Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — FY2005 Earnings Presentation
130 slides from Nordea Bank Abp's earnings presentation, Feb 22, 2006
Slide 1: Investor Presentation
Investor Presentation 22 February 2006
Slide 2: CEO presentation
CEO presentation 2
Slide 3: Record result in 2005
Record result in 2005 z Operating profit increased by 25% on a comparable basis to EUR 3,048m* z Record result in all business areas z Total income increased by 7% to EUR 6,573m z Total expenses unchanged at EUR 3,668m z Cost/income ratio continued down to 56% (60%) z Positive loan losses as recover
Slide 4: Growth of income – based on strong volume growth
Growth of income – based on strong volume growth YoY QoQ z Lending, total 17% 4% – Mortgage lending 15% 3% – Consumer lending* 15% 3% – SME lending 15% 3% – CIB lending 20% 4% z Deposits, total 10% 7% – Household deposits 7% 0% – SME deposits 10% 6% – CIB deposits 5% 19% 4 *Retail consumer lending (
Slide 5: Gap between income and cost development
Gap between income and cost development Percentage points 10 z Increased efficiency when 9 delivering top line growth 8 z Capture profitable revenue 7 opportunities 6 z Cost reductions were the main 5 driver for bottom line growth 2003- 4 2004 3 z Top line increasingly contributing 2 z Maintaining a
Slide 6: Cost/income ratio
Cost/income ratio % 70 z Strict cost management and top line focus 60 64 62 60 z Flat costs while business volumes 56 continue to grow 50 – productivity gains 40 – structural cost savings 30 z Income up 7% in 2005 20 10 z Target: Continuous improvement 0 2002 2003 2004 2005 6
Slide 7: Growth strategy
Growth strategy z Organic growth strategy to increase share of wallet among existing clients in Nordic home markets – relaunched customer programmes – product development – new resources, mainly in Sweden – transparent market pricing z Organic growth main route also in the Baltic’s, Poland and Russi
Slide 8: Initiatives to increase profitable growth
Initiatives to increase profitable growth z Increased focus on savings, advisory services and product development z Customer programmes in all markets with transparent price and benefit structure z Hiring of saving and Life specialists z Nordea will over a two-year period extend its branch network a
Slide 9: Key growth areas
Key growth areas z Accelerate market position within consumer credits – including cards z Enhance the already strong position within long-term savings z Leverage Nordea’s leading position in capital markets z SME banking provides opportunity z Continue growth in mortgages z Further position Nordea s
Slide 10: Increased focus on advisory services – higher share of non-interest income
Increased focus on advisory services – higher share of income being non-interest income EURbn z Increasing proportion on non- 7000 6,127 6,573 interest income 6000 5,670 5,639 z In line with strategy 5000 44% 43% 39% 40% 4000 z Individual client focused advice and product offering increasingly 3000
Slide 11: Increased sales performance – substantial potential for further profitable growth
Increased sales performance – substantial potential for further profitable growth Retail Retail personal Customers Volumes 1) Customers Volumes 2) corporate customers Million EURbn 1,000 EURbn customers Senior La Private banking re relationship rg Co Personal banker e managers 1.3 145 17 62 te dia R
Slide 12: Customer programmes - increasing business rewards both customers & Nordea
Customer programmes - increasing business rewards both customers & Nordea Strong growth in core segment z Key elements in the programmes offered End 2004 to End 2005 to the customers: 16.4% – more favourable prices the more business client does - and for the core customers a named 9.0% personal bank
Slide 13: Strong franchise within capital markets activities
Strong franchise within capital markets activities Operating profit within Markets division EURm 180 z Leading positions within debt capital markets, structured 160 169 157 158 162 products, derivatives, trading in 140 153 F/X and fixed income 120 z Entirely client driven business 100 z Clients amon
Slide 14: Further leverage the leading position in capital markets and strong corporate relationships
Further leverage the leading position in capital markets and strong corporate relationships z Increase penetration (share of wallet) and stimulate demand among SME’s for Markets related products – positive signs in 2005 z Leverage strong relationship with large corporates z Offering of Corporate Fin
Slide 15: Increased profit from the Baltics, Poland and Russia
Increased profit from the Baltics, Poland and Russia z 37% increase in lending volumes 2005 z Low risk strategy z Bolt-on acquisitions z Acquisition of Sampo PTE in Poland, incl. from 1 Jan 2006 Operating profit, EURm 2005 2004 Chg Poland and Baltic countries 32 20 +60% Russia, IMB 22 14 +57% Total
Slide 16: Strict cost management remains
