Debt Investor Presentation H1/2020 OP Financial Group and issuing entities OP Corporate plc and OP Mortgage Bank www.op.fi/debtinvestors

OP will publish the quarterly Capital Adequacy Report for 30 June 2020 on week 31. Slide 44 of this presentation will be updated afterwards. © OP adviser. Past is performanceno guide to future performance.Persons needing advice consult should an independent financial,legal or tax required by law or stockapplicable exchange regulations. toobligation update any of the forward-lookingstatementsor to conform suchstatementsto actual results,except as may be was providedand may besubject to change without notice. OP Financial Groupdoes not undertake and is not under any believed, estimatedor expected. The views andother providedinformation are current as at the date ofwhensuch information to be incorrect, our actualor financialposition results ofoperations could materially differ from that presentedas anticipated, or anyshould prove underlyingassumptions in we which operate. Shouldoneor more of these risksoruncertainties materialise the presentations.Our and alsofinancial reports factors describerisks that could affect our future performance and the industry A number of different factors may cause theactual performance to deviate significantlyfrom the forward-lookingstatementsin best of its ability,but it can not nevertheless guarantee their accuracyor reliability. sources of informationit which considersto be reliable, and the accuracy andreliability ofwhichit has sought to toestablish the materially from those set hasused out in the forward-lookingstatementsas a result of various factors.OP Financial Group functions.No assurance can be giventhat will provesuch expectations to have beencorrect. Accordingly, resultsmay differ future development inthe operating environment and the future financial performanceOP of Group Financial and its various management’s expectations, beliefs, estimates, forecasts,projectionsand assumptionsare based on the current view of the information currently available tothe management. statementsin All forward-lookingthis presentationexpressing the Certain statementsin this presentationare basedon the beliefsof our management as well as made byandassumptions Disclaimer 2 © OP Contents • • • • • • • • Ÿ Ÿ Ÿ Ÿ Ÿ etIRcontacts Debt PBCvrAstPo CCHroie rnprnyTmlt 56 Appendix TransparencyOPMB Cover Asset PoolECBC Template Harmonised & PMrgg Bank OP Mortgage OP Financial Group OP Financial ins economy Finnish OP’s measures amid thecoronavirus pandemic(COVID-19) OP Financial Group in brief OP Financial rdtrtns iudt and funding Credit ratings, liquidity quality asset and performance financial Capitalisation, CR programme activities anddevelopment advantages Strategy, competitive andmarket shares liability joint Structure, 82 66 51 22 11 8 4 3 OP Financial Group in brief © OP 35.5% 39.2%33.5% 17.6% YE2019 in Loans share Market MARKET LEADER INFINLAND tedJn2020 at end-Jun CET1 ratio 17.7% ooeaieOPFinancialGroup Co-operative SOLID CAPITAL POSITION tedJn2020 at end-Jun €160 bn TOTAL ASSETS EARNINGS BEFORE EARNINGS TAX TOTAL ASSETS YE2019 in Deposits share Market tedJn2020 at end-Jun Totalratio capital 21.1% H1/20) eliminations, (excl. group Insurance YE2019 Insurance in Non-life share Market tedJn2020 at end-Jun Leverage ratio 7.5% YE2019 Insurance in Life share Market plc OP Corporate Bank S&P AA- Aa3 Moody’s FINNISH RISK EXPOSURE HIGH CREDIT RATINGS CREDIT HIGH by virtue oftheFinnishlaw. are jointly liable forothers’debtseach andcommitments, amalgamation of the entities) both issuing institutions (incl. Central institution, OP , andthe membercredit JOINT LIABILITY S&P AAA Aaa Moody’s covered bonds OP Mortgage Bank’s atc 2%ofOP’s Baltics oa xoueat exposure total YE2019 5 © OP anPLln items line Main P&L (+4%) €993 mn Total expenses (-6%) €1,481 mn Total income (-28%) €287 mn Group EBT Key financialsH1/20 esne ot y€7m in2020. personnelcosts by €57 mn decrease to estimated is which YE2020 at to be transferred planned are liabilities insurance pension these of Insurance rest Company Ilmarinenat YE2018. The toMutual Pension transferred was insurance pension earnings-related statutory personnel’s ofOP’s Majority Development cost impact Personnel costs income Net investment and fees Net commissions income Net insurance NII EBT operations Other Insurance EBT EBT banking Corporate EBT Retail banking 66m (+7%) €646 mn 10m (-32%) €130 mn 45m (+3%) €415 mn 2 n(-70%) €28 mn €43 mn 25m (+8%) €295 mn -8m (-113%) €-28 mn 13m (-26%) €103 mn 10m (91) €100 mn 45m (+1%) €455 mn 7. n(-4%) €79.8 bn management under Assets (+2%) €740 mn (y-on-y growth) revenue Insurance premium (+8%) €69.2 bn Deposits, total (+3%) €93.7 bn Loans, total (+5%) €9.7 bn loans company Housing (+3%) €23.2 bn loans Corporate (+1%) €39.8 bn Home loans (H1/20growth) Volumes in 2020. income investment net weakens and receivables on loss impairment increases pandemic coronavirus the by caused uncertainty Exceptional than in2019. expected to belower for 2020 are earnings before tax OP Group’sFinancial Outlook 2020 6 7 In H1/20, the coronavirus pandemic affected OP’s core business operations in different ways

Banking Insurance

• Applications for loan repayment holiday and • Claims incurred increased by event and loan repayment schedule modification in epidemy interruption claims and claims H1/20 compensated by travel insurance due to • Home loans: 120,000 applications cancelled or interrupted journeys • SME loans: 20,000 applications • Muted travelling activity, significantly lower • Number of applications normalised traffic and decline in general activity in the towards end-June 2020 society decreased the number of claims up to • After the restrictions set due to the 25% compared to normal levels in Q2/20 coronavirus pandemic were easened, loan • According to current estimates, overall effect demand started to bounce back at end-May of the coronavirus pandemic on net insurance 2020 income expected to be minor OP’s measures amid the coronavirus pandemic (COVID-19) 9 OP takes responsibility amid the coronavirus pandemic Supportive actions for private and corporate customers

Customers advised to utilise Home loan repayment holidays of Adjustments Payment digital service channels up to 12 months, free of charge to rent time payments and flexibility for Some branches temporarily 120,000 applications by end-June 2020. rent reliefs for corporate closed due to the pandemic, in At end-June, the number of applications returned to its commercial customers’ the rest of branches particular pre-pandemic level. real estate insurance attention paid to hygiene and bills safe use of services, protective SME loan repayment holidays of plexiglasses installed Offered by OP up to 6 months, free of charge Real Estate Pohjola Asset Insurance Ltd Support for senior citizens 20,000 applications for repayment holidays and Management is companies’ and other high-risk groups repayment schedule modifications by end-June 2020. Ltd to its rental risk in running banking & Towards end-June, the number of applications decreased. locations. management insurance errands In addition, guarantees provided by state-owned At end-June, partner during financing company Finnvera are available for corporate the lessees’ difficult times, Separate service hours in customers (corporate loans of max. €1 mn are need for flexible too branches and dedicated 80%-guaranteed by Finnvera) lease payment telephone line decreased. 10 OP takes responsibility amid the coronavirus pandemic Supportive actions for employees, healthcare sector and society

OP supported and recommended Pohjola Hospital OP postponed 9,600 lunch remote working for its employees when donated its payment of vouchers to possible personnel’s (up to €97 mn families in 100 employees) interest on need During the coronavirus pandemic in H1/20, work contribution Profit Shares around 75% of OP’s employees worked for public (for 2019) until Pohjola Insurance Ltd remotely. healthcare 1 Oct 2020 OP has drawn up detailed plans for a safe, together with gradual and well-controlled return to in-office Hope ry donated work. As of the beginning of June, employees Persons tracked In line with the vouchers to have been able to return to offices so that a COVID-19 infection ECB and FIN-FSA families in need maximum of 30% of employees are present at chains and helped in recommendations with the aim of the same time. other critical tasks. aiming to support supporting local In August, aim is to return back to work from Pohjola Hospital paid ’ lending restaurants, too summer holidays according to normal working the salaries of these capacity practices focusing on employees’ and persons. customers’ wellbeing, safety and operational profitability. Finnish economy 12 Economic response to the coronavirus crisis in Finland (GDP €240 bn) Sum (€ bn) Share of GDP

Guarantees and loans 10.90 4.5 % Expenditure, taxes and disbursements for companies 5.46 2.3 % Expenditure, taxes and disbursements for households 0.37 0.2 % Other expenditure 2.07 0.9 %

