Positioning the ABN AMRO wholesale banking franchise

1. Positioning the ABN AMRO wholesale banking franchise Piero Overmars Member of the Managing Board Head of Global Markets Credit Suisse Investment Banking and Diversified Financials Conference 2006 London, 1 March 2006

2. Overview • Significantly improved performance by wholesale in 2005 • Drivers of the performance uplift in 2005 • Opening up wholesale will continue the positive momentum • Further improvement – our commitments • Future drivers of growth

3. A significantly improved performance in 2005

4. In 2005 WCS delivered a material improvement in revenue, operating result and consequently Efficiency Ratio vs 2004 However, an Efficiency Ratio of 88% still leaves the wholesale franchise vulnerable to cyclical movements We have delivered an uplift over 2004 2004 2005 ∆ • Commercial Banking • Fixed Income, Futures, FX • Equities and Inv. Banking • Other • Total operating income • Operating costs • Operating result • Net operating profit • RWAs (EUR bln) • Efficiency ratio • 1,976 • 1,822 • 1,456 • 87 • 5,341 • 4,699 • 642 • 705 • 77.0 • 88.0% • 7.8% • 34.9% • 5.4% • -36.0% • 13.6% • 6.7% • 114.0% • 161.1% • 5.6% • 1,833 • 1,351 • 1,382 • 136 • 4,702 • 4,402 • 300 • 270 • 72.9 • 93.6% Note: IFRS basis. Excludes Private Equity. All 2004 figures are as per relevant press releases, excluding the 2004 restructuring charge. Not corrected for disposals and exceptionals. See Appendix for detailed breakdown of product categories

5. 2005 delivered an operating result uplift and an efficiency ratio improvement in loss-making product areas Reduced dependency on Treasury and Lending - revenue shift towards Fixed Income & Treasury and Equities & Equity-related In the first year of Transaction Banking as a cross-SBU product group we succeeded in moving that product area close to profitability Improvements in 2004 loss-making product areas Efficiency Ratio 2004 and 2005 (%) Lending Transaction Banking Equities & Equity-related Fixed Income & Treasury

6. Drivers of performance uplift

7. Delivering the wholesale agenda Rationalisation of resources Group synergies Growth initiatives • Capital • Services • Front Office • Transaction Banking • Consumer & Commercial Client segments - Empresas - LaSalle - BU Netherlands • Private Investor Product (PIP) • Derivatives Step Change programme • Network Leverage • Investment Banking Agenda • Asia Strategy • Trading

8. We have invested in derivatives product development, sales, marketing and coverage: New hires and upskilling our current staff Spreading derivatives literacy across WCS and related support functions Formed Derivatives Sales & Solutions Group to drive sales capability Upgraded risk processes and improved IT infrastructure Co-located corporate derivatives in Equity Capital Markets Awarded 2005 “House of the Year” for credit derivatives by Structured Products Awarded 2005 “Best Bank” for Structured FX products by FX Week Case Study: Derivatives Step Change Structured Derivatives development (EUR mln)

9. Since 2001, we have reduced our business-as-usual services and other support costs to free up investment in front office staff and services investment We announced a restructuring in December 2004 aimed at exiting 1,100 FTEs, which will be completed in Q1 2006 This has freed up resources for investment in Derivatives, in IT to upgrade trading infrastructure (EUR 95 mln), and in mandatory compliance activities (Basel II, Sarbanes Oxley, etc., EUR 75 mln) Case study:Restricting business-as-usual costs WCS cost development (EUR mln)

10. During 2005 in the home markets, we have: Merged coverage of WCS and BU Netherlands commercial clients Integrated WCS and LaSalle corporate distribution and enhanced the LaSalle sales force with derivatives hires and training Driven up derivatives revenues from BU Brazil clients by over 50% Our Private Investor Product group has also worked closely with the other Group SBUs to deliver a strong year on year improvement Although from a low base, 2005 demonstrated the potential of our strategy to cascade the innovation from Global Clients to our chosen sweet spot clients Case Study:Driving Group synergies +23% Sales of WCS FI and FX derivatives products to non-WCS clients 2004-5% (EUR mln) Sales of WCS Private Investor products to C&CC clients 2004-5 (EUR mln)

