Delivering growth and value Business Unit Brazil of C&CC June 14, 2004 Fabio Barbosa SEVP - CEO of BU Brazil

0 2 Current Brazilian Business Environment Overview of ABN AMRO Brazil Overview C&CC Brazil Financial Performance Sustainability Outlook 2004 / 2005 Appendices Table of Contents

0 3 Dec 05 forecast  BRL/USD (eop) 3.25 (maintained)  IPCA 12M 4.5% (revised from 5.1%) Commitment to orthodox monetary policy has enabled stability to return The inflationary pressures due to the exchange rate overshooting receded significantly and are expected to stabilize along 2004 IPCA% forecast BRL / USD Sources: Brazilian Central Bank, IBGE, ABN AMRO Dec 04 forecast  BRL/USD (eop) 3.05 (maintained)  IPCA 12M 6.8% (revised from 6.0%)

0 4 The current account is now well under control Sources: Brazilian Central Bank The current account accumulated a USD5.8 billion surplus in 12 months ended in April (1.1% GDP). From 1999 to April 2004, the current account adjustment was equivalent to USD31.1 billion (5.8% GDP) driven mainly by exports. USD billion

0 5 The surplus of the current account allows to repay the IMF debt Sources: Brazilian Central Bank, ABN AMRO In USD billion

0 6 Source: Brazilian Central Bank Market volatility does not reflect Brazil’s ability to withstand shocks FX Denominated Debt / Total Debt % Brazil is in much better shape to deal with adverse external factors, compared to mid-90s and early 00s … and currently..  Capital Markets Reform  Floating FX regime  Social Security Reform  Fiscal Responsibility Law  New Payments System

0 7 The government controls a comfortable majority in Parliament Source: Santa Fé, ABN AMRO

0 8 Public support for the government remains high Source: CNT / Sensus, ABN AMRO Government’s Approval Rating (%) President Lula’s Approval Rating (%) Still high approval rating Approval ratings have fallen, but are still at respectable levels

0 9  Continuous effort to complete reforms  Revision of mortgage legal framework  New regulation to reduce number of court actions against the financial system regarding principal and interest  New Bankruptcy Law  Judiciary reform  Public and Private Partnership regulation  Power sector framework Restored finance and strong government will facilitate reforms

0 10 As a result, steady GDP growth seems to be finally achievable GDP started to recover in Q303 albeit at a slower pace than expected. Recovery has been led by the manufacturing sector, responding to lower interest rates and robust external demand Sources: IBGE

0 11 Source: Brazilian Central Bank, IBGE, ABN AMRO forecast IPCA% Selic% Central Bank will likely continue to gradually ease monetary policy in 2004, reducing interest rates with caution and assessing recovery of economic activity Dec 05 forecast  Selic (eop) 12% pa (maintained)  IPCA 12M 4.5% (revised from 5.1%) Expected decline in inflation will allow further interest rate cuts Dec 04 forecast  Selic (eop) 14.5% pa (revised from 13.5%)  IPCA 12M 6.8% (revised from 6.0%)

0 12 Total Credit to Private Sector / GDP 1 Sources: World Bank, European Union Web site, IBGE Declining interest rates will enable significant volume growth in the still underdeveloped Brazilian banking market; The penetration of total credit shows a large long term growth potential Economic stability and low interest rates will unleash the growth potential Q Credit to the Private Sector * * does not include external financing to the private sector +13% +8% +1.5% Period EOP Balance in BRL billion Growth nominal Source: Brazilian Central Bank, ABN AMRO

0 13 Current Brazilian Business Environment Overview of ABN AMRO Brazil Overview C&CC Brazil Financial Performance Sustainability Outlook 2004 / 2005 Appendices Table of Contents

0 14 Training Competitive market conditions Engagement in decision- making process Sustainability Model Client knowledge Segmentation Since the acquisition of Banco Real we have updated our IT infrastructure to competitive standards Spreading ABN AMRO Corporate Values  Respect  Professionalism  Integrity  Teamwork ABN AMRO Brazil is a client led institution