Postponement of taxes and payments* 3.00 1.3 % Pension insurance contribution cuts 0.91 0.4 % Business Finland's subsidies 0.80 0.3 % ELY** Centres' and municipalities' funding for small enterprises and entrepreneurs 0.65 0.3 % Rural areas and fishing industry 0.04 0.0 % Culture and sports 0.06 0.0 % Temporary changes in unemployment benefits 0.27 0.1 % Parental benefits 0.09 0.0 %

Supplementary budget for healthcare 0.27 0.1 % Protective equipment 0.60 0.3 % For municipalities 1.00 0.4 % Other support measures 0.20 0.1 %

* Finnish Government's estimate between €3.0-4.5 bn ** Centre for Economic Development, Transport and the Environment

Source: Pellervo Economic Research PTT 13 Forecasts for the Finnish economy Published 19 May 2020

Forecasts for the Finnish economy, May 2020

EUR bn Volume, % change on previous year 2018 2018 2019 2020f 2021f GDP 234,5 1,6 1,0 -6,0 3,5 Imports 92,1 5,5 2,2 -10,0 8,0

Exports 90,4 1,7 7,2 -11,5 8,0 Consumption 176,8 1,9 0,6 -4,0 4,5 - Private 123,7 1,7 1,0 -7,5 6,0 - Public 53,1 2,1 0,9 4,0 1,0 Fixed investment 55,5 3,7 -0,8 -5,5 1,0

Other key indicators 2018 2019 2020e 2021e Consumer price index, % change y/y 1,1 1,0 0,0 1,0 Change in wage and salary earnings, % 1,7 2,4 2,5 2,5 Unemployment rate, % 7,4 6,7 8,5 9,0

Current account balance, % of GDP -1,6 -0,8 -0,5 -1,0 General government net lending, % of GDP -0,9 -1,1 -8,0 -8,0 General government debt, % of GDP 59,6 59,4 70,5 74,5

Sources: Statistics Finland and OP Financial Group Recession inevitable in Finland in 2020f – Exceptional 14 uncertainty in the economic outlook due to coronavirus crisis Service exports to fall Consumer confidence in 2020f due to the recovering after a decline in global trade significant drop in April GDP change, % and world economy

Coronavirus crisis will Goods exports decreasing due have negative impact to the coronavirus crisis. on the employment Exports will hit bottom in rate in 2020f autumn 2020.

