5 October 2011
BoA
Merrill Lynch Banking & Insurance
CEO Conference London
Annika FalkengrenPresident & CEO, SEB
2
SEB today
Stability
Continuous
improvement
Sustainable
growth
3
Relationship bank with diversification Share of operating income H1 2011
8%7%
10%
56%
19%
44%
24%
32%
Retail
Asset Gathering
Wholesale
GermanySweden
Nordics
RoW
3
Baltics
444
Stable growth in all business areas Income, SEK bn
Wholesale
0
2
4
6
8
10
H1 2006 H1 2011 H1 2006 H1 2011 H1 2006 H1 2011
Retail Asset gathering
+10%
+6%
+16%
5
Wholesale franchise We work close to our customers
Leading product offering
Foreign Exchange
FixedIncome
Mergers & Acquisitions
Cash Management
Custody
Prime Brokerage
Structured Derivatives
Equities
Trade & Supply Chain Finance
Lending
Corporate portfolio (SEK bn)
5
0100200300400500600700800
2006 2007 2008 2009 2010Jun2011
+8% CAGR
Assets under custody (SEK bn)
01,0002,0003,0004,0005,0006,000
2004 2006 2008 2010 Jun2011
+10% CAGR
6
Retail franchise Simplicity and accessibility
Offerings
Availability
6
~12%
SME market share
0%2%4%6%8%
10%12%14%
2005 2007 2009 Jun 2011
+11% CAGR
Retail
deposits (SEK bn)
0
40
80
120
160
200
2005 2007 2009 Jun 2011
Private individualsCorporates
7
Asset gathering Full range of savings products through bancassurance
model
7
0
50
100
150
200
2005 2006 2007 2008 2009 2010 Jun2011
Unit-linked
AuM (SEK bn)
+13% CAGR
Private Banking AuM (SEK bn)
050
100150200250300
2005 2006 2007 2008 2009 2010 Jun2011
+11% CAGR
8
Balance
sheet
strength
Core
Tier
1*
Matched
funding
Leverage
ratio
(FDIC)
2008 2009 2010 Jun 2011
8.6%
11.7% 12.8% 13.5%13.5%
23x18x 17x 16x16x
7 months
17 months 18 months26 months26 months
Bond inv
portfolio
SEK 133bnSEK 90bn
SEK 48bn SEK 34bnSEK 34bn
* Basel II without transitional floor; 2010 pro forma for disposal of German retail
SEK 131bn
8
Baltic lending
SEK 167bn
SEK 102bn SEK 103bnSEK 103bn
9
Strong capital situation
Core Tier 1 ratio (%)Basel II
5%
7%
9%
11%
13%
15%
Q108
Q2 Q3 Q4 Q109
Q2 Q3 Q4 Q110
Q2 Q3 Q4 Q111
Q2
Basel II
Basel IIIRegulatory target range
Strong capital formation
Maintain buffer to minimum regulatory levels
Capacity to issue additional tier 1 instruments and return capital to shareholders in future
1010
Solid funding and deposit situation
10
Structurally sound balance sheet
Loan-to-deposit ratio excluding household mortgage lending 100%
Unutilised capacity for covered bonds SEK ~100bn
Assets Equity & Liabilities
Funding, remaining
maturity >1 year
Deposits from the General PublicOther
Lending
Equity
Stable funding
“Banking book”
Household Lending
1,2001,050
Balance sheet structureJun 2011, SEK bn
+150bn more stable funding
1111
Resilient long-term funding position
Funding raised with original maturity >1 year
11
2009 2010 2011 2012 2013 2014 2015 2016 2017
Reduced long-term debt dependence for current lending due to proactive pre-funding
Additional issuance will be primarily driven by loan growth
Opportunistic issuance in the senior unsecured and covered bond markets
Swedish covered bondsSenior unsecured bonds
130
92
75
102
Issued Maturing
66 61
39
56
21
/18
1212
Resilient liquidity position
0
100
200
300
400
500
SBA*/SEB CoreReserve
Total SEB LiquidResources
Net TradingAssetsOvercollateralisationOther
Financials
CoveredbondsGVT andpublic bondsCB and bankdeposits
Liquid assetsSEK bn
* Swedish Bankers Association (Bankföreningen)
283
467 Deposits from central banks 7%
Deposits from
financial institutions
40%
CPs/CDs 53%
Short-term funding SEK bn
SEK 467bn SEK 360bn
Liquidity Coverage Ratio exceeds 100%
13
-120-80-40
04080
120
2004 2005 2006 2007 2008 2009 2010 H1 2011
USD Loan/ Deposit ratio
100% 112% 80% 86% 131% 72% 99%
USD lending funded by USD deposits SEK bn
-300
-200
-100
0
100
200
300
Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11
Net trading assets
CPs/
CDs
Loans
Deposits
103%
Trading assets move
in tandem with CP and CD programmes
14
-50
0
50
100
150
200
Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11
High asset quality
3.3
1.31.10.90.60.2
Note: Reported figures (definitions vary slightly).
