Slides
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11 Landshypotek Bank Investor presentation - third quarter 2025 2025-10-27
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22 1) Working for a richer countryside 2) Sustainability & ESG 3) Agriculture market overview 4) Housing market overview 5) Financial update 6) Asset quality 7) Capital adequacy 8) Funding, liquidity and cover pool 9) Contacts and financial calendar Table of content
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33 Executive summary: • Low-risk market leading agriculture and forestry bank with sustainability integrated in the strategy with a market share of 24% • Sustainable governance where profit is reinvested or returned to the agriculture and forestry sectors • The bank for the conscious choice of mortgage loans and savings • A lending portfolio with a positive climate footprint • Low-risk business model - 99.8% of the loan portfolio is first-lien mortgages - Average LTV is 44% - 99% of the customers have a personal liability - Total losses since 1985 SEK 366m, average per year 0.026%
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44 Working for a richer countryside In short: • Landshypotek Bank’s vision is to enhance life in the countryside • A leading low risk bank in the agriculture and forestry sectors and challenger in mortgage market • Strategy Treasure our position in the market and value what it stands for Grow with new and existing customers, primarily within in the retail market (agriculture and residential) Become a larger bank with better profitability and higher efficiency for us and our customers
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With the same purpose since 1836. Boring? Never. 5 • Our main focus is mortgages and we understand the importance of the place where people chose to live or develop their business within agriculture and forestry • We strive to be a sustainable bank offering solid and long term financial services and competitive terms for savings • We offer mortgages for agriculture, forestry and residential as well as savings accounts • Collaborations are actively chosen and part of our future • It all started in 1836 with the very first building society. Our main task is to provide competitive financing and to offer financial services to Sweden's farmers and foresters • Since 2017, we have challenged the mortgage market by offering competitive interest rates that enables people to live well across the country. Structural changes within the agricultural landscape made it even more natural for us to take this step
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Landshypotek is more than just a bank 6 • 32,000 loan customers are members of Landshypotek Ekonomisk Förening, the foundation of a long term governance structure • Landshypotek Ekonomisk Förening is sole owner of Landshypotek Bank • All business is conducted in the bank • Purpose: Provide competitive financing and to offer financial services to Sweden's farmers and foresters. Focus for 120 elected representatives: ▪ Owning the bank ▪ Representing the members in a democratic organization ▪ Represent Landshypotek in the market ▪ Execute real estate appraisals Landshypotek Ekonomisk Förening Democratic ownership, representatives and appraisals Loan customers in Landshypotek BankContributions (4%) of loan value Members Landshypotek Bank
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Position, focus and strategy 7 • One of the 10 largest banks in Sweden and market leading in agriculture and forestry with approx. 24% of total lending to the sectors • Considered a systemically important bank by the Swedish National Debt Office (Sw. Riksgäldskontoret) • Loans outstanding to the agriculture and forestry sectors of SEK 85bn and residential mortgages SEK 32bn • Long term governance structure being owned by 32,000 loan customers, members of Landshypotek Ekonomisk Förening • Profit is reinvested or returned to the agriculture and forestry sectors • 99.9% of the loan portfolio is first-lien mortgages, low average LTV 44% • 99% of our customers conduct business as sole proprietorship, which is a private individual with personal liability • S&P Covered Bond rating AAA, S&P issuer rating (long) A, Fitch issuer rating (long) A Treasure our position in the market and value what it stands for Grow with new and existing customers but primarily within in the retail market (agriculture and residential) Become a larger bank with better profitability and higher efficiency for us and our customers Market leader and challenger Low risk actor Circular economy
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88 Sustainability and ESG In short: • Sustainability embedded in the business model • A lending portfolio that stands out – great absorptions and essential emissions • Four material sustainability topics set the agenda – climate change, biodiversity, own workforce and governance • Updated Green Bond Framework to facilitate the transition within agriculture
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99 A lending portfolio that stands out • Landshypotek’s lending portfolio differs from other Swedish banks. The vast majority of Landshypotek’s lending is to agriculture and forestry – two sectors that are dependent on photosynthesis and other ecosystem services. • The forest is a key link in the transition to a fossil-free society as forest- based raw materials are renewable, recyclable and biodegradable. • Forests and arable land are carbon sinks with a considerable potential to store even more carbon. • Cultivated land and grazing animals are essential for biodiversity and diversified landscapes. • Pastures, fields with crops and forest lands are essential for other ecosystem services like absorption of heavy rains, cleaning of ground water and soils provide habitats for thousands of species. • Swedish farms maintain high standards for animal husbandry, environmental conditions and food quality. • Moreover, forestry and farming are the only two sectors that can create biodiversity and other ecosystem services. The two sectors are further crucial for Sweden’s self-sufficiency and preparedness in times of crises. • Forestry and agriculture are closely linked – if you are a farmer you are a forest owner too.
