Sampo Oyj · OMXHEX:SAMPO
Sampo Oyj — FY2004 Earnings Presentation
93 slides from Sampo Oyj's earnings presentation, Feb 17, 2005
Slide 1: Supplementary Financial Information 2004 Results
Supplementary Financial Information 2004 Results
Slide 2: Sampo in 2004 (1)
Sampo in 2004 (1) • Sampo Group’s operating profit more than doubled and was EUR 1,014 million (472). Profitability was good in all business areas and RoEC for the Group rose to 25.0 %. • NAV per share increased to EUR 5.97 (5.64), although Sampo plc paid a dividend of EUR 1.50 per share in April 20
Slide 3: Sampo in 2004 (2)
Sampo in 2004 (2) • Operating profit from banking and investment services rose to EUR 287 million (231). The improvement was largely derived from higher fee income, lower costs and a few one-off items. Strong growth in lending to Finnish households and Baltic customers continued. • The P&C insurance
Slide 4: Sampo in 2004 (3)
Sampo in 2004 (3) • Sampo Group’s life operations reported an operating profit of EUR 211 million (182). The yield on investment assets was 8.3 per cent at market values (9.5). Sampo Life maintained its strong position in focus areas and its overall market share grew to 17.9 per cent (17.6). • Opera
Slide 5: Earnings per share by quarters
Earnings per share by quarters EUR 0.75 0.54 0.50 0.46 0.32 0.33 0.25 0.21 0.20 0.18 0.16 0.12 0.10 0.03 0.02 0.00 1-3/2002 4-6/2002 7-9/2002 10-12/2002 1-3/2003 4-6/2003 7-9/2003 10-12/2003 1-3/2004 4-6/2004 7-9/2004 10-12/2004 February 17th, 2005 5
Slide 6: Group results
Group results EUR m 1,800 1,628 Operating profit Profit for the financial period 1,600 1,400 1,200 1,104 1,014 1,000 923 833 779 800 600 542 472 387 354 400 200 0 2000 2001 2002 2003 2004 February 17th, 2005 6
Slide 7: Earnings and dividend per share
Earnings and dividend per share EUR Earnings per share Dividend per share 2.00 1.78 1.75 1.60 1.50 1.50 1.50 1.40 1.25 1.00 0.75 0.75 0.63 0.64 0.50 0.35 0.20 * 0.25 0.00 2000 2001 2002 2003 2004 * Board proposal February 17th, 2005 7
Slide 8: Net asset value per share
Net asset value per share EUR 5.97 6.00 5.67 5.64 5.26 5.00 4.00 3.00 2.00 1.00 0.00 31/12/2001 31/12/2002 31/12/2003 31/12/2004* *Change in accounting policies and corporate tax rate account for EUR 0.45 of the increase February 17th, 2005 8
Slide 9: Group analysis of results
Group analysis of results EUR m 2004 2003 Operating profit of banking and investment services 287 231 Operating profit of P&C Insurance 478 - Operating profit of life insurance 211 182 Operating profit of the holding company 20 -4 Result of P&C operations (share of If) 27 84 Elimination items -8 -21
Slide 10: Group profit before appropriations and tax
Group profit before appropriations and tax EUR m 1000 965 900 800 2003 2004 700 600 500 486 400 300 287 231 215 425 200 195 100 84 20 -4 0 27 -21 -8 Banking and Life P&C Holding Elimination Sampo -100 investment Insurance Insurance Company Items Group services February 17th, 2005 10
Slide 11: Group net assets by business area
Group net assets by business area December 31, 2004 EUR m Banking P&C Life Holding Group 12/2003 Insurance insurance company Group Capital 997 2,050 387 2,073 3,027 3,006 Valuation differences 4 -14 453(*) 12 454 157 Deferred tax -1 4 -118 -3 -118 -45 Total net assets 1,000 2,040 723 2,081 3,363 3,1
Slide 12: Capital adequacy of the group