#2
414350
606065
Loan loss ratio by quarter (bps)
Net level impaired loans H1 2011 (%) Reserve ratio H1 2011 (%)#1
15
SEB today
Continuous
improvement
Sustainable
growth
Resilience and flexibility from strong balance sheet and earnings diversification
16
Priorities for 2011-2013 –
Growing in areas of strength
Growth strategy
Geography
Segment initiatives
Nordic and German corporate expansion
Continue to excel and strengthen core markets
Core relationships
Segment initiatives
Geographic growth
Core relationship growth
SME
Savings
17
Expansion targets until end of 2012
Loans and commitments:
New clients:
+50bn
+200
RoBE
Loans and commitments:
New clients:
+150bn
+200
C/I <0.5
Germany Nordics
>15%
Incremental from wholesale expansion
1818
Loans and commitments:
Progress of wholesale expansion H1 Nordic and German expansion* continues
18
Large cap clients:
+91bn
Top FX-provider No 1 Equity House
Best Sub-custodian Bank Best Supply Chain Finance Provider
+136
Best Bank
Best M&A House
Best Cash Management House
* Statistics since launch of expansion 1 Jan 2010
Client executives: +94
SEB
Customers’ intention to expand banking services over next 12 months (net)+11%
+9%
+5% +4%
+2%
Source: Corporate Banking year-end 2010 Nordics
19
SEB today
Continuous
improvement
Sustainable growth opportunities in unique customer franchise
Resilience and flexibility from strong balance sheet and earnings diversification
20
Efficiency focus continues
Communicated externally
Savings invested in front
Continuation of previous programme
Cost management programme
Continuous improvement
2007-2009 2009-2011
Key activities:–
Staff & Support –
Op. Excellence –
IT–
Procurement
Key activities:–
Net 500–
Group Staff–
Procurement–
Baltic & Germany restructuring
2006 2009 2011
20
21
FTE impact from efficiency measures
18,933
17,351
2008 H1 2011
Baltics: 600 FTEs
Ukraine: 500 FTEs
Sweden: 500 FTEs (gross 900)
Retail Germany divestment: 2,150 FTEs
FTE actions since 2008FTE development 2008-2011Excluding German Retail
Reduction
1,582 FTEs
21
22
10 9
1514
2010 2014
Flat costs until 2014 Reduced underlying cost base to enable investments in growth
24 24
* Assuming 3% annual inflation
-5%Front
office
Support functions
Saving
targets*
-20%
SEK 3.0bn
Gross savingsCost
base, SEK bn
23
5 workstreams
to save SEK 3bn
Staff Functions
Right size staff and support functions
Increase synergies by taking away functional overlaps
Loan operations
Increase efficiency in loan administration
Accelerate offshoring
to Baltic operations center
1
2
3
Strict group-wide prioritisation
and execution of IT development
Streamline IT operationsIT
Improve procurement processes and coverage
4
Procurement
5 Simplicity
Increase synergies by taking away functional overlaps
Simplify governance
Focus
2.4
0.6
3.0
Costs(SEK bn)
24
Summing up
Resilience and flexibility from strong balance sheet and earnings diversification
Sustainable growth opportunities in unique customer franchise
Profit protection from continuous efficiency measures to enable growth