Danske Bank A/S · OMXCOP:DANSKE
Danske Bank A/S — Investor Presentation (October 2005)
24 slides from Danske Bank A/S's investor presentation, Oct 6, 2005
Slide 1: Strategy 2010: A model for the future
Strategy 2010 A model for the future Peter Straarup CEO & Chairman of the Executive Board October 6, 2005
Slide 2: Strategy and focus
Strategy and focus A transition towards a international retail bank Mergers/acquisitions 2005 2004 2003 2002 2001 2000 1999 1998 1997 Divestures/closures 1996 Banking activities UK 1995 Banking activities US 1994 Danske Securities 1993 Banking activities Asia 1992 BG Garanti & BG Factoring 1991 1990
Slide 3: Danske Bank share price
Danske Bank share price 200 Danske Bank 180 160 140 120 100 80 MSCI Europe 60 (Banks) 40 20 0 2000 2001 2002 2003 2004 2005 3
Slide 4: The growth picture is very differentiated
The growth picture is very differentiated 7 GDP Growth 2005E 6 5 4 3 2 Euroland average 1 0 Balt IRL N E DK S UK F Fin EURO D CH NL I 4 Source: Danske Bank
Slide 5: Returns reflect the economic environment
Returns reflect the economic environment GDP Growth (Average 2002 2004) 3% UK Spain Sweden 2% France 1% Denmark Italy Germany ROE (Average 2002 2004) 0% 0% 5% 10% 15% 20% Source: Goldman Sachs and Danske Bank 5
Slide 6: Danske Banks retail presence
Danske Banks retail presence 7 GDP Growth 2005E 6 5 Danske Bank Retail Banking presence 4 3 2 Euroland average 1 0 Balt IRL N E DK S UK F Fin EURO D CH NL I 6 Source: Danske Bank
Slide 7: Danske Bank market position
Danske Bank market position - Market leader in Denmark - Expanding in N, S, UK & IRL Bank - Market leader Mortgage - Market leader Market share app. 30% Market share app. 30% Domestic >10% loan growth FlexLån® Product innovation Interest only loans Increased market shares FlexGaranti
Slide 8: Creating the competitive edge
Creating the competitive edge Line of business Branding Single platform Market position 8
Slide 9: Vision
Vision Tailored brands, a single platform - best local financial partner 9
Slide 10: One Group One System
One Group One System A Strategy of doing things the same way everywhere Brand Channel Branches Asset Product ATMs Bonds & Management Equities Core Credit Currency Approvals FOREX Payments Customer Interests Cards Accounts Organization Fees Customer output Risk Treasury Mortgage Dataware Accounting
Slide 11: Leveraging the single product platform
Leveraging the single product platform (NKr m) Fokus Boligkreditt Sep 2004 Aug 2005 3.500 3.000 DKr bn 2.500 40 Open Plan 2.000 Q2 2003 Q2 2005 1.500 1.000 32 500 - 24 Sep Nov Jan Mar May Jul 16 8 (SKr m) DuoFlex 0 3.000 May 2004 Jul 2005 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2.500 2003 2004 2005 2.000 1
Slide 12: Value chain
Value chain Cross border standards / local standards Trade finance Card issuing Security trading Credits and loans Pension products Standardised Customer pakages cross borders Marketing Local standards Product development Accounting IT Asset/liability management 12
Slide 13: Branding - One size doesn't fit all
Branding - One size dosnt fit all ? 13
Slide 14: Multiple brands
| Danske Multiple brands Northern Ostg6taEnskilda National fee) Bank — DERE Pension | fanmark | Danske » BF-larer-3) FOndforsakring . BG Danica _ BG! Firstnordic Wielnet-lantes) Leasing Danske |efini< Neteeiiel Finans | Danske |DWEIaeies) en del av Danske Bank
Slide 15: The Branding Molecule
The Branding Molecule A 360° view Investor Relations Marketing Target groups/ Shareholders Segments PR Vision Mission Distribution Corp. Governance Products Identity General & Customers Sales and Competitors public Values advisory services Quality & Price Homepage Targets Strategy Central Marketing
Slide 16: Supermarket
Supermarket Guide: Tools Design a marketing activity News & Case Editorials studies 16
Slide 17: Products
Products Banking: Open plan and customer packages DKr bn 40 Open Plan Q2 2003 Q2 2005 Mortgage Finance: 32 FlexGaranti®, interest only loans & floaters 24 16 8 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 17
Slide 18: Open architecture
Open architecture Danske Prioritet Branches BG Bolig Plus Real estate DuoFlex agencies FlexLån® Merchant Danica Link (DK) Bank Danica Link (S) e-Banking Danica Link (N) Danske Invest Etc. Danske Forsikring 18
Slide 19: Human Resources
Human Resources Business units Execute HR and assure - committed employees - a high level of competencies - a high level of performance through HR tools HR Development HR Services Owns the HR strategy Delivers efficient, - responsibility for concepts, follow-up and support flawless administration 19
Slide 20: Employee and private customers
Employee and private customers - Rising satisfaction Index Customers Index Employees 79 90 78 85 77 76 80 75 75 74 73 70 72 65 71 70 60 Satisfaction Loyalty Satisfaction & Loyalty 2004 Motivation 2003 20
Slide 21: Financial Management
Financial Management Simplification Focus on actual performance Reduced number of measurements Overview Action oriented Lean 21
Slide 22: Delivering relevant information
Delivering relevant information Senior Management Brand Management Regional Management Branch Management Reporting platform 22
Slide 23: Trends in business areas
Trends in business areas - Improvements in all areas Profit before tax Breakdown of change in pre-tax profit DKr m Index % of total 9,000 DKr m H1 2004 H1 2005 05/04 2005 Banking Activities 3,227 4,613 143 55 - Danske Bank 1,488 2,346 158 28 - BG Bank 718 907 126 11 - Norway 143 262 183 3 - Sweden 3
Slide 24: Danske Bank in Europe
Danske Bank in Europe focused on retail banking expansion Fokus Bank bought in 1999 Helsinki Branch estab . in 1997 Oslo Branch estab . in 1997 Northern Bank Stockholm Branch estab . in 1995 bought in 2004 National Irish Bank Östgöta Enskilda bought in 2004 Danske Bank bought in 1997 estab. in 187