Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Nordea — Investor Day (April 2001)
120 slides from Nordea Bank Abp's investor day presentation, Apr 4, 2001
Slide 1: Nordea
Slide 2: Agenda
Nordea Capital Markets Day April 4, 2001 Agenda Nordea Capital Markets Day - Mission to deliver Thorleif Krarup Group CEO Financial overview and capital allocation Arne Liljedahl Group CFO Retail banking - A continuous search for excellence Lars G. Nordström Head of Retail General Insurance - Improv
Slide 3: Mission to deliver
Mission to deliver Group CEO, Thorleif Krarup 4 April 2001 in London
Slide 4: The merger process to date; mission and strategy for growth
l The merger process to date (Part one) l Our mission to deliver and strategy for growth (Part two)
Slide 5: The merger process to date - establishing the pan-Nordic platform
The merger process to date - establishing the pan-Nordic platform 6ZHGHQ )LQODQG 'HQPDUN 1RUZD\ CHRISTIANIA BANK OG KREDITKASSE
Slide 6: How to approach the merger process?
How to approach the merger process? Most other approaches... Our approach Organisation Corporate Statement Synergies Synergies Corporate Statement Organisation
Slide 7: Our corporate statement - strategic direction and values
Our corporate statement - our strategic direction and values l Vision to be valued as the leading financial services group in the Nordic and Baltic financial markets with a substantial growth potential l Ambition to reach top market positions l Mission to fulfil customer aspirations l Common values
Slide 8: Synergies have been identified
Synergies have been identified - to be realised within a 3 year period Target 2003 EURm Costs Rev. Total MeritaNordbanken and Unidanmark* 140 60 200 Christiania Bank og Kreditkasse and Nordea 50 60 110 Total synergies 190 120 310 * A further EUR 50m has been estimated.
Slide 9: We operate as an integrated Nordic group
We operate as an integrated Nordic group, in focussed business areas Group CEO Group Corporate Centre Group Staffs Corporate and Investment Life Insurance General Asset Institutional Retail Banking Banking Management and Pensions Insurance Banking Corporate Division Equities Investment Denmark Finla
Slide 10: Successful business integration and cross-border product launches
Successful business integration and cross-border product launches 2001 January Customer loyalty programme in Denmark Long term Savings and Life Joint Unit in Sweden December Shipping, Offshore and Oil Services New business unit in CIB November Solo Market and e-payment in Denmark Nordea name adopted
Slide 11: Strong distribution network throughout the Nordic and Baltic Sea region
Strong distribution network throughout the Nordic and Baltic Sea region Finland • Branch offices 464 • Personnel 11.339 Sweden Helsinki • Branch offices 261 Stockholm • Personnel 6.707 Bergen St Petersburg Norway Oslo Tallinn Tartu • Branch offices 155 Gdynia Riga • I-service centres 40 Copenhagen M
Slide 12: Large banking customer base with high netbanking penetration
Large banking customer base with high penetration in netbanking Baltic Sea Denmark Finland Norway Sweden region Total Retail customers (1.000) Household customers 1.692 3.035 526 3.643 37 8.933 Corporate customers 77 340 59 127 8 611 Netbanking customers (1.000) 251 976 146 732 4 2.109 Large Nordic
Slide 13: Large insurance customer base with cross-selling potential
… and large insurance customer base with cross-selling potential Denmark Finland Norway Sweden Poland Total General insurance (1.000) Household customers 765 - 355 - 222 1.342 Corporate customers 180 - 45 - 20 245 Life insurance and pensions (1.000) Household customers 470 215 24 420 1.129 Corporate
Slide 14: Nordea is among the largest financial services groups in Europe
Nordea is among the 25 largest financial services groups in Europe HSBC ING RBS UBS Lloyds CS Barclays Deutsche BBVA BSCH BNP Paribas Fortis HypoV ABN Soc Gen Halifax Dresdner Abbey Intensa Unicredito San Paulo-IMI Nordea Commerz Std. Chartered Dexia 0 Source: ArosMaizels, 29 March 2001 25 50 75 100
