KBC Bank _ Insurance Group

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					KBC Group
   Company presentation
   Spring 2005

                          Web site: www.kbc.com

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

                          ISIN code: BE0003565737
    Contact information

    Investor Relations Office :

    Luc Cool
    Nele Kindt
    Marina Kanamori

    Tel.: +32 2 429 49 16
    investor.relations @ kbc.com
    Surf to www.kbc.com for the latest update.




2
                   Disclaimer


    n   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.
    n   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.
    n   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.
    n   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.




3
      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




4
Foto gebouw

              1   Company profile
                   Considerable scale in Euroland
                      Euroland top-30 banks, ranking by market cap *




                      KBC Group : 24 bn euros




    * DJ Euro Stoxx Banks constituents as at 14 March 2005
6
                    Shareholder structure
                                                                             Free float
     CERA/Almancora
         27.3%

          MRBB                      Free float
          11.6%                      46.6%

      Other committed
    shareholders 11.4%


                         KBC
                  (own shares: 3.3%)

             Situation as of 3-Mar-05
                  * Including ESOP hedge                             Situation as of 31-Dec-04
                                                                     (before merger with Almanij)


      n   KBC is majority-owned by a group of committed shareholders providing continuity to pursue long-
          term strategic goals
      n   Core holders include the Cera/Almancora Group (co-operative investment company), a farmers’
          association (MRBB) and a syndicate of industrialist families


7
                   Business portfolio
                                   Revenue breakdown
                                   (2004 pro forma new Group, excl. group items)


                        Capital markets        Gevaert

                   International                                            Belgium
                   corporate

              European
              private banking

                                  CEE

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


8
                   Top-3 player in Belgium
    Market share:




                                                                               31-Dec-03

     n   Consolidated banking landscape (80% of market held by top-4 banks)
     n   Market highly receptive to cross-selling of AM & insurance products
         (the bancassurance model dominates)



9
                    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


     n   KBC Group is one of the largest international players in the region
     n   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




10
                         Top-3 position in the CEE region
                 Banking                                                                    Insurance
         Czech Republic:                                                        Czech Republic:
         Market share: 21% (No. 2)                                              Life M share: 8% (No. 5)
         Inhabitants: 10 m                                                      Non-life M share: 4% (No. 6)
         Total assets:18 bn EUR

         Slovakia:                                                              Slovakia:
         Market share: 6% (No. 4)                                               Life M share: 4% (No. 8)
         Inhabitants: 5 m                                                       Non-life M share: 2% (No. 7)
         Total assets: 2 bn EUR

         Hungary:                                                               Hungary:
         Market share: 11% (No. 2)                                              Life M share: 3% (No. 7)
         Inhabitants: 10 m                                                      Non-life M share: 4% (no 6)
         Total assets: 7 bn EUR

         Poland:                                                                Poland:
         Market share: 5% (No. 8)                                               Life M share: 2% (No. 7)
         Inhabitants: 38 m                                                      Non-life M share: 12% (No. 2)
         Total assets: 5 bn EUR

         Slovenia:                                                              Slovenia:
         Minority interest (34%)                                                Life M share: 6% (No. 5)
         Inhabitants: 2 m
         Market share: 41% (No. 1)

     n      KBC Group invested ± 3.6 bn to achieve a prominent position in a growth market
            of ± 65 m inhabitants
     n      Especially in Poland, KBC is looking for external growth (lack of scale)
11
                     European private banking network
                                                                        Netherlands:
                                                                        Theodoor Gilissen
                                                                         Acquired in ’03 – participation: 100%

                                                                        Germany:
                                                                        Merck Finck & Co
     UK:                                                                Acquired in ’99 – participation: 100%
     Brown Shipley
     Acquired in ’89 – participation: 100%
                                                                        Switzerland:
                                                                        Kredietbank (Suisse)
     Belgium:                                                           Historical presence
     Puilaetco private bankers
     Acquired in ’04 – participation: 100%                              France:
                                                                        KBL France
     Luxembourg:                                                        Acquired in ’98 – participation: 100%
     Kredietbank Luxembourg
     Parent company                                                     Monaco:
                                                                        KB Luxembourg (Monaco)
     Spain:                                                             Historical presence
     Banco Urquijo
     Acquired in ’98 – participation: 100%
                                                                        Italy:
                                                                        Fumagalli Soldan
                                                                        Acquired in ’01 – participation: 95%


     n   Since ‘98, KBC Group (KBL) has developed a private banking network throughout
         Western-Euope, anticipating erosion of its offshore activities in Luxembourg
     n   AUM grew from 18 bn to c. 44 bn (appx. 70% managed outside Luxembourg)

12
                  Solid performance

     KBC pre-merger:
                                                                Dec 02 Dec 03 Dec 04   Target

                             Return on equity                    13%    13%    18%      16%
     Profitability
                                EPS growth                       +1%    +8%    +54%     +10%


                         Cost/income, banking                    65%    65%    60%      58%
      Efficiency
                      Combined ratio, insurance                 101%    96%    95%      95%
            Combined ratio, insurance, excluding reinsurance.


                              Tier-1, banking                    8.8%   9.5%   10.1%    >8%
      Solvency
                          Solvency, insurance                   320%    316%   389%    >200%
             Solvency, insurance, including unrealized gains.




13
                        Solid performance (pro forma)
     KBC post-merger (pro-forma):
                                                                             Dec 02 Dec 03 Dec 04
                                             Return on equity                   10%          12%          14%
                  Profitability
                                                EPS growth                      +2%         +26%         +29%


                                         Cost/income, banking                   66%          66%          63%
                   Efficiency
                                      Combined ratio, insurance                101%          96%          95%
                  Combined ratio, insurance, excluding reinsurance.


                                              Tier-1, banking                   8.8%        9.6%        10.0%
                   Solvency
                                          Solvency, insurance                  320%         316%         389%
                  Solvency, insurance, including unrealized gains.




