BANK DEGROOF Presentation for VIVIUM Assurances Bruxelles Kinepolis 14 th October 2010

1. BANK DEGROOFPresentation for VIVIUM Assurances Bruxelles Kinepolis14th October 2010 Mr. Thomas-Karl Palmblad 14th October 2010

2. Agenda • Introduction of Bank Degroof • Introduction to Degroof’s Global Investment approach for VIVIUM • Introduction of Bank Degroof’s Behavioral Value strategy • Q & A

3. Independent merchant Bank, founded in 1871, owned by its management 24.1 bn EUR in assets under management Asset management produces 80% of income Headcount 1000 Offices in Belgium (HQ), Luxembourg, Switzerland, France, Spain and Bahamas Bank Degroof

4. MANAGEMENT AND STAFF HAVE A STAKE IN THE GROUP’S SUCCESS 1. Senior management owns a majority stake in the bank. This gives them, in a long-term approach, a vital interest in the bank's performance and reputation Management & staff include(1) controlling stake held by Guimard Finance and the Philippson, Siaens, Schockert, Haegelsteen and Fontaine families, (2) active partners and (3) other members of management and staff 2. Financial partners includeCompagnie du Bois Sauvage, Parmafin (Theo Maes family), Luc Waucquez family, Levimmo and others. Own shares represent 1.19 % Managementand staff 63.85% Financialpartners and others 36.15%

5. BANK DEGROOF’S REPUTATION IS BUILT ON THE EXPERTISE MADE AVAILABLE TO ITS CLIENTS Private clients Public and private companies and their shareholders Institutional clients • Bank Degroof Brussel’s Institutional Portfolio Management department, Degroof Fund Managament Company and Degroof Gestion Institutionnelle (DGI) are the Degroof group's competence centres for institutional asset management • Management of EUR 15.9 billion in UCIs • Management of EUR 2.9 billion of institutional portfolios Financial markets • Long-established financial market player • Advice and sales to institutional clients in equities, bonds, undertakings for collective investment, listed derivatives and treasury management • A leading liquidity provider on Euronext Brussels UCI administration Private wealth management • Protect and grow • Full support at all stages of wealth creation • EUR 21.0 billion in assets under management Legal and patrimonial structuring • Specialists in legal, fiscal and inheritance structuring Credits & Structuring • Credit facilities as part of overall asset management relationships Corporate Finance • M&A expertise, recognized by various rankings • Dominant position in the issue of fairness opinions • One of the main financial advisers to the Belgian state and regional governments for privatisations and other major financial operations • Active role in private and public placements for private companies and companies listed on Euronext Brussels Credits & Structuring • Structured and tailor-made credits

6. OUR REPUTATION AND PROFESSIONAL APPROACH ENABLE US TO ATTRACT AND RETAIN HIGHLY COMPETENT PROFESSIONALS • Our culture is that of top grade professionals, working together in a climate of mutual trust and respect to produce optimal, lasting solutions for our clients • This culture provides a stability stimulating creative innovation • We favour a long-term approach, with close attention to financial fundamentals • For example, the average length of service of senior staff is 11.2 years

7. Bank Degroof = excellent performance thanks to • a clear and contrarian investment philosophy, • inspired by academic research and, that is translated • into disciplined investment processes by Teams • through a "fundamental-quantitative” approach • and with tight risk control

8. VIVIUM, the switch to Degroof Active Management Styles Degroof Active Funds Selection of 4 Management Styles Global Low Global Medium Global High Equities Europe Behavioral Value VIVIUM Managed Funds 4 Compartments • Stability Fund • Balanced Fund • Dynamic Fund • Aggressive Fund Low Active Risk Level High

9. VIVIUM, the switch to Degroof Active Managed Investment Processes 12 months return as at 30th September 2010 Return 1 Year : + 6.61% Return 1 Year : + 8.51% Return 1 Year : + 9.89% Return 1 Year : + 5.31% VIVIUM Managed Funds 4 Compartments • Stability Fund • Balanced Fund • Dynamic Fund • Aggressive Fund Low: 20% Equity Level High: 100%

10. VIVIUM, the switch to Degroof Active Managed Investment Processes Tracking Error 1.92% Vol. 5.29% Tracking Error 2.92% Vol. 9.8% Tracking Error 6.28% Vol. 15.5% Tracking Error 5% Vol. 19.7% VIVIUM Managed Funds 4 Compartments • Stability Fund • Balanced Fund • Dynamic Fund • Aggressive Fund Low: 20% Equity Level High: 100%

11. ASSET ALLOCATION ASSET ALLOC INTRODUCTION CONCLUSION PERFORMANCE DIVERSIFICATION • GLOBAL LOW • GLOBAL MEDIUM • GLOBAL HIGH • 3 RISK PROFILES

12. ASSET ALLOCATION INTRODUCTION CONCLUSION PERFORMANCE DIVERSIFICATION • MEDIUM = Flagship Management of Banque Degroof, 1.92 billion euros reflects the allocation strategy of medium risk OPTIMIZE THE RETURN • OBJECTIVE 1. Allocation between assets classes 80% OF THE RETURN 2. Diversification within every asset class 20% OF THE RETURN

13. ASSET ALLOCATION INTRODUCTION CONCLUSION PERFORMANCE DIVERSIFICATION Govies / Agencies Securitized Corporates Inflation linked Offices Commercial Residential Large caps Small caps Private Equity Flex Collar Hedge Funds Timber Currencies Deposits Commercial papers

