Danske Bank Capital Markets Day. New Standards Eivind Kolding, CEO & Chairman of the Executive Board

Transcription

1 Danske Bank Capital Markets Day New Standards Eivind Kolding, CEO & Chairman of the Executive Board 8 November 2012

2 Agenda New Standards The Personal Banking strategy The Business Banking strategy The Corporates & Institutions strategy Eivind Kolding Tonny Thierry Andersen Lars Stensgaard Mørch Thomas F. Borgen Q&A Session on Business Unit strategies Break The road to profitability Henrik Ramlau-Hansen Q&A Session with Eivind Kolding and Henrik Ramlau-Hansen Summary Eivind Kolding Drinks & networking 2

3 We are operating in a New Normal

4 New Normal Lack of trust 4

5 New Normal Regulation 5

6 New Normal Customer behaviour 6

7 New Normal Economic uncertainty 7

8 New Normal Tougher competition 8

9 Nevertheless, we still play a crucial role in society Deposits Lending Advisory services Pension & life insurance Transactions Risk management Investments 9

10 Where do we want to be in 2015? 10

11 To be trusted is a greater compliment than being loved George McDonald New vision for 2015 Recognised as the most trusted financial partner 11

12 The most trusted financial partner Customer satisfaction 2015 We want to be in the top two in customer satisfaction in our prioritised customer segments Financial results 2015 We want to be in the top three of our Nordic peer group as measured by return on equity (ROE) 12

13 Our new mission Setting new standards in financial services Customer focus Advisory services Digitalisation Openness & responsibility 13

14 We are a universal bank in our Nordic home market Strategic Business Units Danica Danske Capital Nordania Divestment Non-core Ireland 14

15 CEO priorities

16 Execution of New Standards Personal Banking strategy Business Banking strategy C&I strategy 16

17 Think Execution Simple, of new Think standards Lean 20% Personal reduction Banking processing strategy time 50% Business reduction Banking front strategy office admin tasks Number of customer meetings C&I strategy per adviser up 20% 17

18 Financial targets Q Ambitions ROE 3.8% Above 12% in 2015 Ratings S&P/Moody s/fitch A-/Baa1/A Improve ratings at least one notch Core tier 1 Total capital Liquidity 12.7% Minimum 13% by the end of % Minimum 17% by the end of 2013 Meet EU 2015 LCR requirement by the end of 2012 Nominal costs FTE C/I ratio 2012 guidance at 27bn Below DKK 26 bn in ,651 To be reduced by 2,000 in % Below 48% in 2015 Dividend payments Nil for 2012 About 40% of annual net profit, but lower until we have reached capital and rating targets 18

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20 Disclaimer Important Notice This presentation does not constitute or form part of and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or acquire securities of Danske Bank A/S in any jurisdiction, including the United States, or an inducement to enter into investment activity. No part of this presentation, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. The securities referred to herein have not been, and will not be, registered under the Securities Act of 1933, as amended ( Securities Act ), and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act. This presentation contains forward-looking statements that reflect management s current views with respect to certain future events and potential financial performance. Although Danske Bank believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those set out in the forward-looking statements as a result of various factors many of which are beyond Danske Bank s control. This presentation does not imply that Danske Bank has undertaken to revise these forward-looking statements, beyond what is required by applicable law or applicable stock exchange regulations if and when circumstances arise that will lead to changes compared to the date when these statements were provided.

21 Danske Bank Capital Markets Day Executing a turnaround in Personal Banking Tonny Thierry Andersen, Head of Personal Banking 8 November 2012

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23 The tale of the tape for Personal Banking Personal Banking Rest of the Group Lending and deposits Total income 49% 49% 35% Customers and FTEs Market position 42% #1 #3 #5 #3 #1-2 #6 93% 3

24 Our point of departure necessitates a resolute turnaround Group goals Business unit observations Financial results 2015 In the top three of our Nordic peer group as measured by ROE Profitability significantly below full potential >40% of customers are unprofitable Significant pricing initiatives and cost reductions already executed Average FTE efficiency vs. benchmark Customer satisfaction 2015 In the top two in our prioritised segments in each business unit in each market Customer satisfaction below that of peers in main markets, but above in Sweden, Norway and Northern Ireland Market-leading digital platform Award-winning Private Banking offering 4

