2. Highlights Q1 2009
Operating profit (SEKbn)
Strong underlying business
4.2 4.6 3.7 4.6 2.4 3.5 2.5 4.0 1.8
SEK 4.8bn before provisions for credit
losses and impairment charges Q1 Q1 Q1
07 Q2 Q3 Q4 08 Q2 Q3 Q4 09
5
Stable cost development 4
3
Doubled collective provisions in
2
the Baltic countries 1
0
Full goodwill write-off in Ukraine
-1
-2
Strong capital position after
-3
successful rights issue Profit before gains and credit losses
Credit losses
Goodwill impairment
Participation in Swedish Funding
Guarantee Programme
2
3. Continued high operating income
● Strong net interest income
● Lower commission income
● Robust net financial income; M-t-M valuation losses of SEK 0.4bn
● Re-bounce of life insurance income
● FX translation effects SEK +0.7bn Q1 09 vs. Q1 08
Operating income
SEK bn Income
Excluding one-offs and portfolio losses
12
8
4
0
Q1 07 Q2 Q3 Q4 Q1 08 Q2 Q3 Q4 Q1 09
3
4. Income well diversified
Net financial income
Net interest income Net fee and
-15% +112%
+40% (excl MTM portfolios)
commission income
SEKm and change
Q1 08 Q4 08 Q1 09
Q1 09 vs. Q1 08
Total NII +12%
1,680
growth
1 952
1 393
-25%
Volume
551 1 111
1 345
-20%
Growth
-35%
930
569
Margin 648 517 462
20
Development
142
1,110
Other Advisory Value Base Other FX Capital markets,
and based services equities,
brokerage portfolios, etc.
4
5. Lower interest rates boost
Net interest income
Net interest income +40% Big impact from falling short-term interest rates
+12%
Drop in quarterly average overnight interest rates
Total NII
SEK EUR USD
1,680
growth
-25%
Volume
-2.8%
-2.8% -3.2%
551
Growth
Margin
20
Development
Q1 09 vs Q1 08 Q1 09 vs Q4 08
Portfolios etc +1,529 +759
Book equity -419 -378
Other 1,110
Net 1,110 392
5
6. Income well diversified
Net financial income
Net interest income Net fee and
-15% +112%
+40% (excl MTM portfolios)
commission income
SEKm and change
Q1 08 Q4 08 Q1 09
Q1 09 vs. Q1 08
Total NII +12%
1,680
growth
1 952
1 393
-25%
Volume
551 1 111
1 345
-20%
Growth
-35%
930
569
Margin 648 517 462
20
Development
142
1,110
Other Advisory Value Base Other FX Capital markets,
and based services equities,
brokerage portfolios, etc.
6
7. Underlying costs levels under control
Cost management program 2007 – 2009
500 net FTE
Achieved by Q1 2009 Target by Q4 2009
reduction 2009
*
SEK 1,304m SEK 1,500 – 2,000m 230 FTEs by Q1
Unchanged operating expenses on comparable basis
SEKm Change Q1 2009 vs. Q1 2008
“Business related” “Market related”
594
388
Q1 2008 Q1 2009
240 195
68
6,027 7,244
6,067 6,650
-275
Cost Inflation, Redundancies Pensions FX translation Goodwill
efficiency acquisitions impairment
etc.
7
8. Merchant Banking strengthening its position
Nordic target market
GTS Corporate Banking TCM
100
Core
SEKm
banking
6,000
relation-
ships
%
Large
corporates
3,000 Nordics
Large
corporates
Sweden
0
100
0
0
Perceived
Q1 08 Q1 09 Q1 08 Q1 09
100
quality
Profit before
Income
credit losses
2008 2009
NB. MTM portfolio losses SEK 0.4bn lower in Q1 09
8
9. Strengthened franchise in Merchant Banking
Market shares, Nordic stock markets Supporting clients’ exports
Trade finance portfolio volumes, indexed
Jan – March, 2009, per cent
200
+77%
SEB
180
9,5%
Enskilda
160
140
SHB
5.7%
120
Morgan 100
Stanley 4.5%
80
60
Deutsche
Bank 4.3% 40
20
Credit
Suisse 4.2% 0
Q1-07 Q1-09
9
10. Merchant Banking – Investment portfolio
Volume reduction partly offset by FX Mark-to-market loss
131
123
SEK m Q1 08 Q4 08 Q1 09
Volume FX Structured
101
-30 +22
63
credits P/L -872 -187 -454
62
50
Financial Equity -1,630 -585 -441
institutions
55 45 -2,502 -772 -895
38
Covered
13 13 16
bonds etc The unrealised valuation loss on 2008 reclassified securities in
Q1 08 Q1 09
Q1 09 the quarter was SEK 3,075m.
