Baltic CFO Survey 2014 Allan Parik, Head of Corporate Banking in Baltic

Background of the survey

• Conducted for the first time by SEB

• Conducted by SEB/Deloitte also in Sweden for a couple of years

• Around 200 customers with turnover above 20 million euros in Baltics have

participated

• Survey was conducted during end February/beginning of March

2014-04-08 | BALTIC CFO SURVEY 2014

Pragmatic view on future business conditions

7%

3%

8%

10%

42%

41%

33%

53%

49%

52%

57%

37%

3%

2%

0%

Not so favourable Average Favourable Very favourable

Baltic

| BALTIC CFO SURVEY 20142014-04-08

Assessment of business conditions in the next 6 months of the company

The crises has helped to «clean the house»

Baltic 8%

3%

10%

12%

23%

24%

20%

24%

59%

61%

61%

54%

10%

11%

8%

10%

Not so favourable Average Favourable Very favourable

| BALTIC CFO SURVEY 20142014-04-08

Assessment of the overall financial position of the company

Financial stability might be also impacted by positive cooperation with banks

Baltic 8%

8%

8%

7%

21%

21%

20%

22%

56%

60%

57%

49%

15%

11%

14%

22%

Not so favourable Average Favourable Very favourable

| BALTIC CFO SURVEY 20142014-04-08

The lending attitude of financial institutions towards the company

Demand in the future is the greatest concern

53%

42%

17%

24%20%

12% 12%8%

55%

24%27%

31%

18%14%

6%

14%

44%

22% 29%19% 19%

23%

19%

3%

Estonia Latvia Lithuania

Demand Labor cost Cost of raw material

/ commodities

Skilled labor

shortage

Foreign competition Access to

capital

Interest

rates

Exchange

rates

| BALTIC CFO SURVEY 20142014-04-08

Greatest concerns for the companies in 2014

Rather stable or max 10% increase for cash flow

3%

2%

4%

3%

8%

7%

8%

8%

24%

23%

18%

29%

47%

47%

47%

47%

18%

20%

22%

12%

Increase by more than 10% Increase by 0-10%Remain unchanged from current levels Decline by 0-10%Decline by more than 10%

Baltic

| BALTIC CFO SURVEY 20142014-04-08

Cash flow changes in the company over the next 12 months

Future perspectives influence the increase of employees

Baltic 8%

4%

6%

15%

59%

59%

51%

66%

33%

37%

43%

19%

Decline Be unchanged Increase

| BALTIC CFO SURVEY 20142014-04-08

Changes in the number of employees in the company in the next 6 months

New investments vs paying down debts

12%

10%

10%

15%

4%

13%

27%

24%

38%

22%

10%

10%

4%

15%

44%

47%

35%

47%

Dividend to shareholders Financial investments abroadFinancial investments in your domicile country Pay down debtStrategic investments abroad Strategic investments in your domicile country

Baltic

2%

4%

5%

| BALTIC CFO SURVEY 20142014-04-08

The usage of current cash surplus in the next 6 months

77% of large companies believe Baltic competitiveness has improved

Baltic 7%

8%

2%

10%

16%

8%

24%

20%

77%

84%

73%

69%

Worsening No change Improving

| BALTIC CFO SURVEY 20142014-04-08

Competitiveness of the Baltic economies versus the European economy in 2020

The future of the European economy in 2020

Baltic 15%

10%

29%

10%

18%

16%

8%

29%

68%

74%

63%

61%

Negative No change Positive

| BALTIC CFO SURVEY 20142014-04-08

Companies are having rather different view on geographical balance

Baltic 34%

40%

37%

24%

29%

31%

24%

29%

37%

29%

39%

47%

Narrowing No change Widening

| BALTIC CFO SURVEY 20142014-04-08

Outlook on the imbalance between the north and the south of Europe in 2020

Thank you! Allan Parik, Head of Corporate Banking in Baltic