Government-owned companies 2000

1

Government-owned companies 2000

3

C O N T E N T

Table of contents

TABLES AND DIAGRAMS 4

PREFACE 5

Valuable corporations create valuable jobs 5

GOVERNMENT OWNERSHIP POLICY 6

The objective: to create value 6

Three ownership tools 7

Effective boards 7

Increased transparency 8

Core operations in sharper focus 8

Key policy issues for Government-owned companies 9

GOVERNMENT-OWNED COMPANIES IN 1999 12

Government ownership of listed corporations 26

Significant events in 1999 and early 2000 27

THE CORPORATIONS 32

Content and technical notes 33

63 companies from A-Banan to Zenit Shipping 34

DEFINITIONS 131

HISTORICAL NOTES 132

GOVERNMENT ORGANISATION FOR OWNERSHIP

ADMINISTRATION 134

COMPANY CONTACTS AT THE

GOVERNMENT OFFICES 137

KEY EXECUTIVES AND BOARD MEMBERS 138

ADDRESSES – CORPORATE UNITS 147

The English version has adjustements compared to the originalprinted Swedish version on pages 19, 61, 69 and 92.

4

T A B L E S A N D D I A G R A M S

Tables and diagramsEmployees in Government-owned companies 12

Proportions of women and men in Government-owned companies, chart 12

Regional distribution of employees in Government-owned companies, chart and table 13

Revenues and earnings in Government-owned companies 15

The Government’s billion-kronor corporations in Sweden´s Top 500 corporations 16

Foreign activities of Government-owned companies 16

Government-owned companies by sector 17

Government-owned companies by sector, according to employee headcount, chart 17

Sector division of Government-owned companies according to Morgan Stanley Capital International (MSCI), list 17

Total assets and capital ratios of Government-owned financial institutions 18

Earnings generated by Government-owned financial institutions 18

Vacancies in Government-owned real estate corporations 18

Government-owned real estate corporations: revenues and earnings 18

Value-added, Government-owned companies 19

Net investments by Government-owned companies 19

Government-owned companies, by holding 20

Government-owned companies by principal 21

Government-owned companies by principal, April 2000, list 22

Corporations owned directly by the Government Offices, key figures, April 2000 23

Level of commercial activity, April 2000 25

Listed Government-owned companies as of 31 December 1998, 1999 and 20 July 2000 26

Government ownership of listed corporations from 1999 to Q2 2000, list 26

For each corporation you will find a table with key figures for 1995–1999.

5

P R E F A C E

Valuable corporations create valuable jobs

The Government is Sweden’s biggest corporate owner,with its ownership sphere employing over 200,000 peo-ple, harbouring very substantial values and encom-passing several of the country’s largest corporations.Accordingly, the management of these enterprises is avital issue for Sweden and her economy. Thus, theGovernment bears a significant responsibility to func-tion as an active and professional owner.

This duty of active ownership implies the ownerdeclaring unequivocal objectives and guidelines forcorporations, monitoring and evaluating them. But theGovernment’s overarching objective is that its corpora-tions should create value.

Value creation is crucially significant because valu-able corporations create valuable jobs, which are secureand stimulating for employees, where the individual canfeel that he or she is exerting an influence on his or herwork. Value creation also implies the imperative of thecorporations working for the long term, forging durablecustomer relationships and building trust as reliable,competitively priced providers.

For corporations that serve specific societal interestssuch as The Swedish Motor Vehicle Inspection Companyand Swedish Alcohol Retailing Monopoly, SystembolagetAB, value creation implies the creation of values forsociety by satisfying specific objectives and through theefficient utilisation of resources.

In terms of the management of these corporations,the Government has upgraded its objectives markedly,with the increasing distinction between managementand issues such as regulatory responsibility being anelement of this process. Now, Government-owned com-panies know precisely what their owner wants fromthem, and indeed, the tools their owner wields to con-tribute to value creation.

Like the whole of Swedish business, Government-owned companies now face two major challenges, whichrepresent threats and opportunities: the deregulation offormerly regulated markets in Europe, and the new ITsociety, which further underscore the significance ofactive ownership.

Many of the Government-owned companies werepreviously active on regulated markets. Today, however,

they encounter competition from domestic and inter-national sources. Competition will accentuate further,shadowing deregulation across Europe, a trend ampli-fied by the emergence of the IT society, where theentire production and distribution chain is rationalisedby the Internet, borders effectively disappear, goods andservices are marketed globally, and threats are notmerely sourced from competitors nearby, but fromremote locations.

Obviously, such enormous realignment will have itsdifficulties: adapting to a deregulated market is farfrom easy. But to maintain competitiveness, change isimperative, and the Government’s ambition is thatGovernment-owned companies will be well positionedto benefit from this process.

Over the year, a number of major changes occurredin the Government corporate sphere: Celsius AB hasbeen divested, Telia AB has been floated on the stockmarket, the Government acquired forest products cor-poration Sveaskog AB, while technical inspection com-pany SAQ Kontroll AB and central securities depositoryVärdepapperscentralen VPC AB were divested. How-ever, the Government takes a pragmatic view of whetherit should own a particular enterprise. The Govern-ment’s intention remains to protect the interests of itsassets, i.e. to be an active, long-term owner, and to con-fer its corporations with the right prospects to createvalue. The Government functioning as an active andprofessional owner enhances Sweden’s welfare. We havea vision of Government-owned companies being thebest managed and most reputable players in their indi-vidual sectors. Indeed, we believe that everybody par-ticipating in these efforts – employees, boards, man-agers and other parties – share this vision, which maybecome a reality faster than we envisage at present.This would be good for Sweden.

Stockholm, July 2000

Göran Persson Björn Rosengrenprime minister minister of industry,

employment and communications

6

G O V E R N M E N T O W N E R S H I P P O L I C Y

Government-owned companies constitute a very sizeableproportion of Swedish business. Of the 63 Government-owned companies, 80 per cent are active on fully com-petitive markets, while 20 per cent are legislatedmonopolies or corporations with full or partial solestatus. In terms of employee headcount, over 90 percent of employees are active in competitive operations.Thus the Government’s actions as an owner affect manygroups: employees, unions, customers, suppliers, cred-itors and more, implying that this role necessitatesattentiveness and commitment.

Due to the fact that Government ownership inte-rests are so broad based and encompass such diverseactivities, the actual practice of ownership becomescomplex. Accordingly, the Government’s ownershippolicies must vary according to whether the corpora-tions themselves are wholly or partially owned, whetherthe corporation is to serve specific societal interest andwhether it is a legislated monopoly or has sole status onits market. In a number of cases, such as The SwedishNational Pharmacy Corporation AB, The SwedishMotor Vehicle Inspection Company, Swedish AlcoholRetailing Monopoly AB and gaming corporation SvenskaSpel AB, several of these conditions apply simultane-ously, rendering the practice of ownership more com-plex. A consequence, evaluations of the Government’sownership policy and how these corporations will satisfytheir objectives become more demanding.

The review of Government-owned companies for1999 described the Government Offices’ efforts to for-mulate overarching, joint guidelines and objectives formanaging Government corporations and the imple-mentation of update and evaluation routines and sys-tems. The Government established the overarchingobjective of creating value, i.e. a satisfactory return onGovernment capital, plus efficiently managed corpora-tions and in appropriate cases to fulfil expressed soci-etal interest.

The customary measure of value creation is thatvalue is created when the present value of future cashflows exceeds the corporation’s aggregate cost of bor-rowed capital and ownership capital. Accordingly,rather than owners’ overall purposes or objectives ofoperations, this concept sets shareholder value growthin the spotlight.

Generally, value is not created within corporationswith defined assignments, or that serve specific societalinterests and/or policy objectives for their sectors. Forexample, the value and effect of the aggregate output

of special real estate landlord Specialfastigheter SverigeAB and the aforementioned Swedish Alcohol RetailingMonopoly AB, are more apparent in other societal con-texts: in the former, through criminal custody premisesand in the latter, reduced costs to society. Accordingly,applying the aforementioned customary measure ofvalue creation exclusively is not appropriate for theseactivities. Instead, it is more important that these cor-porations function with the greatest possible financialefficiency and provide contracted quality. Accordingly,for these corporations, value creation relates to thesocietal benefits they achieve. If the spotlight remainsexclusively on the customary measures of value cre-ation in these corporations, their socio-economic objec-tives or values are not realised. Clearly, while these cor-porations may function so as to increase shareholdervalue, socio-economic losses could result. Accordingly,and with retained financial efficiency, these corpora-tions are focused on the designated tasks the Govern-ment assigns them, in terms of, for example, regionaldiversification or selling to special customer groups.

One reform enhancing the Government’s prospectsof functioning as an active owner was implemented inautumn 1998, when increasingly, ownership issues weredistinguished from regulatory responsibilities withinthe Government Offices, with thereby, the Govern-ment gaining its first opportunity to formulate active,professional ownership policies. As a consequence ofownership issues being concentrated onto a smallercluster of Government departments, the prospects ofimplementing consistent ownership policy and formu-lating unequivocal objectives and guidelines for corpo-rations improved. Simultaneously, the dialogue be-tween the owner and corporate managements waseased, as was verification of whether objectives areactually being satisfied.

The Swedish Government’s ownership policies havealso attracted international attention, with bodiesincluding the OECD exhibiting an interest in theSwedish Government’s ownership policies, arranging aseminar on the governance of Government corpora-tions in autumn 2000, in which Sweden will activelyparticipate.

The Government’s ownership policies will be pre-sented in what follows. This review begins with adescription of the three tools a corporate owner canutilise, followed by a review of the Government policyfrom the perspective of a number of issues of principle.

The objective: to create value

7

The board is arguably the owner’s most vital instrumentin the pursuit of value creation in Government-ownedcompanies. In their report Statens roll som ägare avbolag (1997/98: RR99, “The Government’s Role as Cor-porate Owner”), Sweden’s parliamentary auditorsoffered some criticism of board nominations in Govern-ment-owned companies.

The Government Offices are now pursuing the fol-lowing guidelines:

The Government will be active in board nominationsfor Government-owned companies, with such nomina-tions proceeding from the need for competencies inindividual corporations’ boards. The objective is thatthe board should comprise high skills levels, adapted toindividual such corporations’ operations, situations andimpending challenges. It is vital that board compositionprogresses, keeping pace with the evolution of corpo-rations and the transformation of the surroundingworld. Dialogue between the appropriate Governmentdepartment, corporate management, chairman, otherpotential owners and other affected parties should pre-cede new board appointments.

A high level of general competencies, either in ongo-ing business activities, business development, sectorskills or financial issues comprise the central criterionfor consideration for a board seat. For certain corpora-tions, such as those that serve specific societal inter-ests, other skills may also be beneficial.

Any changes to Boards will be announced in goodtime before Annual General Meetings, rationalised interms of corporations’ needs.

Chairmen have a special status in corporate boards,

and accordingly, particularly demanding standardsshould apply to these professionals in terms of exper-tise and a documented ability to lead board actions.

The number of members is important in terms ofachieving effective boards. Typically, at present, boardscomprise six to eight members. Boards should be com-posed to achieve a balance between competencies,backgrounds, ages and sexes. The objective is an evendistribution between the sexes, with one partial objec-tive being a minimum of 40 per cent of Board membersbeing women by 2003.

For the sake of visibility, and in order for the mainowner to contribute directly to corporations’ progress,it is favourable for the Government to secure directboard representation, i.e. that boards include repre-sentatives of the Government Offices. Simultaneouswith enhanced visibility, the relevant board also gainsan insight into the owner’s attitude to key issues.

For listed corporations in which the Government hasan ownership interest, board nominations should bemade in consultation with other main owners, prima-rily by means of a nomination committee. The result-ing proposals should be publicised in good time aheadof shareholders’ meetings, with committee memberspresent at such meetings to explain their choices. Inlisted companies in which the Government has a majorownership holding, at least one member of the no-mination committee should represent the Government.The nomination committees should comprise three tofive members, with the majority representing the mainowners. It is also appropriate for the nomination com-mittee to propose board remuneration.

Effective boards


Three ownership tools

Primarily, value is created by an enterprise’s board,management and employees. However, the owner alsohas three tools for contributing to value creation.Firstly, the owner’s task is to ensure that the enterprisehas a board with the skills and experience consistentwith the enterprise’s needs. Secondly, the owner must

make demands on transparency – reporting that enablescomparisons with other enterprises and external anal-ysis. Thirdly, and in consultation with the enterprise,the owner should establish the optimal capital struc-ture, thereby among other things putting a strongerfocus on core activities.

8


External corporate reporting is the foundation onwhich capital allocation is built; efficient capital allo-cation being imperative for healthy finances. Reportingis particularly important from the owners’ perspectivebecause the management and board are responsible forproviding the desired material, and for addressing own-ers’ or investors’ questions. Thus, reporting standardsalso become a key governance instrument for owners ina corporation’s ongoing monitoring and evaluation.

The Government’s ambition is that Government-owned companies – which actually, are jointly owned bythe tax-payers – should be highly transparent and sub-ject to reporting that enables comparisons with com-petitors, and the analysis of objectives and earnings.

Simultaneous with the Government’s desire for Go-

vernment-owned companies to refine their reporting,the Government Offices should also improve theirreporting.

One key element of these efforts is to make theGovernment Offices’ communications on ownershippolicy more accessible. The first step in this directionwas taken in August 1999, when the GovernmentOffices published this review of Government-ownedcompanies in a more readily accessible form aimed atthe general public, media and other interested parties.

The Government Offices’ publication of quarterlyreports – a summary of the performance of variousholdings over the most recent three-month period – isanother element of this ambition to increase trans-parency.

Increased transparency

One prevalent problem applying to Government-ownedcompanies is that they rarely consider that the owner’scapital should also be assigned a cost. Simultaneously,as a consequence of uncertainty relating to the owner’spreparedness to inject investment capital, distributingcapital to the owner has proven problematic. On occa-sion, the consequence has been over-capitalised corpo-rations.

In many cases, the result has been such corporationsdeparting from their core operations, pursuing adjacentor non-core activities. This implies a number of risks:corporations losing focus, owner objectives either notbeing satisfied or marginalised, corporations becomingincreasingly abstruse and less transparent. The corpo-ration’s risk level increases. Such enterprises face diffi-culties in creating value. Thus Government-owned com-panies should focus on their relevant core operations.

Optimising capital structures is one means of

increasing value sustainably. The cost of shareholders’equity is 3.5 – 5.0 per cent higher than loan financing.This higher cost implies that the proportion of share-holders’ equity should be reduced to the benefit of bor-rowing in order to facilitate corporations achievinghigher returns, and to utilise their capital more effi-ciently. Obviously, though, corporations’ financial posi-tions must not be compromised. With the resultingreduction in the total cost of capital (the aggregate costof shareholders’ equity and borrowing), the value of acorporation increases.

As a complement to efficient capital structures, insome cases, the Board can contribute to the corporationimplementing value-based control systems associatedwith incentive schemes. By transferring a proportion ofvalue gains to employees, the owner creates an incen-tive for the organisation to pursue precisely the sameobjective as the owner.

Core operations in sharper focus

9


A presentation of Government policy on specific issuesof principle, and how they affect Government-ownedcompanies, follows. These policy issues are an expres-sion of the Government’s intent in those spheres rele-vant to society as a whole, while the three toolsdescribed above comprise the traditional methods cor-porate owners have at their disposal. This section isconcluded with a brief description of the Government’smanagement mandate.

Government enterprises in the IT societyThe Government’s IT policy objective is that Swedenwill become the first information society for all itsmembers. The New Economy is characterised by speed,interdependence and the elimination of borders. IT isputting entirely novel goods and services at the con-sumer’s disposal, with palpable effects in all sectors ofsociety, including Government-owned companies nowbeing forced to re-evaluate extensively – and to actquickly. Many such corporations have already madesubstantial progress including Swedish State Railways,Sweden Post, utility Vattenfall and The Swedish CivilAviation Authority.

Environmental issues are a part of good businesspracticeThe Government’s policy statement stipulated thatSweden should be a leader in the realignment towardsan ecologically sustainable society – Sweden will mod-ernise ecologically. Accordingly, in a manner analogous

to the private sector, the Government should pay atten-tion to those environmental issues relevant to the cor-porations in its ownership. Environmental issues war-rant particular attention in those corporations that aremonopolists or enjoy sole market status, and whichthereby, are relatively impervious to market forces.

Active ownership is a prerequisite of a well-managedenterprise. As a consequence of the environment beingviewed increasingly as a businesslike and strategic issue,owners’ prospects of influencing enterprises’ environ-mental initiatives are becoming the subject of increas-ing attention. Well-managed corporations require well-considered environmental initiatives and a high level ofrelated competencies in order to avoid environmentalrisks and costs. Such expenses may comprise costlyremedial measures or clean-ups, or may result in a tar-nished reputation with suppliers, customers and thegeneral public. In many cases, environmental adapta-tions have become a prerequisite for profitability.

Therefore, Government enterprises should strivetowards sustainable progress, contributing to theachievement of national environmental objectives. It istheir Boards’ responsibility to establish corporate envi-ronmental policies, and to observe those demands madeof activities in terms of ecologically sustainableprogress.

All enterprises with any significant direct or indi-rect environmental impact should implement environ-mental management systems, such systems encompass-ing systematic environmental initiatives, clearly

Key policy issues for Government-owned companies

10


expressed guidelines and objectives through measuresincluding central controlling documentation, unequiv-ocal division of responsibility and routines for moni-toring and auditing progress.

Within the framework of established legislation,when tendering, Government enterprises shouldactively request products, systems or services withextensive environmental adaptation and resource con-servation. Additionally, those enterprises affectedshould encourage environmental research and thedevelopment of environmental technology.

Gender issues are centralSweden’s pursuit of equality has been successful,attracting international recognition. However, suchefforts are often something of a separate issue, with de-dicated managers and committees. The focus has beenon women’s representation and human resources policy.

Now, Sweden’s efforts in the pursuit of equality areentering a new phase, with the aim of integrating gen-der issues into day-to-day activities. Women and men’sterms, prospects and needs should be expressed clearlythrough analyses of gender consequences, with theseanalyses becoming an instrument to enhance qualityand efficiency.

Thus all elements of Government policy should beinterwoven by a gender perspective, a considerationthat obviously, also applies to the Government’s own-ership role, and to Government-owned companies.Therefore, in its efforts, the Government should ensurethat corporations analyse their activities from women’sand men’s terms and prospects. Analyses of gender con-sequences should be incorporated into operations as anelement of the development process. On all issues, thegender perspective must be included right from the ini-tial considerations.

Regarding the more limited question of distributionbetween the sexes in Government enterprise Boards,the objective is an even distribution, with one partialobjective being that by 2003, at least 40 per cent ofBoard members will be women. In 1999, this share was28 per cent, which can be compared to less than 4 percent in Sweden’s listed corporations.

By redoubling efforts to increase the proportion ofwomen on the Boards of Government corporations,simultaneous with the provision of relevant skills ineach enterprise, the Government can satisfy one of itspartial objectives for equality within a reasonable time.

Diversity pays offExperience from a wealth of corporations in Swedenand other countries reveals that diversity pays off.Increased internationalisation, and the resulting accen-tuating competition, places demands on progressivelyenhanced employee skills. To become competitive forthe long term, and to create value, corporations mustutilise all the available competencies, which Govern-ment enterprises effect through the implementation of

human resources policies. Pursuing diversity is sy-nonymous with learning to benefit from human dissi-milarities, and to generate momentum from the factthat every employee is an individual with personal com-petencies, characteristics and an individual slant. Age,educational background, ethnic origin, gender and sex-ual orientation also form part of this outlook. The over-arching objective of the pursuit of diversity is to createand implement organisational systems that allow allemployees to contribute their full potential in the pur-suit of an organisation’s objectives.

One way of pursuing an objective oriented work isto establish action plans or policies for diversity inorder to utilise the human capital in employees comingfrom different cultural, ethnical and social environ-ments. The action plans can be used as tools to build amodern, effective and flexible organisation with theability to recruit the best talents through broadeningthe base for recruitment.

Incentive programmes provide the right focusValue-based control systems are an instrument forfocusing attention on value gains through the moreefficient utilisation of capital. Such systems createenhanced internal corporate communications, onceeverybody involved is working towards consistent,clearly expressed objectives. Moreover, every individualenjoys enhanced prospects to influence their work.

Experience reveals that two conditions must be sa-tisfied for the successful implementation of value-basedcontrol systems. Firstly, the executive managementmust take the initiative, driving the implementation,which lends the system credibility and accesses allparts of the organisation involved. Secondly, the systemcan be associated with some form of incentive pro-gramme encompassing all employees.

The purpose of the incentive or bonus programmes isthat employees think, act and are rewarded in the samemanner as the owner. Experiences of implementation ofvalue-based control systems illustrate that the adoptionof value thinking is retarded, or indeed prevented, if itis not supported by a financial incentive programme.

A long-term view is vital in terms of value-basedcontrol systems and incentive programmes, and there-fore, a "bonus bank" should be created. This systemmeans that the bonus the employee creates is not paidin its entirety in the year it is earned. Thereby, thebonus paid each year comprises elements of the bonusaccumulated over several years.

Bonus banks are vital for securing the appropriatefocus. With bonus pay-outs distributed over severalyears, a long-term view becomes paramount – foreverybody active in the corporation, nurturing cus-tomer relationships and maintaining a high quality ofgoods and services so that customers remain loyal isbeneficial. Accordingly, methods such as increasingprices to optimise bonuses in a particular year areprevented because on a competitive market, cus-

11


tomers would naturally turn to an alternative supplier.Linking bonus systems to other variables the corpo-

ration chooses to emphasise, such as quality or goodservice, is another important consideration. However,parameters beyond the enterprise’s control, such asvariations in commodity prices or exchange ratesshould not be used. In November 1999, the Govern-ment formulated guidelines for incentive programmesfor employees in Government-owned companies.

Value-based control systems proceed from a pre-determined required rate of return for entire corpora-tions, itself determined by the aggregation of the cost ofborrowing and shareholders’ equity. Subsequently, allprojects are evaluated against this aggregate cost of ca-pital. In those cases where a project’s operating earnings(or, for larger, multi-year projects: discounted cashflows) cover the cost of capital, value is created – if thisis not the case, value is destroyed. Value-based controlsystems establish a consistent level of corporate valuecreation, and imply that all investments covering thecost of capital are effected. Without this consistentlevel, there is a risk that higher-yielding corporationsreject those investments that do not satisfy the requiredrate of return standard. If, instead, the requirement isexpressed in terms of the investment covering the costof capital, more investments will be made.

Redundancy pay and other remunerationThe negotiation of Managing Directors’ terms ofemployment is primarily an issue for Chairmen andother Board members. However, Boards should adopta position regarding employment terms for individu-als in corporate managements, and thereby, also takea view of whether such conditions are consistent withthe guidelines the Government established in Decem-ber 1996.

The Government guidelines stipulate that salariesand other remuneration to corporate executives arecompetitive, but that Government-owned companiesshould not pay higher salaries than corresponding pri-vate enterprises. Remuneration is payable in instancesof termination of employment by the corporation, at amaximum of 24 months’ salary. Upon recruitment or

income from other gainful employment, redundancypay should be reduced by an amount corresponding tonew income during a 24-month period.

The Government’s management mandateThe framework for the management of enterprises withGovernment ownership is regulated through what istermed a management mandate established by parlia-ment. According to Sweden’s Constitution (Finans-makten, Chapter 9, §8), state funds and other assets areat the disposal of the Government. According to §9, tothe necessary extent, parliament is to establish thefoundation for the management of, and disposal over,state property. Accordingly, the Government shouldconsult parliament regarding significant changes to cor-porate focus, dilution, capital injections, incorpora-tions and divestments and acquisitions of shares. Par-liament has granted some authorisation on the finalpoint: the Government has the authority to liquidateownership in Nordic Baltic Holding AB and SvenskaSkogsplantor AB.

Moreover, budgetary legislation stipulates that theGovernment may divest Government shares in enter-prises in which Government ownership represents lessthan half of the votes, unless parliament has resolvedotherwise. However, the Government may not reduceownership of corporations in which the state holds aminimum of half of the votes. Parliamentary decisionsare not necessary for extraordinary dividends or liqui-dations because this forms part of regular manage-ment.

The Ministry of Industry, Employment and Commu-nications is responsible for ownership policy within theGovernment Offices.

The responsibility for each corporation is within theGoverment Offices allocated to a specific ministry, dueto what the company does. This ministry is responsiblefor the day-to-day management, monitoring and evalu-ation of enterprises. In cases where such enterprisesserve specific societal interests, evaluation is alsoeffected according to whether the corporation has ful-filled its assignments, and how changes on the marketmay influence such assignments.

12

G O V E R N M E N T- O W N E D C O M P A N I E S I N 1 9 9 9

Government-owned companies in 1999

The 63 corporations in which the Government hasownership holdings vary enormously in terms of sizeand focus, from Telia with revenues of SEK 52 bn tocompanies with sales of a few million kronor. Total salesof the 63 corporations in 1999 amounted to over SEK310 bn, an increase of more than 3 per cent on 1998.Net earnings amounted to SEK 39 bn-plus, a lower out-come than 1998, when earnings net of financial itemswere SEK 42 bn. As owner, the Government receivedSEK 20.4 bn in dividends in 1999, SEK 7.5 b increaseon the previous year. The rise in dividends comes fromthe holding company Stattum, where dividends rosefrom SEK 1 b to SEK 11 b. The employee headcount was230,000, of which 180,000 were in Sweden.

This year’s review does not include the former 50 percent-owned enterprises VPC AB, SAQ Kontroll AB andthe part-owned Celsius AB, for which agreementsregarding divestments were reached in 1999.

Imego AB, a research institute at Chalmers Universityof Technology in Gothenburg and SweRoad (SwedishNational Road Consulting AB) and financial technologycorporation OM Group AB are new to this year’s review.

Unlike the reviews of previous years, the SAS Groupis included as a whole, rather than merely the Govern-ment’s part of Swedish holding company SAS Sverige AB.

The 1999 review offers far more information thanpreviously collated; some corporations had difficultiessubmitting certain information, indicated in the tablesby “n/a” (not available). Information from real estatecorporations and financial institutions has been col-lated according to definitions specific to their activi-ties. Additionally, no information regarding invest-ments is available for such enterprises.

Some tables distinguish between fully owned,majority, 50 per cent and minority-owned corpora-tions. In some tables, corporations in liquidation areillustrated separately.

The Government’s ownership holding is less than 20per cent in four of the corporations in this review – SISEco-Labelling with 10 per cent, OM Group with 7.7 percent and Sakab, in which the Government owns oneshare – which, in practice, implies no major ownershipinfluence. In spring 2000, Government ownership inNordic Baltic Holding AB was reduced from 25.9 percent to 18.1 per cent.

EmployeesSeveral Government-owned companies are amongstSweden’s largest enterprises; seven have over 10,000employees, while a further eight have over 1,000employees. Sweden Post is second only to Ericsson asan employer, while Telia and Samhall are also amongstSweden’s 10 largest business employers. In total, the 63Government-owned companies have 229,967 employees,49,848 of which are in foreign countries.

Proportions of women and menOf total employees, 101,000 (44 per cent) are women,and 129,000 men. The highest share of female employ-ees is in The Swedish National Pharmacy Corporation(over 90 per cent) and the lowest in LoussavaaraKiirunavaara AB, LKAB, (less than 10 per cent). Three-quarters of Nordic Baltic Holding’s employees arewomen, while over half of the employees of SwedishAlcohol Retailing Monopoly, SBAB and SOS Alarm arewomen. Corporations such as AssiDomän, Sveaskog,The Swedish Maritime Authority, Vattenfall and TheSwedish Motor Vehicle Inspection Company have a lowshare of female employees.

Employees Government-owned companies

Total no. of Change in no.employees of employees

Corporation 1999 1998 –1999

Sweden Post AB (Posten AB) 50,174 -1,619Telia AB 30,643 50SAS Group AB (21.4%) 28,863 1,792Samhall AB 26,183 490Nordic Baltic Holding AB (18.1%) 18,896 -845AssiDomän AB (35.5%) 17,060 -483Swedish Railways (SJ) 15,006 -688The Swedish National Pharmacy Corp. 9,396 249Vattenfall AB 7,991 -5Civil Aviation Authority 3,919 124Luossavaara-Kiirunavaara AB, LKAB 3,279 -289Swedish Alcohol Retailing Monopoly 3,246 -24Lernia AB 2,459 147The Swedish Motor Vehicle Inspection Company (Svensk Bilprovning, AB) (52%) 2,224 -13Swedish Maritime Administration 1,503 -13Teracom AB 844 -14V&S Vin & Sprit AB 771 73SOS Alarm Sverige AB (50%) 736 13The Royal Swedish Opera AB 580 -10Swedish Testing and Research Institute (SP) 560 -1ALMI Företagspartner AB 554 -12Svenska Spel, AB 510 27

Corporations with a minimum of 500 employees as of 31 December 1999.For partially owned enterprises, the Government holding is in brackets.

Men (129 000) 56%

Women(100 000) 44%

13


Regional distributionGovernment enterprises are located across the entirecountry. Some, like Sweden Post and Systembolaget,have operations in all of Sweden’s municipalities. Teliaand The Swedish National Pharmacy Corporation arealso active in a very high proportion of municipalities.

Distributed according to counties, employees ofGovernment corporations differ from overall nationalemployment levels. On the map, over or under-representation is indicated if the discrepancy betweenthe proportion of employees in Government corpora-tions and overall employment levels is more than 20 per cent.

Government corporations are most over-representedin Norrbotten, where the share is more than twice thenational average, which is due to LKAB and Assi-Domän’s extensive operations here. The counties ofGotland, Jämtland, Stockholm and Västernorrland alsoexhibit over-representation of Government corpora-tion employees. Government corporation employeesare under-represented in five southern and centralSwedish counties: Blekinge, Kronoberg, Sörmland, Väst-manland and Gävleborg.

The February 2000 divestment of the Government’sholding in Celsius AB has enhanced the developmentprospects of regions including Arboga and Karlskoga.

13

5

68

12

14

1817

20

23

24

25

22

710

13

19

21

9

4

County Number of employees

1 County of Stockholm 53,0003 County of Uppsala 5,0004 County of Södermanland 3,2005 County of Östergötland 8,4006 County of Jönköping 6,0007 County of Kronoberg 2,9008 County of Kalmar 4,0009 County of Gotland 1,400

10 County of Blekinge 2,20012 County of Skåne 19,40013 County of Halland 4,00014 County of Västra Götaland 25,50017 County of Värmland 5,30018 County of Örebro 5,70019 County of Västmanland 3,80020 County of Dalarna 5,00021 County of Gävleborg 4,20022 County of Västernorrland 6,80023 County of Jämtland 3,10024 County of Västerbotten 5,10025 County of Norrbotten 11,000

Employees in Sweden 185,000

Employees in foreign countries 50,000

Total employees 235,000 1)

1) The figures differ from other tables in this re-view because regional information may relate todiffering periods and/or encompass employeesregardless of full or part-time employment.

A Above national average (more than 20%)

B Comparable to national average (± 20%)

C Below national average (more than 20%)

An above-average level for employees ofGovernment-owned companies implies thatGovernment corporations are over-represented inthe relevant county. The national average is 1 in20 business employees (5.3 per cent).

Employees in Government-owned companies, 1999

14


Government corporations’ environmental initiativesIn many cases, Government enterprises are pursuingsuccessful initiatives in the environmental sphere.Within transportation, Swedish State Railways and SASare examples of corporations with renowned environ-mental efforts. Real estate and property management isanother sector where Government enterprises areemphasising the environmental sphere. AssiDomän hasaccredited forestry and manufacturing operations thatgenerate approximately 65 per cent of total group rev-enues. In 1998, AssiDomän initiated a successful col-laboration, resulting in Forest Stewardship Councilaccreditation. The Swedish National Pharmacy Corpo-ration has accredited a pharmacy group in the city ofJönköping according to EMAS, the voluntary EU envi-ronmental management system; other groups are inhand.

The Swedish Government Offices conducted a sur-vey of Government enterprise environmental initia-tives in early 2000, which revealed that many had initi-ated, and make substantial progress, in theirenvironmental initiatives. Among wholly owned corpo-rations, 40 responded to the survey on questionsregarding environmental policy, environmental auditsand environmental management systems.

Many (70 per cent), of these corporations have estab-lished environmental policies, which include stipula-tions regarding:

• Environmental standards for suppliers andcontractors (86 per cent of all those with a policy);

• Undertakings regarding reduced environmentalimpact, such as enhanced conservation ofresources and reduced emissions (86 per cent);

• Undertakings to pursue sustainable progress (82per cent).

Statements on employee environmental training arealmost as common (75 per cent).

Undertakings regarding continuous improvement areincluded in documents such as EU voluntary environ-mental management systems. These imply the enter-prise working towards the gradual reduction of envi-ronmental impact. One means of achieving this is thatthe corporation does not cease its efforts once it hasachieved an environmental objective but instead raisesthe level of ambition for its achievements. Statementsregarding continuous or permanent improvement areincluded in 64 per cent of Government enterprise envi-ronmental policies.

Separate environmental audits have become anincreasingly common phenomenon amongst the corpo-rations; 30 per cent of those enterprises respondinghave a separate environmental audit, including enter-prises or Government agencies active within trans-portation (The Civil Aviation Authority, Swedish StateRailways, The Swedish Maritime Authority) and realestate (The Swedish Housing Finance Corporation

SBAB, Specialfastigheter Sverige, Akademiska Hus,Vasakronan). Amongst partially owned corporations,SAS and AssiDomän are renowned for their environ-mental audits. Higher standards in areas including Gov-ernment corporation environmental reportingannounced by the Ministry of Industry, Employmentand Communications will further increase the trans-parency and potential for monitoring Government cor-porations’ environmental initiatives.

Basically the same corporations that effect separateenvironment audits also operate environmental man-agement systems. A small cluster of enterprises are stillnot EMAS registered nor have ISO 14001 certification.AssiDomän, Vattenfall, Sakab and The SwedishNational Pharmacy Corporation have all or part of theiractivities accredited or registered. However, severalcorporations utilise in-house environmental manage-ment systems, and in total, some 45 per cent of thesecorporations have environmental management systems.Enterprises in the process of accreditation/registrationinclude Swedish State Railways, SAS, The Civil AviationAuthority, Vasakronan, Swedish Alcohol RetailingMonopoly, Telia and SIS Eco-Labelling.

Apart from environmental management systems,other forms of accreditation/registration are available.Waste management enterprise Sakab operates accordingto The Association of Swedish Chemical Industries’Ansvar och Omsorg (Responsible Care) programme.Sveaskog and AssiDomän have joined the Forest Stew-ardship Council (FSC), an international organisation thatpursues forestry that is positive for society, effected onenvironmental terms and is economically viable.

RevenuesOf all Government-owned companies, 10 had revenuesexceeding SEK 10 bn, followed by a further 13 with rev-enues of over SEK 1 bn, and another 12 in the SEK 200to 999 m interval. In 1999, half of the enterprises hadrevenues exceeding SEK 500 m, and a further 16 hadsales of between SEK 50 and 500 m; 18 corporations hadlower revenues, with half of this number in liquidation.Telia is the largest corporation, with revenues of SEK 52bn, followed by SAS Group with nearly SEK 426.

In current prices, corporations in this reviewachieved revenues of SEK 310 bn in 1999, up nearly 5per cent on 1998.

Aerospace player The Swedish Space Corporationand Specialfastigheter achieved the largest gains, whilewine and spirits wholesaler Vin & Sprit AB also regis-tered robust (17 per cent) expansion thanks to the suc-cesses of the Absolut vodka brand. The SwedishNational Pharmacy Corporation´s 12 per cent salesincrease is largely due to consumer hoarding, itself theresult of revised pharmaceuticals subsidy regulations.

Collateral care company Venantius registered reducedsales, a result of this corporation’s role. LKAB’s salesdownturn is largely due to price reductions on iron ore.

15


Government-owned companies: revenues and earnings

Revenues in Change in Earnings after financial items1999 revenues SEK m SEK m

Ranking Corporation SEK m 1998–99, % 1999 1998

1 Telia AB 52,121 5 5,980 7,1432 SAS Group AB (21.4%) 41,508 1 1,846 2,8573 Vattenfall AB 27,754 -1 4,297 4,4484 The Swedish National Pharmacy Corporation 26,130 12 401 3415 AssiDomän AB (35.5%) 24,497 2 -701 1,0046 Sweden Post AB (Posten AB) 24,217 -1 -4,055 1) 1,0757 Nordic Baltic Holding AB (18.1%) 23,091 3 11,358 11,9908 Swedish Alcohol Retailing Monopoly 16,625 8 470 3519 Swedish Railways 14,920 2 239 -135

10 Svenska Spel, AB 13,540 5 3,739 3,93711 Samhall AB 9,279 -2 -386 5512 Civil Aviation Authority 4,719 6 18 60613 V&S Vin & Sprit AB 4,029 17 964 1,06014 Luossavaara-Kiirunavaara AB, LKAB 3,985 -22 -244 96015 Akademiska Hus AB 3,379 7 762 69816 Civitas Holding AB 2,441 11 455 1,78217 Swedish National Grid (public service company) 2,127 -1 589 60518 OM Group AB (7.7%) 1,954 25 603 48019 Lernia AB 1,931 3 6 3020 Swedish Maritime Administration 1,428 2 -82 23121 Teracom AB 1,336 5 68 9822 The Swedish Motor Vehicle Inspection Company (52%) 1,132 2 -113 -6

The revenue figures include grants and subsidies. For partially owned enterprises, the Government holding is in brackets. For real estate corpora-tions, revenues are defined as rental revenues. For finance institutions, revenues are defined as net interest income and net commission income.1) excl noncomparable items SEK 236 m.

Of all Government-owned companies, 22 can be classedas billion-kronor corporations, i.e. with sales exceedingSEK 1 bn. Sweden has some 300 enterprises in this class.

Minority-owned OM Group, which posted 25 percent revenue gains, was the most successful. Vin &Sprit AB was the most successful of the wholly ownedcorporations, with 17 per cent sales gains. LKAB, whichshed 22 per cent of sales, suffered the heaviest con-traction, the result of pressurised ore prices and cur-rency hedging.

Four of the major corporations achieved sales gainsof at least 10 per cent, while revenues declined fivecases; the average earnings gains were unchanged, SEK29 bn both years. Five Government-owned companiesposted earnings exceeding SEK 1 bn, half the numberin 1998. Nordic Baltic Holding AB, which earned SEK11,358 m in 1999, posted the highest earnings, whichin fact, marked a slight decline on the previous year. Asa consequence of earnings derived from the divestmentof shares in Pharmacia & Upjohn in January 1999, Stat-tum registered even higher earnings, of SEK 11,716 m.

Earnings declined for 17 of the 23 corporationsbetween 1998 and 1999; six posted losses in 1999,against two in 1998. Sweden Post registered the heavi-est losses, at SEK 4,065 m, although it had provisionedfor expenses resulting from the forthcoming reform ofits service network amounting to SEK 2,100 m, while

also accounting expenses for new pension calculationstandards of SEK 2,201 m. Excluding items affectingcomparability, Sweden Post registered earnings ofSEK 236 m.

Financial institutions and insurance corporations areexcluded from the adjacent Affärsvärlden ranking, butwith revenues of SEK 23,091 m, Nordic Baltic Holdingwould have achieved placing around 32nd, if Skandiahad also been included. The Swedish Motor VehicleInspection Company and The Swedish MaritimeAuthority are also billion-kronor corporations but arealso excluded by Affärsvärlden.

If instead, the ranking was according to operationsin Sweden, Government-owned companies wouldachieve higher rankings. In many cases, Governmentcorporations have a background in national service orinfrastructural needs and accordingly, are subject tonatural domestic territory limitations.

In terms of employee headcount in Sweden, SwedenPost would be second only to Ericsson, with its 43,193annual contract employee equivalents, against SwedenPost’s 41,349. Samhall and Telia would compete overthird place with Volvo Cars, Volvo and ABB, each withsome 25,000 employees in Sweden. With nearly 15,000employees, Swedish State Railways is Sweden’s tenthlargest business employer.

16


Foreign operationsIn many cases, Government-owned companies are ori-ented towards their domestic markets, and this appliesparticularly to corporations that were previouslymonopolists or had undertaken various societal roles onbusiness terms.

In total, Government-owned companies employ50,000 people in foreign countries, equivalent to 22 percent of total headcount. Six out of seven employeeslocated in foreign countries work for SAS, Nordic BalticHolding AB or AssiDomän.

As a consequence of their ownership and organisa-tional structures, SAS and Nordic Baltic Holding ABare already multi-nationals. AssiDomän has extensiveproduction resources in foreign countries, even if someof its foreign activities have been divested. The major-ity of AssiDomän’s production is sold in foreign coun-tries; the same can be said of LKAB and V&S Vin &Sprit AB.

Telia and Sweden Post – both with origins as publicservice companies – have internationalised. One-sixthof Telia’s revenues are derived from foreign countries,while it has over 4,000 employees outside Sweden.

An estimated SEK 90 bn of total sales (30 per cent)are made to foreign customers, an estimate whichincludes a share of Sweden Post’s, Swedish State Rail-ways’, The Civil Aviation Authority’s and The SwedishMaritime Authority’s sales to foreign customers resul-ting from production in Sweden. However, no precisedistinction is possible.

Foreign activities of Government-owned companies

Foreign sales, SEK m Foreign sales, % Employees located in Corporation 1999 1999 foreign countries, 1999

SAS Group (21.4 per cent) 27,395 66 19,387Nordic Baltic Holding AB (18.1 per cent) n/a n/a 13,000AssiDomän AB (35.5 per cent) 20,577 84 11,210Telia AB 7,818 15 4,132Vattenfall AB 6,939 25 662Sweden Post AB n/a n/a 476OM Group (7.7 per cent) n/a n/a 350Luossavaara-Kiirunavaara AB, LKAB 2,949 74 290Swedish Railways n/a n/a 80V&S Vin & Sprit AB 2,820 70 69Swedish-Danish Bridge Connection AB n/a n/a 48SweRoad AB 79 96 37Swedish Travel & Tourism Council (50 per cent) n/a n/a 30Swedesurvey AB 107 100 13Voksenåsen A/S 18 100 2Swedish Space Corporation 269 77 1Swedfund International AB n/a n/a 1Samhall AB 2,041 22 0Swedish Testing and Research Institute 222 53 0Swedish Maritime Administration 186 13 0Teracom AB 160 12 0The Royal Opera AB 7 2 0

Total 90,000 29 49,788

Foreign sales include exports from Sweden and production in foreign countries. For Sweden Post, Swedish State Railways et al., foreign sales aredefined in such a way that precise information is not presented. For partially owned enterprises, the Government holding is in brackets.

The Government’s billion-kronor corporations inSweden´s Top 500 corporations

(source: Affärsvärlden issue 19, 2000)

Revenues in No. of employees Ranking 1) Corporation 1999, SEK m in Sweden, 1999

13 Telia AB 52,897 25,41415 SAS Group 41,508 9,47624 Vattenfall AB 28,788 7,32926 The Swedish National

Pharmacy Corporation 26,156 9,39528 AssiDomän AB 24,706 6,08329 Sweden Post AB 24,217 41,349 3)

37 Swedish Alcohol Retailing Monopoly 16,625 3,246

42 Swedish Railways 14,920 14,92648 Svenska Spel, AB 13,541 510

107 Samhall AB 5,132 2) 26,181117 Civil Aviation Authority 4,719 3,631124 LKAB 4,185 2,991126 V&S Vin & Sprit AB 4,058 699173 Vasakronan AB 2,411 348181 Swedish National Grid 2,307 243207 Lernia AB 1,931 2,459264 Teracom AB 1,400 832

1) Affärsvärlden2) Samhall has been ranked excluding extra cost subsidies. Gross

revenues of SEK 9,279 m would have put Samhall in 73rd place.3) Calculated in manyears. Figures for the Swedish Post elsewhere in this

report are the number of employees without this recalculation

17


Government-owned companies by sector

Revenues, Foreign share, % Earnings after No. of Number of SEK bn Change, % (exc. banks) financial items, Dividend, employees

Segment corporations 1999 1998–99 1999 SEK m 1999 SEK m 1999 1999

Utilities 2 30 -1 18 4.9 1.9 8,234Commodities 5 29 -2 78 -0.8 0.9 20,842Consumer goods 1 4 17 70 1.0 0.2 771Services 13 14 1 16 -0.6 0.0 32,890Leisure & tourism 7 15 4 2 3.8 3.7 1,872Wholesale & retail 2 43 10 0 0.9 0.2 12,642Telecom 3 54 5 12 6.1 1.5 31,770Transportation 11 88 2 32 -2.0 0.7 99,701Banking 8 25 2 0 12.7 1.5 19,533Real estate 1) 6 7 10 0 1.3 0.8 879Conglomerates 2 2 11 0 12.2 11.2 386

Total 2) 58 308 3 22 39.1 22.4 229,134

Excluding OM Group AB and SIS Eco-Labelling. 1) Including Vasakronan AB and Vasallen AB. 2) Excluding Vasakronan AB and Vasallen AB.

Leisure & tourism (7) 0,8%

Wholesale & retail (2) 5.5%

Banking (8) 8.5%

Commodities (5) 9.1%

Utilities (2) 3.6%

Telecom (3) 13.9%

Services (13) 14.4%

Transportation (11) 43.5%

Conglomerates (2) 0.2%Consumer goods (1) 0.3%Real estate (6) 0.4%

Government-owned companies by sector, accordingto employee headcount

Number of corporations in brackets and share of total employee head-count in Government-owned companies

Sector division according to Morgan StanleyCapital International (MSCI)

Sector division has been effected from the perspective of investment

1 Utilities: Swedish National Grid, Vattenfall AB.2 Commodities/basic industries: AssiDomän AB, Grängesbergs

Gruvor AB*, Luossavaara-Kiirunavaara AB, LKAB, Sakab, ABSveaskog, Svenska Skogsplantor AB.

3 Consumer goods: V&S Vin & Sprit AB.4.1 Services: SIS Eco-Labelling, Swedesurvey AB, The Swedish

Environmental Management Council, ALMI Företagspartner AB,Ireco, Lernia AB, Samhall AB, SGAB*, SKD företagen AB*, SOSAlarm Sverige AB, Swedish Testing and Research Institute (SP),The Swedish Motor Vehicle Inspection Company, SvenskaLagerhusaktiebolaget, Imego AB.

4.2 Tourism & leisure: The Royal Dramatic Theatre of Sweden AB,The Royal Swedish Opera AB, Voksenåsen A/S, Swedish Travel &Tourism Council, Kurortsverksamhet, AB*, Norrland Center AB,AB Svenska Spel.

4.3 Wholesale & retail: The Swedish National Pharmacy Corporation,Swedish Alcohol Retaling Monopoly.

4.4 Telecom: Teracom AB, Swedish Space Corporation, Telia AB.4.5 Transportation: A-Banan projekt AB, AB Göta kanalbolag, The

Swedish Civil Aviation Authority, Sweden Post AB, SAS Group AB,Swedish State Railways, Swedish Maritime Administration, StatensVäg- och Baninvest AB, Swedish-Danish Bridge Connection AB,SweRoad AB, Zenit Shipping AB*.

5.1 Finance: Bostadsgaranti AB, Nordic Baltic Holding AB, OM GroupAB, SBAB, Statens Premiefond AB*, Swedfund International AB,SEK (Swedish Export Credit Corporation), Swedish Ship MortgageBank, Venantius AB.

5.2 Real estate: Akademiska Hus AB, A/O Dom Shvetsii, KasernenFastighets AB, Specialfastigheter Sverige AB, Vasakronan AB,Vasallen AB.

6 Conglomerates: Civitas AB, Stattum Holding.

* In liquidation or up for divesting.

SegmentsThe structure of Government-owned companies differsmarkedly from business generally. In many cases, Go-vernment enterprises are infrastructural, active in sec-tors the Government has built up, but which are con-fined to the domestic arena. This includes utilities likeVattenfall, telcos like Telia and transportation enter-prises such as SAS, Sweden Post, The Civil AviationAuthority and The Swedish Maritime Authority. Thereare a number of Government enterprises within basicindustries such as LKAB and AssiDomän, but nonewithin Sweden’s traditionally strong segments such asengineering, chemicals and pharmaceuticals. The highlysuccessful V&S Vin & Sprit is the only consumer goodsenterprise.

The New Economy is represented through the threetelecom-oriented enterprises, but also through othercorporations like Sweden Post and The SwedishNational Housing Finance Corporation (SBAB).

There are numerous examples of services, wholesaleand retail enterprises, although their market shares aremodest. Keynote Government-owned companies areevident in several financial sector niches. The Govern-ment also owns a series of real estate corporations.

Transportation is the largest of the eleven sectors thecorporations have been divided between, a divisionbased on Morgan Stanley International’s standards. Swe-den Post and SAS are included in transportation. Tele-com is the second-largest sector in terms of revenues,and shares second place with the services sector interms of employee headcount. The highest earningswere generated in the financial sector. Stattum’s sale ofPharmacia & Upjohn shares also implied conglomeratesachieving a high earnings ranking, above the telecomsector. Utilities and leisure and tourism includinggaming company Svenska Spel also achieved earningsin the billion-kronor class.

18


Total assets and capital ratios of Government-owned financial institutions

Total assets, SEK m Lending, SEK m Tier 1 capital adequacy, %Corporation 1999 1998 1999 1998 1999 1998

Bostadsgaranti, AB 214 208 n/a n/a n/a n/aNordic Baltic Holding AB 890,304 911,113 584,050 567,612 8.3 7.3SBAB 150,982 155,304 145,543 144,660 6.5 6.9Swedish Export Credit Corporation (SEK) 149,477 138,963 60,314 60,625 16.7 16.2Swedish Ship Mortgage Bank 3,470 2,537 2,710 1,842 29.3 42.8Venantius AB 25,708 27,350 n/a n/a n/a n/a

n/a=information not available or applicableEarnings generated in the Government’s part of the financial sector were very favourable in 1999, but declined slightly as a consequence of lowerinterest rates.

Financial institutionsPrimarily, financial institutions with Government own-ership function on market terms, even if several ofthem perform a niche role, issuing specific credits andguarantees. However, in these niches, such institutionshave secure market positions.

The Government’s ownership of Nordic Baltic Holding

amounts to only 18.1 per cent subsequent to its Aprilmerger with UniDanmark. Ownership of the bank wasrationalised at the beginning of the year, now effectedthrough one company exclusively. The bank has placeda bid for Norway’s Kreditkassen (Christiania Bank)whose main owner, the Norwegian Government, has yetto make its definitive response.

Earnings generated by Government-owned financial institutions

Earnings beforecredit losses, SEK m Credit losses, SEK m Return on total assets, %

Corporation 1999 1998 1999 1998 1999 1998

Bostadsgaranti, AB 8 3 0 1 n/a n/aNordic Baltic Holding AB 11,553 13,212 195 1,222 1.3 1.3SBAB 385 497 -12 1 0.3 0.3Swedish Export Credit Corporation (SEK) 815 922 12 0 0.5 0.7Swedish Ship Mortgage Bank 43 47 0 0 1.2 1.9Venantius AB 159 -89 n/a n/a 0.6 -0.3

The total Government financial sector comprises 20,000 employees, nearly half of which are located in Sweden. This element comprises less than one-fifth of Sweden’s financial sector.Revenues in the financial sector are calculated as the total of net commission income and net interest income; AB Bostadsgaranti’s revenues consist ofguarantee fees.

Vacancies in Government-owned real estate corporations

Premises area Vacancy, % (000 m2) Book value, real estate

Corporation 1999 1998 1999 1998 1999 1998

Akademiska Hus AB 1.2% 1.0% 3,015 1,845 18,572 16,826Kasernen Fastighets AB n/a n/a n/a n/a 230 252Specialfastigheter Sverige AB 1% 1% 986 797 5,277 4,898Vasakronan AB 8% 8% 2,674 2,444 18,159 16,508Vasallen AB 18% 19% 320 323 173 152

The property yield and profitability of Government real estate corporations is stable; the property yield is between 6 and 12 per cent.

Government-owned real estate corporation: revenues and earnings

Revenues, SEK m Operating surplus, SEK m Property yield, %Corporation 1999 1998 1999 1998 1999 1998

Akademiska Hus AB 3,379 3,170 2,157 2,100 12.2 12.8Civitas AB 2,441 2,203 1,358 1,177 7.3 7.0Kasernen Fastighets AB 27,5 30,3 20,3 22,4 8.8 8.9Specialfastigheter Sverige AB 777 602 486 398 9.5 10.0Vasakronan AB1) 2,380 2,110 1,337 1,131 7.7 7.7Vasallen AB1) 47,8 80,7 10,1 38,3 6.2 25.7

Although they have few employees, Government real estate corporations represent book values exceeding SEK 40 bn. Only Vasakronan has calcula-ted the market value of its real estate, at SEK 27 bn, implying that the book value is 67 per cent. Applying this relationship to other enterprises, theportfolios of Government real estate corporations are worth some SEK 60 bn.1) Owned by Civitas Holding AB.

Real estate corporationsThe Government real estate sector does not include thatproportion owned by The National Property Board.Instead, the Government real estate corporation spherecomprises a number of specific enterprises that emergedfrom the former Vasakronan. Civitas Holding is owner of

Vasakronan and Vasallen, and of the Government’s 45per cent holdings in listed real estate corporationCeltica. Since 1 July 1998, Specialfastigheter, Kasernenand Akademiska Hus have been outside this sphere, allof which are directly owned by the Government throughthe Ministry of Finance.

19


Value-added, Government-owned companiesValue-added, Value-added, SEK m

SEK m per employeeCorporation 1999 1999

Telia AB 24,672 0.81SAS Group AB1) 20,000 0.69Nordic Baltic Holding AB 18,159 0.96Vattenfall AB 1) 14,000 1.75Sweden Post AB 1) 9,862 0.20AssiDomän AB 8,534 0.50Swedish Railways 1) 7,300 0.49Svenska Spel, AB 5,303 10.40The Swedish National Pharmacy Corporation 3,746 0.40The Swedish Civil Aviation Authority 3,342 0.85V&S Vin & Sprit AB 2,887 3.74Samhall AB 2,484 0.09Luossavaara-Kiirunavaara AB, LKAB 2,073 0.63Swedish National Grid 1,846 7.60Swedish Alcohol Retailing Monopoly 1,421 0.47The Swedish Motor Vehicle Inspection Company 1) 975 0.40Lernia AB 946 0.38Swedish Maritime Administration 815 0.54SBAB 788 2.11Teracom AB 583 0.69SOS Alarm Sverige AB 387 0.53Sveaskog AB 1) 300 1.42Swedish Testing and Research Institute (SP) 251 0.45The Royal Opera AB 206 0.36ALMI Företagspartner AB 205 0.37

Total 135,000 0.59

Value-added is defined as total payroll including social security contri-butions and operating earnings before depreciation; value-added cor-responds to the enterprise’s GDP contribution, part of it to the GDP ofother countries.1) Estimate, the enterprise provided no data.

InvestmentsGovernment-owned companies are major investors; in1999, Telia invested over SEK 12 bn, or over 20 per centof revenues. Vattenfall, SAS and The Civil AviationAuthority also have high investment ratios.

In total, Government-owned companies investednearly SEK 40 bn, although this does not include realestate corporations and financial institutions. Invest-ments increased by 10 per cent from 1998 levels.

Akademiska Hus invested SEK 2.2 bn in 1999, andmade three major real estate acquisitions totallingnearly SEK 1 bn (IBM Kista, the Örebro medical schooland three properties in Haga, Gothenburg). LKABinvested in new main levels in the mines in Kiruna andMalmberget, while also preparing extraction at Sjö-malmen in Kiruna. An upgrade of the Ofoten rail link,to a 30-ton axle weight, and the procurement of newrolling stock, is in hand.

The Civil Aviation Authority is investing in the con-struction of a third runway, due for completion in 2002.

In 1999, Vasakronan made SEK 1.8 bn of real estateacquisitions, and SEK 0.3 bn of divestments. Invest-ments and maintenance with a value of SEK 1.2 bn werealso effected.

Net investments1) by Government-owned companiesInvestments, Investments,

SEK m SEK mCorporation 1999 1998

Telia AB 12,145 11,684Vattenfall AB 7,968 4,528SAS Group AB 5 870 6,112Akademiska Hus AB 3,323 1,908The Swedish Civil Aviation Authority 2,935 731Swedish National Grid 1,381 1,056Vasakronan AB 1,200 n/aSweden Post AB 1,103 1,064Luossavaara-Kiirunavaara AB, LKAB 986 1,358AssiDomän AB 903 3,439Swedish Railways 737 1,128V&S Vin & Sprit AB 686 119Teracom AB 352 522The Swedish National Pharmacy Corporation 281 237Samhall AB 275 213Svenska Spel, AB 207 283ALMI Företagspartner AB 187 210Swedish Alcohol Retailing Monopoly 165 31Sveaskog AB 102Swedish Maritime Administration 97 42Swedish Testing and Research Institute 60 37Lernia AB 47 85SOS Alarm Sverige AB 34 36The Royal Opera AB 5 8Nordic Baltic Holding AB n/a n/aThe Swedish Motor Vehicle Inspection Company n/a n/a

Total 39,000 35,000

1) Includes R&DNo information for real estate corporations and financial institutionsn/a not available.

Value-addedValue-added corresponds to a corporation’s GDP con-tribution, which in this document, is defined as therelevant corporation’s total payroll including socialsecurity contributions and operating earnings beforedepreciation. Corporate value-added includes pro-duction in other countries, i.e. the share of othercountries’ GDPs.

In the following table, information on value-added isnot available for several of the corporations, and in suchcases, value-added has been estimated using standard-ised earnings and employee headcount measures.

The Government corporate sector’s total value-added equates to approximately 7 per cent of Sweden’sGDP, with Telia, SAS, Nordic Baltic Holding AB andVattenfall making the largest contributions.

Calculated in terms of value-added per employee,Svenska Spel made the largest contribution, of SEK 10m-plus per employee, followed by V&S Vin & Sprit.Capital-intensive corporations such as Vattenfall havevalue-added per employee of some SEK 2 m. Samhall’svalue-added per employees is less than SEK 100,000.The average value-added per employee for all Govern-ment-owned companies is approximately SEK 600,000.

20


Research and developmentOnly few corporations indicated investments inresearch and development (R&D), partly due to deve-lopment initiatives in services companies not beingclassified as R&D. However, this probably also reflectsthe fact that the share of R&D is relatively modest. Go-vernment corporations are active in sectors with rela-tively low R&D intensity.

Telia’s R&D share is equivalent to nearly 3 per centof revenues, high in international terms, but modestcompared to telecom technology corporation Ericsson.

Ownership holdings and forms of ownershipThe predominant form of ownership for Government-owned companies is wholly owned limited companies.Only four activities are pursued as public service com-panies: The Civil Aviation Authority, The Swedish Mar-itime Authority, Swedish State Railways and SwedishNational Grid.

The Government is an owner in a total of eleven cor-porations, four of which are listed. The Government

Government-owned companies, by holding

Foreign Earnings Earnings share, % after after

Revenues, (financial financial financial No. of Change, No. of SEK bn Change,% institutions) items, SEK m items, SEK m employees no.

Holding corporations 1999 1998–99 1999 1999 1998 1999 1998–99

Wholly owned (100 %) 40 216 4 18 14.0 23.5 160,843 -1,435Majority or 50% owned (50–99 %) 7 3 1 0 0.7 0.9 3,111 -14Minority owned (<50 %) 7 91 2 41 13.1 16.3 65,656 766All 54 310 3 23 27.8 40.8 229,728 -552Companies in liquidation and holding companies 8 3 10 0 12.2 2.6 743 -33

Excluding Sakab

exerts a majority influence, but does not hold 100 percent of the capital of The Swedish Motor VehicleInspection Company, IRECO Institute for Researchand Competence Holding AB and The Swedish Envi-ronmental Management Council.

The Government holds half of the capital of five cor-porations: Swedish Travel & Tourism Council, ABBostadsgaranti, SOS Alarm Sverige AB, SEK (SwedishExport Credit Corporation) and Värdepappers-centralen VPC AB (holding divested in July 1999).

The Government has minority holdings of less than20 per cent in: Nordic Baltic Holding, OM Group,Sakab and SIS Eco-Labelling.

The Government is the biggest owner in the fourlisted corporations (AssiDomän, Celtica, Nordic BalticHolding and SAS Sverige), the Government owns 7.7 per cent of OM Group.

The ownership of Celtica is effected through CivitasHolding/Agilia Holding.

21


Principals for Government ownershipThe Government Offices have accumulated resourcesand skills for the management of Government assets indedicated units within the Ministry of Industry,Employment and Communications and the Ministry ofFinance.

The Ministry of Industry, Employment and Com-munications Government manages 32 corporations,which represent an aggregate 84 per cent of employeeheadcount and 69 per cent of revenues. The majority ofthese enterprises are utilities, telecom, forest productsand transportation sector players; most are exposed tocompetition.

