1. A Great European bank, acknowledged for its people, creating superior value for customers and shareholders
Customer Experience: A Key Function to Improve Throughout Pricing and Billing
Ronni Lück
September 2014

2. Nordea is the largest financial services group in the Nordic and Baltic Sea region
Nordea = Nordic ideas
11 million customers
- 8 home markets - Approx. 10 million personal customers corporate customers, incl. Nordic Top 500
Distribution power
- Approx. 800 locations in total
- Approx. 7 million Netbank customers
- Approx. 1.4 million mobile users
Financial strength
- EUR 10.0bn in full year income (2013) - EUR 637bn of assets (Q2 2014) - EUR 28.8bn in equity capital (Q2 2014) - AA credit rating
- Core Equity Tier 1 capital ratio of 15.2% (Q2 2014)
EUR ~41.7bn in market cap
- One of the largest Nordic corporations - A top-10 European retail bank

3. Nordea was created through a string of mergers
Pre-70
300 banks
1970’s
80 banks
1980’s
30 banks
1990’s
4 banks
2000’s
1 Nordea

4. ”
Everything everybody does in Nordea has one purpose: to create great customer experiences! - Christian Clausen, President and Group CEO

5. Strong customer-orientated values and culture
A Great European bank,
acknowledged for its people, creating superior
value for customers and shareholders
Great customer experiences
It’s all about people
One Nordea team
Foundation: Profit orientation and prudent cost, risk and capital management

6. Competent and dedicated employees
Great customer
experiences
Why Nordea?
Financial strength
and top rating
Competent and dedicated employees
Wide range of
products, services
and solutions

7. Nordea - the safest bank in the Nordic
On Global Finance list of the 50 safest banks in the World. Based on the Worlds 500 largest banks long term credit rating
Nordea no. 21. on the list
A recognition of Nordea’s strong capital and healthy risk culture. Which can be derived from our ability to create great customer experiences

8. Nordea’s business model has proven highly effective…
TOTAL OPERATING INCOME, EURm
COMMENTS
Low volatility in earnings due to diversification in terms of geography, industry sectors and products
Main focus on traditional banking
Universal and diversified banking model
Customer-driven capital markets operations
The model has proven resilient on income and profitability

9. … with one of the most stable profit development among banks in Europe
Profit before tax development through the financial crisis (indexed)
Index = 100
Nordic peers*
Nordea
Euro peers**
* Nordic peers: Danske Bank, DNB, SEB, SHB, Swedbank
** Aggregate of a selected number of banks in the European peer group: BBVA, BNP Paribas, Commerzbank, Erste, Intesa, KBC, Santander, SocGen, UniCredit
Source: Datastream

10. Market cap development
EURbn
2009
2010
2011
2012
2013
30 Jun 14 1
Santander
95.2 2
BNP Paribas
66.2 3
BBVA
47.7 4
Intesa
39.5 5
Unicredit
39.3 6
Lloyds
36.3 7
Soc Gen
36.2 8
Barclays
25.4 9
Deutsche
30.8 10
NORDEA
28.7 11
Credit Agricole
28.6 12
RBS
18.5 13
SHB
12.4 14
DNB
12.3 15
Danske
11.0 16
KBC
10.9 17
Erste
9.8 18
SEB
9.5 19
Swedbank
8.0 20
Commerzbank
7.2 1
Santander
66.0 2
BNP Paribas
57.0 3
Lloyds
52.2 4
Barclays
37.2 5
Deutsche
36.3 6
BBVA
34.0 7
NORDEA
32.8 8
Soc Gen
30.0 9
Unicredit
29.9 10
RBS
26.7 11
Intesa
25.7 12
Credit Agricole
22.8 13
DNB
17.1 14
SHB
14.9 15
SEB
13.6 16
Danske
13.4 17
Erste
13.3 18
Swedbank
12.1 19
KBC
9.1 20
Commerzbank
7.0 1
Santander
50.3 2
BNP Paribas
36.7 3
BBVA
32.8 4
Deutsche
27.3 5
Barclays
25.7 6
NORDEA
24.2 7
Lloyds
21.3 8
Intesa
21.0 9
RBS
14.3 10
Soc Gen
13.4 11
SHB
12.7 12
Unicredit
12.4 13
DNB
12.3 14
Swedbank
11.6 15
Credit Agricole
10.9 16
SEB
9.9 17
Danske
9.1 18
Commerzbank
6.7 19
Erste
5.3 20
KBC
3.5 1
Santander
63.0 2
BNP Paribas
52.9 3
Lloyds
41.6 4
Barclays
39.6 5
BBVA
37.9 6
Deutsche
30.7 7
NORDEA
29.3 8
RBS
24.3 9
Soc Gen
22.1 10
Unicredit
21.4 11
Intesa
20.2 12
SHB
16.8 13
DNB
15.6 14
Credit Agricole
15.2 15
Swedbank
14.1 16
SEB
14.0 17
Danske
12.9 18
KBC
10.3 19
Erste
9.5 20
Commerzbank
8.4 1
Santander
73.7 2
BNP Paribas
70.5 3
Lloyds
67.7 4
Barclays
52.7 5
BBVA
51.8 6
NORDEA
39.7 7
Deutsche
35.4 8
Soc Gen
33.7 9
Unicredit
31.1 10
Intesa
27.8 11
RBS
25.2 12
Credit Agricole
23.3 13
Swedbank
23.2 14
SHB
22.3 15
DNB
21.1 16
SEB
20.8 17
KBC
17.2 18
Danske
16.8 19
Commerzbank
13.3 20
Erste
10.9 1
Santander
89.9 2
Lloyds
66.2 3
BNP Paribas
61.7 4
BBVA
54.8 5
Barclays
43.6 6
NORDEA
41.7 7
Unicredit
35.9 8
Deutsche
35.5 9
Intesa
35.0 10
SocGen
30.6 11
Credit Agricole
26.5 12
RBS
25.8 13
SHB
22.3 14
Swedbank
21.9 15
DNB
21.8 16
SEB
21.2 17
Danske
20.8 18
KBC
16.6 19
Commerzbank
13.0 20
Erste
10.2