Unemployment rate Fixed investments 8.5% in 2020f and decreasing due to 9.0% in 2021f companies’ muted investment demand for 6% decline in 2020f construction, machines & Households’ savings equipment and R&D ratio increasing while debt ratio stabilising Residential construction Low interest rate environment turning into a fairly clear and moderate inflation Government debt to decline – coronavirus crisis (0% in 2020f) GDP ratio increasing will accelerate the decline sharply in 2020f © OP Source: OP © OP commodity group Balanced structure goodsexports by ore arbn,FnihCustomsSource: Macrobond, Finnish 2008–19 group commodity by exports Goods aetvalues: Q1/2020 Latest Source: Macrobond, OP od xot rud2/3of around exports Goods ins exports Finnish exports from derives of GDP 40% around – economy driven exports- is an Finland 15 © OP countries (11.6%) of which less than 0.5% each. 0.5% remaining than the and (0.5%) less South Africa Brazil (0.6%), Chile(0.6%), (0.6%), which of (11.6%) Republic countries Czech (0.6%), Mexico (0.7%), Austria (0.8%), (0.9%), (1.1%), Latvia (1.2%),Australia India (0.8%), Canada (0.9%), (1.2%),Turkey Lithuania (1.4%), Switzerland (1.6%),SouthKorea Denmark (2.1%),Spain(1.8%), Japan (2.8%), Poland (3.5%), Italy * 2000-19 countries exports goods largest Finland’s and to Euro 60.1% 2019 Area in 37.8% countries to EUmember exports Goods structureDiversified exports goods bycountry Mr21–a 00 2mhmvn avg) moving 2020,12mth 2019–Mar (Mar partners trading biggest Finland’s 35.2%* countries: Other 16 © OP iln’ evc xot yitem2015–19 by exports service Finland’s industry eg.forest for 13% while accounted products exports 11%oftotal for around accounted In 2019,IT services structure exports Service rather stable 2019 area by exports service Finland’s 17 © OP coronavirus crisis Unemployment rate risingdueto the 6.7 2019 8.5 2020f 9.0 2021f pandemic coronavirus the by caused recession tothe due in2020 declines Employment 18 © OP r siae odces in2020 houseprices market and to average decrease housing estimated the are hit will crisis coronavirus In Finland, the aetvalues: Q4/2019 Latest Average houseprices and households’ debt emr 2018 & Denmark 2019, Norway & Sweden values:Finland Latest 19 © OP Ÿ Ÿ Ÿ market housing Finnish of Characteristics marketFinnish housing isstable Ÿ Ÿ Ÿ ore:Saitc Finland, of Bank RAKLI Finland,ry Statistics Sources: 2020 12 July Updated: Ÿ Ÿ Ÿ Ÿ nMy2020 rates in May interest tovariable 2020 tied May in loans of home 98% 4mths 21yrs loan home of anew maturity Average market housing Fully-amortizing wesi ai 63%atYE2018 ratio Ownership market housing for 2020 actions in June support related toCOVID-19 due 85% from first-home-buyers) for to90%(95% increased (LTC) cap loan Home vrg rc fa l wlig219€s nMy2020 in May m information) €/sq 2,129 preliminary y-o-y, (-1.1% dwelling of an old price Average testse ih6 neetrt n2 er’mtrt at OP in 25 years’ maturity rate 6% interest with Stress-tested rvtl iacdnnsbiie o hc 0 rvt investors, investors) 20% professional 30%private (ofwhich financed/non-subsidized 50% privately andaround 50%municipalities/subsidized around market: Rental 1,630 €/sq m in rest of Finland (-3.5%) of Finland minrest €/sq 1,630 (+1.4%) Area Metropolitan minHelsinki €/sq 3,846 average netincome Change innominal house prices inrelation to 20 © OP nErpa comparison in European economy andbalanced Finland iswealthy ** Negative outlook ** Negative outlook * Positive Greece Italy Portugal Spain Ireland Belgium France Finland Austria Netherlands Germany 9 July 2020 European countries ofselected credit sovereign ratings Long-term B1 Baa3 Baa3* Baa1 A2 Aa3 Aa2 Aa1 Aa1 Aaa S&P Aaa Moody's Sources: Rating agencies' websites agencies' Rating Sources: BB- BBB** BBB A AA- AA AA AA+ AA+ AAA AAA BB BBB- BBB A- A+ AA-** AA** AA+ AA+ AAA AAA Fitch 21 OP Financial Group © OP PFnnilGopsstructure OP FinancialGroup’s • • • ic.O otaeBank) OP Mortgage (incl. management ofPrivate wealth part banking Mortgage Retail & SME banking RETAIL BANKING • • ic.O oprt Bank) OP Corporate (incl. fETgnrtdi 12 ec.gopeliminations) group (excl. H1/20 in generated % ofEBT BANKING CORPORATE 4 Pmme oprtv banks cooperative 141 OPmember elhmanagement Wealth Baltics) (incl. banking Corporate 2.0 million owner-customers 2.0 million OP COOPERATIVE • • • • Health & wellbeing & Health Life insurance Non-life insurance customers Corporate & Private INSURANCE • • • Treasury development service and Product functions Support OPERATIONS OTHER siae odces to to decrease estimated htalpandmergers planned all that 130 by YE2020, given YE2020, 130 by • • • 1 2020 Jan since structure governance Three-tier ubrofmember Number oprtv banks cooperative principle) decisions of (significant Supervisory Council supervision) & decision-making (central cooperative Board ofDirectors Group CEO President and ilrealise will 23 © OP on iblt ihnOPFinancial Group within liability Joint Ÿ Ÿ * OP Customer Services Ltd was merged into OP Card Company Plc on 30 November 2019 30 November on Plc Company Card OP into merged was Ltd Services Customer * OP Ÿ banks.Insurance companiesor other group entitiesdonot fall within thescope of joint liability. Mortgage Bank,OP CardCompany Plc (incl. OP Customer Services Ltd*) and the member cooperative The member credit institutions include OPCorporateBank plc, Area CooperativeBank, OP OP Cooperativeand the member credit institutionsare jointly liable for each others’ debts. Under the Act on the Amalgamationof Deposit Banks( OP Mortgage Bank.OP Mortgage Further information on the joint liability available inthe Base Prospectusesof OP CorporateBank plcand Ÿ Ÿ Ÿ prevent amember credit institution’sliquidation. OP Cooperative creditand themember are institutions under an to obligation take to support actions Cooperative. and upon insolvency of OP Cooperativethey have an unlimited liability to pay thedebts of OP The member credit institutionsmust paysharesof the proportionate amountCooperative OP has paid, demand payment from OP Cooperative. If a creditor hasnot received payment from amember credit institution on a due debt, thecreditor may aitleupnke henityät 599/2010 yhteenliittymästä talletuspankkien Laki ), 24 © OP ore ako iln LasandDeposits) andFinance Finland(Non-life and LifeInsurance) Finland(Loans Bankof Source: During its history of more than 100years, OP has steadily increased its market share in loans and deposits OP istheleadingfinancialgroupin Finland Non-life Insurance, YE2019 (Finland: €4.3 bn) YE2019 (Finland: Insurance, Non-life bn) €247.7 Loans, YE2019(Finland: Finnish directinsurance writtenpremiums under of Market share loans: Corporate 40.3% 39.5% loans: Home at YE2019 OP’s market share Life Insurance, YE2019 (Finland: €6.0 bn) €6.0 (Finland: YE2019 Life Insurance, bn) €164.8 YE2019(Finland: Deposits, written gross premiums of Market share 25 © OP • • • • • • vision ofthe Key elements • • • • process strategy Continuous attractive services group financial inFinland OP’s visionisto betheleadingandmost Trusted and responsible expert Present where our customersare #1 choice for our customersand partners and innovator in the financial sector Pioneer employer Attractive performance Leading market strongposition, financial planning strategic duringannual prioritiesaffirmed Indicators for measuring implementationof priorities Annually specified strategic operating modelevaluation environment and Systematic operating implementation Constant assessment,reshaping and taei roiisfor 2020 Strategic priorities 26 © OP Pssrtgctargets strategic OP’s recommendation. NPS for the brand gauges the overall customer experience of OP. NPS can range between -100 and +100. and -100 between range NPScan OP. of experience customer overall the gauges brand for the NPS recommendation. of likelihood measures Score (NPS)that Net Promoter onthe is based metric (CX) experiencecustomer * OP’s Credit rating customers) corporate & (private NPS* Brand CET1 ratio bonuses) (excl. OP ROE Indicator AA-/Aa3 of level at the At least 30 in2025 management buffer +400bps requirement capital ratio Min. CET1 8% in2025 Target A/a A/a A/a AA-/Aa3 AA-/Aa3 AA-/Aa3 AA-/Aa3 24 17.7% 5.2% 0Jn22 2019 2020 30 Jun 26 19.5% 7.1% 23 20.5% 8.1% 2018 22 20.1% 9.3% 2017 27 © OP *** Calculation method applied to the number of customers has been changed as of September 2019, due to a change in definition of a party linked to a customer to party ofa linked definition in change toa due 2019, September of as changed been has customers of number the to Bank) transactions applied monthly 0.25%of Cooperative method Area Helsinki at 100€ OPbonuses (eg. Calculation *** generate bank premiums cooperative OP andinsurance investments savings, loans, the on An owner-customer’s ** depending varies fee Membership * oisrneplc fees policy to insurance €64 mn fees management service andwealth banking to €60 mn OPBonuses** accrued €129 mn Owner-customer* benefits in H1/20 benefits Owner-customer* €2.5bn than more benefits totalled to customers loyalty paid 1999-2019,OPbonuses attractive Between by supported cross-selling andsuccessful ofowner-customers innumber Growth Solid growth innumber ofowner-customers,mn 3.25% in 2020) (target Shares Profit on returns accrued €47 mn Shares inProfit investments €2.9 bn mutual funds free of charge of free funds mutual ofmost andtrading ofselling, buying benefit €4 mn policies insurance non-life on discounts loyalty €35 mn banking ondaily discounts €14 mn ic 2005 since +82% in H1/20 +10,000 owner-customers 2 mn non-life insurancecustomerships, mn Successful integrationof and banking OP customers of number of total 31% 2020 at end-Jun customers insurance and non-life banking combined 1.2 mn*** 28 © OP in H1/20 (157) total development expenditure operations €154 mn €2 bn development investments during– 2016–2020 inOP’s areas Key development • • • • • • Insurance Customers • • • • • Group Digital Pohjola Hospital mobile app mobile Hospital Pohjola Digital Insurance detection core platformrenewal andfraud analysis risk Improved Improved products and services for partners management in handling claims AI utilisation andimproved businessprocess purchasepaths for private customers digital New online eg. and services mobile PSD2, IFRS9) (eg.AML, development Regulation-driven models partnership andnew Banking: APIs Open etc. chain,robotics data, block AI, analytics, big design, New competencies service for UX/UI, digitisation processAgile automation and service ICT architecture and data warehousingrenewal • • • Customers Institutional & Banking: Corporate • • • • • • • Banking: Private &SMECustomers i-asin2019) in2018and by mid-caps caps large by inFinland (selected bank best Bank the OPCorporate Bankingsurveys; Corporate inNPS andProspera’s shows service customer Successful management and asset payments,financing within renewals Platform andprocesses offering service to corporate Improvements xeddueo oieKyin authentications Extended useof Key Mobile management Core systemrenewal in card businessand wealth bank clerks work desk and new phone handling systemfor Digital Real-time paymentsand payment platformrenewal Digital platformsfor real estate businessand home sales Renewal of loan origination process(incl. collateral mgmt) >75% ofhomeloans forapplied in digital channels Digital homeloan process& automated decision-making: 29 © OP oisaduesi Psdgtlchannels digital inOP’s and users Logins Digital service channelsactivelyutilized amidthe coronaviruspandemic activeusers in OP’s digital channels 1.7 mn 95,000 1.5 mn OP Business Mobile app OP Mobile +57% +36% oisinH1/20 logins oisinH1/20 logins 191 mn 7 mn app reg. users y-on-y y-on-y reg. users internet bank 1.9 mn Pivo Mobile 1 mn altapp Wallet -11% -29% oisinH1/20 logins oisinH1/20 logins 22 mn 39 mn Op.fi reg. users y-on-y y-on-y reg. users Monthly logins to OP Mobile app vs. Op.fi internet bank internet Op.fi vs. app to OPMobile logins Monthly channel: mainservice isOP’s app OP Mobile • • OP’s Mobile Key enables authenticationin multiple digital channels 70%made by ofauthentications using Mobile Key activeusers 1.1 mn 30 © OP presence oflocal role the changes experience Digital customer utmr hthv ogdi odgtlcanl tlatoc uigteps 30 days past the during once at least channels intodigital logged have that * Customers fO’ rvt utmrservice customer private of OP’s nonesocrindigital occur encounters >98% channels fcsoescasfe asactive classified of customers sr*o Psdgtlchannels digital users* ofOP’s 45% -105 -40 oprtv banks cooperative OP member 141 350 branches ic YE2014 since ic YE2014 since 31 © OP published inDec 2019focuses around 4key themes New CRprogramme CR at the core ofOP’s business andstrategy eipoefinancial improve We finances and prosperity in all in andprosperity finances management personal of ieayinFinland literacy Wepromote the age groups. age climate change and adapting and change climate sustainable economy development, andmitigating development, We support sustainable We support We foster a to it. We local support vitality physical activity,physical provide security, and create wellbeing in Finland. in create and wellbeing Wepromote local economic We provide jobs, promote and communities vitality. and information capital We use our intellectual We usecustomer data and interest our customers.of transparently, the best in artificial intelligenceartificial responsibly 32 © OP Pscptlaeuc bv h iiu eurmnsandthe requirements CET1 managementbuffer minimum the above capital adequacy OP’s 2020) to min.13.7% (Jun totalling – CET1 MDA level above min.400bps target: Management buffer CET1 ratio aur 2020. 