MIRA INFORM REPORT

Report Date :

22.02.2011

IDENTIFICATION DETAILS

Name :	AB SEB BANKAS

Registered Office :	Gedimino ave. 12, Vilnius, Vilnius region, Vilnius city municipality, LT-01103

Country :	Lithuania

Financials (as on) :	30.09.2010

Date of Incorporation :	29.11.1990

Com. Reg. No.:	112021238

Legal Form :	Public Joint-Stock Company

Line of Business :	Commercial and Stock Savings Banks

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate

Payment Behaviour :	Unknown

Litigation :	Exists

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – June 30, 2010

Country Name

Previous Rating

(01.04.2010)

Current Rating

(30.06.2010)

Lithuania

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Identification

Full Name

AB SEB bankas

Name in national language

AB SEB bankas

Trading Names, Brands

-	SEB VERSLO MENAS, SEB RATING, VB Telebankas, S E B VILNIAUS BANKAS
	Company owns about 20 registered trade marks.

Office address

Gedimino ave. 12, Vilnius, Vilnius region, Vilnius city municipality, LT-01103, Lithuania

Legal Address

Gedimino ave. 12, Vilnius, Vilnius region, Vilnius city municipality, LT-01103, Lithuania

Contacts

-	Phone	:	(+370 5) 268 2800
-	Fax	:	(+370 5) 268 2333
-	E-mail	:	info@seb.lt
-	WWW	:	www.seb.lt

company SUMMARY

Legal Form : AB (Public Joint-Stock Co. by Lithuanian law)

Incorporation : 1990

Staff : 2 050

Litigation events : yes
Remarks on payments : none

Sales :	525 911.00 th LTL ( for 9 months, ended 30.09.2010 )
	1 039 925.00 th LTL ( for 12 months, ended 31.12.2009 )

Credit Opinion

Credit Limit

Financial institution (bank). Financial institutions are not quoted

Incorporation

1990

Registration Data

Date of registration

29.11.1990

Registration number

112021238

Bank code

70440

Registr. authority

State Register (Vilnius, Vilnius region, Vilnius city municipality, Lithuania)

Date of registration

01.05.1994

VAT number

LT120212314

Registr. authority

Tax Board (Vilnius, Vilnius region, Vilnius city municipality, Lithuania)

Legal Form

AB (Public Joint-Stock Co. by Lithuanian law)		since 29.11.1990

Share Capital

1 034 575 341 LTL (registered)		since n/a

Shareholders

-	Skandinaviska Enskilda Banken AB (Sweden)	100.00 %

Board / Executives

Board

Chairman of the Supervisory Board

Knut Jonas Martin Johansson

Chairman of the board

Mr Kvedaras, Raimondas (Lithuania)

Member of the Supervisory Board

Carl Stefan Davill

Member of the Supervisory Board

Mark Barry Payne

Member of the Supervisory Board

Stefan Stignas

Member of the Supervisory Board

Ted Tony Kylberg

Member of the board

Mr Bernis, Roberts

Member of the board

Mr Cicelis, Aivaras

Member of the board

Mr Doveika, Virginijus

Member of the board

Mrs Matuseviciene, Ausra

Executives

President

Mr Kvedaras, Raimondas (Lithuania)

Vice President and Chief Credit Officer

Mr Bernis, Roberts

Vice President and Head of the Corporate Banking Division

Mr Cicelis, Aivaras

Vice president and Head of Retail Banking Division

Mr Doveika, Virginijus

Vice President and Head of Business Support Division

Mrs Matuseviciene, Ausra

Authorised signature

Mr Kvedaras, Raimondas

Changes in Registration Data

- 19.11.2010

shareholders

Change in number of shreholders

Activities

-	602	Commercial and Stock Savings Banks
		(NACE 6512: Other monetary intermediation)
	SEB Bank is the major commercial bank in Lithuania, offering a full range banking services to private individuals, corporate customers and financial institutions.

Staff employed

2 050 [E]

Staff History

-	2 150 [E]
	( the data as of 01.01.2010 )

-	2 150 [E]
	( the data as of 01.01.2009 )

-	1 950 [E]
	( the data as of 01.01.2008 )

-	1 660 [E]
	( the data as of 01.01.2007 )

-	1 600 [E]
	( the data as of 01.01.2006 )

-	1 330 [E]
	( the data as of 01.01.2005 )

Branches

-	Branch
	Company has about 60 Customer Service centers all over the Lithuania.

