Sampo Oyj · OMXHEX:SAMPO
Sampo Oyj — Sampo Bank — Debt Investor Presentation (February 2006)
28 slides from Sampo Oyj's debt investor presentation, February 2006
Slide 1: Sampo Bank plc Senior bond issue presentation
Sampo Bank plc Senior bond issue presentation February 2006 Sampo Group 2005 financial information is available on the website www.sampo.com/ir 1
Slide 2: Disclaimer
Disclaimer This document has been prepared for information purposes only. The investments and investment services referred to are not available to private customers within the meaning of the rules of the Financial Services Authority, nor for persons who are subject to US securities laws and should n
Slide 3: The Finnish Economy – Sampo Bank's Main Market
The Finnish Economy – Sampo Bank’s Main Market • Finland is a solid and wealthy economy, rated AAA by all three major rating agencies. Ratings reflect the strong economic fundamentals, which are underpinned by a sound macroeconomic policy track record, robust economic growth and Statistics investmen
Slide 4: Finland #1 on competitiveness scoreboard
Finland #1 on competitiveness scoreboard “In many ways the Nordics have entered virtuous circles where various factors reinforce each other to make them among the most competitive economies in the world” Augusto Lopez-Claros, Chief Economist and Director, Global Competitiveness Programme, World Econ
Slide 5: A Leading Finnish Financial Services Group
A Leading Finnish Financial Services Group Sampo Group was created from the merger of Sampo Sampo plc’s Ownership Structure and Leonia at the end of 2000. If P&C insurance group became part of Sampo Group in May 2004 at 31 December 2005 Sampo plc is a holding company and its subsidiaries include, e.
Slide 6: Sampo Group in Nutshell
Sampo Group in Nutshell • Holding company Sampo plc • Listed on Helsinki Stock Exchange • Group management and control Banking & Life insurance P&C insurance investment services # 3 bank in Finland # 2 life insurer in Finland # 1 insurer in Nordic countries # 2 in mutual funds Focus on unit-linked s
Slide 7: Strong overall market position
Strong overall market position 31 December 2005 Position P&C P&C premiums *) Nordic countries 1 Insurance Life insurance premiums Finland 2 Life insurance savings Finland 2 Long-term Unit-link life savings Finland savings 2 MF assets Finland 2 Credits Finland 3 Deposits Finland 3 Banking Payment ser
Slide 8: Sampo Group Results and Key Figures
Sampo Group Results and Key Figures EUR m 2005 Change 2004 Profit before taxes 1,295 347 948 Banking 316 42 274 P&C insurance 800 373 427 Life insurance 234 92 142 Other -49 -155 106 Group profit for the financial period 963 115 848 Earnings per share, EUR 1.68 1.46 EPS incl. change in fair value re
Slide 9: Group profit before taxes
Group profit before taxes EUR m 1 050 2005 2004 1 295 950 948 850 750 800 650 550 450 350 427 250 316 4-12/2004 274 150 234 142 50 -49 106 -50 Banking and P&C Life Other Sampo investment Insurance Insurance Group services Page 9
Slide 10: Sampo Bank Group
Sampo Bank Group Page 10
Slide 11: Sampo Bank - Third Largest Banking Group in Finland
Sampo Bank - Third Largest Banking Group in Finland Sampo Bank plc - the Finnish banking arm of the Sampo Group - is a wholly owned subsidiary of Sampo plc. Its long-term ratings are ‘A1’ (Moodys) and ‘A’ (S&P) The key business areas are retail and SME banking. The subsidiary Baltic companies of
Slide 12: Sampo Bank Group – Legal Structure and Ratings
Sampo Bank Group – Legal Structure and Ratings Sampoplc Sampo plc Moody’s Baa1 100% S&P A/A-1 Issuing entity SampoBank Sampo Bankplc plc Moody’s A1/P-1 100% 100% ASSampo AS SampoPank Pank Sampo Fund 100% SampoFund 81% Mandatum SampoHousing Housing Mandatum Sampo (Estonia) (Estonia) ManagementLtd Man
Slide 13: Sampo Bank Group - Key Figures (IFRS)
Sampo Bank Group - Key Figures (IFRS) 2005 2004 Profit before taxes 252 232 Return on equity,% (ROE) 18.4 16.6 Capital adequacy ratio,% 10.6 10.7 Tier 1 ratio,% 7.6 7.3 Cost to income ratio,% 60.9 63.4 Total assets, EUR m 23,207 19,819 Equity, EUR m 1,032 993 Deposits at year end, EUR m 11,442 10,43
Slide 14: Sampo Bank Group (in Finland) - Deposits and Lending
Sampo Bank Group (in Finland) - Deposits and Lending Strong growth in retail lending, EUR m especially in 20 000 housing loans 2,80 % 18 000 2,40 % 16 000 14 000 2,00 % 12 000 1,60 % 10 000 8 000 1,20 % 6 000 0,80 % 4 000 0,40 % 2 000 0 0,00 % 2Q 2 3Q 2 4Q 2 1Q 2 2Q 3 3Q 3 4Q 3 1Q 3 2Q 4 3Q 4 4Q 4 1
Slide 15: Financial performance of Sampo Bank Group
