A. COUNTRY DATA 1. Profile - Population 8.7 million (a) - Population growth rate 0.5 % - Religions Lutheran 95 %, other 5 % - Government system Constitutional monarchy - Language Swedish - Work week Monday-Friday, 8 a.m. to 4.30 p.m. 2. Domestic Economy (USD millions except where noted) 1993 1994(E) 1995(E) - GDP 185,800 188,400 199,200 (d) - GDP growth rate (%) -2.1 2.4 3.0 (d) - GDP per capita (U.S. $) 21,250 21,389 22,482 (d) - Government spending as % of GDP 73.6 68.9 66.1 (d) - Inflation (%) 4.7 1.6 2.7 (d) - Unemployment (% of work- force) 8.2 8.0 7.2 (d) - Foreign exchange reserves 22,500 n/a n/a (d) - Average exchange rate for USD 1.00 7.80 8.00 8.00 (d) - Foreign debt(E) 81,600 n/a n/a (d) - Debt service ratio (interest payments in relation to foreign income)* 1.8 n/a n/a (d) 3. Trade (USD millions except where noted) 1993 1994(E) 1995(E) - Total exports 49,775 54,901 59,183 (a,b) - Total imports 42,589 44,122 46,813 (a,b) - Exports (from the U.S.) 3,874 3,794 3,838 (a,c) - Imports (from Sweden to the U.S) 4,181 4,666 5,799 (a,c) - U.S. share of Swedish imports (%) 9.1 8.6 8.2 (a,c) Imports of manufactured goods 1993 1994(e) 1995(e) - Total (from all countries) 34,025 35,590 38,153 (a,b) - From the U.S. 3,437 3,416 3,510 (a,b) - U.S. share of manu- factured imports (%) 10.1 9.6 9.2 (a,c) - Manufactured goods trade balance with the U.S. +531 +557 +585 (a,c) - Projected average annual growth rate from world through 1996: 5.5 % (b,c) - Projected average annual growth rate from U.S. through 1996: 5.5 % (b,c) Imports of agricultural goods - Total (from all countries) 3,288 3,200 3,200 (a,c) - From the U.S. 248 250 250 (a,c) - U.S. share of agri- cultural imports 7.5 7.8 7.8 (a,c) - Agricultural goods trade balance with the U.S. -94 -100 -100 (a,c) Trade balance with three leading partners in 1993 Germany -463 (a) U.K. +1,093 (a) USA +306 (a) Principal U.S. exports Computer hardware, software and peripheral (H.S. 84.71) Aircraft and parts (H.S. 88.01 - 05) Electronic components (H.S. 85.42) Automotive products (H.S. 87.03 - 08) Medical equipment (H.S. 90.18) (a) Principal U.S. imports Automotive products (H.S. 87.03 - 08) Aircraft and parts (H.S. 88.01 - 05) Pharmaceuticals (H.S. 30.01 - 06) Telecommunications equipment (H.S. 85.17 - 18) Electronic components (H.S. 85.42) (a) Exchange rate used: 1 USD = 7.80 Sources: a) Swedish Central Bureau of Statistics b) Swedish Institute of Economic Research, Swedish Ministry of Finance c) Embassy forecasts d) Swedish Ministry of Finance, Central Bank, National Debt Office *) Only available in this form (from Central Bank) 4. Investment NET FOREIGN INVESTMENTS IN SWEDEN, 1990-1993 BY COUNTRY AND AREA (MILLIONS SEK, CURRENT PRICES) Country 1990 1991 1992 1993 Belgium 626 1,523 89 97 Denmark 250 4,034 1,052 1,907 Finland 1,793 1,545 978 3,009 France 1,505 12,507 1,608 344 Germany 2,346 2,841 1,750 837 Netherlands 438 11,843 10,632 2,565 Norway 747 2,094 682 1,041 Switzerland 18 314 37 1,944 United Kingdom 1,682 1,020 3,041 2,267 United States 903 -2,114 842 2,497 Other Countries 1,406 2,371 1,308 727 Reinvested Profits (all countries) 378 216 -3,578 864 GRAND TOTAL 12,092 38,194 -2,823 18,099 Total Nordics 2,790 7,673 2,712 5,957 Total EFTA 2,538 4,899 1,777 5,998 Total EC 6,896 33,970 -2,896 8,073 Total OECD 10,341 36,802 -144 16,631 Source: Central Bank, February 1994 NET FOREIGN INVESTMENTS IN SWEDEN, 1993 BY COUNTRY AND AREA PERCENTAGE SHARES OF TOTAL AND GDP 1993 (MIL. SEK) % SHARE OF TOTAL % SHARE OF GDP Belgium 97 0.54 0.0067 Denmark 1,907 10.54 0.1315 Finland 3,009 16.63 0.2075 France 344 1.90 0.0237 Germany 837 4.62 0.0577 Netherlands 2,565 14.17 0.1769 Norway 1,041 5.75 0.0718 Switzerland 1,944 10.74 0.1341 United Kingdom 2,267 12.53 0.1563 United States 2,497 13.80 0.1722 Other Countries 727 4.02 0.0501 Reinvested Profits all countries 864 4.77 0.0596 GRAND TOTAL 18,099 100.00 1.2482 Total Nordics 5,957 32.91 0.4108 Total EFTA 5,998 33.14 0.4137 Total EC 8,073 44.60 0.5568 Total OECD 16,631 91.89 1.1470 Source: Central Bank, February 1994 DIRECT FOREIGN INVESTMENT IN SWEDEN, 1991-1993 BY SECTOR (1) (MILLIONS SEK) Sector 1991 1992 1993 Agriculture, Forestry, Fishing 0 0 0 Mining & Quarrying 2 19 96 Manufacturing 26,493 -6,083 9,156 Of Which: Food, Beverages, Tobacco 449 4 2,809 Textiles, Clothing, & Leatherwear 407 68 19 Wood Products 5 34 40 Pulp & Paper; Printing 83 -57 1,575 Chemicals, Etc. 728 1,879 3,629 Non-Metallic Mineral Prods. 