Introduction to the Swedbank and Kepler Cheuvreux partnershipib/documents/presentation/cid_2588419.pdf · • Swedbank holds 6% of the capital …with a locally anchored equity distribution

Public Information class

In cooperation with:

Introduction to the Swedbank and Kepler Cheuvreux partnership

October 2018

Public Information class In cooperation with 2

New partnership strengthens Swedbank’s offering Excellent international distribution power through local presence in all major markets

Still the same… Our Nordic presence remains unchanged with the same staff and strong local commitment … but strengthened Through the Kepler Cheuvreux strategic partnership, our research coverage and sales force have been significantly expanded on an international level Together, Swedbank and Kepler Cheuvreux offer world-class distribution and research based on local expertise and global presence

=

+

Source: Swedbank, Kepler Cheuvreux

Public Information class In cooperation with

A Nordic investment bank…

3

Strong synergies between Swedbank and Kepler Cheuvreux result in an unbeatable offering

Corporate Finance Mergers & Acquisitions Equity Capital Markets

Debt Capital Markets Bond issuance, trading convertibles, hybrids

Structured Finance Acquisition- and project financing,

IPO financing

Loans & Syndication Sector- and asset-based debt financing,

project- and event-driven financing

Equities Equity sales, company- and

industry research

Markets Macro and credit research. Credit

sales, currencies, derivatives

Corporate Access Roadshows, company presentations,

events, field trips

Corporate client organization and offering unchanged within Swedbank

Investor reach significantly strengthened through Kepler Cheuvreux partnership


Client Coverage Lending Deposits


• Kepler Cheuvreux signs exclusive strategic partnership with Rabobank for the Netherlands

• Rabobank holds 5% of the capital

• Kepler Cheuvreux signs exclusive strategic partnership with UniCredit for Germany, Italy and Austria

• UniCredit holds 5% of the capital

• Kepler acquires CA Cheuvreux

• Exclusive partnership with Crédit Agricole CIB for France and Iberia

• Crédit Agricole holds 15% of the capital

• Kepler Cheuvreux signs exclusive strategic partnership with Swedbank for the Nordics

• Swedbank holds 6% of the capital

…with a locally anchored equity distribution with global reach

Source: Swedbank, Kepler Cheuvreux 1: Measured on secondary trading 2: Extel 2014/15/16/17: Leading Brokerage Firm – Countries 3: Through partnership with CIMB in Asia and Piper Jaffray in the US

4

125+ equities brokers

1,350 active institutional

clients

830 companies

covered

US and Asia equity research3

8th largest broker

in Europe1

14 local offices in Europe

and the US

90+ equity research

analysts

1,000 corporate roadshows

per year

#1 brokerage firm across countries in Europe2

2017

2016

2013

2011

1997 • Kepler is founded as the equity brokerage

business of Bank Julius Baer, a Swiss private bank

• Kepler Cheuvreux signs exclusive strategic partnership with Belfius for Belgium

• Belfius holds 5% of the capital 2017


How does the new partnership model actually work?

Source: Swedbank, Kepler Cheuvreux 5

Workflows in the cooperation are handled seamlessly

Origination & client

contact

Structuring, preparations &

execution

Investor contact, roadshows &

research

Sales & distribution

to institutions

Sales & distribution

to retail

Swedbank process Swedbank fuels the transaction to Kepler Cheuvreux

All client contact and project coordination is handled by Swedbank


#1 Leading

Brokerage Firm Countries

#1 Pan-European Small & Small

Mid Caps Sales

#2 Pan-European Equity

& Equity-Linked Brokerage Firm

Sales

Swedbank/Kepler Cheuvreux or affiliate office Europe: equity sales & sales traders

Global distribution through multi-local presence


6

Excellent international distribution power through local presence in all major markets

Broker and sales trader overview

7 45 2

2 3

8 9

40

9 6 1 18

6

3

2 13

Countries and regions

Active institutional clients

United Kingdom 21.9%

United States 18.7%

France 15.0%

Switzerland 10.4%

Nordics 7.5%

Italy 7.1%

Benelux 6.8%

Germany & Austria

6.4%

Spain 3.9%

RoW 2.2%

Active clients per region

+

2017


#1 brokerage firm country research

Top 10 in 14 research

sectors

#3 sustainability/SRI

research

Highly regarded research team with in-depth sector knowledge Research team, overview

Source: Bloomberg as of Dec. 2017, Swedbank, Kepler Cheuvreux, 7

Number of stocks covered Continental Europe (excl. UK) Western Europe incl. UK

# Broker / Investment bank

# of comp. covered # Broker /

Investment bank # of comp.