Capital adequacy of the group EUR m 2004 2003 Tier 1 2,123 1,882 Tier 2 1,071 323 - deductions from capital -941 -470 Total capital 2,254 1,735 Risk-weighted assets (On-balance sheet and off-balance sheet items) 14,678 13,920 Capital adequacy ratio 15.4% 12.5% Tier 1 ratio 14.5% 13.5% February 17th,
Slide 13: Sampo Group Solvency Capital 2004
Sampo Group Solvency Capital 2004 According to Conglomerate Rules, Consolidation Method EUR m % of Requirement Own Funds 3,684.5 173 Requirement for Insurance sector 957.8 45 Requirement for Banking sector 1,172.7 55 Requirements Total 2,130.4 100 Excess Solvency 1,554.1 73 February 17th, 2005 13
Slide 14: Group goodwill 31 December 2004
Group goodwill 31 December 2004 Banking and investment services 6.4 EUR m P&C Insurance 112.3 EUR m Holding company 788.1 EUR m If 583.1 Sampo Life 143.9 Sampo PTE 60.3 Others 0.8 Total 906.8 EUR m February 17th, 2005 14
Slide 15: Capital adequacy of Sampo Bank Group
Capital adequacy of Sampo Bank Group EUR m 12/2004 12/2003 Tier 1 1,000 784 Tier 2 475 326 - deductions from capital 2 2 Total capital 1,474 1,108 Risk-weighted assets (On-balance sheet and off-balance sheet items) 13,755 11,335 Capital adequacy ratio 10.7 % 9.8 % Tier 1 ratio 7.3 % 6.9 % February 1
Slide 16: Sampo Group - Cost development April–December 2004
Sampo Group - Cost development 1 April – 31 December 2004 EUR m 320 298.2 306.8 280.9 280 240 200 160 120 80 40 0 Q2/2004 Q3/2004 Q4/2004 February 17th, 2005 16
Slide 17: Group sensitivity to market risks
Group sensitivity to market risks (current value) December 31, 2004 Equities Equities Rates Rates EUR EUR EUR m –10% +10% –100 bp +100 bp +10% –10% Sampo plc -6 6 -2 2 -253 253 Sampo Life -155 155 116 -108 -54 45 P&C Insurance -106 106 82 -77 49 -49 Banking and investment 0 0 -32 30 0 1 services Gro
Slide 18: Return on Economic Capital in Sampo Group - year 2004 vs. Targets
Return on Economic Capital in Sampo Group - year 2004 vs. Targets % RoEC in 2004 Target for 2004 New Target 30 28.3 27.2 25.0 25 21.5 19.0 20.0 20.0 20 17.5 17.5 17.0 15.0 15.0 15 10 5 0 Sampo Group Banking P&C Insurance Life February 17th, 2005 18
Slide 19: Banking and Investment Services
Banking and Investment Services February 17th, 2005 19
Slide 20: Operating profit Banking and investment services
Operating profit Banking and investment services EUR m 500 404 394 400 264 287 300 240 231 200 100 14 0 -100 0 -200 -300 2003 -400 2004 -500 -415 -397 Net income from Other income Total costs Provisions for bad Operating profit financial and doubtful debts operations February 17th, 2005 20
Slide 21: Group analysis of results Banking and investment services
Group analysis of results Banking and investment services EUR m 2004 2003 Net income from financial operations 394 404 Dividend income 29 27 Fees and commissions receivable 256 214 Fees and commissions payable -62 -50 Net income from transactions in securities and forex dealing 0 12 Other operating
Slide 22: Fee income Banking and investment services
Fee income Banking and investment services EUR m 2004 2003 Payment services 57 54 Securities transactions 16 12 Asset management 80 60 Lending 35 31 Borrowing 20 19 Guarantees 12 8 Corporate Finance 5 5 Other 32 24 Total 256 214 Fees and commissions payable -62 -50 Fee income, net 194 164 February 1
Slide 23: Sampo Bank (in Finland) - deposits and lending
Sampo Bank (in Finland) - deposits and lending EURm 16,000 2.80% 14,000 2.40% 12,000 2.00% 10,000 1.60% 8,000 1.20% 6,000 4,000 0.80% 2,000 0.40% 0 0.00% 02 02 02 02 03 03 03 03 04 04 04 04 20 20 20 20 20 20 20 20 20 20 20 20 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Lending, EURm Deposits, EURm Lending m