Slide 15: Arne Liljedahl
Arne Liljedahl Nordea Capital Markets Day, 4 April 2001 in London
Slide 16: Agenda
Agenda l Result 2000 l Financial structure l IT strategy
Slide 17: Result 2000
Result 2000* l Operating profit EUR 2 435 million, +17% l Cost/income ratio, banking, 55%, down from 59% l Combined ratio, general insurance, 110% (105%*) l Return on equity 16.1%, excluding goodwill 19.4% *excluding hurricane
Slide 18: Result 2000
Result 2000 Change Change 2000 1999 % % 1) Earnings per share, EUR 0.58 0.552) 5 8 Dividend, SEK 2.003) 1.75 14.3 1) Adjusted for goodwill 2) Proforma 3) Proposed
Slide 19: Income mix
Income mix 6 l Total income +14% l Net commission 5 income +26% 4 l 77% of total income - commission and EURbn Insurance interest income 3 Other income 2 Net result from financial operations 1 Commission income Net interest income 0 1999 2000 Proforma
Slide 20: Net interest income
Net interest income 900 Trends 2000 800 l Stable performance - up 700 12% 600 l Rising short-term interest rates - higher deposit EURm 500 margins 400 l Lending volumes up 3% 300 - within Retail up 15% 200 100 0 Q4/99 Q1/00 Q2/00 Q3/00 Q4/00 Proforma
Slide 21: Commission income
Commission income 1800 l Commission up 26% 1600 l Mainly boosted by increased 1400 commissions from Asset 1200 management - up 67% EURm 1000 800 600 400 200 0 1999 2000 Proforma Payments and deposits Lending Other commission Asset Management Brokerage
Slide 22: Expenses up 10% - adjusted 3%
Expenses up 10% - adjusted 3% 3% increase of expenses, (85P in a year with merger and acquisitions, 5HSRUWHGRSHUDWLQJ includes H[SHQVHV l Investments for future growth $FTXLVLWLRQV • Expansion within Asset Management ([FKDQJHUDWH IOXFWXDWLRQ • Increased activities in the Baltic countries and Poland
Slide 23: Profit before loan losses
Profit before loan losses 800 l Stable core earnings 700 600 l Volatile investment 500 earnings EURm 400 300 200 100 0 Q1/00 Q2/00 Q3/00 Q4/00 Profit before loan losses Investment earnings - excluding investment earnings
Slide 24: Operating profit by Business Area
Operating profit by Business Area EURm 1600 l Retail 60% of 1400 total operating 1200 profit 1000 800 600 Product result 400 200 0 -200 Retail Corpo- Asset Invest- Life In- General Treasury Other rate & Mana- ment surance Insu- Institu- gement1 Banking2 & rance tional Pensions 1) Product result incl
Slide 25: Financial and business objectives to create shareholder value
Financial and business objectives to create shareholder value ³1RUGHDVKDOOFUHDWHYDOXHIRUVKDUHKROGHUVLQOLQHZLWK WKHEHVWDPRQJ(XURSHDQOLVWHGILQDQFLDOVHUYLFHV FRPSDQLHV9DOXHIRUVKDUHKROGHUVLQFOXGHVPDUNHW YDOXHDQGGLYLGHQG´
Slide 26: Total shareholders' return, European Banks top 10, year 2000
EURm D 0 10 20 30 40 50 60 70 80 90 an R sk e oy al ba B an nk k of Source: Goldman Sachs Sc ot la n d D nB N or de a IN G G ro up Sa np ao l o IM Ab I be y N at io na l Total shareholders´ return, Ba nc a In t es Ba nc a a M on te U de BS European Banks top 10, year 2000 iP as ch i di S ie na
Slide 27: Nordea's structures
Nordea´s structures l Operational structure in place • Fully working since January 1, 2001 l Legal structure in process • Single holding company l Financial structure has been achieved • Financial flexibility completed
Slide 28: Financial structure - flexibility achieved
Financial structure- flexibility achieved l Maximise unrestricted equity in parent company - “single holding company” • Optimal allocation of regulatory capital achieved • All options open • Acquisitions easy to handle • Prepared for the New Basel Capital Accord
Slide 29: Efficient use of capital - Tools
Efficient use of capital - Tools Shareholders Dividend ordinary/ extra ↑ Share buy back ↑ Subordinated loans ↓ (Investors) New share issue ↓ ↑ Dividend ordinary/ anticipated ↑ ↓ Group contributions ↓ Capital contributions e.g Equity and Subordinated loans ↓ New share issue Group contribution Dividen
Slide 30: Creating increased unrestricted equity
