Supplementary Financial Information JANUARY JUNE 2018
Disclaimer This presentation may contain forward-looking statements that reflect management s current views with respect to certain future events and potential financial performance. Although Sampo 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. Important factors that may cause such a difference for Sampo include, but are not limited to: (i) the macroeconomic development, (ii) change in the competitive climate and (iii) developments in capital markets. This presentation does not imply that Sampo 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. 2
SAMPO GROUP 3
Key Financial Figures Sampo Group 4
Sampo Group results EURm Profit before taxes and net profit EURm Profit before taxes by quarters 1,200 1,000 800 600 1,153 982 865 753 1,400 1,200 1,000 800 600 1,181 706 400 200 400 200 477 450 528 430 435 475 436 445 708 0 1-6/2018 1-6/2017 0 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Profit before taxes Net profit 5
Sampo Group profit before taxes EURm 1,400 1,200 1,153 1,000 800 865 600 400 401 415 313 322 388 200 0-200 52 105 116 If Topdanmark Mandatum Life Nordea Holding (excl. Nordea) -27-48 Sampo Group 1-6/2017 1-6/2018 6
Profit before taxes and comprehensive income EURm 1,400 Profit before taxes Comprehensive income 1,200 1,153 1,000 800 865 821 679 600 400 200 0 401 395 415 388 365 313 322 281 185 132 105 116 52 52 81 111 1-6/2017 1-6/2018 1-6/2017 1-6/2018 1-6/2017 1-6/2018 1-6/2017 1-6/2018 1-6/2017 1-6/2018 If Topdanmark Mandatum Life Nordea Sampo Group 7
Sampo Group gross written premiums 1-6/2018 If 2,701 Total 2,701 EURm Topdanmark 528 98 Total 1,421 EURm 795 Mandatum Life 56 476 Total 531 EURm 1,004 Sampo Group 154 Total 4,653 EURm 3,496 Non-life With profit Unit-linked Non-life With profit Unit-linked Non-life With profit Unit-linked Non-life With profit Unit-linked 8
Earnings per share EPS and Comprehensive result EPS Reported EPS by quarter EUR 1.80 1.60 1.40 1.20 1.00 0.80 0.60 0.40 0.20 0.00 1.68 1.47 1.34 1.14 1-6/2017 1-6/2018 EUR 2.50 2.00 1.50 1.00 0.50 0.00 0.68 0.67 2.01 1.26 0.74 Includes 1.26 EUR from valuing of Topdanmark to fair value 0.61 0.63 1.06 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 EPS (reported) EPS (comp. result) 9
Sampo Group net asset value per share EUR 28.00 24.00 22.15 22.63 23.79 24.86 25.37 21.57 20.00 17.79 17.38 16.00 14.63 14.05 12.00 8.00 4.00 0.00 2009 2010 2011 2012 2013 2014 2015 2016 2017 1-6/2018 10
Net asset value per segment, 30 June 2018 EURm 20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 2,898 Topdanmark book value in Group accounts 1,398 EURm + valuation difference 177 EURm 1,575 Nordea book value in Group accounts 7,307 EURm + valuation difference -205 EURm 1,457 7,102 1,052 If Topdanmark Mandatum Life Nordea Sampo plc & eliminations 11,980 Sampo Group 11
Return on equity in Sampo Group s business areas 120% 100% If Mandatum Life Sampo Group 80% 60% 40% 20% 19.2% 9.1% 52.6% 53.2% 97.6% 55.7% 39.8% 36.2% 21.8% 12.4% 7.7% 36.9% 28.5% 19.9% 24.4% 18.3% 13.8% 18.1% 11.4% 10.9% 21.5% 12.7% 14.0% 25.3% 15.9% 15.0% 21.3% 13.3% 17.1% 9.4% 25.9% 10.2% 23.4% 15.7% 17.2% 0% -20% -40% -60% -0.8% -68.8% -32.4% -11.7% -80% 12
Fair value reserve development by segment EURm 6/2018 12/2017 12/2016 12/2015 If 436.3 518.7 484.0 391.0 Mandatum Life 533.3**) 598.7**) 595.7**) 532.1**) Holding 28.8 45.3 27.7 8.2 Sampo Group *) 999.0**) 1,163.4**) 1,108.1**) 931.9**) *) Eliminations included and figures after tax **) Excluding the segregated portfolio 13