Slide 24: Private clients – deposits and lending
Private clients – deposits and lending EURm 8,000 2.80% 7,000 2.40% 6,000 2.00% 5,000 1.60% 4,000 1.20% 3,000 2,000 0.80% 1,000 0.40% 0 0.00% 02 02 02 02 03 03 03 03 04 04 04 04 20 20 20 20 20 20 20 20 20 20 20 20 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Lending, EURm Deposits, EURm Lending margin, % Dep
Slide 25: SME, Corporate and Institutional clients – deposits and lending
SME, Corporate and Institutional clients – deposits and lending EURm 10,000 2.40% 9,000 8,000 2.00% 7,000 1.60% 6,000 5,000 1.20% 4,000 3,000 0.80% 2,000 0.40% 1,000 0 0.00% 02 02 02 02 03 03 03 03 04 04 04 04 20 20 20 20 20 20 20 20 20 20 20 20 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Lending, EURm Depo
Slide 26: Baltic Banking – deposits and lending
Baltic Banking – deposits and lending EURm 800 700 600 500 400 300 200 100 0 02 02 02 02 03 03 03 03 04 04 04 04 20 20 20 20 20 20 20 20 20 20 20 20 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Lending, EURm Deposits, EURm February 17th, 2005 26
Slide 27: Banking – fees and commissions 2001–2004
Banking – fees and commissions 2001–2004 EUR m 32 31.6 29.9 29.7 30.3 30.9 30.9 28.5 28.1 28.5 28.5 28.0 27.5 27.4 27.8 27.4 28 26.4 24 20 16 12 8 4 0 01 01 01 01 02 02 02 02 03 03 03 03 04 04 04 04 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Payment services Deposits Lending Guarantees February
Slide 28: Long-term savings – fees and commissions 2001–2004
Long-term savings – fees and commissions 2001–2004 EUR m 40 35.7 35 30.2 29.4 30 27.7 28.1 26.6 26.2 25 22.7 21.8 22.4 21.9 23.3 20.3 20 18.2 18.9 17.2 15 10 5 0 01 01 01 01 02 02 02 02 03 03 03 03 04 04 04 04 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Mutual funds and asset management With pro
Slide 29: Number of retail customers in mutual funds and unit-linked life insurance
Number of retail customers in mutual funds and unit-linked life insurance 300,000 250,000 200,000 150,000 100,000 50,000 0 1998 1999 2000 2001 2002 2003 2004 Retail mutual fund customers Retail unit-linked customers February 17th, 2005 29
Slide 30: Mutual fund assets and Sampo's market share
Mutual fund assets and Sampo’s market share Funds registered in Finland EUR m % 24.5 36,000 22.0 21.8 25 32,000 18.4 20 28,000 14.8 24,000 14.5 15 20,000 10.8 16,000 9.3 7.6 10 12,000 8,000 5 4,000 1,962 3,148 4,931 10,328 13,577 14,507 15,749 22,082 31,075 0 0 1996 1997 1998 1999 2000 2001 2002 200
Slide 31: Sampo's market share, private customers
Sampo’s market share, private customers Funds registered in Finland % 30 25.5 25 23.5 22.2 20 17.7 15 13.1 10 5 0 2000 2001 2002 2003 2004 February 17th, 2005 31
Slide 32: Development of mutual fund assets – Sampo Group 2000-2004
Development of mutual fund assets – Sampo Group 2000 - 2004 EURm 8,000 6,783 6,000 5,214 3,858 4,000 2,675 2,014 2,000 0 31.12.2000 31.12.2001 31.12.2002 31.12.2003 31.12.2004 February 17th, 2005 32
Slide 33: Breakdown of mutual fund assets under management of Sampo Group
Breakdown of mutual fund assets under management of Sampo Group % 1.3 2.1 6.6 10.1 7.1 100 90 80 37.8 27.7 Type of fund 49.9 34.7 41.5 70 Other 60 11.7 Equity 50 17.3 8.2 Balanced 15.5 9.6 11.6 Long-term fixed 40 23.7 11.5 11.2 Short-term fixed 30 20 11.1 38.6 35.4 31.4 30.6 10 14.1 0 31.12.2000 31.