Subsidiaries and Participation

-	SEB Enskilda (Corporate Finance) (Lithuania)				100.00 %
		reg. number	:	221949450

-	SEB Venture Capital (Lithuania)				100.00 %
		reg. number	:	124186219

-	SEB Lizingas (Leasing) (Lithuania)				100.00 %
		reg. number	:	123051535

-	SEB Investiciju Valdymas (Asset Management) (Lithuania)				100.00 %
		reg. number	:	125277981

Bankers

-	AB SEB bankas (Lithuania)
	bank code	:	70440

Other associated Companies

SEB owned companies operating in Lithuania are SEB Gyvybes Draudimas, a life insurance company, Litectus, a Real Estate Holding company, and Skandinaviska Enskilda Banken AB, Vilnius Branch with the function of managing accounts of a certain part of SEB customers in Sweden.

Litigation

yes

Case number: 2-06-3-03967-2009-7 | 2-160-637/2011 Court: Klaipeda district court Instance: civil case Date: 2011-02-15 Case summary: statement of contract cancellation recognition as illegal Case parts: Defendant: "Jupojos investicine grupe"; Third person's: "Studija 33"; "Nemuno deltos projektai"; SEB bankas Case number: 2A-230/2011 Court: Lithuanian court of appeal Instance: civil case Date: 2011-02-15 Case summary: order and purchase contract annulment Case parts: Plaintiff: Lietuvos Respublikos generalinis prokuroras; Defendant: Lietuvos policijos departamentas prie VRM; Defendant: Lietuvos policijos logistikos centras; Third person: Lietuvos valstybe atstovaujama Lietuvos Respublikos Vyriausybes; Third person: AB SEB bankas Case number: 2-55-3-01694-2010-8 | 2-72-450/2011 Court: Vilnius district court Instance: civil case Date: 2011-02-15 Case summary: proper execution of the obligations Case parts: Plaintiff: "SEB bankas" Case number: 2-06-3-00046-2009-2 | 2-1311-513/2011 Court: Klaipeda district court Instance: civil case Date: 2011-02-15 Case summary: debt, penalty, interests and costs adjudgement Case parts: Plaintiff: SEB bankas Case number: 2-06-3-00046-2009-2 | 2-1101-360/2010 Court: Klaipeda district court Instance: civil case Date: 2011-02-15 Case summary: debt adjudgement Case parts: Plaintiff: SEB bankas; Defendant: "Kompletus"

Remarks on payment

none

No current are reported by the local debt collection companies.

Business mortgages

yes

According to official sources and our evaluation, the company required has commercial pledges. We can not provide details regarding the pledges.

Financial Elements

Period, months	9	12	12
Ended	30.09.2010	31.12.2009	31.12.2008
Currency	LTL th	LTL th	LTL th

Non-current assets	2 222 132.00	2 333 858.00	524 668.00
incl: - Fixed assets
- Financial assets
Current assets	19 815 616.00	21 718 732.00	25 305 829.00
incl: - Stock
- Debtors
- Cash
ASSETS TOTAL	22 037 748.00	24 052 590.00	25 830 497.00
Equity	1 659 191.00	1 421 030.00	2 258 437.00
incl: - Share capital
Liabilities Total	20 378 557.00	22 631 560.00	23 572 060.00
incl: - Long-term liabilities
- Short-term liabilities
EQUITY AND LIABILITIES TOTAL	22 037 748.00	24 052 590.00	25 830 497.00
Net sales	525 911.00	1 039 925.00	1 414 468.00
Cost of goods sold	367 247.00	734 983.00	833 230.00
Operating profit
Profit before taxation	-128 489.00	-1 730 627.00	393 361.00
Net profit	-112 093.00	-1 546 185.00	347 728.00

- - - - - - - KEY RATIOS - - - - - - -
Return on sales, %	-24.43	-166.42	27.81
Profit before taxation / Net sales
Operating margin of profit, %
Operating profit / Net sales
Return on investment, %	-7.74	-121.79	17.42
Profit before taxation / Equity
Current assets turnover	0.03	0.05	0.06
Net sales / Current assets
Working capital
Current assets - Short-term liabilities
Leverage	0.08	0.06	0.09
Equity / Total assets
Current ratio
Current assets / Short-term liabilities
Quick ratio
(Current assets - Stock) / Short-term liabilities
Debt-to-equity ratio	12.28	15.93	10.44
Total liabilities / Equity