Fair value reserve by segment and asset class, 30 June 2018 EURm Fixed income Equity Deferred taxes The share transferred to the segregated portfolio FVR net If 40.5 518.1-122.3 436.3 Mandatum Life 2.6 686.7-137.9-18.2 533.3 Holding 11.6 24.4-7.2 28.8 Sampo Group *) 54.8 1,230.0-267.6-18.2 999.0 *) Eliminations included and figures after tax 14
Investments Sampo Group 15
Investment allocation Sampo Group, 30 June 2018 Total EUR 21.7 billion By sector By company Money market 10% Public sector 5% Covered bonds 22% Other fixed income 42% Equities 15% Private equity 2% Real estate 2% Other 4% If 54% Topdanmark (P&C) 14% Mandatum Life 28% Sampo plc 5% Investments of If, Topdanmark (excluding life insurance), Mandatum Life and Sampo plc 16
Fixed income investment allocation Sampo Group excluding Topdanmark, 30 June 2018 Total EUR 14.7 billion By geography By sector Europe money market 8% Scandinavia money market 4% Europe 19% Scandinavia 58% North America 11% Other 1% Money market 12% Banks 27% Covered bonds 20% Public sector 7% Corporate 34% 17
Fixed income investments in public sector Sampo Group excluding Topdanmark, 30 June 2018 EURm Government Government guaranteed Public sector, other Total Sweden 90 505 594 Norway 216 216 Finland 74 70 144 United States 43 43 Germany 30 30 Japan 17 17 Denmark 10 10 Total 132 114 808 1,054 18
Financial sector fixed income investments by country and investment class Sampo Group excluding Topdanmark, 30 June 2018 Covered bonds Money market Long-term senior debt Long-term subord. Debt Total % Sweden 1,782 147 881 371 3,182 37% Finland 95 787 242 6 1,130 13% Norway 672 84 294 303 1,354 16% United States 711 711 8% Denmark 215 265 166 646 8% United Kingdom 12 345 66 17 440 5% France 10 192 57 259 3% Netherlands 228 16 244 3% Canada 112 83 195 2% Switzerland 97 97 1% Australia 17 102 120 1% Other 16 145 10 171 2% Total 2,917 1,572 3,170 889 8,548 100% 19
Equity investment allocation Sampo Group excluding Topdanmark, 30 June 2018 Total EUR 3.0 billion By geography By company Scandinavia 30% Finland 21% North America 10% Western Europe 27% Emerging Markets 11% Latin America 1% If 43% Mandatum Life 52% Sampo plc 5% 20
Investment returns excluding Topdanmark, January June 2018 8 August 2018 Yield, % EURm ML*) If Group ML*) If Group Fixed income -0.1% 0.6% 0.5% -5 (-21) 60 (13) 73 Equities 1.5% 1.4% 1.9% 22 (65) 16 (50) 46 Other (incl. FX net result) 0.4% -49.0% -8.6% 3 (0) -16-85 Total 0.3% 0.5% 0.3% 20 60 33 Realized sales gains and losses in parenthesis *) Including the segregated portfolio 21
Market risk sensitivity of Group investments excluding Topdanmark, 30 June 2018 EURm If Mandatum Life*) Sampo plc Sampo Group Equities -10% +10% -130 130-156 156-16 16-302 302 Interest rates -100 bps +100 bps 162-156 85-75 93-86 336-313 Other -10% +10% -3 3-74 74-28 28-102 102 Local currency -5% +5% -1 1 18-18 70-70 - The changes of interest rates have a strong effect on the reinvestment risk of the insurance companies. The sensitivities include the effects of derivative positions, but do not capture indirect effects, like the impact of the changes of the discount rates in the value in force. All sensitivities are before taxes. The scenario definitions assume an uniform movement of the whole underlying market. *) Including the segregated portfolio 22
Capital Position Sampo Group 23