0 15 Leveraging the local, regional and international presence to serve clients  Retail Banking  Consumer Finance  Commercial Banking  Insurance  Wholesale Banking  Asset Management Largest foreign institution by branches, loans and deposits Largest car financier in Brazil Maintains relationship with companies 7th largest insurer; 5th largest pension fund by reserves Relationship with +400 largest corporation in Brazil 4th largest privately owned; R$25.1 bio in AUM as of Mar 04 All data in the overview section are in Brazilian GAAP, in BRL and include all businesses of ABN AMRO Brazil - WCS and C&CC ABN AMRO has leading positions and strong market shares in the full range of financial services

0 16 Leveraging on business units to grow the franchise Payroll Commercial and Wholesale Retail Mini Branch Cross-selling of financial services, loan and investment products Current Accounts Acquisition - Individuals and Suppliers (SMEs) Payroll Loans Mini Branch Main banker Higher entry barrier Capturing of Value Chain opportunities through closer client knowledge and Supplier relations As of 1Q04 34% of individuals current accounts were from Payrolls 29% of individual current accounts were from Mini Branches

0 17 Total AssetsTotal Loans Net Income Average inflation in period: 8.3% pa The performance has been very good notwithstanding economic difficulties in BRL million All data in this slide are in Brazilian GAAP, in BRL and include all businesses of ABN AMRO Brazil - WCS and C&CC Cayman Effect (negative) 57 Cayman Effect (positive) 336 Annual CGR 25.6% Annual CGR 29.9%

0 18 Results are underpinned by good efficiency ratios On a standalone basis ABN AMRO showed a significantly lower efficiency ratio in 2003 (55.7% w/o Sudameris), the integration of Sudameris impacts this ratio temporarily. Efficiency Ratio All figures based on Brazilian GAAP as published by each institution ABNAMRO Fee Revenue/ Personnel Expenses

0 19 The franchise continues to deliver high ROE All figures based on Brazilian GAAP as published by each institution

0 20 Retail is a key growth engine of the franchise ABN AMRO is stronger in the southeast, the wealthiest and most populated region of Brazil. Our strategy is to focus on this region and on the major Brazilian cities. 1 Bradesco 2 Itau 3 ABN AMRO 4 Santander* 5 HSBC* 6 Unibanco 5,167 3,172 1,947 1,909 1,516 1,279 Ranking Dec 03 Branch Network (includes Mini Branches) * June 2003 figures Mini Branches: Branches in company premises C&CC Revenue Breakdown

0 21 BRL billion Consolidated Credit Portfolio (per business) The growth of the retail loan book has been robust and relatively cycle proof All data in the overview section are in Brazilian GAAP, in BRL and include all businesses of ABN AMRO Brazil - WCS and C&CC +97% +5% +61% Retail Consumer Finance Commercial and Wholesale w/ Sudameris Growth 1Q04/1Q03 +31% Stable -5% w/o Sudameris

0 22 This performance is due to above average acquisition of wealthy clients ABN AMRO Individual Clients Acquisition (per segment) Market Structure - Bankarized Individuals Average Account Revenue (per segment) Index: Average Revenue Classic Account = 100

0 23 Current Brazilian Business Environment Overview of ABN AMRO Brazil Overview C&CC Brazil Financial Performance Sustainability Outlook 2004 / 2005 Appendices Table of Contents

0 24 million clients Since the acquisition of Banco Real the client base increased by nearly 50% Besides the strong organic growth, Sudameris acquisition has accelerated the process

0 25 The desired critical mass has been reached with the Sudameris deal ABN AMRO is the 4th largest privately owned Brazilian bank by total loans and assets, and 3rd by deposits Top Privately Owned Banks Figures in Brazilian GAAP Loans in BRL billion Assets in BRL billion Deposits in BRL billion Dec. 03Dec. 033 Mar NA 1 Bradesco 2 Itau 3 Unibanco 4 ABN AMRO 5 Santander All figures based on Brazilian GAAP as published by each institution

0 26 Client Base Jan 2004 Financial assets are concentrated in a small percentage of the population. The wealthiest 2% hold almost half of net financial assets. 51% 22% 26% Individual Clients - Mix Jan 2004 Sudameris added more scale in wealthy retail clients and SMEs

