Öhman Russian Banking Seminar 26 November 2009

Thomas NeckmarHead of New European Markets

Profitable organic growth in solid segments

Nordea - one of few foreign banking partners

2

Nordea - the leading bank in the Nordic and Baltic Sea region…

SwedenSwedenBranches 329Customers 3.6 millionEmployees, FTE’s 4,497Total lending EUR 62.9bnMarket rank 2-3

Branches 329Customers 3.6 millionEmployees, FTE’s 4,497Total lending EUR 62.9bnMarket rank 2-3

•Incl. Polish Life customers

NorwayNorwayBranches 124Customers 0.8 millionEmployees, FTE’s 1,842Total lending EUR 41.7bnMarket rank 2

Branches 124Customers 0.8 millionEmployees, FTE’s 1,842Total lending EUR 41.7bnMarket rank 2

DenmarkDenmarkBranches 297Customers 1.6 millionEmployees, FTE’s 4,960Total lending EUR 68.8bnMarket rank 2

Branches 297Customers 1.6 millionEmployees, FTE’s 4,960Total lending EUR 68.8bnMarket rank 2

FinlandFinlandBranches 313Customers 3.1 millionEmployees, FTE’s 5,091Total lending EUR 50.1bnMarket rank 1

Branches 313Customers 3.1 millionEmployees, FTE’s 5,091Total lending EUR 50.1bnMarket rank 1

EstoniaEstoniaBranches 22Customers 101,000Employees, FTE’s 362Total lending EUR 2.4bnMarket rank 3

Branches 22Customers 101,000Employees, FTE’s 362Total lending EUR 2.4bnMarket rank 3

Nordea home marketsNordea home markets

LatviaLatviaBranches 22Customers 86,000Employees, FTE’s 454Total lending EUR 3.0bnMarket rank 3

Branches 22Customers 86,000Employees, FTE’s 454Total lending EUR 3.0bnMarket rank 3

LithuaniaLithuaniaBranches 21Customers 118,000Employees, FTE’s 317Total lending EUR 2.1bnMarket rank 4

Branches 21Customers 118,000Employees, FTE’s 317Total lending EUR 2.1bnMarket rank 4

RussiaRussiaBranches 49Customers 50,000Employees, FTE’s 1,545Total lending EUR 3.5bnMarket rank 27

Branches 49Customers 50,000Employees, FTE’s 1,545Total lending EUR 3.5bnMarket rank 27

PolandPolandBranches 158Customers 580,000*Employees, FTE’s 1,619Total lending EUR 4.1bnMarket rank 13

Branches 158Customers 580,000*Employees, FTE’s 1,619Total lending EUR 4.1bnMarket rank 13

3

…with a solid position in five east European countries – NEM account for 6% of Nordea Group revenues

Value creation through profitable organic growth – maintained moderate risk profile

Loyal to long-term strategy and core customers - continued focus on prudent banking and firm credit policies

New European Markets Total income, EURm

108 121

123177

110105

Jan-Sep 2008 Jan-Sep 2009

Baltic Russia Poland

341

401

4

New European Markets continue to be an important part of Nordea’s long-term strategy…

Profit orientation – cost, risk and capital

Ambitious vision and targets

Clear growth strategy

Strong customer- oriented values and

culture

Great Nordea

Increase business with existing Nordic customers and attract new customers

Exploit global and European business lines

Take Nordea to the next level of operational efficiency to support sustained growth

Supplement Nordic growth through investments in New European Markets

Despite turbulent times – the journey towards Great Nordea continues

Cautious speed mirroring prevailing market conditions

Focus on cost, risk and capital

5

…with a clear focus in the short-term

Pro-active risk management

Profitable growth in selected segments Nordic and international corporates

Best local corporates in attractive segments

Municipalities and state entities

High income earners

Employees of corporate customers

Young people with high potential income

Firm cost management and increased operational efficiency

Innovative multichannel distribution and high usage of e-services

Full product range and standardised customer concepts with successful track record and procedures aligned with the Nordea Group

6

Russian macroeconomic situation and banking sector trends

7

Economy still dependent on export of raw materialsGDP contraction of around 7% 2009 – but positive monthly growth in last three months

Inflation falling from high levels, but upward pressure from increasing prices for gas and other utilities and services

Central Bank lowering discount rate, supporting banks and the corporate sector

Russian Ruble strengthened

Positive trend for direct investments from early 2009

Expected GDP growth of 1.5% in 2010 and 3% in 2011 given current oil price

Severe Russian economic downturn – pressure easing GDP

Inflation

Clear signs of recovery in banking industry…

Lending growth close to zero in H1, positive trend in Q3

High activity in solid sectors (oil and gas, telecom, electric energy industry and some others)