Slide 34: Assets under Management
Assets under Management EUR m 30,000 25,000 20,000 Other AuM 15,000 Group AuM Core AuM 10,000 5,000 0 4Q/2003 1Q/2004 2Q/2004 3Q/2004 4Q/2004 Figures include assets under management (Aum) at Mandatum Asset Management, Mandatum Private Equity Funds, 3C Asset Management, Sampo PTE (Poland) and Sampo G
Slide 35: Non-performing and other non-interest earning loans
Non-performing and other non-interest earning loans EUR m 120 109 100 86 80 77 62 62 61 60 45 40 23 20 13 10 9 2 1 1 0 1998 1999 2000 2001 2002 2003 2004 Non-performing Non-interest earning February 17th, 2005 35
Slide 36: Credit losses by quarter
Credit losses by quarter EUR m 15 10 7 5 4 4 3 3 2 1 -1 0 0 0 -2 -5 -5 -10 Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04 Q4/04 -15 Recoveries New provisions Net credit losses booked February 17th, 2005 36
Slide 37: Banking and Investment services - cost development
Banking and Investment services - cost development (excluding Baltic banks) EUR m 600 500 400 188 207 188 300 182 173 200 289 100 223 229 209 194 0 2000 2001 2002 2003 2004 Other costs Staff costs February 17th, 2005 37
Slide 38: Performance by Business Area 2004
Banking and Investment Services Performance by Business Area 2004 Business areas SME, Asset Other Private Corporate Baltic Mngnt and and TOTAL clients and Insti- banking Funds in elimina- EURm tutional Finland tions Net interest income 190 144 28 0 31 394 Other income (net) 75 103 11 36 39 264 Major
Slide 39: P&C insurance
P&C insurance If figures presented in full and according to SGAAP February 17th, 2005 39
Slide 40: Very strong operational result
Very strong operational result SEK m Operating result stand-alone 6 000 5,190 5 000 4 000 3 000 2,702 2 000 1,680 842 1 000 0 Q4/03 Q4/04 2003 2004 February 17th, 2005 40
Slide 41: If result components
If result components SEK m 40,000 34,392 33,284 30,000 20,000 10,000 5,190 3,750 3,358 2,702 0 -10,000 -6,741 -6,128 -20,000 2003 -24,718 2004 -30,000 -27,962 -40,000 Premiums earned, Claims incurred, Operating Investment result Operating result net of reins. net of reins. expenses February 17th, 20
Slide 42: Portfolio improvements behind result trend
Portfolio improvements behind result trend Technical result SEK m 5 000 4,470 4 000 • Improvement in all BA's 3 000 • Further enhanced 2 000 1,624 efficiency 1,199 1 000 • Large claims result 456 SEK 1bn below 0 normal -1 000 -2 000 Q4/03 Q4/04 2003 2004 February 17th, 2005 42
Slide 43: Growth in Private, Commercial and Baltic business
Growth in Private, Commercial and Baltic business If Group 0% Private +5% Commercial +3% Industrial -17% Baltics +28% Excluding the M&E transaction and currency effects. February 17th, 2005 43
Slide 44: Economies of scale reflected in costs
Economies of scale reflected in costs Total costs, rolling 12 months, SEK m Cost ratio, rolling 12 months, % • Further cost decrease 9,302 28.3 9,282 9,214 9,200 – lower commissions, 9,133 – manning reductions, 27.5 8,906 – lower consultancy fees 27.0 26.8 8,644 and IT costs 26.6 26.2 8,437 – M&E tr
Slide 45: If Group key figures
If Group key figures SEK m Q4-04 Q4-03 2004 2003 2002 2001* Premiums written, gross 7,371 7,322 37,742 38,904 38,136 34,700 Premiums earned, net 8,267 8,442 33,284 34,392 32,789 30,271 Technical result 1,199 456 4,470 1,624 321 -1,971 Investment result 1,064 863 3,358 3,750 690 3,619 Operating resul