      * Non-updated targets used by the KBC Bank and Insurance Group before the merger with Almanij in March 2005
14
Foto gebouw

              2   Strategy and earnings
                  drivers
                  Strategy headlines
     n   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:
         l    increased visibility and liquidity
         l    realization of group synergies
     n   Flexibility to continue current strategies:
         l    Leverage on bancassurance model and private banking expertise
         l    Core geographic focus on Belgium, CEE and private banking throughout Europe
         l    Continued good prospects for Belgian market
         l    CEE and European private banking to remain long-term earnings drivers
         l    Continued quest for (cost) synergies, partly through intra- and cross-group co-
              sourcing for back-office processes
         l    Balanced risk profile through diversified business portfolio
         l    Solid solvency levels and credit ratings




16
                    Earnings drivers in Belgium - overview
     Do not underestimate the market:                KBC Group is well positioned:

      n   Consolidated banking market (80% of        n   Top-3 market position, esp. strong in
          assets held by Top 4)                          Northern region (one of the wealthiest
      n   Savings ratio amongst highest in the           regions in the EU)
          world (every year, ca. 15% of GDP          n   Innovative product offering in retail AM
          flows into fin. assets)                        (steadily increasing market share
      n   Market highly receptive to cross-selling       throughout the past 10 yrs.)
          of AM & insurance                          n   Performing bancassurance distribution
      n   Growth trend for mortgages, AM and life        model (life reserves grew >20% p.a.
          insurance business of about 10% per            over last 3 yrs.)
          year expected to continu                   n   Cost efficiency improvement potential
      n   Credit quality has proven to be solid          (on the back of business process
          over the cycle                                 redesigning and co-sourcing of back
                                                         offices processes with other banks)




17
                   Earning drivers in CEE - overview
     Strong market growth momentum:                 KBC Group is well positioned:
     §   Nom. GDP growth in 2005 at                 §   Solid market position in retail and
         6.5%, outgrowing EMU by 3.3%                   corporate businesses (excl. banking in
                                                        Poland)
     §   Ongoing catch-up in product
         penetration (currently, an avg. 45%        §   Competitive advantage in enhancing cross
         for banking accounts and 5% for                -selling of asset management and
         mortgages)                                     insurance products
     §   Mortgage volumes growing at double-        n   C/I still on high side, allowing for further
         digit pace (up 51% on avg. in 2004)            improvement
     §   Financial sector could grow five-fold if   n   Adequately provisioned balance sheet
         financial assets to GDP were to reach          (risks under control)
         current levels of S. Europe                §   Geographical exposure entirely within EU,
                                                        limiting risk substantially
                                                    §   Availability of capital within the Group




18
                     Above average GDP growth, CEE
                   Czech Republic                                    Slovakia
     Real GDP growth + inflation - KBC estimates   Real GDP growth + inflation - KBC estimates
                                                        12.5%
           6.8%            5.6%            6.8%                         8.5%             8.0
           3.2%




                        Hungary                                       Poland
     Real GDP growth + inflation - KBC estimates   Real GDP growth + inflation - KBC estimates
          10.7%                                          8.9%
                           8.1%            8.3%                          7.7%            6.5%




19
                      Earnings drivers in private banking
     Changing market environment:                    KBC Group is well positioned:

     n   Shift in customer preference towards        n   Strong relationship-based approach, open
         new investment concepts: open                   architecture concept and add-on of the
         architecture, alternative investments,          product expertise of KBC AM to the tailor-
         financial planning..                            made services of KBL epb
     n   Progressively growing requirements          n   Stringent compliance infrastructure,
         from regulators (increasing vulnerability       centrally monitored from Luxembourg
         of smaller players)
     n   Pressure on profitability (although         n   Greatly improved efficiency
         decent performance was seen again in            (implementation of large scale
         Europe in 2004)                                 rationalization program), to be further
                                                         fueled by the realization of merger
                                                         synergies within an enlarged KBC Group




20
Foto gebouw

              3   2004
                  Financial highlights
              Headlines
              Results KBC Bank & Insurance (pre merger)
                - Financial performance
Foto gebouw     - Areas of activity
              Results KBL epb
              Results Gevaert
              Financial outlook for 2005
              Merger synergies – update
                   Quick reminder
     n   Until 31-Dec-04:
                                         Almanij


                          KBC                        KBL                       Gevaert
                    Bank & Insurance       European Private Bankers

            KBC                KBC                    KBC
            Bank             Insurance         Asset Management



     n   As of 01-Jan-05:

                                       KBC Group NV



          KBC           KBC              KBC                 KBL                Gevaert
          Bank       Insurance           AM         European Private Bankers



23
                        Strong earnings momentum

                                    KBC Bank & Insurance

                                                 Key figures       2002    2003      2004
                  Net profit
           in m EUR                              ROE                13%     13%       18%

                               +57%              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%


       n     Net profit FY2004 of 1 758 m
       n     Strong year-on-year growth (+57%) and ROE (18%), driven by
             solid revenue dynamics and successful risk- and cost management

     * Organic growth
24
                      Outperforming the market


               KBC Bank & Insurance                          Peer group *

                         CAGR: +20%                             CAGR: +6%




       n   Earnings growth at sustained high level compared to sector




     * DJ Euro Stoxx Banks universe                            CAGR = compound average growth rate
25
                KBC Group (mergco)
                                              Key figures, 2004       KBC      KBC
                 Net profit                                           (Old)   (New)
     in m EUR                                 Revenues                6 999    7 880
                                              Costs                  -4 306   -5 002
                                              Operating result       2 693    2 879
                                              Provisions&value adj    -333     -336
                                              Extraordinary            +61     -130
                                              Pre-tax result         2 421    2 413
                                              Taxes                   -490     -541
                                              Minorities              -172     -195
                                              Net profit             1 758    1 682

     n   Pro forma net profit FY2004 of 1 682 m
     n   Major differences with KBC Bank & Insurance’s results:
          l Elimination of gains on the sale of Almanij Group shares (82 m)

          l 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
          l Add-on of profit contribution of Gevaert (-36m) , adversely impacted by the
            one-off divestment loss of Agfa Gevaert (81 m)
26
                    Simulated impact of IFRS standards
            Impact on P/L: -67 m *                       Impact on equity: + 426 m *
                                                       in m EUR
     in m EUR




     * Impact on KBC Mergco’s 2004 pro-forma figures
27
                       Growing dividend