1 January on intoforce entered that 2.00%) (previously at 2.25% requirement P2Rbuffer Group’s ECB set OPFinancial SREP, the of 2019, as part December In capital. AT1and T2 with also covered is P2Rbuffer Q1/20, since guidance, toECB’s According applied. parallel andthelargeroneis capital buffer requirements are (formerly: 2%). These 0% to buffer risk systemic 2%)and (formerly: to1% O-SIIbuffer cutting by capital requirements OP’s lowered FIN-FSA crisis, the coronavirus the 2020,following In April 33 © OP h aaeetsbs nweg ae nteifraincretyavailable currently information onthe based to knowledge according best estimated management’s were the changes ofthese into force andentry *** Impacts ratio CET1 the impacting changes*** Future Decline caused mainly by loan portfolio growth and new-DoD-driven increase in risk weights (-1.3 pps) (-1.3 pps) (+0.2 weights ratio CET1 inrisk improved increase of Vallilaproperty HQ andnew-DoD-driven Sale loan portfolio growth by mainly caused Decline 17.7% CET1 ratio • • • • (66.8) exposures 69.2% for corporate (17.6) exposures 22.8% for retail 2020 30 weights, Jun risk Average • • REA €61.4 bn(55.5) inCET1 capital €2.9 bn shares Profit qualitative requirements met validuntil factors for corporateand retailexposures– In Feb 2020, ECB decision on new DoDrisk incl. weighting TI)–valid until qualitative requirements met (TRIM) – In Apr 2019, ECB set RW floorof approx. 12%for homeloans force on1 Jan 2018 and isvalid until YE2020 FIN-FSA’s 15% RW floor on residential mortgageloans came into until qualitative requirements met requirements qualitative until valid In Feb 2017, ECB decision onRW floorsfor retail exposures – impacts COVID19 for toprepare additionto REA madein Q2/20 in order €0.6 bn €0.2 bncaused byECB RW floors • • • previously set higher RW floors RW higher set previously No further effect on OP’s CET1 ratio due to 32.7% for private customerexposures 32.7% other exposures for 15.4% mortgage-backed 34 © OP h oprtv oe hw neut capital inequity shows model cooperative the of and strength generation earnings Robust togtakrcr ofcapital generation record track Strong eeaertoimprovement ratio leverage to CET1and contribute shares and profit Earnings Minimum level in the draft Minimum levelinthe regulations 3.0% regulations 35 © OP oprsnlaigalNri er behind Nordic peers all leaving comparison inS&PRAC ratio outperformer OP isclear 36 © OP *Ntisrneicm nldsnticm rmNnlf n ieisrne e neteticm nldsnttaigicm swl sntivsmn income as net investment as well income net trading Non-life and Life insurance includes from Non-life income and Life insurance. Net investment from net income includes income ** Netinsurance * A temporary exemptionfrom IFRS9 (overlay approach) is applied tosome equity instruments of insurance companies (reportedaccording to IAS39) 2008–20, €mn quarter EBT by EBT for 2020 expected to belower than in2019 maretls nrcialseoe h B agl asdb h ooaiu crisis coronavirus the by caused onthe sale of Vallilain other HQproperty operating income recognised largely higher and EBT of€96 – mn income A the net capitalgain net investment eroded lower onreceivables while loss businessincreased impairment customer from deriving income In H1/20, H1/20 vs.H1/19,€ mn item*, ** P&Lline by EBT, y-o-y change oa xess+4% Total expenses o a noe-6% Total income 37 © OP OP’s financialperformance bybusiness line H1/20 ru lmntosrcgie throughprofit or * lossGroup eliminationsare mainly recognised due to the change in accountingpolicies Earnings before tax* before Earnings Temporary exemption (overlay approach) owner-customers to bonuses OP Impairments loss on receivables expenses Total Other operating expenses Depreciation/amortisation costsPersonnel income Total income operating Other income Net investment Net commissions and fees incomeNet insurance income Net interest earningsH1 2020, EUR million of which internal net income before tax before income net of internal which Banking Retail -106 595 828 353 215 353 460 -99 28 26 14 1 Corporate akn Insurance Banking 103 158 337 109 202 -68 10 39 11 60 65 -9 -6 130 234 285 136 302 -54 88 27 71 34 -9 0 3 0 operations Other 354 396 197 421 -32 43 67 89 0 1 2 5 6 eliminations Group -348 -365 -346 -336 -17 -37 17 -2 -2 -7 1 0 OP Financial OP 1 481 Group -124 -166 287 993 449 129 415 112 455 295 646 -28 89 27.3% (28.2) ratio Operating cost Non-life Insurance 46.7% (47.6) ratio C/I Banking Corporate 71.8% (72.4) ratio C/I Retail Banking 67% (60) ratio Group C/I efficiency Cost 38 © OP onprflou y3%inH1/20 by Loan portfolio up 0Jn2020,% 30 Jun Loanportfolio breakdown, €93.7 bn *Ohrlasicuelast iaca ntttos ulcsco,nnpoi raiain n utmr abroad andcustomers organisations non-profit sector, etc. public institutions, loans tofinancial student loans, loans consumer homes, include holiday for loans loans ** Other include loans household * Other 0Jn22 s 1Dc2019,€bn 2020vs.31Dec 30 Jun group, product by Loan portfolio growth +1% +1% +3% +5% +12% +3% 39 © OP rssafcigcei ikotokadnwDoD andnew outlook risk credit affecting to coronaviruscrisis due up onreceivables loss Impairment (€44 mn) DoD new (€65 mn) and the crisis coronavirus the by caused mainly on receivables loss inimpairment Increase portfolio and guarantee (0.04) ofloan 0.17% (39)ie. €166 mn H1/20: 40 © OP onreceivables loss Impairment inH1/20 around €65mn Effect ofthe coronaviruson growth inECLtotalled crisis receivables doubtful 64%(66) of gross receivables forborne Performing portfolio (3.2) 4.5%ofloanandguarantee receivables Doubtful H1/20 impairmentloss onreceivables €166mn €88 mn 2014 €78 mn 2015 €77 mn 2016 €48 mn 2017 €46 mn 2018 €87 mn 2019 .%(.)t on&gaateportfolio & guarantee to loan (1.1) 1.6% Non-performing obflrcials(gross) Doubtful receivables .%(.)t on&gaateportfolio & guarantee to loan (2.1) 2.9% Performing 41 © OP repayment holidays due to coronavirus, by industry due tocoronavirus, holidays repayment related to exposures loan modificationsand Corporate exposures ofcorporate industries incertain seen crisis coronavirus ofthe effects Some negative cmeca elestate) and 14% Trade real (commercial estate real (eg.hotels, Services and restaurants,operating ofother tourism), 20% granted Renting modifications schedule andrepayment holidays 21% of repayment xoue ot 1. n fwih6%cnendpiaecsoesad4%croaecustomers and corporate 40% customers to customer private granted 60%concerned were bn, ofwhich €11.1 modifications worth exposures schedule andrepayment holidays repayment 2020, In March-June 0Jn22 s 1Mr2020 industry 2020vs.31Mar by (ECL) 30 Jun loss credit inexpected Change exposures related to Services, Agriculture, forestry, fishery and Trade and fishery forestry, Agriculture, Services, to related exposures in corporate recognised ECL were significant most the March–June, In 42 © OP concerned the lowest three rating grades. threerating lowest the concerned 5% while grades, rating seven highest the concerned was granted holiday orrepayment change plan arepayment which to exposures corporate ofthe 35% In OPFinancial Group’s 20-tier internal rating system for corporate customers, 2020) at30 Jun bn (€51.9 Corporate exposures (gross value) byPDrange PDclass (IRB)by exposures Credit risk €69b t3 u 2020) at30 Jun bn (€56.9 rangePD by (gross value) exposures Retail system, while 4% concerned the lowest three rating grades. rating three lowest the concerned 4% while system, top six rating grades inOPFinancial Group’s 16-tier internal rating the concerned customers private to granted holidays ofrepayment 76% 43 © OP * Slide 44 to be updated on week 31 according to the Capital Adequacy Report for 30 June Report for30 2020 Adequacy 44 according totheCapital * Slide to beupdatedonweek31 Corporate exposures (IRB, net value) €50.9 bn as at 31 March 2020 at 31March bn as €50.9 (IRB, netvalue) exposures Corporate industry* by diversified well Corporate exposures 6Others Food industry 16 Information and communication 15 industry Metal 14 Transportation and storage 13 industry Forest 12 fishing and forestry Agriculture, Other11 manufacturing 10 9 activities insurance and Financial 8 Energy Construction 7 Services 6 Trade 5 Operating4 of other real estate 3 2 1 Industry No. and equipment (incl. maintenance) machinery of Manufacture estate real residential Renting and operation of 1Dc1 31-Mar-20 31-Dec-19 10.0% 10.1% 10.0% 18.0% 4.1% 1.5% 2.6% 2.4% 2.9% 2.8% 3.9% 3.9% 4.9% 5.9% 8.1% 8.7% 10.0% 10.1% 18.1% 4.2% 1.5% 2.4% 2.4% 2.7% 2.8% 3.6% 3.9% 4.8% 6.8% 8.4% 8.5% 9.9% 44 © OP Funding basedonstrong credit ratings Target: Credit rating atleast at thelevel of AA-/Aa3 pae:1 uy2020 Updated: 12 July Insurance financial*** strength rating Covered** bond rating * Negative outlook Pohjola Insurance Ltd*** Svenska AB Handelsbanken Svenska plc Bank OP Corporate Finland Ltd*** Insurance If P&C PMrgg Bank** OP Mortgage DNB Bank ASA A/S AB SEB AB BankAbp Ln-emdebt (Long-term Moody’s rating) Aa3 Aa2 Aa1 Aa2 Aa3 Aa2 Aa3 Aaa A2 A1 A3 surcredit issuer (Long-term rating) AA-* AA-* S&P AAA AA+ A+* AA- AA- A+ A+ A+ A Ÿ INSURANCE LTD POHJOLA Ÿ Ÿ OP MORTGAGE BANK Ÿ Ÿ OP CORPORATE BANK PLC Ÿ to negative in May 2020 in negative to from stable outlook and changed A+ rating S&P affirmed 2019 January in outlook stable with A2 to rating upgraded Moody’s Ÿ 2019 inSeptember outlook stable with rating AAA affirmed S&P Ÿ 2018 inNovember outlook stable with rating Aaa affirmed Moody’s Ÿ 2020 May in to negative stable from outlook changed and rating AA- affirmed S&P Ÿ 2018 December in outlook stable with rating Aa3 affirmed Moody’s collateral baseduplift of notches 2 unused support, of jurisdictional notches 3 unused TPI (Timely Payment Indicator) Leeway 5 notches notch) (+1 Support ALAC and notches) (+2 Earnings and Capital (+1 notch), Position Business from Uplifts (+1notch) Support Government and notches) (+2 Loss-Given-Failure from Uplifts 45 © OP Phstelws se nubac ai inNordiccomparison ratio Encumbrance Asset lowest the OP has liquidity andfunding positionremained good Despite theeffectsof coronavirus pandemic OP’s C s iiu requirement LCR vs. minimum SRv.itra iktolerance risk NSFR vs.internal eotdb h akitself) bank the by reported as (Bank 5ratio EBA Asset to Guidelines Disclosure according Encumbrance banks by reported data from OPFinancial Group,calculated by & calculations Reports Management reports/Risk Source:Banks’ Annual 46 © OP known and predictable paymentknown andpredictable flowsstress andinaliquidity scenario The liquidity buffer is sufficient to cover the needfor short-term funding for 0Jn2020 30 Jun Liquidity buffer by credit rating**, as at €31.5bn buffer Liquidity public-sector entities and companies and entities public-sector ** “Internally rated” includes externally non-rated notes and bonds issued by iudt ufrbekon bn Liquidity buffer breakdown, € 47 © OP credit institutions (excl. TLTRO III) and Tax liabilities and Tax III) TLTRO (excl. institutions credit Liabilities to liabilities, andother Provisions contracts, Derivative contracts, andinvestment insurance