Investor Calendar: Attention: Please note important background and customer information at the end of this report

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1 Equity Equity Research - Friday, June 10, 2011 Baltic Indices Mar Baltic Benchmark OMX Riga* * Relative to Baltic Benchmark Index value 12-May OMX Tallinn* OMX Vilnius* Source: Reuters, Swedbank OMX Tallinn % -3.5% OMX Riga % 7.3% OMX Vilnius % -4.0% OMX Baltic Bench % -2.3% OMX Baltic % -9.0% S&P 500 1, % 2.5% STOXX Europe % -1.9% STOXX EU Enlarged % 3.9% RTS 1, % 8.6% Top gainers: Last Close ( ) Ekspress Grupp % Zemaitijos Pienas % Baltika % Harju Elekter % Olympic Entertainment Group % Top losers: Last Close ( ) Tallinna Vesi % Rokishkio Suris % Arco Vara % Ventspils Nafta % Merko Ehitus % Most active: Last Close ( ) Tallink % Tallinna Kaubamaja % Tallinna Vesi % Invalda % Silvano Fashion Group % YTD Sou rce: Bloomberg Turnover ( th) Sou rce: Bloomberg Turnover ( th) Sou rce: Bloomberg Turnover ( th) Sou rce: Bloomberg Top company and macro news Linas Agro takes a full control over its subsidiary Rosenkrantz A/S Apranga extends franchise agreements with Inditex Silvano FG agenda for AGM Grindeks No dividends for 2010 AS Ekspress Grupp Sales in May 2011 & resolution of court case Vilkyskiu pienine reported 37% yoy growth in May sales Latvian GDP rose by 0.3% qoq s.a in Q Latvian CPI +0.4% mom and +5% yoy in May 2011 Lithuanian consumer prices increased by 0.7% mom and 6.3% yoy in May 2011 Summer moods on Baltic equity markets It was a quiet week for OMX Tallinn, turnover was low and retail investors were sleepy. At least the last day of the week ended with postitive sentiment and almost all shares were higher. The most traded shares were Tallink with turnover 0.8m, Tallinna Kaubamaja with turnover 0.4m and Silvano Fashion Group with volume 0.3m. Worst losers of the week were Merko Ehitus which declined 3.3% and ARCO Vara by -6.3%. Summer mood prevailed in Riga Stock Exchange also as volumes remained low and Nasdaq OMX Riga index closed the week almost at the same level Most of OMX Riga s turnover was generated in Olainfarm but the stock price increased just 0.38% as buyers and sellers were well balanced. It seems the previous buyer came back in Latvijas Balzams as it renewed its upward trend, adding almost 14% this week. NASDAQ OMX Vilnius index slipped 0.5%. This week was quiet enough, turnover was low and we can presume that the summer season has begun. The biggest turnover of 0.35m was recorded in Invalda shares. Investors were unenterprising in other positions. According to revised data, Latvian GDP rose by 0.3% qoq s.a. (3.5% yoy nsa) in 1Q GDP growth was mainly driven by exporting or export related. Despite export growth continued to be strong (14.7% yoy), import growth was even swifter (20.7%). Household consumption growth remained weak (just 3.6%) and uneven. Latvian CPI rose by 0.4% mom in May It was mostly driven by higher food prices and meat, as well as seasonal increases in prices of clothing and footwear. In annual terms CPI growth reached 5%. Lithuanian consumer prices increased by 0.7% mom in May and were 5.0% higher than a year before. Prices for consumer goods over the year grew by 6.3%, while those for consumer services increased by 0.8%. The largest growth in prices was in goods and services of staples: food products (11.1% yoy), transport (7.4%), and housing (7.7%). Investor Calendar: Date Issuer/Country Description Period Latvia Unemployment rate May Olainfarm Dividend ex-date Premia Foods Dividend rec-date (decided 0.01) Tallinna Vesi Dividend distribution (decided 0.80) Olainfarm Dividend rec-date Source: Nasdaq OMX, Bloomberg Attention: Please note important background and customer information at the end of this report Equity Research Large Corporations & Institutions Page 1 of 8