Income range of the subject LTL (according to data of Statistics Dep-t): 1,000,000,001-2,147,483,647 /2008-01-02/ 700,000,001-900,000,000 /2005-12-31/ 500,000,001-700,000,000 /2004-12-31/ 200,000,001-300,000,000 /2003-12-31/ 11,000,001-13,000,000 /2002-12-31/ 400,000,001-500,000,000 /2001-12-31/ 500,000,001-700,000,000 /2000-12-31/

Publications

- 04.02.2011

Subject	:	http://www.seb.lt/pow/wcp/seblt.asp?lang=en&website=TAB4

2.According to preliminary data, unaudited net loss suffered over the year 2010 by SEB Bank is LTL 12,1 million (EUR 3,5 million) and by SEB Bank Group LTL 18,0 million (EUR 5,2 million). The result has been calculated in accordance with the requirements set by the acts of the Bank of Lithuania and legal acts of the Republic of Lithuania. Over the year 2009, audited net loss suffered by the Bank totalled LTL 1 546,2 million (EUR 447,8 million) and by the Group LTL 1 427,5 million (EUR 413,43 million). The result of the year 2010 of SEB Bank includes sale profit resulting from the transfer of shares of the Banks subsidiary companies SEB Gyvybes Draudimas and Litectus to SEB Group concluded in the first quarter of 2010. The result of the year 2010 of SEB Bank Group includes the result of Litectus in January and February; the result of SEB Gyvybes Draudimas is not included.

- 0002

Subject	:	http://www.seb.lt/pow/wcp/seblt.asp?lang=en&website=TAB4

SEB is a leading Northern European Financial Group providing banking services to nearly 400,000 companies and institutions, and nearly 5 million private individuals. Almost a half of SEB customers are the users of SEB e-banking services. SEB has its branches in Northern European and Baltic countries, Poland, Ukraine, Russia and Germany. Moreover SEB is represented through its international network in other 10 countries worldwide. The Group has a wide customer service network, which consists of 600 branch offices, and has about 20 thousand employees. The Group has a leader retail market position in Sweden, Estonia, Latvia and Lithuania. In Germany SEB group is seventh among the countrys largest banks. SEB is the leading banking service provider to large corporations and financial institutions in Northern Europe and the Baltic States. It provides financial services to 1,500 large corporations, 1,000 banks and 200 major institutions. The Group is a leader in areas, such as foreign exchange trading, cash management, equity research and private banking in Northern Europe. Furthermore, SEB is the market leader in the sector of payment cards in Nordic countries. The leader cards belong to well knowned brands like Euro card and Diners Club. SEB has a leading position in savings market and life insurance field. Moreover, it is the number one within unit-linked insurance markets in Sweden. SEBs shares are listed on OMX Nordic Exchange. Since 1997, SEB supports the Mentor Foundation and is actively involved in its activity with drug prevention measures for school pupils at the senior-level.

- 0001

Subject	:	http://www.seb.lt/pow/wcp/seblt.asp?lang=en&website=TAB4

Year 2010 SEB Bank has assigned all shares of its subsidiary company Litectus to company Warehold B.V., a member of SEB Group. SEB Bank has assigned all shares of SEB Gyvybes Draudimas to SEB group life insurance company SEB Trygg Liv Holding AB. Year 2009 M&A market magazine ACQ Finance being published in Great Britain elected company SEB Enskilda the Best M&A House in Lithuania. After SEB Group restructured business management and coordination in Lithuania, Latvia and Estonia, a new division called SEB Baltic, which is responsible for the above activities, is established. Global Finance elected SEB Bank the Best FX Bank/House in Lithuania, No.1 within Trade Finance in Lithuania and the Best Internet Bank for Retail and Corporate Customers. SEB Bank establishes a specialised real estate management company Litectus.

FINAL COMMENTS

	Information was received from all the sources available. Company's policy is not to dislose information to third persons. /Date: 15.02.2011, phone:(+370 5) 268 2800

COUNTRY REVIEW

COUNTRY REVIEW

LITHUANIA, Economy review, Ministry of Economy

Update October, 2010

GDP returned to growth on the second quarter of 2010 on rising exports and expandin

g industrial output. Yearly GDP growth became positive after six quarters of fall a

nd reached 1.3 per cent, whereas quarterly output was 3,2 % (seasonally adjusted).

GDP for 1-st and 2-nd Q 2010 made respectively (mill of EUR): 5945 and 7104.

