1 November 2007

2 What is Swedfund? Swedish interest Partner (often Swedish company) Swedfund Swedfund’s mission is to stimulate development on local markets through the private sector and also to promote Swedish interests.

3 Short facts about Swedfund OwnerThe Swedish state, 100 % Number of employees 25, of which 10 investment managers and 3 lawyers Investment portfolio - Currently 67 investments in 31 countries - Since the start in1979, Swedfund has done more than 180 investments Investment horizon years Other - Clear ethical and environmental guidelines in every investment Geographic focus Africa 43 %, Eastern Europe 33 %, Asia 17 %, Latin America 7 %

4 Business model Swedfund Industrial partner Portfolio company MSEK 5 – 130 per investment Same or lower risk than industrial partner Swedfund’s stake is typically 30 % of total investment Swedfund always minority owner Active board participation if Swedfund invests in equity Investment horizon 5-7 years Invests

5 Swedfund offers risk capital and competence Swedfund Capital Equity, Convertibles Secured mortgages Royalty loans Guarantees Competence Finance Legal assistance Knows local markets International network Credibility – the Swedish state Industrial partner Sector know-how Commercial product Financial resources and management

6 Swedfund has an efficient investment process Time 2 weeks4 weeks2-4 weeks2 weeks Output Assessment if possible - Market - Management - Financials - Size - Etcetera In-depth analysis of relevant aspects Independent assessment of financials, legal aspects etcetera Decision by Swedfund’s board based on screening and due diligence Total investment process around two months ScreeningDue diligenceBoard decision process Initial assessment

7 Swedfund in Russia – a few examples InvestmentSectorPartner Volgastrap Melon Fashion Group Pervomayskaya Zarya Min o Min Advakom Nordrus Hotel Holdings LCC Nordvod Teligent Steel strap production Retail / fashion Business centre Retail / haircare Subsupplier IT/Telecom Hotel Water treatment Telecom Specta Group Kellermann /East Cap Kellermann/East Cap Min o Min, Scope Capital Private investors Rezidor SAS Hospitality Skanska/NCC Teligent

8 Steel strap production in Kostroma, Russia Volgastrap, Russia Steel strap production for industrial clients (2005) Industrial partner: Specta Group AG Total investment: 19.1 MEUR Secured loans 11.7 MEUR (SF, FF, IMB) Equity 7.4 MEUR (Specta, SF, FF*) SF=Swedfund, FF=Finnfund, IMB=International Moscow Bank

9 Swedfund is increasing its focus on energy efficiency and renewables Only investments in non-public companies Joint Venture with public company possible Swedish interest in terms of equipment almost always necessary As usual, Swedfund’s stake part of financing not more than % Equity financing priority Characteristics

10 Possible scenario – example 1 VodokanalSwedfund New production company (bio-gas) 65 % equity*35 % equity * In-kind contribution partly possible Loan financing, bank or other Equipment Swedfund’s exit e.g., through buy-back of shares or exit through partner (Vodokanal)

11 Possible scenario – example 2 Local, private company New production company (bio- diesel) 60 % equity 20 % equity * In-kind contribution partly possible Loan financing, bank or other Swedish equipment Swedfund’s exit e.g., through trade sale or exit through local partner Industrial expertise of local company, crucial Swedfund 20 % equity Other investor

12 Possible scenario – example 3 Your project?