Sampo plc Annual General Meeting 2018 Kari Stadigh Group CEO and President
Solid result within insurance EURm 3,000 Sampo Group profit before taxes by segment 2,600 2,482 2,200 1,800 1,668 1,759 1,888 1,871 6 706 142 1,400 635 680 751 773 616 1,000 600 200-200 153 163 181 210 236 929 931 960 883 818-45 -12-1 -40 2013 2014 2015 2016 2017 If Mandatum Life Nordea Holding excl. Nordea Topdanmark Non-recurring item
Earnings per share EPS and Comprehensive result EPS Reported EPS by quarter EUR 4.50 4.00 3.50 3.00 2.50 Includes 1.26 EUR from valuing of Topdanmark to fair value 2.95 3.14 3.96 1.26 3.79 1.26 EUR 2.50 2.00 1.50 Includes 1.26 EUR from valuing of Topdanmark to fair value 2.01 1.26 2.00 1.50 1.00 0.50 2.70 2.53 1.00 0.50 0.65 0.75 0.71 0.84 0.68 0.67 0.74 0.61 0.00 2016 2017 EPS (reported) EPS (comp. result) 0.00 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17
Net asset value per share continued to increase EUR 28.00 24.00 22.15 22.63 23.79 24.86 25.37 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
Sampo Group investments exceeded EUR 22 billion on 31 December 2017 Total EUR 22.2 billion By sector By company Money market 12% Public sector 5% Covered Bonds 23% Other fixed income 39% Equities 15% Private equity 1% Real estate 2% Other 3% If 52% Topdanmark (P&C) 13% Mandatum Life 28% Sampo plc 7% Investments of If, Topdanmark (excluding life insurance), Mandatum Life and Sampo plc
European insurance groups Average CR (%) 2008-2017 against volatility 12.0 Standard deviation Swiss Re 10.0 2) Direct Line* 8.0 6.0 Protector Gjensidige SCOR Topdanmark Tryg Admiral Ergo 1) 4.0 OP AVERAGE Sampo Hannover Re 2) Ageas Generali RSA Zürich Ins. 2.0 Aviva Allianz Mapfre AXA 0.0 86.0 88.0 90.0 92.0 94.0 96.0 98.0 100.0 102.0 Combined ratio, % Source: Company reports, figures at group level, 1) Germany, 2) P&C reinsurance; * 2010-2017
Nordic P&C insurance market shares If 18% Other 25% Topdanmark 5% LähiTapiola 4% Tryg 9% OP 6% Folksam 6% LF 10% Gjensidige 8% RSA Scand. 9% Data 2016
Best-ever combined ratio 100.0% Combined ratio excluding the one-offs is 86.1%. 90.0% Combined ratio excluding the one-offs is 86.5%. 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 % 85.3 % 70.0%
Topdanmark Topdanmark is the second largest non-life insurance company (market share 17%) and the sixth largest life insurance company (market share 9%) in Denmark Topdanmark has approximately 600,000 non-life insurance customers and 130,000 life insurance customers Sampo holds 48.9 per cent of votes in Topdanmark at the end of 2017 (subsidiary as of 30 September 2017) Profit before taxes in the Topdanmark segment was EUR 142 * (59) million excluding a non-recurring item of EUR 706 million Combined ratio was 82.0 (85.1) per cent in 2017 Peter Hermann was appointed to new CEO of Topdanmark as of 5 February 2018 Torbjörn Magnusson (Chairman), Petri Niemisvirta and Ricard Wennerklint represent Sampo Group in Topdanmark's Board Market value of Topdanmark EUR 1 512 million and the original acquisition value approximately EUR 600 million *) consolidation since Q4/2017
Topdanmark Combined ratio development % 96.0 94.0 92.0 90.0 88.0 86.0 84.0 82.0 80.0 78.0 76.0 93.3 91.1 90.3 91.5 88.0 86.0 86.8 85.1 82.0 2009 2010 2011 2012 2013 2014 2015 2016 2017 Consolidation as a subsidiary Q4/2017
Nordea s customer relationships and market position 2017 Source: Nordea
Nordea s financial highlights Q4/17 vs. Q4/16* 2017 vs. 2016* Income Total revenues Net Interest Income Fee and Commission Income Net Fair Value -13% -6% -2% -54% -3% -1% +5% -22% Costs Total expenses -7% +4.2% Credit quality Loan loss level Impaired loans 9 (16) bps 12 (15) bps 186 (163) bps Capital & Dividend CET1 ratio Management buffer Dividend 19.5 (18.4) % 189 (101) bps EUR 0.68 Nordea issued a EUR 750m Additional Tier 1 instrument at 3.5%, the lowest coupon ever *In local currencies and excluding items affecting comparability and the transformation costs. Source: Nordea
