.0 2,837.0

Of which denominated in:Swedish krona – – – –Foreign currencies 3,323.5 3,323.5 2,837.0 2,837.0

(A) Nominal value USD 200 million. Interest payments quarterly in arrears at a rate of 5.40 percent per annum. Redeemable, at SEK’s option only, on or after December 27, 2008, and quarterly thereafter at 100 percent of the nominal value. Redemption requires the prior approval of the Swedish Financial Supervisory Authority. Interest payment will not be made if SEK does not have available distributable capital for making such a payment. The investor’s right to receive accrued but unpaid interest will thereafter be lost (non-cumulative). In order to prevent the issuer being obliged to enter into liquidation, the annual meeting, together with the approval of the Swedish Supervisory Authority, may decide that principal amount and any unpaid interest will be used to cover losses. However, SEK cannot thereafter pay any dividend to its shareholders before the principal amount has been reinstated as debt in full in the balance sheet, or has been redeemed with approval by the Swedish Financial Supervisory Authority and such accrued, but unpaid, interest has been paid.

(B) Nominal value USD 150 million. Interest payments on a quarterly basis in arrears at a rate of 6,375 percent per annum. Redeemable, at SEK’s option only, on or after December 27, 2008, and quarterly thereafter at 100 per-cent of the nominal value. Redemption requires the prior approval of the Swedish Financial Supervisory Authority. Interest payment will not be made if SEK does not have available distributable capital for making such a pay-ment. The investor’s right to receive accrued but unpaid interest will thereaf-ter be lost (non-cumulative). In order to prevent the issuer being obliged to enter into liquidation, the annual meeting, together with the approval of the

Swedish Supervisory Authority, may decide that principal amount and any unpaid interest will be used to cover losses. However, SEK cannot thereafter pay any dividend to its shareholders before the principal amount has been reinstated as debt in full in the balance sheet or has been redeemed with approval by the Swedish Financial Supervisory Authority and such accrued, but unpaid, interest has been paid.

(C) Nominal value EUR 50 million. Matures on June 30, 2015. Interest pay-ments on a quarterly basis in arrears at a rate of Euribor plus 0.20 percent. Redeemable, at SEK’s option, on or after June 30, 2010, and quarterly thereafter at 100 percent of the nominal value. If not redeemed, the coupon will increase to Euribor plus 1.70 percent. Redemption requires the prior approval of the Swedish Financial Supervisory Authority.

The accrued interest related to the subordinated debt, at year-end Skr 1.8 million (1.5), has been included in the item “Accrued expenses and prepaid revenues”.

The subordinated loans are subordinated to the company’s other debts, which means that payment will not be performed until other creditors have received repayment.

January–December, 2008

Parent Company Equity Share capital (1) Legal reserve Reserves: Retained earnings Net profitSkr mn Hedge reserve Fair value reserveOpening balance of equity 3,746.6 990.0 198.0 –86.7 –81.8 2,727.1Net result for the year 223.1 223.1Group contribution –6.6 –6.6New issue 3,000.0 3,000.0Shareholders’ contribution 2,440.3 2,440.3Changes in fair value recognized directly in equity: Available-for-sale securities –109.6 –109.6 Derivatives in cash flow hedges 339.5 339.5 Tax effect –76.7 –91.3 14.6 To income statement 46.5 0.0 46.5Dividend paid – –Closing balance of equity 9,603.1 3,990.0 198.0 161.5 –130.3 5,160.8 223.1

NotES


Note 22. Equity (continued)

January–December, 2007 (2)

Consolidated Group Equity Share capital (1) Reserves: Retained earnings Net profitSkr mn Hedge reserve Fair value reserveOpening balance of equity 4,371.7 990.0 –43.8 –17.5 3,443.0Net result for the year 345.9 345.9Changes in fair value recognized directly in equity: Available-for-sale securities –127.5 –127.5 Derivatives in cash flow hedges –59.6 –59.6 Tax effect 41.7 16.7 25.0 To income statement 38.2 0.0 38.2Dividend paid – –Closing balance of equity 4,610.4 990.0 –86.7 –81.8 3,443.0 345.9

January–December, 2007 (2)

Parent Company Equity Share capital (1) Legal reserve Reserves: Retained earnings Net profitSkr mn Hedge reserve Fair value reserveOpening balance of equity 3,508.8 990.0 198.0 –43.8 –17.5 2,382.1Net result for the year 346.5 346.5Group contribution –1.5 –1.5Changes in fair value recognized directly in equity: Available-for-sale securities –127.5 –127.5 Derivatives in cash flow hedges –59.6 –59.6 Tax effect 41.7 16.7 25.0 To income statement 38.2 0.0 38.2Dividend paid – –Closing balance of equity 3,746.6 990.0 198.0 –86.7 –81.8 2,380.6 346.5

(1) 2,579,394 A-shares and 1,410,606 B-shares at a quote value amount of Skr 1,000 each after a new issue. Before the new issue the number of A-shares was 640,000 and the number of B-shares was 350,000. The new share capital amounting to 3,000 million was paid to the company on December 18, 2008. On January 26, 2009 the Swedish Financial Supervisory Authority approved the change in share capital and the new number of shares. On February 4, 2009 the new issue was registered at the Swedish Companies Registration Office.

(2) Restatement has been made regard opening balance and closing balance. See Note 1.

For the Consolidated Group non-distributable capital at year-end amounted to Skr 4,188.0 million (1,188.0) and distributable capital amounted to Skr 6,206.3 million (3,422.4).

For the Parent Company non-distributable capital at year-end amounted to Skr 4,188.0 million (1,188.0) and distributable capital amounted to Skr 5,415.1 million (2,558.6).

Hedge reserve includes after-tax difference between fair value and the amortized cost recognized directly in equity related to derivatives in cash flow hedges. Fair value reserve includes after-tax difference between fair value and the amortized cost recognized directly in equity related to available-for-sale securities.After reclassification there are no available-for-sale securities outstanding as of December 31, 2008. Fair value reserves is dissoluted over the remaining life

of these reclassified assets.The Government has established a guarantee fund of callable capital, amounting to Skr 600 million in favour of SEK. SEK may call on capital under the

guarantee if SEK finds it necessary in order to be able to fulfil its obligations.