Although output pace is not sustainable yet, it supports major Lithuanias governme

nt and financial institutions, consensus for 2010 to be slightly above zero. Notabl

e, that institutions, having much more reasons to be conservative than optimistic,

forecast GDP growth. Ministry of Finance forecasts 1.6 % GDP growth in 2010 (this i

s official Governments forecast of Lithuania GDP), while Bank of Lithuania expects

 0.5 % growth. SEB, the biggest player in Lithuanias bank industry, forecasts econ

omy will growth 1 %. International Monetary Fund forecasts 1.3 % growth in 2010.

Export of goods, the main driver of Lithuania economy, has been showing much better

 than expected figures for seven months in a row as compared with the same period o

f 2009. That amounted to annual rate of change of export (27,9 %) during January-Au

gust of 2010.

External trade

Export of goods, bln EUR:

2008        2009         1-st Q 2010        2-nd Q 2010

16.1        11.8             3.0               3.8

Imports of goods, bln of EUR:

2008        2009         1-st Q 2010        2-nd Q 2010

21.1        13.1             3.4               4.2

Notable, that export of Lithuania origin (goods made by Lithuania industry) that am

ounts to 80 % of total export of goods also increased. Annual rate of change in Jan

uary  August of 2010 was 25,6 % .

Industry has been gradually picking up over the course of 2010. At the beginning of

 2010, industrial production was still on decline in year-on-year terms while exter

nal demand was quite weak. Nevertheless, in August 2010 industrial production incre

ased by 10,9 % on an annual basis, of which manufacturing industry increased by 12.

8 In January-August, industrial production increased by 2.5 % on an annual basis. I

ndustrial enterprises now return to usual working time schedule and start restockin

g. The results of most of industrial branches (rubber and plastics, textiles and cl

othing, computer and electronic products, wood articles, furniture, metal products,

 refined oil products, food products, beverages) were notably better in the middle

of 2010 than at the beginning of the year.

Retail trade (except of motor vehicles, motorcycles and fuel) increased by 2.9 % in

 August month on month basis. Indicator was 6.4 % lower than August in 2009. In the

 January-March of 2010 annual rate of change was -17.7 %, -15.9 % and - 7.9 % .

Lending and interest rates. Average interest rate charged fr om non-financial corpo

rations for loans in litas was 4.8 % in August, whereas the same figure was at 5.2

in June and 7.3 per cent in January of 2010. Average loans in euros have remained s

table at 3.6 per cent since November of 2009.

Lending to business declined in August of 2010, as compared with previous month at

0.2 % and at 8.9 % as compared with corresponding period of 2009.

Although lending to business is still decreasing, so doing average interests charge

d for loans in LTL as well. That let us to conclude that national currency and ente

rprises are not so risky as in the end of 2009 in banks point of view.

Labour market. Unemployment rate made up 18.3% in the second quarter of 2010. The q

uarterly increase made up 0.2 percentage points only, while in the first quarter of

 2010 the increase made up 2.5 percentage points. Slower increase suggests imminent

 stabilization.

Unemployment rate in Lithuania was lower than in Latvia and Estonia, where it made

up 19.4 % and 18.6 %, accordingly (by Eurostat methodology).

Fiscal policy is maintaining its path. Income to state budget was higher than plann

ed by 8.4 percent during the January  August period.

In the 1st half-year of 2010 due to reduced expenditure, central government deficit

 (calculated on cash basis) was by LTL 645.6 million smaller as compared to the sam

e period in 2009 and made up LTL 4,062.2 million or 4.3% of GDP.

Strategic objective of the medium-term policy is further public finances consolidat

ion and essential improvement of the situation in the areas that can ensure economi

c breakthrough. Convergence Programme of Lithuania sets general government deficit

targets: for 2010  8.1 per cent of GDP, for 2011  5.8 per cent of GDP, for 2012

 3 per cent of GDP.