2 Equity Friday, June 10, 2011 Company News Company & expected share impact Positive Neutral Negative Linas Agro takes a full control over its subsidiary Rosenkrantz A/S Linas Agro Group has announced that it is buying the remaining 40% stake in its Danish-based subsidiary Rosenkrantz A/S from Baltic Agro Group A/S, owned by Henrik Klindt Petersen, the managing director of Rosenkrantz A/S. The agreement will come into force on July 1, 2011, and after that Linas Agro Group will own 100% shares of Rosenkrantz A/S. The total value of the transaction is around 1 million EUR and payment is due within three years. Through Rosenkrantz A/S, Linas Agro Group sells grains, feedstuffs, oil seeds, vegetable oils and solid bio fuels to customers in Europe, Northern Africa and the Middle Eastern region. Linas Agro Group Recommendation: Hold Target Price: 0.65 Price: 0.51 Analyst: Donatas Uzkurelis Tel: We retain our 12-month target of EUR 0.65 (LTL 2.25) per share and stay with our Hold recommendation for the stock as risks around the company s performance are still high and we see few share price triggers in upcoming quarters. Apranga extends franchise agreements with Inditex Apranga and Inditex have agreed to extend franchise agreements on Zara, Bershka, Pull and Bear and Stradivarius brands development in the Baltic States until Currently Apranga runs 32 stores (from 116 stores in total) of Inditex chain: 10 Zara, 8 Bershka, 8 Pull and Bear and 6 Stradivarius. The general area of these stores is 24,500 sq. m. or 39% of the total area of 63,300 sq. m. Although this is positive news, we do not expect an impact on the stock price tomorrow. We reiterate a hold recommendation with a high risk assessment. The target price remains at EUR 1.90 per share. Apranga Recommendation: Hold Target Price: 1.89 Price: 1.73 Analyst: Donatas Uzkurelis Tel: Silvano FG agenda for AGM Silvano FG announced the agenda for the annual general meeting that will take place on June 30th 2011 at 2:00 p.m (n time). The management will propose to pay dividends of The list of shareholders entitled for profit distribution shall be determined as at 11:59 p.m. on July 14, Dividends will be paid out to entitled shareholders latest by August 15, It will be proposed to adopt the new Buy-Back Programme of AS Silvano Fashion Group. The primary purpose for this is to reduce the share capital. SFG is entitled to buy back its own shares starting from July 1, 2011 until June 30, The total nominal value of own shares to be bought back by SFG may not exceed 10% of the company s value and the nominal value of the treasury shares may not exceed 10% of the company s share capital. The maximum price payable by SFG for one share will be Silvano Fashion Group Recommendation: Accumulate Target Price: 3.7 Price: 3.23 Analyst: Risto Hunt Tel: As announced earlier, SFG reduces share capital by 0.14 so that the nominal value of the share would be For the coming AGM it is planned to make a proposal to pay shareholders 0.10 per each share for the reduction in the nominal value of the Attention: Please note important background and customer information at the end of this report Equity Research Large Corporations & Institutions Page 2 of 8

3 Equity Friday, June 10, 2011 share. The list of shareholders entitled to receive the payment related to reduction of the nominal value of shares shall be fixed at 11:59 p.m. on September 1, 2011 (n time). To sum up, investors would receive (dividends + reductions in shares nominal value) 0.29 for each share they have. Grindeks No dividends for 2010 Grindeks has announced draft resolutions for its planned AGM on June 22nd. The proposition to pay no dividends is in line with our expectations as the company is still using cash to complete its capex program. We expect Grindeks to start paying dividends from next year as free cash flow should start piling up after the capex program is complete in 2H2011. In a separate resolution it is proposed that 3.34m shares of Grindex be listed in the Baltic Official list of Nasdaq OMX Riga. We understand that this is done in order to comply with the Latvian Central Depositary s recommendation to have all 9.59m shares of the company listed and not to keep some part of the shares as closed emission shares. No new share issues or major shareholder changes are planned. Grindeks Recommendation: Buy Target Price: Price: 9.35 Analyst: Marek Randma AS Ekspress Grupp Sales in May 2011 & resolution of court case Ekspress