Strict cost management remains z Unchanged costs in 2005 – down when excluding Life & operational leasing z Since 2002 total costs in nominal terms have decreased by 6% and in real terms around 15%… z …despite increases in business volumes z Continuous improvement being the main driver to the increa
Slide 17: Major structural cost initiatives
Major structural cost initiatives • Nordea started lean bank initiative 2005 Lean Banking • Lean initiative is a bottom-up process starting with branches and sales processes • Includes support functions and processes such as product development • Continue the external spend reduction initiative in p
Slide 18: Lean bank
Lean bank z Lean banking is aimed at being a major transformation vehicle for the bank the coming years z Overall ambition is to deliver a bank-wide step change in productivity – improving customer services and lead times – changing bank-wide mindsets and behaviours z Examples include – mortgage pro
Slide 19: Outlook
Outlook z Economic outlook 2006 indicates a continued strong GDP growth in Nordea’s home markets z Strong volume growth expected to continue also in 2006 z Lower margin level for new business implies that income growth will be lower than volume growth also in 2006 z At Capital Markets Day in Novembe
Slide 20: CFO presentation
CFO presentation Financials 20
Slide 21: Income statement summary
Income statement summary Jan-Dec Jan-Dec Chg % EURm 2005 2004 Net interest income 3,663 3,495 5 Net fee and commission income 1,935 1,794 8 Net gains/losses on items at fair value 615 535 15 Equity method 67 55 22 Other income 293 248 18 Total operating income 6,573 6,127 7 Staff costs -2,082 -2,021
Slide 22: Income statement summary
Income statement summary EURm Q4/05 Q3/05 Chg % Net interest income 933 920 1 Net fee and commission income 529 469 13 Net gains/losses on items at fair value 147 139 6 Equity method 21 11 91 Other income 66 62 6 Total operating income 1,696 1,601 6 Staff costs -532 -520 2 Other expenses -393 -345 1
Slide 23: Total operating income
Total operating income YoY: EURm z Up 7% 1,800 z Intensified focus on profitable 1,600 1,646 1,694 1,696 income growth in all business 1,569 1,582 1,601 areas 1,400 1,462 1,450 – hiring of specialists 1,200 – launch of new products – Growth plan Sweden 1,000 800 z Strong volume growth in all busines
Slide 24: Net interest income
Net interest income YoY: EURm z Up 5% 4,000 z Strong growth in lending, up 17% 3,500 3,663 3,495 z Volume growth outweighed margin 3,000 pressure 2,500 z Increased contribution from 2,000 deposits in 2005 z Growing NII in focus areas 1,500 – SME (Structured Finance) – consumer finance 1,000 – Poland
Slide 25: Net interest income
Net interest income QoQ: EURm 1,000 z Up 1% - mainly explained by volume growth 920 913 920 933 854 875 897 z Total lending up 4% 800 846 – mortgage lending up 3% – SME lending up 3% 600 – consumer lending up 3% – CIB lending up 4% 400 z Fierce competition in lending remains – mainly pressure on mor
Slide 26: Change in net interest income
Change in net interest income YoY QoQ Volume driven - Lending volumes 202 18 - Deposit volumes 47 1 Margin driven - Lending margins -144 -8 - Deposit margins 48 -2 Other - Other, net 15 4 Total, EURm 168 13 26
Slide 27: Net commission income
Net commission income YoY: EURm z Up 8% 2000 z Strong improvement in capital 1800 1,935 markets related commissions 1,794 – Asset Mgmt commissions up 13%, 1600 improved asset mix and product launches 1400 – brokerage up 29% – custody services up 11% 1200 z Growth in lending volumes 1000 – lending co
Slide 28: Net commission income
Net commission income QoQ: EURm z Up 13% supported by high business 550 activity 500 529 484 z Commissions from Asset Mgmt 450 467 469 434 450 443 453 products up 16% 400 – AuM increased 3% to EUR 151bn 350 300 – increased transaction and performance related fees 250 200 z Increased commissions from
Slide 29: Breakdown of commission income
Breakdown of commission income EURm 180 160 162 140 140 141 138 137 135 136 137 138 135 134 132 130 120 121 120 116 118 100 105 101 94 94 91 91 80 88 74 69 60 64 55 57 51 50 49 40 34 29 20 27 23 28 27 24 21 20 28 24 19 16 10 0 -3 -20 Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05 Asset Mgmt - net D
Slide 30: Income from card products
Income from card products EURm 200 z Income growth of 11% YoY 180 188 – income card credits up 16% 160 169 – income card issuing up 14% 140 – stable income from acquiring Point of sales 120 100 z Increased card penetration in existing client base during 2005 80 z Future income potential from 60 incr
Slide 31: Net gains/losses on items at fair value
Net gains/losses on items at fair value EURm YoY: 240 z Up 15% 220 200 216 214 z Strong result in Markets and 180 Life 179 z Return in Treasury, Group 160 140 Investment, 3.1% 147 139 – ahead of return target 3.0% 120 100 115 QoQ: 80 z Up 6% 60 77 63 z Stable result at high level in 40 Markets and L
Slide 32: Net gains/losses on items at fair value
Net gains/losses on items at fair value EURm Q4/05 Q3/Q5 Q2/05 Q1/05 Q4/04 Markets 132 121 135 118 127 Life 33 32 23 3 15 Group Investment, Treasury -21 0 52 9 52 Group Funding, Treasury -10 -21 16 -24 -14 Other 13 7 -12 9 -1 Total 147 139 214 115 179 32