APPENDIX A

Financial Statements

Period, months	9	12	12
Ended	30.09.2010	31.12.2009	31.12.2008
Currency	LTL th	LTL th	LTL th

PROFIT AND LOSS ACCOUNT

I. SALES AND SERVICES	525 911.00	1 039 925.00	1 414 468.00

II. COSTS OF GOODS SOLD AND SERVICES	367 247.00	734 983.00	833 230.00
RENDERED
III. GROSS PROFIT (LOSS)	158 664.00	304 942.00	581 238.00
IV. OPERATING EXPENSES
IV.1 Expenses on sales
IV.2 Administrative and other expenses
V. OPERATING PROFIT (LOSS)
VI. OTHER OPERATIONS
VI.1 Revenue from other operations
VI.2 Expenses on other operations
VII. FINANCIAL AND INVESTMENT ACTIVITIES

VII.1 Revenue from financial and investing activities
VII.2 Expenses on financial and investing activities
VIII. BASIC ACTIVITY PROFIT (LOSS)	-128 489.00	-1 730 627.00	393 361.00

IX. EXTRA-ORDINARY PROFIT
X. EXTRA-ORDINARY LOSS
XI. PROFIT LIABLE TO TAXATION (LOSS)	-128 489.00	-1 730 627.00	393 361.00

XII. PROFIT TAX	16 396.00	184 442.00	45 633.00
XIII. NET PROFIT (LOSS)	-112 093.00	-1 546 185.00	347 728.00

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

BALANCE SHEET

ASSETS

A. NON-CURRENT ASSETS	2 222 132.00	2 333 858.00	524 668.00
I. INTANGIBLE ASSETS
I.1 Reseach and development costs
I.2 Goodwill
I.3 Rights obtained (licences, patents etc.)
I.4 Software
I.5 Other intangible assets
II. TANGIBLE ASSETS
II.1 Land
II.2 Buildings and constructions
II.3 Plant and equipment
II.4 Transport vehicles
II.5 Other fixtures, fittings, tools and equipment
II.6 Construction in progress and prepayments
II.7 Other tangible assets
III. LONG-TERM FINANCIAL ASSETS
III.1 Capital participation and investments in related
companies
III.2 Loans to subsidiaries and associated companies
III.3 Long-term accounts receivable
III.4 Other long-term finacial assets

B. CURRENT ASSETS	19 815 616.00	21 718 732.00	25 305 829.00
I. STOCKS AND CONTRACTS IN PROGRESS

I.1. Stocks
I.1.1 Raw materials and consumables
I.1.2 Work in progress
I.1.3 Finished products
I.1.4 Goods purchased for sale
I.2 Advanced payments
I.3. Contracts in progress
II. SHORT-TERM ACCOUNTS RECEIVABLE

II.1. Trade debtors
II.2 Loans to subsidiaries and associated companies
II.3. Other accounts receivable
III. OTHER CURRENT ASSETS
III.1 Short-term investments
III.2 Deposit accounts
III.3 Other current assets
IV. CASH IN HAND AND BANK ACCOUNT
TOTAL ASSETS	22 037 748.00	24 052 590.00	25 830 497.00

EQUITY AND LIABILITIES

C. CAPITAL AND RESERVES	1 659 191.00	1 421 030.00	2 258 437.00
I. CAPITAL
I.1. Authorized capital
I.2. Uncalled capital
I.3 Share premium account
I.4 Own shares
II. REVALUATION RESERVE
III. RESERVES
III.1. Legally prescribed reserevs
III.2. Non-distributable reserves
III.3. Other reserves
IV. RETAINED EARNINGS
IV.1 Profit (loss) from the current year
IV.2 Profit (loss) brought forward from previous years
D. FINANCING (GRANTS AND SUBSIDIES)

E. ACCOUNTS PAYABLE AND LIABILITIES	20 378 557.00	22 631 560.00	23 572 060.00
I. LONG-TERM ACCOUNTS PAYABLE
I.1 Financial loans
I.1.1 Leasing and other similar obligations
I.1.2 Amounts owed to credit institutions
I.1.3 Other financial loans
I.2 Trade creditors
I.3 Advanced payments under contracts in progress

I.4 Provisions
I.4.1 Liabilities repayment
I.4.2 Benefit and similar liabilities

I.4.3 Other provisions
I.5 Deffered taxes
I.6 Other accounts payable and long-term liabilities
II. SHORT-TERM LIABILITIES

II.1 Short-term portion of long-term debts

II.2 Financial debts
II.2.1 To credit institutions
II.2.2 Other loans
II.3 Trade creditors
II.4 Advanced payments under contracts in progress

II.5 Profit tax liabilities
II.6 Taxes, accrued payroll and social insurance payments

II.7 Provisions
II.8 Other accounts payable and short-term liabilities

TOTAL EQUITY AND LIABILITIES	22 037 748.00	24 052 590.00	25 830 497.00

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.11
UK Pound	1	Rs.73.25
Euro	1	Rs.61.70

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.

Identification

company SUMMARY

Financial Elements

COUNTRY REVIEW

Unit