Annika Falkengren CEO & President The relationship bank of the Nordics Copenhagen January 11, 2011
SEB s anatomy 2010 in summary Outlook Conclusions 2
SEB a unique Nordic Bank Relationships Corporates Stability 3
Customer relationships is paramount Commitment from all levels of both SEB and client Executed through daily interaction and in-house training Corporate client 4
Proven market recognition Best financial advisor in the Nordics Top ranking FX for the Nordic region SEB Enskilda #1 Broker firm in SE, NO & FI Global Private Banking Award Top European Prime Broker SME bank of the year The Corporate Bank of the year Top position in /$ forecasting 5
A leading Nordic corporate Bank Attractive income mix (%) SEB 1) Nordic peers 2) 0% 20% 40% 60% 80% 100% Large Corporates & Institutions Life Asset management Retail Note) Figures from 2009 1) Excluding Retail Germany 2) Aggregated income distribution of Swedbank, SHB, Nordea, Danske and DnB NOR. Business units only (indicative) 6
Unique corporate franchise Truly embedded corporate bank Mergers & Acquisitions Foreign Exchange Trade & Supply Chain Finance Custody Equities Fixed Income Lending Relationship business model Leading product offering Strong distribution power Prime Brokerage Structured Derivatives Cash Management SEB Group, total income by customer group (SEK bn) 15 Private Corporate & Institutions 10 5 0 Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 7
Stability is fundamental The trusted partner for customers with aspirations Truly customer driven bank Proactivity Baltic cautiousness Early provisioning Rights issue Long-term funding 8
SEB prepared for new regulations Capital Core Tier 1 >12.1% Leverage 5.6% or 18x (FDIC) Basel III Funding Matched funding >18 months Liquidity Reserves > SEK 300bn > 10% of balance sheet 9
SEB s anatomy 2010 in summary Outlook Conclusions 10
A challenging year in the market Macro Global recovery unstable but Nordics strong, especially Sweden Sovereign debts Banking industry Subdued corporate credit demand Volatile equity markets Regulation Basel III clarified No level playing field Operating profit (SEK bn) 3.6 2.8 Q3-08 Q4-08 Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Note: Shaded areas refer to gain on buy-back of subordinated debt, acquisition goodwill write-offs and restructuring costs, respectively 11
Baltic recovery gains momentum Back in black 20 16 12 8 4 Baltics SEK bn Export-led economic recovery Consumer confidence returning Strong franchise - customers, employees, solutions & brand 0 NPL Reserves Total Writeoffs, acc. 10-point plan running according to plan Q4-09 Q1-10 Q2-10 Q3-10 Increased focus on new business activities 12
The Baltic 10-Point plan Increased focus on Back on the road Secure the area 1 Risk management Financial planning tool 2 Distressed assets Model upgrade 3 Credit skills TCM academy 4 5 6 Integration Target marketing Business culture Moving towards Customer excellence TCM academy Packages private Back on the road 7 8 Restore C/I Customer excellence Service academy 9 Customer loyalty 10 The best employer 13
Completed strategic alignment German retail banking deal to be completed in Q1 2011 Strategic rationale Completes strategic alignment Banco Santander ideal partner Financial ratios will improve C/I: +4 units Core Tier 1: +50 bps RoE: +60bps Growth potential in corporate segment Become the bank of choice for Mittelstand clients 14
SEB s anatomy 2010 in summary Outlook Conclusions 15
Interpreting the signs of duality Global market uncertainty Sovereign debts Regulations impact Strong Swedish export market Company expansion plans Increased household savings 16
Great starting point for growth in areas of strength Prerequisites Growth strategy No ailing businesses Desired business mix in place One SEB business model Scalable platform Strong capital position 3 2 1 Segment growth Geographic growth Core relationship growth 17
Core relationship growth Attractive position Large corporates Sweden Continue to excel the competition The only true embedded bank Top ranked products across the line Private Banking Strengthen core markets Excel from #1 position in Sweden Attract new assets under management Cards Baltic Retail Banking Nordic model with strong local presence Building the most respected and #1 home bank Number 1 in the Nordics One Nordic company integration and scale of economies Continued risk management Develop customer franchise 18
Geographic growth Potential through investments in client coverage Country Sweden Norway Wallet penetration Potential Corporate target market Core relationships % 100 Sweden Nordics Finland Denmark Germany -100 Perceived quality* 2006 2009 0 100 2012 desired position * Relative to mean performance in relative market (Source: Greenwich) 19
Geographic growth Nordic and German corporate expansion Nordics Development 2010 Laid groundwork for growth, now positioned for recovery Focus areas 2011-13 Benefit from corporate refinancing and pick-up in credit demand Accelerate market activities Germany Focused on sale of Retail banking business and improved corporate business proposition Complete recruitments Execute, execute, execute More than 100 new clients Several headline transactions Gain 400 new clients No. 1 overall rank for large corporates in the Nordics The bank of choice for German Mittelstand clients 20
Geographic growth Well positioned in the Nordics Nordic syndicated corporate loans bookrunner (Q3 YTD) SEB Nordea Credit Agricole 14.2% 12.9% 22.2% Refinancing of Nordic corporate loans (SEK bn) 245 165 350 340 DnB NOR Danske Markets Source: Dealogic 9.5% 11.9% 2010 2011 2012 2013 Sweden Norway Denmark Finland Source: Dealogic Swedish corporate lending growth vs. economic sentiment 20 10 115 105 0 95 85-10 75 2003 2004 2005 2006 2007 2008 2009 2010 Corporate lending growth, y-o-y % - lagged by 12 months (LHS) Economic sentiment (RHS) Source: Datastream, SEB Enskilda 21
Segment growth A true business partner for SMEs Strong offering and increased focus Increase position in micro-smes Expand footprint in larger SMEs Improve customer experience SME market share Sweden (%) 16% 14% 12% 10% 8% 6% 4% 2% 0% 2005 2007 2009 2011F 2013F Supported with a strong pedigree 2010 - The Corporate Bank of the year 2009 and 2008 the SME bank of the year 22
Segment growth Focus on savings Leading in unit-linked New savings account Rising net sales in WM Market shares (%) Lithuania Latvia Estonia Denmark Sweden 23 17 12 15 25 SEB rank #1 #2 #3 #3 #1 Total net sales per quarter (SEK bn) 13.5 8.7 1.1 Q3-09 Q2-10 Q3-10 0% 50% 100% SEB market share Competitors Institutional Clients Private Banking Notes: Unit-linked market shares as of Q3 2010; Sweden based on premium income unit-linked 12 months to Sept 2010; Denmark unit-linked insurance in competitive markets 23
SEB s anatomy 2010 in summary Outlook Conclusions 24
The relationship bank of the Nordics Our anatomy is our competitive edge Right business mix strategic alignment completed Positioned for growth in areas of strength 25
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