New structure for Almanij / KBC Group

Joint presentation by Almanij and KBC

23 December 2004

Visit www.kbc.com or www.almanij.be

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Legal disclaimer

This presentation is intended for information purposes only.

Neither the presentation nor any of the transactions referred to herein constitutes an offer of securities for sale or an offer to acquire or exchange securities.

The distribution of this presentation in certain jurisdictions may be restricted by law, and persons into whose possession this presentation comes should inform themselves about, and observe, any such restrictions.

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Conference guidelines This conference is being held on 23 December 2004 at 10.30 am

CET. The presentation will be followed by a Q&A session for the press. The conference will be held in Dutch and simultaneously translated.

Participants who are present in the conference room may use channel 1 for the translation into French, 2 for the translation into English.

The live Webcast of this conference (audio or video broadcast) in Dutch, English and French may be accessed at www.kbc.com. Replay facility until 2 March 2005.

Alternatively, you can listen in on the conference (in Dutch, English or French) by dialling +32 2 290 1411, +44 207 162 0185 or +1 888 222 0364. Replay facility until 2 March 2005.

An additional conference call with a Q&A session for analysts and investors (in English) is scheduled for 1.30 pm CET (dial-ins: +32 2 290 1411, +44 207 162 0185 or +1 888 222 0364). Replay until 2 March 2005.

W. BreeschKBCChairman

J. HuyghebaertAlmanijChairman

L. PhilipsAlmanijManaging Director

W. DuronKBCChief Executive

A. BergenKBCDeputy CEO

E. Verwilghen KBLChief Executive

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Today’s agenda

I. Introduction and transaction highlights Willy Breesch

II. Transaction rationale and corporate governance Jan Huyghebaert

III. Strategic vision and unified management Willy Duron

IV. Timetable and transaction structure Luc Philips

V. Value-drivers for the KBC Group André Bergen

Appendices

Willy BreeschChairman of the Board of Directors, KBC Bank and Insurance Holding Company

I. Introduction andtransaction highlights

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Proposed transaction Streamlining of Almanij / KBC Group structure:

1. Unconditional public cash tender offer by Almanij for KBL shares (not yet owned by the Group)

2. Merger of Almanij and KBC (legal merger by way of the acquisition of Almanij by KBC)

3. Unified strategy and management

* Ticker code: KBC

The newly created company will be called 'KBC Group NV' and will continue to be listed on Euronext * Mr. J. Huyghebaert will be nominated as Chairman of the Board. Mr. W. Duron will be nominated as CEO.

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Proposed transaction Current:

Post-transaction:

Free float(approx. 30%) Core shareholders

Almanij

KBCBank & Insurance

KBLEuropean Private Bankers

GevaertPrivate Equity

KBC Bank KBC Insurance KBCAsset Management

Free float(approx. 47%) Core shareholders

KBC Group NV

KBCBank

KBCInsurance

KBCAsset Management

KBL European Private Bankers

Gevaert Private Equity

Merger exchange ratio: 1.35 new KBC shares per Almanij shareOffer price per KBL share : 150 (ordinary) and 135 euros (preference)

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Key figures for the new KBC Group

Important financial Group in Euroland (top-10 in banking) with combined market capitalization of approx. 21 bn euros (and free float of 47%)

Combined shareholders’ equity of 12 bn euros and total assets of 277 bn euros (pro forma 30-Sep-04)

Combined consolidated net profit for the first nine months of 2004 of 1 210 m euros (pro forma)

Jan HuyghebaertChairman and Managing Director, Almanij

Foto

II. Transaction rationaleand corporate governance

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Anticipated transaction benefits

Increased transparency through simplified Group structure and governance

Unity of strategy, capital and management Flexibility maintained to fully implement current strategy Enhanced efficiency, with business synergies within the Group

Increased share liquidity, thanks to pooling of two listed entities and higher free float