unit-linked from Liabilities liabilities, Insurance include: liabilities Other Other assets include: Assetscovering unit-linked contracts, Derivativecontracts, Intangible assets,PPE, Tax assets, Receivables from credit institutions and other assets on 8,dpst 3 n aktbsdfnig2%o h aac sheet balance 27%ofthe 2020 funding at end-Jun 43%and market-based 58%,deposits €160bn Loans totaled sheet Balance Financial Group customer. Guarantee Fund compensates amaximum of€100,000 for each OP Deposit The bn. €40.1 guarantee deposit of scope the within Deposits 48 © OP Maturity breakdown of wholesalefunding welldiversified maturity, 30 bn) (€ Jun 2020 Issued senior unsecured andcovered bonds by • • • • MREL regulation acting as a Single Point of aSingle Entry as acting Bank to apply OP Corporate would measures GroupOP Financial wherebythe resolution The SRB has confirmed aresolutionstrategy for sheet balance inits €1.7 bn worth instruments SNP had Group Financial 2020,OP 30 As of Jun 2020 at 30 Jun as set by the authority: MREL ratio was around43% Group requirementthe clearly fulfilsOP Financial at YE2018 (REA) amount riskexposure the of ie. 27% euros MREL forGroup OPat Financial 14.1 billion has set Stability Authority Financial Finnish The 49 © OP 2018–20 bonds benchmark OP Corporate Bank plc’s Issued long-term bonds€5.9bninH1/20(2.5) erMnhAmount Month Year 09Nvme 50m SP 10yrs 7 yrs (SNP) €500mn June (SNP) €500mn November 2019 January 2019 2020 €1bn June-July 2020 08Ags €500mn 5 yrs (Green) €500mn August February 2018 2019 May 2020 June 2020 June 2020 08May May 2018 2018 50m SP 5 yrs (SNP) mn €500 €1 bn (10 10yrs (T2) bn SEK3.25 (T2) €1 bn 50m each €500 mn dual-tranche, bn €1 Total mn GBP200 .5ysm/s+85bps yrs 5.25 5) non-call 5) non-call (10 10 yrs Cost 4 yrs Maturity (floating) 3 yrs (fixed) 7 yrs 3 yrs 5 yrs m/s +68 bps m/s +65 bps m/s +230 bps m/s +230 bps m/s +200 m/s +50 bps m/s +35 bps m/s +60 bps Eb3 +20 bps m/s +30 bps Eb3 +17 bps m/s +22 bps prto y€ n(auiy3ys nJn 2020. in yrs) 3 June (maturity bn €6 by operation a year. TLTRO than financing III in ECB’s less of Additionally,OP participated amaturity with mn $500 worth financing USD-denominated ECB’s OP 2020,took In March od 2018–20 bonds covered benchmark Bank’s OP Mortgage 09Fbur 12 n1 r m/s+10bps 10 yrs €1.25bn June €1bn February 2018 €1bn November 2019 January 2019 2020 00April 2020 00April Month 2020 Year €1 bn Placement) (Private €500mn mutMtrt Cost Placement) Maturity (Private €300 mn Amount 7.25 yrs m/s -2 bps m/s-2 yrs 7.25 r m/s +3 bps m/s+3bps 7 yrs yrs 8.25 Eb3 +30 bps 2 yrs r Eb3 +45 bps 8 yrs 50 OP Mortgage Bank © OP Ÿ Ÿ & liability OPMB Joint PMrgg Bank (OPMB) OP Mortgage Ÿ Ÿ Ÿ Ÿ Ÿ OPMB inbrief ECBC Covered BondLabel of €20 bnqualifies for the EMTCN programme Coveredbond ratings: AAA (S&P), OP member cooperative banks bank andSpecial-purpose a fundingvehicle for the Groupof OP issuing Financial entity bond Covered of OP Cooperative 100% ownedsubsidiary receive what is due to them before allother creditors However, since assets in OPMB’s Cover Asset Pool arering-fenced, thenoteholdershave theright to Banks of Deposit on the onthe Act based Amalgamation fullyOPMB benefitsfrom thejoint Cooperativeliability amongOP and themember credit institutions, Aaa (Moody’s) edmr bu h CCscvrdbn ae at label bond covered www.coveredbondlabel.com/issuer/6/ ECBC’s the about Read more 52 © OP * Basic lending criteria for the Group are set by OP Cooperative. OP Mortgage Bank has additional loan selection and cover pool eligibility criteria. eligibility pool cover and selection loan additional has Bank Mortgage OP Cooperative. OP by set are Group the for criteria lending * Basic Operating model androles COOPERATIVE BORROWER MORTGAGE OP MEMBER Loan origination Loan BANKS Servicing intermediary loan process Collateral is transferred cover pool to OPMB to via Swap counterparty (interest rate risk risk management) (interest rate counterparty Swap OP MORTGAGE BANK OP CORPORATE BANK PLC Pool managementand analysis Short-term funding provider Legal issues/capital markets Legal issues/capital OP COOPERATIVE Legal affairs affairs & ComplianceLegal Investor reporting Loan selection* Risk management Risk Support functions Support Bond issuance Debt collection Accounting programme under the Issues Product and service development OP SERVICESLTD IT service production Support functions Support INVESTORS DEBT 53 © OP nemdayloanprocess Intermediary Ÿ Ÿ Ÿ The Finnish Covered Bond Act (2010)enables granting intermediaryloans The intermediary loan contract ismadebetween the member cooperative bank and OPMB noteholders until the intermediary loan expires loan process and they serve as collateral for the covered bonds for the benefit of the Once the mortgage loans are registered intheOPMB Covered Bond Register via intermediary Ÿ Ÿ Ÿ Ÿ Ÿ issuance process The member cooperative banks are granted the opportunityto indirectlyparticipate in the covered bond OPMB monitorsOPMB of the the adequacy loansdaily collateralin thecover pool forand loans as loans, accepts the maturitymarks themortgage that of theintermediary OPMB The member cooperativebank commits to preserving adequate intermediaryloan eligible loan portfolio contractingphase of the loan intermediary The amount of loan, interest margin/fixed interest rate andof maturitythe loan areindicative duringthe Intermediaryloans arethe way for the member cooperativebanks to utilize OPMB 54 © OP c nMrgg Credit Bank Operations onMortgage Act of the Highlights Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ FIN-FSA regulations, shallnot be included in theCover Pool Assets that must be bookedas non-performing (over 90 days inarrears),according to Regulated by Finnish FSA and ECB the issuer Continuity of Cover Pool and Covered Bonds inthe event of liquidation andbankruptcy of requirement of 2% Over-collateralisation LTV LTVTight (70% assets loans) eligible onhome on restrictions Segregation ofassets inCovered Register Ÿ increase due to the new DoD at YE2019), asat 30 mn (€18.6 Jun 2020 loans weremn At €40.4 non-performingOPMB, 55 OPMB Cover Asset Pool Characteristics Covered bonds issued after 1 Aug 2010, under the Finnish Act on Mortgage Credit Banks 680/2010 © OP 30 2020 June Main FeaturesOPMB Cover of Asset Poolof as • • • • • • • • Total amount of covered bondsissued EUR13.665billion Hedging agreements in place inorder to mitigate interest rate risk Variable interest rates: over 98% of all loans No loans over 60 days inarrears ongoing Average loan size ofapproximately EUR 52,500 Weighted Average indexed LTV of47% Current billion 15.7 balanceEUR Collateralized mortgages Finnish by 57 © OP Standard & Poor’s: AAA (Stable) &Poor’s:Standard AAA Rating Buffers Pool CoverOPMB Asset Ÿ Ÿ Ÿ MortgageBank, 17 September 2019 Source: Standard & Poor’s Global RatingsEurope Limited, Transaction Update: OP severity loss ** Weighted-average frequency foreclosure * Weighted-average e crs(sa 0Jn 2019) at 30 (as June Key scores uplift based ofcollateral notches 2 unused support ofjurisdictional notches 3 unused Ÿ Ÿ Ÿ Ÿ Ÿ WALS**: 7.23% WAFF*: 17.87% with rating:AAA 2.5% commensurate (OC) Enhancement Credit Target Credit Enhancement: 4.96% Credit Enhancement: 29.61% Available od’:Aa(Stable) Moody’s: Aaa Ÿ Ÿ ak otaeCvrdBns2 a 2020 Bonds 2, 8May Covered Bank, Mortgage Source: Service Moody’sLtd, PerformanceInvestors Overview,OP Mortgage assessment risk Counterparty **** indicator payment *** Timely e crs(sa 1Mrh2020) (asat31March Key scores 5notches TPI*** Leeway Ÿ Ÿ Ÿ Ÿ cp5.0%) (cap post-haircut: 3.4% Score Collateral Probable-High TPI: = Aa1 +1notch CR-A CB Anchor: CR-A****: Aa2(cr) 58 © OP on ysize by Loans Pool CoverOPMB Asset 59 © OP on yLTV by Loans Pool CoverOPMB Asset • • • • 14.3% Eligible only Over-collateralization LTV of 47% Weighted average indexed billion 15.6 EUR Cover PoolEligible assets billion TotalEUR 15.7 assets 60 © OP PBCvrAstPool CoverOPMB Asset on yoiiainyear origination by Loans 61 © OP PBCvrAstPool CoverOPMB Asset on ymaturity by Loans 62 © OP *City-specific figures are percentages of the whole of Finland of whole the of percentages are figures *City-specific Pool CoverOPMB Asset egahcldistribution Geographical 6 5 4 3 2 1 • • • • • Southern Finland48% Åland 0% Western Finland32% uurgo 9% Lapland Oulu region Eastern 9% Finland Jyväskylä 4% Jyväskylä Turku 5% Tampere 7% Oulu 6% Oulu Helsinki 19%* Helsinki 2% 63 © OP PBCvrAstPool CoverOPMB Asset amnsdTasaec Template Transparency Harmonised https://www.op.fi/op-financial-group/debt- pool investors/issuers/op-mortgage-bank/cover-asset- https://www.coveredbondlabel.com/issuer/6/ 64 © OP PBCvrAstPool CoverOPMB Asset amnsdTasaec epaeCOVID-19 Impact Template Transparency Harmonised 65 Appendix © OP ore ael rpryO elEtt aktFnad(uun21,ana survey) 2019,annual Finland Market (Autumn Real Estate Property Oy – Source: Catella submarkets. in other 0.1-0.7%and points CBD agreementsHelsinki approx. in the currentlydecreaseyields points by 0.1–0.5%leaselong renovations. Particularly yieldwithout agreementinitial and lease 5–7-year tenant, needed, stable one newer renovations building major medium-sized without area, good industrial premises: premises a located Ordinary in Logistics/Industrial renovations. without yield initial and leaseagreements 3–5-year tenants, anchor rentability, stable good CBD premises: Modern with Office premises the or renovated renovations. in yieldwithout initial agreementand year lease tenant, 3–5- domestic district or well-known international (CBD),criteria: are Retailpremises:rents. central business premisesinthe Street following are gross retail Rents on level yields andbased Rental levels omrilra saemarket in Finland estate Commercial real investment market at at YE2019 market investment Professional property KTI estimates survey);investorinquiries, annual reports, biannual 2020, (Spring Market Overview Source: KTI – 7 bn €77 67 © OP ru tutr nl ao subsidiaries incl.major Group structure JOINT LIABILITY:OP Cooperative and OP Financial Group member credit institutions in belonging the of scope joint liability marked with orangecolor. were transferred to OPCustody Ltdon 1November 2019. 7) Was transferred from OP Cooperative to OP Corporate Bank plc’s full ownership on 31 August2019. OP merged into Pohjola CorporateInsurance 31March2020 Ltdon Bank’scustody 6) Was and clearing business and its custodian business merged intoCompany OPCard 30November2019 Plc on 5) Was mergedinto Pohjola OctoberInsuranceon 31 2019 Ltd 4) Was 3) OP Cooperative’s control 2/3 2) Planned to betransferred withits subsidiaries from OP Corporate Bank 100% plc to OPCooperative’s direct ownership ownership in the1) OP future Cooperative’s • • • • • banks) cooperative (Member OP Card Company Plc Bank Cooperative Area Helsinki RETAIL BANKING PMrgg Bank OP Mortgage Ltd 1),5) OP Customer Services 3) 1) 4 PFnnilGopmme oprtv banks cooperative 141 OP Financial Group member 1) CORPORATE BANKING • • • • Management Ltd Management Asset OP Real Estate Company Ltd Company Management OP Fund Ltd Management OP Asset (Banking) Bankplc OP Corporate 2.0 million owner-customers • • • • PCsoyLtd OP Custody Finance OP UAB OP FinanceSIA OP FinanceAS 1) OP COOPERATIVE 1) 1) 7) 1) • • Company Ltd Company OP Life Assurance Pohjola Insurance Ltd Insurance Pohjola • • • A-Insurance Ltd A-Insurance Ltd Hospital Pohjola Ltd Company Insurance Eurooppalainen INSURANCE 4) 1) 6) 2) • • • • OTHER OPERATIONS (Treasury) OP CorporateBank plc Oy Finland Checkout OP Services Ltd ioWle Oy Pivo Wallet 1) 1) 1) 1) slimmer. cost structure and makes the management simplifies group structure, streamlines the consolidated cooperative Group’s central OP Financial restructuring of The legal 68 © OP oa.Gnieycoetocustomers. close Genuinely local. oain o hrtbepurposes. for charitable Donations ooeaiemnst ins and mindset. Finnish Co-operative financial prosperity, safety and wellbeing We promote our owner-customers' andoperating environment's sustainable mission: company formand onco-operative Based rationale Owner-customership olcieeprecsandevents. experiences Collective omnt n oit impacts. andsociety community ins ot,ln itr and roots, long history Finnish Pondb t customers. its by OP owned olcievalues.Positive collective omnt spirit Community Ownership OWNERSHIP COMMUNITY