Group capital and minimum requirement, Solvency II applied to insurance co s, 30 June 2018 Group solvency ratio 146% EURm 14,000 13,000 12,000 11,000 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 12,575 Group capital 4,393 Intangibles and other 2,705 10,887 7,471 53 1,104 1,898 3,698 Sectoral items Group's own funds Total capital requirement 172 546 NDX Intressenter Sampo plc Topdanmark Mandatum Life If Nordea 24
IF 25
Key Financial Figures If 26
If profit before taxes and comprehensive income EURm 450 400 401 395 415 350 300 250 311 324 200 150 132 100 50 0 1-6/2017 1-6/2018 Profit before taxes Profit for the period Comprehensive income 27
If combined ratio development % Claims ratio Expense ratio % Risk ratio Cost ratio 100.0 90.0 80.0 70.0 17.6 92.1 17.2 92.8 17.3 92.0 16.9 88.9 16.8 88.1 16.7 87.7 13.0 85.4 16.6 84.4 85.3 16.4 86.5 16.4 85.8 16.3 100.0 90.0 80.0 70.0 24.1 92.1 23.7 92.8 23.5 92.0 23.0 88.9 22.8 88.1 22.5 87.7 18.8 85.4 22.1 84.4 85.3 22.0 86.5 22.0 85.8 21.8 60.0 60.0 50.0 50.0 40.0 30.0 20.0 74.6 75.6 74.7 72.0 71.4 71.0 72.4 67.8 68.9 70.1 69.5 40.0 30.0 20.0 68.0 69.1 68.4 65.9 65.4 65.1 66.6 62.3 63.3 64.5 64.0 10.0 10.0 0.0 0.0 28
If combined ratio development 94.0% 92.0% 90.0% Combined ratio excluding the one-offs is 86.5%. Combined ratio excluding the one-offs is 86.1%. 88.0% 86.0% 84.0% 82.0% 91.8% 92.1% 92.8% 92.0% 88.9% 88.1% 87.7% 85.4% 84.4% 85.3% 86.5% 85.8% 80.0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1-6/2017 1-6/2018 Combined ratio 29
If GWP growth by business area and by country*, 1-6/2018 vs. 1-6/2017 Total Private 3.4% 3.4% Commercial 1.5% Industrial 6.3% Baltic 9.0% Sweden 6.2% Norway 4.0% Finland -2.5% Denmark 5.3% -6.0% -5.0% -4.0% -3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% 11.0% 12.0% *excluding currency effects 30
If technical result by business area and by country, 1-6/2018 vs. 1-6/2017 EURm 350 300 250 200 68 (39) By business area 26 (31) (7) 8 6 (7) By country 42 11 8 (11) (10) 6 (7) (7) 150 100 50 0 198 (210) 306 152 306 (294) (97) (294) 86 (163) 31
If results by quarter EURm Q2/18 Q1/18 Q4/17 Q3/17 Q1/17 Premiums earned 1,068 1,052 1,071 1,086 1,069 Claims incurred -734-739 -713-748 -760 Operating expenses -174-171 -182-172 -174 Other technical income and expenses Allocated investment return transferred from the non-technical account -0.3-2 -2-1 -2 3 3 3 4 7 Technical result 163 143 178 168 139 Investment result 70 58 47 46 57 Allocated investment return transferred to the technical account -11-11 -11-12 -16 Other income and expenses 0.5 2 1-1 -1 Operating result 222 193 215 202 180 32
If key figures by quarter Q2/18 Q1/18 Q4/17 Q3/17 Q2/17 Q1/17 Risk ratio, % 63.3 64.7 60.7 63.5 63.7 65.4 Cost ratio, % 21.7 21.8 22.9 21.3 22.1 22.0 Expense ratio, % 16.3 16.2 17.0 15.9 16.5 16.3 Combined ratio, % 85.1 86.5 83.6 84.8 85.7 87.4 Insurance margin, % 15.2 13.8 16.7 15.6 14.8 13.2 33
If key figures by business area, Q2/2018 (Q2/2017) Private Commercial Industrial Baltic GWP, EURm 727 (716) 199 (197) 137 (121) 38 (35) NPE, EURm 651 (645) 291 (288) 101 (100) 36 (33) Technical result, EURm 103 (99) 37 (22) 17 (29) 5 (3) Risk ratio, % 62.8 (62.8) 65.1 (70.4) 63.5 (50.7) 58.3 (60.8) Cost ratio, % 21.6 (21.9) 22.4 (22.4) 20.5 (21.3) 28.4 (28.8) Combined ratio, % 84.4 (84.7) 87.5 (92.9) 84.0 (72.0) 86.6 (89.6) Insurance margin, % 15.8 (15.7) 12.9 (7.8) 16.4 (28.6) 13.4 (10.4) 34
