Bank of America Merrill Lynch CEO Conference London, 28 September 2017

Casper von Koskull President and Group CEO of Nordea

Nordea in brief The largest financial services group in the Nordics

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Household market position

Corporate & Institutional market position

Business position - Leading market position in all four Nordic countries - Universal bank with strong position in household, corporate and wealth management - Well diversified business mix between net interest income, net commission income and capital markets income 11 million customers and strong distribution power - Approx. 10 million personal customers - 700 000 corporate customers, incl. Nordic Top 500 - Approx. 600 branch office locations - Enhanced digitalisation of the business for customers Financial strength - EUR 10bn in full year income (2016) - EUR 643bn of assets (Q2 2017) - EUR 31.4bn in equity capital (Q2 2017) - CET1 ratio 19.2% (Q2 2017) AA level credit ratings - Moody’s Aa3 (stable outlook) - S&P AA- (stable outlook) - Fitch AA- (stable outlook) EUR 45bn in market cap - One of the largest Nordic corporations - A top-10 universal bank in Europe

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Integrated universal bank leading in each market and business area

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Well mixed profit generation Business Area contribution in H1 2017

5%

22%

21% 20%

32%

Operating Income

4%

28%

21% 18%

29%

Operating Profit Economic Capital

Group Functions & Other Wealth Management Wholesale Banking

Commercial & Business Banking Personal Banking

9%

31% 23%

27%

10%

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Combining Nordic scale with local presence

Centre of excellences • Compliance • Financial crime prevention • Operations • Robotics • Finance

Decentralised • Customer facing activities • Product development • Credit decisions • Marketing

• Efficient

• Scalable

• Agile

• Personalised

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Strong capital generation and stable returns at low risk 13% CAGR in capital generation and CET1-ratio up 12.5 pp in 11 years

26

2007 2008

20

15

2005

12

2012 2011

35 31

29

2009 2010 2006

18

CAGR 13%1

2016

37

47

2013 2015 2014

39 43

Acc. dividend EURbn Acc. equity EURbn

5.92 18.4 CET1 Ratio %

29 26 34 43 62 64 65 DPS (Euro cents)

1) 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 2) Calculated as Tier 1 capital excl. hybrid loans

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The most stable bank in the Nordics Nordea and peers 2006 – 2016, %

131

7455

362417

Peer 5 Peer 4 Peer 3 Peer 2 Peer 1 Nordea

1,010,90

0,520,400,34

0,20

Peer 5 Peer 4 Peer 3 Peer 2 Peer 1 Nordea

Quarterly net profit volatility

Quarterly CET1 ratio volatility¹

1) Calculated as quarter on quarter volatility in CET1 ratio, adjusted so that the volatility effect of those instances where the CET1 ratio increases between quarters are excluded

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ROE vs. Risk Spread Calculated at CET1 ratio of 18%, Nordea’s RoE and the return over government bonds are at 10-year highs

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101112

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Return (ROE-5Y Gvmt bond yld) ROE, at 18% CET1 ratio

RoE & Return over gvmt bonds %

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Nordea’s P&L has changed over the last 10 years Reliance on NII is decreasing, as ancillary income grows

5,000

6,000

7,000

8,000

9,000

10,000

0

11,000

4,000

3,000

2,000

1,000

Ancillary income: +44% over 10 years

Net interest income: +10% over 10 years

2016

9,930

2014 2013 2012 2011 2015

4,727 (48%)

4,282 (54%)

2010

3,607 (46%)

5,203 (52%)

2009 2008 2007

7,889

Total Income: +26% over 10 years

Baltics Russia Poland Equities Fund distribution

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Q2 2017 Group financial highlights Stable environment and low growth

Income

Costs

Credit quality

Capital

Q2/17 vs. Q2/16* Q2/17 vs. Q1/17*

• Total revenues • Net Interest Income • Fee and commission

income

• +1% • +1%

• +7%

• -1% • Flat

• -1%

• Total costs

• 2017 vs. 2016

• +8%

• + 3 to 5%

• +5%

• Loan loss level

• Credit quality outlook

• 13 (15) bps • 13 (14) bps

• CET 1 ratio • 19.2% (16.8%)

• 2018 vs. 2016 • Unchanged

• < long-term aver. of 16 bps in H2

• Impaired loans • 172 bps (+10 bps) • Unchanged

• 19.2% (18.8%)