Growing NPL in H1, declining NPL growth rate in Q3

Share of retail lending declined since September 2008

State banks “obliged” to increase lending at refinancing rate + 3%Increasing deposits from state-owned companies

EURbn 2006 2007 2008 Jun-Aug 2009

TOTAL ASSETS (LIABILITIES) 376,9 543,3 756,6 764.9

% GDP 51,9 60,8 67,5

EQUITY 49.0 72.1 102.9 113.3

% GDP 6,3 8,1 9,2

% to assets of the banking sector 12,1 13,3 13,6

CORPORATE LOANS 170,0 252,1 337,7 345.8

% GDP 29,8 37,1 39,8

% to assets of the banking sector 57,5 61,1 59

INDIVIDUALS LOANS 50,8 80,2 108,4 98.8

% GDP 7 9 9,7

% to assets of the banking sector 13,5 14,8 14,3

DEPOSITS FROM INDIVIDUALS 102,8 139,3 159,4 180.1

% GDP 14,2 15,6 14,2

0

200

400

600

800

1 000

1 200

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

GDP (bln.EUR) GDP forecast (EUR)T otal Asset s (Liabilit ies) of banks (bln.EUR) T otal Assets (Liabilit ies) of banks forecast (bln.EUR) Corporate Loans (bln.EUR) Corporate Loans forecast (bln.EUR)Individuals Loans (bln.EUR) Individuals Loans forecast (bln.EUR)

9

…backed by massive state support – none of the major banks has collapsed

Capital injections in the form of subordinated loans and guarantees of unsecured loans

Changed regulations - decreasing banks’ mandatory reserves

Guarantees issued by Central bank to compensate possible losses on interbank market

Raised turnover of REPO-operations with the Central Bank - list of underlying securities extended

State guarantees for selected corporates

Deposit Insurance Agency capitalised EUR 4bn

10

…with a clear consolidation trend

Number of banks continues to decline Increasing asset concentration in the banking sector, mostly because of larger share of state-owned banks

1 29

9

1 25

3

1 18

9

1 13

6

1 10

8

1 09

4

1 08

3

1 08

0

1 07

8

76,5%

80,6%81,7% 81,3% 81,4% 81,6%

75,0%73,8%73,3%

0

200

400

600

800

1000

1200

1400

1600

1800

31.12.04 31.12.05 31.12.06 31.12.07 31.12.08 31.03.09 30.06.09 31.07.09 31.08.0960,0%

65,0%

70,0%

75,0%

80,0%

85,0%Number of banks TOP-50 share in total assets, %

11

Nordea Russian operations

Nordea Bank Russia – a full service bank…The Bank possesses all the necessary banking licenses and provide a full range of financial products and services to corporate customers, households, and financial institutions.

Account servicesCash managementPaymentsNet BankLendingLeasingFactoringDeposits

MortgageCar loansConsumer lendingDepositsCardsNet Bank

Correspondent accountsSyndicationsFX-tradingCustody servicesBond issues

Arrangement of bond issuesTrade and Project financeCapital Markets Products

Corporate customers

Household customers

Financial institutions

Internet tradingBrokeragePaymentsPrivate banking

…with an attractive position in 15 regionsCurrently the Bank’s sales network comprises 49 full-service branches and mini-offices in 15 regions of Russia.

Samara

Sankt-Petersburg

MoscowArkhangelsk

Yaroslavl

LipetskBelgorod

Stary Oscol Voronezh Penza

Rostov VolgogradSaratov

EkaterinburgChelyabinsk

Novosibirsk

Highly integrated part of Nordea group…

2006 2007 2008 2009

Nov 2006 Agreement signed

to purchase 75.01% of JSB

Orgresbank

March 2007 Deal finalized – remaining part owned by top managers and

EBRD

May 2009 JSB Orgresbank

100% consolidated –

increased equity

June 2009 Changed name to OJSC Nordea Bank – transfer

of bank licenses

Coordination of all activities with NEM Management, through steering committee, ExCom and Board of Directors

Setting up information flows and reporting routines

Integration of credit processes:

Credit memo

Powers to act

Coordination of operations with Group Treasury

Nordic team transferred from IMB, product line updated

Priority areas for integration since acquisition in November 2006…

…and integration continues at high speed

Finance

Credit

Market and operational risks

Treasury

IT

HR

Capital Markets Products

…with continued strong performance 5 star top rating as most reliable bank in Russia – Forbes 20 March 2009

