Shipping, Offshore & Oil Services

London, February 7th, 2014

Hans C. Kjelsrud

Disclaimer

This presentation contains forward-looking statements that reflect management’s current

views with respect to certain future events and potential financial performance. Although

Nordea believes that the expectations reflected in such forward-looking statements are

reasonable, no assurance can be given that such expectations will prove to have been

correct. Accordingly, results could differ materially from those set out in the forward-looking

statements as a result of various factors.

Important factors that may cause such a difference for Nordea include, but are not limited to:

(i) the macroeconomic development, (ii) change in the competitive climate, (iii) change in the

regulatory environment and other government actions and (iv) change in interest rate and

foreign exchange rate levels.

This presentation does not imply that Nordea has undertaken to revise these forward-looking

statements, beyond what is required by applicable law or applicable stock exchange

regulations if and when circumstances arise that will lead to changes compared to the date

when these statements were provided.

2 •

Key messages

Nordea is a globally leading shipping and offshore bank with strong

long term relationships with major shipping and offshore companies

Operating profit after loan losses of EURm 195 in 2013 compared to

EURm 74 in 2012

Loan portfolio of EURb 11.4 representing 3.3% of Nordea’s total loans,

with shipping standalone representing 2.0%

Gradual recovery in major shipping segments expected from 2014,

based on higher global GDP growth and reduced deliveries of new

vessels

Loan losses in process of normalising

3 •

• Our business

• Financial results

• Shipping markets

• Offshore markets

• Cruise and ferry markets

• Risk management

Nordea Bank Russia Igor Bulantsev

Ari Kaperi

Group Risk

Management

Group CRO

Casper von Koskull

Wholesale Banking

Peter Nyegaard (COO)

Capital Markets

Services (CMS) Henrik B. Jespersen

Lennart Jacobsen

Retail Banking

Group Credit Control Klara Lise Aasen

International Units Anne-Margrethe Firing

Torsten H. Jørgensen

Group Corporate Centre

Group CFO

Banking Finland Topi Manner

Banking Baltics Inga Skisaker

Banking Sweden Hans Jacobson

Banking Norway John Sætre

Banking Denmark Anders Jensen

CIB Denmark Jørgen Høholt

CIB Norway Cato A. Holmsen

Nordea Finance Jukka Salonen

Group Legal Lena Eriksson

Group Credit Risk Jorma Timonen

Group Operational

Risk and

Compliance Anders M. Jørgensen

Group Market and

Counterparty Credit

Risk Niels N. Kjær

CIB Finland Olli-Petteri Lehtinen

Transaction

Products Mikael Bjertrup

Life & Pensions Snorre Storset

Asset Management Allan Polack

Savings & Wealth

Offerings Mads Kaagaard

Corporate Social

Responsibility Liisa Jauri

Gunn Wærsted

Wealth Management

Group Internal Audit

Eva-Lotta Rosenqvist

Shipping, Offshore &

Oil Services Hans Chr. Kjelsrud

CIB Sweden Johan Näs

Finance & Strategy Peter Lybecker

Concepts &

Operating Model Ellen Pløger

Segment CIB Claus Asbjørn Stehr

IT – Capital Markets Peter Lunding

IT – Wholesale

Banking Mika V. Häkkinen

Group Identity &

Communications

Claus Christensen

(acting)

Group Human

Resources

Henrik Priergaard

Markets - IB Svante Andreen/

Jan Rasmussen

Markets - FICC Mads G. Jakobsen

International

Private Banking Jhon Mortensen

Private Banking

Denmark Hans Henrik Klestrup

Private Banking

Finland Jukka Perttula

Private Banking

Norway Torsten Østensen

Private Banking

Sweden Anders Scherlund

Markets - Equities Gorm Praefke

Martin Persson

Strategy, Support

& Control Kerstin Winlöf

Operations Ossi Leikola

IT Christian Bornfeld

IT

Group Functions Tuija Pirttilä

Group Processes Erik Gjötterberg

Group Treasury Niklas Ekvall

Group Finance

& Reporting Frank Søllested

Group Strategy

& Business Control Johan Ekwall

Investor Relations Rodney Alfvén

Group Capital Andreas Green

(acting)

