Introduction to the Swedbank and Kepler Cheuvreux partnership - - PowerPoint PPT Presentation

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Public Information class

In cooperation with:

Introduction to the Swedbank and Kepler Cheuvreux partnership

​October 2018

SLIDE 2

Public Information class

In cooperation with

2

New partnership strengthens Swedbank’s offering

​Excellent international distribution power through local presence in all major markets

Stil ill l the e same… Our Nordic presence remains unchanged with the same staff and strong local commitment … … but ut s streng ngthened ned Through the Kepler Cheuvreux strategic partnership, our research coverage and sales force have been significantly expanded on an international level Toget ether er, Swedbank nk and nd Kepler er Cheuvreux eux offer r worl rld-class dis distrib ibutio ion an and d research bas ased on lo local al expertise an and d glo global l presence

= +

Source: Swedbank, Kepler Cheuvreux

SLIDE 3

Public Information class

In cooperation with

A Nordic investment bank…

3

​Strong synergies between Swedbank and Kepler Cheuvreux result in an unbeatable offering

Corporate Finance

Mergers & Acquisitions Equity Capital Markets

Debt Capital Markets

Bond issuance, trading convertibles, hybrids

Structured Finance

Acquisition- and project financing, IPO financing

Loans & Syndication

Sector- and asset-based debt financing, project- and event-driven financing

Equities

Equity sales, company- and industry research

Markets

Macro and credit research. Credit sales, currencies, derivatives

Corporate Access

Roadshows, company presentations, events, field trips

Corpora

• rate client organization and offering unchanged within Swedbank

Investor

• r reach significantly strengthened through Kepler Cheuvreux partnership

Source: Swedbank, Kepler Cheuvreux

Client Coverage

Lending Deposits

SLIDE 4

Public Information class

In cooperation with

• Kepler Cheuvreux signs exclusive strategic

partnership with Rabobank for the Netherlands

• Rabobank holds 5% of the capital
• Kepler Cheuvreux signs exclusive strategic

partnership with UniCredit for Germany, Italy and Austria

• UniCredit holds 5% of the capital
• Kepler acquires CA Cheuvreux
• Exclusive partnership with Crédit Agricole

CIB for France and Iberia

• Crédit Agricole holds 15% of the capital
• Kepler Cheuvreux signs exclusive strategic

partnership with Swedbank for the Nordics

• Swedbank holds 6% of the capital

…with a locally anchored equity distribution with global reach

Source: Swedbank, Kepler Cheuvreux 1: Measured on secondary trading 2: Extel 2014/15/16/17: Leading Brokerage Firm – Countries 3: Through partnership with CIMB in Asia and Piper Jaffray in the US 4

125+

equities brokers

1,350

active institutional clients

830

companies covered

US and Asia

equity research3

8th

largest broker in Europe1

14

local offices in Europe and the US

90+

equity research analysts

1,000

corporate roadshows per year

#1

brokerage firm across countries in Europe2 2017 2016 2013 2011 1997

• Kepler is founded as the equity brokerage

business of Bank Julius Baer, a Swiss private bank

• Kepler Cheuvreux signs exclusive strategic

partnership with Belfius for Belgium

• Belfius holds 5% of the capital

2017

SLIDE 5

Public Information class

In cooperation with

How does the new partnership model actually work?

Source: Swedbank, Kepler Cheuvreux 5

​Workflows in the cooperation are handled seamlessly

Origination & client contact Structuring, preparations & execution Investor contact, roadshows & research Sales & distribution to institutions Sales & distribution to retail

Swedbank process Swedbank fuels the transaction to Kepler Cheuvreux

All client contact and project coordination is handled by Swedbank

SLIDE 6

Public Information class

In cooperation with

#1

Leading Brokerage Firm

Countrie

ies

#1

Pan-European Small & Small Mid Caps

Sales

#2

Pan-European Equity & Equity-Linked Brokerage Firm

Sales Swedbank/Kepler Cheuvreux or affiliate office Europe: equity sales & sales traders

