Supplementary Financial Information JANUARY SEPTEMBER 2017 1
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
Table of Contents Sampo Group... 4 Key Financial Figures...5 Investments 17 Capital Position. 25 If... 27 Key Financial Figures 28 Investments... 38 Capital Position.. 41 Topdanmark.45 Investments...46 Mandatum Life... 48 Key Financial Figures...49 Investments 56 Capital Position. 60 Holding. 63 Nordea..71 Outlook.81 Appendix.. 83 3
SAMPO GROUP
Key Financial Figures Sampo Group 5
Sampo Group results Profit before taxes and net profit Profit before taxes by quarters EURm EURm 2,000 1,500 1,000 500 Includes 706 EURm from valuing of Topdanmark to fair value 1,343 1,179 2,046 706 1,340 1,875 706 1,169 1,400 1,200 1,000 800 600 400 200 487 528 460 413 416 477 Includes 706 EURm from valuing of Topdanmark to fair value 450 528 430 435 1,181 475 706 0 1-9/2016 1-9/2017 0 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Profit before taxes Net profit 6
EURm Sampo Group profit before taxes 2,200 2,046 2,000 1,800 1,600 1,400 Includes 706 EURm from valuing of Topdanmark to fair value 1,343 706 1,200 1,340 1,000 800 600 624 603 796 546 491 400 200 0 35 706 90 157 180-19 -27-200 7
Sampo Group profit before taxes by quarter EURm 1,200 Includes 706 EURm from valuing of Topdanmark to fair value 1,181 1,000 800 744 706 600 400 200 207 202 706 182 169 450 475 0 17 38 53 64-9 0-200 8
Profit before taxes and comprehensive income EURm Profit before taxes Comprehensive income 2,500 2,000 1,500 1,000 500 0 624 472 603 556 35 35 796 796 706 706 90 90 157 193 180 163 Includes 706 EURm from valuing of Topdanmark to fair value 546 517 491 467 1,343 1,212 2,046 1,972 1340 706 1266 706 If Topdanmark Mandatum Life Nordea Sampo Group 9
Sampo Group gross written premiums If Topdanmark Mandatum Life Sampo Group Total 3,621 EURm 156 Total 1,822 EURm 71 Total 634 EURm 1,223 227 Total 6,077 EURm 660 1,006 3,621 563 4,628 Non-life Unit linked With profit Non-life Unit linked With profit Non-life Unit linked With profit Non-life Unit linked With profit 10
Earnings per share EPS and Comprehensive result EPS Reported EPS by quarter EUR EUR 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 2.11 Includes 1.26 EUR from valuing of Topdanmark to fair value 2.16 3.35 3.51 1.26 1.26 2.09 2.25 2.50 2.00 1.50 1.00 0.50 0.65 0.75 0.71 Includes 1.26 EUR from valuing of Topdanmark to fair value 0.84 0.68 0.67 2.01 1.26 0.74 0.00 1-9/2016 1-9/2017 0.00 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 EPS (reported) EPS (comp. result) 11
Sampo Group net asset value per share EUR 28.00 24.00 22.15 22.63 23.79 24.86 26.84 20.00 17.79 17.38 16.00 14.63 14.05 12.00 8.00 8.28 4.00 0.00 2008 2009 2010 2011 2012 2013 2014 2015 2016 30/9/2017 12
Net asset value per segment, 30 September 2017 EURm 20,000 18,000 16,000 14,000 12,000 10,000 Nordea book value in Group accounts EURm 7,493 + valuation difference EURm 2,352 9,845-898 8,000 6,000 4,000 1,398 1,396 15,030 2,000 0 3,289 If Topdanmark Mandatum Life Nordea Sampo plc & eliminations Sampo Group 13
Return on equity in Sampo Group s business areas 120% 100% If Mandatum Sampo Group 80% 60% 40% 20% 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% 24.6% 15.6% 21.4% 25.0% 15.0% 18.2% 0% -20% -40% -60% -0.8% -68.8% -32.4% -11.7% -80% 2008 2009 2010 2011 2012 2013 2014 2015 2016 1-9/2017 Average 14
Fair value reserve development by segment EURm 9/2017 12/2016 12/2015 12/2014 If 590.3 484.0 391.0 507.3 Mandatum Life 616.6**) 595.7**) 532.1**) 508.2 Holding 41.1 27.7 8.2 6.9 Sampo Group *) 1,248.7**) 1,108.1**) 931.9**) 1,016.7 *) Eliminations included and figures after tax **) Excluding the segregated portfolio 15
