SEB Financial Officers' Index: Increased uncert...

Uncertainty amongst Swedish financial officers has increased.
Compared to three months ago raw material costs have emerged as the
greatest concern while falling demand still dampens earnings growth
expectations. Despite these concerns, financial officers still expect
higher profits in 2008. However, a greater percentage of financial
officers now believe earnings growth will be driven by cost
reductions rather than volume increases.

Uncertainty amongst Swedish financial officers has increased.
Compared to three months ago raw material costs have emerged as the
greatest concern while falling demand still dampens earnings growth
expectations. Despite these concerns, financial officers still expect
higher profits in 2008. However, a greater percentage of financial
officers now believe earnings growth will be driven by cost
reductions rather than volume increases.


SEB's Financial Officers' survey, addressed to around 50 of  Sweden's
largest companies, shows respondents  remaining positive towards  the
overall business climate and their own company's financial  position,
although  slightly  less  so  compared  to  our  last  survey.  SEB's
Financial Officers' Index for May published today stands at 59,  down
from 60 in February, but well above its neutral level of 50.

"Despite positive indications concerning the business climate,
worries regarding raw material costs are increasing. More than a
third of financial officers now believe raw material costs pose the
greatest threat to company profitability in 2008", says Ebba Lindahl,
credit strategist at SEB and co-author of the report with Monica
Ochman.

The Financial Officers' survey also  shows a tendency towards  larger
price increases.

"One third of financial officers now expect their company to raise
prices by at least 3 per cent in the next six months compared to
around 20 per cent of respondents in February", says Ochman.

The overall message is however less clear with a third of financial
officers still expecting either unchanged or lower prices.

"A higher  proportion  of financial  officers  now expect  cost  cuts
rather than volume  increases to  drive earnings  growth this  year",
says Lindahl.

This is the ninth publication  of SEB's Financial Officers' Index,  a
unique quarterly  survey  whose  purpose is  to  reflect  changes  of
sentiment  in   the   financial  environment   and   facilitate   the
understanding of economic and financial trends. The survey  comprises
a total  of 15  questions covering  areas such  as business  climate,
strategic investments, employment, views  on currencies and  interest
rates, financial strength,  and lending  attitudes amongst  financial
institutions.  The  full   report  (in  Swedish)   is  available   at
www.sebgroup.com\press.


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For further information, please contact:
Ebba Lindahl, Trading Strategy, SEB, tel. [phone]
Elisabeth Lennhede, Press Officer, tel. [phone]