0 27 Our retail growth strategy consists in providing differentiated services

0 28 Our retail model is relationship driven Focus: 1.Tailoring offers to needs and potential of all segments 2.Strengthening customer relationships 3.Managing ‘migration’ from segment to segment over client’s lifetime 4.Growth in Especial and PJ 5. Efficiency in Classico 6. “Aspiration” in Premium Especial Clássico Premium Lower R$0–700 Upper R$ Premium R$4001–8000 Van Gogh R$8001+ Selected Payroll to all Segments Sole Proprietors PJ (up to R$20m) PJ (up to R$100k) University Students Upper R$ Lower R$1201–2000 Near-term growth potential

0 29 Relationship’s costs and revenues have to be calibrated 1. Deposits + Investments - Credit Outstanding = Net Financial Assets; 2. Booz Allen & Hamilton Estimates. MfV Analysis; 3. Banco Real Segments - market segment definitions differ slightly

0 30 Our service offer calibrated to our clients needs Classico (Low Income) Especial (Mass Affluent) Premium/ Van Gogh (Affluent) PJ (SME) To “In-line with market” product and service offer Limited product range; debit card, instalment credit, and savings account (w/ limited additions for Upper/ University) Direct channels with Greeters; access to staffed Call Center for questions; and informative communication Proactive relationship managers with a higher manager to client ratio and trained managers, assistants and greeters Proactive and frequent offer in every direct channel, branches and direct mailing Delivery by ATM’s, Call Center, Internet, Banco24Horas, checkbook and branches Debit cards as a foundation of the offer “In-line with market” product and service offer Training, developing and hiring managers observing a new, higher manager to clients ratio Branch rebuilding or remodelling to deliver select number of “Van Gogh” and “Premium” Branches Specialised managers with clear responsibility and accountability; specialised Call Center support Explicit segmentation and focus on high potential clients (R$100k + turnover) Automated credit tools and proactive direct channel availability (lower PJ) “Better than market” product and service offer Broad range of products including multifunction cards, check books, etc. Full branch and channel access served by assistants and managers Core product vehicles include Realmaster, RealParcelado, and credit cards Full branch access served by managers Full channel access “Lower than market” product and service offer Core product vehicles include Realmaster and RealParcelado Full branch access served by managers Full channel access No explicit segmentation Package discounts by investment level Exclusive area in branch served by managers From These changes:1) Bring products and services in-line with customer expectations and market 2) Strengthen relationship management capabilities

0 31 Credit cards is a key product for the mass affluent ABN AMRO (including Sudameris) has a market share of 6.5% of the credit card transaction volume and 4% of the cards in force, therefore has a higher than average utilisation ratio and a solid base for growth # of CardsTransaction Volume Source: ABECS, Mastercard, Visa market research

0 32 Credit cards have a significant growth potential Transaction Volume# Credit Cards BRL million...and a solid base for growth All data in the overview section are in Brazilian GAAP, in BRL and include all businesses of ABN AMRO Brazil - WCS and C&CC million

0 33 Debit cards enable to generate volumes with our retail client base # Debit Cards Brazil Debit cards have grown faster than other electronic payment methods, largely due to low income bankarization transaction volume was up 59% ABN AMRO Debit card business grew 63% in 2003, exceeding the debit market growth ratio, reducing check processing costs Source: Visane, ABN AMRO million

0 34 We have created a true multi-channel platform to best serve our clients Direct Channels include: call center, Internet, ATMs  Direct Channels/ Total Transactions 74% in 1Q04 (up from 50% in 1998)  Branch Transactions/ Total Transactions 21% in 1Q04 (down from 23% in 4Q01)  Direct Channel Availability 99% in 1Q04 (up from 97% in 4Q01)  Internet Users Individuals 34% in 1Q04 (up from 17% in 4Q01) Corporates 79%in 1Q04 (up from 17% in 4Q01)

0 35 Distribution and differentiation have become key competitive advantages Created in 2002 by the Financial Executives Magazine, e-finance award is intended recognize the most prominent financial institutions in the implementation of infra-structure solutions, IT and telecom applications 2003 categories:Internet Banking, Business Platform, Outsourcing Strategy, Branch BackOffice Solutions 2004 categories: Retail Internet Banking, New Call Center Technologies, Mobile Mini Branch  Reliability  Transparency  Accessability Driver of client satisfaction for mass affluent and client profitability for low income

0 36 Our strategy and employees have created a valuable brand Ranking “MOST VALUABLE BRAZILIAN BRANDS” Source: Interbrand - Dinheiro Publication

