Rates Markets

1. Rates Markets Graham Bird, MD - Global Head of Rates Markets 11 December 2003

2. Rates Markets - Trading Activities Rates Distribution & Origination Short-Term Product Government Bonds Govt & Agency Origination Derivatives Rates Markets’ vision is to grow client-driven revenues combined with a relative value approach to trading Rates Research

3. Main themes revenues in Commercial Banking Books determined primarily by shape of yield curve and short-term interest rates rate direction is largely counter-cyclical to economic developments revenues are negatively correlated with other Value Centres (e.g. defaults) and BUs (e/g. Corp.Finance.) revenues from Commercial Banking Books show low volatility Rates markets strategic direction increasing dedicated short-term distribution capability targeted at specific investor groups reduce dependency on yield-curve levels and shape by increasing proportion of client-driven revenues Commercial Banking Books Banking Book Revenues (2000 = 100) 160 140 120 100 80 60 40 20 0 2000 2001 2002 2003E

4. Main themes increased client-driven revenues decreasing margins per trade increase importance of market-share (Economies of Scale) and margin retention Rates markets strategic direction competitive offering and effective product delivery leading to increased market share and associated leverage optimisation of pricing and price-dissemination technology to further increase market share on electronic trading platforms centralisation of back office infrastructure to reduce cost per ticket - completed for derivatives relative-value approach to trading Market Making Client-driven Revenues (2000 = 100)

5. Main themes size of the market continuing to increase with a plethora of new product variations decreasing time-to-market leading to increasing rate of commoditisation - margins driven to levels on flow products more quickly Rates markets strategic direction providing more products to selected client base and increasing the proportion of tailor-made client solutions expanding product range and increasing deal volume per product type innovation by boosting new product introductions, such as: weather derivatives (2001 introduction) inflation products (2002 introduction) commodity derivatives (2003 introduction) Structured Products Client revenues from newly introduced product classes (2000 = 100)

6. Enhanced Market Positions 3rd best derivatives bank overall and top ranked the bank in 8 separate categories End User Survey June 2003 3rd largest market share with higher share-of-wallet Interest Rate Derivatives Global Top Tier 2nd overall in FX Forwards Best Bank Award June 2003 • ABN AMRO is the key gainer in this year's Risk magazine poll of derivatives users, the most closely followed industry survey of its kind • the survey shows that ABN AMRO has a strong corporate client base in Europe, and it is making inroads into the US market and the asset manager user base • Greenwich noted in its latest report that ABN AMRO’s penetration is improving with and deepening European relationships • Best Bank Award from FX Week showed encouraging result - improved one placing from previous year • no 2 best bank in FX Forwards (total votes), no 1 best bank with corporates and investors .

7. Enhanced Market Positions • Ranked No. 1 for European Economic Research in most recent Extel Survey • Major Liquidity Provider: No. 2 in Bund auctions, top 3 in EU auctions overall • No.3 ranked market maker in execution of European Govt Bonds on TradeWeb • Lead managed €38bn EU Sovereign syndicated deals in 2003 year to date. (Finland, Belgium, Austria, Holland, Portugal, Denmark) • Strong presence in European and US Agency markets • Specialist global distribution team of 57 sales staff • Active participant in multi-contributor and proprietary E-commerce platforms; over 2000 client institutions and 10 000 users globally E-commerce platforms • Of 22 dealers on TradeWeb in European Govts, ABN AMRO is: • No. 4 in Enquires • No. 3 in trades done • No.2 in hit ratio • No.4 in time taken to respond to enquires. Primary dealerships • United States • United Kingdom • France • Italy • Spain • Holland • Belgium • Austria • Ireland • Sweden • Finland • Czech Republic • Poland • Portugal • South Africa • Argentina • Colombia • India • Thailand • Australia* • Greece1 • Norway1 • Germany* • Denmark* * Primary dealer for Federal and State Governments in Australia, no primary dealers in Denmark and Germany 1 Also trade, not as primary dealer

8. Accelerated Profitable Growth • Enhance mature, volume-driven business • Expand the distribution capability and invest in technology for Money Markets and Repo Trading • Expand the technology platform for Government Bond Trading • Expand the geographical scope of Derivatives distribution and upgrade the front-to-back infrastructure for vanilla derivatives • Building out material new growth spikes • Expand the trading and distribution capability for Commodity Derivatives • Expand the trading and distribution capability for Hybrid derivatives (cross Credit and Rates) • Grow revenues from exotic interest rate derivatives and `new’ structured products (such as dynamic guarantees)

9. Summary • Client-driven revenues increasing • Revenues from newly introduced products increasing • Product positions in key markets increasing • Margins decreasing, particularly on flow products • Transaction volumes increasing • Technology critical for efficient product delivery • Innovation and product replication increasingly important