Slide 46: If Group result divided by business area
If Group result divided by business area Q4/2004 Q4/2003 SEK m Private 823 429 Commercial 248 12 Industrial 114 54 Baltic region 32 6 Other -19 -44 Group technical result 1,199 456 Investment result 1,064 864 Operating result 1,680 842 February 17th, 2005 46
Slide 47: Private business area: Impressive combined ratio improvement
Private business area Impressive combined ratio improvement SEK m Technical result (%) Combined ratio 3 000 100 95.1 99.0 98.7 • Strong claims 2,750 result 89.0 89.4 2 500 90 86.0 – Property Norway 84.0 – Motor Sweden 80 2 000 • No major Nordic 70 claims events 1 500 1,158 60 938 1 000 823 708 50 42
Slide 48: Commercial business area
Commercial business area Positive claims trend and enhanced efficiency SEK m Technical result (%) Combined ratio 1 200 110 • Large claims 103.7 1,039 99.9 101.9 SEK 300m 100 94.2 92.3 94.7 95.3 below normal 1 000 90 • Further efficiency 800 improvement 80 600 70 60 400 338 358 295 248 50 200 157 40
Slide 49: Industrial business area
Industrial business area Stringent risk selection and few large claims SEK m Technical result (%) Combined ratio 800 110 • Risk levels and 714 102.7 claims frequency 99.8 700 100 96.3 improved 94.2 600 90 88.3 90.8 • Large claims 84.3 approximately 500 80 SEK 700m below 400 normal 70 300 257 60 212
Slide 50: Baltic region
Baltic region Good results and outperformed market growth SEK m Technical result (%) Combined ratio 120 100 96.8 97.7 • GWP growth 91.8 90.8 28% 101 100 90 84.0 85.6 87.9 • Few large claims 80 80 • Enhanced 70 efficiency 60 60 40 34 32 23 50 20 20 16 6 40 0 30 03 04 04 04 04 03 04 03 04 04 04 04 03
Slide 51: Satisfactory returns despite short duration
Investment earnings Satisfactory returns despite short duration SEK m Statutory return Current value Investment allocation December 31, 2004 1 600 1% 12% 1 400 Fixed income 1 200 1 000 800 Equity 600 400 Real Estate 200 0 87% 03 03 03 03 04 04 04 04 1/ 2/ 3/ 4/ 1/ 2/ 3/ 4/ Q Q Q Q Q Q Q Q • YTD inve
Slide 52: Investment result and assets YTD Q4 2004
Investment result and assets YTD Q4 2004 If Group Weight Return Return (%) (MSEK) (%) Fixed income 87 2,980 4.4 Equity 12 531 7.8 Currency -114 Real estate 1 -81 -6.0 Other 44 Current value 100 3,360 4.3 Statutory adjustment 2 Statutory result 3,358 4.3 February 17th, 2005 52
Slide 53: Asset allocation, December 2004
Asset allocation, December 2004 Allocation Region Weight (%) Reference weight (%) Actual vs Reference Equity Sweden 3.2 2.2 1.1 US 3.8 3.8 0.0 Europe 2.0 1.2 0.8 Other 2.3 2.2 0.1 Total equity 11.3 9.4 1.9 Fixed income Denmark 3.7 5.1 -1.4 Europe 25.6 26.1 -0.5 Norway 0.3 18.7 -18.4 Sweden 51.1 28 2
Slide 54: Life insurance
Life insurance February 17th, 2005 54
Slide 55: Group analysis of results Life insurance
Group analysis of results Life insurance EUR m 2004 2003 Premiums written net 510 513 Investment income and charges 411 387 Claims paid -423 -392 Changes in tr before bonuses -244 -284 Net operating expenses -48 -42 Other technical income 3 0 Technical result before bonuses and equalisation provisio
Slide 56: Life insurance results before extraordinary items
Life insurance results before extraordinary items EUR m 450 411 400 387 350 300 250 211 215 195 200 182 150 100 50 13 6 0 Investment Operating profit Bonuses Profit before eo. income items 2003 2004 February 17th, 2005 56