The Ministry of Industry, Employment and Com-munications’ corporate unit was formed coincidentwith the autumn 1998 merger of the formerly separatelabour market, industry and trade and communicationministries. This unit comprises 16 people; six corporatemanagers, four analysts that also deal with corporategovernance issues, two people working on the stockmarket flotation of Telia, three assistants and one unithead/coach. Corporate managers and analysts are activeaccording to sector.

The Ministry of Finance is the second major managerof Government ownership, managing 14 corporationsprimarily in the financial and real estate sectors. Thesecorporations employ 9 per cent of the headcount, andgenerate 16 per cent of the revenues of Governmentcorporations.

The Ministry of Finance’s corporate unit comprisesten individuals, and manages real estate corporations,

financial institutions, V&S Vin & Sprit and AB SvenskaSpel. This unit also deals with lottery issues, plus TheNational Property Board and The Swedish FortificationCorps.

The purpose of these units is to actively monitor andmanage Government assets to ensure optimal valueperformance, and the satisfaction of specific societalinterests.

These units effect their assignments primarilythrough active research and Board activities, monitor-ing and observing trends in the various sectors, andproposing suitable measures. The units’ professionalsalso interface between the corporations and those polit-ical appointees that bear ultimate executive responsi-bility. Accordingly, these units prepare supporting dataand submissions for consideration by the GovernmentOffices.

Additionally, the Ministries of Health and SocialAffairs, Culture, the Environment, Foreign Affairs, andEducation and Science manage Government ownershipin 12 corporations, representing 7 per cent of totalemployee headcount and 15 per cent of aggregate reve-nues. The Ministry of Health and Social Affairs man-ages corporations that pursue socio-political objectives,while the Ministry of Culture manages enterprises withcultural policy objectives. The Ministry of the Envir-onment manages corporations active in the environ-mental sphere.

Enterprises with Government ownership of less than20 per cent lie outside the scope of this review.

Government-owned companies by principal

Revenues, Earnings after financial Dividend, No. of Principal No. of corporations SEK bn 1999 items, SEK bn 1999 SEK bn 1999 employees 1999

Ministry of Finance 14 48.8 18.0 5.8 21,593Ministry of Culture 4 1.9 0.1 0.0 1,789Ministry of the Environment 2 0.1 0.0 0.0 41Ministry of Industry, Employment and Communications 32 213.4 19.3 16.0 192,600Ministry of Health and Social Affairs 3 42.9 1.0 0.2 1) 12,999Ministry of Education and Science 1 0.0 -0.0 0.0 12Ministry of Foreign Affairs 2 0.9 0.8 0.5 100

All 58 307.8 39.1 22.4 1) 229,134

Excluding OM Group AB, Sakab and SIS Eco-Labelling. Vasakronan and Vasallen are included in Civitas Holding.1) The figures include SEK 11.7 bn in dividends from Stattum Holding.

22


Government-owned companies by principal, April 2000

1) 50.24% prior to hive-off of Sveaskog AB in summer 1999.2) 50% by SAS Sverige AB.3) Statens Premiefond AB included in 1998, but in liquidation and partially replaced by the 7th AP (National Pensions Insurance) Fund.4) Civitas Holding AB owns Agilia Holding AB and Vasakronan AB. In turn, Vasallen AB is a subsidiary of Agilia Holding AB. Celtica is a listed corpo-

ration 45% owned by Agilia. 5) Formerly 42.5% owned by Nordbanken Holding AB, although this has been restructured to direct ownership in Nordic Baltic Holding AB, with a

25.9% holding in the merged corporation. Subsequent to the spring 2000 merger with UniDanmark, the Government’s ownership holding is18.1%.

6) SAQ Kontroll AB, managed by Ministry of Industry, Employment and Communications, was divested in June 1999.7) The holding in Värdepapperscentralen VPC AB, managed by the Ministry of Finance, was divested in July 1999.8) 25% holding in Celsius AB divested to Saab AB/BAe in February 2000.9) In liquidation or up for divesting.

Corporation Holding Corporation Holding

Ministry of Industry, Employment and Communications 6, 8)

A-Banan projekt AB 100%ALMI Företagspartner AB 100%AssiDomän AB1) 35.5%Grängesbergs Gruvor AB 9) 100%Göta kanalbolag, AB 100%IRECO Holding AB 55%Lernia AB 100%The Swedish Civil Aviation Authority public service companyLuossavaara-Kiirunavaara AB, LKAB 100%Norrland Center AB 33.3%Sweden Post AB 100%Samhall AB 100%SAS Group AB 2) 21.4%Swedish Maritime Administration public service companySOS Alarm Sverige AB 50%Swedish State Railways, SJ public service companyStatens Väg- och Baninvest AB 100%Stattum Holding 100%Sveaskog AB 100%The Swedish Motor Vehicle Inspection Company 52%Swedish National Grid public service companySwedish Space Corporation 100%Swedish Ship Mortgage Bank 100%Svenska Skogsplantor AB 100%Swedish-Danish Bridge Connection 100%Sveriges Geologiska AB, SGAB in liquidation 9) 100%Swedish Testing and Research Institute (SP) 100%Swedish Travel & Tourism Council 50%SweRoad AB 100%Telia AB 100%Vattenfall AB 100%Zenit Shipping AB9) 100%

Ministry of Finance 3, 7)

Agilia Holding AB 4) 100%Bostadsgaranti, AB 50%Celtica AB 4) 45%Civitas Holding AB 4) 100%

Dom Shvetsii, A/O 36%Kasernen Fastighets AB 100%Nordic Baltic Holding AB5) 18.1%OM Group AB 7.7%SIS Eco-Labelling 10%SKD företagen AB 9) 100%Specialfastigheter Sverige AB 100%SBAB (Swedish National Housing Finance Corp.) 100%Statens Premiefond AB 9) 100%Akademiska Hus AB 100%Svenska Lagerhusaktiebolaget 100%Svenska Spel, AB 100%V&S Vin & Sprit AB 100%Vasakronan AB 4) 100%Vasallen AB 4) 100%Venantius AB 100%

Ministry of CultureThe Royal Dramatic Theatre of Sweden AB 100%The Royal Swedish Opera AB 100%Teracom AB 100%Voksenåsen A/S 100%

Ministry of the EnvironmentSakab 1 shareThe Swedish Environmental Management Council 90%Swedesurvey AB 100%

Ministry of Health and Social AffairsThe Swedish National Pharmacy Corporation 100%Kurortsverksamhet, AB9) 100%Swedish Alcohol Retailing Monopoly 100%

Ministry of Foreign AffairsSwedfund International AB 100%SEK (Swedish Export Credit Corporation) 50%

Ministry of Education and Science Imego AB 100%

23


Wholly owned enterprises (100 %)A-Banan projekt AB 15.3 40 0 0 0 neg neg neg neg 0 0 2 0ALMI Företagspartner AB 560 27 0 -112 2554) -3 6 0 0 554 -12The Swedish National Pharmacy Corporation 26,130 12 0 401 341 14 14 9 7 100 1,500 9,396 249Civitas AB 2,441 11 n/a 455 1,782 5 18 7 7 164 411 386 -25Grängesbergs Gruvor AB 1) 0 0 0 0 0 n/a n/a n/a n/a 0 0 0 0Göta kanalbolag, AB 51 -24 0 2.3 -0.4 6 0 0 0 0 0 51 -43Imego AB 1.4 new 0 -13.2 -35 neg 0 0 12 12Kasernen Fastighets AB 27.5 -9 0 -4.7 8.6 -7 11 9 9 2.2 2.1 3 0The Royal Dramatic Theatre of Sweden AB 210 -8 0 -1 6 neg 86 n/a n/a 0 0 303 -3The Royal Swedish Opera AB 347 -2 2 1 -16 29 neg 0 neg 0 0 580 -10Kurortsverksamhet, AB 1) 165 -6 0 63 -4 102 neg n/a n/a 0 0 357 -8Lernia AB 1,931 3 n/a 6 30 2 8 n/a n/a - 22 2,459 147The Swedish Civil Aviation Authority 4,719 6 0 18 606 0 20 2 11 0 78 3,919 124Luossavaara-Kiirunavaara AB, LKAB 3,985 -22 74 -244 960 -3 8 -7 10 231 231 3,279 -289Sweden Post AB 24,217 -1 n/a -4,055 5) 1,075 neg 17 neg 29 0 0 50,174 -1,619Samhall AB 9,279 -2 22 -386 55 -27 2 -184 1 0 0 26,183 490SBAB 782 -8 0 397 496 8 11 0 0 89 96 374 62Sveriges Geologiska AB1) 0 0 0 0 0 0 0 0 0 0 0 0 0Swedish State Railways, SJ 14,920 2 2) 239 -135 10 -5 7 5 0 0 15,006 -688Swedish Maritime Administration 1,428 2 13 -82 231 -9 16 -8 19 0 55 1,503 -13SKD företagen AB 1) 0 0 0 0 0 0 0 0 0 0 0 0 0Swedish Testing and Research Institute (SP) 422 5 53 17 21 6 8 9 11 0 0 560 -1Specialfastigheter Sverige AB 777 29 0 149 114 11 9 10 10 60 115 91 4Statens Premiefond AB 1) 0 0 0 -3 -2 n/a n/a n/a n/a 0 0 0 0Statens Väg- och Baninvest AB 129 -43 0 1 -8 6 neg 0 neg 0 0 26 -16Akademiska Hus AB 3,379 7 0 762 698 13 12 7 8 600 400 399 10Stattum Holding - - - 11,716 817 66 14 neg neg 11,000 1,000 0 0Sveaskog AB 517 -8 n/a 188 - 30 - 27 new 0 0 212 2Svedab 471 4 0 0 0 0 0 0 0 0 0 100 2Swedesurvey AB 107 6 100 4 4 11 12 1 0 0 0 39 2Swedfund International AB 42 -2 - -29 16 2 0 n/a n/a 0 0 18 -1Swedish National Grid(public service company) 2,127 -1 n/a 589 605 9 10 7 8 384 302 243 8Svenska Lagerhusaktiebolaget 155 8 <1 20 13 29 19 41 23 0 0 118 10Swedish Space Corporation 349 32 77 13 1 11 0 34 -16 0 0 283 -2Swedish Ship Mortgage Bank 56 -5 0 43 47 6 6 1 2 0 0 9 0Svenska Skogsplantor AB 197 -9 0 -5 13 -5 11 1 8 3.0 0 291 -1Svenska Spel, AB 13,540 5 0 3,739 3,937 100 100 159 153 3,739 3,937 510 27SweRoad AB 82 30 96 14 -2 37 -9 130 -27 0 0 57 2Swedish Alcohol Retailing Monopoly 16,625 8 0 470 351 26 23 81 49 50 122 3,246 -24Telia AB 52,121 5 15 5,980 7,143 14 19 15 18 1,470 1,400 30,643 50Teracom AB 1,336 5 12 68 98 3 7 8 11 0 16 844 -14V&S Vin & Sprit AB 4,029 17 70 964 1,060 31 27 93 126 230 840 771 73Vasakronan AB3) 2,380 13 0 437 1,114 6 13 8 8 157 982 348 27Vasallen AB3) 48 -41 0 -33 1 -29 1 6 26 0 0 38 4Vattenfall AB 27,754 -1 25 4,297 4,448 8 8 n/a n/a 1,500 1,500 7,991 -5Venantius AB 285 -25 0 159 -89 5 -3 1 0 0 0 146 -59Voksenåsen A/S 19 125 100 0,4 0.6 4 n/a 37 11 0 0 62 60Zenit Shipping AB1) - 6 - n/a 9.3 n/a n/a n/a 53 0 0 0 0

Total, wholly owned Government enterprises excluding Stattum 215,726 3.7 11 14,113 24,168 11 15 8,622 11,027 161,200 -1,499

Total, wholly owned Government enterprises including Stattum 215,726 3.7 11 25,829 24,985 15 15 19,622 12,027 161,200 -1,4991) In liquidation or up for divesting.2) Precise definition of foreign sales problematic for certain corporations.3) Not included in totals. Holding company Civitas included only.4) Excl sales of shares SEK -153 m.5) Excl non comparable items SEK 236 m.For financial institutions, revenues are substituted by net interest income and net commission income; for real estate corporations, rental revenues are used.

Corporation 1999 98–99 1999 1999 1998 1999 1998 1999 1998 1999 1998 1999 98–99

RevenuesSEK m

Change,%

Foreignsales, %

Earnings afterfinancial items,

SEK mReturn on equity, %

Return onoperating capital, %

Dividend, SEK m

No. ofemployees

Changeno.

Corporations owned directly by the Government Offices, April 2000

24


Partially owned (min. 50%) Bostadsgaranti, AB (50%) 14.6 40 0 7.8 2.4 103 10.8 n/a n/a 0 0 8 0IRECO, Institute for Research and Competence Holding AB (55%) 102 2 0 0 0 n/a n/a n/a n/a 0 0 3 1SOS Alarm Sverige AB (50%) 553 3 0 22 31 12 19 27 38 7 0 736 13The Swedish Motor Vehicle Inspection Company (52%) 1,132 2 0 -113 -6 -9 -1 n/a n/a 0 4 2,224 -13SEK (Swedish Export Credit Corporation) (50%) 898 -10 2) 803 922 13 14 1 1 450 667 82 -7The Swedish Environmental Management Council (90%) 2.8 -30 - -0.2 0.9 n/a n/a n/a 207 0 0 2 0Swedish Travel & Tourism Council(50%) 221 -7 2) 5 -2 n/a n/a n/a n/a 0 0 56 -8

Partially owned, (< 50%) AssiDomän AB (35.5%) 24,497 2 84 -701 1,004 3 5 6 7 710 651 17,060 -483Dom Shvetsii, A/O (36%) n/a n/aNordic Baltic Holding AB (18.1%) 23,091 3 n/a 11,358 11,990 21 14 1 1 948 902 18,896 -845Norrland Center AB (33.3%) 3.8 -17 - 0.3 -0.2 2 -2 -83 -30 0 0 4 1OM Group AB (7.7%) 1,954 25 n/a 603 480 16 14 n/a n/a 419 377 805 298SAS Group AB (21.4%) 41,508 1 66 1,846 2,857 8 13 8 17 658 658 28,863 1,792SIS Eco-Labelling (10%) 37 1 - 6 5 28 28 28 28 0 0 28 3Sakab (1 share) n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a

Total, corporations with Government part ownership 94,015 2.4 69 13,836 17,284 14 12 2,733 2,934 68,767 752

Total, Government-owned companies 309,742 3.3 29 39,666 42,269 14 14 25,754 14,962 229,967 -747

Total, Government-owned companies, excl. Stattum 309,742 3.3 29 27,950 41,452 11 14 14,754 13,962 229,967 -747

Total, corporations with Government part ownership weighted by holding 4) 240,410 3.3 17 29,326 29,522 14 14 20,359 12,879 179,898 -1,492

For financial institutions, revenues are substituted by net interest income and net commission income; for real estate corporations, rental revenues areused.1) In liquidation or up for divesting.2) Precise definition of foreign sales problematic for certain corporations.3) Not included in totals.4) Ownership holdings only included for partially owned corporations.

Corporation 1999 98-99 1999 1999 1998 1999 1998 1999 1998 1999 1998 1999 98-99

Revenues,SEK m

Change,%

Foreignsales, %

Earnings after financial items,

SEK mReturn on equity, %

Return on operatingcapital, %

Dividend, SEK m

No. ofemployees

Changeno.

25


Level of commercial activity, April 2000

Minimum earnings Specific societalCorporation requirement interest1) Competition Comment

Wholly owned corporationsA-Banan projekt AB No Yes Partially grant financed,

temporary enterpriseALMI Företagspartner AB No Yes Partially grant financedThe Swedish National Pharmacy Corporation Yes Yes Legislated monopolyCivitas Holding AB med Agilia Holding AB Yes NoGrängesbergs Gruvor AB No No In liquidationGöta kanalbolag, AB No Yes Partially grant financedImego AB Yes No New research institutionKasernen Fastighets AB Yes Yes Sole statusThe Royal Dramatic Theatre AB No Yes Partially grant financedThe Royal Opera AB No Yes Partially grant financedKurortsverksamhet, AB No No Partially grant financed,

in liquidationLernia AB Yes NoCivil Aviation Authority Yes YesLuossavaara-Kiirunavaara AB, LKAB Yes NoSweden Post AB Yes Yes Certain services grant

financedSamhall AB No Yes Partially grant financedSwedish Railways Yes NoSwedish Maritime Administration Yes YesSKD företagen AB Yes No In liquidationSwedish Testing and Research Institute Yes No Certain services grant

financedSpecialfastigheter Sverige AB Yes No Partial sole statusSBAB (Swedish National Housing Finance Corp.) Yes NoStatens Premiefond AB Yes Yes In liquidationStatens Väg- och Baninvest AB No NoAkademiska Hus AB Yes No Partial sole statusStattum Holding Yes No Holding companySveaskog AB Yes Yes Acquired from

AssiDomän ABSwedish-Danish Bridge Connection AB No Yes Öresund link constructionSwedesurvey AB Yes NoSwedfund International AB Yes NoSwedish National Grid Yes Yes Sole statusSvenska Lagerhusaktiebolaget, SLAB Yes NoSwedish Space Corporation Yes NoSwedish Ship Mortgage Bank Yes NoSvenska Skogsplantor AB Yes NoSvenska Spel, AB Yes No Legislated monopolySveriges Geologiska AB No In liquidationSweRoad ABSwedish Alcohol Retailing Monopoly Yes Yes Legislated monopolyTelia AB Yes NoTeracom AB Yes Yes Partial monopoly V&S Vin & Sprit AB Yes NoVasakronan AB Yes NoVasallen AB Yes NoVattenfall AB Yes NoVenantius AB No Yes Partially grant financedVoksenåsen A/S No Yes Sole status Partially grant financedZenit Shipping AB No No In liquidation

Majority or 50%-owned companies, holding in bracketsBostadsgaranti, AB (50%) No NoIRECO Institute for Research and Competence Holding AB (55%) No YesSOS Alarm Sverige AB (50%) Yes No Partial sole statusThe Swedish Motor Vehicle Inspection Company (52%) No Yes Legislated monopolySEK (Swedish Export Credit Corporation) (50%) Yes No Issues Government-

backed creditsThe Swedish Environmental Management Council (90%) No No Sole status Partially grant financedSwedish Travel & Tourism Council (50%) No No Partially grant financed

Minority-owned companies, holding in bracketsDom Shvetsii, A/O (36%) AssiDomän AB (35.5%) Yes NoNordic Baltic Holding AB (18.1%) Yes NoNorrland Center AB (33.3%) NoOM Group AB (7.7%) Yes NoSAS Group AB (21.4%) Yes NoSIS Eco-Labelling (10%) No NoSakab (1 share) Yes No1) Specific societal interests means the majority of activities are grant financed and/or regulated by legislation or parliamentary decision.

26


The Government has ownership holdings in five corpo-rations listed on OM Stockholm Exchange. In SASGroup and MeritaNordbanken, Government ownershipis effected through holdings in SAS Sverige (50 percent) and Nordic Baltic Holding respectively.

The residual Government holdings in Pharmacia &Upjohn were divested in January 1999. In autumn of thatyear, Saab AB/BAe bid for Celsius AB; the Governmentdivested its holding in February 2000.

In summer and autumn 1999, the Governmentacquired Sveaskog AB from AssiDomän through acombined hive-off and share exchange, whereby theGovernment reduced its holdings in AssiDomän from50.2 per cent to 35.5 per cent.

The value of the Government's stock portfoliosdeclined by SEK 1,826 m, or 5 per cent, in 1999,excluding shares in Pharmacia & Upjohn. By 20 July2000, the portfolio excluding Celsius and Telia had

expanded by SEK 8.842 m, or 24 per cent. The OMStockholm Exchange General Index (SX) rose by 66 percent in 1999, and by 9 per cent between 1 january and20 July 2000.

The initial public offering of 29.4 per cent of Teliain the beginning of June 2000 gave the GovernmentSEK 75.0 bn, whereof SEK 12.8 bn goes to Telia. TheGovernment´s share of 70.6 per cent has a market valueof SEK 176 bn 20 July 2000.

Government shareholdings correspond to 1 per centof aggregate market capitalisation. According to thebook Ägarna och Makten 2000 (Owners and Power2000), the Swedish Government ranked 14th as anowner of Swedish listed corporations. That share risesto 5 per cent of the total market capital on OM Stockholm Exchange if also Telia is included. Thatmakes the Government the biggest owner over all.

Government ownership of listed corporations

Listed Government-owned companies as of 31 December 1998, 1999 and 20 July 2000

Government holding Government proportion of market capitalisation Share price performance, %capital/votes, 31 Dec 31 Dec 4 July Dec 98- Dec 99- Dec 98-

Corporate ranking 4 July 2000 1998 1999 2000 Dec 99 4 July 2000 4 July 2000

Nordic Baltic Holding AB1) 18.1 28,185 27,101 35,231 -4 30 25AssiDomän AB2) 35.5 7,612 5,818 5,398 8 -7 0OM Group AB 7.7 654 1,186 2,649 81 123 305SAS Sverige AB3) 50 2,626 2,679 2,344 2 -13 -11Celtica4) 38.5 46 52 56 13 8 22Celsius AB 5) 24.9 770 1,232 0 60 – –Pharmacia & Upjohn 6) 7.0 16,237 0 0 – – –

Total excl. Telia 56,131 38,068 45,678 -3 24 18

Telia 70.6 - - 175,817 - - -

Total incl. Telia 56,131 38,068 221,634 66

Index (SX) 66 9 821) Previously 25.9 per cent and during 1999 25.5 per cent through 42.5 per cent of Nordbanken Holding which owned 60 per cent of

MeritaNordbanken (21.3 per cent of the vote because Nordbanken Holding held only 50 per cent of the votes).2) The Government’s ownership holding was 50.2 per cent prior to the Sveaskog transaction. 3)SAS Sverige AB owns three-sevenths of SAS Group, whereby the Government ownership holding is 21.4 per cent.4) Through Civitas Holding AB5) The Government held 61.7 per cent of the vote, although this was only utilised in specific situations. Although the holding was divested in February,

the first funds were received in March 2000.6) 7 per cent of share capital divested in January 1999.

Change in Government ownership of listed corporations from 1999 to Q2 2000

Timing Operations, acquisition/divestment Buyer Transaction total

AcquisitionJanuary 1999 OM Group AB Ministry of Finance 6,413,154 shares

Timing Seller Relates to Transaction total

DivestmentJanuary 1999 Stattum Holding Pharmacia & Upjohn Inc 357,662,282 shares/

SEK 15,400 mJune 1999 Stattum Holding AssiDomän AB 1)

January 2000 The Government and Stattum Holding Celsius AB SEK 1,253 mJune 2000 2) Government Telia SEK 75,048 m1) Hive-off of Sveaskog and exchange of AssiDomän shares for Sveaskog shares with other shareholders.2) 1,008,619 persons signed for the Telia Share. The Telia share was listed 13 June on the A-list on OM Stockholmsbörsen.This list includes transactions with the corporations’ name, timing, buyer, seller, ownership holdings, amounts, etc.Acquisitions and divestments implemented by the corporations themselves are mainly indicated under the relevant corporation; including SwedenPost’s acquisition of shares in ASG in June 1999, and the subsequent divestment of these shares to Deutsche Bundespost. Vattenfall has also acqui-red shares in companies including Germany’s HEW.

27


There was brisk activity in acquisitions, restructuring andinvestments in 1999 and so far in 2000. The latest majorevent was the sale of Celsius to Saab AB/BAe in Febru-ary 2000. The construction of Sveaskog AB was anotherstructural measure. Acquisitions, mergers and divest-ments have also been effected with foreign counterpar-ties, with the sale of SAQ Kontroll, Nordic Baltic Hold-ing´s merger with UniDanmark and Vattenfall’sacquisition of power distributors and producers in Fin-land, Norway, Poland and Germany all examples of thesephenomena.

A review of investments, acquisitions and restruc-turing, and executive appointments in Government-owned companies follows. However, this is preceded bya brief and separate review of a number of the mostnotable transactions.

Pharmacia & UpjohnThe Government’s residual holdings in Pharmacia &Upjohn were divested in January 1999 when the shareprice set its all-time high. The total sales revenuesamounted to SEK 15.4 bn, generating capital gains ofsome SEK 10.8 bn. The divested holding amounted to7 per cent of this corporation’s share capital.

Telia’s stock market flotationIn March 2000, the Government submitted a billrequesting the divestment of shares equating to up to49 per cent of Telia, which was approved by Parliamentin May, with the first sale in June 2000.

Divestment of Government holdings in Celsius ABOn 16 November 1999, Saab AB/BAe made a public bidfor all the shares in Celsius AB, of SEK 179 cash foreach class A and B share to Celsius AB’s shareholders;the offering had a total value of some SEK 5 bn. TheGovernment resolved to accept the offering for all itsclass A and B shares, implying that the Government andStattum Holding sold 3,000,000 class A shares and4,000,000 class B shares, corresponding to 24.9 per centof the capital and 61.7 per cent of the votes in Celsiusfor SEK 1,253 m. This decision was reached on 17February 2000 supported by parliamentary authorisa-tion granted on the preceding day. Payment wasreceived on 3 March 2000.

The divestment of the Celsius AB holding to SaabAB/BAe has contributed to the restructuring of theSwedish and international defence industries through

the creation of a competitive and secure corporationwith good international collaboration prospects.

Divestment of SAQOn 24 June 1999, SAQ Kontroll AB, the technicalinspection company, was divested to Det Norske Veri-tas for SEK 270 m plus a conditional element to thespecified subsequently. This divestment results in theSwedish Government deregulating and de-monopolisingThe Swedish Motor Vehicle Inspection Company marketthat began ahead of Sweden’s 1995 entry into the EU.

Divestment of Government holdings in VPCThe Government divested its 50 per cent holding inVPC on 15 July 1999, as did the Federation of SwedishIndustries and the Stockholm Chamber of Commerce,which each held one-eighth of the company. The pur-chase price was SEK 900 m, SEK 600 m to be paid tothe Government. Subsequently, VPC is 98.6 per centowned by four major Swedish banks: FöreningsSpar-banken (Swedbank), Nordic Baltic Holding, SEB andSvenska Handelsbanken, with the remaining 1.4 percent owned by various securities institutions. OMGroup AB has a collaboration agreement with the banksregarding the option to purchase 11 per cent.

Sveaskog ABIn June 1999, Sveaskog AB was formed as a wholly ownedGovernment forest products corporation. This struc-ture was achieved by AssiDomän transferring approxi-mately one-third of its forest assets to a subsidiary thatwas spun off to shareholders at its Annual General Meet-ing on 14 June 1999. Coincident with this transfer, theGovernment offered to exchange shares in Sveaskog forthose AssiDomän shares held by the Government. Theoffering gained broad acceptance, with the Governmentsecuring a first tranche of 98 per cent of the shares inSveaskog. Compulsory redemption is in hand.

An autumn 1998 parliamentary decision ahead ofthis corporate formation stipulated that Sveaskog wouldfunction as an independent party on the timber marketand serve the interests of the environment and naturalhabitats.

Corporate acquisitions and divestments As of 1 January 2000, AssiDomän divested Niab Hes-tra AB and the Hestra sawmill to the Vida AB sawmilling group. In February 2000, AssiDomän signed a

Significant events in 1999 and early 2000

28


letter of intent with Frantschach AG regarding the saleof the Dynäs and Sepap paper mills, all sack-paperfacilities and the Barrier Coating business unit. Thedefinitive agreement was signed in May 2000. At theend of 1999, AssiDomän also initiated the divestmentof the Carton Board business unit

– In 1999, Bostadsgaranti secured a concession for itssubsidiaries to pursue insurance operations, with aninsurance company registered in January 2000.

– Civitas Holding acquired subsidiary Agilia Holding’sshareholdings in listed real estate corporation Celticaduring 1999. In 1999, Agilia Holding divested all sharesin Bonifazius AB and InfraCity AB. A merger processbetween Agilia Holding and its subsidiary Vasallen wasinitiated in 1999.

– On 13 January 1999, Imego AB was registered as amicro-technology research institute for research assign-ments targeted on microelectronic systems. This enter-prise’s activities are pursued at the Chalmers Universityof Technology Vasa research park in Gothenburg.

– From autumn 1999 onwards, Loussavaara-KiirunavaaraAB, LKAB became the sole owner of transportationcorporation MTAB after acquiring 24.5 per cent of thiscorporation each from Swedish State Railways and NSBof Norway.

– In autumn 1999, Nordic Baltic Holding/MeritaNord-banken submitted a NOK 24.3 bn cash bid for Norway’sChristiania bank og Kreditkassen. The offering toshareholders was subsequently extended.

In January 2000, MeritaNordbanken changed corpo-rate name to Nordic Baltic Holding subsequent toMerita’s shareholders exchanging their shares for sharesin Nordbanken Holding. The prevailing merger and bid-ding implies that this new name may also be changed.

In March 2000, Nordic Baltic Holding made an offe-ring to the shareholders of UniDanmark regarding ashare exchange attendant to a merger with Meri-taNordbanken. Subsequent to the exchange, theSwedish Government’s holding will be 18.1 per cent.

– Sweden Post sold 15 per cent of Svensk AdressändringAB to CityMail AB. Sweden Post also initiated thedivestment of Postgirot Bank AB. In spring 1999, Swe-den Post acquired several major shareholdings in ASGAB. Subsequent to a bidding battle and negotiations,these shares were divested to Danzas (owned byDeutsche Post). Arbitration regarding the interpreta-tion of a shareholder agreement is in process.

– Teracom acquired shares in SmartCom AS and Trav-elVision AS of Norway, and additional shares in Sendai Sverige AB, Boxer TV-Access AB and Active TV iLinköping AB. In April 2000, 30 per cent of the Boxer

TV-Access AB shareholding was divested to Skandia.

– During the year, SAS divested parts of its share-holding in computer networking enterprise Equant N.V.

– Statens Premiefond AB was formed in spring 1999subsequent to parliament’s 1998 decision to form aGovernment mutual fund corporation active in the pre-mium pensions system. This corporation was liqui-dated later in the year, partially replaced by the 7th AP(National Pensions Insurance) Fund.

– In spring 1999, Telia and Telenor of Norway receivedparliamentary approval to merge. The merger process wasaborted in December.

– Vattenfall: acquisition of Finnish utilities Revon Sähköand Heinola Energia with a total of 67,000 customers in1999, followed by Keski-Suomen Valo, with 75,000 cus-tomers in early 2000. In Norway, Vattenfall acquired 49per cent of Oslo Energi, with its 385,000 customers and40 per cent of Fredrikstad Energi with 35,000 cus-tomers. A sales collaboration was also initiated withGöteborg Energi through a newly incorporated 50 percent-owned enterprise, Plusenergi AB. In Germany,Vattenfall acquired 25.1 per cent of Hamburgische Elec-tricitäts-Werke (HEW) with 900,000 energy customers,while also agreeing on a collaboration with the City ofHamburg, which owns a further 25.1 per cent. Thistransaction confers Vattenfall with board control overHEW. In the Czech Republic, Vattenfall increased itsshareholding in electricity distributor VycodoceskaEnergetica to 42 per cent; this enterprise has 676,000customers. In January 2000, Vattenfall acquired 55 percent of Electrocieplownie Warszawskie, with electricitygeneration and heating provision in Warsaw, Poland.

– In December, Vin & Sprit acquired Danish distillersDe Danske Sprit-fabrikker, and Czech vodka distillerDynybyl in May 1999. V & S acquired Coates & Co. ofthe UK in 2000, producer of the premium PlymouthGin brand. V & S also acquired the Nordic marketrights to the Lord Calvert whisky brand.

– As of 31 December 1998, AB Väg- och Baninvest wastransferred from the Swedish National Road Adminis-tration to the Government Offices (Ministry of Indus-try, Employment and Communications).

– At the end of 1998, the management of SweRoad wastransferred from AB Väg- och Baninvest to The SwedishNational Road Administration.

Other significant eventsA-banan: Arlandabanan, the Arlanda Airport to Stock-holm City centre rail link was opened for commutertraffic on 25 November 1999, with main line servicesfollowing on 10 January.

29


– A parliamentary decision permitted the SwedishNational Pharmacy Corporation to retain its sole rightsto pharmaceuticals retailing in Sweden.

– Subsequent to the autumn 1999 decision to exercisean option agreement, the Municipality of Ludvika tookover mining corporation Grängesberg Gruvor. This saleis subject to parliamentary approval.

– AB Kurortsverksamhet and subsidiary AB TranåsKuranstalt, which pursued activities at the NationalSocial Insurance Board hospitals in Nynäshamn andTranås until 1999, are in liquidation.

– From March 2000, the former AmuGruppen AB hasbeen re-named Lernia.

– LKAB was restructured from its previous geographi-cal orientation to a process-oriented model.

– OM Group: the Copenhagen Stock Exchangemigrated to the same trading system as the StockholmStock Exchange in June. In November, the Oslo StockExchange signed a letter of intent with OM StockholmExchange and the Copenhagen Stock Exchange regardingparticipation in the Norex alliance. In early 2000, OMand Morgan Stanley Dean Witter announced theirintention to jointly initiate a new, entirely electronicexchange, named Jiway. This exchange, located in London, will offer access to trading in more than 6,000US and European equities.

– In 1999, Sweden Post terminated its collaborationagreement with Nordbanken regarding banking ser-vices. This agreement ceases on 31 March 2001.

– Samhall restructured from its previous 13 regionalsubsidiaries to seven and reduced its former nine busi-ness areas to five.

– SAS International Hotels divested hotel properties inAmsterdam and London. SAS ordered a further fiveDeHavilland Q400 aircraft. SAS announced its inten-tion to divest its shareholding in British Midland toLufthansa and has also decided to acquire 10 Airbusaircraft for a total of SEK 10 bn, and to purchase newlarge aircraft for Europe and Scandinavia. This trans-action will encompass 12 Airbus A321-100s worth SEK4.5 bn. SAS incorporated an enterprise alongsideGECAS, to which 30 McDonnell Douglas MD-80 air-craft have been transferred.

– SBAB reduced its number of sales regions from fiveto four, and established a collaboration with Ikano-banken regarding intermediation of SBAB’s first mort-gage product. A major Internet mortgage routines ini-tiative is underway.

– Swedish State Railways divested subsidiaries Scand-lines AB and AB Trafikrestauranger. From 1 January2000, SJ comprises six sectors: SJ Resor (travel), SJ CargoGroup, SJ Färjetrafik (ferry routes), SJ Teknik (technol-ogy), SJ Terminalproduktion (terminals) and SJFastigheter (real estate). SJ International has been formedto enable international expansion. In March 2000, theGovernment submitted a bill regarding the re-construc-tion of Swedish State Railways as a limited company.

The Government put scheduled services on 13 linesout to tender, of which Swedish State Railways willoperate ten. In 2000, Swedish State Railways will carrytwo-thirds of total rail passenger miles, and some 40per cent of rail departures.

– In February 2000, The Swedish Maritime Authoritysold the ice-breakers Tor and Njord to a foreignacquirer. Three new offshore ice-breaking vessels willbe delivered in 2000. The Swedish Maritime Authorityhas reached an agreement regarding investments inimproved shipping lanes into Gothenburg harbour.

– Swedish Testing and Research Institute (SP): anational meteorological institute was formed in 1999.

– In spring 2000, Sveaskog relocated its head officesfrom Östersund to Kalix.

– The Swedish Motor Vehicle Inspection Companyimplemented a new district structure as of 1 January1999.

– Since the mid-1990´s, Government power grid opera-tor Swedish National Grid has been laying optical fibrelinks in the national power grid. In December 1999,newly incorporated enterprise Swedish National GridGasturbiner AB acquired six gas turbines from Vatten-fall AB, which will be used in the event of grid disrup-tions. Swedish National Grid’s construction of a DCcable to Poland was basically complete in 1999, withcommercial inauguration scheduled for May 2000.

– On 1 March 2000, Svenska Lagerhusaktiebolagettransferred its medical technology unit to the newlyincorporated Swedish Emergency Medical Systems AB(SEMS), with 36 per cent in SEMS as part-payment. Theremainder of SEMS is owned by Svensk Akut- ochKatastrofutrustning AB. Svenska Lagerhusaktiebolagetacquired a facility in Falkenberg from Vin & Sprit AB,and will take possession on 30 June 2000.

– Swedish Space Corporation received an order to pro-duce the SMART-I lunar probe.

– In June 1999, parliament granted Svenska Spel per-mission to operate international casinos in Sweden. InDecember, the Government decided the casinos wouldbe located in Gothenburg, Malmö, Stockholm and

30


Sundsvall, with the first scheduled opening in the lat-ter location in autumn 2000. Svenska Spel also pilotedwww gaming during the year.

– Swedish-Danish Bridge Connection: the land links ofthe Öresund link between Denmark and Swedenremain to be completed. Traffic opening remains onschedule, for 1 July 2000.

– In autumn 1999, SEK (Swedish Export Credit Cor-poration) signed an agreement to fund Saab’s deliveriesof JAS Gripen fighter aircraft to South Africa. Thefunding may total SEK 10 bn (USD 1.1 bn).

– Swedish Alcohol Retailing Monopoly: proposals in thealcohol policy bill regarding the establishment of newretail outlets, trial Saturday opening, extended openinghours and credit card payments were implemented.

– Telia slimmed its number of business areas from eightto five during 2000 as part of the concentration of itsorganisational structure. Operator pre-selection andnumber portability reforms were implemented inautumn 1999, resulting in Telia losing some customers.

– In 1999, Teracom initiated terrestrial digital TVbroadcasts.

– Vattenfall will hold 74.2 per cent of the corporategrouping formed by Barsebäck Kraft AB and RinghalsAB, with the remaining 25.8 per cent to be held by Syd-kraft. The Government’s remuneration to Vattenfallwill be paid over four years. A settlement between theGovernment, Vattenfall and Sydkraft ahead of the clo-sure of the Barsebäck nuclear reactor, which is subjectto a parliamentary financing decision, was reached in1999.

– Venantius and Agilia continued to divest the residualassets of collateral care company Securum.

New Managing Directors and Chairmen ALMI Företagspartner: in June 1999, Claes Ihre, for-merly Deputy Managing Director, replaced Peter Smed-man as Managing Director.

AssiDomän: Gunnar Palme became Managing Directoron 1 September 1999, replacing Roger Asserståhl, Man-aging Director from April to August (Mr. Asserståhlreplaced Lennart Ahlgren). A new Board was appointedon 14 June 1999, with Bernt Magnusson as Chairman.

The Swedish National Pharmacy Corporation: StefanCarlsson became Managing Director in March 1999;

Jan Bergqvist was appointed Chairman in May 1999.AB Bostadsgaranti: Kåre Erikssson succeeded HansSundström as Managing Director on 1 August 1999.

Civitas Holding AB: Egon Jacobsson became Chairmanin May 2000, replacing Rune Brandinger.

Nordic Baltic Holding AB: Vesa Vainio became Chair-man in April 2000, succeeding Jacob Palmstierna.

Sweden Post AB: Lennart Grabe became Managing Direc-tor on 15 February 1999. Predecessor: Ulf Dahlsten.

Samhall: Göran Gunnarsson, Managing Director fromAugust 1999, taking over from temporary ManagingDirector Göran Sevebrant, who replaced Gerhard Lars-son in spring 1999.

SBAB (Swedish National Housing Finance Corp.):Christer Malm, Managing Director from 18 March1999, succeeding Sune Jussil.

Sveaskog: Lars Sköld appointed Managing Director inJanuary 2000.

The Swedish Motor Vehicle Inspection Company: HansTivéus, temporary Managing Director from Aprilonwards, replaced Per Egon Johansson. Olof Johanssonsucceeded Stig Malm as Chairman in May 2000.

SweRoad: Gunnel Färm became Chairman in 1999.

Swedish Alcohol Retailing Monopoly: Anitra Steenbecame Managing Director on 1 September 1999,replacing Gabriel Romanus. Gunnar Larsson appointedChairman from May 1999.

Telia: Jan-Åke Kark, Managing Director from 1 March1999, succeeding Lars Berg. Mr. Kark was ExecutiveChairman of Telia-Telenor during the subsequentlyshelved merger, but was then re-appointed ManagingDirector. Lars-Eric Petersson became Chairman inJanuary 2000, after Jan Stenberg.

Vasakronan: Egon Jacobsson became Chairman in May2000, taking over from Rune Brandinger.

Vattenfall: Gerhard Larsson, Chairman from April2000, succeeding Jörgen Andersson.

V&S: Peter Lagerblad became Managing Director on 10April 2000. The Managing Director until the present,Egon Jacobsson, will remain as full-time Deputy Chair-man for one year.

32

T H E C O R P O R AT I O N S

The Corporations

The following material describes corporations withGovernment ownership. While the Central Govern-ment Offices are responsible for the qualitativedescriptions, the companies themselves are responsiblefor the quantitative information.

The descriptions encompass both limited compa-nies in which the Government's shareholding is held bythe Central Government Offices and the four Govern-ment agencies. Those limited companies owned by, forexample, the Riksbank or other authorities are notincluded. However, A-Banan projekt AB, Statens Väg-och Baninvest AB, Swedish-Danish Bridge Connectionand Swedish National Road Consulting AB, whoseshares are held by the Central Government offices butmanaged by authorities, are included.

The corporations are included in alphabetical order.Dormant companies and companies undergoing liqui-dation are included on pages 126-129.

The various key figures included depend on whetherthe relevant enterprises can be classified as operational,real estate or bank/credit market companies. Additio-nally, the number of key figures has increased comparedto the 1999 review of Government-owned companies.The definitions of key figures are given on page 131.

The Central Government Offices presents businessconcepts/objectives, a description of operations, adescription of external factors, significant events in1999 and so far in 2000, environmental initiatives,equal opportunities and a forecast for 2000 for allenterprises. An evaluation section is also included.

The corporate descriptions include informationregarding the composition of boards in 1999, but alsochanges of chairmen and chief executive officers up toand including May 2000. All board members, withdetails of board positions in Government-owned com-panies and titles, are indexed on pages 138-146.

Other information regarding the companies are avail-able from their annual reports. The relevant addresses,telephone and fax numbers, e-mail addresses and Web-site addresses are also indexed on pages 147-148.

Changes compared to the 1999 reviewIn addition to an expansion of the key figures, the Go-vernment's evaluation of each corporation and state-ments regarding each corporation's environmental and

equal opportunities initiatives are also presented.Celsius AB, Tumba Bruk AB, SAQ Kontroll AB and

Värdepapperscentralen VPC AB have been excludedfrom this year's review.

The Government's holdings in Celsius AB weredivested to Saab AB in February 2000.

Tumba Bruk AB is owned by the Riksbank and from2000 onwards, comes under the auspices of the Riks-bank's annual reports.

In June 1999, SAQ Kontroll AB was divested to DenNorske Veritas for SEK 270 m, plus a conditional ele-ment to be determined subsequently. Government bill1995/96: 141 regarding the active management of Gov-ernment corporate ownership conferred the Govern-ment with authorization to divest the Government'sshares in SAQ Kontroll AB irrespective of Parliamentaryapproval.

Svenska Statens Språkresor AB was liquidated inMay 1999; its operations were divested to AspectSpråkresor as early as in 1996.

The Government's 50 per cent holding in Värde-papperscentralen VPC AB was divested in July 1999 tofour major Swedish banks: FöreningsSparbanken, Merita-Nordbanken, SEB and Handelsbanken. Authorization todivest the Government's holdings in VPC was received inGovernment bill 1996/97: 150, the 1997 spring budget.

Imego AB, Statens Premiefond AB, SKD företagenAB, OM Group AB and Swedish National Road Con-sulting AB (SweRoad) are new to this year's review.

Central Government Offices information onGovernment-owned companiesEach year, the Swedish Central Government Officessubmit a written report on Government-owned com-panies to Parliament. From 1999 onwards, the CentralGovernment Offices have also published a more read-ily accessible version of this statement.

From 2000 onwards, the Central Government Offices willpublish quarterly reports illustrating the progress ofGovernment-owned companies.

33

G O V E R N M E N T- O W N E D C O M P A N I E S

Table of contents – the corporations

A-Banan projekt AB 34

ALMI Företagspartner AB 35

The Swedish National Pharmacy Corporation AB 37

AssiDomän AB 39

Bostadsgaranti, AB 42

Civitas Holding AB, Vasakronan AB, Vasallen AB 43

Dom Shvetsii, A/O 47

Stattum Holding 48

Göta kanalbolag, AB 49

Imego AB 51

IRECO, Institute for Research and

Competence Holding AB 53

Kasernen Fastighets AB 54

The Royal Dramatic Theatre of Sweden AB 55

The Royal Swedish Opera AB 56

Lernia AB 57

The Swedish Civil Aviation Authority 59

Luossavaara-Kiirunavaara AB, LKAB 61

Nordic Baltic Holding AB 63

Norrland Center AB 65

OM Group AB 66

Sweden Post AB 67

Samhall AB 70

SAS Group AB 72

SIS Eco-Labelling AB 74

Swedish Maritime Administration 75

SOS Alarm Sverige AB 77

Specialfastigheter Sverige AB 79

SBAB (Swedish National Housing Finance Corp.) 80

Swedish State Railways, SJ 82

Statens Väg- och Baninvest AB 85

Akademiska Hus AB 86

Sveaskog AB 88

Sakab 90

The Swedish Motor Vehicle Inspection

Company AB 91

SEK (Swedish Export Credit Corporation) 93

Swedish National Grid 94

Svenska Lagerhusaktiebolaget 96

The Swedish Environmental Management

Council AB 98

Swedish Space Corporation 99

Swedish Ship Mortgage Bank 100

Svenska Skogsplantor AB 101

Svenska Spel, AB 102

Swedish-Danish Bridge Connection AB 104

Swedish Testing and Research Institute AB (SP) 105

Swedish Travel and Tourism Council AB 107

Swedesurvey AB 108

Swedfund International AB 109

Swedish National Road Consulting AB (SweRoad) 111

Swedish Alcohol Retailing Monopoly AB 112

Telia AB 114

Teracom AB 116

Vattenfall AB 118

Venantius AB 121

V&S Vin & Sprit AB 123

Voksenåsen A/S 125

AVVECKLINGSBOLAG

Grängesberg Gruvor AB 126

Kurortsverksamhet, AB 127

SKD företagen AB 127

Statens Premiefond AB 128

Sveriges Geologiska AB 128

Zenit Shipping AB 129

Business conceptThe purpose of A-Banan projekt AB's ("A-Banan")operations is to monitor the Government's rights andobligations according to those agreements that regu-late implementation of Arlandabanan, the StockholmAirport rail-link.

EvaluationA-Banan projekt AB has served its purpose satis-factorily; revenues in 1999 were SEK 15.3 m.

OperationsA-Banan's tasks include monitoring the extension offacilities and the assembly of trains for airport com-muting traffic. Monitoring the operation of airportcommuting and the facility, plus monitoring re-pay-ments of the conditional Government loan that A-Train AB (A-Train) has received are also included.

A-Train is the enterprise that tendered for the con-struction, financing and operation of Arlandabanan.

After project completion in 1999, A-Banan tookover the facility, which was then leased to A-Train.

A-Banan is a wholly owned Government corpora-tion, with its shares managed 50:50 by the SwedishCivil Aviation Authority and the National RailAdministration.

The company's share capital amounts to SEK 10 m.A-Train is owned by the winning consortium com-prising Alstom, NCC, John Mowlem and Vattenfall.

External factorsUntil now, the number of airport commuting travelershas been slightly lower than forecast.

Significant events in 1999 and 2000Initiatives regarding the construction of Arlandabananbegan in July 1995 and were completed in November1999. Arlandabanan was opened for airport commu-ting traffic between Central Stockholm and ArlandaAirport, branded Arlanda Express, on 25 November1999, extending to regional and national rail traffic on10 January 2000.

Environmental initiativesThe project has been characterized by environmentalconsideration. Although the corporation itself has nostated environmental policy or environmental manage-ment system, it has demanded that the party utilizingthe facility and operating airport commuting does pos-sess such tools for its environmental initiatives.

Equal opportunitiesThe company currently has two employees; this smallheadcount obviates any need for an equal opportuni-ties plan.

Forecast 2000At present, discussions regarding the integration of therail-link with other commuter traffic in the Stockholmregion are in hand.

Board 1999Skogö, Ingemar, ChairmanBårström, SvenDanielson, JanFrancke, UlrikaKarlstrand, HansÖhman, HansLundin, Ulf, DeputySundberg, Kjell, Deputy

Chief Executive OfficerSundberg, Kjell

34

T H E C O R P O R AT I O N S – A - B A N A N P R O J E K T A B

A-Banan projekt AB

SEK m 1999 1998

Revenues 15.3 10.9Operating earnings before depreciation 0.0 0.4Gross margin, % 0 0Earnings after financial items n/a n/aAdjusted equity 9.9 9.8

Dividends 0 0

Total employee headcount 2 2– Number of female employees n/a n/a– Number of employees in foreign countries 0 0

Government ownership holding 100% 100%

35

T H E C O R P O R AT I O N S – A L M I F Ö R E T A G S P A R T N E R A B

Business conceptALMI is to promote the growth and renewal ofSwedish business by contributing to new enterprisestart-ups and small businesses achieving profitablegrowth through offering advisory services, skillsenhancement, financing and the creation of contacts.

EvaluationTo all intents and purposes, ALMI is considered tohave achieved established objectives.

OperationsALMI Företagspartner AB is owned by theGovernment and is the parent company of its group.Operations are pursued through 21 regional sub-sidiaries, in which generally, ALMI FöretagspartnerAB owns 51 per cent. ALMI's customers comprisesmall and medium-sized enterprises spread across allsectors with up to 250 employees. Activities build ongeographical proximity to customers and adaptationsto the varying business structure of Sweden's regions.

ALMI's core operations comprise corporate deve-lopment — developmental initiatives and advisory ser-vices in combination with loan financing for growthenterprises or potential growth enterprises. ALMI alsooffers a varied selection of general service and adviso-ry activities. The services are open to all enterprises,potential entrepreneurs and innovators.

In 1999, ALMI effected 21,000 in-depth initiativesin various enterprises, a decline on the previous yeardue to factors including the time spent on each clientcompany rising, and the increasing time devoted toseeking growth enterprises actively. Total new lendingin 1999 increased slightly compared to the 1998 fig-ures; new lending stood at SEK 776 (741) m ofapproved credits, of which SEK 610 (706) m had beendrawn down.

External factorsALMI's role is as a complement to banks and otherfinancial institutions; during the year, ALMI con-tributed to a further SEK 2,228 (2,785) m beinginjected to enterprises that received loans from ALMI.ALMI contributed to over SEK 3,000 (3,500) m inlending to small and medium-sized enterprises.

Significant events in 1999 and 2000Agreements regarding credit guarantees betweenALMI and the European Investment Fund will implyALMI being able to increase lending to small enter-prises by about SEK 300 m annually over a two-yearperiod. ALMI's Chief Executive Officer and PresidentPeter Smedman departed from ALMI in June 1999 andwas replaced by the then Deputy Chief ExecutiveOfficer Claes Ihre. Key Government economic policyplayers, including ALMI, are currently subject to

36

T H E C O R P O R AT I O N S – A L M I F Ö R E T A G S P A R T N E R A B

SEK m 1999 1998 1997 1996

Revenues (including support) 560 442 554 627of which support 1) 238 222 211 232Operating earnings before depreciation -107 -158 -69 4Gross margin, % 2) n/a n/a n/a n/aEarnings after financial items -112 255 -60 38Earnings after financial items adjusted for non-operating items 3) -112 -153 -60 38Net earnings -112 264 -54 43

Adjusted equity 4,366 4,478 4,214 4,265Net debt 4) n/a n/a n/a n/aNet debt-equity ratio 4) n/a n/a n/a n/a

Return on equity, % -2.5 6 -1 1Return on operating capital, % 5) n/a n/a n/a n/aValue-added 6) n/a n/a n/a n/a

Cash flow before investments 7) 128 31 n/a n/aNet investments 7) 187 210 n/a n/aof which R&D investments 0

Dividends 0 0 0 0

Foreign share of sales 0 0 0 0

Total employee headcount, year-end/average 547/554 571/566 562/559 545/532– Number of female employees 238/234 243/235 232/231 223/221– Number of employees located in foreign countries 0 0 0 0

Government ownership holding in parent company 100% 100% 100% 100%

1) Subsidiaries received operating support from their owners and other types of support from county administrative boards and other sources.2) Key figure not relevant to ALMI's operations because approximately half of revenues comprise support.3) Earnings for 1998 have been adjusted for gains from the sale of shares.4) Key figure not relevant; ALMI has interest-bearing liabilities of approximately SEK 50 m, while interest-bearing assets are some SEK 4,500 m. Thechange between years is insignificant.5) Key figure not relevant; almost exclusively, ALMI has interest-bearing assets.6) Key figure not relevant.7) ALMI utilizes cash flow analysis for financial corporations. Relates to the "cash flow from ongoing operations" balance, i.e. the balance before con-sidering investment activity. Figures are only available for 1999 and 1998 because legislation governing cash flow analysis was first adopted in 1999,with the comparative year 1998.

review, and in the slightly longer term, the result ofthis process may alter ALMI's purpose and organiza-tional structure.

Environmental initiativesAt present, all ALMI companies are in the process ofquality control initiatives, which include the formula-tion of environmental policies and a declaration of howenvironmental consideration is being achieved. A num-ber of companies are also operating in accordance withISO 14000 environmental management systems,although as yet, no company has received accreditation.

Equal opportunitiesA group-wide equal opportunities policy has been inuse since 1998. The parent company's Board also hasan objective for subsidiary Boards to comprise an aver-age of 40 per cent of female members by the midpointof 2001. During 1999, the group has prioritized diver-sity. The project includes the training of opinion-for-mers, plus a series of seminars regarding the signifi-cance of diversity.

Forecast 2000New lending is expected to increase to just overSEK 900 m during 2000. Looking ahead, enterpriseswith the will and ability to grow will be prioritized.

Board 1999Johansson, Arne, ChairmanElväng, KatjaEngström, GunvorJansson, IngridKronstam, KarinLindberg, Leif Sandberg, MonaStark, AnnelieHallberg, Gunilla, Employee RepresentativeHellberg, Björn, Employee Representative

Chief Executive Officer and PresidentIhre, Claes

37

T H E C O R P O R AT I O N S – T H E S W E D I S H N AT I O N A L P H A R M A C Y C O R P O R AT I O N

Business concept/objectivesThere are nearly 900 pharmacies in Sweden, all opera-ted by The Swedish National Pharmacy Corporation,which the Government has assigned to pursue pharma-ceuticals retailing according to § 4 of the legislation(1996:1152) regarding trading in pharmaceuticals andrelated activities. The Government's contract with TheSwedish National Pharmacy Corporation implies thatthis Corporation will ensure good supply of pharma-ceuticals across the country and pursue the judicioususe of pharmaceuticals. Moreover, the Corporation willbe responsible for producer-independent informationfor individual consumers, and offer similar material tothe healthcare sector. The supply of pharmaceuticalswill be effected at the lowest possible cost in distribu-tion and elsewhere.

Additionally, the Government's ownership objec-tives encompass a dividend requirement correspondingto SEK 100 m for the financial year 1999, and for theCorporation to generate sufficiently healthy earnings toprogress while retaining balanced finances and to fundits own investments.

EvaluationThe Corporation's annual NKI (satisfied customerindex) score reveals that generally, customers are satis-fied with the service and advice they receive. However,customers do think that shorter queues are an impera-tive. On this item, in 1999, the Corporation had estab-lished an objective of at least 85 per cent of prescrip-tion customers being served within ten minutes, andwith all customers being served within 20 minutes.Queuing time measurements were effected on a num-ber of occasions, with the result revealing that 85 percent of 112,000 customers had experienced queuingtimes of less than 10 minutes, with 96 per cent servedin less than 20 minutes. In 1999, the Swedish NationalPharmacy Corporation's overall NKI was 80 (on a scaleof 0-100), the same result as the previous year.

OperationsThe Swedish National Pharmacy Corporation's opera-tions are intended to satisfy needs for favorable dis-tribution of pharmaceuticals to customers and otherinterested parties; the Corporation strives to achievethis through systematic renewal and operationaldevelopment.

The Corporation has a nationwide system for dis-tributing pharmaceuticals, which is to be well adaptedto local conditions, and to satisfy standards for the safeand efficient supply of pharmaceuticals. TheCorporation is responsible for warehousing and de-livery of pharmaceuticals, which should satisfy the pre-vailing healthcare standards. On an ongoing basis, the

Corporation contributes to the production of statisticsrelating to the type and extent of pharmaceuticals con-sumption, as well as information regarding producerand distribution expenses. Moreover, the Corporationfollows progress in the pharmaceuticals sphere, bothwithin Sweden and in foreign countries, while pursuingongoing efficiency and rationalization initiatives.

As a foundation for the Corporation's long-termevolution, the Swedish National Pharmacy Corporationhas adopted an action plan that was formulated in the("Consultation") development project, a plan that hassubsequently been complemented by a series of strate-gic decisions regarding the Corporation's relationshipswith its interest groups in efforts to achieve judicioususage of pharmaceuticals through society.

External factorsThe ongoing evaluation, and formulation, of proposalsregarding pharmaceuticals subsidies and decisions asso-ciated with their reform to be reached over the nextyear are of central significance to The Swedish NationalPharmacy Corporation, as is the county councils’ take-over of the associated expenses in 2001, and its conse-quences for the Corporation. The changes to pharma-ceuticals pricing and pharmacy services will also affectthe company.

Technological progress may also imply changes todistribution, as may international progress generally.Notably, the substantial increase in the introduction ofpharmaceuticals that are new, and in many cases com-pared to current products, novel, may affect operationsboth in terms of staff skills and customer information.

Significant events in 1999 and 2000The Swedish National Pharmacy Corporation’s manage-ment function altered in 1999; Stefan Carlsson took upthe Chief Executive Officer post in mid-March. TheMay AGM appointed Jan Bergqvist as the Board's newChairman.

The cost increase of pharmaceutical subsidies wasretarded slightly by the reform of the cost ceilingimplemented from 1 June 1999 onwards when thethreshold price was increased from SEK 1,300 to1,800. Earnings growth was also influenced by the twomargin adjustments resolved from 1 November 1999and 1 February 2000 onwards respectively, which inannualized terms, imply the Corporation's gross earn-ings declining by SEK 255 m, in turn raising demandson the Corporation's financial controlling.

Environmental initiativesThe Swedish National Pharmacy Corporation pursuesan environmental policy that implies the Corporationadapting its activities with respect to the environment

38

T H E C O R P O R AT I O N S – A P O T E K E T A B

SEK m 1999 1998 1997 1996 1995

Revenues 26,130 23,419 21,508 23,431 20,584Operating earnings before depreciation 553 486 1,359 1,435 1,343Gross margin, % 2.1 2.1 6.3 6.1 6.5Earnings after financial items 401 341 1,126 1,176 576Earnings after financial items adjustedfor non-operating items 401 340 -128 516 451Net earnings 396 255 800 801 427

Adjusted equity 2,032 1,873 3,076 2,600 1,910Net debt 1,850 1,915 1,150 1,040 1,658Net debt-equity ratio, % 91.0 102.2 37.4 40.0 86.8

Return on equity, % 14.1 13.6 -11.7 5.5 22.3Return on operating capital, % 8.8 6.8 26.2 41.3 14.6Value-added 3,746 3,495 4,372 4,447 3,342

Cash flow before investments 306 1 165 329 721 825Net investments 281 237 248 215 -182of which R&D investments n/a n/a n/a n/a n/a

Dividends 100 100 1 500 300 100

Foreign share of sales 0 0 0 0 0

Total employee headcount 9,396 9,147 9,447 9,585 9,590– Number of female employees 8,587 8,388 n/a n/a n/a– Number of employees in foreign countries 0 0 0 0 0

Government ownership holding 100% 100% 66.6% 66.6% 66.6%

and for the entire environmental considerations tobecome a natural element of quality control. In order torealize these objectives, and without compromisingfunction, product safety and supply obligations, theSwedish National Pharmacy Corporation will performtasks including the following. Providing environmentalgoods and services, actively influencing all suppliers inthe environmental adaptation of goods and services,operating in premises that are constructed of, andequipped with, environmental materials, using environ-mental goods and conserving natural resources in alloperations, offering open and impartial information onthe environmental characteristics of goods and theCorporation's environmental initiatives.

The Corporation regulates the pursuit of environ-mental initiatives, and effects monitoring and report-ing. The Corporation's environmental initiatives areco-ordinated and pursued via an environmental co-ordinator within each pharmacy group, who comprisethe Swedish National Pharmacy Corporation'sEnvironmental Board. One pharmacy group hasimplemented an environmental management systemunder the auspices of EMAS. The introduction ofenvironmental management systems for other groupshas been initiated.

Equal opportunitiesThe Corporation's objective during 1999 was for aminimum of half of managers appointed in pharmacieswith a minimum of 20 employees to be women; thisobjective was achieved. The Swedish NationalPharmacy Corporation's management team comprisesfour women and four men.

An update and review of local equal opportunities

plans for 1999 was completed. The guidelines for op-erational planning in 2000 emphasized equal oppor-tunities plans.