Group Workplace

Management Ove Hygum

Group IT Poul Raaholt

Banking Poland* Ossi Leikola

* Divested

Christian Clausen President and Group

CEO

5 •

February 2014

Group organisation

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Primary Colours Extra Colours

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Chart Colours 166

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1 154

1 890

2008 2013

The leading Nordic Wholesale Bank for corporate and

institutional customers

Key 2013 Wholesale Banking facts

• #1 or #2 position in each of the Nordic countries

• Total income EUR 2,606m

• Operating profit EUR 1,455m

• Cost/income ratio 34%

• RaRoCaR 15%1

• Lending volume EUR 89bn

• Approximately 6,000 employees

Corporate income, EURm

1 010

1 350

2008 2013

67% 70% Cross-sell

ratio

CAGR

6%

Markets income, EURm

CAGR

10%

Operating income split

EUR 2.6bn

1: RaRoCar restated due to new allocation principles of Economic Capital, as implemented from

Q1 2013

Net interest income

43%

Fees & comm. 22%

Items at fair

value 35%

SOO 14%

WB 86%

Our business

• A globally leading industry bank

• A strong international brand name and robust historical returns

• Inherently cyclical and volatile markets

• Well diversified loan portfolio across segments, geography and clients

• Long standing relationships with the worlds leading shipping, offshore

and cruise companies

• Consistently ranked as a global leader in loan syndications

• Presence in all Nordic and key international markets

7 •

Our strategy

• Our strategy is global

• Core markets are Europe, North America and select countries in Asia

• Strong focus on risk management, capital efficiency, and profitability

• Broad relationships with large, transparent companies that own and

operate modern assets

• Market leadership built on strong industry and credit skills

• Leverage our relationship platform to grow products sales

• Our loans should generally be secured by 1st priority mortgages on

modern assets

8 •

Crude Tankers10 %

Product Tankers8 %

Chemical Tankers

7 %

Dry Cargo10 %

Gas - LPG3 %

Gas - LNG8 %

RoRo Vessels2 %

Container Ships1 %

Car Carriers7 %

Other Shipping3 %

Drilling Rigs11 %

Offshore Support Vessels

7 %

Floating Production

2 %

Integrated Oil Services

3 %

Cruise5 %

Ferries3 %

Export Credit Guaranteed

3 %

Miscellaneous (Property,

shares, cash)6 %

Source: Nordea 9 •

Diversified and balanced portfolio

Loan portfolio breakdown at 31/12/13 Lending to the public EURbn %

Total lending Nordea 342.5 100

Shipping 6.7 2.0

Offshore 2.3 0.7

Cruise/Ferries/Other 2.3 0.7

Shipping, Offshore and Oil Services Exposure EURbn

SOO Lending 11.4

SOO Undrawn commitments 1.9

SOO Derivatives 0.6

SOO Guarantees and letters of credit 0.8

Total exposure 14.6

Total: EUR 11.4bn

Competitive landscape

• Ship finance market dominated by European banks

• Number of competitors and lending capacity significantly reduced since

start of financial crisis

• New transactions executed on conservative structures

• Improved pricing environment

• New transactions generally priced in the range of 225 - 350 bps

• Recently seen high activity in financing from the public and private

capital markets, and increased investment from private equity

• Export credit agencies continue to be a meaningful provider of finance

for newbuilds

10 •

Maritime finance overview

11 •

Syndicated Loan Volume Maritime Industry USD bn Top 10 Bookrunners Shipping Loans in 2013

Source: Dealogic.

Syndicated Loan volume includes shipping & offshore industry

Rank Bookrunner Value $M No.