Global distribution through multi-local presence

Source: Swedbank, Kepler Cheuvreux 6

​Excellent international distribution power through local presence in all major markets

Broker and sales trader overview

7 45 2 2 3 8 9 40 9 6 1 18 6 3 2 13

Countries and regions Active institutional clients United Kingdom 21.9% United States 18.7% France 15.0% Switzerland 10.4% Nordics 7.5% Italy 7.1% Benelux 6.8% Germany & Austria 6.4% Spain 3.9% RoW 2.2%

Active clients per region

+

2017 2017

SLIDE 7

Public Information class

In cooperation with

#1

brokerage firm

country research

Top 10

in 14 research

sectors

#3

sustainability/SRI

research

Highly regarded research team with in-depth sector knowledge

Research team, overview

Source: Bloomberg as of Dec. 2017, Swedbank, Kepler Cheuvreux, 7

Number of stocks covered Continental Europe (excl. UK) Western Europe incl. UK

# Broker / Investment bank # of comp. covered # Broker / Investment bank # of comp. covered 1 Kepler Cheuvreux 785 1 Kepler Cheuvreux 829 2 Deutsche Bank 486 2 JP Morgan 782 3 Exane 452 3 Deutsche Bank 674 4 JP Morgan 449 4 UBS 640 5 UBS 444 5 Berenberg 622 6 Goldman Sachs 424 6 Citi 617 7 BAML 415 7 BAML 593 8 Citi 413 8 Exane 584 9 Berenberg 408 9 Goldman Sachs 569 10 Credit Suisse 401 10 Credit Suisse 569 … … 15 Carnegie 320 18 Carnegie 326 … … 18 Nordea 275 21 Nordea 282 … 270 22 ABG Sundal Collier 269 20 ABG Sundal Collier 264 23 Danske Bank 257 21 Danske Bank 249 ... … 237 25 SEB 242 23 SEB 236 26 Pareto 242 24 Pareto 229 27 Handelsbanken 231 25 Handelsbanken 228 … … 206 29 DNB 198 27 DNB 190 30 Commerzbank 184

KECH research coverage and analysts, disaggregated by segment

Segment Coverage Analysts Financials 90 22 Industrials 207 27 Consumer 157 34 TMT 116 13 Pharma & Chemicals 91 12 Energy & Environmental 92 17

829

companies covered

90+

equity research analysts covering

141

Nordic companies

• f which

300

Nordic companies within Q3 2018 with target

• f covering

5

Economics & Strategy research analysts

5

Environmental, Social & Governmental research analysts

2

Quantitative research analysts

Additional research teams

Henning Steffenrud Head of Nordic Research Jose Hernandez Global Head of Research

2017

KECH research coverage, overview

12 11 10 14 3 6 8 40 8 11

SLIDE 8

Public Information class

In cooperation with

Strong combined ECM track record

Selected Swedbank ECM transactions

Source: Swedbank, Dealogic 8

​Kepler Cheuvreux partnership model proven through UniCredit, Crédit Agricole and Rabobank

Performance of existing KECH partners

Leading E g ECM p player er i in France e

since start of Kepler Cheuvreux partnership in April 2013

Italia lian E n ECM champio ion n since start of

Kepler Cheuvreux partnership in 2012

Dut utch ch champion in I in IPOs since start

• f Kepler Cheuvreux partnership in July

2016

Block sale June 2017 NOK OK 426m 426m Initial Public Offering June 2017 SE SEK 4 4 524m 524m Equity raise June 2017 USD SD 500m 500m Rights issue June 2017 NOK OK 190m 190m Initial Public Offering April 2017 SE SEK 136m 136m Convertibles and bond issue March 2017 SE SEK 245m 245m Initial Public Offering June 2017 NOK OK 8 8 400m 400m Private placement December 2017 NOK OK 55m 55m Private placement November 2017 NOK OK 4 4 100m 100m Private placement December 2017 NOK OK 50m 50m Equity issue December 2017 NOK OK 70m 70m Rights issue December 2017 SE SEK 794m 794m