Creating increased unrestricted equity 12 l Unrestricted equity, Group 10 5.0bn Euro l Unrestricted equity, Nordea 8 Plc. 3.5bn Euro EURbn 6 l Corresponds to five years 4 dividends at year 2000 level 2 0 1997 1998 1999 2000 Shareholders equity -of which unrestricted parent company
Slide 31: Pipelines to investors
“Pipelines to investors” l Nordea should not have more capital than the business needs. Excess capital should be distributed to the owners. l New share issue should always be a natural option for Nordea
Slide 32: New Accord from a Nordea perspective
New Accord from a Nordea perspective l New Accord in line with Nordea financial control principles • Supports internal measurement of profitability expressed by Risk Adjusted Performance Measurement • Supports development of internal models in assessing risks
Slide 33: Economic Capital 2001 - 2002
Economic Capital 2001 - 2002 March 2001 l Economic Capital calculated for all Business Areas and next level l Risk adjusted return calculated for all Business Units with Credit Risk August 2001 l RaRoCar* will be defined as KPI for 2002 Autumn 2001 l RaRoCar for Business Areas will be disclosed exte
Slide 34: IT Strategy
IT Strategy l Original IT solutions based on individual domestic banks l Moving towards common processes l Moving towards Business Area oriented systems l No quantum leap → Three-phase strategy
Slide 35: Three-phase strategy
Three-phase strategy Next phase Consolidation Integration Total cost synergies*, EURm 190 Year 2001 2003 *Including IT (mEUR 55 in 2003)
Slide 36: Integration
Next phase Integration Consolidation Integration Integration level l Integration planning l New organisation S D F N w e i o l First integration regarding e n n r intranet, products, d m l w accounting etc. e a a a n r n y l Few, if any, cross-border k d synergies l Planning for next step Separate n
Slide 37: Consolidation
Next phase Consolidation Consolidation Integration Branch Private offices Banking Other General insurance e- services Middle Layer NO NO NO DK DK DK SWE SWE SWE FI FI FI l Create conditions for Next phase
Slide 38: Next phase
Next phase Next phase Consolidation Integration l Customised services l Mobile services l Web-enabled processes l Process-reengineering • Common standards and principles • Common systems l Shared services
Slide 39: Next phase - illustrated by Finance Area
Next phase Next phase - Consolidation illustrated by Finance Area Integration Integration Consolidation Next phase 20 accounting One common One system systems system Installed in four Four countries One place countries Common processes One financial Different processes cross-border service-provider
Slide 40: Three-phase strategy
Three-phase strategy Next phase Consolidation Integration Total cost Additional synergies*, EURm 190 synergies Year 2001 2003 200X *Including IT (mEUR 55 in 2003)
Slide 41: Summary
Summary l Mergers completed - Improved financial results and shareholder value l Strong capital position - Improved financial flexibility l Integration Strategy - Next phase creates conditions for substantial future synergies
Slide 42: Retail Banking in Nordea - A continuous search for excellence
Retail Banking in Nordea A continuous search for excellence Lars G Nordström Nordea Capital Markets Day, 4 April 2001 in London
Slide 43: Retail banking
Retail banking l Overview l Strategic alternatives l Harvesting a customer base of ten million l e-leadership - from bricks-and-mortar to clicks-and-mortar l Operating and management principles to create value l Potential for growth - excellent cost-saving opportunities
Slide 44: Nordea Retail Banking
Nordea Retail Banking Baltic and Total Finland Sweden Denmark Norway Poland Nordea Customer base December 31, 2000 (thousands): Personal 3,035 3,643 1,692 526 37 8,933 Corporate 340 127 77 59 8 611 Net bank 976 732 251 146 4 2,109 customers Branch offices 464 261 356 155 20 1,256
Slide 45: Retail banking customers
Retail banking customers l Personal customers l Small and medium-sized companies l Large home-market oriented corporations
Slide 46: Retail Banking Performance in 2000
