Issuer Presentation - Nykredit

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The balance principle � Cash flow on the loan = cash flow on bonds issued to fund the loan � Eliminates all financial risks for the issuer � Borrower assumes price risk at refinancing (if any) � Tap issuance � Bonds issued daily to fund new loans = No pipeline risk � Daily bond buybacks to match redeemed loans � <strong>Issuer</strong> active as market maker, seller and buyer every day � Price transparency � Product transparency and standardisation � All loan features embedded in the bonds 40
Loan types and bond types standardised accross issuers Fixed Rate Mortgages Adjustable Rate Mortgages Fixed rate callable annuity loans with or without interest-only periods � Funded by fixed rate callable bonds � DKK-denominated � Maturities: 10, 15, 20 and 30 years � With or without interest-only options (max 10 years) � Bonds tapped daily depending on the lending activity � Bonds open for issuance for 3 years to build up volume Adjustable-rate annuity loans with or without interest only periods � Funded by fixed rate non- callable bullet bonds � DKK- or EUR-denominated � Customer’s interest lock in period equals bond maturity � Daily tap issuance combined with auctions in March, September and December � Bonds open for issuance until maturity Floating Rate Mortgages Capped or uncapped floating rate mortgage loans with or without interest only periods � Funded by capped or uncapped floating rate bonds respectively � Maturities: 5, 10, 20 and 30 years � With or without interest-only options (max 10 years) � Coupon based on CIBOR or EURIBOR � Daily tap issuance combined with auctions in March, June September and December 41
Page 1 and 2: Nykredit Realkredit Group Investor
Page 3 and 4: Executive summary (cont’d) The Da
Page 5 and 6: Nykredit - largest lender in Denmar
Page 7 and 8: Lending and market shares Lending (
Page 9 and 10: Nykredit in a good position to meet
Page 11 and 12: Income statement (EURm) Core income
Page 13 and 14: Nykredit Group ratings Nykredit Rea
Page 15 and 16: Harmonized unemployment rate, 2010
Page 17 and 18: Harmonized unemployment rate, 2010
Page 19 and 20: Affordability Index (houses) Financ
Page 21 and 22: Low housing turn over, but supply d
Page 23 and 24: Increasing popularity of ARM’s, b
Page 25 and 26: Nykredit presence in the capital ma
Page 27 and 28: Nykredit covered bond benchmark iss
Page 29 and 30: Junior Covered Bond funding � A n
Page 31 and 32: Junior Covered Bonds - An Overview
Page 33 and 34: Cover pool breakdown Q3 2012 Sector
Page 35 and 36: Robust loan performance despite eco
Page 37 and 38: Agenda � The Nykredit Group � D
Page 39: Mortgage lending regulated by law
Page 43 and 44: Strict underwriting standards Real
Page 45 and 46: Contacts and more information Inves
Page 47: Disclaimer and disclosure DISCLAIME

Issuer Presentation - Nykredit

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