NotES


Note 23. contingent liabilities, contingent assets and commitments

Contingent liabilities and commitments are reported in connection with the balance sheet. There are no contingent liabilities outstanding. Commitments comprise committed undisbursed credits. Such committed undisbursed credits represent credit offers that have been accepted by the customer but not yet disbursed. Of total amount of committed undisbursed credits Skr 21,431.0 million (22,454.2), committed undisbursed credits under the S-system represent Skr 11,459.4 million (12,615.1), see Note 2. Such commitments sometimes include a fixed rate option, the cost of which always is reimbursed by the State in accordance with agree-ment with the State. (See Note 1 (c) and Note 24.)

Following the parent company in the Lehman Brothers group, Lehman Brothers Holdings Inc.’s request for bankruptcy protection on September 15 2008, SEK replaced most of the outstanding derivative contracts the company had entered into with three different Lehman Brothers entities. According to the terms of the contracts, SEK has prepared Calculation Statements in relation to all of these Lehman Brothers entities. The Calculation Statements were delivered to the respective counterparties in the beginning of October 2008. SEK has assessed that due to off-setting, the company will not suffer any material costs relating to bankruptcy of Lehman Brothers. The majority of the contracts SEK had with different Lehman Brothers entities served primarily to hedge SEK from market risk. Those contracts have been replaced with new contracts. In addition, SEK had entered into credit default swaps with Lehman Brothers entities that were account-ed for as financial guarantees and therefore recorded at amortized cost. The underlying counterparties covered by these credit default swaps all now have such creditworthiness as to qualify under SEK policy to be held without credit default swap coverage. As a result SEK has not replaced these credit default swaps. The Calculation Statements include claims for calculated costs related to replacement of these financial guarantees which has been accounted for as contingent assets. SEK’s claims against Lehman associated with these financial guarantees are approximately Skr 1.5 billion which has not been recognized in the balance sheet due to the requirement that contingent assets only be recognized when there is virtual certainty of collection. Given the unprecedented nature of the Lehman Brothers bankruptcy filing and the expected length of the bankruptcy process an assessment has been made that the virtual certainty of collection threshold has not yet been met. SEK will continue to assess this situation and await the outcome of Lehman Brothers bankruptcy proceedings.

Note 24. S-system

Pursuant to an agreement between SEK and the Swedish state, SEK has specific conditions for granting credits in the S-system, see Note 1(c). The remuneration from the S-system to SEK in accordance with the agreement, Skr 22.4 million (29.8), is accounted for as interest revenues in the income statements for SEK exclusive of the S-system, see Note 2. The assets and liabilities of the S-system are included in SEK’s balance sheets.

Income statements for the S-system Skr mn 2008 2007Interest revenues 500.5 459.7Interest expenses –409.5 –473.3Net interest revenues 91.0 –13.6Remuneration to SEK –22.4 –29.8Foreign exchange effects 0.3 0.5Reimbursement from (to) the State –68.9 42.9Net 0.0 0.0

Balance sheets for the S-system (included in SEK’s balance sheets) Skr mn December 31, 2008 December 31, 2007Credits 10,105.7 8,831.3Derivatives 18.2 17.3Other assets 248.1 233.8Total assets 10,372.0 9,082.4

Liabilities 9,081.5 9,023.6Derivatives 1,290.5 58.8Equity – –Total liabilities and equity 10,372.0 9,082.4

CommitmentsCommitted undisbursed credits (Note 23) 11,459.4 12,615.1

Note 25. Segment reporting

In accordance with the definition in IAS 14, SEK has the following business segments: granting of credits; advisory services; and capital market products. Advisory services and capital market products are similar with respect to risks and returns. Segment revenues other than granting of credits represent together less than 4 percent of the total revenues, segment assets other than granting of credits together represent less than 1 percent of total assets, and segment liabilities other than granting of credits together represent less than 1 percent of total liabilities and, therefore, segment revenues are not disclosed separately.

Granting of credits includes the following products and services: lending; export finance; and structured finance projects. Advisory services include the follow-ing products and services: independent consulting services. Capital market products include the following products and services: capital market products to third-party investors.

Geographical segments are broken down by the following geographical areas: Europe; Asia; Latin America; North America; and Oceania. Segment revenues other than Europe represent less than 10 percent of the total revenues for each segment by geographical region and are therefore not separately disclosed.

NotES


Note 26. certain assets, liabilities and commitments (3, 4)

Breakdown by maturity, 2008 Consolidated Group Skr mn

Book value

Maturity ≤1 month

1 month <Maturity

≤ 3 months

3 months <Maturity≤ 1 year

1 year <Maturity≤ 5 years

Maturity>5 years

Total credits outstanding 118,839.8 23,993.0 1,962.8 4,136.1 18,994.5 69,753.4Interest-bearing securities 201,655.4 5,652.0 7,585.7 34,607.5 124,408.0 29,402.2Total assets (5) 320,495.2 29,645.0 9,548.5 38,743.6 143,402.5 99,155.5

Borrowing from credit institutions 3,310.0 3,041.1 0.0 268.9 0.0 0.0Borrowing from the public 185.7 30.6 155.1 0.0 0.0 0.0Senior securities issued 305,971.8 22,444.4 24,686.7 39,356.3 114,617.6 104,866.8Subordinated securities issued (1, 2) 3,323.5 0.0 0.0 0.0 0.0 3,323.5Total liabilities (5) 312,791.0 25,516.1 24,841.8 39,625.2 114,617.6 108,190.3

Commercial commitments 21,431.0 0.1 146.7 589.9 5,150.0 15,544.3

Breakdown by interest-term maturity, 2008Total credits outstanding 118,839.8 40,181.9 35,206.2 18,947.0 6,071.7 18,432.9Interest-bearing securities 201,655.4 68,760.0 100,857.3 8,114.6 17,430.2 6,493.4Total assets 320,495.2 108,941.9 136,063.5 27,061.6 23,501.9 24,926.3