                                         Dividend per KBC share *
                                     EUR

                                                                  +12%




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




     * 4.7% for ex-Almanij shares that were converted to KBC shares
28
              Headlines
              Results KBC Bank & Insurance (pre merger)
                - Financial performance
Foto gebouw     - Areas of activity
              Results KBL European Private Bankers
              Results Gevaert
              Financial outlook for 2005
              Merger synergies – update
                Key points
          Top-line growth, banking         Premium growth, insurance
     In m EUR                          In m EUR



                          +6%
                                                              +33% org




        Investment return, insurance        Loan-loss ratio, banking
                                       In bn EUR

                                                    - 50 bp

                        - 70bp




30
           Key points
     Combined ratio, non-life    Cost/income ratio, banking




               - 1pp                        - 5pp




     Return on equity, banking   Return on equity, insurance




               +8pp                         -1pp




31
                Solid growth in banking revenues
                 Banking income
     FY 2004       (in m EUR)
                                     n   Total FY04 income up 6% y-o-y :
                             6 011
        5 756      5 655                  l   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
                                          l   Robust financial market activity (+24%),
                                              mainly in the first half of the year. Capital
                                              gains on investments (365m) in line with
                                              2003
                                          l   Interest income up 1% owing to volume
                                              growth. NIM* slightly down to 1.67%
                                              from 1.73% in 2003 (vs. 1.67% in 2002)
                                     Ø   Strong Q4 thanks to a successful marketing
                                         campaign (investment products) in Belgium
                                         and ‘normalized’ trading levels (after weak
                                         Q3)




                                               NIM = net interest margin
32
                       Favourable growth in banking assets
                               Customer loans
     End of 2004                 (in bn EUR)

                                               106.6               n   Customer deposits up 6%*
                   98.8
                                 90.3                              n   Customer loans up 7%*:
                                                                        l  Corporate book* up 4% (down in 2003,
                                                                           partly due to impairments in Poland)
                                                                        l  Solid mortgage growth :
                                                                                               O/S*      Chg        Chg
                                                                                               in bn     2003       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
      Note : mortgage growth adjusted for currency depreciations
33
        Spread development

          Interest margin,      Spreads on outstanding loans,
     Belgium banking business     Belgium banking business




                                         trend




                                        trend




34
                       Strong growth in premium income
     FY 2004               Premium income
                              (in m EUR)

                                                  5 037   n   Sustained robust growth in Life:
                                                               l  Up 45% y-o-y in organic terms
                                                               l  Very strong in Belgium (+47%), outgrowing
                               3 486                              the market on the back of successful
             3 156                                                business model (market share up from
                                                                  13% to 15%, at 31% in unit-linked
                                                                  business)
                                                               l  Solid growth in CEE (+28%). Market share
                                                                  up in Hungary and Slovenia, down in
                                                                  Poland and CR.
                                                          n   Non-life: up 5% in organic terms *
                                                               l  Primary business in Belgium growing
                                                                  (+7%) slightly above claims inflation (stable
                                                                  market share)
                                                               l  Expansion in CEE: premiums up 11% y-o-y
                                                                  in organic terms. Market share stable in
                                                                  Hungary and SR, down in Poland and CR.
                                                               l  Drop in reinsurance exposure
                                                                  (premium income: -3% y-o-y)

     * Extension of consolidation scope in 2004
35
                        Lower investment yields, insurance

                       Interest income, insurance                    Total Investment income, insurance


                                                                         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
36
                        Low loan-loss charges
                         Loan-loss provisions
     FY 2004                  (in m EUR)

                                                         n       Loan-loss provisions at very low level (-71% y-o-y)
                              676
                                                                                     Gross
                                                                                                  Loss        Loss
                                                                      Customer       loans
                                                                                                  ratio*      ratio*
                                                                      loan book      (in bn
            465                                                                                   FY03        FY04
                                                                                     EUR)
                                                                        Belgium          52.2      0.24%       0.09%

                                                                    CR/Slovakia           7.1      0.34%       0.26%
                                                 199
                                                                        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%




     * Net specific provisions to average gross customer loans
37
               Favourable non-life claims charge
     FY 2004
                                  n   Favourable development in all markets:
                 Claims ratio
          (% of net premium income)                    Premium
                                                                  Claims       Claims
                                                        income
                                                                   ratio        ratio
                                                          (in m
                                                                  FY03         FY04
                                                         EUR)
                                            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%




38
                      Banking expenses well controlled
                        Banking expenses
     FY 2004               (in m EUR)

         3                 3 695             3 636   n   Total cost basis down 2% y-o-y :
         751
                                                          l   In Belgium: -4% y-o-y (-78 m), headcount
                                                              reduced y-o-y by 800 FTEs
                                                          l   CEE: -1% y-o-y (-9 m).
                                                              In Poland, headcount reduced
                                                              by 1 275 FTEs (exceeding initial target)
                                                          l   Elsewhere: +6% (+29 m),
                                                              mainly related to trading bonuses
                                                     n   Cost/income ratio significantly improved from
                                                         65% to 60%
                                                     Ø   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
39
                     Reducing product complexity - update
     Product simplification programme - banking, Belgium

         Area of      Actions   Examples                        Realized   Realization   Pending
        business      planned                                              in progress

        Payments                Reducing no of types of
                        59      credit cards, transaction        77%          19%          5%
         services               forms,etc

       Investment               Reducing no of savings
                       129      accounts, high complex           78%          23%          0%
        products                orders,etc
        Home, car               Reducing no of mortgages,
        and travel      45      no more floating rates for       89%          11%          0%
         services               consumer loans,etc
                                Reduction in interest rate
       Services to              formulas for cash facilities,
                       131                                       76%          18%          7%
       businesses               integrating types of
                                insurance policies,etc.