Retail Banking Performance in 2000 Operating profit, EUR million 1,472 (+ 46 %) Return on equity, % 24 Cost/income ratio, % 57
Slide 47: Strategic alternatives
Strategic alternatives l Growth or profitability l Regional or local l Electronic or personal l Banking or insurance l Traditional banking or asset management l Private or corporate customers l Customer focused or product oriented l Wide customer base or targeted group l Universal or specialised
Slide 48: Nordea's strategic choices
Nordea’s strategic choices l Growth and profitability l Regional and local l Electronic and personal l Banking and insurance l Traditional banking and asset management l Private and corporate customers l Customer focused l Wide customer base l Universal
Slide 49: Nordea's choices
Nordea’s choices l Universal multi-channel bank with bank insurance l Partnership l Financial solutions l Electronic and personal l Nordic and local
Slide 50: Customer relationship is the key
Customer relationship is the key Information of Right products LOCAL customers’ needs in right combinations and aspirations at the right time Cash management Payment services Mutual funds NORDIC Insurances Unit-linked Mortgages e-banking Deposits Loans Cards
Slide 51: Loyalty programs build profitability
Loyalty programs build profitability Corporate customers Private customers Large companies Private Banking / Priority / Core Key customers Large and mid-sized companies with specially Plus / Core customers appointed account managers Intermediate Standard concept for Pricing small companies Small
Slide 52: E-banking contributes to
E-banking contributes to l Significantly lower transaction costs l A new role with improved profitability for the branches l Improved customer satisfaction and better retention l New income
Slide 53: From brick-and-mortar to click-and-mortar
From brick-and-mortar to click-and-mortar l Easy and cost efficient access to financial services • through multiple channels • 24 hours a day l Branch offices transformed from a transaction facility to advisory services with responsibility for • new points of contact • customers’ use of new distribu
Slide 54: The revenge of the old economy
The revenge of the ”old” economy Significant advantages in relation to start-ups and invaders l Strong brands l Existing customer base l Trusted l Local presence l Solidity and profitability “The Brickman” from Wall Street Journal Convergence Magazine, Autumn 2000
Slide 55: Cornerstones in the winning online strategy
Cornerstones in the winning online strategy l Personal e-selling in branches l Full multi-channel e-service l Mobile service growing from well established habit l User-friendly innovations l Value for customers and customers’ customers
Slide 56: New connecting tools for corporate customers
New connecting tools FRUSRUDWHFXVWRPHUV e-identification e-interactive e-signature e-payment e-salary e-billing e-chip B2C B2B Over 2.2 million net customers private & corporate
Slide 57: The leading net bank
The leading net bank Over 2 million customers Most frequently used netbank Million Payments, million per month 2,5 8 7 2 6 1,5 5 4 1 3 2 0,5 1 0 0 1997 1998 1999 2000 2001 1997 1998 1999 2000 2001 Finland Sweden Denmark Norway
Slide 58: More emphasis on value adding services
More emphasis on value adding services Manual l d er transactions r eho disappear fast S ha e u val m er u sto C a l ue v nc e te pe C om ti o n- e la R h i ps s
Slide 59: Management by geography and function
Management by geography and function Retail Banking Denmark Finland Norway Sweden Poland & 3 regional 3 regional 4 regional 4 regional Baltic banks banks banks banks 4 countries Market Corporate Support Household & Planning & General Control Product Insurance Com- Long Term panies Production & Savin
Slide 60: Retail banking management principles
Retail banking management principles l Profit center concept Profit orientation l Income and cost allocation l ROE measurement l Customer Responsible Unit concept Customer l Customer concepts orientation l Customer satisfaction surveys l Unified financial language Performance l Transparency, ranking