Grupp s sales improved 14.7% yoy to 5.2m in May Main drivers for growth were the online and the printing segments, as expected. Cumulative turnover for 5M 2011 improved 12% yoy reaching 23.5m. Nasdaq OMX has reported that AS Sanoma Baltics accused AS Eesti Päevalehed and AS Delfi concerning infringement of the copyright of the car portal by the car sales ad portal The court ordered AS Eesti Ajalehed and AS Delfi severally to pay compensatory damages of EUR (the management of EEG wrote in its annual report 2010 that at first AS Sanoma Baltics ordered payment of the foregone license fee for 32 months of EUR 614 thousand. In our opinion, the 60k fine is not big enough to influence our target price for Ekspress Grupp. Ekspress Grupp Recommendation: Buy Target Price: 1.70 Price: 1.44 Analyst: Risto Hunt Tel: As the media market is recovering well and, in addition, EEG has increased its holding in Eesti Päevalehe AS to 100%, we have updated our forecasts and adjusted the target price which now stands at 1.70 per share with a Buy recommendaiton. Attention: Please note important background and customer information at the end of this report Equity Research Large Corporations & Institutions Page 3 of 8

4 Equity Friday, June 10, 2011 Rokiskio suris posted good growth in May sales Rokiskio suris reported LTL 51.1m (EUR 14.8m) in May sales; 25.9% more than a year ago. For the first five months the company s sales reached 250.8m (EUR 72.6m) with an even more impressive yoy growth rate of 42.5%. Rokishkio Suris Recommendation: Target Price: Price: 1.47 Vilkyskiu pienine reported 37% yoy growth in May sales Another Lithuanian dairy company Vilkyskiu pienine reported 37% yoy growth in May sales which amounted to LTL 23.7m (EUR 6.9m). For the first five months the company s sales amounted to LTL 106.2m (EUR 30.8m) or 22% more than for the same period last year. Vilkyškių pieninė Recommendation: Target Price: Price: 1.58 Attention: Please note important background and customer information at the end of this report Equity Research Large Corporations & Institutions Page 4 of 8

5 Equity Friday, June 10, 2011 Baltic Equity Trading Statistics Bloomberg Last Upside/ M.Cap, Free float Return Name ticker GICS Sector/ Sub-Industry Country Price ( ) Target ( ) Downside Reco. meur (FF) 1w 1m 6m YTD 52w Apranga APG1L LH Apparel Retail LT % Hold 96 23% -1% -3% -12% -17% 36% 18 35% Arco Vara ARC1T ET Diversified Real Estate Activi EE 4.50 Under Rev. Under Rev % -6% -3% -20% -18% 13% 13 42% Baltika BLT1T ET Apparel, Accessories & Luxury EE 0.84 Under Rev. Under Rev % 3% -4% -20% -27% 27% 21 49% City Service CTS1L LH Environmental & Facilities Ser LT 2.88 Under Rev. Under Rev % -2% 3% -2% 3% 21% 35 28% Ekspress Grupp EEG1T ET Publishing EE % Buy 41 26% 5% 2% -3% -6% 64% 8 46% Grindeks GRD1R LR Pharmaceuticals LV % Buy 85 39% 0% 3% 1% -1% 16% 45 37% Grigiskes GRG1L LH Paper Products LT 0.81 Under Rev. Under Rev % -2% 7% 14% 5% 122% 8 33% Harju Elekter HAE1T ET Electrical Components & Equipm EE % Accumulate 49 43% 3% -4% 1% -4% 28% 10 34% Invalda IVL1L LH Home Furnishings LT % 0% 18% 10% 8% 144% 35 43% Klaipedos Nafta KNF1L LH Oil & Gas Storage & Transporta LT % 1% 12% -21% -21% 22% 7 33% Lietuvos Dujos LDJ1L LH Gas Utilities LT 0.68 Under Rev. Under Rev % -1% -1% -6% -8% 6% 22 25% LESTO LES1L LH Electric Utilities LT % -1% 2% 19 Linas Agro Group LNA1L LH Agricultural Products LT % Hold 81 34% -3% 2% -10% -16% -10% 37 25% Latvian Shipping Company LSC1R LR Oil & Gas Storage & Transporta LV % 1% -8% 7% 2% -4% 7 47% Merko Ehitus MRK1T ET Construction & Engineering EE % Accumulate % -3% -10% -22% -18% -1% 25 32% Nordecon International NCN1T ET Construction & Engineering EE % Buy 39 37% 0% 2% 2% -8% -10% 17 41% Olympic Entertainment Group OEG1T ET Casinos & Gaming EE % Accumulate % 3% 6% 9% 4% 23% % Olainfarm OLF1R LR Pharmaceuticals LV % Buy 52 23% 0% 10% 31% 23% 169% 13 37% Premia Foods PRF1T ET Packaged Foods & Meats EE % Accumulate 32 34% 0% 2% -10% -12% 0% 14 Pieno Zvaigzdes PZV1L LH Packaged Foods & Meats LT % -1% -1% 5% 3% 37% 9 45% Panevezio Statybos Trestas PTR1L LH Construction & Engineering LT % 1% 1% 1% -9% 52% 34 