KBC Group Company presentation Autumn 2005

1. KBC Group Company presentationAutumn 2005 Web site: www.kbc.comTicker codes: KBC BB (Bloomberg) KBKBT BR (Reuters)

2. Contact information Investor Relations OfficeLuc CoolNele KindtMarina Kanamoriinvestor.relations@kbc.com Surf to www.kbc.com for the latest update.

3. Important information • This presentation is provided for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to buy any security • KBC believes that this presentation is reliable, although some information may be condensed or incomplete • This presentation contains forward-looking statements with respect to our earnings development involving assumptions and uncertainties. The risk exists that these statements may not be fulfilled and that future results differ materially. • By receiving this presentation, each investor is deemed to represent that it possesses sufficient expertise to understand the risks involved

4. Table of contents • Company profile • Strategy and earnings drivers • 1H 2005 financial highlights • Information on capital management • Closing remarks on valuation

5. Foto gebouw 1 Company profile

6. Ranking in Euroland Market cap ranking Dec 2002 Aug 2005 Aug 2004 DJ Euro Stoxx Banksconstituents

7. Shareholder structure Free float CERA/Almancora27.1% Free float47.3% MRBB11.6% Other committed shareholders 11.7% (own shares: 2.3%, including ESOP hedge) Situation as at 31-Dec-04(before merger with Almanij) Situation as at 30-Jun-05 • KBC is majority-owned by a group of committed shareholders, thereby providing continuity for the pursuit of long-term strategic goals • Core shareholders include the Cera/Almancora Group (co-operative investment company), a farmers’ association (MRBB) and a syndicate of industrialist families

8. Business portfolio • KBC is a top bancassurer and asset manager in Belgium and has successfully expanded its operations in CEE-5, its 2nd home market. • Recently, Private Banking (69 bn AUM) has become more of a key focus. The PB business was expanded to include a Western European network. KBC is also active – be it rather selective – in commercial banking (mostly in W. Europe) and financial markets. Revenue geographical breakdown(1H 2005) Selected other markets (mostly in W. Europe):- private banking- SME/corporate CEE:- retail bancassurance- asset management- private banking- SME/corporate Belgium:- retail bancassurance- asset management- private banking- SME/corporate

9. Top-3 player in Belgium Savings deposits Individual Life Mutual funds Market share: 32% (1st) 19% (2nd ) 15% (3rd) Non-life insurance Mortgages Business loans Market share: 24% (2nd) 21% (2nd) 9% (4th) • Consolidated banking landscape (80% of market held by top-4 banks) • Market highly receptive to cross-selling of AM & insurance products (the bancassurance model dominates)

10. KBC’s presence in CEE Other22% Retail 57% SME/Corp 21% 25% 2005 H1 Share of business segments in gross income, CEE Banking CEE profit contribution to KBC Group

11. KBC’s presence in CEE Percent of towns with KBC branch Density of KBC’s branch network • KBC Group is one of the largest international players in the region • The density of KBC’s branch network is amongst the highest in the CEE region • Unlike the other players, KBC limits its presence to the EU Member States (Czech Republic, Slovakia, Hungary, Poland and Slovenia) and is active in both the banking and insurance fields

12. KBC’s commercial banking network

13. KBC’s private banking network * Of which 7 bn in low-yielding assets

14. Solid financial track record Combined ratio, non-life Cost/income, banking In m EUR Return on equity Net profit growth In m EUR Pro forma figures, KBC Group (2003 figures are according to B-GAAP)

15. Foto gebouw 2 Strategy and earnings drivers

16. Start of a new decade In Q1 2005, KBC merged with parent company Almanij: • ‘Quick wins’ for shareholders included: • The re-rating of the KBC share due to increased transparency, visibility and share liquidity (analysts previously used a 10-15% discount) • Operational synergies, particularly in the field of wealth management (programme of 75 m recurring pre-tax result, of which ½ as from 2006) • Further value-creating potential includes: • Shifting the earnings trend in the private banking area ‘into much higher gear’ (earnings growth to be doubled from 5% to at least 10% CAGR) Moreover, KBC continues to be ambitious, maintaining its performance commitments in both Belgium and CEE