Slide 61: Excellence in retail operations
Excellence in retail operations Profitability profit, ROE, key ratios (C/I) Growth volumes, market shares, sales, development of customer base Synergies cost, income (cross-border products, best practice) Innovativeness electronic banking, IT-based services, service levels, customer concepts, new di
Slide 62: Excellence in retail operations
Excellence in retail operations Cost control cost level, efficiency, productivity Risk control credit procedure, loss level, non-performing => low risk (also handling) Customer satisfaction customer surveys, customer concepts Employee attitudes internal opinion surveys at each unit
Slide 63: Excellence in retail operations
Excellence in retail operations Profitability Cost control Growth Risk control Synergies Customer satisfaction Innovativeness Employee attitudes
Slide 64: Continuing cross-border exchanges
Continuing cross-border exchanges To Denmark • Customer loyalty program • Internet-bank, Solo market and e-payment To Finland • General Insurance services To Sweden • Mobile GSM/SMS and WAP services • Internet bank for corporate customers To the Baltic countries • Internet services starting from Est
Slide 65: Potential for growth and cost reductions
Potential for growth and cost reductions l Decentralised profit responsibility l Customer concepts to increase share of wallet l Multi-channel distribution strategy including e-banking l Continuous e-restructuring
Slide 66: Potential for growth and cost reductions
Potential for growth and cost reductions l Cross border exchanges and “best practice” l Nordic harmonisation of i.a product responsibilities l Common IT platform/interface
Slide 67: A continuous search for excellence
A continuous search for excellence
Slide 68: General Insurance - Improving Profitability
General Insurance Improving Profitability Hugo Andersen Nordea Capital Markets Day, 4 April 2001 in London
Slide 69: General Insurance
General Insurance l Overview of General Insurance l Ambitious objectives and results l Strategic initiatives l Value drivers in General Insurance l Bancassurance for cross-selling
Slide 70: Gross Premium Development
Gross Premium Development mEUR 1999 2000 32 53 563 856 843 118 Denmark Reinsurance Norway Poland
Slide 71: Nordic General Insurance 2000 - Premiums
P(85 1000 1500 2000 2500 500 0 Tr yg if… -B al ti ca C + od Ve an st + a Tr yg g H an s a Lä ns Sa fo m rs po ik rin gs gr up • 2nd in size pe n To pd an m ar k Nordic General Insurance 2000 - Premiums
Slide 72: Nordic General Insurance 2000 - Combined ratio
Nordic General Insurance 2000 Combined ratio • 2nd in profitability 120 Combined ratio 80 40 0 if… po sa en k a ar st an m p m Ve up Sa H n da gr + g gs yg p ca To in Tr ti kr al + si -B an or yg f od ns Tr C Lä Source: Company reports
Slide 73: Development per market
Development per market Denmark: Market leader, 22% market share, profitability OK, cost ratio can be improved Norway: 3rd, 18% market share, cycle has turned, combined ratio target at 100 in 2003 Reinsurance: Latest renewals showed strong rate increases
Slide 74: 2000 Performance - General Insurance
2000 Performance - General Insurance Combined Operating ratio ratio ROE Denmark (Tryg-Baltica) 101.6 94.2 37.7 (12.8) Norway (Vesta) 110.0 98.8 5.5 Other 105.2 96.6 4.3 Excluding Anatol (hurricane,December 1999), legal equity
Slide 75: Combined ratio - Tryg-Baltica Denmark
Combined ratio - Tryg-Baltica Denmark 1995-2000 115 110 105 100 95 90 85 1995 1996 1997 1998 1999* 2000* *Excluding Anatol
Slide 76: Danish General Insurance - ROE 2000
Danish General Insurance - ROE 2000 40% 35% 30% 25% 20% 15% 10% 5% 0% Tryg-Baltica Topdanmark Codan Alm. Brand Including Anatol Excluding Anatol
Slide 77: Strategic initiatives 2001
Strategic initiatives 2001 l Bancassurance in Finland l Bancassurance in Norway l Combined ratio 100 for all activities by use of TB’s experience from the Danish market l Continued strict underwriting control