11. Opening up wholesale will continue the positive momentum

12. Unbundling will deliver continued performance improvement • In 2005 we have delivered a significant turnaround in WCS performance • Opening up WCS to the Group will result in greater leverage of wholesale banking products across a wider set of clients • The unbundling will contribute to a continued improvement in the ER • Arm’s length interaction between Global Markets and the Client Units will increase the transparency of the product economics • Clarity on which products we can consistently deliver at the right price and the right quality to our sweet spot clients • For products that do not meet this standard, we will pursue alternative solutions, potentially including exit, downsizing, joint ventures, in-sourcing and others as necessary

13. We have unbundled WCS to deliver on the Group’s sweet spot strategy Top Private Clients Product Innovation Product Innovation MNCs Sweet Spot Private Client Mass Affluent Mid-Market / FIs Scale/Feeder Scale/Feeder Mass Retail Small Business Consumer Commercial • Global Clients • 550 former WCS clients with most demanding needs, inspiring product innovation • Regional Client Units • Serving the former WCS’ commercial clients better and more efficiently • Global Markets • Product platform, developing and delivering products for all the Group’s clients

14. New organisation: playing systematically to our strengths NL Europe North America Latin America Asia Private Clients Global Clients Consumer Client Segment Commercial Client Segment Local Products Local Products Local Products Local Products Local Products Local Products M&A ECM Global Markets Transaction Banking Asset Management Services Group Functions • Global Markets includes fixed income (trading and capital markets), FX, treasury, equity, structured lending and derivatives • In line with our client-led strategy, Global Markets’ activities will be reported under Client Units and Group Functions

15. Further improvement – our commitments

16. What are we doing in 2006? • Following through on our revenue growth initiatives, Derivatives, Equities and Fixed Income, facilitated by the new organisation • Using the local cross-sell expertise of the Regional Client Units to drive up the penetration of the Global Markets products to all the Group’s clients • Continuing the improvements we have made with Global Clients through more focused coverage • Bringing capital markets solutions to our clients and increasing our capital velocity • Following through on cost reduction initiatives in the new Services organisation • Delivering further run rate savings through continued outsourcing, procurement and real estate programmes • To fund investment in growth initiatives, IT infrastructure, compliance and compensation for our critical talent

17. Commitments • Capital constraint and minimum returns for Global Clients • RWAs on average less than 10% of Group total by end 2006 and beyond, with a return above our 10.5% assumed cost of equity • Improved efficiency ratio for Global Markets • Improving by at least 5 percentage points in 2006, and below 80% by end 2008 • Improved efficiency ratio for commercial clients in 2006 • To be achieved through revenue uplift and tight cost control in the Regional Client Units (targets to be confirmed with Q1 2006 results)

18. Future drivers of growth

19. Rates markets main themes Short Term Our response Observations • Global liquidity conditions remain expansive, despite central banks pushing rates higher in 2006 • Increasing risk appetite – investor demand for new asset classes and products within asset classes • Japan - BoJ expected to eliminate quantitative easing and raise rates in 2006 • Pension fund reform/move to ALM frameworks gathering momentum • We have focused on being an idea driven niche unit, particularly in ALM area • By putting an increasing focus on trading, ABN AMRO has been able to combat margin compression • ABN AMRO has built new JPY business to take advantage of our perceived growing importance of the Yen market over the next years

