sampo plc annualgeneralmeetingannual general meeting 2011
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Sampo plcAnnual General MeetingAnnual General Meeting201114 April 2011Björn WahlroosBjörn WahlroosChairman of the Board
14 April 2011
GDP – USA, Euro zone and Finland
14 April 2011
10 year government bond yield, %
14 April 2011
Equity markets – MSCI indexesEmergingMarkets
1.1.2007=100, log.scale
USA
Euro zone
Japan
Source: Reuters EcoWin
14 April 2011
Equity markets – EuroSTOXX indexes and Sampo
Sampo1.1.2007=100,log.scale
EuroSTOXXInsuranceInsurance
EuroSTOXXBanks
Source: Reuters EcoWin
14 April 2011
Change in Sampo’s Nordea ownership
% 9,8% 0,1%
20,3%
20,5%
20,5%
20,5%
21,3%
1 000
millionshares
4 800
809
818
830
830
830 860
18,2% 19 2 2 2 2 2 2
700800900
734 8 8 8
% % 1% ,2% 15,5%
500600700
6 50 267
267
288 318 40
2
% % 1% 7%
7,6% 9,6% 10,3%
10,3%
11,1
12,
200300400
44
81 97
196 2 2 2
0,4% 1,7% 3,1 3,
0100
Sampo plcAnnual General MeetingAnnual General Meeting201114 April 2011Björn WahlroosBjörn WahlroosChairman of the Board
Sampo’s compensation strategy is responsible
• Fixed salaries represent a sufficient part of the total compensation and are competitive but not leading in the market.
• Variable compensation emphasizes the link between employee compensation and Sampo’s profitability.
• Variable compensation is in line with the long-term targets of investors.• An external audit of Sampo’s remuneration policy has concluded that it
fulfils the criteria issued by the Financial Supervisory Authority.
14 April 2011
Sampo Group compensation
351 330
2324
145
0
50
100
150
200
250
300
350
400
450
2010 2009
Long-term Incentive SystemsShort-term IncentivesFixed Salaries
Not including pension costs or other social security expense (EUR 139 million in 2010 and EUR 144 million in 2009).
Total EUR 359 million
EURm
In short- and long-term Incentive Systems~ 115 directors~ 6,000 employees
Total personnel~ 7,000 employees
Total EUR 388 million
14 April 2011
Compensation of the Group Executive CommitteeCosts (1,000 €) 2010 2009 (2)
Fixed salariesout of which CEO’s
3,129667
3,389676
Short-term incentivesout of which CEO’s
1,728400
1,481371
Long-term incentives andShare-based incentive system(1)out of which CEO’s
7,3561,296
1,934417
Totalout of which CEO’s
12,2132,363
6,8041,464
(1) The cost of the Share-based Incentive System is reported net of social costs(2) Compensation to the CEO for 2009 includes former CEO until 7 April 2009 and present CEO starting from 8 April 2009
14 April 2011
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Sampo plcAnnual General MeetingAnnual General Meeting201114 April 2011Kari Stadigh CEOKari Stadigh, CEO
14 April 2011
Keys to Sampo
•RoE•Core values•Exit•Dividend stock
• Shareholder value•No legacy
•Chairman of the Board•Mandate•No surprisesp•Market leadership•Economies of scaleEconomies of scale•Private customers•Customer satisfaction
2
•Customer satisfaction
14 April 2011
ETHICALITY LOYALTYETHICALITY LOYALTY
TRANSPARENCY ENTERPRISE
3
14 April 2011
Sampo and EuroSTOXX indexTotal return since 2010Total return since 2010
31.12.2009=100, log.scale Sampo
EuroSTOXX Banks/Insurance Eurozone,50/50
Source: Reuters EcoWin
14 April 2011
Nordic Financials
5
14 April 2011
100%
If ’s combined ratio on a stable level already for 7 yearsLong‐term target < 95%
100,9 92,6 90,5 89,9 90,6 91,8 92,1 92,8406080 The standard
deviation for 2005‐2010 quarterly combined ratios:, 90,5 89,9 , , , ,
02040 combined ratios:
If: 2.6%Tryg: 5.7%Gjensidige: 5.2%T d k 5 6%2003 2004 2005 2006 2007 2008 2009 2010
1 200EURm Nordea’s operating profit remained stable throughout the financial crisis
Topdanmark: 5.6%
78
71
600
900
1 200
895
978
932
1 0 7
885
883
847
781
833
818
832
592 878
730 960
1 0 7
300
600
6
‐
14 April 2011
25%
FINLAND
