Sampo plc Annual General Meeting 18 April 2013 Björn Wahlroos Chairman of the Board
USA and Euro area industrial production 105 100 2007=100 USA 95 90 85 Euro area 80 2007 2008 2009 2010 2011 2012 2013 Source: Datastream
USA and Euro area unemployment rates % 13 12 11 10 9 8 7 6 5 Percentage of labour force, incl. OECD forecast Euro area USA 4 2007 2008 2009 2010 2011 2012 2013 2014 Source: Datastream
Finland machinery and equipment investments EURm 4 000 3 500 3 000 All industries 2 500 2 000 1 500 All industries excl. TVO investments in Olkiluoto 1 000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Source:: Statistics Finland, Gross fixed capital formation, All industries, at year 2000 prices, TVO Annual Report 2012, Sampo
Sampo is a dividend stock EUR 1,40 1,20 1,00 0,80 0,60 0,40 0,20 0.80 Sampo plc - Dividend per share 1.20 1.15 1.00 1.35 0,00 2008 2009 2010 2011 2012* * Board s proposal to the AGM held on 18 April 2013
Sampo Group remuneration* EURm 450 400 350 300 250 200 150 100 Total cost EUR 446 million 26 29 ** Long-term Incentives Short-term Incentives Total cost EUR 402 million 8 21 391 ** Fixed Salaries 373 In short- and long-term Incentive programs ~ 145 managers ~ 6,000 employees Total personnel ~ 6,800 employees 50 0 2012 2011 * Not including pension costs or other social security costs (EUR 142 million in 2012 and EUR 141 million in 2011). **Salary inflation is ca. 2.4% when currency effects of ca EUR 9 million are excluded.
Sampo, European banks and insurance indices 3 500 3 000 2 500 2 000 14.1.1988=100 Total shareholder return Sampo Euro STOXX 600 Banks EuroSTOXX 600 Insurance 1 500 1 000 500 0 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Source: EcoWin, Nasdaqomx
Sampo plc Annual General Meeting 18 April 2013 Björn Wahlroos Chairman of the Board
Sampo plc Annual General Meeting 18 April 2013 Kari Stadigh Group CEO and President
The Government is overregulating and we all are shying away from our responsibilities 6 of 10 respondents consider that the government is overregulating 7 of 10 consider that too often we outsource responsibility of our own business to the society * for in Finland legislative activity is one of the highest in Europe only ~12% of the bills enacted during Finnish membership contained a reference to EU (during EU membership total number of new EU laws ~ 70,000) Finnish law production: ~ 40% one paragraph modifications of existing laws A surprisingly strong confidence in the omnipotence of legislation *EVA Holhouksen alaiset 17.10.2012 (TNS Gallup, a panel of 15-74 years of age representatives of the whole population, N=1131)
In 2012 the flood of regulations on financial services continued Banking Union / Bank Supervision agreement on Single Supervisory Mechanism; discussions continue about Single Resolution Mechanism and Deposit Guarantee Scheme Capital requirements for banks agreement on CRD IV/CRR package; starting time not decided yet; regulation comes into effect phase by phase in 2014-2019 Solvency II postponed The Liikanen report possible legislative actions Gender neutral pricing adopted for voluntary individual policies PRIP (Packaged Retail Investment Products) financial products preparations for regulation on information for customers Financial Transaction Tax (FTT) preparations proceed between 11 EU member states, Finland not involved Over 14,000 changes in the financial services legislation in Europe in 2011. KPMG CRD IV Capital Requirements Directive, CRR Capital Requirements Regulation