         TOTAL         364                                       78%          19%          3%




40
                             Co-sourcing initiatives - update

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


                                                  BE                                        GE

      ±12 m transactions p.a. from                                                         Transactions from DZ and its
      KBC's Belgian banking                                                                1 200 co-operative banks
      activities                                                        Fin-Force

                                                            shared processing platform
                                                            for cross-border payments
                                                                    transactions


                                                       Multi-bank platform based on high
                                                          performance straight-through
                                                       processing and compliant with new
                                                                 EU regulation

                 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) *
     * For competitivity reasons, no further details can be disclosed
41
                 Incremental intra-group synergies

     Cross-border synergies with CEE entities :
     n   Centralized card purchasing/processing (SiNSYS)
     n   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)
     n   Integrated int’l cash management product offering (W1SE), joint
         nostro/vostro proposal, centralized approach for cash handling, etc.
     n   KBC standards for retail distribution and bancassurance (Mercator)




42
              Headlines
              Results KBC Bank & Insurance (pre merger)
                - Financial performance
Foto gebouw     - Areas of activity
              Results KBL European Private Bankers
              Results Gevaert
              Financial outlook for 2005
              Merger synergies – update
                    Areas of activity overview
     Net profit contribution, in m EUR *




      * Pro forma
44
                  Belgian retail
                   Profit contribution
     FY 2004           (in m EUR)
                                         n   FY profit conribution of 582 m, up 19%,
                                             thanks to remarkable improvement in banking
                                             profitability. ROAC at 19%
                                   582   n   Banking result up 32%, driven by 4% revenue
                         490                 growth (margin pressure offset by asset
                                             growth and higher fee income in funds and
                                             insurance business), sustained cost control (-
          363                                2% expenses) and low level of problem loans
                                             (9 bp loss on RWA). Private banking
                                             contributing 49 m
                                         n   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
                                         Ø   Excellent performance in Q4 on the back of a
                                             succesful marketing campaign (investment
                                             products) and capital gains (offsetting
       FY 04 at a glance :                   impairment charges of preceding quarters)
          Revenues
          Expenses
          Credit risk

45
                Central and Eastern Europe
                   Profit contribution
     FY 2004           (in m EUR)
                                            n   FY profit contribution of 269 m, up from
                                                -132m in 2003, underpinned by the robust
                                      269       turnaround in Poland and solid operating
                                                performance on the other markets. ROAC
                                                14% (15% in banking)
                                            n   Banking at 244 m (vs. –131 m), thanks to
          108                                   solid revenue expansion (+11%), cost
                                                discipline (C/I down from 75% to 67%) and
                                                ‘normalized’ credit risk (loan-loss charges at
          …                                     48 bp)
                                            n   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%)
                       -132                 Ø   Q4 result below quarterly average due to
                                                various items: change in recognition of
                                                interest income and higher marketing costs
                                                (PL), seasonal effects in operating
        FY04 at a glance (organic):             expenditure and higher life reservation
           Revenues                             charges (CZ) and provisioning for legal
           Expenses                             disputes (HU).
           Credit risk

46
                         Key developments in CEE banking
                      Top-line growth *                                                    Cost/income ratio
                FY03      FY04
                                                                            FY03      FY04




                        Market shares                                                 Return on investment
                Dec-03          Dec-04        Avg deposits and loans                FY03     FY04




                                                                                                           n/r


     * Growth in local currency, after elimination of the yield on excess capital
47
              CEE, company overview
                         CEE
                                                               FY 04
                                                              (in m EUR)
     CSOB       K&H      KB      NLB   Insurance     (% chg y-o-y in local currency)




       816      405      317              217      Gross operating income
     (+10%)   (+18%)    (-2%)           (+257%)
      -471      -279      -244            - 191    General expenses
     (+0%)    (+10%)    (-11%)          (+210%)
      -32       -30      -41               -       Provisions
      -101      -16      +3                -2      Taxes & extraordinary
      212        79      35      79       24       Stand-alone profit
     (+5%)    (+121%)    (-)              (-)
      -32       -26       -6      -       +4       Adjustments, o/w yield
                                                   on excess capital, etc
      -19       -21       -4     -52       -4      Minority interests
       162       31      25       27      24       Profit contribution
     (+13%)   (+180%)    (-)              (-)      to Group
      17%      18%       8%       -       7%       Return on allocated cap


48
                    Asset management
     Assets under management                     Net change in assets, 2004
     (in bn EUR)

                                                               Retail funds, Belgium

                               107 bn                           Retail funds, CEE
                                        Corporate
 Belgium:             89 bn
   88%      81 bn                                                                Private assets, Belgium

                                                                  Institutional assets
                                        Retail
                                                                   Group assets


CEE:
                                                    Market share, retail funds
 5%
                                                           Belgium :                  31.5%
                                                           Czech Republic :           22.0%
                                                           Slovakia :                  7.7%
                                                           Hungary :                   9.4%
                                                           Poland :                    1.3%



49
                 Asset management
                  Profit contribution
     FY 2004          (in m EUR)
                                        n   FY profit contribution of 143 m (after
                                            allocation of distribution fees to retail
                                143         business), up 8%, underpinned by solid
                     132                    increase in AUM
         116                            n   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)
                                        n   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)
                                        n   Search for international expansion through
                                            third-party distribution of funds (0.5 bn
        FY 04 at a glance :                 gathered in 2004)
           Revenues                     Ø   Strong Q4 segment result (6% increase in
           Expenses                         AUM)
                                                                           Belgium :         CEE :
                                                                             88%              5%


50
       Market share in Belgium


     Mutual funds market – development of market shares

                                                  KBC



                                              Competitor A


                    Competitor B           Competitor C



                                   Rest of the market




51
                 SME and corporates
     FY 2004       Profit contribution
                       (in m EUR)
                                         n   FY profit contribution 378 m, up 72%,
                                             driven by improved operating performance
                               378           and substantially lower loan-loss charges.
                                             ROAC at 19%.
                                         n   Solid growth in banking on the back of a 5%
                                             revenue increase, stable expenditure level
        193         219                      and significant gain (112 m) from lower loan-
                                             loss provisions (28 bp on RWA vs. 62 bp in
                                             2003)
                                         n   Better return in re-insurance thanks to further
                                             improvement in underwriting performance
                                             (combined ratio of 98% vs. 100% in 2003)
                                         n   Remarkable profit increase in Belgium and in
                                             the global structured finance business. Also
                                             fine results from Ireland, the US and the
                                             diamond niche sector.
      FY 04 at a glance :
                                         Ø   Q4 segment results in line with previous
         Revenues
                                             quarters (somewhat higher risk-provisioning
         Expenses                            offset by higher fee income)
         Credit risk

52
        SME and corporates


     Profit contribution, geographical breakdown
                       (in m EUR)