Slide 57: Market shares of Sampo Life in core business
Market shares of Sampo Life in core business % Core retail*) Unit-linked 30 25 20 15 28.5 24.8 25.3 25.5 22.4 23.0 10 15.1 14.5 5 0 2001 2002 2003 2004 2001 2002 2003 2004 *) premium income from households excl. traditional life insurance February 17th, 2005 57
Slide 58: Market share of Sampo Life in unit-linked insurance savings
Market share of Sampo Life in unit-linked insurance savings % 25 19.8 20.2 19.0 19.5 20 18.8 17.1 17.9 16.0 16.9 14.9 15 14.0 13.2 12.0 10 5 0 01 2 2 2 02 3 3 3 03 4 4 4 04 00 00 00 00 00 00 00 00 00 20 20 20 20 .2 .2 .2 .2 .2 .2 .2 .2 .2 2. 2. 2. 2. .3 .6 .9 .3 .6 .9 .3 .6 .9 .1 .1 .1 .1 31 30 30 3
Slide 59: Insurance savings and Sampo Life's market share
Insurance savings and Sampo Life’s market share EUR m % 25,000 28.0 30 25.8 23.8 24.2 23.4 23.3 22.5 20,000 21.8 24 15,000 18 10,000 12 5,000 6 8,210 9,959 13,130 16,660 18,435 20,196 22,309 24,246 0 0 Dec-97 Dec-98 Dec-99 Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Insurance savings total Sampo Life's marke
Slide 60: Solvency ratio of life insurance
Solvency ratio of life insurance % 20.0 20 19.1 18.0 17.5 16.5 16.7 16.8 15.6 15 14.7 14.0 13.5 13.5 13.8 12.9 12.3 12.2 10 5 0 02 09 1 02 12 2 03 03 12 3 04 04 12 4 1 12 1 1 2 3 4 0 0 0 0 00 00 00 00 00 00 n- 20 20 20 20 20 20 20 20 20 /2 /2 /2 /2 /2 /2 Ju 6/ 3/ 9/ 3/ 6/ 9/ 3/ 6/ 9/ 03 Incl. all th
Slide 61: Solvency of Sampo Life
Solvency of Sampo Life EUR m 12/2004 12/2003 SOLVENCY CAPITAL Capital and reserves 384.7 387.9 Dividend payment 2004 -100.0 0.0 Subordinated capital 100.0 100.0 Unrealised gains 441.2 325.0 Equalisation provision 5.7 3.5 Other items 4.1 39.1 Total 836.9 855.4 TECHNICAL PROVISIONS Technical provision
Slide 62: Technical reserves in life insurance Sampo Group
Technical reserves in life insurance Sampo Group EUR m 6,000 5,259 5,499 4,995 5,000 4,736 4,253 4,000 3,000 2,000 1,000 0 31.12.2000 31.12.2001 31.12.2002 31.12.2003 31.12.2004 Guaranteed interest rates Unit-linked February 17th, 2005 62
Slide 63: Life insurance investment breakdown
Life insurance investment breakdown Total 5,505 EURm 6% 14% Bonds 43% Shares and participations Other debt securities and deposits Investments in land and buildings 38% Excluding assets covering unit-linked liabilities. February 17th, 2005 63
Slide 64: Sampo Life's major shareholdings December 2004
Sampo Life’s major shareholdings 31 December 2004 31.12.2004 Shares Book value Current value 1,000 EUR m EUR m YIT-Yhtymä plc 5,655 38.8 103,8 Uponor plc 5,610 45.3 77.2 Stora Enso plc 6,494 63.8 72.7 Kemira plc 4,759 38.9 48.5 Bravida ASA 211 47.9 47.9 Elisa Communications plc 4,000 40.2 47.4 Cloet
Slide 65: Sampo Life - breakdown of interest bearing instruments
Sampo Life - breakdown of interest bearing instruments 31 December 2004, total 3,459 EUR m 6% 6% 22% 10% 49% S&P rating AAA-A BBB Governments BB - B 29% Banks not rated Corporate 78% February 17th, 2005 65
Slide 66: Holding Company
Holding Company February 17th, 2005 66
Slide 67: Holding company – profit and loss account
Holding company – profit and loss account EUR m 2004 2003 Net income from financial operations -35 -9 Dividend income 13 10 Fees and commissions receivable 0 0 Fees and commissions payable -1 -1 Net income from transactions in securities and forex dealing 94 3 Other operating income 133 146 Total in
