Getting you there.
Presentation of Fortis to Agoria
Simon van der Burg
Deputy Director External Affairs
Presentation Agoria | 18 December 2007 | 1
Contents
An introduction to Fortis
– Ranking and key figures
– Three leading businesses: Retail, MPB & Insurance
3
7
Vision, mission and strategy
– Vision and mission
– Fortis: raising the bar
– Three key levers for sustained growth
15
18
17
Fortis + ABN AMRO: together a true European leader
18
Presentation Agoria | 18 December 2007 | 2
An introduction to Fortis
Impressive history in banking and insurance
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1720: roots of MeesPierson and ASR
1788: trading with the Russian tsarina
Catherine the Great
1803: financing the United States’
purchase of Louisiana from Napoleon
1889: ASLK-CGER is the first to combine
banking and insurance
1902: Generale Bank develops in China
1990: Fortis, first cross-border merger
Over 60,000 dedicated professionals
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33% work outside Benelux region
47% are women
17% are part-timers
44% have at least a bachelor degree
77% are in banking ; 23% in insurance
Average of 4.6 training days per FTE in 2006
40 years is the age on average
Presentation Agoria | 18 December 2007 | 3
To be proud of
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Strong performance driving net profit to record
EUR 4.4 billion in 2006 (+24% before divestments)
Strong position: No. 20 in Fortune Global 500,
based on revenues
Strong profitable and sustainable growth strategy
Excellent track record in insurance joint ventures
Unique cross-border network for SME and HNWI
Strong ratings and sound solvency position
One strong brand
Present in more than 50 countries
−
−
−
Key player in Europe (28 countries); niche player
in Asia (13 countries) and North America
More than 1,500 retail branches ; 260 credit shops;
180 business centres & private banking offices;
13 representative offices
Insurance sales via bank branches, brokers, tied
agents, bank alliances, affinity groups, …
Strong growth through acquisitions & partnerships
Selected ABN
AMRO activities
1990-2006
Staff: x 3
Net profit: x 8
Market cap: x 16
Total assets: x 28
Captive Finance,
Pacific Century Insurance
Etalon Life, Cinergy M&T, Dominet,
Gutingia, Cadogan, Global Finance
Disbank, Dryden WM, Von
Essen Bank, O’Connor & Co,
Atradius Factor, OutRight, MNIH
IDBI Fortis Life
Insurance (India)
BGL, ASR, Intertrust
Millenniumbcp
ASLK-CGER, MeesPierson,
Generale Bank
Creation of
Fortis
CaiFor
Muang Thai
KIT Fortis
Investment
Management
Mayban
Assurant
Taiping Life
Seguros Bilbao
CaiFor
Integration and
consolidation
Acquisitions
1990
Postbank
(Ireland)
2000
Presentation Agoria | 18 December 2007 | 4
Sustainable
growth strategy
2011
2005
Acquisition
Partnership
Divestment
0
Presentation Agoria | 18 December 2007 | 5
Generali
Crédit Agricole
Lloyds TSB
HBOS
Deutsche Bank
Fortis
Soc. Générale
Credit Suisse
Barclays
AXA
BBVA
Intesa San Paolo
BNP Paribas
ING
RB Scotland
Allianz
Unicredito
UBS
Santander
HSBC
Market capitalisation: Fortis no. 15 in Europe
(15 October 2007, in EUR billion)
180
160
140
120
100
80
50.9
60
40
20
Fortis: key figures (IFRS, in EUR million)
Net profit before results on divestments
Net profit
Total income
Total assets
Assets under management
Core equity
Employees (FTE)
Return on Equity
Cost/income ratio (Banking)
Tier 1 ratio (Banking)
Total capital ratio (Banking)
Combined ratio (Insurance)
Share of non-Benelux net profit
Operating leverage:
– Bank
– Insurance
Presentation Agoria | 18 December 2007 | 6
9M 2007
FY2006
3,580 (-1%)*
3,580 (-1%)*
88,449
875,766
423,443
21,403
61,770
4,351
4,351
96,602
775,229
421,817
19,532
56,886
21.5%
60.5%
6.8%
10.8%
99.7%
18%
22.0%
61.2%
7.1%
11.1%
96.1%
21%
(5.9%)
(8.7%)
2.1%
(4.3%)
* Change from 9M 2006
Three leading businesses: a balanced portfolio
Retail
Banking
23 % *
Merchant &
Private
Banking
49 %
Insurance
28 %
– Market leadership in Benelux – one of Europe’s wealthiest regions
• No. 2 in retail financial services and No. 1 credit card issuer
• 4 million credit card holders in Benelux and Turkey