Fair value reserve by segment and asset class, 30 September 2017 EURm Fixed income Equity Deferred taxes The share transferred to the segregated portfolio FVR net If 109.5 645.1-164.3 590.3 Mandatum Life 57.7 747.4-161.0-27.5 616.6 Holding 24.2 27.2-10.3 41.1 Sampo Group *) 191.5 1,420.5-335.8-27.5 1,248.7 *) Eliminations included and figures after tax 16
Investments Sampo Group 17
Investment allocation Sampo Group, 30 September 2017 By sector Total EUR 22.7 billion By company Money market 12% Public sector 6% Covered Bonds 22% Other fixed income 40% Equities 15% Private equity 1% Real estate 2% Other 3% If 55% Topdanmark (P&C) 13% Mandatum Life 28% Sampo plc 5% Investments of If, Topdanmark (excluding life insurance), Mandatum Life and Sampo plc 18
Fixed income investment allocation Sampo Group excluding Topdanmark, 30 September 2017 By geography Total EUR 15.7 billion By sector Europe money market 11% Scandinavia money market 3% Europe 18% Scandinavia 56% North America 11% Other 1% Money market 14% Public sector 8% Covered bonds 22% Banks 27% Corporate 30% 19
Fixed income investments in public sector Sampo Group excluding Topdanmark, 30 September 2017 EURm Government Government guaranteed Public sector, other Total Sweden 96 632 728 Norway 221 221 Finland 78 89 166 Germany 65 65 Japan 17 17 Denmark 11 11 Total 96 153 959 1,208 20
Financial sector fixed income investments by country and investment class Sampo Group excluding Topdanmark, 30 September 2017 Covered bonds Money market Long-term senior debt Long-term subord. debt Total % Sweden 2,216 403 764 424 3,806 40% Finland 89 1,061 259 6 1,415 15% Norway 675 331 213 1,218 13% United States 670 670 7% Denmark 234-1 279 66 579 6% United Kingdom 12 381 46 1 440 5% France 21 261 59 3 344 4% Netherlands 247 17 264 3% Canada 113 115 228 2% Switzerland 166 10 176 2% Australia 17 93 111 1% Other 10 11 194 0 216 2% Total 3,387 2,116 3,224 741 9,468 100% 21
Equity investment allocation Sampo Group excluding Topdanmark, 30 September 2017 By geography Total EUR 3.3 billion By company Scandinavia 35% Finland 17% If 47% North America 14% Western Europe 24% Emerging Markets 9% Latin America 1% Mandatum Life 50% Sampo plc 3% 22
Investment returns excluding Topdanmark, January September 2017 Yield, % EURm ML*) If Group ML*) If Group Fixed income 2.4% 1.9% 2.0% 97 (4) 200 (12) 321 Equities 15.3% 12.3% 13.9% 242 (161) 181 (103) 436 Other (incl. FX net result) -0.6% -66.6% -7.9% -5 (0) -43-73 Total 5.0% 2.8% 3.2% 335 338 684 Realized sales gains and losses in parenthesis *) Including the segregated portfolio 23
Market risk sensitivity of Group investments excluding Topdanmark, 30 September 2017 EURm If Mandatum Life*) Sampo plc Sampo Group Equities -10% -154-164 -9-327 +10% 154 164 9 327 Interest rates -100 bps 165 87 50 297 +100 bps -159-81 -47-283 Other -10% -4-76 -6-82 +10% 4 76 6 82 Local currency -5% 0 36 52 - +5% 0-36 -52 - 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 24
Capital Position Sampo Group 25
Group capital and minimum requirement, Solvency II applied to insurance co s, 30 September 2017 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 13,322 4,512 2,425 11,236 Group solvency ratio 156% Group capital Intangibles and other Sectoral items Group's own funds Total capital requirement 7,215 509 3,508 1,089 2,004 105 Sampo plc Topdanmark Nordea Mandatum Life If 26
IF 27
Key Financial Figures If 28
If profit before taxes and comprehensive income EURm 700 600 624 603 556 500 490 472 470 400 300 200 100 0 1-9/2016 1-9/2017 Profit before taxes Profit for the period Comprehensive income 29