22%26%
NORWAY
19%
SWEDEN
# 1# 2
15%
BALTICS
5%DENMARK # 2‐3
21%
7# 3‐4
# 2
14 April 2011
Gross Written Premiums 2010 , EUR billion
4.2If
2.7Tryg
2.2Gjensidige
2.0RSA Scand (NWP)
1.0Pohjola
8
14 April 2011
Share of Private customers f If ’ t t l t i 2010
Share of Houselhold customers f N d ’ t t l t i 2010of If ’s total customers in 2010
• App. 3 million Private customers
of Nordea’s total customers in 2010
• Over 8 million Houselhold customers
9
14 April 2011
Percentage of customers affected by a claim, that gave If the highest score d i 2005 2011/2
Would purchase Mandatum Life’s services again definitely or most likely, percentage of
l i 2010during years 2005‐2011/2
70%
total customers in 2010
65%Private customers 70%
55%
60%Wealth Management customers
70%
50%Corporate customers 77%
Large corporations 83%
40%
45%Large corporations 83%
10
05 06 07 08 09 10 11‐2
14 April 2011
Average RoE during years 2006‐2010%
26.7 %30
20.8 %20
25
16.1 %15
20
10
0
5
11
If Mandatum Life Nordea
14 April 2011
Dividend Yield, %% A l d d d ld l l d h d h
5,96,6
6.0 5,9 5 76
7% Annual dividend yield, calculated using the year‐end share price
5,7
5
6
3
4
1
2
0
1
2006 2007 2008 2009 2010*
12
2006 2007 2008 2009 2010** Board’s proposal to the AGM held on 14 April 2011:EUR 1.15 / share
Key Figures of Sampo Group’s Financial Statements 2010
13
14 April 2011
Sampo Group’s Profit before Taxes 2010EURm
2009 2010+60%
1 320
1 200
1 5002009 2010
+10%
644825
707523600
900+10%
121 80142
523
300
600 +17%Dividend
‐44 ‐48‐300
0Life
insurance NordeaP&C
insurance Holding*Group
14*) excluding Nordea
14 April 2011
If P&C in 2010Norway•Market share 26%
llFinland•Market share 25%• Premiums EUR 886 million
• Premiums EUR 1,496 million• Combined Ratio 92.1%
• Combined Ratio 90.4%Sweden•Market share 19%• Premiums EUR 1,314 million
Baltics•Market share 15%
Premiums EUR 1,314 million• Combined Ratio 93.3%
•Market share 15%• Premiums EUR 122 million• Combined Ratio 93.4%
Denmark•Market share 5%• Premiums EUR 374 million
15
• Combined Ratio 101.4%
14 April 2011
Mandatum Life in 2010
Investment assets EUR 6 billion
Other 3%
Premiums in Finland by distribution channel, EURm
Others, 29
Private Equity, 4%
Real Estate, 3%
Other, 3%
Shares 28%
Private Equity, 4%
Sampo Bank, 275
Fi d I 61%
Shares, 28%
Mandatum Life, 751Fixed Income, 61%
,
16
14 April 2011
Nordea’s result has remained stable
1 200EURm Operating profit by quarters Q1/2007 – Q4/2010
900
5 978
32
1 078
5 3 7 3 8 2 8 60
1 071 600
89 9 93 1
88 88 847
781
833
818
832
592
878
730 9 1
300
0
17
14 April 2011
Earnings per Share 2008–2010
1,972,00EUR
1,50
2,00
1,18 1,14
1,00
0,50
0,002008 2009 2010
18
14 April 2011
NAV per Share
17,79
EUR/share
13,4914,63
17,79
15
18
7,679,21
8,289
12
5,97
3
6
0
3
2004 2005 2006 2007 2008 2009 2010
19
14 April 2011
Outlook for the rest of 2011 is positive
• Sampo Group is expected to report a good result for 2011. P&C and life insurance operations are expected to report good and stable resultsinsurance operations are expected to report good and stable results and the contribution to profit of associated company Nordea Bank is anticipated to remain strong. The continuing rise of short term interest rates will also further strengthen Sampo Group’s profitsrates will also further strengthen Sampo Group s profits.
• If P&C is expected to reach its long‐term combined ratio target of below 95 per cent in 2011. Profit is expected to remain very good.
• Nordea’s contribution to the Group’s profit is expected to be significant.• Mandatum Life’s profitability is expected to remain good although it is highly dependent on capital market developments.g y p p p
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Sampo plcAnnual General MeetingAnnual General Meeting201114 April 2011Kari Stadigh CEOKari Stadigh, CEO