– Strong footprint in Europe: over 1,500 branches, 260 credit shops in Germany and
Poland, Post office network in Belgium and Ireland
– Strong leadership position in Benelux
– Leading worldwide position in specialised sectors (top 10 in renewable energy and in
offshore oil and gas services)
– Worldwide leader in trust and corporate services
– Top 20 worldwide in assets under management from high net worth individuals
– Leading service provider in funds administration (worldwide) and in derivatives
clearing (Europe)
– Top European player in cross-border leasing and factoring
– Top 10 player in Europe
– Largest insurer in Belgium: no. 1 Life, no. 2 Non-life, leading position in group life
– Top 3 insurer in the Netherlands, leading market position in niche markets (travel and
leisure, funeral policies)
– Leadership positions in bancassurance in Portugal, Malaysia and Luxembourg
– UK’s third largest private car insurer
– No. 6 life insurer in China, no. 6 in Thailand. No. 1 in Malaysia for new individual Life
* 9M 2007 Contribution to Fortis’s net profit. Excluding Other Banking and General.
Presentation Agoria | 18 December 2007 | 7
Retail Banking: successful leverage of our franchise in Europe
Belgium
• Market leader
• 4 M active customers
• 1,072 branches /
343 agents /
around 1,000 post
offices
Ireland
Poland
• An Post joint venture
• 1,384 post offices /
~3000 post points
• 1-2% market share (niche) • 1.5 – 3.6% market share
• 280 K customers
• 700 K customers
• 200 sales
• 226 branches
points/branches
Netherlands
Fortis Investments
• N°6 in multi-funds sales
(Europe)
• EUR 131bn FuM
• Top 4 (3-5% market
share)
• 0,9 M active customers
• 158 branches /
1,000 brokers
Consumer Finance
Retail Banking
Luxembourg
• 20% market share
Individuals, 40%
market share P&S
• 278 K customers
• 37 branches
Turkey
• Net profit 9M 2007: € 3,580m
• Net profit contribution of
Retail Banking: € 864m
Presentation Agoria | 18 December 2007 | 8
Net Profit Fortis
Retail
Banking
23 %
• Active in 7 countries
• #1 card issuer in
Benelux
• 4 M credit cards
• Focus on credit cards
and consumer loans
• Distributing via credit
shops and branches
Merchant & Private Banking
Strong client franchise, excellence in product skills
Profile
– Core client areas are Corporates (selected large and
mid-sized), Institutionals and HNWIs
– Strong client franchise in the Energy, Commodities
and Transportation segment
Key Data FY 2006
(EUR)
– Total Income:
5,246 m
– Net Profit:
2,020 m
– Global Markets, Investment Banking, SFS and CFC
service all client groups
– Assets under Administration:
131 bn
– Assets under Custody:
313 bn
– 13,000 FTEs
– Funds under Mgmt:
– Recent acquisitions include Cinergy Marketing and
Trading (’06), O’Connor (’05) and Dryden Wealth
Management (’05), Dreieck (’05)
79 bn
– Credit RWCs:
154 bn
– ECAP:
7,501 m
– RARORAC:
Market Position
– N°1 Bank in Benelux, Top 20 Private Bank
Worldwide, Global Top 3 in Commodities and Top
10 in Shipping, Top 5 in US Energy
23%
Contribution to Fortis
Net profit (9M 2007)
ECAP (2006)
– Global Top 3 in Trust, European Top 5 in Factoring,
Top 5 in pan-European Leasing
– Second largest global administrator in the hedge
fund industry
49%
Presentation Agoria | 18 December 2007 | 9
46%
Insurance
A significant and solid contributor to Fortis’ results
Key financial data 2006
– Gross inflow
– Life
– Non-life
– Operating costs
– Net profit
– Life
– Non-life
Profile/description
EUR 17.2 billion
– EUR 12.1 billion
– EUR 5.0 billion
EUR 1.3 billion
EUR 1.4 billion
– EUR 924 million
– EUR 496 million
– Combined ratio
– APE
96.1%
– Composite insurer with focus on life insurance when
entering new markets
– Multi-channel distribution with strong base in broker
and bancassurance
– Top 3 position in key markets and top 10 player in
European Insurance market
– Rapidly and swiftly expanding internationally
– Excellent track record in operating and managing
partnerships
EUR 1.3 billion
Leading market position
– Fortis has significant market positions in its markets:
– Market leader in Belgium
– Top three player in the Netherlands
– Second largest player in Luxembourg