1 Nordea 4,144 29

2 DNB 3,176 24

3 Citi 2,834 13

4 Mitsubishi UFJ 2,742 7

5 Bank of America Merill Lynch 1,668 10

6 Wells Fargo 1,470 7

7 ING 1,339 10

8 Mizuho 1,262 10

9 JP Morgan 1,234 12

10 KfW 1,181 8 0

20

40

60

80

100

120

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

• Our business

• Financial results

• Shipping markets

• Offshore markets

• Cruise and ferry markets

• Risk management

Financial results

13 •

EURm 2009 2010 2011 2012 2013 2013 / 2012

Net interest income 285 299 324 290 267 -8 %

Net fee and commission income 48 54 81 64 55 -14 %

Net result from items at fair value 36 32 29 27 32 19 %

Total income incl. allocations 370 385 433 381 354 -7 %

Staff costs -20 -20 -25 -25 -24 -4 %

Other exp. excl. depreciations -29 -30 -40 -43 -40 -7 %

Total expenses incl. allocations -49 -50 -65 -67 -64 -4 %

Profit before loan losses 321 336 368 314 290 -8 %

Net loan losses -96 -45 -135 -240 -95 -60 %

Operating profit 225 291 233 74 195 164 %

Cost/income ratio, % 13 13 15 18 18 0 %

RAROCAR, % - - - 16 16 0 %

Risk-weighted assets (RWA) - - - 10 234 9 065 -11 %

Number of employees (FTEs) 98 102 96 87 87 0 %

Volumes, EURbn:

Total lending 12,9 13,7 13,9 13,0 11,4 -13 %

Total deposits 4,7 4,9 4,7 4,8 4,3 -10 %

Source: Nordea

Solid increase in loan margins

14 •

50

100

150

200

250

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Loan margin, bps

Source: Nordea

Loan losses in declining trend

15 •

-40

0

40

80

120

160

200

240

280

-40

0

40

80

120

160

200

240

280

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Bp

s

EU

Rm

Loan loss, individual Loan loss, collective Net loss, basis points

2005 – 2008:

Average loan

margins

~ 110 bps

2011 – 2013:

Average loan

margins

~ 210 bps

Source: Nordea

• Our business

• Financial results

• Shipping markets

• Offshore markets

• Cruise and ferry markets

• Risk management

8,6 %

9,6 %

8,6 %

5,8 %

4,0 % 4,1 %

2010 2011 2012 2013 2014E 2015E

Supply Demand

Shipping markets gradually returning to balance

17 •

Source: IMF

World GDP. Constant prices.

World export of goods. Volume.

Source: RS Platou

World production and trade 2010-2015 % change p.a World merchant fleet growth 2010-2015 % change p.a

5,2 %

3,9 %

3,1 % 3,0 % 3,7 % 3,9 %

14,1 %

6,2 %

2,9 % 2,7 %

5,1 % 5,4 %

2010 2011 2012 2013 2014E 2015E

World GDP World trade

Significant decline in orderbook

18 •

• Orderbooks peaked in 2008

• Reduced contracting of new

vessels since then

• Declining fleet growth in major

segments

• Limited new orders is key to

restore market balances

Source: Clarkson

Orderbook % of existing fleet

0

0,1

0,2

0,3

0,4

0,5

0,6

0,7

0,8

Tanker Bulker Containership

00 10 01 02 03 05 06 07 08 14 09 11 12 13 04 96 97 98 99

Vessel values rebounding

19 •

Secondhand vessel values 5y old USDm

Source: Clarkson

0

20

40

60

80

100

120

140

160

180

VLCC Capesize Dry Bulk Panamax Containership

00 09 01 02 03 05 06 07 08 14 10 11 12 13 04

• Improvement in tanker and bulker

secondhand values last year

• Values closer to historical

averages

• Mid size containership values still

under pressure

Crude tanker – moderate overcapacity near term

20 •

• Volatility returned in 2H13 with

rate spike in 4Q

• Moderate overcapacity in near

term

• Gradual improvement from 2014

from rebound in oil demand and

lower fleet growth

Source: Clarkson

Orderbook 12% -

20

40

60

80

100

120

140

160

180

0

500

1 000

1 500

2 000

2 500

3 000

3 500

Jan-01

Jan-02

Jan-03

Jan-04

Jan-05

Jan-06

Jan-07

Jan-08

Jan-09

Jan-10

Jan-11

Jan-12

Jan-13

Jan-14

Value MUSD

Freight Index

Freight Index - BDTI Value - VLCC 10Y Value - VLCC NB

Crude tankers freight rates and values (2001 – 2014)