53
                 Capital markets
     FY 2004     Profit contribution
                     (in m EUR)
                                 221
                                       n   FY profit contribution 221 m, up 76%,
                                           boosted by the pick-up of equity capital
                                           markets. ROAC at 20%.
                     126
                                       n   Revenues in ECM activity up 20% (with
          93                               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)
                                       n   Profit contribution of money and debt capital
                                           markets up 9% as a result of 7% increase in
                                           income and 5% increase in expenditure
                                       Ø   Q4 segment result back to ‘high average’ level
                                           after weak Q3 which was hurt by seasonal
                                           activity slowdown and adverse climate
       FY 04 at a glance :
          Revenues
          Expenses
54
                       Changes in activity reporting, 2005
     Changes as of 1Q 2005:
                                                                      Areas of activity in 2005: *
     n   Use of IFRS reporting standards
         (impact expected to be limited)                              1.   Retail bancassurance (mainly
                                                                           in Belgium)
     n   Integration of ‘Asset management’ business into
         retail and coporate divisions (separate details on           2.   Central and Eastern Europe
         asset management will be available)
                                                                      3.   Corporate services
     n   Additional areas: ‘KBL epb’ + ‘Gevaert’ (to be                    (SME and corporates)
         integrated in 2006)
     n   Allocation of capital:                                       4.   Market activities
          l   6.8% on RWA (Tier-1 of 8% with 15% hybrid),             5.   KBL European private banking
              previously 5.95%
                                                                      6.   Gevaert
          l   No further allocation of goodwill
              (ROAC becomes an indicator for operating
              performance, as opposed to ROI)




     * Best-efforts approach for 2005 – will be reassessed for 2006
55
              Headlines
              Results KBC Bank & Insurance (pre merger)
                - Financial performance
Foto gebouw     - Areas of activity
              Results KBL European Private Bankers
              Results Gevaert
              Financial outlook for 2005
              Merger synergies – update
            KBL 1996

     1996
     1996              Challenges
                       Challenges
                       n   Private banking purely concentrated on
                           offshore (although predictable erosion
                           of offshore center)
                       n   Limited geographic customer
                           base diversification
                       n   KBL not primarily focused on private
                           banking yet




57
                  Strategy of KBL epb

     1.   To develop a network of European Private Bankers (epb):
          l   Higher proportion of AUM based in on-shore centres
          l   Well-balanced and diversified geographic origin of private clients
     2.   To refocus KBL in Luxembourg:
          l    Parent company activity
          l    Support function for the members of epb (IT, Global Custody, Markets, etc)
          l    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


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



58
            KBL epb today

     2004
     2004                   Achievements
                            Achievements
                            n   Presence in 11 countries
                            n   Clearly focused on private banking:
                                 l The client is at the center

                                 l Relationship-based on long term
                                    view
                            n   Multicultural
                            n   Based on open-architecture




59
                Financial key points
                 Net profit        Assets under management
           In bn EUR (Lux Gaap)        In bn EUR



                  CAGR +6%                    CAGR +6%




                Tier-1 ratio             Return on equity
     Lux Gaap                      Lux Gaap




60
       Revenues in line with strategy trend
           Operating income     n   Strong increase in commission income
                                    (+17% of which +6% on organic basis)
              (in m EUR)            due to the strengthening of the core
                                    private banking activity.
     914
                822             n   Contraction of net interest income on
                          756       the back of:
                                      l Focus on private banking and
                                         intentional restricting of loan
                                         exposure
                                      l Reduction of exceptional profits
                                         on treasury activity
                                      l Lower excess capital (further to
                                         acquisitions and maturity of high-
                                         yielding assets)
                                n   Non-recurrence of extraordinary
                                    dividends (in 2003 related to re-
                                    insurance captive KB Ré)
                                n   Capital gains on non-core investments



61
                        Continued stringent loan policy

                                                                 n   Loan portfolio of 7.7 bn (diversified
                                                                     portfolio with 90% of exposure in
                            Loan portfolio                           Western-Europe)
                              (in m EUR)
                                                                 n   Progressive scaling down of lending
                 10 017                                              activities not related to private
                                  9 600
                                                                     banking since 2000
                                                                 n   Centralization of risk exposure and
                                                  7 679              Strict local lending limits
                                                                 n   Consistantly low loss ratio:
                                                                             2004        15 bp
                                                                             2003        21 bp
                                                                             2002        15 bp
                                                                        Avg 5 yrs        17 bp



     * Net specific provisions to average gross customer loans
62
                     Expenses under control

                    Operating expenses
                        (in m EUR)
                                                        n   Despite:
             530                                  526
                             492                             l   continued streamlining of cost
                                                                base resulting in organic cost
                                                                decrease of -2.5% y-o-y
                                                             l improved efficiency through
                                                                support services to epb from
                                                                Luxembourg
                                                        n   … cost/income ratio rises from 60%
                                                            to 70%




     * Extension of consolidation scope in 4Q01
63
                      Strongly reduced provisions

         In m EUR,                           2002     2003    2004
         Lux GAAP

         Operating income                      914     822      756
         Overhead expenses                    -530    -492     -526
         Operating result                     384      330     230
         Provisions and depreciations         -183     -83      19

         Pre-tax result                       201      247     248
         Income tax                            -18     -52      -43
         Minority interest                      -2      -1       -1

         Net profit                           181      193     206


     n   Reduced operating result compensated by the non-recurrence of
         value adjustments on investments portfolios
     n   A new provision was set aside for potential future restructuring
         charges (127 m), but offset by the writeback of the GFBR (130m)
     n    As a balance, net profit up 6.5%
64
     Reconciliation with KBC Group’s pro forma results:

       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                                       89          76           89          99           63
       to Group profit




     * 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)
65
              Headlines
              Results KBC Bank & Insurance (pre merger)
                - Financial performance
Foto gebouw     - Areas of activity
              Results KBL European Private Bankers
              Results Gevaert
              Financial outlook for 2005
              Merger synergies – update
                       Gevaert portfolio
     n   Fields of business of Gevaert (total portfolio at 31-Dec-04: 1.5 bn)
          l Holdings in listed companies, of which important investment in Agfa Gevaert*
             (26% stake, worth 854 m at 31-Dec-04)
          l Private equity (0.2 bn)

          l 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
     n   Activity in 2004:
          l New equity investments: 166 m (excl. intragroup shares)

          l 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,…
67
                        Gevaert portfolio