covered

1 Kepler Cheuvreux 785 1 Kepler Cheuvreux 829

2 Deutsche Bank 486 2 JP Morgan 782 3 Exane 452 3 Deutsche Bank 674 4 JP Morgan 449 4 UBS 640 5 UBS 444 5 Berenberg 622 6 Goldman Sachs 424 6 Citi 617 7 BAML 415 7 BAML 593 8 Citi 413 8 Exane 584 9 Berenberg 408 9 Goldman Sachs 569

10 Credit Suisse 401 10 Credit Suisse 569 … …

15 Carnegie 320 18 Carnegie 326 … …

18 Nordea 275 21 Nordea 282 … 270 22 ABG Sundal Collier 269

20 ABG Sundal Collier 264 23 Danske Bank 257 21 Danske Bank 249 ...

… 237 25 SEB 242 23 SEB 236 26 Pareto 242 24 Pareto 229 27 Handelsbanken 231 25 Handelsbanken 228 …

… 206 29 DNB 198 27 DNB 190 30 Commerzbank 184

KECH research coverage and analysts, disaggregated by segment Segment Coverage Analysts Financials 90 22 Industrials 207 27 Consumer 157 34

TMT 116 13 Pharma & Chemicals 91 12 Energy & Environmental 92 17

829 companies

covered

90+ equity

research analysts

covering 141 Nordic

companies

of which 300 Nordic

companies within Q3 2018

with target of covering

5 Economics & Strategy research analysts

5 Environmental, Social & Governmental research analysts

2 Quantitative research analysts

Additional research teams

Henning Steffenrud Head of Nordic Research

Jose Hernandez Global Head of Research

2017

KECH research coverage, overview

12 11

10 14

3 6

8

40

8

11


Strong combined ECM track record

Selected Swedbank ECM transactions

Source: Swedbank, Dealogic

8

Kepler Cheuvreux partnership model proven through UniCredit, Crédit Agricole and Rabobank

Performance of existing KECH partners

Leading ECM player in France since start of Kepler Cheuvreux partnership in April 2013

Italian ECM champion since start of Kepler Cheuvreux partnership in 2012

Dutch champion in IPOs since start of Kepler Cheuvreux partnership in July 2016

Block sale

June 2017 NOK 426m

Initial Public Offering

June 2017

SEK 4 524m

Equity raise

June 2017 USD 500m

Rights issue

June 2017 NOK 190m


April 2017 SEK 136m

Convertibles and bond

issue

March 2017 SEK 245m


June 2017

NOK 8 400m

Private placement

December

2017 NOK 55m

Private placement

November

2017 NOK 4 100m

Private placement

December

2017 NOK 50m

Equity issue

December 2017

NOK 70m

Rights issue

December

2017 SEK 794m


Strong performance in the NOK 4.1bn private placement for Aker BP

Company Aker BP ASA

Ticker/Listing AKERBP (Oslo Børs)

Launch date October 30, 2017

Completion date October 31, 2017

Type of transaction Private placement

Transaction size NOK 4.1bn

Placement price NOK 184 per share

Discount to close 0%

# shares issued 22,376,438 new shares

Buyers Norwegian and international investors

Joint Bookrunners Nordea, Danske Bank, DNB, SEB, Swedbank

Source: Dealogic, Swedbank, Kepler Cheuvreux Note: Subscription by Aker ASA and BP plc equally split among arrangers

9

Swedbank/Kepler Cheuvreux a definitive top performer in the syndicate

Actual allocation per manager (% of shares) Global institutional investor demand per managers at offer price

16,8 %

19,2 %

20,3 %

21,3 %

22,4 %

Bank E

Bank D

Bank C

Bank B

18,3 %

19,7 %

20,1 %

20,3 %

21,6 %

Bank E

Bank D

Bank C

Bank B

Total demand per manager at offer price (% of shares)

16,5 %

18,9 %

20,0 %

22,1 %

22,5 %

Bank E

Bank D

Bank C

Bank B

Transaction details


Uncovering global investor demand

Demand covered by Kepler Cheuvreux – selected deals

Source: Swedbank, Kepler Cheuvreux a) At par with other syndicate bank

10

Kepler Cheuvreux has delivered more than EUR 1.5bn in sole orders over the last 25 deals

In the recent ABBs/IPOs listed below, Kepler Cheuvreux’s oversubscription (sole and split) covered on average . the total book

