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					Press conference
  25 October 1999
   Jacob Wallenberg
Chairman of the Board, SEB
          Main strategies
Leading                                  Active participation
corporate                                in the growing
bank in the                              savings markets of
Nordic region                            Northern Europe
                Merchant     Asset
                 Banking
                             Management
                 Enskilda    Trygg Liv
                Securities

                 Financial Services


                  Retail Distribution

                  INTERNET
 Internet
                    • Second generation of
                      Internet Service       • SEB’s Travel Plaza
                    • Log ins > branch         (e-commerce)
                      visits                                   Internet
            • SEB Trading Station
            • 25% stake in Self Trade                          customers
           • E-commerce                                        300,000
             payment solution                                  250,000

      • Internet office for                                    200,000
        small businesses
                                                               150,000
• Internet service
  for individuals                                              100,000

                                                               50,000

                                                               0
Dec 1996             Dec 1997         Dec 1998      Oct 1999
Assets under management
 50% compounded annual growth
                        ABB
                        Investment         BfG Germany
       Gyllenberg       Management Codan
                                   Denmark        EUR 83bn
       Finland
                                                           SEK 720bn

 Asset              Trygg-Hansa
 management         Sweden
 Norway

EUR 22bn                            Dec 96        Jan 00

SEK 194bn               Sweden          93%         65%
                        Other countries 7%          35%
     Dec 1996         Dec 1997     Dec 1998   Aug 1999 Jan 2000
  Lars H Thunell
President and Group
Chief Executive, SEB
SEB January – September 1999

  • Total result excluding non-life insurance
    SEK 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
Focused growth

                  INTERNET

                        Sweden

                 Nordic
                 countries
                             Baltic
                             countries
                                         Active
    Leading                              participation
corporate bank                           in the growing
 in the Nordic      Germany
                                         savings
     region
                   Euroland              markets of
                                         Northern
                                           Europe
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
Market size
Inhabitants, million


                                   5.2
                             8.9
                   4.5
                                   7.7
                       5.3
                        82.0
Germany high growth potential
             Total personal             Shares of assets
           financial assets,            held in equities
                  1997
            EUR billion                 %
     UK                         3,938                 20

Germany                 2,699                9

 France               2,354                                     34

 Sweden       304                                     20

Denmark      187                             9

 Finland     115                             9
                                                           Large market size
 Norway      111                                 14        and low
                                                           penetration
German mutual funds market
Compared to GDP

                           32%
                   29%



         15%




                                 Large market size
                                 Large market size
       Germany    Sweden   UK    and low
                                 and low
                                 penetration
                                 penetration
German Internet market
               Internet users                        Internet banking
                                                     accounts
                Millions of users      Penetration   Millions
               2000E                                 1999 Q1
 German
                                    16.0 20%                    0.8
      y
         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
Germany – 3,000 banks
Market share by deposits


          Other banks 26%                           Savings &
                                                    Landesbank
                                                    39%
                  BfG 1%

Deutsche Bank               6%
HypoVereinsbank             4%
Dresdner Bank               3%
Commerzbank                 2%       Co-operative banks 19%


                                            Highly fragmented market
Source: Deutsche Bundesbank, June 1999
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
SEB acquires BfG

  • BfG will become a 100% subsidiary of
    SEB
  • Purchase price
    SEK 13.9 (DEM 3.1, EUR 1.6) billion
  • Contract signed, share transfer on
    3 January, 2000
BfG in brief


                                                    SEB
                                +
1998 EUR billion              BfG      SEB          BfG
Total assets                   42        84         126
Assets under
management*                    13        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
BfG assets under management

EUR billion                    1998 1999 (August)
Funds
Mutual, special, real estate      8               10
Other
Portfolio management,
investment centres,
BfG Luxembourg                    3                3
                                 11               13
                                > 70 % in funds
BfG mutual funds growth

                                   28.3%
    German          BfG
    Market             22.8%

                                                   17.3%
                  15.9%        15.9%       15.5%
          13.5%


   6.8%



     1996            1997         1998         1999
                                             6 months
Transaction rationale

  • Fits well with SEB’s 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 SEB’s position for further
    growth in Internet banking
Karl-Heinz Hülsmann
   President, BfG
BfG change programme


            •   Restructuring
            •   New position
“Old BfG”   •   New customers   “New BfG”
  1991      •   New services      1999
            •   Competitive
                marketing
BfG’s geographic coverage
                                                                                             Kiel

                                                                                            Neumünster             Rostock
                                                                                                    Bad Schwaren
                                                                                                               Wismar
                                                             Wilhelmshaven                          Lübeck
                                                                                           Norderstedt
                                                                       Bremerhaven                                 Schwerin
                                                                                           Hamburg
                                                   Emden                                  Harburg

                                                                 Oldenburg
                                                                        Bremen




