Investor Presentation

Transcription

1 Investor Presentation

2 SEK s mission and vision SEK s mission is to ensure access to sustainable financial solutions for the Swedish export industry on commercial terms. SEK s vision is to strengthen the competitiveness of Swedish exporters and help create employment and sustainable growth in Sweden. SEK is 100% owned by the Swedish government. 2

3 Kingdom of Sweden Population: 10 million Surface: km 2 Capital: Language: Political system: Status in Europe: Currency: Stockholm Swedish, but English widely spoken Parliamentary democracy Inside EU, outside Euro Swedish Krona 3

4 Economy of Sweden Public debt to GDP Facts Rating: AAA/Aaa/Aaa GDP growth Q (qoq/yoy): 0.8% /3.9% GDP growth % GDP (2014): USD bn* GDP per capita: USD * 5 year CDS spreads Unemployment (Dec 2015): 7.1%** CPI/CPIF*** yoy (Dec 2015): 0.1%/0.9% Current Repo Rate: -0.50% *USD/SEK average 2014, ** seasonal adjusted, % of labour force *** CPIF = CPI with fixed mortgage rates Source: SCB, IMF, Macrobond 4

5 Swedish exports large part of GDP and well diversified Exports and imports Key export goods Machinery, 16% Auto, 15% Consumer goods, 13% IT & telecom, 11% Pulp & paper, 11% Materials, 10% Energy, 9% Construction, 8% Health care, 7% 5 Source: SCB, Macrobond

6 6 Well-known exporters

7 SEK has a complementary role in the market Our offering provides a complement to bank and capital market finance for exporters that want a range of different financing sources. SEK creates client value on market terms through its strong international network, extensive experience and expertise in export finance. 7

8 Our services Corporate lending Corporate lending for Swedish exporters Different currencies End-Customer Finance Export finance Project finance Customer finance tailored end-customer finance Trade finance receivables discounting Administration of the Swedish system for statesupported export credits. 8

9 The Swedish export credit system Exporter concludes the export contract Bank arranges the export credit The Swedish Export Credits Guarantee Board (EKN) insures risks SEK provides financing 9

10 Ratings AA+ (stable) The ratings on SEK reflect our opinion that there is an extremely high likelihood of extraordinary support for the company from Sweden (AAA/Stable/A-1+). Its capital and earnings position is very strong in our opinion. SEK is an important pillar for the success of Swedish exporters. October 2, 2014 Aa1 (stable) We view the probability of support as high in light of SEK s strategic public role and its 100% ownership by the Kingdom of Sweden, which reinforces the expectation of support in a distress scenario. The owner s support was clearly demonstrated through a direct capital injection and the creation of dedicated borrowing facilities to allow SEK to continue to fulfil its essential public policy role in March 24,

11 Sustainability framework Owner instruction Sustainability reporting Sustainability targets and strategies OECD Common Approaches OECD Convention on Combating Bribery IFC performance standards UN Global Compact UN Guidelines on Business and Human Rights 11

12 Funding and liquidity: No refinancing risk USD bn Loan facility with the Swedish National Debt Office Borrowing total, including shareholder's funds Lending with first possible pre-payment, including the CIRR-system As of December 31, 2015

13 Assets Derivatives and other assets Liquidity placements Total USD 33.6 bn Derivatives and other liabilities Agreed but undisbursed credits Credit portfolio Senior securities issued Subordinated capital Equity Liabilities & equity 13 As of December 31, 2015

14 Credit portfolio Credit portolio Demand for financing from the Swedish export industry increased dramatically during the financial crisis The Swedish government heavily increased SEK s lending capacity during the financial crisis SEK secured access to financing for the Swedish exporters USD bn New credits accepted USD bn Gross exposure Net exposure As of December 31, 2015

15 Counterparty exposures & risk mitigation Counterparty wxposures and ris mitigation Export credit agency guarantees 70% Bank guarantees 60% Credit derivatives Collateral agreements Insurance company guarantees 50% 40% 30% 20% 10% 0% Corporates Financial institutions incl. ABS and covered bonds Sovereigns (incl. local governments) Gross exposure Net exposure 15 As of December 31, 2015

16 Liquidity portfolio Investment profile Average duration of new investments: 8 months Maximum maturity: 18 months Minimum Rating: A 80% Maturing profile of SEK s liquidity portfolio 70% 60% 50% 40% 31 Dec Dec % 20% 10% 0% M 1 year 1 year < M 3 years M > 3 years 16 As of December 31, 2015

17 Funding: flexible and diversified New funding by region 2015 (2014) Multiple funding programmes in all major currencies Funding in local currencies Responsive to investor needs An experienced benchmark issuer Japan 37.0% (36.6%) North America 33.6% (26.3%) Europe excl. Nordic countries 15.6% (21.3%) Non-Japan Asia 5.9% (8.9%) Latin America 5.6% (2.5%) Middle East/Africa 1.7% (0.4%) Nordic countries 0.4% (2.8%) New funding by structure 2015 (2014) Oceania 0.3% (1.2%) Risk management policy: No currency risk Very limited interest rate risk All structured notes are hedged Plain Vanilla 48.7% (55.3%) Equity linked 38.6% (21.4%) FX linked 5.9% (14.8%) Commodity linked 5.2% (3.1%) Power Reverse Dual Currency 1.6% (3.1%) IR linked 0% (2.4%) 17 As of December 31, 2015

18 Diversified funding, by structure USD bn Plain Vanilla Equity linked Commodity linked FX linked IR linked Power Reverse Dual Currency Fund linked Subordinated debt 18 As of December 31, 2015

19 Diversified funding, by region Snior securities issued USD bn Japan North America Non-Japan Asia Europe excl. Nordic countries Middle East/Africa Nordic countries Latin America Oceania 19 As of December 31, 2015

20 Most impressive sovereign, supranational or agency borrower 2013 Most impressive sovereign, supranational or agency borrower 2014 Most impressive MTN borrower 2013 Global Issuer of the Year Landmark Deal JPY31bn ETF-Linked Note Most impressive MTN borrower

21 Capitalization and Profitability Equity Common Equity Tier 1 capital ratio of 21.6% as of December 31, % 10% Return on equity (IFRS) Leverage ratio of 5.4% as of December 31, 2015 Dividend policy: 30% of profit after tax to our owner 8% 6% 4% After-tax return on equity: 7.2% 2% 0% As of December 31, 2015

22 About SEK Owner: Swedish government, 100% Mission: Primary task: To ensure access to financial solutions for the Swedish export industry on commercial terms Financing of export credits Credit rating: S&P: AA+ /Stable/A-1+ Moody s: Aa1/Stable/P-1 Established: 1962 Financial information at December 31, 2015 Total assets USD 33.6bn Lending USD 24.6bn Common Equity Tier 1 capital ratio 21.6% After-tax return on equity 7.2% 22 As of December 31, 2015