Goldman Sachs European Financials Conference

Defining a winning strategy: specialisation vs diversification

Fredrik Rystedt Group CFO 5 June 2009, Frankfurt

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Nordea – the leading Nordic bank…

Corp. lending % % Share of Group income (size of bubbles)

Finland15%

Norway12%

Denmark21%

Sweden17%

Global Other

Group¹29%

New European Marke

ts6%

1 ) Shipping, Oil services & International, International Private Banking and Group Functions and Financial Institutions

A unique customer baseApprox. 7.7 million HH customers in programmes and 0.7 million active corporate customers

Strong distribution powerApprox. 1 400 branches

Financial strengthEUR 16.1bn in tier 1 capital Tier 1 ratio 10.9% before transition rules

Economies of scaleCost base/RWA ratio 2.3%

DiversificationNo single market accounts for more than one quarter of Nordea’s incomeHH. Lending %

3

… on track from Good to Great…

Profit orientation – cost, risk and capital

Ambitious vision and targets

Clear growth strategy

Strong customer-oriented values and culture

Strong income growth - costs under control

Strong capital and funding position

In line with targets, risk-adjusted profit ahead

Values have become part of Nordea’s DNA

Increasing scores on CSI¹ as well as ESI²

Strategic initiatives delivers according to plans

More customers - more income per customer

¹ Customer Satisfaction Index² Employee Satisfaction Index

4

…by applying the “middle of the road” we aim to maintain the high business momentum

Middle of the road

• Focus on core customers – selected new business opportunities

• Proactive risk management manage cost growth down and significant adjustment of growth investments

• Creating a Core Tier 1 ratio of 10% - rights issue and dividend reduction

Over-reacting to the situation

Not reacting to the downturn

Not responding prudently to the economic crisis

Lost momentum - withdrawing

from customers

• Closing down growth initiatives

• Drastic cost-cutting

• No dividend pay-out asset releases

• Unchanged lending growth

• Unchanged growth in costs and investments

• Raise of hybrid Tier-1 capital only

Balancing opportunities and challenges

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The Nordea journey – creating a Nordic championCross boarder

Single country

Pro

duct

div

ersi

ficat

ion

Pro

duct

spe

cial

izat

ion

The rationaleCreate the leading financial service group in the Nordics and Baltic sea region

Ensure the best improvement of shareholder value in the peer group

Create high customer satisfaction for prioritised customer groups

Improve the customer offering

Expand with the customer base

AdvantagesDiversification

Cross-selling

Customer knowledge and technical know how from mergers

Economies of scope and scale in production, procurement, service and support

Capital flexibility

6

Geographic diversification through Nordic consolidation

Orgres Bank

Estonia

International Moscow Bank

Latvia

Bank Komunalny

Lithuania

NBH

PostgirotBank

LG Petro

Kredyt Bank

Sampo Polska

Tryg

Vesta

BWP

1995 1998 2001 2008

Roskilde

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Well spread income streams from selected geographical markets

Geographical split of total income in customer areas Q1 2009, EUR 2148m

Global*24%

NEM6%

SE18% NO

13%

FI16%

DK23%

NO14%

FI19%

DK25%

Global*15%

SE26%

NEM5%

Mortgage32%

Consumer9%

Corporate 59%

Share of total lending, EUR 274bn

Strong franchise in four largely equally sized markets

Different business cycles in the Nordic countries

Less than 6% income proportion from New European Markets

Well-diversified lending mix measured by geography and customer segments

Low risk mortgage portfolio accounts for approximately 1/3 of total lending

*Shipping, Oil services & International, International Private Banking and Financial Institutions

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Mortgage32%

Consumer9%

Corporate 59%

Well diversified industry split in the corporate portfolio

No sector larger than 22% of the portfolio

Small changes in industry split over time – real estate exposure decreasing

LOANS AND RECEIVABLES TO THE PUBLIC - CORPORATES BY INDUSTRY

EURbn Q1 Share of End Share of End Share of2009 portfolio 2008 portfolio 2007 portfolio

Real estate management and investment 35,529 22% 35,500 23% 36,766 28%Other financial institutions 19,830 13% 16,275 11% 10,502 8%Industrial commercial services etc 14,487 9% 15,482 10% 15,403 12%Other, public and organisations 13,533 9% 10,462 7% 7,855 6%Consumer staples (food, agriculture etc) 12,658 8% 12,943 9% 11,267 8%Shipping and offshore 11,598 7% 11,296 7% 7,581 6%Retail trade 10,968 7% 11,020 7% 10,190 8%Other materials (chemical, building materials 5,698 4% 5,377 4% 3,568 3%Transportation 4,618 3% 4,017 3% 3,845 3%Construction and engineering 3,983 3% 3,671 2% 3,243 2%Utilities (distribution and production) 3,867 2% 4,022 3% 3,310 2%Industrial capital goods 3,308 2% 3,264 2% 3,189 2%Consumer durables (cars, appliances etc) 3,286 2% 2,752 2% 2,807 2%Energy (oil, gas etc) 2,872 2% 2,815 2% 1,448 1%Media and leisure 2,826 2% 3,171 2% 3,104 2%Paper and forest materials 2,239 1% 2,287 2% 1,928 1%Metals and mining materials 1,744 1% 1,750 1% 792 1%IT software, hardware and services 1,617 1% 1,489 1% 1,309 1%Telecommunication operators 1,553 1% 1,686 1% 1,062 1%Health care and pharmaceuticals 1,498 1% 1,606 1% 1,772 1%Telecommunication equipment 522 0% 623 0% 641 0%Banks 126 0% 206 0% 1,737 1%

