KBC Group

Company presentation Spring 2005

Web site: www.kbc.com

Ticker codes: KBC BB (Bloomberg) KBKBT BR (Reuters)

ISIN code: BE0003565737

2

Contact information

Investor Relations Office :

Luc CoolNele KindtMarina Kanamori

Tel.: +32 2 429 49 16 investor.relations @ kbc.com

Surf to www.kbc.com for the latest update.

3

Disclaimer

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.

Although the statements of fact in this presentation have been obtained from and are based on sources that KBC believes to be reliable, KBC does not guarantee their accuracy, and any such information may be condensed or incomplete.

This presentation contains forward-looking statements with respect to our strategies and earnings development. By their nature, these forward-looking statements involve numerous assumptions, uncertainties and opportunities. 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 is a sophisticated investor and possesses sufficient investment expertise to understand the risks involved.

4

Table of contents

1. Company profile

2. Strategy and earnings drivers

3. 2004 Financial highlights

4. Impact of IFRS

5. Information on capital management

6. Closing remarks on valuation

Company profile

Foto gebouw

1

6

Euroland top-30 banks, ranking by market cap *

* DJ Euro Stoxx Banks constituents as at 14 March 2005

BSC

H

BN

P PA

RIB

AS

BBVA

DEU

TSC

HE

BAN

K

SOCIE

TE

GEN

ERALE

ABN

AM

RO

CRED

IT A

GRIC

OLE

FORTIS

UN

ICRED

ITO

INTES

A B

CI

DEX

IA

SP I

MI

HVB

AIB

BIR

POP

BACA

MED

ERST

E

CO

M

NBG

CAP

EUR

BCP

AL

AN

BN

L

MPS

SAB

KB

C

KBC Group : 24 bn euros

Considerable scale in Euroland

7

Shareholder structure

* Including ESOP hedge

CERA/Almancora27.3%

KBC(own shares: 3.3%)

Other committed shareholders 11.4%

MRBB11.6%

Free float46.6%

Staff6%

Institutional, Belgium

14%

Retail, Belgium

22%

Institutional, UK

23%

Institutional, Cont. Europe

14%

Institutional, N. America

20% Institutional, R/o world

1%

Free float

KBC is majority-owned by a group of committed shareholders providing continuity to pursue long-term strategic goals

Core holders include the Cera/Almancora Group (co-operative investment company), a farmers’ association (MRBB) and a syndicate of industrialist families

Situation as of 31-Dec-04(before merger with Almanij)

Situation as of 3-Mar-05

8

Business portfolio

KBC is a top bancassurer and asset manager in Belgium and has successfully expanded its operations in CEE

Thanks to the merger with Almanij (March 2005), the private banking activities were expanded to include a Western-European network. PB has become a more pronounced key focus

KBC is also active – be it rather selective – in corporate banking (mostly in W. Europe) and financial markets. As investments in CEE have increased, operations in these areas became relatively less important

CEE

Capital markets

International corporate

Europeanprivate banking

46%

24%

10%

7%11% 2%

Revenue breakdown(2004 pro forma new Group, excl. group items)

Belgium

Gevaert

9

0% 10% 20% 30%

Other

Argenta

ING

DEXIA

KBC

FORTIS

Client deposits

0% 10% 20% 30%

Other

ING

DEXIA

FORTIS

KBC

Mutual funds

Top-3 player in Belgium

Market share:

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)

0% 10% 20% 30%

Other

ING

KBC

AXA

ETHIAS

FORTIS

Insurance premiums

31-Dec-03

10

KBC Group is one of the largest international players in the 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

8.7

13.2

13.5

14.3

19.0

21.6

23.5

24.6

28.6

29.0

ING (NL)

OTP (HU)

Citibank (US)

Intesa BCI (IT)

Société Générale (FR)

RZB (AT)

HVB / BA-CA (GE/AT)

UniCredit (IT)

Erste Bank (AT)

KBC (BE)

Top-3 player in the CEE region

International banks in CEE (by total assets, in bn EUR):

Source: RZB – assets as at 31 Dec 03, ownership structure as at 30 Jun 04

11

Banking Insurance

Slovakia:Market share: 6% (No. 4)Inhabitants: 5 mTotal assets: 2 bn EUR

Czech Republic:Market share: 21% (No. 2)Inhabitants: 10 mTotal assets:18 bn EUR

Poland:Market share: 5% (No. 8)Inhabitants: 38 mTotal assets: 5 bn EUR

Slovenia:Minority interest (34%)Inhabitants: 2 mMarket share: 41% (No. 1)

Czech Republic:Life M share: 8% (No. 5)Non-life M share: 4% (No. 6)

Slovakia:Life M share: 4% (No. 8)Non-life M share: 2% (No. 7)

Hungary:Life M share: 3% (No. 7)Non-life M share: 4% (no 6)

Poland:Life M share: 2% (No. 7)Non-life M share: 12% (No. 2)

Slovenia:Life M share: 6% (No. 5)

Top-3 position in the CEE region

Hungary:Market share: 11% (No. 2)Inhabitants: 10 mTotal assets: 7 bn EUR

KBC Group invested ± 3.6 bn to achieve a prominent position in a growth market of ± 65 m inhabitants

Especially in Poland, KBC is looking for external growth (lack of scale)

12

European private banking network

Netherlands:Theodoor Gilissen Acquired in ’03 – participation: 100%

Germany:Merck Finck & Co Acquired in ’99 – participation: 100%

Switzerland:Kredietbank (Suisse)Historical presence

Italy:Fumagalli SoldanAcquired in ’01 – participation: 95%

Monaco:KB Luxembourg (Monaco)Historical presence

Luxembourg:Kredietbank LuxembourgParent company

France:KBL France Acquired in ’98 – participation: 100%

Spain:Banco Urquijo Acquired in ’98 – participation: 100%

Since ‘98, KBC Group (KBL) has developed a private banking network throughout Western-Euope, anticipating erosion of its offshore activities in Luxembourg

AUM grew from 18 bn to c. 44 bn (appx. 70% managed outside Luxembourg)

Belgium:Puilaetco private bankersAcquired in ’04 – participation: 100%

UK:Brown ShipleyAcquired in ’89 – participation: 100%

13

Solid performance

KBC pre-merger:

Profitability

Efficiency

SolvencyTier-1, banking

Solvency, insurance

Cost/income, banking

Combined ratio, insurance

Return on equity

EPS growth

9.5%

316%

65%

96%

13%

Dec 03

+8%

10.1%

389%

60%

95%

Dec 04

8.8%

320%

65%

101%

13%

Dec 02

+1%

>8%

>200%

58%

95%

16%

Target

+10%

18%

+54%

Combined ratio, insurance, excluding reinsurance.

Solvency, insurance, including unrealized gains.