ASPECT ASPECT I I INFLUENCING FINANCIAL ASPECT ASPECT rdc n evc development. and service product in voting. Participation assembly bank community. OP cooperative customer owner- Local decision-making. bank’s own onyour Influencing to influence Opportunity partners. OP’s from Benefits services. OP renewing channels. Constantly Best service services. investment banking, insurance, saving andfrom benefits and Discounts OP bonuses. benefits Financial 69 Daily Banking: Accounts, Cards, Payments, Balance in personal finances iroPyet–Real-time P2P money transfers Payment with – mobile number Siirto

© OP users) (>1 mn 2019 autumn in lists code key to replace Key Mobile eetdvlpet ihndgtlchannels digital within developments Recent Investments: Trading in equities andmutual funds, Non-life insurance: Loss reports,Policy details, Investment details, Market monitoring Loans: Loan details, Financing options Fingerprint authentication Travel insurance cards OP Mobile OP App loans, daily banking, invoicing > nusers) (>1 mn and monitoring receivables for corporate customers’ corporate for Mobile Key (>70% Key (>70% of Mobile customers using) OP Business Mobile App Accessible web service providing basic providing service web Accessible defects, available atsaavutettava.op.fi available defects, unable to use eg. the op.fi service or service the op.fi eg. touse unable banking services tothose who are OP Mobile App due to vision due to or OP MobileApp challenges or other functional orother challenges hearing impairments, motoric impairments, hearing OP Accessible OP bank and website at op.fi Re-designed internet Re-designed New customership Internet Bank Internet Mobile Key Mobile digitally OP.fi transactions and OP Cashier for corporate for customers’ Pivo 2018-19 renewal: Pivoconsumer loan, Pivo facial iroadPv amn utn twbhp enabling payment buttons at webshops andPivo Siirto payment sales App Siirto Payment and Pivo P2P – Real-time money Real-time – P2P Pivo and Payment Siirto payment pilot, services & benefits from partners from & benefits services pilot, payment purchases without key code list or card’s PIN card’s or list code key without purchases iowearable payment solutions Pivo transfers with mobile number mobile with transfers MobileWallet App Pivo Contactless payment for banking customers chatbot service OP neato n hrn expertise and sharing interaction oilmdacanl & mediachannels Social for customer service, employee service, customer for op.media xenldevelopers external OP Developer Open application programming nefc for interface platform 70 © OP • clinic activities and sports Strategic2019: focus on orthopaedics • (up to 100employees) for public healthcare amidthecoronavirus crisis 2020:Pohjola Hospital donates its personnel’swork contribution • • • Launching the2013–15: hospital concept • Expansion to2016–18: university hospital cities • • Health and wellbeing business Pohjola Health Ltd renamed to Pohjola Hospital Ltd as of 1 Jun 2019 incomparable customer incomparable satisfaction Faster care chain and more efficient claims handling process resulting to healthcare customers toprivateandoccupationalservices andrehabilitation examinations, surgery Innovative conceptof and services, healthcarebasic healthcarespecial First Pohjola Health hospital was opened inHelsinki (2013) (2017), in Kuopio(2017) and in Turku (2018) 4 more PohjolaHealth hospitals were opened inTampere (2016), in Oulu services Pohjola Hospitals will give up on basic healthcareand special healthcare anticipated aspreviously centres any medical not open will and Jun 2019) Pohjola Hospital Ltd sold (1 its occupationalhealthcare services to Mehiläinen tasks Persons have tracked COVID-19 infection chains andin other helped critical Pohjola Hospital oieApand Mobile App Pohjola Health 97 Advisor customers surgeryamong NPS 2019 Finland across Pohjola Hospitals 71 72 OP’s ESG Ratings