20. Credit markets main themes Short Term Our response Observations • Credit fundamentals remain supportive for the continuation of tight spreads, but M&A activity will continue to cause spread shocks • Demand for credit product remains healthy albeit selective (eg structured credit due to diversification benefits) • Yield hunting has supported demand for HY and EM assets • Increased liquidity - a result of growing influence of CDS indices and electronic trading • Focus on leveraging electronic platforms, freeing traders to offer integrated credit trading products • Expanded our innovative product set through a newly created Structured Finance Trading team • Expanded our financial sponsor coverage’s Leveraged Finance and High Yield activity • Expansion of Structured Capital platforms with strong distribution focus covering Inf. Cap. / SF and Real Estate Finance

21. Emerging markets main themes Short Term Our response Observations • Increased corporate issuance as sovereigns are running surpluses on budget and current accounts • Application of credit derivatives to create synthetic assets • Hedge funds to play an increased role in project and principal financing • Growth of asset securitisation, CDO and CLO in view of Basel II • Growing investor acceptance and appetite for local market assets • Integrated our local markets currency product sales and trading to provide a one-stop shop for clients • We are also expanding the product offer (e.g. EM asset securitisation, CLO/CDO), especially focusing on Access products leveraging the Bank’s network • As Emerging Market clients’ needs become increasingly sophisticated, ABN AMRO offers them tailored solutions across equities, fixed income and FX

22. Foreign exchange marketsmain themes Short Term Our response Observations • The slump in the ISK has rung alarm bells in the FX market about ‘carry trades’ but there is no sign of lasting knock-on effects • Risks could emerge from the huge volume of speculative open interest • Implied volume remains very low in most G10 FX , with market focusing on other FX pairs to generate risk • Continued margin compression driving business to e-platforms • We have automated a greater volume of business, focusing on the development of more sophisticated structured FX solutions eg. algorithmic trading, FX overlay • We have increased our risk appetite through smarter proprietary trading • Hubbing our trading desks has improved efficiency whilst bringing clients 24 hour trading in over 150 currencies

23. Equity markets main themes Short Term Our response Observations • Equity Markets to remain robust (client activity levels will continue at these high levels) • Increase in market volatility and continuation of recent high levels of M&A transactions • Continued growth of hedge funds and the range of their activities • Unbundling to go from a UK regulatory requirement to a global market standard • Seeing the benefits from our integrated equity platform, upgrading trading capabilities, increased automation and new equity derivative products • Attracting sustainable Hedge Fund business, we benefit from higher commissions of the broader product range Hedge Funds demand • We have developed and marketed innovative and commercially focused research that has received many market accolades

24. Derivatives markets main themes Short Term Our response Observations • Rise in equity markets has increased demand for structured equity products • High commodity prices driving demand for commodity hedging as well as investment products • Tighter credit spreads encouraging investors to leverage credit exposure – new products such as Leveraged Super Senior and Forward CDOs • Managing wealth for an ageing population leads to demand for a variety of new products with longevity risk and inflation sensitivity • Structured Equity is for us an established strength • In 2004 and 2005 we established a commodity derivatives capability which is now fully functioning • We are at the leading edge with structured credit derivatives • We have developed both inflation and insurance risk management capability and an initial series of transactions has been completed

25. Continuing industry growth drivers Continuing Trends Description Implications • Product lifecycles dramatically shortened, limiting the window in which to capture attractive returns • Premium on innovation, product pipeline and rapid industrialisation of commoditising business lines Commoditis-ation • Proliferation of products (OTC, structured, exchange traded) and end-users (retail, institutional, corporates) • Scope and depth of product set and distribution channels significantly increased Growth of derivatives • Investor/client groups that did not exist five years ago are now the ‘must serve’ customer segments (mid-market, FI, Public Sector, EM commercial clients…) • Effective client segmentation and account planning across products and geographies • Building capabilities to capture high growth opportunities New client segments

26. Commoditisation – cash equity example Continuing Trends A commoditising product - Equity commissions, US vs Europe Value chain unbundling - the story so far • Basis Points • Regulatory concern that fund managers provide no transparency on brokerage services purchased with client funds • Institutional investors have offered to separate the purchasing of execution and content. Commission Sharing Agreements (CSA) have emerged as the preferred method of separation • Fund managers agree to focus almost all execution with a small number of brokers • These brokers agree to pay a pre-agreed percentage of that commission to other brokers who have provided the fund manager with non-execution services • Europe • US • Year • Cash equity commissions have declined rapidly as cheaper execution channels have emerged and buyer power increased • Unbundling looks set to accelerate this process Source: Merrill Lynch

