BofAML 21st Annual Financials CEO Conference Investor presentation

Casper von Koskull, President and Group CEO

London 29th September

13% CAGR in capital generation and CET1-ratio up 10.6 pp in 10 years

Strong capital generation and stable returns at low risk1

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 2 •

2012 2015

43

2014

39

2013

37 35

20

15

31

2008 2006

12

2005 2011 2010

19

29 26

2007 2009

5.92 16.5

Acc. dividend, EURbn Acc. equity, EURbn

CET1 Ratio %

The most stable bank in the Nordics

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

Nordea and peers 2006 – 2015, %

3 •

146

77

47382417

Peer 5 Nordea Peer 4 Peer 2 Peer 3 Peer 1

1,040,88

0,520,350,33

0,21

Peer 3 Peer 2 Peer 1 Nordea Peer 4 Peer 5

Qu

art

erl

y n

et

pro

fit

vo

lati

lity

Qu

art

erl

y C

ET

1 r

ati

o

vo

lati

lity

¹

Our focus on ancillary income has offset pressure on NII margins

2008 2015 Change

Net Interest Income (EURm) 5 093 4 963 -3%

Lending and deposit volumes (EURbn) 414 530 +28%

Net Fee and Commission Income (EURm) 1 883 3 230 +72%

Net Fair Value (EURm) 1 028 1 645 +60%

Total Income (EURm) 8 200 10 140 +24%

4 •

Recent Trends

Q2/16 vs. Q2/15*

• Income down 3%

Despite low growth and turbulent financial markets – stabilising trend in the quarter

Ancillary income holding up well

• Costs +3% in local currencies

Developing as expected

Flat 18 vs. 16, down after 18

• Loan loss provisions at 15bps

Expected level for full year approximately 16bps

Overall, solid asset quality with strongly rated customers

• CET 1 ratio improved 10bps from previous quarter to 16.8% (Pro forma 17.2%)

SREP finalised end-September, early October – current requirement of approx. 17%

Project Archean closed successfully end-August

• Simplification programme is delivering according to plan

5 •

*In local currencies

Retail Banking - strong financial development

1) Lending margins

2) Adjusted for insourcing of IT and compliance build up

Income (EURbn) Profitability (%)

Cost (EURbn)

■ Non interest income +9%

■ Margins1 +43 bps

■ Relationship customers +6%

■ FTEs down by ~2,000 (~10%)2

■ 35% fewer branch locations

RoCaR

Cost / income

1313

11

9

7

2013 2012 2011 2014 2015

65

59 59

56 54

2011

3.2

2015

2.7

4.9

2011 2015

5.0

6 •

Wholesale Banking – a leading Nordic platform

2015 - Tier 1 – Nordea Nordic #1

No. 1

positions

No. 2

positions

No. 3

positions

#1 Nordea 22 12 8

#2 Nordic Peer 14 12 13

#3 Nordic Peer 5 14 13

Greenwich Prospera

7 •

288

2015 2011 2014

1,929

2013 2012 2014

1,127

2011 2015 2012 2013 2013 2012 2011 2014 2015

Wealth Management - 20% profit CAGR since 2011

Operating income (EURm) Operating profit (EURm) AuM (EURbn)

8 •

Banking: an industry in transition – and more disruption lurks

around the corner

Big Data – relevance & personalisation

Cloud – profitability at lower scale

A digital

revolution

Mobile – always

accessible

Social Media – networks redefined

KEY TECHNOLOGIES IMPACTING BANKING MORE DISRUPTION COMING

E.g. Blockchain

9 •

Banking customers: Same needs as before but changing behavior

Co-creation Network

building Personalisation

Impatient & empowered - 24/7

availability and immediate delivery

Knowledgeable - Specialised and

tailored advise that complements the

research we have done ourselves

Integrated & connected – Integrated

into my process and

connected/compared with peers

Require relevance - Personalised

products, services and interaction

Are becoming less loyal

Use several channels in combination

Use digital channels more intensively

Use digital channels to enforce:

CHANGING CUSTOMER EXPECTATIONS… …AND CHANGING CUSTOMER BEHAVIOR

10 •

Also Nordea’s customers are changing their behavior

22 Mobile

Branches

■ Digital response required

■ Front-end solutions will not suffice

■ Automated end-to-end processes across

the full value chain is a must

■ Consistency and endurance in execution to

unlock benefits

Tra

nsa

cti

on

s

Mill

ions

Q3/10 Q3/15

Ab

ilit

y t

o e

xe

cu

te

Level of digital response

60

End-to-end digital response required Relationship banking is turning digital fast

3

Netbank

Q2

2015

10%

Q4

2014

3%

Q4

2016

17%

Q4

2015

Q4

2017

Sh

are

of

Re

mo

te

Meeti

ng

s

(Pe

rce

nt)

11 •

Surge in new operational regulations

& OUR CUSTOMERS

Machinery

room

Recovery and

resolution

Solvency 2

TLAC

Structural reforms

for banking

Investor

compensation

Living

wills

Leverage

ratio

NSFR

Shadow

banking

Banking union

Products

Short selling CSD

regulations

AIFMD

UCITS

Long-term

financing

Prospectus

Directive Bank

account IORP II

SFT

transparency

Margin for

derivatives

Mortgage

Directive Securities

legislation

MMFs

Capital

requirements

Deposit

guarantee

MAD

AML

EMIR PRIPs

MiFID II

FTT

FATCA Data

protection

SEPA

Dodd-Frank

Payment

package

Corporate

governance

Benchmark

regulations

Transparency

Directive

Balance sheet

regulations

Fundamental

review of the

trading book

Operational regulations

PSD II

12 •

IT complexity in large legacy banks

Complex, risky, expensive & slow – hinders compelling customer experience

Source: BCG

13 •

For Nordea the strategic response to the industry transformation is

“Simplification” – the corner stone of our transformation

Digital offering Compliance

One operating

model

Cost and

capital efficiency

Simplification

14 •

2015 2020

Milesto

nes

K

ey a

cti

vit

ies

High-level delivery and migration plan for Core Banking Platform

Country migrations done

1 2 3 4 SV / SI

selected

Contract signed

CBP implementation done

Decommissioning done

Prep.

Pilot

Deposits

Loans

Mortgages

Trans. accounts

Complex

Customers Data cleansing and decommissioning

Business case +

migration strategy

agreed First version of model bank

implemented Pilot

Implemented

15 •

Digitalisation is at the heart of the future business/operating model

New

great customer

experiences

Robust platforms

as foundation

COMPETENT

RELEVANT

SAFE

ANYTIME, ANYWHERE

EFFICIENT COMPLIANT

CONFIGURABLE RESILIENT

Four strategic capabilities

Agility

Competence

Resilience

Scale

16 •

True end to end process

optimisation

Cost efficiency & capital management

Retail Banking transformation

Group Simplification Programme

Risk & compliance

2015 2018

Legal Structure Programme

Oth

er

bu

sin

ess

decis

ion

s

2016

Delivering on financial targets while transforming the bank

Transformational change agenda a cornerstone in achieving best-in-class C/I ratio

17 •

Nordea FinTech start-up accelerator program

BofAML 21st Annual Financials CEO Conference Investor presentation

Casper von Koskull, President and Group CEO

London 29th September