Slide 33: Expenses
Expenses YoY: EURm z Expenses unchanged at EUR 1,000 979 956 3,668m (EUR 3,655m 2004) 43 914 896 31 903 908 902 35 45 41 865 413 34 31 393 z Structural cost savings and 39 800 339 380 353 364 345 efficiency gains compensating 334 – increased business volumes – inflation 600 z Staff costs up 3% affec
Slide 34: Expenses within flat cost target
Expenses within flat cost target EURm 4,000 z Flat cost target excludes: 3,500 – costs in Life 3,502 3,494 – depreciation of operational leasing 3,000 z Lower costs 2005 2,500 z Flat cost target for the banking 2,000 business through 2007 1,500 1,000 500 0 2004 2005 34
Slide 35: Number of FTEs
Number of FTEs z No. of FTEs unchanged – incl. Polish pension acquisition of 75 FTEs 32,000 29,880 29,289 z No. of retirements in 2006-2007 28,000 29,140 28,929 28,725 28,824 28,730 28,925 approx. 850 per year (450 in 2005) 24,000 20,000 FTEs 2005 Q3/05 2004 16,000 Retail 17,373 17,266 17,286 12,000
Slide 36: Loan losses - reversals exceeding new provisions
Loan losses - reversals exceeding new provisions EURm YoY: 60 z Positive loan losses EUR 40 42 137m (EUR –27m 2004) 20 z Sale of shares in Pan-Fish, 0 -3 -2 -10 -6 recovery of EUR 98m (Q2) -23 -7 -20 QoQ: -40 z Credit quality remains strong in all markets -60 -80 z Reversals exceeded new provisions
Slide 37: Impaired loans
Impaired loans z Impaired loans gross continue to fall, mainly as impaired loans start to perform z Net impaired loans as per cent of total lending down to 18bp EURm. End of period Q4/05 Q3/05 Q2/05 Q1/05 Q4/04 Impaired loans, gross 1,819 1,994 2,006 2,097 2,249 Reserves -1,480 -1,545 -1,581 -1,657
Slide 38: Taxes
Taxes z Effective tax rate 2005 approx. 26% z Tax cost increased in Q4 related to taxation of derivatives based on a ruling in Norway – EUR 67m – Nordea aims at reclaiming the amount z A revaluation of the deferred tax asset in Finland partly compensated for the increase z Revaluation of tax asset r
Slide 39: Net profit
Net profit EURm YoY: 800 z Up 28% when adjusted for real- 700 705 705 estate gain 2004 600 z Up 9% reported 563 500 495 506 459 476 400 438 QoQ: 300 z Higher tax rate in Q4 200 100 0 04 04 04 04 05 05 05 05 1/ 2/ 3/ 4/ 1/ 2/ 3/ 4/ Q Q Q Q Q Q Q Q 39
Slide 40: Earnings per share up 34% in 2005 - excl. real estate gain
Earnings per share up 34% in 2005 - excl. real estate gain EUR 1.0 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0.0 03 03 03 03 04 04 04 04 05 05 05 05 1/ 2/ 3/ 4/ 1/ 2/ 3/ 4/ 1/ 2/ 3/ 4/ Q Q Q Q Q Q Q Q Q Q Q Q Excl. real estate gains/losses and tax issues Reported 12 month rolling 40
Slide 41: Return on equity
Return on equity % 20 z Well above target of 18 > 15% in 2005 18.0 16 16.9 z Relative improvement 14 14.5 stronger than Nordic 12 peers 10 8 6 4 2 0 2004 2005 Reported Excl. real estate gains 41
Slide 42: Risk-weighted assets (RWA)
Risk-weighted assets (RWA) EURbn 180 YoY 160 169 153 159 162 z RWA up 17% 140 145 140 140 120 135 z Total lending up 17% 100 z Growth in RWA reflects strong 80 increase in business volumes 60 – SME lending – mortgage lending 40 – structured products in Markets 20 QoQ 0 z RWA up 4% 04 04 04 04 05 05
Slide 43: Total income/RWA
Total income/RWA RWA Income% EURbn of RWA 200 1.5 180 1.4 160 169 1.3 159 162 140 153 1.2 1.17 1.18 145 140 140 1.14 135 120 1.1 1.07 1.04 1.03 100 0.99 1.00 1.0 80 0.9 60 0.8 40 0.7 20 0.6 0 0.5 04 04 04 04 05 05 05 05 1/ 2/ 3/ 4/ 1/ 2/ 3/ 4/ Q Q Q Q Q Q Q Q 43
Slide 44: Capital position
Capital position Tier 1 ratio % 8 z Tier 1 ratio 6.8% 7 7.6 7.3 – strong volume growth 6.8 7.0 6.8 7.0 7.0 6.8 6 – buy-back of 50m shares in Q4 reduced 5 Tier 1 ratio by approx. 20bp 4 z EUR 73m hybrid capital issued Q4 3 – Hybrid instrument 15% of Tier 1 capital 2 1 z Total capital ratio at 9.2% 0
Slide 45: Increased dividend by 25% per share proposed
Increased dividend by 25% per share proposed z Per share, EUR 0.35 (0.28) z Total, EURm 908 (766) z Pay-out ratio 40% (40%) z Dividend yield (share price Dec 30, 2005) 4.0% z Ex dividend date 6 April z Record date 10 April z Payment date 19 April 45
Slide 46: Repurchase of own shares
Repurchase of own shares z Repurchase programme activated on 26 Oct 2005 of 50 million shares or 2% of outstanding shares – completed 24 Nov 2005 z Nordea repurchased approx. 140m shares in 2005 – by end of 2005 Nordea held in total approx. 112m shares to be cancelled at AGM 5 April 2006 z New manda
Slide 47: Business trends
Business trends 47
Slide 48: Total lending
Total lending EURbn 200 188.5 182.1 180 170.1 175.1 161.1 160 147.3 147.0 147.0 148.7 148.2 155.5 154.5 143.4 145.7 145.6 141.9 140 120 100 80 60 40 20 0 02 02 02 02 03 03 03 03 04 04 04 04 05 05 05 05 1/ 2/ 3/ 4/ 1/ 2/ 3/ 4/ 1/ 2/ 3/ 4/ 1/ 2/ 3/ 4/ Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Corporate Housing
Slide 49: Households mortgages, volumes and margins
Households mortgages, volumes and margins EURbn % 70 1.6 65 1.5 64.5 60 60.4 62.6 1.4 55 56.3 57.7 1.3 54.5 50 52.6 1.2 48.9 50.0 45 48.2 1.1 45.7 43.6 44.3 40 42.0 41.3 42.4 1.0 35 0.9 30 0.8 25 0.7 20 0.6 15 0.5 10 0.4 5 0.3 0 0.2 02 02 02 02 03 03 03 03 04 04 04 04 05 05 05 05 1/ 2/ 3/ 4/ 1/ 2/ 3