0 37 Current Brazilian Business Environment Overview of ABN AMRO Brazil Overview C&CC Brazil Financial Performance Sustainability Outlook 2004 / 2005 Appendices Table of Contents

0 38 The current performance is impacted by the integration of Sudameris All data in this slide are in Dutch GAAP in BRL for C&CC Brazil Figures in Dutch GAAP in BRL million1Q20034Q2003* Revenues1,2841,562 Expenses(814)(1,115) Operating Profit Provisions(149)(222) Oper. Profit before Taxes % 17.5% 6.8% 28% Taxes(88)20 Cayman Effects5711 Efficiency Ratio61.7%69.5% 1Q04/ 4Q031Q2004 1,654 (1,129) 525 (237) 288 (49) (7) 66.7% 28.8% 38.7% 11.9% 59.1% -10% 1Q04/ 1Q03 1.3% Net Profit %

0 39 Spreads are declining but volumes are growing Assets 0 5,000 10,000 15,000 20, Q1 Q2Q3Q Q1 Q2Q3Q Q1 Q2Q3Q Q1E Q2EQ3EQ4E 2005 AVG R$ million OverdraftsPersonal Loans Auto LoansOther Products - PJ Though spreads have declined, volumes have sustained solid growth and are expected to grow further

0 40 The integration is going smoothly and delivers the expected synergies Total Synergies Captured BRL million  Integration plans are being executed by 18 Integration Fronts (8 already completed)  Integration process is on track with BRL120.7 mio synergies captured as of Mar 2003 (annualised cost reduction)  53%of annualised cost reduction is related to FTE reduction and the balance related to other expenses Actual Planned

0 41 Sudameris Acquisition & Integration  ABN AMRO acquired 94.57% of Banco Sudameris Brasil S.A. in a R$ 2.2 billion transaction: R$ 527 million cash and balance through share exchange for ABN AMRO Real shares (11.58%)  Estimated synergies: R$ 300 mln p.a. starting in 2005  Global integration plan designed June 2003 along with due diligence  Creation of 18 working fronts, of which 8 have fully executed, 6 depend on other migrations (e.g. IT) and 4 are currently detailing migration.  Fronts already integrated: Audit, Asset Management, Private, Compliance, Legal, Treasury, Insurance and Consumer Finance  Implementation started as of closing in December 2003  ABN AMRO is ahead of schedule regarding implementation, capturing synergies both in the scope of revenues, personnel and administrative expenses

0 42 Sudameris Acquisition & Integration  In October 2003 a career orientation program was created to support personnel reallocation  A ‘Best Practice’ approach is being followed, e.g. for FX and Trade Finance Sudameris’ integrated operational model will be adopted  Complementary businesses will be maintained, e.g. Sudameris retail driven equity brokerage is already fully operational under ABN AMRO  The two banks/operations shall be fully integrated by year end 2004

0 43 Loans / Total Assets Ratio In a scenario of declining interest rates ABN AMRO has pursued to build on its loan portfolio, expanding client relationship and capturing cross-selling opportunities Client led growth will continue to produce quality earnings All figures based on Brazilian GAAP as published by each institution

0 44 Non-performing Loans >90 days The expansion of the lending business was implemented with no prejudice to asset quality; performance of the the loan portfolio is fully within market standards. Growth will be value creative as a result of sound credit policies MarketABN AMRO Source: Brazilian Central Bank

0 45 Current Brazilian Business Environment Overview of ABN AMRO Brazil Overview C&CC Brazil Financial Performance Sustainability Outlook 2004/ 2005 Appendices Table of Contents

0 46 The Dynamics of Sustainability Governo Employees Client Government Media Community Suppliers Environment Shareholders ABN AMRO Labor Union Society ABN AMRO has a leading role in creating and delivering sustainable value

0 47 Key Initiatives for Sustainability Core Business Linked Initiatives  New financing products directed to social and environmental projects  Assessment of the social and environmental risk of ABN AMRO clients  MicroCredit - Credit offering to population traditionally excluded by the financial sector  Ethical Investment Fund investing in socially and environmentally responsible enterprises Management Initiatives  Eco-efficiency / environmental management (e.g. recycling)  Staff Diversity initiatives  Supply Chain  Engagement and mobilization of suppliers  Social and environmental criteria as a key factor in the choice of supply chain partners  Bi-annual publication of Brazilian Sustainability Report Social Initiatives  70% of our financial donations are destined to public education and the remaining 30% to initiatives in income generation, environment and diversity  Wherever possible, we encourage our employees to be engaged in our social action initiatives

