1. Salaried employees Illness / retirement / pension / death ITP 1 & 2 ITP 12015-01

2. The ITP Plan Companies bound by collective agreements have to implement ITP 1, after approval (Collectum), for all salaried employees ITP 1 Plan since 2007 Born in 1979 or later ITP 2 Plan since 1960 Born in or prior to 1978 ITP 22015-01 Supplementary pension for salaried employees in industry and commerce

3. The ITP Plan ITP 1 Defined premiums 18 years Health insurance 25 years Retirement pension Waiver of premium ITP 2 Defined benefitsDefined premiums 18 years Risk insurance - health insurance - waiver of premium ITPK (28 years) - retirement pension - survivors' cover 28 years Retirement pension Family pension The employer can offer salaried employees with salaries > 10 iba - alternative ITP - ITP 1 ITP 32015-01

4. Pension commitment Defined premiums No guarantee of the size of the pension Determined by premiums, return and fees Cost known Defined benefits Guarantees a defined pension Pension on final salary The cost is difficult to predict ITP 1 and ITPK ITP 2 ITP 42015-01

5. When does ITP apply? Post-employment cover 3 months ITP 1 Irrespective of type of employment - health insurance from 18 years - all benefits from 25 years ITP 2 At least 8 hours/week Permanent (incl. probation) - all benefits Limited ≤ 3 months no benefits > 3 months all benefits retroactive from day 1 ITP 52015-01

6. The employer submits a notification of illness after 90 days of illness Sickness - salary < 7,5 pba 7,5 pba 10% ITP days 91 - 360 10% collectively agreed sick pay salary 14 365 65 years 64% sickness compen- sation 15% ITP 80% sick pay 80% sickness benefit 75% sickness benefit 190 ITP 62015-01

7. Sickness - salary > 7,5 pba 14 65 years 80% sick pay 90% collectively agreed sick pay 65% ITP 1 7,5 pba 20 iba 30 iba 32,5% ITP 90 The employer submits a report after 90 days of illness salary ITP 72015-01

8. Sickness 10% collectively agreed sick pay 80% sick pay 90% collectively agreed sick pay 65% ITP 7,5 pba 20 iba 30 iba 32,5% ITP 10% ITP days 91-360 salary 14 365 65 years 64% sickness compen- sation 15% ITP 80% sick pay 75% sickness benefit 1 90 80% sickness benefit (max. 550 days) The employer submits a report after 90 days of illness ITP 82015-01

9. Waiver of premium insurance ITP 1 - after 14 days of illness - parental leave (13 months) - leave for child care (at least 25 %) Waiver of premium - in proportion to the degree of work incapacity Premiums are paid from the age of 25 ITP 2 - after 90 days of illness and at least 25% sick leave Waiver of premium - in proportion to the degree of work incapacity (currently full waiver of premium) Waiver of premium from day 15 Waiver of premium from achieved qualifying period of 90 days ITP 92015-01

10. Waiver of premium insurance - sickness ITP 1 After 14 days of illness and at least 25% sick leave Waiver of premium - in proportion to the degree of work incapacity ITP 2 After 90 days of illness and at least 25% sick leave Waiver of premium - in proportion to the degree of work incapacity (currently full waiver of premium) Waiver of premium from day 15 Waiver of premium from achieved qualifying period of 90 days ITP 102015-01

11. Waiver of premium insurance - parental leave ITP 1 Period of parental benefit (13 months) Leave for child care (at least 25%) Waiver of premium - in proportion to the degree of work incapacity ITP 2 Does not apply - recommendation that ITP be maintained for 11 months In the event of leave for child care, the employer pays the premium ITP 112015-01

12. Pensionable salary - ITP 1 Included Gross salary paid/month - overtime, holiday compensation, holiday pay - bonus, commission, performance bonus, etc. No pay ceiling Not included (example) Per diem allowance, travel reimbursement, compensation for use of own car Congestion tax Non-statutory sick pay, e.g. collective agreement Taxable benefits, fully or partially All types of parental pay Costs for use of own car Special rules apply in the event of sickness ITP 122015-01

13. Retirement pension - ITP 1 25 65 years 55 Premium SEK 36 313/month 7,5 iba Lifelong or temporary pension Full or partial 30 % 4,5 % SALARY The employer can pay supplementary premiums ITP 132015-01

14. Premium - ITP 1 7,5 iba is equivalent to SEK 36 313/month 4,64% 30,89% The salary is reported monthly Retroactive salary payments become pensionable in the month they are paid out ITP 142015-01

15. Cost, ITP 1 - example SEK 50,000/month Salary ≤ SEK 36 313 50,000 – 36 313 = 13,687 Retirement pension Waiver of premium Health insurance * % 4,50 0,08 0,06 SEK 1,634 29 21 % 30,00 0,57 0,32 SEK 4,106 78 44 *) salary up to SEK 27 813/month Total SEK 5,912 approx. 12% of salary Total4,641,68430,894,228 ITP 152015-01

16. The employee’s choices Traditional or unit-linked insurance Choice of fund manager Survivors’ cover - repayment cover - family cover Right to move Active choice - ITP 1 ITP 162015-01