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Material sustainability topics 10 • Landshypotek completed a double materiality assessment during 2024. • The double materiality assessment concluded that the bank’s material sustainability topics are: • Climate change • Biodiversity and ecosystems • Own workforce • Governance • Policies, actions and targets within each material sustainability topic will be the foundation of Landshypotek’s sustainability agenda. • Although the bank is no longer covered by the formal reporting requirements under the CSRD/ESRS for the financial year 2025, Landshypotek will continue to publish an annual sustainability report in a manner that is inspired by the CSRD/ESRS. Pollution, Water and marine resources, Circular economy, Employees in the value chain, Affected communities and Consumers and End -users are not considered to be material at this time. Climate change •Financial materiality (risk and opportunity) •Impact materiality (direct and indirect) Biodiversity & ecosystems •Financial materiality (risk) •Impact materiality (indirect) Own workforce •Financial materiality (risk) •Impact materiality (direct) Governance •Financial materiality (risk) •Impact materiality (direct)
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Climate and nature related risks for lending portfolio 11 Transition risks • Political decisions e.g. taxation of fossil fuels used in machinery, CO2-pricing such as an emissions trading system for agriculture, land use regulations (e.g. EU Nature Restauration Law) and mandatory renovation requirements to improve energy efficiency in buildings. • Change in consumer and investor demands. Climate indicators and physical risks Landshypotek Bank’s impact • Through customer dialogue inform and discuss methods and investments for adaptation and emission reductions • Credit analysis and appraisals include sustainability aspects from a climate and environmental perspective • Credit analysis includes ESG risks and opportunities as part of SWOT analysis • Finance projects and investments which adapt the business to a changing climate or reduce their impact on the climate Further understanding • To better understand climate indicators and physical risks in our lending portfolio, an updated analysis has been conducted using data from SMHI during 2024. • In addition, we have conducted an analysis with Hemma on all properties in our mortgage portfolio with issued and Synthetic EPCs (AI model estimates) to understand the emissions from our mortgage portfolio. Complex sector exposure • Agriculture and forestry are dependent and crucial for nature as we know it. There are no closed systems which increases the complexity to fully understand the consequences of a changing climate Temperature will lead to other risks like drought and heatwaves Length of growing season will provide a greater opportunity for higher yields and crop variation but higher risk of increased pressure from vermin Heatwaves place stress on growing crops and livestock whilst increasing the risk of lower yields Extreme precipitation causes flooding and extreme rainfall can destroy crops and provide challenges for using machinery and damage to property Fire risk can lead to the destruction of forests and lost growth Elevated sea levels pose a risk for properties in exposed areas
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Climate change 12 Our impact is primarily within our lending portfolio • Climate transition plan zero is revised annually with the overall aim of achieving net missions in the lending portfolio by 2045 at the latest. • The transition plan focused on removing the use of fossil fuels within agriculture as this is the most urgent abatement measure within agriculture and forestry – and one that the bank can finance. • The bank’s residential mortgage portfolio largely follows the national distribution of Energy Performance Certificates. • The bank can play an important role in financing energy efficiency measures in single-family houses (småhus) and a more indirect role in the improved energy efficiency of residential apartments. • Landshypotek’s own emissions are primarily driven by energy used in our offices and work-related travel. • Focus on agriculture • Biological processes • Political governance is necessary • Fossil free agriculture The bank will have a targeted offer for investments to phase out fossil fuels, investments in the production of renewable energy and energy efficiency measures in housing and production facilities. #1 The bank will have a targeted offer for investments to adapt businesses and housing to a changed climate (e.g. irrigation, cover ditching). The bank will work closely and proactively with its customers to phase out fossil fuels and to identify and minimize climate-related risks in the customers' operations at an early stage. The bank have a clear connection between the bank's lending and borrowing in terms of financing climate change mitigation and adaptation to climate change. The bank's employees will be continuously trained to understand climate change and how the bank can contribute to reducing it and contribute to climate adaptation. Board, management group, risk function and business organization must have special knowledge to be able to manage, follow up and support the needs of the bank, the owners and the customers. Climate-related risks are integrated into all aspects of the bank’s risk management, from ongoing customer dialogue to customer pricing. #2 #3 #4 #5 #6 Landshypotek Bank’s transition plan in short Direction, goals and activities
