Value 2022 ENG by Value-SEB

VA L U E

Private Wealth Management & Family Office

Editorial

Value 2022

New perspectives The world is getting closer to us – and SEB is getting closer to the world. It is clearer than ever how closely our everyday lives are integrated, not just with our immediate surroundings, but with all corners of the earth. Digital development, the transition to a more sustainable society and the fight against the spread of infection are relevant across all borders. With this in mind, SEB Private Wealth Management & Family Office is taking new steps. We have expertise and competence all over the world. We work ever closer together in the Nordic region and at our international bases in Luxembourg, Germany, Singapore and the United Kingdom. This is to best meet your complex needs and play our part in the new global reality. For example, our presence in France will grow, with a new representative office in Nice opening in spring of 2022. New perspectives also permeate this year’s Value. In this issue, we look at a 2022 where an increasing number of different fields are intersecting and changing previous notions of what drives development forward. We meet several inspiring entrepreneurs, including The Humble Co.’s founder Noel Abdayem, who with his bamboo toothbrush has impacted a global industry that annually sells billions of toothbrushes made of plastic. We also emphasise the importance of philanthropy, foundation work and social entrepreneurship, an area increasingly important to many and a driving force in our new reality. We look at how trends, developments and innovations are transforming our society – from how we live to how we can experience contemporary art in new ways with the help of digital technology. You can also read how one range of food is becoming a new business, and be inspired by sustainable Nordic architecture. And you do not want to miss our meeting with a South African superstar, Professor Mamokgethi Phakeng, who believes that access to education is the key to her country’s development. We hope to inspire you with new perspectives, exciting opportunities and give you several moments to enjoy content that takes you further. Happy reading!

William Paus, Executive Vice President SEB, Head of Private Wealth Management & Family Office Division

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Value 2022

Daniel Fagerström, Marketing Business Partner, Private Wealth Management & Family Office

Johan Fredriksson, Design Director SEB

“ Now we are betting on even more content” The idea behind Value is to offer something extra of the physical and tactile. Today, most communication is digital and our everyday lives are spinning faster and faster. Being able to take the time to sit down and read a magazine – printed on paper – has become something exclusive and valuable. Value is permeated by SEB’s core values and characterised by the bank’s deep accu mulated knowledge in the form of our expert contributors. The magazine is also an invest ment in quality and journalism. Through editorial research, we delve into a number of relevant topics and trends – external moni toring that is part of our offer to you.

As a customer of SEB Private Wealth Management & Family Office, you receive this printed magazine each year, where you can read about everything from finance to science, trends and sustainability. Our experts also answer questions on law, security, taxes, investments and more, and they explain new market pheno mena and interesting events happening in our world. “Now we are betting on even more highquality content, with an extra thick magazine and a new podcast for our main Swedish target group that will follow up on topics from the magazine,” says Daniel Fagerström,

responsible for Value at SEB. “Our ambition is to develop such valuable and high-quality content for our English-speaking customers as well in the future.” Value magazine should also be a pleasure to look at. This issue begins and ends with a beautiful work of art by the Swedish artist Linnéa Andersson, known for her character istic and personal design language. “The idea of starting and ending the maga zine with a work of art is to break through the usual noise and offer some breathing space before what you are going to read,” says Johan Fredriksson, Design Director SEB. Art makes us stop, reflect and unite.

Value Wins Awards Value is not only appreciated by our customers, the magazine has also attracted attention in several competitions and won two notable prizes last year. Value won silver in the Swedish Publishing Prize 2021, in the Customer Magazine category and also took home the gold medal in the Swedish Design Prize 2021, in the Editorial Print: Customer Magazine category. In giving the prestigious prize, the jury wrote: “For a safe investment in qualitative design – which gives a return of the highest value.”

“Design should appeal to the emotions and create a relationship between our brand and our customers.” Johan Fredriksson, Design Director SEB.

PHOTO: HILDA GRAHNAT

Art

Value + Linnéa Andersson This issue of Value begins and ends with a work of art by the Swedish artist Linnéa Andersson, known for her singular and personal design language. Her roots are in the Swedish design tradition and she has studied at the University of Design and Crafts in Gothenburg, but it was not until she tried graffiti painting that she felt she started to paint for real. “The leaf patterns I painted then began to have a life of their own, managing to show up on everything from blankets and trays to wallpaper – and make their way into the homes of people I do not know. It feels lovely that my paintings have become popular.” In recent years, Linnéa Andersson has collaborated with Swedish home and fashion brand ARKET, resulting in wool blankets with her patterns from Swedish textile producer Klippan. Linnéa Andersson is inspired by psychedelic patterns from the 1960s and 1970s, and also by the colours that were popular during that time period. “I am also influenced by forms from the plant kingdom, such as leaves and flowers, which I find exciting because I can modify them with limited means.”

Linnéa Andersson’s art can be bought at POM Gallery in Mariefred, outside Stockholm

The artwork that Linnéa Andersson has created for Value is inspired by a classic camouflage pattern. A flirtation with a pattern that pretty much everyone has a relationship with, but which gets a different perspective and becomes something new and delicate in her hands. “I rarely know what will happen when I put the brush down on paper. My artwork allows me to experiment – and I sometimes feel like a chemist messing around with painting. My art is a constant exploration.”

SEB Private Wealth Management & Family Office

detailed information before taking such decisions. Neither the material nor the products described herein are intended for distribution or sale in the USA or to persons resident in the USA, to so-called US persons, and any such distribution may be unlawful. These financial instruments can also be limit ed in other jurisdictions. More informa tion such as fact sheets, information brochures, prospectuses, marketing brochures and/or product sheets are often available at www.seb.se. You can also obtain this information free of charge from your advisor at SEB. Information about taxation As a customer within international Pri vate Banking/Private Wealth Manage ment & Family Office, you are obliged to keep yourself informed of the tax rules with respect to bank accounts and financial transactions applicable in the countries of your citizenship, residence or domicile. As and when required, please request appropriate tax advice from relevant professionals

before initiating financial transactions. You must yourself provide relevant authorities with information as and when required. For UK residents Skandinaviska Enskilda Banken AB (publ) is authorised and regulated by the Swedish Financial Supervisory Authority. Deemed authorised by the Prudential Regulation Authority. Subject to regulation by the Financial Conduct Authority and limited regu lation by the Prudential Regulation Authority. The nature and extent of consumer protections may differ from those for firms based in the UK. Details of the Temporary Permissions Regime, which allows EEA-based firms to operate in the UK for a limited period while seeking full authorisation, are available on the Financial Conduct Authority’s website. N VA

ENMÄRK

E T

This magazine is produced by SEB and contains general marketing informa tion. SEB is the global brand name of Skandinaviska Enskilda Banken AB (publ) and its subsidiaries and branches. SEB is authorised and regulated by the Swedish Financial Supervisory Authority, Finansinspektionen. Although the content is based on sources judged to be reliable, SEB will not be liable for any omissions or inac curacies, or for any loss whatsoever which arises from reliance on it. For financial instruments, including funds, historical returns are no guarantee for future returns. The value of financial instruments can both rise and fall and it is therefore not certain that you will get back all the invested capital. Investment products produce a return linked to risk. Where either you or the underlying funds invest in funds or securities denominated in a foreign currency, changes in exchange rates can impact the return. You alone are responsible for your investment decisions and you should always obtain

Publisher: SEB Address: SEB, Private Wealth Management & Family Office, Kungsträdgårdsgatan 8, 106 40 Stockholm, Sweden Telephone: +46 (0)771-62 10 00 E-mail: valuemagasin@seb.se Website: www.sebgroup.com Change of address: Send your new address to your service coordinator Editor and responsible according to Swedish press law: Daniel Fagerström Production: Spoon Project managers: Jessica Johansson, Anna-Karin Storwall Creative director: Johan Fredriksson Art director: Niklas Thulin Cover photo: Samuel Unéus Cover subject: Noel Abdayem Printer: Trydells Tryckeri AB, Laholm Publication date: February 2022

Trycksak 3041 0091

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Value 2022

Contents

Live and invest The new city takes shape

Society Commitment that makes a big difference

Outlook Asia Strategy manager for SEB in Asia is scouting the region

Retrospective The investment clock started ticking again last year

South Africa Knowledge is power, says one of Africa’s most influential women

14 Sustainability Raising the level of ambition at SEB

16 Leadership Family-owned businesses at the forefront of gender equality

Art Technology takes art to a whole new level

Noel Abdayem The underdog who put the bamboo toothbrush on the map

Food of the future Plant-based innovations create new business

Career Investing in talents of the future

Architecture Wood is always in fashion

Interview Super-entrepreneur Henrik Persson Ekdahl is investing in South African tech

36 Entrepreneurship Swedish entrepreneurs with passion for their business ideas

44 Generational change The benefits of staying family-owned

Travel Discover the unknown islands of the Nordic region

82 E-currency What’s really happening with the Swedish e-krona?

86 Insight Investment trends the world needs

92 Answer from an expert How to invest in a company on its way to a stock market introduction

96 New place in town SEB opens an office in Nice

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Living

Investing

Housing

ILLUSTRATION: EMMA SVENSSON

The term “15-minute city” was coined by innovation professor Carlos Moreno at the Sorbonne in Paris. The aim is to make cities more comfortable and smart to live in.

PHOTO: EMMA SVENSSON

The new city

The city centre is on its way to being hollowed out and we are moving further out to suburbs and more rural locations. But cities are not dying. Rather, the logic for urban areas is about to be reshaped, says researcher and economist Kjell A Nordström. TEXT: ANNA-KARIN STORWALL

We are undergoing a process with a new direction. While over the last hundred years people have flocked to cities to a degree we had never seen before, nowadays it is the ring around the city that seems to be filling up with people at an ever-increasing rate. At the same time, shops, restaurants and offices in the middle of the city centre are closing as the influx of people loses momentum and the new city takes the form of the classic deep-fried and hollow treat that gives its name to what is known as the “doughnut effect.” The result in the housing market has been sharp price increases in suburbs and holiday spots, while home prices in the central parts of large cities have been more stable. “The trends actually existed before Covid-19, but the pandemic has really accelerated this development, as restrictions and demands to work from home quickly changed our way of life,” says Swedish researcher and economist Kjell A Nordström, who together with lecturer and former Swedish Foreign Minister Per Schlingmann discussed the new world after the virus, not least regarding changing cities, in the book Corona Express. There are no dire predictions of death for the world’s big cities, however. Instead, cities need to reinvent themselves to maintain their attractiveness and defeat pollution, stress and congestion. In Paris, Mayor Anne Hidalgo is pushing the concept of the “15-minute city,” and major cities in Europe are catching on in increasing numbers. The idea is that it should take no more than 15 minutes to get from your home to school, work, shopping and other urban experiences on foot or by bike. You are expected to leave your own “village within the city” only once a week. A completely different logic will be required in construct ing the so-called doughnut city. Offices are becoming more decentralised and there is a need for increased flexibility in transportation systems, with expanded public transport and micro-transport solutions, such as electric scooters. Companies that are enterprising in these areas have great business opportunities. Just think how a property developer can identify and create new, attractive areas, says Kjell A Nordström. •

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Living

Investing

Home 2.0 The pandemic markedly accelerated and created new patterns in demand in the housing market, including for premium housing. But what happens when life returns to normal? TEXT: ANNA-KARIN STORWALL

PHOTO: SOTHEBY’S INTERNATIONAL REALTY

Wanted: space, more secluded locations and sustainable solutions. When the economy worldwide immediately dipped in response to the initial advance of the corona pandemic, many expected the housing market to dip as well. But quite the opposite occurred. We demanded larger accom modations with space for home offices, further from the city as we worked from home, with better opportunities to enjoy home life and increased demand for more sustainable housing from an environmental point of view. This was true particularly in the premium housing segment: dream homes in prime locations and with the highest price tags. According to Lars Andersson, CEO of Skeppsholmen Sotheby’s Interna tional Realty in Sweden, the price increase was greater in the premium segment compared with ordinary homes. “In general, we could see that the pandemic reinforced an already previous trend that well-to-do households of all ages have the desire to buy and develop not just one dream home, but often several,” he says. In the first stage, it showed up in the increased demand for exclusive holiday homes in Sweden. “When many with a second home abroad panicked slightly about being unable to go to their homes in Spain or France, they quickly and decisively bought the finest holiday homes available on our domestic market,” says Lars Andersson. Today the situation is partly different. We can gradually start traveling again, albeit with increased caution, and in the overall housing market, the rise in prices has slowed. However, this development does not apply to premium housing, says Lars Andersson, where a stable stock market has had the greatest impact on price development. “For normal households, prices in many markets are starting to be strained. In the upper premium segment, however, new fortunes are still being created daily, while the push to live really well continues to increase in all age groups. Our latest price record in Skåne was made possible by a buyer in his eighties who sold his life’s work and wanted to realise his dream home,” says Lars Andersson. •

Lars Andersson is CEO of Skeppsholmen Sotheby’s International Realty in Sweden, part of the global premium real estate chain Sotheby’s International Realty, and a partner of SEB.

Housing

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Transformation

Sustainability

SEB

Hans Beyer, Chief Sustainability Officer, SEB

Raising ambitions for SEB’s sustainability work We are convinced that a sustainable society is economically beneficial for all our stakeholders and for society at large. With our updated sustainability strategy, we raise the level of ambition further and take the next step to accelerate the transition to a more sustainable future. We face major challenges on the road to transi tioning to a more sustainable society. SEB wants to be a driving force and leading catalyst in this transition. Our sustainability strategy, presented in Nov ember 2021, describes our role in the transition as well as our ambitions and goals. It is part of SEB’s business plan for 2022–2024 and a cornerstone of our strategy for 2030. With increased focus on climate-related issues, the sustainability strategy clarifies SEB’s role in this transition. SEB has defined three new ambitions and goals: The Brown – index that describes how SEB will reduce its fossil fuel credit exposure in the energy portfolio by 45–60 percent by 2030 (base year 2019). The Green – index that measures the develop ment within our sustainability activities related to financing, advice, savings and greentech venture capital investments. The Future – describes how SEB’s credit portfolio is developing from a greenhouse gas emission per spective. We use an internally developed sustaina bility classification model to assess our corporate customers’ climate impact and alignment with the goals set out in the Paris Agreement, thereby classi fying our credit portfolio.

economy and we want to enable companies and individuals to make choices that contribute to a sustainable society. Our advice is based on understanding the needs, opportunities and challenges that our customers face. We strive to proactively offer solutions that we identify as relevant for them. A prerequisite for this to succeed is that we have a common understanding of the way forward. We at SEB have adopted and support a number of global corporate initiatives and international codes of conduct and have signed frameworks that guide us in our work. These include the Paris Agreement, the UN’s Sustainable Development Goals, as well as the Principles for Responsible Banking and the Task Force on Climate-Related Financial Disclosures (TCFD). We are also one of the initial members of the Net-Zero Banking Alliance*, which aims to increase the pace of the transition of the global economy to net-zero emissions by 2050. • Read more about our sustain ability strategy and our goals.

Read more about our sustainability offer.

Sustainable finance is an important driving force in the transformation towards a sustainable *The Net-Zero Banking Alliance (NZBA) brings together over 45 banks from 23 countries committed to aligning their lending and investment portfolios with net-zero emissions by 2050. As part of the initiative, SEB undertakes to adjust emissions from its own operations and emissions related to its lending and investment portfolios in accordance with the path to net-zero emissions year 2050 or earlier.

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From the beginning, it was not taken for granted that Therese Gustafsson would work actively in the family business. Today, she is Board Chair of Löfberg Fastigheter and her commitment to an inclusive business community is great.

Leadership

Equality in business

Perspective

Family businesses often good role models Swedish coffee company Löfbergs has more than 100 years of history and the Board Chair of Löfberg Fastigheter,Therese Gustafsson, knows the strengths of a family-run company. Inclusion is a matter dear to her heart. TEXT: LINDA SANDKVIST PHOTOS: SAMUEL UNÉUS

There is a lot of talk about inclusive compa nies performing better and being more profitable than other companies. Familyowned businesses are often at the forefront here and have a lot to teach, says Therese Gustafsson, Board Chair of property mana gement subsidiary Löfberg Fastigheter. “Since customers are a mix of women and men, the boardroom and the management team should have the same mix. We naturally have different perspectives depending on gender, age, background and more.” Therese Gustafsson says she longs for this to become automatic. “For now we must continue to talk about it and highlight the companies that have succeeded. There are a lot of good role models in family businesses – and the more women owners there are, the more role models we will have.” Löfbergs was started by three brothers in 1906. Leadership was dominated by males for the first two generations, but now there is a balance. It was the third generation that paved the way for the fourth to improve in the area of equality. “It was above all my father, Anders Löfberg, who made equality important. He had three daughters and two sons, so it came naturally.” There are no expectations from the Löfberg family to work in the family business, but the children were educated early on about the company and there was never any difference in gender in the discussions. “We were always included in the conver sation around the dinner table and no one treated us differently depending on whether we were girls or boys. We were brought up as individuals with the same demands – just as we have the same opportunities.” Today, three of five boards in the Löfberg family’s corporate group are predominated by

women. In the coffee company, 40 percent of 345 employees are women and in the property division three out of four. Therese Gustafsson believes that Löfbergs has so many women in leading positions because it is a family-owned company. “It comes naturally in a different way when the owners are both women and men.” At Löfbergs, they also work actively through a program with “inclusion ambassadors.” Just as it sounds, the ambassadors’ task is to make sure all are included, and the project has been very successful. “The key word we always end up on is com petence. If we look beyond the differences and see the competence, we will achieve success,” Gustafsson stresses. It was not obvious to her that she would work for the company. Several of the family work outside the company, but are active on the board. “I worked in England after I finished my studies and from a distance I saw how exciting our company was, which got me more interested.” She started working for the company in 2005. Interest in the real estate industry grew over time, and in 2019 she took over as Board Chair of Löfberg Fastigheter. Löfbergs has owned properties for a long time, primarily its own production facilities, warehouses and offices. A few years ago, the warehouse was moved out of the center of the mid-Swedish city of Karlstad, offering the opportunity to be involved in building a new district in the city. “Now we have a new project in Tullholmsviken, a stone’s throw away, and we will continue to be a long-term player in the local market.” The family has an important rule – following higher education, you must work at least five years outside the family business to gain experience.