Reported
FX adjusted*
Rating status of Structured credits
Q1-08 Q2-08 Q3-08 Q4-08 Q1-09
100% 88.5%
● Rating actions on 31
80%
out of 615 positions
60%
during this quarter
40%
● No impaired assets
20% 2.7% 3.8% 3.0% 2.1%
● No level 3 assets
0%
AAA AA/A BBB BB/B CCC/CC
* Using FX rates as of 31 March 2008
10
11. Germany – potential and challenges
Operating profit 2005-2008 Operating profit Q1 2009
(SEKm) (SEKm)
1 600
Q1 08 Q1 09
1 200
291
M +76%
B
800 165
400
R Q1 08 Q1 09
0
E
-212
T
-400
A
38
I
2005 2006 2007 2008
L
Treasury Customer Business
● Further steps to separate Retail from Merchant Banking
and Asset Management have been formalised
● Attractive corporate growth segment for SEB
● Stable asset quality
11
12. Retail Banking income holding up
Lending volumes in local currency
Germany Lithuania Latvia
% change, Q1 2009 vs Q1 2008
Estonia Card Sweden
SEK m
5,000 9%
Since year-
end -5%
Swedish
Retail +9%
5%
Swedish
2,000
Retail +20%
-3 %
Q1 08 Q1 09 Q1 08 Q1 09
-3 %
-5%
Profit before
Income credit losses
-1,000 Sweden Estonia Latvia Lithuania Germany
12
15. A successful rights issue
Key themes
Trading performance since announcement
150%
●SEK 15,070m added
140%
●Strong primary take-up –
130%
98.6%
28.0%
120%
●Secondary rights
Strong
Outperformance
Indexed Price
110%
oversubscription
0.9%
100%
●Broad Institutional Support
(1.8%)
90%
(12.4%)
●Very significant retail
80%
participation
70%
●Strong liquidity in shares and
60%
rights
4- 10- 16- 22- 28- 6- 12- 18- 24- 30-
Feb Feb Feb Feb Feb Mar Mar Mar Mar Mar
SEB Euro Stoxx Banks Nordic Banks Composite OMX
Source: Bloomberg as of 30-Mar-2009
Note: Nordic Banks Composite consists of Swedbank, Nordea, Danske Bank, DNB Nor and SHB
15
16. Strong capital situation
Capital ratios, Basel II without floors Risk-weighted assets
SEK bn
Per cent Core Tier 1 ratio Tier 1 ratio
15%
Q4 2008 818
12.0 Migration FX
10.2
20 12
10%
Long-term Basel II Tier 1 target
12 8
5%
Other Extended
Required minimum Tier 1 in order to
IRB roll-
qualify for Swedish stabilisation
outs
830
measures is 4%
Q1 2009
0%
16
17. Buffering up for Baltic challenges
Impaired loans, gross
Provisions for Net Credit Losses
% of credit exposure excl. banks
% of Q1 2009, SEB Group SEK 2,386m
Estonia Latvia Lithuania
Q4 2008* Q1 2009*
4.0%
Estonia 0,76 1,73 3.5%
3.0%
Latvia 2,86 6,41
2.5%
Lithuania 3,33 3,59
2.0%
Baltics 2,59 3,70 1.5%
1.0%
0.5%
0.0%
Baltic countries Dec '07 Mar '08 Jun '08 Sep '08 Dec '08 Mar '09
71% Provisioning to build-up reserves
SEK m Specific Collective
1,200
1,000
29% 800
600
400
200
Nordics, 0
-200
Germany, etc.