Slide 68: Outlook for 2005
Outlook for 2005 February 17th, 2005 68
Slide 69: Outlook for 2005 (1)
Outlook for 2005 (1) • Although a weak US dollar and high oil prices have increased the risks in the world economy and lowered growth estimates for 2005, growth in the Nordic and Baltic economies, where Sampo Group mainly operates, is forecast to continue at a relatively high level. Macroeconomic de
Slide 70: Outlook for 2005 (2)
Outlook for 2005 (2) • The Group’s banking operations are foreseen to maintain their good profitability with stable net financial income and steadily growing fees and commissions. Credit quality shows no signs of weakening and cost efficiency improves further. The Group’s Baltic banks continue to po
Slide 71: Outlook for 2005 (3)
Outlook for 2005 (3) • P&C insurance operation, If, has a leading position in the Nordic and Baltic market, which has become less cyclical than the international P&C markets. The company targets a combined ratio of less than 95 per cent. With a low-risk investment portfolio If is expected to exceed
Slide 72: Outlook for 2005 (4)
Outlook for 2005 (4) • The Group’s life operations are expected to maintain their strong position in focus areas – regular premium retail and corporate policies with an emphasis on unit linked. Uncertainties regarding the taxation of individual pension policies have been clarified and new sales will
Slide 73: Appendices
Appendices February 17th, 2005 73
Slide 74: Sampo in the Baltic banking markets
Sampo in the Baltic banking markets AS Sampo Pank (Estonia) 12/2004 12/2003 Market shares, % housing loans 8.9 9.4 corporate loans 9.4 9.5 leasing 6.6 5.5 A/S Maras Banka (Latvia) 12/2004 Market shares, % housing loans 2.3 AB Sampo bankas (Lithuania) 11/2004 12/2003 Market shares, % housing loans 14
Slide 75: Sampo in the Baltic life insurance market
Sampo in the Baltic life insurance market AS Sampo Elukindlustus (Estonia) (EUR m) 12/2004 12/2003 Premium income 5.3 3.3 Market share, % 10.5 9.0 AAS Sampo Dziviba (Latvia) (EUR m) 12/2004 12/2003 Premium income 2.0 1.1 Market share, % 16 11 Sampo Gyvybes Draudimas (Lithuania) (EUR m) 12/2004 12/20
Slide 76: Sampo in the Baltic P&C insurance market
Sampo in the Baltic P&C insurance market If Eesti Kindlustus (Estonia) (EUR m) 2004 2003 Premium income 58 37 Market share, % 41 37 If Latvia (Latvia) (EUR m) 2004 2003 Premium income 11 8 Market share, % 8 6 If Draudimas (Lithuania) (EUR m) 2004 2003 Premium income 13 10 Market share, % 8 7 Februar
Slide 77: Sampo in Poland
Sampo in Poland - Life insurance company (EUR m) 12/2004 12/2003 Sampo TU Zycie S.A. Premiums written net 5.6 5.7 Market share, % <1 <1 - Pension fund company (EUR m) 12/2004 12/2003 Sampo PTE S.A. AUM 532 293 Market share, % 3.5 2.9 Members 670,000 542,000 Exchange rate: 31.12.2004 1 EUR = 4,0845 P
Slide 78: Sampo Group Staff 31 December 2004
Sampo Group Staff 31 December 2004 31 December 2004 31 Dec Change 2003 Y-to-Y*) Permanent Temp. Total Total Total BANKING AND INVESTMENT SERVICES 3,953 256 4,209 4,211 -2 In Finland 3,190 256 3,446 3,580 -134 In the Baltics and other countries 763 0 763 631 132 P&C INSURANCE 6,673 0 6,673 - n.a. LIF
Slide 79: Sampo's ownership structure on 31 December 2004