“While it is positive when owners work at the company because they know the com pany from the ground up, it is important for us and other employees that we get in on our own merits,” says Therese Gustafsson. In response to the question of how we together should contribute to a more equal business life, she says: “To constantly encourage our children and young people to be individuals and follow their dreams. To make no difference between boys and girls in upbringing and to continue to show good examples in all possible forums.” •

Parent company Bröderna Löfberg AB has three subsidiaries Kafferosteriet Löfbergs Löfberg Invest Löfberg Fastigheter Alongside the three companies is the Löfberg Family Foundation, focused on sustainable development in coffee-growing countries.

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Entrepreneurship

Sustainable business

Expansion

Never underestimate an underdog A combination of a sustainability mindset and a “fake it till you make it attitude” was the toothbrush king Noel Abdayem’s recipe for global impact and billion-dollar business deals. TEXT: LINDA NEWNHAM PHOTOS: SAMUEL UNÉUS

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Swedes often say you must succeed in Sweden first before expanding internationally. Noel Abdayem, founder of The Humble Co. has a different opinion. “To put it plainly, I have not succeeded yet in Sweden,” he says, laughing. He can say it with a smile because he is still happy. He is 30 years old and has a company that manufactures bam boo toothbrushes sold in the US, Great Britain, France, the Netherlands, Germany – and Sweden. And he is the major stakeholder of the health-brand Humble Group, which is listed on Nasdaq First North with a company value of SEK 7 billion. Humble took a back route into the stock mar ket when it merged in early 2021 with the already First North-listed foodtech and health company Bayn. “I have earned more money than I can spend, but of course it has also come at a cost – in the form of relation ships. It has taken time away from my social life, away from family and friends,” says Noel Abdayem. The idea for the toothbrushes came to Noel Abdayem when he was a dental student and volunteered in Jamaica, where the organisation A Child’s Smile helped poor children with dental care. Noel Abdayem realised the reason so many children had cavities was simply due to the fact that they did not have access to a toothbrush. Inspired by the American company Toms Shoes, which started the “one for one movement,” where for every pair of shoes sold, a pair is donated to a poor child, Noel Abdayem wanted to try selling toothbrushes with the same concept. And for the toothbrushes to really feel ethical, they also needed to be environmentally friendly. “After a bit of research, I realised that bamboo was the best material. It is antibacterial and does not become mouldy as wood does. When I asked a factory to make 20,000 toothbrushes in bamboo, they laughed heartily at my quirky idea. They did not believe in it. But today we sell two million toothbrushes a month worldwide.” Just as many toothbrushes are donated to poor children, but Noel Abdayem does not see himself as a dental saviour. “There is rightful criticism of the ‘one for one model.’ Because what happens when the child has grown out of

Noel Abdayem Age: 30 years old. Family: Wife Jessica, a baby on the way. Home: Stockholm. Job: Vice President and COO for Humble Group. Number of Employees: 400+ Turnover: Just over SEK 3.5 billion, of which The Humble Co. (which, among other things, sells the toothbrush Humble Brush) accounts for about SEK 150 million.

his shoes or the toothbrush has become worn out, but you cannot afford to buy a new one? So, after a few years, Noel Abdayem also started a foun dation that works with preventive dentistry and which, among other things, trains teachers and staff in orphanages in Romania, Sri Lanka, Zambia and South Africa. Noel Abdayem believes his success is due to his background. He was born in Sweden but has Lebanese parents and says that the cultural mix has been beneficial. From his upbringing, he has acquired Swedish, structured thinking together with a Lebanese entrepreneurial spirit. “I like to bargain. If it is possible to bargain, I do it, even in everyday life. It’s a bit un-Swedish, but fun.”

“ To put it plainly, I have not yet succeeded in Sweden.” Well aware that they themselves had difficulty achieving success in their new homeland, Noel Abdayem’s parents invested in their children, and among other things, put their son in a Catholic school in Enskede in suburban Stockholm. “I may have had nuns teaching me sports, but I avoided going to a school in a segregated area.” That his father worked as a self-employed person in the candy industry is not the reason Noel Abdayem chose to become a dentist – on the contrary. “My dad was a dental technician, but could not get a job as one in Sweden. That is why he wanted me to be a dentist. My parents were careful to emphasise the importance of education. Money can be earned in many ways, but cultural status can only be gained through education. In my case, they were right; the fact that I am a dentist has given me credibility in the industry.” Noel Abdayem started his company whilst still in school, with the help of money saved from his student grants and a lot of drive. His background played a role as well.

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Xxxxx v coronapand hemmet som kontor nya normala.

demin har r blivit det

“Many have no faith in young people with an immigrant back ground, at least that was how I felt as a young person, which made me think “I will show them.” So never underestimate an underdog. Regardless of ethnicity, age or unusual business idea, it is possible to succeed.” For several years, The Humble Co. was a one-man company run in the spirit of “fake it till you make it.” He pushed hard in those first years, working full time as a dentist and focusing on the company evenings and weekends. Despite ambition and putting in the hours, it is no easy thing to get a physical product onto store shelves. Why have your bamboo brushes been a hit in shops? “I have never had to explain my product. Everyone benefits from an environmentally friendly toothbrush, so the pitch is about two seconds long.” Today, the toothbrushes are available in 50 markets, including at large chains such as Target and Boots, the hotel chain Four Seasons and airlines such as Delta and Lufthansa. Noel Abdayem does not find it particularly fragmented to sell in so many countries because it goes through smart distribu tors. But it is important to adapt the concept to the different markets, because consumers care about different things. “In Sweden, people like that the toothbrush is environmen tally friendly. In the US, the eco-aspect is not so interesting, however, Americans like the company’s social values. In the Middle East, both aspects are ignored, and the toothbrush is bought because it looks exclusive.” Earlier this year, Humble merged with food tech and health group Bayn, which changed its name to Humble Group, where Noel Abdayem is primary owner and vice president – giving him his back route to the stock market.

Noel Abdayem’s 3 tips for success 1. Do your homework. Is the concept doable? What does the industry look like? Is there competition? 2. Learn the basics of running a business. Such as accounting, VAT and customs. I benefit from having done everything myself. In important meetings, I still have answers to (almost) everything. 3. Find a sounding board. I have never had a formal mentor, but my business partners – distributors and customers – have acted as mentors.

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“The growth plans are aggressive. The Humble Group now has a turnover of approximately SEK 3.5 billion per year; by 2025, the goal is to have a turnover of 16 billion,” he says. “Imagine a Unilever that is better for the planet and health.” Noel Abdayem believes the time is ripe for sustainable business ideas, even if, according to him, the idea of sus tainability should not be exaggerated. “We could, for example, change the bristles on the tooth brush from nylon to pig hair, but the odder something feels to consumers, the fewer products you sell. It’s a nice balance.”

“We have changed the giants.” In general, he tries to take a sober approach to the benefit the company offers. He believes wholeheartedly in helping poor children, but at the same time he is fully aware that many of them will still grow up with bad teeth. In the same way, he does not want to magnify the company’s positive environmental impact. But... “We sell 20 million environmentally friendly toothbrushes a year while 10 billion in plastic are sold. So it’s a drop in the ocean. Still, I am happy, because we have forced the giants into a corner. None of them were interested in environmen tally friendly products before, but due to the Humble Brush, Colgate and Jordan have started to think about the environ ment and the climate. We have changed the giants, which I am proud of. No one can do everything, but everyone can do something.” •

Noel Abdayem on money and the future How have success and money affected you? I have become more humble. Many who know about my financial jour ney assume that I will be stuck up. It is the first impression that counts, so I have to go into a room with the right attitude and with great humility.

What are your dreams for the future? I will be a father soon, so my dreams have changed focus a bit. The most important thing I got from my parents was love and time, and I want to give that to my children too. My goal now is to find a better balance between work and private life.

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Food

Innovation

The development of green protein is progressing. In Silicon Valley, Impossible Foods has even managed to produce a vegetable “gravy” with the help of biofabrication. By taking hemoglobin genes from the soya bean plant and introducing them into yeast, you get plant-based “blood,” which can be used in plant-based protein to mimic the taste of meat.

Tech

Food as new business Plant-based food is not only sustainable and healthy, it also has great business potential and is on its way to becoming a billion-dollar market. The food of the future has become a hot field for investors. TEXT: JESSICA JOHANSSON AND KARIN STRAND ILLUSTRATIONS: JONNA LINDBERG

Sustainable food supply is a key issue for the planet. A report from the Swedish Environmental Protection Agency shows that food accounts for about a quarter of our climate impact and causes a number of environmental problems, such as reduced biodiversity, over-fertilisation and depletion of natural resources. The health aspects and changes in animal husbandry add to the need for change. New consumer values and behaviours are driving the development of food forward by leaps and bounds. The American company Beyond Meat was one of the first to launch a vegan meat imitation with the true taste and texture of meat as early as 2016. Their plant-based burgers became a business success that attracted heavy investors – even the largest meat producer in the United States bought into the company. The meat-free burgers became important precursors to new non-animal “meat products” and also showed the way in terms of investment: Plant-based food is big business. In Sweden, companies such as the oat milk giant Oatly and vegan Peas of Heaven, which produce deli “meats” with protein from green peas, have taken the lead and proven that plant-based food is not a flash in the pan. International investment banks are now fully counting on the market potential for the fast-growing protein alternatives. Barclays estimates that the market for plantbased meat products could increase tenfold over the next ten years, while UBS expects growth of 30 percent annually until 2025.

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In Sweden, many analysts believe in growth for plantbased meat products of between 15 and 20 percent per year, which would mean sales in the Swedish grocery trade valued at SEK 2–2.5 billion in 2025. The new plant-based products are part of the innovation area called foodtech. An umbrella concept that encompasses many areas, it includes things such as agtech, which deals with technology linked to agriculture and food science, which is focused on developing completely new food products. Foodtech is also described as the link between food and technology, where data analysis can be used to reduce food waste and improve agriculture and the food industry. With the help of new technology, it will also be possible to produce food using new sustainable methods. An example of the latter is the Dutch Mosa Meat. The company has developed a technology whereby taking muscle cells from cattle, you can grow muscle tissue: meat. The technology is not yet ready for mass production, but there is great interest among investors. In 2020, at least 20 new cultured meat companies started globally and investors contributed SEK 3 billion, twice as much as the year before. But foodtech is so much more. Smart technology can, for example, be used to grow vegetables in a more efficient manner, for example through sensor systems that control water, nutrients and atmospheric conditions. Grönska is a Swedish tech company that develops technology for vertical cultivation. Following the launch of its latest cultivation system, the company raised SEK 20.5 million in a new investment round this past spring. New innovations can also help in the fight against food waste. A huge part of all food waste in the world comes during the production stage, where a large part consists of by-products that have nothing wrong with them and still have high nutritional content. In Sweden, more companies are emerging that take care of and process food and by-products that would otherwise be discarded. Brave Brews produces the beer Crumbs using grain saved from bread production that would otherwise have been thrown away. Kärno makes cream cheese from leftover pickling liquid and the milk residue from churned butter. And Rescue makes juices, ice cream and smoothies from spotty fruit that would have been discarded if it had not been used by the company. Overall, foodtech is a fast-growing market segment worldwide that is paving the way for new cultivation methods, new food innovations and new methods to reduce food waste – something that in the long run can contribute in the fight to save our planet. The food of the future is here to stay. •

5 Nordic innovations that can create change Seaweed cultivation The Norwegian Seaweed Solutions has developed a technology for growing seaweed. Seaweed is rich in minerals and vitamins and requires no fertilisation, rather it grows with the help of carbon dioxide, light and nutrients that are naturally present in water. In addition to food, seaweed can be used as plant nutrients in animal feed, in cosmetics, and in medicines, as an energy source and as a biofilter in oil decon tamination. The global market for seaweed is growing by about 8 percent annually. Potential for protein Finnish foodtech company Solar Foods pro duces the unicellular protein powder Solein, a powder that increases the protein content in products such as bread, pasta, yoghurt and ready meals. The company is described as Finland’s hottest start-up company in the food and technology sector. Dough waste becomes mushroom protein Swedish company Mycorena has developed a patent-protected technology that produces a fungal-based protein from waste, primarily from the bakery industry. The process is based on a unique mushroom species that grows in closed tanks, resulting in a protein- and fibre-rich product with a neutral taste and meat-like consistency. Mycorena aims for a global market and is now building a full-scale production facility in Falkenberg that is expected to be completed this year. Fish-free fish Sweden’s Hooked Foods has developed a plant-based substitute for tuna, intended for use similar to canned tuna, made from soy and wheat protein, algae and yeast extracts. In the autumn of 2021, Brightly Ventures and German Oyster Bay Venture Capital, among others, invested in the company so it can expand and develop more types of plant-based fish. Lab-grown coffee The Finnish technology centre VTT is in full swing researching laboratory-grown coffee. The same technology is used as in cultured meat: cells from coffee plants are grown in laboratories, then placed in bioreactors with nutrients. However, the technology is less complex than in cultured meat production and the scaling up is described as simpler.

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Innovation

Architecture

Wood

Back to the roots

Wood has been used in Nordic interior design and architecture since time immemorial. Now wood is hotter than ever. Both for its durability and for the feeling of security that the material offers. TEXT: ANNA GARDBERG

The magazine Arkitektur’s editorial staff in Stockholm follows and debates Swedish architecture and also considers international trends. Editor-in-Chief Malin Zimm has a good overview of the industry. She sees two clear trends they are noticing right now. “Wood construction has been an all-encompassing trend for several years, as has renovation instead of demolition. Behind this trend is an awareness of the underlying cultural heritage.” Building in wood permeates the entire Nordic architec tural world and Malin Zimm has a clear example: In the Nordic pavilion at the Venice Biennale. Sweden, Norway

and Finland’s joint and latest architectural contribution was a collective house – “What we share” - designed by Norwegian architectural firm Helen & Hard. “It represents an idea of social housing, a modern form of collective, built to full scale in wood from floor to ceil ing. The pavilion served as a display for the countries and the wooden interior strengthened the Nordic identity.” Building more or less fully in wood, from frame to façade to interior, is increasingly common, regardless of whether it is single-family houses, holiday homes or apartment buildings. Behind the trend, among other things, is an increased focus on sustainability.

Malin Zimm, Editor-in-Chief for the Swedish Arkitektur magazine.

PHOTO: PER NADEN

2. Bold Library Finland has a long tradition of standing out with its architecture, and Helsinki’s new city library, Oodi, designed by architect Antti Nousjokis, is an example of this. The façade is largely in spruce, and wood also dominates the interior.

PHOTO: KUVIO

1. Maximalist Versatility Swedish architects Per Nadén and Anton Kolbe’s Villa Idun-Lee in Saltsjö-Boo received the Swedish Wood Award 2020. Wood – together with everyday life for a family – was the starting point for the house. The architects used the versatility of wood in everything from façades, construction and insulation to solid floors, doors and kitchens – and in site-built furniture and interior design solutions – by cabinetmaker Pontus Nadén.

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For architects and builders who want to profile them selves in sustainability, wood offers clear symbolism. It is also means technology development in construction. “In the past, there has been scepticism about wood and its properties, such as increased fire risk, which is not true. However, acoustics have been a problem. Imagine living in a guitar: it resonates. But new tech nology can alleviate those problems,” says Malin Zimm. She mentions as well the recent wake-up call regarding the concrete shortage, which also contributes to a continued boom for wood. “It is interesting that Sweden is one of the world’s ten largest exporters of timber. Architects are champing at the bit to build more in wood and builders have new knowledge.” There are also a number of external trends that con tribute to our desire to build in wood. Malin Zimm calls one of these “local exoticism.” The pandemic has meant the domestic adventure and experience industry is extremely strong, equally popular in all Nordic countries. A “staycation” is already familiar to Swedes. They want to “glamp,” mountain hike, taste wilderness gastronomy and experience the best Sweden, Norway or Finland offers at home. New concepts such as campfire barista, wine in the woods and the Finnish Superwood Festival all appeal to

PHOTO: JONAS WESTLING

urbanites who want to experience nature but in a safe way. It has an impact on where and how we want to live. “We want a small, reclusive holiday home, comfortable with fantastic architecture in a secluded, scenic location.” That Nordic hearts long for cultural heritage, and to renovate and develop existing values, is also something that is clear and affects the feeling for wood.” In the Nordic region, people live in old, high-quality environments that have not been destroyed by war or earthquakes. There is an old building culture, and people see the qualities in building things that last. There are also many talented conservators in the industry. Today’s architects must be good at building from what is available. “The most sustainable building is the one that remains and is renovated or rebuilt instead of building new,” says Malin Zimm. This is also about recycling and upcycling materials, thinking circularly. An architect must not only create based on the needs of a client or user but also based on society’s resources and the planet’s limitations. “It’s a bit like remaking a piece of clothing, it requires at least as much creativity as sewing a new one. It is still a design task, and no creator embarks on a task without limitations. Starting with a blank sheet is not the same challenge,” says Malin Zimm. •

PHOTO: JONAS WESTLING

1. Inspired by Sara In the middle of central Skellefteå in Northern Sweden stands Sara Community Centre, one of the world’s tallest wooden buildings. Named for author Sara Lidman, the centre should “breathe creativity, courage and the will to think new,” just like its namesake.

2. Minimalist retreat Malin Zimm, Editor-in-Chief of Arkitektur magazine, mentions Loft House, a retreat house with a minimalist design, as an example of the “local exoticism” trend. Designed by architect Hanna Michelson, Tham & Videgård, for Bergaliv Landscape hotel in Hälsingland in central Sweden.

4. Playful “mountain cabin” Norwegian architect Knut Folstad started his own architectural firm shortly after graduation and has quickly earned attention for his architecture with sustainable solutions. For his “mountain cabin” or “timber temple” as he himself calls it, wood is everywhere. Inspired by traditional Norwegian architecture, he has given the building a playful, modern expression at the same time.