Borrowing from credit institutions 3,310.0 3,041.2 77.5 191.3 0.0 0.0Borrowing from the public 185.7 30.6 155.1 0.0 0.0 0.0Senior securities issued 305,971.8 27,592.2 36,302.9 43,328.7 108,935.3 89,812.7Subordinated securities issued (1, 2) 3,323.5 0.0 546.8 0.0 0.0 2,776.7Total liabilities 312,791.0 30,664.0 37,082.3 43,520.0 108,935.3 92,589.4


Breakdown by maturity, 2007 Consolidated Group Skr mn

Book value

Maturity ≤1 month

1 month <Maturity

≤ 3 months

3 months <Maturity≤ 1 year

1 year <Maturity≤5 years

Maturity>5 years

Total credits outstanding 73,514.6 9,113.2 2,547.3 2,440.0 14,802.1 44,612.0Interest-bearing securities 195,690.9 11,571.1 11,404.8 31,287.4 110,934.6 30,493.0Total assets 269,205.5 20,684.3 13,952.1 33,727.4 125,736.7 75,105.0

Borrowing from credit institutions 2,064.1 1,895.9 0.0 0.0 168.2 0.0Borrowing from the public 42.7 3.3 39.4 0.0 0.0 0.0Senior securities issued 267,345.6 32,580.5 18,442.6 33,074.1 107,475.1 75,773.3Subordinated securities issued (1, 2) 2,837.0 0.0 0.0 0.0 0.0 2,837.0Total liabilities 272,289.4 34,479.7 18,482.0 33,074.1 107,643.3 78,610.3


Breakdown by interest-term maturity, 2007 (6)

Total credits outstanding 73,514.6 22,464.8 31,578.3 19,115.1 214.8 141.6Interest-bearing securities 195,690.9 78,947.7 98,622.2 17,419.4 701.6 0.0Total assets 269,205.5 101,412.5 130,200.5 36,534.5 916.4 141.6

Borrowing from credit institutions 2,064.1 1,895.9 0.0 0.0 168.2 0.0Borrowing from the public 42.7 3.3 39.4 0.0 0.0 0.0Senior securities issued 267,345.6 53,038.8 93,747.4 115,249.8 759.3 4,550.3Subordinated securities issued (1, 2) 2,837.0 0.0 2,837.0 0.0 0.0 0.0Total liabilities 272,289.4 54,938.0 96,623.8 115,249.8 927.5 4,550.3


(1) Maturity, 2015, subject to redemption at SEK’s option only, beginning 2010 with approval of the Swedish Financial Supervisory Authority (nominal EUR 50 million).

(2) Perpetual maturity subject to redemption at SEK’s option only, beginning in 2008 with the approval of Swedish Financial Supervisory Authority (nominal USD 350 million).

(3) Excluding derivative contracts due to related hedge positions. Current fair value of the derivates can be seen in Note 12. Cash payment obligations associated with such derivative financial instruments designated in a hedge relationships are arranged to correspond in terms of timing and inversely in terms of amount with cash flows under settlement of hedged assets and liabilities.

(4) All figures in the tables above represent book values.(5) The share of total assets and total liabilities that expire after 10 years or more are 10 percent respectively 22 percent.(6) Differences in maturity in interest term in assets and liabilities matches with the assistance of derivative contracts.

For balance sheet items other than financial instruments, information about expected recovery time should be disclosed. Items other than financial instruments with an approximate expected recovery time within less than 12 months: other assets; prepaid expenses and accrued revenues, other liabilities; and accrued expenses and prepaid revenues. All other balance sheet items, other than financial instruments, have an approximate expected recovery time of 12 months or more. With regard to liabilities with maturity between one and three months, the Company has the intention to refinance these through bor-rowing on the financial markets.

NotES


Note 27. financial assets and liabilities at fair value

December 31, 2008

Maximum exposure to Credit Risk

Consolidated Group Skr mn

Book value

Fair value

Surplus (+)/

Deficit (–)

Financial assets at fair value through

profit and loss

Assets available for sale

Loans and receivables

Cash in hand 0.0 0.0 0.0 0.0 0.0 0.0Treasuries/government bonds 1,494.7 1,498.1 3.4 0.0 1,483.7Other interest-bearing securities, excluding credits 136,551.4 132,119.4 –4,432.0 8,371.7 0.0 128,793.0Credits in the form of interest-bearing securities 63,609.3 62,386.4 –1,222.9 3,519.0 0.0 60,005.8Credits to credit institutions 48,399.6 47,309.0 –1,090.6 0.0 58,650.6Credits to the public 70,440.2 66,426.2 –4,014.0 0.0 76,926.8Derivatives 38,929.1 38,929.1 0.0 38,929.1 0.0Total financial assets 359,424.3 348,668.2 –10,756.1 50,819.7 0.0 325,859.9

Borrowing from credit institutions 3,310.0 3,310.0 0.0Borrowing from the public 185.7 185.7 0.0Senior securities issued 305,971.8 303,311.1 –2,660.7Derivatives 39,414.6 39,414.6 0.0Subordinated securities issued 3,323.5 755.2 –2,568.3Total financial liabilities 352,205.6 346,976.6 –5,229.0

Financial assets and financial liabilities in the balance sheet are generally mea-sured at full fair value or at a value that represents fair value for the compo-nents hedged in a hedging relationship. However, loans and receivables and other financial liabilities which are neither subject to hedge accounting nor car-ried at fair value using fair value option, are measured at amortized cost.

In the process of estimating or deriving fair values for items not measured at fair value in the balance sheet, certain simplifying assumptions have been made. In those cases where quoted market values for the relevant items are available, such market values have been used. However, for a large portion of the items there are no such quoted market values. In such cases, the fair value has been estimated or derived. The process of deriving such values naturally involves an uncertainty. Accordingly, the fair values reported do to a large extent repre-sent values that have been estimated by the Company.

The book value of derivative instruments, which here represents maximum exposure to credit risk in accordance with certain regulations, does not reflect real exposures. In the case where a collateral agreement has been negotiatedwith the counterparty, the threshold amount under the collateral agreement represents real exposures. Where no collateral agreement has been negotiated with the counterparty, the positive fair value represents the real exposure. In almost all cases SEK has negotiated collateral agreements.

Maximum exposure to credit risk for Credits to Credit Institutions and Credits to the Public include undisbursed credits at year-end. For further infor-mation on credit risk protection, see the Risk Report.

