As the world begins to look forward to profound economic contraction, some will be hoping the return to growth will be fast, while the prudent are preparing for months – if not years – of downturn. But recessions like this are not necessarily only ‘once in a decade’ inflection points for risk. They are also sources of opportunity. The question is how can you mitigate short-term risk while positioning yourself to capture longer-term opportunities? We will take a CEO and Board perspective on the challenges and opportunities posed by the current situation, while exploring the tools on hand to navigate through it.

1. 1

2. Source: OECD, 2019 and Swedbank Economic Outlook 2020. Danmarks Nationalbank’s worst-case scenario for Denmark 2020 is represented via red dotted areas, 2020
1) Norway, Sweden, Denmark and Finland
We are crashing into another major
contraction and a unique recession situation
3
% Weighted average annualised growth in real GDP for the Nordics1
-10
-9
-8
-7
-6
-5
-4
-3
-2
-1
0
1
2
3
4
5
1996
1971
1976
2021
1986
1981
2006
1991
2001
2011
2016
2020FORECAST

3. 4
Recessions impact some industries harder than others
Source: Implement Consulting Group
Industries’ expected impact of the COVID-19 recession
Very
Negative
Positive Very
Negative
Short-term expected impact on business growth
Business
services
Textile
Advertising
and marketing
Food retail
Automotive
trade
Travel
agencies
Telecom.
Restaurants,
bars etc.
Mail and delivery
services
Building
contractors
Expectedimpactonprofitability
Pharma and
MedTech

4. 5
Sectors don’t fully explain the numbers – strategy and execution matter
Source: SCB, 2020
ROE for companies with >50 employees in selected sectors in Sweden, 2009
-60
-40
-20
0
20
40
60
80
100
Lower quartile Median Upper quartile
Business
services
TextileFood retail Automotive
trade
Travel agenciesTelecom.Restaurants,
bars etc.
Building
contractors
ROE %

5. 6
IN THE SHORT TERM,
implementing necessary checklist actions at the highest possible speed is critical
Ensure health and
well-being of
employees
New work
protocols
Establish crisis
communication
Leadership and
management on
remote
People’s
safety first
Reduce all
unnecessary costs
immediately
Conserve cash
Find and tap into any
available untapped
financing or cost
reduction potential or
new revenue
streams
Financial
housekeeping
Overdeliver on
customer important
needs
Stay close to the
customers
Invest in winning
every deal (close to
core)
Customer
engagement
Stabilise,
secure supply
Build contingency
plans for different
operational
scenarios
Supply chain
Focus activities on
the core business,
core customers and
core operations
Protect your key
people talent
Investigate potential
divestures
Strengthen the
core business

6. THE CORONA CRISIS IS UNIQUE IN ITS NATURE,
and we expect long-lasting impact on how we do business
7
Truly launching the
digital workplace
Re-imagining the role of
just-in-time
From global to regional
supply chains
Agile for
real workforce
Fundamentally changed
consumer values and behaviours
Potential gamechangers as reactions to the Corona crisis:

7. 8
… and a game plan to
Invest to gain share
Win every customer/
deal worth winning
Scoop up bargain or game-
changing acquisitions that
reinforce the core
Seize, explore, pilot and exploit
irreversible change, e.g. in
consumer behaviour, to build
new business
Create urgency and flexibility to
Cash is king in the short term
Manage costs carefully
(brutal where possible but be
selective where necessary)
Dispose of non-core assets
Overdeliver on customers’
greatest needs
IT’S KEY FOR COMPANIES NOW
to balance short-term risk with long-term opportunities

8. Realise the new cost base
Is your company progressing
with these crisis management actions?
WHAT IS THE PLAN THEN?
Short, near, longer term
9
Ensure that the structural cost alignments are fully implemented and
operation stabilised/sustainable with new and improved cost structure.
SHORT TERM MEDIUM TERM
Cover your bases – immediate reactions
People
security
Financial
strength
Customer
engagement
Supply
chain
Focus on
the core
Seize long-term opportunities and adjust your position
Add on acquisitions to grow in new areas
and strengthen the core
- New opportunities on the market
(competitors divesting)
- New price level opening up new
discussion
Capture and adjust to
new consumer behaviour
• Be quick to observe and adjust new consumer
behaviour and provide CX needed to win in
target segments
• Explore new sales channels
Transform to an agile business
– for real
• Agile ways of working to rapidly changing
environments
• Agile business model to adapt salesforce,
supply etc. according to environment
Add on acquisitions to grow in
new areas and strengthen the core
• New opportunities on the market
(competitors divesting)
• New price level opening up new discussion
Lower headcount and higher span of control (delayering)
Increased use of digital and virtual processes
Optimised footprint
Optimised use of outsourcing and offshoring
Improved agreement with suppliers
LONGER TERM