Slide 78: Operational initiatives
Operational initiatives Focus/implementation of l BPR - Electronic workflow, minimum internal paper l CRM - Using Siebel software - world class distribution management l BSC - Balanced scorecard as key-management tool Practical experience l Photo-evaluation of car claims via internet l On-line claim
Slide 79: Strategic rationale for Bancassurance
Strategic rationale for Bancassurance l Ownership of customers/customer portfolio will be the most important aspect in the new economy l Nordea has the Nordic countries’ largest customer base in the financial sector l Services/concepts before products l Encouraging Danish experience, 25% of our new
Slide 80: Summary
Summary l Growth l Ambitious and realistic targets for combined ratio and ROE l Profit before volume l Bancassurance
Slide 81: Asset Management - a firm to watch
Asset Management - “a firm to watch” &KULVWLDQ &ODXVHQ +HDGRI$VVHW0DQDJHPHQW 1RUGHD&DSLWDO0DUNHWV'D\$SULOLQ/RQGRQ
Slide 82: Asset Management
Asset Management l Who are we? • Major diversified asset manager l Where are we going? • Our target: strong growth l How will we do it? • The foundations are in place
Slide 83: A firm to watch
A firm to watch “Nordea could emerge as a significant force in European fund management and has already caught the eye of investment consultants beyond the Nordic region” Award for investment excellence: “A firm to watch in 2001” from Euromoney Global Investor magazine. Runner-up for “Best Manager,
Slide 84: Diversified asset manager
Diversified asset manager Asset Management Christian Clausen Investment Long-Term Savings & LTS&L, Private European Private Nordic Private Management & Inst. Life and Mutual Banking and Mutual Banking Banking Clients Funds Funds - Norway • Integrated • Joint Unit with • Joint Unit with • Separate, •
Slide 85: Growth in AuM
Growth in AuM 120 Private banking 100 Mutual funds 80 Insurance (internal) EUR bn Institutional clients 60 40 20 0 1997 1998 1999 2000
Slide 86: Change in composition of AuM
Change in composition of AuM 1999 2000 Nordic fixed International International income equities Nordic fixed equities 37% 28% income 32% 34% International fixed income 2% International fixed income 6% Nordic Nordic equities equities 33% 28%
Slide 87: The value of owning the chain: AuM by activity
The value of owning the chain: AuM by activity Gross AuM 2000 (EUR bn, average) 1 Investment Management 72 Mutual funds 33 2 Nordic Private Banking 26 European Private Banking 6 1: Including mutual funds 2: Including mutual funds, life insurance and deposits
Slide 88: Asset Management Result 2000: Strong momentum in earnings
Asset Management Result 2000: Strong momentum in earnings 1999 2000 Gross income, AM CRU’s 151.8 255.8 Costs, AM CRU’s -85.9 -136.0 AM CRU result 65.9 120.2 Mutual funds product income 225.8 310.2 Mutual funds product costs -93.4 -125.0 Mutual funds product result 132.4 185.7 Total income 377.6 566.
Slide 89: Nordea Mutual Funds: Major Nordic player
Nordea Mutual Funds: Major Nordic player, unmatched diversification National rankings end 2000 'HQPDUN )LQODQG 1RUZD\ 6ZHGHQ Nordic mkt. Shares end 2000 6(%)63% QD 1RUGHD Nordea 'DQVNH QD Others 21% 34% National market shares Danske Bank 30 Group 20 7% % 1999 Handelsbanken 10 2000 6% 0 SEB/FSPB 2 32
Slide 90: Vision of Nordea Asset Management
Vision of Nordea Asset Management • “We add value” to shareholders and clients • Leading Nordic asset manager with the strongest non-acquisitive growth in the region • The best partner for wealth creation in the region • Competitive and focused European asset manager in the institutional clients seg
Slide 91: Objectives of Nordea Asset Management
Objectives of Nordea Asset Management l The asset manager in the Nordic region generating the highest shareholder value l Average overall growth of 20% per annum in AuM l Investment returns ranking in the top quartile l “First in mind” l An attractive place to work
Slide 92: Our long-term target: Growing AuM by 20% p.a.
