The Mortgage Society of Finland Investor Presentation, May 2014

Secure Way for Better Living”

The Mortgage Society of Finland Hypo Group Overview The Mortgage Society of Finland 1860 Retail banking, no corporate lending Supervised by the FIN-FSA Specialised in mortgage financing, residential property always as collateral Mutual company, governed by member customers Returns are kept within Hypo Strong loan book (NPLs 0,16%, 1Q2014) Well-known and frequent borrower in Finland Total assets EUR 1,23 billion (1Q2014) 100 % 59,4 % Deposit taking Bank 2002 Office Building 1912 Pension Fund A + M Departments Hypo Credit Update May 2014

Hypo is the leading debater on the Finnish mortgage market Hypo Credit Update May 2014

Financial Results

Hypo Group balance sheet 1 227 m€ Other ECB Deposits Located mostly in Great Helsinki area No risk concentrations in one specific housing company One minor capital loss recognised within past 10 years time (10 t€) Equity Hypo Credit Update May 2014

Hypo’s capitalisation Basel II standard approach EUR 60 million of excess capital over the regulatory minimum Common Equity Tier 1 (CET1) at 14,7 % Capital ratios around same levels with Finnish peers, with internal methods Standard Approach RWA Lending with Residential collateral, 35% risk weight Dwellings and land owned, 100% risk weight The amount of own funds decreased during 1Q2014 due to change in accounting treatment of Tier 2 capital instruments which were exluded from the total capital. This had a negative effect of EUR 20 million on Hypo’s own funds. Surplus of own funds still at EUR 39 million Hypo Credit Update May 2014

Financial Performance - Increasing profitability The Group operating profit for financial year 2013 reached 6 m€; and 1.5 m€ at the end of 1Q2014 The Group’s comprehensive income for the financial year 2013 was EUR 7.7 million including the operating profit and changes in equity due to changes in fair value reserves. In 1Q2014 Net Intrest Income exceeded that of 1Q2013 by 21% due to the positive development both in the loan portfolio and interest margins. Return on equity was 5,8% at ye2013. Cost-to-income ratio stood at 61% at 1Q2014 (57,4 % ye2013) due to the increase in personnel. Hypo Credit Update May 2014

Financial Results 1Q2014 - Income Statement CONSOLIDATED INCOME STATEMENT, IFRS (1000 €) 1-3/2014 1-3/2013 change-% Interest income 4 955,3 3 958,0 25,2 % Interest expenses -3 425,2 -3 099,0 10,5 % NET INTEREST INCOME 1 530,1 859,1 78,1 % Income from equity investments 0,0 0,0 % Fee and commission income 712,5 586,0 21,6 % Net income from financial assets available for sale 501,3 -0,1 Net income from investment properties 1 191,3 640,0 86,1 % Other operating income -5,2 5,4 -196,8 % Operating profit 3 930,1 2 090,3 88,0 % Operating expenses -2 400,7 -1 605,0 49,6 % Impairment losses on loans and other commitments 5,7 12,2 -52,8 % OPERATING PROFIT 1 535,1 497,5 208,6 % Income taxes -269,4 -88,6 204,0 % PROFIT FROM OPERATIONS AFTER TAXES 1 265,7 408,9 209,5 % PROFIT FOR THE PERIOD 1 888,3 548,1 244,5 % CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME STATEMENT Hypo Credit Update May 2014

Hypo Loan Book Analysis

Loan Book Overview Mortgage loans secured by residential property, required by the law on mortgage societies Two main customer groups Private individuals and households: home mortgage, buy-to-let Housing companies: renovation loans, construction phase loans Hypo Credit Update May 2014

Hypo Loan Book Growing Steadily Hypo’s loan book reached EUR 1,03 billion at the end of 1Q2014. The amount of non-performing loans increased modestly to EUR 1.6 million, equaling 0,16 % of the total loans The quality of the loan book well above the Finnish household average NPLs (0,62%) Non performing loans source: Finnish FSA, original data in EUR over total of Finnish household loans. Hypo Credit Update May 2014

Loan book quality excellent Hypo’s loan portfolio is entirely secured by residential property. The average LTV (loan-to-value) at the end of 1Q2014 was 49,3% (49.98%) Loan loss recoveries exceeded losses in 2013 as well as in 1Q2014 Financed properties are mainly located in the population dense Helsinki Metropolitan Area. Hypo Credit Update May 2014

Lending – collateral characteristics Non-Allocated Aggregate Collateral Value > 3 b€ (in control) Allocated Aggregate Collateral Value 2 b€ Loan Book 1 b€ Loan Book vs. Apartment & Residential Property Collateral Hypo Credit Update May 2014