14

Solid performance (pro forma)

KBC post-merger (pro-forma):

* Non-updated targets used by the KBC Bank and Insurance Group before the merger with Almanij in March 2005

Profitability

Efficiency

SolvencyTier-1, banking

Solvency, insurance

Cost/income, banking

Combined ratio, insurance

Return on equity

EPS growth

9.6%

316%

66%

96%

12%

Dec 03

+26%

10.0%

389%

63%

95%

Dec 04

8.8%

320%

66%

101%

10%

Dec 02

+2%

14%

+29%

Combined ratio, insurance, excluding reinsurance.

Solvency, insurance, including unrealized gains.

Strategy and earnings drivers

Foto gebouw

2

16

Strategy headlines

Merger of KBC with parent company Almanij, following public bid on KBL European Private bankers (‘KBL epb'), in order to unlock additional value on the back of: increased visibility and liquidity realization of group synergies

Flexibility to continue current strategies: Leverage on bancassurance model and private banking expertise Core geographic focus on Belgium, CEE and private banking throughout Europe Continued good prospects for Belgian market CEE and European private banking to remain long-term earnings drivers Continued quest for (cost) synergies, partly through intra- and cross-group co-

sourcing for back-office processes Balanced risk profile through diversified business portfolio Solid solvency levels and credit ratings

17

Do not underestimate the market: KBC Group is well positioned:

Consolidated banking market (80% of assets held by Top 4)

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

Growth trend for mortgages, AM and life insurance business of about 10% per year expected to continu

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)

Innovative product offering in retail AM (steadily increasing market share throughout the past 10 yrs.)

Performing bancassurance distribution model (life reserves grew >20% p.a. over last 3 yrs.)

Cost efficiency improvement potential (on the back of business process redesigning and co-sourcing of back offices processes with other banks)

Earnings drivers in Belgium - overview

18

Strong market growth momentum: KBC Group is well positioned:

Earning drivers in CEE - overview

Nom. GDP growth in 2005 at 6.5%, outgrowing EMU by 3.3%

Ongoing catch-up in product penetration (currently, an avg. 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)

Competitive advantage in enhancing cross-selling of asset management and insurance products

C/I still on high side, allowing for further improvement

Adequately provisioned balance sheet (risks under control)

Geographical exposure entirely within EU, limiting risk substantially

Availability of capital within the Group

19

5.4% 4.1% 3.9%

3.6% 2.6%

3.5%

2004 2005e 2006e

3.9% 3.6% 3.8%

6.8%4.5% 4.5%

2004 2005e 2006e

5.0% 4.7% 5.0%

7.5%3.5% 3.0%

2004 2005e 2006e

3.6% 3.6% 3.6%

2.0% 3.2%

2004 2005e 2006e

Czech Republic Slovakia

Above average GDP growth, CEE

Hungary Poland

Real GDP growth + inflation - KBC estimates Real GDP growth + inflation - KBC estimates

Real GDP growth + inflation - KBC estimates Real GDP growth + inflation - KBC estimates

3.2%

6.8%

12.5%

8.5% 8.0

10.7%8.1% 8.3%

8.9%7.7% 6.5%

5.6%6.8%

20

Changing market environment: KBC Group is well positioned:

Strong relationship-based approach, open architecture concept and add-on of the product expertise of KBC AM to the tailor-made services of KBL epb

Stringent compliance infrastructure, centrally monitored from Luxembourg

Greatly improved efficiency (implementation of large scale rationalization program), to be further fueled by the realization of merger synergies within an enlarged KBC Group

Shift in customer preference towards new investment concepts: open architecture, alternative investments, financial planning..

Progressively growing requirements from regulators (increasing vulnerability of smaller players)

Pressure on profitability (although decent performance was seen again in Europe in 2004)

Earnings drivers in private banking

2004Financial highlights

Foto gebouw

3

Foto gebouw

Headlines

Results KBC Bank & Insurance (pre merger)

- Financial performance

- Areas of activity

Results KBL epb

Results Gevaert

Financial outlook for 2005

Merger synergies – update

23

Quick reminder

Until 31-Dec-04:

As of 01-Jan-05:

Almanij

KBCBank & Insurance

KBLEuropean Private Bankers

Gevaert

KBC Bank

KBC Insurance

KBCAsset Management

KBC Group NV

KBCBank

KBCInsurance

KBCAM

KBLEuropean Private Bankers

Gevaert

24

1 022 1 034 1 119

1 758

2001 2002 2003 2004

Strong earnings momentum

Net profit FY2004 of 1 758 m

Strong year-on-year growth (+57%) and ROE (18%), driven by solid revenue dynamics and successful risk- and cost management

in m EUR+57%

* Organic growth

Key figures 2002 2003 2004

ROE 13% 13% 18%

Profit growth +1% +8% +57%

Revenue growth* +7% -1% +6%

C/I, banking 65% 65% 60%

Loan loss 0.55% 0.71% 0.20%

C/R, non-life 105% 96% 95%

KBC Bank & Insurance

Net profit

25

100 101 109

172

2001 2002 2003 2004

10070

83

118

2001 2002 2003 2004

Outperforming the market

Earnings growth at sustained high level compared to sector

Peer group *KBC Bank & Insurance

CAGR: +20% CAGR: +6%

* DJ Euro Stoxx Banks universe CAGR = compound average growth rate

26

1 017 1 0381 305

1 682

2001 2002 2003 2004

KBC Group (mergco)

Pro forma net profit FY2004 of 1 682 m

Major differences with KBC Bank & Insurance’s results: Elimination of gains on the sale of Almanij Group shares (82 m) Add-on of earnings of KBL epb, however with the non-recognition through P/L

of the use of the GFBR (130 m) – net contribution of 63 m Add-on of profit contribution of Gevaert (-36m) , adversely impacted by the

one-off divestment loss of Agfa Gevaert (81 m)

in m EUR

Key figures, 2004 KBC (Old)

KBC (New)

RevenuesCosts

6 999-4 306

7 880-5 002

Operating result 2 693 2 879

Provisions&value adjExtraordinary

-333+61

-336-130

Pre-tax result 2 421 2 413

TaxesMinorities

-490-172

-541-195

Net profit 1 758 1 682

Net profit

27

Simulated impact of IFRS standards

7

80

81

9

674

-449

14.0

11

Other

Goodwill

Tangibles &intangibles

Lease

Tax

DBPUnderfunding

Provisions

Profitappropriation

89

3

2

-97

-35

-29

0.4

Other

Goodwill

Tangibles &intangibles

Lease

Tax

DBPUnderfunding

Provisions

Impact on equity: + 426 m *Impact on P/L: -67 m * in m EUR in m EUR

* Impact on KBC Mergco’s 2004 pro-forma figures

28

1.52 1.641.84

2002 2003 2004e

Growing dividend

Gross 2004 dividend yield, relative to 2004 average share price is 3.7%* (subject to AGM approval)

Backed by its strong solvency position and enhanced profitability, KBC Group intends in future to continue its policy of paying out a steadily growing dividend

Dividend per KBC share *

EUR

+12%

* 4.7% for ex-Almanij shares that were converted to KBC shares

Foto gebouw

Headlines

Results KBC Bank & Insurance (pre merger)

