1. From transition to delivery Rijkman Groenink Chairman of the Managing Board Merrill Lynch Banking & Insurance CEO Conference London, 5 October 2006

2. 2 Agenda  Review of actions taken so far  What still needs to be done to further improve operating performance  Main growth drivers for 2007  Conclusions

3. Review of actions taken so far

4. 4 Highlights of the 2006 transition  February 2005 –Strategic focus on the mid-market segment plays to the strength of the Group  2006 a year of transition: –Early indications confirming the new organisational structure delivers improved performance –Recognised need to accelerate realisation and outperformance of targets set for key businesses –Problem areas are recognised and being addressed –Services will deliver majority of its savings in 2007 and 2008 –Six Managing Board Priorities show our focus on operational issues in 2006

5. 5 ConsumerCommercial Mass Retail MNCs Mid- Market/FIs PC / Mass Affluent Top Private Clients Small Business February 2005: Strategic focus on mid-market segments Product innovation Feeder channelProvider of scale ‘SWEET SPOT’

6. 6 January 2006: new group structure aligned with mid-market strategy, to drive organic growth Our new group structure Key Elements of the Strategy functions Global Markets EuropeNorth America Latin America AsiaPrivate Clients Global Clients NL Asset Management Group Functions Services Transaction Banking Consumer Client Segment Commercial Client Segment Local Products M&A ECM Growth in our customer ‘Sweet Spot’, i.e. there where we have a distinct advantage and where we are profitable or can become profitable.  Our sweet spot consists of: –Consumer: PC/Mass Affluent –Commercial: SMEs, mid-large corporates & FIs through… Client-led strategy based on Local Intimacy and global product excellence and… Value driven through working as ‘One Bank’  World-class products  International network capabilities  Spreading of successful formulas  High quality and more efficient Services  Leveraging our global capabilities

7. 7 Managing Board priorities for 2006, a focus on operational issues 1.Drive organic growth from new Group structure 2.Realise cost synergies from Services and other initiatives 3.Further improve the returns from our former wholesale banking activities 4.Realise synergies from integration of Banca Antonveneta 5.Strict capital discipline 6.Implement best-in-class compliance standards in all the jurisdictions in which we operate

8. 8 First half results underpinned by 9.3% revenue growth Operating income ABN AMRO* (EUR mln) *All figures are excluding consolidation effect of controlled investments of BU Private Equity ** Operating income related to BAPV include stand alone BAPV (H1 06: +/+991), Purchase Accounting (H1 06: -/- 60), minority stake BAPV (adjustment related to Q4 05 and booked in Q1 06: -/-29; minority stake H1 05: +/+ 40) *** H1 06: gain on sale of stake K&H (EUR 208 mln); H1 05: gain on sale of Bishopsgate (43 mln) ****BU Europe is excluding Banca Antonveneta +9.3% +23.7% 43 40 Operating income per BU* (H1 06) 40% 3% 57%39% 78% 38% 86% 58% 40% 80%43% 55% 8% 31% 100% 35% 6%

9. 9 …driven by increases in all BUs except for Group Functions that showed lower ALM results  BU Latin America and BU Asia are currently the main growth engines for the Group  BU Latin America: strong increase on the back of strong growth in loans to retail clients  BU Asia: strong increase driven by growth in Preferred Banking customer base, showing success of our focus on the rapidly expanding middle-income population in this region Operating income per BU* (H1 06, EUR mln, y-o-y change) *All figures are excluding consolidation effect of controlled investments of BU Private Equity **** BU Europe is excluding operating income related to Banca Antonveneta and excluding gain on sale of Bishopsgate (H1 05) ***** Other includes Group Functions and Bouwfwonds non-mortgage. Other is excluding gain on sale of stake in K&H

