Erik Zingmark Global Head CM

1. Erik ZingmarkGlobal Head CM CM Trends and ”the cure” Tallin, 8 feb, 2007

2. One Market One Market One Bank One Bank One Attitude One Attitude Agenda • SEB Cash Management • Trends in Cash Management • Cash Management Value Chain™ • Sum up

3. Cash Management

4. Cisco?

5. Cash Management! Logistics of information Moving and concentrating liquidity, securely, accurately and cost efficiently

6. Cash Management SEB, Merchant Banking • Own operations in 16 countries • Early mover and thought leader since mid 70-ties • Long term commitment for CM from top management • Award winning solutions

7. GTS Organization GTS Mikael Björknert Senior Advisor Erik Brattström Staff Functions Ann Karlsson Concept & Packaging Patrik Havander Market & Infrastructure Roger Storm Customer Support Göran Wendéus Product Management &Development Paula da SIlva Cash Management Erik Zingmark Custody Services Göran Fors Fund Services Trade Finance Lars Millberg Fund Services Mikael Björknert

8. Cash Management Global ReachSEB & ING Alliance – the largest integrated network in Europe, combined with local “sub-contracting” bank partners

9. Trends

10. Trends - SEPA

11. SEPA = Single Euro Payments Area • A politically driven and encouraged process – particularly for consumers • An enabler and catalyst for EU market integration and increased competition • Payments in Euro to be as easy, safe and efficient as the best of national systems – with no differentiation between cross-border and national payments • A single market for payments for the EU • pay and receive in Euro to a single account • a single set of payment instruments • a single format

12. SEPA = Standardizing Payments in Europe IS • A single currency • A single set of payment instruments: • credit transfers, • direct debits and • card payments • Efficient infrastructure • Common technical standards • Common business practices • Harmonized legal framework • Continuous development FI NO SE EE LV DK LT IR NL UK PL DE BE LU CZ SK AU HU CH FR RO IT BG ES PT GR

13. SEPA = A Multi-year Roll-out Schedule 12/2010 01/2006 01/2008 Implementation phase Phase-out phase Design phase Migration phase SEPA Instrument set-up and testing SEPA Instruments generally in use, national instruments phased-out SEPA Instruments available

14. Trends - SEPA Expectations from the market • On time • Cheap • One account • Few payment instruments • STP • Increased competition between banks and other providers Forecast • On time  Only re SCT • Cheap  Yes, but major decrease in souther Europe • One account  ST – MT: Outgoing payments. LT: Incoming payments • Few payment instruments  Yes. But Value added services with arise • STP  Yes improved. Questionmark how long XML will stay without dialects • Increased competition between banks and other providers  Absolutely. A differentiation, will take place

15. Customer value SEB and SEPA Strategy Value Adding Solutions Premium support Local services STP enhancements Information / statistics etc Cash Management Value Chain™ Compliance • PSD requirements • SEPA Instruments • New Standards • PE-ACH access

16. Trends – eInvoicing

17. Trends – eInvoicing (B2B) • eInvoicing brings great benefits to all involved in the process • Higher STP • Lower cost • Government bodies and municipalities are driving the demand • Slow up-take by market, especially among larger corporates • Some hesitation about the business model / logics • Receiver driver (Customers) • Sender driven (Suppliers) • Formats, content, rules and government not yet fully agreed upon • Thereby difficult to deliver cross border solutions • A first few steps to make eInvoicing happen are: • to establish a legal framework (e.g. what is an invoice) • to set up an infrastructure

18. Trends – eInvoicing (B2B)Status • Receiver driver model seems to be the most effective model • Higher economic benefits (processes) for receiver • Challenge: Supplier activation. SEB co-operates with IBX • SEB represent Sweden in the Nordic forum • Nordics getting closer – can deliver area during 2007 • Possible to offer that also to e.g. Estonian corporates within a year • SEB is of course also working very hard in establishing an Estonian eInvoicing solution

19. Trends – MA CUGs

20. SWIFT MA-CUGMember Administrated Closed User Groups • A model shift – corporations using SWIFT • A corporate can access their “sponsoring” bank(s). • A corporate can not directly access other banks or corporations. • Enables information exchange via • FIN – e.g. MT101/103, MT940 • FileAct – general file transfer – any file format • InterAct – transactional services - requires special formats. • Requirements • Agreements with sponsoring bank & SWIFT. • Technical infrastructure from SWIFT plus possibly also other vendors.

