The good news of the year was the new mandate that gives us greater opportunities to promote the internationalisation of Swedish companies. With the focus on Swedish interests, we are able to issue guarantees for global transactions where financing solutions and the sharing of risks are necessary for the transaction.

Increasing number of companies are using us

EKN’s involvement and risk-taking is often a decisive factor for the exporter to realize the transaction. This applies both to very large transactions and to small ones. For several years, the demand for EKN’s guarantees has increased. An increasing number of companies are discovering what EKN can offer. During the year, we had as many as 99 new customers, compared to 74 new customers the previous year – which was itself a substantial increase from the 33 new customers in 2005. This is the result of a campaign that started in 2006 and which today is a separate business area for SMEs. We have sent out information about EKN to companies, banks and export promoters all over Sweden. We have advertised in local newspapers and run a large number of seminars. The response has been substantial. Once companies and bank branches have a better understanding of what EKN can offer, many of them want better and regular contact with us. The awareness of EKN has grown substantially among SMEs, and we are increasingly seen as someone facilitating all sorts of companies, both small and large.

Flow of business

The number of applications for guarantees has increased immensely during the year. We have issued 1,387 offers, compared to 1,230 the previous year. As in previous years, there has been a globally wide spread of transactions. We issued offers for transactions in 101 countries, and at the end of the year, we had commitments in the form of offers or guarantees for transactions in 126 countries. The maximum limit of our commitment, as decided by the Swedish Parliament, is SEK 200 billion. Our current exposure leaves 35% of that limit still available.

EKN is ready to support increasing exports

The importance for trade and industry to get support from EKN is evident. It was significant even in a year like 2007, when the world economy was sound and there was plenty of risk capital on the private market. We shift risk markets, develop new solutions and products and continue to be involved, taking responsibility for enabling Swedish businesses’ competitiveness to grow. The export share of GNP is now just over 50%. With our new mandate, we can also guarantee transactions with only a limited part consisting of Swedish goods and services, but which, in the long run, will contribute to future export earnings for Sweden. This can turn out to be as significant to Swedish interests as direct export promotion in each individual transaction.

Two business areas

As of last summer, we now have a new organisation with two business areas – one for large corporates, and one for SMEs. The division was made in order to meet customer needs and requirements in a better way. The business area for SMEs has a greater element of standardised products and more rapid administrative processing, while the business area for large corporates mainly involves larger and more complex transactions. The business area for SMEs has many transactions, transactions with smaller amounts, more products and shorter guarantee periods. During 2008 the business area will be able to offer electronic guarantee processing.

Financial strength

The result for the year, at SEK 1.7 billion after provisions, further reinforces our financial position and we now have an accumulated result of SEK 9.3 billion. That makes us well equipped for the future. The latter part of the year brought uncertainty and credit concerns to the financial markets of the world. But with our financial position we can handle sudden changes in the world economy. We are able to take on new, difficult and major risks and to develop new products for customers in both our business areas. In the current situation, we can see only a limited risk, within the immediate future, of a drastic increase in losses in the high risk markets where we operate.

Sustainable development

During 2008, we will continue to work with exporters and organisations on the issues in our activities within the scope of the areas of sustainable development and social responsibility.

Business development

During 2008, we will continue to reach out to more companies of all sizes. We are already ahead with special solutions for companies with large transactions and complex financing solutions and we can see a need to devote even more efforts to this. We also want to find out what need for financing and risk management large companies, which currently do not use EKN, may have in order to develop solutions that will suit them. We are well prepared for an increased demand for risk sharing. We will continue to collaborate with export promoters, such as SEK, the Swedish Trade Council, ALMI and Swedfund. It is important for us to understand the challenges the companies may face, so that we can support them in their internationalisation. What is good for trade and industry is good for Sweden.

After an extraordinarily interesting and stimulating first year as Director General, I would like to conclude by expressing my warmest thanks to all my highly skilled and committed colleagues.

Karin Apelman
Director General

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