10. 10 The underlying cost growth is still too high Operating expenses ABN AMRO* (EUR mln) Reported cost growth of 22.5% impacted by:  FX movements (EUR 219 mln)  Consolidation BAPV (EUR 645 mln)  Expenses in efficiency: restructuring charge Services (EUR 84 mln) Underlying cost growth of 7.9% impacted by:  Expenses in efficiency (Services) running through P/L (EUR 100 mln)  Expenditure on control such as Compliance and Sarbanes Oxley (variance H1 06 - H1 05, EUR 135 mln)  Expenses in BU LA and BU Asia to fund future growth (variance H1 06 - H1 05, EUR 155 mln) *All figures are excluding consolidation effect of controlled non-financial investments **Expenses related to BAPV include stand alone Banca Antonveneta (+/+556 mln), Purchase Accounting (+/+ 89 mln), ***Services restructuring charge +7.9% +22.5%

11. 11 Further progress in efficiency ratio remains top priority Efficiency ratio (%) Communicated with the H1 results:  Our progress in managing costs is not good enough yet  Despite the fact that we are on track with regard to our cost savings programmes, improving the efficiency ratio remains an absolute priority  We have therefore developed a number of additional cost initiatives for the second half of 2006  Our operating expenses in the second half should also benefit from the additional Services savings as committed for 2006, as they are skewed towards the second half of this year *H1 06 excluding the gain on sale of K&H, restructuring charge and contribution BAPV; See appendix Q2 2006 results presentation for excluded items 2005

12. 12 Efficiency ratio development YTD driven by the strong improvement in efficiency ratio for Global Markets Efficiency ratio (%) Improvement in efficiency ratio due to:  Strict cost management  Change in business model to focus on our mid-market clients –Continued growth of PIP* business –Growth of Financial Institutions business  Participation choices year to date: –Sale of Global Futures business to UBS –Closure of U.S. government bonds primary dealership –Stopping greenfield EU Infrastructure Capital Business –More to follow * Private Investor Products

13. 13 First half 2006, crucial phase in the transition In summary:  Encouraging revenue growth in BU Latin America and BU Asia, two of the main drivers for future growth  Costs increased too fast  The efficiency ratio of the former wholesale activities is still too high, particularly in Global Markets and the BU Europe The need further to improve the operational performance through acceleration of the existing action plan

14. What still needs to be done to further improve operating performance

15. 15 Acceleration of existing action plan given disappointing first half results (1)  During the last three months we have looked into the progress of the transition and concluded that an acceleration of the action plan is needed. The action plan is aimed at improving the operating result and capital allocation, which will lead to a higher return on economic capital for the Group*. * With Q3 results, return on economic capital for the Group and the individual BUs will be provided

16. 16 Acceleration of existing action plan given disappointing first half results (2) Acceleration of action plan focuses on:  Reduction in capital allocated to the Commercial Client segment  Improving the efficiency ratio of Global Markets  Further improving the return on economic capital in Global Clients, within its capital limits  Improving the operational efficiency in Group Functions  More focus in and simplification of the organisation An update on the progress of these actions will be provided with the third quarter 2006 results

17. Main growth drivers for 2007

18. 18 Strong growth opportunities for BU Latin America and BU Asia BU Latin America:  Brazilian market expected to have high long-term loan growth on the back of low credit penetration and a lower interest rate environment.  Banco Real is well positioned 1. Retail loan growth optimised via smart client segmentation 2. “Empresas”: a strong initiative to grow our commercial clients business BU Asia:  Exposure to highly beneficial demographic trends  Target (Mass) Affluent Customers with: 1. Van Gogh Preferred Banking Offering 2. Credit Card Offering 3. Consumer Credit Offering

19. 19 Banca Antonveneta: encouraging results year to date and integration on track Good performances registered in Q2 compared to Q1:  Total operating income up by 8.6%  Operating result increased by 11.2%  Provisioning down by 21.9% Integration on track:  Cost synergies: EUR 160 mln cost savings by the end of 2007  New executives for Consumer, Commercial and Private Banking  Italian customers already benefiting from our international network  Introducing new service concepts: Preferred Banking, Internet Banking and call centres  Rebranding D-Day is planned for November 6, 2006  Banca Antonveneta Investor Day will be held on December 11, 2006

20. Conclusions

21. 21 Conclusions  Disappointing first half results increased our sense of urgency  We know what the issues are –New structure highlights where we need to make changes in order to improve performance  Third quarter was used to evaluate and accelerate the existing action plan  A further update on the acceleration of the action plan will be given with the Q3 results  2007 will be the year of delivering an improved operating performance

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