Slide 50: Time to repricing in mortgage book, EUR 64.5bn
Time to repricing in mortgage book, EUR 64.5bn z Current market prices and margins largely reflected in NII in mortgage book – since loans to variable rates dominate z Increased share of fixed lending in Q4 9 Rates are normally fixed to maturity – remortgaging a client option if market conditions ar
Slide 51: Retail consumer lending, volumes and margins
Retail consumer lending*, volumes and margins EURbn % 18 4.5 16 4.0 15.4 15.0 14 14.5 3.5 13.8 13.4 13.0 12 12.2 12.2 12.4 12.4 12.4 12.7 3.0 10 2.5 8 2.0 6 1.5 4 1.0 2 0.5 0 0.0 03 03 03 03 04 04 04 04 05 05 05 05 1/ 2/ 3/ 4/ 1/ 2/ 3/ 4/ 1/ 2/ 3/ 4/ Q Q Q Q Q Q Q Q Q Q Q Q Retail consumer lending R
Slide 52: Lending to corporates, SME, volumes and margins
Lending to corporates, SME, volumes and margins % EURbn 70 1.8 70.0 65 65.3 67.9 1.7 63.9 60 61.0 1.6 55 57.3 57.3 57.4 58.2 58.5 1.5 56.6 57.1 56.8 56.3 55.2 55.2 50 1.4 45 1.3 40 1.2 35 1.1 30 1.0 25 0.9 20 0.8 15 0.7 10 0.6 5 0.5 0 0.4 02 02 02 02 03 03 03 03 04 04 04 04 05 05 05 05 1/ 2/ 3/ 4/ 1
Slide 53: CIB, lending volumes and margins
CIB*, lending volumes and margins EURbn % 30 1.5 28 1.4 26 1.3 24 1.2 23.7 24.0 24.0 23.5 22 22.6 1.1 21.7 21.4 21.4 21.7 20 20.3 20.8 21.3 1.0 18 18.4 19.0 0.9 18.1 18.0 16 0.8 14 0.7 12 0.6 10 0.5 8 0.4 6 0.3 4 0.2 2 0.1 0 0.0 02 02 02 02 03 03 03 03 04 04 04 04 05 05 05 05 1/ 2/ 3/ 4/ 1/ 2/ 3/ 4/
Slide 54: Total deposits
Total deposits EURbn 120 115.6 110 104.7 105.2 105.7 108.0 100 94.2 94.6 95.6 97.7 97.1 89.7 92.6 91.1 92.9 92.2 90 88.1 80 70 60 50 46.9 47.0 40 40.7 41.7 41.3 42.3 42.9 43.8 44.1 45.7 38.1 39.2 39.8 40.2 40.4 37.3 30 20 10 0 02 02 02 02 03 03 03 03 04 04 04 04 05 05 05 05 1/ 2/ 3/ 4/ 1/ 2/ 3/ 4/ 1
Slide 55: Retail deposits, households, volumes and margins
Retail deposits, households, volumes and margins EURbn % 50 2.5 45 45.7 46.9 47.0 2.3 43.8 44.1 42.3 42.9 40 40.2 40.7 41.7 41.3 40.4 2.1 39.2 39.8 37.3 38.1 35 1.9 30 1.7 25 1.5 20 1.3 15 1.1 10 0.9 5 0.7 0 0.5 02 02 02 02 03 03 03 03 04 04 04 04 05 05 05 05 1/ 2/ 3/ 4/ 1/ 2/ 3/ 4/ 1/ 2/ 3/ 4/ 1/ 2
Slide 56: Structural Interest Income Risk (SIIR)
Structural Interest Income Risk (SIIR) EURm, annualised effect on NII* 2005 Q3/05 2004 Increasing market rates, 100bp 154 140 192 Decreasing market rates, 100bp -175 -182 -200 z Reduced sensitivity YoY following implementation of ALM strategy z Increased short-term interest rates and volume effect i
Slide 57: Retail deposits, SME, volumes and margins
Retail deposits, SME, volumes and margins EURbn % 40 1.6 35 1.4 33.4 30 30.5 30.1 31.5 1.2 28.9 28.8 29.4 27.7 28.3 28.4 25 25.5 26.3 26.5 26.2 26.3 26.7 1.0 20 0.8 15 0.6 10 0.4 5 0.2 0 0.0 02 02 02 02 03 03 03 03 04 04 04 04 05 05 05 05 1/ 2/ 3/ 4/ 1/ 2/ 3/ 4/ 1/ 2/ 3/ 4/ 1/ 2/ 3/ 4/ Q Q Q Q Q Q Q
Slide 58: CIB, deposit volumes and margins
CIB*, deposit volumes and margins EURbn % 24 1.2 22 23.2 1.1 22.1 20 21.0 20.4 1.0 18 18.5 0.9 17.9 18.0 16 0.8 15.4 15.2 14 14.2 14.4 14.9 0.7 13.3 12 12.6 13.0 13.1 0.6 10 0.5 8 0.4 6 0.3 4 0.2 2 0.1 0 0.0 02 02 02 02 03 03 03 03 04 04 04 04 05 05 05 05 1/ 2/ 3/ 4/ 1/ 2/ 3/ 4/ 1/ 2/ 3/ 4/ 1/ 2/ 3/
Slide 59: Assets under Management
Assets under Management EURbn YoY 160 150.6 141.7 146.7 z Up 15% supported by strong 140 130.6 135.8 equity markets 120 – net inflow EUR 5.4bn 100 – asset appreciation EUR 14.6bn 80 – asset shift towards equities 60 z Launch of several new 40 successful products 20 0 z Largest number of four and fiv
Slide 60: Net inflows
Net inflows EURbn 4.0 YoY 3.0 1.2 2.7 z Net inflow EUR 5.4bn 2.0 1.1 z Inflow of EUR 3.0bn to Nordic 0.8 0.8 Retail funds and EUR 3.4bn to 1.0 Nordic Private Banking 0.0 z Net outflow from Institutional clients EUR 1.1bn and from -1.0 European Fund Distribution -2.0 EUR 1.0bn Q4/04 Q1/05 Q2/05 Q3/05
Slide 61: Retail Banking operating profit
Retail Banking operating profit YoY EURm z Up 18% to EUR 2,194m 600 – strong growth in volumes 550 584 575 570 – increased no. of core customers 500 519 z Double-digit growth in business 450 465 465 volumes off-set margin pressure 400 425 444 z Increase in income from Private 350 Banking and other s
Slide 62: CIB operating profit
CIB operating profit YoY EURm z Up 19% to EUR 563m 180 – income up 10% 160 – costs unchanged 140 149 147 151 z Growth in volumes 138 120 129 127 z Strong year for Shipping and 118 Acquisition Finance 100 z Strong result in Markets 80 79 z Growth in Poland and Baltic countries 60 QoQ 40 z Up 9% 20 z
Slide 63: Asset Management, product result
Asset Management, product result YoY EURm 100 z Product result up 30% – increased AuM 90 96 – improved income margin 80 z Successful launch of new retail 70 77 funds 67 z Strong year for Private Banking 60 63 65 59 57 50 55 QoQ 40 z Strong result - up 25% 30 z Income margin up 8bp to 64bp 20 – produ
Slide 64: Life Insurance, product result