PHOTO: KNUT FOLSTAD

3. Close to nature Danish architectural firm Henning Larsen is behind what will be the residential area Fælledby in the Vejland district on the out skirts of Copenhagen. All buildings must be made entirely of wood, and the area’s focus is in many ways on a sustainable lifestyle close to nature.

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Furniture

Design

Sustainable craft

Wood

The craze for using wood goes beyond architecture to furniture and accessories. We appreciate the material in tactile, timeless and sustainable craftsmanship.

1. Bathtub in solid wood composite by Finnish Woodio. Price: approximately SEK 40,000.

2. Figur Sidetable, in ash, by Björn Sundelin for Swedish Swedese. Price: from SEK 3,200.

3. Falabella Stool in plywood. From Swedish Offecct, by Lucy Kurrein. Price: approximately SEK 3,800.

4. Arbour Club Armchair in walnut or oak, by Andreas Engesvik and Daniel Rybakken for Danish Hay. Price: from SEK 23,000.

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Driving spirits

The Swedish entrepreneur

Entrepreneurship

Sweden has a long history of innovative and strong entrepreneurship. Being passionate about your business idea and sticking to it is key, say many of the entrepreneurs who have succeeded in realising the dream of owning a company. Value talks to a few of them. TEXT: ROBERT LÅNGSTRÖM PHOTOS: SAMUEL UNÉUS

Cecilia Hillström, Cecilia Hillström Gallery

Sweden

Mikael Mahlberg , Candela Speed Boats

Alexandra Torstendahl, The Book Affair

Mikael Skaj, Skajs Antikhandel

Cia Attling and Marie Wallenberg Olsson, Vandra Rugs

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Entrepreneurship

Art

“ I had ideas to take responsibility for” After ten years, she still does not see herself as an entrepreneur. The road from finances to art was anything but obvious, but today she runs Cecilia Hillström Gallery with a firm hand.

Cecilia Hillström Gallery is located on Hudiksvallsgatan in Stock holm. At the time we are there, the walls are adorned with David Molander’s photographs. An artist that Cecilia Hillström has had in her stable since he left art school. White rooms, beautiful works of art, a curly-haired dog that wants to embrace everyone. The environment of the gallery is almost as far from a bank branch as you can get. But it was from the banking world that Cecilia Hillström came in 1999. She went to the Stockholm School of Economics and made a career in the world of finance – but then suddenly changed careers, studying art history in New York and Stockholm and entering the world of art galleries. So it’s perhaps not strange that she can still feel a little odd as a cultural entrepreneur. After all, it requires a lot of energy to step into a new industry. “I came from a safe, large corporate environment. Starting your own business was never a given. It is demanding and always feels a little insecure. When I clean the toilet or clean the storage, I sometimes wonder what I’m doing. But I had ideas to take responsibility for. I had to open my own gallery,” says Cecilia Hillström. What were the ideas Cecilia Hillström needed to take respon sibility for? “When I lived and studied in New York, I discovered how culture and finance were closer to each other there. I wanted to combine these two worlds in Sweden: the market and art.” She got into it quickly, learning as she went along. “You must have drive. You have to start somewhere,” she says. After a few

years as a consultant at a gallery and art store in Stockholm, she opened Cecilia Hillström Gallery in 2012. “My background as an economist means that I am good at the organisational and strategic. Contracts with everything in order. Professionalism. I think I’m good to work with, especially for artists. My business model is to work long-term with selected artists. The gallery is not just a place to exhibit at and sell their show – we work as a book publisher or an agent.” Buying art can be seen as luxury consumption, but it is also an investment in sustainability – in both products and people. The long-term perspective, development of the artists and the quality and longevity of the works make the business both an emotional and a financial investment. Some customers have followed the gallery’s artists for many years. “What I love most about my job is getting to be part of an artist’s journey, to coach a bit and to see the art develop. It is a very broad job in that respect,” says Cecilia Hillström. • Cecilia Hillström Gallery Business: Represents contemporary artists in all art forms. Founded: 2012 by Cecilia Hillström. Employees: 3.

Antiques

Entrepreneurship

“ It’s all about choosing with care” The blood flowing through Mikael Skaj’s veins is antique. He is the fourth generation in the family to run Skajs Antikhandel.

We step into Skajs Antikhandel as one of the possible heirs to the shop steps out with the family’s labrador. Mikael Skaj is the fourth generation to run the family business, which sells exclusive antiques and art. The dog-walker is his 20-year-old daughter Hanna, one of three children who could be the fifth to run the business. “They say the first generation acquires, the second manages and the third corrupts. We have already managed to survive that,” says Mikael Skaj with a smile. “Interest in antiques usually comes with age. Clearly it would be fun if one of the children wants to take over, but it is important that they try something else first. The company is always here for them to fall back on. And if they’re not interested, then it’s okay. Everything has an end.” Inside the premises on Nybrogatan in Stockholm, it is quiet. A few candles shed quiet light. Mikael Skaj shows us around the antique furniture and art from the 18th and 19th centuries, mixed with his own addition to the antique trade: modern art. A detail that appeals to new target groups who like to combine history and the present in their interior design. Everything is carefully selected. Quality is key, priced accordingly. Skajs buys its items at auctions, from other dealers and from private individuals, fairly evenly distributed among the three. The store also collaborates with a dozen of Sweden’s best crafts men when objects need to be restored. Skajs does not sell anything you cannot imagine buying back a generation later. Which also happens. Grandparents have bought, grandchildren have sold back.

“It’s easier to sell things you like. It is important to choose with care and knowledge. At an auction, maybe 1,500 items are auctioned, of which I find 20 that are interesting and buy maybe three.” Skajs Antikhandel does not need social media or TV advertising. A well-designed website with good images goes a long way. Such businesses are usually built in the good old-fashioned way – through a good reputation, good service and genuine customer relations. Exactly as founder Filip Skaj did in the 1930s, as did his son, the antiques dealer Max Skaj who was a legend in Sweden, and the generations thereafter. The world is not always as digital as we imagine. The prime location of the store, opposite the Royal Dramatic Theatre, does not hurt either. “This is Stockholm’s best street, which means that both new and old customers walk past. I love my job, the objects and the people. I speak entirely for myself, but I believe the antiques and art business in the true sense of the word is by its nature something completely different from the fast-paced activity in portals and online auctions,” says Mikael Skaj. • Skajs Antikhandel Business: Sells exclusive antiques and art. Founded: 1933 by Filip Skaj. Employees: 2 (Mikael Skaj and his wife Louise).

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Entrepreneurship

Electric boats

“ Mathematics makes the boat fly” Candela Speed Boats are called the “Tesla of the Sea.” The company’s electric boats will revolutionise the boat industry.

“How does it make sense for us to use a 4,000-pound vehicle, burning dinosaur juice, to move a three-pound pizza across town?” asks Google’s star researcher Astro Teller. Candela Speed Boats founder, engineer Gustav Hasselskog, asked himself the same question, but about boats. He used to take his motorboat to the marina gas station to buy ice cream for his children. The ice cream cost SEK 50. The petrol cost SEK 500 and it destroys nature. It was a lousy equation. Five years later – after years of lugging “crazy” sketches in a worn portfolio to conferences on electromobility – the leisure boat Candela Seven is now produced on Lidingö in Stockholm. Lidingö is a classic boat-building area, but that’s where the connections end. This flying electric boat has more in common with attack helicopters and violins than with traditional boats. The Economist calls it “the Tesla of the sea.” Communications manager Mikael Mahlberg shows us around the factory: “Here you see the carbon fibre hull. A normal hull weighs 400 kilos, this one weighs 90. Olivier Philippot, who created it, has previously designed violins and attack helicopters. We have picked the best engineers. We are not a boat company, but a technology company that happens to make a boat.” On the one hand, electric boats are nothing new. On the other hand, they are efficient and these electric boats fly. The crucial question is how to drive both fast and long distances. The answer for Gustav Hasselskog and his team was to drastically reduce the friction in the water. A leisure boat uses 50 times more energy than a family car. Mikael Mahlberg points to a pair of fins attached under a hull. It’s the foil – the super ingredient in the secret sauce.

“At 16 knots, the boat flies. Only these two foils touch the water surface. It reduces friction by 80 percent. Ordinary planing hulls need very large batteries to get up to speed at all. Those are heavy, which makes the boat go deeper, which creates even more friction. It’s a vicious circle.” Candela Seven broke the circle and can drive 50 nautical miles at 22 knots, floating like a pencil you balance on your finger. Computers, software and sensors make the boat artificially stable. “Math makes the boat fly,” Mikael Mahlberg says, describing it further as a “flying math experience” to ride in Candela Seven. You ride above the water so there are no shocks, no noise, no exhaust fumes, no oil spill.” When TED founder and Wired editor-in-chief Chris Anderson invested in the company, the development of commercial vessels began. The P-30 is a ferry that will change waterborne transport in cities. “The idea is to be up and running in Stockholm, accessible by subway card, from 2023. It will save some 50 percent in operating costs on the route Slussen to Vaxholm. Running at 30 knots, it’s faster than anything else in today’s fleet. There will be no swell after the boat, nothing to disturb the calm,” says Mikael Mahlberg. • Candela Speed Boats Business: Develops and manufactures flying electric boats. Founded: 2014 by Gustav Hasselskog. Employees: 50.

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Entrepreneurship

Handcraft

“ There is a great power in what we do” When a child’s feet run across a rug from Vandra Rugs, history and the future are linked. Decades meet, borders are crossed and life is woven together.

“Today’s consumers think twice before buying. And one of the things they think about is ‘what kind of business is this?’ Our customers sympathise with what we do. There is a lot of power in that,” says Cia Attling, one of the founders of Vandra Rugs. The company designs and weaves quality rugs. Carpets grounded in the Swedish weaving tradition, but with a modern touch, they adorn everything from ambitious living rooms in Swedish homes to legendary hotels in France. Carpets that survive generations. But that’s just the end result of their business model. To under stand the breadth of sustainability and values that permeate Vandra Rugs, we need to start at the beginning. In 2005, Cia Attling stepped into Barbro Thessing’s basement on Valhallavägen in Stockholm. Barbro Thessing had taken over the carpet division of EMTE Textil, a legendary company founded in 1940 by Edna Martin and Marit Thorén, who, among other things, built up major Swedish interior design company Svenskt Tenn’s textile department. Cia Attling was going to buy a rug for herself, but fell in love with everything she saw. “I got to know Barbro and thought ‘can you have this much fun at work’? EMTE Textil had a network of weavers around Sweden. They worked with residual products from the textile industry. Among other things, they made carpets for interior designers and architects, and for Parliament’s overnight apartments. There was such potential in the product.” So Cia Attling did what a true entrepreneurial soul does. She asked if she could become Barbro Thessing’s marketing depart ment. With a university degree from the United States and a background in the financial and pharmaceutical industry, she was the perfect person to help the company into the future. Then things went fast. Cia Attling took over the company in 2008. Orders increased and they had delivery problems.

“There was no one left in the textile industry in Sweden. We had to buy materials from France.” It was then the second co-owner, Marie Wallenberg Olsson, came into the picture. She had not only grown up on these carpets, she had a recent degree from the Stockholm School of Economics. There she focused a lot on hand-in-hand models, especially entre preneurship employing poor women. This led to a third co-owner, Larissa Bodén, an economist from Ukraine, who was looking for a project to support women in the Ukrainian countryside. “At the same time, we had a product with great demand. We asked Barbro Thessing: ‘can you imagine educating women in Ukraine?’ She was then over 70. ‘Oh, what fun!’, She replied and went down with the weaver Laila and Laila’s husband Harald.” The rest is tailor-made history. “The ambition was that the carpets would maintain at least the same high quality. And they do! Our employees at the factory down there are so amazingly talented! And they are continu ously trained.” But the sustainable model does not stop there. In a traditional carpet shop there are stacks of carpets. Either in the wrong size or the wrong colour. Vandra Rugs tailors and adapts the carpets to where they will go. The rugs are woven to order and everyone takes care of their own waste. Finally, the carpets have a long life. “The exclusivity is in the craftsmanship, how we produce them. A human being has braided this fringe. It gives the product life,” says Cia Attling. • Vandra Rugs Business: Exclusive hand-woven rugs. Founded: 2008 by Cia Attling, Marie Wallenberg Olsson and Larissa Bodén. Employees: Two in Sweden and 25 in Ukraine.

Entrepreneurship

Publishing

“ We challenge the model” Let the authors loose, The Book Affair is here! Meet the book publisher that sticks out its chin - for the sake of its customers.

They say an author’s most difficult obstacle is an empty page. If you ask Alexandra Torstendahl, the obstacle is actually a rusty calculator. A crooked machine that spits out obsolete contracts. In her head, a shiny new model is spinning instead. “If you have a small startup with four employees, you have to have that shiny model spinning in your head at all times. Those who work with me appreciate it.” The Book Affair is a new kind of book publisher with a unique business model. CEO Alexandra Torstendahl tells all from the other end of the video call where she is sitting in her apartment full of suitcases. She will work from the historic Swedish medi eval town of Visby for six weeks. A journey in the completely opposite direction from the journey with The Book Affair. There, rather than travelling to the Middle Ages, they look to the future. “I wanted to try to use my drive and talent to build my own company. It was also the right timing. The publishing industry is starting to follow other entertainment industries, such as Spotify and Netflix.” The Book Affair is about being completely on the side of the authors. In contracts and needs. Traditional book publishing models are rigid and expensive for many authors today. “We challenge the traditional model. It’s a lot about distribution. Why should someone who refines a raw material make money? For example, most streaming services make money, while creators get too little.” At The Book Affair, authors invest in themselves and their book publishing. The publisher helps to put the business together with

a focus on the more traditional aspects of publishing: editing, printing and sales to retailers. Marketing and their own channels is where The Book Affairs’ authors get to use their own power. The agreements are also written accordingly. No unnecessary efforts that cost the author more than they get back. Getting yourself out there, breaking patterns and challenging giants can be scary. “Who but a brazen crazy person would go one-on-one with blank paper or canvas armed with nothing but ideas?” as the author Mark Vonnegut put it. But Alexandra Torstendahl was never worried. The time was ripe. Of course, it helps to have 30 years as a saleswoman in the publishing industry behind you, including 20 years as a manager at Swedish publishing giant Bonnier, among others. At her side she has another experienced Alexandra, with the surname Lidén. A publishing director who has worked in the industry for 25 years. “She builds the books, contacts the authors, handles print procurement and more. Without her, The Book Affair couldn’t move forward. We are two of the three important legs that create success: the salesman, the publisher and the author. • The Book Affair Business: Modern book publisher with focus on the authors. Founded: 2018 by Alexandra Torstendahl and Alexandra Lidén. Employees: 4.

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Family companies

Generation shift

A crucial shift Nordic family businesses are important for the entrepreneurial ecosystem. In addition, research shows there are many benefits to remaining a family business. But what is really most important to think about when it’s time to hand over the reins to a new generation? TEXT: JONAS REHNBERG ILLUSTRATIONS: JONNA LINDBERG

Perspective

Ole Hamre, Head of International Private Wealth Management and Family Office

Family businesses are a heterogeneous collection of companies of different sizes, with different driving forces and different backgrounds. But they all have one thing in common. Those that have not been sold will be inherited by the next generation. Research has shown that generational shifts are a crucial factor in the family companies’ actions and even their survival. But a shift can also mean a lot of challenges. An answer to the question of why generational change can be seen as difficult also explains why textbooks in business administration do not provide the answers to the challenges family businesses face. Because generational change is often about psychology rather than numbers. Expectations – whether they are too high or too low – is an area where lack of communication between generations

A younger generation can have a lot to contribute to the family business, both in terms of views on sustainability and the value of diversity. “A new generation may have a better understanding of the present and future in the form of digitalisation and other major societal changes, such as globalisation,” says Mattias Nordqvist. Entrepreneurial families are therefore important for the entrepreneurial ecosystem in Sweden, he says. “A lot of money for start-ups in tech right now comes from private-owner families. It is important to make this clear.” There are now many successful entrepreneurs in the Nordic region who built their companies in the 1980s and 1990s and want to continue as a family business before their first generation shift. Many choose to bring in owners outside

“Eternity as a perspective, that’s sustainability.” leads to consequences that no one wanted, says Mattias Nordqvist, professor at the Stockholm School of Economics. “Sometimes you see that the older generation has an excessively positive or negative view of their children’s capacity. And I have seen examples where they do not even know if anyone in the younger generation wants to take over the company. It is assumed they do not if they have not said anything. Then it turns out the children were certainly interested, but never received the question explicitly.” Then one day it’s too late. So it is important to prepare for a generation shift in good time – without committing to how you want it to look in 25 or 50 years. The world around us and technology are changing too fast for that to be wise, and children go through their different phases. But it may be worthwhile to “test” their aptitude for taking the family business further, Mattias Nordqvist suggests.

the family, but research shows that there are many benefits to remaining a family business. They are more profitable, more gender equal and better in terms of sustainability. Being family-owned means caring a lot about the brand, especially if the company bears the family name. “What is exciting about entrepreneurial companies is the connection between the founder’s identity and the company. Sometimes the name is the trademark. To sell it means for some to lose part of their identity,” says Mattias Nordqvist. The idea of sustainability and being a good citizen locally is a central part of a successful family business, he says. “Many family businesses have worked for generations with sustainability from various aspects even before it became a buzzword and necessary for the climate. Being sustainable means keeping up with the times, and that’s exactly what successful family businesses do.”

Research on the effects of private/unlisted companies bearing the name of the founding family shows that: Owners and management are more concerned about their reputation, which tends to raise the quality of products and relationships. Companies appear to be more honest and sincere in their financial reporting.

Long-term profitability improves, some studies show up to 50% better ROA.

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Professor Mattias Nordqvist’s research at the Stockholm School of Economics shows, among other things: Those companies that during a generation shift retain majority ownership within the family have lower growth rate in the short term but are more profitable and stable over the long term and thus survive longer.