Strong inflow of solid new customers # 8 in rating of most profitable banks

# 18 in rating Corporate lending # 27 in terms of total assets – up from # 77

Assets, bEUR

1,2

2,3

3,8

4,44,2

0,8

4,1

4,6

2,9

2,0

0,9

0,0

1,0

2,0

3,0

4,0

5,0

1Q20

07

2Q20

07

3Q20

07

4Q20

07

1Q20

08

2Q20

08

3Q20

08

4Q20

08

1Q20

09

2Q20

09

3Q20

09

Operating profit, mEUR

6,1

12,5

22,1

39,7

7,911,1

14,1

9,8

32,4

5,7

37,4

-

5

10

15

20

25

30

35

40

45

1Q20

07

2Q20

07

3Q20

07

4Q20

07

1Q20

08

2Q20

08

3Q20

08

4Q20

08

1Q20

09

2Q20

09

3Q20

09

Loan portfolio, bEUR

0,4 0,5 0,8 1,11,6

2,1

3,03,6 3,7 3,4 3,5

0,3

0,3 0,30,3 0,3

0,2

0,1

0

1

2

3

4

5

1Q20

07

2Q20

07

3Q20

07

4Q20

07

1Q20

08

2Q20

08

3Q20

08

4Q20

08

1Q20

09

2Q20

09

3Q20

09

Corporate Loans, bEUR Retail Loans, bEUR

0,4

0,8

1,72,2

3,3

3,8

1,2

0,5

4,03,7 3,7

30,8 34,1 38,0 39,5 41,6 42,6 43,6 43,9

6,36,3

6,4 6,76,7 6,7 6,6 6,5

0

10

20

30

40

50

60

1Q20

08

2Q20

08

3Q20

08

4Q20

08

1Q20

09

2Q20

09

3Q20

09

31.1

0.20

09

P ersonal Customers 000' Corporate Customers 000'

37,1

*** - Total Customers

40,444,4

46,2 48,3 49,3 50,2 50,4

16

Credit portfolio

17

Unchanged thorough credit approval process – lending volumes largely unchanged 2009

2007 2008 End Sep 2009

Poland Russia Latvia Estonia Lithuania

New European MarketsTotal lending, EURbn

9.8

15.3 15.0

Credit assessment principles, credit policies, credit organisation as well as top management largely unchanged for the last 9 years

Main lending principlesCash flow based

Corporate customer target lists, households with medium and above income level

Max 10 years for corporate customers, up to 40 years for housing loans (18 years average)

Transparency (ownership, finances, operations)

Specific requirements for debt servicing and repayment levels

Buffers or hedging required for interest rate fluctuations and FX risks

Unified Nordea Group rating system

Strengthened Russian positionBank 31.12.2006 30.06.2007 31.12.2007 30.06.2008 31.12.2008 30.06.2009 31.08.2009

Sberbank 29.73% 27.39% 30.77% 30.35% 30.07% 31.22% 31.76%Alfa bank 3.76% 3.67% 3.44% 3.48% 3.33% 2.87% 2.67%UniCredit bank (former IMB) 1.95% 1.95% 2.02% 2.30% 2.40% 2.18% 2.09%Promsvyaz bank 1.68% 1.87% 1.87% 2.05% 1.92% 1.83% 1.81%Raiffeisenbank 1.82% 2.33% 2.27% 1.97% 2.00% 1.66% 1.62%MDM-bank 1.84% 1.86% 1.36% 1.32% 1.18% 1.07% 1.45%Uralsib 1.94% 1.83% 1.56% 1.56% 1.38% 1.02% 1.02%Nordea Bank (Orgresbank) 0.20% 0.23% 0.41% 0.67% 0.99% 0.93% 0.98%Absolut Bank 0.54% 0.58% 0.65% 0.67% 0.63% 0.53% 0.51%Swedbank 0.18% 0.25% 0.27% 0.28% 0.34% 0.33% 0.33%Citibank 0.50% 0.47% 0.26% 0.29% 0.23% 0.22% 0.26%

Bank 31.12.2006 30.06.2007 31.12.2007 30.06.2008 31.12.2008 31.03.2009 30.06.2009 31.08.2009Sberbank 36.90% 35.14% 31.89% 31.77% 31.29% 31.23% 31.74% 32.01%Raiffeisenbank 1.46% 1.17% 2.19% 2.13% 2.34% 2.37% 2.29% 2.23%Uralsib 1.90% 1.97% 2.08% 2.10% 2.06% 2.12% 2.10% 2.20%UniCredit bank (former IMB) 1.19% 1.38% 1.58% 1.77% 1.96% 1.98% 1.86% 2.04%Alfa bank 1.13% 1.41% 1.61% 1.74% 1.88% 1.92% 1.94% 1.94%Promsvyaz bank 0.66% 0.84% 1.08% 1.32% 1.34% 1.31% 1.30% 1.80%Absolut Bank 0.43% 0.55% 0.80% 1.06% 1.25% 1.31% 1.27% 1.27%MDM-bank 0.93% 1.21% 1.15% 1.05% 1.00% 0.99% 0.94% 1.25%Citibank 0.83% 0.81% 0.74% 0.76% 0.86% 0.92% 0.96% 0.97%Nordea Bank (Orgresbank) 0.04% 0.10% 0.18% 0.22% 0.26% 0.27% 0.27% 0.27%Swedbank 0.02% 0.02% 0.04% 0.07% 0.13% 0.15% 0.15% 0.15%