If combined ratio development % Claims ratio Expense ratio % Risk ratio Cost ratio 100.0 90.0 80.0 70.0 91.8 17.4 92.1 17.6 92.8 17.2 92.0 17.3 88.9 16.9 88.1 16.8 87.7 16.7 85.4 13.0 84.4 16.6 84.0 16.6 85.9 16.2 100.0 90.0 80.0 70.0 91.8 23.7 92.1 24.1 92.8 23.7 92.0 23.5 88.9 23.0 88.1 22.8 87.7 22.5 85.4 18.8 84.4 22.1 84.0 22.1 85.9 21.8 60.0 60.0 50.0 50.0 40.0 30.0 74.4 74.6 75.6 74.7 72.0 71.4 71.0 72.4 67.8 67.4 69.7 40.0 30.0 68.1 68.0 69.1 68.4 65.9 65.4 65.1 66.6 62.3 62.0 64.2 20.0 20.0 10.0 10.0 0.0 0.0 30
If combined ratio development 110.0% 100.0% Combined ratio excluding the one-offs is 86.1%. Combined ratio excluding the one-offs is 86.5%. Combined ratio excluding the one-offs is 86.3%. 90.0% 80.0% 100.9 % 94.9 % 91.9 % 89.9 % 90.6 % 91.8 % 92.1 % 92.8 % 92.0 % 88.9 % 88.1 % 87.7 % 85.4 % 84.4 % 84.0 % 85.9 % 70.0% 31
If GWP growth by business area and by country*, 1-9/2017 vs. 1-9/2016 Total 1.5% Private 1.9% Commercial 0.5% Industrial 1.2% Baltic 4.7% Sweden 3.9% Norway 1.7% Finland -2.9% Denmark 2.4% -4.0% -3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% *excluding currency effects 32
If technical result by business area and by country, 1-9/2017 vs. 1-9/2016 EURm 500 450 400 350 101 By business area 11 8 30 (10) (11) (36) 50 (106) By country 7 (16) 11 8 (10) (11) 300 250 200 (121) 161 (226) 463 463 (514) (514) 150 100 50 312 (337) 225 (145) 0 33
If results by quarter EURm Q3/17 Q3/16 Premiums earned 1,086 1,080 Claims incurred -748-738 Operating expenses -172-175 Other technical income and expenses -1-1 Allocated investment return transferred from the non-technical account 4-3 Technical result 168 162 Investment result 46 44 Allocated investment return transferred to the technical account -12-3 Other income and expenses -1 4 Operating result 202 207 34
If key figures by quarter Q3/17 Q2/17 Q1/17 Q4/16 Q3/16 Risk ratio, % 63.5 63.7 65.4 63.2 62.8 Cost ratio, % 21.3 22.1 22.0 22.3 21.8 Expense ratio, % 15.9 16.5 16.3 16.7 16.3 Combined ratio, % 84.8 85.7 87.4 85.6 84.6 Insurance margin, % 15.6 14.8 13.2 13.8 15.1 35
If key figures by business area, Q3/2017 (Q3/2016) Private Commercial Industrial Baltic GWP, EURm 638 (628) 155 (153) 88 (77) 33 (31) NPE, EURm 660 (654) 290 (292) 101 (100) 34 (33) Technical result, EURm 103 (92) 62 (50) -1 (15) 4 (3) Risk ratio, % 63.9 (64.2) 56.8 (60.0) 81.5 (62.4) 60.0 (61.6) Cost ratio, % 20.7 (21.6) 22.5 (22.6) 20.0 (21.7) 28.5 (28.2) Combined ratio, % 84.6 (85.8) 79.2 (82.6) 101.5 (84.1) 88.5 (89.8) Insurance margin, % 15.7 (14.2) 21.3 (16.8) -1.1 (14.6) 11.5 (10.1) 36
If key figures by country, Q3/2017 (Q3/2016) Norway Sweden Finland Denmark GWP, EURm 259 (253) 382 (362) 149 (155) 91 (88) NPE, EURm 333 (332) 381 (368) 238 (249) 100 (96) Technical result, EURm 63 (60) 64 (47) 40 (42) -3 (6) Risk ratio, % 60.4 (60.5) 63.7 (66.3) 61.9 (59.3) 77.9 (66.9) Cost ratio, % 21.7 (22.4) 19.5 (20.8) 21.5 (21.0) 24.5 (26.4) Combined ratio, % 82.1 (82.9) 83.1 (87.1) 83.5 (80.3) 102.4 (93.4) Insurance margin, % 18.9 (18.1) 17.0 (13.2) 16.5 (16.8) -2.4 (6.3) 37
Investments If 38
If investments, 30 September 2017 Investment allocation, Total EUR 12.4 billion AFS investments unrealized gains before taxes EURm Money market 7% Fixed income 54% Covered Bonds 26% Equities 12% Other 0.3% 850 750 650 550 450 350 250 150 50 192 508 700 204 513 717 203 484 687 136 511 648 144 657 801 90 618 708 1 497 498 560 500 506 438-6 460 454 34 581 615 10 608 618 47 700 746 57 704 760 109 645 755 Duration 1.4 years Average maturity 2.7 years Fixed income running yield 1.5% -50-60 -68 3/14 6/14 9/14 12/14 3/15 6/15 9/15 12/15 3/16 6/16 9/16 12/16 3/17 6/17 9/17 Fixed income Equities 39
