Investor presentation

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1 First quarter 2015 Investor presentation KLP Banken AS KLP Kommunekreditt AS KLP Boligkreditt AS

2 Financials 2

3 Interim report Q P&Ls KLP Banken Group million Q Q Net interest income Management fee Net commission and fees Gain/loss financial asset/debt Operating expenses Write-up/downs Earnings before tax Higher volume on mortgage loans is the main reason why NII and commissions increased from 2014 to In the first quarter last year, the development in market spreads led to financial gains of 4m. This development has reversed and is the main reason why Q includes financial losses of 12m. The cost base has increased as the business has expanded. KLP Banken AS million Q Q Net interest income Management fee Net commission and fees Gain/loss financial asset/debt Operating expenses Write-up/downs financial assets Income from ass. comp Earnings before tax Except from group contribution, P&L items have remained fairly stable in Q compared to Q The lower result in 2015 is therefore mainly attributable to the group contribution ( 10m in 2015 versus 31m in 2014). The Company has decided to expense the full 2015 fee to The Norwegian Banks Guarantee Fund in the first quarter (previously accrued evenly over the year). 4.9m has therefore been charged to the P&L numbers have not been reworked in this presentation. KLP Boligkreditt AS million Q Q Net interest income Gain/loss financial asset/debt Other income Operating expenses Earnings before tax The first loans were transferred from KLP Banken AS to KLP Boligkreditt AS in Q At the end of the first quarter 2015, the Company had a lending balance of 4.0 bn while covered bonds issued amounted to 2.3bn. All loans have been purchased from KLP Group Companies. KLP Kommunekreditt AS million Q Q Net interest income Gain/loss financial asset/debt Other income Operating expenses Earnings before tax The slight drop in net interest income from Q to Q is mainly explained by interest rate adjustments. Moreover, earnings are negatively impacted by financial losses in the liquidity portfolio caused by the development in market spreads.

4 Interim report Q Balance sheets KLP Banken Group million Lending to credit institutions Loans to customers Interest bearing securities Other assets Total assets Borrowing from credit inst Bond debt Deposits Other debt Total liabilities Equity Total liabilities and equity KLP Banken AS million Lending to credit institutions Loans to customers Interest bearing securities Other assets Total assets Borrowing from credit inst Bond debt Deposits Other debt Total liabilities Equity Total liabilities and equity KLP Boligkreditt AS million Lending to credit institutions Loans to customers Interest bearing securities Other assets Total assets Borrowing from credit inst Bond debt Deposits Other debt Total liabilities Equity Total liabilities and equity KLP Kommunekreditt AS million Lending to credit institutions Loans to customers Interest bearing securities Other assets Total assets Borrowing from credit inst Bond debt Deposits Other debt Total liabilities Equity Total liabilities and equity

5 Cover pool information 5

6 KLP Boligkreditt AS Cover pool information as at 31 March

7 Overview Key data Amounts in Total loan balance Bank deposits Norwegian AAA-rated covered bonds Total cover pool Covered bonds issued Over-collateralisation 67,5 % No. of loans Average loan balance WA Seasoning (months) 51,4 WA Remaining terms (months) 249,1 WA Indexed LTV 41,1 % WA Unindexed LTV 42,7 % Percentage variable mortgages 100, Ratings Current rating Fitch Moody's KLP Banken AS A- - KLP Boligkreditt AS - - Covered bond program Boligkreditt - Aaa Geographical loan distribution Nominal loan balance Cover pool composition Nominal amounts 2 % 9 % KLP members share * of total loan balance 17 % % 83 % Norway Other Mortgages Bank deposits Covered bonds Members Non-members *Members denote customers of KLP s public sector pension scheme 7

8 Geographical distribution Geographical mortgage distribution County Akershus Oslo Hordaland Rogaland Østfold Vestfold Sør-Trøndelag Møre og Romsdal Troms Buskerud Hedmark Nordland Oppland Telemark Vest-Agder Finnmark Aust-Agder Nord-Trøndelag Sogn og fjordane Total loan balance Geographical loan distribution % of total loan balance 0-2% 2-4% 4-6% 6-10% >10% 8