TOTAL LENDING TO CORPORATES 158,360 151,711 133,321

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Strong asset quality - approximately half of the credit portfolio is low risk – a few challenging areas

Low risk areas, 48%

Medium risk areas,

33%

Special attention

areas, 19%

Metals/Mining

Telecom/IT

Tankers/Offshore

Industrials

Pulp and paper

Transportation

Media/Leisure

Dry bulk/Container

Commercial real estate

Russia

Baltics

PE companies

Telecom operators

Residential real estate

Public sector

Fin Institutions

Mortgage lending

Health care

Total lending to public Q1 2009, EUR 274bn

Construction

Companies owned by Private Equity funds – 3% of total lending

Well diversified between industries

Insignificant exposure to junior debt

Shipping and offshore – 4% of total lending

Largely collateralised and well diversified portfolio – less than 16% towards high risk sectors (dry bulk and container)

Commercial real estate – 7% of total lending

Largely secured with limited exposure towards the Danish market

Baltic exposure – 3% of total lendingPrudent business model

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Broad product range – income split varies over the business cycle

1537

563 598

1010

348 418242

153

1333

626

386

690

Corporatelending

Householdmortgagelending

Consumerlending

Corporatedeposits

Householddeposits

Financecompanyproducts

Payments Cards Guarnteesand

documentarypayments

Capitalmarket

products

SavingsProducts &

AssetManagement

Life &Pension

Income from key product groups FY 2008, EURm

Differentiating through a complete offering, provided seamlessly across channels

Product development in the current market environment favours standardised products with low capital consumption rather than complex and non-transparent products

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Nordea’s relationship driven strategy

Well diversified universal bank

The customer base is the main asset

Customer segment strategy to leverage the full value of the customer base

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Segment strategy enables Nordea to fully exploit the opportunities of its customer base

A clear segment strategy ensure that resources are prioritised to customers providing the best opportunities

Value propositions has been developed for both household and corporate segments including contact and service policies, pricing and product solutions

Corporate strategy is relationship driven and aims at building house-bank relations

Emphasis on a holistic view on customers business

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Tailored offerings to different segments

Gold

83

2,474

1,255

3,785

Inactive

Value proposition

The best Nordea has to offer

Named advisor – priority in access – guaranteed best pricePersonal service when needed – favorable price

Simple service – fair price

Customers, 000’s

Four segments based upon customer share of wallet

Clear emphasis on relationship banking, being a lifetime financial partner, and identifying potential Gold customers in the lower segments

Large

3

25

70

590

Customers, 000’s

Small

Medium

CMBPrivate banking

Bronze

Silver

Value proposition

Strategic partnership – one point of entry – tailored, individual solutionsPartnership – one point of entry – individual solutionsBusiness relationship – individual solutions – standard pro

Personal relationship – simple service - efficient

Household segments Corporate segments

Challenging market conditions proves the Nordea house-bank concept

Customer satisfaction stable – increased loyalty

Pro-activity and staying close to customers increasingly important

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2004

2005

2006

2007

2008

Successful outcome of the Nordea journey20

02

2003

2004

2005

2006

2007

2008

Cost management Support to customers

C/I down from 64 to 53 Total lending up 65% since 2004

2005

2006

2007

2008

Risk-adjusted profit

Up 38% since 2005

High business momentum

2004

2005

2006

2007

2008

Income up 34% since 2004

Strong track record of improved cost efficiency

C/I down from 64 despite strong volume growth

By applying the “middle of the road”we trust we can maintain the high business momentum

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Concluding remarks

Strong start of the year – on track from Good to Great

Organic growth strategy adjusted – Middle of the road

Geographic diversification through Nordic consolidation

Well spread income streams from geographical markets selected

Broad product range – income split varies over the business cycle

A relationship driven strategy – customers the main asset

Segmentation strategy enables Nordea to fully exploit the opportunities of its customer base

Goldman Sachs European Financials Conference

Defining a winning strategy: specialisation vs diversification

Fredrik Rystedt Group CFO 5 June 2009, Frankfurt