If mark-to-market investment returns 14.0 % 12.0 % Fixed income running yield Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 % 1.8 1.8 1.7 1.6 1.7 1.7 1.6 1.5 12.4 % 10.0 % 8.0 % 6.0 % 4.0 % 2.0 % 7.4 % 1.8 % 6.1 % 5.0 % 4.1 % 1.5 % 2.9 % 2.8 % 0.0 % -2.0 % -4.0 % -3.1 % 2008 2009 2010 2011 2012 2013 2014 2015 2016 1-9/2017 40
Capital Position If 41
If Solvency Capital Requirement (SCR), Standard Formula (SF), 30 September 2017 EURm 4,500 4,000 Group solvency ratio 193% 3,500 3,000 176 2,500 518 2,000 1,396 332 3,867 1,500 119 1,000 2,004 500 0 1,164 Market risk Counterparty risk Insurance risk Operational risk Diversification LAC of DT SCR SII own funds 42
If, Solvency II stresses, Test on Standard Formula Solvency II EOF ratio with transitional Equity Measures 250% 200% 193% 203% 206% 180% 176% 202% 182% 182% 188% 175% 150% 100% 50% +30% -30% +100 bps -100 bps +100 bps -100 bps 0% Solvency II ratio Q3/2017 Equity Interest rate Spread 1 in 10y run-off loss 1 in 10y Nat CAT +100 bps claims inflation 43
If rating capital requirement, 30 September 2017 EURm 4,500 4,000 3,500 3,000 249 2,500 1,849 2,000 4,057 1,500 3,184 1,000 500 0 1,590 Asset risks Liability risks Diversification Total A capital charge S&P capital base 44
TOPDANMARK 45
Investments Topdanmark 46
Topdanmark investments, 30 September 2017 Investment allocation Total EUR 2.9 bn Public Sector 1% Covered Bonds 54% Other Fixed Income 2% Money Market 18% Equities 5% Real Estate 5% Private Equity 1% Other 15% 47
MANDATUM LIFE 48
Key Financial Figures Mandatum Life 49
Mandatum Life profit before taxes and comprehensive income EURm 250 200 150 157 128 193 180 142 163 100 50 0 1-9/2016 1-9/2017 Profit before taxes Profit for the period Comprehensive income 50
Mandatum Life Group profit by components EURm 1-9/2017 1-9/2016 Net investment income 645.2 359.4 - Transferred to expense result -20.0-18.2 - Return on unit-linked policies -334.7-135.3 - Return on with-profit policies* -140.4-79.6 INVESTMENT RESULT 149.9 126.3 EXPENSE RESULT** 21.3 16.8 RISK RESULT 20.9 15.1 OTHERS -11.9-1.3 PROFIT BEFORE TAXES 180.3 156.9 Change in the market value of investments 27.7 86.3 PROFIT AT MARKET VALUES 208.0 243.2 Mandatum Life Group, expense ratio Total expense ratio, % 98.4 101.8 Incl. kick backs, % 78.5 82.5 *Includes guaranteed interest, bonuses and change in the reserves of the above items **Result of unit-linked business EURm 22.7 51
Mandatum Life breakdown of unit-linked and with profit business Premiums written, total EURm 634 Insurance savings, total EURm 10,652 With profit EURm 71 1 15 55 13 169 3,536 28 17 2,448 297 84 UL EURm 563 With profit EURm 3,747 2,140 UL EURm 6,905 166 163 2,154 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 52
Mandatum Life technical reserves EURm 12,000 10,000 8,000 6,000 4,000 2,000 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% 5,312 5,858 6,440 6,909 3,124 1,262 1,752 2,071 2,359 3,054 3,833 4,617 365 593 871 1,637 244 228 226 288 311 344 313 311 372 1,228 1,196 377 1,142 385 1,087 439 135 244 273 2,915 2,984 2,925 2,935 439 2,868 499 325 2,824 2,843 2,831 545 2,821 2,719 2,598 526 2,475 2,360 2,245 2,108 1,996 Focus area 0 1,467 1,447 1,475 1,515 1,516 1,453 1,330 1,289 1,217 1,152 1,087 1,014 903 830 753 695 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 9/2017 53
Mandatum Life s gross written premiums by policy type in Finland EURm 900 800 700 122 117 131 600 89 69 500 400 300 647 628 689 571 551 200 100 0 1-9/2013 1-9/2014 1-9/2015 1-9/2016 1-9/2017 Unit linked With profit 54