If key figures by country, Q2/2018 (Q2/2017) Norway Sweden Finland Denmark GWP, EURm 342 (331) 444 (430) 189 (187) 89 (87) NPE, EURm 334 (326) 373 (369) 233 (239) 104 (100) Technical result, EURm 48 (84) 89 (32) 12 (27) 8 (7) Risk ratio, % 63.2 (53.4) 58.7 (71.5) 71.3 (66.1) 64.2 (63.5) Cost ratio, % 23.2 (22.1) 17.4 (19.5) 23.6 (22.6) 28.2 (29.6) Combined ratio, % 86.4 (75.5) 76.2 (90.9) 94.9 (88.6) 92.4 (93.2) Insurance margin, % 14.6 (25.7) 23.8 (9.4) 5.1 (11.4) 7.6 (6.8) 35
Investments If 36
If investments, 30 June 2018 Investment allocation, Total EUR 11.7 billion AFS investments unrealized gains before taxes Money market 6% Fixed income 59% Covered bonds 24% Equities 11% Other 0.3% EURm 850 750 650 550 450 350 250 150 648 801 708 511 657 618 497 498 Fixed income 500 438 454 615 560 506 460 581 Equities 608 618 700 746 704 760 645 755 593 664 506 564 518 559 Duration 1.5 years Average maturity 2.7 years Fixed income running yield 1.6% 50-50 12/14 136 3/15 144 6/15 90 9/15 1 12/15-60 3/16-68 6/16-6 9/16 34 12/16 10 3/17 47 6/17 57 9/17 109 12/17 72 3/18 58 6/18 41 37
If mark-to-market investment returns Fixed income running yield Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 % 1.8 1.8 1.7 1.6 1.7 1.7 1.6 1.5 1.5 1.5 1.6 14.0 % 12.0 % 12.4 % 10.0 % 8.0 % 6.0 % 4.0 % 2.0 % 0.0 % 7.4 % 1.8 % 6.1 % 5.0 % 4.1 % 1.5 % 2.9 % 2.6 % 0.5 % -2.0 % -4.0 % -3.1 % 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1-6/2018 38
Capital Position If 39
If Solvency Capital Requirement (SCR), Standard Formula (SF), 30 June 2018 8 August 2018 EURm 4,500 4,000 Solvency ratio 221% 3,500 3,000 169 2,500 2,000 1,500 123 1,308 495 324 4,205 1,000 500 1,117 1,898 0 Market risk Counterparty risk Insurance risk Operational risk Diversification LAC of DT SCR SII own funds 40
If internally assessed Solvency Ratio, 30 June 2018 EURm 4,500 4,000 Solvency ratio 306% 3,500 3,000 2,500 2,000 320 169 763 4,205 1,500 1,000 500 0 649 1,178 180 1,372 41
If, Solvency II stresses, test on Standard Formula Solvency II EOF ratio with transitional Equity Measures 250% 200% 221% 230% 212% 237% 204% 230% 212% 212% 217% 206% 150% 100% 50% +30% -30% +100 bps -100 bps +100 bps -100 bps 0% Solvency II ratio Q2/2018 Equity Interest rate Spread 1 in 10y run-off loss 1 in 10y Nat CAT +100 bps claims inflation 42
If rating capital requirement, 30 June 2018 EURm 4,000 3,500 3,000 242 2,500 1,759 2,000 1,500 3,087 3,658 1,000 500 0 1,569 Asset risks Liability risks Diversification Total A capital charge S&P capital base 43
TOPDANMARK 44
Key Financial Figures Topdanmark 45
Topdanmark combined ratio development (as reported by Topdanmark stand-alone) % 96.0 94.0 93.3 92.0 90.0 88.0 86.0 91.1 90.3 88.0 91.5 86.0 86.8 85.1 85.5 84.0 82.0 82.0 80.0 78.0 76.0 2009 2010 2011 2012 2013 2014 2015 2016 2017 1-6/2018 Topdanmark part of the Sampo Group since Q4/2017 46
Investments Topdanmark 47
Topdanmark investments, 30 June 2018 Investment allocation Total EUR 2.9 billion Money market 11% Fixed income 2% Covered bonds 61% Equities 5% Real estate 5% Other 15% Excluding Topdanmark s Life Insurance assets. 48
Capital Position Topdanmark 49
Topdanmark Solvency Capital Requirement (SCR), Standard Formula (SF), 30 June 2018 EURm Solvency ratio 175% 2,000 1,600 1,200 800 31 589 396 68 410 94 400 758 546 953 0 50
MANDATUM LIFE 51
Key Financial Figures Mandatum Life 52
Mandatum Life profit before taxes and comprehensive income EURm 350 300 250 313 251 200 185 150 100 116 94 111 50 0 1-6/2017 1-6/2018 Profit before taxes Profit for the period Comprehensive income 53