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Great absorptions and essential emissions 13 Biogen and fossil-based emissions • There is a difference between the “green” and the “brown” carbon atom. One is part of the natural carbon cycle; the other one is not. Emissions and absorption from land use • LULUCF sector contributes to a yearly net absorption of greenhouse gases • The net absorption corresponds to 66% of Sweden’s total emissions (2024) • Most of the net absorption within the sector comes from forests and wood products • Absorption (carbon pools) is found in the living biomass and mineral soils • The reduced absorption from the forests in recent years is due to lower growth (drought) and greater extraction (spruce bark beetle and greater demand) Emissions from agriculture • Emissions in agriculture are driven by methane and nitrous oxide from animal feed digestion, manure handling and nitrogen conversion in soil • The sector's emissions are based on biological processes, which makes the calculations uncertain, especially nitrous oxide emissions from nitrogen supply to arable land • The agricultural sector is the largest source of emissions of the greenhouse gases methane and nitrous oxide Emissions from housing • Emissions from housing, primarily heating, have decreased by 91% between 1990 (6.2 million tons CO2e) and 2024 (0.3 million tons CO2e). Remaining emissions are driven by energy sources for heating and consumption. -80 -70 -60 -50 -40 -30 -20 -10 0 10 20 Million ton CO2e Emissions and absorption from lands use 1990-2024 in Sweden Pastures Settlemenst Wetlands Arable Land Harvested wood products Forest land 0 1 2 3 4 5 6 7 8 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 (prel) Million ton CO2e Emissions from agriculture 1990-2024 in Sweden Storage of manure Arable land Animal feed digestion
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Financed emissions and CO2 absorption in the lending portfolio 14 Land use’s emissions and absorption sources : Absorption in the forest Absorption in crop and grazing lands Emissions from crop and grazing lands Emissions from organogenic soils (e.g. peatlands) Emission sources from activities on the land: Emissions from: milk production beef production pig production crop cultivation poultry forestry buildings residential properties Methane (CH4) Nitrous oxide (N2O) Carbon dioxide (CO2) Carbon (C) Carbon dioxide (CO2) Nitrous oxide (N2O) Positive climate effect of the bank's lending portfolio ▪ The forest’s absorption is greater than all emissions attributable to other land use and different land use segments. ▪ The result is shown based on the loan-to-value ratio and thus refers to the bank's financed emissions and absorption. What causes the emissions? ▪ Emissions from soils (nitrous oxide, nitrogen compounds) ▪ Livestock’s digestion of feed (methane) ▪ Manure (handling of manure and production of fertiliser) ▪ Energy use (livestock and machinery) Variables for sensitivity analysis ▪ Nitrous oxide emissions (highly uncertain) ▪ Area of forest land (amortizations, loans paid off) ▪ Average number of animals used in calculations (ruminants) ▪ Handling of manure (assumption of 30% of Sweden’s total emissions) How can we increase the effect through reduced emissions? ▪ Dialogue with customers and other players in agriculture and forestry to jointly drive the climate transition ▪ Financing fossil-free energy production and energy-efficient buildings ▪ Plans for the opportunity to reward customers who use farming methods and make investments in food production with a lower climate impact
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Financed emissions and absorption 15 Financed emissions/ absorption with reference to LTV ratio (ton CO2e) Financed substitution effect with reference to LTV ratio (ton CO2e) Land use Absorption forests - 1 900 000 - 1 150 000 Absorption crop and grazing lands 0 N/A Emissions cropland + 460 000 N/A Emissions grazing land + 15 000 N/A Emissions organogenic soils + 330 000 N/A Land use total - 1 570 000 Emissions from segments Milk production + 560 000 N/A Beef production +100 000 N/A Poultry + 22 000 N/A Pig production + 27 000 N/A Crop cultivation + 66 000 N/A Forestry + 2 000 N/A Emissions from segments + 770 000 Residential Housing + 3 000 N/A Buildings + 24 000 N/A Total emissions and absorption - 770 000 Total emissions, absorption and substitution effect - 1 920 000 Positive climate effect of the bank's lending portfolio ▪ The forest’s absorption is greater than all emissions attributable to other land use and different land use segments. ▪ The result is shown based on the loan-to-value ratio and thus refers to the bank's financed emissions and absorption. How can we increase the effect through reduced emissions? ▪ Dialogue with customers and other players in agriculture and forestry to jointly drive the climate transition ▪ Financing fossil-free energy production and energy-efficient buildings ▪ Plans for the opportunity to reward customers who use farming methods and make investments in food production with a lower climate impact
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Biodiversity and ecosystems 16 Our impact is primarily within our lending portfolio • Landshypotek Bank finances Swedish agriculture and forestry. Agriculture and forestry are unique sectors in relation to biodiversity. • Agriculture and forestry have a significant impact upon biodiversity and ecosystem services. They are also the only sectors which can create biodiversity and ecosystem services. • The bank currently does not have a specific policy or targets relating to biodiversity as there are significant challenges in assessing or calculating biodiversity. There is no accepted method for assessing biodiversity. • The bank currently addresses biodiversity in the credit assessment process through the following processes: • The independent valuations of forest and farming properties includes an assessment of factors that are relevant for biodiversity such as nearby Natura 2000 areas. • A climate and environmental assessment is conducted for the bank’s larger agricultural and forestry customers which contains questions about the customer’s knowledge of and planned or on-going work with matters related to biodiversity and ecosystems. • Landshypotek also contributes to biodiversity through financing of sustainable forestry in Sweden. • Landshypotek’s Green Bond Framework requires that a forest property must have an up-to-date green forest management plan, including nature conservation action plans for at least 5 % of the productive forest area or the forest property contains at least 5 % deciduous trees. • Alternatively, a forest property must have certification through the Forest Stewardship Council (FSC) and/or the Programme for the Endorsement of Forest Certified (PEFC). Both certifications contain the same requirements for nature conservation action plans or the presence of deciduous trees. • For forest properties larger than 5,000 hectares, certification is mandatory if the forest property is to be included in the green asset pool.