36% Rokishkio Suris RSU1L LH Packaged Foods & Meats LT % -7% -15% -18% -18% 45% 13 37% Siauliu Bankas SAB1L LH Diversified Banks LT % -1% -1% -5% -8% 5% 14 22% SAF Tehnika SAF1R LR Communications Equipment LV % -3% -3% -11% -8% 234% 6 68% Sanitas SAN1L LH Pharmaceuticals LT % 0% 71% 78% 70% 137% 47 52% Silvano Fashion Group SFGAT ET Apparel Retail EE % Accumulate % 3% 3% 23% 24% 121% % Snoras SRS1L LH Diversified Banks LT % -2% -2% -26% -20% 31% 25 38% Zemaitijos Pienas ZMP1L LH Packaged Foods & Meats LT % 4% 5% -4% -1% 57% 7 33% Tallink TAL1T ET Marine EE % Accumulate % 1% -3% -3% -9% 22% % TEO LT TEO1L LH Integrated Telecommunication S LT % Hold % 2% 0% -13% -15% 6% % Tallinna Kaubamaja TKM1T ET Department Stores EE % Hold % -1% -8% -4% -5% 38% 76 31% Tallinna Vesi TVEAT ET Water Utilities EE % Reduce % -13% -13% -4% -7% -12% 48 28% Ukio Bankas UKB1L LH Diversified Banks LT % -1% 0% -13% -21% 5% 66 29% Ventspils Nafta VNF1R LR Oil & Gas Storage & Transporta LV % -6% -4% 9% -4% -10% 2 77% AVERAGE 21% % -1% 2% -1% -4% 43% % MEDIAN 21% % -1% 0% -4% -8% 23% % Avg. Daily Turnover th 52w Volatility Equity Research Large Corporations & Institutions Page 5 of 8

6 Equity Friday, June 10, 2011 Baltic Equity Fundamentals Bloomberg EV P/E P/E P/BV P/BV P/S P/S EV/ Name ticker meur P/E 2011F 2012F P/BV 2011F 2012 P/S 2011F 2012F EBITDA EV/ Sales ROE ROA DPS Apranga APG1L LH % 9% % 4% 2% 45% 6% 34% Arco Vara ARC1T ET % 2% 14% -41% 173% Baltika BLT1T ET % -16% 53% -9% 277% City Service CTS1L LH % 7% % 2% 2% 17% 4% 126% Ekspress Grupp EEG1T ET % 2% 22% 9% 128% Grindeks GRD1R LR % 9% 4% 55% 14% 42% Grigiskes GRG1L LH % 4% % 1% 1% 12% 5% 185% Harju Elekter HAE1T ET % 4% % 2% 3% 15% 4% 24% Invalda IVL1L LH % 7% 22% 169% Klaipedos Nafta KNF1L LH % 6% 38% 26% 0% Lietuvos Dujos LDJ1L LH % 3% % 6% 0% 0% LESTO LES1L LH % Linas Agro Group LNA1L LH % 4% % 2% 6% 2% 144% Latvian Shipping Company LSC1R LR % -14% 7% -11% 102% Merko Ehitus MRK1T ET % -2% % 1% 0% 4% -2% 61% Nordecon International NCN1T ET % -1% 1% -7% 192% Olympic Entertainment Group OEG1T ET % 1% 2% 56% 3% 32% Olainfarm OLF1R LR % 14% 1% 1% 55% 21% 52% Premia Foods PRF1T ET % 1% 1% 2% 24% 2% 75% Pieno Zvaigzdes PZV1L LH % 6% % 19% 4% 77% Panevezio Statybos Trestas PTR1L LH % 7% % 16% Rokishkio Suris RSU1L LH % 7% % 12% 4% 31% Siauliu Bankas SAB1L LH % -1% -63% 150% SAF Tehnika SAF1R LR % 17% % 44% 20% 0% Sanitas SAN1L LH % 8% 56% 20% 51% Silvano Fashion Group SFGAT ET % 23% % 4% 5% 40% 21% 55% Snoras SRS1L LH 2, % 0% 14% 140% Zemaitijos Pienas ZMP1L LH % 10% % 21% 5% 18% Tallink TAL1T ET 1, % 2% 21% 9% 180% TEO LT TEO1L LH % 14% % 9% 8% 47% 22% 9% Tallinna Kaubamaja TKM1T ET % 7% % 5% 4% 13% 5% 99% Tallinna Vesi TVEAT ET % 6% % 11% 10% 57% 55% 133% Ukio Bankas UKB1L LH % -1% -35% 125% Ventspils Nafta VNF1R LR % -6% 22% 17% AVERAGE % 4% 0.2 5% 4% 3% 29% 5% 91% MEDIAN % 4% 0.1 2% 2% 2% 22% 5% 76% Div. Yield Div. Yield 2011F Div. Yield 2012F Gross margin Operating margin Debt to equity Equity Research Large Corporations & Institutions Page 6 of 8

7 Equity Friday, June 10, 2011 Contacts: Head of Baltic Equity Research Marek Randma Head of Baltic Equity Sales Andres Suimets andres.suimets@swedbank.ee Energy, Materials & Utilities Industrials Equity Sales Marek Randma marek.randma@swedbank.ee Risto Hunt risto.hunt@swedbank.ee Andres Suimets andres.suimets@swedbank.ee Head of Sales () Donatas Užkurėlis donatas.uzkurelis@swedbank.lt Lithuania Donatas Užkurėlis donatas.uzkurelis@swedbank.lt Lithuania Svetlana Skutelska Svetlana.skutelska@swedbank.lv Head of Sales (Latvia) Telecom Services Financials Simona Vanagė simona.vanage@swedbank.lt Head of Sales (Lithuania) Donatas Užkurėlis donatas.uzkurelis@swedbank.lt Lithuania Risto Hunt risto.hunt@swedbank.ee Consumers & Retail Healthcare Equity Trading Risto Hunt risto.hunt@swedbank.ee Donatas Užkurėlis donatas.uzkurelis@swedbank.lt Marek Randma marek.randma@swedbank.ee Marek Randma marek.randma@swedbank.ee Latvia Simmo Sommer simmo.sommer@swedbank.ee Lithuania Equity Capital Markets Allan Marnot allan.marnot@swedbank.ee Head of Baltic Equity Trading Baltic Equity Capital Markets Swedbank Group Homepage: For Research