Mandatum Life Group profit by components EURm 1-6/2018 1-6/2017 Net investment income 137.0 518.3 - Transferred to expense result -12.5-13.5 - Return on unit-linked policies -14.2-262.2 - Return on with-profit policies* -19.1-146.2 INVESTMENT RESULT 91.2 96.5 EXPENSE RESULT** 13.4 13.5 RISK RESULT 10.1 15.1 OTHERS 197.9-8.7 PROFIT BEFORE TAXES 312.5 116.3 Change in the market value of investments -84.3 22.3 PROFIT AT MARKET VALUES 228.2 138.6 Mandatum Life Group, expense ratio Total expense ratio, % 98.5 99.9 Incl. kick backs, % 81.5 79.5 *Includes guaranteed interest, bonuses and change in the reserves of the above items **Result of unit-linked business EURm 14.5 54
Mandatum Life breakdown of unit-linked and with profit business Premiums written, total EURm 531 Insurance savings, total EURm 10,672 With profit EURm 56 13 42 10 323 1 76 67 UL EURm 476 With profit EURm 3,577 158 25 14 2,379 3,380 2,219 152 2,345 UL EURm 7,094 Unit-linked life Unit-linked pension Unit-linked capital redemption Unit-linked Baltic Other life Other pension Other capital redemption Other Baltic Note: Excluding reserves for decreased discount rate, future bonus reserves and longevity reserve 55
Mandatum Life technical reserves EURm 12,000 Unit-linked Segregated fund (0.5% after 1.1.2017) Reserve for decreased discount rate Other with-profit excl. segregated fund Guaranteed 3.5% Guaranteed rate 4.5% 10,000 8,000 5,312 5,858 6,440 7,066 7,097 6,000 2,071 1,637 2,359 3,124 3,054 3,833 4,617 4,000 2,000 0 1,228 439 135 1,196 244 1,142 2,824 499 2,843 2,831 2,821 545 273 1,065 325 1,038 2,719 2,598 2,475 547 553 284 2,360 2,245 2,108 1,957 1,870 344 313 311 372 377 385 439 1,453 1,330 1,289 1,217 1,152 1,087 1,014 903 830 753 678 647 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 6/2018 56
Mandatum Life s gross written premiums by policy type in Finland EURm 700 600 100 500 400 93 58 51 55 300 200 471 563 428 365 466 100 0 1-6/2014 1-6/2015 1-6/2016 1-6/2017 1-6/2018 Unit linked With profit 57
Mandatum Life s new premiums written by distribution channel in Finland EURm 450 400 3 350 4 300 5 250 200 238 211 345 150 100 50 0 120 85 56 1-6/2016 1-6/2017 1-6/2018 Danske Bank Mandatum Life Other 58
Investments Mandatum Life 59
Mandatum Life investments, 30 June 2018 Investment allocation, Total EUR 5.0 billion* AFS investments unrealized gains before taxes Fixed income Equities Money market 14% Fixed income 42% Covered bonds 2% Equities 29% Private equity 4% EURm 800 700 600 500 400 300 599 680 628 635 835 498 586 546 570 761 695 744 540 567 665 678 580 607 603 635 723 782 727 771 770 825 737 796 747 805 732 783 661 678 687 690 Duration 2.3 years Average maturity 2.5 years Fixed income running yield 2.5% Other 9% 200 100 0 3/14 102 6/14 94 9/14 82 12/14 65 3/15 74 6/15 49 9/15 26 12/15 14 3/16 27 6/16 32 9/16 59 12/16 44 3/17 55 6/17 59 9/17 58 12/17 51 3/18 17 6/18 3 * Excluding the segregated fund 60
Allocation of investments of the segregated assets, 30 June 2018 Investment allocation Total EUR 1.1 billion Money market 3% Fixed income 75% Covered bonds 4% Equities 12% Private equity 2% Other 5% Duration 2.6 years Average maturity 3.2 years Fixed income running yield 2.3% 61
Mandatum Life mark-to-market investment returns* Fixed income running yield Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 % 3.2 3.5 3.1 3.1 2.9 3.3 2.8 2.8 2.4 2.6 2.5 20.0% 16.8% 15.0% 10.0% 5.0% 0.0% 11.1% 9.4% 7.1% 4.6% 6.9% 7.2% 6.5% 0.4% -5.0% -1.4% -10.0% -7.8% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q2/2018 * Excluding unit-linked and segregated fund assets 62