Life Insurance, product result EURm YoY 70 z Product result up 7% 60 65 z Net written premiums up 22% 57 – unit-linked premiums up 62% 56 50 53 49 52 z Market share Swedish private Life 47 48 & Pension improved to 7.9% (2.6%) 40 z Significantly improved buffers 30 supported by strong equity markets
Slide 65: Group Treasury, operating profit
Group Treasury, operating profit EURm 100 YoY 80 81 55 60 z Operating profit maintained at 60 40 6 high level in Group Investment as 22 3 20 well as in Group Funding 0 -20 z 3.1% investment return in Group -40 -14 Investment (return target 3.0%) -60 -27 QoQ -80 -100 z Good result in Group Funding 04
Slide 66: In summary - 2005
In summary - 2005 z Nordea’s best year so far z Strong performance and record results in all business areas z Gap between income and cost development 7 percentage points z Strong volume growth in all business areas - more than offset margin pressure z Positive loan losses for 7th consecutive quarter
Slide 67: Facts & Figures
Facts & Figures 67
Slide 68: Facts & Figures, content
Facts & Figures, content z Credit quality Page 69 z Economic capital Page 78 z Business areas Page 81 z Balance sheet Page 114 z Market shares Page 117 z Appendix Page 125 68
Slide 69: Credit quality
Credit quality 69
Slide 70: Loan portfolio by customer category
Loan portfolio by customer category* EURbn 100 100 97 90 93 91 80 85 84 82 83 84 78 79 80 70 60 63 65 58 60 50 55 56 53 48 49 50 40 44 46 30 20 18 19 19 20 16 16 17 17 17 10 14 15 15 0 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05 Corporate lending Housing loans Consumer lo
Slide 71: Loan portfolio by customer group
Loan portfolio by customer group End 2005, EUR 188.4bn End 2004, EUR 161.1bn Public Public sector sector 2% 2% Household Household customers customers Companies Companies 45% 46% 52% 53% 71
Slide 72: Lending to household customers
Lending to household customers End of 2005 EUR 84.6bn z Strong growth Other loans 24% z Other loans comprise – consumer credits – investment credits – car financing – overdraft facilities – credit cards – home equity credits Housing loans 76% 72
Slide 73: Lending to companies by industry
Lending to companies by industry End of 2005 EUR 100.0bn Shipping & Offshore Construction Transport and 5% 3% communication 5% Real estate 26% Agriculture & Fishing 6% Renting, consulting and other services 10% Manufactoring Commerce and 13% services 10% Other companies Finance 11% 11% 73
Slide 74: Loan portfolio in figures
Loan portfolio in figures EURbn Q4/05 Q3/05 Q2/05 Q1/05 Q4/04 Household customers 84.6 81.7 78.9 75.3 73.4 Real estate 26.2 25.6 25.1 24.7 23.5 Construction 2.9 3.1 2.6 2.9 2.9 Transport, communication 5.6 5.1 5.6 4.9 4.6 Trade and services 9.9 9.9 9.8 9.4 8.6 Manufacturing 13.4 12.6 12.9 12.7 12.0
Slide 75: Lending by geographical area
Lending by geographical area End of 2005 EUR 188.4bn Asia USA 0.7% 1.3% Latin America Nordic countries 0.6% and P&B Other non OECD 92.6% 0.5% Other 7.4% Other OECD 0.4% Other EU countries Nordic countries and P&B 3.9% z Denmark 50.4 z Finland 38.2 z Norway 29.7 z Sweden 52.8 z P&B 3.3 75
Slide 76: Impaired loans
Impaired loans EURm. End of 2005 Gross Provisions Net Household customers 446 316 150 Real estate 155 129 26 Construction 49 39 10 Transport, communication 57 54 3 Trade and services 193 150 43 Manufacturing 368 348 20 Finance 29 24 5 Renting, Consulting and other services 139 122 17 Other companies
Slide 77: Loan losses
Loan losses EURm 200 YoY: 192 150 z Positive loan losses EUR 137m 157 156 131 (EUR –27m 2004) 100 129 127 91 z Sale of shares in Pan-Fish, 50 recovery of EUR 98m (Q2) 0 -23 -3 -2 -10 -6 -7 QoQ: -50 -97 -101 z Credit quality remains strong in -100 -132 -129 -141 all markets -150 -163 z Reversals exce
Slide 78: Economic capital
Economic capital 78
Slide 79: Economic capital (EC)
Economic capital (EC) EURbn 10.0 z EC up 7% or EUR 0.6bn in 2005 9.0 8.8 8.9 9.0 z Increased business volumes 8.0 8.4 8.3 7.0 EC per business area, 6.0 EURbn 2005 Retail Banking 5.5 5.0 4.0 CIB 1.9 3.0 Asset Mgmt 0.1 2.0 Life 1.0 1.0 Treasury 0.4 0.0 Other 0.1 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05 Total 9.0
Slide 80: Economic capital
Economic capital End of 2005 Distribution by business area Distribution by risk category Asset Mgmt Treasury Other Operational Life risk & Life 5% 1% Business risk 1% 12% risk 9% 10% CIB Market risk 21% Retail 16% Credit risk 61% 64% 80
Slide 81: Retail Banking
Retail Banking 81
Slide 82: Retail Banking
Retail Banking Jan-Dec Jan-Dec EURm Chg, % 2005 2004 Net interest income 3,051 2,914 5 Commission income 1,301 1,191 9 Net gains/losses 225 185 22 Equity method 26 27 -4 Other income 72 71 1 Operating income 4,675 4,388 7 Staff costs -1,050 -1,057 -1 Other expenses -1,469 -1,443 2 Depreciations -59
Slide 83: Retail Banking lending and deposit volumes
Retail Banking lending and deposit volumes Lending, EURbn Q4/05 Q3/05 Q2/05 Q1/05 Q4/04 Q3/04 Q2/04 Q1/04 Denmark 45.1 43.2 41.3 38.5 37.4 36.0 35.5 34.3 Finland 35.6 34.8 33.8 32.4 31.6 30.4 29.5 28.3 Norway 25.2 24.3 23.3 21.8 20.4 19.9 19.9 19.2 Sweden 46.1 45.2 43.3 44.0 42.6 40.9 40.0 38.3 Depo