25 We will focus our efforts on prioritised segments: Mass affluent, Private Banking and young people/students w. potential Profitable Old Break-even + Unprofitable Age Mass market Mass affluent Private Banking Young Low Young people/students Net household income High Note: Size of boxes represents number of customers. 5

26 We are committed to improving customer satisfaction in prioritised segments Satisfaction relative to competitor average, Q % 90% 100% 110% 120% 6

27 Our response to the challenges is comprehensive yet highly integrated Clear customer segmentation Customer programme launch Distribution channel revamp Best-in-class FTE efficiency Think Lean and think simple Selective pricing 7

28 New standards #1: Clear customer segmentation To make customers financially confident, we will meet different preferences with different value propositions Private Banking Expertise, exclusivity and proactivity The trusted advisor Mass Affluent Quid pro quo, confidence and proactivity Personal relationship banking Mass Market Simplicity, transparency and service Superior self-service solutions 8

29 New standards #2: Customer programme Customer programme to be launched in Q Proactivity FTE allocation Accessibility and channels A fair solution for every customer and for the bank Pricing and fees Products and Group benefits 9

30 New standards #3: Distribution channel revamp While reducing branch footprint, we are building state-of-the art branches with the new Danske Bank look and feel Number of branches -40% Branch density per 100,000 adults Goal Integrated multi-channel distribution DK UK SE FI NO 1 Source: IMF; 2010 figures for Denmark, Finland and Norway; 2009 figures for Sweden and United Kingdom. 10

31 New standards #4: Best-in-class FTE efficiency The goal is to be best-in-class in terms of efficiency by Current position: mid-field FTE development Efficiency comparison Bain benchmark -15% Advisory customers % DB 2015 target DB 2012 actual Mass market customers % Service 1,800 customers, young people 2,700 and students 1, % target Source: Bain & Co. and own calculations. 11

32 New standards #5: Think Lean and think simple 90% of loan approvals to be made automatically triple-win! Current level of automation (%) Target (%) DK FI IE NO SE NI All markets 12

33 New standards #6: Selective pricing Still potential for selective pricing to better reflect risk, crossselling and LTV in the new regulatory environment Effect of repricing, lending margins 1 (%) Market repricing potential DK FI SE NO 1 Margins on new lending in Finland, since it is not possible to reprice the stock. 13

34 The same enablers will work on the various markets, but with differing effects and timing Potential of new standards Clear customer segmentation Customer programme Distribution network revamp Best-in-class FTE efficiency Think lean and think simple Pricing 14

35 Ambitious financial targets for Personal Banking, but much has already been executed P&L effect, pre-tax (DKK bn) Management actions Pricing Pricing Pricing of DKK 2 billion already executed in 2012 Continued margin increases in all markets (although to a lesser extent in Denmark) Sales 0.4 Costs E Sales The customer programme will encourage customers to increase their business with us Focus on price governance/leakage Costs Significant branch, teller and FTE reductions already executed, and more to come More efficient processes/lean/credit scoring models 15

36 Profound turnaround in Personal Banking enabled by six new key standards we are already in full execution mode 16

37 Disclaimer Important Notice This presentation does not constitute or form part of and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or acquire securities of Danske Bank A/S in any jurisdiction, including the United States, or an inducement to enter into investment activity. No part of this presentation, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. The securities referred to herein have not been, and will not be, registered under the Securities Act of 1933, as amended ( Securities Act ), and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act. This presentation contains forward-looking statements that reflect management s current views with respect to certain future events and potential financial performance. Although Danske Bank believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those set out in the forward-looking statements as a result of various factors many of which are beyond Danske Bank s control. This presentation does not imply that Danske Bank has undertaken to revise these forward-looking statements, beyond what is required by applicable law or applicable stock exchange regulations if and when circumstances arise that will lead to changes compared to the date when these statements were provided.