*In local currencies and excluding non-recurring items

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We are transforming the bank to meet future customer expectations

DIGITAL ENGINE

CUSTOMER FACING

Trust Agile

Relevant

Well structured Innovative

Anything, Anytime,

Anywhere

Easy

Personalised

End-to-end automated common processes

Scalable

Reliable Cost effective

One operating model for product and service delivery

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Key Milestone in the Core Banking Programme A common, Nordic Core Banking Platform supporting the core functions of banking

Customer satisfaction

Profita-bility

Preferred employer

Will enable Nordea to launch the new deposits

and savings product portfolio

in Finland

Key software release to the

product environment

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Strategic partnerships with FinTech incubators

Active engagement in the wider financial ecosystem Collaborations

that speed up time to market for new, relevant and valuable customer

solutions Great market reception to our Open Banking pilot with hundreds of developers

signing up and activity now underway

Partnered with FinTech Hubs in Stockholm, Copenhagen, Oslo

We take customer service to the next level through artificial

intelligence (AI)

Using AI, we can analyse hundreds of

messages per second

Speeding up response time to customers with AI

Nordea re-domiciliation

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• Overall goal for Nordea has been to domicile where we grow and develop our business further to offer customer friendly solutions

• A thorough review of implications from an operational, regulatory and supervisory standpoint has been undertaken • Decision is to initiate a redomiciliation of the parent company to Finland • Nordea’s pan-Nordic structure gives us special needs • Logical move to be supervised within the banking union given our size and business model • Nordea’s four home markets are all part of the single European market

Banking union

Why is Nordea re-domiciling ?

Being domiciled within the banking union is in the best interest of our customers, shareholders and employees Impact of re-domiciliation • Nordea’s focus is to maintain its AA rating and continue to develop our customer offering • Nordea will still have four home markets – we will remain strongly committed to all of them

• Nordea intends to maintain its capital and dividend policy

• Nordea will continue to be one of the major tax payers in all four countries

• Nordea will focus on delivering value for all our customers

The Board decided to initiate a process to re-domicile to Finland Tentatively by 1 October 2018

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Decision background:

• Decision is the outcome of six months of careful study and analysis weighing in all relevant factors

• Focus has been on where to best grow and develop our business further by offering

customer friendly solutions, contribute to the Nordic economies and develop our people • The domiciliation is an important strategic step to ensure level playing field with our

European competitors.

Finland:

• Is in the Banking Union • Is one of Nordea’s strongest home markets

• Provides a regulatory environment on par with our European competitors.

What happens now

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• The re-domiciliation is intended to be carried out by way of a “downstream cross-border” merger through which Nordea Bank AB (publ) will be merged into a newly established Finnish subsidiary

• The merger is planned to be effected during the second half of 2018 and will be subject to e.g. necessary regulatory

approvals and the shareholders’ approval at a general meeting requiring a 2/3 majority. Tentatively in the annual General Meeting on 15 March 2018

• We will in cooperation with the relevant authorities agree a detailed timeline • The re-domiciliation will tentatively be effective as of 1 October 2018

• The Nordea share will remain listed at the stock exchanges of Stockholm, Helsinki and Copenhagen

Q&A

Bank of America Merrill Lynch CEO Conference�London, 28 September 2017Nordea in brief�The largest financial services group in the NordicsIntegrated universal bank leading in each market and business areaWell mixed profit generation�Business Area contribution in H1 2017Combining Nordic scale with local presenceStrong capital generation and stable returns at low risk�13% CAGR in capital generation and CET1-ratio up 12.5 pp in 11 yearsThe most stable bank in the Nordics�Nordea and peers 2006 – 2016, %ROE vs. Risk Spread�Calculated at CET1 ratio of 18%, Nordea’s RoE and the return over government bonds are at 10-year highsNordea’s P&L has changed over the last 10 years�Reliance on NII is decreasing, as ancillary income growsQ2 2017 Group financial highlights �Stable environment and low growthWe are transforming the bank to meet future customer expectationsKey Milestone in the Core Banking Programme�A common, Nordic Core Banking Platform supporting the core functions of bankingStrategic partnerships with FinTech incubatorsNordea re-domiciliationThe Board decided to initiate a process to re-domicile to Finland�Tentatively by 1 October 2018 What happens now Q&A