SLIDE 9

Public Information class

In cooperation with

Strong performance in the NOK 4.1bn private placement for Aker BP

Company Aker BP ASA Ticker/Listing AKERBP (Oslo Børs) Launch date October 30, 2017 Completion date October 31, 2017 Type of transaction Private placement Transaction size NOK 4.1bn Placement price NOK 184 per share Discount to close 0% # shares issued 22,376,438 new shares Buyers Norwegian and international investors Joint Bookrunners Nordea, Danske Bank, DNB, SEB, Swedbank

Source: Dealogic, Swedbank, Kepler Cheuvreux Note: Subscription by Aker ASA and BP plc equally split among arrangers 9

​Swedbank/Kepler Cheuvreux a definitive top performer in the syndicate

Actual allocation per manager (% of shares) Global institutional investor demand per managers at offer price

16,8 % 19,2 % 20,3 % 21,3 % 22, 22,4 % % Bank E Bank D Bank C Bank B 18,3 % 19,7 % 20,1 % 20, 20,3 % % 21,6 % Bank E Bank D Bank C Bank B

Total demand per manager at offer price (% of shares)

16,5 % 18,9 % 20,0 % 22, 22,1 % % 22,5 % Bank E Bank D Bank C Bank B

Transaction details

SLIDE 10

Public Information class

In cooperation with

Uncovering global investor demand

Demand covered by Kepler Cheuvreux – selected deals

Source: Swedbank, Kepler Cheuvreux a) At par with other syndicate bank 10

​Kepler Cheuvreux has delivered more than EUR 1.5bn in sole orders over the last 25 deals