During preparations for the 1999 equal opportu-nities plans, the increasing salary differences in favor ofmen in several staff categories became apparent. Forthis reason, the Corporation has initiated a moredetailed analysis, which will continue during 2000.

Forecast 2000The Swedish National Pharmacy Corporation expectsoverall sales gains. Although in absolute terms, grossearnings are expected to increase, margins will con-tract in percentage terms. The expected sales gainscomprised volume expansion, combined with a transi-tion towards more expensive pharmaceuticals.Apoteket AB's operating earnings are expected to bebelow the 1999 level.

Board 1999Bergquist, Jan, ChairmanEberstein, SusanneEngström Laurent, AnnaPersson, MargaretaTiusanen, BertilÖrtendahl, ClaesBehazadi, Mohammed, Employee RepresentativeSkoglösa, Britt-Marie, Employee RepresentativeJohansson, Kristina, Employee Representative, DeputySöderhjelm, Margareta, Employee Representative, Deputy

Chief Executive OfficerCarlsson, Stefan

39

T H E C O R P O R AT I O N S – A S S I D O M Ä N A B

Business conceptAssiDomän is to be the best corporation for satisfyingdemanding customer needs for efficient, wood fiber-based packaging solutions and first-class timber goods.This implies that the group's operations proceed fromthe demands set by customers and end-users.

The group's long-term strategic objective is to beEurope's leading corporation in its product areas interms of profitability, productivity, quality and skills.

AssiDomän's base is raw materials from Sweden'sforests, which based on market demands, are refinedinto wood products, strong packaging paper, paperpackaging and board. Recycled fiber is a complementto be utilized in a way that best satisfies market needs.

EvaluationIn 1999, AssiDomän's net revenues were SEK 24,497(23,993) m, up SEK 504 m, or 2 per cent, on 1998. Allbusiness areas increased revenues apart from BarrierCoating and Wood Supply & Forestry. Corrugated &Container Board's gains were largely attributable tothe acquisition of corrugated board player Esswell atthe midpoint of 1998.

Operating earnings for the year were SEK -201(1,578) m, with earnings burdened by a SEK -1,540 mwrite-down of fixed assets in the fourth quarter.Operating earnings before this write-down were SEK1,339 (1,578) m, a decline of SEK 239 m, or 15 percent, on 1998. Cartonboard and Corrugated &Container Board's operating earnings increased on the1998 figures. Earnings generated by other business

areas declined, and the deteriorated earnings forforestry operations were due partly to the spin-off ofSveaskog and lower harvesting levels in remaining for-est reserves.

OperationsAssiDomän is one of Europe's pre-eminent forestindustry corporations. Manufacture encompassespackaging paper, packaging, sawn timber goods andtimber processing. The group is also a significantowner of forest reserves, with 2.4 million hectares ofproductive forest land in Sweden.

Europe is AssiDomän's primary market, while agrowing share of consolidated paper and pulp sales aremade to what are termed overseas markets; nearly 85per cent of sales are made to customers outsideSweden. AssiDomän's base production is primarilylocated in Sweden, which apart from the forest opera-tions, comprises the manufacture of packaging paperfor corrugated board, sacks and other value-addedpackaging products, liquid and packaging board. Thegroup also runs paper and pulp mill operations in Italy,France, the Czech Republic and Slovakia. The Italianand French mills manufacture recycled fiber grades.

Some 36 per cent of AssiDomän’s paper raw mate-rials are used for internal processing into corrugatedboard and sacks. AssiDomän has some 70 conversionfacilities in 17 countries: Sweden, Belgian, Denmark,France, Italy, Croatia, Lithuania, the Netherlands,Norway, Poland, Russia, Switzerland, Slovakia, Spain,the UK, the Czech Republic and Germany.

40


The group is Europe's sack and kraft paper marketleader, occupies second position in sacks and barrier-coated products, is third in corrugated board and liq-uid packaging board and fifth in sawn timber goods.

External factorsForest product corporations have generated lowreturns for a number of years, and additionally havehighly cyclical earnings. Temporary supply anddemand imbalances have arisen as a consequence ofcapacity-enhancing investments, while capital tied-uphas simultaneously increased. With few exceptions,the ability to create value has been low. The forestproducts sector has been increasingly marginalised onthe stock market as a consequence of robust valuegrowth in other sectors, and a rising number of otherinvestment alternatives. The sector is under acutepressure to take measures that create long-term valuegrowth.

The need to exploit economies of scale and torespond to a progressively more globalised demand pic-ture has elicited a concentration of resources on tofewer segments. Accordingly, the forest productsindustry is now undergoing a marked restructuring pro-cess, with corporations concentrating and focusingtheir activities. This process has accelerated over thelast year, with a considerable number of acquisitionsand divestments, plus mergers and buy-outs.

Significant events in 1999 and 2000AssiDomän subsidiary Sveaskog AB, with some900,000 hectares of productive forest reserves, wasspun off to shareholders in 1999. Coincident with thistransaction, the Swedish Government offered toexchange parts of its shareholding in AssiDomän forSveaskog shares. After securing acceptance from some99 per cent of shareholders, the Government's owner-ship holding declined from 50.2 per cent to approxi-mately 35 per cent.

AssiDomän's June 1999 Annual General Meetingsaw the appointment of a largely new board, withBernt Magnusson as the new Chairman. Gunnar Palmetook up position as Chief Executive Officer on 1September 1999.

Initiatives to improve profitability and efficiencythrough an over-arching program of profitabilityenhancing measures was intensified in 1999, and hasstarted to pay off. In the first quarter of 2000, earn-ings after financial items increased by 210 per cent onthe corresponding period of the previous year.

An internal evaluation of AssiDomän's future focusand operational portfolio was initiated in 1999. Theobjective is to identify competitive structures, and tocreate shareholder value. All AssiDomän's elementshave been evaluated with the intention of divining theoptimal alternative, which may encompass both opera-tions being retained for continued development andexpansion, or the creation of new structures through

mergers or divestments. In late 1999, AssiDomän ini-tiated the sale of the Cartonboard business unit,which the corporation assesses to enjoy better deve-lopmental prospects in a structure other than withinAssiDomän, whose other operations only integratewith Cartonboard to a limited extent. This sales pro-cess is expected to be complete before summer 2000.

As of 1 January 2000, AssiDomän had divestedNiab Hestra AB and Hestra sawmill to the Vida ABsawmilling group.

In early February 2000, AssiDomän and FrantschachAG signed a letter of intent implying AssiDomän mak-ing a cash sale of the Dynäs and Sepap papermills, allsacking factories and the Barrier Coating business unit.The final agreement was signed in May 2000. Thistransaction is consistent with AssiDomän's efforts tofocus activities. AssiDomän's capital structure will beadapted subsequent to the completion of prevailingdivestments and the decision regarding future focus.The Board's intention is that the majority of fundsraised from sales will be transferred to shareholderswith share buy-backs, redemptions or dividends allunder consideration.

Environmental initiativesAssiDomän assigns a high priority to environmentalissues; the corporate environmental policy containsoverall guidelines regarding sustainable forestry andthe protection of biological diversity, constantimprovement, conservation of resources, considerateprocesses, environmental standards for suppliers,waste minimization, recycling and natural cycles.

Activities in Sweden including forest activities(which are FSC and ISO 14001 accredited and EMASregistered) correspond to 53 per cent of consolidatednet revenues. If activities outside Sweden are alsoincluded, this proportion amounts to 64 per cent. Theintroduction of environmental management systemshas resulted in structured and goal-oriented environ-mental initiatives, also implying strengthened groupprofitability. The key figures for sustainable develop-ment and environmental efficiency indicate thatAssiDomän's environmental initiatives have resulted inimprovements in several prioritized areas. In recentyears, significant environmental investments have beenmade in process and purification equipment. It is fairto conclude that the group's activities have maintainedhigh environmental standards.

The collaboration between AssiDomän and theWWF (World Wildlife Fund) to promote sustainableforestry was recognized as the best industrial environ-mental initiative in the Swedish part of "The EuropeanEnvironment Prize 2000" competition.

Equal opportunitiesEqual opportunities initiatives in AssiDomän are foun-ded on a dedicated equal opportunities policy statingthe group's ambition to strive actively for measures to be

41


taken in its workplaces so that they are suitable for menand women. The policy also stipulates that the group isto strive to increase the number of women in manage-ment positions, and for no salary discrimination on gen-der grounds.

Proceeding from the policy and applicable legislation,each unit has an equal opportunities plan. The groupactively pursues the adaptation and development ofequal opportunities plans with the intention of attract-ing more women to work in the company, and to offerthem the opportunity to progress within the group.

Forecast 2000The positive cyclical progress that characterized thefinal months of 1999 has sustained into 2000. Progressacross remains solid across the board, now also encom-passing the key Western European economies to agreater extent than previously. The current state of themarket is assessed to imply positive price and volumeperformance this year for the majority of the group'sproducts.

Overall, this implies very good prospects for favor-able progress in 2000. Ongoing profitability-enhancingmeasures are amplifying the positive earnings trend. Board 1999Magnusson, Bernt, ChairmanBjörnsson, BjörnCarlsson, HansDuveblad, GunnelHelgesson, Lars-ÅkePalme, GunnarRos, Carl WilhelmTegnér, PerJohanson, Roland A, Employee RepresentativeJohansson, Roland N, Employee RepresentativePettersson, Lars-Olof, Employee RepresentativeEriksson, Torbjörn, Employee Representative, DeputyJönsson, Lennart, Employee Representative, DeputyUtterström, Gösta, Employee Representative, Deputy

Chief Executive OfficerPalme, Gunnar (from 1 September 1999)

SEK m 1999 1998 1997 1996 1995

Revenues 24,497 23,993 20,725 18,548 21,016Operating earnings before depreciation 3,302 3,428 3,366 2,987 5,484Gross margin, % 13 14 16 16 26Earnings after financial items -701 1,004 1,462 1,713 4,346Net earnings -863 710 772 1,407 3,418

Adjusted equity 13,914 15,777 15,623 15,499 14,707Net debt 8,420 9,600 6,979 2,278 2,298Net debt-equity ratio, multiple 0.64 0.61 0.44 0.15 0.16

Return on equity, % (exc. write-down) 3 5 5 9 26Return on equity, % (inc. write-down) neg 5 5 9 26Return on operating capital, % n/a n/a n/a n/a n/a

Value-added 8,534 8,565 n/a n/a n/aCash flow before investments 1) 3,125 2,377 3,156 2,880 3,615Net investments 903 3,439 6,485 1,889 4,219of which R&D investments 2) 41 45 79.6 28 22

Dividends 710 651 621 622 592

Foreign share of sales, % 84 82 80 79 77

Total employee headcount 17,060 17,543 16,914 13,648 13,119– Number of female employees 3,133 3,447 3,459 2,225 2,140– Number of employees in foreign countries 11,210 11,261 10,374 6,893 6,203

Government ownership holding 35.5% 50.2% 50.2% 50.2% 50.4%1) 1995-1997, according to Annual Reports. In 1998 and 1999, the Swedish Financial Accounting Standards Council’s recommendation RR 7 regard-ing accounting of cash flows was applied.2) Excludes buildings.

42

T H E C O R P O R AT I O N S – A B B O S T A D S G A R A N T I

Business concept/objectivesBostadsgaranti is to provide guarantees for newly con-structed single-family houses and tenant-owner apart-ments, and to pursue the diligent and skilled implemen-tation of tenant-owner housing projects by establishingguidelines and information for housing producers.

EvaluationIn 1999, guarantees issued increased compared to theprevious year.

OperationsThe corporation was formed in 1962 by the Swedishconstruction sector organization Svenska Byggnads-entreprenörföreningen (now named Sveriges Bygg-industrier). Originally, operations comprised the provi-sion of guarantees for new construction and conversionof tenant-owner apartments. In 1976, a 10-year gua-rantee for purchasers of newly constructed single-fam-ily houses was introduced. In 1984, this guarantee wastransformed into a condition for Government loans(and later for interest subsidies) to owner-occupiersand single-family houses with rights of tenant-owner-ship. Coincident with this reform, the Governmententered the company as a 50 per cent owner.

The strategy is to attain high standards in terms ofscreening construction enterprises, projects and docu-mentation in order to provide guarantees that offergood consumer protection for purchasers of new te-nant-owner housing and owner-occupiers, while main-taining modest organizational resources.

External factorsDuring 2000, the majority of Bostadsgaranti's activi-ties will be transferred to a newly incorporated sub-sidiary, Försäkringsaktiebolaget Bostadsgaranti. Thissubsidiary's guarantee and insurance products will beoffered in competition with several other insurancecorporations active in the same sphere.

Single-family house guarantees of the typeBostadsgaranti offers constitute a condition for recei-ving interest subsidies for newly constructed owner-occupied housing. However, no interest subsidies areissued for such housing constructed from 1 January2000 onwards, and thereby, one incentive for issuingsingle-family housing guarantees has been eliminated.For this reason, the Minister of Justice has appointedan Inquiry that will submit proposals regarding howconsumer protection for house-buyers can be ensured.This Inquiry will be complete in September 2000.

Significant events in 1999 and 2000In 1999, Bostadsgaranti received permission to pursueinsurance activities through a proposed subsidiary. This

insurance corporation was registered with the SwedishFinancial Supervisory Authority in January 2000.

Environmental initiativesBostadsgaranti has not formulated an environmentalpolicy.

Equal opportunitiesThe corporation strives for an even distributionbetween the sexes amongst its personnel.

Forecast 2000Housing construction saw a substantial upwardturnaround during the first half-year 1999. In its bud-get bill for 2000, the Government perceives goodprospects for a sustained firm rally of housing con-struction this year. Against this background, it is rea-sonable to assume that guarantee issues will increasein 2000 compared to the previous year.

Board 1999Brink, Stig, ChairmanEriksson, LennartHagberg, MichaelHansén, MårtenLarsson, SvenLönnberg, AndersWesterståhl, KristinaDrugge, Gun, DeputyKruuse, Thomas, DeputyQueckfeldt, Ewa, DeputyRingdahl, Thomas, DeputySchönning, Eje, DeputyThor, Anders J, Deputy

Chief Executive OfficerSundström, Hans (up to and including 31 July 1999)Eriksson, Kåre (from 1 August 1999 onwards)

SEK m 1999 1998 1997 1996

Guarantee revenues 14.6 10.4 19.5 15.4Earnings before guarantee losses 7.8 3.3 6.4 3.0Guarantee losses 0 0.9 -1.3 4.5Operating earnings 0 -13.7 -16.7 -15.6Net earnings 10.4 0.5 0.5 0.5

Total assets 214.3 207.5 186.8 171.9Adjusted equity 15.3 4.9 4.4 3.9Return on equity, % 103.0 10.8 12.0 13.7Income/costs ratio excluding credit losses 0.7 0.5 0.5 0.6Dividends 0 0 0 0

Total employee headcount 8 8 8 8– Number of female employees 3 3 3 3– Number of employees in foreign countries 0 0 0 0

Government ownership holding 50% 50% 50% 50%

43

Civitas Holding AB is a Government holding companyfor the Ministry of Finance's ownership of real estatecorporations. The company changed corporate namefrom Vasakronan Holding AB. At present, CivitasHolding AB has two subsidiaries — Vasakronan ABAgilia Holding AB — and part-ownership in the quot-ed real estate corporation Celtica AB.

Board 1999Brandinger, Rune, ChairmanKylberg, Lars V, Deputy ChairmanBryngelson, HåkanEngman, GerdIsraelsson, MatsLjungh, ClaesGustafsson, Marianne, Employee RepresentativeKjällbring, Rolf, Employee Representative

Civitas HoldingDuring 1999, Civitas Holding AB acquired AgiliaHolding AB's shareholding in Celtica AB for a bookvalue of SEK 39 m.

Agilia Holding ABThe subsidiary Agilia Holding AB was formed as adedicated equity management corporation to handlethe real estate-related assets from Securum that hadbeen transferred to the Civitas Holding group.

In 1999, Agilia Holding AB divested all shares inInfraCity AB, Bonifazius AB and Celtica AB. Theresidual assets comprise convertibles in PEAB with abook value of SEK 67 m, plus EPI BV with two pro-perties in Germany with a book value of SEK 0 m.

The year 1999 also marked the start of a merger pro-cess between Vasallen AB and Agilia Holding AB. Thistransaction is expected to be complete in spring 2000.

T H E C O R P O R AT I O N S – C I V I T A S H O L D I N G A B

Civitas Holding AB

SEK m 1999 1998 1997 1996 1995

Revenues 2,441 2,203 2,875 3,172 3,449Operating surplus 1,358 1,177 1,455 1,844 2,071Depreciation of real estate -354 -324 -413 -398 -406Operating earnings 994 2,041 2,414 1,416 1,535Capital gains/losses on real estate sales 64 1,303 1,528 139 63Earnings after financial items 455 1,782 1,846 362 686Net earnings 333 1,750 1,194 253 494

Adjusted equity 9,770 9,861 9,610 6,803 6,850Market value of real estate - - - - -Book value of real estate 18,501 16,850 15,696 16,817 17,951Property yield 7.3 7.0 9.3 11.0 11.5Net debt 8,469 6,273 7,383 8,619 9,446Adjusted equity ratio, % n/a n/a n/a n/a n/aCash flow before investments 830 1,555 -1,179 - -Net investments including real estate acquisitions/divestments n/a -1,992 605 973 -409

Dividends 164 411 1,160 300 300

Total employee headcount 386 411 790 886 953– Number of female employees 120 123 205 197 209– Number of employees in foreign countries 0 0 0 0 0

Government ownership holding 100% 100% 100% 100% 100%

CIVITAS HOLDING AB

VASAKRONAN AB

PEAB AB

VASALLEN AB

CELTICA AB

EPI BV

AGILIA HOLDING AB

44

T H E C O R P O R AT I O N S – C I V I T A S H O L D I N G A B / V A S A K R O N A N A B

Business conceptAs a real estate corporation, Vasakronan's purpose is toachieve the optimal sustainable total return and valuegrowth on shareholders' equity. Vasakronan's vision isto be Sweden's leading real estate corporation as aninvestment alternative, landlord and employer.

As an investment alternative, Vasakronan will satis-fy those demands made of a reputable quoted corpora-tion, and will be perceived as the best investmentamong Sweden's real estate corporations.

As a landlord, Vasakronan will be recognized as themost highly skilled real estate owner.

As an employer, Vasakronan is to offer the bestdevelopmental opportunities and working environmentfor its personnel it in the sector.

Vasakronan's business concept is to be the leader onselected markets for commercial premises in Sweden —primarily offices. Vasakronan offers efficient premisesand customized services, with the intention of achievingsatisfied and loyal customers. With its high skills levels,constant improvement and customer collaboration,Vasakronan is to achieve a secure market position withhealthy earnings and value performance.

EvaluationVasakronan's over-arching measure of financial perfor-mance is return on adjusted equity, which incorporatesoperating surpluses, earnings from real estate divest-ments, as well as changes to the market value of theentire real estate holding. Required rates of return arenot a fixed objective, but instead change at a pace withvariations in inflation and interest rates. The requiredrate of return is the risk-free interest rate, defined asfive-year government bonds plus five percentage points.In 1999, this required rate of return was 9.5 per cent,with an actual return of 18.2 per cent.

As of 31 December 1999, Vasakronan's equityratio was 38 per cent. The equity ratio target hasbeen defined against the background of real estatemanagement as a capital-intensive activity; to copewith major investments and the cyclical elements inthe sector, financial strength is necessary. The objec-tive is to achieve a visible equity ratio with a long-term minimum level of 35 per cent.

The target dividend is to attain a dividend pay-outratio corresponding to 3 per cent of adjusted equity,although dividends shall comprise a maximum of 50 percent of earnings after financial expenses with deduc-tions for standard rate tax. A dividend of SEK 157 mwas proposed for 1999, equivalent to 50 per cent ofearnings after financial expenses.

OperationsVasakronan's strategy is oriented both functionally andgeographically.

Functionally, the real estate holding is concentrated oncommercial premises, and geographically, on those loca-tions in Sweden with healthy developmental potential.Vasakronan concentrates on attaining a secure local posi-tion with premises primarily in city-center locations.This implies that the real estate holding incorporates size-able elements of retail premises and malls. A secure localposition confers the opportunity to offer customers alter-native premises within the real estate holding.

Vasakronan is active in Stockholm, Malmo andGothenburg, plus a further 12 cities: Lund, Kristianstad,Växjö, Linköping, Jönköping, Karlstad, Örebro, Uppsala,Gävle, Sundsvall, Umeå and Luleå.

External factorsThe enhanced growth the Swedish economy hasachieved has implied firmer demand on the market forrental premises, primarily in the high-growth regions.The cyclical phase associated with limited new pro-duction has created accentuating demand pressure forcommercial premises in central locations. Thisprogress is now spreading to areas outside city centers.Significant rent increases are apparent in major citiesand university towns, with Stockholm making thestrongest progress.

Based on a favorable rental market, a brisk economyand low interest rates, the Swedish real estate marketalso made strong progress in 1999, urged on by manycorporations focusing on their core activities, implyingan abundance of real estate transactions creating liq-uidity in the market. Accordingly, the real estate mar-ket has been robust in the majority of locations withhealthy growth. Stockholm has stood out as one of theworld's most active markets.

The market situation in major cities has createdscope for some new production of commercial premises.

There were fewer buy-outs, mergers and acquisi-tions in 1999 than in 1998 but in 2000, the tempo ofrestructuring has stepped up markedly, with the crea-tion of larger, and what for investors, are more attrac-tive constellations.

Significant events in 1999 and 2000In 1999, Vasakronan's operations were concentrated onthe consolidation of acquisitions, new leasing andrenegotiation, the enhancement of skills and customerorientation, brisk property development and Y2Kadjustments.

45

SEK m 1999 1998 1997 1996 1995

Revenues 2,380 2,110 2,396 2,832 2,858Operating surplus 1,337 1,131 1,093 1,403 1,541Depreciation of real estate -347 -314 -283 -305 -301Operating earnings 1,018 1,573 2,686 1,183 1,248Capital gains/losses on real estate divestments 63 834 2,008 144 61Earnings after financial items 437 1,114 2,225 262 637Net earnings 321 830 1,614 191 459Adjusted equity 7,593 8,254 7,504 5,986 6,095Market value of real estate 27,200 22,280 17,810 n/a n/aBook value of real estate 18,159 16,508 12,777 14,771 14,848Property yield 7.7 7.7 7.9 9.5 10.5Net debt 10,034 7,183 1,753 7,276 7,300Adjusted equity ratio, % 47 52 51 n/a n/aCash flow before investments 808 185 -113 n/a n/aNet investments including real estate acquisitions/divestments -2,469 -3,463 3,837 -80 -164Floor area (000 m2) 2,674 2,444 2,312 3,268 3,341Area-based vacancy (000 m2) 214 196 208 327 267Dividends 157 982 330 1,029 450Total employee headcount 348 321 592 865 910– Number of female employees 108 103 142 190 n/a– Number of employees in foreign countries 0 0 0 0 0


T H E C O R P O R AT I O N S – C I V I T A S H O L D I N G A B / V A S A K R O N A N A B

Vasakronan's structure has been altered by a seriesof real estate transactions, with a total of SEK 1.8 bnof properties being acquired. Vasakronan divested SEK0.3 bn of real estate, primary non-strategic housing.Substantial investments and renovation initiatives inthe existing holding have been undertaken, amountingto a total of just over SEK 1.2 bn.

Vasakronan's initial portfolio in 1993 had a value ofjust over SEK 17 bn. Since 1996, the corporation hasturned over real estate with a value of SEK 20 bn: SEK10 bn of divestments and SEK 10 bn of acquisitions.All properties of a specific purpose or character havebeen transferred to the wholly government-ownedcompany Specialfastigheter AB, with the present hol-ding entirely exposed to competition.

Vasakronan's extensive restructuring has altered itscustomer mix. Vasakronan has an increasing share ofretail premises, with tenants such as high-growthenterprises within sectors including finance, IT, mediaand consulting placing demands that differ fromVasakronan's sphere of government tenants, which nowgenerate less than 50 per cent of rental revenues.

Environmental initiativesVasakronan's environmental policy is to pursue realestate business that satisfies the conditions for a long-term sustainable society in collaboration with the cus-tomer. Apart from observing legislation and sectoragreements, this implies: reducing the dependency onfossil fuels, phasing out non-biodegradable and artifi-cial substances, conservation of resources, strivingtowards healthy indoor environments and the pursuitof environmental initiatives that form a part ofVasakronan's quality programs.

Vasakronan is in preparation for ISO 14001 envi-ronmental accreditation in 2001.

Equal opportunitiesVasakronan establishes an annual equal opportunities

plan to promote this issue. Of total staff, 31 per centare women and 69 per cent men. Traditionally, thenature of the work Vasakronan performs has impliedan uneven distribution between the sexes. Vasakronanis striving consciously to achieve a greater balancebetween the number of women and men, which alsoapplies to the number of women in management posi-tions.

Forecast 2000As a consequence of renegotiations and reducing vacan-cies, rental revenues will increase. Operation and main-tenance expenses will remain at an approximatelyunchanged level. Depreciation is increasing because ofinvestments and real estate acquisitions implemented.In 1999, administration and marketing implied a posi-tive non-recurring effect relating to the dissolution ofpension liabilities. The net financial position is growingbecause of higher borrowing, dependent on acquisi-tions implemented. Vasakronan forecasts that earningsafter financial items, with the existing holding andbefore earnings generated by real estate divestments,will amount to approximately SEK 400 m.

Board 1999Brandinger, Rune, Chairman until April 2000Jacobsson, Egon, Chairman from April 2000Kylberg, Lars V, Deputy ChairmanBryngelson, HåkanDanell, GeorgEngman, GerdLilja, MariaLjungh, ClaesLydahl, RolfGustafsson, Marianne, Employee RepresentativeKjällbring, Rolf, Employee Representative

Chief Executive OfficerBryngelson, Håkan

46

T H E C O R P O R AT I O N S – C I V I T A S H O L D I N G A B / V A S A L L E N A B

Business conceptVasallen develops and upgrades former defense realestate to new applications with the intention of crea-ting value growth so that, ultimately, the premises canbe divested on commercial terms. New premises are tobe the best alternative available in terms of functional,environmental and financial considerations.

EvaluationVasallen AB should be considered as an investmentproject within the property development sphere. Asyet, the corporation remains in a very early stage of thevalue-added processes of its individual property pro-jects, and accordingly, the first occasion on which anevaluation is possible is during 2000, when the marketvalue of these premises can be set against their capitalcost. Those parts of the holding affected by theGovernment's resolution on defense in 2000 will beevaluated subsequently.

OperationsVasallen is to evolve into a real estate corporation,which is to rapidly become a significant player on itslocal markets through individual subsidiaries. Vasallenis active in: Östersund A 4, Tullinge F 18, Linköping I4/A 1, Borås I 15, Ystad Lv 4 and Uddevalla I 17.

The acquired defense premises are extensive bothin terms of buildings and land areas, and accordingly,Vasallen has opted to formulate new overall anddetailed planning in close collaboration with each indi-vidual municipality. The objective is to create the rightprospects for the new usage both of existing buildingsand new building permits. The focus of propertydevelopment work varies between spheres, but pri-marily, value can be created within the training, cul-tural, research and development, office, housing, com-munity service and industrial spheres.

Project values to develop these activities amount toSEK 735 m. The biggest projects so far resolved areconstruction for Mid-Sweden University in Östersundwith a value of some SEK 300 m and construction forthe Rättscentrum legal center in Linköping, worthapproximately SEK 350 m.

External factorsThe favorable progress the Swedish economy is makinghas contributed to increasing investment activity on

the Swedish real estate market and lower vacancies inreal estate corporations' holdings. The accentuatingdemand for premises has been expressed in increasedrent levels and rental revenues for real estate corpora-tions. Property values have risen sharply in recentyears. During the realignment of defense facilities forcivil usage, Vasallen operates in full competition withother real estate players in the relevant locations.

Significant events in 1999 and 2000Vasallen AB and Mid-Sweden University have signed arental agreement. The majority of the former A4 regi-mental barracks in central Östersund are to be con-verted into a state-of-the-art university. The first con-struction phase was initiated in 1999.

Environmental initiativesVasallen's active environmental initiatives imply thatin collaboration with its customers, the corporationwill pursue operations that are consistent with thesustainable society. This environmental policy is linkedto The Natural Step Foundation's four systemic condi-tions. In other words, Vasallen is striving towardsreducing its dependency on fossil fuels, phasing outnon-biodegradable and artificial substances, con-tributing to maintaining the long-term productioncapacity and diversity of nature, as well as reducingthe consumption of energy and materials.

Equal opportunitiesVasallen has an action plan for achieving a more evendistribution between women and men throughout thecompany. A more even distribution between the sexesis always considered when recruiting.

Forecast 2000During 2000, Vasallen will continue to lay the founda-tion of favorable property development by beingengaged in the planning of former defense premises inYstad, Borås, Uddevalla, Linköping, Tullinge andÖstersund. Assessments at the present stage suggestthat as a whole, it may take 5-15 years to complete thedevelopment initiatives.

Ongoing investments previously resolved relating toconversion, extension and new construction amount toapproximately SEK 725 m. Additionally, the anticipa-ted further investment decisions are equivalent to a

47

value of some SEK 325 m during this year. Vasallen'sfive-year plan suggests an investment requirement ofnearly SEK 2 bn.

Vasallen is negotiating with The SwedishFortification Corps regarding acquisitions of a further10 or so defense facilities in accordance with the pro-posed Parliamentary resolution on the defense sectorin 2000.

BoardBryngelson, Håkan, ChairmanJonsson, Jan-PeterLindström, BjörnLinglöf, JanNetz, BoSandesten, Stefan, Westling, RickardKull, Jan-Inge, Employee Representative

Chief Executive OfficerJonsson, Jan-Peter

T H E C O R P O R AT I O N S – C I V I T A S H O L D I N G A B / V A S A L L E N A B O C H A / O D O M S H V E T S I I

SEK m 1999 1998 1997

Revenues 47.8 80.7 11.9Operating surplus 10.1 38.3 6.1Depreciation of real estate -3.3 -3.2 -0.4Operating earnings -29 5 -0.4Capital gains/losses on real estate divestments 1.4 0 0Earnings net of financial items -33.1 1.2 -1.2Net earnings -23.9 0.8 0.4

Adjusted equity 113.3 113.1 12.4Book value of real estate 172.6 152.1 145.9Property yield 6.2 25.7 45.6Net debt 225 60 142Adjusted equity ratio, % 29.6 54.2 7.1Cash flow before investments -53.8 15.2 4.8Net investments including real estate acquisition/divestments 126.9 32.7 149.3

Floor area 320,000 323,000 327,000Area-based vacancy1) 59% 60% 5%

Dividends 0 0 0Total employee headcount 38 34 6Number of employees in foreign countries 0 0 0

Government ownership holding 100% 100% 100%1)A high proportion of floor area will not become available to let untilafter conversion.

Business conceptA/O Dom Shvetsii manages a single property —Sverige Huset (Sweden House) in St Petersburg,Russia.

OperationsA/O Dom Shvetsii is a Russian limited company 49 percent owned by Skanska, 36 per cent owned by theSwedish Government and 15 per cent by the City of StPetersburg. This corporation has shareholders' equityof approximately SEK 20 m. A/O Dom Shvetsii ownsSverige Huset and has a rights of disposal over theassociated land for 49 years. The property has some5,000 m2 of lettable floor space divided between some3,500 m2 of offices and 1,500 m2 of housing. TheSwedish Consulate-General, which rents about one-third of the property, is the biggest single tenant.

External factorsThe demand for premises from new and establishedenterprises is dependent on progress on the Russianmarket.

Environmental initiativesThe company has no environmental initiatives.

Equal opportunitiesThe company has no employees.

Forecast 2000 A/O Dom Shvetsii's operations are entirely dependenton the scale of demand for premises in St Petersburg.At present, Sverige Huset has occupancy of approxi-mately 80 per cent.

Board 1999Lundberg, Gunnar, ChairmanAlvemur, ChristerAvdeev, Kirill VBergman, JohanGunnarsson, Carl-Johan

Chief Executive OfficerKoppeli, Risto

A/O Dom Shvetsii

48

T H E C O R P O R AT I O N S – S T AT T U M H O L D I N G

Stattum HoldingObjectiveThe company's purpose is to manage selected share-holdings.

EvaluationSales revenues from the divestment of the company'sshareholdings in Pharmacia & Upjohn Inc. amounted toSEK 15.3 bn, implying capital gains of approximatelySEK 10.8 bn. Thereby, the Government has ended allownership in the pharmaceuticals industry.

Sales revenues from the divestment of the compa-ny's holdings in Celsius AB stood at SEK 769 m, imply-ing capital gains of approximately SEK 590 m. The salewas effected at a price of SEK 179 per share.Coincident with the initial public offering of Celsiusin 1994, the Government sold off shares to the gene-ral public at a price of SEK 100 per share. The sale ofthe Celsius AB holding to Saab AB/BAe has contribu-ted to the restructuring of the Swedish and interna-tional defense industries through the creation of acompetitive and hard-hitting corporation with goodinternational collaboration prospects.

OperationsThe Stattum group encompasses the dormant sub-sidiaries Statsföretag AB and AB Fortia. Apart fromthese subsidiaries, as of 31 December 1999, the com-pany also comprised holdings in Celsius AB, FastighetsAB Varvsudden, AssiDomän AB and Sveaskog AB. Thecompany's holdings in AssiDomän AB correspond to 3per cent of the capital of the company. This corporationis temporarily managing the Government's Sveaskogshares during the compulsory redemption of theremaining outstanding shares. This holding corre-sponds to 99 per cent of the capital of Sveaskog AB.

External factorsThe Stattum group gained its current corporate namein 1993 when SIB-Invest changed corporate name toFörvaltningsaktiebolaget Stattum. Subsequently,Stattum has been a concentrated management corpora-tion for long-term shareholdings and shareholdingsintended for liquidation.

Significant events in 1999 and 2000In January 1999, all Government shares, correspondingto some 7 per cent of the total capital of Pharmacia &Upjohn were divested. All shares in Celsius AB weredivested to Saab AB/BAe in March 2000, a holding cor-respon-ding to approximately 15 per cent of the totalcapital of Celsius AB. Simultaneously, the SwedishGovernment disposed of all directly owned Celsius ABshares, corresponding to 10 per cent of the capital.

In March 2000, all shares in Fastighets AB Varvsudden(the Landskrona docks) were sold off to ÖresundsvarvetAB, a holding equating to some 26 per cent of the totalcapital of that corporation. Sales revenues were aboutSEK 2.6 m and generated capital losses of approximatelySEK 7.4 m.

Environmental initiativesThe company has no environmental policy.

Equal opportunitiesThe company has no employees and therefore, no equalopportunities plan.

Forecast 2000Subsequent to the divestments effected, the share-holdings in dormant subsidiaries Statsföretag AB andAB Fortia, plus holdings in AssiDomän AB andSveaskog AB are the only residual shareholdings. Thecompany has demanded compulsory redemption of theoutstanding shares in Sveaskog AB.

Board 1999Rekke, Lars, ChairmanEriksson, Per OlofMagnusson, BerntNilsson, LennartSprängare, BjörnStenberg, Jan

Chief Executive OfficerDetter, Dag

SEK m 1999 1998 1997 1996 1995

Revenues 0 0 0 0 -0,3Operating earnings before depreciation -9.7 -3.3 -121 -0.6 -0.3Gross margin, % neg neg neg neg negEarnings after financial items 11,716 817 218 314 17Earnings after financial items adjusted for non-operating items 11,716 817 218 314 17Net earnings 8,635 772 174 276 17Adjusted equity 13,076 5,440 5,594 5,745 6,019Net debt -15,249 -444 -278 -319 -781Net debt-equity ratio - - - - -Return on equity, % 66 14 3 5 0Return on operating capital, % neg neg neg neg negCash flow before investments 8,635 1,058 13 -163 49Net investments n/a -904 11 165 0Dividends 11,000 1,000 925 325 550Total employee headcount 0 0 0 0 0


49

T H E C O R P O R AT I O N S – A B G Ö T A K A N A L B O L A G

Business conceptAB Göta kanalbolag is to nurture and develop the GötaCanal as Sweden's most significant cultural construc-tion feature, subject to high quality and environmentalconsiderations. The Göta Canal is to be Sweden's pre-eminent tourist waterway and travel destination.

EvaluationFuture responsibility for AB Göta kanalbolag waseffected by the Parliamentary resolution to re-con-struct Domänverket (The Swedish National ForestEnterprise) as a limited company. Parliament con-cluded that it was in the national interest to renovateand operate the Canal in the future to optimize itsvalue as a cultural construction feature and touristattraction. Using Government funds, and other mea-sures, AB Göta kanalbolag has enhanced the value ofthe Canal as a cultural construction feature andtourist attraction.

OperationsSince 1 July 1992, AB Göta kanalbolag has been awholly Government-owned company. Its developmentefforts are made in close collaboration with relevantmunicipalities, county councils and county adminis-trative boards adjacent to the Göta Canal itself. Theprimary activity is operating the Canal, while addi-tionally, AB Göta kanalbolag pursues real estate andforest management, operates marine repair wharves,undertakes contract work, dry-docking, while alsoorganizing exhibitions and museum activities.

AB Göta kanalbolag's objective is to re-create theCanal and adjacent environment in its original condi-tion, within the bounds of reasonable possibility, tocreate long-term returns on its forest and real estateassets without consuming the company's capital, to

increase the selection of service activities and experie-nces alongside the canal, to utilize a customer-orien-ted organizational structure to offer high service levelsshowing consideration to the environment, nature andcultural values associated with the Canal, to attainsatisfied customers and persuade visitors to return,while also offering the maximum number of visitorsaccess to recreation and active outdoor life in theCanal area.

Significant events in 1999 and 2000In 1999, passenger traffic increased by 15 per cent,while leisure vessel traffic declined by 3 per cent.Overall, Canal traffic revenues rose by 4 per cent toSEK 6 m. The probable reason for deteriorated leisurevessel traffic lies in the curtailed opening introducedin 1999. Canal opening will increase during 2000,while marketing initiatives will be pursued in collabo-ration with all municipalities adjacent to the Canal,the County Administrative Boards of Östergötlandand Västra Götaland and the County Councils of theÖstergötland and Västra Götaland regions, and localbusiness. This project will run for three years, withthe parties involved making annual investmentsapproaching SEK 4.5 m.

A travel magazine was published in January 2000intended to stimulate activity on and around the Canalfurther.

In the construction sector periodical Byggindustrin,the Swedish population voted the Göta Canal asSweden's construction project of the Millennium.

Environmental initiativesThe company has an environmental policy comprisinga working plan for pursuit of the policy within thecompany.

50

Equal opportunitiesThe company has had an equal opportunities plan, eva-luated and re-formulated on alternate years, since 1996.

Forecast 2000In 2000, Canal opening will increase, with substantialinitiatives on marketing the Canal and activities along-side it.

Board 1999Janérus, Kaj, ChairmanBerggren, Christer, vice Chairman

Andersson, ElvingModin, Anita Svenheim, Lars-OlofSöderlund, ThordWärn, RagnhildJohansson, Billy, Employee RepresentativeLöfström, Britt-Marie, Employee RepresentativePettersson, Leif, Employee Representative, DeputyÅhfeldt, Per-Olof, Employee Representative, Deputy

Chief Executive OfficerÖsterlund, Claes-Göran

T H E C O R P O R AT I O N S – A B G Ö T A K A N A L B O L A G

SEK m 1999 1998 1997 1996 1995

Revenues including support 51.3 67.6 58.8 46.0 63.9of which support 15.4 24.3 20.3 14.3 24.6Operating earnings before depreciation 0.6 0 0.3 0.1 -0.8Gross margin, % 1.8 0 0.1 0 0Earnings after financial items 2.3 -0.4 0.5 0.8 0.5Earnings after financial items adjusted for non-operating items 0 -0.6 0.2 0.8 0.5Net earnings 2.3 -0.4 0.5 0.8 0.5

Adjusted equity 38.2 36.0 26.4 35.9 35.1Net debt 0 0 0.7 0 0Net debt-equity ratio 0 0 0.7 0 0

Return on equity, % 5.9 0 1.3 2.2 1.3Return on operating capital, % 0 0 0 0 0Value-added 15.8 25.8 18.9 13.9 12.8

Cash flow before investments 9.1 2.7 5.3 -9.6 1.3Net investments 4.1 1.6 4.9 0 2.6of which R&D investments 0 0 0 0 0

Dividends 0 0 0 0 0



Government ownership holding 100 % 100% 100% 100% 100%

51

T H E C O R P O R AT I O N S – I M E G O A B

Business concept/objectivesImego AB is a corporation wholly owned by theGovernment whose purpose is to pursue researchassignments focused on microelectronics-based sys-tems for developing new products and processes fromthe idea to complete prototype stage. In a nationwideperspective, the company's activities are to comple-ment and support other initiatives at industrialresearch institutes, universities and institutes of high-er education. The long-term objective is to supporteducation and research, while also contributing to con-solidating the progress and international competitive-ness of Swedish business, which also encompassestechnology transfers to small and medium-sized enter-prises.

EvaluationThe company was founded at the end of 1998 andremains in its build-up phase. Revenues generatedfrom assignments in the first operational year easilyexceed those anticipated in studies ahead of the com-pany's formation.

OperationsIn 1999, Imego built up its operations and establishedcollaborations with enterprises, institutes of furthereducation and other institutes in the microelectronics,micromechanics and sensor systems spheres. The rapidderivation of silicon-based sensor prototypes in sys-tems forms a cornerstone of activities. Imego hasrecruited well-functioning organizational resourceswithin the optical/IR systems, micromechanics, mate-rials and surface characteristics, systems design andASIC construction, electromagnetic sensors, fabrica-tion packages and product design spheres, and putthem into operation.

During the year, Imego made extensive investmentsin software, electrical verification equipment, plusoptical and chemical laboratories. Refraining frominvesting in fabrication equipment forms part ofImego's fundamental strategy. Instead, Imego createsclose relationships with "wafer fabs" — providers withpackaging and fabrication capacity. These networksguarantee that Imego can use optimal processes foreach application, and that thereby, specialist profes-sionals are responsible for fabrication. Through this

extensive network, Imego is not merely capable ofchoosing the appropriate technology, but also theprovider with the necessary capacity to satisfy Imego'scustomers' expectations of short lead-times.

External factorsThe need for measurement and for sensor systems isalready acute and will accentuate still further in theimmediate future. Market analysis suggests that thepotential facing micromechanics exceeds that formicroelectronics (processors and computer memory).Products utilizing micromechanics include printer jetnozzles, hard disk read and write heads, pressure sen-sors, accelerometers for, say, airbags, micro-reflectors forprojectors and basic medical diagnostic equipment. Atpresent, the automotive industry is driving technologyfor gyroscopes, although in the future, biosensors areexpected to constitute the major market.

Significant events in 1999 and 2000Subsequent to a proposal from the Governmentinquiry "A Technology Research Institute inGothenburg" (SOU 1997:37) and the resulting com-mittee, the company was registered on 13 January1999. Operations are pursued in the Chalmers Vasaresearch park in Gothenburg.

Right since inception, Imego has pursued networkcollaborations with researchers and sector enterprises.Imego has been well received by enterprises and insti-tutes of further education; the company has effected aseries of feasibility study projects. The majority ofprojects are expected to result in sequel work.

A state-of-the-art, IT-based project managementsystem has been implemented, and alongside other ITinitiatives, is contributing to quality assure operationsand create a platform for impending certification. ISO9001 certification is scheduled for spring 2000.During the year, the corporate intranet and extranetwere also constructed.

Two patent applications in the sensor constructionsphere were submitted to the Swedish Patent andRegistration Office during the year.

In terms of technology transfer, Swedish engineer-ing sector organization Sveriges Verkstadsindustrierassigned Imego to produce an extensive handbookentitled "Microsystems — Threat or Opportunity?"

52

Environmental initiativesThe company intends to initiate ISO 14 001 certifica-tion once its quality accreditation is complete.

Equal opportunitiesAt the end of the operational year some 18 per cent ofemployees were women. Several highly qualifiedfemale applicants are being considered for recruitmentand Imego anticipates that eventually, it will improvethis position.

Forecast 2000The outlook for Imego's second operational year is pos-itive. During 2000, the company plans to achieve reve-nues of some SEK 20 m, of which SEK 6 m will bebilled to customers, from a headcount of some 25 as ofthe end of 2000.

Board 1999Sahlin, Mauritz, ChairmanLewin, ThomasNetzler, GöranNilsson, AinaOlsson, Eva Omling, PärTorell, Lena

Chief Executive OfficerBrox, Bill

T H E C O R P O R AT I O N S – I M E G O A B

Tkr 1999

Revenues, excluding support 1,439Support (shareholders' contribution, no operating subsidies) 49,773Operating earnings before depreciation -11,827Gross margin, % n/aEarnings after financial items -13,208Earnings after financial items adjustedfor non-operating items -13,208Net earnings -13,208

Adjusted equity 37,566Net debt -34,576Net debt-equity ratio n/a

Return on equity, % -35Return on operating capital, % -680Value-added 1,139

Cash flow before investments 40,572Net investments 5,271of which R&D investments (pro forma) 4,276

Dividends 0

Foreign share of sales 0

Total employee headcount (Medelantal helårsanställningar) 12– Number of female employees 2– Number of employees in foreign countries 0

Government ownership holding 100%

53

T H E C O R P O R AT I O N S – I R E C O I N S T I T U T E F O R R E S E A R C H A N D C O M P E T E N C E H O L D I N G A B

Business conceptIn partnership with industrial research institutions,IRECO is to promote technological progress and thedissemination of skills through the business sector. Byfinancial and other means, the company is to con-tribute to research institutes long-term skills develop-ment within those spheres that are strategically signif-icant to Swedish industry, and to strive towards anexpedient structure within the institutional system.The company´s objective is not to return earnings toshareholders. All industrial research institutes withinthe IRECO group is to pursue operations as limitedliability companies by 2001, with IRECO as minorityowner, and the company having shareholder agreementswith those representatives of the business sector thatare majority owners in institute companies.

EvaluationIRECO is a shareholder in seven industrial researchenterprises. In 1999, IRECO assisted in three researchinstitute mergers. As yet, eight institutes have yet tocomplete the incorporation process, and IRECO is stillnot a partner in one of the institutions that is alreadyoperating in incorporated form. For legal and other rea-sons, the incorporation process has been unexpectedlyprotracted.

OperationsResources are concentrated on supporting institutes intheir incorporation processes and on partnership nego-tiations with business. In 1999, a decision was reachedregarding the allocation of SEK 225 m to the Institute'scompetence development in 2000-2002. During theyear, IRECO will allocate SEK 50 m to institutions forcollaborations with new universities and institutes offurther education.

External factorsIn order for IRECO become a shareholder in an indus-trial research institute, it must convert from founda-tion to limited company status. The legal frameworkregula-ting foundations is complex, and to some extentabstruse, which obstructs the incorporation process.

Significant events in 1999 and 2000Bills regarding the policies associated with researchand innovation and its organizational resources havebeen submitted by the government to the parliament,and may be significant to the company's and researchinstitutes' future activities.

Environmental initiativesThe criteria IRECO has established for industrialresearch institutes include striving towards environ-mentally sustainable growth and business sectorrenewal, while using activities to contribute to long-term sustainable societal progress.

Equal opportunities initiativesThe company has no internal equal opportunities ini-tiatives.

Forecast 2000The owners have provided the company with capital foroperations for the years 2000 – 2002 as well as forfinancing certain research projects within the IRECOgroup of industrial research institutes.

Board 1999 Svedberg, Gunnar, ChairmanCaesar, MadeleineMarklund, KariNielsen, Niels Christian Råland, BirgittaSalzmann, TomasUllenius, Christina

Chief Executive OfficerWidmark, Håkan

SEK m 1999 1998 1997

Revenues 102.4 100.6 97.0of which support 102.4 100.6 97.0 Operating earnings before depreciation -0.4 -0.4 0Earnings after financial items 0 0 0

Adjusted equity 0.8 0.8 0.7

Return on equity, % 1 6 0Return on operating capital 1) n/a n/a n/aValue-added n/a n/a n/a

Cash flow before investments - - -Net investments 0 0 0of which R&D investments2) 0 0 0

Dividends 0 0 0

Foreign share of sales - - -Total employee headcount 3 2 1– Number of female employees 2 1 0– Number of employees in foreign countries 0 0 0

Government ownership holding 55% 55% 55%1) Return on operating capital not relevant.2) IRECO has invested SEK 100 m in R&D within part-owned industrialresearch enterprises

54

T H E C O R P O R AT I O N S – K A S E R N E N F A S T I G H E T S A B

Business concept Kasernen Fastighets AB's operations comprise the estab-lishment, acquisition, ownership, renting and manage-ment of real estate with the primary intention of provid-ing defense sector employees with study accommoda-tion, hotel rooms and permanent housing.

EvaluationIn 1999, Kasernen Fastighets AB satisfied its estab-lished financial and other objectives.

OperationsKasernen Fastighets AB is wholly owned by theGovernment; the group encompasses five wholly ownedsubsidiaries: Fastighets AB Kasernen i Stockholm,Fastighets AB Kasernen i Kristinehamn, Fastighets ABKasernen i Skövde, Fastighets AB Kasernen i Halmstadand Fastighets AB Kasernen i Uppsala.

In total, Kasernen Fastighets AB manages 16 rentalproperties comprising over 500 apartments, one hotelproperty and seven tenant-owner properties.

External factorsIn spring 2000, Parliament will pass a resolution tohalve the basic organizational resources within thedefense sector, which may reduce rental revenues as a

consequence of the reforms that will be implementedwithin Swedish Defense High Command.

Environmental initiativesKasernen's activities are assessed as too modest to jus-tify the formulation of environmental plans or man-agement systems.

Equal opportunitiesKasernen's headcount is regarded as insufficient to jus-tify the establishment of an equal opportunities plan.

Forecast 2000Kasernen's year-2000 forecast is for earnings afterfinancial item, but before potential earnings from realestate divestments, to reduce.

Board 1999Johansson, Bengt A W, ChairmanAlvemur, ChristerLorentzon, ArneLundberg, MonicaNyberg, Gunnar

Chief Executive OfficerLorentzon, Arne

SEK m 1999 1998 1997 1996 1995

Rental revenues 27.5 30.3 34.3 31.8 30.4Operating surplus 20.3 22.4 25.7 22.1 25.9Depreciation of real estate -6.2 -6.2 -7.3 -7.0 -7.8Write-downs on real estate -15.0 - - - -Operating earnings 0.9 19.4 21.1 15.1 13.6Capital gains/losses on real estate divestments 1.9 3.2 2.7 - 4.5Earnings after financial items -4.7 8.6 10.6 11.3 15.1Net earnings -7.6 4.7 7.7 8.2 10.8

Adjusted equity 66.2 75.9 73.4 67.7 57.4Book value of real estate 230.1 251.9 307.7 315.8 305.9Property yield 8.8 8.9 8.4 7.0 8.4

Net debt 153.6 167.5 222.6 237.2 233.7Adjusted equity ratio, % 27.8 24.7 20.5 19.6 16.9

Cash flow before investments 13.7 5.0 n/a n/a n/aNet investments including real estate acquisition/divestments 2.4 9.4 n/a n/a n/aFloor area n/a n/a n/a n/a n/aVacancy n/a n/a n/a n/a n/aDividends 2.2 2.1 2.2 2.0 -



55

SEK m 1999 1998 1997 1996 1) 95/96

Revenues, including support 210 228 208 100 200of which support 162 162 164 83 166Operating earnings before depreciation 3 12 9 -17 2Gross margin, % 6 18 21 - 6Earnings after financial items -1 6 2 -19 -5Net earnings -1 6 2 -19 -5Adjusted equity 6 7 3 -24 -5Cash flow before investments 2 13 20 -22 5Net investments 5 6 7 3 6of which R&D investments n/a n/a n/a n/a n/aDividends 0 0 0 0 0Total employee headcount 303 306 342 367 350– Number of female employees 124 135 157 150 144– Number of employees in foreign countries 0 0 0 0 0

Government ownership holding 100% 100% 100% 100% 100%1) Six months

T H E C O R P O R AT I O N S – T H E R O Y A L D R A M AT I C T H E AT R E O F S W E D E N A B

PurposeKungliga Dramatiska Teatern AB (The Royal DramaticTheatre) is Sweden's national theatre venue, which oper-ates on a non-profit basis.

EvaluationDuring the year, activities were focused on achievingthe objectives conditional for Government subsidies tothe Royal Dramatic Theatre in terms of quality andaccessibility inter alia. The extent to which these objec-tives have been achieved is considered satisfactory.

An element of the 1997 financial reconstruction sawthe Government taking over a SEK 25 m loan to theRoyal Dramatic Theatre from the National Debt Office,which will be fully amortized at the end of 2002. TheGovernment’s objective for the Royal DramaticTheatre's activities is to produce financial results thatallow the Theatre to pay interest and loan amortization.To achieve this objective, the Royal Dramatic Theatrehas implemented a number of organizational changes toenable more flexible working methods and to optimizethe utilization of resources in the production process.

OperationsDuring 1999, the Royal Dramatic Theatre performed 33(29) productions in its repertoire, of which 19 (19) werenew productions.

The Royal Dramatic Theatre made a total of 1,004(1,025) performances on the Theatre's six stages, for anaudience total of 242,134 (275,259) people. During theyear, average occupancy was 84 (86) per cent; in 1999,audience and performance figures were adverselyaffected by the closure of the Lilla scenen (Small Stage)for much of the year's season. During 1999, the RoyalDramatic Theatre presented 105 (125) performances ontour for an audience total of 37,627 (34,226). In 1998,when Stockholm was Europe's Cultural Capital, theRoyal Dramatic Theatre was the host for a broad selec-tion of guest performances, while during 1999, suchactivities remained at more normal levels.

In 1999, ticket revenues were SEK 28.8 m, equivalentto 14 per cent of total income.

Significant events in 1999 and 2000In May 1999, the Small Stage was closed for renovation,with re-opening scheduled for late-October 2000. As a

consequence of the renovation, Government real estateagency Statens Fastighetsverk will increase its rentbilling, which the Royal Dramatic Theatre will financethrough departing from other rented premises.

A new four-year main sponsorship agreement withTelia came into force in January 1999, the agreementon the same financial terms as the previous contract,while also allowing for two further long-term sponsors;a three-year deal with Ernst & Young came into forcein July 1999, which increased sponsorship revenues by50 per cent. Both agreements include options tofinance tours in addition to the fixed sponsorship fees.In 1999, sponsorship subsidies equated to 2.9 per centof total income, including the Government's operatingsupport.

Environmental initiativesEnvironmental initiatives have been focused primarilyon the working environment.

Equal opportunitiesIn 1999, the proportion of women in the Royal DramaticTheatre’s activities was 41 per cent; the divisionbetween the genders varies with the demands set by theRoyal Dramatic Theatre's repertoire. The RoyalDramatic Theatre has an equal opportunities plan.

Forecast 2000The required loan repayment schedule implies consider-able demands on the Royal Dramatic Theatre's financialmanagement and operational planning until 2003.

Board 1999Wikström, Jan-Erik, ChairmanBonnier, EvaDahlberg, IngridLåftman, LennartNilsson, SamWästberg, PerGöranzon, Marie, Employee RepresentativeÅkerblom, Kjäll, Employee RepresentativeDamberg, Jan, Employee Representative, DeputyLindberg, Lars, Employee Representative, Deputy

Chief Executive OfficerDahlberg, Ingrid

56

T H E C O R P O R AT I O N S – T H E R O Y A L S W E D I S H O P E R A A B

PurposeKungliga Operan AB (the Royal Opera) is Sweden'snational venue for opera and ballet, which operates ona non-profit basis.

EvaluationAs far as possible, activities during the year werefocused on achieving those objectives conditional forGovernment subsidies to the Royal Opera in terms ofquality and accessibility inter alia.

The extent to which these objectives have beenachieved is considered satisfactory.

OperationsIn 1999, the Royal Opera performed a total of 34 (52)opera and ballet productions on its repertoire, with 11(17) of these being new productions. The Royal Operapresented 46 (59) concerts. When making comparisonswith 1998, consideration should be given to the factthat in that year, Stockholm was Europe's CulturalCapital, with consequently, the Royal Opera disposingover additional production resources.

Despite fewer productions, the number of perfor-mances and other events under the auspices of theRoyal Opera is continuing to increase. In 1999, thetotal number of events was 371 (361), occupancy was82 (84) per cent for opera and 73 (87) per cent for bal-let. To some extent, the lower figure for ballet is dueto the ballet repertoire including a relatively high pro-portion of contemporary productions, which have yetto find their audience.

In 1999, the Royal Opera´s second stage (the VasaTheatre) presented a number of smaller-scale operapieces, both under its own auspices and in collabora-tion with institutions such as the Stockholm OperaSchool. The Vasa Theatre premises have also beenbrought into use for guest performances, concerts andchildren's events.

During the summer, the Royal Opera Company per-formed at the Drottningholm Court Theatre and at a fewopen-air arenas. In July 1999, the Royal Opera Ballet

Company toured the US. Collaboration has continuedwithin the so-called Opera Academy comprising theRoyal Opera's main sponsors: Länsförsäkringar,Pharmacia & Upjohn, SAS, Svenska Dagbladet andVattenfall. During the initial contract period from1997 to 2000 inclusive, these corporations will providea total of SEK 32 m in support to the Royal Opera. In1999, sponsorship subsidies comprised 2.8 per cent oftotal income including grants from the Government. In1999, ticket revenues amounted to SEK 41.9 m, equi-valent to 12 per cent of total income; ticket revenuesincreased by SEK 4.7 m compared to 1997.

Environmental initiativesEnvironmental initiatives have been focused primarilyon the working environment.

Equal opportunitiesOf the Royal Opera's total employees in 1999, 44 percent were women. The Royal Opera has an equalopportunities plan.

Forecast 2000The Royal Opera forecasts zero earnings for 2000.

Board 1999Dalborg, Hans, ChairmanAndersson, BennyEngdahl, HoraceReinius, UllaStarrin, KarinStenberg, JanTham, CarlTivéus, MegAlm, Eric, Employee RepresentativeSwartz, Göran, Employee RepresentativeLundén, Gun-Maj, Employee Representative, DeputyOnne, Madeleine, Employee Representative, Deputy

Chief Executive OfficerHall, Bengt

SEK m 1999 1998 1997 1996/95, 18mån 1994/95

Revenues, including support 347 353 319 480 303of which support. 287 276 269 422 254Operating earnings before depreciation 9 -8 -12 15 -14Gross margin, % 3 neg neg 3 negEarnings after financial items 1 -16 -20 5 -10 Net earnings 1 -12 -13 1 -4Adjusted equity 4 3 18 36 17Net debt 14 16 17 19 22Net debt-equity ratio, % 350 533 94 53 129Return on equity, % 29 neg neg 4 negReturn on operating capital, % 0 neg neg 3 negValue-added 206 240 231 343 208Cash flow before investments 16 10 n/a n/a n/aNet investments 5 8 5 15 7Dividends 0 0 0 0 0Foreign share of sales 2 n/a n/a n/a n/aTotal employee headcount 580 590 586 581 649– Number of female employees 255 260 252 250 n/a– Number of employees in foreign countries 0 0 0 0 0


57

T H E C O R P O R AT I O N S – L E R N I A A B

Business conceptLernia's business concept is to help equip broad-basedworking groups to face a changeable working life.

This corporation strives towards being a broad-based multifaceted competence corporation activewithin training, operational development and person-nel hire. Lernia is a competence corporation for broad-based employee groups.

EvaluationIn 1999, the Lernia group's total revenues were SEK1,931 (1,870) m. Sales of labor market and corporatetraining comprised 91 (92) % of total sales, with theremainder primary consisting of revenues from thepersonnel hire activities, restaurant activities, as wellas sales of products manufactured on contract.

Consolidated earnings after depreciation accordingto plan were SEK 2 (17) m. A positive net financialposition of SEK 4 (13) m resulted in earnings afterfinancial items to SEK 6 (30) m. Net earnings after taxemerged at SEK 6 (30) m. The consolidated return ontotal equity in 1999 was 1.1%, with returned on capi-tal employed of 1.9%, and return on equity after tax of1.5%, which did not satisfy the established objective ofapproximately 14%.

One key contributor to the declining earnings was avery sharp downturn in tendering for labor markettraining during the latter half-year 1999.

Apart from declining revenues from training activi-ties, the fact that the corporation has not yet succeed-ed in achieving the necessary operational flexibilityand efficiency provides another explanation for thedeteriorated earnings.

Despite the distinct downturn in training volumes,the group managed to maintain market shares, and insome cases, actually increase them. Lernia has beenable to reduce labor market training as a proportion oftotal revenues in comparison to previous years, whichis entirely consistent with the corporation's strategy ofreducing its dependency on a single market.

Personnel hire activities exceeded expectations in1999, and are making sustained healthy progress in 2000.

OperationsLernia AB is wholly owned by the Swedish Government.In 1999, group activities were pursued under the cor-

porate name AmuGruppen, and in five business areas:Yrke, Växa, Delta, Hadar and Nu Personaluthyrning(personnel hire); this latter pair operated as autonomouslegal entities with their own human resources.