17. We build a solid future • Strategy headlines include: • Retail- and wealth-management-oriented, with focus on Belgium and CEE-5 and selected Western European markets • Further enhancement of efficiency (with emphasis on - but not exclusively in - CEE and European private banking) • Standalone basis (opportunistic operational alliances in certain areas to generate economies of scale, if needed) • Steady dividend growth and solid level of financial strength/solvency • The solid ‘growth and value’ outlook is reflected in ambitious financial targets, valid until 2008:

18. Earnings drivers in Belgium - overview Do not underestimate the market: KBC Group is well positioned: • Consolidated banking market (80% of assets held by top-4 players) • Savings ratio amongst highest in the world (every year, ca. 15% of GDP flows into fin. assets) • Market highly receptive to cross-selling of AM & insurance, fueling strong growth trend in AM and life insurance business • Strong mortgage growth trend (ca. 10% per year) expected to continue, as residential property price levels are still below other European markets • Fee rates for retail banking services only 50% of European average (gradual increase expected) • Credit quality has proven to be solid over the cycle • Top-3 market position, esp. strong in Northern region (one of the wealthiest regions in the EU) • Of the top players, level of customer satisfaction is highest • Innovative product offering in retail AM (steadily increasing market share over the past 10 yrs.) • Still high cross-selling potential for non-life products and well-performing bancassurance distribution model • Further cost efficiency improvement potential, among other things, via co-sourcing of back offices with other banks • Well-diversified revenue structure (50% fee income) and further increase in fee income targeted

19. Earning drivers in CEE - overview Strong market growth momentum: KBC Group is well positioned: • Nom. GDP growth in 2005/06 at 6.3%. Although prospects have been revised due to global economic slowdown, growth will still outgrow EMU by 3.1% • Ongoing catch-up in product penetration (currently, an avg. of 45% for banking accounts and 5% for mortgages) • Mortgage volumes growing at double-digit pace (up 51% on avg. in 2004) • Financial sector could grow five-fold if financial assets to GDP were to reach current levels of S. Europe • Solid market position in retail and corporate businesses (excl. banking in Poland) with nationwide branch networks • Competitive advantage in enhancing cross-selling of asset management and insurance products • Well positioned in HNWI and private banking through epb know-how • C/I still on the high side overall, inducing further improvement, e.g., by setting up cross-border platforms for processing transactions • Adequately provisioned balance sheet (risks under control) • Availability of capital within the Group

20. Strong growth fundamentals in CEE (Source: IMF) Financial services (banking & insurance) in % of GDP (2004) (Source: Vienna Institute for International Economic Studies)

21. Bancassurance fueling CEE earnings Results are encouraging: Now the model is in place: • Transfer of product know-how and streamlining of business processes and IT systems • Implementation of KBC’s distribution model and setting up of sales incentives and adequate sales approach • Unified management responsibility (joint management committee of bank and insurance) = competitive advantage relative to other CEE players

22. Growth in AM fueling CEE earnings KBC is well positioned: • Strong appetite for ‘risk-free’ investments in the market (money-market, capital-guaranteed funds), fully in line with KBC’s core competencies and successful track record in Belgium • Cost/AUM below average (around 16 bps vs. 20 bps for Europe) = competitive advantage relative to other CEE players Results are encouraging: • AUM grew in ’04 by 25%. Continued high growth expected in coming years (CAGR of 15-20% in mutual funds and 10-15% in pension products) • Via the funds business, new customers are recruited. Existing customers using deposits to buy funds replenish deposit accounts after one year

23. Example 1: card transactions Centralized purchasing & processing of: 7.5 million cards 500 million transactions Reduced costs driven by: Standardized technology anticipating future developments (SEPA) Economies of scale Example 2: cross-border payments Centralized processing of cross-border transactions (also open for third-parties) Reduced costs driven by: Standardized technology anticipating future developments (SEPA) Economies of scale Centralized processes reducing costs cost/trans. 0.12 € 0.10 € 100 0.08 € 90 0.06 € 80 0.04 € 0.02 € 0.00 € - 500 1 000 1 500 2 000 2 500 million transactions