                                            2003*      2004         n   Profit contribution: –36m caused by the
                                                                        decreased contribution from Agfa
       Results of associated                                            Gevaert (-66 m, down from 63m in ’03)
          companies                            107       46
       Realised gains, securities               -9       19         n   Depressed contribution of Agfa due to:
       Other income                             99      108
                                                                         l one-off divestment loss charge
      Gross income                             197      173
                                                                           (81 m) related to the sale of the
      Administrative expenses                   -92    -109                ‘consumer imaging division’
                                                                         l reduction of business scope
      Operating result                         105        63               (disposal of non-core assets in
                                                                           2003/04)
      Value adjustments                        +13        +8
      Amortisation of goodwill                 -28       -28             l rather difficult business climate,
      Share in restructuring costs                                         although reversed trend recognised
        in associated companies                    -     -81               at end of year
      Extraordinary results                       -       +6        n   Significant non-realised gains on equity
      Taxes                                      -9       -4            portfolio:
      Minorities                                  2        -
                                                                               - On equity holdings: 496m, of
      Contribution to Group                     83       -36                       which on ‘Agfa Gevaert’: 311m
      result


     * Pro forma, including Almafin in the scope of consolidation
68
                        Gevaert portfolio
      Contribution to KBC Group’s pro forma results:
                                                          2000            2001           2002        2003   2004*

          Results associated companies                       46               2             69        104     46
          Realised gains                                     86              14             -9         -9     19
          Other income                                       20              25              8         13    108
        Gross income                                        152              41             68        109    173
        Administrative expenses                               -8              -6            -5         -6    -109

        Operating result                                    144              35             63        103     63

        Value adjustments                                   -19             -19            -55       +13       +8
        Amortisation of goodwill **                         -30             -30            -27       -27      -28
        Share in restructuring associates **                  -             -75            -19         -      -81
        Extraordinary results                                 2               -             -7          -     +6
        Taxes                                                 -              -1             -1         -1     -4
        Minorities                                          -21             +19              1          -      -
        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
69
              Headlines
              Results KBC Bank & Insurance (pre merger)
                - Financial performance
Foto gebouw     - Areas of activity
              Results KBL European Private Bankers
              Results Gevaert
              Financial outlook for 2005
              Merger synergies – update
                Profit outlook - 2005

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

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

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

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




71
                2005 IFRS disclosure schedule


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


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




     9 June 2005     • 1Q05 earnings (full set of interim IFRS financial statements and notes)
      9 June 2005
                     • 1Q04, 2Q04, 3Q04 and 4Q04 earnings (IFRS reference P/L and B/S,
                       incl. segments, excl. impact of IAS 32/39 and IFRS 4)




72
              Headlines
              Results KBC Bank & Insurance (pre merger)
                - Financial performance
Foto gebouw     - Areas of activity
              Results KBL European Private Bankers
              Results Gevaert
              Financial outlook for 2005
              Merger synergies – update
                  Quick reminder
     n   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:
         l    increased visibility and liquidity
         l    realization of group synergies
     n   Flexibility to continue current strategies:
         l    Leverage on bancassurance model and private banking expertise
         l    Core geographic focus on Belgium, CEE and private banking throughout Europe
         l    Continued good prospects for Belgian market
         l    CEE and European private banking to remain long-term earnings drivers
         l    Continued quest for (cost) synergies, partly through intra- and cross-group co-
              sourcing
         l    Balanced risk profile through diversified business portfolio
         l    Solid solvency levels and credit ratings




74
                     Synergy areas
         Synergy area                                    Synergy potential
                             l   Optimization of value management by centralising capital and and risk
          Corporate              management function
          functions

            Private          l   Additional revenue growth based on complementarity of product
                                 ranges (e.g. funds, life insurance...) and geographical presence
           banking
                             l   Cost savings based on overlapping activities and functions
         (activities of
           KBL epb)

                             l   Optimization of capital and risk management by rebalancing equity
           Gevaert               portfolio
           portfolio         l   Strenghtening of competitive position by merging Gevaert’s activities
                                 into KBC Bank and KBC Insurance


     n     Synergy projects proceeding according to plan
     n     Unified strategy for private banking and private equity expected to be fully ready
           for execution by mid-2005
     n     Management is committed to start realizing synergies immediately



75
                       Activities of KBL epb

                                                                      Synergy benefit, in m
                                                                        (see note below)
      l   Total synergy program of NPV 500 m                                                                     Revenue
          (net of restructuring and capital costs, post
          tax)
      l   Estimated capital and restructuring costs are
          c 50m over 5 years
      l   Recurring pre-tax benefits of 75 m (peak
          level), half of which can be realized by 2006
      l   Cashflow positive in every year
      l   40% revenue and 60% cost (and cost
          avoidance) benefits                                              Cost + Cost
                                                                           Avoidance
      l   All synergies reach their peak by 2009
          (some faster than others)
      l   Portfolio of 32 synergies, 19 ‘large’ and
          13 ‘small’




     Note: ‘Synergy benefit’ described throughout as peak recurring annual increase in pre- tax bottom-line result vs. base
     business.
76
                   Gevaert portfolio

     Business line                                Strategy headlines
                     l   Reduction of equity portfolio (case by case approach as to individual
     Holdings in         equity positions)
       listed
     companies

                     l   Merger of activities of ‘Almafin’ into KBC Bank (i.e. ‘KBC Real Estate’
      Real estate        and ‘KBC Lease’)
     & specialized   l   Disposal of of non-core activities
        finance


                     l   Merger of Gevaert and ‘KBC Investco’ (KBC Investco is a subsidiary of
       Private           KBC Bank and KBC Insurance)
       equity        l   Build up a private equity platform with geographical focus on home
                         markets (targeted portfolio of 500-600 m)




77
Foto gebouw

              4   Impact of IFRS
          Disclaimer


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




79
          Content


     1.   Disclosure headlines
     2.   Impact on financial statements 2004
     3.   Impact on financial statements 2005




80
          Headlines


            First IFRS reporting 1Q 2005
     11

            Comparative figures of 2004 available (excluding impact of IAS
     22     32/39 on financial instruments and IFRS 4 on insurance contracts)