                                                                                                                                                 Berlin




• 177 branches in
                                                                                       Hanover         Wolfsburg                             Potsdam
                                                          Osnabrück        Minden                   Braunschweig
                                                                   Herford                 Hildesheim            Magdeburg
                                                     Münster     Bielefeld           Hamelin      Salzgitter                                              Cottbus
                                       Bocholt                  Gütersloh
                             Duxlaken        Masl Lunen
                                    Recklingh.                Hamm



  120 towns and cities
                                 Gelsenk. C-Rauxel        Bergkommen
                               MeersOberh.
                             Duisburg       Herne      Dortmund
                                                      Bochum                             Gottingen
                           Krefeld Mülheim Essen Witten                                                                  Halle
                                Ratingen Wuppertal Hagen                                                                       Leipzig
                                Neuss Düsseldorf Lüdenscheid                     Kassel
                           Mönchen- Solingen       Remscheld                                                                                            Dresden
                                                 Langenfeld
                           gladbach
                                         Köln Leverkusen
                                   Düren Brühl               Siegen                                      Erfurt
                               Aachen        Bonn                                                                                          Chemnitz
                                               Bad Godesberg
                                                                    Gießen                                                      Zwickau
                                       Neuwied                   Wetzlar
                                                     Koblenz
                                                                  Bad Homburg
                                                        Sulzbach     Frankfurt
                                                                       Hanau
                                                        Wiesbaden Offenbach
                                                      Mainz          Heusersramm        Schweinfurt
                                                                   Neu Isenburg
                                                                 Rüsselsheim
                                      Trier                            Aschaffenburg Würzburg
                                                                 Darmstadt
                                                              Worms
                                                                 Mannheim
                                                                    Heidelberg                           Mannheim
                                              Kaiserslautern    Ludwigshafen
                                       Saarbrücken
                                              Pirmasens                    Heilbronn
                                                                Karlsruhe
                                                                                                                               Regensburg
                                                                      Pforzheim
                                                                              Stuttgart


    Local reach 62% of total                                       Sindelfingen

                                                            Offenburg
                                                                            Esslingen
                                                                                     Göppingen

                                                                             Reutlingen
                                                                                        Ulm              Augsburg
                                                                                                                  Ingolstadt




           population
                                                                          Albstadt
                                                                                                                    Munich
                                                                 Schaffhausen
                                                      Freiburg
                                                                                                                   Geveesried

                                                                           Konstanz           Kempten
                                                  Lörrach                      Friedrichshafen
BfG today
5,300 employees per December 1998


        Service, IT,
        Central Staff                  Retail 1,923
        1,408



 Trading/Treasury
 129    Institutional 98
           Real estate 111           Plus
                     Corporate 299   subsidiaries
                                     1,332
BfG new customer growth

                                240,000

                      200,000

            160,000


  100,000




                                           Unique selling
   1996       1997      1998    1999 Oct   position
BfG customers

                   Age structure      Salary structure
                                       (net DEM/month)
• Younger              15%     > 64         20%     > 5,000

• Higher income
                       35%     45-64
• Higher education                          50%     2,500-5,000

• More frequent
  Internet users       43%     20-44
                                            30%     < 2,500
                        7%     < 20
BfG customers used to direct channels

  Internet
  - 16,000 customers
  - 60,000 transactions/month


  Telephone bank                 Advanced usage
  - 130,000 customers            compared with other
  - 145,000 transactions/month   German institutions

  Online
  - 49,000 customers
  - 92,000 transactions/month
BfG - satisfied and loyal customers
                               Customer satisfaction

                         BfG                          69%

         Big four banks*                          58%

                                   Customer loyalty
                         BfG                                85%

         Big four banks*                              72%


* Deutsche Bank, Commerzbank, Dresdner
  Bank, Hypo Vereinsbank                 92% of Germans know BfG**
** ICON Werbetracking 95-98
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.”
  Lars H Thunell
President and Group
Chief Executive, SEB
SEB’s intentions

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


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


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


 • Enhanced asset management growth by
   supplementing BfG product range with
   SEB products EUR 10 (SEK 90) million
   from 2005
 • Funding synergies owing to SEB’s increased
   presence in local German market and
   access to BfG’s deposit surplus EUR 5 (SEK
   45) million first year
Growth potential


  • Internet banking and further asset
    management growth by extending
    upscale and institutional customer base
    EUR 60 (SEK 520) million per year by
    2005
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%
  Lars H Thunell
President and Group
Chief Executive, SEB
Favourable transaction terms

   • Purchase price SEK 13.9 (DEM 3.1, EUR 1.6)
     billion for 100 % of BfG´s 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
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
     SEB after BfG acquisition
                 Leading corporate
                 bank in the Nordic
                       region


Euroland platform for              Major step in
further expansion in               Paneuropean
 Asset Management                Internet strategy

				
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