9 Loan-to-value Unindexed LTV distribution LTV interval >70 - Total loan balance LTV-distribution Unindexed, % of total Weighted average 42,7 % 5 45 % 45 % 4 35 % 3 25 % 21 % 2 18 % 17 % 15 % 1 5 % >70 Indexed LTV distribution LTV interval >70 - Total loan balance LTV-distribution Weighted average 41,1 % Indexed, % of total 5 48 % 45 % 4 35 % 3 25 % 21 % 19 % 2 15 % 11 % 1 5 % >70 9

10 Seasoning Remaining terms Months > Total loan balance Remaining terms Months, % of total) Weighted average 249,1 98 % 2 2 % >60 Seasoning Months > Total loan balance Seasoning Months, % of total 3 25 % 25 % 2 15 % 1 5 % Weighted average 51,4 29 % 22 % 15 % 9 % >60 10

11 Interest and repayment structure Interest rate structure Interest payment frequency % of total loan balance Frequency Monthly Quarterly Semi-annually Bullett - Total loan balance Monthly Quarterly Interest only 79 % Repayment structure Type Annuity Constant amortisation Total loan balance Payment profile % of total loan balance 8 % Annuity Constant amortisation 92 % 11

12 Loan in arrears Loan in arrears Loan balance Amount in Loan balance in % arrears of cover pool loans 7< >30 days ,8 % 30< >90 days - - 0, >90 days - - 0, Total ,8 % 12

13 KLP Kommunekreditt AS Cover pool information as at 31 March

14 Overview Key data Amounts in Total nominal loan balance Bank deposits Norwegian AAA-rated covered bonds Total cover pool Covered bonds issued Over-collateralisation 17,7 % Ratings Current rating Fitch Moody's KLP Banken AS A- - KLP Kommunekreditt AS A- - Covered bond program Kommunekreditt AAA Aaa No. of loans 843 Average loan size WA life (years) 11 WA Remaining terms (months) 234 Largest debtor/guarantor (in % of pool) 6,4 % All loans are either made directly to or are guaranteed by Norwegian municipalities or county administrations The pool only includes loans with an unconditional and irrevocable on-demand guarantee of payment covering both interest and principal Geographical distribution Nominal loan balance Cover pool composition Nominal amounts 16 % All covered bonds are issued in % Norway Others Public sector loans Substitution assets 14

15 Geographical distribution Geographical distribution County Møre og Romsdal Sør-Trøndelag Nordland Hedmark Vestfold Rogaland Buskerud Sogn og Fjordane Østfold Finnmark Akershus Oppland Troms Hordaland Nord-Trøndelag Vest-Agder Aust-Agder Oslo Telemark Svalbard Total loan balance Geographical loan distribution % of total loan balance 0-2% 2-4% 4-6% 6-10% >10% 15

16 Debtor and collateral concentration Debtor concentration Top 10 largest debtors Debtor Debtor Debtor Debtor Debtor Debtor Debtor Debtor Debtor Debtor Top 10 total loan balance Largest 10 in percent of total loan balance 25,5 % Collateral distribution Debtor concentration % of total loan balance 75 % Collateral distribution % of total loan balance 5 % 4 % 3 % 3 % 2 % 2 % 2 % 2 % 2 % 2 % Debtor 1 Debtor 2 Debtor 3 Debtor 4 Debtor 5 Debtor 6 Debtor 7 Debtor 8 Debtor 9 Debtor 10 Others Collateral type Direct claim against municipality Loan with guarantee of municipality Direct claim against county Loan with guarantee of county Total loan balance ,8 % 6, 2,8 % Direct claim against municipality Loan with guarantee of municipality Direct claim against county 81,4 % Loan with guarantee of county 16

