New mortgage offering

to boost growth

ICA Gruppen Capital Markets Day, December 11, 2019

Marie HallingCEO ICA Bank

A complete offering

of financial services

making everyday a

little easier

ICA Bank = an everyday bank…

Customers

Delivering a

superior digital

experience

Launching a

new mortgage

offering

840k

2

SQI* 2019 No 2

SQI=Swedish Quality Index

…making every day banking a little easier

We offer a wide array of financial services

within lending, saving, payments and

insurance for the ICA customer.

ICA Bank Corporate is a tailor

made corporate bank for

ICA retailers and ICA stores.

3

ICA Bank also

strengthens customer

loyalty to the ICA stores

and reduces the stores’

and ICA Gruppen’s

transaction costs

ICA Bank - together with

Ålandsbanken, Ikano Bank,

Söderberg & Partners and

Borgo - has signed an

agreement to establish a joint

mortgage platform on the

Swedish market.

ICA Bank will have the most

digital mortgage application

process in the market –

enhancing the customer

experience

4

Introducing a new mortgage offering on the Swedish market…

Through the agreement,

ICA Bank will:

→ Increase market share in

a SEK ~3,300 billion

market

→ Strengthen the overall

customer offering, where

a competitive mortgage

offering is an important

component

→ Further build customer

loyalty with a broader

offering

..that will increase long term loyalty to the bank and ICA

5

Increases share of wallet

Strengthens our wanted position on the

market to deliver on “everyday finance”

Incentives customers to broaden the ICA

relationship – increased bonus and better

mortgage pricing based on spend and loyalty

to ICA (new loyalty program)

..and will introduce the most digital mortgage application

process on the market 2020…

6

“Piece of cake”

→ More user-friendly

application process improves

customer experience

→ Simplified application using

pre-populated data

→ Minimal level of physical

documents

→ Dynamic and transparent

pricing presented to the

customer

TARGET

→ Conduct transfer from

SBAB to Ålandsbanken

→ Continued volume

growth

ENABLERS

→ Implementation of

simplified pricing model

→ Proactive targeting of

customer base

→ Strengthened value

offering

Major improvement in SQI* 2019 – solid customer trust

76,9

73,8

73,3

72,4

71,5

71,3

70,1

67,4

67,3

65,8

59,7

59,6

Bank 1

ICA Bank 2019

Bank 2

Bank 3

Bank 4

Bank 5

ICA Bank 2018

Bank 6

Bank 7

Bank 8

Bank 9

Bank 11

7

SQI index retail banks

→ Largest increase in customer satisfaction

→ Market leading in reliability, customer

care and ease of use

→ Perceived as high level of service and

accessible

→ Products and services for the customers’

needs while perceived as best value for

money

→ Largest share of customers that prefer

digital banking

*SQI=Swedish Quality Index

Consumer loans –

strong growth with good profitability

8

→ SQI no. 1 for consumer loans

→ Digital and data-driven customer

and credit process

→ Responsible and good credit-

management – within lower-risk

segments

→ Larger growth than market with

positive growth in margin

Consumer loans portfolioBnSEK

6,4 6,7

8,4

9,6

11,2

2015 2016 2017 2018 2019Sept

SQI=Swedish Quality Index

ICA Insurance – continued good growth

9

Premium volumes ICA InsuranceMSEK

ICA InsuranceTotal number of customers

174 000

24

249

345

489

555

2015 2016 2017 2018 2019June

10

→ Customer friendly digital solutions

to make every day a little easier

→ Further increased customer satisfaction

during 2019 – a good foundation to

stand on

→ Mortgage will increase loyalty and long

term profitability

→ Continued volume growth within both

insurance and banking

Good potential for further growth

and profitability

Forward-looking statements

This presentation contains forward-looking statements. Such statements are subject to risks

and uncertainties as various factors, many of which are beyond the control of ICA Gruppen AB

(publ.), may cause actual developments and results to differ materially from the expectations

expressed in this presentation.

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Disclaimer