KBC Bank & Insurance Group General Investor Presentation June 2002

2 KBC Bank & Insurance Group Profile Strategy Future Profit Drivers Investor Considerations

3 KBC Bank & Insurance Group Key features Ranking Belgium3rd fin. group  Bank3rd  Insurance (overall)3rd Europe : Bank (Tier-1 capital)27 th : Group (market cap)30 th Staff Belgium Abroad Customers in first home market (Belgium) +/- 3.5 million in second home market (Central Europe) +/- 5.7 million Domestic network bank branches (KBC +CBC) independent insurance agencies: 684 Worldwide presence 30 countries

4 Almanij NV KBC Bank & Insurance Holding NV KBC Bank KBC Insurance 67.9% 100% 32% Free Float KBC Asset Man 45% 55% KBC Bank & Insurance Group Group structure Cera HoldingAlmancora Flemish FamiliesMRBB 9.3% 16.6% 15.8% 28.3% Free Float 26%

5 KBC Bank & Insurance Group Overall business characteristics Good track record in profitability Solid solvency ratio’s Diversified but balanced business income Good asset quality Strong market shares Success in bancassurance Successful expansion in Central Europe

6 KBC Bank & Insurance Group Group profit and profitability +12.8% +21.6% 16.1% 20.5% 23.3% In millions of EUR +20.2% -12.3% 17.3% -11.1% 15.9%

7 KBC Bank & Insurance Group Sustained solid solvency ratios 2000 Bank Tier-1 ratio CAD ratio Insurance (*) Solvency ratio 7.2% 11.5% 311% 9.5% 16.0% 307% (*) excluding unrealized capital gains % 12.8% 298% % 14.7% 318% 1Q 02 9% 14.9% 323%

8 KBC Bank & Insurance Group Strong homebase for expansion abroad Profit contribution by group entity Insurance 35% Holding - 3% Normalized profit contribution by region Banking 70% USA 2.5% Belgium 66% West. Eur 17% Cent. Eur 12% Asia 2.5%

9 KBC Bank & Insurance Group Diversified but balanced business income Gross operat. income banking m EUR (FY 2001) Net interest income 53% Commission income 21% Other income banking 8% Gross premium earned insurance m EUR (FY 2001) Trad. life 18% Profit Fin. Transact. 18% Non-life 34% Unit-linked 48%

10 Good asset quality in banking 2000 Loan loss ratio Non performing ratio 0.38% 2.1% 0.40% 2.1% % 2.8% 1Q % 2.9%

11 KBC Bank & Insurance Group Profile Strategy Future Profit Drivers Investor Considerations

12 KBC’s strategic intent … creating sustainable value for shareholders A bancassureur and financial service provider in Europe … in a standalone position Activity portfolio Ambitious financial targets Corporate scale Capital generation

13 A focused but diversified activity portfolio Focus on 4 activities - Retail bancassurance - Corporate services - Asset Management - Market activities Focus on Europe - Belgium : home market - Central Europe : second home market - Western Europe : smaller countries/regions Focus on local clients - Retail - SME - Selected corporates Profit contribution (avg ) 12% Central Europe 36% Retail 16% Corporate Services 9% Asset Management 12% Market Activities 15% Group

14 Strategic objectives per activity Retail bancassurance Increase cross-selling in Belgium Creation of a second home market in Central Europe and implement bancassurance concept Asset Management Increase AUM Expand distribution network Market activities Create European corporate finance / brokerage platform for SME’s Corporate Services Strategic reduction of risk weighted assets Scale down exposure on large multinationals Refocus on SME’s and a selection of larger corporates

15 Target Realized Q ROE at group level EPS growth Cost/income ratio bank Combined ratio insurer min. Tier-1 ratio bank min. CAD ratio bank min. Solvency ratio insurer 20% 15% (1) 55% (2) 103% (2) 7% 11% 200% 15.9% -11.8% 65.4% 102% 9% 14.9% 323% Overall financial targets (1) average over the period (2) by 2004

16 Cost of capital Focus on shareholder value Retailbancassurance Corporate services Asset management Market activities Central Europe TOTAL at operational level TOTAL at group level 8.5% 10.5% 8% 11.5% 13% 10 % - ROE target ROE Targets per activity 20.0% 12.5% 13.0% 21.0% 15.0% 17% 20% ROE target per activity based on 2 x cost of capital Reallocation of capital from activities with low or volatile ROE to activities with high or stable ROE (*) (*) Interim target

17 Considerations on the level of corporate scale Partnership, outsourcing Focus on retailing (less susceptible for scale effects) Focus on SME Risk avoidance, rational capital management Strongly tied up with local market / culture Low 'complexity' costs, cost efficient group structure Non-evident scale effects on financial performance Opportunities for a mid-scale player in Europe Market cap.Tier-1Cost/Income EUR 5 – 10 bn 10 – 15 bn 15 – 20 bn 20 – 30 bn 30 – 50 bn > 50 bn 6.7% 7.2% 6.5% 8.1% 7.7% 7.4% 68% 74% 65% 73% 74% 71% (Source: Bloomberg, 65 – European banks / insurers)