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Green Bonds 17 • Landshypotek updated the bank’s Green Bond Framework during 2025. • Issued a green bond for 6bn SEK in October 2025. • The green bond comprised of loans financing or refinancing land and investments in: • Sustainable Forestry • Sustainable Agriculture, namely precision farming, KRAV certified pastures (grazed by ruminants) and construction of ponds and drainage systems • By 2030, Landshypotek aims to increase the volume of green lending by 50% compared to 2024 levels of 11.5bn SEK. Support customers in reducing their emissions, increasing carbon sequestration and growth to enable sustainable withdrawals from the forests, enhancing biodiversity in the landscape, and improving resilience within forestry and agriculture • Sustainable Forestry (minor updates) • Sustainable Agriculture I- IV (new) • Renewable Energy (extended) Rationale for green financing Alignment to market practices Green Loan Categories • Alignment with ICMA’s Green Bond Principles June 2025 • SPO from S&P Global Ratings, shading Medium Green • Mapped to the EU Taxonomy environmental objectives and activities • Clean Transportation (new) • Green Buildings (updated to market praxis) • Energy Efficiency (new)
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Own workforce 18 • Landshypotek has a significant impact on the bank’s employees. • With fewer than 250 employees across 19 offices all over Sweden, employees work with a broad range of tasks. This provides the opportunity for employees to develop and provides opportunities for internal recruitment. • Being a Swedish-based bank, the bank already fulfils many of the fundamental requirements relating to right of association, paid parental leave, sick leave and retirement benefits. • The overall gender balance within the bank and at management level is even but there are significant discrepancies within the management group and board. • Measures to address the gender imbalance at the highest levels of the bank will be a key focus of the bank’s agenda relating to its own workforce. Age Distribution (2024-12-31) Gender balance women/men per 2024-12-31 In total 53/47 Managers 52/48 Management Group 25/75 Board 29/71 20-24 år 25-29 år 30-34 år 35-39 år 40-44 år 45-49 år 50-54 år 28 34 31 33 41 45 28 34 31 33 41 45 2020 2021 2022 2023 2024 2025 eNPS scale -100 – 100
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Governance 19 Overarching Sustainability Policy Climate Transition Plan General corporate governance and ethics Code of Conduct Code of Conduct for suppliers Ethics Policy Insider Policy Conflict of Interest Policy Compliance Policy Policy for Counteracting Money Laundering and Financing of Terrorism Owner Directive Sustainable credit granting and transactions Formal work plan for the Green Bond Committee Climate and Environmental Analysis Instruction Credit Granting Guidelines Risk Policy KYC Guidelines Valuation Policy (for Cooperative Association) Work environment, employee commitment and societal responsibility Remuneration Policy HR Policy Board Diversity Policy Guidelines and Instructions for Outsourced Operations and Contract Management Guidelines for Landshypotek Bank’s Work Environment Efforts • Stakeholders’ confidence in the bank is fundamental • As a bank, Landshypotek has been required to meet strict legal requirements regarding governance matters including anti-corruption, anti-money laundering and handling conflicts of interest. • Governance-related topics are dealt with across a broad number of policies, guidelines and instructions including those listed in the column to the right. • Liquidity reserve comprises interest-bearing securities and excludes investments in direct operations in fossil-based energy production, nuclear power, research or development of weapons, potentially environmentally harmful extraction of resources (for example, rare earths or fossil fuel), gambling or tobacco. • Sustainability reporting in a manner inspired by the CSRD/ESRS for the financial year 2025 and onwards. Board Landshypotek Ekonomisk Förening Board Landshypotek Bank CEO Compliance CISOManagement Group including Sustainability Officer Human Resources Commercial organization - Farming and Forestry - Residential mortgages Finance Risk function Sustainability Team Owner Directive Policies Guidelines Instructions
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2020 Agriculture market overview In short: • Forest owners continue to benefit from healthy margins. Increased pressure on the forest industry has led to lower sawlogs and pulpwood prices. However, limited inventory levels are helping to moderate the pace of price declines, providing some stability to the market. • Crop producers experiencing decreased cash flow. The harvest forecast shows increased volumes compared to previous five years. • Animal producers have improved cash flow primary due to lower feed cost • There is a significant investment need across the entire sector
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Property price development 2005-2025 21 Data source: Ludvig & Co (refers to only open market purchases mediated by Ludvig & Co), SCB • In Q3 2025 agricultural property prices increased by 3.6% compared to Q2 2025. Property sales declined by 3.8% in Q3 compared to the same period 2024. • The nominal price of forest land has increased by 5.7% during the first half of 2025 compared to the full year of 2024. This follows two years of a negative price trend. The long-term trend is increasing price levels in all areas. • The price of arable land decreased by an average of 15.5% during 2024. The primary factors contributing to the lower prices were the higher interest rates and increased costs. Arable land Forestry -15% -4% 1Y +8% +19% 5Y 0 100 200 300 400 500 600 Arable land Forets land