How do you ensure a successful generation shift? Often a shift goes well, but if any sibling rivalry, jealousy and in-laws’ suspicions are dead set against control of the company and money, it can lead to unhappy endings. Ole Hamre, advisor to family businesses at SEB, has good advice on how conflicts can be avoided. “What you absolutely must have is a clear plan and strategy. Not having these leaves you ripe for conflict and suspicion.” However, there is no one-size-fits-all solution, he says. “Each family is unique and each fortune has its unique history. Communication and transparency are most important, to convey what ambition you as a founder or

“SEB has a ctively supported family b usinesses and owner families for over 165 years.” owner have and what kind of legacy you want to leave behind. Define what is important for the individual family members, founders as well as descendants,” he suggests. It is also important to formulate a vision of the company’s purpose and role that the family can rally behind. And to share – and preferably pass on – the passion and values that once laid the foundation for most successful companies. “It is often passion that created the drive that originally built up the business and made the family business successful. It is not automatically there to the same degree in future generations. The children may want to become doctors or teachers and follow their own dreams outside the family activities,” he says. “In cases where no one in the next generation has the desire or aptitude to run the company further in an operational role, many families in different situations choose to sell the business and manage the family fortune as a financial asset,” says Ole Hamre.

In those cases, you benefit from a Family Office with professional advice. It strengthens the family. There is a certain complexity in passing wealth from one generation to the next. The goal is to create stability and realise that you have the money “on loan” and want to secure it for the next generation. Eternity as a perspective, that is sustainability. “The most important thing for family businesses is to realise that they need to be regulated using corporate governance, so there are policies and rules for how to handle certain decisions. This way you can avoid conflicts. So says Pontus Tonning, head of family business at PwC, which conducted a survey of 2,800 family businesses in 87 countries. “Family businesses have a certain strength in that they build on relationships, and you can make a quick decision. At the same time, family dynamics are a factor to consider,” he says. The survey shows that the vast majority of family businesses handle conflicts within the family. Only 13 percent have conflict management mechanisms in place and about the same number are willing to seek outside help. Only 58 percent answered that all family members agree on the direction of the company, while 7 percent testify to regular conflicts. Seeking support outside the family is not a bad idea. And the professionalisation of, and increasingly, research on family businesses means a completely different support structure today, Ole Hamre points out. “At SEB, we have actively supported family companies and owner families for over 165 years, there are networks, for example Family Business Network in Sweden, that can also assist with best practices and knowledge sharing. In the Nordic countries, there are many families who have succeeded well with generational changes, and for each new generation, the family’s experience increases.” •

Family businesses think according to gener ations instead of quarters – how does that affect endurance? The owners of some of the Nordic region’s largest family companies discussed the issue in one of SEB’s digital events. Take part using the QR code. Mixed Scandinavian languages with English subtitles.

SEB Private Wealth Management & Family Office 47

Commitment

Philanthropy

A smarter way of doing good Historically, investment and philanthropic purposes have been seen as two separate areas. Today, many weave together philanthropy and investment in various partnerships to maximise benefits. Johanna Zenk Palmborg, Head of Foundations & Philanthropy SEB explains. TEXT: LINDA SANDKVIST PHOTO: SEB

How can I make a difference in society? More and more people are asking themselves this as societal challenges increase. In connection with the pandemic, for example, issues on everything from streamlining the distribution of protective equipment in times of crisis to adjustment support for companies in crisis have been brought up. “Needs in society are increasing, in Sweden and globally. The climate crisis is acute and is also increasingly affecting social conditions. There is a clear trend that many people want to help not only by contributing money, but by getting involved in other ways. Measuring and following the effect of capital is important and increasingly in focus,” says Johanna Zenk Palmborg, Head of Foundations & Philanthropy at SEB. Many entrepreneurs who have built up and sold companies choose to work with their fortunes through continued entrepreneurship, but in foundation-like forms and with social purposes. “They often describe that they want to give back to society, but that they then want to participate in the work and see the result. They want to use their experience and entrepreneurial skills for a good cause and invest in what has a positive impact on the issues they themselves think are important.” Johanna Zenk Palmborg sees philanthropy as a piece that is part of a customer’s financial planning and where the bank can be a sounding board and a support. “We can, for example, create new innovative networks in philanthropy and see collaborations among philanthropists, business and authorities as something completely natural that will be developed in the future, where we are an active party. “We have long and solid experience at SEB of working with issues in philanthropy, foundations and investments, and in the new segment Foundations & Philanthropy this will be further developed,” says Johanna Zenk Palmborg, “We now include foundations and philanthropy and do more in the field. We want to take our responsibility and be a catalyst to increase commitment, both for our customers and on our own behalf. We simply want to be a part of driving this development.” •

Foundations

Organisations, foundations and driving spirit together create change in society. On pages 50-57, you can find out more about several important Swedish projects that make a big difference.

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Research

Development

Precision medicine great for the individual and society In the autumn of 2020, the Knut and Alice Wallenberg Foundation made an investment in computer-driven life science of SEK 3.1 billion. One of the areas is data-driven research in precision medicine and diagnostics, which will have a major positive impact on healthcare. Janne Lehtiö, professor of medical proteomics at Karolinska Institutet, explains why. TEXT: LINDA SANDKVIST

Foundations

Imagine you go to your doctor with a symptom that is bothering you. The doctor takes a single blood sample and can then immediately determine what you are suffering from, what medication you need and the exact dose that will give the best treatment results for you. This is not some utopian future but a scenario that may play out in reality relatively soon in the case of certain diseases. So says Janne Lehtiö, professor of medical proteomics at Karolinska Institutet in Stockholm and who works with precision medicine and diagnostics. In the autumn of 2020, the Knut and Alice Wallenberg Foundation made an investment in computer-driven life science of SEK 3.1 billion. Four areas are prioritised within the investment. One of these is data-driven research in precision medicine and diagnostics. Precision medicine is about getting you as a patient, faster than today, the right diagnosis and then a treatment tailored to you. “With the help of a molecular portrait of the patient and the data we have about various diseases, we will be able to match the diagnosis with the treatment that works best in each individual case,” says Janne Lehtiö. Just because a drug works statistically well does not mean it works for everyone. Nevertheless, it is still usually the treatment that works on the majority of the patients at the time of development that is then used for everyone. “This does not mean that the other treatments are ineffective. Treatment A may have worked on the majority while treatment B only worked on 5 percent of the patients, but for you it may be treatment B that works best,” says Janne Lehtiö. For example, there is a special mutation in lung cancer where the mutation is in fact what drives the cancer. For this there is a specific treatment. When one of the treatments for lung cancer was developed, it was noticed that Asians responded to it more often than Europeans. “If we, through a blood test where we see how the tumour’s genome is built up, can see that you have this mutation, it will help to find more effective medicine for you. Then we don’t need to look at external factors, such as your origin, because even though the mutation occurs more often in lung cancer among Asians, it also occurs in others who can then receive the right treatment.” When a patient comes to the doctor today with stomach pain, for example, there are around 50 different analyses that can be done to find the cause of the symptoms. Several blood samples may be required that must be sent for several different analyses, where each analysis itself costs money and it often takes time before the health system arrives at a correct diagnosis, if it happens at all.

“With the help of precision medicine, it is possible to avoid all these different analyses and exchange them for a more systematic analysis, where you create a molecular portrait of the current situation, which can help to arrive at the correct diagnosis more quickly,” says Janne Lehtiö. Data-driven life science with mountains of data and knowledge collected worldwide can thus be compared to a single blood test to diagnose you. “The more data we have, the faster the learning system works, and with that comes savings. Savings in terms of time and suffering for the patient and time and money for care,” says Janne Lehtiö. Precision medicine already exists to some extent today. When it comes to breast cancer, for example, you can measure certain proteins in the tissue and choose treatment for the patient based on that measurement. “There are many who work with precision medicine already now, but this 12-year program gives us the opportunity to recruit specific skills in AI and computer science, among other things, and connect it to the strengths that already exist.” Precision medicine can also be preventative. A DNA sequencing of the genome or your intestinal bacteria, for example, can show if you have a higher risk than normal of developing certain diseases. “We already know the most likely doctor’s recommendation: Eat more fruits and vegetables, exercise more, don’t smoke. But in the future we will be able to give more specific advice,” says Janne Lehtiö. Collecting so much data about individuals has its ethical challenges, including the storage and ownership of the data. But the ethical challenges must not stand in the way of the development of precision medicine. “The benefit of precision medicine is so great for the individual and society. A bigger problem today is perhaps how data can leak from smartphones to different actors and what these actors choose to do with the information. Many health apps measure heart rate, sleep, how much you move, what you eat and more. When it comes to academic research, this is strictly regulated with ethical tests and permits, and we follow health care regulations.” Janne Lehtiö says that computer-driven life science will change healthcare, and that in time will probably be included in general healthcare. “There will also be other actors in healthcare and we will have a new way of working together – academia, healthcare and business. When we look at it from a societal perspective – based on the number of illnesses we can eliminate and deaths we can avoid – it is an obvious choice. The process itself is a fantastic opportunity to develop research and innovation in Sweden,” says Janne Lehtiö. •

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Research

Development

Research needs transparency The Knut and Alice Wallenberg Foundation has so far allocated SEK 235 million for covid-related measures during the pandemic. Peter Wallenberg Jr., Chairman of the foundation, looks back on a time of learning. TEXT: MAJA-STINA SKARSTEDT PHOTO: SAMUEL UNÉUS

At a board meeting at the end of March 2020, the members of the Knut and Alice Wallenberg Foundation received a presentation from several researchers about Covid-19. The anxiety was not particularly great for the infection – then. It had not yet broken out fully in Sweden. But the board understood from the presentation that it was more serious than what the media reported. “We said: if there is something we can help with, get in touch! It took no more than a few days before they returned,” says Peter Wallenberg Jr., Chairman of the Foundation. After a dialogue with the scientific community and the healthcare system, the Foundation announced a few days later that it would allocate SEK 50 million so that the Swedish Covid testing and analysis of the samples could be expanded and become more efficient. Robots and analysis materials were flown in from China to laboratories at Karolinska Institutet and SciLifeLab. “In general, the Wallenberg Foundation’s opportunities to act positively from this perspective – we have short decision processes and this, in combination with the already good contacts internationally of Swedish researchers – meant that we could act quickly, says Peter Wallenberg Jr. In April, the laboratory at Karolinska Institutet had the capacity to analyse 150,000 Covid tests a month. The capacity was increased two months later to 250,000 tests per month.

“The Foundation has increased funding for Covid research in several cases so researchers would be able to continue their important work during the pandemic, including studies of vaccination effects,” says Peter Wallenberg Jr. “We have not found solutions to everything. We have learned an incredible amount, but we still have a lot to learn. This is not the last time we will face similar circumstances.” Peter Wallenberg Jr. hopes that the researchers’ openness will continue and that they will continue to work across borders and maintain the strength of the collaboration. “I am convinced that we have all found ways to act that we did not previously understand existed. If the researchers had not started this collaboration immediately, I do not think we would have had a vaccine as soon as we did.” It was Knut and Alice Wallenberg’s work and initiatives over a hundred years ago that laid the foundation for the foundations’ ecosystems, Peter Wallenberg Jr. emphasises. “Knut and Alice, and subsequent generations, thought in an incredibly forward-looking way, and I am grateful and proud to belong to the fifth generation who gets to develop what they started before us.” •

Find out more about the Wallen bergs’ ecosystems and ongoing initiatives using the QR code.

Foundations

Change

Education

Foundations

Change must come from within During a trip to Tanzania, Malin Cronqvist, founder and head of the organisation Help to Help, came up with a way to help young people drive change in their own country. TEXT: LINDA SANDKVIST PHOTO: SAMUEL UNÉUS

The organisation Help to Help finances the education of East African students and now the work is being scaled up, thanks in part to the collaboration with the Four Founders of Netlight foundation. But let’s rewind back to 2010 when Malin Cronqvist made her first volunteer trip to Tanzania. “I travelled as a 22-year-old and had an absolutely fantastic experience. I met many energetic young people my own age who themselves wanted to drive change in their country. However, it did not take long before I realised that I myself did not actually have much concrete to contribute.” Tanzania has a population of about 58 million. Only 3 percent of the population goes on from compulsory school to further education. “It costs SEK 7,500 per year to study further in Tanzania, which is an impossible cost for an average Tanzanian family. I myself had seen that the drive and the will were in place and I felt that I wanted to do something to help,” says Malin Cronqvist and mentions the lack of doctors as an example. “There are fewer doctors in the whole of Tanzania than there are at Karolinska Hospital in Stockholm. No volunteer doctor in the world can fix this. The change needs to take place from within.” Help to Help finances scholarships for students from poor backgrounds who show great potential to be able to succeed in higher education. And it has repercussions. “One year after graduation, we see, among other things, that 85 percent of our scholarship recipients contribute to

increased family support and that 60 percent of them pay school fees for their siblings.” Two years ago, Malin Cronqvist was contacted by four of the founders of Netlight Consulting – Erik Ygberg, Jonas Hovmark, Kristoffer Nilsson and Henrik Sidebäck. They were in the planning stages of starting a foundation: Four Founders of Netlight. “We have had the enormous privilege to be part of this successful journey with Netlight, and we felt we wanted to give back in some way. That is why we started the foundation Four Founders of Netlight,” says Erik Ygberg. It was no coincidence that it was Help to Help as the first case. “We wanted to find projects that could really contribute to making people self-sufficient. Educating people on the ground has such a huge spill-over effect.” Initially, the foundation contributed SEK 1.5 million to Help to Help. Now it is pushing for another SEK 10 million over a five-year period. But they will not only contribute financially, they will also offer know-how. “The vision is to develop this program into one of the most effective in the world. We have found a common ground with a long-term collaboration where we can make a real difference,” says Malin Cronqvist. •

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Philanthropy

Education opens the door Education can be a way out of poverty, according to the Swedish organisation Social Initiative. Safira Nyesige is one of those who have had the opportunity for change via the URDT girls school in Uganda. TEXT: LINDA SANDKVIST PHOTO: CHRIS DENNIS ROSENBERG

Education

When Safira Nyesige in Uganda had the opportunity to go to the Uganda Rural Development & Training Program’s school, it was not only her own future she changed. Her parents and seven siblings today run a profitable and expanding company thanks to her lessons. “The URDT is a special school, it makes a difference not only for its students but for entire families and communities. Education is the key to everything.” Safira Nyesige says this emphatically. She grew up in a very vulnerable area in western Uganda. In 2004 she started studying at the girls school URDT, and today she works there herself as a school nurse. The URDT is run by social entrepreneur Mwalimu Musheshe. The school is financed, among other things, by private individuals, companies and families via the Swedish organisation Social Initiative, which works to put together financiers with social entrepreneurs around the world. The URDT is one of the partners the organisation works with. “We started collaborating with URDT in 2008 and chose the school because it has a completely unique model for

Change

“ My parents can make a living from farming. It would not have been possible if I had not gained knowledge through school.” Safira Nyesige

fighting poverty by educating girls. They combine a good basic education with making the girls leaders and educating them in agricultural technology, health, hygiene and entrepreneurship. It is the girls in the family who take the lead in the work of changing the families’ living conditions. The education of girls in particular has proven to have incredible repercussions,” says Caroline Cederlöf, one of the founders of the Social Initiative. Safira Nyesige was 13 years old when she started at the girls school and she still remembers the first day. “It felt great. My parents got to be with me the whole first week and learn basic skills in, among other things, health and hygiene. We were very poor at that time.” Safira Nyesige then lived with her parents and seven siblings in a simple house built of clay with a thatched roof. “We only had two rooms. We had three acres of land that my father inherited, but we only had food enough for ourselves and we could not sell anything. We now have 17 hectares of land and a permanent house with ten rooms. My parents can make a living from farming and are expanding with employees. It would not have been possible if I had not gained the knowledge I learned through school.” The URDT is convinced that educated young women are the key to transforming poor rural communities into vibrant, sustainable rural economies. Something that is in line with the Social Initiative’s experience. And it is not only the immediate family that benefits from the knowledge that the girls gain through the URDT.

“We have taught our way of thinking to several families in the village. My parents do it now, and I do it when I’m home. There is so much to change,” says Safira Nyesige. When Safira Nyesige left school in 2010, thanks to everything she was able to teach them, her parents could afford to finance further studies for her and she trained as a nurse. After completing her three-year education, her parents were able to help her pay for a mini-pharmacy. Now that she works at the URDT, her sister manages the business, but there are future plans for an expansion. “My biggest dream is to start a real pharmacy here in the countryside in Uganda. It’s hard to get medicine here, so it is really needed.” Safira Nyesige’s success story is just one of many that the organisation Social Initiative has to share. “Of all the social entrepreneurs that we work with, 95 percent have achieved or exceeded the goals we set, and I want to emphasise that we have very high goals,” says Caroline Cederlöf. Safira Nyesige is 30 years old today and has two children. In addition to the dream of opening a proper pharmacy, she wants to ensure that her children have access to education. “Without education you get nowhere. I see a future where I can improve my knowledge of health and contribute with medication, that my children go to a good school and thrive and if everything works out, I would like to see that I have a car too,” she says and laughs. •

Social Initiative Social Initiative supports social entrepre neurs who solve societal challenges in Sweden, India and East Africa. Together with companies and philanthropists, Social Initiative contributes capital and knowledge to strengthen and scale up their work. Social Initiative was started

in 2002 by Caroline Cederlöf and Pernilla Bard. They wanted to challenge the traditional charity sector and created a new model to get involved and make a real difference. An important part of Social Initiative’s model is to measure results in order to be able to invest in

those bringing about the most societal change. Today, Social Initiative has a large network of social entrepreneurs and organisations around the world. They are based on the clients’ interests and match social entrepreneurs with companies, individuals and families.

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Culture

Music

Award to inspire cultural support The music industry had many challenges during the pandemic. Since 2013, foundations with cultural purposes can be tax-exempt. SEB’s foundation lawyer Brita Löfgren Lewin hopes that Bo Bringborn’s memorial prize will inspire more people to form foundations that support culture. TEXT: LINDA SANDKVIST PHOTO: STIAN ANDERSEN

Musical artist Ane Brun was one of the winners of the Bo Bringborn Memorial Prize 2021.