During the year, the management and Boardfocused on a review of activities with the intention ofconsolidating the group's presence on key corporatemarkets and the burgeoning schools market. One con-sequence has been to collate all business areas under asingle brand. The division into the aforementionedbusiness areas ceased on 1February 2000, simultane-ous with an internal re-organization coming into force.

External factorsLernia is the biggest player on Sweden's training mar-ket. During the fiscal year, 69 (70) per cent of revenuescomprised labor market training tendered by countylabor boards and employment offices. The sector iscurrently characterized by low profitability, compris-ing a multitude of small local players, with anachro-nistic education methods and low start-up costs.

The market for training and education is engaged ina change process where many new players, bothSwedish and foreign, have either started up or are inthe process of becoming established. There is plenty ofevidence to suggest that in the coming years, changesboth to the traditional school system and the remain-ing market for training and education will becomeapparent. An altered view of educational methods andtechniques comprises a key driver in this context.Moreover, it is fair to conclude that both the labormarket's players and private individuals are increasingtheir commitment to competence enhancement issues.Notably, the opportunities progress within IT is creat-ing will influence and change the market for trainingand education. Sweden has one of the world's highestInternet penetration levels, and probably, e-learningwill eventually comprise an increasingly importantpart of the market for training and education.

Significant events in 1999 and 2000A 10 January 2000 Extraordinary General Meetingresolved that the corporation would change corporatename from the former AmuGruppen AB to Lernia AB.The subsidiaries Nu Personaluthyrning and Amu-Gruppen Hadar AB changed corporate name to Lernia

58

T H E C O R P O R AT I O N S – L E R N I A A B

Personaluthyrning AB and Lernia Hadar AB — devel-opments comprising a significant element of Lernia'sbrand strategy.

The corporation has also revised its internal organi-zational resources with the intention of workingtowards a sharper market focus. The division betweenbusiness areas has been changed to: Training,Corporates, Schools and Individuals.

Several subsidiaries received quality and environ-mental accreditation in 1999.

Environmental initiativesSome elements of Lernia's training and education activ-ities are liable for reporting according to Chapter 9 § 6of prevailing environmental legislation. These activitiescomprise plastics and engineering technology training,mainly pursued at a total of 100 locations. Any envi-ronmental impact is limited, though, because theseactivities relate to training rather than production.

Lernia's environmental initiatives in recent yearshave resulted in parts of activities receiving ISO 14001accreditation. Lernia is currently engaged in intensiveefforts to implement environmental management sys-tems in the remaining activities, with the objective ofLernia AB achieving accreditation during 2000.

Equal opportunities Equal opportunities activities are pursued systemati-cally from the perspective of an established equalopportunities plan, revised annually. In 1999, the num-ber of women in the group increased, while the num-ber of men reduced. Women now comprise 33 per centof employees. The number of female executives in thecorporate management team increased significantlyduring the year, although the number of women inmiddle management posts rose only marginally.

Forecast 2000During the year 2000, the competence developmentmarket will be comparable to 1999 levels. Supportfunds for tendered labor market training are expectedto reduce, but in return, new funds will be availablefrom other sources such as regional growth agreementsand a dedicated initiatives relating to competencedevelopment in working life (KIA).

Several tendering rounds are expected in theschools market, the majority starting in 2001. In thelonger-term, Lernia expects the available markets toincrease, while the influence of individuals will alsorise gradually. On the hiring market, LerniaPersonaluthyrning has succeeded in becoming estab-lished; this market is expected to sustain robustgrowth. The annual forecast for 2000 implies revenuesof SEK 1,910 m, with operating earnings of SEK 33 mand a contribution margin of 1.7 per cent.

Board 1999Dockered, Bo, ChairmanBlomquist, Bo-GunnarCarrick, PeterEriksson, OlleHansson, Lise-Lott Hjalmarson, LennartJonson, Lars ChristerKronstam, KarinLarsson, BengtNordmark-Nilsson, Anna-StinaJohansson, Jan, Employee Representative

Chief Executive OfficerCarrick, Peter

SEK m 1999 1998 1997 1996 1995

Revenues 1,931 1,870 1,870 2,542 3,380Operating earnings before depreciation 88 99 128 -559 -58Gross margin, % 4.6 5.3 6.8 neg negEarnings after financial items 6 30 67 -582 -112Net earnings 6 30 67 18 -89

Adjusted equity 388 404 396 329 311Net debt neg neg neg neg negNet debt-equity ratio, % neg neg neg neg neg

Return on equity, % 1.5 7.8 18.5 neg negValue-added 946 899 935 1,322 1,758

Cash flow before investments 14 -593 118 -341 -132Net investments 47 85 40 31 75of which R&D investments n/a n/a n/a n/a n/a

Dividends 0 22 22 0 0


Total employee headcount 2,459 2,312 2,888 3,997 4,892– Number of female employees 836 763 1,011 1,439 1,756– Number of employees in foreign countries - - - - -


59

T H E C O R P O R AT I O N S – T H E S W E D I S H C I V I L A V I AT I O N A U T H O R I T Y

ObjectivesLuftfartsverket (LFV), the Swedish Civil AviationAuthority, which is a Government agency, is intendedto promote progress in civil aviation, while assumingresponsibility for the operation and development ofnational airports for civil aviation, and to regulate thesafety of civil air traffic. LFV is to be responsible forthe air traffic control of civil and military aviation traf-fic in peace time, the protection of the environmentagainst pollution from civil air traffic, and to providecontingency planning for civil air transport.

LFV is to contribute to the long-term sustainableprovision of air transport for citizens and businessnationwide in a socioeconomically efficient manner.LFV is responsible for operating and developing civilair traffic control, airports and associated activities ina financially viable manner. The long-term objective forreturns is that earnings after tax equivalent willamount to 8 per cent of shareholders' equity, whilemaintaining a minimum equity ratio of 25 per cent. Onaverage year to year, air traffic control fees, excludingon route-charges, security and noise pollution fees,may increase by a maximum equivalent to the netprice index measured from 1993 onwards.

EvaluationLFV’s return on equity after tax and tax equivalentdeclined in 1999 as a consequence of items affectingcomparability. Primarily, a district court ruling againstLFV in a rental dispute with SAS was the cause of LFVfailing to achieve its target return for 1999. Thisexpense was some SEK 600 m; LFV has appealedagainst the ruling. LFV's share (50 per cent) ofArlandabanan (the Stockholm to Arlanda Airport rail-link) has been accounted, posted to the Balance Sheetfor 1999. This transaction implies a reduction to theequity ratio of approximately three percentage points,implying that the equity ratio target was not achieved.In 1999, price increases were 4.3 per cent — below theGovernment's established price ceiling. Earnings in1999 were SEK 18 m, against SEK 606 m in 1998.Operating revenues were SEK 4,719 (4,469) m, a 5 percent gain, more than half of which comprised increasedvolumes, and just under half derived from pricechanges implemented from 1 January 1999 onwards.Operating expenses stood at SEK 3,878 (3,545) m, a 9per cent increase.

OperationsApart from the Government agency, the LFV groupcomprises wholly owned holding company LFVHolding AB and its wholly owned subsidiaries LFVAirport Center AB and Swedavia AB. LFV HandlingAB is 50 per cent owned.

LFV operates 14 Government airports, while addi-tionally it manages civil air traffic at five military facil-ities. Those airports under the auspices of theGovernment are operated in a single system, with basi-cally, consistent standards at all airports.

LFV's air traffic control services direct air trafficthrough Sweden's flight information regions, whichapart from Swedish territory, also encompass majorparts of the surrounding sea and the island ofBornholm. LFV also operates air traffic control servicesfor military aviation.

Commercial activities generate some 40 per cent ofrevenues.

External factorsOver the forthcoming three-year period, growth ofover 4 per cent for domestic and international air traf-fic is expected. SAS’s position on the domestic marketremains secure, while competition between the globalalliances will accentuate. Discount flights are expect-ed to expand significantly over the forthcoming fiveyears. The capacity of European airspace is expectedto improve, but during the peak phase, will probablybe consumed by increasing traffic.

Significant events in 1999 and 2000The year 1999 was another record for air traffic with21.8 million passengers, up 5 per cent, or 1.1 millionpassengers, on 1999. Foreign flights increased by 6 percent, with domestic flights rising by 5 per cent.

Arlandabanan was inaugurated on 24 November1999. The Arlanda Express' travel time betweenStockholm Central Station and Arlanda Airport is amaximum of 20 minutes, with four trains an hour ineach direction.

The renewal of Sweden's air traffic control system isproceeding according to plan; equipping the newSturup Air Traffic Control Center with new technolo-gy has begun. The new Air Traffic Control Center atArlanda Airport is complete; installation will beginduring the spring. The construction of a third runway

60

T H E C O R P O R AT I O N S – T H E S W E D I S H C I V I L A V I AT I O N A U T H O R I T Y

at Arlanda Airport is underway, and will come intooperation in spring 2002.

In January 2000, Europe's transport ministersdecided on a common strategy for developing the EU’sair traffic control system in order to achieve flowsindependent of national borders.

Environmental initiativesLFV has an objective for its environmental manage-ment system to be implemented throughout the groupby the end of 2002. In December 1999, Umeå Airportachieved ISO 14001 accreditation. Environmental ini-tiatives at LFV's airports are proceeding: two clean-upresevoirs at Visby Airport were brought on stream,while Landvetter Airport brought the water tableunder the airport into use, which will be utilized forthe Airport's climate control installations. New clean-ing facilities have been installed at Arlanda Airportthat remove heavy metals and oils from washing waterused in hangers and motor vehicle workshops.

Equal opportunitiesLFV's recruitment gives consideration to the fact that79 per cent of managers are male. On average, femalemanagers are paid 87 per cent of male managers'salaries. On average, women in core competence activ-ities receive an average of 92 per cent of male salaries.In supplementary competence areas, women's salariesare 77 per cent of men's. The salary discrepancybetween men and women is higher in older age groups.

LFV has centrally formulated equal opportunitiespolicies and objectives with defined managementresponsibilities for associated issues. Each group unitestablishes an equal opportunities plan comprisingplans of action and remedial measures, which comprise

concrete activities with measurable objectives to eval-uate results. The group units' equal opportunitiesobjectives are updated in annual human resourcesstatements, attitude polls and personnel surveys.

Forecast 2000Earnings after net financial items for 2000 are expect-ed at SEK 650 m—a distinct improvement on the 1999figure. As a consequence of factors including the 50per cent of Arlandabanan being posted in LFV’sBalance Sheet, LFV will not achieve its equity ratiotarget in 2000. LFV anticipates a shortfall of earningsgenerated from duty free and tax-free sales amountingto some SEK 250 m compared to 1998, and according-ly perceives a need to increase fees. The Governmenthas assigned LFV to evaluate the environmental andeconomic consequences of increased landing fees.

Board 1999Adelsohn, Ulf, Chairman Annell, ElisabetOrrenius, JanJonsson, JanPlogéus, EvaSkogö, IngemarThapper, IngerÖrnfjäder, KristerAndersson, Lars, Employee RepresentativeFalk, Krister, Employee RepresentativeDittmer, Ulf, Employee Representative, DeputyNilssen, Roal, Employee Representative, Deputy

GeneraldirektörSkogö, Ingemar

SEK m 1999 1998 1997 1996 1995

Revenues 4,719 4,469 4,316 4,037 3,820Operating earnings before depreciation 1,500 1,499 1,295 1,091 1,221Gross margin, % 32 34 30 27 32Earnings after financial items 18 606 361 290 362Earnings after financial items adjustedfor non-operating items 18 606 506 761 689Net earnings 8 435 260 209 261

Adjusted equity 2,354 2,403 1,943 1,684 1,526Net debt 2,895 2,814 3,556 3,892 4,212Net debt-equity, multiple 1.23 1.17 1.83 2.31 2.76

Return on equity, % 0.3 20.0 14.3 13.0 18.7Return on operating capital, % 2.2 10.5 8.1 8.2 10.1Value-added 3,342 3,221 3,174 2,819 2,767

Cash flow before investments 1,104 1,202 498 657 917Net investments 2,935 731 631 552 554of wich R&D investments n/a n/a n/a n/a n/a


Total employee headcount 3,919 3,795 4,392 4,277 4,209– Number of female employees 1,429 1,366 1,581 1,625 1,473– Number of employees in foreign countries 0 0 0 0 0


61

T H E C O R P O R AT I O N S – L K A B

Business conceptLKAB is to market, produce and supply value-added,quality-assured iron ore products to selected cus-tomers from Sweden's ore deposits on businesslike, sus-tainable and cost-efficient terms. The business conceptis based on good business practice, adding value andquality assurance, plus long-term customer relations.

Increased value-added and sustainable profitabilityare key objectives for LKAB. The iron and steel indus-try is capital intensive and highly cyclical. Accordingly,sufficient financial strength to withstand cyclical fluc-tuations is imperative.

The objective for long-term returns on total capital inthe iron ore activities is 10 per cent, equivalent to a 15per cent return on equity before tax measured over abusiness cycle.

EvaluationLKAB's supply of value-added iron ore productsreduced by 1.9 million tons, or 9 per cent, emerging at18.4 (20.3) million tons. Pellet supplies contracted to12.2 (13.9) million tons, comprising 66 (68 per cent) oftotal production. During the year, production was 18.9(20.9) million tons. At the end of 1999, complete prod-uct inventories were 22.0 (1.7) million tons. In 1999,LKAB resolved on an action program to be implement-ed including cost reductions of SEK 300 m over threeyears, headcount reductions of 300 over three years,and reducing net cash flow to an annual maximum ofSEK –500 m. All non-critical investments have beendelayed as a consequence of these efforts.

Reduced prices, declining deliveries and sustainedhigh investment levels meant that LKAB was unable toachieve its stated financial and accounting objectives.

OperationsOver 30 million tons of crude ore is extracted fromLKAB's mines annually. State-of-the-art technology,remote control and economies of scale are all key con-cepts in LKAB's production. In 1999 the former mainlevel at Kiruna was conclusively closed, with the newmain level, at a depth of 1,045 meters, brought intofull operation. Work on a new main level at Malmberg,at 1,000 m, is underway, with production starting inFebruary this year. This new main level will be in fulloperation in 2001.

Iron ore is refined in LKAB's ore refineries inKiruna, Svappavaara and Malmberget. The present

annual capacity is approximately 22 million tons, 15million tons comprising pellets.

External factorsIron ore is a capital intensive, cyclical and dollar-dependent sector. In order to remain competitive sus-tainably, LKAB must focus on customer benefit, qual-ity assurance and costs. In recent years, competitionhas intensified significantly, with since 1995, an addi-tional 20 million tons of pellet capacity arriving world-wide as a consequence of competitors' build-outs.

Progress over the last year illustrates how rapidlyconditions are changing in the sector. The supply glutof pellets in 1999 has now become a shortage.

Significant events in 1999 and 2000An extensive action program was initiated in 1999with the intention of reducing expenses.

These efforts included an thorough reorganization ofLKAB, with the introduction of a process-orientedorganizational model replacing the former geographicaldivision.

Major efforts on the product development sideincluding the derivation of new improved blast furnacepellets for use in sintering, and to increase the metal-lization level of LKAB’s direct reduction pellets, are inhand. The Pilot blast furnace at Luleå is a vital link inthis context.

LKAB's high rate of investment retarded in 1999, butdespite this, total investments were SEK 986 m, prim-ary relating to investments in new main levels at Kirunaand Malmberget, plus preparations for extraction atSjömalmen, Kiruna. Other major projects now in handinclude an upgrade of the Lofot rail link to a 30-ton axleweight, plus purchasing of new rolling stock.

In the most recent five-year period, LKAB hasinvested over SEK 6 bn but now anticipates a moreserene rate of investment. Investments of approximatelySEK 1.5 bn have been delayed as a consequence of theaction program.

The restructuring of steel corporations has contin-ued, with consequences for ore suppliers. LKAB is alsoreviewing its strategy, evaluating various alternativesto consolidate its market position.

An operational system based on ISO 9001:2000 wasimplemented in 1999, while additionally, LKABresolved to quality assure the corporation in accor-dance with the ISO 9001: 2000 standard during 2000.

62

T H E C O R P O R AT I O N S – L K A B

Subsequent to SJ and Norway's NSB 1999 divest-ment of their respective holdings of 24.5 per cent toLKAB, transportation corporation MTAB is now 100per cent owned by LKAB.

Environmental initiativesLKAB's environmental policy proceeds from a view thatthe corporation's activities and products should be char-acterized by consideration to people and the environ-ment. LKAB strives for internal monitoring to achievehigh quality and working environment standards.Environmental initiatives are forward looking, aimed atensuring that the corporation will also be able to satisfythe more stringent environmental standards of the future.

LKAB's environmental monitoring is effected accord-ing to programs established by the regulatory authori-ties. An environmental report for each production loca-tion is submitted to the relevant authorities annually.

Equal opportunitiesBy tradition, mines and refineries are male dominatedworking activities. Women did not gain the legislatedright to work below surface until 1978, and accordingly,the proportion of women working for LKAB was stillonly 8 per cent in 1999. LKAB's equal opportunities planis designed to consolidate women's position in LKAB.

Forecast 2000The European steel market staged an unexpectedly

strong recovery towards the end of 1999; 2000 looksset to be a favorable year for the steel industry, andthereby for iron ore producers too. During the earlymonths of the year, demand for iron ore has increasedsteadily, and this year, the majority of ore exportersare reporting full capacity utilization. Accordingly,LKAB anticipates deliveries expanding by 20 per cent,and alongside price increases effected, this suggeststhat earnings for the year will improve distinctly.

Board 1999Sprängare, Björn, ChairmanAmeln, CarlEnger, OleLund, OlofOlson, Hans ChristerRos, Carl WilhelmTengelin, UrsulaÖstholm, LarsBäckström, Håkan, Employee Representative Larsson, Hans, Employee Representative Wikström, Karl, Employee Representative Kohkoinen, Thomas, Employee Representative, DeputyThornéus, Torsten, Employee Representative, DeputyÅhult, Henrik, Employee Representative, Deputy

Chief Executive OfficerAmeln, Carl

SEK m 1999 1998 1997 1996 1995

Revenues 3,985 5,129 5,096 4,655 4,354Operating earnings before depreciation 390 1,423 1,435 948 960

Gross margin, % 9.3 26.8 26.6 20.4 22.1Earnings after financial items -244 960 1,206 941 920Earnings after financial items adjusted adjusted fornon-operating items -244 960 1,206 941 920Net earnings -239 672 858 670 657

Adjusted equity 8,412 8,882 8,605 8,175 7,928Net debt -1,217 -2,297 -2,435 -4,307 -3,246Net debt-equity ratio, % -18.6 -25.9 -28.3 -52.7 -40.9

Return on equity, % -2.8 7.7 10.2 8.3 8.5Return on operating capital, % -6.6 9.9 15.4 9.7 7.9Value-added 2,073 3,036 2,994 2,191 2,058

Cash flow before investments 861 1,627 1,674 1,084 861Net investments 986 1,358 1,212 1,629 1,162of wich R&D investments 10 31 65 22 18

Dividends 231 231 290 428 423

Foreign share of sales 74 1) n/a n/a n/a n/a

Total employee headcount 3,279 3,568 3,524 3,379 3,432– Number of female employees 262 277 263 252 257– Number of employees in foreign countries 290 315 339 306 310

Government ownership holding 100% 100% 100% 100% 100%1) Figures in tons.

63

T H E C O R P O R AT I O N S – N O R D I C B A L T I C H O L D I N G A B

Nordic Baltic Holding AB, which is the parent compa-ny of MeritaNordbanken, is quoted on OM StockholmExchange and the Helsinki Stock Exchange. NordicBaltic holding AB has its registered offices in Sweden.

The background to the Government's holding lies inthe measures to secure the financial system theGovernment took in 1992, which included buying allshares in Nordbanken. In 1993, the Governmentbrought the reconstructed element of Gota bank intoNordbanken. In 1995, the Government took a decisionto initiate the first partial sell-off of Nordbankenthrough a stock market flotation. Coincident with thisstep, the Government also announced its intention tosell all its shares in the bank, although this would bedependent on market conditions and the achievementof a sufficiently favorable price. An SEK 5 bn redemp-tion process was initiated in 1997, which reduced theGovernment's ownership holding to below 50 per centof capital and votes.

Subsequent to the merger that resulted in NordicBaltic Holding AB and the prevailing merger betweenMeritaNordbanken and Unidanmark, the Government'sownership holding stands at approximately 18.1 percent.

Business conceptMeritaNordbanken is to create value for its sharehold-ers, customers and employees. The Bank maximizesthe value of its shareholders' investments by utilizingbusiness ideas in the financial solutions sphere. Valuegrowth is to be amongst the best of the Nordic region'slisted banks.

The Bank pursues the following value creation strate-gies: strategic focus, operational efficiency, an optimalfinancial structure and credible earnings growth. As anelement of its implementation of the value creationstrategy, in 1999, the Board established a number ofoperational objectives including the Bank remaining sus-tainably amongst the leading listed banks in the Nordicregion in terms of earnings per share growth.

EvaluationThe MeritaNordbanken group's earnings were EUR1,272 m (SEK 11,221 m), up 10 per cent on 1998.During the year, net interest income dropped by near-

ly 2 per cent to EUR 1,798 m (SEK 15,848 m), whilenet commission income expanded from EUR 722 to822 m (SEK 7,243 m). Credit losses dropped by 84 percent to EUR 22 m (SEK 195 m), comparable to the his-torical lows of 0.04 (0.22) per cent in relation to lend-ing. Return on capital employed was nearly 21 percent, with the tier one capital adequacy ratio at 8.3per cent, and capital adequacy at 12 per cent.

OperationsMeritaNordbanken is one of the pre-eminent Nordicbanking groups, with the Baltic region as its domesticmarket. The strategic objective is for MeritaNord-banken to be a leading player in all Nordic countries,and to secure a significant presence in other Balticcountries. Operations are focused on a broad selectionof financial products and services for private individu-als, corporates, institutions and the public sector.Operations are organized into five major units:Regional Banking, Major Corporates, Markets, AssetManagement and Real Estate.

MeritaNordbanken intends to have the biggest cus-tomer base in the Baltic region and to be the firstchoice for those players with this region as theirdomestic market, with the ability to offer regional andglobal solutions for the region's major corporations.The customer base exceeds 6.5 million private indi-viduals, while the number of enterprises, authoritiesand institutions amounts to some 400,000. The objec-tive is to increase volumes generated from existingcustomers on good business terms, and to increase thenumber of core customers every year. MeritaNord-banken's core customers are to express customer satis-faction of at least the same levels as corresponding cus-tomers in comparable banks.

The extensive restructuring of production and dis-tribution of Internet-based financial services enablesgreater value creation, reduced expenses and newofferings. The objective is for MeritaNordbanken todefend its position as Europe's leading provider ofInternet banking solutions and electronic services.

External factorsSweden's banks have now extended their markets toencompass the Nordic region and several Baltic states,

Nordic Baltic Holding AB

64

T H E C O R P O R AT I O N S – N O R D I C B A L T I C H O L D I N G A B

while similar progress is apparent in the other Nordiccountries. This transformation has resulted in severalNordic banks establishing operations on each other'sdomestic markets. The intention of this expansion tonew geographical regions is primarily to extend cus-tomer bases, thereby expanding volumes and revenues.Several of the Bank's expansion initiatives have beeneffected through mergers and acquisitions, generatingsubstantial cost synergies.

The Internet as a financial services distributionmedium is in robust growth; new technology enhancesthe potential for foreign competition without necessi-tating any geographical presence. Technology alsoenables the separation of production and distributionof services, facilitating new start-ups and constella-tions on the financial markets.

Significant events in 1999 and 2000Nordic Baltic Holding made a bid for Christiania Bankog Kreditkassen of Norway; by the end of the year, thisoffering to shareholders was extended, comprising acash bid of NOK 24.3 bn.

MeritaNordbanken has over one million customersconnected to its Internet services. The number ofInternet customers is growing rapidly; the objective isto exceed 2 million by the beginning of next year. TheSolo Internet portal was launched in Sweden in theautumn, plus a range of WAP services also offered inFinland.

At the end of 1999, the ownership structure wassimplified by Merita Oy's shareholders becomingdirect owners of Nordbanken Holding, which wasrenamed Nordic Baltic Holding AB. In March 2000,Nordic Baltic Holding AB announced an offering toUnidanmark's shareholders to exchange shares withthe intention of merging MeritaNordbanken andUnidanmark. This merger will create the leading finan-cial group in the Nordic and Baltic regions, with threestrong brands and 9.5 million customers.

Environmental initiativesDespite the fact that banking is not directly associat-ed with environmental impact, MeritaNordbankenconsumes material and energy, while using electronicequipment extensively. A consistent and long-termpursuit of improvement is intended to generate envi-ronmental gains and savings. When issuing credits,MeritaNordbanken is increasingly drawing its cus-tomers’ attention to environmental considerations. In1999, MeritaNordbanken consolidated its environ-mental activities both by formulating a group-wideenvironmental policy, and by composing a group envi-ronmental board intended to co-ordinate environmen-tal initiatives in Finland and Sweden.

Equal opportunitiesSystematic efforts to achieve equality between womenand men is proceeding according to plan. A dedicatedmanagement training program in Sweden with exclu-sively female participants is an ongoing activity.

Forecast 2000With a sustained strategic focus and established costcontrol, the intention is that MeritaNordbanken willgenerate favorable growth and profitability, exceedingthat achieved by other Nordic banks.

Board—Nordic Baltic Holding AB andMeritaNordbankenPalmstierna, Jacob, ChairmanVainio, Vesa, vice ChairmanDalborg, Hans, Chief Executive OfficerAndersson, DanAndersson, EdwardBrandinger, RuneKivimäki, MikkoMagnusson, BerntNiemelä, JuhaPeltola, TimoFinskas, Bertel, Employee RepresentativeRoukala-Hyväinen, Kaija, Employee Representative

Chief Executive Officer and PresidentDalborg, Hans

SEK m 1999 1998 19971)

Net interest income 15,848 16,031 16,223Net commission income 7,243 6,370 6,034Earnings before credit losses 11,553 13,212 11,216Credit losses 195 1,222 2,134Operating earnings 12,221 12,083 9,223Net earnings 9,676 6,198 9,355

Total assets 890,304 911,113 849,314Lending 584,050 567,612 495,217Adjusted equity 47,315 45,264 40,594Return on equity, % 20.9 14.3 18.9Tier one capital adequacy ratio, % 8.3 7.3 7.4Capital adequacy ratio, % 12.0 9.9 11.3

Income/cost ratio exc. credit losses, % 1.8 1.8 1.7Credit losses as a percentage of lending 0.04 0.2 0.4Investment margin 1.8 1.9 2.0Rating (S&P/Moody's) A1/A A1/A A1/A

Dividends 948 902 n/aDividend per share 2) 1.75 1.64 1.50

Total employee headcount 18,896 19,741 20,582– Proportion of women, % 25 n/a n/a– Proportion in foreign countries n/a n/a n/a

Government ownership holding 25.9% 25.9% 25.9%1) Pro forma2) Per share, Nordbanken Holding (Nordic Baltic Holding AB from 2000onwards)

65

T H E C O R P O R AT I O N S – N O R R L A N D C E N T E R A B

SEK m 1999 1998 1997 1996 1995

Revenues 3.8 4.6 4.8 4.6 3.9Operating earnings before depriciation -1.5 -0.7 -0.2 -0.9 -2.2Gross margin, % - 39.0 - 13.2 -0.9 -15.6 -53.3Earnings after financial items 0.3 -0.2 1.3 0.7 -1.0Net earnings 0.3 -0.2 1.3 0.7 -1.2

Adjusted equity 15.2 14.9 15.1 13.8 13.0Net debt -15.9 -15.6 -15.7 -15.9 -15.9Net debt-equity, multiple - 1.0 -1.0 -1.0 -1.2 -1.2

Return on equity, % 2.0 -1.5 9.3 5.2 -8.6Return on operating capital, % -83.0 -30.4 -8.2 -47.0 -108.2Value-added 1.3 2.1 2.7 – –

Dividends 0 0 0 0 0


Government ownership holding 33.3% 33.3% 33.3% 33.3% 33.3%

Business concept/objectivesNorrland Center AB is a services enterprise intendedto promote start-ups and enhance business in theNorthern Swedish county of Norrland, primary ininland regions.

Norrland Center AB is intended to be a leadingplayer in the start-up and progression of businesses inNorrland. The enterprise's activities are to be pursuedin close collaboration with a number of Norrlandmunicipalities.

EvaluationIn a variety of ways, Norrland Center AB has con-tributed to starting up and enhancing over 70 busi-nesses in the region since inception in 1991. Thesebusinesses employ a total of over 1,800 people.Norrland Center has contributed to creating new jobsfor over 40 per cent of those people employed in thecall centers started up across the region.

Operations Norrland Center AB is owned equally by theGovernment (through the Ministry of Industry,Employment and Communications), the Norrlands-fonden foundation and Norhold AB. In 1999, NorrlandCenter AB had collaboration agreements with 11regional municipalities.

Sales prospecting is a key element of NorrlandCenter's operations. During the year, Norrland CenterAB sustained its active marketing of Norrland as aprofitable region for establishing business for the longterm. Individual enterprises reach long-term decisionsutilizing the factual information and research providedby Norrland Center AB free of charge.

External factorsThe support system provided by regional policy has

remained the subject of debate, and has altered againstthe background of Sweden's adaptation to the EU.Despite this, Norrland Center AB has not detected anyslowdown in interest in establishing business inNorrland. Enterprises continue to consider Norrlandas a potential location, primarily against the backdropof conclusively higher productivity and profitability.

Significant events in 1999 and 2000During the period, Norrland Center contributed toenhancing and establishing many enterprises. Graningeand Strömma’s customer service functions in Sollefteåand Storuman, plus Proffice Communication Center’sstart-up of a state-of-the-art Web call center inSollefteå, expected to be staffed by 300 people in afew years, were particularly notable.

Forecast 2000The distinctly accentuating demand pressure forpremises and skilled professionals in major city regions,with the resulting price and salary spiral, is expected tofurther increase the demand for Norrland Center's skillsand competencies in 2000. Considering the series ofpromising projects the enterprise is working on, the year2000 is expected to generate a healthy earnings figure.

Board 1999Näsman, Janaxel, ChairmanAndersson, PeterHjalmarsson, DanHolm, JohanSöderström, Lars-Olov

Chief Executive OfficerBengtson, Sture

66

T H E C O R P O R AT I O N S – O M G R O U P A B

OM Group AB is listed on OM Stockholm Exchangeand has its registered offices in Sweden.

Government holdings in OM Group AB arose coinci-dent with the merger of OM Group AB and StockholmsFondbörs AB (the Stockholm Stock Exchange). Theintention of this transaction was to consolidateStockholm — and thereby the Nordic region — as amarketplace in the face of accentuating competitionwith foreign stock exchanges and financial markets.However, the Government taking up part-ownership ofOM Group AB was a prerequisite of this merger.

OperationsOM Group AB is the parent company of the OMGroup (OM). OM owns and operates exchanges andclearing functions, and develops and sells technologyfor financial and energy markets. OM is divided intotwo business areas: Transaction and OM Technology.OM includes units such as OM Stockholm Exchangeand OM Fixed Income Exchange.

Operational results and significant events in 1999OM's operations sustained very brisk growth in 1999,with revenues rising by 25 per cent on 1998. OMTechnology registered the highest revenue growth,with gains of 37 per cent on the previous year.

Euro trading on OM Stockholm Exchange began inApril 1999, implying that corporations can be tradedin euro and Swedish kronor in parallel. On 21 June1999, equity trading on OM Stockholm Exchange andthe Copenhagen Stock Exchange were linked withinthe auspices of the Norex exchange alliance. At theend of November, the Oslo Stock Exchange signed aletter of intent. With OM Stockholm Exchange andthe Copenhagen Stock Exchange regarding participa-tion in Norex; discussions regarding the Norex

alliance are also in hand with further exchanges.On 12 March 1999, SAXESS, OM's new stock mar-

ket trading system, was brought on stream on OMStockholm Exchange.

External factorsGlobal markets are undergoing restructuring, withtrends favoring OM in several respects: the demandfor technology solutions from stock exchanges andother financial players is increasing, while within theframework of transaction-related activities, possibili-ties to compete over financial trading in Europe arebecoming apparent. New markets are being exposed tocompetition and exchange trading, as a consequence ofdevelopments including the deregulation of electricitymarkets.

In early 2000, OM and Morgan Stanley Dean Witterannounced their joint intention to form a new elec-tronic exchange, Jiway. This exchange, which will bebased in London, will offer access to trading in over6,000 US and European corporate equities. The inten-tion is that the exchange will open in September 2000for brokers in the UK, Sweden and Germany.

Board 1999Stenhammar, Olof, ChairmanBjörkman, Johan, vice ChairmanFranzén, ThomasIrstad, LarsLarsson, Per EMårtensson, ArneNyman, SvenRydén, Bengt

Chief Executive OfficerLarsson, Per E

SEK m 1999 1998 1997 1996 1995

Revenues 1,954 1,567 991 610 567Operating earnings before depreciation 692 480 375 204 230Gross margin, % 27 24 34 29 37Earnings after financial items 603 480 422 326 373Earnings after financial items adjustedfor non-operating items 613 511 440 361 373Net earnings 444 381 334 287 337Adjusted equity 2,808 2,740 1,613 1,479 1,354Return on equity, % 16 14 20 21 27Value-added us us us us usCash flow before investments 402 375 536 114 130Net investments 100 79 21 42 65

Dividends 2.33 3 4 4.5 5

Foreign share of sales 790 547 376 192 166Total employee headcount 994 623 335 266 217– Number of female employees 315 207 133 84 70– Number of employees in foreign countries 318 126 39 31 30

Government ownership holding 7.7% 7.7% - - -

67

T H E C O R P O R AT I O N S – S W E D E N P O S T A B

Business conceptThrough Sweden Post, anybody should be able to reachanybody else with messages and goods—physical orelectronic—rapidly, securely and on cost-efficient terms.

Sweden Post is to create value-added by combiningphysical and electronic flows, and through integratingSweden Post's services with customers' activities.

EvaluationSweden Post’s owner has established accounting andfinancial objectives for operations, objectives that areto contribute to the stable economic progress of opera-tions, ensuring sustainable returns on capital and assetgrowth. The objective is to achieve returns on equity atmarket levels. The owner's demands have been formu-lated in terms of return on adjusted equity after tax,which is defined as the risk-free interest rate plus a riskpremium. For the consolidated group, return on adjust-ed equity should be 10 per cent. With the currentgroup structure including the Postgirot postal giro ser-vice, the owner's established equity ratio target is 10per cent. Return on equity excluding items affectingcomparability was 3.4 per cent, and at the end of 1999,the equity ratio was 2.6 per cent. These levels are notsatisfactory, and measures must be taken in order toenhance profitability and consolidate the corporation'sfinancial position.

Consolidated earnings net of financial items inclu-ding items affecting comparability of SEK -4,301 mamounted to SEK -4,065 (1,075) m. The forthcomingreform of the service network has elicited provisions ofSEK 2,100 m for the wind-down of the existing branchnetwork operated under Sweden Post's own auspices.The items affecting comparability also include expenses

relating to the new pension calculation method, of SEK2,201 m. Excluding items affecting comparability, earn-ings were SEK 236 m. Compared with the previousyear's earnings (SEK 639 m excluding capital gains coin-cident with asset transfers to Sweden Post's pensionfoundation) this implies that underlying earnings dete-riorated by SEK 403 m. This downturn is attributable toinitiatives and increased expenses within the messagingand logistics activities. Lower interest levels in financingactivities were largely offset by lower expenses.

OperationsSweden Post's operations are directed by customerneeds, and accordingly, Sweden Post pursues the fol-lowing objectives: Satisfied Customers, Profitability,Personnel who Enjoy their Work and Renewal. Theseobjectives interrelate and constitute a prerequisite forthe long-term satisfaction of customer needs for ser-vice through profitable means. In order to ensurefeedback within the group, Sweden Post's controllingphilosophy has been embodied as business planningtools, with traditional budgeting replaced by objec-tives and control figures for various strategies. Withthe assistance of ISO system standards and the tools ofSweden’s USK quality standards, Sweden Post pursuesthe continuous expansion of its quality assurance ini-tiatives. Total quality is a precondition for SwedenPost achieving its objectives. The initial assumption ofSweden Post's view of quality control is that invariably,the customer judges quality. Accordingly, customersatisfaction is measured on an ongoing basis, with theresults of surveys forming the foundation of quality-enhancing measures. Quality measures are taken dailyusing a range of measurement systems.

68


Technical quality is measured daily in all criticalprocesses. In 1999, additional Sweden Post unitsreceived ISO 9000 accreditation.

Many new services and routines have been derivedin collaboration with customers, which both simplifycustomer processes and enhance quality.

Sweden Post has utilized a Satisfied CustomerIndex since 1991. Measurements are taken on an ongo-ing basis all year round, with customers grading indi-vidual factors that influence their satisfaction such asreliability, services offerings, reception and waitingtimes. Customers also respond to over-arching ques-tions regarding how Sweden Post is pursuing opera-tions. Every unit interfacing with customers is setobjectives monitored using the Index. In 1999, SwedenPost registered an overall score of 62 (59) on itsCustomer Satisfaction Index, implying that it exceed-ed its objective by one point.

Customer complaints and views are a vital source ofinformation for all quality assurance initiatives.Sweden Post's customer service function is open 24hours a day for questions, views or complaints.

Sweden Post's profitability excluding items affectingcomparability in earnings for the year, has reducedsharply. It has not been possible to offset reduced inter-est rates, accentuating competition—notably from newelectronic media—and reducing demand for counterservices through rationalizations. Competition willintensify across all markets where Sweden Post is active,and any opportunity to increase prices will be limited.Sweden Post's operations should be concentrated andfocused on developing messaging and logistics markets.

ViP (“Sweden Post People”) is the methodologySweden Post utilizes to monitor the objective ofPersonnel who Enjoy their Work. Through ViP,employees are able to respond to questions regardingparticipation, their developmental prospects, theirconfidence in Sweden Post's change process, and tooffer an assessment of their satisfaction with theiroverall working situation. This measure is expressed asa ViP Index, with an objective level for Sweden Post asa whole. Each quarter, approximately 2,000 managersreceive an update regarding their employees' satisfac-tion. For Sweden Post as a whole, the ViP Index stoodat 56 (52) for 1999, three points above the target level.The Renewal objective relates to creating the impetusfor change, novel thinking and for creating solutions forclients intended to ensure future competitiveness.

External factorsSweden Post's activities will be affected by rapidly accen-tuating competition. The development of new technolo-gy and change in the surrounding world, plus the acce-lerating, and more extensive, shift in customer needs,also exert their influence. National borders are beco-ming less important, while internationalization impliescompetition becoming more apparent. Increasingly, keycorporate decisions are made outside Sweden, while

many companies are expanding their markets. The needfor global service offerings also applies to Sweden Post,which accordingly, is pursuing the development ofregional and international partnerships.

Significant events in 1999 and 2000During the year, Sweden Post terminated its collabora-tion agreement with Nordbanken regarding the bank-ing services in MeritaNordbanken's range, includingthe Postbanken postal bank. This agreement ceases on31 March 2001.

During the autumn, Sweden Post and its staff orga-nizations agreed on the pursuit of a new model calledPosten Futurum governing future headcount downsi-zing. The objective is for redundant employees tosecure work outside Sweden Post, simultaneous withSweden Post being able to retain the competency nec-essary for future activities.

During the spring, Sweden Post acquired severalmajor shareholdings in transportation corporationASG AB. Subsequent to negotiations with ASG's othermajor shareholder, Danzas/Deutsche Post, Sweden Postdecided to sell its holdings to Danzas. A disputeregarding the interpretation of a shareholder agree-ment relating to shares Swedish industrial holding cor-poration Custos sold to Danzas, has resulted in thecurrent arbitration process.

At the end of 1999, Sweden Post increased its hol-dings in Pan Nordic Logistics AB, PNL, from 25 to 33per cent. Since 1997, PNL has been a logistics enter-prise jointly owned by Sweden Post and the Danish andNorwegian post offices. During 2000, these owners'international parcel activities will be transferred toPNL, with the intention of conferring customers withefficient logistics solutions, primarily within theNordic region.

Conciliation agreements have been reached regar-ding those legal processes indicated in previous annu-al reports.

Sweden Post divested 15 per cent of SvenskAdressändring AB to CityMail AB. The companiessigned a shareholder agreement that ensures equalinfluence for both owners of this company.

Sweden Post has secured its owner's — theGovernment's — mandate to sell Postgirot Bank AB(publ). The divestment process has begun.

Environmental initiativesPrimarily, the over-arching objectives of Sweden Post'senvironmental initiatives relate to limiting climaticinfluence, the ozone layer, exclusively natural acidifi-cation, clean air, the eradication of over-fertilization, anon-toxic environment and metals in natural cycles.

Sweden Post is obliged to report on its facilities forderiving heating and cooling from the ground or airaccording to Swedish environmental legislation. Anyinfluence on the external environment is regarded asnegligible.

69


SEK m 1999 1) 1998 1997 1996 1995

Revenues 24,217 24,359 23,424 22,725 22,271Potential supportOperating earnings before depreciation -2,939 2,076 2,305 1,733 1,633Gross margin, % neg 8.5 9.8 7.6 7.3Earnings after financial items -4,065 1,075 1,055 570 831Earnings after financial items adjusted for non-operating items n/a n/a n/a n/a n/aNet earnings -2,990 752 726 363 454

Adjusted equity 1,777 4,772 4,017 3,294 2,983Net debt -132 -1,658Net debt-equity ratio, % -7.4 -34.7

Return on equity, % neg 16.9 21.0 12.6 20.7Return on operating capital, % neg 29.1Value-added 9,862 14,695 14,785 14,596 14,611

Cash flow before investments 2) 1,609 -281 4,362 5,382 6,610Net investments 1,103 1,064 n/a n/a n/aof which R&D investments n/a n/a n/a n/a n/a

Dividends 0 0 0 0 0

Foreign share of sales3)


Government ownership holding 100% 100% 100% 100% 100%1) Items affecting comparability of SEK 4,301 m are included in the figures for 1999.2) Figures for the years 1995-1997 from the Cash Flow Statement according to FAR's (the Swedish Institute of Authorized Public Accountants) recommendation No. 10.3) Expression not definable.

Equal opportunitiesSweden Post will pursue a more even distributionbetween women and men at all levels, and in all busi-ness areas. Emphasizing women's and men's views andvalues creates wholeness and diversity, which cont-ribute to Sweden Post achieving its over-arching objec-tives more optimally.

Pursuing equal opportunities should be a naturaland integrated element of every manager's operationalresponsibilities.

Sweden Post's objective is to pursue a minimum of 40per cent representation of women and men within eachmajor working activity, and eventually, to eliminate thesalary differences that exist between men and womenwho perform similar tasks and have similar skills.

Each business area, profit center and company isresponsible for producing equal opportunities plans.Such plans should incorporate measurable objectivesand activity plans. Co-ordinated responsibility forequal opportunities initiatives lies with humanresources managers.

The monitoring of equal opportunities initiativesshould form part of business plans. Sweden PostHuman Resources is responsible for the annual co-ordinated update and support initiatives relating togroup-wide activities as stipulated by business plans.

Forecast 2000In 2000, Sweden Post will focus on a new nationwideservice network, offering greater accessibility.

Sweden Post will publish a forecast for the year2000 coincident with its first quarterly report.

Board 1999Bernhardsson, Göte, ChairmanDetter, DagOhlsson, Lars-BertilRagsten Pettersson, ChristinaSandberg, PeterSpång, UlfStrömberg, KarinTuvegran, IngelaKihlberg, Åke, Employee RepresentativeNyström, Björn, Employee RepresentativeHolm, Carina, Employee Representative, DeputyKarlsson, Monica, Employee Representative, DeputyMellström, Alf, Employee Representative, Deputy

Chief Executive OfficerGrabe, Lennart

70

T H E C O R P O R AT I O N S – S A M H A L L A B

Business conceptSamhall's task is to create meaningful work for handi-capped people, with prospects for personal develop-ment, where the need arises. To this end, Samhall pur-sues manufacturing and commercial activities,financed through Samhall's own sales revenues andadditional cost remuneration from central Govern-ment for the additional expenses Samhall bears vis àvis other enterprises.

EvaluationAchievements are measured against four objectives:employee headcount in terms of the number of hoursworked, the share of recruitment from prioritizedgroups (people with intellectual handicaps, with mul-tiple handicaps and with mental handicaps), the pro-portion of employees who transfer to employmentwith other employers, termed transfers, and financialearnings.

During 1999, Samhall's employee headcountexpressed as working-hours amounted to 32.1 million,which was slightly above the Government's stipulated31.9 million. Transfers stood at 3.9 per cent; the objec-tive is a minimum of 3 per cent. Recruitment from pri-oritized groups was 42 per cent; the objective is a min-imum of 40 per cent.

Samhall posted earnings net of financial items ofSEK -386 m for 1999, with non-recurring structuraland merger costs representing a SEK 293 m earningsburden. Accordingly, underlying operating earningsstood at SEK -93 m. However, during 1999, the corpo-ration effected a number of measures to consolidateprofitability and competitiveness. Samhall assessesthat the cost reduction program it has initiated willresult in annual cost-cutting of some SEK 280 m.Moreover, Samhall considers that the new organiza-tional structure it presented will not merely enhanceits costs structure, but also prospects for the corpora-tion's earnings ability. Despite negative earnings,Samhall enjoys favorable financial strength.

Additional cost remuneration reduced by SEK 194m during the year, or by 4.3 per cent. Given unchangedremuneration, Samhall's underlying operating earningswould have been approximately SEK 100 m. Duringthe same period, Samhall increased net revenues andvalue-added by 1 per cent, a positive development. Butdespite these improvements, earnings levels cannot beconsidered satisfactory.

OperationsSamhall is a Government-owned group incorporated in1980 following a parliamentary decision. The forma-

tion of Samhall—then known as Samhällsföretag—implied all the country's sheltered workshops, officecenters and industrial relief work gaining a single prin-cipal. Samhall is a labor market policy avenue to assistpeople with impaired faculties to secure work and asalary.

External factorsA selection of the essential strategic choices facingSamhall follows:

• Primarily, Samhall must safeguard its operationalidea and the quality of its efforts.

• Some way into the new century, half of Samhall'sjobs should be within services, and half in manu-facturing.

• More employees should work on an integrated basiswith the rest of a labor market.

• Samhall retains its objective of 3-6 per cent ofemployees annually to be active in the labor marketoutside Samhall.

• Central Government remuneration should reducedto a level of approximately 85 per cent of the salarycosts of handicapped employees.

• Samhall's business volumes should increase in boththe manufacturing and services sector.

• Samhall will strive towards total concept solutionsfor customers and strategic partnerships.

• Samhall will exploit the outsourcing trend throughthe creation of more jobs on contract and fromstaffing assignments.

• Samhall will develop the IT expertise and competenceenhancement initiatives amongst its employees.

Significant events in 1999 and 2000Samhall implemented extensive restructuring andreorganization in 1999. Its thirteen regional sub-sidiaries were reduced to seven. Sales companies havebeen wound down, with central administration in theparent company and servicing enterprise SamhallSupport AB being cut back heavily. The number ofbusiness areas was reduced from nine to five, withthe number of salaried employees in the groupreduced by about 300 as a consequence of the afore-mentioned realignments.

The overarching intention of the organizationaland other changes was to achieve a more homoge-neous and efficient group for the implementation ofSamhall's operational concept. Meanwhile, the rightconditions were created to expand business volumes,to achieve impetus and sustainability at a corporatelevel to operate both specialized human resources

71

SEK m 1999 1998 1997 1996 1995

Revenues, including additional cost remuneration 9,279 9,430 8,923 9,093 9,083of which additional cost remuneration 4,262 4,456 4,424 4,735 4,739Operating earnings before depreciation -248 -242 -62 61 178Gross margin, % -5 -5 -1 1 4Earnings after financial items -386 55 -288 -91 103Earnings after financial items adjusted for non-operating items -386 55 -288 -91 103Net earnings -385 39 -238 -71 73

Adjusted equity 1,246 1,631 1,592 1,829 1,900Net debt 0 0 0 0 0Net debt equity ratio - - - - -

Return on equity, % -27 2 -14 -4 4Return on operating capital, % -184 1 -72 -47 -21Value-added 2,484 2,453 2,335 2,990 2,243

Cash flow before investments -78 245 79 -110 74Net investments 275 213 208 260 281of which R&D investments 0 0 0 0 0

Dividends 0 0 0 0 0

Foreign share of sales, % 22 21 21 19 18Total employee headcount 26,183 25,693 25,914 27,250 28,085– Number of female employees, % 42 42 n/a n/a n/a– Number of employees in foreign countries 0 0 0 0 0


T H E C O R P O R AT I O N S – S A M H A L L A B

and commercial development, while also reducingtotal expenses. While these changes have not exertedany influence on the number or location of job oppor-tunities for handicapped employees, they shouldinstead provide better prospects to achieve nation-wide activities in the long term, with working loca-tions spread across the country.

Environmental initiativesSamhall pursues common working and external envi-ronment policies. Resources should be used as with asmuch care as possible, and with the intention of pre-venting damage to the external environment. Samhall'sproducts and services should be adapted to a philoso-phy incorporating the cycles of nature, while Samhallgroup companies should publicly account for theirimpact, and their efforts to prevent damage to, theexternal environment. Environmental initiativesshould be based on assessments of consequences, becentered on prevention and targeted on constantimprovement.

In 1997, six ISO 14001-based environmental man-agement systems were accredited in the Samhallgroup, followed by a further six in 1998, and anotherten in 1999. At the end of 1999, approximately 8 percent of group employees worked in activities withaccredited environmental management systems.

Equal opportunitiesThe group's equal opportunities initiatives are direc-ted by equal opportunities plans; Samhall has a group-wide plan, as well as individual plans for all sub-sidiaries with over ten employees. Apart from equalterms for progress and salaries for women and men,

the group also pursues a more even distribution inthose activities where job choices and recruitmenthave become associated with a particular sex.

Forecast 2000The forecast proceeds from the volume of job oppor-tunities for handicapped people, 26,800, correspon-ding to 31.9 million working hours. A 13 per centbilling increase is expected on 1999, with value-addedexpected to increase by approximately 11 per cent.

Several group business areas are expected to beexposed to price reductions in 2000.

Board 1999Tidlund, Håkan, ChairmanCarlsson, BarbroCurman, MariaEnnerfelt, GöranSvensson, HansKarlsson, BoelLundin, UlfFrideborger, Bengt, Employee RepresentativeJosefsson, Sören, Employee RepresentativeLitzell, Per-Olof, Employee RepresentativeSwedenborg, Birgitta, DeputyWahlström, Victor, DeputyForsberg, Berth, Employee Representative, DeputyGardelin, Olle, Employee Representative, DeputyLeppäniemi, Sven Olof, Employee Representative,Deputy

Chief Executive Officer and PresidentGunnarsson, Göran

72

T H E C O R P O R AT I O N S – S A S G R O U P A B

Business concept/objectivesSAS Sverige AB is to pursue active ownership of theSAS Consortium, with the intention of ensuring SAS’slong-term progress through active board involvement.

The SAS Consortium's (SAS) central long-term taskis to offer competitive air links within, between and toand from every Scandinavian country, alongside selectedairlines.

SAS’s business concept is to serve the Scandinavianmarket through offering air services with a particularfocus on frequent business travelers, subject to satis-factory profitability. SAS also offers travel productstargeted on private travelers through the SAS Pleasureprogram. SAS Cargo makes a complementary earningscontribution to SAS by offering efficient and profitablefreight solutions alongside partners.

SAS’s overarching objective is for all its customersto be satisfied, and want to travel with SAS again, withSAS achieving competitive shareholder value perfor-mance. The shareholder value objective comprises twopartial objectives: one relating to returns for owners,and one relating to SAS’s financial performance.Calculated as an average over a business cycle, theowner's objective is returns of 14 per cent of totalannual share price growth plus dividends. The finan-cial objectives are expressed as a minimum of 17 percent CFROI (cash flow return on investments), plus aminimum of 12 per cent market returns on capitalemployed, both measured over a business cycle.

SAS is also subject to a series of objectives relatingto customers, quality, human resources and the envi-ronment.

EvaluationThe previous distinct cyclical downturn for the airlineindustry bottomed out around 1990. Examining SAS’sshare price performance from 1990 -1999 reveals anaverage annual total return TSR (total shareholder rev-enues) of 16.3 per cent, beating SAS’s objective by 2.3percentage points.

During the period 1994-1998, SAS maintainedhealthy profitability and returns, measured in terms ofCFROI, exceeding its objective, varying between 22and 32 per cent. In 1999, this measure dropped to 14per cent-plus. In terms of return on capital employed,SAS has achieved figures of between 17 and 24 per

cent since 1995, registering 9 per cent in 1999.Thus it is apparent that SAS’s profitability deterio-

rated significantly in 1999, and the same applies tomuch of Europe's airline industry, where the last yearwas very demanding. The earnings declines can beexplained by unexpectedly hesitant traffic growth,accentuating excess capacity through the sector andaltering travel patterns. For SAS, this implied a sharpdownturn in the Business Class segment and decliningunit revenues.

In order to ensure its long-term competitiveness,SAS will implement a further series of internal pro-ductivity-enhancing measures and thereby, SAS’sefforts to further reduce unit costs will continue undi-minished.

OperationsSAS Sverige AB pursues air traffic activities in the SASAirline Systems (SAS) and SAS Commuter consortiathrough consortium agreements with SAS DanmarkA/S and SAS Norge ASA. SAS pursues activities asso-ciated with flight operations through subsidiaries andassociated companies. These corporations form SASGruppen, which is 21.4 per cent owned by the SwedishGovernment. SAS Sverige AB's primary activitiescomprise the ownership and management of its stake(3/7) in the SAS Consortium, and, to some extent, thepursuit of its own financial management.

Some 85 per cent of SAS passenger revenues (net)for 1999 were derived from routes in Europe includingdomestic Scandinavian traffic.

As part of the Star Alliance, SAS’s partnershipstrategy is to develop a global route system and con-sistent products alongside its partners.

External factorsAirlines are a global growth industry; the world's twobiggest aircraft manufacturers — Airbus Industriesand the Boeing Company — forecast average annualgrowth of 4.85 per cent and 4.7 per cent respectivelyover the next 20 years.

In 1999, the industry was hampered by pronouncedovercapacity, although current indications suggest thatthe capacity expansion of recent years may level off.

In 1999, new aircraft deliveries comprised approxi-mately 8 per cent of the global fleet, and in 2002, this

73

SEK m 1999 1998 1997 1996 1995

Revenues 41,508 40,946 38,928 35,189 35,403Operating earnings before depreciation 2,765 4,115 4,118 3,668 4,761Gross margin, % 6.7 10.1 10.6 10.4 13.5Earnings after financial items 1,846 2,857 2,258 1,837 2,659

Adjusted equity 17,061 16,110 14,241 13,030 10,588Net debt 529 2,079 1,345 1,754 2,544Net debt-equity ratio, multiple 0.03 0.13 0.1 0.1 0.2

Return on equity, % 7.6 12.9 11.4 10.9 18.5Return on operating capital, % 8.4 17.3 15.5 13.7 20.4Value-added 20,000 1) 20,300 1) n/a n/a n/a

Cash flow before investments 1,932 4,137 4,256 3,814 4,881Net investments 5,870 6,112 3,256 4,202 1,399of which R&D investments n/a n/a n/a n/a n/a

Dividends 658 658 658 493.5 493.5


Total employee headcount 28,863 27,071 25,057 23,607 22,731– Number of female employees 12,394 11,310 10,071 9,432 8,780– Number of employees in foreign countries 19,387 18,619 16,857 n/a n/a

Government ownership holding 21.4% 21.4% 21.4% 21.4% 21.4%1) Estimate

T H E C O R P O R AT I O N S – S A S G R O U P A B

figure is expected to be about 4 per cent. The numberof aircraft taken out of service is expected toincrease from some 2 per cent in 1999 to about 2.5 percent in 2002.

Significant events in 1999 and 2000SAS divested parts of its shareholdings in computernetwork corporation Equant N.V.

SAS International Hotels divested hotel real estate inAmsterdam and London.

SAS announced its intention to divest a proportion ofthe shareholding in British Midland to Lufthansa.

SAS ordered a further five de Havilland Q400 aircraft.SAS’s Board has resolved to acquire 10 Airbus air-

craft with a total value of SEK 10 bn, and to acquire12 Airbus A321-100 large aircraft for Europe andScandinavia, worth SEK 4.5 bn.

SAS established a corporation alongside GECAS; 30McDonnell Douglas MD-80 aircraft have been trans-ferred to this entity.

Environmental initiativesThe environmental strategy for SAS’s operations is tofunction by generating the minimum environmentalimpact. SAS pursues the status of one of the airlineindustry's leading corporations in the environmentalsphere. SAS’s environmental management systems arebased on every SAS manager with authorization tomake decisions and budget responsibility to be respon-sible for including environmental evaluations as an ele-ment of all decision documentation.

Equal opportunitiesSAS strives towards women and men enjoying equalprospects for employment, progress and promotion,

equal salaries and other terms for the same work.Moreover, SAS pursues a more even distributionbetween men and women in those roles where tradi-tionally, job choices have become associated with aparticular sex. Sexual harassment will not occur.

Forecast 2000After a poor 1999, SAS expects earnings from opera-tions in 2000 to be far better. Economic progress onkey markets is expected to be more favorable than lastyear, contributing to greater air traffic growth. Severalmarkets are still burdened by excess capacity,although restraint in new capacity expansion isexpected right across the sector, simultaneous withvery high excess capacity on the Norwegian marketnow being reduced. SAS’s cost performance is expec-ted to witness further improvement through the ope-rational enhancement program now in hand. In 2000,unit costs are expected to be lower than in 1999.

Excess capacity means that prices remain underpressure.

Board 1999Berggren, Bo, ChairmanEidem, BjørnEldrup, AndersJansson, UrbanNorvik, HaraldSchrøder, HugoJacobsen, Helmuth, Employee RepresentativeKindert, Leif, Employee RepresentativeLilletun, Ingvar, Employee Representative

Chief Executive OfficerStenberg, Jan

74

T H E C O R P O R AT I O N S – S I S E C O - L A B E L L I N G

Business conceptTo stimulate the development and usage of products,which from an environmental perspective, are superiorto those comparable in other respects, and to cont-ribute to sustainable long-term progress through theuse of voluntary environmental labeling.

EvaluationThe short-term objectives — of continually increasingthe number of criteria and accredited products — havebeen satisfied (from 0-52 criteria in ten years to a totalof 470 licenses issued in 1999). Awareness of, and confi-dence in, labeling has made good progress, fully satisfy-ing established objectives. The long-term objective, ofcontributing to sustainable progress, is under evaluation.

OperationsThe corporation is to select product groups where envi-ronmental labeling offers the greatest possible benefitas an environmental policy instrument. Two labels arein use, the Nordic Swan, and the European Flower.

Both these labels are to become renowned, attractiveand in demand by consumers and producers throughthe use of aggressive communication and marketing.

External factorsOpportunities:• Increased public interest in environmental issues.• Increased awareness of the importance of environ-

mental product choices amongst consumers andprofessional purchasers.

• Increased interest in environmental labeling in theservices sector.

Risks:• Declining interest in environmental issues.• Sectors boycotting environmental labeling.• Certain multinational corporations adopting an

erroneous assessment of environmental labeling asan obstacle to trade.

Significant events in 1999 and 2000In 1999, pan-Nordic environmental labeling took itsfirst major step towards services accreditation throughthe adoption of criteria documentation for hotels, andthe first hotel accreditation.

In 2000, new Nordic guidelines will be establishedfor the development of criteria. Pan-Nordic environ-mental labeling is celebrating its tenth anniversary, andwill be subject to external assessment.

Initiatives relating to revised EU environmentallabeling regulations continue at a Union level.

Environmental initiativesSIS Eco-Labelling pursues an environmental policy,which stipulates that its environmental initiatives

should be characterized by a holistic view, be preventa-tive and improve continuously, with the environmentalimpact of operations being limited to the maximumpractical and financially viable extent, for its collabo-ration partners and suppliers to pursue active environ-mental initiatives and employees encouraged to takeactive environmental responsibility. SIS Eco-Labellingutilizes quality assurance and environmental manage-ment systems; the corporation will work towards itssystems securing ISO 9001 and 14001 accreditationrespectively during the year.

Equal opportunitiesIn the contexts of recruitment, the distribution ofworking tasks, salary levels or promotion, no distinctionis drawn between sex, race, nationality, religion or age.

Forecast 2000The demand for environmental labeling from con-sumers and producers is expected to remain healthy in2000. SIS Miljömärkning AB has particular hopes of theenvironmental accreditation of hotels. The corporationexpects revenues to increase by approximately 10 percent to SEK 35 m, generating earnings of SEK 2 m.