Mandatum Life s new premiums written by distribution channel in Finland EURm 700 17 600 500 400 347 5 5 300 302 346 200 100 0 274 175 109 1-9/2015 1-9/2016 1-9/2017 Danske Bank Mandatum Life Other 55
Investments Mandatum Life 56
Mandatum Life investments, 30 September 2017 Investment allocation, Total EUR 5.2 billion* AFS investments unrealized gains before taxes Duration 2.1 years Average maturity 2.3 years Fixed income running yield 2.8% Money market 12% Fixed Income 43% Covered Bonds 2% Equities 30% Private equity 4% Other 9% EURm 800 700 600 500 400 300 200 100 0 599 680 628 635 835 744 567 678 607 635 782 771 825 796 805 498 586 546 570 761 695 540 665 580 603 723 727 770 737 747 102 94 82 65 74 49 26 14 27 32 59 44 55 59 58 3/14 6/14 9/14 12/14 3/15 6/15 9/15 12/15 3/16 6/16 9/16 12/16 3/17 6/17 9/17 Fixed income Equities * Excluding the segregated fund 57
Allocation of investments of the segregated assets, 30 September 2017 Investment allocation Total EUR 1.1 bn Money market 9% Fixed income 71% Covered Bonds 4% Equities 9% Private equity 2% Other 5% Duration 2.6 years Average maturity 3.4 years Fixed income running yield 2.1% 58
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 % 3.2 3.5 3.1 3.1 2.9 3.3 2.8 2.8 20.0% 16.8% 15.0% 10.0% 5.0% 11.1% 9.4% 7.1% 4.6% 6.9% 7.2% 5.7% 0.0% -5.0% -10.0% -1.4% -7.8% 2008 2009 2010 2011 2012 2013 2014 2015 2016 1-9/2017 * Excluding unit-linked and segregated fund assets 59
Capital Position Mandatum Life 60
Mandatum Life, Solvency II Capital Requirements with transitional measures, 30 September 2017 EURm 2,400 2,200 2,000 Group solvency ratio 193% 1,800 1,600 1,400 1,200 1,000 60 391 282 36 72 272 2,100 800 600 400 1,229 1,089 200 0 Market risk Counterparty risk Life risk Diversification Operational risk LAC of TP LAC of DT SCR Own funds 61
Mandatum Life, SCR Coverage Ratio, Estimated sensitivities, 30 September 2017 250% 200% 193% 185% 200% 189% 189% 150% 100% 50% 0% Base case 30/09/2017 Interest rates -25 bps Interest rates +25 bps Equity -10% Credit spread +50% 62
HOLDING 63
Holding segment profit before taxes EURm 1-9/2016 1-9/2017 600 500 546 491 527 464 400 300 200 100 0-100 10 26-20 -24-9 -29 Income Operating costs Finance costs Nordea Profit before taxes 64
Sampo plc investments, 30 September 2017 Investment allocation (unconsolidated) Total EUR 1.3 bn Money market 46% Fixed income 43% Equities 7% Other 5% Duration 1.1 years Average maturity 4.0 years Fixed income running yield 2.5% 65
Sampo plc participates in the voluntary offer on Nets A/S Sampo plc will participate as an indirect minority co-investor in the voluntary takeover offer announced 25 September 2017 by Evergood 5 AS to acquire Nets A/S offering DKK 165 for each share in cash. The size of Sampo's investment would be EUR 230 million. Nets is the leading payment services utility provider in the Nordics with an integrated position across the entire payments value chain. It has a highly resilient business that is deeply engrained in the financial ecosystem in the Nordics with significant economies of scale. 66
Sampo plc will buy a stake in Saxo Bank Saxo Bank was established in 1992 and is a pioneer in developing an internet based information and trading platform across international financial markets. Today, Saxo Bank is a fully licensed bank regulated by the Danish FSA. The Bank is headquartered in Copenhagen and has offices in 19 locations around the world, clients from more than 180 countries. The Bank enables private and institutional clients to trade FX, CFDs, Options, Futures, Fixed Income, Cash Equities and ETCs/ETFs, offering more than 35,000 tradable intruments. The Bank has an unique trading facilitation business model that enables deep liquidity, speed and reliability of execution and competitive and transparent pricing. Sampo plc will buy 19.9 per cent of shares in Saxo Bank Group for EUR 265 million. The transactions are pending regulatory approvals and are expected to be finalised during the next six months. 67