On October 1, 2021, the Bo Bringborn Memorial Prize for Individual Creativity was awarded. One of the prize winners was the popular Norwegian artist Ane Brun, who was noticeably moved and happy at the award ceremony. “This is a truly wonderful prize.” Bo Bringborn drew up his will in 1995. It stated that his estate would go to institute a music prize. The management of Bo Bringborn’s foundation is managed by SEB as a foundation with attached management. “We at SEB can undertake to manage foundations. Management here refers to responsibility for the entire foundation’s operations and not just asset management. The bank’s board is ultimately responsible. Foundation statutes that will apply to the foundation are drawn up together with the bank’s foundation lawyer,” says Brita Löfgren Lewin, foundation lawyer at SEB, who attended the award ceremony. Bo Bringborn’s memorial prize for individual creativity will be awarded for ten years starting in 2020 and the recipient will be a person who in some way through an individual achievement has excelled in the field of music. The prize money is SEK 250,000 per year and is distributed by the Bo Bringborn Foundation. The jury, which nominates the winners, has chosen to divide the prize money and nominate two recipients per year. Last year, the prize was awarded to both the 2020 and 2021 winners. In all of the Nordic countries, the cultural sector is one of those hardest hit by the pandemic, making the award extra welcome. The annual prize money is one of the major music prizes in Sweden, confirms Fredrik Wetterqvist, permanent secretary at the Swedish Royal Academy of Music, who sits on the jury.

Bo Bringborn’s Memorial Prize for Individual Creativity of SEK 125,000 was awarded: Year 2020 Ulla Magnusson and Rooney Magnusson for their many years of work with Kallkursen for young string musicians. Magnus Kjellson for his tireless work in creating a lively scene for baroque music in Gothenburg and the surrounding area. Year 2021 Ane Brun for her ever-changing artistic work and musical development since her debut at the Hultsfred Festival 2001. Peter Pontvik for his tireless work for early music. Not least by founding the Stockholm Early Music Festival in 2002 and as the initiator of European Early Music Day.

It was well noted by the prize winners that power injections like these are important for strengthening Swedish cultural work and drawing attention to artists as the entrepreneurs they actually are. In 2013, the Swedish Parliament decided that foundations that have a cultural purpose can be tax-exempt, if they use a sufficiently large part of their return for culture. “I am surprised that more cultural foundations haven’t been formed,” says Brita Löfgren Lewin, who hopes that Bo Bringborn’s music prize will inspire more people to form foundations with the purpose of supporting culture. •

Foundations

Health

Startups

Donationions

Easy to give away a vaccine dose Billions of people live in countries that cannot afford to vaccinate their own pop ulations against Covid-19. Elisabeth Thand Ringqvist took matters into her own hands and started the Vaccine Forward platform, which makes it possible to donate money for vaccinations. TEXT: MAJA-STINA SKARSTEDT PHOTO: FREDRIK HJERLING

In January 2021, angel investor Elisabeth Thand Ringqvist got the idea for Vaccine Forward – vaccinations for people in countries unable to afford vaccinating their populations. Just 45 days later, the donations started. Elisabeth Thand Ringqvist explains the idea behind the initiative: “It would have been great if you could have easily paid for a vaccination for someone who otherwise would not get one. If you use the best of digital payment platforms, social media campaigns and regular printed posters, it would be possible to create a movement that wanted to ‘pay it forward.’ “What I like best is to start things that don’t exist yet. That’s how it was with Vaccine Forward. For a long time, I worked with the Global Alliance for Vaccine and Immunisation (GAVI), so I had an insight into the problems in the poorest countries. The focus was on childhood vaccinations then, but I assumed that the problem was the same during the pandemic. And that was it,” says Elisabeth Thand Ringqvist. She has previously worked with many startups around payment solutions, user-friendliness and in different

platforms, so that element of the initiative did not feel complicated to set up. Vaccine Forward connected with the Stripe platform, which handles payments from 140 countries, and SEB arranged for the solution to receive payments from all over the world. “I gathered some friends, and friends of friends, and together we built a first version which we launched 45 days after the first meeting. Adjustments have been made over time, but it was important to get started quickly.” Elisabeth Thand Ringqvist and the others in the team volunteer their time and have no administrative costs. As a partner of the GAVI, they oversee donations at the end of each month. “The only thing that costs is the use of the mobile payment system and the card fees that we have negotiated down as much as possible.” And the investment has paid off. On the website vaccineforward.org you can see at any time how many vaccinations have been donated and that each costs SEK 85. “The goal is one million vaccinations, that’s SEK 85 million,” says Elisabeth Thand Ringqvist. •

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Economy

Retrospective

2021

Investment clock rethink? The pandemic put an end to a decade of low-intensity boom. Now both inflation and interest rates are rising, making it time to take a closer look at the classic investment clock. But what is the clock really?

Globalisation, digitalisation, the financial crisis and a decade marked by low inflation, large debt build-up, strong asset inflation and money seeming free for the taking. It all came to a halt as the Covid pandemic spread around the world. For a long time, we have not seen any “normal” business cycles, with central banks slowing down and accelerating the economy with the help of the interest rate weapon. Meaning the so-called investment clock, which has historically given an indication of where we are in the cycle, has not been relevant either. But in 2021, inflation suddenly went up and the US ten-year interest rate tripled from a bottom level in the summer of 2020. The heads of central banks began to talk about reduced asset purchases and flagged higher repo rates. “We’re ending up in something we recognise. Inflation is coming back and interest rates are not just going down.” So says Fredrik Öberg, Chief Investment Officer, Private Wealth Management & Family Office, who believes there is reason to take down the old investment clock from its hidden place on the shelf, blow off the dust and think about where the hands are pointing. “Throughout 2021, we were in the upper part of the clock – the recovery phase – which began already in the second half of 2020. Then we had a rally in cyclically sensitive shares but also in shares that are undervalued – value shares. It was triggered by the fact that the economy picked up speed and that interest rates began to move upwards,” says Fredrik Öberg. When the rise in interest rates slowed in late spring of 2021, cyclically sensitive shares lost momentum. Overtaking them were growth companies instead. “Overall, we have seen a strong connection between how the interest rate has gone and what type of shares investors have favoured. We believe that pattern will continue.” Despite that the stock market year 2021 ended on a real plus – the Stockholm Stock Exchange’s broad index went up 37 percent – profits have risen even more. On a global basis, they are expected to have risen by about 50 percent. “Mainly growing profits are what has driven the stock market rise. Profits have moved more than the stock market, which means that valuation, even if high, actually went down last year,” says Fredrik Öberg.

“Companies have been enormously good at parrying such things as component shortages, increased costs for input goods and transport, and they have actually had the opportunity to raise their prices. All this was what worried investors before the quarterly reports.” Bottlenecks, disruptions in production processes and delays in final deliveries – this recovery phase has not lacked major challenges. But the current business cycle does not look completely normal either. The pandemic caused not the usual recession but a sudden brake – an external shock to the system. The GDP has turned from minus numbers to large plus numbers. Today’s prices are comparable to prices a year ago, which in some places were very depressed due to the pandemic. To add insult to injury, there is a component shortage and an energy crisis – a spoke in the wheel making it difficult to assess the size of the underlying inflation. Today, European and US inflation are around 4 and over 5 percent respectively, on an annual basis. The million dollar question is: Is high inflation temporary or will it stick? “The central banks, like most economists, believe that the unusually high inflation levels will gradually fall back. But when? No one can know for sure,” says SEB’s Chief Economist Jens Magnusson. “We believe it will get worse in the coming months, before it gets better. Now gas and oil reserves have been built up ahead of a cold winter, but before summer, energy prices should stabilise. Furthermore, transport should be cheaper as container freight traffic gets in order, and component shortages should be alleviated when restrictions are eased and production is normalised.” What does it mean in numbers? “Inflation in the US will fall back during the year but will probably exceed 3 percent throughout 2022. At the same time, European inflation is expected to fall to a more normal 2 to 2.5 percent in the second half of the year.” In the wake of rising inflation and GDP figures, central banks have begun to turn off the taps. For example, the US Federal Reserve has already begun a reduction in asset purchases, which is scheduled to end completely in March. The next step will be interest rate increases.

Fredrik Öberg, Chief Investment Officer, Private Wealth Management & Family Office

Jens Magnusson, Chief Economist SEB

The magazine is published at the end of January 2022 and reflects SEB’s forecasts and assessments at that time.

“We believe the US Federal Reserve will start raising in the spring and then increase the interest rate in rounds to around 2 percent by the end of 2023,” says Jens Magnusson. In Europe, the Norwegian Central Bank took the lead when in September last year it raised the key interest rate from a record low of zero to 0.25 percent. At the same time, SEB’s forecast is that the Bank of England will gradually raise the repo rate until the end of next year, when it is expected to land at 1.5 percent. The Swedish Central Bank is expected to act with much more restraint. “We expect two increases to 0.5 percent during 2023. That the Swedish Central Bank is a little later on the ball is partly due to the fact that inflationary impulses are weaker in Sweden than in many other places, and partly because they are largely driven by rising electricity and fuel prices, typically not something that the bank wants to act on,” says Jens Magnusson. Ultra-low interest rates have for a long time served as rocket fuel for the stock market. The question is what happens when interest rates tick upwards. “There are historical patterns that say that the US ten-year interest rate must be up to 3 percent for the stock market to be hit by a strong headwind. That would require a doubling from the current level of about 1.9 percent. That is quite far away. However, we cannot rule out higher interest rate sensitivity today as compared to the past,” says Fredrik Öberg. What do you recommend to investors? “We are in the upper part of the investment clock, and expect global growth in 2022 that is above trend growth and profits that rise between 5 and 10 percent. The recommendation is therefore still stocks,” says Fredrik Öberg. “Mix cyclical and low-valued shares. Growth companies are always good as long as they have not received too high a valuation. Defensive companies will come into more focus the further we move forward in time and the more the central banks raise their policy rates. You cannot just stick to last years’ winners, as the shaky start of 2022 has made clear.” Among possible fixed income investments, look at corporate bonds with short maturities. “If you invest in fixed income securities with longer maturities, you risk a setback if and when interest rates continue to rise,” says Fredrik Öberg. •

The Investment Clock Historically, the investment clock has helped investors position themselves. It takes into account recurring factors in a “normal” business cycle and provides an indication of the phase in which the economy is in. It offers a picture of future developments for both interest rates and growth, two important parameters for stock market gains and valuation. During large parts of the 2000s, however, the investment clock has been less relevant as economic development has been characterised by crises and structural forces such as globalisation and digitalisation. The last decade, up to the pandemic, has been called a gold rush, a long period marked by decent growth coupled with low inflation and thus low interest rates. But with inflation and interest rates pointing up, the investment clock has become relevant again. “Now we are in the upper half – in a growth phase on the way to the maturity phase,” says Fredrik Öberg, Chief Invest ment Officer, Private Wealth Management & Family Office.

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Economy

Retrospective

2021

January 2021 New US president

Start of 2021 Mass vaccination begins During the beginning of the pandemic, several vaccines were developed at record speed. By February 2021, three vaccines had been approved in Sweden and the rest of the EU. Thanks to mass vaccination, the countries were able to open up and economic recovery took off.

In January 2021, Joe Biden was sworn in as the new President of the United States. Between election and accession, the S & P 500 had risen 13 percent – according to analysts CFRA, the best stock market development any president had between election day and accession. Hopes of major infrastructure investments, climate packages and a giant stimulus pack age to boost the economy and combat the pandemic fuelled the stock market. But despite the fact that Biden last year managed to push through stimulus packages of several trillion dollars and a continued good stock market develop ment, the current US president has been hit with low popularity figures. Adding insult to injury, Biden has had difficulties with his own party – the right and left have pushed in different directions. Among other things, several Democrats in Congress voted no to an infrastructure package of just over USD 1 trillion. But thanks to enough Republicans voting in favour of the proposal, it was approved by Congress in November. However, the last package of three hit a brick wall in Democrats’ own ranks when a Democratic senator voted no, which probably means a slimmed-down proposal in 2022.

April 2021 Inflation in the US picks up European inflation is different from US inflation. “If you adjust for energy prices, European inflation is not too far above 2 percent – much as the central banks want it to be. In flation in the US has a much broader base,” says chief economist Jens Magnusson. When inflation began to point upwards in the US in summer of 2021, it was driven by a few goods and services, such as used cars and services in the travel industry. Later, food prices and rents also rose. Clothes and a number of other goods also started to tick up, says Jens Magnusson. Price increases were due to a number of factors, such as high demand, component shortages, shortages of a number of raw materials, more expensive transport and an energy crisis. “All energy-intensive production has become much more expensive. To some extent, companies are forced to absorb those costs. But as far as you can, you try to pass it on to the end consumer.”

July–August 2021 Bottom for the US ten-year interest rate Since the early 1980s, the US ten-year government bond yield – with some bumps in the curve – had been pointing down wards to bottom in the summer of 2021.

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Economy

Retrospective

2021

September 2021 Chinese real estate crisis shakes stock markets globally As the pandemic loosened its grip in 2021, demand for energy increased, and in some places the energy crisis has been particu larly pronounced, with orders to shut down various industries. The Chinese stock market has also developed weaker than the stock markets in the US and Europe. China has also been on the agenda due to the crisis in the Chinese real estate company Evergrande – the country’s second largest real estate developer, with over 200,000 employees. The company has debts of just over USD 300 billion and missed a number of interest payments last year, which shook the stock markets.

Since then, problems have arisen in other Chinese real estate companies, such as the Kaisa Group, which show that the problems are not isolated to Evergrande. “As for Evergrande and other individual companies, we believe the Chinese author ities will redeem them, this is not about such large amounts in relation to GDP, foreign exchange reserves and the banking system. But there is also an overall will in China to reduce lending and indebtedness and this will continue to pose some prob lems in the construction and real estate sector and dampen growth in the future,” says Jens Magnusson.

November 2021 Fed to reduce asset purchases In November 2021, the US Federal Reserve announced that it was slowing down asset purchases.

December 2021 Omicron worries The uncertainty surrounding the effects of the Omicron variant on the economic recovery marked the last month of the year, with a global stock market hiccup as a result. Concerns that existing vaccines are not effective against the new virus variant and the need for stricter restrictions affected the world’s financial markets.

January-December 2021 To be continued... The very strong profit trend drove stock market development in 2021. “Analysts’ profit forecasts were too low last year and companies managed to exceed expectations every quarter,” says Fredrik Öberg.

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For several years, the artist Mike “Beeple” Winkleman created one digital image per day, which he then put together into a collage: Everydays - the First 5,000 days. The digital artwork set a new auction record for digital works when it was sold by Christie’s for just over USD 69 million. PHOTO: CHRISTIES

Three quick answers about crypto art What is crypto art? Through an NFT, which stands for non-fungible token, you can buy ownership of a digital work of art. An NFT is a kind of certificate of authenticity linked to blockchain technology that makes it possible to determine who owns the original.

How do you invest? There are several marketplaces for crypto art. In most cases, you need to create some form of crypto wallet, but in some places it is possible to transfer money directly from a regular bank account.

What are the risks? The uncertainty. Some of the works of art may have a future and constitute a good investment, others will quickly be forgotten. It is important to get it right.

Art

Crypto technology

Digitalisation

Virtual step for art Crypto Technology makes it possible to invest in and own digital art. Thanks to a digital signature, virtual works of art can be sold as unique originals. And so, the art market moves into the world of digital art. TEXT: ANNA-KARIN STORWALL AND KARIN STRAND

There were significantly more than just art lovers who raised their eyebrows last spring when the traditional auction house Christie’s sold the digital artwork Everydays - the First 5,000 Days by the American artist Mike “Beeple” Winkelmann for the somewhat unimaginable sum of USD 69.3 million. Never before had a digital work been sold for a similar amount. The artwork is a collage consisting of 5,000 digital pictures and was bought by Vignesh Sundaresan, a pro grammer and investor in cryptocurrencies who lives in Singapore. The buyer now has the right to exhibit the work, which he did at a digital museum. Digital art has been around for decades, but it is only now that, thanks to a special type of crypto technology, one can assure that a work is an original and not a copy. The current crypto technology is called non-fungible token: NFT. Each token corresponds to a unique part of a blockchain that creates a digital fingerprint. The technology is similar to that behind cryptocurrencies, but unlike in cryptocurrencies, an NFT cannot be replaced. This makes it possible to see which work of art is original, its provenance and what it was sold for. Simply put, you can see an NFT as certificate of ownership of a unique digital product – for example, a work of art, a trading card or a piece of music. Trading in NFTs is usually done in cryptocurrencies, but also in dollars, and there are a wide range of different market places where artists, musicians and companies can sell their tokens to avid collectors. Although it has been possible to trade in NFTs since 2017, it was in 2020 that the market exploded. During the third quarter of 2020, NFTs were sold for USD 10.7 billion accord ing to market tracker company DappRadar. That was eight times more than the sales volume during the first quarter of the same year. In addition to the sharp increase in the number of transactions, there are also reports of how digital tokens have been able to increase in value from a few thousand dollars to several million in just a few months. Right now, prices are driven more by the fact that there is hype about this new crypto economy than by the originality

of the works of art, says Michael Storåkers, founder of the gallery CF Hill, who specialises in curated exhibitions and brokering and advising on works of art. Michael Storåkers describes the phenomenon as a new channel for the expression of art, in the same way that photography and video have been introduced to art before, but so far he is lukewarm about the artistic value in the huge market that has quickly flared up. Kirsten Hinder is a co-founder of the Swedish art tech company Nfinitymark and is much more positive about the artistic value created in the form of NFTs. With 20 years of experience at both museums and galleries, in the spring of 2021 she was taken by the cryptocurrency expert Champike Munasinghe’s idea of linking blockchain technology with physical art. Together they founded Nfinitymark, where an important part of the business consists of tagging works of art and other valuable objects with a unique chemical substance that gives the work a serial number in a block chain, which guarantees its authenticity and at the same time accounts for ownership history. “It’s nice to have a handshake and a letter of authenticity when you invest in valuable art, but this way your artwork becomes even more protected and more prepared for a digitalised future,” says Kirsten Hinder. She emphasises that Nfinitymark does not focus on the current speculative market, but instead looks forward to the long-term benefits that NFT and blockchain technology can bring. “In 2021, to say the least, it was turbulent as far as the market for NFT is concerned, but our focus is more long-term. When the dust has settled, we are ready to offer smart solutions within the framework of the new technology. But we are not at all interested in the current bubble,” she says. While she is positive about the artistic value created within the framework of the new technology, she also sees the difficulties for the buyer in finding more interesting objects in the jungle of today’s NFT platforms. The range consists of

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The authenticity of physical works of art can be ensured with the help of NFT technology. Johan Furåker’s Venus is one of the physical works of art NFT-tagged by Nfinitymark.