Funding and Liquidity 11.1.2019

”Put us in the middle” Hypo Credit Update May 2014

Well diversified funding base Senior Unsecured under our Own Legal Framework Borrower is the Group Parent Effectively, since lending is against residential collateral, “cover pool” exists No creditor ranks senior to the Holder of Senior Unsecured Creditor Solid Strategy, Solid Financial Performance IFRS, transparent and timely financial Information Track record in bond issuances since year 1862 First issuance to international market 1864 in Prussian Thaler, deposited as collateral to the Bank of Finland for launching Finnish Markka No intension to issue covered bonds ”In the Middle of” Covered Bonds and Senior Unsecured Senior Unsecured but No creditors rank senior to holder of senior unsecured note Effectively, since lending is always against residential collateral, cover pool exists Loyal Finnish Investor Base Credit Update held semi-annually Frequent issuer in the Finnish market In floating rate EUR or hedged to EUR Hypo Credit Update May 2014

Hypo Funding Strategy Main funding through EUR denominated senior unsecured issues All bonds listed on the NASDAQ OMX Helsinki Oy trading list Issued under domestic EMTN programme In future aiming at larger issue sizes, min. EUR 100 million Well received in the markets, guarantees better liquidity Latest issue on April 23, 2014 (not included in the above table/figures) Senior unsecured, EUR 75 million, FRN 6M + 1,00 Maturity 30 October 2017 (3.5 years) Other Instruments Commercial Deposits Commited credit lines from other financial institutions Deposit funding through the AsuntoHypoPankki subsidiary around 35% of total funding Hypo’s issues in 2013, currently aiming at larger issue sizes due to positive market response ISIN Issue Date Maturity Date Type Nominal (m€) Coupon FI4000060322 14.2.2013 14.2.2017 Senior Unsecured 40 FRN 6M +1,10 FI4000062237 25.3.2013 25.3.2015 50 FRN 6M +0,60 FI4000064191 23.5.2013 23.5.2016 (SEK) 250 FRN 3M (STIBOR) +1,38 FI4000064183 FRN 6M +0,95 FI4000071683 29.10.2013 29.10.2015 FRN 6M +0,67 FI4000076443 9.12.2013 9.12.2016 100 FI4000092598 23.4.2014 30.10.2017 75 FRN 6M +1,00 Hypo Credit Update May 2014

Solid Liquidity position Liquidity portfolio at EUR 161 million at 31.3.2014 Conservative investment policy Over 50% invested in counterparties with rating AA-/Aa3 or better Only EUR denominated exposure Hypo’s domestic MTN and the CD programme support the liquidity management Basel III compliant Hypo Credit Update May 2014

Outlook for 2014 The general economic sentiment is considered to modestly improve but the economic growth is nevertheless expected to remain subdued in 2014. The economic cycle and interest rates are not expected to bring any substantial changes to the prevailing situation in the Finnish housing market. Hypo remains very confident that as a specialized mortgage institution, it has good possibilities to continue growing its business in a profitable manner while managing risks also in 2014. The management expects the Group operating profit for 2014 to remain at the same level or improve compared to 2013 (Interim report 30.4.2014) Core Strategy unchange Reserves and Buffers for “a Rainy Day” Pension Fund A-Department has excess funds of around EUR 7 million Forms buffer to the Capital Ratio Fair values of owned dwellings and plots EUR 14 million above book values Excess of Own Funds EUR 40 million (Standard Approach) Hypo Credit Update April 2014

Director, Funding and Treasury Petteri Bollmann Contact information CEO Ari Pauna Tel. +358 50 353 4690 ari.pauna@hypo.fi CFO Aija Kontinen Tel. +358 50 411 7960 aija.kontinen@hypo.fi CRO Mikko Huopio Tel. +358 50 400 2990 mikko.huopio@hypo.fi Director, Funding and Treasury Petteri Bollmann Tel. +358 50 5504355 petteri.bollmann@hypo.fi DISCLAIMER To the extent the Information relating to The Mortgage Society of Finland (“Hypo”) or its group members (“Hypo Group”) is prepared by Hypo or another member of Hypo Group, the following limitations apply: All official financial information of Hypo Group, including without limitation profit and loss statement, balance sheet, and annexes is available at web address www.hypo.fi/talousinformaatio. This document is not official financial information Hypo Group. Opinions and statements of or concerning Hypo Group are made in good faith at the time of giving such statement and may be subject to change without notice. Investing in a financial instrument issued by Hypo may contain risks, such as (without limitation) operational and financial condition of Hypo Group and general market conditions. Changes in them may have an adverse effect on the price or value of the instrument. At the time of this document (April 2013), Hypo does not issue to the public financial instruments which have a guarantee or collateral. Therefore, the investor is exposed to the risk of loosing all or part of the investment in a financial instrument issued by Hypo. Opinions or statements regarding future performance are based on assumptions that may not be realised. Past performance of Hypo Group is not a sign or a promise of future performance.