dnb nor 2008- 2010 norway and beyond 'nordic growth and … · 2017. 9. 26. · lithuania fte...
TRANSCRIPT
International growth
Presentation by Leif Teksum, Head of Corporate Banking and Payment ServicesCapital Markets Day, 9 October 2007
2
DnB NOR's international growth strategy
International presence
1. Global growth inselected industries
2. Strengthen position in the
Nordic and Baltic region
Significantcontribution
to DnB NOR'svalue creation
->2007 2008-2010 2011–>
3
DnB NOR's international growth strategy
International presence
1. Global growth inselected industries
2. Strengthen position in the
Nordic and Baltic region
Significantcontribution
to DnB NOR’svalue creation
-> 2007 2008-2010 2011 –>
4
A 37-year history of international presence
SingaporeEst. 1970FTE 59
LondonEst. 1971FTE 59
New YorkEst. 1975FTE 71
LuxembourgEst. 1973FTE 36
5
… and increased presence in the Nordic and Baltic region
StockholmEst. 1995FTE 192
CopenhagenEst. 1996FTE 11
Helsinki Est. 2004FTE 4
HamburgEst. 1996FTE 8
MurmanskEst. 2006FTE 218
HoldingFTE 48PolandFTE 1 090LithuaniaFTE 1 152LatviaFTE 888EstoniaFTE 29HelsinkiFTE 11CopenhagenFTE 13
6
Strong international growth
Our international income in per cent of total income has almost doubled in
the last three years
8 %
11 %
15 %
2005 2006 2007*
* 2q 2007
-
20
40
60
80
100
120
140
1 2 3 4 5 6 7 8 9 10
CBP International CBP Norway
Exposure at default (EaD) NOK billion – 2q 2007
…and this has been healthy growth with a low-risk profile
7
We have a good basis for further international growth
• Strong, long-term and profitable relationships
• Competent, motivated and loyal employees
• Clear, focused business strategies and effective credit processes
• Competitive product offering
8
DnB NOR's international growth strategy
->2007 2008-2010 2011–>
International presence
1. Global growth inselected industries
2. Strengthen position in the
Nordic and Baltic region
Significantcontribution
to DnB NOR’svalue creation
9
Further international growth along two main axes
Corporate bank, industry dimension
Universal bank, geographical dimension
– Build on core competence industries: shipping, energy and seafood
– Establish Sweden as part ofour core market
– Further develop DnB NORD
10
Further international growth along two main axes
Universal bank, geographical dimension
– Establish Sweden as part of our core market
– Further develop DnB NORD
Corporate bank, industry dimension
– Build on core competence industries: shipping, energy and seafood
11
Market trends drive growth in our key industries
Strong international growth for our key corporate customers
• Shipping• Logistics
Globalisation/ regionalisation
• Energy• Offshore
Demand for energy is increasing
• SeafoodIncreased focus on healthy food
12
36 per cent volume growth achieved in our key industries last 18 months
Sum of SOL, Energy and Seafood segments - Exposure at default (EaD), NOK billion
180
205
234245
Q4 05 Q2 06 Q4 06 Q2 07
13
International trade will drive further growth in Shipping and Logistics
Ship demand scenario – annual increase mill Dwt
• Leading Shipping, Offshore & Logistics bank
• Industry expertise and long-term relationships with leading companies
We are well positioned
Source: Clarkson ResearchSource: Clarkson Research
14
Our growth within Shipping and Logistics will be sound
Targets:
• Maintain our good credit quality
• Increase our market share among the largest leading companies
• Increase fee-based income
• Expand into new shipping segments and new geographical areas
15
Singapore – winner of the Maritime Service Provider Award 2007
Erik Borgen, regional director and head of DnB NOR's Singapore office received the award on 25 September 2007.