0 48 Current Brazilian Business Environment Overview of ABN AMRO Brazil Overview C&CC Brazil Financial Performance Sustainability Outlook 2004/ 2005 Appendices Table of Contents

0 49 Outlook 2004 / 2005 Inflation under control (IPCA forecast 6.8% 2004; 4.5% 2005) Revised from 6.0% 2004; 5.1% 2005 Pick-up of economic growth (GDP forecast 3.7% 2004; 3.6% 2005) Lower foreign exchange volatility (BRL/USD forecast 3.05 eop 2004; 3.25 eop 2005) maintained Lower interest rates (Selic forecast 14.5% eop 2004; 12.0% eop 2005) Revised from 13.5% eop 2004; maintained for 2005 Growing credit portfolio, offsetting lower margins and maintaining standards of credit quality (credit portfolio growth forecast for 2004 in the range of 20%)

0 50 Thank You

0 51 Current Brazilian Business Environment Overview of ABN AMRO Brazil Overview C&CC Brazil Financial Performance Sustainability Outlook 2004 / 2005 Appendices Table of Contents

0 52 Sovereign Spread Economic Environment Sources: Brazilian Central Bank, Bloomberg BRL EMBI Brazil Low international interest rates have pushed investors towards higher yield instruments. In this environment Brazil sovereign spread has been driven to historically low levels, at bps over Treasuries

0 53 External Private Debt Rollover Rate Economic Environment Sources: Brazilian Central Bank, ABN AMRO ( * ) External private debt defined Bonds, Notes, Commercial Papers, Direct Loans and Commercial Credit run-up to 2002 presidential elections After a sluggish performance in 2002 external private debt* rollover picked up reflecting the renewed appetite for Brazil. The 2004 drop is a consequence of awaiting definitions with regards to international interest rates.

0 54 % Public Debt / Exports Business Environment Economic Environment Source: Brazilian Central Bank, ABN AMRO % Exports/ GDP

0 55 Source: ANBID Asset Management Overview Mutual Funds AUM Market Share 1 Banco do Brasil Bradesco Itaú CEF Citibank ABN AMRO HSBC Santander Unibanco 10 BankBoston % 13.8% 14.1% 5.0% 4.9% 4.7% 4.2% 4.4% 4.6% 4.3% ABN AMRO ranks 3rd among privately owned retail driven asset manager as of Mar 2004 Other % TOTAL % Asset Managers in BRL billion

0 56 Credit Portfolio ABN Amro and Sudameris Overview BRL million Consolidated Credit Portfolio All data in the overview section are in Brazilian GAAP, in BRL and include all businesses of ABN AMRO Brazil - WCS and C&CC Source: Brazilian Central Bank, ABN AMRO Q Credit to the Private Sector * +13% +8% +1.5% Period EOP Balance in BRL billion Growth nominal +15% +59% +0.2% Growth ABN AMRO BRAZIL

0 57 ABN AMRO consumer finance division is Brazil’s largest car financier through its Aymoré brand, driven by strong customer service. Main competitors are aggressively reducing margins in order to obtain additional market share. Car Financing Market Share Source: DETRAN Consumer Finance Overview 100%

0 58 WEB Motors Overview  WebMotors has 85% share of the views in the internet auto segment  4% of internet visits search for information on the auto segment Source: IBOPERating Source: ABN AMRO

0 59 Mortgage Overview Source: ABECIP 2003 Market Share in BRL million Mortgage Balance Historically 75% of assets are acquired through the branch network. Intermediaries such as developers and real estate brokers provide a growth platform. The Brazilian mortgage market may benefit from the new law (currently under approval) regarding statutory lien. 1,1641,173 All data in the overview section are in Brazilian GAAP, in BRL and include all businesses of ABN AMRO Brazil - WCS and C&CC

0 60 Awards Ranked among “100 Best Workplaces” in 2002 and 2003 Ranked among “100 Best Workplaces for Women” in 2003 Created in 1998 by Exame magazine the guide to identify the best companies in People Management

0 61