- Financial performance

- Areas of activity

Results KBL European Private Bankers

Results Gevaert

Financial outlook for 2005

Merger synergies – update

30

5 756 5 655 6 011

FY02 FY03 FY04

Top-line growth, banking

In m EUR

Key points

+6%3 156 3 486

5 037

FY02 FY03 FY04

Premium growth, insurance

In m EUR

+33% org

7.2%5.9% 5.2%

2002 2003 2004

Investment return, insurance

- 70bp

0.55%0.35%

0.71%

0.20%

2002 2003 2004 Targetcorporates

Loan-loss ratio, banking

- 50 bp

In bn EUR

31

105%96% 95% 95%

2002 2003 2004 Target

Combined ratio, non-life

Key points

23%

17% 16% 16%

2002 2003 2004 Target

Return on equity, insurance

10% 11%

19%16%

2002 2003 2004 Target

Return on equity, banking

+8pp -1pp

- 1pp

65% 65%60% 58%

2002 2003 2004 Target

Cost/income ratio, banking

- 5pp

32

Solid growth in banking revenues

Total FY04 income up 6% y-o-y : Sustained high commission income

(+10%), mainly on the back of growth in investment management and – to a lesser extent – in corporate finance, bancassurance and payments services in CEE

Robust financial market activity (+24%), mainly in the first half of the year. Capital gains on investments (365m) in line with 2003

Interest income up 1% owing to volume growth. NIM* slightly down to 1.67% from 1.73% in 2003 (vs. 1.67% in 2002)

Strong Q4 thanks to a successful marketing campaign (investment products) in Belgium and ‘normalized’ trading levels (after weak Q3)

FY 2004

3 046 3 118 3 138

1 696 1 807 1 971

1 014 730902

FY02 FY03 FY04 Interest income Commissions & other

Financial transactions

Banking income (in m EUR)

6 0115 6555 756

NIM = net interest margin

33

Favourable growth in banking assets

Customer deposits up 6%*

Customer loans up 7%*: Corporate book* up 4% (down in 2003,

partly due to impairments in Poland) Solid mortgage growth :

End of 2004

23.5 24.6 28.3

62.2 59.361.7

13.16.3

16.6

0

2002 2003 2004

Retail Corporate Institutional

Customer loans(in bn EUR)

106.6

90.398.8

Note : mortgage growth adjusted for currency depreciations

O/S* in bn

Chg 2003

Chg 2004

Belgium 18.1 +10% +9%

CR/Slovakia 1.2 +36% +42%

Hungary 0.9 +69% +71%

Poland 0.4 +24% +5%

Total 26.7 +16% +17%

O/S = outstanding.Chg in 2003: excl. deconsolidation of Krefima

* Excl. institutional activity

34

1.50%

1.60%

1.70%

1.80%

1.90%

2.00%

2.10%

FY02 FY03 FY04

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

5.5%

Interest margin, Belgium (left)10-y EUR T-bonds (right)

Spread development

Interest margin, Belgium banking business

Spreads on outstanding loans,Belgium banking business

0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

1.2%

1.4%

1.6%

1.8%

Jan-02 Jul-02 Jan-03 Jul-03 Jan-04 Jul-04 Jan-05

Mortgages SME loans (installments)

trend

trend

35

1 2751 676

2 525

971 762

1 085 910

1 048

1 428

FY02 FY03 FY04

Life, non-linked Life, unit-linked Non-Life

FY 2004

Strong growth in premium income

3 486

Sustained robust growth in Life: Up 45% y-o-y in organic terms Very strong in Belgium (+47%), outgrowing

the market on the back of successful business model (market share up from 13% to 15%, at 31% in unit-linked business)

Solid growth in CEE (+28%). Market share up in Hungary and Slovenia, down in Poland and CR.

Non-life: up 5% in organic terms * Primary business in Belgium growing

(+7%) slightly above claims inflation (stable market share)

Expansion in CEE: premiums up 11% y-o-y in organic terms. Market share stable in Hungary and SR, down in Poland and CR.

Drop in reinsurance exposure(premium income: -3% y-o-y)

Premium income (in m EUR)

5 037

3 156

* Extension of consolidation scope in 2004

36

Lower investment yields, insurance

6.19%

5.24%

4.79%

3.0%

3.5%

4.0%

4.5%

5.0%

5.5%

6.0%

6.5%

7.0%

FY02 FY03 FY04

Interest yield, bond portfolio10-y EUR T-bonds

m EUR FY 02 FY 03 FY 04

Interest, dividend,rent 449 455 524

Capital gains on shares * 198 138 104

Total 647 593 628

Investment return 7.2% 5.9% 5.2%

* capital gains on shares in 2004: 4.75% on market value of equity portfolio

Interest income, insurance Total Investment income, insurance

37

45

153

76 144 117

403

168

156

78

FY02 FY03 FY04

Belgium CEE Other

* Net specific provisions to average gross customer loans

Low loan-loss charges

Loan-loss provisions at very low level (-71% y-o-y)

465

FY 2004

676

199

Loan-loss provisions (in m EUR)

Customerloan book

Gross loans(in bn EUR)

Lossratio*FY03

Lossratio*FY04

Belgium 52.2 0.24% 0.09%

CR/Slovakia 7.1 0.34% 0.26%

Hungary 4.6 0.32% 0.64%

Poland 3.5 8.68% 0.69%

International 41.6 0.48% 0.26%

Total 109.0 0.71% 0.20%

38

Favourable non-life claims charge

FY 2004Claims ratio

(% of net premium income)

72%65% 62%

FY02 FY03 FY04

Premiumincome(in m EUR)

ClaimsratioFY03

ClaimsratioFY04

Belgium 715 59% 59%

CR 70 78% 68%

Slovakia 8 87% 88%

Hungary 55 78% 72%

Poland 330 - 63%

R/I 249 75% 69%

Total 1 428 65% 62%

Favourable development in all markets:

39

FY 2004

2 119

1 018997

431 491 520

2 302 2 197

1 006

FY02 FY03 FY04

Belgium CEE Rest o/t World

3 636

Banking expenses (in m EUR)

3 6953 751 Total cost basis down 2% y-o-y : In Belgium: -4% y-o-y (-78 m), headcount

reduced y-o-y by 800 FTEs CEE: -1% y-o-y (-9 m).

In Poland, headcount reduced by 1 275 FTEs (exceeding initial target)

Elsewhere: +6% (+29 m), mainly related to trading bonuses

Cost/income ratio significantly improved from 65% to 60%

Q4 up 2% y-o-y (higer profit than anticipated resulting in higher bonus expenses) and 13% q-o-q (seasonality reasons and higher marketing costs)

* Extension of consolidation scope in 4Q01

Banking expenses well controlled

40

Reducing product complexity - update

Area of business

Actions planned

Examples Realized Realizationin progress

Pending

Paymentsservices 59

Reducing no of types of credit cards, transaction forms,etc

77% 19% 5%

Investmentproducts 129

Reducing no of savings accounts, high complex orders,etc

78% 23% 0%

Home, carand travelservices

45Reducing no of mortgages, no more floating rates for consumer loans,etc

89% 11% 0%

Services tobusinesses 131

Reduction in interest rate formulas for cash facilities, integrating types of insurance policies,etc.