17. Comparison Traditional The insurance company manages the premiums Guaranteed basic pension Bonus The size of the pension - determined by premiums, return and fees Fund The individual selects the fund manager No guaranteed pension Development of the unit trusts The size of the pension - value of the unit trusts ITP 172015-01

18. No active choice Traditional insurance with Alecta Choice of fund manager - ITP 1 Traditional pension insurance AlectaAMF FolksamSkandia Liv Unit-Linked insurance AMFDanica Pension SEB Trygg LivSPP Liv Swedbank Försäkring Max. 50% At least 50% ITP 182015-01

19. Survivors’ cover - ITP 1 Repayment cover Pension to survivors Payment for at least 5 years and at most 20 years Family cover Max. 4 pba/year Payment max. 20 years age-dependent premium Beneficiaries spouse partner/cohabitant child(ren) ITP 192015-01

20. Family cover - example cost - 1 pba Age Premium/year Payment 5 years Payment 20 years 25 years SEK 10 SEK 34 35 years SEK 20 SEK 66 45 years SEK 50 SEK 168 55 years SEK 146 * SEK 389 64 years SEK 401 * SEK 475 * ceases at the age of 70 ITP 202015-01

21. Family cover - example aged 45 Gross salary SEK 300,000 Payment period 5 years Premium 4,5 %SEK 13,500 Family cover 1 pba- SEK 50 Gross salary SEK 300,000 Payment period 20 years Premium 4,5 %SE 13,500 Family cover 1 pba- SEK 168 For pensionSEK 13,450 For pensionSEK 13,332 ITP 212015-01

22. Consequences Traditional pension insurance No repayment cover No family cover No active choice - ITP 1 Alecta manages the fund ITP 222015-01

23. Summary Salaried employees born in 1979 or later Applies irrespective of the type of employment Disability pension from age 18 Defined premium pension from age 25 No pay ceiling Active choice Choice of repayment cover and family cover Flexible drawing of retirement pension Summary - ITP 1 ITP 232015-01

24. Overview - ITP 1 Health insurance age 18age 25 age 55age 65 Defined premium pension Waiver of premium Early drawing ITP 1 Statutory pension ITP 242015-01

25. Period of service - ITP 2 Time worked Sickness Parental leave (11 months) Retirement pension Family pension 360 months 28 years65 years Possible co-ordination of another occupational pension for persons born prior to 1952 ITP 252015-01

26. Pensionable salary - ITP 2 Pensionable salary 12,2 x fixed monthly salary Commission, bonuses, etc (average of last 3 years) Regular shift allowance, on-duty remuneration Travel time remuneration Holiday pay on variable salary portions as above (0,5% per holiday day) Entirely free board or lodging Max. 30 iba The employer can report the unreduced salary in the event of - waiving of salary for a benefit - partial retirement In the event of pay rises within five years of retirement age, special rules apply ITP 262015-01

27. Salary cap - ITP 2 Number of months remaining until retirement 59 - 49 months 48 - 37 36 - 25 24 - 13 12 - 1 Maximum pensionable salary increase 1,20 x the iba increase 1,15 1,10 1,05 1,00 Example - 36 months remaining until retirement 2,1% increase in the income base amount in 2015 2,1% x 1,10 = 2,3 % salary increase ITP 272015-01

28. Retirement pension - ITP 2 32,5 % 30 iba 65 % 20 iba 10 % 7,5 iba SEK 1,743,000/year SEK 1,162,000/year SEK 435,750/year age 55 at the earliest lifelong/temporary full or partial ITP 282015-01

29. ITPK - supplementary retirement pension 2% Premium Defined premiums Temporary or lifelong The employer can pay supplementary premiums Max. 30 iba ITP 292015-01

30. Supplementary premiums - ITP 1 and ITPK Supplementary premiums Extra pension provisions May only be taken out for salaried employees who have active ITP 1 or ITPK The premium can be - ongoing/month or one-off premium - fixed or % of salary - premium ladder Waiver of premium insurance - mandatory for ongoing premiums Collectum levies an administration charge on premiums paid in ITP 302015-01

31. The salaried employee chooses Traditional or unit-linked insurance Choice of fund manager Survivors’ cover - repayment cover - family cover Right to move Active choice - ITPK ITP 312015-01

32. Comparison Traditional The insurance company manages the premiums Guaranteed basic pension Bonus The size of the pension - determined by premiums, return and fees Fund The individual selects the fund manager No guaranteed pension Development of the unit trusts The size of the pension - value of the unit trusts ITP 322015-01

33. Choice of fund manager - ITPK Traditional pension insurance AlectaAMF FolksamSkandia Liv Unit-Linked insurance AMFDanica Pension SEB Trygg LivSPP Liv Swedbank Försäkring No active choice Traditional insurance with Alecta ITP 332015-01

34. Survivors’ cover - ITPK Repayment cover Pension to survivors Payment for at least 5 years and at most 20 years Family cover Max. 4 pba/year Payment max. 20 years age-dependent premium Beneficiaries Spouse Partner/cohabitant Child(ren) ITP 342015-01