4 104 1,252 Metal Production 1,546 1,610 10 Machinery & Equipment 23,271 -9,743 -180 Other 1 19 1 Public Utilities 1,938 0 51 Construction 240 44 934 Wholesaling; Hotels & Restaurants 1,602 1,771 2,919 Transportation Post, & Telecom 434 375 1,178 Banking, Insurance, Real Estate 6,124 3,229 2,098 Of Which: Banks & Other Fin. Inst. 93 -722 1,948 Insurance 3,533 1,977 -1,907 Real Estate & Business Services 2,498 1,954 2,058 Public Administration -15 517 250 Undistributed 1,160 893 551 Reinvested Profits (2) 216 -3,578 864 GRAND TOTAL 38,194 -2,823 18,099 (1) By the organizations to which the firms are affiliated. (2) Not distributed by sector, not included in totals. Source: Central Bank, February 1994 DIRECT FOREIGN INVESTMENT IN SWEDEN, 1993 BY SECTOR (1) PERCENTAGE SHARES OF TOTAL AND GDP 1993 (MIL. SEK) % SHARE OF TOTAL % SHARE OF GDP Agriculture, Forestry, Fishing 2 0.01 0.0001 Mining & Quarrying 96 0.53 0.0066 Manufacturing 9,156 50.59 0.6314 Of Which: Food, Beverages, Tobacco 2,809 15.52 0.1937 Textiles, Clothing, & Leatherwear 19 0.10 0.0013 Wood Products 40 0.22 0.0028 Pulp & Paper; Printing 1,575 8.70 0.1086 Chemicals, Etc. 3,629 20.05 0.2503 Non-Metallic Minerals 1,252 6.92 0.0863 Metal Production 10 0.06 0.0007 Machinery & Equipment -180 -0.99 -0.0124 Other 1 0.01 0.0001 Public Utilities 51 0.28 0.0035 Construction 934 5.16 0.0644 Wholesaling; Hotels & Restaurants 2,919 16.13 0.2013 Transportation , Telecom. 1,178 6.51 0.0812 Banking, Insurance, Real Estate 2,098 11.59 0.1447 Of Which: Banks & Other Fin. Inst. 1,948 10.76 0.1343 Insurance -1,907 -10.54 -0.1315 Real Estate & Business Services 2,058 11.37 0.1419 Public Administration 250 1.38 0.0172 Undistributed 551 3.04 0.0380 Reinvested Profits (2) 864 4.77 0.0596 TOTAL 18,099 100.00 1.2482 (1) By the organizations to which the firms are linked. (2) Not distributed by sector, not included in totals. DIRECT FOREIGN INVESTMENT IN SWEDEN STOCK FIGURES BY COUNTRY, 1993 PERCENTAGE SHARE OF TOTAL AND GDP 1993 (BIL. SEK) % SHARE OF TOTAL % SHARE OF GDP Switzerland 17 17.0 1.18 Norway 13 13.0 0.90 United States 12 12.0 0.83 France 11 11.0 0.76 Netherlands 10 10.0 0.69 Germany 10 10.0 0.69 Finland 8 8.0 0.56 Denmark 7 7.0 0.49 Other Countries 12 12.0 0.83 TOTAL STOCK 100 100.0 6.94 OECD 100 100.0 6.94 EU 46 46.0 3.19 Nordics 28 28.0 1.94 DIRECT FOREIGN INVESTMENT IN SWEDEN STOCK FIGURES BY SECTOR, 1992 PERCENTAGE SHARE OF TOTAL AND GDP Credit Institutions 1992 (BIL. SEK) % SHARE OF TOTAL % SHARE OF TOTAL Banks 2 2.00 0.14 Insurance 4 4.00 0.28 Other Institutions 0 0 0 Non-Credit Institutions Manufacturing 49 49.00 3.40 Services 39 39.00 2.71 Other Sectors 6 6.00 0.42 TOTAL STOCK 100 100.00 6.941 NET SWEDISH INVESTMENTS ABROAD, 1990-1993 BY COUNTRY AND AREA (MILLIONS SEK, CURRENT PRICES) Country 1990 1991 1992 1993 Belgium 1,282 -231 1,181 -1,225 Denmark 680 744 1,272 673 Finland 1,218 -580 163 2,699 France 2,476 18,652 -1,094 1,543 Germany 16,162 836 -7,309 -1,494 Ireland 10,579 131 -733 -1,741 Italy -238 148 28 5,517 Netherlands 9,594 5,240 -6,471 -1,532 Norway 1,839 2,523 708 -806 United Kingdom 20,696 3,827 11,746 4,246 United States 3,246 2,730 3,013 -133 Other Countries 6,149 3,280 507 1,954 Reinvested Profits all countries 12,064 5,070 2,518 5,747 TOTAL 85,747 42,370 5,529 15,448 Total Nordics 3,737 2,702 2,141 2,566 Total EFTA 2,278 2,881 1,303 2,413 Total EC 63,109 29,971 -2,638 5,884 Total OECD 69,004 35,270 1,882 8,174 Source: Central Bank, February 1994. Major Foreign Investors The dynamics of incoming FDI (and outward investment) are reflective of market forces and impossible to capture in a "static" list or table. We nonetheless submit the following presentation of major foreign acquisitions of Swedish firms and Swedish acquisitions of foreign firms in 1993, prepared by the Corporate Finance Department of KPMG Bohlins AB in early 1994.