December 31, 2007

Maximum exposure to Credit Risk

Consolidated Group Skr mn

Book value

Fair value

Surplus (+)/

Deficit (–)

Financial assets at fair value through

profit and loss

Assets available for sale

Loans and receivables

Cash in hand 0.0 0.0 0.0 0.0 0.0 0.0Treasuries/government bonds 1,857.9 1,889.3 31.4 1,421.0 0 435.5Other interest-bearing securities, excluding credits 147,849.3 148,131.2 281.9 22,072.4 8,287.5 117,967.4Credits in the form of interest-bearing securities 45,983.7 46,274.3 290.6 2,963.8 2,794.7 39,967.0Credits to credit institutions 24,812.6 24,802.2 –10.4 0.0 0.0 24,922.1Credits to the public 48,702.0 48,715.6 13.6 0.0 0 70,758.1Derivatives 20,326.5 20,326.5 0.0 20,326.5 0.0 0.0Total financial assets 289,532.0 290,139.1 607.1 46,783.7 11,082.2 254,050.1

Borrowing from credit institutions 2,064.1 1,986.6 –77.5Borrowing from the public 42.7 41.5 –1.2Senior securities issued 267,345.6 267,350.3 4.7Derivatives 13,224.8 13,224.8 0.0Subordinated securities issued 2,837.0 2,841.7 4.7Total financial liabilities 285,514.2 285,444.9 –69.3

NotES



CurrencyExchange

ratePortion at year-end, %

Foreign currency position at year-end

(Skr mn)Exchange

ratePortion at year-end, %

Foreign currency position at year-end

(Skr mn)

SKR 1 69.1 n.a. 1 56.3 e.t..USD 7.7525 18.1 –2,291.5 6.4675 4.4 –375.5EUR 10.9355 9.7 –1,171.1 9.4735 36.5 444.7CHF 7.3455 1.6 –204.7 5.6985 1.7 –149.3GBP 11.2475 0.7 94.4 12.905 0.5 40.4THB 0.223 0.2 –25.0 0.2155 0.0 0.0Others – 0.5 –32.1 – 0.6 –48.3

Total foreign currency position –3,630.0 –88.0

The FX-risk is limited to the accrued net income in foreign currency and is hedged regularly. In accordance with SEK’s policies for risk management, foreign currency positions related to unrealized fair value changes are not hedged. At year-end, foreign currency positions exclusive of unrealized fair value changes amounted to Skr 141,2 million (36.7)

Assets and liabilities denominated in foreign currency are included in the total amount of assets and liabilities reported by the following amounts (expressed in millions of Swedish kronor).


Skr mn Consolidated Group Parent Company Consolidated Group Parent Company

Total assets 370,014.2 370,064.8 297,236.8 297,326.9of which denominated in foreign currencies 328,977.1 329,033.9 269,033.7 269,127.0Total liabilities 359,619.9 359,326.5 292,626.4 292,306.5of which denominated in foreign currencies 327,987.3 327,715.6 269,250.0 268,951.7

Assets, liabilities and derivatives denominated in foreign currencies (i.e., currencies other than Swedish krona) have been translated to Swedish krona at the year-end exchange rates between such currencies and Swedish krona.

The relevant exchange rates for the currencies representing the largest portions of the Consolidated Group in the balance sheet reported assets and liabilities are presented in table below (expressed in Swedish kronor per unit of each foreign currency).

The portion at year-end represents portion of aggregated volumes of assets and liabilities denominated in foreign currency. Foreign currency position at year-end represents the net of all assets and liabilities in the balance sheet in each currency.

Note 28. Assets, liabilities and derivatives denominated in foreign currencies

NotES


SEK defines related parties in the Parent Company as:• Shareholder, the Swedish State• Organizations that are controlled through a common owner, the Swedish

State• Subsidiaries• Key management personnel

SEK defines related parties in the Group Company as:• Shareholder, the Swedish State• Organizations that are controlled through a common owner, the Swedish

State• Key management personnel

The Swedish State owns 100 percent of the Company’s share capital. By means of direct guarantees extended by the National Debt Office, EKN – The Swedish Export Credits Guarantee Board and by Sida, supported by the full faith and credit of Sweden, 14 percent of the Company’s outstanding loans on December 31 2008, were guaranteed by the State. SEK administers, in return for compensation, the State’s export credit support system, and the State’s tied aid credit program (the “S-system”). Pursuant to an agreement between SEK and the State, SEK is reimbursed for certain costs under the S-system. See Note 1(c).

The Government has established a guarantee fund of callable capital, amounting to Skr 600 million in favour of SEK. SEK may call on capital under the guarantee if SEK finds it necessary in order to be able to fulfill its obliga-tions. SEK pays a commercial fee for this guarantee. See note 3.

On December 18, 2008, SEK received an injection of Skr 3 billion in new capital from its owner, the Swedish State. SEK did also receive from the Swedish State all the shares of Venantius AB, as a part of the state’s program to strengthen SEK’s capacity to finance the Swedish export industry. See Note 31.

In addition on February 5, 2009 the government decided, via the Swedish National Debt Office, to provide SEK with a loan facility amounting to Skr 100 billion, an action approved by parliament. Furthermore, parliament has autho-rized the government for SEK to be granted the possibility, on commercial conditions, to buy government guarantees for its new borrowing up to Skr 450 billion. See the report of the Directors.

The Company enters into transactions in the ordinary course of business with entities that are partially or wholly-owned or controlled by the State. The Company also extends export loans (in the form of direct or pass-through loans) to entities related to the State. Transactions with such parties are con-ducted on the same terms (including interest rates and repayment schedules) as transactions with unrelated parties. The Group Company’s and the Parent Company’s transactions do not differ significantly. The Parent Company furh-termore charge subsidiary companies for collective office and administration costs. Internal transactions between the parent company and the subsidiaries amount Skr 38.9 million (36.9) for other assets, Skr 18.5 million (16.3) for other liabilities, Skr 3.0 million (2.6) for interest incomes and Skr 0.8 million (0.5) for interest expenses from the Parent Company’s point of view. For further information see also Note 1. (a) Basis of consolidation, and Note 14. Shares in subsidiaries.