Slide 84: Retail Banking breakdown of lending
Retail Banking breakdown of lending Denmark, EURbn Q4/05 Q3/05 Q2/05 Q1/05 Q4/04 Q3/04 Q2/04 Q1/04 Corporate 18.1 17.0 16.1 14.7 14.3 13.7 13.8 13.4 Household mortgages 19.6 18.8 17.9 17.2 16.8 16.4 15.9 14.6 Consumer lending 5.8 5.8 5.7 5.5 5.3 5.2 5.1 5.0 Finland, EURbn Q4/05 Q3/05 Q2/05 Q1/05 Q4/
Slide 85: Retail Banking breakdown of lending
Retail Banking breakdown of lending Norway, EURbn Q4/05 Q3/05 Q2/05 Q1/05 Q4/04 Q3/04 Q2/04 Q1/04 Corporate 12.0 11.5 11.1 10.6 10.4 10.3 10.4 10.1 Household mortgages 10.9 10.6 10.5 9.9 9.7 9.3 9.2 8.5 Consumer lending 2.4 2.1 1.8 1.3 1.1 0.9 0.8 0.8 Sweden, EURbn Q4/05 Q3/05 Q2/05 Q1/05 Q4/04 Q3/0
Slide 86: Retail Banking breakdown of deposits
Retail Banking breakdown of deposits Denmark, EURbn Q4/05 Q3/05 Q2/05 Q1/05 Q4/04 Q3/04 Q2/04 Q1/04 Corporate 7.8 8.0 7.2 6.8 7.2 7.1 7.2 6.7 Households, current 3.2 3.1 3.1 2.9 2.9 2.9 2.9 2.6 accounts Households, savings 9.4 9.5 9.0 8.4 8.1 7.8 7.7 6.6 accounts Finland, EURbn Q4/05 Q3/05 Q2/05 Q1/
Slide 87: Retail Banking breakdown of deposits
Retail Banking breakdown of deposits Norway, EURbn Q4/05 Q3/05 Q2/05 Q1/05 Q4/04 Q3/04 Q2/04 Q1/04 Corporate 7.4 6.9 6.3 6.2 5.7 5.6 5.7 5.7 Households, current 1.8 1.7 1.7 1.4 1.4 1.4 1.4 1.2 accounts Households, savings 3.7 3.9 3.8 3.6 3.5 3.5 3.4 3.5 accounts Sweden, EURbn Q4/05 Q3/05 Q2/05 Q1/05
Slide 88: Retail Banking margins
Retail Banking margins % Q4/05 Q3/05 Q2/05 Q1/05 Q4/04 Q3/04 Q2/04 Q1/04 Lending to SME’s 1.04 1.06 1.09 1.12 1.13 1.13 1.19 1.21 Mortgages, households 0.75 0.80 0.83 0.89 0.90 0.91 0.95 0.99 Consumer loans, 3.45 3.59 3.87 3.97 4.10 4.09 4.18 4.21 households Deposits, SME’s 0.85 0.83 0.89 0.86 0.92
Slide 89: Payments & transactions
Payments & transactions 89
Slide 90: E-banking customers, all clients
90 Ja 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 Ju n-0 ne 0 Mill. No -00 Ap v-0 0 Se ril-0 p 1 Fe t-01 b Ju -02 ly De -02 M c-02 ay O -03 c M t-03 a Au r-04 E-banking customers g Ja -04 n Ju -05 n No -05 v- 05 Q 0 5 10 15 20 25 30 35 40 45 50 55 1/ Mill. Q 00 3/ E-banking customers, all clients Q 00 1/ Q 01 3
Slide 91: Cards, all clients
91 Ja n 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 Mill. M -01 a Se y-0 pt 1 Ja -01 n M -02 ay Se -02 pt Ja -02 n M -03 ay Se - 03 p Ja - 03 n M -04 ay Cards, all clients Se - 04 p- Ja 04 n M -05 Issued debit and credit cards ay Se - 05 p- 05 Q 0 20 40 60 80 100 120 140 160 180 Mill. 1/ 01 Q 3/ 01
Slide 92: Payment transactions, households
Payment transactions, households Mill. 180 160 140 120 100 80 60 40 20 0 01 01 01 01 02 02 02 02 03 03 03 03 04 04 04 04 05 05 05 05 1/ 2/ 3/ 4/ 1/ 2/ 3/ 4/ 1/ 2/ 3/ 4/ 1/ 2/ 3/ 4/ 1/ 2/ 3/ 4/ Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Manual transactions Payments ATM Card payments Cash withdrawal ATMs
Slide 93: Payment transactions, households
Payment transactions, households Mill. 2005 2004 2003 2002 2001 Manual transactions 100.1 103.9 112.5 125.3 141.0 Payterminals 19.7 23.6 27.1 31.7 34.3 Card payments 603.6 527.8 459.9 395.5 333.5 Cash withdrawal ATM 181.7 190.4 197.4 204.4 207.2 Direct debit 101.3 98.5 86.1 81.5 78.5 E-banking payme
Slide 94: Corporate and Institutional Banking (CIB)
Corporate and Institutional Banking (CIB) 94
Slide 95: Corporate and Institutional Banking
Corporate and Institutional Banking Jan-Dec Jan-Dec EURm Chg, % 2005 2004 Net interest income 426 404 5 Commission income 348 332 5 Net gains/losses 284 224 27 Equity method 21 19 11 Other income 15 18 -17 Operating income 1,094 997 10 Staff costs -322 -294 10 Other expenses -238 -268 -11 Depreciati
Slide 96: CIB lending and deposit volumes and margins
CIB lending and deposit volumes and margins Lending, EURm Q4/05 Q3/05 Q2/05 Q1/05 Q4/04 Q3/04 Q2/04 Q1/04 Corporate Banking Division 11.1 10.9 12.0 12.8 10.8 11.3 12.1 10.7 Financial Institutions Division 1.7 1.8 2.0 2.0 1.4 1.6 2.1 1.4 International and Shipping Division 8.5 8.1 7.7 6.5 5.9 6.1 6.1
Slide 97: Nordea operations in Poland and the Baltic countries
Nordea operations in Poland and the Baltic countries End of 2005 Estonia Latvia Lithuania Poland Total Customers 44,000 32,100 16,500 325,800 418,400* Branches/salespoints 10 12 8 41 71 Number of FTEs 242 234 162 855 1,503 Total assets, EURm 1,058 832 831 1,620 4,341 Lending, EURm 889 820 673 1376 3
Slide 98: Asset Management & Life
Asset Management & Life 98
Slide 99: Asset Management
Asset Management Jan-Dec Jan-Dec EURm Chg, % 2005 2004 Net interest income 40 36 11 Commission income 286 255 12 Net gains/losses 20 16 25 Equity method 0 0 0 Other income 12 9 33 Operating income 358 316 13 Staff costs -111 -94 18 Other expenses -85 -96 -11 Depreciations -2 -2 0 Operating expenses
Slide 100: Break down of AuM by market and channels
Break down of AuM by market and channels Retail Fund sales funds* through Private Institutional Life & AuM, Q4/05, (sold through EURbn third-parties Banking clients Pensions own distribution) Denmark 16.9 - 13.9 9.9 17.4** 58.1 Finland 6.9 - 14.4 4.0 8.0 33.3 Norway 2.3 - 1.3 3.4 4.2 11.2 Sweden 17.