76% 18% 7%

TOTAL 364 78% 19% 3%

Product simplification programme - banking, Belgium

41

Co-sourcing initiatives - update

Joint venture with the DZ Bank Group for cross-border payments

shared processing platform for cross-border payments

transactions

Economies of scale: the no. of cross-border transactions will go up over 50%, generating substantial recurring cost savings (double-digit reduction of unit cost per transaction -

expected payback period < 1 year) *

Multi-bank platform based on high performance straight-through

processing and compliant with new EU regulation

BE GE

Fin-Force

* For competitivity reasons, no further details can be disclosed

±12 m transactions p.a. from KBC's Belgian banking activities

Transactions from DZ and its 1 200 co-operative banks

42

Incremental intra-group synergies

Cross-border synergies with CEE entities :

Centralized card purchasing/processing (SiNSYS)

Alignment of ICT approach and joint contracting of business partners, e.g., in the field of cash handling (purchases of vendor solutions & machinery, etc.) and HRM (SAP)

Integrated int’l cash management product offering (W1SE), joint nostro/vostro proposal, centralized approach for cash handling, etc.

KBC standards for retail distribution and bancassurance (Mercator)

Foto gebouw

Headlines

Results KBC Bank & Insurance (pre merger)

- Financial performance

- Areas of activity

Results KBL European Private Bankers

Results Gevaert

Financial outlook for 2005

Merger synergies – update

44

269

365

118 116 93

193218

490

-132

126132143

583

378

221

Retail Belgium CEE Asset management SME & corporates Capital markets

2002 2003 2004

Areas of activity overview

Net profit contribution, in m EUR *

* Pro forma

45

322

239

260

41

343

230

FY02 FY03 FY04

Banking Insurance

Revenues ExpensesProvisions

Belgian retailProfit contribution

(in m EUR)

363

FY 2004

FY 04 at a glance :RevenuesExpensesCredit risk

FY profit conribution of 582 m, up 19%, thanks to remarkable improvement in banking profitability. ROAC at 19%

Banking result up 32%, driven by 4% revenue growth (margin pressure offset by asset growth and higher fee income in funds and insurance business), sustained cost control (-2% expenses) and low level of problem loans (9 bp loss on RWA). Private banking contributing 49 m

Strong premium income (+38% y-o-y) and strict technical discipline (combined ratio at 93%), but negative impact from lower investment yields and normalized tax level

Excellent performance in Q4 on the back of a succesful marketing campaign (investment products) and capital gains (offsetting impairment charges of preceding quarters)

490582

46

118

244

24

FY02 FY03 FY04

Banking Insurance

Revenues ExpensesProvisions

Central and Eastern EuropeProfit contribution

(in m EUR)

…

-132

269

FY 2004

FY04 at a glance (organic):RevenuesExpensesCredit risk

FY profit contribution of 269 m, up from -132m in 2003, underpinned by the robust turnaround in Poland and solid operating performance on the other markets. ROAC 14% (15% in banking)

Banking at 244 m (vs. –131 m), thanks to solid revenue expansion (+11%), cost discipline (C/I down from 75% to 67%) and ‘normalized’ credit risk (loan-loss charges at 48 bp)

Insurance at 24 m (vs. –1 m), driven by solid premium growth (+20% in organic terms) and improved underwriting (C/R down from 104% to 97%)

Q4 result below quarterly average due to various items: change in recognition of interest income and higher marketing costs (PL), seasonal effects in operating expenditure and higher life reservation charges (CZ) and provisioning for legal disputes (HU).

108

47

68%78%

88%

61%74% 79%

CR/Slovakia Hungary Poland

14%11%

17%

0%3% -1%

CR/Slovakia Hungary Poland

Top-line growth *

5.5%

21.5%

5.5%

11.4%

20.9%

5.9% 4.7%

11.4%

CR Slovakia Hungary Poland

Market shares

11%8%

12%14%

5%

CR/Slovakia Hungary Poland

Cost/income ratio

Return on investment

Key developments in CEE banking

Dec-03 Dec-04 FY03 FY04

FY03 FY04FY03 FY04

* Growth in local currency, after elimination of the yield on excess capital

n/r

Avg deposits and loans

48

CEE

CSOB K&H KB NLB Insurance

CEE, company overview

FY 04 (in m EUR)

(% chg y-o-y in local currency)

816(+10%)

405(+18%)

317(-2%)

217(+257%)

Gross operating income

-471(+0%)

-279(+10%)

-244(-11%)

- 191(+210%)

General expenses

-32 -30 -41 - Provisions

-101 -16 +3 -2 Taxes & extraordinary

212(+5%)

79(+121%)

35(-)

79 24(-)

Stand-alone profit

-32 -26 -6 - +4 Adjustments, o/w yield on excess capital, etc

-19 -21 -4 -52 -4 Minority interests

162(+13%)

31(+180%)

25(-)

27 24(-)

Profit contributionto Group

17% 18% 8% - 7% Return on allocated cap

49

Market share, retail funds

Belgium : 31.5% Czech Republic : 22.0% Slovakia : 7.7% Hungary : 9.4% Poland : 1.3%

Asset management

Assets under management(in bn EUR)

Net change in assets, 2004

Belgium:88%

CEE: 5%

40 4554

1415

201719

209

11

13

2002 2003 2004

In b

illio

ns o

f E

UR

Institutional, group assets Institutional, third-party assets Retail, private assets Retail, funds

Corporate107 bn

89 bn81 bn

2337

1145

5 162

635

8 278

Retail

Retail funds, Belgium

Retail funds, CEE

Group assets

Institutional assets

Private assets, Belgium

50

FY02 FY03 FY04

Revenues Expenses

FY profit contribution of 143 m (after allocation of distribution fees to retail business), up 8%, underpinned by solid increase in AUM

Assets (107 bn) up 20% y-o-y (of which 66% net inflow), but gradual shift to lower margin business (buoyant growth in capital-guaranteed retail funds and advisory mandates for HNW individuals in Belgium)

Solid growth momentum in CEE region, be it from a low basis: AUM up 25% y-o-y (+57% for retail funds on the back of market innovation / launch of structured funds)

Search for international expansion through third-party distribution of funds (0.5 bn gathered in 2004)

Strong Q4 segment result (6% increase in AUM)

Asset managementProfit contribution

(in m EUR)

116132

FY 2004

FY 04 at a glance :RevenuesExpenses

143

Belgium :88%

CEE : 5 %

51

Market share in Belgium

5

10

15

20

25

30

35

Dec-93 Dec-94 Dec-95 Dec-96 Dec-97 Dec-98 Dec-99 Dec-00 Dec-01 Dec-02 Dec-03 Dec-04

KBC

Competitor A

Competitor C

Rest of the market

Competitor B

Mutual funds market – development of market shares

52

206 209

346

FY02 FY03 FY04

Banking Insurance

Revenues

ExpensesProvisions

FY profit contribution 378 m, up 72%, driven by improved operating performance and substantially lower loan-loss charges. ROAC at 19%.