Sampo Group had a strong 2012 Sampo Group has more capital than ever before, both as a Group and in each of the business areas The profit before taxes was higher than ever before*. * excl. the sale of Sampo Bank in 2007
Profits at all-time high in P&C insurance and banking EURm 1 800 1 600 1 400 1 200 1 000 800 600 400 200 0-200 636 Sampo Group s profit before taxes 858 If P&C 137 1-12/2011 1-12/2012 136 Mandatum Life 534 653 1 228 1 616-77 -30 Nordea Holding* Sampo Group * excl. Nordea
Favourable marked-to-market earnings development EUR 3,60 3,20 2,80 2,40 2,00 1,60 1,20 0,80 0,40 0,00 EPS and Comprehensive result EPS 1,85 1,22 2,51 3,31 1-12/2011 1-12/2012 EPS (reported) EPS (comp. result) EUR 0,80 0,60 0,40 0,20 0,00 0,50 Reported EPS by quarter 0,57 0,66 0,56 0,72 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12
Net asset value grew despite the high dividend EUR 20,00 18,00 16,00 14,00 12,00 10,00 8,00 6,00 4,00 2,00 0,00 5,97 Sampo Group net asset value per share 7,67 9,21 13,49 8,28 14,63 17,79 14,05 17,55 2004 2005 2006 2007 2008 2009 2010 2011 2012
Reinvesting proceeds becoming more difficult Investment allocation, 31 December 2012 Total EUR 18.2 billion Equities 16% Real Estate 2% Other 3% Money Market 12% Long-Term Fixed Income 67% Investments of Sampo plc, Mandatum Life and If P&C
Sampo Group s Businesses in 2012
If P&C insurance the largest insurer in the Nordic countries In 2012 best ever combined ratio, strongest ever solvency position and all-time high premium income.
If P&C is the dominant Nordic P&C insurer Gross Written Premiums in 2012, EUR billion If 4,7 Tryg Gjensidige RSA Scand.(Net) LF 2,7 2,5 2,2 2,2 3 million private customers 320,000 corporate clients 6,400 employees 1.4 million claims per year, of which > 50% handled within 24 hours Pohjola Topdanmark 1,2 1,2
If P&C achieved the best combined ratio in its history in 2012 % 100 If P&C Insurance - combined ratio development 90.5 89.9 90.6 91.8 92.2 92.8 92.0 89.3 80 17.8 17.4 17.2 17.4 17.6 17.2 17.3 17.1 60 40 20 72.7 72.5 73.4 74.4 74.6 75.6 74.7 72.1 0 2005 2006 2007 2008 2009 2010 2011 2012 Claims ratio Expense ratio Long-term target < 95%
Despite large claims combined ratio in 2012 was the best-ever Large claims affect the volatility of results significantly in short-term (both related to current and prior years). In 2012 large claims were EUR 50m higher than an average year. Normalised, If expects roughly EUR 20-25m each month. Reinsurance protects against excess losses.
If P&C s results are more stable than its peers European insurance - Average combined ratio 2007-14e against volatility 7 Sub-group 2 Sub-group 3 Standard deviation, % 6 5 4 3 2 1 0 Gjensidige Topdanmark Sub-group 1 If P&C Swiss Re Tryg SCOR Hannover Re Generali Munich Re AXA Aviva 90 91 92 93 94 95 96 97 98 99 100 Source: Macquarie. European Insurance, 22 January 2013 AVERAGE Allianz Zig Combined ratio, % Sub-group 4
Growth initiatives in Finland If P&C to take over Tryg s Finnish business A consideration of EUR 15 million Tryg s branch in Finland has 155,000 customers a market share of approximately two per cent a premium income of EUR 84 million (2011) ~ 200 employees, who will be transferred to If If P&C and Nordea sign a new insurance partnership Nordea will offer If s general insurances to its personal customers as a part of banking services via its branches and the internet in Finland, Sweden and the Baltic countries. General insurances will form a fixed part of the comprehensive advisory concept and everyday risk management that Nordea offers to its customers; e.g. offering a home insurance when negotiating about a housing loan.