Deal size,

(EURm) Competition

Oversubscription KECH Rank

Global KECH only # Out of

2017 Italy 2,275 5 int. IBs, 1 Eur. IB 2 local IBs 2.1x 1.9x #3 9

2017 Norway 429 4 local banks 1.4x 1.2x #2 5

2017 Italy 424 1 US bank, 2 local banks 8.0x 7.1x #1 4

2017 France 169 1 Eur. bank, 1 Italian bank 2.0x 1.9x #1 3

2017 Netherlands 101 1 US bank 3.0x 2.9x #2 2

2017 Italy 274 3 US IBs, 1 Eur. IB, 1 local bank 1.5x 1.4x #2 6

2017 Italy 108 1 US bank 2.5x 2.3x #2 2

2017 France 436 3 US banks, 1 European bank 2.5x 2.2x #2 5

2017 France 67 2 US banks, 1 European bank 3.5x 3.2x #2 4

2017 France 133 1 European bank 2.6x 2.5x #1a 2

2017 France 400 2 US banks, 1 local bank 1.7x 1.5x #1 4

2016 France 282 1 US IB, 1 Eur. IB, 1 local bank 2.6x 2.5x #2 4

2016 Italy 328 1 European bank 7.0x 6.8x #1a 2

2016 Spain 134 1 European bank 2.7x 2.5x #1a 2

2016 Netherlands 110 1 US bank, 1 local bank 2.8x 2.3x #2 3

2015 Italy 3,364 7 US banks, 2 local banks 2.0x 1.6x #3 10

2.7x

Italy, 2017 – EUR 2,275m IPO KECH syndicate ranking

KECH

Other demand

Offering

KECH only

Oversubscription % of total demand

91%

9% 1.9x

#3 out of 9

Italy, 2017 – EUR 424m IPO KECH syndicate ranking

Offering

KECH onlyKECH

Other demand


88%

12% 7.1x

#1 out of 4

France, 2017 – EUR 169m ABB KECH syndicate ranking

KECH

Other demand


95%

5% Offering

KECH only

1.9x

#1 out of 3


KECH

Other demand

Offering

KECH only


87%

13% 2.2x

#2 out of 5


KECH

Other demand

Offering

KECH only


95%

5% 2.5x

#2 out of 4

Netherlands, 2016 – EUR 110m ABB KECH syndicate ranking

KECH

Other demand

Offering

KECH only


83%

17% 2.3x

#2 out of 3


KECH Corporate Access – undisputed leader in Europe

Source: Swedbank, Kepler Cheuvreux, Extel 2017 survey * Per September 2017

11

Corporate Access is of the highest importance for institutional investors

#1 European broker

Corporate Access (Fund Manager Nominations)

#1 European broker

Rev. Roadshows/ Field Trips

(Fund Manager Nominations)

#1 European broker

Conferences (Fund Manager Nominations)

#1 European broker

Corporate Access (Corporate Nominations)

22 000 one-on-

ones

1 000 road-

shows

2 000 investor

trips

200 expert

meetings

50 thematic field trips


Swedbank Corporate Finance has excellent M&A capabilities

• Several attractive acquisition targets identified on the NCS

• Norway different from other countries, and PE investors cannot establish themselves without a team on the ground

• Important to educate possible investors on tax regime to lower their perceived risk

• Difficult for potential sellers to accept teams without already secured equity funding

Source: Swedbank 12

Solid track record of both buy- and sell-side transactions, long list of recent high-profile deals

Edge Petroleum / Elliott Management case study

Looked at potential exit scenarios for investors and how to build an attractive

case

Investigated what possible operational and price scenarios meant for

investor returns

5 6

Educated investors on the Norwegian tax regime and

payback in default scenarios

3

Built an investment case based on the most

attractive risk-reward in current M&A market

4

Identified several attractively priced asset

packages on the NCS

1

Put together a qualified and highly experienced

team that investors trusted

2


Leading acquisition financing partner for private equity…

Selected recent Swedbank Structured Finance transactions 2017 / 2018

Source: Swedbank 13

Credit Facility Increase

Arranger (Club Deal)

HightecVision

Acquisition of

Mandated Lead Arranger (Sole Lender)

Summa Equity

Acquisition of


Altor Equity Partners

Acquisition of


Impilo

Acquisition of

Mandated Lead Arranger (Club Deal)

Triton

Acquisition of


Triton

Refinancing of



Acquisition of

Mandated Lead Arranger (Sole Underwritter)


Acquisition of


Nordic Capital

Post-IPO financing


Apax

Acquisition of


FSN Capital

Credit Facility Increase

Arranger (Club Deal)