Product tanker – favourable trade dynamics, high ordering

21 •

• Increased demand for oil products

• Growing distance between refinery

location and consuming regions

• Relatively high orderbook should

be offset by strong demand growth

and increased transportation

distances

Source: Clarkson

0

10

20

30

40

50

60

0

200

400

600

800

1 000

1 200

1 400

1 600

1 800

2 000

Jan-01

Jan-02

Jan-03

Jan-04

Jan-05

Jan-06

Jan-07

Jan-08

Jan-09

Jan-10

Jan-11

Jan-12

Jan-13

Jan-14

Value MUSD

Freight Index

Product tanker freight rates and values. 2001 - 2013

Freight Index - BCTI Value - MR 45k. 10Y Value - MR 47k. NB

Orderbook 19%

Product tanker freight rates and values (2001 – 2014)

Dry bulk – improved from H213. Still China-dominated

22 •

• Rebound in freight rates in 2H13

• Demand growth expected to

exceed supply growth in 2014

and 2015

• Continued strong Chinese import

of commodities key to a healthy

dry cargo market

Source: Clarkson

-

20

40

60

80

100

120

140

0

2 000

4 000

6 000

8 000

10 000

12 000

Jan-01

Jan-02

Jan-03

Jan-04

Jan-05

Jan-06

Jan-07

Jan-08

Jan-09

Jan-10

Jan-11

Jan-12

Jan-13

Jan-14

Value MUSD

Freight Index

Dry bulk carrier freight rates and values. 2001 - 2013

Freight Index - BDI Value - Capesize 10Y Value - Capesize. NB

Dry bulk freight rates and values (2001 – 2014)

Orderbook 20%

23 •

• Very limited exposure for Nordea

• Substantial overcapacity near term

in many sub-segments

• Modest consumer demand in

western economies, particularly

Europe, main reason

Containership – overcapacity lingers

Source: Clarkson

-

20

40

60

80

100

120

140

160

0

50

100

150

200

250

Jan-01

Jan-02

Jan-03

Jan-04

Jan-05

Jan-06

Jan-07

Jan-08

Jan-09

Jan-10

Jan-11

Jan-12

Jan-13

Jan-14

Value MUSD

Freight Index

Freight Index Timecharter - Container Shanghai Containerized Freight Index

Value - 8.5-9.1k teu. 5Y Value - 8.5-9.1k teu. NB

Orderbook 22%

Containership freight rates and values (2001 – 2014)

• Modest orderbook and improved demand outlook

• Gradual improvement in freight rates expected in 2014 and 2015

24 •

• Strong long term prospects

• Short term softness as new vessels deliver ahead of supply expansion

• Increasing supply of LPG requiring transport

• Emergence of the United States as a major LPG exporter

• Industrialised segment with limited fleet growth

• Stable outlook near term and performance will depend on development in cargo

mix

Chemical tankers

Liquified Natural Gas - LNG

Liquified Petroleum Gases - LPG

Car carriers

Other shipping markets

• About our division

• Financial results

• Shipping markets

• Offshore markets

• Cruise and ferry markets

• Risk management

E&P spending growth moderating

26 •

• E&P spending growth to

moderate at 3%-5% p.a. next two

years

• Oil companies with limited free

cash flow expected to prioritize

dividend

• Proportionally higher spending

growth expected offshore (5% -

7% p.a)

Source: Rystad Energy (E&P) and EIA (Oil price)