Artist Ditte Ejlerskov’s Small Dream Gradient 32 is one of the works of art NFT-tagged by Nfinitymark.

everything from collectibles to advanced art, and creators are everyone from programmers and students who hope to earn some extra money, to experienced artists. As a buyer, you also need to possess at least some technical knowledge to be able to complete a deal. But regardless of today’s variation in terms of supply, Kirsten Hinder is convinced that NFTs are here to stay in the art world in several ways. “What we see is a natural, digital development, which will change the art market we know today. In addition to seeing more digital platforms, where experts help buyers and sellers find each other in the digital art world, physical objects will also get a digital aspect,” she says. In the Swedish art market, so far it is quite unusual to link physical art with NFT technology, and Nfinitymark is a pioneer in its field. But internationally, the development has come further in some places. Several new art funds with different NFT connections have seen the light of day in a short time. The digital investment platform Artcel’s fund “Millenials” offers the buyer a hybrid investment in art – the works on which the fund is based are physical, but your ownership is registered in a blockchain. And in March 2021, Chinese tech entrepreneur Justin Sun launched the “Just NFT Fund,” with the stated goal of bridging the gap between blockchain technology and the world’s top artists, as well as supporting the growth of NFT artists. Kirsten Hinder believes that new ways of investing in art will above all attract a younger generation into the art world. This was clearly the case in the auction of Beeple’s work at Christie’s, where only three of the 33 bidders were known by the auction house prior to auction and a majority were from generation Y or Z. And 31-year-old Justin Sun admitted in a Tweet that he was one of the losing bidders. “We are seeing a generational change in art collection, there are more and more younger buyers in their 30s. Digital technology is a language they understand and appreciate. For an older generation not born into the technology, it can be more difficult to absorb, even though we see that there is an interest and we work to help our customers get over the threshold,” says Kirsten Hinder. Regardless of the age of the buyer, she thinks it should be possible to see collecting in digital art as a way to diversify an art collection. “Don’t put all your eggs in one basket, but we are acquiring more and more digital assets and it is very interesting to see how more people find their way into the art world.” •

Thorough research is key Investing in NFTs is like any other investment – good research usually pays off. So says SEB’s Eline B Braathen, Concept Manager Art & Leisure. What can you say about the bank’s new art offer? “The Art & Leisure concept is part of SEB’s new venture, SEB 1856, which offers a range of non-financial services for our Private Banking customers. Right now we are in an early phase where we evaluate which offers and products give our customers the most value. Here, it is important that we get input on what customers actually want and need, but also that we offer something they do not know they need yet. But in general, the idea is that you should be able to turn to us for guidance and support in everything related to art and leisure.” How do you see the new NFT technology, what impact will it have on the art world? “Through NFT technology, block chain technology has for the first time been linked to people. In this

way, NFTs are a kind of natural evolution. The technology has been hyped a lot, and as it now begins to become more mainstream, it is clear there are many who have strong opinions and thoughts about the future of NFT. But technology has undeniably exposed a whole new group to the art world, people who in many cases would never have ventured into it otherwise. So no matter what the future holds for NFTs, it has had a positive effect on the more traditional art market.” If you are interested in buying an NFT-tagged work of art, what should you as a beginner think about? “As always, it is incredibly important to do thorough research. You need to understand how NFTs and the NFT market work long before you invest in your first NFT.”

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Travel

The Nordic region

Nordic island life With tens of thousands of islands, each with its own character, it’s time to steer your next trip to one of the more unknown islands of the Nordic coastline – or in a lake. TEXT: HENRIK EMILSON

Islands

SWEDEN

NORWAY

Lurön Visit an island in a lake, more specifically Lurön in Sweden’s largest lake, Vänern. The island is part of an archipelago with about a hundred islets. On the main island there is a hostel with an adjacent restaurant. On the menu? Fish from Lake Vänern, of course. The simplicity and the hiking trails, the sauna and the refreshing dip are the attractions here. In the evening you can sit on one of the wooden benches and wonder how on earth the cows got on to the island.

Myken There is little congestion on Myken. Only twelve permanent residents live here and there are no cars. Enjoy the view of Lofoten’s peaks and Svartisen’s glacier. Visit the lighthouse with sweeping views in all directions. After all, this is the island that lies furthest from the Norwegian mainland. It is also an excellent island to be stranded on, because it has its own whiskey distillery, the first Arctic distillery of its kind that also offers guided tours with tastings.

Ulvön Ulvön is called the Pearl of the High Coast and that may well be true. If you notice a special scent in the air, it’s probably because they’ve been making fermented herring here for over a hundred years. Here you can live, eat and stroll along the picturesque Hamngatan, with its beautiful wooden houses. From Lots berget you have a panoramic view and if you listen carefully, you may be able to hear some one singing Ulvön’s own song.

Fleinvær Cool architecture, northern lights and fishing. The Arctic Hideaway at Fleinvaer actually started as a project to create a beautiful place to work. But the buildings turned out to be excellent for overnight stays. There are four small houses where you can book up to eight beds – and yes, the cabins are storm-proof.

DENMARK Läsö This is a salt-soaked island, liter ally. On Läsö, salt is produced in salt works, which you can visit. Salt is also an important ingredient in the 37-degree salt basins you can swim in at Läsö Kur, a spa built in a former church. On the island you will find the fine seaweed farms with their traditional half-timbered houses and roofs of eelgrass. But, the best thing is probably what you find on your plate: local scampi. Vejrö In Smålandsfarvattnet you will find this little Danish gem of 1.57 square kilometres and only two residents. Despite its diminutive size, the island has accommodation for visitors, such as Vejrö Resort, Hotel Vejrö or Bed and Breakfast Sejerlund, as well as restau rants, the cosy Skipperly, which is one of the island’s gathering points, or the food truck Schymann. Lurön

FINLAND Klovharun In the Porvoo archipelago on a windswept cob lies a simple wooden cottage with windows in all directions, without electricity. For 25 years this was where Tove Jansson spent her summers with her partner Tuulikki. It was here that she got inspiration and wrote many of her fine works. After the boat broke down in 1991, she moved from the island and donated the cottage to Pellinge Hembygds förening, which rents it out during May-June. Hailuoto On the northern tip of the Gulf of Bothnia is a birdwatchers’ paradise called Hailuoto. There are several bird towers scattered around the island and if you’re lucky, you might see more than 300 bird species. Bring the binoculars! In the evening, try a beer from the local brewery Hailuodon panimo and listen to Organum, a sound artwork created by a local artist. Depending on the season, you can choose to camp, stay in inns or on farms on the island.

PHOTO: PASI AALTO PHOTO: JUHO KUVA

Fleinvær

Myken

PHOTO: JUHO KUVA

Klovharun

Hailuoto

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Careers

Perspective

Talent

Talents of the future driving change In order to be part of a solution-oriented business community, SEB invests in diversity, digitalisation and new talent. An international trainee program is one way to invest for the future. TEXT: JESSICA JOHANSSON PHOTOS: JOEL SHERWOOD

Working at SEB means much more than keeping track of finances, funds and investments. It is also about under standing customers, their values and behaviours. “In order to find new solutions and constantly improve our services to our customers, we need employees who challenge us and our way of thinking. We are also convinced that diversity, where people with different perspectives and backgrounds meet, creates a collective intelligence that is crucial to our success,” says SEB’s Head of Group HR Jeanette Almberg. “As a bank, we have great opportunities to make a difference, both for our customers and society. Sustain ability and digitalisation are two crucial focus areas for SEB. They permeate both our long-term strategy and our international trainee program for 2022/2023.” Américo Fernández and Elisabet Törnered are two SEB employees who are involved in driving change and who have both kick-started their careers via SEB’s international trainee program.

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Américo Fernández, Household Economist

Américo Fernández started at SEB in 2011, applying to the bank via a diversity initiative. He was then admitted to SEB’s international trainee program for 12 months. Since then, he has, among other things, been the bank’s business economist, and today he is SEB’s household economist and the bank’s spokesperson on issues concerning households’ personal finances.

“ I’ve had the privilege of working with some of the Swedish financial world’s foremost educators.”

How was the trainee program a good start for your career? In that final phase of their studies, many people probably feel uncertain about what their education will mean in practice once they step into the labour market. That’s how I felt, so it was important to find a wide open door into an industry that I already knew I wanted to enter: the financial industry. For me, the mix between the feeling of an extended study period and the opportunity to find my specific niche was a perfect combination. How did you realise that you could contribute to societal change through your professional role? Most people who study economics are driven by an interest in making major connections in order to find the best solutions for society from an economic point of view. This is most often done through a central authority such as a central bank or ministry of finance. But I realised quite quickly that job is also done at SEB. Banks are most often associated only with financial products and profit margins. What many may not know is that the compa ny invests large resources in public education and sustainability. In an area dear to my heart, public education, it is about helping customers as well as the general public make better and more well-informed private financial decisions. The hope is that it can

contribute to better finances, reduced stress and a good quality of life throughout a lifetime. It can be about informing about how, for example, an uneven work history affects your future pension or how cognitive mistakes such as procrastination and herd behaviour make you act foolishly when it comes to your savings in the stock market. With several educators in the family, it felt natural to work with these issues – and when I started the trainee program, everything fell into place. During my first time at the bank, I also had the privilege of working with several of the Swedish financial world’s foremost educators and it has been a fantastic school. Why do you think people with different backgrounds should apply for the international trainee program? The bank has been around for 165 years, and you only succeed if you as a company are prone to change. Society is changing and younger generations are putting pressure on companies to be curious, innovative and sustainable. We take on great societal challenges with humility and with the knowledge that we do not have all the answers. This means that SEB needs to recruit talent with different perspectives, backgrounds and education to cope with challenges that are in many ways different from those they faced 20 or 30 years ago. •

SEB’s International Trainee Programme About the programme: SEB is a large international company with more than 15,000 employees around the world. The trainee programme is designed to give a broad introduction to what it is like to work in a large and complex international organisation. The

program has room for about 20 participants. The majority of these are located in Sweden, but we also have some positions at our international sites. The program starts every year in September and lasts for nine months. From the beginning, you

are employed in a specific role. During the trainee programme, practical work is mixed with training to give you the best possible conditions for develop ment and have an exciting career within SEB.

Elisabet Törnered, Investment Communication Analyst

Elisabet Törnered, 26, studied Industrial Economics at KTH Royal Institute of Technology for five years, specialising in production. From September 2019 to May 2020, she participated in SEB’s international trainee program. Today, Elisabet Törnered has a permanent position as Investment Communication Analyst, and works, among other things, with developing and communicating about new invest ment products.

“ I think we can contribute with new perspectives.”

Why did you apply for the trainee program? I was early set on applying for a trainee program, because I was not sure what I wanted to work with and thought it would be a smooth transition into working life at that time. A trainee program provides a good overview of a company, and the opportunity to test different areas to get a feel for what you want to do. It is difficult to know what a profession means in practice before you have tried it, no matter how much theoretical knowledge you bring with you from school. I had gotten a good picture of SEB, and also felt that there were good career opportunities because the business is so broad. You can choose to work with larger areas, overall issues or dive deep and specialise in a niche.

What do you think the new generation, which you represent, can contribute to the industry? I think we can contribute new perspectives. Because we come in without knowing how things “should” be done, we find it easier to challenge why and how they are done – and also question whether they even need to be done. We have a different approach to social media and digital channels, because they are and have been such a natural feature during our upbringing. I also find that young people today have a great commitment to society, and in general we are value-driven and want to work at companies that are value-driven as well. The investment by SEB in the program is truly an invest ment in future talent.

What did you learn that you did not expect? That it was so easy to network. I was surprised at how short the contact paths are within the bank. As a trainee, you also have endless opportunities to contact people without needing a specific reason other than learning more about what they do. Everyone is very helpful and welcoming. This means that you dare to contact pretty much anyone, even people high up in the organisation.

What do you work with today? Today, I work with developing and communicating about new investment products, as well as following up and analysing flows for the products that are highlighted. The trainee program has given me a solid foundation to stand on and I have devel oped a lot in my role after the program. Now I am on my way to new challenges in a new position within SEB, which feels exciting. •

Our international trainee program is a great way to start your career. During your trainee year, we will prepare you and give you the best tools for you to develop and take on challenges to drive

change. The program is structured in three parts that are divided among your home department, job rotations and training.

Want to know more? Read more on SEB’s career page at sebgroup.com or use the QR code.

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Global entrepreneurship

Tech

Investment company

The world as a workplace Swedish super-entrepreneur Henrik Persson Ekdahl has became a billionaire thanks to his tech successes and his sure instinct for the right partners. He has just moved to South Africa for a new business venture. TEXT: MAJA-STINA SKARSTEDT PHOTO: ANDREAS JOHANSSON

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He feels like drive personified, Henrik Persson Ekdahl. And the power of action shines through when he talks about his career that took off with ice cream sales on the beach in Åhus, in Southern Sweden, where he rocked the business by hiring school friends. Today, Henrik Persson Ekdahl runs the investment company Optimizer Invest and has no plans to slow down. Have you always been so driven? “It comes from my childhood. My father ran a tire workshop with his two brothers and I realised early on that you have to work extremely hard both to succeed and be able to put food on the table. But what happiness is, of course, is up to everyone.” It nearly came to an end when he was only five and he was involved in a major accident. Henrik Persson Ekdahl was run over by a lawnmower and lost large parts of his right foot. Before healing, he was dependent on others for a long time. “That feeling has always been difficult. And that’s proba bly why I’ve always wanted to be financially independent. I wanted to make my own money early.” Hence the ice cream in Åhus. When he got to be a few years older, he saw a chance to do more business. He bought cars on teletext, reselling them via newspaper ads and on new digital platforms. “Those teletext sellers could not reach out as widely as I did. I dare say that I am probably the one who sold the most cars without having a driver’s license myself,” says Henrik Persson Ekdahl and laughs. He has always been fascinated by cars, not just luxury cars, but motor vehicles in all forms. Henrik Persson Ekdahl has a wide mix of experience. He trained as a swimmer at an elite level in the US, sold expensive watches to avoid student debts in England, ran a debt-collection company for parking fines and did a master’s in Gothenburg where he ended up in a trading company that sold pulp around the world. “I was 23 years old and got a taste of global entrepre neurship. I also proved to myself that I could learn an industry that I had not been familiar with before.” Henrik Persson Ekdahl wanted to build companies and it was in the same time that the poker boom hit the Nordic

region. He himself had never played, but he saw a market and a completely digital industry. Together with a friend, he started the online poker company Bestpoker. “The first morning I came to the office and saw that we had earned 75 euros without being there was a ‘wow’ for me. Business was rolling while we were doing other things.” Even though Henrik Persson Ekdahl has never been able to program himself, he has been good at teaming up with the right skills. It continued to move well – and fast. Bestpoker was listed on the London Stock Exchange in 2006 and His former business partner André Lavold called. He had started Betsafe and Henrik Persson Ekdahl joined and became CEO in 2007. The company did well and four years later Betsson bought the company. The two business partners then lived in Malta with each of their families in 2011–2014. “We felt we had a unique competence – running global online companies. We could scale tech and had learned to drive traffic. We wanted to start our own investment company.” Through Optimizer Invest, they now invest their own money, without running a fund, never taking in external money. “We only invest in things that cannot be touched. We have no warehouse, distribution, production or the like.” The company has been running since 2013 and business has gone well. In 2014, He and his family moved to Marbella, where they lived in a palace-like home in the town’s finest area. But now everything has been sold for new adventures. “We moved to South Africa at the end of the year. Our oldest son is 13 and our younger ones are 11 and 6 years old, and we realise that it will not be long before the children start moving away from home. Therefore, we want to give them more experiences before then.” The family has bought a horse farm outside Cape Town and he will build a tech centre. The goal is to set up a hub with 200-300 employees working for Europe within the next three years. Henrik Persson Ekdahl sees South Africa as a strong growth region with great tech expertise, which he has followed closely for many years. A bit forgotten in comparison with Asia, he says. “It will be an important trip for the family also. Whatever future decisions the children make, we want to give them a large toolbox they can do whatever they want with.” •

PHOTO: ANNIKA PERSSON/PRECIOUS PEOPLE

“ We only invest in things that cannot be touched. We have no warehouse, distribution, production or the like.”

Henrik Persson Ekdahl Age: 40. Family: Wife Matilda, three children – 6, 11 och 13 years old. Home: Outside Cape Town, South Africa. Business: Co-founder of Optimizer Invest, advisor for Crunchmill Advisors and building a tech hub outside Cape Town. Hobbies: Art, cars, sports.

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Outlook

Asia

Economy

The magazine is published at the end of January 2022 and reflects SEB’s forecasts and assessments at the time.