Market share retail lending

Market share corporate lending

19

Majority of corporate lending towards solid segments

Other materials11%

Energy20%

Metals/Mining18%

Retail trade5%

Transport9%

Telecom3%

Other 15%

Real estate12%

Household7%

Sector split RussiaTotal lending EUR 3.5bn Large share of exposure towards

companies on the Russian government’s list of 295 strategically important entities

Limited Household lending -insignificant exposure towards car leasing and consumer credits

Gross impaired loans in Russia increased 10% to EUR 44m in Q3 –growth rate in Q2 43% and Q1 42%

Majority of impaired loans refer to Retail trade, Consumer staples, Construction and Household lending

Total allowances EUR 33m

Coverage ratio 75%

Solid collateral position covering the non-provisioned exposures

115

73

4534

123

736062

26

92

Q3 08 Q4 08 Q1 09 Q2 09 Q3 09

Gross impaired loans Total allowances

Bps

Key trends – Russian credit marketLoan interest rates* (according to the methodology of the Central Bank of Russia "loans granted to non-financial organizations)

NPL dynamics by sectors

Currency denominations of the loans and deposits in the sector

Corporate loan repayment schedule (as of September 1)

0,0

40,0

80,0

120,0

<1 month 1-3 month 3-6 month 6-12month

1-3 years >3 years

Foreign currency Local currency

bEU

R

4,5% 4,8%

4,2%

2,1%1,5%1,3%1,3%1,4%1,4%

1,3%1,4%

0%

1%

2%

3%

4%

5%

6%

7%

31.1

2.04

31.1

2.05

31.1

2.06

31.1

2.07

31.0

3.08

30.0

6.08

30.0

9.08

31.1

2.08

30.0

6.09

31.0

7.09

31.0

8.09

Corporate Retail T otal,%

74% 70%53% 53%

88% 88%76% 69%

26% 30%47% 47%

12%24% 31%

12%

0%

20%

40%

60%

80%

100%

31.12.08 31.08.09 31.12.08 31.08.09 31.12.08 31.08.09 31.12.08 31.08.09

local currency (RUR) foreign currency

Retail deposits Corporate deposits Retail credits Corporate credits

21

Clear direction for Russian operations

22

Nordea short term focus – cost, risk and capitalMonitoring and supporting existing customers

New lending customers - only well-known names with strong credit rating

Nordea has relationships with a number of strong companies; world-leading in their respective field

Pro-active risk management

Strict control of capital usage

Streamline organizational structure – align with the rest of the group

Development of the IT infrastructure and system support

Strengthen Nordea brand – targeted marketing campaign and retail promotion

Strong emphasis on corporate business

Further develop relations with 295 companies from the governments list of strategically important entities - ensure good quality of credit portfolio

Prioritized industries:

Oil and Gas

Energy and Telecoms

REMI

All industries of targeted Nordic customers

Implement ambitious business plan for Nordic and International companies

Increase cross-selling of non-credit product and services

Intensify ECA-covered financing

Average margins high in a European comparison

Retail Business – low banking product penetration

Full service bank – core products in place

Improved processesRetail credit processes redesigned in line with Nordea procedures

Segmentation principles

360 degree meetings – further development of CRM technology

1-1 contact policy

Multichannel distributionActive usage of Contact Centre and Net Bank

Training system for retail staff

Knowledge transfer on branch network is completed, new concept is under development

Preparing for Retail expansion if and when visibility clears

25

Concluding remarks

26

Concluding remarks

26

Strengthened position in Russia – operating profit up more 70%

Firm cost management and increased operational efficiency

Pro-active risk management – prudent credit approval process

High quality Russian portfolio – focus on top-tier 295 local companies and Nordic entities

Macro pressure easing - still a long way to recovery

Unchanged long-term strategy – short-term focus on cost, risk and capital

New European Markets – an important part of the journey towards Great Nordea

The leading Nordic bank,acknowledged for its people, creating superior

value for customers and shareholders.