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1 Annika Falkengren CEO Goldman Sachs Berlin June 12 2008 1

Goldman Sachs

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Page 1: Goldman Sachs

1

Annika FalkengrenCEO

GoldmanSachs

BerlinJune 12

2008

1

Page 2: Goldman Sachs

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SEB's markets in Northern Europe

2

GDP, growth per year, %

0

2

4

6

8

10

12

2006 2007 2008 (f) 2009 (f)

Average, Baltic countriesAverage, Nordic countriesEuro Zone

Page 3: Goldman Sachs

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10%15%

37%38%

RetailBanking

WealthManagement

Life

Merchant Banking

58%

20%

4%

18%

Sweden

Nordics

Germany

Baltic countries

This is SEB today Share of operating profit Q1 2008

Page 4: Goldman Sachs

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SEB's franchiseMerchant Banking● #1 Nordic stock broker● #1 Nordic and Baltic investment bank● #1 Nordic and Baltic cash manager● #1 Custody Nordic and Baltic markets● #1 Scandinavian currenciesWealth Management● #1 Nordic and Baltic private bank● #2 Nordic asset managerLife and pension● #1 Nordic unit-linked businessRetail● #2 Baltic region

4

Page 5: Goldman Sachs

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2007 2008 2010 2009 2006

Co-ordinateuniversal offering

Expand and accelerate

growth in areas of strength

5 million private individuals

2,500 large corporates& institutions 400,000 SME’s

Merchant Retail Wealth Life

Group IT Group Operations

Group Staff

Norway

Sweden

Finland

Estonia

Latvia

Lithuania

Ukraine

Denmark

Germany

PolandRussia

1 32

OK

OK

12

3

45

From To

Focus

Streamlining and integration

Productivity

Proactivity

Sustainableprofit growth

Installing operational excellence

Focused growth in areas of strength

Our strategy – The Road to Excellence

Page 6: Goldman Sachs

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2007 – 2009:Commitment

SEK 1.5 – 2bn

Resilience from operational leverage

Realised since startSEK 625m

Cost-management program SEB Way

Status Q1 2008Both front- and back-end processes30 % of all employeesMore than 800 FTEs freed up

Page 7: Goldman Sachs

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8.9

7.2

7.0

6.8

6.5

6.4

Core capital ratioBasel II including transitional rules, %

Net liquidity position across maturities31 March, SEKbn

Strong balance sheet

0

100

200

300

1 week

2 weeks

4 weeks

2 months

3 months

4 months

5 months

6 months

9 months

12 months

SEB is match-funded approx.

one year

*

* Danske has during 2008 started to report the full Basel II effect

(2007)

Page 8: Goldman Sachs

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Capturing structural growth trendsCapital markets

Demography

Emerging markets

Exploiting being the #1 Nordic Merchant Bank

SEB is:

Expanding the asset manage-ment and life insurance franchise

Trading, investment banking, new asset classes

Creating demand for:

Asset management, pension products

Local financial services, int’l support for our clients

Continued growth in Eastern Europe

Page 9: Goldman Sachs

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3.22.71.9 2.1 2.4

2003 2004 2005 2006 2007

Global Transaction Services

Leverage being the #1 Nordic Merchant Bank

2008 2007

1 1 Citi

2 2 Deutsche Bank

3 4 HSBC

11 10 BNP Paribas

12 12 SEB

13 13 Mitsubishi UFJ Fin Grp

Corporate foreign exchangeInternational rankingCustody, Cash management etc

Income, SEKbn

Assets under Custody

0

200

400

600

2002 2007

Nordea SEBEUR bn

Page 10: Goldman Sachs

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37

43

28

17

22

0% 20% 40% 60% 80% 100%

Lithuania

Latvia

Estonia

Denmark

Sweden*

SEB Market share Competitors

1221

SEBRank

Strong market position in all marketsMarket shares, gross premium income, unit-linked insurance (%, 2007)

2

* unit-linked (Sweden new sales)

Net inflows in the Swedish mutual fundsCumulative FY 2007 and Q1 2008, SEKbn

15.2

-13.6 -8.6

-18.5

Robur SHB Nordea SEB

Demographics supporting long-term savings

10

Page 11: Goldman Sachs

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0

1,000

2,000

3,000

4,000

2005 2006 2007

LithuaniaLatviaEstonia

1,428

2,320+62%

+34%3,114*

250,000 new customers during 2007

11

Go East: A continued growth caseOperating result country level; SEK millions

* Adjusted for sale of Baltic real estate

Page 12: Goldman Sachs

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Managing a downturn in the Baltic countries

Jan 06 Jul 06 Dec 06 2007● Tightening of

credit policy incl. cautious property mgmt

● ROE priority > volume growth

● Further tightening of credit policy

● Raised attention to currency risks

● Collective provisioning policy

● Concluding internal review of Baltic economies

● Increased capitalisation

● Overheating risks communicated

Phase I - Actions to manage overheating

0%2%4%6%8%

10%12%

2006 2007 2008

Credit growth per quarter

12

Page 13: Goldman Sachs

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Phase II - Actions to manage correction

Managing a downturn in the Baltic countries

Targeted credit portfolio reviewsJoint local and head-office work-out teamEarly conservative provisioning

Individual country approachFull integration in SEB Group to broaden product paletteDevelop relationships with existing and new customers

Asset quality

Business development

13

Page 14: Goldman Sachs

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SEB in Germany

Retail Banking

Merchant Banking

Asset Management

Commercial Real Estate

14

Page 15: Goldman Sachs

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Customer satisfaction: No 1 in chosenmarkets

Sustainable profit growth

Highest Return on Equity

AA-rating

Long-term objectives

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