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Forestry 22 Roundwood price trend (Q2 2015 – Q2 2025) Data source: The Swedish Forest Agency, National Institute of Economic Research Economic tendency Forest Industry (Sep 2015 – Sep 2025) • A constrained supply environment combined with sustained demand support prices for timber and pulpwood. Timber prices rose 10% in Q2 quarter-over- quarter, while pulpwood increased by 7%. • In Q3, however, pricing softened as downstream industry pressures prompted reductions – an outcome largely anticipated by forest owners and already factored into market expectations. 60 70 80 90 100 110 120 130Indicator Wood & products of wood Paper & paper products 0 50 100 150 200 250 300 Sawlogs Pulpwood
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Crops 23 Development grain / fertilizer price ratio (Aug 2016 – Aug 2025) Production (1,000 tonnes) Data source: Swedish Board of Agriculture, Lantmännen • Grain / fertilizer price ratio decreased by 5.9% in August compared to July due to decreased grain prices. Compared to August 2024 the ratio declined 24%, due to lower grain prices and increased fertilizer price. • The harvest forecast for 2025 indicates a volume that is 14% larger than in 2024 and 11% larger than the average for the previous five years 0 1 000 2 000 3 000 4 000 5 000 6 000 7 000 Cereal crops Dried pulses Oilseed crops 0,00 0,20 0,40 0,60 0,80 1,00 1,20 1,40 1,60Ratio
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Dairy 24 Development milk / feed price ratio (Aug 2015 – Aug 2025) Production, Sep – Aug (1,000 tonnes) Data source: Swedish Board of Agriculture • Milk / feed price ratio increased by 1.9% in August compared to July primary due to reduced feed prices. The ratio was 30% higher than August 2024. • Milk prices has declined during Q3, though from high levels. Preliminary average milk price in September was approx. 10% higher than September 2024. • Total production increased by 1.4% past 12 months compared to previous year. Latest three months production has increased by 4.4% year to year. 0,00 0,20 0,40 0,60 0,80 1,00 1,20 1,40Ratio 0 500 1 000 1 500 2 000 2 500 3 000 3 500
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Cattle and Pig 25 Dev. beef/pig / feed price ratio (Aug 2015 – Aug 2025) Production, Sep – Aug (1,000 tonnes) Data source: Swedish Board of Agriculture • The price ratio improved in August compared to July for both cattle and pig, primarily as a result of lower feed prices. Compared to August 2024 the pig/feed respectively beef/feed ratio improved by 10% and 18%. • Past twelve months pig production increased by 1.8%. In June-August production was 1.1% higher compared to same period 2024. Beef production was 6.5% lower over the past twelve months due to decreased number of cattle. 0 50 100 150 200 250 300 Beef Pigs 0,00 0,20 0,40 0,60 0,80 1,00 1,20 1,40Ratio Beef / feed price ratio Pig / feed price ratio
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2626 Housing market overview In short: • Sentiment among consumers has improved, but is still weaker than normal • The market continues to show a cautiously optimistic trend, with modest price increases
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House price development Q3 2015 – Q3 2025 27 Data source: SCB Houses +2% 1Y +13% 5Y • The market showed a cautiously optimistic trend in Q3 with a modest price increases. Index for one- or two-dwelling buildings increased by 1.5% quarter over-quarter, supported by stable inflation and lower interest rates. • Improved sentiment is further reflected in a 13% year-over-year increase in two-dwelling buildings sales during Q3 0 3 500 7 000 10 500 14 000 17 500 21 000 0 200 400 600 800 1 000 1 200 Number Price index Number of sales Real estate price-index (1981=100)
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The financial situation of the households 2015-2025 28 Data source: National Institute of Economic Research, 24 September 2025 • Sentiment among consumers remains weak, even though the National Institute of Economic Research’s latest tendency survey showed that the consumer confidence indicator increased for the fifth consecutive month. The indicator rose from 91.6 in August to 93.2 in September. • The increase in September is largely explained by improved expectations among consumers regarding both their own economy over the coming twelve months and Sweden’s economy twelve months ahead. -40 -30 -20 -10 0 10 20 30 Net balance The financial situation of the household compared with 12 months ago The financial situation of the household over the next 12 months
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2929 Financial update In short: • Higher net interest income during the third quarter of 2025 compared to 2024 • Expenses are higher than last year, primarily driven by higher cost levels • Credit losses generated a net earnings impact of SEK -3 million for the quarter
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5-year financial KPI development 30 Financial KPIs, SEKm 2020 2021 2022 2023 2024 2024vs2023 ∆ % Total lending 83 036 93 968 105 647 104 751 111 110 6 359 6% Lending to Agriculture 71 471 75 195 78 440 79 290 82 290 3 000 4% Lending to Mortgage 11 565 18 773 27 207 25 461 28 820 3 359 12% Savings 14 672 15 254 23 496 29 080 27 090 -1 990 -8% Total income 862 964 1 094 1 220 1 096 -124 Total expenses 478 498 551 589 603 14 Credit impairments 13 5 4 5 -4 -9 Operating profit 397 471 548 636 489 -147 Cost income ratio 0,55 0,52 0,50 0,48 0,55 0,07 Leverage ratio (consolidated group) 5,9% 5,6% 5,1% 5,6% 5,6% 0,1% CET1 ratio (consolidated group) 15,2% 14,4% 14,0% 16,3% 16,1% -0,2% ROA 0,3% 0,4% 0,4% 0,4% 0,3% -0,10% ROE 5,5% 6,4% 7,1% 7,7% 5,7% -2,02% ROREA 0,9% 1,0% 1,1% 1,3% 1,0% -0,29% LTV 42,7% 43,0% 43,2% 43,8% 43,7% -0,09% *Loan-to-value ratio in Landshypotek Bank’s cover pool
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Q3 result 31 • Net interest income increased compared to Q3 2024 • Expenses are higher compared to Q3 2024, primarily driven by higher cost levels • Credit losses generated a net earnings impact of SEK -3 million for the quarter Landshypotek AB SEKm 2025 Q3 2025 Q2 Δ QoQ 2025 Q3 2024 Q3 Δ last year YTD 2025 YTD 2024 Δ YoY Net interest income 276 283 -7 276 269 7 836 811 24 Net commission income 7 7 0 7 7 0 21 12 9 Net gain financial items 1 1 0 1 -3 4 1 -3 5 Other income 2 1 0 2 1 0 4 4 1 Total income 285 292 -7 285 274 11 862 824 38 Total expenses -134 -165 31 -134 -126 -8 -453 -436 -16 Profit before impairments 151 127 24 151 148 3 409 387 22 Credit impairments -3 0 -3 -3 1 -4 -10 4 -14 Operating profit 148 128 21 148 149 -1 400 392 8 Tax expense for the period -32 -28 -4 -32 -32 1 -87 -86 -1 Net profit 116 100 17 116 117 0 313 306 8