Solid growth in banking on the back of a 5% revenue increase, stable expenditure level and significant gain (112 m) from lower loan-loss provisions (28 bp on RWA vs. 62 bp in 2003)

Better return in re-insurance thanks to further improvement in underwriting performance (combined ratio of 98% vs. 100% in 2003)

Remarkable profit increase in Belgium and in the global structured finance business. Also fine results from Ireland, the US and the diamond niche sector.

Q4 segment results in line with previous quarters (somewhat higher risk-provisioning offset by higher fee income)

SME and corporates

219

378

193

FY 2004

FY 04 at a glance :RevenuesExpensesCredit risk

Profit contribution (in m EUR)

53

SME and corporates

5167 69

1

35

61

121 8

42

2

41

011

32

100

166

103

FY 02 FY 03 FY 04

Belgium W. Europe USA

SE Asia RoW + other (Re)insurance

Profit contribution, geographical breakdown (in m EUR)

54

127

0

116 81

-34

22

72

1046

FY02 FY03 FY04

M/DCM ECM (cash) ECM (derivatives)

Revenues

Expenses FY profit contribution 221 m, up 76%, boosted by the pick-up of equity capital markets. ROAC at 20%.

Revenues in ECM activity up 20% (with expenses almost flat), mainly on the back of the non-recurrence of fair value adjustments on an unwinding derivatives portfolio in 2003 and additional commission income out of hedge fund activities. Moreover, further improvement in contribution from cash equity business: profit contribition of 22 m (vs. breakeven in 2003)

Profit contribution of money and debt capital markets up 9% as a result of 7% increase in income and 5% increase in expenditure

Q4 segment result back to ‘high average’ level after weak Q3 which was hurt by seasonal activity slowdown and adverse climate

Profit contribution (in m EUR)

Capital markets

93

126

221

FY 2004

FY 04 at a glance :RevenuesExpenses

55

Changes in activity reporting, 2005

Changes as of 1Q 2005:

Use of IFRS reporting standards(impact expected to be limited)

Integration of ‘Asset management’ business into retail and coporate divisions (separate details on asset management will be available)

Additional areas: ‘KBL epb’ + ‘Gevaert’ (to be integrated in 2006)

Allocation of capital: 6.8% on RWA (Tier-1 of 8% with 15% hybrid),

previously 5.95% No further allocation of goodwill

(ROAC becomes an indicator for operating performance, as opposed to ROI)

Areas of activity in 2005: *

1. Retail bancassurance (mainly in Belgium)

2. Central and Eastern Europe

3. Corporate services (SME and corporates)

4. Market activities

5. KBL European private banking

6. Gevaert

* Best-efforts approach for 2005 – will be reassessed for 2006

Foto gebouw

Headlines

Results KBC Bank & Insurance (pre merger)

- Financial performance

- Areas of activity

Results KBL European Private Bankers

Results Gevaert

Financial outlook for 2005

Merger synergies – update

57

KBL 1996

19961996 Challenges Challenges

Private banking purely concentrated on offshore (although predictable erosion of offshore center)

Limited geographic customer base diversification

KBL not primarily focused on private banking yet

58

1. To develop a network of European Private Bankers (epb): Higher proportion of AUM based in on-shore centres Well-balanced and diversified geographic origin of private clients

2. To refocus KBL in Luxembourg: Parent company activity Support function for the members of epb (IT, Global Custody, Markets, etc) Local banking activities in Luxembourg:

Private banking Niches : securities services and services to local professionals in Luxembourg

(banks, insurers, asset managers)

3. To continue a reasonable profit growth and decrease reliance on non-private banking revenues

Strategy of KBL epb

To achieve the above 3 targets, necessity to grow through acquisitions

59

KBL epb today

20042004 AchievementsAchievements

Presence in 11 countries

Clearly focused on private banking: The client is at the center Relationship-based on long term

view

Multicultural

Based on open-architecture

60

174 181193

205

2001 2002 2003 2004

Net profit

Financial key points

36 3438

43

2001 2002 2003 2004

Assets under management

In bn EUR

7.6% 8.4%10.0% 9.2%

2001 2002 2003 2004

Tier-1 ratio

15% 17% 18%21%

2001 2002 2003 2004

Return on equity

In bn EUR (Lux Gaap)

Lux GaapLux Gaap

CAGR +6% CAGR +6%

61

Revenues in line with strategy trend

Strong increase in commission income (+17% of which +6% on organic basis) due to the strengthening of the core private banking activity.

Contraction of net interest income on the back of:

Focus on private banking and intentional restricting of loan exposure

Reduction of exceptional profits on treasury activity

Lower excess capital (further to acquisitions and maturity of high-yielding assets)

Non-recurrence of extraordinary dividends (in 2003 related to re-insurance captive KB Ré)

Capital gains on non-core investments

335 317 370

321 312 213

192

15

7165

122

158

0

200

400

600

800

1 000

FY02 FY03 FY04Commissions Interest income

Dividends Other Operating Income

Operating income (in m EUR)

756822

914

62

FY02 FY03 FY04

* Net specific provisions to average gross customer loans

Continued stringent loan policy

Loan portfolio of 7.7 bn (diversified portfolio with 90% of exposure in Western-Europe)

Progressive scaling down of lending activities not related to private banking since 2000

Centralization of risk exposure and Strict local lending limits

Consistantly low loss ratio:

Loan portfolio (in m EUR)

2004 15 bp

2003 21 bp

2002 15 bp

Avg 5 yrs 17 bp

10 0179 600

7 679

63

318

213 208

317 299

194

FY02 FY03 FY04

Staff Costs Other Overhead Expenses

526

Operating expenses (in m EUR)

492530

Despite: continued streamlining of cost

base resulting in organic cost decrease of -2.5% y-o-y

improved efficiency through support services to epb from Luxembourg

… cost/income ratio rises from 60% to 70%

* Extension of consolidation scope in 4Q01

Expenses under control

64

Strongly reduced provisions

In m EUR, Lux GAAP

2002 2003 2004

Operating incomeOverhead expenses

914-530

822-492

756-526

Operating result 384 330 230

Provisions and depreciations -183 -83 19

Pre-tax result 201 247 248

Income taxMinority interest

-18-2

-52-1

-43-1

Net profit 181 193 206

Reduced operating result compensated by the non-recurrence of value adjustments on investments portfolios

A new provision was set aside for potential future restructuring charges (127 m), but offset by the writeback of the GFBR (130m)