Capital Position Mandatum Life 63
Mandatum Life, Solvency II Capital Requirements with transitional measures, 30 June 2018 EURm 2,400 2,200 2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 1,284 68 Solvency ratio 194% 355 271 37 93 276 1,104 2,145 64
Mandatum Life, SCR Coverage Ratio, Estimated sensitivities, 30 June 2018 250% 200% 194% 190% 199% 187% 187% 150% 100% 50% 0% Base case 30/6/2018 Interest rates -25 bps Interest rates +25 bps Equity -10% Credit spread +50% 65
HOLDING 66
Holding segment profit before taxes EURm 1-6/2017 1-6/2018 450 400 350 300 250 200 150 100 50 0-50 -100 13-30 -18-14 -22 Income Operating costs Finance costs Nordea & NDX Intressenter AB -1 322 386 295 341 Profit before taxes 67
Sampo plc investments, 30 June 2018 Investment allocation (unconsolidated) Total EUR 1.4 billion Money market 30% Fixed income 38% Private equity 17% Equities 12% Other 3% Duration 1.1 years Average maturity 4.9 years Fixed income running yield 3.0% 68
Sampo plc balance sheet, 30 June 2018 Assets total, EURm 10,688 Liabilities total, EURm 10,688 Liquidity 414 CPs issued 195 Investment assets 458 LT senior debt 3,341 Real estate 2 Private placements 130 Fixed income 23 Bonds issued 3,211 Equity and private equity 433 Pension insurance loans 0 Subordinated loans 492 Subordinated debt 0 Equity holdings 9,199 Capital 7,051 Subsidiaries (If, ML, Topdanmark) 3,401 Undistributable capital 98 Associates (Nordea) 5,799 Distributable capital 6,953 Other assets 125 Other liabilities 101 69
Net interest bearing debt in Sampo plc 2018 2017 2016 EURm Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 + Gross debt 3,535 3,591 3,177 3,178 3,279 2,932 3,548 2,845 2,461 2,483 Bonds & notes 3,341 3,359 2,884 2,885 2,884 2,399 2,877 2,142 2,157 2,183 Domestic CP s 195 232 293 293 394 534 671 702 305 300 Interest bearing assets Liquidity buffer + fixed income Subordinated loans 928 2,428 1,754 1,184 1,137 2,112 2,104 992 1,058 2,137 437 1,944 1,258 684 509 1,471 1,467 369 444 1,528 492 485 496 500 628 640 637 623 614 609 Net debt 2,607 1,163 1,423 1,994 2,142 820 1,443 1,853 1,403 346 70
Sampo plc debt instruments, 30 June 2018 Instrument & Principal Coupon Swap Effective Rate Maturity CP s issued 195 EURm Euribor + Margin 0.2500% Average 3M Senior Bond 500 EURm 1.125% --- 1.1640% 24/5/2019 Senior Bond 2,000 SEKm Stibor3M + 0.77% Euribor3M+0.586125% 0.2631% 28/5/2020 Senior Bond 1,000 SEKm 1.250% EUR 1.007% 1.0070% 28/5/2020 Senior Bond 500 EURm 1.500% --- 1.5920% 16/9/2021 Senior Bond 700 SEKm 0.875% Euribor6M+0.3761% 0.1061% 23/5/2022 Senior Bond 1,300 SEKm Stibor3M+0.55% Euribor6M+0.3881% 0.1181% 23/5/2022 Senior Bond 750 EURm 1.000% --- 1.0060% 18/09/2023 Senior Bond 500 EURm 1.250% EUR6M + 0.735% 0.4660% 20/05/2025 Senior Bond 500 EURm 1.625% EUR6M + 0.562% 0.288% 21/02/2028 Public debt 3,405 EURm 0.7961% Private placements 130 EURm 0.9996% Total 3,535 EURm 0.8041% Key Credit Metrics Net debt, EURm 2,607 Equity, EURm 7,051 Gross Debt to Equity 50% Financial Leverage 33% 71
NORDEA 72
Nordea s book value on Sampo Group s consolidated balance sheet, 30 June 2018 Nordea in Sampo Group s balance sheet EURm Acquisition price 5,557.3 Retained earnings 2,068.7 Accumulated other changes in Nordea s equity -47.8 Share of Nordea s net profit 402.5 Amortization -17.7 Deferred tax 3.9 Dividends -585.1 Share of Nordea s other comprehensive income -19.6 Share of Nordea s other changes in equity -53.5 Share of Nordea s goodwill change -1.9 Total 7,306.8 Shares 860,440,497 8.49 73