Sampo’s ownership structure on 31 December 2004 Finnish government 21.2 % 1.4 19.7 21.2 Foreign investors 37.0 % Varma 15.1 % 1.5 Local Government Pension Inst. 2.0 % 2.1 Björn Wahlroos 2.1 % 2.0 Kaleva 1.5 % Other domestic 19.7 % 15.1 Not yet in the book-entry 37.0 securities system 1.4 % February
Slide 80: Macroeconomic appendices
Macroeconomic appendices Nordic and Baltic countries February 17th, 2005 80
Slide 81: Nordic: GDP growth
Nordic: GDP growth %, y-o-y (moving annual) 6 6 Sweden 5 5 4 4 Finland 3 3 2 Norway 2 1 1 0 Denmark 0 -1 -1 00 01 02 03 04 Source: EcoWin February 17th, 2005 81
Slide 82: Baltic countries and Poland: GDP growth
Baltic countries and Poland: GDP growth per cent (annual moving average) 12,5 10,0 Estonia Latvia 7,5 5,0 2,5 Poland 0,0 Lithuania -2,5 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Source: EcoWin February 17th, 2005 82
Slide 83: Nordic: Unemployment rates
Nordic: Unemployment rates per cent (annual moving average) 18 18 16 16 14 14 12 12 Finland 10 10 8 8 Sweden 6 Denmark 6 4 4 Norway 2 2 0 0 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 Source: EcoWin February 17th, 2005 83
Slide 84: Nordic: Inflation
Nordic: Inflation per cent (annual moving average) 5,0 4,0 Norway Finland 3,0 Denmark 2,0 1,0 Sweden 0,0 -1,0 -2,0 1996 1997 1998 1999 2000 2001 2002 2003 2004 Source: EcoWin February 17th, 2005 84
Slide 85: EUR and SEK
EUR and SEK EUR/SEK spot 10,00 10,00 9,75 9,75 9,50 9,50 9,25 9,25 9,00 9,00 8,75 8,75 8,50 8,50 8,25 8,25 8,00 8,00 95 96 97 98 99 00 01 02 03 04 Source: EcoWin February 17th, 2005 85
Slide 86: Nordic: 3 month interest rates
Nordic: 3 month interest rates per cent 11 11 10 10 9 9 8 8 Norway 7 Sweden 7 6 6 Denmark 5 5 4 4 3 3 Finland 2 2 1 1 96 16.2.2005 97 98 99 00 01 02 03 04 Source: EcoWin February 17th, 2005 86
Slide 87: Nordic: 10-year govt bond yields
Nordic: 10-year govt bond yields per cent, monthly averages 12 12 11 11 10 10 9 9 8 Norway 8 7 7 Sweden 6 6 Denmark 5 5 4 4 3 Finland 3 2 2 1 1 0 0 93 94 95 96 97 98 99 00 01 02 03 04 Source: EcoWin February 17th, 2005 87
Slide 88: Nordic: Share prices
Nordic: Share prices 1/1999 = 100, monthly averages of general indices 354 354 236 236 Helsinki Oslo 158 158 105 105 Copenhagen Stockholm 70 70 1999 2000 2001 2002 2003 2004 2005 Source: EcoWin February 17th, 2005 88
Slide 89: Finland: Bankruptcies
Finland: Bankruptcies Initiated, number 800 700 600 500 400 300 200 100 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 Source: EcoWin February 17th, 2005 89
Slide 90: Finland: Housing market
Finland: Housing market EUR m 130 45000 120 40000 Dwelling price index (1990=100) 110 35000 100 30000 90 25000 80 20000 70 15000 60 10000 Housing loans (right hand scale) 50 5000 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 Source: EcoWin February 17th, 2005 90
Slide 91: Finland: Household indebtedness
Finland: Household indebtedness as per cent of disposable income 85 85 80 80 75 75 70 70 65 65 60 60 55 55 50 50 45 45 40 40 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 Source: EcoWin February 17th, 2005 91
Slide 92: Finnish economic outlook
Finnish economic outlook 2003 2004 2005 2006 Change in volume, % GDP 2.4 3.1 3.1 2.5 Imports 2.7 1.5 3.0 3.0 Exports 1.4 2.2 4.0 4.5 Consumption 3.4 2.7 2.2 1.9 - private 4.4 3.4 3.5 2.3 - public 1.2 1.0 1.5 1.0 Fixed investments -1.5 4.5 3.0 2.0 Consumer prices, %* 0.9 0.2 1.4 1.8 Unemployment rate
Slide 93: Supplementary Financial Information 2004 Results
Supplementary Financial Information 2004 Results