1. Central Europe Investor Relations Conference 2 July 2001 Herman Agneessen s Member of the EC

2. 2 Central Europe Mission Statement Acquisitions to date Guiding management concepts Financial Results Financial Objectives SWOT analysis Asset Quality Efficiency initiatives Current IPB status Topics

3. Central Europe Mission Statement Create a second home market In future EU member-countries For bankinsurance activities On a segmented basis In KBC’s 4 activitity areas

4. 4 Kredyt bank Agropolisa Warta CSOB CSOB Poijst'ovna Patria K&H Bank K&H Life Argosz

5. 5 Acquisitions to date Poland Kredyt Bank Agropolisa Warta & Warta Vita Hungary K&H Bank (new) K&H Life (*) Argosz 49.99% 49.90% 40.00% 60.00% 50% 95.40% Current Ownership 213.4 7.2 123.2 279.4 2.5 23.9 Investment in m EUR 6 % 1 % 12 % non-life 0.7% life 15% 0.3 % 3 % Market share P/BV 1.42 na 3.35 1.34 1.23 na (*) 30 % indirectly through K&H Bank Czech & Slovak Rep. CSOB CSOB Pojist’ovna Patria 82% 75% 100% 1361.9 16.0 56.0 23 % 0.5 % na 2.3 2.34 4.13 non-life (+ 30%)

6. Central Europe Total investment : EUR 2,084 million banking EUR 1,911 million insurance EUR 173 million

7. 7 Guiding management concepts Careful balance between autonomy and control Branding policy : customer identification Strong local management input Strict central control requirements Credit/insurance risks, market risks, operational integrity Internal audit & compliance principles KBC reporting standards Maximisation of synergies IT, payment systems, operational efficiency Bankinsurance, markets & asset management know-how “best group practices”

8. 8 Financial results 1Q01 m EUR Y2000 1Q01 CSOB 116.1 78.7 K&H Bank 3.8 0.2 Kredyt Bank 46.8 15.5 p.m. Patria n/a 0.2 Stand alone results banks

9. 9 Financial results 1Q01- Banking Net profit (m EUR) Share in group profit Return on alloc. equity Share in alloc. equity Cost/Income ratio 60.0 16.9% 44.4% 10.1% 59.4% 40.0 11.9% 29.0% 10.1% 59.4% 30.5 9.7% 16.6% 8.7% 59.3% External (1) External (2) Normalized Internal (3) (1) external: after minorities and funding cost (2) ext. normalized: excluding 20 m EUR except. loan loss recoveries (3) internal : including FGBR and amortization of goodwill over 20 yrs

10. 10 Financial results 1Q01 m EUR Y2000 1Q01 CSOB Poijst'ovna-1.6+1.0 K&H Life-0.2-0.04 Argosz+0.05+0.2 Warta-7.2+0.03 Stand alone results insurance

11. 11 Financial results 1Q01- Insurance Net profit (m EUR) Share in group profit Return on alloc. equity Share in alloc. equity 0.9 0.2% 1.4% 4.2% - 0.9 - 0.3% - 1.4% 2.7% External (1) Internal (2) (1) external: after minorities and funding cost (2) internal : after amortization of goodwill over 20 yrs

12. 12 Financial results 1Q01- Combined Net profit (m EUR) Share in group profit Return on alloc. equity Share in alloc. equity 60.9 17.1% 29.2% 14.3% 29.6 9.4% 11.5% 11.4% External (1) Internal (2) (1) external: after minorities and funding cost (2) internal : including FBGR and amortization of goodwill over 20 yrs

13. 13 Financial Objectives 2004 Stand-alone ROE : 20 % CAD-ratio banks :11 to 13 % Stand-alone cost/income ratio : 55 % Stand-alone combined ratio : 103 % Net profit contribution to KBC Group profit : 10 % Net ROE for KBC : 15 %

14. 14 KBC’s major strenghts in CE Strong banking franchises at competitive cost Strong insurance franchise in Poland, …. perhaps also in Czech Republic Good to strong local management teams Segmentation already introduced Early entrant in integrated bankinsurance Positive profit potential outlook Eu-joining of chosen countries well underway