Key management personnel include the following positions:• The Board of Directors• The President and CEO• Other members in the Executive Committee

For information about remuneration and other benefits to key management personnel, see Note 5. Administrative expenses.

The following table summarizes the Group Company’s transactions with its related parties:

Skr mn 2008

Shareholder, the Swedish State

Organizations that are con-trolled through a common owner, the Swedish State

Total

Assets/ Liabilities

Interest income/Interest expense

Assets/ Liabilities


Assets/ Liabilities


Treasuries/government bonds 1,495 36 1,495 36Other interest-bearing securities except credits 4,456 211 4,456 211Credits in the form of interest-bearing securities 1,859 101 1,859 101Credits to credit institutions 2,074 229 2,074 229Credits to the public 460 16 460 16Total 1,495 36 8,849 557 10,344 593Borrowing from credit institutions 0 0Borrowing from the public 186 4 186 4Senior securities issued 0 0Total 186 4 0 0 186 4

Skr mn 2007

Shareholder, the Swedish State

Organizations that are con-trolled through a common owner, the Swedish State

Total

Assets/ Liabilities


Assets/ Liabilities


Assets/ Liabilities


Treasuries/government bonds 1,858 57 1,858 57Other interest-bearing securities except credits 0 0Credits in the form of interest-bearing securities 2,238 256 2,238 256Credits to credit institutions 1,532 144 1,532 144Credits to the public Total 1,858 57 3,770 400 5,628 457Borrowing from credit institutions 0 0Borrowing from the public 43 2 43 2Senior securities issued 0 0Total 43 2 0 0 43 2

Note 29. transactions with related parties

NotES


(1) Operating profit (IFRS) i.e. profit inclusive of fair value changes according to IFRS but exclusive of effects to tax.

(2) Return on equity, i.e. operating profit, before and after taxes, respectively, in the latter case reduced by 28 percent standard tax, adjusted for 13/365-pieces of new equity amounting to Skr 5,440 million received as a capital injection on December 18, 2008, expressed as a percentage of the opening balance of equity. When calculating return on equity based on Core Earnings, excluded from the opening balance of equity are reserves related to assets which can be sold and reserves for Cash Flow Hedge Accounting.

(3) Core earnings (IFRS), i.e. profit excluding fair value changes according to IFRS and excluding effects related to tax. Fair value changes according to IFRS relate to fair value changes to financial assets except held-for-trading securities, financial liabilities and to derivatives related to these assets. (See Note 4).

(4) For previous accounting regulations (Swedish GAAP) see Note 1 in the annual report for the year 2006.

(5) Total customer financial transactions include new credits accepted, and syn-dicated customer transactions. Offers accepted refers to all credits accepted, regardless of maturities.

(6) Amounts of credits include all credits, i.e., credits granted against documen-tation in the form of interest-bearing securities, as well as credits granted against traditional documentation. SEK considers that these amounts reflect SEK’s actual real credit/lending volumes. See also Note 10 regarding credits outstanding.

Note 30. financial highlights2008 2008 2007 2006 2005 2004

Consolidated Group USD mn (11) Skr mn Skr mn Skr mn Skr mn Skr mnResults Net interest revenues (IFRS) (1) 199.1 1 543.3 833.1 793.0 n.a. n.a.Operating income (IFRS) (1) 141.8 1,099.5 810.3 667.4 n.a. n.a.Operating profit (IFRS) (1) 23.9 185.2 497.0 383.3 n.a. n.a.Net profit (after taxes) (IFRS) 18.6 143.9 345.9 270.5 n.a. n.a.Pre-tax return on equity (IFRS) (2) 3.9% 3.9% 11.4% 10.2% n.a. n.a.After-tax return on equity (IFRS) (2) 2.8% 2.8% 8.2% 7.3% n.a. n.a.

Adjusted operating profit (Core Earnings) (3) 107.6 833.9 535.0 539.0 n.a. n.a.Pre-tax return on equity (Core Earnings) (2) 17.5% 17.5% 12.8% 14.2% n.a. n.a.After-tax return on equity (Core Earnings) (2) 12.6% 12.6% 9.2% 10.2% n.a. n.a.

Net interest revenues, previous regulations (4) n.a. n.a. n.a. n.a. 759.1 801.7Operating profit, previous regulations (4) n.a. n.a. n.a. n.a. 498.1 611.8Net profit (after taxes), previous regulations (4) n.a. n.a. n.a. n.a. 346.9 439.6Pre-tax return on equity, previous regulations (4) n.a. n.a. n.a. n.a. 14.7% 20.7%After-tax return on equity, previous regulations (4) n.a. n.a. n.a. n.a. 10.6% 14.9%

Proposed dividend – – – – – –

Customer operations New customer financial transactions (5) 8,370 64,890 56,826 63,933 43,475 27,521 of which offers for new credits (accepted by borrowers) (5) 8,203 63,591 53,143 56,923 37,525 22,748Credits, outstanding and undisbursed (5) (6) 23,232 180,109 131,741 112,975 92,319 73,384

Borrowing New long-term borrowings (7) 13,391 86,136 107,970 61,278 52,343 38,803Outstanding senior debt (IFRS) 39,918 309,468 269,452 215,250 n.a. n.a.Outstanding senior debt, previous regulations (4) n.a. n.a. n.a. n.a. 188,549 141,131Outstanding subordinated debt (IFRS) 429 3,324 2,837 2,933 n.a. n.a.Outstanding subordinated debt, previous regulations (4) n.a. n.a. n.a. n.a. 3,255 2,765

Balance sheetsTotal assets (IFRS) 47,728 370,014 297,237 245,213 n.a. n.a.Total liabilities (IFRS) 46,388 359,620 292,626 240,842 n.a. n.a.Total equity (IFRS) 1,341 10,394 4,610 4,372 n.a. n.a.