If P&C is the largest shareholder in Topdanmark Topdanmark s shareholder structure Sampo Group s holding in Topdanmark ~23% of the shares ~26% of the votes Sampo Other foreign shareholders Danish institutions Private shareholders, foundations etc. Own shares Employees etc. Nominee holdings 31,476,920 shares with an average acquisition price of DKK 73.53/share Acquisition value DKK 2.3 bn Market value DKK 4.4 bn, March 28, 2013
Nordea Bank the largest bank in the Nordic countries In 2012, Nordea had more customers, more capital and higher profit than ever before.
Sweden Norway Nordea has a unique position in the Nordics 1 Superior customer franchise 2 Retail Customers Corporates & Institutions No. of relationships (m) Market position 4.2 #2-3 1.0 #2 No. of relationships ( 000s) Market position 246 #1-2 87 #2 Global capabilities on par with international peers 1 Capital Markets #1 Asset Management #1 Finland Retail market Denmark 3.2 #1-2 1.7 #2 125 #1 50 #1-2 Life & Pension #1 Private Banking #1 Total Nordea 11.2 #1 625 #1 Source: Nordea; Poland (668,000 total customers), Baltics (406,700 total customers) and Russia (67,000 total customers) are not included in the figures. 1 Ranking in Nordic region
Nordea is the most diversified Nordic bank 73% Geographic exposure vs. Nordic peers¹, % Largest single market contribution of loans ~60% ~70% ~70% ~80% ~90% Total loans to public by geography, % Poland 2 Baltics % 2% Norway 18 % Russia 1 % Finland 27 % 27% Denmark 24% Sweden 26 % Nordea Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Total: EUR 346 bn 1 Comparison based on reported geographical breakdown of loans to the public; latest available financials. Source: Nordea
Nordea is committed to deliver on the 2015 plan Nordea market commitments Key initiatives and levers Strong capital generation and return of excess capital to our shareholders Capital initiatives to maintain CT1 ratio >13% ROE target of 15% at a CT1 ratio >13% and with normalised interest rates Initiatives for income generation Flat costs 2013 14 Initiatives for cost savings of ~EUR 450 m Delivering low volatility results based on a well diversified and resilient business model Low risk profile and low volatility Source: Nordea
Mandatum Life the leading expert on money and life in Finland In 2012, higher than ever solvency capital, record sales performance by Danske Bank and all-time high unit-linked savings.
Excellent sales performance by Danske Bank EURm 900 800 700 600 500 400 300 200 100 0 New premiums written by channel in Finland Danske Bank Others Mandatum Life 536 301 318 30 46 31 321 183 188 2010 2011 2012
Comprehensive expert services for rewarding and managing personnel funds Innova s market share of managing personnel funds Other funds Total number of funds 56 39 % 61 % Funds managed by Innova Total number of members in the funds 118,000 Members in other funds 28 % 72 % Members in funds managed by Innova
Sampo plc Sampo s dividend distribution capacity offers a stable value creation to its shareholders.
Sampo plc s dividend capacity is strong EURm 1 000 Dividends received by Sampo plc 800 744 756 768 600 400 511 130 568 80 204 250 100 224 200 200 488 540 406 544 0 181 2008 2009 2010 2011 2012 If Mandatum Life Nordea
Sampo is a dividend stock EUR 1,40 1,20 1,00 0,80 0.80 Sampo plc - Dividend per share 1.20 1.15 1.00 1.35 0,60 0,40 0,20 0,00 2008 2009 2010 2011 2012* * Board s proposal to the AGM held on 18 April 2013
Sampo continues to be a good investment Sampo and EuroSTOXX indices 1200 31.12.1999=100 1100 1000 900 Total annual return of Sampo share since year 2000 ~19% Sampo 1200 1100 1000 900 800 800 700 700 600 600 500 500 400 400 300 200 100 0 EuroSTOXX Europe, Banks/Insurance, 50/50 00 01 02 03 04 05 06 07 08 09 10 11 12 13 300 200 100 0 Source: Reuters EcoWin
Sampo plc Annual General Meeting 18 April 2013 Kari Stadigh Group CEO and President