Sampo plc balance sheet, 30 September 2017 Assets total, EURm 10,354 Liabilities total, EURm 10,354 Liquidity 624 CPs issued 293 Investment assets 210 LT senior debt 2,885 Real estate 2 Private placements 128 Fixed income 60 Bonds issued 2,757 Equity and private equity 148 Pension insurance loans 0 Subordinated loans 500 Subordinated debt 0 Equity holdings 8,958 Capital 7,092 Subsidiaries (If, ML, Topdanmark) 3,401 Undistributable capital 98 Associates (Nordea) 5,557 Distributable capital 6,994 Other assets 62 Other liabilities 84 68
Net debt in Sampo plc EURm 2017 2016 2015 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 + Gross debt 3,178 3,279 2,932 3,548 2,845 2,461 2,483 2,302 2,284 2,332 2,171 Bonds & notes 2,885 2,884 2,399 2,877 2,142 2,157 2,183 1,997 1,984 1,994 1,873 Domestic CP s 293 394 534 671 702 305 300 305 300 338 298 Interest bearing assets Liquidity buffer + fixed income 1,184 1,137 2,112 2,104 992 1,058 2,137 1,343 630 675 1,837 684 509 1,471 1,467 369 444 1,528 764 127 198 1,336 Subordinated loans 500 628 640 637 623 614 609 579 503 477 501 Net debt 1,994 2,142 820 1,443 1,853 1,403 346 959 1,654 1,657 334 69
Sampo plc debt instruments, 30 September 2017 Instrument & Principal Coupon Swap Effective Rate Maturity CP s issued 394 EURm Euribor + Margin 0,2500% Average 3M Senior Bond 2,000 SEKm Stibor3M + 1.45% Euribor3M+1.375% 1,0460% 29/05/2018 Senior Bond 500 EURm 1.1250% --- 1,1640% 24/05/2019 Senior Bond 2,000 SEKm Stibor3M + 0.77% Euribor3M+0.586125% 0,2571% 28/05/2020 Senior Bond 1,000 SEKm 1.2500% EUR 1.007% 1,0070% 28/05/2020 Senior Bond 500 EURm 1.5000% --- 1,5920% 16/09/2021 Senior Bond 750 EURm 1.0000% --- 1,0060% 18/09/2023 Senior Bond 500 EURm 1.25% EUR6M + 0.735% 0,4810% 20/05/2025 Public debt 3,151 EURm 0,9216% Private placements 128 EURm 1,1829% Total 3,279 EURm 0,9321% Key Credit Metrics Net debt, EURm 1,994 Equity, EURm 7,092 Gross Debt to Equity 45% Financial Leverage 31% 70
NORDEA 71
Nordea s book value on Sampo Group s consolidated balance sheet, 30 September 2017 Nordea in Sampo Group s balance sheet EURm Acquisition price 5,557.3 Retained earnings 2,044.8 Accumulated other changes in Nordea s equity -47.8 Share of Nordea s net profit 511.5 Amortization -26.5 Deferred tax 5.8 Dividends -559.3 Share of Nordea s other comprehensive income -41.0 Share of Nordea s other changes in equity 30.8 Share of Nordea s goodwill change 17.4 Total 7,493.0 Shares 860,440,497 8.71 72
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 Share price, lhs Book value, lhs 73
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 2,008 1,811 1,260 2,999 2,621 1,439 1,430 386 336 1,570 2,008 2,267 2,352-500 -1,000-352 -543-461 -621 3/12 6/12 9/12 12/12 3/13 6/13 9/13 12/13 3/14 6/14 9/14 12/14 3/15 6/15 9/15 12/15 3/16 6/16 9/16 12/16 3/17 6/17 9/17 74
NORDEA Transformation 75
Strong Nordea track record Strong capital generation and stable returns at low risk* Acc. dividend EURbn Acc. equity EURbn 26 29 CAGR* 13% 31 35 37 39 43 47 12 15 18 20 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2005 CET1 ratio (%) 5.9** Q317 CET1 ratio (%) 19.2 Leverage ratio (%) 4.9 76 * CAGR 2015 vs. 2005, adjusted for EUR 2.5bn rights issue in 2009. Equity columns represents end-of-period equity less dividends for the year. No assumption on reinvestment rate for paid out dividends ** Calculated as Tier 1 capital excl. hybrid loans