Elimination of holding-company discount Improved visibility on capital markets

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Shareholder stability

Stake of core shareholders at a level slightly upwards

of 50% Shareholder agreement (MRBB will become a party)

Desire of Almanij’s current majority shareholders to maintain anchor of stability: Committed to support long-term strategic

development of the Group

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Corporate governance principles Ensuring that company is run in best long-term interests of all

shareholders Compliance with good market practice, guided by new Belgian

‘Corporate Governance Code’ (in force as of 2005) ‘One share, one vote’ principle Non-executive chairman Board sub-committees (Nomination / Remuneration / Audit)

with significant role of independent directors Protocol of ‘Executive Committee’ autonomy (within the

framework of the general strategy defined by the Board)

Performing internal control and risk management

Regular and accurate disclosure to market on strategy and financials

High ethical standards, commitment to socio-environmental concerns

Willy DuronManaging Director and CEO,KBC Bank and Insurance Holding Company

III. Strategic vision andunified management

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Unified strategy Tie private banking/private equity expertise into successful

bancassurance model

Maintenance of core geographic focus on Belgium, CEE and private banking throughout Europe

CEE and European private banking network expected to remain long-term earnings drivers

Revenue and cost synergies through closer intra-group co-operation

Balanced risk profile through diversified business portfolio

Optimal capital allocation to support higher growth/profitability by activity/geographic area

Solid solvency levels and credit ratings

Maintenance of anchor of stable shareholders, guaranteeing continued independence and future strategic development

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Geographical presence in Europe

Top-3 bank/insurance player in CEE-5Czech RepublicHungarySlovakiaPolandSlovenia

Top-3-player in BelgiumRetail bancassurancePrivate bankingCorporate banking

European private banking network:>100 locations across 9 other countriesFrance and MonacoGermanyItalyLuxembourgNetherlandsSpainSwitzerlandUK

Selective corporate banking network:selective presence in 6 countries outside Belgium and CEEFranceGermanyIrelandNetherlandsSpainUK

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[ 12 ]

Impla ntati ons

Le groupe KBL en Europe : 110 implantations répart ies dans 11 pays européens

GRANDE-BRETAGNE

Brown, Shipley & Co.Fil iale (s iège) : B rown Shipley P ri vate Bank (Jersey)

FRANCE

KBL FranceFil iales (s iège) : Europe Egi de Finance (Paris),Kempf (Nancy), Michaux Gesti on (Lyon)

SUISSE

Kredietbank (Suisse)Succursal es à Lausanne, Lugano et Z uri ch

Fil iale (s iège) : P rivagest (Genève)

GRAND-DUCHÉ DE LUXEMBOURG

Kredietbank LuxembourgFil iales à Luxem bourg : Banque Conti nentale

du Luxem bourg, K redietrust Luxem bourg

ALLEMAGNE

Merck Finck & Co,Privatbankiers

ITALIE

Fumagalli Soldan SIM spa

PRINCIPAUTÉ DE MONACO

KB Luxembourg (Monaco)

PAYS-BAS

Theodoor Gilissen Bankiers

IRLANDE

KBL Bank Ireland

ESPAGNE

Banco Urquijo

BELGIQUE

Puilaetco Bankers

Activities of KBL european private bankers

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Unified management team Appointment of Executive Committee at KBC Group level:

Main responsibilities: Overseeing unity of strategic vision and execution Group-wide risk and capital management Financial planning and reporting Shareholder relations

Supported by limited number of corporate functions

In start-up/transition phase, focus on: Organization of central risk and capital management Development of unified strategy on private banking,

private equity and real estate activities Group synergy projects

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Unified management team

Composition of ‘Group Executive Committee’:

Appointment of 3 Executive Directors:

Willy Duron (President and Group CEO)

André Bergen

Etienne Verwilghen

Additional members along business lines (appointment after start-up/transition period)

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Key financials Balance sheet total: 277 bn euros (pro forma 30-Sep-04):