Financial performance of Sampo Bank Group IFRS figures semiannually 2004 – 2005 NII increase derives EUR million mainly from growth 200 in lending and Baltic 70 % operations. 150 65 % 100 60 % 50 55 % 0 50 % 1-6/2004 7-12/2004 1-6/2005 7-12/2005 NII Profit before taxes C/I (right hand scale) Page 15
Slide 16: Performance of Sampo Bank Group
Performance of Sampo Bank Group EUR million 700 600 145 Other income 151 500 3 10 400 154 Impairment on loans 144 and receivables 300 Net fee and 2 2 25 200 commission income 23 311 339 Net interest income 100 0 Other operating -100 -170 -181 expenses Staff costs -200 -300 -214 -208 Profit before ta
Slide 17: Sampo Bank Group's income structure
Sampo Bank Group’s income structure Transfer of investment services companies adds fee income EUR m Actual Pro forma Actual Pro forma 2005 2005 2004 2004 Fee and commission income Lending 39 39 34 35 Borrowing 20 20 20 20 Payment transactions 57 56 57 57 Asset management 6 101 5 78 Guarantees 13 13
Slide 18: Sampo Bank Group's Credit Risk Portfolio, December 2005
Sampo Bank Group’s Credit Risk Portfolio, 31 December 2005 A well diversified outstanding exposure Corporate and institutional customers; Corporate and institutional customers; exposure by rating (€ 14,6 bn) exposure by industry (€ 14,6 bn) Finance and insurance BB+ ... B+ B … CC 30.0 % 24.5 % 5.5 %
Slide 19: 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 32 23 20 13 10 9 2 1 1 1 0 1998 1999 2000 2001 2002 2003 2004 2005 Non-performing Non-interest earning Page 19
Slide 20: Credit impairment losses by year
Credit impairment losses by year EUR m 39 40 33 30 27 26 20 11 10 1 1 3 0 -10 -20 -22 -30 -25 -25 2002 2003 2004 2005 -40 -36 Reversals New impairment losses Net impairment Figures as of 2004 according to IFRS Page 20
Slide 21: Capital adequacy of Sampo Bank Group
Capital adequacy of Sampo Bank Group EUR m 2005 2004 Tier 1 1,255 1,000 Tier 2 488 475 - deductions from capital 1 2 Total capital 1,743 1,474 Risk-weighted assets (On-balance sheet and off-balance sheet items) 16,466 13,755 Capital adequacy ratio 10.6 % 10.7 % Tier 1 ratio 7.6 % 7.3 % Sampo Bank Gr
Slide 22: Sampo Bank – Funding Strategy
Sampo Bank – Funding Strategy Our aim is to minimize the impact of adverse market conditions in any instrument class, investor type, geographical area or maturity bracket. We do this by maintaining well diversified deposit base and actively issuing competitively prized debt and money market instru
Slide 23: Funding Structure of Sampo Bank plc and Sampo Housing Loan Bank plc
Funding Structure of Sampo Bank plc and Sampo Housing Loan Bank plc as of December 31, 2005 (EURm) Covered Tier 2 funding Bonds (992) (492) 5% 2% Demand deposits (8495) 43 % Tier 1 funding (346) 2% Bonds (3 355) 17 % Repo's (00) 0% Term deposits (1200) 6% Cd's and cp's Money market (3286) IB deposit
Slide 24: Sampo Bank plc, Programmes and Ratings
Sampo Bank plc, Programmes and Ratings • Sampo Bank plc EUR 5 bn EMTN Programme • Sampo Bank plc EUR 3 bn ECP Programme • Sampo Bank plc EUR 1 bn Domestic MTN Programme Rating Summary Moody’s Standard & Poors Short Term Long Term Senior Short Term Long Term Senior Sampo Bank plc P-1 A1 A-1 A Page 24
Slide 25: Key Investment Highlights
Key Investment Highlights • Strong market position in Finland and the Baltic countries • Well diversified lending book with focus on retail market – Housing loan book in Finland grew 26 per cent y-o-y in 2005 – Market share of housing loans rose to 15.5 per cent (14.3) • Good financial performance –
Slide 26: Summary of Terms
Summary of Terms Type of Issuance Senior Issuer Sampo Bank plc Issuer Rating A1 / A Expected Issue Ratings A1 / A Size of Offer EUR 500 million Maturity 3 years Format Floating rate Bookrunners IXIS CIB, RBS, Sampo Bank Listing London Documentation EMTN Use of Proceeds General funding purposes Page
Slide 27: Sampo Bank plc, Rating Agency Views
Sampo Bank plc, Rating Agency Views Moody’s S&P A1/P-1/Stable A/A-1/Stable “"The credit strengths of Sampo Bank “The upgrade of …Sampo Bank reflects are: Good domestic franchise as the 3rd the Sampo group's continued largest Finnish bank. Sampo Bank´s outperformance of Standard & Poor's rating are b
Slide 28: Finland – Economic Outlook
Finland – Economic Outlook Sampo Bank’s economists, December 2005 Change in volume 2003 2004 2005f 2006f 2007f GDP 2.4 3.6 1.7 3.1 2.5 Exports 1.4 5.6 6.5 6.5 4.0 Private consumption 4.4 3.2 2.9 2.2 2.0 Public consumption 1.5 1.6 1.5 1.5 1.0 Investments -1.5 5.0 0.0 2.0 3.0 2003 2004 2005 2006f 2007
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