2003 Andre Bergen, Deputy Group CEO Strategy update and mid-term value drivers

Investor Day Overview KBC, 5 year after take-off : Merger synergies in Belgium Expansion in Central Europe Going forward : Drivers of future profit growth Mid-term financial objectives Conclusions

Investor Day KBC, 5 year after take-off We clearly benefited from the synergies of the merger in Belgium Gross premium income for life and non-life Revenue synergies : the bancassurance model bearing fruit In m EUR

Investor Day KBC, 5 year after take-off We clearly benefited from the synergies of the merger in Belgium FTE KBC NV, Belgium Cost synergies accelerated as of end 2001

Investor Day KBC, 5 year after take-off Highlights, Belgium : Additional revenue generation from cross-selling of insurance products, mostly to private individuals Stable to increasing market shares in banking (post-merger emphasis on customer retention) Since 2001, cost synergies thanks to integrated IT infrastructure and reduction of branches (target of FTEs, currently 78% realized)

Investor Day Poland: banking: no 6 insurance (L/NL): no 10 / 2 Czech Republic: banking: no 1 insurance (L/NL): no 4 / 5 Slovakia: banking: no 4 insurance (L/NL): no 7 / 7 Hungary: banking: no 2 insurance (L/NL): no 14 / 6 Slovenia: banking: no 1 insurance (L): start-up KBC, 5 year after take-off We've put ourselves on the map in Central Europe Market positions for banking and insurance

Investor Day KBC, 5 year after take-off We've put ourselves on the map in Central Europe CE: share in group profit and share in allocated capital (excl. group items)

Investor Day Highlights, Central Europe We developped solid customer franchises in the 5 ‘main’ countries (worth 1/3 of our market cap) We introduced gradually the bancassurance model in each of the countries We built high-performance IT systems, which are almost completed in the main companies Earnings accelerated (although 2002 was an adverse year in Poland) KBC, 5 year after take-off

Investor Day KBC, 5 year after take-off We gradually adapted the group risk profile 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Corporate and markets Central Europe Retail (Belgium) Allocated capital (excl. goodwill) : share per area of activity bn EUR

Investor Day KBC, 5 year after take-off Financial track record Gross revenues Operating result Net profit

Investor Day KBC, 5 year after take-off Financial highlights : Robust revenue growth : 13% p.a. However : slowdown in cost efficiency Since 2001, impact of the adverse economic and financial climate (cost of risk, value impairments) As a balance : earnings up 6% p.a. Sustained rise in DPS, even in difficult market situations (up 8% p.a.)

Investor Day Going forward, earnings drivers Going forward, investors rightly ask us about the catalysts for future growth The right question :

Investor Day Going forward, earnings drivers from a mid-term perspective, the best way to secure the highest level of shareholder value is to intensify the current strategic approach The clear answer is : (strategy horizon : )

Investor Day Going forward, earnings drivers Independent, how should we allocate our resources to earn the highest return? Strengthen current market presences? Develop new markets in (Central- or) Eastern-Europe? Develop new markets in Western-Europe? Develop new markets elsewhere? To our analysis, building on our current market presences is the option with the highest yield potential. In this regard, we feel confident that the current allocation of capital and management resources is the right way forward.

Investor Day Main assets for revenue enhancement : In Belgium : Developing the untapped cross-selling potential of insurance products (primarily for SMEs and non-life) Going forward, earnings drivers Market share insurance Market share banking Non-life: 8% Non-linked life: - individual: 12% - group: 4% Unit-linked life: - individual: 21% - group: 2% 22% 11% Market situation as of Dec 31, 2002

Investor Day Main assets for revenue enhancement : In Central Europe : Deepening product penetration of banking and asset management products (cards, mortgages, funds, etc.) Leveraging the bancassurance business model (increased sales of insurance products) If acquisition opportunities arise, e.g. meeting the 10% market share objective in Hungary (insurance) and Poland (banking) Going forward, earnings drivers

Investor Day Milestones in productivity enhancement and cost control : In Belgium (mainly in banking) : Completing the bank merger > By 2004, downsizing will equal 12 % of the 2001 headcount Optimizing the branch network concept (clustering) Rolling out efficiency-improvment programs (back offices) Going forward, earnings drivers

Investor Day Milestones in productivity enhancement and cost control : In Belgium (cont’d): Intensively marketing e-bancassurance Going forward, earnings drivers Active subscribers to KBC's internet and PC banking facilities (Belgium)

Investor Day Milestones in productivity enhancement and cost control : In Central Europe: Reorganizing business processes (front-end automation at advanced stage) Cross border cost-sharing projects (payments systems, IT procurement, etc.) > By 2005, we expect 2002 headcount could be reduced by % Going forward, earnings drivers

Investor Day Milestones in productivity enhancement and cost control : In general : Enhancing portfolio quality and controlling cost of risks Going forward, earnings drivers Loss ratio non-life (*)Loss ratio credit portfolio * excl. reinsurance Poland

Investor Day Mid-term financial objectives Targets unchanged, although ambitious and highly sensitive to the uncertain economic environment Achieved 2002 Minimum targets 2005 ROE, Group 13% 16% EPS growth (4y CAGR) 6%2%10% Cost/income ratio, banking 71%65%58% Combined ratio, insurance (excl. re-insurance) 100%101%95% Tier-1, banking 9% 8% Solvency, insurance 504%320%200% Achieved 2001

Investor Day Mid-term financial objectives Share in capital 2002 Minimum return 2005 Retail bancassurance 34%13%16% Central Europe 27%5%17% Asset management --- Services to corporates 25%9%12% Market activities 14%7%18% Achieved return 2002 Return on allocated capital

Investor Day Conclusion Course set for the mid-term future : > In order to enable our shareholders to benefit from solid EPS growth and a robust ROE level : Concentrating (even more) on the bancassurance potential in Belgium and Central Europe Heading for lower level of expenses and cost of risks