Board 1999Thiberg, Sven, ChairmanBerg, IngolfBlix, KerstinKnutsson, PernillaLundin, SvanteMattsson, AnnaaSköldefors, Walter

Chief Executive OfficerUnge, Ragnar

SIS Eco-Labelling

SEK 000 1999 1998

Revenues, including support 37.1 36.6of which support 2.8 4.6Gross margin, % 14 14Earnings after financial items 5.5 4.6Net earnings 4.6 3.3

Adjusted equity 17.3 11.7Net debt 5.0 4.1Net debt-equity ratio, multiple 0.36 0.35

Return on equity, % 28 28Return on operating equity, % 28 28Value-added 18.0 17.7

Cash flow to investments 0.3 1.0Net investments n/a n/a

Dividends 0 0

Foreign share of sales - -

Total employee headcount 28 25– Number of female employees 17 16– Number of employees in foreign countries 0 0


75

T H E C O R P O R AT I O N S – S W E D I S H M A R I T I M E A D M I N I S T R AT I O N

ObjectivesThe Swedish Maritime Administration,(SJV) will:

• Promote safe, environmental and efficient mari-time traffic.

• Respond to the infrastructural service needs ofmaritime traffic in the form of shipping lanes,pilot services, ice-breaking, nautical information,communication and servicing.

• Assume responsibility for sea rescue.• Pursue safety onboard Swedish maritime vessels

regardless of their location.• Protect the Swedish merchant fleet's competitive

position.

In an economically viable manner, SJV will contributeto efficient long-term sustainable transport for its cit-izens and businesses nationwide. The objective forreturns is that earnings after tax equivalent willamount to 7 per cent of shareholders' equity; SJV’sminimum equity ratio is 30 per cent. Shipping lanefees may increase by a maximum of the net price indexcalculated from 1995 onwards.

EvaluationReturns on equity after tax equivalent were 5.7 percent after the elimination of SEK 104 m of non-recur-ring expenses for a new agreement on working hourswith Sweden's pilots. SJV's equity ratio was 41 percent in 1999, implying that the target was satisfied.Earnings after financial items were SEK -82 m in 1999.

OperationsSJV is active on a number of shipping lane projects,including one relating to lanes in Stockholm. The pilotfleet is being modernized; Sweden’s sea and air rescueservices have now been integrated, while sea measure-

ment assignments are being undertaken, received fromdefense and civilian principals. SJV's internationalconsulting activities have experienced sustained vol-ume growth, with the majority of assignments in theBaltic region.

External factorsGoods volumes in the international maritime fleetcontinued to increase in 1999, while ferry traffic wascomparable to previous years. The Swedish-flaggedmerchant fleet has lost market shares of Swedish mar-itime traffic. In recent years, the EU has noted thecompetitive position of ports, and intends to submitproposals on this issue in the near future. Port ownersare planning an investment level of approximately SEK6.5 bn in the period 1999–2003.

Significant events in 1999 and 2000Environmentally differentiated shipping lane fees havenoted a considerable success in terms of the reductionof sulfur emissions. At the end of 1999, 1,283 vesselshad secured sulfur accreditation. In February 2000,the ice-breakers Tor and Njord were divested to a fo-reign buyer. The first of three ice-breaking offshorevessels will be delivered this year. SJV has reached apreliminary agreement with the Municipality ofGothenburg regarding investments in improved ship-ping lanes to Gothenburg harbor; this agreement issubject to Government approval. SJV is in the midst ofan extensive reorganization process, with the roles ofthe sector and authorities differentiated from the pro-ducer; the number of maritime traffic regions will bereduced.

Pilot fees will be increased by an average of 15 percent from 1 July 2000. During the three-year period;the ice-breaker and sea measurement fleet will betransferred to civil crewing.

76

T H E C O R P O R AT I O N S – S W E D I S H M A R I T I M E A D M I N I S T R AT I O N

Environmental initiativesSJV works according to an environmental policy andaction plan promoting environmental maritime traffic.The Government has assigned the agency to implementan environmental management system by no later thanDecember 2000.

Equal opportunitiesSJV has an equal opportunities plan with overall andaction-oriented objectives for its equal opportunitiesinitiatives, established annually.

Forecast 2000The Öresund Link between Sweden and Denmarkopened to traffic in summer 2000, and is expected toimply an annualized revenue shortfall of SEK 40 m. Anorganizational review will result in headcount down-sizing. SJV anticipates restructuring expenses of theorder of SEK 70 m to burden earnings.

Board 1999Färm, Gunnel, ChairmanLindström, AndersNilsson, ElisabethNyström, ElizabethOlsson, KarinOlsson, KentPettersson, UllaStarkerud, LarsAndersson, Daniel, Employee RepresentativeKarlsson, Göte, Employee RepresentativePettersson, Birgitta, Employee RepresentativePålsson, Uno, Employee Representative, DeputyHoffrén, Tapani, Employee Representative, DeputyJohansson, Lennart, Employee Representative, Deputy

General DirectorLindström, Anders

SEK m 1999 1998 1997 1996 1995

Revenues, including support 1,428 1,402 1,353 1,500 1,268of which support 104 106 119 101 109Operating earnings before depreciation -10 286 87 99 206Gross margin, % -1 22 7 7 18Earnings after financial items -82 231 21 43 168Non-operating items -82 231 21 43 168Net earnings -82 166 15 31 121

Adjusted equity 805 942 1,080 1,098 1,093Net debt 395 111 32 12 15Net debt-equity ratio, % 49 12 3 1 1

Return on equity, % -9 16 1 3 12Return on operating capital, % -8 19 1 2 12Value-added 815 852 805 722 754

Cash flow before investments -45 341 -15 113 147Net investments 97 42 60 68 90of which R&D investments - - - - -

Dividends 0 55 305 33 26


Total employee headcount 1,503 1,516 1,545 1,496 1,610– Number of female employees 246 222 234 216 233– Number of employees in foreign countries - - - - -


77

T H E C O R P O R AT I O N S – S O S A L A R M S V E R I G E A B

Business conceptAt present, SOS Alarm is the country's only concent-rated alarm reception and response control specialist.Since operations commenced in 1974, the corporationhas been responsible for the coordination of rescueassignments for entities including the police, fire ser-vice, ambulance, sea rescue, 24-hour medical, moun-tain rescue and military services.

One special aspect of SOS Alarm is that the corpo-ration's ownership structure makes it independent ofalarm installers, 24-hour service operators and emer-gency services.

EvaluationEarnings after financial items in 1999 were SEK 21.7 m,the downturn on 1998 attributable to the sale of anoperating unit in 1998, amounting to SEK 7.2 m, andearnings deterioration in subsidiaries, of SEK 2.0 m.

The earnings actual implies that SOS Alarm's equityratio was 40 per cent, exceeding the 30 per cent targetSOS Alarm's owners had established for long-termfinancial performance. As a consequence of the positiveprogress in recent years, and the fact that SOS Alarm'sequity ratio has attained target levels, the owners haveestablished new complementary objectives for activities.This objective is a return on equity after tax of 8 percent from 2000 onwards. The company is now also start-ing to pay out dividends to shareholders, SOS AlarmAB’s dividend pay-out target corresponding to 5 percent of total shareholders' equity.

OperationsSOS Alarm is owned by the Swedish Government (50per cent) the Federation of Swedish of CountyCouncils (25 per cent) and Förenade Kommunföretag(associated municipal enterprises, 25 per cent). SOSAlarm manages the 112 emergency telephone service

in Sweden. On assignment from the Government, SOSAlarm is responsible for the SOS and alarm servicesfor Government rescue services. This assignmentimplies collaboration with sea, air and mountain res-cue services and the police. SOS Alarm is also respon-sible for the ambulance alarm and direction service onbehalf of county council health authorities. Primarymunicipalities have assigned SOS Alarm for alertinglocal authority emergency services.

SOS also offers a selection of other alarm services,which can be combined with the SOS service, to busi-nesses, the public sector and private individuals. Suchservices include automatic alarms, security alarms,personal alarms, 24-hour telephone messaging, health-care information and the coordination and direction oftransportation.

External factorsNew conditions in the telecommunication and ITspheres, as well as new needs and working methodsamongst the corporation's customers will set newdemands on SOS Alarm's expertise, technology andorganizational resources. The Board has incorpora-ted these changes into its decision regarding thecorporation's future direction. SOS Alarm activelypursues the development of new services conceptsthrough the use of the possibilities new technologyimplies.

Significant events in 1999 and 2000In 1999, SOS Alarm received approximately 16 millionalarm calls on the 112 telephone line and other alarmservices.

During the year, SOS Alarm pursued extensiveskills enhancement measures, prioritizing disciplinesincluding interview and conversation methods.Additionally, SOS Alarm has implemented health

78

T H E C O R P O R AT I O N S – S O S A L A R M S V E R I G E A B

training and further education in the healthcaresphere. The corporation's skills center has been relo-cated from Uppsala to the Stockholm head offices,where a high proportion of training material is beingtransferred to interactive media in order to rationalizethe training process.

The corporation's administrative infrastructure wasmodernized during June the year, through measuresincluding the implementation of a network betweenSOS centers.

New services concepts have been developed for per-sonal alarms, security alarms and the remote supportof customers' alarm units.

The "Future Dialogue 2000" program, which gotunderway in autumn 1998, was focused on the 1999operational year. This initiative generated extensiveand valuable material, which provided the foundationfor the Board's decision regarding the enterprise'sfuture operational focus.

Environmental initiativesSOS Alarm pursues environmental issues actively,with activities regulated by a pre-determined environ-mental policy. Operations exert very little adverseenvironmental impact.

Equal opportunitiesSOS Alarm's equal opportunities initiative are formu-lated through an established equal opportunities policy,

which stipulates an action plan for the management ofsexual harassment and intimidation.

Forecast 2000SOS Alarm's operations enjoy a stable foundation pro-vided by long-term collaboration agreements withmajor customers. Operations and earnings over thecoming years are expected to make positive progressthrough initiatives on a refined services offering andrenewed operational platform.

Board 1999Persson, Curt, ChairmanJönsson, Benny, Deputy chairmanLindell, Lars-Olof, Deputy chairmanBlomberg, VincentBrögger, LiseFredlund, MichaelLennerwald, IngridMyhlback, LennartRålin, Berit, Employee RepresentativeWallin, Ove, Employee Representative

Chief Executive OfficerBergqvist, Sven-Runo

SEK m 1999 1998 1997 1996 1995

Revenues 553.3 536.7 537.7 525.6 478.7Operating earnings before depreciation 86.3 95.5 89.9 53.1 37.7Gross margin, % 15.6 17.8 16.7 10.1 7.9Earnings after financial items 21.7 31.1 23.4 23.7 17.7Earnings after financial items adjustedfor non-operating items 21.7 31.1 23.4 23.7 17.7Net earnings 15.4 21.1 42.5 16.5 12.3

Equity capital 137.3 121.9 100.9 65.5 49.0Net debt 68.9 85.3 100.0 0.0 0.0Net debt-equity ratio, % 50.2 70.0 99.1 0.0 0.0

Return on equity, % 11.9 18.9 51.1 28.8 30.8Return on operating capital, % 27.0 37.5 - - -Value-added 386.7 377.5 372.9 336.0 337.5

Cash flow before investments 51.7 59.0 -13.2 31.6 -60.0Net investments 34.2 35.8 30.7 61.2 68.7of which R&D investments 0.0 0.0 0.0 0.0 0.0

Dividends 6.9 0.0 0.0 0.0 0.0

Foreign share of sales 0.0 0.0 0.0 0.0 0.0



79

T H E C O R P O R AT I O N S – S P E C I A L F A S T I G H E T E R S V E R I G E A B

Business concept/objectivesSpecialfastigheter Sverige AB is to offer public author-ities specialist premises and the associated expert ser-vices through long-term relationships and efficient realestate management nationwide.

EvaluationSpecialfastigheter Sverige AB satisfied its financial andother objectives in 1999.

OperationsSpecialfastigheter Sverige AB is the parent company ofa group that encompasses the subsidiaries Kriminal-vårdsfastigheter Sverige AB, Polisfastigheter SverigeAB, Försvarsfastigheter Sverige AB, FastighetsbolagenRäddningsskolor Sverige AB, and FastigehtsbolagetSpecialskolor Sverige AB. The real estate holding alsoincludes properties rented by the GovernmentCompulsory Care Authority. SOS AB is headquar-tered in Linköping, and has established managementresources in Malmo, Gothenburg, Norrköping, Öre-bro, Stockholm and Härnösand. Specialfastigheter wasspun off from the Civitas group on 1 July 1998,becoming a corporation wholly owned by the CentralGovernment Offices (Ministry of Finance).

External factorsSpecialfastigheter Sverige AB's largest tenants areGovernment authorities with long-term rental agree-ments, implying that the corporation can effect stableand long-term operational planning.

Significant events in 1999 and 2000During 1999, Specialfastigheter secured all funding onthe private credit market; during 2000, the corpora-tion is continuing to emphasize maintenance measuresin accordance with established plans.

Environmental initiatives Specialfastigheter has adopted an environmental poli-cy with undertakings to strive towards sustainableprogress, reduced environmental impact and the con-tinuous improvement of environmental performance.Specialfastigheter has environmental standards for itssuppliers and contractors. Training has conferred allemployees with the basic environmental knowledgenecessary in their day-to-day processes.

Equal opportunitiesSpecialfastigheter is evolving a long-term corporate cul-ture where equal opportunities issues become a manda-tory element of human resources development at all le-

vels. An equal opportunities plan has been formulated,with all managers ensuring that it is observed annually.

Forecast 2000Consolidated revenues are expected at SEK 900 m for2000, although earnings are expected to be slightlylower than in 1999 as a consequence of increasingmaintenance expenses.

Board 1999Gustafsson, Eva-Britt, ChairmanBalazsi, PerFalkman, EvaJohansson, Bengt A WKjellander, ClaesLennersand, HåkanWästlund, HolgerZiegler, Ingemar, Employee RepresentativeCling, Thord, Union Representative, SIFHansson, Hans, Union Representative SEKO

Chief Executive OfficerWästlund, Holger

SEK m 1999 1998 1997

Rental revenues 777 602 432Operating surplus 486 398 356Depreciation on real estate -163 -129 -130Operating earnings 296 248 206Capital gains/losses on real estate divestment -1 0 -2Earnings after financial items 149 114 91Net earnings 115 80 17

Adjusted equity 1,334 1,334 658Market value of real estate n/a n/a n/aBook value of real estate 5,277 4,898 3,065Property yield, % 9.5 10.0 12.8Net debt 3,648 3,278 2,301Equity ratio, % 24.1 26.2 18.8

Cash flow before investments 329 289 2Net investments including real estate acquisitions/divestment 584 1,862 1,741

Floor area, 000 m2 986 797 611Vacancy, % 1 1 1

Dividends 60 115 20

Total employee headcount 91 87 n/a– Number of female employees 16 14 n/a– Number of employees in foreign

countries 0 0 n/a

Current holding:rental revenues, area, 000 m2

– Training real estate 85 109 n/a– Institutional real estate 437 637 n/a– Defense real estate 83 107 n/a– Other 172 133 n/a

Government ownership holding 100% 100% 100%

80

T H E C O R P O R AT I O N S – S W E D I S H N AT I O N A L H O U S I N G F I N A N C E C O R P, S B A B

Business concept/objectivesSBAB's business concept is to finance housing simply,while offering value for money. Through efficient ope-rations, SBAB is to contribute to competition anddiversity.

The owner's required rate of return for the corpo-ration implies that operations are to generate earnings,which calculated in terms of return on equity, corres-pond to five-year Government bond yields plus fivepercentage points, after tax.

EvaluationSBAB's earnings in 1999 did not satisfied its owner'srequired rate of return, for several reasons. Net interestincome was lower than preceding years, primarily depen-dent on the performance of yields during 1998 and 1999.Expenses were higher, for reasons including private mar-ket initiatives. During the year, SBAB initiated severalmeasures intended to increase returns to a level consis-tent with the owner's requirements, while simultaneous-ly contributing to increased competition and diversity.Competition between housing mortgage institutions hasimplied sustained low margins on new lending andextended credits. SBAB is contributing to this competi-tion with very attractively priced housing finance. At theend of 1999, SBAB's tier 1 capital adequacy ratio was 6.5per cent; its objective is to reach 7 per cent during 2000.

OperationsIn the Corporate Market business area (lending toapartment blocks) SBAB has a market share of approx-imately 23 per cent, while on the Private Market side(lending to single-family houses, leisure houses andtenant-owner housing), the market share is some 6 percent (market shares based on the Riksbank's lendingstatistics).

On the corporate side, activities are focused onconsolidating SBAB's market position and on a transfer

from municipal housing corporations to smaller andmedium-sized privately owned real estate players.Lending volumes on the private market are increasing;in 1999, SBAB's share of the net expansion of themortgage institution lending stock for single-familyhouses and tenant owner accommodation was around15 per cent. The intention is to achieve a market shareof up to 10 per cent.

The cost efficient development of IT systems is animportant element of the strategy for achieving thecorporation's objectives. The intention is to effect adistinct increase in the share of loan applicationssourced from the www. The expansion of SBAB'sInternet lending service will enable further automationof credit processing, and reduce lead-times from appli-cation to loans granted.

The first securitization was implemented in early2000, and using this funding technique, opportunitiesto expand lending without burdening shareholders'equity are created.

Through the continued pursuit of collaborations,primarily with Länsförsäkringar, Sparbanken Finn andSparbanken Gripen, SBAB has secured distributionchannels additional to the Internet.

External factorsNew technology is becoming increasingly apparent onthe financial markets, with Internet solutions replacingmuch of the banking market's conventional distributionmedia, and in this context, housing mortgages are noexception. SBAB is at the forefront of efforts to increasemortgage customers' awareness of the Internet as a costefficient housing mortgage channel. However, any wwwconcept is easy to replicate. New players will becomeestablished on the market, contributing to sustainedmargin pressure. Nevertheless, alongside SBAB, the fourinstitutions associated with Sweden's banks will contin-ue to dominate the market for some time yet.

81

T H E C O R P O R AT I O N S – S W E D I S H N AT I O N A L H O U S I N G F I N A N C E C O R P, S B A B

Significant events in 1999 and 2000SBAB reorganized its Corporate Market side, reducingthe number of sales territories from five to four —South, West, East and the Major Customer unit.Lending to municipal housing corporations is redu-cing, replaced by lending to listed real estate corpora-tions and private landlords with smaller holdings. Onthe Private Market side, SBAB's IT investments conti-nued, with the intention of further enhancing and sim-plifying the Internet mortgage routines. In 1999, SBABinitiated a collaboration with IKANO-banken, whichintermediates SBAB's first mortgage loan.

SBAB is re-stating its ambition to achieve an equaldivision between the domestic and international mark-ets. In 1997 and 1998, SBAB AB encountered difficul-ties in realizing the strategy as a consequence of turmoilon several international markets. During 1999 the situ-ation stabilized, implying that SBAB was able to re-takethe initiative on the Japanese market, providing thefoundation for efficient funding in the new euro market.

Environmental initiativesSBAB developed an environmental management systemin 1998.

Equal opportunitiesSBAB's equal opportunities plan is revised annually incollaboration with staff organizations, and is finalizedby the Board.

Forecast 2000In 2000, SBAB is expected to generate operating earn-ings comparable with 1999, with competitive pressuresustaining, or accentuating further. An action plan tosecure sustained improvement of operating earningsand consolidating tier one capital adequacy ratios hasbeen initiated. SBAB’s major initiative on the Internetas a distribution channel for housing mortgages isexpected to imply substantial effects in forthcomingyears. Shifts in the composition of SBAB's lendingportfolio will result in gradual margin expansion fornew lending, simultaneous with measures aimed atreducing basic administrative expenses generatingeffects towards the end of 2000.

Board 1999Eliasson, Ingemar, Chairman Rung, Sören, Deputy Chairman Granström, Per Erik Klangby, Lars-Erik Kotajoki, Juha Lindstam, Leif Marking, Bo Ragsten Pettersson, Christina Wiklund, Karin

Chief Executive OfficerMalm, Christer

SEK m 1999 1998 1997 1996 1995

Net interest income 784 843 944 1,151 1,327Net commission income -2 9 9 27 82Earnings before credit losses 385 497 679 890 1154Credit losses -12 1 203 318 638Operating earnings 397 496 476 572 516Net earnings 285 356 342 411 374

Total assets 150,982 155,304 141,024 144,832 152,364Lending 145,543 144,660 136,346 135,175 136,925Adjusted equity 3,686 3,497 3,291 3,419 3,785Return on equity, % 8.0 10.5 10.2 11.4 13.6Tier one capital adequacy ratio, % 6.5 6.9 7.8 8.5 8.5capital adequacy ratio, % 9.5 10.6 12.7 14.8 15.6

Income/cost ratio excluding credit losses 2.0 2.4 3.5 4.1 5.5Credit losses as a percentage of lending -0.01 0.00 0.15 0.24 0.47Investments margin 0.51 0.57 0.66 0.77 0.88

RatingStandard & Poor: short-term funding A-1+ A-1+ A-1+ A-1+ A-1+Lomg-term funding AA- AA- AA- AA- AA-Moody´s: short-term funding P-1 P-1 P-1 P-1 P-1Lomg-term funding A1 A1 A1 A1 A1

Dividends 89 96 150 470 777Total employee headcount 374 312 261 257 232– Number of female employees 210 170 139 142 124– Number of employees in foreign countries 0 0 0 0 0


82

T H E C O R P O R AT I O N S – S W E D I S H S T AT E R A I L W AY S , S J

Business concept/objectivesSJ (Swedish State Railways) has been assigned by itsowner to operate efficient rail traffic on good businessterms. SJ is to maintain strong and favorable finances,while progressing as an efficient and competitivetransportation corporation, with rail traffic as its corebusiness. Any group activities that do not enhance thecore business on favorable terms shall be divested.Additionally, SJ will have the opportunity to act onselected international markets, as a support to its corebusiness.

Using rail traffic as its core business, the SJ group'sbusiness concept is to develop, produce and sell:

• Travel for people such as journeys to and fromwork, business and leisure travel.

• Efficient logistics and transportation solutions forcorporations intended to enhance their competi-tiveness.

SJ has a vision of satisfied customers and proudemployees in a lively corporation. This vision has beentranslated into customer satisfaction, employee prideand financial performance objectives. The financialperformance is assessed from the perspective of theobjectives set by SJ's owner, which up to and including1999, constituted a return on equity of 7 per cent anda minimum long-term equity ratio of 30 per cent. Newobjectives have been formulated from 2000 onwards,implying a target return on capital employed of 8 percent and a maximum net debt-equity multiple of 2.5.Additionally, SJ is to achieve resource efficiency atleast equal to leading competitors, and a developmentportfolio that ensures future revenue composition.

EvaluationIn 1999, SJ's return on equity was 10.1 per cent,

implying that in this respect, its owner's required rateof return had been satisfied. SJ's equity ratio was a low8.7 per cent, suffering adversely from a transfer ofassets from SJ to the National Rail Administration, andthe growth of zero coupon bonds, which are offset byan equal liability in SJ's Balance Sheet. Adjusted forthis item, the equity ratio was 12.3 per cent—sub-stantially below the 30 per cent objectives. The prima-ry causes of the corporation's low equity ratio is insuf-ficient earnings generated in recent years, and the factthat several major loan-financed investments wereimplemented during the 1990s.

Return on capital employed was 7.0 per cent, withthereby, SJ achieving its established target ahead of2000. The net debt-equity multiple was 5.2, some wayshort of the objective applying from 2000 onwards. SJcurrently has a sensitive capital structure, for reasonsincluding elements of activities operating unprofitablyfor several years, which has eroded shareholders' equi-ty. To achieve the debt-equity relationship target,enhanced profitability is the primary necessity. Anypotential earnings gains will not be sufficient, andaccordingly, operational divestments will be necessary.

OperationsThe SJ group's legal structure comprises Governmentagency and parent company in SJ, the Swedcarrier group,which in turn comprises a parent company ABSwedcarrier and its subsidiaries. Since 1 January 2000,actual operations have been pursued through six sectors:SJ Resor (travel), SJ Cargo Group, SJ Färjetrafik (ferries),SJ Teknik (technology), SJ Fastigheter (real estate) and SJ

83


Terminalproduktion (station services). SubsidiariesScandlines AB and AB Trafikrestauranger were divestedas an element of SJ's focus on the core business of railtraffic, while the process of divesting SJ's holdings inRoyal Viking Hotel AB have also been initiated.

For SJ as a whole, the concepts "travel and trans-portation competencies" and "the good corporation"have been identified as critical success factors, signif-icant to finances, processes and renewal, employeesand customers.

Of SJ's consolidated revenues in 1999, 18 per centwere derived from the operations pursued throughsole status—passenger rail traffic. All other activitiesand are exposed to competition. Group units thatuntil the present have functioned as internal suppliers,such as SJ Teknik, have received, and are continuing tosecure, external customers through the deregulationof the rail market. A venture capital corporation, SJAdVenture AB, was formed in 1999 to nurture SJ's in-house innovation program. A new enterprise, SJInternational AB, was incorporated in 1999 to enableSJ's international expansion. SJ will use this as a vehi-cle for examining its possibilities of entering allianceswith external rail operators and players in Sweden andforeign countries active in other types of scheduledservice, with the intention of creating efficient and co-ordinated transportation chains.

External factorsThe year 1999 was characterized by accentuated com-petition on the passenger traffic and freight markets.During 1999, competition implied SJ losing tendering,and thereby traffic, ahead of 2000. The Governmenttendered for passenger traffic on 13 routes, ten ofwhich will be operated by SJ. During 2000, SJ willcarry to-thirds of total passenger kilometers on rail,and only about 40 per cent of the total number of railjourneys. The goods market has been characterized byinternationalization and alliances, implying increasedcompetition and acute price pressure.

SJ's prospects of responding to competition on thetransportation market are dependent on factorsincluding political decisions. Both the 1999 tenderingof Government purchasing and the reduction of infras-tructural fees exerted an influence on SJ, with the lat-ter measure enhancing the competitiveness of rail vis àvis other transportation media, simultaneous with thetendering process resulting in SJ's share of passengerrail traffic reducing.

Significant events in 1999 and 2000• In 1999, rail travel expanded by 6 per cent to 7.4

billion passenger kilometers — the highest in thecorporation's history

• SJ's consolidated earnings after financial itemswere SEK 239 m. Volume expansion by SJ Resor,reduced track fees and lower electricity expensescontributed to this earnings performance.

• A venture capital corporation, SJ AdVenture AB,was formed to service SJ's in-house innovation pro-gram.

• A new enterprise, SJ International AB, was incor-porated to enable SJ's international expansion.

• A new sector, SJ Teknik, was formed on 1 January2000, which employs just over 1,000 people and isintended to prepare passenger trains efficiently atstations.

• In March 2000, the Government submitted a billto Parliament proposing that SJ's operational formshould change from a Government agency to a lim-ited company, the reason being that the former nolonger appears expedient in terms of SJ's activitiesbecoming exposed to competition. A transfer ofoperations to a limited company is not expected tobe possible and till the end of 2000/early 2001.

Environmental initiativesSJ's environmental initiatives have three over-archingpurposes: • To further consolidate enhance the environmental

performance of SJ's services, intended to cotributeto increase SJ's transportation and services marketshares.

• To increase profitability by eliminating expensesthat burden both the environment and SJ'sfinances.

• To contribute to an environmental transportationsystem.

SJ pursues a three-year environmental plan; the objec-tives and policies will be revised from the perspectiveof SJ sectors' environmental inquiries and objectivesduring 2000.

Decisions from 1998 stipulate that all the corpora-tion's sectors will pursue the implementation of envi-ronmental management systems, to be ready, or accred-ited, according to ISO 14001 by 2001 at the latest.

Equal opportunitiesSJ adopted a new equal opportunities policy in 1999,providing the foundation for efforts to increase equalopportunities on a long-term and goal-oriented basis inorder to enhance SJ's profile as a corporation promot-ing equal opportunities from both the customer andemployee perspective. Evaluation of efforts is effectedannually. Managers and team-leaders are responsiblefor the pursuit of equal opportunities initiatives at allorganizational levels, and are also responsible for theestablishment, implementation and revision of mentorprograms and equal opportunities plans.

Forecast 2000Over the next three years, transportation marketgrowth is expected to increase by annual averages of1.5 per cent on the passenger side, and 2.1 per cent forfreight. Continued price reductions on freight traffic

84


SEK m 1999 1998 1997 1996 19951)

Revenues 14,920 14,651 13,862 13,534 14,357of which support2) 0 26 0 324 161Operating earnings before depreciation 571 10 -614 608 1,078Gross margin, % 3.8 0.1 -4.4 4.0 7.5Earnings after financial items 239 -135 -641 224 527Earnings after financial items adjusted for non-operating items 134 -439 -263 -759 386Net earnings 246 -198 -1,000 225 533

Adjusted equity, excluding minority shares 1,627 1,688 1,884 2,887 4,463Net debt 8,519 9,276 8,520 6,953 8,952Net debt-equity ratio, multiple 5.2 5.4 4.5 2.4 2.0

Return on equity, % 10.1 -5.4 -19.4 6.5 8.2Return on operating capital, % 7.0 4.9 1.0 9.5 9.9Value-added 7,000 3) 7,300 3) n/a n/a n/a

Cash flow before investments 1,056 -13 -82 -1,014 1,092Net investments 737 1,128 1,161 1,685 2,398of which R&D investments - - - - -

Dividends 0 0 0 0 0

Foreign share of sales - - - - -


Government ownership holding 100% 100% 100% 100% 100%1) Pro forma excluding Swebus.2) D1 utilized, tax support for the Swedcarrier group.3) Estimate

and unchanged prices in real terms for passenger traf-fic are expected. Increasing competition from newtrain operators, primarily on the passenger side, haveresulted in SJ's margins contracting. The biggestfinancial effect will be derived from SJ no longermanaging commuter traffic for Stockholm Transportfrom 1 January 2000 onwards.

This transaction will generate a revenue shortfall ofapproximately SEK 900 m, and an earnings effect ofsome SEK 300 m. The Öresund Link between Swedenand Denmark, and new rail links to Arlanda andKastrup airports are paving the way for the creation ofnew markets and business opportunities.

The SJ group's earnings after financial items areexpected to increase from SEK 239 m in 1999 to SEK350 m as of the end of 2000, with earnings gains pri-mary created from rationalization. Moreover, SJ's con-tinued concentration to core business and associateddivestments will create the right prospects for asecure capital structure. SJ’s operational productivityis expected to increase by an annual average of 11 per

cent over the forthcoming three-year period. As aresult of lost business and operational divestments,SJ's revenues are expected to reduce from SEK 14,920 min 1999 to approximately 12,500 m in 2000.

Board 1999Holmqvist, Karl-Gunnar, ChairmanSprängare, Björn, Deputy ChairmanAhlqvist, Johnny Bonde, IngridBorgcrantz, AndersHalvarsson, EvaJohannesson, DanielPettersson, Åke Tivéus, Meg Ersson, Örjan, Employee Representative Kristensson, Roger, Employee Representative Saxvold, Bror, Employee Representative

General Director and PresidentJohannesson, Daniel

85

Business conceptThe corporation's operations are effected in the high-ways sector and railtrack maintenance, encompassingdiverse forms of project financing and infrastructure,as well as the ownership and management of equities,holdings and other rights in corporations.

EvaluationStatens Väg- och Baninvest AB has performed its taskssatisfactorily.

OperationsStatens Väg- och Baninvest AB, was incorporated in1990 as Vägverkets Investeringsaktiebolaget, or Väg-invest (highways investment). In 1998, the Governmentresolved that from 31 December 1998, the corporationwould be transferred from the Swedish National RoadAdministration to the Central Government Offices,and that subsequently, the Government would functionas sole owner.

Statens Väg- och Baninvest AB manages shares inStockolmsleder AB (100 per cent), Göteborgs Trafik-leder AB (100 per cent), Botniabanan AB (91 per cent),and Rödöbron AB (15 per cent).

In 1999, Statens Väg- och Baninvest AB pursuedactivities in three sectors:

The management and monitoring of ownershipinterests in subsidiaries and associated companies.

Financing, encompassing specialist services targetedon the funding of Stockholmsleder AB, Göteborgs-trafikleder AB and Botniabanan AB. Consulting,encompassing specialist accounting, financing and cal-culation services.

External factorsStatens Väg- och Baninvest AB is active in the mana-

gement and monitoring of subsidiaries and associatedcompanies. Botniabanan AB is active in the project man-agement and construction of the Botnia rail-link. Rödö-bron AB is a limited company incorporated to constructand operate the Rödö Bridge in the northern Swedishprovince of Jämtland, where Parliament has resolved thattolls will be abolished.

The financing activities concentrate on funding andconsulting encompassing specialist services.

Significant events in 1999 and 2000The new corporate name Statens Väg- och Baninvestwas registered in 1999.

Statens Väg- och Baninvest AB group posted nega-tive earnings in 1998 as a consequence of the lowbilling and increasing expenses of subsidiary SweRoad.

Steps were taken to enhance and improve SweRoad'searnings, which elicited restructuring expenses thatburdened earnings in 1998. The Board applied forGovernment's permission to divest SweRoad to theNational Road Administration. Approval was granted,with the sale effected in August of the same year. Thedeclining revenues in 1999 are primary due to the1998 divestment of SweRoad.

Environmental initiativesThe corporation actively and systematically pursuesthe enhancement of the environmental adaptation of itsactivities. Its biggest subsidiary, Botniabanan AB, iseffecting initiatives to secure an ISO 14001-accreditedenvironmental management system before the end of2000.

Equal opportunitiesEqual opportunities initiatives are pursued as an inte-grated element of operations, and are included in re-gular planning and update activities.

Forecast 2000In 2000, revenues are forecast at SEK 143 m, withearnings expect of SEK 265,000 expected.

Board 1999Gunnarsson, Gösta, ChairmanEngman, Gerd Gustafsson, Eva-BrittHolmgren, GunnarJäderholm, BengtLundin, Ulf (From to December 1999 onwards)

Chief Executive OfficerJohansson, Bo

T H E C O R P O R AT I O N S – S T AT E N S V Ä G - O C H B A N I N V E S T A B

SEK m 1999 1998

Revenues 129 228Operating earnings after depreciation 0.0 -8Earnings after financial items 0.8 -8Capital employed 4,105 4,205Adjusted equity 14 30Investments in infrastructure 252 0Dividends 0 0

Return on capital employed, % 0 negReturn on adjusted equity, % 5.7 negEquity ratio, % 0.4 0.6

Total employee headcount 26 42– Number of female employees n/a n/a– Number of employees in foreign countries n/a n/a


86

T H E C O R P O R AT I O N S – A K A D E M I S K A H U S A B

Business conceptAkademiska Hus is to govern the development of high-er education environments in Sweden, offering univer-sities and institutes of higher education attractivestudy and research environments. Akademiska Hus'sowner has assigned the corporation to offer universitiesand institute of higher education expedient and healthypremises for ensuring well-functioning education andresearch. The corporation will also bear managementresponsibility for managing the significant financialand cultural values harbored in its real estate holding.

The group is to ensure a long-term approach andmaintain the value of the Government's holding ofhigher education premises, while also guaranteeingthat the management of real estate and assets is imple-mented in a skilled and efficient manner.

The group consciously pursues the creation of goodarchitecture.

EvaluationAkademiska Hus's owner's objectives for 1999 weresatisfied; return on equity was 8.5 per cent and theequity ratio net of dividends was 25 per cent.

OperationsAkademiska Hus manages 75 to 80 per cent of thosepremises where universities operate, and 40 per centof the corresponding higher education institute realestate.

The group comprises a parent company and eightwholly owned subsidiaries that own and managegroup real estate. The companies comprise manage-

ment resources localized at educational locationsextending from Lund in the south to Luleå in thenorth. Through acquisitions and major investments innew construction and renovation, the group has satis-fied extensive needs for new and modernized highereducation and research premises.

External factorsIn 1990-1998, the number of undergraduate studentsincreased by 58 per cent to 305,000. Parliamentreached a decision to expand the further educationsystem by approximately 41,000 places in the period2000-2002.

Significant events in 1999 and 2000In 1999, the group invested a total of SEK 2.2 bn in newconstruction, extension and renovation. A number oflibraries, medical and scientific research laboratories,plus a campus for the Stockholm teacher training col-lege were amongst the notable ongoing and completedprojects. Additionally, Akademiska Hus made aggregatereal estate acquisitions for a total of nearly SEK 1 bn.

During 2000, the real estate holding of AkademiskaHus i Ultuna AB was transferred to the regional sub-sidiaries.

In May 2000, the enterprise changed corporatename to Akademiska Hus AB.

Environmental initiativesAkademiska Hus AB has established an environmentalpolicy. Control methods, embodied as managementsystems and other tools necessary to achieve the

87

T H E C O R P O R AT I O N S – A K A D E M I S K A H U S A B

implementation of successful environmental initiativesin management and construction projects have beenproduced and are the subject of continuous enhancem-ent. In addition to efforts to achieve environmentalcertification of buildings, the removal of dangeroushazardous material, tendering for demolition andconstruction to specific environmental standards,Akademiska Hus has made particular efforts on mea-sures aimed at favorable energy conservation in colla-boration with its tenants.

Equal opportunitiesCorporations should be characterized by utilizing theresources harbored by its employees, both women andmen, and the pursuit of a more even distributionbetween the sexes at all levels of business areas.

Forecast 2000The further education sector’s demand for premises(existing, new and renovated) remains high. Group

vacancies will remain low at approximately 1 per centRising construction costs and progress on the bond

markets are two causes for concern.The forecast indicates investments of SEK 2.5 bn in

2000 and 2001 respectively.

Board 1999Nilsson, Lennart, ChairmanAxelsson, CharlotteBrändström, DanKantola, BirgittaLagerblad, PeterNilsson, Jan SStaffas, FritzJensen, Hans, Employee RepresentativeJohansson, Magnus, Employee Representative

Chief Executive OfficerRogestam, Christina

SEK m 1999 1998 1997 1996 1995

Rental revenue 3,379 3,170 2,991 1,887 1,555Operating surplus 2,157 2,100 2,004 1,383 1)

Depreciation of real estate -608 -599 -562 -331 1)

Operating earnings 1,415 1,359 1,327 972 828Capital gains/losses on real estate divestments -1.7 14.2 -11.6 - -Earnings after financial items 762 698 737 531 503Net earnings 543 527 574 420 408

Adjusted equity 5,975 5,956 5,706 4,442 4,249Book value of real estate 18,572 16,826 16,037 14,815 7,754Property yield 12.2 12.8 13.0 15.9 1)

Net debt 12,858 10,491 9,625 8,869 3,933Adjusted equity ratio, % 27.8 32.0 34.2 34.1 38.6

Cash flow before investments 1,230 1,253 856 1,141 610Net investments including real estate acquisitions/divestments 3,232 1,908 1,504 8,014 918

Floor area, 000 m2 3,014,871 2,844,868 2,783,388 2,691,963 1,452,492Area-based vacancy, % 1.2 1.0 1.5 0.9 1.3

Dividends 600.0 400.0 235.0 200.0 127.1

Total employee headcount 399 389 372 308 285– Proportion of women, % 20 n/a n/a n/a n/a– Number of employees in foreign countries 0 0 0 0 0

Government ownership holding 100% 100% 100% 100% 100%1) Because to some extent, activities had a different character in 1995, some information has been omitted where the calculation of directly comparable figures is not possible.

88

T H E C O R P O R AT I O N S – S V E A S K O G A B

Business concept/objectivesSveaskog is to develop the Government's forest reservesto the benefit and enjoyment of the Swedish popula-tion, in an open, environmentally friendly manner thatcreates value. The initial assumption of the businessconcept is parliament's decision that Sveaskog willoperate commercial forestry, manage sensitive environ-ments, create accessibility to experiences in the natu-ral environment, promote hunting and fishing, and toset high environmental and quality standards. Sveaskogemphasizes healthy economic progress and the protec-tion of nature. Business decisions are based on assess-ments of markets. The Sveaskog is characterized byenvironmentally oriented initiatives that take a long-term perspective.

EvaluationSveaskog AB was formed in 1999 subsequent to aParliamentary decision, and accordingly, 1999 was thecorporation’s first operational year, when revenuesamounted to SEK 517 m and earnings after depreciationand financial expenses, but before tax, were SEK 189 m.

Consequently, Sveaskog is debt free, and thereforehas a very high proportion of shareholders' equity.However, the actual earnings level was not as high asthat indicated in the prospectus coincident with theGovernment's acquisition. The discrepancy betweenactual earnings and expectations is primarily due tolower timber prices during the latter half-year 1999.Sveaskog’s first operational year was characterized byactive efforts to identify its working norms, and totransform its business concept into concrete action.

OperationsSveaskog is a concentrated forestry corporation with-out its own in-house manufacturing. Total forestreserves encompass approximately 900,000 hectares.Sveaskog has an employee headcount of some 170,with an average 20 years' experience. Humanresources are located nationwide, with functionalorganization based on autonomous work-teams,which utilize IT and other technology. Skillsenhancement and environmental initiatives are cen-

tral to preparing employees for future forestry tasks.Commercially, Sveaskog's primary task is to sell

timber commodities to sawmills and the pulp indus-try. Total supplies of hewed timber in 1999 were 1.2million m3 fub. Sveaskog's timber share was just over60 per cent.

Sawmills without their own forest reserves com-prise Sveaskog's primary customer group. The corpora-tion works towards contributing to the creation ofvalue-added in forest reserves, and to enhancing cus-tomer profitability. Its intention is that its customerswill identify means of securing better prices for theirproducts, concentrate on marketing and identify newapplications. Sveaskog intends to function as a capableand committed partner in compulsory sawmill sectoractivities.

Sveaskog also strives towards making contact withthe general public and societal institutions. Sweden'sforest reserves are well documented, while extensiveinformation reserves are available within the corpora-tion, which has an ambition to make this materialavailable to the general public.

External factorsA long-term analysis of harvesting volumes is beingeffected in 2000. Before long-term harvesting levels aredetermined, Sveaskog has decided to adopt slightlylower harvesting volumes than during 1999.

A review of future harvesting was initiated duringthe year, through assessing forest reserves. The firstanalysis indicates fair consistency between assess-ments and the register of southern reserves. The anal-ysis of northern reserves will begin in spring 2000.Harvesting forecasts for the whole of Sveaskog will becompleted during 2000.

During 1999, the market for sawn timber goods washesitant, with declining prices. However, Sveaskog'stimber deposits were favorable, for reasons includinglow private forestry activity. During the year, demandfor pulp grades was firm, albeit subject to reducingprices and increased transportation deductions. NorthSea pulp inventories declined during the year, whilepulp prices rose.

89

T H E C O R P O R AT I O N S – S V E A S K O G A B

Significant events in 1999 and 2000Initiatives in starting-up and developing a new andcontemporary forestry corporation hallmarked activi-ties in 1999.

During 1999, Sveaskog's head offices were in Öster-sund, with management presences in Hedermora andÖstersund. In spring 2000, Sveaskog established itsnew head offices in Kalix.

Lars Sköld took up position as Chief ExecutiveOfficer in January 2000.

Efforts to transform the business concept into con-crete actions, and to adapt organizational resourcesaccording to the corporation's future tasks are contin-uing this year.

Additionally, Sveaskog is engaged with long-termforestry maintenance plans this year. Forest reservesare assessed in fields, results analyzed and long-termharvesting plans produced. In anticipation of the com-pletion of these activities, Sveaskog chose to adopt alower harvesting level during 2000.

Sveaskog's strategy is to accumulate a skilled corpo-ration with secure financial foundations. If is ownersso desire, the corporation is prepared to expand itsoperations.

The pursuit of increased openness both within thecorporation and towards the general public is anotherissue for the future. As an element in these efforts,Sveaskog will publish all its regional plans on theInternet, in order to offer access to all interested par-ties, thereby establishing a dialogue

Environmental initiativesSveaskog is to develop the Government's forest hold-ings to the benefit and enjoyment of the Swedish pop-ulation in an environmentally friendly manner.Environmental initiatives are interwoven through allparts of the corporation. A growing part of the marketdesires guarantees that timber and other wood prod-ucts are sourced from forests managed in a sustainablemanner in ecological, financial and social terms. FSCproduct labeling demonstrates that goods are sourcedfrom an environmentally sound, societally beneficialand financially sustainable forestry process.

Sveaskog pursues active environmental initiativesand has ISO 14001 and FSC accreditation. As a foun-dation in these efforts, Sveaskog has adopted an envi-ronmental policy whereby the corporation pursuesforestry adapted to the cycles of nature and which issustainable. Biological diversity is to be ensured, whileforestry activities must generate favorable financialreturns. The ISO 14001 standard stipulates constantimprovement in the environmental sphere, and this iseffected continually, through means including theestablishment of environmental targets.

To achieve these targets, Sveaskog pursues forestryoperations adapted to habitats, nature conservation inday-to-day activities, ecological landscape planning,ecological audits and other activities.

Sveaskog's land includes some 36,000 hectares ofproductive forest partitioned as nature reserves and75,000 hectares where specific consideration is applied.

Equal opportunitiesSveaskog has established an equal opportunities planand pursues an even distribution between the sexes inall sectors. Recruiting more women in the activeforestry business is a matter of urgency.

Forecast 2000In anticipation of the completion of its harvestingplans, Sveaskog intends to observe a lower harvestinglevel in 2000. Revenues of approximately SEK 470 mare expected in 2000, with earnings before tax ofapproximately SEK 160 m, founded on forecasts thatassume that timber prices do not fall further duringspring 2000, but stabilize at a higher level this autumn.

Board 1999 Dockered, Bo, ChairmanCederlund, Lars Johan Domeij, Åsa Johansson, Lena Liffner, ChristinaSöderberg, Lena Karlberg, Tofte, Employee RepresentativeRudh, Karl-Erik, Employee RepresentativeHägglund, Jan-Ove, Employee Representative, DeputyThorell, Lars, Employee Representative, Deputy

Chief Executive Officer Sköld, Lars

SEK m 1999 1998 1)

Revenues 517 560Operating earnings before depreciation 207 270Gross margin, % 40 48Earnings after financial items 188 -Net earnings 139 -

Adjusted equity 533 -Net debt 195 -Net debt-equity ratio, % 37 -

Return on equity, % 30 -Return on operating capital, % 27 -Value-added 300 2) 350 2)

Cash flow before investments -238 -Net investments 102 -of which R&D investments - -

Dividends 0 0

Foreign share of sales - -

Total employee headcount 212 210– Number of female employees 23 n/a– Number of employees in foreign countries 0 0

Government ownership holding 100 % 98%1) Pro forma.2) Estimate.

90

T H E C O R P O R AT I O N S – S A K A B

Business conceptSakab's business concept is to provide beneficial haz-ardous waste services for industry and municipalities.Proceeding from prevailing legislation and regulations,Sakab pursues continuous improvements to minimizethe environmental impact of managing hazardous waste.

OperationsSakab offers environmental services relating to haz-

ardous waste, and is owned primarily by WMISellbergs AB, although the Government holds oneshare. Apart from receiving waste, activities alsoinclude the preparation of waste for treatment includ-ing fragmentation and bunker I, the operation of tankfarms and tanker truck washes, plus storage of wastebefore treatment. The corporation effects marketingthrough its own sales resources, which also encompasstransfer stations nationwide.

Sakab's facility at Kvarntorp came into use in 1983,and subsequent to enhancements and extension, canprocess annual capacity of some 120,000 tons of haz-ardous waste.

Mercury is one of the most toxic elements and ispresent in many products. Sakab collaborates withother Swedish environmental services corporations tocollect and convert mercury into an inert, non-haz-ardous form.

Sakab is also active in the treatment of contami-nated land, employing methods including BioSan,which utilizes bacteria to break down oil spills eitheron-site or in controlled, centralized facilities.

Significant events in 1999 and 2000Sakab inaugurated a new facility for processing flu-

orescent tubes and other mercury-content lightsources in December 1999. This new unit is construct-ed using new technology, and recycles up to 97 per centof fluorescent tubes. By utilizing this new technology,earth metals—previously extracted from the ground

exclusively—now form part of closed cycles. In 1999,Sakab received 3,500,000 fluorescent tubes, and antic-ipates a distinct increase in 2000.

From 1 January 2000, EU directives stipulate thatall corporations handling and transporting hazardousgoods must employ a safety adviser, a specificallyqualified expert in the sphere. Sakab employs twosuch qualified safety advisers.

Environmental initiativesSakab secured ISO 14001 environmental accreditationin February 1999, which implies that its environmen-tal initiatives have been examined and approved by acertification body according to the ISO 14001: 1996standard. This accreditation has implications includingthe establishment of objectives and action plans forefforts on environmental issues. The accreditationencompasses all Sakab's activities. Ongoing reviews ofactivities result in the identification and evaluation ofenvironmental issues, simultaneous with the furtherenhancement and assurance of high employee exper-tise levels.

Board 1999Ekman, Jan, ChairmanFeldt, Kjell-OlofHolm, Lars-ErikLindstedt, JanLärkert, AndersEkecrantz, Lars, DeputyJemt, Mari, DeputySivertsson, Lennart, DeputySamuelsson, Jan-Åke, Employee RepresentativeVestergren, Lennarth, Employee Representative Erhagen, Conny, Employee Representative, DeputyHjalmarsson, Bo, Employee Representative, Deputy

Chief Executive OfficerLärkert, Anders

Sakab was unable to provide the required information because at the time of publication, its 1999 finan-cial statement had neither been reviewed nor approved by its Board.

91

T H E C O R P O R AT I O N S – T H E S W E D I S H M O T O R V E H I C L E I N S P E C T I O N C O M A P N Y

Business conceptThe Swedish Motor Vehicle Inspection Comapny’s over-arching concept is to make an active contribution toenhance road safety, a cleaner environment and theimproved economic efficiency of vehicles. The compa-ny employs a Balanced Scorecard model to monitoroperations according to established objectives. Thetarget areas, objectives for 1999 and achievement lev-els follow:

The customer: 88 per cent satisfied customers (88 per cent).

Employees: 5.5 on a seven-point scale (4.9).New business: At least 5 per cent of sales in core

business (4 per cent).Earnings: Operating margin of 25 per cent in

field operations (25 per cent).Technical quality: 19 points in the company’s quality

assurance program (14 of 32 dis-tricts achieved this objective).

EvaluationThe Swedish Motor Vehicle Inspection Comapny’s pur-pose is to produce vehicle roadworthiness tests thatare available nationwide. These tests are intended toimprove traffic safety and the environment.Availability was good in 1999, while the company’sprice level was low.

OperationsThe swedish motor vehicle inspection comapny is toachieve its overarching objectives through its road-

worthiness test activities, communication, knowledgetransfer and associated services.

External factorsTechnological progress is rapid, with an increasingnumber of countries introducing mandatory vehicleroadworthiness testing. Sales of new and used vehicleson the Internet are increasing steadily.

Significant events in 1999 and 2000A new district structure was implemented on 1January 1999, with a new testing program coming intoforce on 1 February 1999. All major computer systemswere exchanged ahead of year-end 1999.

Environmental initiativesThe swedish motor vehicle inspection comapny is toadapt its operations according to the cycles of nature,effected through the minimal use of finite resourcesand environmentally hazardous substances. The com-pany is undertaking an environmental study with theintention of implementing ISO 14001-based environ-mental management systems.

Equal opportunitiesThe swedish motor vehicle inspection comapny pro-duces an annual equal opportunities plan.

Forecast 2000Within the auspices of regular vehicle testing, theshare of vehicles failing is expected to reduce simulta-neous with growing vehicle stocks. Volume growth is

92

T H E C O R P O R AT I O N S – T H E S W E D I S H M O T O R V E H I C L E I N S P E C T I O N C O M A P N Y

expected for those products exposed to competition.The Swedish Motor Vehicle Inspection Comapny hasexpected revenues of SEK 1.1 bn for 2000.

Board 1999Malm, Stig, Chairman until May 2000Johansson, Olof, Chairman from May 2000 onwardsAlkärr, KjellBlomgren, UlfCederlund, Lars JohanElväng, Katja Frejhagen, Birgitta

Ohlson, GöranPersson, BertilWinskog, ThomasJohansson, Sonny, Employee RepresentativeSundén, Staffan, Employee RepresentativeJakobsson, Rolf, Employee Representative, DeputySteincke, Günter, Employee Representative, Deputy

Chief Executive OfficerTivéus, Hans, 25 April 2000 onwardsJohansson, Per Egon, until 25 April 2000

Mkr 1999 1998 1997 1996 1995

Revenues 1,132 1,114 1,112 1,051 989Operating earnings before depreciation -25 65 88 60 128Gross margin, % -2.2 5.9 7.9 5.7 13.0

Earnings after financial items -113 -6 6 -2 60

Net earnings -82 -5 2 -3 41

Adjusted equity 397 481 492 490 505

Return on equity, % -20.9 -1.1 04 -0.5 8.1Value-added n/a n/a n/a 750 774

Net invetsments–of which R&D investments - - - 0 0


Total employee headcount 2,224 2,237 2,135 2 001 1,909– Number of female employees 18 19 20 19 20


93

T H E C O R P O R AT I O N S – S E K ( S W E D I S H E X P O R T C R E D I T C O R P O R AT I O N )

Business conceptSEK (Swedish Export Credit Corporation) providescredit for export business, selected foreign and domes-tic investments, at either fixed or floating interest ratesand with long maturities. The Swedish Government hasassigned SEK to administrate the Swedish Governmentexport credit system, applying fixed interest rates andthe Government's assisted credit system.

EvaluationBusiness volumes in the government credit sphere aredependent on interest rates; in times of rising interestrates, as in 1999, interest in and utilization of fixed-interest credit increases. The Government considersthat SEK has achieved is objectives within the frame-work of its tasks.

OperationsInternational business continuously creates newdemands for financing solutions, in turn implyingdemands for government credit institutions to developnew services. SEK has pursued a change program(OPUS, governing organizational and process develop-ment) to adapt operations to the new market condi-tions. SEK is progressing towards greater pro-activityand customer orientation.

External factorsThe distribution of business volumes between theGovernment-subsidized system and competitive mar-kets depends on interest rates internationally.

Significant events in 1999 and 2000SEK has signed financing agreements regarding Saab's

deliveries of the JAS 39 Gripen fighter aircraft toSouth Africa, a program that amounts to a maximumof USD 1.1 bn, the largest transaction in SEK's history.

Environmental initiativesSEK has adopted an environmental policy consistentwith Swedish Bankers’ Association guidelines.

Equal opportunitiesSEK has established an equal opportunities plan that iscurrently being updated

Forecast 2000In 2000, new lending volumes are expected to settle atlevels comparable to 1999 (SEK 15.5 bn).

Board 1999Wolrath, Björn, ChairmanHedenström, Anders, Deputy ChairmanCederlund, Lars JohanCharpentier, RobertFreyschuss, AgnetaLindvall, KGPehrsson, UlfLindblom, Staffan, DeputyRingblom, Erland, DeputyWall, Carin, DeputyWickenberg Karlsson, Birgitta, Deputy

Chief Executive Officer Yngwe, Peter

SEK m 1999 1998 1997 1996 1995

Net interest income 912 1,014 993 946 968Net commission income -14 -12 -9 -4 4Earnings before credit losses 815 922 928 852 903Credit losses +12 - - -30 -Operating earnings 827 922 928 822 903Net earnings 600 668 710 659 719Total assets 149,477 138,963 123,940 108,895 105,940Lending 60,314 60,625 52,817 42,245 39,690Adjusted equity 4,629 4,696 4,737 4,685 4,524Return on equity, % 12.9 14.2 15.1 14.3 16.6Tier one capital adequacy ratio, % 16.7 16.2 17.9 16.3 21.7capital adequacy ratio, % 22.9 26.7 30.6 26.1 34.4Income/cost ratio excluding credit losses 7.9 8.4 11.7 8.5 12.4Credit losses as a percentage of lending - - - 0.1 -Investments margin 0.6 0.8 0.9 0.9 0.9Rating

S&P – domestic AAA AAA AAA AAA AAA– foreign AA+ AA+ AA+ AA+ AA+

Moody´s – domestic Aa1 Aa1 Aa1 Aa1 Aa1– foreign Aa1 Aa2 Aa3 Aa3 Aa3

Dividends 450 667 709 658 497Total employee headcount 82 89 85 84 86– Number of female employees 38 40 38 34 37– Number of employees in foreign countries 0 0 0 0 0


94

T H E C O R P O R AT I O N S – S W E D I S H N AT I O N A L G R I D

Business conceptGovernment electricity grid agency Svenska Kraftnät’s(SvK) Swedish National Grid purpose is to manage,operate and enhance a cost-efficient, reliable and envi-ronmental power transmission system, sell transmis-sion capacity and otherwise pursue operations associ-ated with the national grid, all on favorable businessterms. SvK is also to promote a Swedish and Nordicenergy market that is subject to competition.

Contingency activities will be pursued so that theneeds of Sweden's overall defense and other electricaland other energy requirements can be maintained in acrisis. It must also be possible to utilize the createdresources and contingencies in times of peacetime cri-sis, in the interests of international peacekeeping andfor humanitarian causes.

The reliability of Sweden's national grid should beof a standard justified by the macroeconomics. SvK isto achieve cost efficiency equal to comparable corpo-rations.

Evaluation Return on capital employed was 8.8 per cent, exceed-ing the established 7 per cent objective. An equity ratioof 44.6 per cent was achieved, again exceeding theobjective of 38 per cent.

Operational reliability was comparable with recentyears, at a level regarded as reasonable in macroeco-nomic terms. SvK's efficiency is the subject of conti-nuous comparison with other corporations, primarilyother national grid providers. Uniformly, this researchindicates that SvK is one of the most efficient corpo-rations.

SvK is strongly committed to developing pan-Nordicelectricity supply collaborations. On 1 March 1999 theborder tariff between Sweden and Finland was abo-lished for all energy trading in accordance with aGovernment decision. In June, the Danish provinces ofJutland and Fyn were established as new reportingregions in the Nord Pool Nordic power system, and coin-cidentally, border tariffs for spot trading with Jutlandand fixed subscriptions on the Kontiskan Link wereabolished. Additional expansion to the Danish island ofSjälland will probably be possible during the next year.

Contingency activities are financed through support,and accordingly, are neutral in terms of SvK's earnings.

OperationsSvK is a government agency group with three sub-sidiaries and seven associated companies. SvK is respon-sible for the operation of Sweden’s national grid includ-ing its international links. Responsibility for the short-term balance of the electricity network and the reliable

interaction of its facilities, termed system responsibili-ty, also forms part of SvK's tasks. Moreover, SvK alsoserves as the contingency authority according to appli-cable electricity contingency legislation, while functio-ning as the responsible authority for electricity suppli-ers within the civilian element of Sweden’s overalldefense, plus the coordination of Sweden's dam safety.

Operations are divided into three elements, nationalgrid transmission, the aforementioned system respo-nsibility and optical fiber activities. Research anddevelopment initiatives, plus electrification of remoteregions are additional activities, with the first of theseentirely predominant, and generating 91 per cent ofrevenues and 97 per cent of consolidated operatingearnings.

External factors SvK's business risk is regarded as limited; the trans-mission activities are of a long-term nature, stable,with a customer base comprising well-established sta-ble corporations with secure equity ratios. SvK's cur-rency exposure is limited and the corporation also hasa high equity ratio, with a limited funding require-ment. Accordingly, interest costs, and interest risks,are limited.

SvK bears system responsibility for the energy ba-lance of the country's energy system, and thereby, isresponsible for balancing settlements vis à vis the rele-vant corporations. In order to alleviate the credit risknational balance settlement implies, SvK requiresfinancial guarantees from such corporations.

SvK assesses any risk of operational disruptionswith serious consequences for national grid customersas limited. The national grid has a robust constructionwith healthy reserve potential. Any risk of powershortages eliciting sustained downtime is also consi-dered limited.

Significant events in 1999 and 2000The government assigned SvK, along with Governmentenergy authority the Swedish National EnergyAdministration to derive a model for settlement withcustomers whose usage is not measured hourly, termedestimation. This new model was brought into serviceon 1 November 1999. Increasing the tempo and quali-ty of the reporting of measurement values, plus theintroduction of routines for definitive settlement, arethe focus of efforts in 2000.

Optical fiber links have been extended through thenational grid since the mid 1990s. This optical networkis used both for SvK's communication needs, and hasbeen leased to external customers. Future evolution ofoperations is dependent on the role that Parliament

95

T H E C O R P O R AT I O N S – S W E D I S H N AT I O N A L G R I D

and the Government decide SvK will play in terms ofthe build-out of a national optical fiber network. Theintention is to integrate all such activities in the newlyincorporated subsidiary Svenska Kraftkom AB.

Initiatives to construct a 400 kilovolt cable betweenAlvesta and Hemsjö in the Counties of Kronoberg andBlekinge respectively began in 1999; the cable is sche-duled to come into service in December 2000.

In autumn 1999, SvK introduced a premium settle-ment rate— SEK 3 per kWh— upon the risk of poweroutage for those corporations exhibiting energy elect-ricity balance deficits after having announced a risk ofpower shortages. SvK has undertaken certain transitio-nal measures to cope with winter. As a contingency ini-tiative, the continued operation of the Karlshamn powerstation's third unit for further winters was also ensured.

