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

Ainārs Ozols, Head of SEB in Latvia

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

2%

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! Your questions?Allan Parik, Head of Corporate Banking in Baltic

Ainārs Ozols, Head of SEB in Latvia