products on Bloomberg please type: HBME <GO>. Background Information: Recommendation structure Large Corporations & Institutions recommendation structure consists of six recommendations: Buy, Accumulate, Hold, Reduce, Sell and Avoid. The recommendations are based on an absolute return for the security 12 months forward. The absolute return includes share price appreciation and dividend yield combined. The recommendations for the securities mentioned in this report are based on risk and return considerations. The higher the risk category of the investment, the higher the required return. For equity investments, returns are defined as capital appreciation and dividends received over the investment horizon of 12 months forward. The expected capital appreciation is the ratio of a stock s target price over the current price. A company risk rating depends on its stock price volatility, liquidity and business outlook. The target price depends on a company s fundamentals as well as the market valuation of peer stocks, and can be changed at any time if the relevant changes occur within a company/market perception of the peer group. Buy, accumulate, hold, reduce, sell and avoid recommendations may be used in this report. The table below presents the relationship between recommendations and target prices compared to risk level of the stock. These are indicative ranges and actual recommendations may deviate from the indications if other relevant issues are considered. For more detailed information about the recommendation system please visit Recommendation structure Buy > +20% to target price Accumulate +10% < target price < +20% Hold 0% < target price < +10% Reduce -10% < target price < 0% Sell < -10% to target price Avoid used when security does not match the standards presented in SWB s investment guidelines The recommendation by Large Corporations & Institutions Equity Research department is based on a variety of standard valuation models. However, the base for the calculation of the target price is our DCF model (DCF = discounted cash flow) with the exception of financial and investment companies. The DCF model discounts future cash flow at present value. In preparation of this report different valuation methods have been used, including, but not limited to, discounted free cash-flow and comparative analysis. The selection of methods depends on the industry, the company, the nature of the stock and other circumstances. The target price (previous fair value) takes into account the DCF value, the relative valuation of the share versus others peers (national or international) and news that can have a positive or negative effect on the share price. Relative and absolute multiples that we consider are: EV/EBITDA, EV/EBIT, PE, PEG and Net Asset models for companies with liquid markets for their assets and other industry specific ratios when available. Break-up valuation models are also sometimes considered. Recommendations by the 10 Jun 2011 No of shares Part of total Buy 4 20% Accumulate 6 30% Hold 4 20% Reduce 1 5% Under Review 5 25% Equity Research Large Corporations & Institutions Page 7 of 8

8 Equity Friday, June 10, 2011 Information to the customer: Issuer and recipients This report by Large Corporations & Institutions Equity Research is issued by Large Corporations & Institutions business area within Swedbank AB (publ) ( Swedbank ). Swedbank is under the supervision of the Swedish Financial Inspection Authority (Finansinspektionen) and other financial supervisory bodies where Swedbank have offices. Swedbank is a public limited liability company and a member of the stock exchanges in Stockholm, Helsinki, Oslo and Reykjavik as well as being a member of EUREX. Swedbank AS disseminates this report in. Swedbank AS is under the supervision of the n Financial Supervisory Authority (Finantsinspektsioon). Swedbank AB disseminates the report in Lithuania. Swedbank AB is under the supervision of the Lithuanian Financial Supervisory Authority (Lietuvos Respublikos vertybinių popierių komisija) in Lithuania. Swedbank AS disseminates this report in Latvia. 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