Capital: 12 bn - total risk equity: 21 bn Customer deposits: 164 bn – customer loans: 104 bn Technical provisions, insurance: 16 bn

Net profit: Pro forma 2003: 1 304 m euros (ROE: 12%) Pro forma 9M04: 1 210 m euros (ROE: 14%)

Solvency levels (pro forma 30-Sep-04): Tier 1, banking: 9.5% Solvency margin, insurance: 341%

Headcount: ca. 52 000 - customers: ca. 11 000 000

Credit ratings expected to remain at current levels

Luc PhilipsManaging Director, Almanij

IV. Timetable and transaction structure

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Expected transaction timetable *

Step 1 Approval by supervisory authority and publication of prospectus for bid for KBL

Expectedearly Jan-05

Step 2 Almanij’s bid for KBL shares not yet owned by the Group

Starting31-Jan-05

Step 3 Publication of result of Almanij’s bid for KBL shares (followed by request for delisting)

14-Feb-05

Step 4 Final approval by supervisory authority and publication of KBC Group listing prospectus

Expected early Feb-05

Step 5 Merger of Almanij and KBC (EGMs) 02-Mar-05

* Indicative calendar

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Rationale behind tender offer for KBL

Logical step in streamlining Group: operational entities to be held by integrated listed company

‘Liquidity window’ for KBL shareholders to exit prior to the creation of the new Group (delisting of KBL will be applied for)

Prior to the merger, Almanij will make an unconditional cash offer for KBL shares

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Legal highlights Almanij’s cash bid for KBL shares:

Public tender offer (Luxemburg-issued prospectus) Aim to acquire as many shares as possible

(N.B.: a delisting will be applied for) Offer for both the ordinary and preference shares No additional external funding required

(activation of existing Commercial Paper programme)

Merger of Almanij and KBC: Merger by way of acquisition of Almanij by KBC Almanij shareholders will receive new 'KBC Group shares'

(no cash consideration), entitled to dividend as of 01-Jan-04 Merger report is available as of 1 month prior to the EGMs Relevant EGM voting procedure: 50% of share capital

represented and 75% approval by the attending shareholders of the two companies

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Valuation highlights Market practice methodology, based on 30-Sep-04 figures

Bid price for KBL: Ordinary shares: 150 euros/share (premium of 10.3% to

average market price of last 3 months to 20-Dec-04*) Preference shares: 135 euros/share (premium of 16.3% to

average market price of last 3 months to 20-Dec-04*)

Merger considerations: Exchange ratio: 1.35 (27 KBC shares for 20 Almanij shares,

bringing the no. of KBC shares from 310 710 645 to 366 284 665)

For comparison:

* For practical reasons, closing prices of 20-Dec have been used for comparison purposes** Last trading day before announcement of examination of Group structure on 22-Nov-04 ** KBC at market price and Almanij at intrinsic value calculated as the “roll-up” of the underlying stakes using market prices for quoted ones

Situation at19-Nov-04**

Situation at 20-Dec-04*

Avg. 6 monthsto 20-Dec-04

Avg. 3 months to 20-Dec-04

Market exchange ratio 1.06 1.27 1.10 1.07

Intrinsic value exchange ratio *** 1.35 1.37 1.37 1.38

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Change in group structure

* Excluding intragroup cross holdings and possible ATO conversion

Current situation:

67.2%* 100%71.9% *

CERA/Almancora37.9%

Almanij NV

Other committed shareholders 15.8%

MRBB16.6%

Free float28.7%

KBC KBL Gevaert

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Change in group structure

* Including 1.5% ESOP hedge in KBC Group NV** Directly and indirectly

CERA/Almancora27.3%

KBC Group(Own shares : 2.5%*)

MRBB12.0%

Other committed shareholders 11.4%

Free float46.6%

KBC Insurance KBC AM KBL

Post-transaction:

KBC Bank Gevaert

100% 100% 100%** to 100% 100%

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Other shareholder information

Transactions subject to final approval of supervisory authorities in Belgium and Luxemburg (expected Jan/Feb-05)