– Third largest car insurer in the UK
– Largest Chinese/Foreign JV in China
– Leader in bancassurance in Belgium, Portugal,
Malaysia, Thailand and China
– Top three in Malaysia (Life, Non-Life and Takaful)
Solid profit contribution to Fortis
Net profit 100% = EUR 3,580 million (9M 2007)
Retail
Insurance
23%
28%
49%
MPB
Presentation Agoria | 18 December 2007 | 10
Vision and mission
Our vision
In a more complex yet more convergent world, innovation, speed and agility will
be as crucial as scale, track record and reach. Fortis will stand out as a
professional international financial services brand, recognised for its ability to
deliver superior and sustainable stakeholder value by constantly anticipating and
surpassing the needs of customers, investors, employees, partners and
communities wherever we do business.
Our mission
Fortis provides compelling customer solutions creatively.
One of Europe’s most dynamic and sustainable financial services brands,
we deliver specialised, innovative and pragmatic customer solutions
across a network of channels and by leveraging our operational and
entrepreneurial expertise
Presentation Agoria | 18 December 2007 | 11
Fortis: raising the bar
The excellent results in the period 2004-06, combined with the
organisational structure, allow Fortis to reconfirm and accelerate its
strategy of becoming a leading European financial services provider,
with a strong customer focus, renowned for the quality of its services, and
growing in the enlarged Europe, and selectively in Asia and North America.
It will achieve this by:
−
strengthening its leadership positions
−
invest in growth engines
−
continue external growth
Presentation Agoria | 18 December 2007 | 12
Three levers to sustain growth
Disciplined external growth
Invest in growth engines
grow
- Identify core
Leveraging the Enhanced Operating Model
perform
skills and
expertise
- Mobilize
Merchant &
Private Banking
Retail Banking
Insurance
Strategy - Communication - Values
Controlled growth
Group resources
Finance
Risk
Investments
Presentation Agoria | 18 December 2007 | 13
management
focus, talent
and capital
- Roll out
to new
markets
expand
Strict criteria
- Strategic fit
- Financial fit
- Resource fit
Fortis + ABN AMRO: a unique opportunity…
Scope
■ BU Netherlands
(excl. former Dutch wholesale clients, Interbank, DMC Consumer Finance,
EC remedies)
■ BU Private Clients globally
■ BU Asset Management globally
■ 33.8% of Shared Assets
Strategic
Rationale
■ Market leader in Benelux financial services, with top positions in all segments
■ Strong European platforms in asset gathering with more than EUR 500 billion
Assets under Management
Strong Growth
Opportunities
■ Steady recurrent earnings streams in wealthy Benelux home market, funding
international growth
■ Strong growth engines: roll-out of proven models in Private Banking, Asset
Management, Merchant Banking niches, multi-channel distribution Insurance,
Consumer Finance, …
Significant
Value Creation
Potential
■ Natural fit and proven integration skills on both sides to drive annual pre-tax
synergies of EUR 1.3 billion by 2010
■ Target return on investment of 11.1% by 2010
Presentation Agoria | 18 December 2007 | 14
…making sum worth more than the parts
– Strong and undisputed position
in the commercial market in
the Netherlands
– Extensive private banking
network
– Solid asset management
operations
– Distinctive transaction banking
services
– Long and distinct heritage
Presentation Agoria | 18 December 2007 | 15
– Leading retail bank in Belgium
and Luxembourg
– Leading commercial banking
network serving exporting
companies in Europe
– Unique private banking offering
– Growing consumer finance
activities
– Prominent player in the
European insurance market
Fortis + ABN AMRO: top player in Europe set for growth
Growth Strategy
>7.2
Synergies /
Financing Costs
ABN Amro
Stand-alone
5.0
(% of FY 2006 net profit, pro forma)
Insurance
23%
24%
4%
1.2
Fortis
Fortis
StandStand-alone
alone
3.8
2006
Well-balanced business mix
2007
2008
2009
2010
Merchant
Banking
Retail
Banking
Asset
Management
16%
25%
8%
Commercial
Banking
Private Banking
Key figures