Our long-term target: Growing AuM by 20% p.a. on average Nordea AM: Assets under management 200 180 160 140 Avg. growth EUR bn 120 1995-2000 +18% 100 was 33 pct.! +54% 80 +19% 60 +35% 40 +44% 20 0 1995 1996 1997 1998 1999 2000 2003
Slide 93: Diversification supports growth
Diversification supports growth 20%? On the back of an envelope, this would be one way of getting there in year 1... Share of new AuM 6.5 %+1% return on equities 5% 4%+0.5% return on fixed income 2% New money in Nordic mutual funds 4% New money from Nordic institutionals 3% New money from US and Eur
Slide 94: A franchise for growth
A franchise for growth Mutual funds: Absolute change in AuM 1999-2000 5,0 4,0 3,0 2,0 Nordea bnEUR Danske 1,0 SEB/FSPB 0,0 Handelsbanken SE FI DK NO Total -1,0 -2,0 -3,0 Source : Official market statistics
Slide 95: It's a people's business
It’s a people’s business Our people are rewarded Engineering/ Investment for working in teams, for packaging expertise sharing competencies expertise instead of replicating them. Investment Mutual Funds They are encouraged to Management become leaders in their Private LTS&L field and then to grow Ba
Slide 96: Focused multi-channel distribution
Focused multi-channel distribution Institutional Intermediary Direct Private Internet sales sales retail sales Banking sales Denmark Fully developed channel Sweden Partly developed Finland channel Norway No current activity Baltic & Poland Europe USA Clients Clients Clients Clients Clients
Slide 97: The foundations are in place
The foundations are in place Asset Management Christian Clausen Investment Long-Term Savings & LTS&L, Private European Private Nordic Private Management & Inst. Life and Mutual Banking and Mutual Banking Banking Clients Funds Funds - Norway • World class • Complete, • Strong • Transfer of best • Lev
Slide 98: Multiple processes add value
Multiple processes add value Thematic Investment Process (TIP): Research and stock selection not limited to sectoral or individual market developments. Using themes relating to structural changes in the World economy as filters for stock selection, TIP captures opportunities in e.g. globalisation, d
Slide 99: Thematic Investment Process: documented results
Thematic Investment Process: Documented process, documented results EAFE Equity European Equity European Equity Japanese Equity Global Equity (Small Cap.) Non-US Equity Portfolios *) European Equity Portfolios *) European Equity: Smaller/Unlisted Japan Equity Potfolios *) World Equity Portfolios *)
Slide 100: Fixed Income: documented results
Fixed Income: Documented process, documented results Global Bond European Fixed Money Market Swedish Bonds *) Funds *) Income **) Sweden *) % tile 20 25 25 25 25 40 40 50 50 50 75 100 1 years 3 years 1 years 3 years 1 years 3 years 1 years 3 years Annualised return Annualised return Annualised retur
Slide 101: The joint unit: Leveraging competencies
The joint unit: Leveraging competencies Retail Banking Asset Management European Private banking Nordic Private Banking LTS&L and Mutual Funds Private Banking in Retail & Institutional clients Sweden Investment Management Norway Finland Denmark Household & General Insurance Corporate Electronic Bank
Slide 102: The joint unit: Adding value for the customer
The joint unit: Adding value for the customer &DOOLW³7KHFXVWRPHUVYDOXHFKDLQ´ Choose Analyze asset Describe Determine individual structure,customer desired optimal asset investment profile & needs risk profile allocation objects «RUFDOOLW³VROYLQJWKHFXVWRPHUVDVVHW SUREOHP´WDUJHWHGFRQFHSWVDUHWKHNH\ In
Slide 103: The Joint Unit as the Savings Portal
The Joint Unit as the Savings Portal We want the Joint Unit to be our Savings Portal. This is our opportunity to create added value We will create added value to the customer by for our customers and out-compete the combining various product offerings using competitors, who typically deliver product
Slide 104: Asset Management
Asset Management l Who are we? • Major diversified asset manager l Where are we going? • Our target: strong growth l How will we do it? • The foundations are in place
Slide 105: Strategy and programme for integration and growth
Strategy and programme for integration and growth (Part two) Group CEO, Thorleif Krarup
Slide 106: Our mission to deliver
