SEB401E

1
Press conference 25 October 1999
2
Jacob Wallenberg Chairman of the Board, SEB
3
Main strategies
Active participationin the growingsavings
markets of Northern Europe
Leading corporate bank in theNordic region
Merchant Banking
Asset Management
Enskilda Securities
Trygg Liv
Financial Services
Retail Distribution
INTERNET
4
Internet

• Second generation of Internet Service
• Log ins gt branch visits

• SEBs Travel Plaza (e-commerce)

Internetcustomers

• SEB Trading Station
• 25 stake in Self Trade

300,000

• E-commerce payment solution

250,000

• Internet office for small businesses

200,000
150,000

• Internet service for individuals

100,000
50,000
0
Dec 1996
Dec 1997
Dec 1998
Oct 1999
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Assets under management
50 compounded annual growth
BfG Germany
ABB Investment Management
Gyllenberg Finland
Codan Denmark
EUR 83bn
SEK 720bn
Trygg-Hansa Sweden
Asset management Norway
Dec 96 Jan 00
EUR 22bn
Sweden 93 65 Other countries 7 35
SEK 194bn
Dec 1996
Dec 1997
Dec 1998
Aug 1999
Jan 2000
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Lars H Thunell President and Group Chief
Executive, SEB
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SEB January September 1999

• Total result excluding non-life insuranceSEK
  4,859 (SEK 2,505) million
• Income increase 7
• Costs increase 12
• Recovered lending losses SEK 231 million
  (lending losses SEK 2,034) million
• Return on equity 14.5 (13.4 )
• Prioritised areas show good development
• Sale of Trygg-Hansa completed
• Expanded ownership in the Baltic region

9
Focused growth
INTERNET
Sweden
Nordic countries
Baltic countries
Activeparticipationin the growingsavings
markets of Northern Europe
Leading corporate bankin the Nordic region
Germany
Euroland
10
Internet strategy

• Build on first mover advantage from Sweden
• Develop Paneuropean IT platform
• Access to local
• banking infrastructure
• customers
• Multichannel strategy with Internet focus
• Build up financial services gateway through
  e-commerce

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Market size
Inhabitants, million
5.2
8.9
4.5
7.7
5.3
82.0
12
Germany high growth potential
Total personal financial assets, 1997
Shares of assets held in equities
EUR billion

UK
3,938
20
Germany
2,699
9
France
2,354
34
Sweden
304
20
Denmark
187
9
115
9
Finland
Large market sizeand low penetration
Norway
111
14
13
German mutual funds market
Compared to GDP
32
29
15
Large market sizeand low penetration
Large market sizeand low penetration
Germany
Sweden
UK
14
German Internet market
Internet users
Internet banking accounts
Millions of users
Penetration
Millions
1999 Q1
2000E
Germany
16.0
20
0.8
UK
14.9
25
N/A
France
11.8
20
0.1
Sweden
4.5
50
0.7
Large market size and low penetration
Source JP Morgan
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Germany 3,000 banks
Market share by deposits
Other banks 26
Savings Landesbank 39
BfG 1
Deutsche Bank 6 HypoVereinsbank 4Dresdner
Bank 3 Commerzbank 2
Co-operative banks 19
Highly fragmented market
Source Deutsche Bundesbank, June 1999
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Thorough due diligence process

• First phase
• Asset quality review
• Financial performance and potential review
• Tax review
• Assess current Internet systems and development
  potential
• Portfolio review
• Confirmatory due diligence September-October
• Audit of the accounts by PWC
• Examination of loan book and leasing portfolio
• Valuation of real estate by external real estate
  evaluator
• Examination of Treasury and Trading

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SEB acquires BfG

• BfG will become a 100 subsidiary of SEB
• Purchase priceSEK 13.9 (DEM 3.1, EUR 1.6)
  billion
• Contract signed, share transfer on3 January, 2000

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BfG in brief
SEB 1998 EUR billion BfG SEB BfG
Total assets 42 84 126 Assets undermanagement 1
3 70 83 Customers millions 1.0 1.5 2.5 Employees
5,300 11,700 17,000 Branches 177 260 437


1999 Q3 Excluding Baltic banks
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BfG assets under management
EUR billion 1998 1999 (August)
FundsMutual, special, real estate 8 10 OtherPort
folio management,investment centres,BfG
Luxembourg 3 3 11 13
gt 70 in funds
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BfG mutual funds growth
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Transaction rationale

• Fits well with SEBs strategic goals as regards
  asset gathering and Internet banking
• Attractive financial terms
• Access to the German market with high growth
  potential in asset gathering
• Strengthens SEBs position for further growth in
  Internet banking