More than 10 million retail banking clients
2,500 retail branches in Europe, 145 Business Centres
Total AuM: EUR ~ 500 billion
More than 80% of banking income in Net interest income & Commissions
Continued commitment to achieve 30% of net profit from outside Benelux
More than 80,000 FTEs
Note: all data on this slide are pro forma, based on FY 2006 public
information and company estimates
Presentation Agoria | 18 December 2007 | 16
# 1 in the Benelux
The Benelux Leader
Unique customer access
 Serving more than 10 million customers through
the Benelux’ largest network of almost 2,000
branches
 High penetration of multi-channel distribution in
all three countries
Population
(milions)
Personal financial
assets pool / Capita
(EUR)
Benelux
Germany
France
UK
32,304
27,967
29,212
31,395
2.4%
2.2%
2.1%
2.4%
27
82
60
59
69,148
36,634
32,550
94,644
Presentation Agoria | 18 December 2007 | 17
 Consumer lending: #1
 Investments: #1
 Business lending: # 1
Rich and mature markets have
significant wealth accumulation potential
Real GDP
CAGR 2006-11 est
 Mortgages: #1
 Savings accounts: # 1
 Strong presence in wealthiest regions of
Benelux: Flanders, Luxembourg, Randstad
GDP / Capita (EUR)
2006
Undisputed leader across Benelux:
Complementary models
 Similar retail segmentation
(Mass Retail, Affluent/Preferred Banking,
Professionals/Small Enterprises) allowing a
swift replication of best practice
 Performance-driven sales organizations,
packaging as cornerstone of product offering
 Customer centric approach
(Huisbank/ Service)
The Netherlands truly becomes a retail home market
Top 3 player
# 1 Consumer Finance (incl. cards)
# 1 Funds
# 2 Mortgages
# 2 Professionals
# 3 Savings Accounts
Joint entity
Strong position in affluent and
professionals segment
Strong market penetration:
- Top 2 household
penetration in Mass,
Affluent
ABN AMRO second prompted
brand within banks
Relatively high share of internet
transactions ABN AMRO
customers
- Top 2 position in
Professionals
Strong position in consumer
finance with ICS
Growth/retention of Fortis share
of wallet in mass and affluent
driven by sales mindset
Customer centric mindset
Integrated commercial and
consumer, generalist branches
3rd nationwide network of
bankshops and advisory branches
Strong brand
Number 1 employer of 2007
Consistent historic strong rankings
of ABN AMRO on list of favourite
employers in NL
3rd branch network
‘First in mind’ positioning
Solid internet platform
Strong talent base
‘First in mind’ positioning
Presentation Agoria | 18 December 2007 | 18
Creation of a leading European asset manager…
Highly profitable & sizeable
ABN AMRO
businesses Fortis
FY 2006 (EUR m)
Leading provider of
asset management solutions
Combined
Total Revenues
745
347
1,092
Oper. Expenses
(528)
(208)
(736)
-
-
-
Minorities
(14)
(3)
(17)
Net Profit
138
98
236
70.9%
59.9%
67.4%
Loan Losses
C/I ratio
Top tier European Asset Manager
A winning combination
FY 2006 1,374
AuM
(EUR bn)
764
688
583
543 538
490
416 405
1
2
3
4
5
6
7
8
9
354 326
314
10
11
■ True multi-product investment and structuring solutions
■ Autonomous investment centers for a broad range of
asset classes
■ Each investment center with core proprietary research
process designed specifically to extract alpha
■ 100% accountability aimed at motivating investment
specialists to create alpha
■ Range of investment styles from traditional long only to
long-short products focused on absolute return strategies
12
■ Common management philosophy & similar strategy
■ Strong product complementarities: highly diversified
range of strongly performing products
■ Firm European footprint combined with global reach &
scale
■ Deep pool of talent to lead and manage the combination
■ EUR 160 million synergy potential
■ Access to high growth markets &
capabilities in high growth product areas
Barc- Allianz AXA Natixis DB UBS CASA CS ING SGAM BNP Fortis
lays
AM + ABN
Note: all data on this slide are pro forma, based on FY 2006 public information and company estimates
Presentation Agoria | 18 December 2007 | 19
… with leveraged capacities in New territories