38 Danske Bank Reaching full potential in Business Banking Lars Stensgaard Mørch, Head of Business Banking

39 The tale of the tape for Business Banking Business Banking Rest of Group Lending & deposits Total income & FTEs 38% 31% 18% 34% Facts 3,800 FTEs 90% of income in the Nordic countries 154 physical locations and 5 Business Direct centres Co-located with Personal Banking & Private Banking 2

40 Business Banking Strategy reaching full potential Unfocused one size fits all approach Capability to compete Comprehensive and accelerated change programme is set in motion 3

41 Attractive market with unexploited potential SME market Business Banking Attractive market 680,000 Nordic companies (customer groups) Robust Nordic economies 85% of income generated by the biggest 20% companies Need for improvement! 2/3 of income is from lending Customer satisfaction & loyalty has fallen during the crisis Substantial impairments in 2008 and since Strengths to build upon Marketleading solutions Attractive channel platform Strong footprint in attractive markets 4

42 NEW AMBITION Setting building on Business Banking s core strength being the reliable, preferred bank for SMEs with advanced needs 5

43 Five strategic actions will set New Standards 5. Upgrade organisation 1. Make clear customer segmentation 4. Ensure credit quality 2. Leverage product strength 3. Align distribution channels 6

44 Differentiated approach supports sharper focus and prioritisation and alignment of sales and credits Core Selective Optimise Efficiency Restrictive Total income 44% 28% 11% 5% 12% Resources Invest Reduce Lending & credit Segmentation effect Increased capital efficiency and reduced risk 7

45 From unexploited pool of products to targeted customer advisory and tailored solutions A bundle of offers, but no clear red thread... Creating consistency for each customer segment FX/derivative sales Strategic financial risk analysis Cash management Debt capital markets Trade finance 8

46 Value propositions, programmes and product offerings developed for each customer segment Strategic stances Segmentation Programmes Core Selective Value packages Advisory competencies and instructions Optimise Efficiency 15 segments Credit policies Work processes Restrictive Tools and IT support applications 9

47 Distribution platform will be re-aligned with customer needs and segment priorities Business Direct Advisory centres Finance centres Centre of excellence Resources Skills Jobspecific adviser Certified banker Certified specialists & business segment relationship managers IT & self-service Expand and upgrade 10

48 Extensive credit transformation to further improve credit quality and customer experience Establish clear credit policies and guidelines B Lean credit processes Prioritise and specialise Rebuild credit accountability and competencies...a step-by-step change 11

49 Upgrade organisation Strengthen capabilities and customer-centric culture Certification programme for all customer segments AML, MiFID Credit & risk Specialist segment advisory Responsibility back at the frontline (incl. P/L) Scorecards to support and measure execution of strategy 12

50 Segmentation model tested: Significant effect on customer satisfaction & profit Strategy implementation Strategy implementation Customer benefits Specialised segment advisory & tools Clear segment distribution channels Reduced risk & interest rates Our benefits Lower risk Lower allocated capital Higher economic profit ROAC ROAC 13

51 New segmentation will improve capital efficiency and lower risk Core Selective Optimise Efficiency Restrictive AC 2012 ROAC 2012 AC 2015E ROAC 2015E Effect from Non-NII Effect from NII ROAC

52 Superior product range and great cross sale opportunities prioritised by segment Product quality Above market At market Below market Cross sale potential Trade finance Cash management FX & derivatives Debt capital market Asset finance Business Online Investment Core Selective Optimise Efficiency Restrictive 15

53 Business Banking management actions P&L effect, pre-tax (DKK bn) Pricing Sales 0.8 Costs 2015E Management actions Pricing Additional effects of implemented pricing measures Continue pricing measures selectively, e.g. customers with low ROAC Sales Segmented product offerings aimed at increasing business with prioritised segments Fees selectively raise list prices and reduces fee leakage Costs FTE reductions and back-office automation planned Procurement optimisation Lower cost of IT operations Investments in IT & employee skills 16

54 Key take-aways Protecting and developing core business New segmentation supports de-risking and capital efficiency Pricing and increased sales have already improved PTP More profitable, competent and efficient Business Banking unit 17

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56 Danske Bank Capital Markets Day To protect and selectively grow Thomas F. Borgen, Head of Corporates & Institutions 8 November 2012