Merger reports are available as of one month before EGM’s (the latter are expected for 02-Mar-05)

Proposed legal status of shares of (new) KBC Group same as current KBC shares

On merger, no material changes to be made to articles of association of KBC

After this announcement, the existing (and approved) share repurchase programmes may be reactivated

André BergenManaging Director and Deputy CEO,KBC Bank and Insurance Holding Company

V. Value-drivers forthe KBC Group

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Value-drivers for KBC group

Continued operational stability

Enhanced efficiency, with business synergies

Greater free float and increased share liquidity

Improved visibility in capital markets

Consistent dividend policy

1

2

3

4

5

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Continued operational stability Robust value of existing business portfolio on the back of:

KBC’s sound fundamentals: Strong competitive position in Belgium Solid franchise in CEE

KBL’s low-risk revenue stream from private banking activities:

Strong wealth-management expertise Pan-European network

Existing experienced management team and employees to deliver on strategic ambitions and financial targets

Balanced risk profile through diversified business portfolio

Optimal capital allocation to support growth and profitability, while aiming to maintain solid solvency levels and credit ratings

Shareholder stability will guarantee continued independence and future strategic development

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Enhanced efficiency, with business synergies New structure enabling unified strategy and, where

relevant, integrated operations

Synergy potential: Additional revenue growth based on complementarities of

product ranges, brand names and geographical presence Cost savings based on overlapping functions and

activities

‘Synergy projects’ to be launched in the fields of: Risk and capital management and other relevant

corporate functions Private banking business (activities of KBC Bank and KBL) Private equity management (activities of KBC Bank and

Gevaert) Real-estate activities (activities of KBC Bank and Gevaert) Support functions

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Greater free float and increased share liquidity

With expected market cap of approx. 21 bn euros, among top 10 banking shares in Euroland

Increased weighting in stock indices due to greater free float

Expected further expansion of (equity) research coverage

* Average of 6 months to 20-Dec-04

KBC (old) Almanij KBC (new)e

Market capitalization (€) 19 bn 15 bn 21 bn

Free float

% of shares outstandingSize (€)Daily traded volume* (€)

31%6 bn19 m

29%4 bn10 m

47%10 bn>30 m

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Elimination of holding company discount

* Difference (in percentage terms) between market value and intrinsic value based on SOP at market value** Last trading day before announcement of examination of Group structure on 22-Nov-04

31%

25%26%

25%

22%

7%

23%

31-Dec-99 31-Dec-00 31-Dec-01 31-Dec-02 31-Dec-03 19-Nov-04** 20-Dec-04

Almanij’s historic holding company discount *

Average: 25%

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Improved visibility in capital markets

Euroland top-30 banks, ranking by market cap *

* DJ Eurostoxx banks constituents as at 20 December 2004 (estimate for KBC Group)

BSC

HBN

P PA

RIB

AS

BBVA

DEU

TSC

HE

BAN

K

CRED

IT A

GRIC

OLE

ABN

AM

RO

SOCIE

TE

GEN

ERALE

UN

ICRED

IT

FORTIS

INTES

A B

CI

DEX

IA

SP I

MI

AIB

HVB

BIR

POP

BACA

ERST

MED

CO

M

NBG

EUR

CAP

MPS

BCP

AN

AL

PV ANKB

C

KBC Group : approx. 21 bn euros

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Consistent dividend policy To continue the past policy, and supported by its strong

solvency and enhanced profitability, KBC Group intends to pay out a steadily growing dividend

Historical (gross) cash dividend per share:

1.231.42 1.48 1.52 1.64

1999 2000 2001 2002 2003

KBC (4-yr CAGR: 7%)

EUR

1.081.22 1.31 1.38 1.50

1999 2000 2001 2002 2003

Almanij (4-yr CAGR: 9%)

EUR

New structure for Almanij / KBC Group

The floor is now open for questions from the Press

Reminder: a Q&A session for investors and analysts (conference call in English) will be held later today at 1.30 pm CET. Dial-ins: +32 2 290 1411, +44 207 7162 0185 or + 1 888 222 0364.

