Danske Bank to Ireland

Acquisition of National Irish Bank & Northern Bank

Copenhagen, December 14, 2004 Agenda

• Transaction highlights 3 • Strategic rationale & value creation 8 • Compliance issues 22 • Further process 23 • Further information on the Web 24

2 Transaction highlights

Transaction summary - Increased focus on retail banking

• Danske Bank to acquire National Irish Bank (NIB) and Northern Bank (NB) for GBP967m / DKr10.4bn • Expands foreign retail lending by 37% to DKr203bn • Business development and enhanced productivity through efficient use of IT • Total cost synergies of approximately DKr350m • Earnings per share accretive in 2006 after conversion • Capital ratios will be close to targets by year-end 2005 • Guidance for 2004: core earnings of about DKr12bn

3 Transaction highlights

Vision for the acquisition - Develop the retail business from a stable base

• Stable and profitable base from which to expand operations • Leading bank in Northern Ireland with potential to grow retail business • Attractive position in the Republic of Ireland as beachhead for expansion in fast-growing Irish market • Basis for improving services and product offerings • Leverage Danske Bank’s retail expertise • Enhance productivity through efficient use of IT • Danske Bank’s size will enhance ability to compete with larger local players • Expand branch network over time, leveraging existing infrastructure

4 Transaction highlights

Danske Bank’s int’l retail operations - Putting things into perspective (end-September 2004)

DKr bnLoans DKr bn Deposits % Pre-tax ROE 100 40 25 87 35 23

80 30 30 29 61 20 60 20 17 16 40 34 15 14 21 10 20

- - 10 Sweden Norway NIB NB Sweden Norway NIB NB Sweden (9M p.a.) Norway (9M p.a.) NIB&NB 03/04 number Branches# FTE Full-time employees % C/I ratio 100 95 2,500 71 70 2,101 80 2,000 65 67 59 61 61 60 1,500 60 47 1,053 992 40 1,000 55 742

20 500 50 Sweden Norway NIB NB Sweden Norway NIB NB Sweden (9M p.a.) Norway (9M p.a.) NIB&NB 03/04

5 Transaction highlights

Acquisition price & financing - No equity funding needed

Acquisition price: DKr10.4bn Acquisition price Multiples of P/BV excl. pensions deficit 2.2x P/E (2003/04) 13.1x

Financed by: Deal financing Hybrid capital DKr 1.5bn Reduction of share buyback H2 2004 DKr 1.0bn Issue of new supplementary capital DKr 3.0bn Cash DKr 4.9bn

Capital targets unchanged: Target capital ratios Core capital ratio incl. hybrid 7.0 % Solvency ratio 9.5 % Dividend pay-out ratio 50 % 6 Transaction highlights

Key pro forma figures - Pro forma NIB & NB 8% of combined net profit

NIB&NB NIB&NB Danske Bank 03/04 75% of 03/04 9M 2004 GBP m DKr m DKr m Net interest income 198 1,582 11,330 Other operating income 87 698 8,475 Total operating income 285 2,280 19,805 Total costs 174 1,394 10,482 Core earnings before provisions 111 887 9,323 Provisions for bad and doubtful debts 7 55 405 Core earnings 104 831 8,918 Investment earnings - - 726 Profit before tax 104 831 9,644 Tax 30 241 2,765 Net profit 74 591 6,879

Sept. avg. Sept. avg. End-Sept. GBP bn DKr bn DKr bn Lending 5.1 55 1,111 Total assets 7.0 75 1,914 Deposits 4.6 49 504 Shareholders' equity 0.5 5 63 Total liabilities and shareholders' equity 7.0 75 1,914

Risk weighted assets 4.7 50 797 7 Strategic rationale & value creation

Exportable retail banking model - The local bank supported by a global back office

Local bank - global back office Local bank • Local presence • Local presence and branding/community

• Regional centres with branch network proximity

• Affluent individual • SME banking offerings banking/long-term savings

• Standardised mass affluent offering • Scalability Global back office • Direct support (Web, ATM, call centre) • Global back office and IT infrastructure • Standardised • Centralised support products/processes functions/processes

• Cross-border IT platform 8 Strategic rationale & value creation

In line with retail banking strategy

1. Attractive • Positioned for growth in attractive markets outside the Nordic markets region as extension of retail strategy.

2. Platforms • Acquisition of substantial businesses with growth potential. for growth

3. Efficiency & • Substantial value-creation opportunity through cost savings cost savings and leveraging of Danske Bank’s retail expertise.

4. Revenue • Efficient use of IT, investments in existing branches and benefits introduction of new products and services will support growth.