Slide 101: Margin development – Asset Management
Margin development – Asset Management Bps QoQ 70 60 z Improved income margin 50 following launch of new high- 40 margin products 30 20 z Expenses margin up due to 10 higher personnel expenses 0 -10 z Result margin up affected by -20 strong top-line growth -30 -40 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05 Income
Slide 102: Asset structure
Asset structure* 2004 2005 Int'l. fixed Int'l. fixed income income 13% 13% Nordic Nordic Nordic equities equities fixed 14% 14% Nordic income fixed 45% income 53% Int'l. equities Int'l. 20% equities 28% *Average AuM for Asset Management activities excl. Nordic Private Banking activities, in Q4 this
Slide 103: European Fund Distribution
103 Q -1,000 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 EURm 3/ 00 Q 4/ 00 Q 1/ 01 Q 2/ 01 Q 3/ 01 Q 4/ 01 Q 1/ 02 Q 2/ 02 Q 3/ 02 Q 4/ 02 Q 1/ 03 Q European Fund Distribution 2/ Inflow 03 Q 3/ 03 Q 4/ 03 AUM Q 1/ 04 Q 2/ 04 Q 3/ 04 Q 4/ 04 Q 1/ 05 Q 2/ 05 Q 3/ 05 Q 4/ 05
Slide 104: Life - breaking out profit drivers
Life - breaking out profit drivers z Fee based on size of life provisions in “with profit” companies – DK, FI, SE II Fee contribution z Profit-sharing from the Norwegian business (existing model, change pending) Contribution from cost z 25% of surplus/deficit from cost result in DK, 100% from FI and
Slide 105: Life - profit drivers
Life - profit drivers EURm Q4/05 Q3/05 Q2/05 Q1/05 Q4/04 Traditional insurance Fee contribution/profit sharing 33 43 35 30 24 Contribution from cost result -1 0 0 1 1 Contribution from risk result 10 7 2 5 2 Inv. return on Shareholders Equity 1 3 4 3 2 Other profits 6 7 5 3 15 Total Profit Tradition
Slide 106: Life - investments
Life - investments EURbn 29.9 30 29.0 27.1 28.4 z Equities 26.4 25 – predominantly listed equities 20 – 1/3 Nordic, 2/3 international z Bonds 15 – ¾ Nordic issuers 10 – primarily govmn’t & mortgage inst. 5 0 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05 Equities Bonds Real estate Unit linked Alternative investments
Slide 107: Life - asset allocation
Life - asset allocation Total, EURbn Equities, % Q4/05 Q3/05 Q4/05 Q3/05 Denmark 13.7 13.5 23 22 Finland 8.0 7.7 21 20 Norway 4.2 4.0 15 15 Sweden 3.1 3.0 2 3 Total 29.0 28.2 19 18 107
Slide 108: Life - solvency situation
Life - solvency situation End of 2005 Required Actual Solvency Solvency in % EURm solvency solvency buffer of requirement Denmark 501 574 73 115 Finland 228 683 455 299 Norway* 138 256 118 185 Sweden* 69 98 29 143 *excluding unit linked companies 108
Slide 109: Life – solvency sensitivity
Life – solvency sensitivity End of 2005 Denmark Finland Norway Sweden Solvency in % of requirement 115 299 185 143 Equities drop 12% 115 229 185 143 Interest rates down 50bp 112 329 185 145 Interest rates up 50bp 117 275 185 141 109
Slide 110: Life – financial buffers
Life – financial buffers* EURm % of total provisions Q4/05 Q3/05 Q4/05 Q3/05 Denmark 1,172 1,055 10.5 9.5 Finland 278 338 5.2 6.5 Norway 181 102 5.6 2.9 Sweden 24 20 1.4 1.1 Total 1,654 1,515 7.7 7.1 * Financial buffers are defined in accordance with local regulations and practices 110
Slide 111: Life – buffer sensitivity
Life – buffer sensitivity End of 2005 EURm Denmark Finland Norway Sweden Financial buffers* 1,172 278 181 24 Equities drop 12% 937 118 124 24 Interest rates down 50bp 1,276 338 186 26 Interest rates up 50bp 1,131 223 177 19 111
Slide 112: Group Treasury
Group Treasury 112
Slide 113: Group Treasury
Group Treasury Group Investment Group Funding EURm 2005 2004 2005 2004 2005 2004 Net interest income 110 97 -60 -44 170 141 Commission income -6 -7 -3 -5 -3 -2 Net gains/losses 1 31 40 48 -39 -17 Equity method 7 0 7 0 0 0 Other income 25 22 25 24 0 -2 Operating income 137 143 9 23 128 120 Staff cost
Slide 114: Balance sheet
Balance sheet 114
Slide 115: Balance sheet
Balance sheet EURm End of 2005 End of 2004 Treasury bills and other eligible bills 7,280 8,608 Loans and receivables to credit institutions 31,578 24,774 Loans and receivables to the public 188,460 161,060 Derivatives 28,876 26,366 Other assets 69,355 59,266 Total assets 325,549 280,074 Deposits by
Slide 116: Capital base
Capital base EURm Q4/05 Q3/05 Q2/05 Q1/05 Q4/04 Core equity 12,918 12,946 12,344 12,474 12,549 Hybrid capital loans 1,472 1,395 1,387 914 757 Deferred tax assets -327 -460 -449 -448 -401 Goodwill -1,794 -1,804 -1,799 -1,771 -1,658 Other items net -831 -696 -431 -826 -651 Tier 1 capital 11,438 11,381