16
Strong underlying growth in energy demand and transition from carbon-based to renewable sources
Energy transition process- Global Energy Scenario
• Strong fundamentals within Oil & Gas market
• Technology-driven industry
• Global green wave is providing new markets within the renewable segments
17
Strengthen our position as a leading energy bank within selected segments
FROM Norwegian championTO an international player in hydro, wind and solar power generation
Power & renewables
FROM North Sea strongholdTO a significant international E&P player
Oil & gas
Offshore, contractors & oilfield services
FROM an internationalTO a leading global player
18
Positioned for growth in the global seafood industry
Expected strong and continuous growth in seafood consumption(1000 tonnes) • Ongoing global industry
integration and consolidation
• Industry expertise and long-term relationships with leading companies
050
100150200250300350400450500
2000 2005 2010 2015 2020 2025 2030
Source: FAO
19
A significant player in a growing and consolidating seafood industry
Follow Norwegian customers abroad and expand our customer base in selected geographical areas and sectors
Fisheries and Aquaculture
Expand our domestic and international activities in the seafood value chain in selected sectors
Other seafood
FROM a Norwegian leading bankTO an international bank facilitating further growth in the industry
20
Geographical expansion is a natural consequence of our industry focus, expertise and relations
Greece - Piraeus
Shipping
Greece - Piraeus
Shipping
India Mumbai
ShippingEnergy
Chile - Santiago
SeafoodEnergyShipping
21
Well positioned in other growth industries –telecom, media and healthcare
Consumer consumption & household expenditure in the OECD 1995
70
80
90
100
110
120
130
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Communications
Health
Education
Clothing
Energy&Utilities
Recreation&Culture
Restaurant&hotels
Food&Drink
Transport80
90
100
110
120
130• Growing industries with a
Nordic connection/history
• Norwegian and Swedish companies are represented worldwide
• Positive healthcare portfolio diversification effect
22
Further international growth along two main axes
Corporate bank, industry dimension
– Build on core competence industries: shipping, energy and seafood
Universal bank, geographical dimension
– Establish Sweden as part of our core market
– Further develop DnB NORD
23
Steadily expand our presence and activity in Sweden towards a universal banking concept
Product"export"
Organic growth
Gothenburg
Stockholm
Bolt onacquisitions SEB Finans: Vendor based car
financing
Sweden -our core market
24
Corporate banking in Sweden – challenge the big four
• Main focus: large and medium-sized companies
• Relationship-driven banking based on
Highly competent individuals
Established networks
Good industry knowledge
Cross-selling abilities
• Stockholm, Gothenburg and Malmö
25
Retail strategy for Sweden - challenge the established universal players
• Organic growth with a "lean distribution machine"
• Boosting organic growth with smart acquisitions
• Mortgage loans offered from September 2007
26
DnB NORD - a successful venture in fast-growing economies
• Latvia and Lithuania:
– Leading market position combined with high profitability
Growing economies – annual GDP growth
Source: IMF *Est.
0
2
4
6
8
10
12
14
2004 2005 2006 2007* 2008*
Estonia LatviaLithuania PolandNorway DenmarkSweden Finland
• Poland:
– Acquisition of BISE - DnB NORD has the largest distribution network among Nordic banks in Poland
• Denmark, Finland and Estonia:
– Increasing market penetration with additional product lines
27
DnB NORD - a successful venture in fast-growing economies
Results and volumes in DnB NORD
Lending and deposits in NOK billion, income in NOK million
341311281250
5234742,8
37,233,4
28,5
10,6 11,2 11,918,4 19,2
0100200300400500600
2Q071Q074Q063Q062Q060
10
20
30
40
50
Total incomeNet lendingDeposits
• Full-service bank in Latvia, Lithuania, Estonia, Denmark, Finland and Poland
• Distribution channel for DnB NOR products in the Baltic region and Poland
28
DnB NOR's international growth strategy
International presence
1. Global growth inselected industries
2. Strengthen position in the
Nordic and Baltic region
Significantcontribution
to DnB NOR’svalue creation
-> 2007 2008 - 2010 2011 –>
29
Conclusion:Significant profit contributions from international business
• We estimate that in 2010 income from our international
business will represent approximately 20-25 per cent of
DnB NOR's total gross income
• Main contributions to growth will come from corporate
banking and the Nordic/Baltic region
• Our growth will be based on doing more of what we do
well today – an incremental approach to growth