57 Customer relations with major corporate and institutional clients are the foundation for C&I # of employees 740 corporate clients Transaction Banking 316 Synergies with Personal & Business Banking Sales, Research & Risk Advisory 250 Relationship Management 195 Capital Markets institutional clients Trading & Risk 384 2

58 C&I generates a significant part of Group income, but accounts for a small portion of the balance sheet and FTEs Key figures for new C&I organisation Lending Deposits FTE C&I 9% 17% 7% Rest of Group Split of total income 2011 (approx. DKK 9bn) 8% 9M 2012 (approx. DKK 10bn) 23% 5% Markets CIB Other 33% 59% 72% 3

59 All major C&I client segments are value creating Return on allocated capital, 9M 2012 (%) International clients Institutional clients Corporate clients Shipping clients Allocated capital utilisation 4

60 Trading activities show low volatility, but earnings run rate varies according to market opportunities Trading activities, accumulated income (DKK bn) ,000 Weeks with gain/loss Loss week Profit week 6,000 4, ,000 0 Q1 Q2 Q3 Q ROE pre-tax (%) Q109 Q110 Q111 Q

61 Low-risk asset base Markets RWA split, September 2012 (%) Counterparty risk 50 Trading activities Stress VaR of DKK 185 m in Q Credit risk Markets income is split between customer income (60-40%) and market making (40 60%) 34 Operational risk Market risk Bond portfolio split, September 2012 (%) Other Danish mortgage bonds A- AA B- BBB+ 3 No rating 7 AAA 83 Covered bonds 6

62 Getting used to the New Normal Economy Capital Regulation Funding Competition 7

63 NEW AMBITION Setting for wholesale banking Reliable Competent Coordinated Dynamic Solutions-oriented Partner 8

64 Focus areas Capital Adaptation to new capital requirements Clients Prioritisation of clients Products Prioritisation of product offering 9

65 New regulatory effects to be largely mitigated Expected effects on RWA Markets (DKK bn) General market risk Specific market risk Counterparty risk Today (Basel 2.5) IRC CVA charge Mitigation Post Basel 3 10

66 C&I will be positioned towards clients in respect of which core strengths can be leveraged Clients with complex needs Leverage competitive advantages and product strengths Increase advisory and fee-based services Cost-efficient service of clients with simple needs International footprint Nordic products for global clients Global support to Nordic clients Focus on clients where our strong Nordic base can be leveraged Capital-efficient client offering Optimise the capital efficiency of products Adapt offering to new regulatory demands Limit capital- and funding - intensive segments 11

67 C&I has a strong product palette, but room for improvement PROSPERA RANKING Cash management Trade finance FX DCM FI SE Derivatives DK NO FI SE Fixed income DK NO FI SE Equities DK NO Source: Prospera 12

68 Strategic initiatives will increase normalised income by approximately DKK 2 bn over the next three years Changing Private Strategic equity business alignment funds model SMEs From Trade pure cash Finance equities to Working to broader Municipalities Capital Management product range Change Hedge From Cash Funds in geographical Management focus to Liquidity Management Transaction Banking Selected client growth Normalised income in 2015 Normalised income of DKK 10 bn in 2012 Equities Protect the franchise DCM Capital Guaranteed Products Central Enhanced Develop clearing structured DCM origination product CVA Build offering pricing high towards yield offering largely E-trade FTE untapped investments retail/sme in sales, segment Cross-sales origination and research 13

69 C&I management actions Effect from normalised level to 2015 (DKK bn) Management actions Non-NII 2.0 Non-NII Equities strategy Increase customer penetration Product development Transaction Banking growth Enhancement of DCM offerings Investments 0.6 Investments E-trade capabilities Central clearing Selective FTE investments Total

70 In summary, C&I will combine protecting the existing franchise with selective growth 15

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72 Disclaimer Important Notice This presentation does not constitute or form part of and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or acquire securities of Danske Bank A/S in any jurisdiction, including the United States, or an inducement to enter into investment activity. No part of this presentation, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. The securities referred to herein have not been, and will not be, registered under the Securities Act of 1933, as amended ( Securities Act ), and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act. This presentation contains forward-looking statements that reflect management s current views with respect to certain future events and potential financial performance. Although Danske Bank believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those set out in the forward-looking statements as a result of various factors many of which are beyond Danske Bank s control. This presentation does not imply that Danske Bank has undertaken to revise these forward-looking statements, beyond what is required by applicable law or applicable stock exchange regulations if and when circumstances arise that will lead to changes compared to the date when these statements were provided.