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Long term growth in loan portfolio 32 Loan portfolio, SEKm Net interest income, SEKm 0 20 000 40 000 60 000 80 000 100 000 120 000 140 000 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Q3 743 727 800 799 815 872 972 1087 1220 1 078 836 0 200 400 600 800 1000 1200 1400 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Q3
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Stable cost levels 33 Cost income ratio excl loan losses Total expenses 0,51 0,52 0,53 0,52 0,53 0,55 0,52 0,50 0,48 0,55 0,53 0,25 0,35 0,45 0,55 0,65 0,75 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Q3 387 404 402 426 461 478 498 551 589 603 453 0 100 200 300 400 500 600 700 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Q3
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3434 Asset quality In short: • Landshypotek Bank has 3 lines of defence that work together at different stages in order to mitigate risks. Risk organisation is the second line that is in charge of risk governance and control. • 99% of customers have personal liability and 99.9% have post collateral with mortgage deed in real estate or tenant owned apartment • Loan portfolio is collateralized with low LTV assets (44%) • The value of arable land and forestry compose the majority of the collateral • Well diversified portfolio in terms of geographical and business distribution • Exposures are classified out of loan size, turnover and income • Excellent performance
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99% of customers have personal liability and 99.9 % post collateral with mortgage deed in real estate 35 • Business is conducted as sole proprietorship (Sw. enskild näringsidkare) – due to Swedish legislation on land ownership • Sole proprietorship is a private individual with personal liability • Exposure weighted LTV 44% • Customers post collateral with mortgage deed in real estate • Capital intense in relation to turnover and earnings • Structural changes lead to larger units • The structural changes have been gradual
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Loan portfolio is collateralisedwith low LTV assets 36 99.9%Mortgage deed in real estate Collateral 44%LTV Loan to value 99.9% of the loan portfolio is first-lien mortgages with LTV of 44% Value 35% 29% 31% 5% Barn and facilities Residentuals Arable land Forest
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44% 14% 10% 11% 12% 6% 2% 1% Employment Plants & crops Livestock Forest Other Contracting Pigs Poultry Well diversified portfolio in terms of geographical and business distribution 37 Asset portfolio per business unit, SEKbn Asset portfolio, business distribution, % Average loan per customer is SEK 2.0m 23 18 25 21 29 Region Mellansverige Region Nordost Region Syd Region Öst Residential
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Internallyusedestimatesare significantlylower than estimates for capital adequacy 38 Internally used estimates are significantly lower for PD, LGD and consequently EL. Exposure weighted LTV ratio is 44% 1.0% 0.8% 0.011% 1.7% 21% 0.4% PD LGD EL Internal estimates Capital adequacy estimates
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Great performance in credit losses due to high asset quality and solid processes 39 • Losses in 2024 amounted to SEK 3.7m (0.003%), compared with SEK -4.9m in reversals for 2023 (-0.01%). Year to date 2025 accounts for 9.5m (0.008 %). • Total credit losses since 1985 amounts to SEK 366m which makes an average per year of 0.026% (in comparison: EL deduction of SEK 340m for a year) • Continuous review of processes in identifying, monitoring and controlling credit risk in order to avoid potential credit loss • The insolvency department and the workout unit are proactively handling customer insolvency -0,10% 0,00% 0,10% 0,20% 0,30% 0,40% 0,50% 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025
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4040 Capital adequacy In short: • CET1 capital ratio strong compared to requirements • Landshypotek Bank has high leverage ratio
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Total capital and capital requirements- Consolidated situation 41 • The CET1 capital target is to have a CET1 ratio of at least 12.1%, including the internal capital buffer. The margin to the capital target as of Q3 2025 is 7.5% of REA. • The Total capital target is to have a Total capital ratio of at least 15.4 %, including the internal capital buffer.The margin to the capital target as of Q3 2025 is 7.0% of REA. • The stress tests performed by the bank for recovery planning and ICAAP confirms that the bank is very well capitalized and can sustain its business operations also under extremely adverse macro conditions • The additional capital in the form of Pillar 2 guidance (P2G) of 0.5 percent is included in the internal capital buffer 4,5% 4,5% 3,5%2,0% 2,0% 2,5% 2,5% 1,1% 1,9% 19,6% 22,4% CET1 requirements CET1 availability Total capital requirements Total capital availability Capital Pillar 2 regulation (P2R) Capital conservation buffer Contracyclical buffer Min T1 and T2 capital Minimun CET1 requirement 10,1% 14,4%
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Leverage ratio and capital requirements- Consolidated situation 42 The additional P2G of 0.5 % is included in the internal buffer 5,0% 3,0% 0,4% 5,4% 3,0% CET1 AT1 Pillar 1