21. MA-CUG Update • SCORE – Standardised Corporate Environment. • Standardized and simplification of agreements • Pilot expected to start beginning of 2007 • Many corporates and banks in same group • To use SCORE, corporates must be listed on a regulated stock exchange of a country which is member of the Financial Action Task Force • Market demand • Still low to no demand from Nordic corporates. • Worldwide about 150 corporates after 5 years. • Conclusions • The corporate business case is still in many cases not obvious. Similar communication functions are often available at lower price.

22. Trends - CentralizationGtnews.com survey / 390 global corporates • Continuation of the trend towards centralization • Globalization of both the supply chain and markets for goods and services are the drivers, as well as legislation such as Sarbanes-Oxley and Basel II • Ingredient of ”Lean production” efforts Special report, Nov 2006, www.gtnews.com, in association with SEB

23. Trends – Treasurer’s roleGtnews.com survey / 390 global corporates • Low value activities such as payment processing and in-house bank administration are moved to SSCs, outside Treasury • Treasury becomes an internal consultant on cash-flow management and therefore advise business management on increasing shareholder value by improving working capital, financial supply chain and risk management Special report, Nov 2006, www.gtnews.com, in association with SEB

24. Trends – Critical financial processesGtnews.com survey / 390 global corporates • Cash Flow forecasting still the area with highest potential for improvement • Legal and tax differences between countries and M&As reasons for still not having optimal cash pooling processes in place • In the A/P and A/R processes, the main problems are found in the quality of the data, preventing high STP in reconciliation Special report, Nov 2006, www.gtnews.com, in association with SEB

25. CM Value Chain™

26. Which of your CM costs do you want to, or dare to, see?

27. Uncovering savings possibilities

28. Then, how does CM fit into the larger picture? = Cash Management Value Chain™ Industry changes Globalization Technology Regulatory “LEAN PRODUCTION” WORKING CAPITAL

29. A summarized picture of CMVC™

30. A process for excellence

31. Initial analysis Workshop Implementation Follow-up Initial analysis Workshop Implementation Follow-up Present situation Identification and prioritisation of problems Define desired state Present situation Identification and prioritisation of problems Define desired state Supporting tools CMVC™ CM Excellence Scorecard™ Diagnosis output CMVC™ Business Case Model™ CM Analysis Model™ Result

32. Cash Management Value Chain™ • Pro-active advise and expertise • Lower total cost of Cash Management • A guarantee for continuous development of your processes and organization • Access to ”best practice” and tools for benchmarking your own level of CM excellence

33. SEPA and the Cash Management Value Chain™ Improved End2End STP IBAN/BIC invoicing and L-T more Direct Debits and new SEPA references L-T fewer accounts New SEPA instruments and standards L-T better payments discipline with more Direct Debits & direct bank clearing … should lead to less working capital need

34. Sum up

35. Sum up • Regulations, political initiatives etc will continue to “rain over us” • SEPA is mandatory for banks and a great opportunity for corporates • B2B eInvoicing will happen soon. Currently calibration of formats and rule • Liquidity forecasting / Working capital management here to stay • Also, Swift will become more available for corporates (SwiftNet, MA-CUGs), but still not clear to what extent and value • CMVC™ is a great ”tool” to • address these challenges • lower your total cost of CM and optimize your working capital • help you focus on your core business, by optimizing your financial processes

36. Award-winning Cash Management– thanks to our clients! • No. 1 Customer satisfactionin Europe Euromoney’s Cash Management Poll, 2006 • No. 1 Commitment to Cash Management, globally Euromoney’s Cash Management Poll, 2006 • No. 7 globally in market share as International Cash Management Bank Euromoney’s Cash Management Poll, 2006 • The most innovative cash management provider the Nordic Region Financial-i, 2006 • No. 1 globally. Voted Best Bank for Electronic Cash Management Euromoney Technology Awards, 2005 • Best at Cash Management in the Nordic/Baltic region Euromoney Awards for Excellence, 2004, 2005 & 2006 • Best Bank Cash Management – Nordic Region TMI Awards, 2004, 2005, 2006

37. The End

38. Extras

39. CM geographical organization