1. Introduction Strategy Investor Relations conference 2 July 2001 Remi Vermeiren President of KBC Group

2. 2 …to KBC’s first Investor Relations Conference with : detailed presentations financials time for questions and answers but no concrete statements about 1H01 figures Welcome …

3. 3 Introduction and strategy : Remi Vermeiren Bancassurance : Frans Florquin Insurance : Willy Duron Risk Management : Maurits Verherstraeten Lunch Central Europe : Herman Agneessens Market activities and asset management: Luc Philips Conclusion : Remi Vermeiren Topics

4. 4 Introduction and Strategy The merger in 1998 Current group structure How merger challenges have been met Current Strategy Financials Topics

5. 5 KBC was formed in June 1998 from the merger of Kredietbank : a universal bank equity : 2 700 m. EUR profit : 365 m. EUR CERA Bank : a retail co-operative bank equity : 1 575 m. EUR profit : 228 m. EUR ABB : a personal non-life insurance company premium income : 1 018 m. EUR profit : 188 m. EUR Omniver and Fidelitas : life and non-life insurance companies of the Almanij/KB Group premium income : 423 m. EUR profit : 15 m. EUR Some history : the merger in 1998 Merger participants

6. 6 KBC Current group structure Almanij NV KBC Bank & Insurance Holding NV KBC Bank KBC Insurance 67.8% 100% 28.5% Free Float KBC Asset Man 45% 55% Cera Holding Almancora Flemish FamiliesMRBB 9.3% 16.6% 15.8% 28.3% Free Float 26%

7. 7 Some history : the merger in 1998 Increase critical mass in banking and insurance Create a unique multi-channel bancassurance concept Realize merger savings / synergies Develop strategy on basis of i.a. stronger home / capital base Merger objectives

8. 8 Creation of critical mass Balance sheet (m EUR) 147 725 209 740 Equity (m EUR) 5 2225 879 Premium income (Y2000/m EUR) 1 8012 650 Net profit (Y2000/ m EUR) 7981 166 Solvency Bank 7.2% 8.9% Insurance311% 309% Total staff23 00035 000 Total customers+/- 2.6 m. +/- 7.1m. 19981Q01

9. 9 Creation of critical mass Market shares KBC Bank home loans : 22.8 %25.2% deposits : 19.2 %19.4% Insurance non-life 9.2% 8.6% life 9.4%12.8% 19981Q01

10. 10 Tot. NPV ‘98 : 926 m EUR Total: 1268 m EUR  + 37 % NPV upwards revised in oct 2000 Merger effects on P/L as of 2003 / 2004 : 200 m EUR / yr before tax cost savings : 140 m. EUR inc. synerg : 60 m. EUR Realize merger savings / synergies

11. 11 Develop a strong strategy Focus on 4 activities Retail bancassurance Corporate services Asset management Market activities Focus on ‘local’ clients Retail SME Focus on Europe Belgium : home market Central Europe : second home market Western Europe : smaller countries/regions, niches.

12. 12 Strategic realizations to date Central Europe established as a second home market (4.5 m. clients) important acquisitions of banks and insurance companies in Czech Rep., Hungary and Poland (tot. 2.1 bn. EUR) KBC one of the leading foreign groups in Central Europe Market activities development of a European platform for small & mid caps through the acquisition of Peel Hunt, KBC Sec. Netherl. acquisition of convert. bond business of DE Shaw (KBC FP) Asset Management undisputed leader in fund management in Belgium increase of AUM from 37 to 73 bn. EUR thanks to endogeneous growth and acquisition of UBIM

13. 13 Value based management ROE targets and Capital allocation High overall ROE target (+/- 2 x cost of capital) Reallocation of capital markets  retail / bancassurance corporate credits  asset management corporate finance/private equity ROE target per activity based on cost of capital

14. 14 Minimum Target 2000 ROE at holding-co. level ROE at operat. level EPS growth Cost/income ratio bank Combined ratio insurer Tier-1 ratio bank CAD ratio bank Solvency ratio insurer 22% 17% 15% p.a. 55% by 2004 103% by 2004 7% 11% 200% Increased overall financial targets Targets in 1998 15.0% 12.5% 10% p.a. <60% <105% 7% na

15. 15 Profit contribution by activity Retailbancassurance Central Europe Corporate Services Asset management Market activities Group Item TOTAL 97 61 64 30 52 53 355 % tot. profit 27% 17% 18% 8% 15% 100% 1Q01 Ext. In m. EUR % tot. profit 2000 Ext. 452 66 148 131 172 196 1166 39% 6% 13% 11% 15% 17% 100%

16. 16 Profit contribution by activity Management calculation Retailbancassurance Central Europe Corporate Services Asset management Market activities Group Item TOTAL 1Q01 Int. % tot. profit In m. EUR 96 50 63 29 45 53 336 29% 15% 19% 8% 13% 16% 100% Difference between management calculations and externally published figures is : goodwill amortization over 20 years FGBR considered as equity 2000 Int. % tot. profit 452 29 145 129 159 200 1113 41% 3% 13% 12% 14% 18% 100%

17. 17 Value Creation Equity allocation Retailbancassurance Central Europe Corporate services Asset management Market activities Group item TOT. alloc. equity (*) FGBR Goodwill. 1Q01 ext. 39% 14% 34% - % 14% -1% 5 879 29.0% 11.5% 28.0% - % 11.5% 20.0% 9 295 1 843 1 574 35% 15/20% 20% 10% 15% 0 / 5% 100% Target Eq. alloc.. 1Q01 int. (*) in m. EUR 2000 ext. 37% 14% 38% - % 10% 2% 5 776 28.0% 10.8% 31.7% - % 8.1% 21.1% 8 953 1 841 1 336. 2000 int.

18. 18 Value Creation ROE per activity Retailbancassurance Central Europe Corporate services Asset management Market activities TOTAL at operat. level TOTAL at group level 8.5% 13% 10.5% 8% 11.5% 9.5% - Minimum ROE target ROE 1Q 01(in) 20.0% 15.0% 12.5% 13.0% 21.0% 17% 22% 14.6% 19.2% 9.4% - 18.1% 15.6% - Cost of Capital 17.6% 29.2% 12.3% - 30.9% 17.6% 24.7% ROE 1Q 01(ex) ROE 2000 (in) 17.4% 3.6% 5.3% - 17.1% 12.9% -

19. Introduction Strategy Investor Relations conference 2 July 2001 Remi Vermeiren President of KBC Group