Exhibit 2
AB Svensk Exportkredit
Certain non-IFRS Financial Measures used in the Interim Report
for the Six-Month Periods Ended June 30, 2008 and 2007
Core Earnings
We have disclosed for the six-month period ended June 30, 2008 and 2007 Core Earnings, which is a non-IFRS financial measure derived from our consolidated Operating profit under International Financial Reporting Standards (IFRS). Management believes Core Earnings better reflects the impact of the economic hedge relationships on SEK’s activities by eliminating that portion of Net results of financial transactions that arises from changes in fair value related to financial assets except held-for-trading securities, financial liabilities and related derivatives. SEK seeks to ensure that these assets and liabilities are economically hedged as to interest rate, currency and any other risk with the result that SEK does not expect to book realized gains or losses on these items.
Accordingly, SEK believes that it is appropriate to have a measure of its operating performance for a financial reporting period that ignores changes in the values of these assets and liabilities during that period.
Core earnings for the six months ended June 30, 2008 and 2007 is derived from IFRS as follows:
|
| 6 months ended June 30, |
| ||
|
| 2008 |
| 2007 |
|
|
| (Skr million) |
| ||
Consolidated Operating profit reported under IFRS |
| 466.3 |
| 265.6 |
|
Less: changes in fair value related to financial assets except held-for-trading securities, financial liabilities and related derivatives, reported as part of Net results of financial transactions — see note 2 to the unaudited financial statements included in the Report |
| (85.1 | ) | 19.0 |
|
Core Earnings |
| 381.2 |
| 284.6 |
|
Return on equity (Core Earnings)
SEK has also disclosed pre-tax and after-tax returns on equity on the basis of Core Earnings. In calculating equity for this purpose, we have disregarded equity attributable to reserves carried against those assets whose changes in values are deducted from operating profit to reach Core Earnings.
|
| 6 months ended June 30, |
| ||
|
| 2008 |
| 2007 |
|
|
| SKR million (except %) |
| ||
Total opening balance of equity in accordance with IFRS |
| 4,496.5 |
| 4,250.7 |
|
Less: After-tax adjustments at transition to IFRS: Effects of changes in fair value at January 1, 2007 |
| (60.5 | ) | (60.5 | ) |
Less: Accumulated after-tax change in market valuation according to IFRS after January 1, 2007 |
| 19.2 |
| n.a. |
|
Less: After-tax changes in reserves after January 1, 2007 |
| 107.2 |
| n.a. |
|
|
| 4,562.4 |
| 4,190.2 |
|
Pre-tax Core Earnings (annualized) |
| 762.4 |
| 569.2 |
|
Pre-tax return on equity (Core Earnings) |
| 16.7 | % | 13.6 | % |
Net profit (Core Earnings): Pre-tax Core Earnings, less effect of 28% standard tax rate (annualized) |
| 548.9 |
| 409.8 |
|
After tax return on equity (Core Earnings) |
| 12.0 | % | 9.8 | % |