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Capital development over the years 44 The EL deduction from CET1 is a consequence of using IRBF for corporate exposures. The EL calculation for corporate exposures is very conservative since it is calculated using IRBF regulatory prescribed LGD estimates as opposed to IRBA LGD estimates. The deduction regarding AT1 and T2 capital at the consolidated situation is explained by the fact that subordinated loans issued by Landshypotek Bank cannot be fully utilized in the calculation of capital at the consolidated situation. However, as the utilization rate is calculated based on the surplus of capital compared to capital requirement (sum of pillar 1, pillar 2 and buffers), if the capital requirement were to be identical with the capital base, the subordinated loans would be fully included also at the consolidated situation. Deductions, SEKm Total capital, SEKm - Consolidated situation 4 434 4 754 4 936 4 696 4 836 5 123 5 400 5 690 6 243 6 363 6 624 700 567 572 440 471 311 293 608 512 500 1 701 1 200 935 939 772 501 543 509 508 428 4 934 6 455 6 836 6 198 6 346 6 335 6 372 6 544 7 045 7 479 7 564 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Q3 CET1 AT1 T2 8549 7564 250 560 175 Equity, AT1 and T2 instr. EL deduction AT1 and T2 deduction Other deductions Regulatory Capital
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High leverage ratio despite large deductions 46 Leverage ratio, per Q3 2025 Deductions, per Q3 2025 *Consolidated situation * 7 949 7 136 250 388 175 Equity and T1 instr. EL deduction AT1 deduction Other deductions Regulatory Tier 1 capital 0% 1% 2% 3% 4% 5% 6% 7% Swed- bank Lands- hypotek SEB SBAB LF Bank SHB
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4747 Funding, liquidity and cover pool In short: • Landshypotek Bank’s low risk business model is reflected in the balance sheet structure • Landshypotek Bank is subject to full resolution planning and MREL requirement • Landshypotek Bank takes a conservative funding position • The cover pool has very low LTV, long seasoning and is geographically well diversified
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Core balance sheet structure SEKbn - Landshypotek Bank’s low risk business model also reflected in the balance structure 48 • 9 % of liabilities is loss absorbing 117 13 12 27 91 Liabilities Liqudity portfolio Mortgage loans Covered bonds Deposits Equity & MREL Assets
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BRRD implementation - Landshypotek Bank is critical to financial system 49 • Swedish National Debt Office (the Resolution Authority) has decided that Landshypotek Bank is subject to full resolution planning and MREL requirement • SNDO preferred resolution strategy: (i) bail in combined with restructuring or (ii) bail in combined with bridge institution • MREL requirement 2025 • Total risk weighted 22.30% of REA • Total leverage 6.00% of TEA • Subordinated risk weighted 19.80% of REA • Subordinated leverage 6.00% of TEA • The plan is to have one outstanding issue per calendar year to have a good balance between granularity and liquidity • MREL fulfilment Q3 • Total risk weighted 27.53% of REA • Total leverage 8,26% of TEA • Subordinated risk weighted 24,57% of REA • Subordinated leverage 7.50% of TEA
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Funding plan 2025 50 Funding need SEKm Maturing covered Maturing and callable senior 15 981 700 Callable senior Non-preferred Callable subordinated 1,158 0 Increased liquidity portfolio Credit growth 502 7 230 Total 25 571 Funding plan SEKm Covered Senior 22 295 0 Senior Non-preferred Subordinated 300 0 Deposits Equity -313 289 Total 25 571 Executed SEKm 15 250 1 000 400 0 -446 300 16 504
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Conservative liquidity and funding position 51 • LCR 338% • NSFR 117% • Stressed liquidity coverage is 258 days, internal limit 180 days • Liquid assets SEK 13.0 bn. Duration 2.4 years • High quality assets AAA and AA+ rated Swedish Covered Bonds and Swedish Municipalities • Eligible as collateral for transactions with the Swedish Central Bank
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Level of deposits, currently SEK 26.6 bn 52 Focus on stickiness Deposit portfolio 18% 63 % 6% 13% Member Non member Included in deposit insurance Excluded from deposit insurance • Target members and smaller deposits included in deposit insurance • Increased competition in the deposit space has decreased the inflow • During the period the economic rational for deposits has decreased therefore Landshypoteks efforts has been lowered • The aim is to improve loans/deposit ratio as long as it makes economic sense
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Cover pool 53 Rating S&P Lending volume Geographic distribution AAA SEK 111,002m Sweden 100% Average loan size Number of loans Number of properties SEK 1,017,391 109,105 42,404 Substitute Assets Swedish Covered Bonds, AAA SEK 893m SEK 800m Municipalities SEK 100m Cover bonds SEK -89,434m Over Collateralisation SEK 22,346m Over Collateralisation 24.99% Interest Floating Fixed 72% 28% Amortisation Amortising Non amortising 98% 2% Mortgage type Agriculture properties Residential properties 72% 28% Average LTV Volume weighted 44.41%
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Cover pool and geographical distribution 54 Years 5.81 13.96 Seasoning Loan level Customer level Month 70 168 Property level 18.28 219 Volume SEK 1,326m SEK 2,216m Concentration (borrowers) Top 5 Top 10 % of volume 1.19% 2.00% Top 20 SEK 3,713m 3.35% County % of total volume Stockholm 11% Uppsala 4% Södermanland 5% Östergötland 9% Jönköping 4% Kronoberg 3% Kalmar 4% Gotland 3% Blekinge 1% Skåne 15% Halland 4% Västra Götaland 14% Värmland 4% Örebro 6% Västmanland 2% Dalarna 2% Gävleborg 2% Västernorrland 2% Jämtland 2% Västerbotten 2% Norrbotten 1%
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Cover pool 55 Loan amount by LTV bucket Stress test LTV -15% price drop Total change in cover pool -0.83% 27,8% 23,0% 18,5% 13,9% 9,3% 5,1% 2,1% 0,1% 0,0% 0% 5% 10% 15% 20% 25% 30% 0-10 10-20 20-30 30-40 40-50 50-60 60-70 70-75 75-80 LTV loan level 0 5 000 10 000 15 000 20 000 25 000 30 000 0-10 10-20 20-30 30-40 40-50 50-60 60-70 70-75 75-80 MSEK LTV loan level LTV loan level with a 15% price drop