73 Danske Bank Capital Markets Day The road to profitability Henrik Ramlau-Hansen, Chief Financial Officer 8 November 2012

74 Agenda Results for 9M 2012 Roadmap to ROE above 12% in 2015 Rationale behind the share issue ROE sensitivity to key assumptions 2

75 Setting the scene Income statement (DKK m) 9M M 2011 Index Net interest income 18,588 17, Net fee income 6,129 6, Net trading income 7,469 5, Other income 2,323 2, Income from insurance bus. 1, Total income 35,819 31, Operating expenses 19,598 19, Profit bef. loan imp. charges 16,221 11, Loan impairment charges 9,910 8, Profit before tax 6,311 3, Tax 2,708 2, Net profit 3,603 1, Non-core, Ireland -3, Net profit, core 7, Key points Total income up 14% Stable expenses despite restructuring costs Impairment charges higher Net profit more than doubled another step forward Net profit for core business of DKK 7.2 bn (ROE of 7.4%) 3

76 Outlook for 2012 Macro Economic growth to remain low in most markets Income Improvement of income is an ongoing process Expenses Expected to increase 4% above 2011 level Loan losses In line with 2011 level, around DKK 13 bn Net profit Results remain low 4

77 Financial targets Q Ambitions ROE 3.8% Above 12% in 2015 Ratings S&P/Moody s/fitch A-/Baa1/A Improve ratings at least one notch Core tier 1 Total capital Liquidity 12.7% Minimum 13% by the end of % Minimum 17% by the end of 2013 Meet EU 2015 LCR requirement by the end of 2012 Nominal costs FTE C/I ratio 2012 guidance at 27 bn Below DKK 26 bn in ,651 To be reduced by 2,000 in % Below 48% in 2015 Dividend payments Nil for 2012 About 40% of annual net profit, but lower until we have reached capital and rating targets 5

78 ROE above 12% in 2015 Change in ROE from 2012 to M 2012 annualised (after tax) 3.8% Management actions (pre-tax) 1 4 6% points Declining loan losses (pre-tax) 2 5 6% points Short term rates (pre-tax) 3 4 5% points Capital, regulation, inflation, tax 4 6 7% points 2015E (after tax) ROE above 12% in

79 Management actions increase profit by DKK 6 8 bn in 2015 Effect from 9M 2012 annualised to 2015 (DKK bn pre-tax) Initiatives 1 Pricing 2 Sales 3 4 Costs 1.5 Pricing Additional effects of implemented pricing measures Continue pricing measures Fees Sales Reduce fee discounts Increase cross sales in Personal Banking More business with existing customers and extension of product lines in C&I Increasing AuM in Danske Capital 2015E Total management actions of DKK 6 8 bn Corresponds to a positive ROE effect of 4 6 % points Costs Channel optimisation Think Simple, Think Lean Selected investments 7

80 Management actions by business unit Effect from 9M 2012 annualised to 2015 (DKK bn pre-tax) 1 Personal Banking 3 4 Business Banking C&I Danske Capital 0.4 Total actions Total management actions of DKK 6 8 bn Corresponds to a positive ROE effect of 4 6 % points 8

81 Growth at Danske Capital through 2015 Effect from 9M 2012 annualised to 2015 (DKK bn pre-tax) Initiatives 1 Sales 0.5 Costs 0.1 Sales Through Danske Bank to Institutional clients (solution products) Retail clients (managed accounts) Through external channels to international institutional clients (alpha products) AuM to grow significantly 2015E 0.4 Costs Investments in selected areas Cost-saving effects from completed investments in our standardised IT platform 9

82 Cost efficiency leads to costs below DKK 26 bn in 2015 Effect on total expenses from 2012 guidance to 2015 (DKK bn pre-tax) 2012E 27 Staff reduction (1,000s) One-offs Q E Cost efficiency 1.5 Branch network reduction 900 Inflation E Cost below DKK 26 bn Q E 10