35. Family cover - example aged 45 Gross salary SEK 300,000 payment period 5 years Premium 2,0%SEK 6,000 Family cover 1 pba- SEK 50 Gross salary SEK 300,000 payment period 20 years Premium 2,0%SEK 6,000 Family cover 1 pba- SEK 168 For pensionSEK 5,950 For pensionSEK 5,832 ITP 352015-01

36. Consequences Traditional pension insurance No repayment cover No family cover No active choice - ITPK Alecta manages the fund ITP 362015-01

37. Family pension - ITP 2 16,25 % 30 iba 32,5 % 20 iba - 7,5 iba SEK 1,743,000/year SEK 1,162,000/year SEK 435,750/year Beneficiaries spouse, children 20 years Lifelong pension Potential to abstain from future premiums Reinforce ITPK ITP 372015-01

38. Final payment - ITP 2 A salaried employee who leaves his job no earlier than the month after his 62nd birthday, in order to retire, has the ITP and ITPK premiums paid by the insurance until his 65th birthday ITP 382015-01

39. Summary - ITP 2 Retirem. pension Family pension 32,5% 16,25%32,5% 65% 32,5%65% (333 750) 10%* (435 750) - Defined benefits Defined premiums * days 91 - 360 30 iba 20 iba 7,5 2 % of salary ITPK (333 750) 15% (435 750) 10% Disability pension sickness benefit sickness compensation Final payment 62 years ITP 392015-01

40. Pension - ITP 2 Retirem. pension Family pension 32,5% 16,25% 32,5%65% Defined benefits Defined premiums 30 iba 20 iba 7,5 iba 2 % of salary ITPK -10% Final payment 62 years ITP 402015-01

41. Alternative ITP - ITP 2 A salaried employee with a salary above 10 iba (SEK 581,000 in 2015) can, by agreement with the employer, choose Alternative ITP (released premium, premium ladder, etc.) ITP 1 ITP 412015-01

42. Changes - ITP 2 Family Cover (2007) - increased number of base amounts and payment period - family cover Retirement Pension (2007) - temporary or lifelong Family Pension (2008) - possibility to reinforce ITPK Coordination Regulations (2009) - abolished for those born in 1952 and later Salary Cap (2010) - follows changes in the income base amount as per table Retirement Pension (2011) - draw fully or partially Supplementary Premiums (2011) - to ITPK ITP 422015-01

43. Summary - ITP 2 Summary Salaried employees born in 1978 or earlier Permanent (incl. probation) - at least 8 hours/week Limited employment period (> 3 months) Family pension salary > 7,5 iba Final payment 62 years Summary ITPK – defined premium pension Pay ceiling 30 iba Flexible drawing of retirement pension Disability pension Defined benefits pension ITP 432015-01

44. Overview - ITP 2 age 28 age 55age 62age 65 ITP - retirement pension ITPK Early drawing Final payment ITPK ITP 10%, 65%, 32,5% Statutory pension ITP - family pension Health insurance - - - ITP 442015-01

45. The cost - based on ITP 1 Gross salary paid per month ITP 2 Age Pensionable salary Previously earned ITP and/or another occupational pension for persons born prior to 1952 ITP 452015-01

46. Premiums - ITP 2 Premiums 18 years Salary 7,5 pba Salary 7,5 pba-7,5 iba Salary 7,5 iba-30 iba Health insurance0,06%0,32% Waiver of premium*0,05% 0,39% Individual premiums 28 years Retirement pensionITPK 2,0%Family pensionCompensation 0,60% * incl. final payment of ITP and ITPK Total 0,11%0,37%0,71% ITP 462015-01

47. Premium maximisation - ITP 2 The premium for retirement pension is max. - 46,5% of salary portions > 7.5 iba – 30 iba - 5,8% of salary portions up to 7.5 iba maximised premium 7,5 iba 5,8% Individual premium Missing premium ITP 472015-01

48. max 30 iba ITP approx. 12,70 TGL approx. 0,20 TFA0,01 TRR**0,30 Premiums - salaried employees ≤ SEK 36,313/month > SEK 36,313/month ITP*4,6430,89 TGL0,200,00 TFA0,01 TRR**0,30 * Health and waiver of premium insurance included ** 0,70% for local collective agreement companies Total % 5,15 31,20 Total % approx. 13,20 ITP 1 ITP 2 ITP 482015-01

49. Maximum cost - ITP 2 < 7,5 pba7,5 pba-7,5 iba7,5 iba-30 iba Health insurance0,060,32 Waiver of premium0,05 0,39 Retirement pension 5,80 (max.) 46,50 (max.) ITPK2,00 Family pension--* Compensation0,60 * premium added family pension Total %8,518,77 * 49,80 ITP 492015-01

50. Funded system - ITP 2 Premiums are paid until retirement age, which must be sufficient to cover anticipated pension payments 2865 years On new admission 28405060 On salary rise 65 years 28405065 years Termination Paid-up policy When the payment of premiums ceases ITP 502015-01