As a balance, net profit up 6.5%

65

m EUR 2000 2001 2002 2003 2004

Stand-alone profit 161 174 181 193 205

Consolidation adjustments* 1 -33 -35 -53 -112

Minority interests -71 -63 -51 -31 -20

Amortisation of goodwill -2 -2 -6 -10 -10

Contribution to Group profit

89 76 89 99 63

* Mainly due to differences in scope of consolidation (-16 m in 2001), the elimination of intragroup income (-20m in 2002 and and -46m in 2003), and the fact that the GFBR has already been reversed (-130m) through equity in the Group pro-forma accounts in 2001 (relevant for 2004 results)

Reconciliation with KBC Group’s pro forma results:

Foto gebouw

Headlines

Results KBC Bank & Insurance (pre merger)

- Financial performance

- Areas of activity

Results KBL European Private Bankers

Results Gevaert

Financial outlook for 2005

Merger synergies – update

67

Gevaert portfolio

Fields of business of Gevaert (total portfolio at 31-Dec-04: 1.5 bn) Holdings in listed companies, of which important investment in Agfa Gevaert*

(26% stake, worth 854 m at 31-Dec-04) Private equity (0.2 bn) Real estate and specialised leasing and finance activities**

within ‘Almafin’, a since 2004 fully-owned subsidiary of Gevaert with total assets of 0.5 bn

Activity in 2004: New equity investments: 166 m (excl. intragroup shares) Realised gains on exits (incl. real estate): 35 m

* Belgian listed imaging technology company focusing on the health care and grafics sectors (market cap ca. 3.4 bn)** in the niche fields of audiovisual and railway equipment, leisure infrastructure,…

68

Gevaert portfolio

Profit contribution: –36m caused by the decreased contribution from Agfa Gevaert (-66 m, down from 63m in ’03)

Depressed contribution of Agfa due to: one-off divestment loss charge

(81 m) related to the sale of the ‘consumer imaging division’

reduction of business scope (disposal of non-core assets in 2003/04)

rather difficult business climate, although reversed trend recognised at end of year

Significant non-realised gains on equity portfolio:

On equity holdings: 496m, of which on ‘Agfa Gevaert’: 311m

* Pro forma, including Almafin in the scope of consolidation

2003* 2004

Results of associated companies Realised gains, securities Other income Gross income

107-999

197

4619

108173

Administrative expenses -92 -109

Operating result 105 63

Value adjustmentsAmortisation of goodwillShare in restructuring costs in associated companies

+13-28

-

+8-28

-81

Extraordinary results TaxesMinorities

--92

+6-4

-

Contribution to Group result

83 -36

69

Gevaert portfolio

2000 2001 2002 2003 2004*

Results associated companies

Realised gains Other income Gross income

468620

152

2142541

69-98

68

104-913

109

4619

108173

Administrative expenses -8 -6 -5 -6 -109

Operating result 144 35 63 103 63

Value adjustmentsAmortisation of goodwill **Share in restructuring associates **

-19-30

-

-19-30-75

-55-27-19

+13-27

-

+8-28-81

Extraordinary results TaxesMinorities

2-

-21

--1

+19

-7-11

--1

-

+6-4

-

Contribution to Group result 76 -71 -45 88 -36

Non-realised gains at 31-Dec 405 87 220 259 496

* Extension of consolidation scope (acquisition of Almafin) ** Mainly related to Afga Gevaert

Contribution to KBC Group’s pro forma results:

Foto gebouw

Headlines

Results KBC Bank & Insurance (pre merger)

- Financial performance

- Areas of activity

Results KBL European Private Bankers

Results Gevaert

Financial outlook for 2005

Merger synergies – update

71

Profit outlook - 2005

We continue to face a favourable environment in all of our home markets. In this respect, we are confident about 2005

However, due to uncertainty surrounding the implementation of IFRS, we cannot provide any precise quantitative guidance

Nevertheless, we are convinced that, on a like-for-like basis, year-on-year Group profit will be higher in 2005 then in 2004

This confidence is supported by the good results achieved so far in the first quarter

72

2005 IFRS disclosure schedule

• New IFRS templates

• FY04 IFRS earnings and B/S (excl. impact of IAS 32/39 and IFRS 4)23 Mar. 200523 Mar. 2005

• Impact of IAS 32/39 and IFRS 4 on shareholders equity on 1 Jan 200528 Apr. 200528 Apr. 2005

• 1Q05 earnings (full set of interim IFRS financial statements and notes)

• 1Q04, 2Q04, 3Q04 and 4Q04 earnings (IFRS reference P/L and B/S, incl. segments, excl. impact of IAS 32/39 and IFRS 4)

9 June 20059 June 2005

Foto gebouw

Headlines

Results KBC Bank & Insurance (pre merger)

- Financial performance

- Areas of activity

Results KBL European Private Bankers

Results Gevaert

Financial outlook for 2005

Merger synergies – update

74

Quick reminder

Merger of KBC with parent company Almanij, following public bid on KBL European Private Bankers (‘KBL epb'), in order to unlock additional value on the back of: increased visibility and liquidity realization of group synergies

Flexibility to continue current strategies: Leverage on bancassurance model and private banking expertise Core geographic focus on Belgium, CEE and private banking throughout Europe Continued good prospects for Belgian market CEE and European private banking to remain long-term earnings drivers Continued quest for (cost) synergies, partly through intra- and cross-group co-

sourcing Balanced risk profile through diversified business portfolio Solid solvency levels and credit ratings

75

Synergy areas

Gevaert portfolio

Optimization of value management by centralising capital and and risk management function

Additional revenue growth based on complementarity of product ranges (e.g. funds, life insurance...) and geographical presence

Cost savings based on overlapping activities and functions

Optimization of capital and risk management by rebalancing equity portfolio

Strenghtening of competitive position by merging Gevaert’s activities into KBC Bank and KBC Insurance

Synergy area Synergy potential

Private banking

(activities of KBL epb)

Corporate functions

Synergy projects proceeding according to plan

Unified strategy for private banking and private equity expected to be fully ready for execution by mid-2005

Management is committed to start realizing synergies immediately

76

0

20

40

60

80

2005 2006 2007 2008 2009

Activities of KBL epb

Note: ‘Synergy benefit’ described throughout as peak recurring annual increase in pre- tax bottom-line result vs. base business.

Synergy benefit, in m (see note below)

Revenue

Cost + Cost Avoidance

Total synergy program of NPV 500 m (net of restructuring and capital costs, post tax)

Estimated capital and restructuring costs are c 50m over 5 years

Recurring pre-tax benefits of 75 m (peak level), half of which can be realized by 2006

Cashflow positive in every year 40% revenue and 60% cost (and cost

avoidance) benefits All synergies reach their peak by 2009

(some faster than others) Portfolio of 32 synergies, 19 ‘large’ and

13 ‘small’

77

Gevaert portfolio

Private equity

Real estate & specialized

finance

Reduction of equity portfolio (case by case approach as to individual equity positions)

Merger of activities of ‘Almafin’ into KBC Bank (i.e. ‘KBC Real Estate’ and ‘KBC Lease’)

Disposal of of non-core activities

Merger of Gevaert and ‘KBC Investco’ (KBC Investco is a subsidiary of KBC Bank and KBC Insurance)

Build up a private equity platform with geographical focus on home markets (targeted portfolio of 500-600 m)

Business line Strategy headlines

Holdings in listed

companies

Impact of IFRS

Foto gebouw

4

79

Disclaimer

By its nature, the information in this presentation involves numerous assumptions, uncertainties and opportunities, both general and specific. We caution readers of this presentation not to place undue reliance on this information as a number of factors could cause future Group results to differ materially.