ESG Rating Agency 2020 2019 2018 Range

- C- (not prime) - D- to A+

A A BB CCC to AAA

- - 16.3 (low risk) 0 to 100 (negligible to severe risk) CCC (neutral) CCC (neutral) CCC (neutral) D to AAA

(OP Corporate Bank) - B (positive) - D to AAA

(OP Mortgage Bank) - A- (leadership) - D- to A

- 54 52 (in 2017) 0 to 100 © OP International ESGcommitments OP ishighly committed to CR Incl. voluntary CR principles and standards OECD Guidelinesfor Multinational Enterprises Ltd Management Commitment by OP AssetManagement Ltd, OPFund Management Company Ltd and OP Real EstateAsset signedin 2009 UN Principles for InvestmentResponsible – (UNPRI) standards, environment and anti-corruption principles 10 human rights,on labour signedin 2011 UN Global Compact initiative – initiatives Measuring the carbon footprint of funds and complying with CDP’s climate change,water andin signed 2015deforestation Montréal Carbon Pledge– responsibility and social issues toenvironmental related risks financingthatmanages Project signedin 2016 Equator Principles – stated inParis Agreement Commitment to monitor lending in accordance withthe principles on sustainable and low-carbon economy,in 2019 signed Collective Commitmentto Climate – Action global warming towell-below 2, strivingfor 1.5 degreesCelsius, inaccordance with theParis Agreement Commitment to alignportfolios to reflect and finance low-carbon, climate-resilient economy required signed in to limit2019 ResponsibleBanking – Finance Initiative FI), forPrinciples (UNEP UN Environment Programme • • • • • • • • • • • • • cooperation & ESG participation Financial Disclosures (TCFD) Disclosures Financial Climate-related on Force Task The of supporter official Ltd: Management Asset OP cooperation Insurance Ltd & WWF Finland Pohjola cooperation Foundation Pohjola Insurance Ltd &Compensate Initiative Plan) Action Mortgages efficiency (Energy EeMAP CR Working Group of Finance Finland (EACB) Banks Co-operative Association of CR Working Group of the European Finland Charter FIBS Diversity (FIBS) association Society CR networkof the Finnish Business & (CBI) Initiative Partnership agreementwith Climate Bonds Principles Bond Social and Green (ICMA) International Capital Markets Association’s Network CompactNordicGlobal (CLC) Coalition Leadership Climate (FINSIF) Finland’s Sustainable Investment Forum 73 © OP • • • • • Banking duringrecent years OP’s CRmeasures footprint carbon and costs heating companies’ housing to cut with LeaseGreen incooperation companies housing for improvements of energy-saving Financing employment and growth economic tosupport companies andmid-sized large for EIB with (€300mn) programme guarantee and EIF by guaranteed (€300mn) programmes SME financing exposures corporate within ESG risks to identify analyses ESG targets performance ESG tied to (margin) and conditions terms with loans Corporate loans corporate Green • • • &ALM Treasury • • • • Insurance ulse nFb2020 inFeb published Report Bond Green first Bank’s Corporate OP 2019 in Feb issued (€500mn) bond green first Bank’s Corporate OP assets green to proceeds and allocating bonds green issuing through financing sustainable to increase aiming (2018) Framework Bond Green parties all to leaves medical by caused losses tominimise chain care rapid Hospitals’ Pohjola change climate by caused impacts Predicting injuries and losses Preventing safety traffic Promoting • • • • • • Management Wealth erae y6% in 2 years by decreased funds of OP intensity carbon 2020; inJune published investments OP’s in opportunities and risks change climate on review TCFD-aligned risks andtax carbon, water on projects engagement thematic – globally GHGemissions highest the with companies listed on to impact initiative) engagement (5yr investor 100+ Action inClimate Membership tofinance andaccess equality change, food security, gender climate concerning impacts positive toachieve aiming round, funding inthe first €76mn worth funds raised I Fund Impact Global Finnfund OP atAGMs voting proxy Active funds OP on analyses sustainability Quarterly funds mutual of footprint carbon and measuring companies high-carbon of Exclusion • • • • • • • practices & OP premises msin rmonoeain onby down 2011) vs. 32% (2019 operations own from Emissions transportation public touse opportunity incentives and work remote by mitigated employees ofOP’s footprint Carbon banks cooperative to OP HQ andsomemember applied WWF Finland Green Office system 2020onwards heat) waste recycled (100% heating circulation OP HQ to be heated with zero-emission level) Group Financial(34% atOP at OP HQ 100% renewable used Energy Management Asset Real Estate ofOP properties andin Hospitals at OP HQ, Pohjola stations power Solar Pohjola Hospitals for OPHQ and LEED Goldcertificates 74 75 OP’s Green Bond Framework published in 2018