…/…

Q & A panel

Appendices

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Ownership analyses - current situation

N° of shares (000)Holding in

AlmanijHolding in KBC

CERA/Almancora Group 74 192 -

MRBB 32 553 -

Other committed shareholders

30 968 -

Core shareholders 137 712 (70.3%) -

Almanij 265 208 788

KBC 1 415 5 885

KBL 150 679

Gevaert - 329

Intragroup 1 829 (0.9%) 215 681 (69.4%)

Free float 56 282 (28.7%) 95 030 (30.6%)

Total outstanding 195 824 (100%) 310 711 (100%)

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Ownership analyses - projected situation

N° of shares (000) Holding in KBC Group

CERA/Almancora Group 100 159 27.3%

MRBB 43 946 12.0%

Other committed shareholders 41 807 11.4%

Core shareholders 185 911 50.8%

KBC Group NV (ESOP hedge) 5 647 1.5%

Gevaert 3 716 1.0%

Intragroup 9 362 2.6%

Free float 171 011 46.7%

Total outstanding 366 285 100.0%

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4 988 773 53 5 814 Revenue

-3 102 -493 -81 -3 677 Expenses

-179 -87 -12 -278 Provisions & value adjustm.

1 707 193 -40 1 859 Profit, ordinary activities

-18 Extraordinary result

-495 Taxes

-135 Minority interests

1 210 Net profit, Group share

Pro forma P&L, KBC Group, 9M 2004Pro forma segments

Bankingbusiness

Insurancebusiness

Holding Co & other

Total (m euros)

30-Sep-04

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104.1 - - 104.1 Customer loans

79.9 17.0 1.6 98.5 Securities portfolio

73.5 2.1 1.0 76.6 Other (incl. loans to banks)

257.6 19.0 2.6 276.7 Total assets *

20.7 Total risk equity

163.6 - - 163.6 Customer deposits

- 16.2 - 16.2 Techn. provisions, insur.

74.5 1.1 3.0 98.0 Other (incl. funding on market)

238.0 17.2 3.0 276.7 Total liabilities *

Pro forma B/S, KBC Group, 30-Sep-04Pro forma segments

Bankingbusiness

Insurancebusiness

Holding Co & other

Total (bn euros)

30-Sep-04

* B/S total, excl. eliminations

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6 446 847 161 7 453 Revenue

-4 237 -499 -101 -4 838 Expenses

-739 -38 -31 -809 Provisions & value adjustm.

1 469 310 28 1 807 Profit, ordinary activities

57 Extraordinary result

-494 Taxes

-66 Minority interests

1 304 Net profit, Group share

Pro forma P&L, KBC Group, 2003Pro forma segments

Bankingbusiness

Insurancebusiness

Holding Co & other

Total (m euros)

31-Dec-03

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6 618 852 102 7 572 Revenue

-4 350 -457 -101 -4 908 Expenses

-737 -3 -96 -836 Provisions & value adjustm.

1 530 393 -94 1 829 Profit, ordinary activities

-81 Extraordinary result

-528 Taxes

-181 Minority interests

1 038 Net profit, Group share

Pro forma segments

Bankingbusiness

Insurancebusiness

Holding Co & other

Total (m euros)

31-Dec-02

Pro forma P&L, KBC Group, 2002

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Contact information

Press contacts: KBC Press Office:

Tel. +32 2 429 85 45 – viviane.huybrecht@kbc.be Almanij Press Office:

Tel. +32 3 202 8714 – philippe.verly@almanij.be

Investor relations: KBC Investor Relations Office:

Tel. +32 2 429 4051 – investor.relations@kbc.com Almanij Investor Relations Office:

Tel. +32 3 202 8713 – investor.relations@almanij.be

www.kbc.com or www.almanij.be