All data in this document are unaudited and are meant as indications necessary to illustrate the changes introduced by IFRS which will affect future reportings.

KBC undertakes no obligation to revise or update any information to reflect changes in policy, events, expectations or otherwise.

80

Content

1. Disclosure headlines

2. Impact on financial statements 2004

3. Impact on financial statements 2005

81

Headlines

22

33Corrections due to the first time application of IFRS valuation rules in opening B/S on 1-Jan-04 (exception: first time application of IAS 32/39 and IFRS 4 in opening B/S on 1-Jan-05)

Comparative figures of 2004 available (excluding impact of IAS 32/39 on financial instruments and IFRS 4 on insurance contracts)

First IFRS reporting 1Q 200511

Headlines – Impact 2004 – Impact 2005

82

Disclosure schedule, 2005

• New IFRS templates

• FY04 IFRS income statement and B/S (excl. impact IAS 32/39 and IFRS 4)

• Impact of IAS 32/39 on shareholders equity in opening B/S of 1-Jan-05Apr 28, 2005Apr 28, 2005

• 1Q05 earnings (full set of IFRS interim financial statements and notes)

• 1Q04, 2Q04, 3Q04 and 4Q04 earnings (IFRS reference P/L and B/S, incl. segments, excl. impact of IAS 32/39 and IFRS 4)

Jun 9, 2005Jun 9, 2005

Mar 23, 2005Mar 23, 2005

Headlines – Impact 2004 – Impact 2005

83

Headlines – Impact 2004 – Impact 2005

Segment information, 2005

Financial statements

6 business segments

1) Banking2) Insurance 3) Asset Management 4) KBL epb* 5) Gevaert *6) Holding Company

P/L and B/S

3 geographical segments

1) Belgium2) CEE3) Rest of world

Key income figures

Management reporting

6 customer segments

1) Retail 2) CEE3) SME/corporate4) Capital Markets5) KBL epb* 6) Gevaert* + Group Item (= non-allocated activities)

P/L

* Temporarly solution for 2005: KBL and Gevaert as non-integrated divisions

84

Main changes in valuation rules, 2004

Impact on earnings

Impact on book value

Impact start

Presentation of own equity before profit appropriation (instead of after profit appropriation)

X 2004

Stricter criteria for recognition of provisions (IAS 37) X X 2004

Recognition of deficit/excess of defined benefit pension plans (DBP) (IAS 19)

X X 2004

Broader criteria for recognition of deferred taxes (IAS12) X X 2004

Reclassification from operating to finance lease (IAS 17) X X 2004

Correction of depreciation of tangible assets and capitalisation of internal software (IAS 16/38)

X X 2004

Impairment testing of goodwill and no further depreciation (IAS 36 and IFRS 3)

X X 2004

Misceleaneous other changes with limited impact, such as inclusion of SPV’s in scope of consolidation, etc.

X X 2004

Headlines – Impact 2004 – Impact 2005

85

IFRS Income statement FY 2004*

m euros KBC (Old)

KBC Group (Mergco)

Net interest incomeGross earned premium, insuranceDividend incomeNet gains from financial instruments at fair valueNet realised gains from available for sale assetsNet fee and commission incomeOther income

3 687 5 158

214 647513

1 029308

3 833 5 158

231725503

1 404479

Gross income 11 555 12 333

Operating ExpensesImpairments - o/w on loans and receivables - o/w on AFS assetsGross technical charges, insuranceCeded reinsurance resultShare in results, associated companies

-4 200-379-201-165

-4 633-6855

-4 944-365-198-150

-4 633-6822

Profit before taxes 2 329 2 345

Income tax expense

Minority interests

-498-172

-537-193

Net profit 1 659 1 615

* Non-audited figures (excl. impact of IFRS 4 and IAS 32/39) Headlines – Impact 2004 – Impact 2005

86

-34

-7 +0.4

+5

+39 -10

Net profit2004

BEL GAAP

Net profit2004 IFRS

Impact on profit 2004 - KBC Old

Non-audited figures, excl. impact of IFRS 4 and IAS 32/39

-92

1659

1758

Provisions*

DBP

Tax Lease

Fixedassets

Goodwill Other

Headlines – Impact 2004 – Impact 2005

* Mainly related to reversal of the use of the provision for financial risks in the insurance business

87

-35

+2 +0.4

+3

+89

-29

Net profit2004

BEL GAAP

Net profit2004 IFRS

Impact on profit 2004 - KBC Mergco

Non-audited figures excl. impact of IFRS 4 and IAS 32/39

-97

1615

1682 Provisions*

DBP

Tax LeaseFixedassets

Goodwill Other

Headlines – Impact 2004 – Impact 2005

* Mainly related to reversal of the use of the provision for financial risks in the insurance business

88

Impact on EPS 2004 *

EurosKBC (Old)

KBC Group(Mergco)

Basic EPS, Belgian GAAP 5.66 4.59

IFRS adjustments: - reversal of provisions - underfunding of DBP - adjustments of deferred taxes - reclassidication of lease - adjustments on fixed assets - adjustment of goodwill - other - change in definition of no of shares

-0.30-0.11-0.02+0.00+0.02+0.12-0.03+0.06

-0.27-0.10+0.01+0.00+0.01+0.24-0.08+0.08

Total IFRS adjustments -0.26 -0.10

Basis EPS, IFRS 5.40 4.49

* Non-audited figures (excl. impact of IFRS 4 and IAS 32/39) Headlines – Impact 2004 – Impact 2005

89

IFRS Balance sheet, 31-Dec-04 *

m euros KBC(Old)

KBC(Mergco)

Loans and advances to customersSecuritiesLoans and advances to banksDerivative financial instrumentsProperty and equipment (excl invest. property) Goodwill and other intangible fixed assetsInvestments in associated companiesOther assets

106 79890 88727 06515 376

1 782650615

9 160

111 17798 86238 46315 376

2 3001 0861 228

16 671

Deposits from customers and debt securitiesDeposits from banksDerivative financial instrumentsGross technical provisions, insuranceLiabilities under investment contracts, insuranceOther liabilities

141 95542 46017 72813 259

3 93120 847

157 71255 08317 72813 259

3 93123 351

Total equity- Parent company equity- Minorities

12 15410 641

1 513

14 09912 328

1 771

Balance sheet total 252 334 285 163

* non-audited figures (indicative only), excl. impact of IFRS 4 and IAS 32/39 Headlines – Impact 2004 – Impact 2005

90

Headlines – Impact 2004 – Impact 2005

Impact on BPS, 31-Dec-04 *

EurosKBC (Old)

KBC Group

(Mergco)