Total assets, previous regulations n.a. n.a. n.a. n.a. 207,493 162,066Total liabilities, previous regulations n.a. n.a. n.a. n.a. 203,754 158,674Total equity, previous regulations n.a. n.a. n.a. n.a. 3,739 3,392

Capital

Capital adequacy ratio, including Basel I based additional requirements

15.5% (9)

15.5% (9)

8.9% (9)

n.a. (10)

n.a. (10)

n.a. (10)

Capital adequacy ratio, excluding Basel I based additional requirements

21.4% (8)

21.4% (8)

17.1% (8)

13.8% (10)

15.9% (10)

16.3% (10)

Adjusted capital ratio adequacy, excluding Basel I based additional requirements

22.3% (8)

22.3% (8)

18.5% (8)

15.0% (10)

17.3% (10)

17.9% (10)


NotES

(7) New borrowing with maturities exceeding one year.(8) Capital Adequacy Ratio, i.e. capital base expressed as a percentage of risk-

weighted claims in accordance with Pillar I under Basel II, excluding adjust-ments during the transitional period 2007–2009 regarding required minimum capital. Please see “Capital adequacy and counterparty risk exposures” in this interim report to receive a complete description of the calculation of required minimum capital during the transitional period. The adjusted capital adequacy ratio has been calculated with the inclusion in the Tier-1 capital base of guarantee capital from SEK’s shareholder amounting to Skr 600 million (although such inclusion is not regulatory-approved), expressed as a percent-age of risk-weighted claims.

(9) Capital Adequacy Ratio, i.e. capital base expressed as a percentage of risk-weighted claims in accordance with Pillar I under Basel II, calculated in accordance with 5 § in the law (2006:1372) on implementation of the law on capital adequacy and large exposures (2006:1371).

(10) Capital Adequacy Ratio, i.e. capital base expressed as a percentage of risk-weighted claims in accordance with Basel I. The adjusted capital adequacy ratio has been calculated with the inclusion in the Tier-1 capital base of guarantee capital from SEK’s shareholder, amounting to Skr 600 million (although such inclusion is not approved for regulatory purposes), expressed as a percentage of risk-weighted claims.

(11) Translated at the December 31, 2008, exchange rate of Skr 7.7525 per USD. New borrowings are translated at current exchange rates.

For information about differences between IFRS and previous regulations see Note 1. The information in this note relates to the Consolidated Group. For differences between the Consolidated Group and Parent Company, see Note 1 (m), income statements, balance sheets and related notes.

Note 30. financial highlights (continued)

Acquisition of Venantius AB (publ)Headquartered in StockholmCorporate identity number 556449-5116

In November 2008, the Swedish government proposed that AB Svensk Exportkredit’s capacity to assist the Swedish export industry with long-term funding be improved. As part of this, AB Svensk Exportkredit received all shares in Venantius AB through a shareholder’s contribution on December 18, 2008. AB Svensk Exportkredit obtained control over the operations upon the date of acquisition.

Venantius was established in 1995, according to a parliamentary decision, in order to take over loan facilities with potentially high credit risk from SBAB. The loan portfolio comprised Skr 33 billion in housing loans at the time. At the time of the acquisition, the equity in Venantius AB amounted to Skr 2.4 billion, credits to the public totalled approximately Skr 0.5 billion and liquid funds amounted to approximately Skr 1.9 billion.

AB Svensk Exportkredit and Venantius AB are controlled through a common owner, the Swedish State. AB Svensk Exportkredit has chosen to account for the contribution of Venantius AB using the purchase method of consolidation.

The value of the shares in Venantius AB received through a shareholder’s contribution and the value of assets and liabilities have been prepared by man-agement and in doing so considered in part on the basis of an independent valuation.

The amounts presented in the following tables provide information on the carrying amounts and fair value adjustments. The pre-acquisition carrying amounts were determined based on the applicable IFRS immediately before the acquisition. AB Svensk Exportkredit is in the process of reviewing the final values for the acquired company, but no material adjustments are expected. The main reason for presenting preliminary values is for the valuation of the credit portfolio.

At the time of the acquisition Venantius AB had 11 employees. Annual revenues in 2008 amounted to approximately Skr 145 million. For practical reasons, it is not possible to specify earnings according to IFRS as the company did not follow IFRS accounting rules before the acquisition. The contribution from Venantius AB since the acquisition has amounted to Skr 9.2 million. The acquisition value accounted for in AB Svensk Exportkredit, including the costs of the acquisition, is shown in the table below (in Skr million):

Shareholder’s contribution from the Swedish State 2,440.3Additional costs of the acquisition 1.0Total 2,441.3

Note 31. Acquisition of Venantius

Fair value of assets and liabilities for the acquired company, Venantius AB

2008

Skr mn

Carrying amounts in

Venantius ABAcquisition

adjustmentsRecognized

values

Intangible assets 0.0 1.3 1.3Tangible assets 0.7 0.7Credits to credit institutions 1,858.2 15.0 1,873.2Credits to the public 520.3 520.3Deferred tax assets 15.7 15.7Other assets 70.5 70.5Other liabilities and provisions –37.2 –4.2 –41.4Net identifiable assets 2,428.2 12.1 2,440.3Shareholder’s contribution from the Swedish State (1) –2,440.3Total 0.0Cash and cash equivalents acquired

558.2

Total 558.2Additional costs of the acquisition

–1.0

Net cash outflow 557.1

(1) All shares in Venantius AB have been transferred to AB Svensk Exportkredit through a shareholder’s contribution.

NotES


Note 32. post-balance sheet events

The Government has on February 5, 2009, decided that SEK should be pro-vided with a loan facility amounting to Skr 100 billion through the Swedish National Debt Office, a measure that has been approved by the Parliament.

The new share capital amounting to Skr 3,000 million was paid to the company on December 18, 2008. On January 26, 2009, the Swedish Financial Supervisory Authority approved the change in share capital and the new num-ber of shares. On February 4, 2009 the new issue has been registered at the Swedish Companies Registration Office.

SEK has as of March 8, 2009, in connection with the regulation of a claim towards Sparbanksstiftelsernas Förvaltnings AB (the Borrower), come to an arrangement with the largest creditors to the Borrower, meaning that SEK assumes the control of in total 25,520,000 shares in Swedbank AB. The shares represent 3.3 percent of the share capital and votes in Swedbank AB. The fair value of the shares at the date of this annual report is well above the book value of the original claim.