24. Mid-term financial outlook, CEE

25. Dual brand strategy: network-led vs. ‘independent boutique’ Growth drivers: network trade-up, extension of product offer and hiring of private bankers Private banking in higher gear Belgium W. Europe onshore W. Europe offshore CEE Core business: an integrated private banking business in selected European markets focusing on clients with >€1m of investable assets • Small today (2 bn AUM), but high market growth expected (>15% p.a.) • Strengthening a network-led model, leveraging Belgian experience • Integrated network of local pure-play private banking brands (boutique style) • Priority of reducing costs by creating synergies in a central ‘hub’ (IT, operations, support) • Growth drivers: increased share of wallet, hiring of PB managers and opportunistic M&A • Low-growth market • Focus on profitability (leveraging the hub) • If possible, steer repatriated assets to KBC onshore • No expansion, except in IFAs with short payback Opportunistic acquisitions may imply investments of 150-250 m per year

26. Private banking in higher gear Changing market environment: KBC Group is well positioned: • Strong relationship-based approach, open architecture concept, KBC AM’s sound product expertise and solid capability for tailor-made solutions • Greatly improved efficiency (implementation of large scale rationalization programme), to be further boosted by the realization of merger synergies within the enlarged KBC Group • Leveraging the network in Belgium • Local private banking brands with status/heritage in Germany, Spain, Netherlands, UK and Belgium • ‘Unique’ model attracting experienced private bankers from big banks • Shift in customer preference towards greater sophistication: open architecture, alternative investments, financial planning, accessibility and Internet delivery • However, the core needs of customers will remain the same (trusted personal relationships, status/exclusivity, investment performance)

27. Operational synergies in private banking The merger of KBC and Almanij allows to realise synergies by reducing costs and cross selling.The total benefit amounts to 75 m euro (pre-tax) per year as of 2009 (50% to be realised as of 2006). Type of benefits* Source of benefits* €m Securities €m Payments Securities Revenue(40%) Fin. Markets Corporate Insurance Asset Management Cost (60%) ICT & Overheads Cross sales Newbusiness Pro-cure-ment People Costsavoided Total Optimi-zation * Synergy benefits defined as peak recurring annual increase in pre-tax bottom-line result (2009 - peak level)

28. Private banking, financial projections In total, KBC Group projects ~10% net income growth per year until 2008 Net Income Growth CAGR 10% Excluding any future acquisitions This assumes normal market conditions

29. Foto gebouw 3 1H 2005Financial highlights

30. Financial highlights - At a glance - Group financial performance - Headlines per segment FY 2005 profit outlook Foto gebouw

31. 1H 2005 at a glance • Net profit at 1 253 m, up 55% y/y, generating a return on equity of 20% • Underlying profit (excl. one-offs) growing at 34% • Comparison of individual P/L lines with pro forma 2004 figures distorted by application of IFRS 32/39 and IFRS 4 as of 2005 • Strong business volume growth (deposits / loans / AUM / insurance) generating strong commission income (+23%) and offsetting impact of flattening yield curve on net interest income • AUM reaching the 170 bn EUR level (o/w 69 bn in private banking) • Further downtrend in expenses - cost/income ratio (banking) at 57 % • Sustained low combined ratio, non-life (94%) • Very low credit-risk provisioning (loan-loss ratio at 0.06%) • High levels of return in most business segments, especially in Belgian retail (29%) and in CEE (54%) • Outlook for 2005 remains positive

32. Solid business growth Note: Growth trend, excl. (reverse) repo activity, from 31-Dec-04 to 30-Jun-05

33. Profit trend, 1H 05 • Notes: • One-offs include the disinvestment loss at Agfa Gevaert (net bottom-line impact of –80 m) in Q2 2004, the write-back of of provisions for operating expenses after a legal settlement (net +48m) in Q2 2004, the income related to the settlement of a ‘historic’ Slovakian loan (net +68 m) in Q1 2005, the ‘non-recurring’ value gains on shares of Irish insurer FBD (net +68m) in Q1 2005 and merger-related expenses (net 13m) in Q2 2005 • All 2004 figures exclude impact of IAS 32/39 and IFRS 4

34. Profit trend, Q2 05 • Notes: • One-offs include the disinvestment loss at Agfa Gevaert (net bottom-line impact of -80m) in Q2 2004, the write-back of of provisions for operating expenses after a legal settlement (net +48m) in Q2 2004, the income related to the settlement of a ‘historic’ Slovakian loan (net +68 m) in Q1 2005, the ‘non-recurring’ value gains on shares of Irish insurer FBD (net +68m) in Q1 2005 and merger-related expenses (net 13m) in Q2 2005 • All 2004 figures exclude impact of IAS 32/39 and IFRS 4