Book value per share, Belgian GAAP 33.84 32.50

IFRS adjustments: - profit appropriation - reversal of provisions - underfunding of DBP - adjustments of deferred taxes - reclassidication of lease - adjustments on fixed assets - adjustment of goodwill - other - change in definition of no of shares

+1.19+0.05-1.31+0.03+0.03+0.28+0.12+0.00+0.35

+1.84+0.04-1.23+0.03+0.02+0.22+0.22+0.02+0.63

Total IFRS adjustments +0.74 1.80

Book value per share, IFRS 34.58 34.30

* non-audited figures excl. impact of IFRS 4 and IAS 32/39, based on 307.7m shares for ‘KBC old’ and on 359.5 m shares for ‘KBC Mergco’

91

Headlines – Impact 2004 – Impact 2005

Main changes in valuation rules, 2005

Impact on earnings

Impact on book value

Impact start

Deposit accounting for unit-linked life products (IFRS 4) 2005

Derecognition of catastrophe / equalisation provision (4) X X 2005

Insurance liability adequacy test (IFRS 4) X X 2005

Adjustment of loan losses (NPV-approach and recognition of portfolio-based provisions) (IAS 32/39)

X X 2005

Recognition impairments on equity investments (32/39) X X 2005

Deduction of treasury shares from own equity (32/39) X X 2005

Convertible bonds to be considered as own equity (32/39) X X 2005

Marking to market,‘bonds available for sale’ (IAS 32/39) X 2005

Marking to market, ‘bonds at fair value’ (IAS 32/39) X X 2005

Marking to market, ‘shares available for sale’ (IAS 32/39) X 2005

Marking to market, ‘shares at fair value’ (IAS 32/39) X X 2005

Marking to market, derivatives not held for trading (32/39) X X 2005

92

Disclosure schedule 2005 - reminder

• Impact of IAS 32/39 on shareholders equity in opening B/S of 1-Jan-05Apr 28, 2005Apr 28, 2005

• 1Q05 earnings (full set of interim IFRS financial statements and notes, incl. impact of IAS 32/39 and IFRS 4)

Jun 9, 2005Jun 9, 2005

Headlines – Impact 2004 – Impact 2005

93

Indicative composition of portfolios*

Assets as of2005

Value at 31-12-04 *

Valuation (volatility impact)

Loans and receivables

Mortgages/consumer creditCorporate loans

28.3 bn78.2 bn

Amortized cost (no impact from volatility in valuation)

HTMinstruments

Bonds, banking bookBonds, insurance book

5.9 bn2.5 bn

Amortized cost (no impact from volatility in valuation)

AFS instruments

Bonds, banking bookBonds, insurance bookShares, banking bookShares, insurance book

16.5 bn7.3 bn1.0 bn2.9 bn

Fair Value (adjustments recognized in shareholders’ equity)

Financial instruments at Fair Value

Bonds, banking bookBonds, insurance bookTrading portfoliosUnit-linked investmentsDerivatives, banking bookDerivatives, insurance book

18.5 bn0.6 bn

31.5 bn3.9 bn

p.m.p.m.

Fair Value (adjustments in P&L)

* Figures for KBC pre-merger, book value according to B-GAAP Headlines – Impact 2004 – Impact 2005

94

Annex

Disclosure on IFRS available in the annual report at www.kbc.com:

Description of major differences between IFRS and B-GAAP

Full P/L and B/S 2004 IFRS with reconciliation to B-GAAP, for both ‘KBC’ (old) and ‘KBC Group’ (Mergco)

Foto gebouw

5 Information on capital management

96

0

500

1000

1500

2000

2500

3000

2003 2004

Legal Econ buffer Excess

-100

100

300

500

700

900

1100

2003 2004

Legal Econ buffer + Excess

Solvency

10.0%

9.2%

316%

389%

Private banking, KBL epb (Tier-1)

Insurance business

(solvency margin)

726 m

726 m

1 372 m

467 m

359 m

In m EURIn m EUR

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

9 000

10 000

2003 2004

Legal Econ buffer Excess

Banking KBC,(Tier-1)

In m EUR 10.1%9.5%

2 060 m

3 871m

3 871m

In the short term, regulators will not apply the IFRS approach for monitoring solvency

97

Non-realized gains on investments*

* Excluding trading portfolio

31-Dec-04, in m EUR Book value Market value

Net gains

Fixed-income

- Banking business 40 331 41 739 1 402

- Private banking business 13 414 13 529 115

- Insurance business 10 409 11 036 627

- Gevaert portfolio 14 15 1

Equity

- Banking business 927 955 28

- Insurance business 3 050 3 413 363

- Gevaert portfolio 867 1 363 496

98

Allocation of excess capital

Excess capital may be used for: Increasing presence in CEE (banking presence in Poland and

insurance presence in Hungary may be strenghtened by acquisitions or setting up business combinations)

Strenghtening the European private banking franchise Buying out minority shareholders Decreasing the leverage at holding-company level Securing a stable, growing dividend

Board’s mandate to buy back own shares, up to 10% of capital*

* Valid until 29 Oct. 2005. Extension subject to approval of the AGM on 28 Apr. 2005

Closing remarks on valuation

Foto gebouw

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Valuation

P/E 2005

CEE banks 1 13.5

CEE-exposed banks 2 12.4

Euro-zone banks 3 12.1

KBC 10.9

BEL banks 4 10.4

Key figures: Share price: 65.8 euros Net asset value: 39.3 euros

Analysts’ estimates: 2005 EPS consensus*:

6.02 euros (+7% y-o-y) P/E 2005: 10.9

Recommendations: Positive: 55% Neutral: 25% Negative: 20%

Valuation relative to peer group:

Weighted average of IBES data :1) OTP, Komercni, Pekao, BPH PBK, BRE2) BA-CA, Erste, Unicredit, Soc. Gen., Intesa BCI3) Top 20 DJ Euro Stoxx Banks 4) Fortis, Dexia

Situation as at 14 March 2005

* Smart consensus collected by KBC (13 estimates)

101

Group restructuring benefits

Merger of KBC with parent company Almanij (March 2005):

Business benefits: Flexibility for fully implementing existing strategies Unity of strategy, capital and management Enhanced efficiency, with business synergies

Financial benefits: Increased share liquidity, thanks to pooling of two listed entities

and higher free float Elimination of holding-company discount Increased transparency through simplified structure Improved visibility on capital markets

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Increased visibility and share liquidity

Amongst top-10 banking shares in the euro zone

Increased weighting in stock indices due to higher free float

Further expansion of (equity) research coverage

Situation as at 15 Dec. 2004 for KBC (old) and Almanij; as at 14 Mar. 2005 for KBC (new)

KBC (old) Almanij KBC (new)

Market capitalization (in EUR) 15 bn 10 bn 24 bn

Free float

% of shares outstandingSize, bn EURDaily traded volume (Ytd, m EUR)

31%5 bn18 m

29%3 bn8 m

46%11 bn51 m

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Research coverage

104

Sollicited research coverage