Nordea share price and book value EUR 13.0 12.0 11.0 10.0 9.0 8.0 7.0 6.0 5.0 12/31/2009 3/31/2010 6/30/2010 9/30/2010 12/31/2010 3/31/2011 6/30/2011 9/30/2011 12/31/2011 3/31/2012 6/30/2012 9/30/2012 12/31/2012 3/31/2013 6/30/2013 9/30/2013 12/31/2013 3/31/2014 6/30/2014 9/30/2014 12/31/2014 3/31/2015 6/30/2015 9/30/2015 12/31/2015 3/31/2016 6/30/2016 9/30/2016 12/31/2016 3/31/2017 6/30/2017 9/30/2017 12/31/2017 3/31/2018 6/30/2018 Share price, lhs Book value, lhs 74
Sampo s Nordea holding valuation differences EURm 3,500 3,000 2,500 2,000 1,500 1,000 500 0 100 1,084 733 919 1,507 2,132 2,0081,811 1,260 2,999 2,621 1,4391,430 386 336 1,570 2,267 2,352 2,008 1,102 363-500 -1,000-352 -543-461 -621-205 75
OUTLOOK 76
Outlook for 2018 Sampo Group s business areas are expected to report good operating results for 2018. However, the mark-to-market results are, particularly in life insurance, highly dependent on capital market developments. The continuing low interest rate level also creates a challenging environment for reinvestment in fixed income instruments. If P&C is expected to reach a combined ratio target of 86-88 per cent for the full-year 2018. With regard to Topdanmark, reference is made to the profit forecast model that the company publishes quarterly. Nordea s contribution to the Group s profit is expected to be significant. 77
APPENDIX 78
Sampo Group structure Long-term investor Manager of capital structure and liquidity Pay-out ratio 50% 100% > 46.7% 100% Subsidiary Subsidiary Subsidiary 21.2% Associated Company Market position The leading P&C insurer in the Nordic region with full service offering and a strong European presence The second largest P&C insurer in Denmark One of Finland s most respected and best capitalised financial services providers to private & corporate customers The most diversified banking in the Nordics with strong capital generation Strategy Focus areas: Customer value Focused insurance expertise Nordic business platform Investment strategy with balanced risk Customer satisfaction Pricing Efficiency Digitalisation, Process optimisation, transformation Distribution efficiency Unit-linked products Wealth management Personal Risk insurance Group pension & Reward Services Transformation to be the Future Relationship Bank Efficient and scalable Fast and agile Resilient and compliant Investment assets ~ EURbn 11.7 ~ EURbn 2.9 (P&C) ~ EURbn 6.1 ~ B/S EURbn 570 ~ AuM EURbn 307 Return / profit target RoE above 17.5% CR% below 95% Profit margin of 10% CR% 91% RoE above 17.5% ROE above the Nordic peer average 79
Structural changes of Sampo Group to the position as the leading Nordic financial group 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Mandatum Bank joins the Group, and the Group s name is shortened to Sampo. Sampo Group divests Sampo Bank Group to Danske Bank A/S. Following the transaction, Sampo s business areas are: P&C insurance and life insurance. Sampo Group s (If P&C s) Topdanmark holding exceeds 23 per cent and Topdanmark becomes If s associated company. Sampo Group (Mandatum Life) acquires Suomi Mutual s with-profit group pension portfolio. The portfolio transfer takes place on 30 Decenber 2014. Sampo consolidates Topdanmark as a subsidiary as of 30 September 2017. Sampo pcl invests in three financial and fintech