In the recent ABBs/IPOs listed below, Kepler Cheuvreux’s

• versubscription (sole and split) covered on average . the

total book

Deal size, (EURm) Competition Oversubscription KECH Rank Global KECH

• nly

# Out of 2017 Italy 2,275 5 int. IBs, 1 Eur. IB 2 local IBs 2.1x

1.9x

#3 9 2017 Norway 429 4 local banks 1.4x

1.2x

#2 5 2017 Italy 424 1 US bank, 2 local banks 8.0x

7.1x

#1 4 2017 France 169 1 Eur. bank, 1 Italian bank 2.0x

1.9x

#1 3 2017 Netherlands 101 1 US bank 3.0x

2.9x

#2 2 2017 Italy 274 3 US IBs, 1 Eur. IB, 1 local bank 1.5x

1.4x

#2 6 2017 Italy 108 1 US bank 2.5x

2.3x

#2 2 2017 France 436 3 US banks, 1 European bank 2.5x

2.2x

#2 5 2017 France 67 2 US banks, 1 European bank 3.5x

3.2x

#2 4 2017 France 133 1 European bank 2.6x

2.5x

#1a 2 2017 France 400 2 US banks, 1 local bank 1.7x

1.5x

#1 4 2016 France 282 1 US IB, 1 Eur. IB, 1 local bank 2.6x

2.5x

#2 4 2016 Italy 328 1 European bank 7.0x

6.8x

#1a 2 2016 Spain 134 1 European bank 2.7x

2.5x

#1a 2 2016 Netherlands 110 1 US bank, 1 local bank 2.8x

2.3x

#2 3 2015 Italy 3,364 7 US banks, 2 local banks 2.0x

1.6x

#3 10

2.7x

Italy, 2017 – EUR 2,275m IPO

KECH syndicate ranking

KECH Other demand Offering KECH only

Oversubscription % of total demand

91%

9%

1.9x

#3 out of 9

Italy, 2017 – EUR 424m IPO

KECH syndicate ranking

Offering KECH only KECH Other demand

Oversubscription % of total demand

88%

12%

7.1x

#1 out of 4

France, 2017 – EUR 169m ABB

KECH syndicate ranking

KECH Other demand

Oversubscription % of total demand

95%

5%

Offering KECH only

1.9x

#1 out of 3

France, 2017 – EUR 436m ABB

KECH syndicate ranking

KECH Other demand Offering KECH only

Oversubscription % of total demand

87 87%

13%

2.2x

#2 out of 5

France, 2016 – EUR 282m ABB

KECH syndicate ranking

KECH Other demand Offering KECH only

Oversubscription % of total demand

95%

5%

2.5x

#2 out of 4

Netherlands, 2016 – EUR 110m ABB

KECH syndicate ranking

KECH Other demand Offering KECH only

Oversubscription % of total demand

83%

17%

2.3x

#2 out of 3

SLIDE 11

Public Information class

In cooperation with

KECH Corporate Access – undisputed leader in Europe

Source: Swedbank, Kepler Cheuvreux, Extel 2017 survey * Per September 2017 11

​Corporate Access is of the highest importance for institutional investors

#1

European broker

Cor

• rpor

porate Acc ccess

(Fund Manager Nominations)

#1

European broker

Re

• Rev. Ro

Roadshows/ Fie ield Trip ips

(Fund Manager Nominations)

#1

European broker

Conferenc ences es

(Fund Manager Nominations)

#1

European broker

Cor

• rpor

porate Acc ccess

(Corporate Nominations)

22 22 000 000

• ne-on-
• nes

1 000 1 000

road- shows

2 0 000

investor trips

200 200

expert meetings

50 50

thematic field trips

SLIDE 12

Public Information class

In cooperation with

Swedbank Corporate Finance has excellent M&A capabilities

• Several attractive acquisition targets identified on the NCS
• Norway different from other countries, and PE investors cannot establish

themselves without a team on the ground

• Important to educate possible investors on tax regime to lower their

perceived risk

• Difficult for potential sellers to accept teams without already secured equity

funding

Source: Swedbank 12

​Solid track record of both buy- and sell-side transactions, long list of recent high-profile deals

Edge Petroleum / Elliott Management case study

Looked at potential exit scenarios for investors and how to build an attractive case Investigated what possible

• perational and price

scenarios meant for investor returns 5 6 Educated investors on the Norwegian tax regime and payback in default scenarios 3 Built an investment case based on the most attractive risk-reward in current M&A market 4 Identified several attractively priced asset packages on the NCS 1 Put together a qualified and highly experienced team that investors trusted 2

SLIDE 13

Public Information class

In cooperation with

Leading acquisition financing partner for private equity…

Selected recent Swedbank Structured Finance transactions 2017 / 2018

Source: Swedbank

13

Credit Facility Increase Arranger (Club Deal) HightecVision Acquisition of Mandated Lead Arranger (Sole Lender) Summa Equity Acquisition of Mandated Lead Arranger (Sole Lender) Altor Equity Partners Acquisition of Mandated Lead Arranger (Sole Lender) Impilo Acquisition of Mandated Lead Arranger (Club Deal) Triton Acquisition of Mandated Lead Arranger (Club Deal) Triton Refinancing of Mandated Lead Arranger (Sole Lender) Altor Equity Partners Acquisition of Mandated Lead Arranger (Sole Underwritter) Altor Equity Partners Acquisition of Mandated Lead Arranger (Club Deal) Nordic Capital Post-IPO financing Mandated Lead Arranger (Club Deal) Apax Acquisition of Mandated Lead Arranger (Club Deal) FSN Capital Credit Facility Increase Arranger (Club Deal) Cinven & HgCapital

SLIDE 14

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In cooperation with

…with top position in the Nordic HY market…

NO+SE: Amount issued NOK/SEK HY bonds 2018 YTD

Source: Bloomberg, EBA, Swedbank, Stamdata 14

​Swedbank is a leading arranger and trader in bonds

NO+SE: # of issued NOK/SEK HY bonds 2018 YTD

7 623 7 228 6 399 4 238 4 021 3 946 3 052 1 865 2 000 4 000 6 000 8 000 10 000 Nordea Swedbank Pareto DNB SEB Danske Bank Markets ABG Sundal Collier Carnegie SEKm 23 20 19 18 16 14 12 8 5 10 15 20 25 Nordea Swedbank DNB Pareto ABG Sundal Collier Danske Bank Markets SEB Carnegie # of deals

