Nordea Investor Day in London May 11, 2017

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1 Nordea Investor Day in London May 11, 2017

2 Nordea Personal Banking Business Areas Presentation Day Topi Manner May 11, 2017

3 Starting from a strong position Largest Nordic customer base Strong local market position Sizeable books and staff to leverage Retail & Private Banking customers Market share household lending Perspectives to scale and scope 1 Millions 10 #2 #2 7 #2 ~ , Nordea Peer 1 Peer 2 #3 #3 4 #1 position across Nordics Annual income EURbn Total lending EURbn Total deposits EURbn Employees 3 1) Annualised Q1-17 income including ~0.2 EURbn income in the Baltics

4 Our ambition for Personal Banking by 2021 # 1 # 1 # 1 Customer satisfaction 1 Employee satisfaction Profitability 4 1) Leading customer satisfaction index for affluents and home owners on par for other customer groups

5 Customers drive our vision Easy to deal with Relevant and competent Anywhere and anytime Where the personal and digital relationship makes Nordea my safe and trusted partner 5

6 Continuously improving C/I ratio through increasing income and cost efficiency First steps according to plan 56 C/I ratio projection Actual Planned Income ~ +3 % p.a. Costs ~ -2 % p.a. C/I-ratio % Low 40 s Illustrative 6

7 Four distinct offerings drive top line growth and focus Consumer Banking Affluent Everyday Banking Homeowner Young potential Premium Mobile will be the gateway to Nordea for all customers 7

8 Less meetings and more interaction: Mobile-orchestrated & multi-channel Branches Branches with manual cash Mobile users Mobile payments and transactions Mobile log-ins 8

9 Mobile first strategy to fulfil increasing demands of all customer groups Easy daily banking Fast access to advisor Smooth home buying Multi-channel savings and investment advice Simplifying for a flexible and efficient Digital Factory Short time to market Optionality Scale benefits 9

10 Remote service & advisory drive higher customer satisfaction and productivity Service & advisory anywhere: Mobile, video, shared screen, chat... More specialised customer service & advisory roles Customers increasingly prefer remote meetings Productivity improvement both for customers and Nordea Already significant and increasing income More mortgages remotely, savings in branches ) Average monthly income per customer per meeting type

11 Mobile payments: Well-positioned for growth Easy payments and value-added services through Nordea Wallet Large market potential to grow Key drivers for Nordea Our solution P2P E-comm & In-App Instore Data to support relationship model Secure customer experience and loyalty in PSD2 world Offer data-driven value-added services Mobile Banking & Nordea Wallet Local Schemes Global Wallets Strategic optionality Market potential (volume of transactions) Current standing (illustrative) 11

12 Opportunities to increase share of wallet and to capture new Premium customers Segment already drives significant savings & investment income 53% 11% % customers commission % savings income income * % customers Premium segment Premium customers Other customers Other Peer A Peer B Peer C Peer D Peer E Index exposure of Premium customers Further penetration opportunity within existing customer base Opportunity to reach natural market share in this segment Fully leveraging Group capabilities in wealth/asset management #1 market position in net fund sales 12

13 On track: Core Banking Platform enables simplification and new digital services One Nordic banking platform standard and efficient Prepare & Pilot Country based rollouts: Deposits Loans Mortgages Transaction accounts Data cleansing and decommissioning Complex Customers New services faster Real-time banking Open banking # 1 Customer satisfaction Less admin work More time to advice # 1 Employee satisfaction Automation Decreased IT cost Lean product portfolio # 1 Profitability 13

14 Sound credit risk profile and maturing processes on compliance and conduct risks Credit risk well diversified across the Nordic countries Operational and compliance risk stabilised Conduct risk high attention and maturing Know Your Customer remediation Focus on investment advisory Total lending in Personal Banking ) Q4/2016. Baltics excluded, and would constitute ~5% of total lending

15 Structure, people, ways of working and culture all set up for reaching our ambition # 1 Focus on customer impact Customer satisfaction Employee satisfaction Profitability Engaging our staff Agile transformation while leveraging our strengths C/I-ratio % Low 40 s 15

16 Thank You!