9 Strategic rationale & value creation

1. Attractive Highest growth in the EU markets

Republic of Ireland GDP growth (Y/Y real growth) Republic of Ireland • Fastest growing economy in the EU from GDP growth (Y/Y real growth) Euro zone 1994 to 2002 4.7% 4.9% 4.6% 3.7% 3.9% 3.7% • Strong demographics, low interest rates, and corporate tax rates with financial support from EU

2003 2004E 2005E 2006E 2007E 2008E Source: GS Research & Economist intelligence unit

The United Kingdom GDP growth (Y/Y real growth) The United Kingdom • Northern Ireland fastest growing GDP growth (Y/Y real growth) Euro zone regional economy in the UK in 2004 3.2% 2.3% 2.4% 2.5% 2.2% 2.0% • Stable growth underpinned by improving political situation and EU/UK funding

2003 2004E 2005E 2006E 2007E 2008E Source: GS Research & Economist intelligence unit 10 Strategic rationale & value creation

1. Attractive High lending growth in Ireland markets

Republic of Ireland - Retail lending Retail bank lending, EUR bn / Rep. of Ireland Annual growth, % (right hand scale) • Average annual lending growth of 20% in the 120 35 past five years 80 25 • Growth expectations lower, but still healthy 40 15 outlook 0 5 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004E 2005E 2006E Source: Central Bank & Financial Services of Ireland/Danske Bank

Republic of Ireland – Mortgage lending Mortgage lending , EUR bn / Rep. of Ireland • Average annual lending growth close to 25% Annual growth, % (right hand scale) in the past five years, supported by lower 120 35 interest rates 80 25 • Growth expectations lower, but still 15-20% 40 15 0 5 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004E 2005E 2006E Source: Central Bank & Financial Services of Ireland/Danske Bank 11 Strategic rationale & value creation

2. Platforms Overview of NIB and NB for growth - Focus on personal and business financial services

Y/E Sept. 30, 2004 NIB & NB

Personal Financial Services Business Financial Services Wealth Management Other

GBP m GBP m GBP m GBP m • Total income 148.3 • Total income 115.0 • Total income 12.2 • Total income 9.8 • Direct costs 49.4 • Direct costs 19.8 • Direct costs 6.0 • Direct costs 37.0 • Contribution • Contribution • Contribution • Contribution after bad debts 95.7 after bad debts 91.5 after bad debts 6.2 after bad debts -27.4

Contribution Total income Direct costs (after bad debts)

4 8 3 Personal Financial services

42 26 Business Financial services 54 47 49 66 Wealth Management

12 Strategic rationale & value creation

2. Platforms Good match for growth - Similar focus, products and philosophy

• The acquisition is in line with Danske 2004 Bank’s pronounced retail strategy 2003 2002 • Opportunity to grow outside the Nordic 2001 market 2000 1999 1998 Divested/downscaled e.g.: 1997 Banking Activities UK 1996 Banking Activities US 1995 Danske Securities

Danske Bank NIB NB • National Irish Bank and Northern Bank Customer focus Retail Retail Retail make a good fit with Danske Bank’s Products Full product Standard Standard structure and strategy range products products Distribution Branches, Branches, Branches, • Shared business philosophy: e-banking, 2nd tier e-bank, 2nd tier e-bank, -Product strategy telephone telephone* telephone* Branding Local Local Local - Distribution strategy Back office Centralised Decentralised Decentralised - Infrastructure structure Current (global) *Outsourced 13 Strategic rationale & value creation

2. Platforms Developing the business for growth - The Swedish case

• Business case similar to Danske Bank’s SKr bn Lending and deposits 110 106 acquisition of Östgöta Enskilda Bank in CAGR 39% (1998-2004) 92 90 CAGR 20% (1998-2004) Sweden in 1997 76 70 Lending 66 • A small retail bank in attractive market Deposits 50 37 36 • Since acquisition, business has expanded 32 28 30 24 25 20 significantly 15 15 12 10 • Doubled market share 1998 1999 2000 2001 2002 2003 9M 04 • Considerable profit increase 87% C/I ratio • Conversion to the central platform 75%

• Östgöta Enskilda Bank has the highest 67% 64% customer satisfaction in Sweden for the 62% 61%61% fourth consecutive year