Simplified legal structure and re-domilication One simplified legal structure First step taken on January 1 st 2017 to simplify the legal structure towards operating as One Nordea Strengthened governance and simplifying common processes Enables Nordea to fully benefit from investments in Core Banking Systems The change has created One Nordea and contributes to making Nordea more competitive to the benefit of the customers Re-domilication to the banking union Logical move to be supervised within the banking union given the size, geographic reach and business model Important strategic step in positioning Nordea at par with its European competitors Benefit from a stable and predictable regulatory environment offered by the banking union Nordea Bank AB s Board of Directors decided to initiate a re-domiciliation of the parent company of the Nordea Group from Sweden to Finland and the European Banking Union on 6 September 2017. At the Annual General Meeting that took place on 15 March 2018, the merger plan was approved by Nordea s shareholders. The actual re-domiciliation is planned to be effective on 1 October 2018 but remains subject to the necessary regulatory approvals. Source: Nordea
Nordea has a strong capital position EURm 30,000 28,000 26,000 24,000 22,000 20,000 18,000 16,000 14,000 12,000 10,000 Tier 1 capital; left scale Dividends, total; right scale 2,747 2,501 2,584 2,625 1,734 1,297 1,168 1,370 1,006 1,048 519 14,230 15,760 19,577 21,049 22,641 23,953 24,444 25,588 26,516 27,555 28,008 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 EURm 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0
Unit-linked reserves at a new record EURm 14,000 With-profit and unit-linked technical reserves of Mandatum Life 31 December 2017 12,000 10,000 8,000 6,000 4,000 1,637 2,359 1,196 1,142 1,065 1,228 * 3,124 3,054 3,833 4,617 5,312 5,858 6,440 7,066 * 2,000 0 4,487 4,431 4,410 4,249 4,071 3,927 3,837 3,818 3,679 3,507 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Segregated assets Unit-linked With-profit *Includes the portfolio of approximately EUR 3,100 million to be transferred to Danske Bank
Risk and expense results highest in Mandatum Life s history EURm 40 35 30 33 31 33 35 25 24 23 25 24 20 19 15 14 10 5 0 2013 2014 2015 2016 2017 Expense result Risk result
Sampo plc
Sampo plc s direct investments worth EUR 750 million Swedish consumer credit online bank Sampo s investment amounted to approximately EUR 240 million Co-investor Nordic Capital (Sampo s share 36.25%) Danish fintech company spezialising in online trading Sampo s investment amounted to approximately EUR 265 million Sampo s share 19.9% (Geely 51.5%, Kim Fournais 25.7%) Danish pioneer in digital payments and leading payment services provider Sampo s investment amounted to approximately EUR 230 million Co-investor with Hellman & Friedman
Internal dividends received by Sampo plc EURm 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 1,555 1,452 1,220 551 1,067 557 883 533 125 744 756 768 370 293 293 * 275 107 568 511 204 250 224 100 100 80 100 130 100 585 200 488 540 406 544 490 597 587 586 620 181 150 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018** If If, extra dividend Mandatum Life Nordea Topdanmark * If made a sales gain in connection with the mandatory offer on Topdanmark shares and paid an extra SEK 2.8 billion (EUR 293 million) dividend to Sampo plc on 22 September 2016. ** If normally pays its dividend towards the end of the calendar year.
Nine consecutive years of growth in Sampo dividends EUR 3.00 2.50 2.15 1.95 2.00 1.65 1.50 1.35 1.15 1.20 1.00 1.00 0.80 0.50 2.30 2.60 0.00 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017* * Board s proposal to the AGM on 19 April 2018
Sampo plc dividend yield, % 6.0% 5.0% 4.6% 5.0% 4.6% 5.4% 5.7% 4.0% 3.0% 2.0% 1.0% 0.0% 2013 2014 2015 2016 2017 Annual dividend yield, calculated using the year-end share price
Sampo s 10Y TSR vs. STOXX Europe 600 Banks and Insurance indices Market cap EUR 25 billion 13 April 2018 Source: Thomson Reuters Datastream
Sampo plc Annual General Meeting 2018 Kari Stadigh Group CEO and President