Newly incorporated enterprise Svenska KraftnätGasturbiner AB purchased six gas turbines fromVattenfall AB in December 1999, which are used tocope with power system disruptions.

The majority of initiatives relating to the construc-tion of a DC cable to Poland were completed in 1999;commercial operation is scheduled to start in May 2000.

The Government has assigned SvK to coordinate theelectrical energy sector's Y2K initiatives. No supplydisruptions arose.

Environmental initiativesDuring the year, environmental initiatives were focusedon efforts to achieve the more efficient and systematicmanagement of environmental issues. Meanwhile, aseries of concrete environmental improvements wereimplemented in various parts of operations. The

Government has assigned SvK to introduce an environ-mental management system by the end of 2001.

Equal opportunitiesWomen comprised 25 per cent of SvK's total employeeheadcount. Recruiting more women, in managementand trainee recruit positions in accordance with theequal opportunities plan, is underway. An action planagainst sexual harassment has been produced, with atraining day held to highlight the differences betweenmale and female thinking.

Forecast 2000 Business operations are long term and stable; no majorchanges regarding prices and costs are expected.Estimated revenues are SEK 2,475 m, with earnings ofSEK 528 m. Total consolidated investments of SEK 700m are planned, of which SEK 100 m relate to theSwePol Link.

Board 1999Eriksson, Per-Olof, ChairmanSöderström, Bengt, Deputy ChairmanBerggren, ChristerGustafsson, YvonneKvart, SussiMagnusson, JanNilsson, PiaPersson, Agata, Employee RepresentativeÖrtegren, Bengt, Employee Representative

General DirectorMagnusson, Jan

SEK m 1999 1998 1997 1996 1995

Revenues, including support 2,307 2,312 2,772 2,279 2,300of which support 180 171 86 0 0Operating earnings before depreciation 963 994 1,251 1,190 965Gross margin, % 42.2 43.2 45.3 52.2 41.3Earnings after financial items 589 605 842 592 453Earnings after financial items adjusted för non-operating items 589 605 842 592 743Net earnings 589 605 842 592 453

Adjusted equity 4,817 4,634 4,393 4,138 4,027Net debt 2,534 1,683 1,445 2,202 1,655Net debt-equity ratio, % 38.4 26.7 23.6 39.0 30.6


Cash flow before investments 983 927 1,113 1,012 576Net investments 1,381 1,056 591 616 131of which R&D investments - - - - -

Dividends 384 302 321 366 346




96

T H E C O R P O R AT I O N S – S V E N S K A L A G E R H U S A K T I E B O L A G E T

Business conceptSvenska Lagerhusaktiebolaget (SLAB) develops andoffers services relating to warehousing, storage, specia-list maintenance and servicing, as well as the distribu-tion of information, goods and materials. SLAB's cus-tomers comprise corporations, authorities and non-pro-fit organizations. The corporation should be perceivedas an obvious collaboration partner for government andprivate customers. SLAB is to offer high-quality, profes-sional, secure, attractively priced total concept solu-tions within the corporation's core business.

EvaluationIn 1999, SLAB satisfied its established financial objec-tives, generating a return on equity of 29 per cent and anequity ratio of 55 per cent.

OperationsDuring 1999, SLAB was organized into five businessareas: Storage and Logistics, which handles the storageand management of high inventory volumes for theauthorities; Special distribution archives and dis-tributes printed matter, forms and consumables;Medtech handles the servicing and maintenance ofequipment for the authorities, municipalities and theprivate healthcare sector. Museum Service providesarchiving, logistics, management and other services forSweden's museums. The subsidiary Dokumenthuset iSverige AB warehouses and manages various docu-ments in both physical and digital form, while also

effecting incoming mail collation for customers.Through ownership and rentals, the group disposes

over some 200 facilities in approximately 100 opera-tional locations in Sweden, with total warehousingspace of some 550,000 m2. SLAB's vacancy levels in itsown real estate holding are modest.

External factorsGovernment decisions to downsize contingency storage will result in a substantial revenue shortfall inforthcoming years. However, the corporation has offsetthis through means including intermediary storageassignments from the Swedish Board of Agriculture.

Significant events in 1999 and 2000From 1 March 2000 onwards, SLAB’s medtech activi-ties were transferred to the newly incorporated enter-prise Swedish Emergency Medical Systems AB (SEMS),with SLAB receiving part payment of 36 per cent ofSEMS, which is otherwise owned by Svensk Akut- ochKatastrofutrustning AB.

SLAB acquired a 77,000 m2 facility in Falkenberg,southern Sweden, from Vin & Sprit AB, taking posses-sion on 30 June 2000.

Environmental initiativesSLAB operates according to a working environmentpolicy stipulating that as an employer, SLAB will pur-sue the creation of resources in collaboration withemployees in order to achieve a favorable working envi-

97

T H E C O R P O R AT I O N S – S V E N S K A L A G E R H U S A K T I E B O L A G E T

SEK m 1999 1998 1997 1996 1995

Revenues 154.5 142.4 121.1 109.8 99.8Operating earnings before depreciation 30.2 25.2 23.5 27.1 31.6Gross margin, % 20 18 19 25 32Earnings after financial items 19.7 12.9 10.9 20 29.4Earnings after financial itemsadjusted for non-operating items 19.7 12.9 10.9 20 29.4Net earnings 14.8 9.8 8.5 14.6 22.9

Adjusted equity 73.1 62.4 76.1 75.1 68 Net debt (neg) - - - - -Net debt-equity ratio (neg) - - - - -

Return on equity, % 29 19 14 28 49Return on operating capital, % 41 23 17 31 48Value-added 72.1 56.7 50.4 41.8 51.3

Cash flow before investments 19.5 16.8 26.8 24.2 38.1Net investments 12.5 12.7 13.4 14.1 39.5of which R&D investments - - - - -

Dividends 7 3.6 23.6 7.5 7.5

Foreign share of sales <1 <1 <1 <1 <1



ronment and employees assuming personal responsi-bility for health, environmental and safety issues on aday-to-day working basis.

Equal opportunitiesSLAB pursues an equal opportunities policy intendingto prevent any individual being discriminated againstbecause of sex, handicap or ethnic origin. The policyalso deals with working conditions, parenthood, sexu-al harassment, an even distribution between the sexes,recruitment and the establishment of an annual equalopportunities plan.

Forecast 2000The downsizing of contingency warehousing is expected to continue; SLAB will continue to pursue an

increase in the share of long-term agreements throughcollaborations with customers.

Board 1999 Nordbeck, Gunnar, ChairmanSorte, Per, Deputy Chairmanvon Arbin, ChristinaHentzel, MatsLundquist, UllaRingström, AnitaSkarell, GunnarLind, Lars Åke, Employee Representative

Chief Executive OfficerNylander, Göran

98

T H E C O R P O R AT I O N S – T H E S W E D I S H E N V I R O N M E N T A L M A N A G E M E N T C O U N C I L

Business concept

The Swedish Environmental Management Council is tosupport industry, business and public bodies in en-hancing their environmental initiatives on a systematicand cost-efficient basis, then to provide recognition tothose parties that openly document the intentions andresults of their environmental initiatives that isaccepted domestically and internationally.

EvaluationEnvironmental management systems and accreditationare a relatively new concept to business and govern-ment authorities, while the number of corporationsand non-profit organizations introducing such tools intheir environmental initiatives is still increasing. TheSwedish Environmental Management Council's ownershave not established the target number of environmen-tal management systems and accreditations as an abso-lute figure. Sweden maintained its third position inEurope in terms of the number of EMAS-accreditedcorporations and facilities.

OperationsThe corporation pursues communication and registra-tion activities in the environmental sphere. The SwedishEnvironmental Management Council was formed in1995, and is the principal of the EMAS and EPD sys-tems, the former being the EU environmental controland audit regulations (EC Eco Management and AuditScheme), while EPD stands for Environmental ProductDeclaration, a national system for the accreditation ofenvironmental declarations. The Swedish environmentalmanagement Council has been assigned to support andpromote the implementation of systems, register thosecorporations, organizations and products and servicesthat satisfy EMAS and EPD standards, and to establishthe relevant information to catalogue them publicly.The majority of the Swedish Environmental ManagementCouncil's EMAS activities relate to the dissemination ofawareness of the EMAS system, and of those corpora-tions and non-profit organizations that have becomeassociated with the system in various ways and con-texts. Initiatives regarding the enhancement of variouswww information services have continued.

External factorsThe Swedish Environmental Management Council's pri-

mary EMAS and EPD accreditation activities are effect-ed in incorporated form, which to an extent, is a dis-tinction from otherwise comparable activities in othercountries, inasmuch as operations must be self financed.This may be a disadvantage, primarily to the establish-ment of the EMAS system, because registration in othercountries is associated with relatively modest fees.

Significant events in 1999 and 2000EPD arrived on the market through the first accredi-ted environmental declarations, as well as the start-upof the environmental management archive's Internetinitiatives.

Environmental initiativesThe Swedish Environmental Management Council'sorganizational resources are too modest to justify theformal implementation of an environmental manage-ment system.

Forecast 2000In 1999, the Swedish Environmental ManagementCouncil introduced a progressive initiative to reducethe level of the registration fees for association toEMAS, which explains the deteriorated financial per-formance in 1999 compared to the previous year.These initiatives are continuing during 2000, concent-rating on annual fees. Given a gradual increase in thenumber of accredited environmental declarations, zeroearnings are expected in 2000.

Board 1999Wenblad, Axel, ChairmanBrandinger, Rune, Deputy Chairman, until May 2000Almgren, Richard Gunnarsson, Ulf Gustafsson, Henry Haglind, Ingrid Mattsson, Annaa Ryding, Sven-Olof Smith, Eva Waldner, Lars Wide, Anna-Maria Asplund, Erik, Co-opted Employee Representative

Chief Executive OfficerRyding, Sven-Olof

SEK m 1999 1998 1997 1996 1995

Revenues 2.8 4.0 2.9 0.8 1.0of which support 0 0 0 0.1 0.9Earnings after financial items -0.2 0.9 -0.3 -1.8 0.1Net earnings Adjusted equity n/a 0.8 0.09 0.4 2.2Return on operating capital, % n/a 110 -306 -483 4Dividends 0 0 0 0 0Total employee headcount 2 2 2 1 0– Number of female employees 1 - - - -– Number of employees in foreign countries 0 0 0 0 0


99

T H E C O R P O R AT I O N S – S W E D I S H S P A C E C O R P O R AT I O N

Business concept, objectivesRymdbolaget, the Swedish Space Corporation, is to offerspace systems, the operation of space systems based atEsrange, products and services relating to earth obser-vation and telecommunications services to the globalmarket. Additionally, the Swedish Space Corporationprovides support for the Swedish National Space Boardon technical issues. The Swedish Space Corporation isexposed to competition, and has an objective of gener-ating a businesslike return on equity.

EvaluationIn 1999, the parent and associated companies satisfiedtheir target returns, although losses and restructuringin the earth observation activities implied that thesubsidiaries posted negative earnings.

OperationsThe Swedish Space Corporation's strategy can be sum-marized by the phrase "growth through alliances", orin basic terms: establishing alliances that take the cor-poration closer to the end-users' market for telecomand earth observation products, establishing alliancesthat confer the Corporation with a key role amongstEurope's smaller space systems providers, to grow intoa globally leading provider of satellite operating andlaunch services through investments and alliances.

External factorsThe Corporation's markets are characterized bygrowth on the civilian side, while public space tech-nology initiatives are contracting. A growing numberof satellites are in orbit, with the market dominated byprogressively fewer, but larger, internationalizedgroups. For the Swedish Space Corporation thisimplies an increased demand for small, cost-efficientsatellites and the associated operating services. High-resolution satellite images are becoming available onthe market, while interest in global environmentalmonitoring is accentuating. The major corporations arealso moving into operating services and space applica-tion markets. Increasingly, the Swedish Space

Corporation is being forced into direct competitionwith the big players, while smaller corporations riskbeing marginalised.

Significant events in 1999 and 2000The Swedish Space Corporation secured an order forthe production of the SMART-1 lunar probe. Analliance with US corporation the Universal SpaceNetwork made the Swedish Space Corporation into aglobally leading player within satellite station services.The world's biggest ever ozone depletion research cam-paign has been completed, with the Swedish SpaceCorporation in a leading role. The year 1999 was amilestone for the MSS5000 airborne maritime moni-toring system, with six systems sold on internationalmarkets. Odin, Sweden's most sophisticated researchsatellite yet, will be launched in autumn 2000.

Equal opportunitiesThe Swedish Space Corporation has an equal opportu-nities plan.

Forecast 2000Extensive investment and restructuring in 1999 isexpected to generate further improvements in returnsduring 2000.

Board 1999Lübeck, Lennart, ChairmanAhlqvist, BirgittaBjörk, GunnarCederlund, Lars JohanFredga, KerstinMohlin, Per-ErikTegnér, PerÅkesson Bonde, IngridMörtberg, Carl-Ivar, Employee RepresentativeWallin, Sven, Employee RepresentativeJordung, Åsa, Employee Representative, Deputy

Chief Executive OfficerJangblad, Dan

SEK m 1999 1998 1997 1996 1995

Revenues 349 264 239 302 256Operating earnings before depreciation 28 11 4 18 16Gross margin, % 7.9 4.0 1.6 5.8 6.4Earnings after financial items 13 1 -2 18 11Net earnings 13 0 0 8 6Adjusted equity 128 127 128 128 119Return on equity, % 10.5 0.0 0.1 6.8 5.4Return on operating capital, % 33.7 -15.9 -58.0 31.5 -3.8Value-added 156 132 125 134 114Cash flow before investments 109 -16 69 9 32Net investments 49 40 38 13 9of which R&D investments n/a n/a n/a n/a n/aDividends 0 0 0 0 0Foreign share of sales, % 77 45 39 32 41Total employee headcount 283 285 280 287 281– Number of female employees 77 76 73 71 66– Number of employees in foreign countries 1 1 1 1 1


100

T H E C O R P O R AT I O N S – S W E D I S H S H I P S M O R T G A G E B A N K

Business conceptThe Swedish Ships Mortgage Bank is intended to faci-litate the funding of Swedish shippers and foreign ship-pers with significant Swedish interests, contributing tothe rejuvenation of the merchant fleet.

EvaluationThe Bank's lending stock expanded robustly in 1999,with the gains expected to continue during 2000. TheBank is maintaining a vital role as a financier of smalland medium-sized shipping corporations.

OperationsIn 1929, the Swedish Parliament resolved to inauguratethe Swedish Ships Mortgage Bank, its objective being tocontribute to a necessary rejuvenation and moderniza-tion of Sweden's merchant fleet. During the 1930s, thefleet was renewed, consolidated and modernized. Anew generation of diesel vessels arrived—the Bank wascentral to this process.

The Bank funds shipping corporations with Swedishownership, or with foreign ownership and Swedish inter-ests, primarily issuing long-term loans against securityin the form of Swedish or foreign tonnage. Funding andlending are effected on largely the same terms. The Bankpursues its operations on entirely commercial terms, andin competition with other credit institutions.

The Government has also assigned the Bank toadministrate Rederinämdens activities.

External factors Commercial maritime activities are characterized bysharp demand variations, although at present, severalpartial markets face good prospects.

Significant events in 1999 and 2000In 1999, outstanding loans to shippers increased by

48 per cent to SEK 2,941 m. At the end of the year,loans approved and issued amounted to approximatelySEK 1,500 m, with these credits drawn down during2000 and 2001.

Since 1 July 1998, the Bank has been operating on amore international footing, contributing to the fundingof foreign-flagged tonnage, providing a significantSwedish interest is present. The Bank has utilized thisfact actively in its marketing, attracting increasedinterest from shippers. Eventually, this will implyincrease lending.

Forecast 2000The Swedish Ships Mortgage Bank's full-year 2000earnings forecast will be submitted in the interimreport for the first half-year, published in August.

Board 1999Gyllenhammar, Pehr G, ChairmanKällsson, Jan, Deputy ChairmanBerggren, ChristerEngström, Anna-LisaKastman Heuman, ÅsaOlovsson, UllaPatriksson, FolkeHolmgren, Gunnar, DeputyHolmgren, Lars-Göran, DeputyJohnsson, Hans-Yngve, DeputyLindström, Anders, DeputyLorentzon, Ola, DeputyRodosi, Agneta, DeputySevered, Bo, Deputy

Chief Executive OfficerWickenberg Karlsson, Birgitta

SEK mSEK m 1999 1998 1997 1996 1995

Net interest income 56 59 59 79 89Net commission income 0 0 0 0 0Earnings before credit losses 43 47 48 68 75Credit losses 0 0 0 0 0Net earnings 43 47 48 68 75Total assets 3,470 2,537 2,615 4,696 4,807Lending 2,710 1,842 2,049 4,072 4,258Adjusted equity 834 790 743 695 627Return on equity, % 5.5 6.3 7.0 10.8 13.6Tier 1 capital adequacy ratio, % 29.3 42.8 37.0 18.9 17.0Capital adequacy ratio, % 29.3 42.8 37.0 18.9 17.0Credit losses as a percentage of lending 0 0 0 0 0Rating (S&P/Moody's) n/a n/a n/a n/a n/aDividends 0 0 0 0 0Total employee headcount 9 9 9 9 9– Number of female employees 6 6 6 6 6– Number of employees in foreign countries 0 0 0 0 0


101

SEK m 1999 1998 1997 1996 1995

Revenues 196.8 215.3 198.6 179.5 152.8Earnings after financial items -5.5 12.8 15.1 6.5 6.4Adjusted equity 115.5 114.1 108.2 102.1 99.4Dividends 3.0 0 0 0 0Foreign share of salesTotal employee headcount 291 292 288 281 270– Number of female employees 120 125 130 125 123– Number of employees in foreign countries 0 0 0 0 0


T H E C O R P O R AT I O N S – S V E N S K A S K O G S P L A N T O R A B

Business conceptSvenska Skogsplantor AB's business concept is to pro-duce and sell seeds and saplings, and to provide ser-vices in the forestry management sphere. The objectiveis to achieve acceptable profitability

EvaluationSince inception, Svenska Skogsplantor AB has progres-sively improved earnings, and in 1997 and 1998,achieved its established objectives. In 1999, earningsdeteriorated, primarily because of an unexpectedreduction in demand. Consequently, saplings weredestroyed. Svenska Skogsplantor AB has the prospects ofapproaching its profitability target once more in 2000.

OperationsThe demand for saplings varied during the 1990s; fo-rest product corporations' pursuit of increased pro-ductivity and progress towards contractors taking overplanting and other forest management activitiesaltered the corporation's production and operationalfocus. Currently, Svenska Skogsplantor AB is realigningproduction from traditional bare-root planting to con-tainer and TePlus planting. Additionally, SvenskaSkogsplantor AB is accumulating a field organization,with the corporation securing a position as a forestrymanagement contractor. To enhance its capacity uti-lization further, Svenska Skogsplantor AB has initiatedsales to Finland and Norway.

External factorsDuring the 1990s, total planting in Sweden reducedfrom 500 to 300 million units. The National Board ofForestry's auditing indicates that the effect has beenhighly unsatisfactory rejuvenation. If measures aretaken to improve forestry management so this activitysatisfies Parliamentary objectives, demand for saplingswill increase, particularly from the private forestrysector, which comprises Svenska Skogsplantor AB'sbiggest customer group.

Significant events in 1999 and 2000The realignment of sapling production was initiated in

1999, resulting in increased production of easily plan-ted saplings such as container and TePlus saplings. Acontainer planting nursery was acquired fromAssiDomän. The restructuring is continuing through2000, with production at one bare-roots nursery cea-sing. Svenska Skogsplantor AB will achieve ISO 9002accreditation in 2000.

Environmental initiativesSvenska Skogsplantor AB has initiated its activities tosecure ISO 14001 accreditation by 2001 that the latest.An environmental policy, satisfying the ISO systemstandards, has been established. At present, SvenskaSkogsplantor AB is performing environmental studiesin various operational areas. The objective is to secureenvironmental certification by no later than 2001.

Equal opportunitiesSvenska Skogsplantor AB has formulated an equalopportunities plan; there are no salary disparitiesbetween men and women with similar working tasks.

Forecast 2000In 1999, overall demand dropped back after havingrisen for several years, with accordingly, the majorityof sapling producers left with surpluses. Sales willincrease this year.

Board 1999Öhrn, Ingemar, ChairmanEkström, SolweigFredlund, MichaelIdermark, ThomasSöderberg, LenaLundholm, Anders, Employee RepresentativeTorstensson, Lennart, Employee RepresentativeEriksson, Lars-Olov, Employee Representative,DeputyLindberg, Eva, Employee Representative, Deputy

Chief Executive OfficerLidén, Sverker

102

T H E C O R P O R AT I O N S – A B S V E N S K A S P E L

Business conceptAB Svenska Spel's business concept is to sell theSwedish population a varied selection of exciting andentertaining games with money prizes in an easilyaccessible, responsible and secure manner.

Svenska Spel's Articles of Association stipulate thatno dividends are paid to shareholders, with earningsallocated according to Government stipulations.Svenska Spel has an exemption from lottery andincome taxation, with the corporation's earnings trans-ferred to Government revenue, in accordance withParliamentary decision. A Parliamentary decision alsostipulates that Svenska Spel makes an SEK 60 m con-tribution to the Swedish Sports Confederation, withsurpluses generated by the corporation's gamingmachine activities Jack Vegas and Miss Vegas dis-tributed to children’s and youth organizations,through the Swedish Sports Confederation andUngdomsstyrelsen.

EvaluationDuring 1999, Svenska Spel satisfied the objectives theGovernment and Parliament established for the corpo-ration. Of the corporation's year-1999 earnings, SEK3,739 m, the Government will receive SEK 3,563 mand various organizations SEK 176 m.

OperationsSvenska Spel's purpose is to organize lotteries and bet-ting for money, subject to Government permits. Thecorporation is active on a market regulated by lotterylegislation and permits, but exposed to intense com-petition.

Svenska Spel is organized into four business areas.The Skill Games business area includes sports gamessuch as Stryktipset, Italienska Stryktipset, Måltipsetand Oddset.

The Fortune Games business area is dividedbetween number games and lotteries, with the formerincluding Lotto, Vikinglotto, LottoExpress, TipsBingo,Keno and Joker. The latter group includes scratch-cardTriss, SkrapBingo, Tia and the traditional Penning-lotteri lottery product.

The Restaurant Games business area comprisesgame machine activities Jack Vegas and Miss Vegas.

In 1999, the Internet business area includedStryktipset, Italienska Stryktipset and Joker.

In accordance with Parliamentary decision, SvenskaSpel's headquarter is in Visby, although extensiveactivities are also undertaken at the corporation's

premises in Sundbyberg near Stockholm. Additionally,Svenska Spel has some 30 salespeople nationwide, ser-vicing contacts with representatives and restaurants.

At the end of 1999, Svenska Spel had 6,909 repre-sentatives selling its games and lotteries, with 3,820being gaming representatives with access to SvenskaSpel’s gaming range— online games and lotteries —while the 3,089 lottery representatives are limited tothe sale of lottery tickets. At the end of 1999, machinegame Jack Vegas was present on 5,054 machines at1,728 restaurants. At year-end, an additional 95 MissVegas gaming machines were located in 39 bingo halls.

External factorsIn recent years, competition from domestic players andinternational corporations securing a position on theSwedish market through the Internet, subscription anddirect marketing, has resulted in accentuating compe-tition. Looking ahead, competition will intensify fur-ther still as a consequence of cross-border gaming, aswell as the establishment and enhancement of new dis-tribution channels.

As in previous years, three players dominate theSwedish gaming market: Svenska Spel, AB Trav ochGalopp and Folkspel, which operates activities inclu-ding Bingolotto. In July 1999, the Governmentappointed an inquiry to review gaming market rela-tionships between the Government and popularmovements, with this inquiry presenting its findingson 3 March 2000. A further inquiry reviewing lotterylegislation, in the context of phenomena such as inter-nationalization and new technology, has been under-way since 1997.

Two EU court cases in 1999 established that EUmember states may retain their respective nationallegislation when, for example, Government corpora-tions and public organizations are conferred exclusivegaming market rights.

Significant events in 1999 and 2000Svenska Spel increased revenues by 4.8 per cent, orSEK 610 m, between 1998 and 1999, primarilyattributable to the machine game Jack Vegas. The stip-ulations of lottery legislation were revised for thisgame in October 1999, with at present, maximumwinnings of SEK 500 cash, instead of SEK 1,000 in giftvouchers. A Parliamentary decision expanded SvenskaSpel's concession to install a further 500 Miss Vegasgaming machines in bingo halls.

Svenska Spel's lotteries also expanded their revenues

103

T H E C O R P O R AT I O N S – A B S V E N S K A S P E L

between 1998 and 1999, with the gains primarily dueto Triss, now Sweden's single biggest lottery.

A new lottery management system, integrated withthe previous online system, was introduced in April1999, with all representatives gaining a terminal fordispensing the corporation's products.

After the Government granted a provisional permit,Svenska Spel introduced Internet gaming in 1999. SinceMay 1999, the revenue generated by those games avai-lable on Svenska Spel's Website (Stryktipset, ItalienskaStryktipset and Joker) amounted to SEK 2.8 m.Preparations for the introduction of gaming based ongreyhound racing were made during 1999, in collabo-ration with Sweden’s national greyhound racing organi-zation. Gaming at tracks in Åkersberga, Borås andLandskrona are scheduled to start in spring 2000.

In June 1999, Parliament resolved to grant SvenskaSpel a permit to operate international casinos inSweden and the corporation intends to pursue theseoperations through the subsidiary Casino Cosmopol.In December 1999, the Government decided to locatethese casinos in Stockholm, Gothenburg, Malmö andSundsvall. The first casino, in Sundsvall, is planned toopen in autumn 2000.

Environmental initiativesAB Svenska Spel pursues an environmental policy sti-pulating that activities should maintain high standardsin the corporation's working environment, and to exertthe minimal adverse impact on the external environ-ment. The objective is for the emissions, non-recyc-lable waste and energy consumption of operations tobe minimized, and for the consumption of finiteresources by the corporation and its suppliers to bereduced, plus the use of artificial products to replacedby renewable/natural materials, or at least their con-sumption reduced.

Equal opportunitiesAB Svenska Spel has an equal opportunities plan; thecorporation intends to pursue management traininginitiatives for managers and potential prospectivemanagers more actively.

Forecast 2000Svenska Spel's customers are migrating from low pay-out games to those with higher winnings, implying thatearnings may be lower than previously despite increa-sing revenues. Machine games Jack Vegas, Oddset,Keno and the Triss scratch-card are making goodprogress, while other lotteries are also performingrobustly. Number games, particularly Lotto, are nowmaking less resolute progress. The corporation's newgreyhound racing games and the subsidiary CasinoCosmopol will be operational in 2000.

Intense competition from other gaming arrangers isexpected to sustain, primary from ATG, but also fromlocal organizations offering more scratch-card lotteries.

Board 1999Berg, Bengt-Åke, ChairmanBlomberg, JanDalborg, HansFrebran, Rose-MarieJohansson, LennartLindström, EvaNilsson, AndersSundström, MonicaPalm, Ulla-Marie, Employee RepresentativeSandström, Berra, Employee RepresentativeJansson, Monica, Employee Representative, DeputyRozenbeek, Lena, Employee Representative, Deputy

Chief Executive OfficerTivéus, Meg

SEK m 1999 1998 1997 1996

Revenues 13,540 12,924 11,464 10,903Operating earnings after depreciation 3,701 3,902 3,575 2,594Gross margin, % 29 31 32 25Earnings after financial items 3,739 3,937 3,612 2,640

Adjusted equity 3,739 3,937 3,612 2,640Return on equity, % 100 100 100 100Return on operating capital, % 159 153 146 300Value-added 5,303 5,349 4,976 3,887

Cash flow before investments 4,298 4,235 5,217 3,242Net investments 207 283 179 484of which R&D investments n/a n/a n/a n/a

Dividends incl. profit 3,739 3, 937 3,612 3,591


Total employee headcount 510 483 464 429– Number of female employees 265 275 266 242– Number of employees in foreign countries 0 0 0 0

Government ownership holding 100% 100% 100% 100%

104

T H E C O R P O R AT I O N S – S W E D I S H - D A N I S H B R I D G E C O N N E C T I O N

Business conceptSwedish-Danish Bridge Connection Svedab AB, isowned by the Government through the SwedishNational Road Administration’s and the National RailAdministration’s 50 per cent holdings. The corporationhas its registered offices in Malmö. Its purpose is partlyto manage Swedish holdings in the 50 per cent-ownedÖresund Consortium, and to undertake the planning,project management, construction, operation, maint-enance and financing of the road and rail connectionson the Swedish side of the Öresund Link betweenSweden and Denmark. Additionally, the corporation willcontribute financing to the Citytunnel project's bores.

The Öresund Consortium is responsible for theplanning, project management, construction, operation,maintenance and funding of the coast-to coast stretchof the fixed link between Sweden and Denmark.

EvaluationSvedab has observed timetable and forecast expensesof its operations.

OperationsIn March 1991, the Swedish and Danish Governmentsreached an agreement regarding a fixed connection overthe Öresund sound between the two countries. Thisagreement resulted in the formation of Swedish-DanishBridge Connection Svedab AB in Sweden, and A/S Öre-sundsförbindelsen in Denmark. These two whollyowned Government corporations formed the ÖresundConsortium in January 1992, which change corporatenamed to Öresundsbrokonsortiet in January 2000.

External factorsThe Öresund Link has attracted substantial interestfrom the media and general public, with exhibitions on

the subject attracting many visitors.

Significant events in 1999 and 2000Efforts to complete the Swedish bridgeheads proceededaccording to plan. The timing of the Link's operationalinauguration, 1 July 2000, is expected to be achieved.

Environmental initiativesEnvironmental questions are central to Svedab; on-going measurements of environmental impact wereundertaken during construction of the Swedishbridgeheads. The corporation does have an environ-mental policy but no environmental managementaccreditation.

Equal opportunitiesEqual opportunities initiatives are pursued as an integ-ral element of operations, and form part of regularplanning and monitoring.

Forecast 2000The inauguration of the Öresund Link is scheduled for1 July 2000.

Board 1999Skogö, Ingemar, ChairmanAhlström, GöranBondestam, AnithaBrandborn, JanBylund, BoYngvesson, NilsAhlberg, Ann, DeputySaxton, Ulla-Brita, Deputy

Chief Executive OfficerSicking, Karl-Otto

SEK m 1999 1998 1997 1996 1995

Revenues 471 454 380 109 -

Adjusted equity 15 15 15 15 15Net debt 12,954 10,672 6,226 3,342 1,420Net debt-equity ratio, multiple 874 719 420 225 96

Cash flow before investments 1) n/a -295.4 - - -Net investments 3,097.3 3,821.9 - - -

Dividends 0 0 0 0 0


Total employee headcount 100 98 96 77 52– Number of female employees 44 38 35 28 16– Number of employees in foreign countries 48 44 - - -

Government ownership holding 100% 100% 100% 100% 100%1) Figures for 1999 not yet complete.

105

T H E C O R P O R AT I O N S – S W E D I S H T E S T I N G A N D R E S E A R C H I N S T I T U T E ( S P )

Business concept/objectivesSwedish Testing and Research institute (SP) is active intechnical evaluation, testing, metrology, research anddevelopment. SP interfaces between academic re-search and corporate needs for technical expertise.

EvaluationSP has fully achieved its operational objectives interms of research and knowledge transfer, and in termsof efficiency and quality. SP's interplay with business,further education institutes and other players is veryfruitful, while the international exchange of know-ledge is plentiful. Research indicates that results arebeing used, leading to enhanced competitiveness, safetyand environmental benefits.

OperationsSP's strategy includes the corporation functioning as amajor research player, with high inter-disciplinarycapacity and the ability to offer customers competen-cies at all links from development and manufacture toutilization and recycling. The demand for SP's servicesis increasing. Corporations' ability to bring in newskills, and use them in the development of products,systems and other offerings is becoming increasinglyimportant.

Major initiatives in recycling, reuse, characteriza-tion of materials and life cycle analysis are in hand. Onthe energy side, redoubled efforts are being madewithin combustion technology and energy efficiency.IT and electronics, though, are the highest-growthactivities. SP is accumulating specialist expertise inthe development of technology for ensuring the relia-

bility and functionality of electronics integrated intoradio and microprocessor-controlled products (vehi-cles, machinery, radio and mobile phones, etc.)

External factorsFinancing of the institutional sector, where SP is one ofSweden's biggest players, is the subject of continueduncertainty. In EU contexts, institutions like SP play acentral role.

Significant events in 1999 and 2000In accordance with an agreement with the Swedishgovernment, SP established a national meteorologicalinstitute during the year; a major (some SEK 30 m)investment was made in fire technology, where SPplayed a key role in the development and harmoniza-tion of new European methods. During 2000, SP willbegin the expansion of its metrology, IT, electronicsand electrical engineering resources, with total esti-mated investments of SEK 60 m.

Environmental initiativesDuring the year, SP introduced an ISO 14001 environ-mental management system. Several environmental mea-sures have been implemented, including chemical pro-cessing routines, and the installation of new, efficientsmoke purification equipment in SP's fire laboratory.

Equal opportunitiesPlans are established, and achievement levels moni-tored, annually. The proportion of women active inSP's technical roles exceeds the overall total in corre-sponding activities.

106

T H E C O R P O R AT I O N S – S W E D I S H T E S T I N G A N D R E S E A R C H I N S T I T U T E ( S P )

SEK m 1999 1998 1997 1996 1995

Revenues, including support 422 401 385 353 312of which support 47 46 41 48 48Operating earnings before depreciation 56 53 50 51 52Gross margin, % 13 13 13 14 17Earnings after financial items 17 21 21 23 28Net earnings 12 15 15 17 20

Adjusted equity 218 206 191 176 159Net debt -36 -49 -36 -28 14Net debt-equity ratio, % -16 -24 -19 -16 9

Return on equity, % 6 7 8 10 12Return on operating capital, % 9 11 13 15 15Value-added 251 244 239 217 188

Cash flow before investments 48 50 34 66 28Net investments 60 37 30 26 27of which R&D investments - - - - -

Dividends 0 0 0 0 0



Government ownership holding 100 % 100 % 100 % 100 % 100 %

Forecast 2000The demand for SP's skills and services is set to remainfirm; more collaboration with higher education andresearch institutes is expected to generate increasedgrowth in funding sourced from EU programs, founda-tions, research boards and other sources. SP is expect-ed to generate earnings before tax of approximatelySEK 15 m from revenues of SEK 400 m.

Board 1999Persson, Jan-Crister, ChairmanBankvall, Claes

Kjörnsberg, SolveigOlson, Hans ChristerSundgren, Jan-EricWeichbrodt, BjörnMilovancevic, Marina, Employee RepresentativeNilsson, Karin, Employee RepresentativeBogren, Bengt, Employee Representative, DeputyJohansson, Ulrika, Employee Representative, Deputy

Chief Executive OfficerBankvall, Claes

107

T H E C O R P O R AT I O N S – S W E D I S H T R A V E L & T O U R I S M C O U N C I L

Business concept/objectivesTuristrådet, the Swedish Travel & Tourism Council, isto be an integrated prime mover in the internationalmarketing of Sweden as a travel destination, operatingas a marketing function for much of Sweden's touristbusiness. This is to be achieved by presenting Swedenas a high-quality travel destination, offering a multi-plicity of experiences in a clean, culturally rich, nat-ural environment, to collaborate with other nationalinterests and to establish efficient forms of collabo-ration intended to enhance the marketing of Swedishtourism.

EvaluationThe Swedish Travel & Tourism Council has pursuedoperations in a direction consistent with the focus itsowners determined.

OperationsThe Government and tourism sector each own 50 percent of the Swedish Travel & Tourism Council, withagreements between the Government and the touristsector renegotiated in 1999 to define financing moreclearly. The Government's shareholder contribution isintended to finance the corporation's fundamentalactivities and over-arching image marketing— ofSweden as a brand. The tourism sector is to fund tar-geted activities to a level at least comparable with theGovernment's image marketing, with the eventualobjective being equal financing. The Government'sshareholder contribution is unconditional.

In 1999, a series of activities were undertakenincluding consumer campaigns and approaching themedia. The Swedish Travel & Tourism Council is pur-suing an Internet initiative. Apart from those marketswhere it has direct representation, The Swedish Travel& Tourism Council has also approached the Russianand Southeast Asian markets.

The Government provided SEK 69.5 m of support in2000, of which SEK 1 m was for the promotion oftourism in the Öresund region. Additionally, theGovernment has participated in the financing of aseries of EU projects in recent years.

External factorsIn 1999, Sweden hosted a total of 8.6 million foreignovernight stays, up 7 per cent on 1998. Those marketsthe Swedish Travel & Tourism Council services direct-ly generated 81 per cent of registered visits.

Significant events in 1999 and 2000The Swedish Travel & Tourism Council has initiated anoperational restructuring to achieve greater flexibilityand lower fixed costs. Major changes in forms of rep-resentation for presences in the Nordic region, and the

Netherlands, Italy and the US were made in 1999. Acall center has been created to offer consumer serviceson the Nordic, Dutch and Italian markets. A new ChiefExecutive Officer was recruited in 2000.

Environmental initiativesAlthough the Swedish Travel & Tourism Council hasno environmental policy, Sweden's environmentalactivities form part of the basic underlying values ofmarketing plans.

Equal opportunitiesThe Swedish Travel & Tourism Council has no equalopportunities plan.

Forecast 2000Efforts to achieve more cost-efficient representation inmore countries continue, with thereby, funds freed upfor marketing.

Board 1999Carmén, Lars, ChairmanAdelsohn, UlfBjerkne, ClaesCarlsson, NilsLeijon, Anna-GretaNilsson, RolandReuterskiöld, MarianneÖdqvist, Olof

Chief Executive OfficerWallgren, Anders

SEK m 1999 1998 1997 1996 1)

Gross revenues 220.9 237.7 377.4 208.6of which support 82.3 90.6 161.3 80.9Operating earnings before depreciation 7.2 -1.0 2.4 0.3Gross margin, % - - - -Earnings after financial items 5.2 -2.0 1.2 -0.6Earnings after financial itemsadjusted for non-operating items n/a n/a n/a n/aNet earnings 5.1 -2.1 1.0 -0.7Adjusted equity 13.1 8.0 10.1 9.1Net debt 0 0 0 0Net debt-equity ratio 0 0 0 0Return on equity, % - - - -Return on operating capital, % - - - -Value-added - - - -Cash flow before investments -1.5 -17.8 -2.2 24.9Net investments -0.1 0.2 3.4 4.2of which R&D investments - - - -Dividends 0 0 0 0Foreign share of sales - - - -Total employee headcount 56 64 56 46– Number of female employees 40 47 44 35– Number of employees in foreign countries 30 38 34 31

Government ownership holding 50% 50% 50% 50%1) 18 months

108

T H E C O R P O R AT I O N S – S W E D E S U R V E Y A B

Business concept/objectivesThe corporation was founded in 1993 through theincorporation of foreign contracting operations, withinthe former land survey agency and Sweden’s centralproperty data board. Primarily, the corporation is toutilize resources from the now restructuredGovernment Land Survey. The corporation's vision isto be a leading know-how corporation in the realestate, surveying and cartographical spheres, whichenhances and increases Swedish services exports onprioritized markets.

OperationsSwedesurvey AB offers advisory services relating tothe development of foreign land survey organizations,primarily within real estate systems and geographicalinformation, training in the production of surveyingand cartographical services, as well as the sale of sur-vey products such as aerial photography, orthophoto-graphic maps, Geographical Information System (GIS)products, and technical consulting services. In thelong term, the corporation will concentrate on coun-tries where it already has established collaborations,and in those countries with financing from the WorldBank, EU, Sida (Swedish International DevelopmentCooperation Agency) and other sources. Swedesurvey'sshort-term financial objectives are to increase rev-enues to SEK 110 m in 2000 and to generate minimumearnings of SEK 5 m.

Operational progressIn 1999, operations made healthy progress, with there-by, the corporation largely satisfying established objec-

tives. Operating revenues increased by SEK 6 m to overSEK 106 m. Activities are pursued in over 30 countries.

Demand for the corporation's services remainshealthy, with particularly noteworthy markets includ-ing Greece, Russia and China. The quality assuranceactivities the corporation pursues alongside theGovernment Land Survey, intended to result in ISOaccreditation at the end of 2001, are highly significantto operational progress.

Environmental initiativesThe implications of the corporation's environmentalpolicy include the planned introduction of an ISO14001 environmental management system at the endof 2001.

Equal opportunitiesThe corporation's equal opportunities plan deals withissues such as equal pay, skills enhancement, workingpractices and recruitment.

Board 1999Ollén, Joakim, Chairman Andersson, Axel Christiansson, AnnikaJeding, LarsJohnson, StaffanKristiansen, ThormodBjälkefors, Ulf, Employee Representative Lundqvist, Sören, Employee Representative

Chief Executive OfficerPettersson, Sture

SEK m 1999 1998 1997 1996 1995

Revenues 106.5 100.9 90.3 83.9 71.1Operating earnings before depreciation 4.2 4.1 3.9 3.8 7.6Gross margin, % 4.0 4.1 4.1 4.5 10.7Earnings after financial items 4.1 4.1 4.1 4.6 8.4Net earnings 2.2 2.4 2.3 2.4 4.5Adjusted equity 30.3 27.5 24.5 21.6 18.3Net debt 1) -24.1 -14.5 -12.9 -18.1 -12.0Net deb-equity ratio, mutiple -0.9 -0.6 -0.6 -1.0 -0.7Return on equity, % 10.6 11.7 10.9 11.4 21.4Return on operating capital, % 0.5 0.3 0.3 0.8 1.0Value-added 30.4 27.9 24.1 21.9 21.0Cash flow before investments 10.0 1.5 -9.2 6.7 5.0Net investments 2) -0.4 0.1 4.0 -0.6 -4.9of which R&D investments - - - - -Dividends 0 0 0 0 0Foreign share of sales, % 100 100 100 100 100Total employee headcount 39 37 28 28 21– Number of female employees 12 11 10 12 9– Number of employees in foreign countries 13 13 5 5 4

Government ownership holding 100% 100% 100% 100% 100%1) Long-term pension liabilities less cash and bank balances have been posted as a tax liability.2) Includes financial fixed assets

109

T H E C O R P O R AT I O N S – S W E D F U N D I N T E R N AT I O N A L A B

Business conceptSwedfund is to participate in investments, and todevelop and sell project financing services for purpos-es including the promotion of competitive business,with the resulting contributions to growth and socioe-conomic progress in collaborating countries, alongsidethose Swedish corporations active in, or intending tobecome active in, developing nations and in Centraland Eastern Europe. Additionally, through its invest-ment activities, Swedfund is to contribute to the pro-motion of sustainable progress, the transfer of exper-tise and a healthy environment completely consistentwith the Government's overarching foreign aid objec-tives, encapsulated as the struggle against poverty.

EvaluationSwedfund's owner’s requirement is that parent compa-ny project revenues will amount to a minimum averageof 100 per cent of project expenses over a three-yearcycle. Project revenues as a proportion of total expens-es excluding expenses for asset management amount-ed to 51 per cent for 1999 in the parent company, andto 96 per cent for the group. The Russian economiccrisis implied the parent company posting its worst-ever earnings.

OperationsTo achieve its objectives, Swedfund must have closecontact with Swedish corporations, high skills in terms

of project evaluation and funding, knowledge ofgrowth markets, long-term and committed partnershipcollaborations in joint venture corporations, awarenessof, and access to, international networks that comple-ment those in Swedish and local partner networks, andthe ability to make profitable investments that con-tribute to the progress of sound ventures in thesecountries.

External factorsThe breakthrough of the market economy and progressof the private sector in Swedfund's investment coun-tries may result in accentuating demand for the cor-poration's services. As the Russian crisis illustrates,national and business crises can exert a major influ-ence on Swedfund's earnings.

Significant events in 1999 and 2000During the year, Swedfund invested USD 11 m in theAfrican Infrastructure Fund.

Contracting activities: the government assignedSwedfund to evaluate applications to the IT Fundunder the auspices of a SEK 1 bn reserve for the Balticregion. A total of 22 projects with an aggregate valueof SEK 70 m were recommended, 20 of which gainedGovernment approval. During the first quarter of2000, Swedfund's owner assigned the corporation toundertake a survey to determine whether, and in whichform, the parent company should continue its venture

110

T H E C O R P O R AT I O N S – S W E D F U N D I N T E R N AT I O N A L A B

SEK m 1999 1998 1997 1996 1995 1)

Revenues 42 43 28 43 71Operating earnings before depreciation -40 6 -7 -21 -10Gross margin, % 13,8Earnings after financial items -29 16 11 27 18Earnings after financial items adjusted for non-operating items - - - - -Net earnings 12 0 8 13 13

Adjusted equity 560 550 549 542 522Net debt 0 0 0 0 0Net debt-equity ratio - - - - -

Return on equity, % 2.1 0 1.5 2.4 2.5Return on operating capital, % n/a n/a n/a n/a n/aValue-added -12 32 11 -8 4

Cash flow before investments - - - - -Net investments 145 66 70 46 -5of which R&D investments - - - - -

Dividends 0 0 0 0 0


Total employee headcount 18 19 14 15 13– Number of female employees 8 9 6 6 4– Number of employees in foreign countries 1 - - - -

Government ownership holding 100% 100% 100% 100% 100%1) 18 months

capital operations in Central and Eastern Europe.In 2000, the subsidiary plans to sell its sharehold-

ings in Baltic banks.

Environmental initiativesSwedfund operates according to environmental guide-lines. First and foremost, Swedfund is to observe hostcountries' environmental legislation and regulations,with subsequently, ventures developing in observanceof the standards of Swedish environmental legislation(SFS 1998: 808) including applicable Swedish regula-tions or World Bank Environmental Guidelines.

Equal opportunitiesSwedfund has an equal opportunities plan.

Forecast 2000Sweden has a limited number of venture capital cor-

porations focusing on Swedfund's markets. Althoughprivate players have made attempts in the Balticregion, the Russian crisis exerted a pronounced sub-duing effect. As regional economies rally, so will inter-est from private players. The sector trend is to con-

centrate initiatives on sectors with high developmentalimpetus such as finance and infrastructure. Theexpansion of service activities and the emergence ofknow-how corporations creates new demands onSwedfund's skills to evaluate such ventures.

The demand for new investments throughSwedfund's services from Swedish corporations tendsto peak in cyclical upturns and downturns. Therefore,there is a risk that Swedfund will not achieve its objec-tives in 2000.

Board 1999Cedergren, Jan, ChairmanThelin, Hugo, vice ordförandeKarlsson, BoelRooth, LenaUustalu, AnnWall, CarinÖjefors, Lars

Chief Executive OfficerArefalk, Olle

111

SEK m 1999 1998 1997 1996 1995

Revenues 82 63 60 71 75Operating earnings before depreciation 13 -3 -7 3 3Gross margin, % 16 -5 -12 4 4Earnings after financial items 14 -2 -6 4 5Net earnings 10 -2 0 1 1Adjusted equity 32 22 24 28 29Net debt -23 -11 -18 -14 -25Net debt-equity ratio, multiple -0.72 -0.50 -0.75 -0.50 -0.87Return on equity, % 37 -9 0 4 7Return on operating capital, % 130 -27 -117 18 50Value-added 25 13 10 17 18Cash flow before investments 11 -7 5 -9 6Net investments 1 -1 -1 -2 0of which R&D investments 0 0 0 0 0Dividends 0 0 0 1 2Foreign share of sales, % 96 94 97 97 88Total employee headcount 57 55 62 64 71– Number of female employees 11 13 13 16 26– Number of employees in foreign countries 37 33 36 41 47


T H E C O R P O R AT I O N S – S W E D I S H N AT I O N A L R O A D C O N S U L T I N G A B

Business conceptSwedish National Road Consulting AB (SweRoad)offers services within the Swedish National RoadAdministration's business area, primarily to ministriesand public authorities outside Sweden. SweRoad's pur-pose is to develop and pursue international contractingassignments on business terms, with a particular focuson developing countries receiving foreign aid.

In the short term, the objective was to achieve aminimum of zero earnings for 1999, with positiveearnings from 2000 onwards, while also generatingminimum average returns of 10 per cent on SweRoad’sowner's injected capital.

Evaluation After a negative financial year in 1998, burdened byextraordinary reorganization expenses, 1999 emergedas exceptionally positive.

OperationsSweRoad is active in providing consulting services in thehighway sector, on assignment from foreign ministriesand public authorities.

External factorsSweRoad's resources primarily consist of the skills andexperience harbored the National Road Administration,other Swedish authorities, organizations and corpora-tions regarding the highways and road traffic sector.Operations are highly dependent on access to theseresources, and any obstacles to this process automati-cally compromise business opportunities.

SweRoad's focus on developing countries also con-tributes to a sensitivity to any alteration in the focusof foreign aid provided by international and bilateralfinancing institutions.

Significant events in 1999 and 2000A new chairman was appointed in 1999. At present,SweRoad's operations are pursued in various ways insome 15 countries including the Baltic states, Jordan,Laos, Mozambique, Saudi Arabia, Sri Lanka, Thailand,Turkey and Zimbabwe. The precise form of SweRoad'spresence in these countries is under review.

Environmental initiatives SweRoad is managed by the National RoadAdministration, and accordingly, it environmentalefforts form part of the extensive initiatives withinthe Administration’s organizational resources.

Equal opportunitiesSweRoad's equal opportunities initiatives form part ofthe National Road Administration’s extensive effortsin this sphere.

Forecast 2000Measures to reduce expenses initiated in 1998, com-bined with a slightly improved order book, are expect-ed to result in operations satisfying established objec-tives in 2000 and beyond.

Board 1999Färm, Gunnel, ChairmanBergfalk, Lars, Deputy ChairmanKärre, MalinMannerstråle, GunnarUtterström, BrittmarieLindquist, Rolf, Employee RepresentativeJörud, Leif, Employee Representative, Deputy

Chief Executive OfficerBauducco, Roberto G

112

T H E C O R P O R AT I O N S – S W E D I S H S T AT E A L C O H O L R E T A I L I N G M O N O P O LY

Business concept/objectivesThe Swedish State Alcohol Retailing Monopoly is a cor-poration with the specific purpose of taking soleresponsibility for the retail sale of wine, spirits andfull-strength beer in accordance with Swedish alcohollegislation. Proceeding from these foundations, thecorporation's business concept is to be a modern, effi-cient retailing corporation, effecting the responsiblesale of alcoholic beverages, and conveying a judiciousdrinking culture.

The corporation's responsibilities can be dividedinto three points:

Social: sales will be effected to create respect for alco-hol, minimizing any potential adverse consequences.

Service: within the framework of the corporation'ssocial responsibility, the corporation's service shouldbe better than in the rest of the retail sector.

Costs: the corporation's social and service objectivesshould be achieved at the lowest possible cost.

EvaluationOne of the key elements of the corporation's socialresponsibility is to prevent young people aged under20 from purchasing alcohol in the corporation's stores.Surveys indicate that age controls have becomeincreasingly efficient. Within the framework of theconcept of a "judicious drinking culture", the corpora-tion disseminates information on the positive and neg-ative aspects of alcohol consumption.

Various studies illustrate that customers regard thecorporation's services as of at least the same quality asthe rest of the retail sector, and this applies to activi-ties such as personnel skills and service levels, productselections and the store network. The corporation isachieving poorer performance in only one area: storewaiting times on Thursday afternoons and Fridays.However, an increasing number of self-service storeshave resulted in an improvement on this point.

The abolition of the wholesaling monopoly in 1995implied a sharp cost increase and deteriorated earn-ings, but gradually, various rationalization programshave resulted in the limitation of expenses. Moreover,

the corporation's sales rose by over 10 per cent in1999, gains achieved without expenses increasing,benefiting earnings in 1999

OperationsThe alcohol bill approved by Parliament on 19November 1999 established the importance of the cor-poration's enhanced service and legitimacy. As a con-sequence, a number of measures to enhance the cor-poration's service were taken, including more stores,trial Saturday opening, extended opening hours andthe acceptance of debit and credit cards.

The corporation is currently undertaking extensiveinitiatives to formulate a new strategic platform,adapted to its new conditions.

External factorsRegulations governing the import of alcohol for privateusage will be gradually reformed from 1 July 2000 to2004, which will be highly significant to the corpora-tion's activities. The corporation's retail monopoly islikely to have achieve greater political significance as thesignificance of other related policy instruments fades.

Significant events in 1999 and 2000• Parliamentary resolution on the alcohol bill. • Decision regarding a new store data system.• Store format project.• A decision to open 50 new stores in 2000 and 2001.• New Chairman Gunnar Larsson appointed at the

May 1999 AGM.• New CEO Anitra Steen took up position on 1

September 1999.

Environmental initiativesThe corporation is aware of its responsibility for pro-moting a healthy environment, adopting an environ-mental program based on a recycling philosophy asearly as 1995. The fundamental principle underlyingthe corporation's environmental initiatives is that alldecisions should be considered in the context of theirenvironmental consequences. Environmental assess-ments were upgraded in 1999.

In 1999, the corporation's in-house environmentalmanagement system was enhanced for potential envi-

113

T H E C O R P O R AT I O N S – S W E D I S H S T AT E A L C O H O L R E T A I L I N G M O N O P O LY

ronmental accreditation of parts of activities; the moresystematic update of suppliers' environmental initia-tives began during the year.

Equal opportunitiesThe corporation updates its equal opportunities planannually, with topical equal opportunities projectsthis year including a working evaluation intended tospecify gender-related salary differences and absen-teeism due to sickness.

Forecast 2000In the year-2000 budget, the corporation assumed salesvolume gains of some 6 per cent, with progress so farthis year corresponding to a level slightly above this.Trial Saturday opening in some parts of the country andnew import regulations introduced gradually from 1July 2000 until 2004 are factors that can be expected toaffect demand. The implementation of measures in thealcohol bill approved by Parliament will affect expensesduring 2000 and relate to establishing new stores, trialSaturday opening, longer evening opening hours anddebit and credit card payments. Other major costincreases in the year relate to the necessary changeoverof store IT environments and datacom solutions.

The corporation has budgeted for revenues ofapproximately SEK 16,600 m, with earnings before

appropriations and tax of approximately SEK 150 m in2000. The corporation's earnings are highly volumesensitive; relatively marginal sales variations, resultingfrom revised import regulations, for example, mayexert a major earnings effect.

Board 1999Larsson, Gunnar, ChairmanBegler, Ann-Marie, Deputy ChairmanLindstedt, MonicaMarkström, ElisebehtMelin, UlfOlofsson, SörenSilfverstrand, BengtÅnstrand, ClaesDahl, Robin, DeputyLindholm, Evert, Deputy Löfstrand, Ingvar, DeputyPetersson, Sven-Olof, DeputyPilsäter, Karin, DeputyDanielsson, Sven-Olof, Employee Representative Höglund, Karin, Employee RepresentativeKjellström, Hans, Employee Representative, DeputyHagelberg, Eva, Employee Representative, Deputy

Chief Executive OfficerSteen, Anitra (from 1 September 1999 onwards)

SEK m 1999 1998 1997 1996 1995

Revenues (excluding sales tax) 16,625 15,464 15,837 16,063 16,199(excluding sales tax) 583.6 469.6 361.8 258.7 181.7Gross margin, % 3.5 3.1 2.3 1.6 1.1Earnings after financial items 470.0 350.9 239.1 145.1 88.4Net earnings 337.6 254.4 174.3 104.1 58.5

Adjusted equity 1) 1,394.7 1,179.3 1,045.5 967.3 896.9Net debt -1,617.4 -1,266.1 -992.2 -1,059.5 -973.7Net debt-equity ratio - - - - -

Return on equity, % 26.2 22.9 17.3 11.2 6.9 Return on operating capital, % 80.5 49.2 38.4 9.4 -Value-added 1,421.1 1,306.3 1,305.5 996.8 845.6

Cash flow before investments 791.3 385.7 17.5 238.4 827.9Net investments 165.0 30.5 116.6 151.8 240.4of which R&D investments n/a n/a n/a n/a n/a

(Dividends) government transfer 150.0 122.2 115.0 90.0 39.3



Government ownership holding 100% 100% 100% 100% 100%1)Adjusted equity; including untaxed reserves and deferred tax.

114

T H E C O R P O R AT I O N S – T E L I A A B

ObjectivesThe objective is for Telia to create value growth for itsowners by developing telecom and IT business from abase in the Nordic and Baltic regions.

Evaluation Telia's consolidated revenues net of divested opera-tions increased by over 6 per cent, to SEK 52,121(49,569) m, with this increase due to volume growth.Prices were cut by a further 6 per cent during the year.

Adjusted for capital gains, earnings in 1999 werethe best in the corporation's history; operational earn-ings1 grew by 23 per cent to SEK 6,727 (5,459) m.Operating earnings were burdened by SEK 722 m ofhuman resources restructuring expenses, and Y2K-related expenses of SEK 604 m. Disposals of non-strategic operations generated capital gains of SEK 582(4,929) m. Overall, operating earnings deteriorated toSEK 5,946 (7,220) m, although earnings excluding cap-ital gains more than doubled.

The consolidated financial position remained sta-ble. The rate of capital turnover deteriorated slightlybecause of a 13 per cent increase in total assets to SEK75,991 (67,278) m, compared to 5 per cent revenuegrowth. The current ratio increased because of a rela-tively high share of current assets and long-term bor-rowings.

During the year, Telia retained its prominent positionon the Swedish market, even if in some activities, mar-ket shares deteriorated slightly as a consequence of thepre-selection reform. The group consolidated its posi-tions in the rest of the Nordic, and the Baltic, regions.

International carrier activities performed positively,with Telia quickly securing a position as one of theglobal market's biggest network wholesalers.

OperationsThe Swedish domestic market is Telia's foundation,with business focused on activities where Telia enjoysunique strengths and opportunities. Telia will consoli-date its market-leading position in Sweden. Throughresolute broadband and Internet initiatives, Telia willexploit new technology to create business opportuni-ties from the prevailing sector drift.

In its adjacent markets —the Nordic and Balticregions —Telia will pursue the commercial control ofcurrent business, thereby realizing industrial syner-gies. On the international scene, Telia is concentratingon Europe-wide carrier operations, with coverage fromthe US to Russia.

External factorsThe telecom sector is in the midst of a dramatic trans-formation, with a robust increase in the number ofsector players, who increasingly, are becoming special-ists in particular niches and customer segments, andwho operate on a progressively larger part of the inter-national market from local or regional positions.

Significant events in 1999 and 2000Telia was launched on the stock market in June 2000.

The dissolution of the merger between Telia andTelenor of Norway was effected without difficulty,because the business the two groups did togethercould be transferred to either party, while no actualintegration of business areas was effected.

In 2000, Telia has implemented a more concentratedbusiness organization, reducing the number of businessareas from eight to five. These measures furtherenhance Telia's customer orientation, improving itsprospects of bettering customer service. The BusinessSolutions and People Solutions business area operate asthe group's service providers on end-customer markets.

Telecom operator pre-selection was introduced on 11September, while in autumn 1999, number portability(the facility to change operator without changing tele-phone number) on the fixed network was introducedsubsequent to a decision by PTS, the National Post andTelecom Agency. Ahead of activation of the pre-selec-tion reform, Telia received extensive orders from com-peting operators for individual customers. Research byPTS conducted in November indicated that four out often householders had selected their operator, with halfof these choosing a company other than Telia.

Environmental initiativesQuoting from Telia's environmental policy: "with theassistance of IT and telecommunication, we contribute

115

SEK m 1999 1998 1997 1996 1995

Revenues 52,121 49,569 45,665 42,430 38,953Gross margin, % 26.1 29 23.0 24.5 27.4Operational earnings1) 6,727 5,459 4,851 5,488 4,067Operating earnings 5,946 7,220 3,218 3,264 3,296Earnings after financial items 5,980 7,143 3,128 3,353 3,410Net earnings 4,222 5,011 2,222 2,337 2,484

Adjusted equity 32,280 29,344 25,487 24,413 23,083Net debt 7,527 6,767 14,609 13,534 12,065Net debt-equity ratio, multiple 0.24 0.24 0.60 0.58 0.55


Cash flow before investments 10,398 10,397 8,796 6,104 6,655Net investments 12,145 11,684 10,812 11,008 10,577of which R&D investments 1,570 1,709 1,757 1,389 1,282Dividends 1,470 1,400 1,210 1,152 1,000


Total employee headcount 30,643 30,593 32,549 34,192 33,065– Number of female employees 11,268 11,486 13,703 12,416 12,822– Number of employees in foreign countries 4,132 3,780 3,456 2,741 1,322

Government ownership holding 100% 100% 100% 100% 100%1) Telia utilizes an accounting principle that makes these figures more relevant.

T H E C O R P O R AT I O N S – T E L I A A B

to the reduction of the environmental impact we andour customers generate, thereby contributing to thesustainable society. The environment is an emphasizedelement of Telia's business."

