LATAM Conference

LATAM Conference Business Unit Brazil of C&CC BU Brazil, March 2004

Table of Contents Current Brazilian Business Environment Overview of ABN AMRO Brazil C&CC Brazil Financial Performance Competitive Analysis Sudameris Acquisition Outlook 2004 / 2005

Economic environment • After the election period in 2002, the Real appreciated and the sovereign spread narrowed, reaching the 500 bp level EMBI BRL Sources: Brazilian Central Bank, Bloomberg

Economic environment • The inflationary pressures due to the exchange rate overshooting receded significantly and are expected to stabilize along 2004 IPCA% BRL 2005 FCST BRL/USD (Dec,eop) 3.25 forecast 2005 FCST IPCA (12M, eop) 5.3% Sources: IBGE, ABN AMRO

Economic environment • Central bank will likely continue to gradually ease monetary policy in 2004, but reducing interest rates at a lower pace than in 2003 IPCA% Selic% forecast Sources: Brazilian Central Bank, Bloomberg, ABN AMRO

Economic environment • The declining interest rates will enable significant volume growth in the still underdeveloped Brazilian banking market. The penetration of total credit shows a large long term growth potential Total Credit / GDP1 1. Data as of year- end 2001. Sources: World Bank, European Union Web site, IBGE

Political environment • Government and President Lula show a comfortable approval rating

Political environment • Government agenda • Continuous effort to complete reforms • Revision of mortgage legal framework • New regulation to reduce number of court actions against the financial system regarding interest rates • New Bankruptcy Law • Labor regulation reform • Judiciary reform • New Central Bank Law • Public and Private Partnership regulation • Power sector framework

ABN AMRO Brazil – Overview • ABN AMRO Brazil has a leading presence in Brazil’s financial services sector, enhanced by the acquisition of Sudameris • Retail Banking - 1st largest foreign institution • Consumer Finance - Largest car financier in Brazil • Commercial Banking - Maintains relationship with more than 2,500 companies • Insurance - Currently positioned as the 7th largest insurer, and 5th largest pension fund by reserves • Wholesale Banking - Maintains relationship with over 400 of the largest corporations in Brazil • Asset Management - 4th largest Asset Manager in Brazil, with R$ 25.8 bln of assets under management in January, 2004

ABN AMRO Brazil – Overview Total Assets (in R$ mln) Total Loans (in R$ mln) CAGR: 25.6% CAGR: 29.9% Net Income (in R$ mln) Average annual IPCA inflation in the period: 8.9% CAGR: 28.3% All figures based on Brazilian GAAP

ABN AMRO Brazil – Strategic Vision PEOPLESKILLED AND COMMITTED COMPETITIVEINFRASTRUCTURE CORPORATE VALUES CLIENT FOCUS CLIENT SATISFACTION RESULTS SHAREHOLDERS EMPLOYEES COMMUNITY

ABN AMRO Brazil – Strategy • ABN AMRO Brazil focuses on being one of the most efficient and valued banks among the top 3 privately owned retail banks in the Brazilian market, through a segmented approach • ABN AMRO aims to maintain a leadership position in the Auto Consumer Finance segment in Brazil, through its Aymoré Financiamentos brand • ABN AMRO Brazil focuses on value creation through synergies among the Commercial Banking, Retail and Wholesale segments (i.e. payroll, value chain) Retail Consumer Finance Commercial Banking

Retail banking • ABN AMRO has a strong presence in Brazil, and is playing an important role among the top retail banks * June 2003 figures. Mini-branches: branches on companies’ premises

Client base ABN AMRO Brazil • Significant organic growth based on strong corporate franchise. In 2003, incorporation of Sudameris’ client base of approximately 700 thd. clients In million clients

Consumer finance • ABN AMRO Consumer Finance division is Brazil’s largest car financier through its Aymoré brand, driven by strong customer service and a low efficiency ratio Car Financing Market Share Source: DETRAN

Asset management • 3rd largest privately owned retail driven asset manager • 4th largest asset manager after Sudameris acquisition Source: ANBID

C&CC Brazil: Profit & Loss R$ mln Figures in Dutch GAAP

Size • ABN AMRO Brazil is the 4th largest privately owned Brazilian bank by total loans and assets, and 3rd by deposits Top Privately owned banks All figures based on Brazilian GAAP as published by each institution

Efficiency • ABN AMRO Brazil had a substantial improvement on the efficiency ratio in 2003. The Sudameris integration costs will temporarily affect the efficiency ratio Efficiency Ratio All figures based on Brazilian GAAP as published by each institution

Client Focus • ABN AMRO Brazil has expanded its relationship with the clients prioritizing the credit portfolio Loans / Total Assets ratio All figures based on Brazilian GAAP as published by each institution

Asset quality • Despite showing the largest loans/assets ratio, ABN AMRO Brazil’s overdue loans ratio is in line with peers Ranking E-H Loans (as per Brazilian Central Bank rule) (criteria: > 90 days past due, a.o.) * Dec 2003 All figures based on Brazilian GAAP as published by each institution * ABN AMRO + Sudameris

Sudameris - The rationale • The consolidation in the Brazilian banking market is continuing. Since Dec/01, Bradesco has acquired Banco Mercantil de São Paulo, Banco Cidade (SMEs), Banco do Estado do Amazonas, Banco Ford and BBVA Brazilian operation, whilst Itaú acquired Banco Fiat and Banco BBA. • Considering size of portfolio, excellent client reach and high concentration of branches in the state of São Paulo (the wealthiest state of Brazil where Banco Real had historically lower market share), Sudameris was the best option to fit ABN AMRO’s growth and strategic goals. • Sudameris improves ABN AMRO’s market share immediately, especially in some specific segments like SMEs and upscale clients. • The integration of Sudameris operations enhances ABN AMRO’s competitive positioning.

Sudameris Acquisition • ABN AMRO concluded the acquisition of Sudameris on October 24th, 2003, buying from Intesa its 94.57% stake in the total share capital of Banco Sudameris Brasil S.A.. The final transaction amount for Intesa’s stake reached R$ 2.2 bln, paid partially in cash (R$ 527 mln) and partially with shares of Banco ABN AMRO Real S.A. (11.58%). *Includes mini-branches • Expected synergy gains: R$ 300 mln per year as from 2005 onwards

Sudameris Integration Already integrated • Asset Management • Treasury • Insurance (partial) • Audit • Private Banking • Broker • Risk Management and Credit Analysis (partial) Developments • Unification of products and services of both Banks already defined • Communication Plan approved • Instalment of new equipment in the branch network already in progress (around 50% completed) • In October 2003, a Career Orientation Program was created, to support realocation of dismissed employees

Outlook 2004 / 2005 • Inflation under control (IPCA FCTS 5.5%eop in 2004, 5.3%eop in 2005) • Lower volatility in FX rate (BRL/USD FCST at 3.25 at Dec 05, eop) • Lower interest rates (Selic FCST Dec 04 13%pa, Dec 05 12%pa) • Growing Credit Portfolio (25% growth FCST for 2004) • Improving Provisions (lower provisions/loans ratio)

Thank You

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