*Annualised figures Q4-07 Q1-08 Q2-08 Q3-08 Q4-08 Q1-09
17
18. Conservative provisioning policy
Gross level of Impaired loans
Individually assessed, per cent of lending
Group Baltics
2.9
2.0
0.9 0.8
0.7
0.4
Q1 08 Q4 08 Q1 09
Reserve ratios*
% Q1 08 Q4 08 Q1 09
Group 76.9% 68.5% 71.6%
Baltics 139.9% 59.6% 69.3%
• excluding homogeneous groups
18
19. Sharp economic deterioration
in Ukraine
Dramatically changed economic environment since acquisition in
2004 and 2007
No expansion plan
Full goodwill write-off SEK 594m
GDP forecast Initial and revised
GDP forecast
12
8
4
0 Lending SEK 2.7bn
2005 2006 2007 2008 2009
Customers 105,000
-4
# of branches 100
-8
Employees 1,331
Q1 09 op profit SEK -153m
-12
19
20. Merchant Banking – Private equity and
Shipping/Offshore
Shipping and Offshore Finance
Private Equity (Acquisition Finance)
Credit exposure, SEKbn
Outstanding volumes, SEKbn
50
Equity & mezzanine FX effect
Other
0.6bn*
Senior debt 25.5 45
25.2 Ferries
RoRo
40 FX effect
7.5bn*
Cruise
20.2 35
18.6 Container
30 Bulk
25 LNG
Gas Carrier
24,0
23,7 20
Car Carriers
18,1 17,4 15
Tanker
10 Cruise**
Yard (Cruise)
5
Offshore
0
FY 2006 FY 2007 FY 2008 Q1 2009 FY 2006 FY 2007 FY 2008 Q1 2009
* Effect of weaker Swedish krona * * Guaranteed by Export Credit Agencies
20
21. Property management
Commercial property sector
SEK bn 9%
SEK 44bn
Lending
SWEDEN
16%
SEKbn
228
228 Offices 49%
Commercial 3%
Retail
Multi-family Hotels
Logistics/warehouse and other
186 Residential
23%
170
22%
SEK 47bn 26%
GERMANY
143 143
Offices
116 Retail
102 Hotels 17%
Logistics/warehouse and other
Residential
28%
7%
Other 4
18%
SEK 28bn 29%
Germany
85
BALTICS
29 Offices
85 Retail
72
68 Sweden Warehouse & Industrial
52 Residential 25%
Land plots
Other 15%
2% 11%
FY FY FY 'Mar
Other Nordic amounts to SEK 16bn, Other SEK 8bn
2006 2007 2008 2009
* By obligor’s domicile
21
22. Stable asset quality outside CEE
Level of Impaired Loans* Level of net credit losses*
SEB Group Germany Germany Baltics
Nordic Baltic Nordics SEB Group
4,00
3,0%
3,50
2,5%
3,00
2,0%
2,50
1,5% 2,00
1,50
1,0%
1,00
0,5%
0,50
0,0% 0,00
Dec Mar Jun SepDec Mar Jun SepDec Mar 2004 2005 2006 2007 2008 Mar
'06 '07 '07 '07 '07 '08 '08 '08 '08 '09 '2009
* % of Credit Exposure excluding Banks *Annualised figures
22
23. Resilient income generation
– first line of defence
12-month rolling earnings generation excluding one-off effects
SEKm
50
Operating income
40
30
Profit before credit losses
20 and goodwill
10
Operating profit
0
Q1-05 Q2-05 Q3-05 Q4-05 Q1-06 Q2-06 Q3-06 Q4-06 Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 Q3-08 Q4-08 Q1-09
Profit before credit losses
Merchant Retail Wealth Life
3,3
SEK bn SEK bn SEK bn SEK bn
1,6 1,3
1,0
0,5
0,5 0,2 0,3
Q1 2008 Q1 2009 Q1 2008 Q1 2009
Q1 2008 Q1 2009 Q1 2008 Q1 2009
23
24. Support revenue generation
– focus on core clients
– key competitive advantages
Prompt addressing of problem
credits
Maintain adequate buffer of
capital and reserves
24