35. Financial highlights - At a glance - Group financial performance - Financial headlines per segment FY 2005 profit outlook Foto gebouw

36. Solid revenue trend • IFRS reclassfications distort comparison with 2004 (among other things, non-recognition of unit-linked insurance premiums) • Q1’s solid trends continued in Q2: • NII: volume growth almost offsetting q/q NIM contraction • High level of life insurance premium income (1.2 bn - mostly unit-linked, in line with stock market performance) • Strong commission line (410 m) • Down 693 m y/y, mainly due to non-recognition of 1.1 bn new unit-linked premium volume under IFRS 2005 • Apart from one-offs (136 m in Q1), solid revenue ‘quality’: • NII: volume growth almost offsetting negative impact on NIM from flattening yield curve (-13 bps) • High level of life insurance premium income (2 bn) • Strong commission line (+23%)

37. NII trend, banking activities 1H 05 (y/y trend)

38. Impact of IFRS on NII / FV income 1H 05 IFRS, as reported Main impact from IFRS: • Reclassification of interest income on hedging derivatives from NIM to FV income ( 175m) • Negative impact of FV adjustments on financial instruments (-70m) 1H 05, adjusted for comparison * * Remark: simplified - only the mentioned main IFRS-adjustments are used

39. Impact of IFRS on Life income 1H 05 IFRS, as reported • No recognition of premium income and technical charges of investments contracts without Discretionary Participationt Feature (mostly unit-linked life products) • Margin recognized as fee/commission income • Remark: no bottom-line impact ! 1H 05, adjusted for comparison

40. Competitive landscape in Belgium Spreads on new mortgages (bps), KBC, Belgium Net Interest Margin, KBC Bank, Belgium 0.88 0.76 0.48 0.41 • In 1H 05, NIM was stable y/y at 2.0 %. • In Q4 04 and Q1 05 the (obviously lagging) effect of the flattening of the yield curve was offset by the improved product mix (shift to low-yielding liquid savings deposits in anticipation of an interest rate hike). In Q2 05, customers switched to long-term investments, anticipating deposit rate cuts (-25 bps as of Q3 03). • Volume growth (deposits/loans) was strong in Belgium, further boosting NII • Since mid-2004, credit spreads have seen a significant deterioriation as a result of increased price competition. Currently, pricing rationality is tending to be restored.

41. Competitive landscape in Belgium Change in retail market share since the beginning of 2004 (avg. deposits and loans), proxy Source: Febelfin (market sample)Includes consumer loans, mortgages, saving accounts and saving certificates • In 2004, the large banks, representing >80% of the market, lost roughly 1% market share to the benefit of smaller players. But from 1H05, this trend seems to be on the wane. • KBC has been able to keep its market share stable (and may have further increased its market share in unit-linked insurance and probably mutual funds).

42. Sustained favourable y/y cost trend -3% • As expected, cost level up q/q due to: • Elimination in Q2 of underusage of IT and marketing budgets of ca. 20m in Q1 (time lag) • Higher income-related staff costs ( 27 m esp. at KBC Financial Products) • Restructuring costs (20 m) and one-off merger-related costs (20 m) • Y/y trend: Q2 04 includes write-back (73 m) of provision for operating charges (after legal settlement) • Ytd expenses down 3%, mainly driven by (a) cost cutting in Belgium and (b) lower staff profit-sharing bonuses (esp. at KBC Financial Producs) • Cost/income, banking, down from 61% to 57%

43. Historic low impairment level -76% • Impairments down 185 m (-76%) on the back of limited credit risk and solid equity markets • Loan-loss ratio down from 0.20% in FY 04 to 0.06% • Impairments on investments limited to 16 m versus 130 m in 1H 04 • Q2 impairments remain at historic low • Q2 includes 5 m impairment on goodwill at KBL France

44. Excellent underwriting result, non-life • Combined ratio at 94% on the back of • Sound risk management (claims ratio at 64%) • Good cost control (expense ratio at 30%) • Favourable claims environment on all markets • Q2 sligthly higher q/q, mainly for seasonality reasons

45. Financial highlights - At a glance - Group financial performance - Financial headlines per segment FY 2005 profit outlook Foto gebouw