83 Towards more normal market conditions Effect of lower impairments (DKK bn pre-tax) 2 Effect of higher S-T rate (DKK bn pre-tax) 3 Denmark 1 2 Floor risk on deposits 3-4 Ireland 5 6 Effect on equity 2 Rest of group 0.5 Increased equity E Impairments drop by DKK 7 8 bn 2015E DKK 6 bn Corresponds to a positive ROE effect of 5 6% points Assumption: Loan loss ratio of approx. 30 bps in 2015 Corresponds to a positive ROE effect of 4 5% points Assumption: S-T rate of approx. 2% in

84 Negative ROE effects between 2012 and 2015 Effect of headwinds (DKK bn pre-tax) Inflation 1.5 Capital & funding 2-3 Other 2 Assumptions Inflation assumed to be around 2% p.a. More expensive capital and funding Effects of regulation are almost offset by capital efficiency Negative ROE effect of lower earnings at Danica and normalised earnings at C&I 4 Tax 2 3 Results affected by substantial dividends and share buybacks in E Headwinds equivalent to DKK 8 10 bn Corresponds to a negative ROE effect of 6 7% points Tax rate normalised at around 25% 12

85 Growth at Danica through 2015 Effect from 9M 2012 annualised to 2015 (DKK bn) Technical result pre-tax Result after tax Management actions at Danica Premiums to increase by DKK 5 6 bn from 2012 to 2015 AuM to grow moderately; changes in taxation are a negative driver in 2013 Investment result to decline compared with ROE of 16% 0.9 ROE of 10% Lean programme reduces costs Additional synergies will be pursued

86 Capital efficiency is a critical ROE improvement driver Change in risk-weighted assets for Group (DKK bn) Assumptions Flattish RWA towards Q New regulation New regulation Specific risk CRD III (IRC) Counterparty risk (CVA) Parameter update 30 Capital efficiency Capital efficiency Sampo Bank Foundation IRB rollout Improved Advanced IRB framework Internal models for counterparty and specific risk Secure optimal business unit usage of allocated capital 2015E

87 Illustration of impact of DKK 7 bn in new share capital and rating upgrade Full-year 2014 effect (DKK bn pre-tax) Pro forma EPS 2014 based on consensus (DKK) Lower volume AT1 capital Lower price AT1/T2 instruments 0.1 Lower price ST and LT funding Increased activity C&I 0.2 Full-year (pre-tax) 1.5 EPS consensus New shares Positive impact EPS with equity raise 15

88 Significant spread tightening after 30 October share issue 5Y senior bond spread,* 6M ASW, Jun-Nov 2012 (bp) Swedbank Handelsbanken Nordea Danske Bank 5Y senior bond spread,* 6M ASW, Oct-Nov 2012 (bp) Swedbank Handelsbanken Nordea Danske Bank Sep-5 Nov bp Oct -5 Nov -21bp 0 Jun Jul Aug Sep Oct Nov * Outstanding senior benchmark issues with maturity in February 2017 (Handelsbanken in July 2017). 16

89 2015 ROE sensitivity ROE 14% ROE 13% ROE 12% ROE 11% Condition1: Core tier 1(%) Condition 2: Loan loss ratio (bps) ROE ambition Given all three conditions, ROE reaches 12% Sensitivity If one condition changes, level of ROE changes Condition 3: S-T rate (% points) 17

90 Top CFO priorities through 2015 Rating upgrade Improved net profit Follow-up on business unit targets 18

91 Disclaimer Important Notice This presentation does not constitute or form part of and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or acquire securities of Danske Bank A/S in any jurisdiction, including the United States, or an inducement to enter into investment activity. No part of this presentation, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. The securities referred to herein have not been, and will not be, registered under the Securities Act of 1933, as amended ( Securities Act ), and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act. This presentation contains forward-looking statements that reflect management s current views with respect to certain future events and potential financial performance. Although Danske Bank believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those set out in the forward-looking statements as a result of various factors many of which are beyond Danske Bank s control. This presentation does not imply that Danske Bank has undertaken to revise these forward-looking statements, beyond what is required by applicable law or applicable stock exchange regulations if and when circumstances arise that will lead to changes compared to the date when these statements were provided.