27. Why value chain unbundling is attractive for ABN AMRO Continuing Trends Implications of cash equity unbundling • ABN AMRO has been an early adopter and advocate of unbundling • An unbundled business model is attractive for ABN AMRO • Seeing the benefits from our integrated equity platform and focus on execution • Every major client we have approached who is setting up CSAs has told us we will be on their list • In a pre-unbundled world fund managers demanded full ‘waterfront’ research services • This has disadvantaged mid-tier players who had to support the same large cost base of the market leaders with lower revenues, whilst only being rewarded for research in sectors where they were strong • CSAs have allowed brokers to scale the research product to where they have a competitive advantage, without incurring high de minimus cost of ‘waterfront’ coverage • With CSAs, excellence in execution is critical • Firms on the execution lists will see growth in market share • Firms who are excluded will see a rapid contraction

28. Derivatives – developing and supporting client demand 12.4 128% p.a. 8.4 5.4 105% p.a. 3.8 2.7 2.2 1.6 0.9 0.6 1H 01 2H 01 1H02 2H 02 1H 03 2H 03 1H 04 1H 05 2H 04 Continuing Trends Credit Derivatives – notional outstandings, 2001 – 1H 2005, US$Trn • Overall growth in derivatives revenues reflects the emergence, and rapid acceptance, of new asset classes and continued innovation, particularly in higher margin structured products • We are committed to further developing our derivatives offer across the client spectrum • Serving our Global Clients and institutional investors with the innovative derivatives solutions they demand e.g. dedicated, cross asset class, Derivative Sales and Solution Group • Using our local intimacy to bring these products to sweet spot client segment – both mid-market and FIs. Evolution and replication of in-house best practice to new clients e.g. PIP to commercial Source: ISDA

29. Serving new client segments Continuing Trends • Financial sponsors were the key client driver behind the upturn in M&A over 2005 • Financial sponsor backed acquisitions, globally, were valued at $346bn in 2005, a 40% increase on 2004 • Leveraged loans have become the most important source of funding • Global Markets is well placed to serve this segment through the sweet spot strategy • Well placed as it fits with our longstanding credit structuring & distribution expertise • Financial sponsor backed M&A volume typically focused on the mid market • Network clear competitive advantage in originating and financing deals Global financial sponsor-backed acquisition volume, $bn Global financial sponsor-backed loan financing volume, $bn Source: ABN AMRO Equity Research, Dealogic Loanware

30. Conclusions • WCS improved significantly in 2005 on the back of growth initiatives, resource rationalisation and Group synergies • Efficiency ratio improved from 93.6% to 88.0%, but will improve further • Opening up WCS to the Group – WCS unbundled into three groups; Global Markets, Global Clients and Regional Client Units • Specific performance commitments made for each • We are well positioned to drive further growth in 2006 and beyond by aligning ourselves with identified market trends • In particular : emerging markets; new client segments; leveraged finance; equity unbundling; ALM and derivative product growth

31. Appendix:Definition product groups

32. Definition of the product groups • Commercial Banking : Loan products and all transaction banking services. In the presentation, this is split between ‘Lending’ and ‘Transaction Banking’ • Fixed Income, Futures and FX (FIFF) : Fixed income trading activities, structured derivatives, futures and foreign exchange. In the presentation, all of this except futures is included in ‘Fixed Income & Treasury’; futures is included in ‘Other’ • Equities & Investment Banking : Cash equities, equity derivatives, debt and equity origination and corporate finance. In the presentation, all of this except debt origination is shown as ‘Equity & Equity-related’; debt origination is included in ‘Fixed Income & Treasury’