1998 1999 2000 2001 2002 2003 9M 04

14 Strategic rationale & value creation

2. Platforms Key financials for growth - National Irish Bank

• 59 branches and 13 business banking Y/E 30 Sept. (GBPm) 2003 2004 4 year CAGR centres Net interest income 60.1 63.8 8.4 • Increasing focus on HNW and larger SME Other operating income 19.7 18.6 -2.1 Total operating income 79.8 82.4 5.6 • 134,000 retail, 25,000 premium and 8,000 Direct costs 34.9 35.9 1.1 business banking customers Contribution 44.9 46.5 9.7 Provisions for bad debts -1.1 2.7 8.5 • 742 full-time employees Contribution after bad debts 46.1 43.8 9.7

• The portfolio is dominated by mortgages Portfolio composition (30 Aug., 2004) Mortgages • Prudent credit policies: 15 Property & construction - Loan loss ratio 14 bp (Y/E Sept. 30, 04) 8 41 Wholesale & retail 11 Personal lending & credit cards 25 Other

September 2004: Total lending GBP 2.0bn For the ease of comparison NIB’s financials are stated in GBP 15 Strategic rationale & value creation

2. Platforms Key financials for growth - Northern Bank

• 95 branches, 5 agencies and 13 business Y/E 30 Sept. (GBPm) 2003 2004 4 year CAGR banking centres Net interest income 139.7 134.1 -0.3 Other operating income 72.1 72.1 0.2 • 349,000 retail, 44,000 premium and 22,000 Total operating income 211.8 206.2 -0.1 business banking customers Direct costs 73.3 76.4 -0.4 • 2,101 full-time employees Contribution 138.5 129.8 0.1 Provisions for bad debts 6.7 4.2 3.3 Contribution after bad debts 131.8 125.6 0.0

Portfolio composition (30 Aug., 2004) • The portfolio is dominated by mortgages and Mortgages property & construction Property & construction 20 32 • Prudent credit policies: Agricultural 8 - Loan loss ratio 13 bp (Y/E Sept. 30, 04) Personal lending & credit cards Wholesale & retail 8 22 10 Other

September 2004: Total lending GBP 3.2bn 16 3. Efficiency & One Group – One System cost savings - Competitive advantage

Fokus Bank 2001• Helsinki Branch 1997 Northern Bank mid-2006 • • National Irish Bank mid-2006 • • ÖEB 2000 & 2002 London Branch 1998 • BG Bank 2002 • • Hamburg Branch DBI Luxembourg • • 1999 2003 DB Polska 2003

17 Strategic rationale & value creation

3. Efficiency & Efficient use of IT cost savings - Supporting business development

Finance • Shared data Call centre Netbank ATM Branch centre • Multi-currency • Multi-language CRM STP etc. • Full product range Data- ware- • Flexible distribution house Consolidated • Efficient production IT platform • Data security Products and services • Resilience Shared data storage

18 Strategic rationale & value creation

3. Efficiency & Cost synergies & restructuring cost savings - IT conversion is the key driver

• Cost synergies of DKr350m: DKr m Cost synergies - De-duplication of back-office operations 60 - Implementation of DB’s IT platform 300

150 - Implementation of DB processes 200 350 - Organisational adjustments 100 • C/I ratio 61% before and below 53% after 140 synergies. 0 2005 2006 2007 2008 Total • Restructuring costs of DKr1.5bn: DKr bn Restructuring charge

2.0 - IT investments Updated February 25, 2005

- Branch refurbishing and branding 1.5 0.5 - Severance payments 1.0 1.5 0.5 1.0 • Pension schemes deficit 0.0 - Estimated at DKr1.2bn after tax Estimated restructuring Costs in 2005 Costs 2006-2008 charge 19 Strategic rationale & value creation

4. Revenue Business development benefits - Overview

• Productivity enhanced by investments in IT and other investments in existing branches • Introduction of high quality products Market shares and services

• 2005-2006 focus on conversion and optimisation =< market > market growth growth • 2006-2012 above-market growth

• In the longer term, branch expansion 2005 2006 2007 2008 2009 2010 2011 2012 2013 will be key to driving increased cross- Conversion Above-market growth sales across the Group

20 Compliance issues

Indemnity on compliance issues

• National Irish Bank has been the object of high court investigation relating to: • Mis-selling offshore investment products • Failing to comply with certain statutory tax collection responsibilities • Overcharging of fees and interest • Investigations have focused on the period 1988 to 1998 • No pending issues with authorities • Danske Bank will not bear any risk relating to these matters • Full indemnification from NAB

21 Further process

Time table - Key events

2004 December Announcement of the deal

2005 February 10 Annual Report for Danske Bank

Q1 Approval (Irish and British FSA & EU) Completion of the acquisition IT conversion begins

2006 Q2 IT conversion completed

22 For more information, please visit

www.danskebank.com/irireland