ABN AMRO
Fortis
■ Boston
■ New York
■ Toronto
■ Chicago
■ Atlanta
■ ■ Amsterdam
■ Brussels
■ Antwerp
■ Düsseldorf
■ ■ Frankfurt
■ ■ London
■ ■ Luxembourg
■ ■ Paris
■ ■ Madrid
■ ■ Milan
■ Vienna
■ Warsaw
■ ■ Zurich
■ Oslo
■ Stockholm
■ Helsinki
■ Copenhagen
■ Brno
■ ■ Athens
■ St Petersburg
■ Moscow
■ Almaty
■ ■ Hong Kong
■ ■ Shanghai
■ Taipei
■ Seoul
■ Singapore
■ ■ Tokyo
■ Willemstad
■ Sydney
■ Buenos Aires
■ Sao Paulo
■ Mumbai
■ ■ Jakarta
■ Istanbul
Presentation Agoria | 18 December 2007 | 20
Creation of a Top 3 European Private Bank…
One integrated international
Private Bank
Market leader in wealthy Benelux market
■ Service Provider of choice for HNW and UHNW
clients
■ Dedicated, broad and differentiated service
offering
GDP / Capita (EUR)
2006
Real GDP CAGR
2006-11 est.
Population
(million)
Personal financial
assets pool / Capita
(EUR)
■ Leading position in Benelux and relevant
presence in international Private Banking
centers
Top 3 European Private Bank
Benelux
Germany
France
UK
32,304
27,967
29,212
31,395
2.4%
2.2%
2.1%
2.4%
27
82
60
59
69,148
36,634
32,550
94,644
A winning combination
■ Strengthened European footprint &
creation of strong growth platform in Asia
AuM 1,220
(EUR bn)
■ Similar client segmentation, service philosophy
and geographical focus
487
221
189
1
2
3
4
UBS
CS
Fortis
+ ABN
DB
182
5
176
6
138
7
130
8
Pictet HSBC Barc BNPP
-lays
104
88
9
10
■ Leverage best practices and local market
strengths into the international network
LO- CASA
DH
Note: all data on this slide are pro-forma, based on FY 2006 public information and company estimates
Presentation Agoria | 18 December 2007 | 21
… with a growth platform in Asia

ABN AMRO



Fortis





Netherlands

Belgium

France

UK

Italy
Poland
Jersey/Guernsey
Spain
Luxembourg
Switzerland
Germany
 
 
Hong Kong
Singapore
  Taiwan

Curacao
  UAE


Presentation Agoria | 18 December 2007 | 22
Indonesia
India
Getting you there.
Thank you
Presentation Agoria | 18 December 2007 | 23