            Corrections due to the first time application of IFRS valuation
     33     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)




81
                                                                  Headlines – Impact 2004 – Impact 2005
               Disclosure schedule, 2005


     Mar 23, 2005
                    •   New IFRS templates
     Mar 23, 2005
                    •   FY04 IFRS income statement and B/S (excl. impact IAS 32/39 and IFRS 4)




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




     Jun 9, 2005    •   1Q05 earnings (full set of IFRS interim financial statements and notes)
      Jun 9, 2005
                    •   1Q04, 2Q04, 3Q04 and 4Q04 earnings (IFRS reference
                        P/L and B/S, incl. segments, excl. impact of IAS 32/39 and IFRS 4)




                                                                         Headlines – Impact 2004 – Impact 2005
82
                      Segment information, 2005


             Financial         6 business          1) Banking                              P/L and B/S
             statements        segments            2) Insurance
                                                   3) Asset Management
                                                   4) KBL epb*
                                                   5) Gevaert *
                                                   6) Holding Company
                               3 geographical      1) Belgium                              Key income
                               segments            2) CEE                                  figures
                                                   3) Rest of world
             Managemen         6 customer          1) Retail                               P/L
             t reporting       segments            2) CEE
                                                   3) SME/corporate
                                                   4) Capital Markets
                                                   5) KBL epb*
                                                   6) Gevaert*
                                                   + Group Item (= non-allocated
                                                     activities)




     * Temporarly solution for 2005: KBL and Gevaert as non-integrated divisions   Headlines – Impact 2004 – Impact 2005
83
                 Main changes in valuation rules, 2004

                                                                      Impact on    Impact on    Impact
                                                                       earnings    book value    start
     Presentation of own equity before profit appropriation                            X        2004
     (instead of after profit appropriation)
     Stricter criteria for recognition of provisions (IAS 37)            X             X        2004

     Recognition of deficit/excess of defined benefit pension plans      X             X        2004
     (DBP) (IAS 19)
     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                   X             X        2004
     capitalisation of internal software (IAS 16/38)
     Impairment testing of goodwill and no further depreciation          X             X        2004
     (IAS 36 and IFRS 3)
     Misceleaneous other changes with limited impact, such as            X             X        2004
     inclusion of SPV’s in scope of consolidation, etc.




84
                                                                             Headlines – Impact 2004 – Impact 2005
                       IFRS Income statement FY 2004*
                                                                      KBC      KBC Group
                 m euros
                                                                      (Old)      (Mergco)
                Net interest income                                   3 687           3 833
                Gross earned premium, insurance                       5 158           5 158
                Dividend income                                         214             231
                Net gains from financial instruments at fair value      647             725
                Net realised gains from available for sale assets       513             503
                Net fee and commission income                         1 029           1 404
                Other income                                            308             479
                Gross income                                         11 555          12 333
                Operating Expenses                                   -4 200          -4 944
                Impairments                                            -379            -365
                   - o/w on loans and receivables                      -201            -198
                   - o/w on AFS assets                                 -165            -150
                Gross technical charges, insurance                   -4 633          -4 633
                Ceded reinsurance result                                -68             -68
                Share in results, associated companies                   55              22
                Profit before taxes                                   2 329           2 345
                Income tax expense                                     -498            -537
                Minority interests                                     -172            -193
                Net profit                                            1 659           1 615


85
     * Non-audited figures (excl. impact of IFRS 4 and IAS 32/39)     Headlines – Impact 2004 – Impact 2005
               Impact on profit 2004 - KBC Old


                  Provisions*
           1758      -92



                                DBP                                Goodwill Other
                                                          Fixed
                                -34                       assets     +39     -10
                                         Tax     Lease                                    1659
                                          -7                 +5
                                                  +0.4


        Net profit                                                                       Net profit
         2004         Non-audited figures, excl. impact of IFRS 4 and IAS 32/39         2004 IFRS
       BEL GAAP


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




86
                                                                                  Headlines – Impact 2004 – Impact 2005
               Impact on profit 2004 - KBC Mergco

           1682 Provisions*

                                                                   Goodwill Other
                     -97                                                          -29
                              DBP
                                                       Fixed         +89
                              -35       Tax      Lease assets
                                         +2      +0.4    +3
                                                                                          1615




        Net profit                                                                       Net profit
         2004          Non-audited figures excl. impact of IFRS 4 and IAS 32/39         2004 IFRS
       BEL GAAP


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




87
                                                                                  Headlines – Impact 2004 – Impact 2005
                       Impact on EPS 2004 *

                                                                    KBC                KBC Group
           Euros                                                    (Old)               (Mergco)
           Basic EPS, Belgian GAAP                                  5.66                    4.59
             IFRS adjustments:
              - reversal of provisions                              -0.30                  -0.27
              - underfunding of DBP                                 -0.11                  -0.10
              - adjustments of deferred taxes                       -0.02                  +0.01
              - reclassidication of lease                           +0.00                  +0.00
              - adjustments on fixed assets                         +0.02                  +0.01
              - adjustment of goodwill                              +0.12                  +0.24
              - other                                               -0.03                  -0.08
              - change in definition of no of shares                +0.06                  +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
88
                       IFRS Balance sheet, 31-Dec-04 *
                                                                                     KBC              KBC
                m euros
                                                                                     (Old)          (Mergco)
                Loans and advances to customers                                      106 798           111 177
                Securities                                                            90 887            98 862
                Loans and advances to banks                                           27 065            38 463
                Derivative financial instruments                                      15 376            15 376
                Property and equipment (excl invest. property)                         1 782             2 300
                Goodwill and other intangible fixed assets                               650             1 086
                Investments in associated companies                                      615             1 228
                Other assets                                                           9 160            16 671
                Deposits from customers and debt securities                          141 955           157 712
                Deposits from banks                                                   42 460            55 083
                Derivative financial instruments                                      17 728            17 728
                Gross technical provisions, insurance                                 13 259            13 259
                Liabilities under investment contracts, insurance                      3 931             3 931
                Other liabilities                                                     20 847            23 351
                Total equity                                                           12 154           14 099
                - Parent company equity                                                10 641           12 328
                - Minorities                                                            1 513            1 771
                Balance sheet total                                                  252 334           285 163