companies Nordax, Nets and Saxo Bank. Nordax becomes Sampo s associated company. Sampo Insurance Company and Leonia merge into the Sampo-Leonia financial services group. The Group s business areas are long-term savings (life insurance, asset management and mutual funds), banking, investment banking, and P&C insurance. Sampo s P&C insurance operations are merged with If (2002). Following the transaction, Sampo owns 38 per cent of If. If becomes fully owned by Sampo (2004). Following the transaction, Sampo has three core businesses: P&C insurance, banking and long-term savings. Sampo s Nordea holding exceeds 20 per cent and Nordea becomes an associated company. Sampo Group (If P&C) acquires Tryg s Finnish Business and the acquisition was closed in May 2013. If P&C signs a partnership agreement with Nordea. Sampo plc s ownership of Topdanmark exceeds 33.34 per cent after the acquisition of shares from If P&C and in the market and hence Sampo is obliged to make a mandatory offer for the shareholders of Topdanmark. As a result Sampo plc owns 41.1 per cent of Topdanmark s shares. Topdanmark now becomes Sampo s associated company. 80
Sampo plc s ownership structure, 30 June 2018 Solidium Oy 10.09%* Varma Mutual Pension Insurance Company 4.01 % The State Pension Fund 0.70% Ilmarinen Mutual Pension Insurance Company 0.69% Kaleva Mutual Insurance Company 0.48% Other domestic owners 16.78% Foreign and nominee registered owners 67.25% Björn Wahlroos, the Chairman of the Board of Sampo plc, controls 8.3 million Sampo A shares, corresponding to 1.5 per cent of the total shares in Sampo. * Entirely owned by the Finnish state 81
Sampo Group staff Sampo Group staff (FTE) 30 June 2018 30 December 2017 If 6,647 6,451 Finland 1,752 1,777 Sweden 2,133 1,955 Norway 1,308 1,312 Denmark 600 592 Baltic and other countries 854 815 Topdanmark 2,317 2,405 Denmark 2,315 2,403 Luxemburg 2 - Mandatum Life 529 521 Finland 443 427 Baltic countries 86 94 Holding 61 62 Sampo Group, total 9,554 6,439 82
P&C insurance Market shares by country, % Norway Q1/2018 Sweden Q1/2018 Finland 2017 Gjensidige 26% If 21% Tryg 13% Sparebank1 11% DnB 5% Eika 4% RSA 3% Storebrand 3% Protector 3% Frende Sakdeforsikring 3% Other 9% LF 31% If 19% Trygg-Hansa 15% Folksam 16% Moderna 3% Dina-gruppen 3% Gjensidige 3% Other 12% OP 33% LähiTapiola 26% If 22% Fennia 9% Other 10% Denmark Q2/2017 Tryg 18% Topdanmark 17% If 6% Codan (RSA) 11% Alm.Brand 10% Gjensidige 7% Other 32% Baltics 2016 Nordics 2016 PZU 24% If 12% VIG 19% Ergo 13% Gjensidige 11% Seesam 6% Swedbank 7% Other 8% If 18% Topdanmark 5% Tryg 9% LF 10% RSA Scand. 9% Gjensidige 8% Folksam 6% OP 6% LähiTapiola 4% 83 Other 25%
Life insurance Market shares by country, % Norway 2017 Sweden Q1/2018 Finland 2017 DnB 15% Storebrand 1 17% KLP 35% Nordea Liv 12% Sparebank 6% Gjensidige 2% If 1% Tryg 1% Other 12% Skandia 12% SEB 8% Folksam 14% Swedbank 6% AMF Pension 9% Avanza 7% Nordea Liv 7% LF 4% Nordnet 3% Alecta 10% SHB 6% SPP 3% Danica 8% Other 2% OP Life 22% Mandatum Life (+Kaleva 1.3%) 21% Nordea 31% LähiTapiola 12% Fennia 4% Aktia 3% Sp-Life 4% Denmark 2017 Baltics 2016 PFA Pension 30% Danica Pension 22% Nordea Liv & Pension 18% SEB Pension 9% Topdanmark 9% AP Pension 7% Skandia 6% Alm.Brand 1% Mandatum Life 7% Other 93% 84
Supplementary Financial Information JANUARY JUNE 2018 Sampo plc Fabianinkatu 27 00100 Helsinki, Finland Phone: +358 10 516 0100 Business ID: 0142213-3 www.sampo.com @Sampo_plc sampo-plc 85