SLIDE 15

Public Information class

In cooperation with Restricted access Conf nfide denti tial Information class

… and solid deal flow in HY bonds

Con

• nsistent d

dea eal f flow i in the N Nor

• rdic m

market w within several k key ey s sec ectors

15

Source: Swedbank

SEK 850,000,000 3 years Senior unsecured bond Joint Lead Manager February 2018

NOK 1,500,000,000 4.5 years Senior unsecured bond Joint Lead Manager January 2018 SEK 1,500,000,000 3.1 years Senior unsecured bond Joint Lead Manager January 2018

EUR 250,000,000 4.1 years Senior secured bond Joint Lead Manager November 2017 SEK 3,000,000,000 7 years 2nd Lien Joint Lead Manager February 2018

SEK 2,000,000,000 4 years Senior unsecured bond Joint Lead Manager March 2018

EUR 400,000,000 6 years Senior unsecured bond Joint Lead Manager April 2018 EUR 200,000,000 5 years Senior unsecured bond Joint Lead Manager May 2018 SEK 1,500,000,000/ SEK 750,000,000 5 years/Tap issue Senior unsecured bond Joint Lead Manager Nov-2017/June-2018 EUR 250,000,000 6 years Senior secured bond Joint Lead Manager June 2018

SEK 800,000,000 Perpetual Hybrid bond Joint Lead Manager June 2018

SEK 350,000,000 3 years Senior secured bond Sole Arranger June 2018 NOK 850,000,000 5 years Senior Unsecured bond Joint Bookrunner August 2018 SEK 495,000,000 3 years Senior Secured bond Sole Arranger July 2018 SEK 1,000,000,000 2 years Senior Unsecured bond Joint Lead Manager June 2018 NOK 500,000,000 5 years Senior Unsecured bond Joint Lead Manager September 2018 SEK 1,000,000,000 Perpetual Hybrid bond Jr Subordinated Joint Lead Manager September 2018

SEK 300,000,000 3 years / Tap issue Senior unsecured bond Sole Arranger October 2018

USD 475,000,000 5.5 years 1st lien/ 2nd lien Joint Lead Manager September 2018

EUR 75,000,000 4 years Senior unsecured bond Joint Lead Manager March 2018

SEK 500,000,000 4 years Senior unsecured bond Sole Arranger June 2018

SLIDE 16

Public Information class

In cooperation with

…supported by leading credit, macro and FICC teams

Selected members of macro and credit research teams

Source: Swedbank 16

Credit research coverage and analyst, overview

Segment Coverage Analysts Sector Comps. Covered Analysts

Financials 60 6

Bank & Asset Management 18 2 Debt purchase 3 1 Real estate 37 2 Holding Companies 2 1

Industrials 32 8

Automotives & Trucks 3 1 Airline & Airports 2 1 Industrials 10 1 Construction & Materials 3 1 Forestry, Paper & Packaging 9 1 Services 5 3

Consumer 6 3

Food & Agriculture 3 1 Consumer goods 1 1 Betting and gaming 2 1

TMT 6 2

Telecom operators 5 1 Telecom Services 1 1

Pharma & Chemicals 2 1

Pharma & Biotech 2 1

Energy & Environmental 70 7

Utilities 22 1 Renewables 5 1 Oil & Gas 2 1 Oil Services 4 1 Shipping & Offshore 32 2 Metals & Mining 5 1

KJETIL MARTINSEN Acting Chief Economist, Norway OLOF MANNER Head of Swedbank Research, Sweden ANNA BREMAN Group Chief Economist, Sweden NERIJUS MAČIULIS Chief Economist, Baltics OYSTEIN BORSUM Chief Credit Strategist, Sweden BENGT KIRKØEN Credit Research, Banks/ Financials, Norway JONAS BITO SHUM Credit Research, Oil services/E&P/Shipping, Norway MICHAEL JOHANSSON Credit Research, Sweden

Credit, FICC and macro sales and analysts

Credit, FICC and macro sales and analysts, overview

​Extensive credit research coverage of 176 companies – supported by a large and experienced sales team

3 25 123 4 8

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