     * non-audited figures (indicative only), excl. impact of IFRS 4 and IAS 32/39
89
                                                                                             Headlines – Impact 2004 – Impact 2005
        Impact on BPS, 31-Dec-04 *

                                                          KBC          KBC
     Euros                                                (Old)       Group
                                                                     (Mergco)
     Book value per share, Belgian GAAP                   33.84         32.50
       IFRS adjustments:
        - profit appropriation                            +1.19         +1.84
        - reversal of provisions                          +0.05         +0.04
        - underfunding of DBP                             -1.31         -1.23
        - adjustments of deferred taxes                   +0.03         +0.03
        - reclassidication of lease                       +0.03         +0.02
        - adjustments on fixed assets                     +0.28         +0.22
        - adjustment of goodwill                          +0.12         +0.22
        - other                                           +0.00         +0.02
        - change in definition of no of shares            +0.35         +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’


90
                                                                         Headlines – Impact 2004 – Impact 2005
              Main changes in valuation rules, 2005

                                                                   Impact on   Impact on    Impact
                                                                    earnings   book value    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          X            X        2005
     of portfolio-based provisions) (IAS 32/39)
     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




91
                                                                       Headlines – Impact 2004 – Impact 2005
               Disclosure schedule 2005 - reminder


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




     Jun 9, 2005
      Jun 9, 2005   •   1Q05 earnings (full set of interim IFRS financial statements and notes, incl.
                        impact of IAS 32/39 and IFRS 4)




92
                                                                          Headlines – Impact 2004 – Impact 2005
                      Indicative composition of portfolios*

           Assets as of                                             Value at     Valuation (volatility
           2005                                                     31-12-04 *   impact)

           Loans and           Mortgages/consumer credit               28.3 bn   Amortized cost (no
           receivables         Corporate loans                         78.2 bn   impact from volatility in
                                                                                 valuation)

           HTM                 Bonds, banking book                      5.9 bn   Amortized cost (no
           instruments         Bonds, insurance book                    2.5 bn   impact from volatility in
                                                                                 valuation)
           AFS                 Bonds, banking book                     16.5 bn   Fair Value (adjustments
           instruments         Bonds, insurance book                    7.3 bn   recognized in
                               Shares, banking book                     1.0 bn   shareholders’ equity)
                               Shares, insurance book                   2.9 bn
           Financial           Bonds, banking book                     18.5 bn   Fair Value (adjustments
           instruments         Bonds, insurance book                    0.6 bn   in P&L)
           at Fair Value       Trading portfolios                      31.5 bn
                               Unit-linked investments                  3.9 bn
                               Derivatives, banking book                  p.m.
                               Derivatives, insurance book                p.m.




     * Figures for KBC pre-merger, book value according to B-GAAP                    Headlines – Impact 2004 – Impact 2005
93
        Annex


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

         l   Description of major differences between IFRS and B-GAAP

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




94
Foto gebouw

              5 Information on capital
                 management
                    Solvency
         Banking KBC,                        Private banking,                     Insurance business
         (Tier-1)                            KBL epb (Tier-1)                     (solvency margin)
     In m EUR                          In m EUR
                      10.1%                                                    In m EUR
           9.5%                              10.0%                                                  389%
                             2 060 m
                                                            9.2%
                                                                                                       1 372 m
                                                                                       316%
                             3 871m                                467 m

                                                                                                       726 m


                             3 871m                                359 m
                                                                                                       726 m




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

96
                        Non-realized gains on investments*

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




     * Excluding trading portfolio
97
                       Allocation of excess capital


                n    Excess capital may be used for:
                      l Increasing presence in CEE (banking presence in Poland and
                         insurance presence in Hungary may be strenghtened by acquisitions or
                         setting up business combinations)
                      l Strenghtening the European private banking franchise

                      l Buying out minority shareholders

                      l Decreasing the leverage at holding-company level

                      l Securing a stable, growing dividend

                n    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
98
Foto gebouw

              6   Closing remarks on
                  valuation
                       Valuation

        Key figures:                                      Valuation relative to peer group:
        n  Share price: 65.8 euros                                                                         P/E
        n  Net asset value: 39.3 euros                                                                    2005
                                                           CEE banks 1                                    13.5
        Analysts’ estimates:                               CEE-exposed banks 2                            12.4
        n   2005 EPS consensus*:
            6.02 euros (+7% y-o-y)                         Euro-zone banks 3                              12.1
        n   P/E 2005: 10.9                                 KBC                                            10.9
        Recommendations:                                   BEL banks 4                                    10.4
        n   Positive: 55%                                 Weighted average of IBES data :
                                                          1)
        n   Neutral: 25%                                     OTP, Komercni, Pekao, BPH PBK, BRE
                                                          2)
                                                             BA-CA, Erste, Unicredit, Soc. Gen., Intesa BCI
        n   Negative: 20%                                 3)
                                                             Top 20 DJ Euro Stoxx Banks
                                                          4)
                                                             Fortis, Dexia


                                              Situation as at 14 March 2005


      * Smart consensus collected by KBC (13 estimates)
100
                Group restructuring benefits


      Merger of KBC with parent company Almanij (March 2005):
      n   Business benefits:
           l Flexibility for fully implementing existing strategies

           l Unity of strategy, capital and management

           l Enhanced efficiency, with business synergies



      n   Financial benefits:
           l Increased share liquidity, thanks to pooling of two listed entities
              and higher free float
           l Elimination of holding-company discount

           l Increased transparency through simplified structure

           l Improved visibility on capital markets




101
                        Increased visibility and share liquidity

                                                                     KBC (old)            Almanij   KBC (new)

      Market capitalization (in EUR)                                    15 bn               10 bn     24 bn
      Free float
          % of shares outstanding                                       31%                 29%       46%
          Size, bn EUR                                                  5 bn                3 bn      11 bn
          Daily traded volume (Ytd, m EUR)                              18 m                8m        51 m

      n   Amongst top-10 banking shares in the euro zone
      n   Increased weighting in stock indices due to higher free float
      n   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)
102
      Research coverage




103
      Sollicited research coverage




104

				
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