1www.danskebank.com

Capital Markets DayCapital Markets Day4 December 20024 December 2002

Danske Markets, CIB & EquitiesDanske Markets, CIB & Equities

Mission Statement

“Danske Bank wants to be adominant Scandinavian

trading bank with a broadEuropean product palette

Customer-driven focusshould support CIB”

Agenda

• Business Concept

• Business Areas

• Profile

Norway HelsinkiStockholmLondonNew York

Danske Markets, CIB & Equities

Henrik Normann

Secretariat

John Rasmussen

Foreign Exchange & Liquidity Market Making

Jens Peter Neergaard

ALCO

Cato Baldvinsson

Fixed-Income &Derivatives Trading

Steen Blaafalk

Securitisation

Geoff Simms

Investment Portfolios, FixedIncome & Foreign Exchange

Michael Nørgaard

Large Corporates

Angus Maclennan *)

Danske Research

Jørgen Birger Christensen

Equities, Fund Rating &Selection

Jeppe Christiansen *)

Syndicated loans

Liz Williams

Debt Capital Markets

Thomas Borg Dideriksen

Corporate Finance

Jens Peter Toft

*) Associate member of the Executive Committee

Areas of Responsibility

Managing theBank’s short-termliquidity

Setting prices offixed-income,currency andequity products forthe Danske BankGroup

Providing fixed-income, currencyand equity productsto wholesalecustomers.

Providing fundingfor wholesalecustomers

Liquidity

Handling theBank’s investmentportfolios of listedand unlistedsecurities

Asset/liabilitymanagement,including liquidityand funding

Pricing Sales Treasury

Providing solutionsto customers fast,flexibly and withconsistently highquality

Research

CorporateFinance, CIB

FX & Money Markets

• Primary dealer in SEK

• Market maker in NOK and DKK

• Market maker in all the majors

• Market maker in CZK and PLN, and activein most emerging market currencies

• 24-hour trading

• Trading centres in Copenhagen,Stockholm, London and New York

• Offices in Oslo, Trondheim and Helsinki

Derivatives - Swaps and Options

• Scandi: Market maker in DKK, NOK andSEK

• Majors: Market maker in EUR, USD, GBP,CHF and JPY

• Market maker in PLN and active in mostemerging market currencies

• Dealing in structured derivatives (2nd and3rd generation) in all currencies

Debt Capital Markets

• Danske Bank is the leading Nordic bank ininternational credit bonds, and in arrangingdomestic credit bonds

• In 2002 we have participated in more than100 international bond issues

• As a joint- and co-lead manager, as well asmanager, Danske Bank is the highestranking Nordic bank in the top-50 leaguetables for 2002

• Our strategy is based on strong researchand distribution capabilities

Note: Bookrunner, joint lead, co-lead, manager and positions.

Equities

• Trading: Effective execution andcompetitive spreads for both institutionalclients and personal customers inDenmark, Norway and Sweden

• Sales: Swift, seamless and when it suit thecustomer

• Research: New concept that focuses oncreating value for customers andoptimising the Bank’s resources

Corporate Finance, CIB

• Focus on costumer needs

• Solutions- and ideas-driven

• Consistent contact

• Speedy response/decision-making

• Ready to use bank’s balance sheet

Research

Specialised unitsMacro:• International and NordicRetail customers:• Household finances, DenmarkQuantitative Research:• Financial models, advanced

interest rate productsFinancial Strategies:• Interest rates, FX and stocksEquities• 200 companies covered

Core processesFixed income:• Modelling• Mortgage bonds• New instruments

Currencies:• Hedging strategies

Equities:• Focus on value drivers and market

conditions• Portfolio allocation strategies

60 employees

1Q 2Q 3Q 4Q

0

100

200

300

400

500

600

2002 2001

Core Earnings before Provisions

DKK m • Fall in core earnings relative tofirst nine months of 2001 in linewith expectations

• Earnings remain sound

• Costs fell by 11% owing tolaunch of implementation ofmeasures to enhance efficiencyand round-the-clock operations

• Third quarter of 2001 saw asignificant fall in internationalinterest rates

Internal vs. Statutory Accounts

01 02

InternalStatutory

• The difference between DanskeMarkets’ internal accountingand the statutory accounts:

• Internal accounting: Allproducts are marked tomarket

• External accounting: Someproducts are not marked tomarket (e.g. deposits)

2001 2002

• Government bonds

• Mortgage bonds

• Corporate bonds

• Certificates

• Futures/Options

• Equities

• Spot

• Deposits

• Forwards

• FX swaps

• FRAs

• Certificates

• Swaps

• Options

• Asset/liabilitymanagement

• Research-driven sales

• Business Advisory

• Structured Products

Listed Commodities Advanced

Products

Quality Chain

Recommendations Settlement

• Speed

• Size / Risk

• Few mistakes

• Within 24 hours

• Accessible

• Documentation

Price

• Research

• Local flavour

• Knowledge ofcustomer

• Product palette

BU

SIN

ESS

MIX

Pro

duct

s

0-30% Flow Positions Risk ManagementDealersTrend

Earnings

25-50% Flow Trading Customer FlowVolatilityDealersRisk Management

50-60% Spread Trading Customer FlowMarket ShareVolatilityRating/Brand

15% Margin Business Customer RelationshipCompetitionVolatilityVolumeBrand Name

Skills set

Value drivers

Business Mix -Fixed income, Money Markets and FX

Critical MassEa

rnin

gs

Market share

1 2 3

• Serving customers

• Scandinavian markets

• Risk management

• Mortgage finance

• Serving customers

• Scandinavian markets

• Risk management

• Mortgage finance

• Volume

• Optimising flows fromcustomers

• Volume

• Optimising flows fromcustomers

Sources of value creation:

What we do best:

Value Creation

Risk

Could It Happen Here ?

Salomon Brothers

Bankers TrustBankers Trust

LTCMLTCM Baring’s

Nick Leeson

Risk Management

• Sharpe Ratio

• VaR

• Nominal Limits

• Basis Point Value

• Culture

FX Income from Customer Trading

Denmark61%

Nordic19%

Others20%

• Increased focus on the Scandies

• Full effect in 2002 of the closureof the Singapore and Hong Kongbranches

20022001

Denmark47%

Nordic36%

Others17%

DKK64%

NOK, SEK36%

US, EUR, JPY, GBP

0%

DKK38%

NOK, SEK11%

US, EUR, JPY, GBP

51%

Fixed Income and Derivatives by Currency

20022001

Bon

dsD

eriv

ativ

es

DKK64%

NOK, SEK13%

US, EUR, JPY, GBP

23%

DKK66%

NOK, SEK34%

US, EUR, JPY, GBP

0%

• Greater customer demand forhedging interest rate risk viaswaps

• Income from US- and EUR-dominated derivatives is lower in2002 compared to 2001. Oneexplanation is the significant fallin interest rates

DKK6%

NOK, SEK41%

US, EUR, JPY, GBP

53%

• More focus on the Scandies

• A dominant player in DKK

Spot & Money Market Deals by CurrencyS

pot

Mon

eyM

arke

t

DKK12%

NOK, SEK35%

US, EUR, JPY, GBP

53%

DKK32%

NOK, SEK10%

US, EUR, JPY, GBP

58%

DKK40%

NOK, SEK12%

US, EUR, JPY, GBP

48%

20022001