We are ready to take the next step in our transformational journey Illustrative timeline Success factors 3 OPTIMISATION 1 RAMP UP (2015 2017) Ambitious investments to build the foundation Fast & agile Efficient and Scalable Resilient and compliant 2 EXECUTION 2 EXECUTION (2018 2021) Distribution/Channels/Service model Credit Processes & Products IT & Ops Key support functions 1 OPTIMISATION (2021 - ) RAMP UP 3 Future relationship bank 2015-2017 2018-2021 2021-77
Expected cost development 2017-2021 350-400 ~225-250 in 2018 ~300 Comments Significant underlying cost pressure of 600-700m driven by: ~5,100-5,200 50 ~300-400 -150 Increasing running expenses for IT systems following the substantial development agenda/digital transformation and compliance -75 <4,800 Annual underlying salary increases and inflation on non-staff expenses -900 Increasing depreciations & amortisations following substantial product/investments in IT infrastructure / solution platforms Estimated 2017 Cost incl. Transformational costs Baltics & Redomicilation Run cost effects of 2015-17 ramp-up, reinvestments and inflation Depreciation & Amortisation Group projects ramp-down Transformational 2021 Cost incl. driven gross Transformational savings costs Gross savings driven by transformation, as well as lower project costs, more than counteracting the upward pressure 78
Gross cost savings of around 900 EURm expected through transformation Estimated savings effects* Distribution/ Channels/ Service model Ramp up speed of migration to digital (mobile), remote meetings, and closing down branches Segmentation and stronger Nordic coordination of client coverage and build up of global competence center ~ 30% (~250 EURm) Credit processes & Products Implementation of pre-approved credit limits and automated credit decisions Functional centralisation to achieve scale and enhanced capacity Implementation of common standards for risk assessments Strict product prioritisation, production location (in-house, outsourced or white labelled) and centralise workforce/processes to improve efficiency ~ 15% (~150 EURm) Information Technology & Operations Higher degree of centralisation and nearshoring/outsourcing and shared platforms Automatization and Robotics Reduce complexity and establish future technological platform ~ 45% (~400 EURm) Key support functions Optimised service model for People (i.e. Learning), Finance and consolidation of support staff Higher degree of nearshoring in relevant areas Streamlining sourcing strategy ~ 10% (~100 EURm) Total 100% (~900 EURm) 79 * Numbers rounded to closest 5%
FTE and consultants effects (incl cost to transform) Comments The transformation will include a reduction of FTEs of >4.000 New hirings to support competence shift and centralisation Number of consultants to be reduced by ~2.000 over the 2017-2021 period >6 000 ~2000 Consultants The transformation is expected to generate a total cost to transform of ~5-600m over the 2017-2021 period Absolute majority of cost to transform consists of redundancy costs The costs are mainly related to: Transformation of Personal Banking and CBB including the migration to Digital Gross reductions New hirings Net reductions IT & Operations (nearshoring and automation & process optimisation) 80
OUTLOOK 81
Sampo Group s outlook for the rest of 2017 Sampo Group s business areas are expected to report good operating for 2017. However, the mark-to-market results are, particularly in Mandatum Life, highly dependent on capital market developments. The continuing low interest rate level also creates a challenging environment for reinvestment in fixed income instruments. If is expected to reach a combined ratio of 85-87 per cent for the full-year 2017. 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. 82