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5656 Executive summary: • Low-risk market leading agriculture and forestry bank with sustainability integrated in the strategy with a market share of 24% • Sustainable governance where profit is reinvested or returned to the agriculture and forestry sectors • The bank for the conscious choice of mortgage loans and savings • A lending portfolio with a positive climate footprint • Low-risk business model - 99.8% of the loan portfolio is first-lien mortgages - Average LTV is 44% - 99% of the customers have a personal liability - Total losses since 1985 SEK 366m, average per year 0.026%
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Just a reminder! Long-term trend for population and farm land 57 • The need for food the coming 20-25 years is double the amount that has been produced during the last 10,000 years • The demand of agricultural commodities for biofuels use will increase • Production improvements have compensated for growing population • Restrictions on pesticides and plant breeding as well as shortage of water put pressure on further efficiency improvements • There are also higher demands on global production to be more sustainable from an economic, social, environmental and climate perspective • “Buy land, they’re not making it anymore” (Mark Twain) Source: UN 0 2 4 6 8 10 1950 1975 2000 2020 2050 Billion People on the planet Available land for farming (acres)
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5858 Financial calendar 2025: Q4-2025 report 30th of January 2025 Anna Casselblad, Chief Financial Officer anna.casselblad@landshypotek.se +46 70 751 05 76 Åke Källström, Head of Treasury Execution ake.kallstrom@landshypotek.se +46 8 459 04 87 Martin Kihlberg, General Counsel & Chief Sustainability Officer martin.kihlberg@landshypotek.se +46 8 459 04 86 Visiting: Regeringsgatan 48, 111 47 Stockholm Postal: P.O Box 14092, SE 104 41 Stockholm Contact and financial calendar
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5959 DISCLAIMER Acceptance of limitations: The information in this presentation (the “Material”) is furnished by Landshypotek Bank AB (the “Company”) solely for the recipient’s information. The intended recipients are determined solely by the Company. By attending a meeting where the Material is presented, or by reading the Material, you agr ee to be bound by the limitations and notifications described below. The Material is strictly confidential and may not be disclosed or distributed to any other person unless expressly agreed by the Company. Use of the Material: This Material does neither constitute an offer to sell nor a solicitation of an offer to buy any securities, and it does not constitute any form of commitment or recommendation in relation thereto. No representation or warranty (expressed or implied) is made as to, and no reliance should be placed on, the fairnes s, accuracy or completeness of the information in the Material. No financial advice: The Company is not giving financial advice to any potential investor, and this Material shall not be deemed to be financial a dvice from the Company to any potential investor. Investors should not subscribe for or purchase any financial instruments or securities only on the basis of the information provided he rein. Investors are encouraged to request from the Company and other sources such additional information as they require to enable them to make informed investment decisions, to seek advice from their own le gal, tax and financial advisors and to exercise an independent analysis and judgment of the merits of the Company. No liability: Although the Company has endeavored to give a correct and complete picture of the Company, the Company cannot be held liable for any loss or damage of any kind arising from the use of the Material. Information sources: The information in this Material is presented by the Company or constitutes publicly available material and has been produced by the Company exclusively for information purposes. This Material may contain forward-looking statements that reflect the Company’s current views with respect to certain future events a nd potential financial performance. Such statements are only forecasts and no guarantee can be given that such expectations are correct. The information relating to the Company does not constitute a comp lete overview of the Company and must be supplemented by the reader wishing such completeness. Actuality: The Material is dated 2025-10-27. The Company cannot guarantee that there has been no change in the affairs of the Company since such date, nor do they intend to, and assume no obligation to, update or correct any information included in the Material. The Material may however be changed, supplemented or corrected wi thout notification. Prospectus: The Material does not constitute a prospectus for purposes of the Prospectus Regulation (EU) 2017/1129. Accordingly, the Mate rial has not been approved by any supervisory authority. Please see the Company's registered prospectuses at https://www.landshypotek.se/en/about-landshypotek/investor-relations/investment-programmes/funding-programmes/ Distribution: The information in this Material is not for release, publication or distribution, directly or indirectly, in or into the Unit ed States or any other jurisdiction in which such distribution would be unlawful or would require registration or other measures. No securities referred to in this Material have been or will be registered by t he Company under the U.S. Securities Act of 1933, as amended (the “Securities Act”) or the securities laws of any state of the United States. This Material may not be distributed into or in the United States or t o any “US person” (as defined in Rule 902 of Regulation S under the Securities Act). Applicable law: The Material is subject to Swedish law, and any dispute arising in respect of the Material is subject to the exclusive jurisd iction of Swedish courts (with District court of Stockholm as court of first instance).
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