SEK’s Board of Directors has decided on March 20, 2009, to amend princi-ples for remuneration and other benefits to key officers. The decision is taken retro actively for the financial year 2008, and means that no variable remunera-tion is given to key officers.


propoSAL for thE diStriBUtioN of profitS

Proposal for the Distribution of ProfitsAll amounts are in Skr million, unless otherwise indicated.

The results of the Consolidated Group’s and the Parent Company’s operations during the year and its financial position at December 31, 2008, can be seen in the Income Statements, Balance Sheets, Statements of Recognized Income and Expenses, Statements of Cash Flows and related Notes for the Consolidated Group and the Parent Company. The following proposal regarding distribution of profits relates to the Parent Company.


Ulf Berg Christina Liffner Karin Apelman Chairman of the Board Vice Chairman of the Board Director of the Board

Pirkko Juntti Helena Levander Bo Netz Director of the Board Director of the Board Director of the Board

Jan Roxendal Harald Sandberg Risto Silander Director of the Board Director of the Board Director of the Board

Peter Yngwe President

My audit report on these annual accounts was submitted on April 30, 2009.

Jan Birgerson Authorized Public Accountant

The Board of the Directors and the President confirm that the consolidated financial statements and the parent company financial statements have been prepared in accordance with International Financial Reporting Standards, IFRS, as issued by the International Accounting Standard Board (IASB) and endorsed by the European Parliament and Council Regulation (EC) No 1606/2002 dated July 19, 2002 and generally accepted accounting principles in Sweden, respectively, and give a true and fair view of the group’s and par-ent company’s financial position and results of operations. The Report of the Directors for the group and parent company provides a true and fair overview of the group’s and parent company’s business activities, financial position and results of operations as well as the significant risks and uncertainties which the parent company and its subsidiaries are exposed to.

At the disposal of the Annual General Meeting 5,415.1

The Board of Directors and the President propose that the Annual General Meeting dispose of these funds as follows: – Dividend –– Remaining disposable funds to be carried forward 5,415.1

5,415.1


AUditorS’ rEport

Auditors’ Report To the annual general meeting of the shareholders of AB Svensk Export-kredit Corporate identity number 556084-0315.

I have audited the annual accounts, the consolidated accounts, the accounting records and the administration of the Board of Directors and the Managing Director of AB Svensk Exportkredit for the year 2008. The annual accounts and the consolidated ac-counts of the company are included in the printed version of this document on pages 51–67 (Risk Report) and 68–108. The Board of Directors and the Managing Director are responsible for these accounts and the administration of the company as well as for the application of the Annual Accounts Act of Credit Institutions and Securities Company when preparing the annual accounts and the application of international financial reporting standards IFRS as issued by International Accounting Standard Board (IASB) and also as adopted by the EU and the Annual Accounts Act of Credit Institutions and Securities Company when preparing the consoli-dated accounts. My responsibility is to express an opinion on the annual accounts, the consolidated accounts and the administra-tion based on my audit.

I conducted my audit in accordance with generally accepted auditing standards in Sweden. Those standards require that I plan and perform the audit to obtain reasonable assurance that the annual accounts and the consolidated accounts are free of mate-rial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the accounts. An audit also includes assessing the accounting principles used and their application by the Board of Directors and the Manag-ing Director and significant estimates made by the Board of Directors and the Managing Director when preparing the annual accounts and consolidated accounts as well as evaluating the overall presentation of information in the annual accounts and the consolidated accounts. As a basis for my opinion concerning

discharge from liability, I examined significant decisions, actions taken and circumstances of the company in order to be able to determine the liability, if any, to the company of any board mem-ber or the Managing Director. I also examined whether any board member or the Managing Director has, in any other way, acted in contravention of the Companies Act, the Banking and Financing Business Act, Annual Accounts Act of Credit Institutions and Se-curities Company or the Articles of Asso ciation. I believe that my audit provides a reasonable basis for my opinion set out below.

The annual accounts have been prepared in accordance with the Annual Accounts Act of Credit Institutions and Securities Company and give a true and fair view of the company’s financial position and results of operations in accordance with generally accepted accounting principles in Sweden. The consolidated accounts have been prepared in accordance with international financial reporting standards IFRS as issued by International Accounting Standard Board (IASB) and also as adopted by the EU and the Annual Accounts Act of Credit Institutions and Securities Company and give a true and fair view of the group’s financial position and results of operations. The statutory admin-istration report is consistent with the other parts of the annual accounts and the consolidated accounts.

I recommend to the annual general meeting of share holders that the income statements and balance sheets of the parent company and the group be adopted, that the profit of the parent company be dealt with in accordance with proposal in the statu-tory administration report and that the members of the Board of Directors and the Managing Director be discharged from liability for the financial year.


Jan Birgerson Authorized Public Accountant

This is a translation of the Swedish original audit opinion dated April 30, 2009.


Gri rEport

indicator indicator’s content reference

1.1 Statement from the most senior decision-maker of the organization about the relevance of sustainability to the organization and its strategy.

Page 6–9

2.1 Name of the organization. Page 80

2.2 Primary brands, products, and/or services. Page 68

2.3 Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures.

Page 80

2.4 Location of organization’s headquarters. Page 80

2.5 Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report.

Page 14, 30

2.6 Nature of ownership and legal form. Page 44, 68, 80

2.7 Markets served. Page 2–3, 68–69

2.8 Scale of the organization. Page 68–72

2.9 Significant changes during the reporting period regarding size, structure, or ownership. Page 30, 68

2.10 Awards received in the reporting period. Page 29

3.1 Reporting period. Page 30

3.2 Date of most recent previous report. Page 30

3.3 Reporting cycle. Page 30

3.4 Contact point for questions regarding the report. Page 5

3.5 Process for defining report content. Page 30

3.6 Boundary of the report. Page 30–43, 110–111

3.7 State any specific limitations on the scope or boundary of the report. Page 30, 109

3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organizations.

Page 30

3.10 Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement.

SEK is reporting in accordance with GRI for the first time.

3.11 Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report.

SEK is reporting in accordance with GRI for the first time.