• OP Financial Group published its Green Bond Framework and associated Second Opinion issued by Sustainalytics in 2018 • Eligible sectors for use of proceeds: 1. Renewable Energy 2. Energy Efficiency 3. Green Buildings 4. Pollution Prevention and control 5. Sustainable Land Use 6. Clean Transportation • Currently OP Corporate Bank’s Green Bond register includes corporate loans from sectors 1, 3 and 5 • OP Corporate Bank aims to carry out an ESG analysis on 70% of its corporate exposure in order to seek more assets Documents available at https://www.op.fi/op-financial-group/debt-investors/green-bonds © OP eligible for green bonds 76 OP Corporate Bank’s Green Bond Report highlights

2 • OP Corporate Bank issued its inaugural Impacts from OP’s first Green Bond €500 million green bond in Feb 2019 and published the first Green Bond • 328.6 ktCO2e avoided Report in Feb 2020 • 864.7 GWh renewable energy generated • 271.5 MW renewable energy capacity installed • Proceeds allocated to Renewable Energy, Green Buildings and • 32 000 m2 of green certified building area Sustainable Land Use 1 • 1.2 ktCO2e avoided due to reduced energy • As of December 2019, the Green Bond consumption register included eligible assets worth • 69 160 hectares of forest under FSC €960.8 million (reserve of unallocated or PEFC forestry certification green assets €460.8 million) 1 Most relevant UN SDGs:

1 KPMG has verified the allocation of proceeds to eligible loans, and Sustainalytics has reviewed OP’s reporting criteria (incl. impact reporting) 2 © OP for further discussion on the impact methodology, please see OP Corporate Bank’s Green Bond Report published in Feb 2020 at https://www.op.fi/op-financial-group/debt-investors/green-bonds © OP OP aims toOP aims becarbon-neutral by2025 OP committed to take 20climate in2020 actions ehl u customers helpour We eofrnwfinancing new offer We obcm wr of aware to become iiaeteclimate the mitigate rdcsamn to products aiming hi w climate own their impacts change espotcompanies support We nterpt towards path on their netet towards investments performance-linked cnmcgrowth economic oesustainable more oprt loans corporate lmt change climate hog ESG- through echannel We mitigation eices knowledge increase We espotagriculture support We n oetysectors and forestry ffnnilimpacts of financial utial future sustainable asdb climate by caused oad more towards change Renewable energy of OP’s totalenergyconsumption Renewable energyofOP’s 34% 2011 by 32%since down in 2019– & 2) 1 (Scopes ownoperations from OP’s emissions GHG Direct CO2e 23,762 tn own operations emissions fromOP’s 4.6% in of around reduction 2020 madeinenablesemission This transition recycled wasteheat) circulation (100% heating be heated with zero-emission to OP HQpremisesinHelsinki 77 © OP of FinancialandInsurance Conglomerates 144% Capital Supervision underthe onthe Adequacy Act • • requirement 100% Statutory minimum required level resulting from buffers below the without regulatoryobligations within which the group can operate the level of 100% reflectssolvency FiCo minimum the companies, solvency requirementfor insurance requirementsfor banking and bufferresultof the As a RWA on calculated 13.75% Banking capital requirement 78 © OP PFnnilGopserig analysis OP FinancialGroup’s earnings Personnel costs Personnel income Total loss andimpairment Depreciation/amortisation Net insurance income income Net interest € million * A temporary exemptionfrom IFRS9 (overlay approach) is applied tosome equity instruments of insurance companies (reportedaccording to IAS39) annsbfr tax before Earnings Other operating expenses operatingincome Other andfees Net commissions OP bonuses to owner-customers OP bonusesto onreceivables Impairment loss Total expenses income Net investment Overlay approach* 12 11 0921 0721 2015 2016 2017 2018 2019 H1/19 H1/20 8 7 8 8 6 8 2895 2989 3063 2885 3181 1579 1 481 -124 -166 287 993 415 129 295 646 449 112 455 -28 89 -124 396 5 0 8 6 6 1520 1567 1768 1681 1903 953 404 0 4 8 0 5 1026 1058 127 1102 1186 218 1241 274 602 421 450 -39 -67 35 -105 -249 838 781 278 530 421 844 936 -87 53 -226 5 3 3 1101 1138 1031 959 517 325 185 566 839 887 -46 61 26 -217 758 246 522 478 764 879 -48 83 -206 762 160 123 390 558 646 859 -77 -196 781 162 432 528 577 855 -78 55 79 Personnel euno ses(O) 0.29 (ROA), % Return on assets euno qiy(O) 3.6 (ROE),% Return onequity Cost/income ratio, % ratio, Cost/income aia dqayrto 112. 252. 312. 7319.8 17.3 22.9 23.1 22.5 22.5 21.1 21.1 ratio, % Capital adequacy qiycptl ilo 2551 7 1721 8 0279347237747146226 726 6242 7134 © O 7724 P 7213 9324 10237 83969 11084 91905 11742 99769 12570 100991 12515 110427 % CET1 ratio, 124455 133747 Equity capital,€ million 137205 million 140294 Liabilities to customers, € 147024 million € customers, 160255 Receivables from Totalassets, million € OP Financial Group’s key figures and ratios )Jan-Jun Jan-Dec d) 1ratio Tier Core c) 2014 As at 1 January b) a) 30 Jun 2721 2 2061 6 2271 3 2361 5 3201 2 12504 13229 13290 12856 12 356 12130 12227 12 269 12066 12226 12 772 2706 8 6126 4 0075 2 1135 5 9604 0 36443 41304 56834 49650 60331 50157 65161 51 163 68142 58220 70 683 60077 75192 65549 78604 66112 82193 68289 87026 72 750 91463 93 754 2020 771. 052. 011. 5117.1 15.1 19.5 20.1 20.1 20.5 19.5 17.7 67 d d d 31 Dec 2019 0.47 5.5 60 c c c 31 Dec 2018 0.54 6.5 58 c c c 31 Dec 2017 0.60 8.0 58 c c c 31 Dec 2016 0.71 9.4 52 c c c 31 Dec 2015 0.73 10.3 53 c c c 31 Dec 2014 0.57 8.1 56 c c c 31 Dec 2013 0.66 8.9 62 c c c a a 31 Dec 2012 0.50 14.1 411. 12.8 14.0 14.1 7.0 63 c c c b 31 Dec 2011 0.50 14.0 6.8 63 c c c b 31 Dec 2010 0.53 12.6 6.9 59 c c c b 80 provisions), % (excl.transitional ratio II Solvency Insurance Life provisions), % transitional (excl. IIratio Solvency Insurance Non-life % ratio, operating combined Insurance Non-life guarantee portfolio, % to and loan receivables Impairment loss on © OP receivables, €million Impairment loss on € billion portfolio, Loan andguarantee OP Financial Group’s key figures and ratios d) Jan-Jun c) Jan-Dec 30 Jun 2020 89.3 0.17 166 789. 008. 137. 367. 776. 59.4 62.8 67.7 71.0 73.6 77.8 81.3 84.8 90.0 94.6 97.8 3 4 3 3 2 4 1 2 / / N/A N/A N/A 100 125 149 117 149 146 151 127 176 135 170 132 152 144 139 d d d 31 Dec 2019 92.7 0.09 87 c c c 31 Dec 2018 92.0 0.05 46 c c c 31 Dec 2017 96.1 0.06 48 c c c 31 Dec 2016 87.6 0.09 77 c c c 31 Dec 2015 87.3 0.10 78 c c c 31 Dec 2014 89.4 0.12 88 c c c 31 Dec 2013 86.9 0.12 84 9NANAN/A N/A N/A 99 c c c 31 Dec 2012 90.5 0.15 99 c c c 31 Dec 2011 89.8 0.16 101 c c c 31 Dec 2010 89.7 0.25 149 c c c 81 Debt IR contacts © OP CFO’s H1/2020 Results (to Interview be on publishedweek 30) Group’s OPFinancial and issuing and andentities’ financial reports watch other publications the See eg. OP’s Debt IR website available at www.op.fi/debtinvestors Debt IRcontacts jaana.mauro(a)op.fi 8426 10 252 +358 Tel. Jaana Mauro Relations Investor Debt IR Officer, lauri.iloniemi(a)op.fi Tel.3541 10 252 +358 Lauri Iloniemi andALM ofTreasury Head tom.alanen(a)op.fi 4705 10252 +358 Tel. Tom Alanen Manager Senior Funding eerikki.holst(a)op.fi 4455 10252 +358 Tel. Eerikki Holst Relations Rating Agency IR Officer, 83