18 External growth capacity Group Capital Planning ( bn. EUR) 1Q022004Hypothesis TargetRatioExcess Dividend payout 40% 2002: 34% stake NLB Potential increase participation Warta Bank Tier 17.0%9.0%1.9 bn EUR Insurance Solv.200%323%0.5 bn EUR Excess capital (strictu senso)2.4 bn EUR3.5 bn EUR Unrealized capital gains (shares) Capital increase (dilution of Almanij to 51%) Additional leveraging holding potential excess capital of 12 bn. EUR (broad sense)

19 KBC Bank & Insurance Group Profile Strategy Future Profit Drivers Investor Considerations

20 KBC Bank & Insurance Group Key future profit drivers Full realization of merger in Belgium Upside potential of bancassurance in Belgium Development of second home market in Central Europe Continue growth in Asset Management

21 Important merger effects on cost efficiency KBC Bank N.V. (Belgium)TargetStartEnd Realised to date Closure of bank branches % Account migration (ICT-platform)All % Headcount reduction % Expected cost savings (m EUR)

22 Retail Bancassurance in Belgium Market shares  Consumer credit : 26.1%  Home loans :25.6%  Savings deposits :20.0%  Savings certificates :17.8%  Investment funds : 29.3%  Unit-linked :20.2%  Traditional life :5.5%  Non-life :8.7% Upside potential in insurance  achieve level of banking market shares  additional focus on SME’s for sale of insurance products

23 Retail bancassurance Belgium Retail customers Stable banking customers Bancassurance customers Market share banking 20 à 25% insurance ca. 11% Stable bancassurance customers 40% 15% 11% 36% 50% 100% Min. 3 banking products (*) Min. 1 banking and 1 insurance product (*) Min. 3 banking and 3 insurance products (*) I mmediate targets (*) out of a range of 6 banking products (current account, savings account, mortgage loan, credit card, …) and 6 insurance products (car, home, health, life, …)

24 Strategy for Central Europe Strategy  Create a second homemarket in future EU member countries Focus on  Countries with highest transition indices  Banks with a significant market share and acceptable asset quality  Acquisitions of non-life insurance companies but mainly greenfield operations for life insurance Introduction of KBC’s bancassurance concept  Acquired banks are to be universal banks with an important retail activity  Life insurance to be sold through banknetwork  Non-life insurance mainly to be sold through agents

25 Acquisitions in Central Europe to date KBC one of the leading financial groups Poland Kredyt Bank Agropolisa Warta Czech & Slovak Rep. CSOB CSOB Pojist’ovna IPB Pojist’ovna Patria Hungary K&H Bank after merger K&H Life Argosz 66.5% 49.9% 40.0% 83.8% 100.0% 65.0% 100.0% 59.0% 50.0% 98.8% Ownership to date Investment in millions of EUR Total investment : 2.8 bn EUR Target contribution to group profit for 2002 : 15% 5.5 % 1 % 13 % non-life 18.5 % 0.6% non-life 11% life/ 5% non-life na 13 % 2.1 % 3.5 % Market Share Slovenia NLB34% %

26 Growth potential Central Europe Belgium 1st home market Central Europe 2nd home market - Hungary - Czech Rep. - Slovakia - Poland - Slovenia Gross operating income: expected annual growth to 2004 of ca. 20% Planning assumptions: Increasing penetration banking/insurance (currently 40-45% of EU-average) Faster GDP-growth than EU (2002e: 2 times real EU-average) Increase in market share via bancassurance concept

27 Medium-term targets Be one of the major players in the region Market shares: Stand-alone ratio’s: Group level ratio’s: Banking10% Insurance10% (Pol., Czech.) 5% (Hung.) ROE20% C/I-ratio (banks)55% CAD-ratio (banks)11-13% Combined ratio (insurance companies)98% ROEcirca 20% Share in Group profitcirca 20%

28 Asset Management Further growth in assets under management 36.8 (+18.3%) 51.9 (+41%) In bn. EUR 69.6 (+34.1%) Private Banking Institutional funds Mutual funds % of total AUM Q (+2.2%) 7% 34% 59% 7% 35% 58% 72.9 (+2.5%) 7% 34% 59%

29 KBC Bank & Insurance Group Profile Strategy Future Profit Drivers Investor Considerations

30 KBC Bank & Insurance Group Investor considerations Strenghts Strong domestic market shares Diversified income Unique bancassurance concept Sound solvency ratios Good profitability track record Opportunities Merger effects to materialize Strategy in Central Europe and future return Investment of excess capital Low valuation Weaknesses Still high cost/income ratio Low profitability of i.a. corporate services Volatility of niche market earnings Threats Low free float High cost of capital Consolidation in Europe

Net profit P/E Gross dividend Pay-out ratio Net asset value Price / NAV % % % KBC Bank & Insurance Group Key figures per share %

32 KBC Bank & Insurance Holding NV Stock market info Market cap :12.5 bn. EUR Number of outstanding shares : Free float : 32 % Listed on Euronext Brussels Included in following indices : Euronext 100, Bel-20,Eurostoxx Financials, MSCI World Index, FTSE300 Financials Sell-side analyst coverage : +/- 25 analysts

33 KBC Bank & Insurance Group Shareholder composition Total number of shares : Belg. instit. Invest. 8 % Almanij 68 % Unidentified 9 % Other group cies. 3 % Personnel 2 % Belgian retail invest. 5 % UK 3 % USA 2 %

KBC Bank & Insurance Group June 2002