11. Expenses under solid control
TOTAL EXPENSES*, EURm
COMMENTS
Costs are down 3% compared to previous quarter
Cost/income ratio improved 0.8% to 48.7%
* Excluding restructuring charge in Q2/14
11 •

12. Strong capability to generate capital
COMMON EQUITY TIER 1 CAPITAL*, EURm
COMMENTS
Dividend payout (accrued dividend for H1/14)
CET 1 capital
Doubled the capital base in 7 years
Increased CET 1 ratio from 6.8% to 15.2%
CAPITAL GENERATION**, EURm
Acc. Dividend incl. accrued dividend , EUR 850m***, for H1/14
Acc. retained equity
* Basel 2.5 until FY Basel 3 from 2014
** Dividend included in the year profit was generated. Excluding rights issue (EUR 2 495m in 2009).
*** Assumes a 56% payout ratio
12 •

13. Well diversified Nordic-centric portfolio…
Q2 2014
96% of portfolio in the Nordic countries
Lending: 55% Corporate and 45% Household
Credit portfolio
by country
EUR 347bn
Credit portfolio
by sector
EUR 347bn

14. … generates low credit losses over a business cycle
LOAN LOSSES, BPS
COMMENTS
Since 2002, Nordea’s loan losses have averaged 16 bps of total lending
Historically low credit losses are the result of a well diversified credit portfolio, a rigid risk management process as well as low risk appetite
Loan loss ratio Q2/14 amounted to 16 bps, broadly in line with our credit risk appetite
16 bps

15. The future Strong starting position
Recognizing and adapting to a changing world
Therefore focus on simplification and being agile

16. Continued transformation driven by customer needs
The banking sector is transforming, with swiftly changing customer behaviour towards increased use of online services.
This changing behaviour and our customers’ future needs are the main drivers of the changes in Nordea as we transform the relationship bank and follow them online to deliver service and advice on the platforms and in the channels they prefer

17. Continued transformation driven by customer needs
As a prerequisite to becoming more agile in response to the rapidly changing customer needs, we have also embarked on a process of simplification.
We are reviewing our processes, products, legal structure and IT systems with the aim of reducing complexity and innovating our business model to the benefit of our customers

18. Current Landscape
Nordea Capital Markets Services are currently using an invoicing and reporting platform based on outdated software, for our Sub Custody services
The Key challenges we are facing with the current system are:
Aging and obsolete technology, adding complexity to our infrastructure
Old hardware platform
Costly maintenance
Skill set shortage
One of many invoice solutions
Nordea Capital Markets Services need to replace the current invoicing system for our Sub Custody services due to a burning platform
Nordea Capital Markets Services envisions that the replacement software will in the future be used as a standard component for invoicing services in Capital Markets Services

19. Why ORMB
Nordea Capital Markets Services has done a vendor selection, where Oracle Revenue Management & Billing (ORMB) was chosen based on the following criterias
Functionality
Safekeeping, transaction and other charges
Distribution and layout
General
System interface and user rights
Application fits as a standard component
Fits in Nordeas infrastructure
Oracle Databases
WebLogic application server
Total Cost of Ownership

20. Benefit from implementing ORMB
Complete integration into our infrastructure
Modern platform based on a Oracle technology stack
Integration of Customer information
Integration of Distribution information
Integration of Calendar information
Separation of functionality (reporting and billing)
Automate our current manual processes
Less work, use our time to support our customer, not our system
In-house development and maintenance
Solution easier to upgrade
Simplified and flexible solution that can scale to our needs
Improved pricing governance
Product offer management
Less complex product structure

22. ”
Everything everybody does in Nordea has one purpose: to create great customer experiences! - Christian Clausen, President and Group CEO