30%

17%

23%

-11%

13% 14%

15%

5% 3,4 %

5,1 %

0

20

40

60

80

100

120

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

2006 2007 2008 2009 2010 2011 2012 2013 2014E 2015E

USD/b E&P

E&P Spending Growth Oil Price

E&P spending and oil price. 2006-2015E. % change p.a. and USD/b

27 •

• Rig utilization remain strong for ultra deepwater

• Weaker markets expected for deepwater and midwater

• Oil companies show preference for modern units

• Rig rates have recently improved

• Middle East and Gulf of Mexico with incremental demand replacing standard

rigs with modern equipment

• Longer term uncertainty due to high newbuilding activity

Drillships and Semi Submersibles

Jack-up rigs

• High global rig utilization but shorter contracts and lower rates during 2014.

• Most drilling contractors have strong contract backlogs in the near term

Offshore drilling sector

Offshore drilling sector - dayrates

28 •

• Recent levels for UDWs at USD

500-525K down from USD 550-

600K

• Utilization remain strong for the

high end segment

• Deepwater and midwater rig

utilization expected weaker as

rigs “market down”

• Some idle rig capacity seen this

year in particular in SE-Asia

Source: IHS Petrodata

Ultra deepwater and deepwater rig rates. USD/d

Midwater and Jack-up rig rates. USD/d

0

100

200

300

400

500

600

700

Ultra-deepwater Deepwater

0

50

100

150

200

250

300

350

400

450

Jack-up >300ft Midwater

29 •

• Demand growth driven by deepwater fleet growth

• PSV segment should see improved earnings as rig fleet grows

• Positive outlook for high end segment where newbuild activity is low

• High activity supported by significant investment in subsea construction

segment as development of large oil and gas fields commences.

Platform supply vessel (PSV)

Anchor Handling Tug Supply vessels (AHTS)

Construction vessels

• Performance driven by high rig activity in many regions and increased field

developments

Offshore support vessels

• About our division

• Financial results

• Shipping markets

• Offshore markets

• Cruise and ferry markets

• Risk management

• Nordea’s exposure concentrate on major

operators on the northern European trade lanes

• Significant barriers to entry and a highly

concentrated supply side in respective regions

• Overall outlook is moderate and dependant on

continued improvement in Northern European

economies

31 •

• Industry dominated by three major players with

80% market share

• Sector has recovered from the impact of the

Costa Concordia grounding and has a positive

near term outlook

• Industry risks include general economic

conditions and consumer spending in particular

Cruises

Ferries

Cruise and ferries

• About our division

• Financial results

• Shipping markets

• Offshore markets

• Cruise and ferry markets

• Risk management

Risk management framework

• Credit Policy reviewed and approved annually by the Board of

Director’s Risk Committee, laying down principles for lending and

customers

• An overall cap on shipping and other segments exposure is set

• Main rule is secured lending limited to 75% of market value of modern

collateral vessels, protected by financial covenants

• Target a diversified Nordic and international credit portfolio with the

leading names in each segment

33 •

Managing throughout the shipping cycle

• Focus on our relationship strategy with leading companies within each

segment

• Tightened credit standards and dedicated workout and restructuring

team

• Increased frequency of stress tests for early detection of problems

• Accelerate against our collateral is always last resort, but we will not

hesitate to take firm action, if needed

• Increased activity in the secondary loan market has facilitated an early

exit in certain problem loans

34 •

Key messages

Nordea is a globally leading shipping and offshore bank with strong

long term relationships with major shipping and offshore companies

Operating profit after loan losses of EURm 195 in 2013 compared to

EURm 74 in 2012

Loan portfolio of EURb 11.4 representing 3.3% of Nordea’s total loans,

with shipping standalone representing 2.0%

Gradual recovery in major shipping segments expected from 2014,

based on higher global GDP growth and reduced deliveries of new

vessels

Loan losses in process of normalising

35 •

Shipping, Offshore & Oil Services

London, February 7th, 2014

Hans C. Kjelsrud