Telia is pursuing environmental initiatives accord-ing to the ISO 14001 standard at group level.Decisions on environmental system accreditation arereached at a company/unit level. Four units have com-pleted autonomous reviews of the specific environ-mental impact of their activities, and are pursuing cer-tification in 2000 and 2001.

The update of environmental initiatives is per-formed annually coincident with collating data aheadof an environmental audit. The environmental auditsfor recent years, plus other information regardingTelia's environmental initiatives are available atwww.telia.se/miljo.

Telia has implemented an audit of its wood impreg-nation facilities, not identifying any residual environ-mental liabilities in these activities subsequent to theclean-up performed in 1997.

As mobile phone usage increases, the debate regard-ing its potential health risks, and of being in the prox-imity of base stations, is intensifying. Telia is monitor-ing progress closely, supporting research, and is aninstigator of sector collaborations. Overall scientificresearch has not provided any proof that mobile phoneusage is hazardous.

In spring 1999, Telia founded a scientific board in theelectromagnetic fields (EMF) sphere and related healtheffects. The board will monitor research, operating asTelia’s reference group. Telia has also assigned SEK 3 mto independent external EMF research for three years,acting as a sponsor for the WHO's EMF project.

During the year, Telia performed life-cycle analyses(LCA) in IP telephony, Centrex and radio transmis-sion. One purpose of LCAs is to highlight the environ-mental advantages of telecommunication over othercommunication media.

Equal opportunitiesTelia is an equal opportunities pioneer, undertakingextensive initiatives in its business areas. The group'scurrent focus is to increase the number of female man-agers, with for example, the group President declaringthat "it would be better if every other manager was awoman".

Forecast 2000Telia's new strategic direction implies that through itsfocus, the group will be able to exploit its uniqueexpertise on European and global levels. The outlookfor 2000 is bright, indicating sustained growth ofestablished operations.

Styrelse Petersson, Lars-Eric, ChairmanBennet, CarlCarlsson, IngvarIgel, AndersJohansson-Hedberg, BirgittaKäck, Ronny, Employee RepresentativeWestman, Berith, Employee Representative

Chief Executive OfficerKark, Jan-Åke

116

T H E C O R P O R AT I O N S – T E R A C O M A B

Business conceptTeracom's purpose is to effect the broadcast andtransmission of radio and TV programs. The corpora-tion is also to develop, market and provide other ser-vices associated with such activities. Teracom's nation-wide broadcast and transmission network will formthe foundation of its Swedish operations.

EvaluationThe objective is secure sector positioning in terms ofradio/TV and IT services, while Teracom has extendedactivities to new services spheres in sectors adjacent toits core business. Teracom's customers are media cor-porations. Teracom's digital platforms allow it to reachall Swedish households with mobile/portable receptionofferings.

The corporation's long-term target equity ratio is40 per cent; eventually Teracom expects to satisfy itsowner's require rate of return.

OperationsTeracom's strategy is to concentrate on the sale/deve-lopment of network services, its aggressive evolutionas a network operator, growth through means inclu-ding acquisitions and collaborations, open technologysolutions, and to pursue reform of the regulatoryenvironment. Teracom’s success, and financial perfor-mance, will be determined by the rate of digitaliza-tion.

Some 85 per cent of the Swedish population isaccessed by nationwide terrestrial digital radio broad-casts, while the coverage for regional programming issome 35 per cent. Four terrestrial digital TV networkswith a capacity of 18 channels have been constructed,now accessing 50 per cent of the population. Teracomis well-equipped to extend these networks to nation-

wide coverage and/or to build out more networks.While it remains in service, maintaining the qualityand accessibility of the analogue network is an impor-tant consideration.

External factorsTeracom is at the leading edge in terms of skills andexperience of establishing the necessary technologysystems and new services. Digital radio/TV networkswill play a key role in the IT society as nationwide,wireless and broadband distribution systems, since ele-ments of their capacity can be utilized for servicesother than radio/TV. Teracom comprises an attractivepartner in an international context, and enjoys highgrowth potential.

Significant events in 1999 and 2000Terrestrial digital TV broadcasts were inaugurated in1999. Apart from some regional channels, all the band-width of the four networks is being utilized.

Teracom also launched a mobile wireless Internetaccess technology— a vital element of the country'sbroadband links.

In 1999, Teracom acquired shares in Norwegianenterprises SmartCom AS and TravelVision AS, plusfurther shares in Senda i Sverige AB, Boxer TV-AccessAB and Active TV i Linköping AB. Teracom sold 30 percent of Boxer TV-Access shares to insurance corpora-tion Skandia in April 2000.

Environmental initiatives Teracom pursues working environment and environ-mental protection policies with the associated actionplans. Teracom will put environmental managementsystems out to tender, and test its choice, in 2000.

117

T H E C O R P O R AT I O N S – T E R A C O M A B

SEK m 1999 (prel) 1998 1997 1996 1995

Revenues 1,336 1,276 1,229 1,177 1,142Operating earnings before depreciation 462 431 421 479 413Gross margin, % 35 34 34 41 36Earnings after financial items 68 98 115 174 113Net earnings 33 67 77 276 80

Adjusted equity 1,023 1,006 951 880 603Net debt 1,189 933 637 541 744Net debt-equity ratio 162 93 67 61 123

Return on equity, % 3 7 8 37 14Return on operating capital, % 8 11 13 21 18Value-added 583 564 477 468 454

Cash flow before investments 89 312 265 290 125Net investments 352 522 427 227 208of which R&D investments 2 3 3 5 4





Equal opportunitiesTeracom has an equal opportunities plan, includingaction plans, implying active efforts to enable the com-bination of a working life and parenthood for men andwomen.

Forecast 2000Terrestrial digital TV is expected to achieve its break-through in 2000; proceeding from its existing programofferings, through Boxer-TV Access AB, Teracom cansustain its initiatives to achieve high penetration ofset-top boxes. Additionally, the convergence processmeans that new players are entering the corporation'straditional markets, but also implies more broad-basedutilization of Teracom's broadcasting network.Revenues are expected to increase palpably in 2000,with earnings after financial items expected at com-parable levels to 1999, followed by gradual increasesduring subsequent years.

Board 1999Gunnarsson, Gösta, ChairmanAbjörner, LenaBondestam, AnithaGustafsson, Karl ErikGustavsson, ÅkePersson, ValdemarZander, JensBlomkvist, John-Olof, Employee RepresentativeHowe, Peter, Employee RepresentativeJohansson, Lena, Employee Representative, DeputyViktorsson, Elisabeth, Employee Representative, Deputy

Chief Executive OfficerPersson, Valdemar

118

T H E C O R P O R AT I O N S – V AT T E N F A L L A B

Business concept/objectivesVattenfall's owner, the Government, has establishedthe corporation's primary task, which is to produceand supply electricity to its customers efficiently.Vattenfall is to achieve this on sound business terms,implying it satisfying market standards in terms ofreturns and dividends from operations. In this way,Vattenfall will contribute to ensuring access to elec-tricity at a reasonable price, and to create goodprospects for Swedish business competitiveness.

Vattenfall's vision is for the corporation to be aprominent European utility and global energy partner.The business concept is to enhance customers' com-petitiveness, the environment and quality of lifethrough a unique combination of world-class efficientenergy solutions and service.

Vattenfall's financial objective is to achieve marketprofitability simultaneous with growth while remain-ing in financial balance, maintaining a satisfactoryequity ratio and stable dividends. The focus is toachieve sustainable returns on equity after standard-rate tax of approximately 15 per cent on average overa business cycle, with an equity ratio of 30-40 percent. Dividends are to equate to about one-third ofearnings, and some 5 per cent of shareholders' equity.In addition to financial objectives, Vattenfall has for-mulated group objectives for customers, employees,processes, the environment and progression.

Evaluation Since the Swedish electricity market was deregulatedin 1996, prices have dropped by 30-40 per cent simul-taneous with intensifying competition. Meanwhile,profitability has gradually declined, being below the15 per cent objective since 1995. In 1999, return onequity after standard rate tax was 8.7 per cent, withthe primary explanation for deteriorated profitabilitylying in margin erosion ensuing from declining energymarket prices, although this was partially offset bycost savings of some SEK 500 m. The year-2000 oper-ating margin was 19.9 per cent, against 21.7 per centin the previous year.

Since 1995, Vattenfall's equity ratio has been with-in or above the target interval, standing at 39 per centin 1999.

Vattenfall's objective is for dividends to equate toone-third of earnings, which it has exceeded since1995; over the last five years, annual dividends havebeen SEK 1,500 m.

Margin pressure on a stagnating energy market sub-ject to intense competition has impelled increasedoperational efficiency. Vattenfall's aforementioned costrationalizations generated an effect of some SEK 500 min 1999. Overall, savings of approximately SEK 1,000 mwill be achieved before the end of 2000, although fur-ther cost and capital rationalizations will be necessary.

Operations From 1 January 2000, Vattenfall's matrix structurecomprises four business areas— Electricity Production,Energy Market, Services and Networks— and 12 marketregions, primarily comprising those countries whereVattenfall is active. The international market region isresponsible for activities outside Europe. At the end of1999, Vattenfall's employee headcount was approxi-mately 8,000, some 10 per cent located outside Sweden.After the year-2000 acquisition of 55 per cent of elec-tricity and heating player Electrocieplownie Warszawskieof Warsaw, the consolidated headcount exceeded12,000, 40 per cent located outside Sweden. Althoughthe majority of Vattenfall's revenues are still generatedin Sweden, the billing share outside Sweden is increas-ing, amounting to some 25 per cent in 1999.

Vattenfall sells electrical energy, district heating,energy services, network services and natural gas.Energy services include energy solutions, energy andconsulting services, plus contracting. Vattenfall gener-ates some 20 per cent of the electricity consumed inthe Nordic region and is a prominent grid operator. Thecorporation is also active outside the Nordic region,primarily in the rest of northern Europe but also insoutheast Asia, North and South America. Vattenfall'sgrowth strategy encompasses energy-related productdevelopment, the acquisition of energy customers,

119


transmission networks and heating activities. Customercommunication initiatives form an additional elementof the growth strategy, marketed through subsidiarySensel AB and collaborations with other enterprises.

The Vattenfall group's competitiveness is built onthe development of needs-adapted, value-for-moneyproducts and offerings, and on building a strong, trust-worthy and attractive brand. Over the last decade,Vattenfall's operations have been transformed fromproduction orientation to an increasing dependence onthe customer base, its evolution and growth. Vattenfallcustomers are in all sectors: manufacturing and utili-ties, services, real estate, agriculture and households.The customer base is currently about 2 million strong,and is being extended by intensive marketing, corpo-rate acquisitions and joint ventures (see below), as wellas through partnerships with utilities and corporationsin other sectors. www energy sales to consumers,through abonnera.com are one step in the extension ofVattenfall's customer base, with the simultaneous andfurther rationalization of sales activities.

External factors Healthy flows into the Nordic regional hydroelectricsystem implied that prices on the pan-NordicNordPool energy exchange averaged SEK 0.118/kWh in1999, against SEK 0.123 in 1998, a reduction of someSEK 0.14/ kWh since 1996.

Competition is constantly increasing on the deregu-lated electricity market; Sweden abolished its specificmetering requirement for virtually all customers on 1November 1999, implying further price pressure. Withcurrent sales volumes, an SEK 0.01/ kWh price declinein billing implies an SEK 800 m earnings reduction.Easy access to power on the Nordic energy market,combined with progressively intensifying competitionimplies that this low price level is expected to sustainfor many years.

EU electricity markets took their first step towardsderegulation in 1999, with in Germany particularly,this implying a very rapid exposure to competition,with a sharp price decline resulting. The German mar-ket has also been marked by a series of very sizeableutility mergers, a restructuring trend that is expectedto continue. Progress towards an open, competitiveEuropean electrical energy market will proceed,extending to Poland, the Czech Republic and Hungary,which have also started deregulating.

As markets become open, business opportunitiesarise. In the Nordic region, as in the rest of the world,rapid power sector restructuring is in hand, with theemergence of fewer, larger entities. New players arearriving on the market, with sector drift apparent inmajor oil corporations selling electricity, and the emer-gence of combined electricity and gas utilities. Thederegulation is resulting in the interconnection ofnational electricity markets into larger geographicalregions, with power generators internationalizing. In

the 1990s, Vattenfall evolved from a national into aNordic player, with significant activities in northernEurope. However, compared to the power corporationscreated through sector consolidation, particularly inGermany, Vattenfall remains a relatively small playerin international terms.

Significant events in 1999 and 2000 A series of structural transactions were made in 1999and 2000. Vattenfall acquired two generators inFinland— Revon Sähkö and Heinola Energia— withcombined customer bases of 67,000, adding Keski-Suomen Valo, with its 75,000 customers, in early2000. In Norway, Vattenfall acquired 49 per cent ofOslo Energi with its 385,000 customers and 40 percent of Fredrikstad Energi with 35,000 customers.Vattenfall also initiated a sales collaboration withGöteborg Energi through a newly incorporated 50 percent owned enterprise, Plusenergi AB.

In 1999, Vattenfall acquired 25.1 per cent ofHamburgische Electriciäts-Werke (HEW) with its900,000 electricity customers. Vattenfall also reacheda collaboration agreement with the City of Hamburg,which owns a further 25.1 per cent. This transactionconferred Vattenfall with Board control over HEW anda bridgehead for the further progression of transactionsin Germany. Vattenfall increased its holdings in Czechelectricity distributor Vycodoceska Energetica, with its676,000 customers, to 42 per cent. In January 2000Vattenfall acquired 55 per cent of ElectrocieplownieWarszawskie, with electricity generation and heatingproduction in Warsaw. These acquisitions mean thatwithin one year, Vattenfall's activities outside Swedenwill be as extensive as those within Sweden.

In 1999, the Government, Vattenfall and Sydkraftreached a settlement regarding Bärseback Kraft ABconcerning the closure of the Bärseback I nuclear reac-tor. Bärseback Kraft and Ringhals AB are forming a cor-porate grouping, 74.2 per cent owned by Vattenfall and25.8 per cent by Sydkraft. The Government will payremuneration to Vattenfall over four years, in a settle-ment conditional on Parliamentary funding approval.

Environmental initiativesVattenfall has adopted an environmental policy imply-ing the closer linking of environmental initiatives tooperations. Positive environmental initiatives and theintroduction of environmental management systemsconfer the prospects for enhanced profitability.Additional Vattenfall activities secured ISO 14001accreditation in 1999, with environmental manage-ment systems introduced in the majority of operations.

Equal opportunitiesVattenfall has pursued the introduction of morewomen into the energy sector for many years, and anincrease in its share of female employees. Vattenfallhas monitored a number of indicators for several years,

120

with 1999 revealing that 23 per cent of group employeeswere women; 16 per cent of Vattenfall's managers arewomen, with the share of female technicians at 9 percent. Additionally, an increasing proportion of womenare managing various projects. An emphasis on thefurther enhancement of equal opportunities will beachieved by sharpening the focus on qualitative andclearly defined processes for recruiting and supplyingmanagers.

Forecast 2000Margin pressure on electricity, Vattenfall's centralproduct, is persisting in 2000. A mild winter and easyaccess to production capacity in the Nordic region willresult in sustained low system prices on the NordPoolenergy exchange. Average prices in February were lessthan SEK 0.11/kWh, and accordingly, forecast earningsfor 2000 are below the 1999 level.

One challenge Vattenfall faces is to formulate a strat-egy for securing its role in the European power systemduring its rapid restructuring, coincident with the suc-cessive exposure of electricity and gas markets to com-petition now in hand across the region. To participate inthis restructuring, Vattenfall must have the opportunityto establish various forms of hard-hitting alliance.

Board 1999Andersson, Jörgen, Chairman until April 2000Larsson, Gerhard, Chairman from April 2000 onwardsFossum, LilianEklund, HelgeHjorth, LarsJohansson, GöranMarking, BoNyquist, Carl-Erik, until April 2000Striby, ChristinaOlson, Hans Christer, DeputyÖgren, Kent, DeputyBernhardsson, Johnny, Employee RepresentativeCarlberg, Lars, Employee RepresentativeEkwall, Ronny, Employee RepresentativeCarlsson, Lars, Employee Representative, Deputy Lööv, Per-Ove, Employee Representative, DeputyLindberg, Stig, Employee Representative, Deputy

Chief Executive Officer and PresidentNyquist, Carl-Erik, until April 2000Tiusanen, Bertil, Temporary CEO (April-July 2000)Josefsson, Lars (from August 2000 onwards)


SEK m 1999 1998 1997 1996 1995

Gross revenues 27,754 27,957 28,458 29,030 26,796Operating earnings before depreciation 9,866 9,860 11,624 10,873 10,488Gross margin, % 36 35 41 37 39Earnings after financial items 4,297 4,448 5,439 5,461 5,126Earnings after financial items adjustedfor non-operating items 4,297 4,448 5,276 5,461 5,376Net earnings 2,538 2,664 3,399 3,725 3,576

Adjusted equity 33,347 32,325 31,158 28,875 26,305Net debt 1) 27,415 23,437 22,350 24,504 26,154Net debt-equity ratio, multiple 0.82 0.73 0.72 0.85 0.99

Return on equity, % 7.7 8.4 11.3 13.5 14.2Return on operating capital 2), % - - - - -Value-added 14,000 3) 14,000 3) n/a n/a n/a

Cash flow before investments 4) 3,238 6,485 - - -Investeringar 7,968 4,528 4,877 5,984 6,043of which R&D investments 5) - - - - -

Dividends 1,500 1,500 1,500 1,500 1,500


Average employee headcount 7,991 7,996 7,847 8,263 8,460– Average number of female employees 1,805 1,778 1,663 1,624 1,537– Average number of employees in foreign countries 662 428 355 551 284

Government ownership holding 100% 100% 100% 100% 100%1)Net debt: interest-bearing liabilities and provisions less liquid assets as of 31 December2)Only available for 1998 and 1999.3)Estimate4)Only available for 1998 and 1999.5)Research and development expenses are accounted as they arise.

121

T H E C O R P O R AT I O N S – V E N A N T I U S A B

AssignmentVenantius AB is a credit market company constructedto manage mortgage loans granted by the Governmentbut subject to particularly high risk of credit losses. InJune 1995, Parliament decided to give the corporationthe task of managing loans taken over in the optimalmanner, from an overall national perspective.

EvaluationVenantius' objective is to manage, restructure and sellall assets, in a manner advantageous for the nation as awhole. Current operational progress is expected tomean Venantius being able to complete its assignmentwithin the framework of the originally provided capital.

OperationsIn total, some 70,000 loans were transferred toVenantius, primarily from SBAB, but also directlyfrom the Government, with an aggregate value of someSEK 33 bn. Since inception, Venantius AB has con-tributed to the reconstruction of over 1,600 tenant-owner associations in difficulty.

Venantius was also transferred the residual assetsof the Securum group, totaling over SEK 6 bn in loans,real estate and shares; all these assets have beendivested. In December 1999, Venantius took over theoperations of Haninge Bostäder AB, which owns andmanages over 9,000 dwellings in 166 properties, fromthe Government. Since inception, VF Fastigheter ABand its subsidiaries also form part of Venantius, which

were acquired from SBAB. VF Fastigheter's total assetsamounted to SEK 437 m as of the end of the year.

External factorsVenantius manages loan stock subject to particularlyhigh risks of credit losses; several of the mortgagedproperties are outside central locations and in regionssubject to slower economic growth. The progress ofcredit losses is highly dependent on interest rates,inflation and regional economic conditions, whichexert a combined influence on the demand for realestate and housing prices.

Significant events in 1999 and 2000In 1999, parent company Venantius AB posted operat-ing earnings equivalent to a SEK 345 m loss, excludingSEK 579 m in dividends received. This deficit wascaused by sustained high credit losses. Since its 1995inception, Venantius' earnings have been burdened bycredit losses totaling nearly SEK 8 bn. For 1999, thegroup posted earnings before appropriations and tax ofSEK 159 m as a consequence of substantial recoveriesfrom commitments relating to Securum.

Environmental initiativesThe corporation has no environmental policy.

Equal opportunitiesVenantius has an equal opportunities plan that hasbeen formulated in collaboration with staff organiza-

122

T H E C O R P O R AT I O N S – V E N A N T I U S A B

tions. Some 35 per cent of managers are women.Accordingly, Venantius actively pursues the additionof women when recruiting, reorganizing or under-taking similar activities.

Forecast 2000During the coming years, earnings growth will bedependent on the progression of interest rates andinflation, and progress on the real estate market out-side major cities.

Board 1999Persson, Curt, ChairmanDillén, MatsJohansson, Karl-ErikKjellander, Claes VDRönnberg, Mats

Chief Executive OfficerGustafsson, Eva-Britt

SEK m 1999 1998 1997 1996 1995

Net interest income 285 386 634 998 330Net commission income 0 -4 -4 2 7Earnings before credit losses -185 -320 -303 -143 -65Credit losses -102 -512 -833 -2,423 -3,370Operating earnings 140 -75 -458 -1,569 -3,078Net earnings 159 -89 -403 -1,569 -3,078

Total assets 25,708 27,350 31,949 24,954 27,998Lending 19,490 20,203 19,925 21,741 25,068Adjusted equity 3,398 3,240 3,351 3,738 5,307Return on equity, % 4.8 -2.7 -11.4 -34.7 -45.0Tier 1 capital adequacy ratio, % 17.5 21.2 18.2 32.0 42.3Capital adequacy ratio, % 17.5 21.2 18.2 32.0 42.3

Income/costs ratio exc. credit losses 1.8 1.7 2.5 7.6 5.6Credit losses as a percentage of lending 0.5 2.6 3.8 9.7 10.8Investment margin 1.1 1.3 2.2 3.8 2.2Rating (S&P/Moody´s)1) AA+/Aa1 AA+/Aa2 AA+/Aa3 AA+/Aa3 AA+/Aa3


Total average employee headcount 146 205 190 117 44– Number of female employees 64 94 90 51 19– Number of employees in foreign countries 4 20 10 0 0

Government ownership holding 100% 100% 100% 100% 100%1) Same as the Kingdom of Sweden

123

T H E C O R P O R AT I O N S – V & S V I N & S P R I T A B

Business conceptOffering alcohol products of an appropriate quality toconsumers through strong and attractive brands.

The vision is of V&S Vin & Sprit AB (V&S) beinga world-class and profitable alcoholic beverages cor-poration.

V&S' strategy is to increase its presence on existingand new markets through the acquisition of corpora-tions or brands.

EvaluationV&S’ consolidated net earnings were SEK 690 m, andits return on equity was 31 per cent in 1999.

OperationsV&S is Sweden's leading supplier of wines and spirits.Internationally, V&S has a well-established presencethrough Absolut Vodka, the world's fifth largest pre-mium spirit brand.

During the 1990s, V&S adapted activities to a prog-ressively contracting domestic market.

The efforts to realize V&S' vision of being a pro-fitable alcoholic beverages corporation is pursuedthrough three means: the creation of a strong Nordicmarket player, seeking local distribution on key mar-kets, and acquiring international brands.

In December 1999, V&S acquired De DanskeSpritfabrikker, with operations in Denmark andGermany. This transaction created a secure structureto continue enhancing brands, and also meant the crea-tion of Europe's seventh largest alcoholic beveragescorporation.

V&S' agency Provinum has established a sales pre-sence in Norway.

Apart from the market position created in theNordic region, the primary operational bases are theCzech Republic and Poland. In May 1999 V&Sacquired Dynybyl, the Czech Republic's pre-eminentvodka distiller with a market share of some 20 percent. Thereby, V&S established critical mass for localdistribution.

In February 2000, V&S acquired Coates & Co., pro-ducer of UK premium in brand Plymouth Gin. V&Salso acquired the Nordic market rights to the LordCalvert whisky brand.

External factorsThe international market for alcoholic products isevolving through mergers, resulting in progressivelylarger corporations.

The restructuring of the Swedish sector is continu-ing, even if progress is unexpectedly slow. Over 300players still have import permits, and thereby theopportunity to make sales to Systembolaget, the statealcohol retailing monopoly, and restaurants.

For the first occasion in many years, in 1999, V&Sposted unchanged spirits sales volumes in Sweden.

International spirits consumption remains largelyunchanged, although there is an ongoing shift towardsclear spirits. After many years' turbulence on theSwedish wine market, 1999 can be characterized byconsolidation, with the trend of already establishedbrands consolidating their positions.

Wine sales expanded markedly in 1999, with onelikely contributor being a warm summer and opportu-nities for more continental consumption patterns,offered by products such as wine-box packaging.

While internationally, wine consumption has notchanged to any great extent, red wines are advancingat the expense of whites.

Significant events in 1999 and 2000V&S' efforts to be a profitable, world-class corporationhave been expressed through the aforementioned cor-porate and brand acquisitions.

Absolut Vodka's healthy progress sustained in 1999,with new record sales of 60 million liters registered.New product Absolut Mandrin gained a very favorableUS and Swedish market reception, and will belaunched on further markets in 2000.

Sales of super-premium vodka brand Sundsvall havebeen aborted in the US as a consequence of unexpec-tedly sluggish demand.

V&S' activities in Falkenberg will be wound downby no later than 1 July 2000, the cause being declininginterest in products bottled in Sweden and accentuat-ing competition. Elements of the wine bottling activi-ties will be transferred to De Danske Spritfabbriker'sSvendborg facility. Ministry of Finance Under-secre-tary of State Peter Lagerblad became CEO of V&S atthe AGM of 10 April 2000. His predecessor EgonJacobsson will remain full-time Executive DeputyChairman for the next year.

Environmental initiativesV&S' environmental policy stipulates the corporationactively contributing to progress that promotes thesustainable utilization of shared natural resources.Environmental consideration is to form a natural ele-ment of the corporation's business processes. A holis-

124

SEK m 1999 1998 1997 1996 1995

Revenues 4,029 3,447 3,224 3,166 4,092Operating earnings before depreciation 1,004 1,140 747 592 651Gross margin, % 24.9 33.1 23.2 18.7 15.9Earnings after financial items 964 1,060 672 272 725Earnings after financial items adjustedfor non-operating items 1,107 773 689 284 725Net earnings 690 862 497 173 518

Adjusted equity 2,163 2,313 1,867 1,640 1,817

Return on equity, % 31.0 26.5 27.6 20.8 26.1Return on operating capital, % 93.0 125.7 69.6 22.3 78.7Value-added 2,887 2,404 2,229 2,020 n/a

Cash flow before investments 808 750 289 997 637Net investments 686 119 83 519 270of which R&D investments

Dividends 230 840 415 270 350

Foreign share of sales, % 70 70 63 57 n/a

Total employee headcount 771 698 729 774 902– Number of female employees 270 209 211 209 n/a – Number of employees in foreign countries 69 23 24 24 n/a


T H E C O R P O R AT I O N S – V & S V I N & S P R I T A B

tic view, responsibility, renewability and the conserva-tion of resources will be key concepts for V&S' envi-ronmental initiatives.

The over-arching objective of V&S’ environmentalinitiatives is for the corporation to become the sector'senvironmental leader. Concrete environmental objec-tives are in focus for operations: the environmentalimpact of V&S products on agriculture will be halved,with energy consumption per produced liter reducedand all personnel undertaking training. All employeeshave taken a half-day basic environmental trainingcourse, followed by "Journey to the Future", a volun-tary www environmental training course implementedas a game. The Absolut Company in Åhus has achievedsuch success in its energy conservation initiatives thatits environmental objective for energy is attainable. TheReimersholms Spritgrupp group now has four schnappsofferings with KRAV environmental accreditation.Because demand easily exceeds supply for AbsolutVodka, pursuit of KRAV-accredited raw materials isnot possible. Accordingly, the strategy is to secureSigill-accredited autumn wheat for production.

V&S has intensified its efforts to secure transportsolutions with reduced environmental impact, resul-ting in the replacement of the majority of road trans-port by rail.

Equal opportunitiesRecruitment to V&S’ various units disregards gender,while an exchange between traditional male and femaleworking roles is encouraged upon internal recruitment.Women and men are offered the same opportunities interms of training and professional progress.

Collective pay agreements have no content that canbe regarded as discriminatory from any perspective,and discussions regarding pay review settlements andrecruitment proceed from the assumption that nosalary discrepancies based on gender will arise.

Forecast 2000The international market for alcohol is mature and hasno actual growth, although shifts between variousspirits categories and segments do arise, wherebyincreasingly, consumers are demanding renownedbrands in high-end segments. Accordingly, player posi-tioning to ensure shares of specific markets is veryapparent.

In Sweden, V&S anticipates as a sustained down-turn. V&S is looking outside Sweden for its expansionand growth to ensure the corporation's future.

Board 1999Dahlbäck, Claes, ChairmanCarlgren, AndreasHåkansson, Per OlofJacobsson, EgonJohansson, AnitaLagerblad, PeterMårtensson, ArneSohlman, MichaelLundin, Jan, Employee Representative Wrangsell, Göran, Employee Representative

Chief Executive OfficerLagerblad, Peter, from 10 April 2000 onwards.Jacobsson, Egon until 10 April 2000.

125

PurposeVoksenåsen Conference center is Norway's gift toSweden. Operations are intended to strengthen theunity between Swedes and Norwegians, and toincrease shared knowledge of the two countries'societies, language and culture.

EvaluationThe objective is to make Voksenåsen an obvious meet-ing-point, and a well-utilized debating forum for cul-tural and societal questions relating to Sweden andNorway. Accordingly, Voksenåsen will interact withpublic authorities and non-profit organizations in bothcountries, and will organize a high proportion of eventsfor young people, with hotel and restaurant activitiesbeing self-financing. In 1999, the degree to which theseobjectives were realized is regarded as satisfactory.

OperationsIn its 40-year history, Voksenåsen has evolved into acontemporary conference facility with hotel accommo-dation for 130 overnight guests (a total of 70 rooms).The facility is operated as a Norwegian limited compa-ny wholly owned by the Swedish Government, its Boardcomprised of Swedish and Norwegian members. Thehotel and restaurant activities were previously put outto contract, although have been operated under thecorporation's own auspices since 1 July 1999. TheSwedish government’s real estate agency (SFV) isresponsible for the operation of the real estate, andcharges the corporation annual rent. The corporationoperates its own extensive events calendar. The numberof visitors to concerts, exhibitions and other culturalevents has increased from some 3,000 in 1998 toapproximately 3,500 in 1999. Additionally, approxi-mately 10 debate seminars, a number of language andcultural courses were also arranged as well as a summeracademy for young people. Voksenåsen has also actedas a host for a variety of external events. Negotiationsahead of the formation of a new NorwegianGovernment in 1997 were held at Voksenåsen, whichhad a positive marketing effect in 1998 and 1999.

Board 1999Bohlin, Görel, ChairmanKleppe, Per, Deputy Chairman

Berge, MathisButtedahl, JohanEidem, Bjarne MørkEnochsson, PiaRuth, ArneSohlman, RagnarStendahl, Christina

General SecretaryEllingsen, Karl Einar

The following table illustrates figures for 1999 only,because accounting principles were revised coincidentwith the take-over of restaurant and hotel operationsfrom Voksenåsen Hotell A/S. The majority of revenuesand earnings are attributable to the second half-year1999.

T H E C O R P O R AT I O N S – V O K S E N Å S E N A / S

SEK m 1999 (SEK) 1999 (NOK)

Revenues 19.0 18.0of which support 8.2 7.7Operating earnings before depreciation 2.6 2.5Gross margin, % 9.9Earnings after financial items 0.4 0.4Earnings after financial items adjustedfor non-operating items 0.4 0.4Net earnings n/a n/a

Adjusted equity 2.7 2.6Net debt 4.5 4.3Net debt-equity ratio 62.9

Return on equity, % 99.4Return on operating capital, % 36.9Value-added n/a n/a

Cash flow before investments n/a n/aNet investmentsof which R&D investments n/a n/a

Dividends 0 0

Foreign share of sales, % 100

Total employee headcount 1) 62–Number of female employees 27–Number of employees in foreign countries 62

Government ownership holding 100%1) People employed at the end of the year; in 1998, Voksenåsen hadtwo employees.

126

I N L I Q U I D AT I O N – G R Ä N G E S B E R G S G R U V O R A B

In autumn 1987, the Swedish Parliament decided toapprove a transfer agreement between SSAB and theGovernment implying the transfer of all shares inSSAB gruvor AB to the Government as of 31December 1987, plus the Government assumingSSAB's responsibility for Grängesberg personnel, withemployment protection until the end of 1991.Simultaneously, the mining company changed corpo-rate name to Grängesbergs Gruvor AB (GGAB).Subsidiary Utvecklings AB Laven was incorporated inautumn 1987, with the intention of stimulating enter-prise start-ups in Grängesberg.

A joint decision between owners, companies,municipalities and staff organizations in spring 1989resulted in the termination of mining operations at theend of 1989/90, i.e. two years earlier than expected.Since closure, GGAB's operations are primarily com-prise personnel lay-offs, new enterprise start-ups andrestoration of the mining area.

An agreement on 29 June 1995 implied theMunicipality of Ludvika acquiring all shares inUtvecklings AB Laven from GGAB, with an associatedoption agreement conferring the Municipality with theright, but not the obligation, to acquire all GGAB

shares by no later than 31 December 2000. In autumn1999, the Municipality of Ludvika decided to utilizeits option agreement, requesting the acquisition of allshares in GGAB.

Subject to Parliamentary approval, GGAB will besold to the Municipality of Ludvika in 2000.

Board 1999Engman, Gunnar, ChairmanBerggren, ChristerMitteregger, Fritz

Chief Executive OfficerAronsson, Per

SEK m 1999 1998 1997 1996 1995

Revenues 0 0 0 0 0Net earnings 0 0 0 0 0

Adjusted equity 3 3 3 3 3Net debt 0 0 0 0 0Net debt-equity ratio, % 0 0 0 0 0Dividends 0 0 0 0 0


127

I N L I Q U I D AT I O N – A B K U R O R T S V E R K S A M H E T, S K D F Ö R E T A G E N A B

A Parliamentary decision to approve proposals in theMedical Insurance Inquiry bill, etc. (ref: prop.1998/99: 76, bet. 1998/1999 SfU8, rskr. 1998/99:232) had implications including the wind-down of ABKurortsverksamhet and its subsidiary AB Tranåskuranstalt, which pursued operations at the NationalSocial Insurance Board Hospitals in Nynäshamn andTranås until 1999. At present, elements of activitiesare pursued by the County of Östergötland unemp-loyment fund. The National Social Insurance Board isresponsible for the liquidation of these corporations,which will be completed during 2000.

Board 1999Olofsson, Sören, ChairmanAndersson, Jan, Deputy ChairmanMarklund, IngerJohansson, Kent, DeputyJohansson, Margareta, Employee RepresentativeNynäshamnSvelander, Charlotte, Employee RepresentativeNynäshamnAndersson, Birgitta, Employee Representative TranåsDufmats, Cecilia, Employee Representative Tranås

Chief Executive OfficerNilsson, Jan-Eric

SKD företagen AB pursued consulting services activi-ties, but Parliament resolved on its wind-down ordivestment in 1991. The privatization of SKD företa-gen AB began in 1993, and has implied the sale of allsubsidiaries and their operations.

The corporation has no employees.SKD företagen AB will be liquidated in 2000.

SKD företagen AB

SEK m 1999 1998 1997 1996 1995

Revenues 164.7 174.3 170.0 171.4 171.9Net earnings 62.9 -3.5 1.4 1.2 -0.2

Adjusted equity 93.4 30.5 34.0 32.6 31.5Net debt 0 0 0 0 0Net debt-equity ratio, % 0 0 0 0 0

Dividends 0 0 0 0 0


128

I N L I Q U I D AT I O N – S T AT E N S P R E M I E F O N D A B ( P U B L ) , S V E R I G E S G E O L O G I S K A A B , S G A B

In 1998, the Swedish Parliament resolved that theGovernment would incorporate a Government invest-ment corporation, Statens Premiefond AB, to be activein the premium pension system (ref: prop.1998/99:151, bet. 1997/98: SfU13, rskr. 1997/98:315). The Corporation was to offer pension manage-ment to those pension policyholders actively wanting aGovernment alternative.

In December 1999, and against the background of aproposal in the Government's bill relating toGovernment management of premium pension funds,etc. (ref: prop. 1999/2000: 112, bet. 1999/2000: SFU6,

rskr. 1999/2000:99), the Government resolved thatinvestment corporation Statens Premiefond AB wouldbe liquidated, this conclusion being reached on thebasis of financial considerations.

Board 1999Hansson, Ingemar, ChairmanDexe, NilsRagsten Pettersson, Christina

Chief Executive OfficerRagsten Pettersson, Christina

Statens Premiefond AB (publ)

In 1982, the Swedish Parliament decided to splitnational geological research corporation SverigesGeologiska Undersökning (SGU) into a public authori-ty and a business entity, with the latter operated as alimited company, with corporate name SverigesGeologiska AB, SGAB. Activities comprised the con-tracting activities formally pursued by SGU.

A decision to wind down SGAB was taken in1991, with a decision to liquidate the company in1995.

The corporation's wind-down continued in 1999,with SGAB in liquidation for the entire year. The li-quidator expects operations to be fully wound downin 2001.

Sveriges Geologiska AB, SGAB

SEK m 1999 1998

Net revenues 0 0Net earnings -3 -2Adjusted equity 5 8Net debt 0 0Net debt-equity ratio - -Dividends 0 0


129

I N L I Q U I D AT I O N – Z E N I T S H I P P I N G A B

Zenit Shipping AB was incorporated in the 1930s as asubsidiary of the then privately owned wharf ABGötaverken, with its intention being to function as apurchaser of vessel construction on the wharf's ownaccount. Zenit Shipping AB gained a more active rolecoincident with the nationalization of AB Götaverkenand the incorporation of Svenska Varv AB (Swedishwharves) in 1977. Coincident with the shipping crisis,those customer receivables where purchasers couldnot honor their payments were transferred to ZenitShipping AB.

In spring 1983, Parliament resolved to reconstructSvenska Varv AB, and Zenit Shipping AB becameinstrumental in this process. All non-performing com-mitments were transferred to Zenit Shipping AB, faci-litating the rationalization of Svenska Varv AB's balancesheet. Zenit Shipping AB was supplied with SEK 3 bn.

In 1985, an agreement was reached with theNational Debt Office with an undertaking implying thegradual coverage of losses resulting from taking vesselsout of service within a SEK 1.7 bn framework, throughthe conditional injection of funds. As of 1989, the cor-poration had secured SEK 1.2 bn, a sum fully repaid in

1990-1995. Until the present, SEK 107 m of additionalinjections of nearly SEK 1.1 bn have been repaid.

At its peak, Zenit Shipping controlled 6,400,000dead weight tons spread over some 40 vessels. Allvessels have been divested in accordance withParliamentary decisions.

Zenit Shipping AB's assignment is to wind down thecorporation on the best possible terms. In 1999, thecorporation continued the dissolution of residual com-mitments from previously owned vessels. Fundsreceived are used to repay previous conditional injec-tions from the National Debt Office. Zenit ShippingAB's activities are expected to proceed for a few moreyears.

Board 1999Lewin, Leif, ChairmanBerggren, ChristerCarnhagen, GöranMolander, Harald

Chief Executive OfficerMolander, Harald

SEK m 1999 1998 1997 1996 1995

Revenues n/a 3.9 8.1 23.5 41.2of which support - - - - -Net earnings -1.8 4.2 9.3 45.5 57.4

Adjusted equity 4.7 6.5 6.3 6.3 120.4Net debt 0 0 0 0 0Net debt-equity ratio, % - - - - -

Dividends 0 0 0 0 0


131

D E F I N I T I O N S

DefinitionsAll definitions correspond to the Swedish Society of Financial Analysts’ recommendations from 1999, unlessotherwise indicated.

Employee headcount Average number of employees converted to full-time employees.

Return on equity Net earnings after full tax as a percentage of average shareholders’ equity.

Shareholders’ equity includes share of associated companies’ shareholders’equity, and excludes minority shares in subsidiaries.

Return on operating capital Operating earnings after depreciation as a percentage of average operatingcapital. Operating capital is defined as total assets less liquid assets and otherinterest-bearing assets plus non-interest bearing liabilities.

Gross margin Operating earnings before depreciation as a percentage of turnover for theyear.

Property yield Operating surplus as a percentage of the book value of real estate at year-end.

Operating surplus Rental revenue less operating expenses as stated in the accounts for the peri-od. Adjustments are made for real estate acquired during the year so thatoperating surpluses are included from the beginning of the year and, fordivested real estate, so that operating surpluses are excluded in full.

Value-added Revenue less expenses for acquired goods and services.

I/C ratio exc. credit losses Operating income in relation to operating expenses.

Adjusted equity ratio Net asset value divided by adjusted total assets. The net asset value is defi-ned as shareholders’ equity plus undisclosed reserves in assets valued at mar-ket less deferred tax. Adjusted total assets are defined as total assets plusundisclosed reserves before tax.

Adjusted equity Shareholders’ equity as of 31 December. Adjusted equity includes share ofassociated companies’ shareholders’ equity and excludes minority shares insubsidiaries.

Capital adequacy ratio The capital base in relation to the risk-weighted amount. The capital basecomprises the total of Tier 1 and Tier 2 capital (subordinated debentures)after deductions for ownership stakes exceeding 5 per cent in companies con-ducting insurance or finance operations requiring permits.

Cash flow before investments In accordance with the Swedish Financial Accounting Standards Council’srecommendation no. 7.

Floor area Number of square meters of lettable floor space.

Market value/book value of real estate Including buildings and land, excluding work in progress.

Net debt Interest-bearing liabilities less financial interest-bearing assets as of 31 December.

Net debt/equity ratio Net debt in relation to shareholders’ equity.

Net earnings Net earnings are defined as earnings after full tax.

Tier 1 capital adequacy ratio Tier 1 capital in relation to the risk-weighted amount.

Tier 1 capital comprises shareholders’ equity, including equity share of untax-ed reserves, after deductions for goodwill. The risk-weighted amount is defi-ned as total assets plus off-balance sheet items valued according to credit andmarket risk in accordance with applicable capital adequacy regulations.

Interest margin 12-month rolling net interest income in relation to average total assets.

Dividend Proposed dividend for 1999, dividend paid for 1995-1998

Area-based vacancy Total area of un-let premises as a percentage of total lettable floor space.

132

H I S T O R I C A L R E V I E W

A historical review of the progress made by Sweden’sGovernment-owned companies follows. The historicalinformation is presented in summary in the form ofsignificant and interesting events, minor as well asmajor. The intention is not to present a precise histori-cal account, but rather to paint a vivid picture oftoday’s active ownership within Sweden’s CentralGovernment Offices.

1968 Government initiates collaboration in the nuc-lear energy sphere and establishes 50 per centGovernment-owned ASEA-ATOM together withASEA.

1969 Ministry of Industry established and a majorityof Government-owned companies placed under controlof the new Ministry.

1970 Statsföretag established to coordinate the majorlimited companies in sectors such as mining, steel, fore-stry and petrochemicals. The Swedish NationalPharmacy Corporation (Apoteksbolaget) established.

1971 The Swedish Central Securities Depository(Värdepapperscentralen VPC) established as a centralservice provider coincident with the introduction oflegislation relating to simplified share processing.Apoteksbolaget is assigned exclusive pharmaceuticalsretailing rights in Sweden.

1972 KabiVitrum established.

1974 PK-Banken established as a result of the mergerof Postbanken and Sveriges Kreditbank.

1977 Svenska Varv established in connection with theGovernment’s take-over of Salén-Invest’s shares inGötaverken. The group also includes Arendal,Cityvarvet, Finnboda Varf, Karlskronavarvet,Uddevallavarvet and Öresundsvarvet. Extensiverestructuring initiated.

1978 SSAB, Scandinavia’s leading steel manufacturer,is incorporated as a result of the reconstruction ofSweden’s three biggest carbon steel mills. TheGovernment and Statsföretag own 75 per cent andGränges 25 per cent of SSAB.

1979 Kockums becomes part of Svenska Varv.

1980 SSAB and Statsföretag jointly represent 20 percent of the nation’s industrial investments.Tobaksbolaget comprises the basis for establishingProcordia as a wholly owned subsidiary group ofStatsföretag focusing on consumer goods.

1981 The report “Government-owned Companies” ispublished and presented to parliament for the firsttime. The Government transfers its 50 per cent hol-ding in ASEA Atom to ASEA. Industrigruppen JASestablished with the Government as an owner throughFörenade Fabriksverken (FFV).

1982 Sweden Post markets the telefax service, knownthen as “remote copying”. Svenska Varv reconstructed.The closure of Sweden’s major shipyards continues.

1983 The Swedish population order a total of 607,900telephones from Televerket, the telecommunicationsboard.

1984 Nokia acquires 70 per cent of TV manufacturerLuxor.

1985 Televerket’s monopoly on telephone sets ceases.Statsföretag changes corporate name to Procordia.Procordia restructured via company acquisitions anddivestments.

1986 100 per cent Government-owned SverigesPetroleum (SP) and Oljekonsumenternas förbund (OK)merge to form OK Petroleum with FinnishGovernment-owned company Neste as an owner.Initial part-privatization of SSAB effected through theacquisition of Gränges’ holding and one-third of theshares in SSAB sold to a limited number of institu-tions.

1987 Procordia floated on the stock market coinci-dent with a new issue. The Civil Aviation Authority(Luftfartsverket) establishes a new investment pro-gram that includes a new domestic terminal and athird runway at Arlanda. The Swedish NationalMaritime Administration (Sjöfartsverket) becomes aGovernment agency and is able to use its depreciationfunds to finance investments. The Government takesover Grängesbergs Gruvor from SSAB.

Historical review

133

H I S T O R I C A L R E V I E W

1988 Swedish Rail (SJ) is broken up; the National RailAdministration assumes responsibility for the railnetwork while SJ takes over rail traffic.

1989 100th anniversary of the national telephonenetwork. Grängesbergs Gruvor ceases operations.LKAB brings the new main level at Malmberget intooperation. Procordia, Pharmacia and Volvo’s new foodscompany Provendor merges to form the newProcordia group, with Volvo and the Government asthe biggest owners with 42.5 per cent of the voteseach. SSAB’s shares quoted on the Stockholm StockExchange’s A List.

1990 PK-Banken acquires Nordbanken. Förvaltnings-aktiebolaget Fortia established. SJ sells major real estateholding for SEK 1,800 m, majority owned ASG floatedon the stock market and high-speed train X2000 intro-duced between Stockholm and Gothenburg. The CivilAviation Authority group established with a clear divi-sion between business operations and the authorityfunction.

1991 Parliament resolves to wholly or partly privatize35 companies and wind up FörvaltningsaktiebolagetFortia. Sweden Post exposed to competition whenCityMail starts operations. Government agency FFVincorporated as a limited company.

1992 Domänverket becomes Domän AB. Vattenfallbecomes Vattenfall AB, with the national grid andforeign links separated in a new Government agency:Svenska Kraftnät. Government ownership holding inSSAB sold off in a public offering in the combinedform of purchasing options and a Government bond. Anew mortgage lending system is introduced; SBABbecomes exposed to competition. SAS acquires 50 percent of Linjeflyg and establishes a fully integrateddomestic airline. Atle and Bure established with partsof former wage earner fund assets; companies thathave paid in profit-sharing tax become part owners.Trygg-Hansa acquires Gota, which goes into liquida-tion. The Government acquires Gota in December.Securum is established to handle problem credits thathave arisen in Nordbanken as a result of the financialcrisis.

1993 The Government’s real estate management is revi-sed when construction authority Byggnadsstyrelsen iswound up and authorities and agencies are able to actfreely on the real estate market. Vasakronan takes overthe Government’s commercial real estate worth SEK17.7 bn. Procordia grows by acquiring players includingErbamont of Italy. Volvo and the Government agree topursue the break-up of Procordia into two parts.Through a share-swap with Volvo, the Governmentbecomes the main owner of one of the parts, Pharmacia

AB, focusing on pharmaceuticals, while Volvo becomesthe main owner of AB Procordia, active in the foods,tobacco and other industries. Postverket becomesPosten AB (Sweden Post); Sweden’s Post’s monopoly onmail distribution ceases. The Government sells off 75per cent of the Government’s holding in defense groupCelsius and the share is quoted on the Stockholm StockExchange’s A List. Assi AB and Domän AB are mergedto form AssiDomän AB, which places a bid for Ncb.Fortia is liquidated. Securum injects SEK 10 bn to saveNordbanken.

1994 At year-end 1993, A-Banan projekt AB isestablished to construct the Arlandabanan rail-linkbetween Stockholm city center and Arlanda Airport— Sweden’s first infrastructural project to be jointlyfinanced by the Government and the private sector.Sweden Post is incorporated as a limited company. Theremaining holdings in SSAB, OKP and parts ofAssiDomän AB and Pharmacia are sold off during theyear.

1995 New alcohol legislation gains force, abolishingV&S Vin & Sprit’s monopoly. Pharmacia and US phar-maceuticals company UpJohn merge.

1996 AmuGruppen’s situation becomes criticalduring the autumn and the Government injects SEK600 m to save the company from bankruptcy. The firstyear of open competition on the electricity market.The winding up of Securum’s assets — as a result ofCollateral realization — largely complete.

1997 SBL Vaccin sold to Active in Malmö. SvenskaPenninglotteriet and Tipstjänst AB merge and changename to AB Svenska Spel. A ruling by the Europeancourt implies that Systembolaget’s liquor retailingmonopoly stands. Merita and Nordbanken announcetheir intended merger to form MeritaNordbanken.

1998 The Labor, Communication, Industry and Tradeministries merge to form the Ministry of Industry,Employment and Communications. Responsibility forsector policy and ownership issues differentiated moreclearly.

1999 Remaining shareholding in Pharmacia & UpJohndivested. The merger between Telia and Telenor ofNorway is approved during the spring although theparties agree at the end of December to terminate thecollaboration with Telia and Telenor continuing opera-tions as independent corporations. Sveaskog ABestablished via the transfer of forest assets fromAssiDomän. The Government sells its shares in SAQKontroll and VPC.

134

D I S T R I B U T I O N O F R E S P O N S I B I L I T I E S W I T H I N S W E D E N ’ S G O V E R N M E N T O F F I C E S F O RG O V E R N M E N T- O W N E D C O M P A N I E S

Distribution of responsibilities within Sweden’sGovernment offices for Government-owned companies

The Central Government Offices switchboard: + 46 (0)8 405 1000

Björn Rosengren Minister of Industry, Employment and CommunicationsTel. 08-405 10 00

Lars Rekke Under-secretary of State, Ministry of Industry, Employment and Communications Tel. 08-405 31 29

Curt Malmborg Under-secretary of State, Ministry of FinanceTel. 08-405 16 47

Ministry of Industry, Employment and Communications Corporate Unit (e-mail address: [email protected])

Name: Sector responsibility: Company responsibility:

Dag Detter Assistant Under-secretary, Unit ManagerTel.08-405 20 46

Viktoria Aastrup Energy Swedish National Grid, Stattum Holding,Swedish Testing and Research Institute AB (SP)

Christer Berggren Mining Grängesbergs Gruvor AB, AB Göta kanalbolag,Tel. 08-405 22 70 IRECO Holding AB, LKAB, Zenit Shipping AB

Lars Johan Cederlund Forestry & Paper AssiDomän AB, Sveaskog AB, Tel. 08-405 22 00 The Swedish Motor Vehicle Inspection

Company AB, Swedish Ship Mortgage Bank, SEK (Swedish Export Credit Corporation)

Michael Fredlund Energy Vattenfall AB, SOS Alarm Sverige AB,Tel. 08-405 21 17 Svenska Skogsplantor AB

Eva Halvarsson Transportation SAS Group AB, Swedish State Railways, SJTel. 08-405 36 18

Jonas Iversen Logistics Sweden Post AB, Lernia AB, Samhall AB Tel. 08-405 22 44

Stina Johannesson Unit assistantTel. 08-405 29 63

Åse Lindskog Financial analysis, ownership control issuesTel. 08-405 21 76

Ulrika Malmström P.A. Tel. 08-405 22 79

Richard Reinius Telecom Telia ABTel. 08-405 23 71

Individuals within the Ministry of Industry, Employment and Communications with company responsibility(e-mail address: [email protected])

Name Company responsibility:

Ann-Charlotte Bernhard Swedish Travel and Tourism Council AB Tel. 08-405 21 50

Bertil Carlstedt Norrland Center ABTel. 08-405 22 19

Kristina Weichbrodt A-Banan projekt AB, Statens Väg- och Baninvest AB, Swedish-Danish Bridge Connection AB

Kristina Norstad ALMI Företagspartner ABTel. 08-405 43 03

Ulrika Rosenberg The Swedish Civil Aviation Authority, Swedish Maritime AdministrationTel. 08-405 37 38

135

Ministry of Finance Corporate and Real Estate Unit(e-mail address: [email protected])

Name: Company responsibility:

Christina Ragsten Pettersson Assistant Under-secretary, Unit ManagerTel. 08-405 12 03

Per Balazsi Civitas Holding AB, SBAB, Nordic Baltic Holding AB , Venantius ABTel. 08-405 14 86

Marianne Förander AB Svenska Spel, Akademiska Hus AB, V&S Vin & Sprit AB,

Tel. 08-405 16 06 Svenska Lagerhus AB

Monica Lundberg Kasernen Fastighets AB, A/O Dom Shvetsii, Specialfastigheter Sverige ABTel. 08-405 16 36

Helena Malmborg Assistant Secretary, Unit AssistantTel. 08-405 14 07

Individuals within the Ministry of Finance with company responsibility(e-mail address: [email protected])


Charlotte Nilenheim SIS Eco-Labelling ABTel. 08-405 35 24

Anders Lönnberg AB BostadsgarantiTel. 08-405 35 06

Finansmarknadsavdelningen OM Group AB

Ministry of Health and Social Affairs(e-mail address: [email protected])


Birgitta Bratthall Administrator, pharmaceuticals issues and Apoteket ABTel. 08-405 33 07

Gert Knutsson Administrator, alcohol policy issues, Swedish Alcohol Retailing Monopoly ABTel. 08-405 33 27 and the National Alcohol Board

Leif Lundquist Internal and external coordination of company issues etc.Tel. 08-405 34 32

Ingvar Löfstrand Internal and external coordination of company issues etc.Tel. 08-405 33 34

Ministry of Culture(e-mail address: [email protected])


Brita Lundh The Royal Dramatic Theatre of Sweden AB, The Royal Swedish Opera AB,Tel. 08-405 19 31 Voksenåsen A/S

Jerker Stattin Teracom ABTel. 08-405 19 99

Ministry of the Environment (e-mail address: [email protected])


Charlotta Andersson Svensk Avfallskonvertering ABTel. 08-405 19 76

Kerstin Grönman The Swedish Environmental Management Council ABTel. 08-405 37 74

Staffan Johnson Swedesurvey ABTel. 08-405 39 08


136

Ministry of Education and Science(e-mail address: [email protected])


Gunnar Ahlén Imego ABTel. 08-405 13 23

Ministry for Foreign Affairs(e-mail address: [email protected])


Stefan Isaksson Swedfund International ABTel. 08-405 58 04

Bengt Johansson SEK (Swedish Export Credit Corporation)Tel. 08-405 34 58


137

Government-owned companies—individuals withcompany responsibility

Company: Contact:

A-Banan projekt AB ................................................................................Kristina WeichbrodtALMI Företagspartner AB ........................................................................Kristina NorstaThe Swedish National Pharmacy Corporation AB ..................................Birgitta BratthallAssiDomän AB ........................................................................................Lars Johan CederlundAB Bostadsgaranti ..................................................................................Anders LönnbergCivitas Holding AB - Agilia Holding AB ....................................................Per BalazsiA/O Dom Shvetsii ....................................................................................Monica LundbergStattum Holding ......................................................................................Viktoria AastrupGrängesbergs Gruvor AB ........................................................................Christer BerggrenAB Göta kanalbolag ................................................................................Christer BerggrenImego AB ................................................................................................Gunnar AhlénIRECO Institute of Research and Competence Holding AB ......................Christer BerggrenKasernen Fastighets AB ..........................................................................Monica LundbergThe Royal Dramantic Theatre of Sweden AB ............................................Brita LundhThe Royal Swedish Opera AB ..................................................................Brita LundhAB Kurortsverksamhet ............................................................................The National Social Insurance Board +46-8-786 90 00Lernia AB ................................................................................................Jonas IversenThe Swedish Civil Aviation Authority ........................................................Ulrika RosenbergLuossavaara Kiirunavaara, LKAB ............................................................Christer BerggrenThe Swedish Environmental Management Council....................................Kerstin GrönmanNordic Baltic Holding AB ........................................................................Per BalazsiNorrland Center AB..................................................................................Bertil CarlstedtSweden Post AB ......................................................................................Jonas IversenOM Group AB ..........................................................................................Financial Markets DivisionSamhall AB..............................................................................................Jonas IversenSAS Group AB ........................................................................................Eva HalvarssonSIS Eco-Labelling AB................................................................................Charlotte NilenheimSwedish Maritime Administration..............................................................Ulrika RosenbergSKD företagen AB ....................................................................................Ministry of FinanceSOS Alarm Sverige AB ............................................................................Michael FredlundSpecialfastigheter Sverige AB ..................................................................Monica LundbergSBAB (Swedish National Housing Finance Corp.) ....................................Per BalazsiSwedish State Railway..............................................................................Eva HalvarssonStatens Premiefond AB ............................................................................Ministry of FinanceStatens Väg- och Baninvest AB ................................................................Kristina WeichbrodtAkademiska Hus AB ................................................................................Marianne FöranderSveaskog AB............................................................................................Lars Johan CederlundSakab ......................................................................................................Charlotta AnderssonThe Swedish Motor Vehicle Inspection Company ....................................Lars Johan CederlundSEK (Swedish Export Credit Corp.) ..........................................................Bengt Johansson, Lars Johan CederlundSwedish National Grid ..............................................................................Viktoria AastrupSvenska Lagerhusaktiebolaget..................................................................Marianne FöranderSwedish Space Corporation ....................................................................Lars Johan CederlundSwedish Ship Mortgage Bank ..................................................................Lars Johan CederlundSvenska Skogsplantor AB ........................................................................Michael FredlundAB Svenska Spel......................................................................................Marianne FöranderSwedish-Danish Bridge Connection, Svedab ............................................Kristina WeichbrodtSveriges Geologiska AB, SGAB ................................................................Christer BerggrenSP (Swedish Testing and Research Institute AB) ......................................Viktoria AastrupSwedish Travel & Tourism Council ..........................................................Ann-Charlotte BernhardSwedesurvey AB ......................................................................................Staffan JohnsonSwedfund International AB ......................................................................Stefan IsakssonSwedish National Road Consulting AB (SweRoad)....................................Kristina WeichbrodtSwedish Alcohol Retailing Monopoly AB ..................................................Gert KnutssonTelia AB ..................................................................................................Richard ReiniusTeracom AB ............................................................................................Jerker StattinV&S Vin & Sprit AB ..................................................................................Marianne FöranderVasakronan AB ........................................................................................Per BalazsiVasallen AB ............................................................................................Per BalazsiVattenfall AB ............................................................................................Michael FredlundVenantius AB ..........................................................................................Per BalazsiVoksenåsen A/S ......................................................................................Brita LundhZenit Shipping AB ..................................................................................Christer Berggren

G O V E R N M E N T- O W N E D C O M P A N I E S — I N D I V I D U A L S W I T H C O M P A N Y R E S P O N S I B I L I T Y

138

K E Y E X E C U T I V E S A N D B O A R D M E M B E R S 1 9 9 9

Abjörner, LenaRegional Tax CommissionerTeracom AB, permanent

Adelsohn, UlfCounty governor, Stockholm county The Swedish Civil Aviation Authority, presidentSwedish Travel & Tourism Council, permanent

Ahlberg, AnnCEO, Vattenfall Treasury ABSvedab, alternate

Ahlström, GöranDirector, Sydkraft ABSvedab, permanent

Ahlqvist, BirgittaMember of ParliamentSwedish Space Corporation, permanent

Ahlqvist, JohnnyMember of parliamentSwedish State Railway, permanent

Alkärr, KjellCEO, Motorbranschens RiksförbundThe Swedish Motor Vehicle Inspection Company,permanent

Allebeck, PeterProfessorAB Kurortsverksamhet, permanent

Alm, EricThe Royal Swedish Opera AB, Trade union repre-sentative

Almgren, RichardChief environmental officerThe Swedish Environmental Management Council,permanent

Alvemur, ChristerDeputy CEO and Head of region Stockholm,Vasakronan ABAgilia Holding AB, permanentA/O Dom Shvetsii, permanentKasernen Fastighets AB, permanent

Ameln, CarlCEO, LKABLKAB, permanent

Andersson, AxelEx. Member of ParliamentSwedesurvey AB, permanent

Andersson, BennyComposerThe Royal Swedish Opera AB, permanent

Andersson, DanState secretary, Ministry of industry, employmentand communicationNordic Baltic Holding AB, permanent

Andersson, DanielSwedish Maritime Administration, Employee´srepresentative

Andersson, EdwardProfessorNordic Baltic Holding AB/MeritaNordbanken, permanent

Andersson, ElvingRegional desk officerAB Göta kanalbolag, permanent

Andersson, HansAssistant under-secretary, Ministry of health andsocial affairsAB Kurortsverksamhet, alternate