46. Segment structure KBC Group NV KBCBank KBCInsurance KBCAM KBL epb Gevaert Primary segmentation by business segment

47. Key points, business segments BANKING Net profit (in m) 784 Banking: • Q2 05 result at 314 m: • Good top-line mix, commissions particularly strong, not boosted by gains and trading income, NII almost stable despite flatening yield curve • Higher costs after the very low Q1 level (see above) • Impact of one-offs in y/y and q/q comparison (see below) • 1H 05 profit at record level of 784 m, driven by: • Strong commission income (+21%) • Strict cost control (C/I at 57% incl. AM) • Limited credit cost (0.06 bp) • One-off income related to settlement of historic Slovakian loan (net 68 m) Insurance: • Q2 05 results in line with Q1 (though high gains in Q1), due to • Record level of sales of life products (1.2 bn) • High dividend income (86 m) • Slightly better claims result • 1H 05 results increasing to 246 m on the back of: • High sales of life insurance (2 bn euro) • Excellent underwriting performance (CR, non-life, 94%) • Higher investment income o/w capital gains (esp. FBD – net non-recurring impact: 68 m) • Low impairment charges on portfolios (extremely high in 1Q 04) 699 564 2Q05 2Q04 4Q04 1Q04 1Q05 3Q04 IFRS 2005 Pro forma IFRS 2004 INSURANCE 246 Net profit (in m) 119 2Q05 3 4Q04 2Q04 3Q04 1Q05 1Q04 IFRS 2005 Pro forma IFRS 2004

48. Profit trend, banking segment Impact of one-off items: • Notes: • One-offs include the write-back of of provisions for operating expenses after a legal settlement (net +48m) in Q2 2004 and the income related to the settlement of a ‘historic’ Slovakian loan (net +68 m) in Q1 2005 • All 2004 figures exclude impact of IAS 32/39 and IFRS 4

49. Key points, business segments ASSET MANAGEMENT Asset management: • AUM in 1H 05 up 16% to 97 bn (2/3 due to new money inflows) • 1H 05 profit contribution at 126 m, +16 m y/y (driven by increased AUM) • Note: total AUM within the Group: 170 bn • Asset management segment: 82 bn (3rd party) + 15 bn (group assets) • Banking segment: 24 bn (mostly private and HNWI assets in Belgium and CEE) • European private banking segment: 50 bn (o/w 46 bn of private banking customers) European private banking: • 1H 05 profit contribution at 94 m, up 28 m y/y and down 12 m q/q (due to restructuring provisions) • Top-line at high level (partly due to M2M of financial instruments) with sustained growth trend of commission income • Private banking AUM in 1H 05 up 8% to 50 bn • Cost/income at 67% • No relevant impairment charges Net profit (in m) 126 119 109 2Q05 4Q04 2Q04 1Q04 3Q04 1Q05 IFRS 2005 Pro forma IFRS 2004 EUROPEAN PRIVATE BANKING Net profit (in m) 94 66 8 2Q05 2Q04 1Q04 3Q04 1Q05 4Q04 IFRS 2005 Pro forma IFRS 2004

50. Key points, business segments Net profit (in m) GEVAERT Gevaert: • 1H 05 profit contribution of 63 m (remember that in 2Q 04, discontinued activities weighed on the P/L at –80 m) • Revenue shored up, among other things, by M2M according to IFRS standards of private equity portfolio in 1Q 05 (15 m) and by gains on disposal of listed equity holdings in 2Q 05 (30 m) • 1H 05 profit contribution from Agfa-Gevaert: 14 m Holding company: • 1H 05 net holding company results at -59 m, quite high due to: • One-off costs in Q2, related to Almanij-KBC merger (20m): expenses for existing stock option plan at KBL and external advisory services • Elimination of received dividends on own shares (IFRS 2005) (9 m) • Costs of debt related to minority buy-out of KBL • Debt funding will be gradually reduced in future 36 63 2Q05 -48 4Q04 3Q04 1Q05 1Q04 2Q04 IFRS 2005 Pro forma IFRS2004 Net profit (in m) HOLDING COMPANY -40 -59 -19 1Q04 3Q04 1Q05 2Q04 4Q04 2Q05 Pro forma IFRS 2004 IFRS 2005