Eugenia Fabon Victorino, SEB’s Head of Asia Strategy

A dynamic region beyond China China often comes to the forefront when the rest of the world’s economic gaze turns to Asia. SEB’s Head of Asia Strategy, Eugenia Fabon Victorino, analyses the current situation and broadens the picture of Asia to include additional interesting markets. TEXT: JONAS REHNBERG

The reopening of China’s economy following the pandemic set the stage for a series of new and far-reaching state initiatives from President Xi. The Common Prosperity Policy aims to narrow a growing wealth gap that threatens the country’s economic ascent and the legitimacy of Communist Party rule, while the Dual Circulation Strategy is a two-pronged development strategy that aims to strengthen domestic consumption as well as production and technological capabilities, to hedge against future global market disruptions. The Three Red Lines policy, finally, aims to reduce the level of debt in the property sector and curb excessive price development. Evergrande became the first “victim” of the clamp-down. Taken together, the rapid introduction of these policies has caused concern among foreign investors, notes Eugenia Fabon Victorino: “The situation favours other parts of Asia, where foreign investment would seem to be more welcome at this stage.” So, where to look? “India is certainly becoming interesting, the growth outlook will return to pre-Covid levels and the long-term potential is really unimaginable. India will have a

bigger population than China soon enough, but the income level and growth in income is still far behind.” The inherent potential of India was tempting enough to survive even a pandemic. “Throughout the pandemic and given the less than ideal way India dealt with Covid, you would have expected investors to just flee. On the contrary, foreign investment really kept flowing in, attracted by the long-term outlook.” India has disappointed before, warns Eugenia Fabon Victorino: “For a long time, India’s promise has always outpaced the reality. Economic performance has consistently failed to match expectations. However, I always try to temper expectations when investors say India is going to be the next China I say, ‘No country will be the next China.’ Because China is very different. Not just in terms of state control, but in terms of culture and education.” For example, when China embarked on their industrialisation drive, the literacy rate among females was much higher than it is in India today. “The speed at which income growth will come in India will not necessarily be the same as seen in China. Less than 30 percent of the

India’s population is growing and looks to be overtaking China. The potential for the country’s economy is unimaginable in the long run, says SEB’s Head of Asia Strategy Eugenia Fabon Victorino, who is a frequent speaker at major international media outlets like Bloomberg TV, CNBC, and BBC.

women work. So it’s very difficult to see the per-capita income growth in India will be as fast as China’s.” From an investor perspective, which sectors in India are particularly promising? “I am very optimistic about the consumer segment, based on the growth in income.” Among the highlights in Asia 2021, Eugenia Fabon Victorino says the reopening of the countries matters most and will carry over into 2022. “India had hopes of becoming the vaccine factory of the world, yet they are still lagging behind, which has delayed the recovery.” In general, the longer the delay in reopening the economies in India and other Asian countries, the bigger the hit to the income on a permanent basis, warns Eugenia Fabon Victorino. “On a positive note, India still has a very young population, more people are becoming literate and more tech-savvy. On a structural basis, the consumer story is still strong in India as well as in Southeast Asia.” Returning to the global market jitters spurred by the problems of China’s second largest property developer, Evergrande, Eugenia Fabon Victorino offers a word of advice to the faint-hearted: “In my view, all of the

challenges for the property sector – which culminated in the case of Evergrande – were really policy-induced. These challenges could disappear overnight if the authorities said they were abandoning the Three Red Lines policy. Since this will not happen, we’re likely to see a highly controlled implosion of Evergrande. The impact on various stakeholders will depend on where they fall in Beijing’s priority list. Some will be protected while others will be made to pay for the risks they took.” She points out that home buyers who have prepaid their yet-to-be-completed homes will be protected and that authorities have assumed control over suspended projects. “Banks have been instructed not to anticipate any interest payments and bank loan maturities will likely be extended. The last thing those in power would want is to push even well-capitalised developers into selling off.” The financial crisis of 2008–2009 also had its roots in the property sector and the mass of hidden sub-prime mortgage loans. The current situation in China, however, is very different. “The difficulties are not rooted in households defaulting but in excessive leveraging among some developers.” •

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Outlook

South Africa

Development

“Knowledge creates power” With its approximately 60 million inhabitants, South Africa is Africa’s largest economy. Despite many years of economic growth, the country is struggling with a number of challenges. Access to a good education guarantees sustainable development, says Professor Mamokgethi Phakeng. TEXT: OLA HELLBLOM PHOTO: UNIVERSITY OF CAPE TOWN

South Africa has several turbulent decades behind it. The advent of democracy in the mid-1990s provided political stability and economic growth. But in 2020, GDP fell by 7 percent and recovery was slow in 2021. The country has an economy divided in two, a legacy from the colonial era. Of the 40 million inhabitants of working age, only 15 million are permanently employed. The rest of the population lives off of odd jobs in an informal economy. The great hope is the growing group of young entrepre neurs who create new jobs in various startups, many of them focused on technology. Cape Town has more than 450 tech companies and has been called, among other things, South Africa’s Silicon Valley. Digitialisation is good for the city’s growth, and new business ideas can help solve various sustainability challenges, such as the solutions of startup Aerobotics, a data analysis company using drones to give farmers deeper insights into their land and crop yields. But Cape Town is not only a bubbling tech hub, the city is also home to four high-ranking universities. The Vice Chancel lor of one of them believes that education can be a potential catalyst for change. Professor Mamokgethi Phakeng is something of a power player when it comes to higher education in South Africa, and she was named one of Africa’s most influential wom en by AvanceMedia 2020. Since 2018, she has been Vice Chancellor of the epicentre of South Africa’s future talents, University of Cape Town, which was ranked as the nation’s premier university by the Times Higher Education (THE) World University Rankings. Mamokgethi Phakeng points out the importance of more young South Africans receiving a high-quality education, so they can influence the country’s progress. But can a top-class university really contribute to sustainable devel opment? Yes, the Vice Chancellor of Africa’s highest ranked university believes that a good school offers an opportunity to influence the future of an entire country. “I see meaningful learning as the most important building block for sustainable development,” she says. “Knowledge creates motivation in students and they develop into indi viduals with drive. Our university in Cape Town is ranked among the best in the world and naturally attracts young talent from all over Africa.” Visionary Mamokgethi Phakeng has become a great source of inspiration for young people – not only in South Africa but

for the entire continent, through her activity on social media, where she spreads her message daily. She is particularly passionate about helping other women be the best at what they choose to do: Simply dare to suc ceed. That is why she has, among other things, started a foundation that distributes scholarships to promising young female students. Mamokgethi Phakeng believes there are no shortcuts to success. “I usually tell the students they must be ambitious. Only those who invest a lot of time and hard work will succeed,” says Mamokgethi Phakeng. She also has strong opinions on economic and democratic development in South Africa. “Our young democracy is being challenged just now,” she says. “What we have achieved since 1994 is being tested in this time of pandemic. South Africans must learn to be able to decide what good leadership is in order for our economy to become stronger. Education is also crucial here.” South African society is still characterised by great ine quality and the large country is also plagued by structural problems such as widespread corruption and high unem ployment, and above all large income disparities between Blacks and whites. Raising the status of education is therefore extremely important, says Mamokgethi Phakeng. Knowledge gives power, and perhaps the saying is truer in South Africa than anywhere else. So every year in December, she runs a campaign under the theme “Make education fashionable” to encourage others besides today’s approximately 1 million university students to realise the importance of education. With her influence, Mamokgethi Phakeng also wants to help make Mamokgethi Phakeng more South Africans realise the Age: 55. importance of the climate crisis. Occupation: Vice Chancellor at For a country with high unemploy University of Cape Town since 2018. Home: Cape Town, South Africa. ment and large class differences, Career: In 2002, she became Africa’s it is easy to focus everything on first Black woman to receive a doctorate economic growth. in mathematics. Visiting professor at, “If we only fight poverty, we will among others, the University of Bristol. soon have no planet left. We can In 2020 she was included in Forbes’ also do a lot to create a more inaugural list of the 50 Most Powerful sustainable future.” • Women in Africa.

Mamokgethi Phakeng is a major influencer in South Africa when it comes to higher education. Her motto is “Make education fashionable.”

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Technology

Electronics

The digital future of the Swedish Krona Demand for fast, simple and efficient means of payment increases as the proportion of physical cash decreases. At the same time, cryptocurrencies such as Bitcoin are moving behind the scenes. Is an e-krona the answer to the question of how the future payment market should be secured in Sweden? TEXT: ANNA-KARIN STORWALL ILLUSTRATION: JONNA LINDBERG

Money

Robert Bergqvist, Senior Economist SEB

The Swedish Central Bank was early to the game from an international perspective when it launched the e-krona project in 2017, an initiative to analyse the need for an electronically issued currency as a complement to physical banknotes and coins that the bank currently issues and guarantees. One of the Central Bank’s main tasks is to ensure a secure payment system, something particularly difficult as Sweden is one of the world’s most cash-free countries. Physical money is only about 1 percent of the total amount of kronor available as a means of payment – the rest consists of electronic money available via commercial banks and financial institutions, a kind of demand of the financial system. Today, however, large parts of the world are catching up with plans for an e-currency. Just over 85 percent of the world’s central banks have ongoing e-currency projects and the topic is popular in international forums. The Bahamas was the first nation in the world to introduce a central bank-backed e-currency – the Sand Dollar. The pandemic has accelerated the growth of digital money transactions, a response to increased willingness for contactless payments and e-commerce’s larger share of commerce. At the same time, a market has been created for cryptocurrencies such as Bitcoin or Ethereum, whose blockchain technology can also be used by e-currencies. Social media giant’s Facebook proposal in 2019 to create the cryptocurrency Libra, based on a currency basket, also gave impetus to the world’s e-currency plans. Carl-Andreas Claussen, senior adviser at the Swedish Central Bank and well acquainted with the e-krona project, is careful to point out that the similarities between an e-krona and “crypto” end with the possible technological solutions. He emphasises the risk of

cryptocurrencies, which lack a guarantor such as a central bank and may likely vary greatly in value over time. Some investors use cryptocurrencies to diversify their portfolios. Putting e-krona in the portfolio would be the same as putting in a bundle of banknotes, he say. “But even if a future e-krona can be considered riskfree, there are of course risks with e-currencies as well. While they can give monetary policy new tools and also promote economic growth through a more efficient payment system, we must not forget that they are so far an unknown quantity,” says Robert Bergqvist, senior economist at SEB. “For example, we do not know how the economy and stability in either national or global financial systems will be affected by the introduction of different e-currencies around the world,” says Robert Bergqvist. By the time it happens, the picture may have cleared up. No decision has been made yet in Sweden on a technological solution, no political approval nor any legal changes put in place for an e-krona. The Central Bank’s ongoing pilot project is so far focused on testing which systems could be used. The Central Bank’s investigation into an e-currency, led by Anna Kinberg Batra, former leader of the Moderate party in Parliament, is not expected to be completed until the end of 2022. A timetable has been set for the e-krona to to be in place within five years. Is it reasonable or could it be more urgent? “I cannot comment on the schedule, but as it looks today, we are not in such a hurry. However, situations may arise in the payment market in the future that require other alternatives than those available today. An e-krona is simply a way to prepare us for that future,” says Carl-Andreas Claussen. •

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Insight

United States

Economy

The magazine was published at the end of January 2022 and reflects SEB’s forecasts and assessments at that time.

Elisabet Kopelman, US Economist & Fed Watcher SEB

The return of inflation is stressing the Fed Stronger-than-expected inflation signals after the restart of the economy have forced the US Federal Reserve to speed up its retreat from crisis policy. The question for 2022 is not whether but how quickly and how much the interest rate will be raised.

In 2021, the US economy appeared to have grown at its fastest pace since the early 1980s. Of course, this reflects the recovery after the deep fall following the pandemic onset in early 2020, but also the fact that decision-makers this time wanted to save the economy with historically large fiscal policy support measures. For households, this meant an unusually generous unemployment benefit from an American perspective and cash payments of up to USD 3,200 per individual. However, restarting the economy has proven almost as problematic as shutting it down. The stimulusdriven consumption boom by households has collided with a strained production side. So demand has partly fuelled higher prices rather than increased production. Soaring energy prices worldwide have further aggravated the situation. At the beginning of 2022, US inflation is around 7 percent, the highest level since the early 1980s. Core inflation, which excludes fluctuating food and energy prices, has passed 5 percent, well above the US Federal Reserve’s long-term target of 2 percent. Powerful but temporary inflation trends Inflation trends have been stronger and more sustained than expected. Nonetheless, we mainly share the Fed’s view

that the driving forces are mostly transient and linked to transition problems related to the pandemic in both the US and the rest of the world, as well as support policies. Problems with disrupted global production chains are expected to peak in early 2022. A shift from commodity to service production when the latest waves of Covid infections subside should also ease pressure on commodity production. While CPI inflation looks to remain well above 3 percent throughout 2022, it is expected to gradually return closer to the 2 percent target. The labour market showed clear overheating tendencies when the supply of labour stagnated at depressed levels during the pandemic, while at the same time the number of unfilled jobs rose to record highs. Among older workers, more chose to retire early during the pandemic, and these people are unlikely to return to the labour market. But the supply also seems to have been pressured by factors that have more to do with the pandemic, such as concerns about being exposed to the virus and problem-filled openings and closings of schools and childcare. In recent months, more people have begun to return to the labour market, which should dampen the upward pressure on wages. Thus the risk that the current strained situation will spill over into

a more permanent price-wage spiral is still limited. The fact that companies have to work harder to find people to hire also creates incentives for increased investment, which can make the US economy more efficient in the long run. Indicators such as high order intake for capital goods also point to a good pace in corporate investments. The infrastructure investments that were hammered through by the US Congress at the end of the year will further contribute to investment activity. Backlash to Biden’s agenda It has been noticeably difficult for US President Joe Biden to unite his party behind the agenda for climate and welfare initiatives on which he campaigned. But even without this reform package, new support money will reach households in the spring of 2022. Households have also built up higher savings following previous stimulus packages, which can help support consumption when real incomes fall. However, last year’s shopping spree is not expected to continue. The GDP growth in the US economy is expected to decline from around 5.6 percent last year to around 3.5 percent in 2022, followed by more normal growth of just over 2 percent in 2023.

Fed rate hikes likely In November, the US Federal Reserve began its longannounced slowing of bond purchases. Purchases are expected to end in March 2022, opening the door for it to start raising interest rates in March. The Fed has set two criteria for raising interest rates from today’s near-zero level: inflation that temporarily exceeds the target of 2 percent and full employment. The first goal has been met with flying colours. The employment goal also seems to be falling into place. Although it still has some way to go, the unemployment rate is approaching a 50-year low of around 3.5 percent, hit just before the pandemic broke out. The fact that some, older workers in particular, have left the labour force for good during the pandemic also means it will be difficult for the US to return to the previously positive trend for labour supply. We believe the Fed will raise several steps in 2022 starting in March, followed by further increases in 2023 to a level just above 2 percent. The Fed is thus forced to proceed faster than what was previously in the cards, which can also be seen as a precautionary measure in the current inflation environment. However, in relation to the Fed’s own assessment of a long-term neutral interest rate of 2.5 percent, monetary policy remains expansionary. •

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Insight

Trends

Investing

The magazine was published at the end of January 2022 and reflects SEB’s forecasts and assessments at that time.

Johan Hagbarth, Investment Strategist SEB

Five investment trends for the future The global transition to a more sustainable society has only just begun. This entails major changes, but also opportunities, in how we can invest our money. Our investment strategist Johan Hagbarth highlights five areas of interest where there is growth potential and great need for development.

In the short term, many different factors cause stock prices to fluctuate, but they are not necessarily important for those who invest in the long term. Here it may be wise instead to try to take advantage of long-term trends, so-called megatrends. There are a few different ways to define megatrends. The most common definition talks in terms of a comprehensive, usually global, process that runs over a long period of time and creates a clear change in society. Several trends could be considered to fit under such a broad definition. We believe that three of the more central trends are digitalisation, sustainable change and social and demographic changes such as increased prosperity, an aging population and general urbanisation. The

great impact that megatrends have over time also creates enormous opportunities for companies that can ride the wave of change. Consider that several of the world’s largest listed companies today, Facebook, Amazon and Google, barely existed 15-20 years ago, if they existed at all. Within the framework of these three megatrends, there are a number of areas where we can expect rapid growth and where there are investment opportunities for those who want to take part in long-term growth. Here we give you five of the trends we think are most interesting. Who knows, maybe a business focused on one of these trends will be the largest listed company sometime in the future? •

Sustainable food Meeting a growing population’s need for a healthy and nutritious diet at an affordable price while at the same time answering an ever-increasing demand for reduced greenhouse gas emissions is a huge challenge. But there are solutions. We consumers are increasingly opting for food that is better for our environment, which creates strong structural growth and interesting investment opportunities. The food industry has begun to meet the challenges by, among other things, offering plant-based protein products, increasing focus on more sustainable agriculture and through a more sustainable supply chain with more sustainable packaging. Clean water The lack of clean water threatens global prosperity in the long run. A total of 17 countries with over 25 percent of the world’s population already have acute water shortages. Water is a major cause of conflicts, according to the UN. Rapid population growth is one of the main underlying reasons for the increasing water shortage. At the same time, the water supply is being threatened by pollution, climate change and inefficient use. The fact that the existing water infrastructure is deficient in too many cases further increases the deficit. The issue simply needs to be resolved. Health technology The world’s aging population and sometimes unhealthy lifestyles mean that healthcare costs as a share of GDP are increasing globally. In health care technology, however, a revolution is nearly underway. With the help of new technologies, such as artificial intelligence, increased data access and other tools, care can be both streamlined and individualised at the same time. Access to doctors via the web, use of digital technology in diagnosis and surgery and our own collection of data via mobile phone or app, are some examples where smart use of technology means better and more efficient care and good growth opportunities. Internet security The number of interconnected devices is growing explosively worldwide. By 2025, approximately 75 billion units are expected to be interconnected. Unfortunately, this has also led to increased incentives for criminals. Cybercrime is unfortunately one of our fastest growing security threats. Media news regarding cyber attacks is becoming more frequent and the attacks are also increasingly sophisticated. It is becoming more common for our everyday lives to be affected by cyber attacks: shops that are temporarily forced to close and websites that are down. We read more and more often about how hackers demand huge ransoms to restore functionality. Companies that work with digital security are among the winners in the future.

Sustainable power/energy storage Important political steps towards a more environmentally sustainable economy have been taken in all the world’s major economies in recent years. The decisions will have major consequences for listed companies and economic development for a long time to come. Among the most important changes is a sharp increase in the production of renewable energy. The ability to store energy from variable production sources such as solar and wind power is crucial for a societal transformation to be practically feasible. The costs of renewable energy sources are already very competitive with fossil fuels and now a number of new storage solutions are also enabling society to take the next step.