Andersson, JanDirectorAB Kurortsverksamhet, vice president

Andersson, JörgenEx. MinisterVattenfall AB, President until April 2000

Andersson, LarsThe Swedish civil aviation authority , Employee´srepresentative

Andersson, PeterManaging directorNorrland Center AB, permanent

Annell, ElisabetCEO and senior partner, SMG Sweden ABThe Swedish Civil Aviation Authority, permanent

von Arbin, ChristinaManaging director, RiksantikvarieämbetetSvenska Lagerhusaktiebolaget, permanent

Arefalk, OlleCEO, Swedfund International AB

Aronsson, PerCEO, Grängesbergs Gruvor AB

Asplund, ErikThe Swedish Environmental Management Council,adjont

Avdeev, Kirill VCity of St PetersburgA/O Dom Shvetsii, permanent

Axelsson, CharlotteCEO, Svenska Bostäder ABAkademiska Hus AB, permanent

Balazsi, PerDesk officer, Ministry of financeSpecialfastigheter Sverige AB, permanent

Balsvik, GunnarCFO, Venantius AB

Bankvall, ClaesCEO, Swedish Testing and Research InstituteSwedish Testing and Research Institute AB, per-manent

Begler, Ann-MarieDirecor-GeneralSwedish Alcohol Retailing Monopoly, vice presi-dent

Behazadi, MohammedPharmacistThe Swedish National Pharmacy Corporation AB,permanent

Bengtson, StureCEO, Norrland Center AB

Bengtsson, Sven-UnoV&S Vin & Sprit AB,Employee´s representative, alternate

Bennet, CarlDirectorTelia AB, permanent

Berg, Bengt-ÅkeDirectorAB Svenska Spel, president

Berg, IngolfDesk officer, Ministry of industry, employment and communica-tionSIS Eco-Labelling, permanent

Berge, MathisEx. Hotel directorVoksenåsen A/S, permanent

Berggren, BoTekn. dr. hcSAS Sverige AB, presidentSAS Group, president

Berggren, ChristerDesk officer, Ministry of industry, employment andcommunicationGrängesbergs Gruvor AB, permanentAB Göta kanalbolag, Vice presidentSwedish National Grid, permanentSwedish Ship Mortgage Bank, permanentZenit Shipping AB, permanent

Bergman, JohanSkanska ABA/O Dom Shvetsii, permanent

Bergquist, JanMember of ParliamentThe Swedish National Pharmacy Corporation AB,president

Bergqvist, Sven-RunoCEO, SOS Alarm Sverige AB

Bernhardsson, GöteCounty governorSweden Post AB, president

Bernhardsson, JohnnyVattenfall AB, Employee´s representative, SIF

Bjerkne, ClaesCEO, Göteborg & CoSwedish Travel & Tourism Council, permanent

Bjälkefors, UlfSwedesurvey AB, Employee´s representative

Björk, GunnarCounty governor, Dalarna county Swedish Space Corporation, permanent

Björkman, JohanOM Group AB, permanent

Björnsson, BjörnPol.magAssiDomän AB, permanent

Blix, KerstinChief environmental officerSIS Eco-Labelling, permanent

Blomberg, JanDirectorAB Svenska Spel, permanent

Blomberg, VincentSOS Alarm Sverige AB, permanent

Blomgren, UlfCEO, Trafiksäkerhetsföreningen/LarmtjänstThe Swedish Motor Vehicle Inspection Company,permanent

Blomkvist, John-OlofEngineerTeracom AB, Employee´s representative

Blomquist, Bo-GunnarLernia AB, Employee´s representative, ST, alternate

Bogren, BengtSwedish Testing and Research Institute AB,Employee´s representative, alternate

Bohlin, GörelEx. County governor, Västerbottens county Voksenåsen A/S, president

139


Bonde, IngridDirecor-General, RiksgäldskontoretSwedish State Railway, permanentSwedish Space Corporation, permanent

Bondestam, AnithaPresident of the administrative court of appealSvedab, permanentTeracom AB, permanent

Bonnier, EvaThe Royal Dramatic Theatre of Swedenpermanent

Borgcrantz, AndersDeputy CEO, SwedbankSwedish State Railway, permanent

Brandborn, JanDirecor-General, VägverketSvedab, permanent

Brandinger, RuneDirectorCivitas Holding AB, President until April 2000Nordic Baltic Holding AB, permanentSwedish Environmental Management Council, vice President until May 2000Vasakronan AB, President until April 2000

Brink, StigEx. Justice of the supreme courtAB Bostadsgaranti, president

Brox, BillCEO, Imego AB

Bryngelson, HåkanCEO, Vasakronan AB and Civitas Holding ABAgilia Holding AB, permanentCivitas Holding AB, permanentVasakronan AB, permanentVasallen AB, president

Brändström, DanCEO,The bank of Sweden TercentenaryFoundationAkademiska Hus AB, permanent

Brögger, LiseSOS Alarm Sverige AB, permanent

Buttedahl, JohanVoksenåsen A/S, permanent

Bylund, BoDirecor-General, BanverketSvedab, permanent

Bårström, SvenDirectorA-Banan projekt AB, permanent

Bäckström, HåkanLKAB, Employee´s representative

Caesar, MadeleineCEO, KK-stiftelsenIRECO Holding AB, permanent

Carlberg, LarsVattenfall AB, Employee´s representative, CF

Carlgren, AndreasMember of parliamentV&S Vin & Sprit AB, permanent

Carlsson, BarbroSecretary General, HandikappsorganisationernasInternationella BiståndsföreningSamhall AB, permanent

Carlsson, HansDirectorAssiDomän AB, permanent

Carlsson, IngvarEx. Prime ministerTelia AB, permanent

Carlsson, LarsVattenfall AB, Employee´s representative, SIF,alternate

Carlsson, NilsCEO, Swedish Camping site Owner AssociationSwedish Travel & Tourism Council, permanent

Carlsson, StefanCEO, The Swedish National Pharmacy CorporationAB

Carmén, LarsSwedish Travel & Tourism Council, president

Carnhagen, GöranDirecor-General, Statens BostadskreditnämndZenit Shipping AB, permanent

Carrick, PeterCEO, Lernia ABLernia AB, permanent

Cedergren, JanDirectors-General, Ministry for foreign affairsSwedfund International AB, president

Cederlund, Lars JohanDeputy director, Ministry of industry, employmentand communicationSveaskog AB, permanentThe Swedish Motor Vehicle Inspection Company,permanentAB Svensk Exportkredit, permanentSwedish Space Corporation, permanent

Cederström, ConnyV&S Vin & Sprit AB, Employee´s representative, alternate

Charpentier, RobertBank director Swedbank ABAB Svensk Exportkredit, permanent

Christiansson, AnnikaBusiness area manager, Telia ABSwedesurvey, permanent

Cling, ThordSpecialfastigheter Sverige AB, Employee’s repre-sentative, SIF

Curman, MariaCEO, Sveriges TelevisionSamhall AB, permanent

Dahl, RobinEconomic, Uppsala County CouncilSwedish Alcohol Retailing Monopoly, alternate

Dahlbäck, ClaesVice Chairman of the board, Investor ABV&S Vin & Sprit AB, president

Dahlberg, IngridCEO, The Royal Dramatic Theatre ABThe Royal Dramatic Theatre of Sweden AB, per-manent

Dalborg, HansCEO and president, Nordbanken Holding ABThe Royal Swedish Opera AB, presidentNordbanken Holding AB, permanentAB Svenska Spel, permanent

Damberg, JanThe Royal Dramatic Theatre of Sweden AB,Employee´s representative, alternate

Danell, GeorgDeputy CEO, KREAB ABVasakronan AB, permanent

Danielson, JanDirectorA-Banan projekt AB, permanent

Danielsson, Sven-OlofSwedish Alcohol Retailing Monopoly, Employee´srepresentative

Detter, DagAssistant under-secretary, Ministry of industry,employment and communications CEO, Stattum HoldingSweden Post AB, permanent

Dexe, NilsDirector-General for legal and administrationaffairs, Ministry of finance, Statens Premiefond AB, permanent

Dillén, MatsAssistant under-secretary, Ministry of financeVenantius AB, permanent

Dockered, BoVice President, SwedbankLernia AB, presidentSveaskog AB, president

Dittmer, UlfThe Swedish civil aviation authority,Employee´s representative, alternate

Domeij, ÅsaSveaskog AB, permanent

Drugge, GunMuncipal commissioner for the opposition,Hedemora kommunAB Bostadsgaranti, alternate

Duveblad, GunnelDirectorAssiDomän AB, permanent

Eberstein, SusanneMember of ParliamentThe Swedish National Pharmacy Corporation AB,permanent

Eidem, Bjarne Mørk Controller and Auditor GeneralVoksenåsen A/S, permanent

Eidem, BjørnHøyesterettsadvokatSAS Group, 2nd vice president

Ekecrantz, LarsAssistant under-secretary, Ministry of the environ-mentSakab, alternate

Eklund, HelgeDirectorVattenfall AB, permanent

Ekman, JanDirector, HandelsbankenSakab, president

Ekström, SolweigChief of administration, Uppsala County CouncilSvenska Skogsplantor AB, permanent

Ekwall, RonnyVattenfall AB, Employee´s representative, SEKO

Eldrup, Anderscand. scient.polSAS Group, permanent

140


Ellingsen, Karl-EinarSecretary-generalVoksenåsen A/S, permanent

Eliasson, IngemarCounty governor, Värmland CountySBAB, president

Elväng, KatjaCEO, STT Airways ABALMI Företagspartner AB, permanentThe Swedish Motor Vehicle Inspection Company,permanent

Engdahl, HoraceAuthorThe Royal Swedish Opera AB, permanent

Enger, OleCEO, Elkem ASLKAB, permanent

Engman, GerdCounty governor, Örebro countyCivitas Holding AB, permanentStatens Väg- och Baninvest AB, permanentVasakronan AB, permanent

Engman, GunnarDirectorGrängesbergs Gruvor AB, president

Engström, Anna-LisaCEO, Dag Engström Rederi ABSwedish Ship Mortgage Bank, permanent

Engström, GunvorAssistant under-secretary, Ministry of industry,employment and communicationALMI Företagspartner AB, permanent

Engström, JanHead of Loan Operation Venantius AB

Engström Laurent, AnnaMedical doctor, Assistant professor UmeåUniversitetThe Swedish National Pharmacy Corporation AB,permanent

Ennerfelt, GöranCEO and president, Axel Johnson ABSamhall AB, permanent

Enochsson, PiaDirecor-General, National Rural DevelopmentAgencyVoksenåsen A/S, permanent

Erhagen, ConnyChief Maintenance OfficerSakab, Employee´s representative, alternate

Eriksson, KåreCEO, AB Bostadsgaranti (f.r.o.m. 990801)

Eriksson, Lars-OlovSvenska Skogsplantor AB, Employee´s representa-tive, alternate

Eriksson, LennartDirector, NCC ABAB Bostadsgaranti, permanent

Eriksson, OlleLernia AB, Employee´s representative, SEKOalternate

Eriksson, Per-OlofDirectorSwedish National Grid, presidentStattum Holding, permanent

Eriksson, TorbjörnAssiDomän, Employee´s representative, alternate

Ersson, ÖrjanSwedish State Railway, Employee´s representative

Falk, KristerThe Swedish Civil Aviation Authority, Employee´srepresentative

Falkman, Evaconsultant, Falkman Råd & Retorik ABSpecialfastigheter Sverige AB, permanent

Feldt, Kjell-OlofSakab, permanent

Finskas, BertelNordic Baltic Holding AB, Employee´s representative, permanent

Forsberg, BerthSamhall AB, Employee´s representative, alternate

Fossum, LilianDeputy CEO, Spendrups Bryggeri ABVattenfall AB, permanent

Francke, UlrikaDirectorA-Banan projekt AB, permanent

Franzén, ThomasPh.DOM Group AB, permanent

Frebran, Rose-MarieMember of parliament, KDAB Svenska Spel, permanent

Fredga, KerstinProfessor, Ex. Direcor-GeneralSwedish Space Corporation, permanent

Fredlund, MichaelDesk officer, Ministry of Industry, Employment andCommunicationSOS Alarm Sverige AB, permanentSvenska Skogsplantor AB, permanent

Frejhagen, BirgittaCEO, Info Komp ABThe Swedish Motor Vehicle Inspection Company,permanent

Freyschuss, AgnetaBank director, Svenska Handelsbanken ABSEK (Swedish Export Credit Corporation), perma-nent

Frideborger, BengtSamhall AB, Employee´s representative

Färm, GunnelDirecor-General, Council for Work Life ResearchSwedish Maritime Administration, president

Gardelin, OlleSamhall AB, Employee´s representative, alternate

Grabe, LennartCEO, Sweden Post AB

Granström, Per ErikMember of parliamentSBAB, permanent

Grell, UlfDirector, Social insurance office Jönköping countyAB Kurortsverksamhet, alternate

Gunnarsson, Carl-JohanCounsellorA/O Dom Shvetsii, permanent

Gunnarsson, GöranManaging direcor and president, Samhall AB

Gunnarsson, GöstaEx. County governorStatens Väg- och Baninvest AB, presidentTeracom AB, president

Gunnarsson, UlfManaging direcorThe Swedish Environmental Management Council,permanent

Gustafsson, Eva-BrittCEO, Venantius ABSpecialfastigheter Sverige AB, presidentStatens Väg- och Baninvest AB, permanent

Gustafsson, Karl-ErikProfessorTeracom AB, permanent

Gustafsson, MarianneCivitas Holding AB, Employee´s representativeVasakronan, Employee´s representative

Gustavsson, HenryPresident of districtThe Swedish Environmental Management Council,permanent

Gustafsson, YvonneState secretary, Ministry of defenceSwedish National Grid, permanent

Gustavsson ÅkeMember of parliamentTeracom AB, permanent

Gyllenhammar, Pehr GMed. dr. hc, tekn. dr. hcSwedish Ship Mortgage Bank, president

Göranzon, MarieThe Royal Dramatic Theatre of Sweden AB,Employee´s representative

Haag, GöranAssistant under-secretary, Ministry of FinanceVPC Värdepapperscentralen AB, permanent

Hagberg, MichaelMember of parliamentAB Bostadsgaranti, permanent

Hagelberg, EvaSwedish Alcohol Retailing Monopoly, Employee´s representative, alternate

Haglind, IngridThe Swedish Environmental Management Council,permanent

Hall, BengtCEO, The Royal Swedish Opera AB

Hallberg, GunillaALMI Företagspartner Halland AB, Employee´s representative

Halvarsson, EvaDesk officer, Ministry of industry, employment andcommunicationSwedish State Railway, permanent

Hansén, MårtenDirector, Besqab Projekt och fastigheter ABAB Bostadsgaranti, permanent

Hansson, HansSpecialfastigheter Sverige AB, Employee’s repre-sentative, SEKO

Hanson, IngemarDirecor-General, National Institute of EconomicResearchStatens Premiefond AB, president

141


Hansson, Lise-LottPolitical advisor, Ministry of Education andScienceLernia AB, permanent

Hedberg, Pernilla KCEO-assistant, SIS Eco-LabellingSIS Eco-Labelling, permanent

Hedenström, AndersCEO, Rederi AB SoyaSEK (Swedish Export Credit Corporation), vice president

Helgesson, Lars-ÅkeDirector, Marinus ABAssiDomän AB, permanent

Hellberg, BjörnALMI Företagspartner Skåne AB, Employee´srepresentative

Hentzel, MatsDirectorSvenska Lagerhusaktiebolaget, permanent

Hjalmarsson, BoWorkerSakab, Employee´s representative, alternate

Hjalmarsson, DanEkonomic. dr.Norrland Center AB, permanent

Hjalmarsson, LennartDeputy CEO, KF The Swedish Cooperative UnionLernia AB, permanent

Hjorth, LarsDeputy CEO, Kooperativa FörbundetVattenfall AB, permanent

Hoffrén, TapaniSwedish Maritime Administration, Employee´srepresentative, alternate

Holm, CarinaSweden Post AB, Employee´s representative, alter-nate

Holm, JohanNorrland Center AB, permanent

Holm, Lars-ErikDirecor-General, Statens StrålskyddsinstitutSakab, permanent

Holmgren, GunnarCEO, Sveriges försäkringsförbundStatens Väg- och Baninvest AB, permanentSwedish Ship Mortgage Bank, alternate

Holmgren, Lars-Göran1st Secretary, SEKOSwedish Ship Mortgage Bank, alternate

Holmqvist, Karl-GunnarCounty Council Commissioner, Norrbotten countySwedish State Railway, president

Howe, PeterEngineerTeracom AB, Employee´s representative

Håkansson, Per-OlofMember of ParliamentV&S Vin & Sprit AB, permanent

Hägglund, Jan-OveSveaskog AB, Employee´s representative, alternate

Höglund, KarinSwedish Alcohol Retailing Monopoly, Employee´srepresentative

Idemark, ThomasSvenska Skogsplantor AB, permanent

Igel, AndersCEO, Esselte ABDirectorTelia AB, permanent

Irstad, LarsOM Group AB, permanent

Israelsson, MatsDirectorCivitas Holding AB, permanent

Jacobsson, EgonCEO, V&S Vin & Sprit ABV&S Vin & Sprit AB, permanentVasakronan AB, President from April 2000

Jacobsen, HelmuthSAS Group, Employee´s representative

Jakobsson, RolfThe Swedish Motor Vehicle Inspection Company,Employee´s representative, alternate

Janérus, KajSea CaptainAB Göta kanalbolag, president

Jangblad, DanCEO, Swedish Space Corporation

Jansson, IngridMarketing Manager, Skandinaviska EnskildaBankenALMI Företagspartner AB, permanent

Jansson, MonicaAB Svenska Spel, Employee´s representative, alternate

Jansson, UrbanDirectorSAS Sverige AB, vice presidentSAS Group, permanent

Jeding, LarsDirectorSwedesurvey, permanent

Jemt, MariLegal Affair Officer, WMI Sellbergs ABSakab, alternate

Jensen, HansAkademiska Hus AB, Employee´s representative

Johannesson, DanielDirecor-General and President,Swedish State RailwaySwedish State Railway, permanent

Johansson, AnitaMember of parliamentV&S Vin & Sprit AB, permanent

Johansson, ArnePresident, Företagarnas RiksorganisationALMI Företagspartner AB, president

Johansson, Bengt A WEx.Direcor-General The Swedish Civil AviationAuthority Kasernen Fastighets AB, presidentSpecialfastigheter Sverige AB, permanent

Johansson, BillyAB Göta kanalbolag, Employee´s representative

Johansson, BoCEO, Statens Väg- och Baninvest AB

Johansson, GöranMunicipal Commissioner, GöteborgVattenfall AB, permanent

Johansson, JanLernia AB, Employee´s representative,Lärarförbundet

Johansson, Karl-ErikConsultantVenantius AB, permanent

Johansson, KristinaThe Swedish National Pharmacy Corporation AB,alternate

Johansson, LenaEconomistTeracom AB, Employee´s representative, alternate

Johansson, LenaSveaskog AB, permanent

Johansson, LennartPresident, UEFAAB Svenska Spel, permanent

Johansson, LennartSwedish Maritime Administration, Employee´srepresentative, alternate

Johansson, MagnusAkademiska Hus AB, Employee´s representative

Johansson, MargaretaEmployee’s representative RFV NynäshamnAB Kurortsverksamhet, Employee´s representative

Johansson, OlofPresident, The Swedish Motor Vehicle InspectionCompany from May 2000

Johansson, Per EgonCEO, The Swedish Motor Vehicle InspectionCompany, until April 2000

Johanson, Roland AAssiDomän AB, Employee´s representative

Johansson, Roland NAssiDomän AB, Employee´s representative

Johansson, SonnyThe Swedish Motor Vehicle Inspection Company,Employee´s representative

Johansson, UlrikaSwedish Testing and Research Institute AB,Employee´s representative, alternate

Johansson-Hedberg, BirgittaDirectorTelia AB, permanent

Johnsson, BoCEO, Swedish Travel & Tourism Council

Johnsson, Hans-YngveShipowner, Ektank ABSwedish Ship Mortgage Bank, alternate

Johnson, StaffanDesk officer, Ministry of the environmentSwedesurvey, permanent

Jonson, Lars ChristerDirector, AB VolvoLernia AB, permanent

Jonsson, JanDirecor-GeneralThe Swedish Civil Aviation Authority, permanent

142


Jonsson, Jan-PeterCEO, Vasallen ABVasallen AB, permanent

Jordung, ÅsaBachelor of ScienceSwedish Space Corporation, Employee´s represen-tative, alternate

Josefsson, LarsCEO, Vattenfall AB from August 2000

Josefsson, SörenSamhall AB, Employee´s representative

Jäderholm, BengtCFO, VägverketStatens Väg- och Baninvest AB, permanent

Jönsson, BennySOS Alarm Sverige AB, vice president

Jönsson, LennartAssiDomän, Employee´s representative, alternate

Jörud, LeifSweRoad AB, Employee´s representative

Kantola, BirgittaVice president International Finance CorporationAkademiska Hus AB, permanent

Kark, Jan-ÅkeCEO and president, Telia AB

Karlberg, TofteSveaskog AB, Employee´s representative

Karlsson, BoelSamhall AB, permanentSwedfund International AB, permanent

Karlsson, GöteSwedish Maritime Administration, Employee´srepresentative

Karlsson, MonicaSweden Post AB, Employee´s representative,SACO-posten, alternate

Karlstrand, HansAirport ManagerA-Banan projekt AB, permanent

Kastman Heuman, ÅsaDirector-General for legal and administrationaffairs, Ministry of industry, employment and com-municationSwedish Ship Mortgage Bank, permanent

Kihlberg, ÅkeSweden Post AB, Employee´s representative,SEKO-Posten

Kindert, LeifSAS Group, Employee´s representative

Kivimäki, MikkoBergsrådNordic Baltic Holding AB, permanent

Kjellander, ClaesCEO, Stenvalvet ABSpecialfastigheter Sverige AB, permanentVenantius AB, permanent

Kjällbring, RolfCivitas Holding AB, Employee´s representativeVasakronan AB, Employee´s representative

Kjellström, HansSwedish Alcohol Retailing Monopoly, Employee´srepresentative, alternate

Kjörnsberg, SolveigMunicipal Commissioner, Borås Swedish Testing and Research Institute, permanent

Klangby, Lars-ErikCFOSBAB, permanent

Kleppe, PerEx. Minister in NorwayVoksenåsen A/S, vice president

Knutsson, PernillaDeputy director, Ministry of the environmentSIS Eco-Labelling, permanent

Kohkoinen, ThomasLKAB, Employee´s representative, alternate

Koppeli, RistoCEO, A/O Dom Shvetsii

Kotajoki, JuhaDirectorSBAB, permanent

Kristiansen, ThormodDirectorSwedesurvey, permanent

Kristensson, RogerSwedish State Railway, Employee´s representative

Kronstam, KarinCEO, Samhall Freja ABALMI Företagspartner AB, permanentLernia AB, permanent

Kruuse, ThomasByggentreprenörerna, Bachelor of LawAB Bostadsgaranti, alternate

Kull, Jan-IngeVasallen AB, Employee´s representative

Kvart, SussiAttorneySwedish National Grid, permanent

Kylberg, Lars VDirectorCivitas Holding AB, vice presidentVasakronan AB, vice president

Käck, RonnyTelia AB, Employee´s representative, SEKO tele

Källsson, JanDirectorSwedish Ship Mortgage Bank, permanent

Kärre, MalinSweRoad AB, permanent

Lagerblad, PeterCEO, V&S Vin & Sprit ABAkademiska Hus AB, V&S Vin & Sprit AB, perma-nent

Larsson, BengtLernia AB, Employee´s representative, SACO

Larsson, GerhardCounty governorVattenfall AB, President from April 2000

Larsson, GunnarSwedish Alcohol Retailing Monopoly, President

Larsson, HansLKAB, Employee´s representativeLarsson, Per EOM Group AB, permanent

Larsson, SvenDirectorAB Bostadsgaranti, permanent

Leijon, Anna-GretaCEO, Skansen Swedish Travel & Tourism Council, permanent

Lennersand, HåkanCEO, Skandia Fastighet ABSpecialfastigheter Sverige AB, permanent

Lennerwald, IngridSOS Alarm Sverige AB, permanent

Leppänniemi, Sven-OlofSamhall AB, Employee´s representative, alternate

Lewin, LeifDirectorZenit Shipping AB, president

Lewin, ThomasTeknologie doctorImego AB, permanent

Lidén, SverkerCEO, Svenska Skogsplantor AB

Liffner, ChristinaSveaskog AB, permanent

Lilja, MariaCEO and president Nyman & Schultz ABVasakronan AB, permanent

Lilletun, IngvarSAS Group, Employee´s representative

Lind Lars ÅkeSvenska Lagerhusaktiebolaget, Employee´s repre-sentative

Lindberg, EvaSvenska Skogsplantor AB, Employee´s representa-tive, alternate

Lindberg, LarsThe Royal Dramatic Theatre of Sweden AB,Employee´s representative, alternate

Lindberg, LeifDirector, AB TidkortALMI Företagspartner AB, permanent

Lindberg, StigVattenfall AB, Employee´s representative, Ledarna,alternate

Lindblom, SolveigDirector, Försäkringskassan Södermanland countyAB Kurortsverksamhet, permanent

Lindblom, StaffanBank director, Den Danske Bank AktieselskabSEK (Swedish Export Credit Corporation), alternate

Lindell, Lars-OlofSOS Alarm Sverige AB, vice president

Lindholm, EvertChief ExecutiveSwedish Alcohol Retailing Monopoly, alternate

Lindquist, RolfSweRoad AB, Employee´s representative

Lindstam, LeifJustice of the supreme courtSBAB, permanent

Lindstedt, JanChief controller, WMI Sellbergs ABSakab, permanent

Lindstedt, MonicaConsultantSwedish Alcohol Retailing Monopoly, permanent

143


Lindström, Anders Direcor-General, Swedish Maritime AdministrationSwedish Maritime Administration, permanentSwedish Ship Mortgage Bank, permanent

Lindström, BjörnCFO, Vasakronan ABAgilia Holding AB, permanentVasallen AB, permanent

Lindström, EvaBudget Director, Ministry of financeAB Svenska Spel, permanent

Lindvall, KGDeputy CEO, MeritaNordbanken AbpSEK (Swedish Export Credit Corporation), permanent

Linglöf, JanChief of legal affairs, Vasakronan ABAgilia Holding AB, presidentVasallen AB, permanent

Litzell, Per-OlofSamhall AB, Employee´s representative

Ljungh, ClaesState secretary, Ministry of financeCivitas Holding AB, permanentVasakronan AB, permanent

Lorentzon, ArneCEO, Kasernen Fastighets ABKasernen Fastighets AB, permanent

Lorentzon, OlaCEO, ICB Shipping ABSwedish Ship Mortgage Bank, alternate

Lübeck, LennartDirector, tekn. dr.Swedish Space Corporation, president

Lund, OlofDirectorLKAB, permanent

Lundberg, GunnarSkanska BOT Projects ABA/O Dom Shvetsii, president

Lundberg, MonicaDeputy director, Ministry of financeKasernen Fastighets AB, permanent

Lundén, Gun-MajTrade union representativeThe Royal Swedish Opera AB, alternate

Lundgren, BoMember of parliamentV&S Vin & Sprit AB, permanent

Lundholm, AndersSvenska Skogsplantor AB, Employee´s representa-tive

Lundin, JanV&S Vin & Sprit AB, Employee´s representative

Lundin, SvanteDirector, Swedish standards institutionSIS Eco-Labelling, permanent

Lundin, UlfAssistant under-secretary, Ministry of industry,employment and communicationA-Banan projekt AB, alternateStatens Väg- och Baninvest AB, permanent

Lundquist, UllaCEO, Swedish banker’s associationSvenska Lagerhusaktiebolaget, permanent

Lundqvist, SörenSwedesurvey AB, Employee´s representative

Lydahl, RolfSenior adviser, Credit SuisseVasakronan AB, permanent

Låftman, LennartThe Royal Dramatic Theatre of Sweden AB, per-manent

Lärkert, AndersCEO, Sakab and WMI Sellbergs ABSakab, permanent

Löfstrand, IngvarAdvisor, Ministry of health and social affairsSwedish Alcohol Retailing Monopoly, alternate

Löfström, Britt-MarieAB Göta kanalbolag, Employee´s representative

Lönnberg, AndersDeputy director, Ministry of financeAB Bostadsgaranti, permanent

Lööv, Per-OveVattenfall AB, Employee´s representative, alternate

Magnusson, BerntAssiDomän AB, presidentStattum Holding, permanentNordbanken Holding AB, permanent

Magnusson, JanDirecor-General, Svenska KraftnätSvenska Kraftnät, permanent

Malm, ChristerCEO, SBAB

Malm, StigThe Swedish Motor Vehicle Inspection Company,President until May 2000

Mannerstråle, GunnarSweRoad AB, permanent

Marking, BoDirectorVattenfall AB, permanentSBAB, permanent

Marklund, IngerManaging directorAB Kurortsverksamhet, permanent

Marklund, KariCounty governor, NorrbottenIRECO Holding AB, permanent

Markström, ElisebehtMember of parliamentSwedish Alcohol Retailing Monopoly, permanent

Mattsson, AnnaaConsultantThe Swedish Environmental Management Council,permanentSIS Eco-Labelling, permanent

Mellström, AlfSweden Post AB, Employee´s representative,SEKO, alternate

Melin, UlfChief ExceutiveSwedish Alcohol Retailing Monopoly, permanent

Milovancevic, MarinaSwedish Testing and Research Institute,Employee´s representative, SACO

Mitteregger, FritzEx. DirectorGrängesbergs Gruvor AB, permanent

Modin, AnitaDirectorAB Göta kanalbolag, permanent

Mohlin, Per-ErikDirector, Askus KWSwedish Space Corporation, permanent

Molander, HaraldCEO, Zenit Shipping ABZenit Shipping AB, permanent

Myhlback, LennartDirector-General, RäddningsverketSOS Alarm Sverige AB, permanent

Mårtensson, ArneCEO, HandelsbankenV&S Vin & Sprit AB, permanentOM Group AB, permanent

Mörtberg, Carl-IvarEngineerSwedish Space Corporation, Employee´s represen-tative

Netz, BoAssistant under-secretary, Ministry of financeVasallen AB, permanent

Netzler, GöranTeknologie licentiatImego AB, permanent

Nielsen, Niels ChristianChief development officer, Teknologiskt Institut inDenmarkIRECO Holding AB, permanent

Niemelä, JuhaBergsrådNordic Baltic Holding AB, permanent

Nilssen, RoalThe Sswedish Civil Aviation Authority, Employee´srepresentative, alternate

Nilsson, AinaChief designerImego AB, permanent

Nilsson, AndersEx. Member of parliament,AB Svenska Spel, permanent

Nilsson, ElisabethMining engineer, SSABSwedish Maritime Administration, permanent

Nilsson, Jan-EricCEO, AB Kurortsverksamhet

Nilsson, Jan SCEO, Knut och Alice Wallenbergs StiftelseAkademiska Hus AB, permanent

Nilsson, KarinSwedish Testing and Research Institute,Employee´s representative, ST

Nilsson, LennartPresident, Sveriges VerkstadsindustrierStattum Holding, permanent

Nilsson, LennartCEO, AP-Fonden; 1st, 2nd, 3rd National SwedishPension FundsStatliga Akademiska Hus AB, president

Nilsson, PiaCEO, The Swedish Mutual Fund AssociationSwedish National Grid, permanent

Nilsson, RolandCEO, Scandic ABSwedish Travel & Tourism Council, permanent

144


Nilsson, SamThe Royal Dramatic Theatre of Sweden AB, per-manent

Nordbeck, GunnarEx. Direcor-General, ÖCBSvenska Lagerhusaktiebolaget, president

Nordmark-Nilsson, Anna-Stina County council director, Norbotten county councilLernia AB, permanent

Norvik, HaraldBachelor of business administrationSAS Group, permanent

Nyberg, GunnarEx. Staff manager, FörsvarsstabenKasernen Fastighets AB, permanent

Nylander, GöranCEO, Svenska Lagerhusaktiebolaget

Nyman, SvenDirectorOM Group AB, permanent

Nyquist, Carl-ErikCEO and president, Vattenfall ABVattenfall AB, permanent

Nyström, BjörnSweden Post AB, Employee´s representative,SACO-Posten

Nyström, ElizabethMember of ParliamentSwedish Maritime Administration, permanent

Näsman, JanaxelManaging direcorNorrland Center AB, president

Ohlson, GöranCEO, The Swedish abstaning motorist’s associa-tionThe Swedish Motor Vehicle Inspection Company,permanent

Ollén, JoakimDirecor-General, LantmäteriverketSwedesurvey, president

Olofsson, SörenManaging direcorAB Kurortsverksamhet, presidentSwedish Alcohol Retailing Monopoly, permanent

Olovsson, UllaVice Deputy presidentSwedish Ship Mortgage Bank, permanent

Olson, Hans ChristerAssistant under-secretary, Ministry of industry,employment and communicationLKAB, permanentSwedish Testing and Research Institute, permanentVattenfall AB, alternate

Olsson, EvaProfessorImego AB, permanent

Olsson, KarinMember of ParliamentSwedish Maritime Administration, permanent

Olsson, KentMember of ParliamentSwedish Maritime Administration, permanent

Ohlsson, Lars-BertilSenior Vice President, Electrolux ABSweden Post AB, permanent

Omling, PärProfessorImego AB, permanent

Onne, MadeleineThe Royal Swedish Opera AB, Employee´s repre-sentative, alternate

Orrenius, JanAttorneyThe swedish Civil Aviation Authority, permanent

Palm, Ulla-MarieEmployee´s representativeAB Svenska Spel, permanent

Palme, GunnarCEO, AssiDomän AB

Palmstierna, JacobEkonomic doctor h.cNordic Baltic Holding AB, president

Patriksson, FolkeCEO, B&N Nordsjöfrakt ABSwedish Ship Mortgage Bank, permanent

Pehrsson, UlfAssistant under-secretary, Ministry for foreignaffairsSEK (Swedish Export Credit Corporation), permanent

Peltola, TimoEkonomic doctor h.cNordic Baltic Holding AB, permanent

Persson, AgataSwedish National Grid, Employee´s representative

Persson, BertilCEO Beijer AlmaThe Swedish Motor Vehicle Inspection Company,permanent

Persson, CurtEx. PresidentVenantius AB, presidentSOS Alarm Sverige AB, president

Persson, Jan-CristerDirector, IVFSwedish Testing and Research Institute, president

Persson, MargaretaPresident, Nationella FolkhälsomålSwedish National Pharmacy Corporation AB, per-manent

Persson, ValdemarCEO, Teracom ABTeracom AB, permanent

Petersson, Lars-EricDirectorTelia AB, permanent

Petersson, Sven-OlofEx.Member of ParliamentSwedish Alcohol Retailing Monopoly, alternate

Pettersson, BirgittaSwedish Maritime Administration, Employee´srepresentative

Pettersson, Lars-OlofAssiDomän AB, Employee´s representative

Pettersson, LeifAB Göta kanalbolag, Employee´s representative, alternate

Pettersson, StureCEO, Swedesurvey AB

Pettersson, UllaHead of Cultural and Leisure activities Swedish maritime administration, permanent

Pettersson, ÅkeSenior advisor 6th AP-Fonden, Ex. Party secretarySwedish State Railway, permanent

Pilsäter, KarinMember of ParliamentSwedish Alcohol Retailing Monopoly, alternate

Plogéus, EvaCounty employment director, Östergötland countyThe Swedish Civil Aviation Authority, permanent

Pålsson, UnoSwedish Maritime Administration, Employee´srepresentative, alternateSwedish Maritime Administration, permanent

Queckfeldt, Ewa SEB BoLånAB Bostadsgaranti, alternate

Ragsten Pettersson, ChristinaAssistant under-secretary, Ministry of financeCEO, Statens Premiefond ABSweden Post AB, permanentSBAB, permanentStatens Premiefond AB, permanent

Reinius, UllaDirectorThe Royal Swedish Opera AB, permanent

Rekke, LarsState secretary, Ministry of industry, employmentand communicationStattum Holding, president

Reuterskiöld, MarianneCEO, Sveriges MarknadsförbundSwedish Travel & Tourism Council, permanent

Ringblom, ErlandBank director, Skandinaviska Enskilda Banken ABSEK (Swedish Export Credit Corporation), alternate

Ringdahl, ThomasHead of division, Skanska Sverige ABAB Bostadsgaranti, alternate

Ringström, AnitaDeputy CEO, KemikontoretSvenska Lagerhusaktiebolaget, permanent

Rodosi, AgnetaCFO, Akademiska Hus ABSwedish Ship Mortgage Bank, alternate

Rogestam, ChristinaCEO, Akademiska Hus AB

Rooth, LenaDirectorSwedfund International AB, permanent

Ros, Carl WilhelmDirectorAssiDomän AB, permanentLKAB, permanent

Roukala,Hyväinen, KaijaNordic Baltic Holding AB, Employee´s representative, permanent

Rozenbeek, LenaAB Svenska Spel, Employee´s representative, alternate

Rudh, Karl-ErikSveaskog AB, Employee´s representative

145


Rung, SörenBank directorSBAB, vice president

Ruth, ArneVoksenåsen A/S, permanent

Rydén, BengtPh. D. Econ.OM Group AB, permanent

Ryding, Sven-OlofCEO, AB Svenska MiljöstyrningsrådetThe Swedish Environmental Management Council,permanent

Rådberg, BarbroInsurance Manager, Social Insurance Office Stockholm countyAB Kurortsverksamhet, alternate

Råland, BirgittaAssistant under-secretary, Ministry of Industry,Employment and CommunicationIRECO Holding AB, permanent

Rålin, BeritSOS Alarm, Employee´s representative

Rönnberg, MatsEx. Direcor-GeneralVenantius AB, permanent

Sahlin, MauritzDirectorImego AB, president

Salzmann, TomasCEO, Graphium ABIRECO Holding AB, permanent

Samuelsson, Jan-ÅkeWorkerSakab, Employee´s representative

Sandberg, Mona-LiseDirector, Sandbergs Tyger och GardinerALMI Företagspartner AB, permanent

Sandberg, PeterCEO,The National Pension Insurance FundSweden Post AB, permanent

Sandesten, Stefan Chief Technical Officer, Vasakronan ABVasallen AB, permanent

Sandström, BerraAB Svenska Spel, Employee´s representative

Saxton, Ulla-BritaAssistant under-secretary, Ministry of industry,employment and communicationSvedab, alternate

Saxvold, BrorSwedish State Railway, Employee´s representative

Schrøder, HugoEngineerSAS Group AB, president

Schönning, EjeDirector, Järntorget Mark & Byggnads ABAB Bostadsgaranti, alternate

Severed, BoDirectorSwedish Ship Mortgage Bank, alternate

Sicking, Karl-OttoCEO, Svedab

Silfverstrand, BengtMember of ParliamentSwedish Alcohol Retailing Monopoly, permanent

Sivertsson, LennartChief environmental and technical officer, WMISellbergs ABSakab, alternate

Skarell, GunnarDirector-General, Ministry of financeSvenska Lagerhusaktiebolaget, permanent

Skoglösa, Britt-MarieReceptarie, President FarmaciförbundetThe swedish National Pharmacy Corporation AB,Employee´s representative

Skogö, IngemarDirecor-General, The Swedish Civil AviationAuthority A-Banan projekt AB, presidentThe Swedish Civil Aviation Authority, permanentSvedab, president

Sköld, LarsCEO, Sveaskog AB

Sköldefors, WalterDirector, Swedish federation of tradeSIS Eco-Labelling, permanent

Smith, EvaHead of unitThe Swedish Environmental Management Council,permanent

Sohlman, MichaelCEO, NobelstiftelsenV&S Vin & Sprit AB, permanent

Sohlman, RagnarVoksenåsen A/S, permanent

Sorte, PerEx. President and CEO, AB CeraliaSvenska Lagerhusaktiebolaget, vice president

Sprängare, BjörnGovernorLKAB, presidentSwedish State Railway, vice presidentStattum Holding, permanent

Spång, UlfDeputy CEO, Försäkringsbolaget SkandiaSweden Post AB, permanent

Staffas, FritzPresident, Ortivus ABAkademiska Hus AB, permanent

Stark, AnnelieCounty Council Commissioner Västra Götaland County councilALMI Företagspartner AB, permanent

Starkerud, Lars Economist, LandsorganisationenSwedish Maritime Administration, permanent

Starrin, KarinCounty governor, Halmstad countyThe Royal Swedish Opera AB, permanent

Steen, AnitraCEO, Swedish Alcohol Retailing Monopoly

Steincke, GünterThe Swedish Motor Vehicle Inspection Company,Employee´s representative, alternate

Stenberg, JanCEO and president, SAS Sverige ABStattum Holding, permanentThe royal swedish opera AB, permanent

Stendahl, ChristinaUniversitætskapellanVoksenåsen A/S, permanent

Stenhammar, OlofDr. Econ. H.COM Group AB, president

Striby, ChristinaChief of legal affairs, Sweden Post ABVattenfall AB, permanent

Strömberg, KarinDeputy CEO, SAS Airlines Network ManagementSweden Post AB, permanent

Sundberg, KjellCEO, A-Banan projekt ABA-Banan projekt AB, alternate

Sundén, StaffanThe Swedish Motor Vehicle Inspection Company,Employee´s representative

Sundgren, Jan-EricPrincipal, CTHSwedish Testing and Research Institute, perma-nent

Sundström, HansCEO, AB Bostadsgaranti (t o m 1999-07-31 )

Sundström, MonicaCEO, Federation of Swedish county councilsAB Svenska Spel, permanent

Swartz, GöranThe Royal Swedish Opera AB, Employee´s repre-sentative

Svedberg, GunnarPrincipal, MitthögskolanIRECO Holding AB, president

Swedenborg, BirgittaDeputy CEO, SNSSamhall AB, alternate

Svelander, CharlotteNurse’s assistant RFV AB Kurortsverksamhet, Employee´s representative

Svenheim, Lars-OlofDirectorAB Göta kanalbolag, permanent

Svensson, HansState secretary, Ministry of health and socialaffairsSamhall AB, permanent

Söderberg, LenaChief environmental officer, Stockholms CountyCounty councilSveaskog AB, permanentSvenska Skogsplantor AB, permanent

Söderhjelm, MargarethaThe swedish national pharmacy corporation AB,Employee´s representative, alternate

Söderlund, ThordDirectorAB Göta kanalbolag, permanent

Söderström, BengtDirector, Göteborgs EnergiSwedish National Grid, vice president

Söderström, Lars-OlovManaging direcorNorrland Center AB, permanent

Tegnér, PerDirecor-General, RymdstyrelsenSwedish Space Corporation, permanentAssiDomän AB, permanent

Tengelin, UrsulaCEO, Hoechst Marion Russel ABLKAB, permanent

146


Tham, CarlSecretary-generalThe Royal Swedish Opera AB, permanent

Thapper, IngerEx. Municipal CommissionerThe Swedish Civil Aviation Authority, permanent

Thelin, HugoChief technical officerSwedfund International AB, vice president

Thiberg, SvenProfessorSIS Eco-Labelling, president

Thor, Anders J1st Deputy president, Villaägarnas RiksförbundAB Bostadsgaranti, alternate

Thorell, LarsSveaskog AB, Employee´s representative, alternate

Thornéus, TorstenLKAB, Employee´s representative, alternate

Tidlund, HåkanEx CEO and president, FolksamSamhall AB, president

Tiusanen, BertilDeputy CEO Vattenfall AB, temp CEO April–July2000The Swedish National Pharmacy Corporation AB,permanent

Tivéus, MegCEO, AB Svenska Spel The Royal Swedish Opera AB, permanentSwedish State Railway, permanent

Tivéus, Hanstemp CEO, The Swedish Motor Vehicle InspectionCompany fr.o.m april 2000

Torell, LenaProfessorImego AB, permanent

Torstensson, LennartSvenska Skogsplantor AB, Employee´s representative

Tuvegarn, IngelaHospital ManagerSweden Post AB, permanent

Ullenius, ChristinaPrincipal, Karlstads UniversitetIRECO Holding AB, permanent

Unge, RagnarCEO, SIS Eco-LabellingSIS Eco-Labelling, permanent

Utterström, BrittmarieSweRoad AB, permanent

Utterström, GöstaAssiDomän, Employee´s representative, alternate

Uustalu, AnnDeputy director, Ministry for foreign affairsSwedfund International AB, permanent

Vainio, VesaVice häradshövdingNordic Baltic Holding AB, vice president

Wahlström, VictorAdvisor, FUBSamhall AB, alternate

Waldner, LarsTechnical AdvisorThe Swedish Environmental Management Council,permanent

Wall, CarinAssistant under-secretary, Ministry for foreign affairsSwedfund International AB, permanent SEK (Swedish Export Credit Corporation), alternate

Wallgren, AndersCEO, Swedish Travel & Tourism Council

Wallin, OveSOS Alarm Sverige AB, Employee´s representative

Wallin, SvenEngineerSwedish Space Corporation, Employee´s represen-tative

Weichbrodt, BjörnEx. Director, Association of Swedish engineeringindustriesSwedish Testing and Research Institute, permanent

Wenblad, AxelChief environmental officerThe Swedish Environmental Management Council,president

Westling, RickardVasallen AB, Employee´s representative

Vestergren, LennarthForemanSakab, Employee´s representative

Westerståhl, KristinaHead of unit, Swedish consumer agencyAB Bostadsgaranti, permanent

Westman, BerithEmployee´s representative, SIF-TeleTelia AB, permanent

Wickenberg Karlsson, BirgittaCEO, Swedish Ship Mortgage BankSEK(Swedish Export Credit Corporation), alternate

Wide, Anna MariaAB Svenska Miljöstyrningsrådet, permanent

Widmark, HåkanCEO, IRECO Holding AB

Wiklund, KarinBachelor of business administrationSBAB, permanent

Wikström, Jan-ErikThe Royal Dramatic Theatre of Sweden AB, presi-dent

Wikström, KarlLKAB, Employee´s representative

Viktorsson, ElisabethEngineerTeracom AB, Employee´s representative, alternate

Wilhelm Ros, CarlLKAB, permanent

Winskog, ThomasCEO, Svenska TaxiförbundetThe Swedish Motor Vehicle Inspection Company,permanent

Wolrath, BjörnPresident Momentum ABSEK (Swedish Export Credit Corporation), president

Wrangsell, GöranV&S Vin & Sprit AB, Employee´s representative

Wärn, RagnhildPresident, County council parliamentAB Göta kanalbolag, permanent

Wästberg, PerThe Royal Dramatic Theatre of Sweden AB, per-manent

Wästlund, Holgertemp CEO Specialfastigheter Sverige ABSpecialfastigheter Sverige AB, permanent

Yngvesson, NilsEx. Municipal CommissionerSvedab, permanent

Yngwe, PeterCEO, SEK (Swedish Export Credit Corporation)

Zander, JensProfessorTeracom AB, permanent

Ziegler, IngemarPresident, Locum ABSpecialfastigheter Sverige AB, permanent

Åhfeldt, Per-OlofAB Göta kanalbolag, Employee´s representative, alternate

Åhult, HenrikLKAB, Employee´s representative, alternate

Åkerblom, KjällThe Royal Dramatic Theatre of Sweden AB,Employee´s representative

Åkesson Bonde, IngridDirecor-General, Swedish national debt officeSwedish Space Corporation, permanent

Ånstrand, ClaesState secretarySwedish Alcohol Retailing Monopoly, permanent

Ödqvist, OlofDirector, Stena Line ABSwedish Travel & Tourism Council, permanent

Ögren, KentMunicipal Commissioner, JokkmokkVattenfall AB, alternate

Öhman, HansHead of regionA-Banan projekt AB, permanent

Öhrn, IngemarCounty governorSvenska Skogsplantor AB, president

Öjefors, LarsManaging direcorSwedfund International AB, permanent

Örnfjäder, Krister Member of ParliamentThe Swedish Civil Aviation Authority , permanent

Örtegren, BengtSwedish National Grid, Employee´s representative

Örtendahl, ClaesEx. Director-General, President Östeuropa-kommitténThe Swedish National Pharmacy Corporation AB,permanent

Österbo, ÖrjanDirector, Försäkringskassan Kalmar county AB Kurortsverksamhet, permanent

Österlund, Claes-GöranCEO, AB Göta kanalbolag

Östholm, LarsDirectorLKAB, permanent

147

A D D R E S S E S

A-Banan projekt ABPO Box 133SE-190 45 STOCKHOLM-ARLANDAPhone: +46 8 797 98 50Telefax: +46 8 797 98 51E-mail: [email protected]

ALMI Företagspartner ABTegelbacken 4SE-111 52 STOCKHOLMPhone: +46 8 402 09 00Telefax: +46 8 406 03 00E-mail: [email protected] address: www.almi.se

The Swedish National Pharmacy Corporation ABSE-131 88 STOCKHOLMPhone: +46 8 466 10 00Telefax: +46 8 466 15 15Web address: www.apoteket.se

AssiDomän ABSE-105 22 STOCKHOLMPhone: +46 8 655 90 00Telefax: +46 8 655 94 01E-mail: [email protected] address: www.asdo.se

AB BostadsgarantiPO Box 26029SE-100 41 STOCKHOLMPhone: +46 8 545 047 00Telefax: +46 8 545 047 27E-mail: [email protected] address: www.bostadsgaranti.se

Civitas Holding AB - Agilia Holding ABPO Box 24234SE-104 51 STOCKHOLMPhone: +46 8 783 21 00Telefax: +46 8 783 21 04

A/O Dom Shvetsii8 Sovetskaya 31193 144 ST PETERSBURG, RYSSLAND

Stattum Holdingc/o Ministry of industry, employment and com-municationSE-103 33 STOCKHOLMPhone: +46 8 405 36 92Telefax: +46 8 21 57 99E-mail: [email protected]

Grängesberg Gruvor ABPO Box 26SE-772 21 GRÄNGESBERGPhone:+46 240 21400Telefax: +46 240 203 73

AB Göta kanalbolagPO Box 3SE-591 21 MOTALAPhone: +46 141 20 20 50Telefax: +46 141 21 55 50E-mail: [email protected] address: www.gotakanal.se

Imego ABAschebergsgatan 46Byggnad 11SE-411 33 GÖTEBORGPhone:+46 31 750 18 00Telefax:+46 31 750 18 01E-mail:[email protected] [email protected]

IRECO Holding ABKlara Norra kyrkogata 33SE-111 22 STOCKHOLMPhone: +46 8 411 18 90Telefax: +46 8 411 18 93E-mail: [email protected] address: www.ireco.se

Kasernen Fastighets ABGustav Adolfs gata 49SE-541 45 SKÖVDEPhone: +46 500 41 08 05Telefax: +46 500 48 68 36

The Royal Dramatic Theatre of Sweden ABPO Box 5037SE-102 41 STOCKHOLMPhone: +46 8 665 61 00Telefax: +46 8 663 88 16Web address: www.dramaten.se

The Royal Swedish Opera ABPO Box 16094SE-103 22 STOCKHOLMPhone: +46 8 791 43 00Telefax: +46 8 791 44 44E-mail: [email protected] address: www.kungligaoperan.se

AB Kurortsverksamhetc/o Riksförsäkringsverkets sjukhusSE-573 81 TRANÅSPhone: +46 140 461 00Telefax: +46 140 461 80E-mail: [email protected]

Lernia ABPO Box 1181SE-111 91 STOCKHOLMPhone: +46 8 701 65 00Telefax: +46 8 411 00 93E-mail:[email protected] address: www.lernia.se

The Swedish Civil Aviation Authority SE-601 79 NORRKÖPINGPhone: +46 11 19 20 00Telefax: +46 11 19 25 75E-mail: [email protected] address: www.lfv.se

Luossavaara-Kiirunavaara, LKABPO Box 952SE-971 28 LULEÅPhone: +46 920 380 00Telefax: +46 920 195 05E-mail: [email protected] address: www.lkab.se

The Swedish Environmental Management CouncilPO Box 73096SE-107 24 STOCKHOLMPhone: +46 8 50 63 62 54Telefax: +46 8 5063 62 59E-mail: [email protected] address: www.miljostyrning.se

Nordic Baltic Holding AB/MeritaNordbankenHamngatan 10SE-105 71 STOCKHOLMPhone: +46 8 614 70 00Telefax: +46 8 10 50 69Web address: www.meritanordbanken.com

MeritaNordbankenWeb address: www.nb.se

MeritaNordbankenAlexandersgatan 3600020 MERITA, FINLANDPhone: +358 9 1651Telefax: +358 9 165 428 38Web address: www.merita.fi

Norrland Center ABPO Box 200SE-101 23 STOCKHOLMPhone: +46 8 23 01 40Telefax: +46 8 24 19 79E-mail: [email protected] address: www.norrlandcenter.se

OM Group ABNorrlandsgatan 31SE-105 78 STOCKHOLMPhone: +46 8 405 60 00Telefax:+46 8 405 60 01E-mail:[email protected] address:www.om.se

Sweden Post ABSE-105 00 STOCKHOLMPhone: +46 8 781 10 00E-mail: [email protected] address: www.posten.se

Samhall ABPO Box 44SE-146 21 TULLINGEPhone: +46 8 607 02 00Telefax: +46 8 607 02 99E-mail: [email protected] address: www.samhall.se

SAS Group ABSE-195 87 STOCKHOLMPhone: +46 8 797 12 93Web address: www.sas.se

SIS Eco-LabellingPO Box 6455SE-113 82 STOCKHOLMPhone: +46 8 610 30 40Telefax: +46 8 34 20 10E-mail:[email protected]@sis.seWeb address:www.svanen.nuwww.blomman.nu

Swedish Maritime AdministrationSE-601 78 NORRKÖPINGPhone: +46 11 19 10 00Telefax: +46 11 10 19 49E-mail: [email protected] address: www.sjofartsverket.se

SKD företagen ABPO Box 1252SE-171 04 SOLNAPhone: +46 8 705 80 00

SOS Alarm Sverige ABPO Box 5776SE-114 87 STOCKHOLMPhone: +46 8 407 30 00Telefax: +46 8 611 63 36Web address: www.sosalarm.se

Specialfastigheter Sverige ABBorggårdenSE-582 28 LINKÖPINGPhone: +46 13 24 92 00Telefax: +46 13 10 01 33E-mail:[email protected] address:www.specialfastigheter.se

SBAB (Swedish National Housing FinanceCorp.)PO Box 27308SE-102 54 STOCKHOLMPhone: +46 8 614 43 00Telefax: +46 8 611 46 00E-mail: [email protected] address: www.sbab.se

Swedish State RailwayCentralstationenSE-105 50 STOCKHOLMPhone: +46 8 762 20 00Telefax: +46 8 411 12 16E-mail: [email protected] address: www.sj.se

Statens Premiefond ABc/o Ministry of financeSE-103 33 STOCKHOLMPhone: +46 8 405 10 00

148

A D D R E S S E S

Statens Väg- och Baninvest ABSE-781 87 BORLÄNGEPhone: +46 243 754 00Telefax: +46 243 756 11

Akademiska Hus ABPO Box 483SE-401 27 GÖTEBORGPhone: +46 31 63 67 00Telefax: +46 31 63 67 05E-mail: [email protected] address: www.akademiskahus.se

Sveaskog ABPO Box 315SE-952 32 KALIXPhone: +46 923 787 00Telefax: +46 923 787 01Web address: www.sveaskog.se

Svensk Avfallskonvertering AB (SAKAB)PO Box 904SE-692 29 KUMLAPhone: +46 19 30 51 00Web address: www.sakab.se

The Swedish Motor Vehicle InspectionCompanyPO Box 508SE-162 15 VÄLLINGBYPhone: +46 8 759 21 00Telefax: +46 8 759 54 24E-mail: [email protected] address: www.bilprovningen.se

SEK (Swedish Export Credit Corporation)PO Box 163 68SE-103 27 STOCKHOLMPhone: +46 8 613 83 00Telefax: +46 8 20 38 94E-mail: [email protected] address: www.sek.se

Swedish National GridPO Box 526SE-162 15 VÄLLINGBYPhone: +46 8 739 78 00Telefax: +46 8 37 84 05E-mail:[email protected] address: www.svk.se

Svenska LagerhusaktiebolagetPO Box 301 43SE-104 25 STOCKHOLMPhone: +46 8 657 44 00Telefax: +46 8 737 01 16E-mail:[email protected] address: www.lagerhus.se

Swedish Space CorporationPO Box 4207SE-171 04 SOLNAPhone: +46 8 627 62 00Telefax: +46 8 98 70 69E-mail: [email protected] address: www.ssc.se

Swedish Ship Mortgage BankPO Box 11010SE-404 21 GÖTEBORGPhone: +46 31 80 61 60Telefax: +46 31 15 80 85E-mail: [email protected]

Svenska Skogsplantor ABPO Box 33SE-551 12 JÖNKÖPINGPhone: +46 36 30 56 00Telefax: +46 36 19 07 40E-mail: [email protected] address: www.skogsplantor.se

AB Svenska SpelSE-621 80 VISBYPhone: +46 498 26 35 00Telefax: +46 498 26 36 30Web address: www.svenskaspel.se

Swedish-Danish Bridge ConnectionPO Box 4044SE-203 11 MALMÖPhone: +46 40 660 37 00Telefax: +46 40 30 00 21E-mail: [email protected] address: www.oresundskonsortiet.se

Sveriges Geologiska AB, SGABEY Law/Tisell AdvokatbyråPO Box 3143SE-103 62 STOCKHOLMPhone: +46 8 506 440 00Telefax: +46 8 506 441 00

Swedish Testing and Research Institute, SP, ABPO Box 857SE-501 15 BORÅSPhone: +46 33 16 50 00Telefax: +46 33 13 55 02E-mail: [email protected] address: www.sp.se

Swedish Travel & Tourism CouncilPO Box 3030SE-103 61 STOCKHOLMPhone: +46 8 725 55 00Telefax: +46 8 725 55 31E-mail: [email protected] address: www.swetourism.se

Swedesurvey ABSE-801 82 GÄVLEPhone: +46 26 63 33 00Telefax: +46 26 65 18 19E-mail: [email protected] address: www.swedesurvey.se

Swedfund International ABPO Box 3286SE-103 65 STOCKHOLMPhone: +46 8 725 94 00Telefax: +46 8 20 30 93E-mail: [email protected] address: www.swedfund.se

SweRoad PO Box 4021SE-171 04 SOLNAPhone: +46 8 799 79 80Telefax: +46 8 24 46 89E-mail:[email protected] address:www.sweroad.se

Swedish Alcohol Retailing MonopolySE-103 84 STOCKHOLMPhone: +46 8 789 35 00Telefax: +46 8 789 35 02E-mail:[email protected] address: www.systembolaget.se

Telia ABSE-123 86 FARSTAPhone: +46 8 713 10 00Telefax: +46 8 93 38 01E-mail: [email protected] address: www.telia.se

Teracom ABPO Box 17666SE-118 92 STOCKHOLMPhone: +46 8 555 420 00Telefax: +46 8 555 421 01E-mail: [email protected] address: www.teracom.se

V&S Vin & Sprit ABSE-117 97 STOCKHOLMPhone: +46 8 744 70 00Telefax: +46 8 744 74 44E-mail: [email protected] address: www.vinsprit.se

Vasakronan ABPO Box 24234SE-104 51 STOCKHOLMPhone: +46 8 783 21 00Telefax: +46 8 783 21 01E-mail: [email protected] address: www.vasakronan.se

Vasallen ABTrädgårdsgatan 14SE-702 12 ÖREBROPhone: +46 19 17 50 70Telefax: +46 19 17 50 90E-mail: [email protected] address: www.vasallen.se

Vattenfall ABSE-162 87 STOCKHOLMPhone: +46 8 739 50 00Telefax: +46 8 37 01 70E-mail: [email protected] address: www.vattenfall.se

Venantius ABPO Box 16184SE-103 24 STOCKHOLMPhone: +46 8 440 81 00Telefax: +46 8 440 81 10E-mail: [email protected] address: www.venantius.se

Voksenåsen A/SUllveien 4NO-0791 OSLO, NORGEPhone: +47 22 14 30 90Telefax: +47 22 49 93 33E-mail: [email protected]

Zenit Shipping AB Vingalandsgatan 8SE-417 63 GÖTEBORGPhone: +46 31 22 25 42Telefax: +46 31 51 10 90

149

Reporting datesInterim report March – June, 18 September 2000

Interim report July – September, 30 November 2000Annual report April 2001

The report in English or in Swedish can be ordered from Stina Johannesson, Ministry of Industry, Employment and Communications,

+46-8-405 29 63 or e-mail: [email protected]. It can also be found on www.naring.regeringen.se/fragor/statliga_foretag.

Production Hallvarsson & Halvarsson, Ahonk AB.

Phone: +46 (0)8 - 405 10 00www.regeringen.se

Ministry of Industry, Employment and Communications. Web address: www.naring.regeringen.se

Government-owned companies 2000

Documents

Transcript of Government-owned companies 2000