Cinven & HgCapital


…with top position in the Nordic HY market…

NO+SE: Amount issued NOK/SEK HY bonds 2018 YTD

Source: Bloomberg, EBA, Swedbank, Stamdata 14

Swedbank is a leading arranger and trader in bonds

NO+SE: # of issued NOK/SEK HY bonds 2018 YTD

7 623

7 228

6 399

4 238

4 021

3 946

3 052

1 865

0 2 000 4 000 6 000 8 000 10 000

Nordea

Swedbank

Pareto

DNB

SEB

Danske Bank Markets

ABG Sundal Collier

CarnegieSEKm

23

20

19

18

16

14

12

8

0 5 10 15 20 25

Nordea

Swedbank

DNB

Pareto

ABG Sundal Collier

Danske Bank Markets

SEB

Carnegie# of deals

Public Information class

In cooperation with Restricted access Confidential Information class

… and solid deal flow in HY bonds Consistent deal flow in the Nordic market within several key sectors

15 Source: Swedbank

SEK 850,000,000

3 years Senior unsecured bond

Joint Lead Manager February 2018

NOK 1,500,000,000

4.5 years Senior unsecured bond

Joint Lead Manager January 2018

SEK 1,500,000,000

3.1 years Senior unsecured bond

Joint Lead Manager January 2018

EUR 250,000,000

4.1 years Senior secured bond Joint Lead Manager

November 2017

SEK 3,000,000,000

7 years 2nd Lien

Joint Lead Manager February 2018

SEK 2,000,000,000


Joint Lead Manager March 2018

EUR 400,000,000


Joint Lead Manager April 2018

EUR 200,000,000


Joint Lead Manager May 2018

SEK 1,500,000,000/ SEK 750,000,000 5 years/Tap issue

Senior unsecured bond Joint Lead Manager

Nov-2017/June-2018

EUR 250,000,000

6 years Senior secured bond Joint Lead Manager

June 2018

SEK 800,000,000

Perpetual Hybrid bond

Joint Lead Manager June 2018

SEK 350,000,000

3 years Senior secured bond

Sole Arranger June 2018

NOK 850,000,000

5 years Senior Unsecured bond

Joint Bookrunner August 2018

SEK 495,000,000

3 years Senior Secured bond

Sole Arranger July 2018

SEK 1,000,000,000


Joint Lead Manager June 2018

NOK 500,000,000


Joint Lead Manager September 2018

SEK 1,000,000,000

Perpetual Hybrid bond Jr Subordinated


SEK 300,000,000

3 years / Tap issue Senior unsecured bond

Sole Arranger October 2018

USD 475,000,000

5.5 years 1st lien/ 2nd lien


EUR 75,000,000


Joint Lead Manager March 2018

SEK 500,000,000


Sole Arranger June 2018

http://klovern.se/sv/


…supported by leading credit, macro and FICC teams

Selected members of macro and credit research teams

Source: Swedbank

16

Credit research coverage and analyst, overview

Segment Coverage Analysts Sector Comps. Covered Analysts

Financials 60 6

Bank & Asset Management 18 2

Debt purchase 3 1

Real estate 37 2

Holding Companies 2 1

Industrials 32 8

Automotives & Trucks 3 1

Airline & Airports 2 1

Industrials 10 1

Construction & Materials 3 1

Forestry, Paper & Packaging 9 1

Services 5 3

Consumer 6 3

Food & Agriculture 3 1

Consumer goods 1 1

Betting and gaming 2 1

TMT 6 2 Telecom operators 5 1

Telecom Services 1 1

Pharma & Chemicals 2 1 Pharma & Biotech 2 1

Energy & Environmental 70 7

Utilities 22 1

Renewables 5 1

Oil & Gas 2 1

Oil Services 4 1

Shipping & Offshore 32 2

Metals & Mining 5 1 KJETIL MARTINSEN

Acting Chief Economist,

Norway

OLOF MANNER Head of Swedbank Research, Sweden

ANNA BREMAN Group Chief Economist,

Sweden

NERIJUS MAČIULIS Chief Economist,

Baltics

OYSTEIN BORSUM Chief Credit Strategist,

Sweden

BENGT KIRKØEN Credit Research, Banks/

Financials, Norway

JONAS BITO SHUM Credit Research,

Oil services/E&P/Shipping, Norway

MICHAEL JOHANSSON Credit Research, Sweden

Credit, FICC and macro sales and analysts

Credit, FICC and macro sales and analysts, overview

Extensive credit research coverage of 176 companies – supported by a large and experienced sales team

3

25 123

4

8

Documents

Introduction to the Swedbank and Kepler Cheuvreux partnershipib/documents/presentation/cid_2588419.pdf · • Swedbank holds 6% of the capital …with a locally anchored equity distribution