Slide 117: Market shares
Market shares * Mainly statistics from Dec 2005 117
Slide 118: Market position in Nordic markets
Market position in Nordic markets Market shares Denmark Finland Norway Sweden Personal customers - mortgage lending 16.9% 31.7% 11.7% 15.8% - consumer lending 15.3% 30.1% 10.9% 9.2% - deposits 21.4% 33.8% 8.2% 18.4% Corporate customers - lending 20.2% 35.3% 16.6% 14.0% - deposits 23.5% 40.7% 17.1% 2
Slide 119: Personal customer deposits - market volume & share
119 De D c ec 0 100 200 300 400 500 0 100 200 300 400 500 600 Fe -0 2 Fe -0 2 b- b Ap 03 DKKbn A - 05 NOKbn pr Ju r- 03 Ju - 05 Au n-0 A n-0 g 3 ug 5 O - 03 c O - 05 c De t- 03 D t- 05 ec Fec-0 b 3 Fe -0 5 b Ap - 04 r A - 05 Ju - 04 pr n Au -0 Ju - 05 g 4 A n-0 O - 04 ug 5 c O - 05 De t- 0 c Norway
Slide 120: Corporate deposits - market volume & share
120 D D ec ec 0 100 200 300 400 0 100 200 300 400 Fe -0 2 Fe -0 2 b b DKKbn NOKbn A - 03 A - 03 pr pr J u - 03 Ju - 03 A n-0 A n-0 ug 3 ug 3 O -0 c 3 O - 03 c D t- 03 D t- 03 ec ec Fe -0 3 Fe -0 3 b b A - 04 A - 04 pr pr J u - 04 Ju - 04 A n-0 ug 4 A n-0 O -0 ug 4 c 4 O - 04 D t- 04 c Norway Denmark
Slide 121: Personal customer lending - market volume & share
121 D D e ec 0 100 200 300 400 1000 0 200 400 600 800 Fec-0 Fe -0 2 b 2 b DKKbn NOKbn A - 03 A - 03 p pr J u r- 03 Ju - 03 A n-0 A n-0 ug 3 ug 3 O - 03 O - 03 c c D t- 0 D t- 03 ec 3 ec Fe -0 Fe -0 3 b 3 b A - 04 p A - 04 pr J u r- 04 Ju - 04 A n-0 A n-0 ug 4 ug 4 O - 04 c O - 04 c D t- 0 Norway Den
Slide 122: Mortgage lending households - market volume & share
122 D ec D 0 200 400 600 800 Fe -0 2 ec 0 200 400 600 800 1000 b -0 M 2 NOKbn A - 03 DKKbn pr ar Ju - 03 -0 Ju 3 A n-0 n- ug 3 0 O - 03 S 3 c ep - D t- 03 D 03 ec ec Fe -0 -0 b 3 M 3 A - 04 ar pr -0 Ju - 04 Ju 4 A n-0 n- ug 4 0 O - 04 O 4 c ct -0 D t- 0 D 4 Norway Denmark ec 4 ec Fe -0 4 -0 b M 4 A
Slide 123: Corporate lending - market volume & share
123 D D ec ec 0 100 200 300 400 500 600 0 100 200 300 400 500 Fe -0 2 Fe -0 2 b b DKKbn NOKbn A - 03 A - 03 pr pr J u - 03 Ju - 03 A n-0 A n-0 ug 3 ug 3 O -0 c 3 O - 03 c D t- 03 D t- 03 ec ec Fe -0 3 Fe -0 3 b b A - 04 A - 04 pr pr J u - 04 Ju - 04 A n-0 ug 4 A n-0 O -0 ug 4 c 4 O - 04 D t- 04 c No
Slide 124: Investment funds - market volume & share
124 D D ec ec 0 100 200 300 400 500 600 700 0 40 80 120 160 200 240 Fe -0 2 Fe -0 2 b b DKKbn A - 03 NOKbn A - 03 pr pr J u - 03 Ju - 03 A n-0 A n-0 ug 3 ug 3 O -0 O - 03 c c 3 D t- 0 D t- 03 ec ec 3 Fe -0 3 Fe -0 3 b b A - 04 A - 04 pr pr J u - 04 Ju - 04 A n-0 A n-0 ug 4 ug 4 O -0 O - 04 c c 4 D t
Slide 125: Appendix
Appendix 125
Slide 126: Total shareholder return (TSR) 2005, %
Total shareholder return (TSR) 2005, % Nordea peer group* COMMERZBANK HYPOVEREINSBANK SOCIETE UNICREDITO KBC DANSKE BANK SWEDBANK BNP PARIBAS SEB NORDEA DnB NOR ALLIED IRISH BANK HBOS ERSTE BANK ABN AMRO SHB BANK OF IRELAND LLOYDS TSB BARCLAYS RBOS 0 10 20 30 40 50 60 70 80 *As defined by Nordea 126
Slide 127: Largest registered shareholders, end of 2005
Largest registered shareholders, end of 2005 Shareholder Number of shares % Swedish state 515.6 19.9 Nordea Danmark fund 102.5 4.0 Alecta 79.8 3.1 Robur Funds 71.7 2.8 SBH/SPP Funds 70.3 2.7 SEB Funds 49.0 1.9 AMF Pension 43.5 1.7 Nordea Funds 41.6 1.6 Skandia Life Insurance 33.4 1.3 Second Swedish
Slide 128: Market development – interest rates
Market development – interest rates Change 30-09-05 30-12-05 % Q4/05 Short, EUR (one week) 2.07 2.33 +0.26 Long, EUR (5 years) 2.71 3.20 +0.49 Short, DK 2.16 2.40 +0.24 Long, DK 2.74 3.27 +0.53 Short, NO 2.02 2.32 +0.30 Long, NO 3.52 4.01 +0.49 Short, SE 1.54 1.54 +-0 Long, SE 2.78 3.37 +0.59 128
Slide 129: Macro data – Nordic market
Macro data – Nordic market % 2005e 2006e 2007e Gross domestic product DK 3.6 3.2 2.3 FI 1.9 3.9 2.8 NO 3.5 2.6 2.0 SE 2.8 3.6 2.8 Inflation DK 1.8 1.9 1.7 FI 0.9 1.3 1.5 NO 1.6 1.9 1.8 SE 0.5 1.3 2.0 Private consumption DK 4.6 2.9 2.1 FI 3.5 3.1 1.8 NO 3.8 2.3 2.1 SE 2.5 3.5 2.8 Unemployment DK 5.7
Slide 130: Financial calendar 2006
Financial calendar 2006 z Week 10: Annual Report expected to be published on www.nordea.com z 16-17 March, presentation of Market Consistent Embedded Value (MCEV) in Nordea’s Life operations in London and Stockholm respectively z Week 12: Annual Report will be available in print z AGM will be held o