15. 15 KBC’s major weaknesses in CE Mostly inadequate IT-infrastructures Insufficient customer orientation Insufficient productivity & efficiency levels Unequal risk-awareness & asset quality levels Insufficient existing product offerings Critical mass not available in all countries Banks insufficiently strong in retail

16. 16 KBC’s major opportunities in CE Above average (western) growth outlook Country GDP as such Country GDP because of eu-joining GDP per capita Savings ratio Customer switch to higher value added products Policy of combining local brand & local management with strong shareholder resp. know-how provider Largely undeveloped SME / Asset Management / bankassurance markets - areas of KBC expertise Domestic capital markets waiting to be developed

17. 17 Central European growth potential Ample room for expansion... Total population: 65 million (Belgium: 10 million) GDP / capita:only 42% of EU average Bank products penetration:only 47% of EU average Insurance products penetration:only 42% of EU average …and good prospects for the region: GDP growth in 2000 Czech Rep. 3.1% / Poland 4.1% / Hungary 5.2% Hungary, Poland and Czech Republic figure as top-3 transition countries, Slovak Republic is nr. 5

18. 18 KBC’s major threats The competition has woken up ! IT-renewal is a major challenge Large-scale employee education is a must Change management must be concluded successfully Bank-mergers in czech republic and hungary Network expansion in slovak and polish banks Implementation of integrated bankinsurance concept New IT = new processes = “rationalizing yourself away” Productivity increase requirements Ensure adequate customer orientation Need to significantly enlarge existing product-offerings Develop & control new products in an untested environment

19. 19 Current Bank Asset Quality % watch 31.12.00 % NPL 31.12.00 % watch 31.3.01 % NPL 31.3.01 CSOB "new"9.0%1.7%11.5%2.0% CSOB "historic"100.0%87.7%95.8%78.7% K&H11.0%3.6%5.8%2.1% KB corporate11.9%5.7%14.8%5.2% KB consumers5.0%-. 4.8%-. KBC Bank cons.2.9%1.7%2.2%1.5%

20. 20 Efficiency initiatives - CSOB (CR only). 8 901 7 997 (-10.1%) 6 597 (- 25.9%) 2.2 m EUR 15.1 m EUR CSOB + IPB staff June 2000 : CSOB + IPB staff now : CSOB + IPB staff Dec. 2001 : Estimated lay-off costs : Est. recurrent savings p.a. :

21. 21 Efficiency initiatives - K&H Bank K&H+AAM staff 30/08/00 :5.174 K&H+AAM staff 31/05/01 :4.468 (- 13.7 %) K&H+AAM staff 31/12/01 :3.939 (- 24.9 %) K&H+AAM staff 31/12/02 : 3.400 (- 34.3 %) K&H+AAM staff 31/12/03 :3.000 (- 42.0 %) estimated lay-off costs :10.0 m EUR est. recurrent savings p/a :11.4 m EUR

22. 22 Current CSOB -IPB status Assets to be retained :117 m CZK Unwanted assets to be put : 48 m CZK Assets to be managed by CSOB for account of the government :110 m CZK Unresolved : 22 m CZK IPB-bank subsidiaries: at book value

23. 23 Remaining CSOB / IPB issues IPB Pojistovna : ownership Pension fund : ownership 37 % IT affiliate PVT : modalities

24. Central Europe Investor Relations Conference 2 July 2001 Herman Agneessen s Member of the EC

25. 25 KBC Control over CE-subsidiaries Formally : AGM & BoD Strategically : Steering Cttee CE & KBC Factually : KBC-expatriate in management board regular CEO/KBC-top consultation structured coordination

26. 26 KBC-control : structured coordination Full-time regional KBC CE-coordinators for : Overall coordination Market activities Internal Audit Market Risk Management Retail bankinsurance Information technology

27. 27 KBC-control : structured coordination Part-time regional KBC CE-coordinators for : Financial reporting Payment systems Specific insurance issues Credit-system integration Ad-hoc consultancy when requested or deemed appropriate

28. Central Europe Investor Relations Conference 2 July 2001 Herman Agneessen s Member of the EC