Luminor Building an Independent Baltic Banking Champion Luminor - PowerPoint PPT Presentation

Luminor Building an Independent Baltic Banking Champion

´

Luminor in a Snapshot

Building a pan-Baltic bank to serve entrepreneurial people, focussing on local companies and financially active people ◆ ◆ ◆

Luminor ’s key financial highlights EUR 14.6 bn EUR 12.0 bn EUR 8.2 bn EUR 1.7 bn 17.6 % 131 % 114 % 11.0 %

Key milestones of Luminor August 2016 October 2017 December 2017 June 2018 January 2019* H1 2019*

Luminor is led by an experienced management team

Luminor is led by an experienced management team

Vision to build an independent Baltic banking champion

Key Investment Highlights

Key investment highlights

Western Europe Strong Baltic macro driven by the continuing catch-up with NOR Aaa NLD Aaa SWD Aaa DNK Aaa DEU Aaa AUT Aa1 FIN Aa1 GBR Aa2 FRA Aa2 EST A1 IRL A2 POL A2 ISL A3 LTU A3 LVA A3 ESP Baa1 ITA Baa2 PRT Ba1 100 120 140 20 40 60 80 0 ITA PRT BEL ESP FRA GBR Euro area AUT IRL DEU FIN NLD POL SWE LVA LTU DNK EST

Baltics in early beginning of credit cycle with low levels of indebtedness Estonia Latvia Lithuania

Well funded Baltic banking sector with attractive profitability profile 261% 188% 152% 142% 116% 98% 95% Denmark Sweden Norway Finland Estonia Latvia Lithuania Luminor Swedbank SEB Estonia Lithuania Norway Latvia Sweden Denmark Finland Market share in loans

Strongly capitalized with comfortable capital buffers above regulatory requirements ◆ ◆ ◆ • • Group

Robust liquidity and leverage ratios

Low risk appetite with focus on asset quality over growth • •

Our current focus areas • • • • • • • • • • •

Overview of legal structure streamlining and ownership 

Financial Profile

Financial performance and profile of the Group January-June EUR million 2018 Profit and Loss Items Private Other Business Net Interest Income (NII) 133 banking 4% clients 1% 3% Net Commission Income (NCI) 41 NCI Estonia 23% Leasing & Total Operating Income 181 28% factoring Lithuania Household 22% 43% 43% Total Expenses Before Credit Losses (110) Profit Before Credit Losses 72 Latvia 29% NIl Corporates Credit Losses, net 7 73% 31% Operating Profit 79 Tax On Profit For H1 2018 (3) Profit (loss) For H1 2018 76 Balance Sheet Items Total Loans to the Public 11,717 Deposits and Borrowing from the Public 8,232 Due to Credit Institutions 4,388 ◆ Total Equity 1,744 Key ratios 1 of Luminor Group AB ◆ Return on Assets 1.0% Return on Equity 8.8% ◆ Cost / Income ratio 60.6%

Balanced and diversified loan portfolio Households* Trade Management of real estate Manufacturing Agriculture Transport Construction Electricity, gas, steam and air conditioning supply Accomodation of food service Other

Funding structure ◆ ◆ ◆ ◆ ◆ ◆ ◆

Luminor well positioned compared to selected European banks

Zero tolerance on money laundering and financial crime risk ◆ ◆ ◆ ◆

Zero tolerance on money laundering and financial crime risk • ◆ • ◆ • ◆

Luminor Estonia

Luminor Latvia

Luminor Lithuania 14 % 28 % 72 % 86 % 21 % 27 % 73 % 79 % 19 % 24 % 76 % 81 %

Luminor Bank in details Moody’s rating ◆ ◆ ◆ ◆

Appendix

Summary of transaction with Blackstone-led consortium (Braavos) ◆ ◆

Key economic indicators of Baltics ESP ITA FRA Euro area FIN LVA PRT LTU SWE BEL EST IRL DNK AUT GBR NLD POL DEU LUX DEU SWE DNK LVA EST LTU FIN Euro area POL ITA FRA PRT EST

Financial performance and key ratios of Luminor Estonia (issuer)

C O N T A C T S