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Slide 107: Forces driving the consolidation in the financial services sector
Forces driving the consolidation in the financial services sector l Deregulation of the financial markets and EMU establishment l Customers demand cross-border services and larger commitment l IT investments accelerate l Focus on shareholder value growth l More keen competition
Slide 108: Nordea shall create value for shareholders
1RUGHD VKDOOFUHDWHYDOXHIRUVKDUHKROGHUV LQOLQHZLWKWKHEHVWDPRQJ(XURSHDQOLVWHG ILQDQFLDOVHUYLFHVFRPSDQLHV Realised Targets Value drivers Performance indicators 2000 2003 l Total shareholder return….…….. 46.5 % á Profitability l Return on equity…..……………... 16.1 % > Euro RFR +8% á Cost control l Dividend
Slide 109: Synergy targets 2003 by business area
2000 2001 Target 2003 mEUR Total Total Costs Revenue Total Corporate and Institutional Banking 20 82 92 32 124 Retail Banking* - 5 10 30 40 Other business areas 3 15 20 37 57 IT - 12 55 - 55 Group Treasury - 21 - 21 21 Other Group functions - 1 13 - 13 Total 23 136 190 120 310 * A further EUR 50m ha
Slide 110: Nordea helps customers fulfil their aspirations
1RUGHD KHOSVFXVWRPHUVIXOILOWKHLU DVSLUDWLRQV E\FUHDWLQJYDOXHIRURXU FXVWRPHUVZHFUHDWHYDOXHIRUVKDUHKROGHUV Value drivers Targets 2003 á Customer base expansion l Nordea shall be number one or number two or show superior and profitable growth á Nordic customer concepts in every market and product area
Slide 111: Nordea focuses on continuous performance improvement
1RUGHD IRFXVHVRQFRQWLQXRXV SHUIRUPDQFHLPSURYHPHQW Value drivers Targets 2003 á Internal benchmarking l Nordic best practice implemented á Application of best practice l No duplication of work l Outsourcing of activities falling short of á Economies of scale critical mass or being outside core compet
Slide 112: All employees share and exchange Nordic Ideas to create value
$OOHPSOR\HHVVKDUHDQGH[FKDQJH 1RUGLF,GHDVWRFUHDWHYDOXH Value drivers Target 2003 á Personal development and career opportunities á Clear objectives for every manager and employee l Measurements of Nordea staff expertise and á Commitment to follow-up and give motivation, individually feed-back and in
Slide 113: Our strategy for growth
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Slide 114: Retail Banking
Retail Banking Vision Leading retail bank in the Nordic and Baltic financial markets with substantial growth potential Strategic initiatives • Nordic household customer strategy • Streamlining corporate customer concepts • Establishing long-term savings and life and private banking organisations • I
Slide 115: Corporate and Institutional Banking
Corporate and Institutional Banking Vision Leading bank for large corporate customers and financial institutions in Nordic and Baltic markets - with improved profitability Strategic initiatives • Integrated Nordic financial product offering produced with high cost- efficiency through common IT-solut
Slide 116: Asset Management
Asset Management Vision Leading Nordic asset manager with the strongest non-acquisitive growth Strategic initiatives • Close co-operation (joint unit) with Retail Banking • Continued build-up of Nordic private banking operations • Leverage leading position of Private Banking in Luxembourg • Multi-ch
Slide 117: Investment Banking
Investment Banking Vision Leading advisory investment bank Strategic initiatives • Independent pan Nordic investment bank concept • Consolidating and further building an integrated Nordic business operation • Implementing UK and US operations with strong Nordic business focus • Focus on pan-Nordic t
Slide 118: Life Insurance and Pensions
Life Insurance and Pensions Vision Major supplier of life insurance, pension plans and unit-linked in the Nordic region Strategic initiatives • Sales of unit-linked life and pensions products • Development and sales of defined contribution pensions products in Sweden, Norway and Finland • Starting u
Slide 119: General Insurance
General Insurance Vision Major supplier of general insurance in the Nordic region - aiming at profit before volumes Strategic initiatives • Bancassurance in Finland • Bancassurance in Norway • Combined ratio target 100 for all activities by use of TB’s experience from Danish market • Continue strict
Slide 120: Nordea