14. ALLOCATION : MEDIUM(July 2010) ASSET ALLOCATION INTRODUCTION CONCLUSION PERFORMANCE DIVERSIFICATION Low High

15. 2. BENCHMARK ASSET ALLOCATION INTRODUCTION CONCLUSION PERFORMANCE DIVERSIFICATION Low High

16. 3. ALLOCATION TOOLS (ASSETS CLASSES) ASSET ALLOCATION INTRODUCTION CONCLUSION PERFORMANCE DIVERSIFICATION INVESTMENT COMMITTEE Leading indicators Consummer confidence Labour market New orders Inventories Profitability Real estate activity Credits • MACRO-ECONOMY • Growth: Europe, USA, Japan, Emerging countries • Inflation : • Short term interest • Long term interest • Exchange rates • Equity markets valorisations CPI, PPI Monetary aggegates Commodities prices World trade volume Labor cost

17. 3. ALLOCATION TOOLS (ASSETS CLASSES) ASSET ALLOCATION INTRODUCTION CONCLUSION PERFORMANCE DIVERSIFICATION INVESTMENT COMMITTEE FIXED INCOME COMMITTEE • BONDS ALLOCATION • - Duration/Positioning Real interest rate • Yield curve • - Govies-Inflation linked: Expected inflation • Credit: Corporate - govies: Rating/risk • Sectors • Countries FINANCIAL RATIOS - Price/Earnings - Earnings revision QUANTITATIVE TOOLS - Allocation Equity-Bonds: Risk premium - Allocation Blue-Small: Relative P/E

18. ASSET ALLOCATION INTRODUCTION CONCLUSION PERFORMANCE DIVERSIFICATION 4. STRATEGY A. GLOBAL ALLOCATION • Slightly overweighted in equity • Underweighted in real estate • Lower bonds duration

19. ASSET ALLOCATION INTRODUCTION CONCLUSION PERFORMANCE DIVERSIFICATION 4. STRATEGY B. EQUITY ALLOCATION • Underweighted in Japan

20. ASSET ALLOCATION INTRODUCTION CONCLUSION PERFORMANCE DIVERSIFICATION 4. STRATEGY C. BOND ALLOCATION • Overweightedin corporate & securitized bonds

21. ASSET ALLOCATION INTRODUCTION CONCLUSION PERFORMANCE DIVERSIFICATION 5. ASSET ALLOCATION: CONCLUSIONS Based on long term views

22. ASSET ALLOCATION INTRODUCTION CONCLUSION PERFORMANCE DIVERSIFICATION 1. NON EQUITY CLASSES 2. EQUITY CLASSES • BONDS • FLEXIBLE COLLAR • CONVERTIBLE BONDS • HEDGE FUNDS • REAL ESTATE • COMMODITIES • OTHERS: TIMBER • STYLES: • INDEXED • VALUE • GROWTH • … • PRIVATE EQUITY

23. ASSET ALLOCATION INTRODUCTION CONCLUSION PERFORMANCE DIVERSIFICATION 1. NON EQUITY CLASSES MEDIUM Cash 2% Bonds 16.5% Govies,  3.1% Inflation linked  2.4% Corporates 3.7% Securitized

24. ASSET ALLOCATION INTRODUCTION CONCLUSION PERFORMANCE DIVERSIFICATION 2. EQUITY CLASSES MEDIUM

25. ASSET ALLOCATION INTRODUCTION CONCLUSION PERFORMANCE DIVERSIFICATION DIVERSIFICATION: CONCLUSIONS Based on convictions, on medium term views

26. ASSET ALLOCATION INTRODUCTION CONCLUSION DIVERSIFICATION PERFORMANCE RISK CONTROL 1 MEDIUM Risk Control

27. ASSET ALLOCATION INTRODUCTION CONCLUSION DIVERSIFICATION PERFORMANCE OPTIMISTIC SCENARIO PESSIMISTIC SCENARIO +25.5% -10.1% +36.5% UPSIDE HIGHER THAN DOWNSIDE

28. Bank Degroof’s Behavioral Value strategy

29. Introduction to Bank Degroof’s Behavioral Value strategy • Unfortunately … Cumulative value of British shares between 1955 and 2001 You are here Source: “Capturing the Value Premium in the UK; 1955-2001” Dimson, Nagel & Quigley, LSE, January 2003

30. Introduction to Bank Degroof’s Behavioral Value strategy • 2. Quality of forecasting is a disaster Behavioral Value deals with these flaws through • Strong buying and selling discipline Obtained through a quantitative approach and improved bybehavioral criteria such as earnings revision momentum • Behavioral Value eliminates the analysts’ bias oflong term optimism By introducing mean reverting in the valuation model/business plan

31. Behavioral Value The Wheel of Fortune – where Degroof is

32. Risk Premium

33. Degroof Equities Europe Behavioral Value Gips

34. Market snapshot Source: Bloomberg 8th October 2010

35. Outlook • Comparison to previous crises Source: Lehman Brothers, Global Strategy Outlook, 7 December 2007

36. Outlook • Equities Performance US equities 12 months after bear market bottom Source: Global Financial Data

37. Contact details Thomas Palmblad, Institutional & Corporate Desk Rue de l’Industrie 44 1040 Bruxelles E-mail: TKP@degroof.be Phone: +32 2 287 93 27 www.degroof.be