seb goldman sachs berlin june 2008
TRANSCRIPT
2
SEB's markets in Northern Europe
2
GDP, growth per year, %
0
2
4
6
8
10
12
2006 2007 2008 (f) 2009 (f)
Average, Baltic countriesAverage, Nordic countriesEuro Zone
3
10%15%
37%38%
RetailBanking
WealthManagement
Life
Merchant Banking
58%
20%
4%
18%
Sweden
Nordics
Germany
Baltic countries
This is SEB today Share of operating profit Q1 2008
4
SEB's franchiseMerchant Banking● #1 Nordic stock broker● #1 Nordic and Baltic investment bank● #1 Nordic and Baltic cash manager● #1 Custody Nordic and Baltic markets● #1 Scandinavian currenciesWealth Management● #1 Nordic and Baltic private bank● #2 Nordic asset managerLife and pension● #1 Nordic unit-linked businessRetail● #2 Baltic region
4
5
2007 2008 2010 2009 2006
Co-ordinateuniversal offering
Expand and accelerate
growth in areas of strength
5 million private individuals
2,500 large corporates& institutions 400,000 SME’s
Merchant Retail Wealth Life
Group IT Group Operations
Group Staff
Norway
Sweden
Finland
Estonia
Latvia
Lithuania
Ukraine
Denmark
Germany
PolandRussia
1 32
OK
OK
12
3
45
From To
Focus
Streamlining and integration
Productivity
Proactivity
Sustainableprofit growth
Installing operational excellence
Focused growth in areas of strength
Our strategy – The Road to Excellence
6
2007 – 2009:Commitment
SEK 1.5 – 2bn
Resilience from operational leverage
Realised since startSEK 625m
Cost-management program SEB Way
Status Q1 2008Both front- and back-end processes30 % of all employeesMore than 800 FTEs freed up
7
8.9
7.2
7.0
6.8
6.5
6.4
Core capital ratioBasel II including transitional rules, %
Net liquidity position across maturities31 March, SEKbn
Strong balance sheet
0
100
200
300
1 week
2 weeks
4 weeks
2 months
3 months
4 months
5 months
6 months
9 months
12 months
SEB is match-funded approx.
one year
*
* Danske has during 2008 started to report the full Basel II effect
(2007)
8
Capturing structural growth trendsCapital markets
Demography
Emerging markets
Exploiting being the #1 Nordic Merchant Bank
SEB is:
Expanding the asset manage-ment and life insurance franchise
Trading, investment banking, new asset classes
Creating demand for:
Asset management, pension products
Local financial services, int’l support for our clients
Continued growth in Eastern Europe
9
3.22.71.9 2.1 2.4
2003 2004 2005 2006 2007
Global Transaction Services
Leverage being the #1 Nordic Merchant Bank
2008 2007
1 1 Citi
2 2 Deutsche Bank
3 4 HSBC
11 10 BNP Paribas
12 12 SEB
13 13 Mitsubishi UFJ Fin Grp
Corporate foreign exchangeInternational rankingCustody, Cash management etc
Income, SEKbn
Assets under Custody
0
200
400
600
2002 2007
Nordea SEBEUR bn
10
37
43
28
17
22
0% 20% 40% 60% 80% 100%
Lithuania
Latvia
Estonia
Denmark
Sweden*
SEB Market share Competitors
1221
SEBRank
Strong market position in all marketsMarket shares, gross premium income, unit-linked insurance (%, 2007)
2
* unit-linked (Sweden new sales)
Net inflows in the Swedish mutual fundsCumulative FY 2007 and Q1 2008, SEKbn
15.2
-13.6 -8.6
-18.5
Robur SHB Nordea SEB
Demographics supporting long-term savings
10
11
0
1,000
2,000
3,000
4,000
2005 2006 2007
LithuaniaLatviaEstonia
1,428
2,320+62%
+34%3,114*
250,000 new customers during 2007
11
Go East: A continued growth caseOperating result country level; SEK millions
* Adjusted for sale of Baltic real estate
12
Managing a downturn in the Baltic countries
Jan 06 Jul 06 Dec 06 2007● Tightening of
credit policy incl. cautious property mgmt
● ROE priority > volume growth
● Further tightening of credit policy
● Raised attention to currency risks
● Collective provisioning policy
● Concluding internal review of Baltic economies
● Increased capitalisation
● Overheating risks communicated
Phase I - Actions to manage overheating
0%2%4%6%8%
10%12%
2006 2007 2008
Credit growth per quarter
12
13
Phase II - Actions to manage correction
Managing a downturn in the Baltic countries
Targeted credit portfolio reviewsJoint local and head-office work-out teamEarly conservative provisioning
Individual country approachFull integration in SEB Group to broaden product paletteDevelop relationships with existing and new customers
Asset quality
Business development
13
15
Customer satisfaction: No 1 in chosenmarkets
Sustainable profit growth
Highest Return on Equity
AA-rating
Long-term objectives