APPENDIX 83
Sampo Group structure Long-term investor Manager of capital structure and liquidity Pay-out ratio 50% 100% > 45% 21.2% 100% Subsidiary Subsidiary Associated Company Subsidiary 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 The most diversified bankin the Nordics with strong capital generation One of Finland s most respected and solvent financial services providers to private & corporate customers Strategy Focus areas: Customer value Focused insurance expertise Nordic business platform Investment strategy with balanced risk Customer satisfaction Pricing Efficiency Distribution power Simplification Cost & capital efficiency One operating model Compliance Digital Offering Unit-linked products Wealth management Personal Risk insurance Group pension & Reward Services Investment assets ~ EUR 12.4bn ~ EUR 2.7bn P&C (2016) ~ B/S EUR 615bn ~ AuM EUR 317bn ~ EUR 6.3bn Return / profit target RoE above 17.5% CR% below 95% Profit margin of 10% CR% 91% ROE above the Nordic peer average RoE above 17.5% 84
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 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. Mandatum Life ends distribution agreement with Danske Bank. 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. 85
Sampo plc s ownership structure, 30 September 2017 Solidium 11.90%* Varma Mutual Pension 5.35 Björn Wahlroos 1.79% The State Pension Fund 0.70% Ilmarinen Mutual Pension 0.66% Other domestic owners 17.55% Foreign and nominee registered owners 62.06% * Entirely owned by the Finnish state 86
Sampo Group staff Sampo Group staff (FTE) 30 September 2017 31 September 2016 If 6,415 6,226 Finland 1,763 1,674 Sweden 1,933 1,884 Norway 1,326 1,359 Denmark 588 543 Baltic and other countries 805 765 Topdanmark 2,439 - Denmark 2,439 - Mandatum Life 522 554 Finland 428 454 Baltic countries 94 100 Holding 60 57 Sampo Group, total 9,436 6,837 87
P&C insurance Market shares by country, % Norway Q2/2017 Total GPE EUR 6 bn Gjensidige 26% If 21% Tryg 13% Sparebank1 10% DnB 5% Eika 4% RSA 3% Storebrand 3% Protector 3% Other 12% Sweden Q2/2017 Total GPE EUR 8 bn LF 30% If 18% Trygg-Hansa 15% Folksam 17% Moderna 3% Dina-gruppen 3% Gjensidige 2% Other 13% Finland 2016 Total GPE EUR 4 bn OP 32% LähiTapiola 26% If 23% Fennia 10% Other 10% Denmark 2016 Total GPE EUR 7 bn Baltics 2016 Nordics 2016 Total GPE EUR 26 bn Tryg 18% Topdanmark 17% If 6% Codan (RSA) 11% Alm.Brand 10% Gjensidige 7% Other 31% PZU 24% If 12% VIG 19% Ergo 13% Gjensidige 11% Seesam 6% Other 8% If 18% Topdanmark 5% Tryg 9% LF 10% RSA Scand. 9% Gjensidige 8% Folksam 6% OP 6% LähiTapiola 4% Other 25% 88
Life insurance Market shares by country, % Norway Q2/2017 Total premiums EUR 5 bn Sweden Q2/2017 Total premiums EUR 21 bn Finland 2016 Total premiums EUR 5 bn DnB 16% Storebrand 18% KLP 32% Nordea Liv 12% Sparebank 16% Gjensidige 3% If 1% Tryg 1% Other 11% Skandia 13% SEB 8% Folksam 15% Swedbank 7% AMF Pension 9% Avanza 7% Nordea Liv 7% LF 5% Nordnet 3% Alecta 9% SHB 5% SPP 3% Danica 6% Other 2% OP Life 22% Mandatum Life (+Kaleva) 24% Nordea 31% LähiTapiola 9% Fennia 5% Aktia 3% Other 7% Denmark 2015 Total premiums EUR 14 bn Baltics 2016 PFA Pension 39% Danica Pension 22% Nordea Liv & Pension 16% SEB Pension 8% Topdanmark 8% AP Pension 6% Alm.Brand 1% Other 1% Mandatum Life 7% Other 93% 89
Supplementary Financial Information JANUARY SEPTEMBER 2017 Sampo plc Fabianinkatu 27 00100 Helsinki, Finland Phone: +358 10 516 0100 Business ID: 0142213-3 www.sampo.com @Sampo_plc sampo-plc 90