3.12 Table identifying the location of the Standard Disclosures in the report. –111

4.1 Governance structure of the organization. Page 49–50

4.2 Chairperson’s position in the organization. Page 49–50

4.3 Number of members of the highest governance body that are independent and/or non-executive members.

Page 49–50

4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body.

Page 48–49

4.14 Stakeholder groups engaged by the organization. Page 33

4.15 Basis for identification and selection of stakeholders. Page 33

Listed below are those indicators that SEK reports in its annual report and sustainability report for 2008 in accordance with Global Reporting Initiative (GRI G3). Any indicators not listed below are either not relevant to our business, or we do not have the necessary tools or resources to report them.


Gri rEport

core and additional indicators indicator’s content reference

EC1 Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments.

Page 43

EC4 Significant financial assistance received from public authorities. Page 68

EN4* Indirect energy consumption by primary source. Page 38, partially reported

EN7* Initiatives to reduce indirect energy consumption and reductions achieved. Page 38, partially reported

EN8 Total water withdrawal by source. Page 38

EN28 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations.

No fines

LA1 Total workforce by employment type, employment contract, and region. Page 40, 72, 88

LA2 Total number and rate of employee turnover by age group, gender, and region. Page 40–42, 72, 88

HR1* Percentage and total number of significant investment agreements that include human rights clauses or that have undergone human rights screening.

Page 35

SO2* Percentage and total number of business units analyzed for risks related to corruption. Page 35

SO3 Percentage of employees trained in organization’s anti-corruption policies and procedures. 100 percent

SO7 Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes.

No actions have been brought.

SO8 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations.

No sanctions.

Sector-specific indicators indicator’s content reference

FS1 Policies with specific environmental and social components applied to business lines. Page 32–35

FS2 Procedures for assessing and screening environmental and social risks in business lines. Page 32–35

FS5* Interactions with clients/investees/business partners regarding environmental and social risks and opportunities.

Page 33–37

* EN4 This indicator is partially reported. We only report indirect energy that is purchased and used.

* EN7 This indicator is partially reported. We only report initiatives for reducing indirect energy use.

* HR1 SEK equates credits with investment decisions. Since 2006 our credit process has included a basic assessment of respective counterparties with regard to human rights before any credit is granted and in connection with annual updates. Since October 2008 our assessments have been made in accordance with revised working methods, according to which human rights are explicitly addressed.

* SO2 For this indicator, business units refer to SEK’s counterparties. Since 2006 SEK has included a basic assessment of the risk of corruption as part of the assessment of all counterparties within the credit process. Since October 2008 assessments have been made in accordance with revised working methods, whereby the area of corruption is addressed more systematically.

* FS5 SEK seeks to conduct a dialogue with its business partners with regard to the handling of sustainability issues in the event that there is a risk that such handling conflicts with SEK’s internal policy documents, the principles of the Global Compact, or OECD guidelines, or if there are deficiencies in a counterparty’s external communication. In the case of outstanding issues, and in the event of incidents, deficient information about specific projects or insufficient policies or written guidelines, SEK may obtain additional information from respective business partners. This may relate to information about a counterparty’s handling of incidents, environmental impact assessments (EIA) or excerpts from the company’s internal guidelines. Where necessary, SEK requires alternative measures to be taken in order to mitigate any negative social or environmental impact. Stipulations for an environmental or social assessment may also be made in order for a credit to be granted.


ASSUrANcE rEport

Assurance Report To the readers of AB Svensk Exportkredit’s 2008 Sustainability Report:

introductionI have performed a review of AB Svensk Exportkredit’s 2008 sustainability report. It is the board of directors and the executive team that are responsible for the continuous activities regarding environment, health & safety, quality, social responsibility and for the preparation and presentation of the sustainability report in accordance with applicable criteria. My responsibility is to express a conclusion on the Sustainability Report based on my review.

the scope of the limited reviewMy review has been performed in accordance with FAR SRS (the institute for the accountancy profession in Sweden) draft recom-mendation “RevR 6 Assurance of sustainability reports”. A review consists of making inquiries, primarily of persons responsible for sustainability matters and for preparing the sustainability report, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with the Standards on Auditing in Sweden RS and other gener-ally accepted auditing standards. The procedures performed in a review do not enable me to obtain an assurance that would make me aware of all significant matters that might be identified in an audit. Accordingly, I do not express an audit opinion.

The criteria used in the course of performing review proce-dures are based on applicable parts of the “Sustainability Report-ing Guidelines, G3 issued by the Global Reporting Initiative (GRI) suitable for the sustainability report, and specific measure-ment and reporting principles developed by the company. These are found on pages 110–111. I consider those criteria to be suit-able for my engagement.

My review has included the following review procedures:• An update of my knowledge and understanding for AB Svensk

Exportkredit’s organization and activities

• Assessment of suitability and application of criteria in respect to stakeholders need of information

• Assessment of the result of the company’s stakeholder dialogue • Interviews with responsible management, at group level,

subsidiary level and at selected business units with the aim to assess if the qualitative and quantitative information stated in the Sustainability Report is complete, correct and sufficient

• Share internal and external documents to assess if the informa-tion stated in the Sustainability Report is complete, correct and sufficient

• Evaluation of the design of systems and processes used to obtain, manage and validate sustainability information

• Evaluation of the model used to calculate Carbon dioxide-emission

• Analytical review of reported information• Reconciliation of financial information against company’s

Annual Report 2008• Assessment of the company’s stated application level according

to GRI:s guidelines • Overall impression of the Sustainability Report, and its format,

considering the information’s mutual correctness with appli-cable criteria

• Reconciliation of the reviewed information against the sustain-ability information in company’s Annual Report 2008

conclusionBased on my review procedures, nothing has come to my atten-tion that causes me to believe that the information in AB Svensk Exportkredit’s Sustainability Report 2008, has in all material respects, been prepared in accordance with the above stated criteria.

Stockholm, April 30, 2009Ernst & Young AB

Jan BirgersonAuthorized Public Accountant

SWEDISH EXPORT CREDIT CORPORATION, Västra Trädgårdsgatan 11B, P.O. Box16368, SE-103 27 Stockholm, Sweden.Telephone: +46 8 613 83 00. Fax: +46 8 20 38 94. E-mail: [email protected]. Swift address: SEKXSESS. www.sek.se

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