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Ask our experts

Inheritance

Ulrika Didon Kajerdt, Family Law Attorney, Private Wealth Management & Family Office

Ann Engwall, Family Law Attorney, Private Wealth Management & Family Office

Laws

Please note that this article is based on Swedish law. Our offering may vary depending on your country of residence. Please contact your SEB representative to discuss alternatives adapted to your individual situation.

Do you have questions about family law or want to meet one of our experts? Contact your private bank, and we will help you.

EU Regulation on Succession and Wills: Which country’s laws apply? It is increasingly common for us to settle in another country, for job reasons or perhaps to enjoy a warmer climate in the autumn of our lives. If you do, it is a good idea to keep track of inheritance law in the country you live in, say our family law attorneys Ann Engwall and Ulrika Didon Kajerdt.

When moving abroad, it is common to have carefully gone through the tax consequences of the move, as they have great economic significance. But it is much more rare that we see people researching the family law consequences when moving abroad, even though these can also have major, undesirable consequences. Below is a brief summary of what Swedish legislation looks like when it comes to inheritance in international situations. Conflicting decisions When a person dies, they may, for example, be a citizen of Sweden, but has moved and is resident in Spain at the time of their death. The heirs can be in different countries and the deceased’s property, such as real estate and bank funds, can be scattered around the world. This, in turn, could lead to conflicting decisions being made in different countries, or to the death estate management becoming very expensive. To make it easier for relatives to resolve all issues concerning the inheritance in one and the same country, the EU has adopted the so-called EU Regulation on Succession and Wills. The Regulation does not regulate how the deceased’s assets are to be distributed, but talks about which country’s

law is to be applied in the distribution of inheritance and other matters concerning the estate. Rules in the Swedish Inheritance Code, for example – where we find provisions on who inherits, children’s reserved shares, spouse’s inheritance rights, etc. – remain unchanged. The Regulation entered into force in August 2015, applicable in all EU member states except Denmark and Ireland. Common regulations Instead of each EU country having its own rules, the countries have agreed on a common set of rules. Before 2015, each EU country had its own legislation on which country’s law applied if a foreign national died in the country. According to Swedish regulations at the time, for example, citizenship governed which country’s law was applied, while other countries might have as a decisive factor where the deceased had his or her permanent residence. In these cases, the countries’ laws were contradictory in that both countries pointed out their own laws as applicable to the distribution of inheritance. The situation regarding the excepted EU states mentioned above has since been rectified, but the problem still remains with regard to other countries in the world, with which we have no agreement. •

Which country’s laws apply? The main rule is that the law of the country where the deceased resided must be applied to the inheritance – where you have your permanent res idence. This should not be confused with owning a home abroad but living permanently in Sweden. In these cases, you are not covered by the Regulation on succession and wills. If the deceased resided in Sweden at the time of their death, Swedish law must be applied, and if the deceased resided in Spain, Spanish inheritance law must be applied. This applies regardless of the citizenship of the deceased. If you move per manently from Sweden to Spain or France and die there, then Swedish law regards Spanish or French inher itance law as valid for the inheritance in its entirety. The designated law governs the inheritance of all assets no matter where in the world they are located. By moving to a country that, for example, applies full freedom of tes tation and does not have inheritance

protection for children (reserved shares), the consequence can be that the children inherit nothing. In some cases, residence can be difficult to determine, such as where the deceased has spent half the year in another country, or where they have lived and worked in one country during the week but lived with the family in another country on the weekends. In these cases, factors such as the family’s residence, the deceased’s main interests and social life can be decisive for determining the place of residence. Choose a law The Regulation on succession and wills, however, allows you in your will to choose the law of your country of citizenship for the distribution of inheritance instead of the law of the country of residence. It is not possible to choose the law of any country other than the country of citizenship. This choice of law can only be made in a correctly drawn-up will. If you as a Swedish citizen move to Spain, for example, you can choose to let Swedish inheritance rules continue to govern your inheritance.

Please note, however, that the main rule is that the procedure itself must take place in the country of residence, i.e. that a Swedish estate registration and succession must be conducted in Spain and any disputes must be decided in a Spanish court that applies Swedish law. Law choice not obvious It is not obvious that you should always automatically choose your home country’s law when you move abroad. You may instead have your wishes about the distribution of the estate fulfilled by the law of the country of residence and then have no need to mix in the inheritance rules of your home country. A recommendation is to familiarise yourself with your new country’s regulations before a possible choice of law is made. If you have moved to a country that is not affiliated with the Regulation, England for example, and made a Swedish choice of law in a will, there is no guarantee that the country recognises this choice of law, so the inheritance situation must be resolved there.

Wills If you have drawn up a formally valid Swedish will before you move from Sweden, it is still a valid document. If after it is drawn up you settle permanently in another EU country – and the will does not con tain a Swedish choice of law – the wording in the will may conflict with any mandatory legislation in the new country of residence, whose law will then be applied to the dis position of inheritance. You should therefore always consult with a local lawyer about what applies in the new country.

Inheritance tax? It is important to point out that the Regulation on succession and wills does not cover inheritance tax issues: it is not possible, as a resident abroad, to choose Swedish inheritance legis lation and expect that the inheritance tax disappears due to Sweden not having inheritance tax. Inheritance taxation follows other rules.

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Ask our experts

Foundations

Brita Löfgren Lewin, Foundation & Tax Attorney Private Wealth Management & Family Office

Dividends

Kerstin Fagerberg, Accounting Expert Private Wealth Management & Family Office

Foundations: Be one step ahead when calculating share dividends The pandemic of the last two years has been turbulent for many foundations, partly as a result of the sharp fluctuations in stock dividends. This has led to many questions from our foundation customers. Our accounting expert Kerstin Fagerberg and our foundation and tax lawyer Brita Löfgren Lewin give an overall picture of the situation here.

In the autumn, several listed companies chose to make extra value transfers to their shareholders, partly in the form of cash dividends, partly through redemption or repurchase of shares. Redemption and repurchase of shares are two different procedures and can be offered instead of, or in addition to, a cash dividend. For foundations, it is extra important to distinguish between what is a stock dividend and what is a sale of shares, as the majority of foundations, according to how they are set up, may only use stock dividends for this purpose. How to report value transfers: A stock dividend in the form of cash or other assets is reported as income in the foundation’s income statement and is included in the foundation’s unrestricted equity, which can be used for the foundation’s purposes. Redemption or repurchase of shares is to be equated with a sale. The result on redemption and repurchase is reported as capital gains and can, for most foundations, not be used for the foundation’s purposes. Upon repurchase of shares, the company buys back a share of its own shares via the stock exchange or directly from the shareholders. The shareholder can choose to sell their shares or not. A repurchase of shares can begin with the shareholder receiving a put option for each share they own. In order to then have a share repurchased, a certain number of put options are required. Upon redemption of shares, the company redeems its own shares and all shareholders participate. Redemption can

be carried out with redemption rights or in combination with a split. Upon redemption with redemption rights, the shareholder receives a number of redemption rights which give them the right, at a certain date, to redeem part of their shares for a specified fee. If a shareholder does not have enough redemption rights to redeem a share, they can buy additional redemption rights on the market. The shareholder can also choose to sell their redemption rights on the market and keep the shares. In the event of a redemption in combination with a split, the company chooses to divide its share into two or more shares and one of the shares becomes a redemption share. Thereafter, a mandatory redemption of the redemption share takes place against a certain remuneration at a certain time. The compliance requirement, necessary for the foundation to reduce tax liability, means over time the foundation will distribute some 75–80 percent of its return for its public benefit purpose. Only interest and dividends are included in the compliance requirement, not capital gains. Most foundations distribute their grants using the previous year’s results, meaning a delay in the calculation of the compliance requirement. It is extra important to always be one step ahead when calculating the follow-up requirement as dividends can fluctuate between years at the same time as it can be difficult to find recipients. Sometimes an extra dividend meeting may be needed or a drastically reduced dividend. •

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Ask our experts

IPOs

Investing

Fredrik Johansson, Head of Investments, Private Wealth Management & Family Office

How do I invest in a company about to list on the stock market? Last year was a record year for IPOs, in new listings on the Swedish stock exchange lists as well as the number of companies SEB helped to get listed. Customers showed great interest and had many questions about subscribing for shares in listings in which we participate. Fredrik Johansson, our head of investments, explains the listing climate and how you can participate.

At present, it is more attractive for companies to go public and get listed on the stock exchange rather than selling to a competitor or a venture capital company. The stock market has been very strong in recent years. With today’s low interest rates, many people choose to invest in equity shares and funds instead of leaving the money in a savings account. The willingness to take risks may continue to be high, making it still favourable for companies to raise capital via the stock exchange. Volvo Cars - one of Sweden’s largest IPOs When SEB last year helped Volvo Cars get listed on Nasdaq Stockholm, it was an exceptional event. The IPO was one of the largest in Sweden’s financial history. We rarely see listings of this type of a larger company that receives such a significant share of the index on the Stockholm Stock Exchange. But last year was a record year for listings, both in cases where SEB helped in the listing process and in the

number of total listings in Sweden and globally. At the turn of the year, some 3,000 companies, including 116 in Sweden, had raised approximately SEK 5.13 trillion through IPOs (Source: Dealogic). One trend we see is how more and more companies with digital solutions as well as companies in renewable energy are choosing to be listed. Another trend is the Special Purpose Acquisition Company (SPAC), which lists in order to raise capital to be able to buy an unlisted company. At SEB, we and our Equity Capital Markets (ECM) and Corporate Finance departments have a tradition of helping large companies in their listing processes, but the pressure and interest in listing has meant we now also participate in smaller companies’ listings. This gives you as a customer access to interesting IPOs and the opportunity to subscribe for shares already when the company is listed. Of the 36 companies of a larger nature that went public last year, SEB was an advisor to 14 of them. •

SEB helps companies through the entire listing process Various departments of SEB’s organisation and expertise offer help with valuation, dialogue with Nasdaq or other stock exchanges, prospectus writing, company presentations, discussions with investors and much more. Several weeks before the listing, the company in question sends out an Inten tion to Float (ITF) – a press release stating the com pany plans an IPO. By then, work with the listing has been ongoing for months together with lawyers and advisers to show the company meets the require ments necessary to be listed on the stock exchange. When the company is listed and goes from private to public, it will adhere to very different requirements for regulations and transparency, at the same time as it will be easier to trade – an unlisted holding is much more difficult to sell. When a company is listed, a listing prospectus is also prepared, which forms the basis for decisions for an investment in the listing. In the prospectus, you will find details about the company and its operations as well as a description of potential risks. In addition, you can find practical instructions regarding the listing such as price/minimum investment size and through which banks you can subscribe for shares in the company. Shortly after the prospectus is

published, the possibility of placing orders for both institutions and private individuals opens up. The order books are usually kept open for 1-2 weeks. Sometimes the subscription period can close prema turely, so it is good not to wait until the last day if you are interested. Price per share is set either as a fixed price before listing, or as an interval. Depending on demand for the share before the company is listed, the price ends up in the upper or lower part of the interval when listed. The listing company itself decides how the allo cation is to be distributed, and often the company prefers a large proportion of long-term investors, such as institutions. If many people are interested in the share, the listing can be oversubscribed and you will receive fewer shares than you have applied for as more people will share the pie. On the day of listing, those who signed up will receive shares in the company according to their allotment in connection with the opening of trading in the share.

A reputable company that is listed historically often sees some price increase in connection with the listing. Some who subscribed for the share have a more short-term perspective on ownership and want to capture the potential rise, others think more long-term. However, as not all companies see an initial price increase in connection with listing, it is smart to always have a longer investment horizon for shareholdings, regardless whether subscription takes place prior to a stock exchange listing or if a purchase is made when the company is listed. Companies receive official investment recommendations and analyses only a few weeks after listing. This means that as a private individual, it can be difficult to get an idea of the company’s value in connection with the listing. The value of a share can both increase and decrease. It is not certain you will get back your invested cap ital. Complete information about a listing is given in the prospectus which, after its publication, is usually available on each company’s website. Are you interested in stock exchange listings? Contact your advisor at SEB for more information.

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Ask our experts

Metaverse

Deeped Strandh, Head of Social Media and Influencer Marketing, SEB

Johan Öbrink, Digital Strategist SEB

“ Basically, the metaverse is about the next form of internet – which can be experienced and used with all the senses.” What exactly is the metaverse and how does it differ from the rest of the internet? At the moment, the metaverse is an idea about the next iteration of the internet, but the metaverse is also already here. Social media and not least social games are forms of the metaverse, where our social interaction from physical life intersects with our interactions digitally. It is about a digital space where people and brands can create experiences that the user can activate. It is much more individual-based and built around the user than a static web page. Today, for example, we scroll through our feed on Facebook, while in the metaverse we would walk around a room with several different things to look at and interact with. What are the possibilities with the metaverse and how can you invest in it? It is difficult to judge since so far we do not really know what the metaverse will be. So the possibilities are endless. But we already see opportunities for, not least, cultural professionals and experience-based service companies, and today everything from car companies to brokers have adopted parts of the technology. A more secure and digital way of distributing payments and rights also creates conditions for new markets and more movement in these areas. There are probably a number of levels where players will make money on the metaverse. We can look at the companies investing in technology and distribution of the metaverse.

Companies that work with VR and AR are also interesting investment objects. But we can also look at the possibility of investing in what is created within the metaverse. As NFT technology grows and matures, it can be about buying unique objects, which admittedly have copies, but where there is only one owner of the object (and often the rights to it). Of course, cryptocurrencies are part of this – a difficult area to handle, with great volatility and uncertainty. But in the future, it will also be interesting to look at the content providers that increase their production for the metaverse. In all of this, there is also basically the data industry. The need for digital infrastructure will only increase, which means that everything from data centres to internet service providers will continue to be interesting. What are the risks with the metaverse? There is a risk that the expectations we have today of the metaverse, as an open and decentralised digital universe, may end in disgrace and we get an even more – just a few companies – centralised internet. That Facebook (which has now changed its group name to Meta) focuses so strongly on the metaverse is obviously worrying for many analysts. There is also a technical concern – the more involved we become in digital systems, from our money to our health data, the more vulnerable we become to losing track of data that we want to keep secret. Crypto and blockchain are today seen as secure, but in the end there is always an opportunity to hack into digital systems. •

Internet

What are XR, VR, AR and MR? In short, XR (eXtended Reality) is about using visual technology that either creates an entire world using VR (virtual reality) in 3D, or adds a digital layer on top of what we see using AR (augmented reality). Mixed

reality - MR – is a form of mixing between these, where you use VR technology more in what you see. These are important parts of the metaverse, but at the same time not the core of the phenomenon.

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Networking

France

Business

Want to know more about this initiative? Please contact your SEB representative for more information.

New SEB office in Nice SEB takes an important step and strengthens its local presence in France. This spring we’re opening a new office in Nice. SEB will be opening a representative office in Nice to establish a meeting place where customers can get help with local needs. They will also have the opportunity to use SEB’s offices for their own meetings and networking. The background to the new office opening is that many Nordic residents have bought properties in the Mediterranean region. In parallel with this, it is believed that the pandemic will prompt more people to buy homes abroad and that many will take advantage of the opportunity to work remotely, given more flexible work methods. “We are seeing a greater international need among our home market customers, as more are choosing to move or invest abroad. As part of our strategy, we see the new representative office as an important step in delivering greater value to our customers by being located near them,” says William Paus, head of SEB’s Private Wealth Management & Family Office division.

On top of serving as a branch that offers customers assistance with local needs, the office in Nice will provide a meeting place with a lounge and various meeting rooms that customers can use, enabling them to host various types of meetings and events with customers. Customers will continue to be offered investment advice and financing solutions from SEB’s office in Luxembourg or in the bank’s home markets. The office in Nice is planned to open during the second quarter of 2022. “France is one of the division’s most important markets outside of the Nordic region,” says Ole Hamre, Head of International, Private Wealth Management & Family Office. “Having a physical presence in France will make it possible for us to strengthen existing customer relationships, international business and networking activities.” SEB’s office in Nice will primarily serve customers in the Private Wealth Management & Family Office division. •

Nice – a smart city Nice is the fifth large city in France and has been listed as one of the world’s top smart cities. A smart city is a place where tradi tional networks and services are made more efficient with the use of digital

solutions for the benefit of its inhabit ants and business. A smart city goes beyond the use of digital technolo gies for better resource use and less emissions. It includes smarter urban transport networks, upgraded water

supply and waste disposal facilities and more efficient ways to light and heat buildings. It also means a more interac tive and responsive city administration, safer public spaces and meeting the needs of an ageing population.

Knowledge

Events

2022

Kristina Falk Strandberg, Global Event Manager, Private Wealth Management & Family Office

Welcome to our events Did you know that SEB arranges both physical and digital events, where you can immerse yourself in various current topics? Kristina Falk Strandberg, Global Event Manager, recommends several exciting events to look out for in 2022.

Why are you investing even more in digital events? We want to be able to offer our customers both digital and physical events that are linked to their lifestyle, interests and hobbies. We often address topics based on questions they have asked us, so they are tailored to our customers’ needs. During the pandemic, the need for digital events has grown, and we arranged several art events when our cus tomers could not go to museums and galleries in person. We have also had many much-appreciated investment webinars with our experts. Several of our digital broad casts are of interest to the Nordic countries and customers, and we plan to further develop these in the future. We have also done digital events offering some in-depth study of topics from Value. One example is the event “Value – Electrification,” with automotive company Porsche discussing its sustainability journey. What will you offer in 2022? Philanthropy, sustainability, entrepreneurship and interesting investment events of various kinds are on the agenda. But we will also offer topics in family law, Next Generation and entrepreneurship. We will also continue with our invest ment webinars, which we offer in physical format when circumstances allow. • Please contact your SEB representative about subjects that you are interested in, and we will make sure you will receive an invitation to a relevant event.

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Private Wealth Management & Family Office