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Karl-Heinz Hülsmann President, BfG
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BfG change programme

• Restructuring
• New position
• New customers
• New services
• Competitivemarketing

Old BfG 1991
New BfG 1999
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BfGs geographic coverage

• 177 branches in120 towns and cities

Local reach 62 of total population
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BfG today
5,300 employees per December 1998
Service, IT, Central Staff 1,408
Retail 1,923
Trading/Treasury 129
Institutional 98
Plus subsidiaries 1,332
Real estate 111
Corporate 299
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BfG new customer growth
240,000
200,000
160,000
100,000
Unique selling position
1996
1997
1998
1999 Oct
28
BfG customers
Age structure
Salary structure (net DEM/month)

• Younger
• Higher income
• Higher education
• More frequent Internet users

gt 64
15
gt 5,000
20
45-64
35
2,500-5,000
50
20-44
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lt 2,500
30
lt 20
7
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BfG customers used to direct channels
Internet - 16,000 customers - 60,000
transactions/month
Advanced usage compared with other German
institutions
Telephone bank - 130,000 customers - 145,000
transactions/month
Online - 49,000 customers - 92,000
transactions/month
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BfG - satisfied and loyal customers
Customer satisfaction
69
BfG
58
Big four banks
Customer loyalty
85
BfG
72
Big four banks
92 of Germans know BfG
Deutsche Bank, Commerzbank, Dresdner Bank, Hypo
Vereinsbank
ICON Werbetracking 95-98
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BfG mission statement

• We are a sales-driven bank.
• Offering qualified advice proactively is
  imperative to sell our excellent products and
  services.
• Excellent business results are the objective.
• Our yardstick and key to success are customer
  and staff satisfaction.

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Lars H Thunell President and Group Chief
Executive, SEB
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SEBs intentions

• Build on BfGs existing clients and
  infrastructure
• Distribute savings products through BfGs
  distribution channels
• Expand our leading position in Internet banking
  to the German market
• Strategic review of other areas

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SEB and BfG management resources
BfG Management Team
Karl-Heinz Hülsmann President Lars
Lundquist DeputyPresident
Chairman of the Supervisory Board Lars H Thunell
SEB Project Teams
SEB Change/Integration Support Team
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Lars Lundquist Executive Vice President and Head
of SEB Asset Management
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Cost synergies

• EUR 15 (SEK 130) million/year from 2002
• Treasury and Trading integrated with group
  functions
• BfGs and SEBs German corporate banking
  reviewed, focused and integrated
• BfGs investment management co-ordinated with SEB
  Asset Management
• BfG Bank Luxembourg merged with SEB Luxembourg
• Faster development of BfG Internet

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Continued improved cost efficiency

• EUR 30 (SEK 260) million/year from year 2002
• Review of
• back-office operations
• organisational structure
• credit processes
• Migration to direct channels
• Improved management reporting system

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Other synergies

• Enhanced asset management growth by supplementing
  BfG product range withSEB products EUR 10 (SEK
  90) millionfrom 2005
• Funding synergies owing to SEBs increased
  presence in local German market and access to
  BfGs deposit surplus EUR 5 (SEK 45) million
  first year

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Growth potential

• Internet banking and further asset management
  growth by extending upscale and institutional
  customer baseEUR 60 (SEK 520) million per year
  by 2005

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Total profit improvement until 2005
EUR million
Cost synergies 15 Further operational
improvement 30 Other synergies 15 Growth
potential 60 120
SEB target ROE 15
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Lars H Thunell President and Group Chief
Executive, SEB
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Favourable transaction terms

• Purchase price SEK 13.9 (DEM 3.1, EUR 1.6)
  billion for 100 of BfGs equity
• Values BfG at approximately 0.8 times adjusted
  equity
• Restructuring reserve SEK 3.0 (DEM 0.7, EUR 0.35)
  billion
• Marginal increase in earnings per share year 2000
  thereafter stronger growth in earnings per share

As of June 30, 1999
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Financing

• Rights issue of SEK 4.1 billion
• Agreements regarding hybrid capital (core
  capital/subordinated debt)
• SEB intends to raise subordinated debt (total SEK
  5.8, EUR 0.7 billion) in order to strengthen its
  capital adequacy
• Decrease of risk/weighted volume by SEK 36 (EUR
  4) billion before closing the deal

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SEB after BfG acquisition
Leading corporate bank in the Nordic region
Major step in PaneuropeanInternet strategy
Euroland platform for further expansion in Asset
Management
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