17 Interest and repayment structure Repayment structure Loan balance Share No. of loans Constant Amortisation % 775 Annuity Partial Bullet - 0 Bullet Total Loan size Loan balance Share No. of loans < 10 mill % 471 > 10 mill. - < 25 mill % 211 > 25 mill. - < 100 mill % 140 > 100 mill. - < 250 mill % 17 < 250 mill % 4 Total Rate reset period Loan balance Share Acc.% < 1 month % 49 % > 1 month - < 3 month % 63 % > 3 month - < 1 yr % 7 > 1 yr - < 2 yr % 76 % > 2 yr - < 5 yr % 88 % > 5 yr % 10 Total Interest rate type No. of Loan balance Share loans Variable % 689 Fixed % 154 Total

18 Loan in arrears Loan in arrears Loan balance Amount in arrears Loan balance in % of cover pool loans 0< >30 days ,3 % 30< >60 days - - 0, 60< >90 days - - 0, >90 days - - 0, Total ,3 % 18

Contacts Name Phone Email Christopher Steen +47 952

no Kristian Lie-Pedersen +47 970 75 107 kristian.

19 Contacts Name Phone Christopher Steen Kristian Lie-Pedersen Henrik Nesset Stenvik

20 Disclaimer This material does not constitute an offering circular in whole or part and you must read the actual offering circular related to the Covered Bond program and the notes which may be issued from time to time thereunder as referred to in this material (respectively the "Program" and the Notes ) before making an investment decision. The offering circular for the Program is available from the Arranger. You should consult the offering circular for more complete information about KLP Kommunekreditt AS/KLP Boligkreditt AS and the Programs. This material is presented solely for information purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments and should not be treated as giving investment advice. It has no regard to the specific investment objectives, financial situation or particular needs of any recipient. No representation or warranty, either express or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein. It should not be regarded by recipients as a substitute for the exercise of their own judgment. Any opinions expressed in this material are subject to change without notice and KLP Kommunekreditt AS/KLP Boligkreditt AS is not under any obligation to update or keep current the information contained herein. In addition, institutions mentioned in this material, their affiliates, agents, directors, partners and employees may make purchases and/or sales of the Notes as principal or agent or may act as market maker or provide investment banking or other services in respect of the Program or the Notes which may be issued from time to time thereunder. KLP Kommunekreditt AS/KLP Boligkreditt AS, the Arranger and the Dealers and their respective affiliates, agents, directors, partners and employees accept no liability whatsoever for any loss or damage of any kind arising out of the use of all or any part of this material. KLP Kommunekreditt AS/KLP Boligkreditt AS cannot guarantee that the information contained herein is without fault or entirely accurate. The information in this material is based on sources that KLP Kommunekreditt AS/KLP Boligkreditt AS believes to be reliable. KLP Kommunekreditt AS/KLP Boligkreditt AS can however not guarantee that all the information is correct. Furthermore, information and opinions may change without notice. KLP Kommunekreditt AS/KLP Boligkreditt AS is under no obligation to make amendments or changes to this publication if errors are found or opinions or information change. KLP Kommunekreditt AS/KLP Boligkreditt AS accepts no responsibility for the accuracy of its sources. The Notes are not to be offered or sold in any jurisdiction in circumstances in which the distribution of this document or the Notes would be prohibited in such jurisdiction. This document must not be acted on or relied on by persons who are not eligible to invest in the Notes. Any investment or investment activity to which this communication relates is available only to persons eligible to invest in the Notes and will be engaged in only with such persons. Furthermore, you should consult with your own legal, regulatory, tax, business, investment, financial and accounting advisers to the extent that you deem it necessary, and make your own investment, hedging and trading decisions (including decisions regarding the suitability of an investment in the Notes which may be offered from time to time under the Program) based upon your own judgment and advice from such advisers as you deem necessary and not upon any view expressed in this presentation.

Investor presentation

Second quarter 2015 Investor presentation KLP Banken AS KLP Kommunekreditt AS KLP Boligkreditt AS Financials 2 Interim report Q2 2015 P&Ls KLP Banken Group million Q2 2015 Q2 2014 2014 Net interest income