Leading Growth in EuropeThe Executive Perspective

Dolf Collee

Member of the Managing Board

Annual Conference of the Foundation for European Leadership

Amsterdam, 23 September 2005

Leading Growth in Europe

1. The Road to Growth

2. Growth in Europe 3. Leading Growth

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Leading Growth in Europe

ABN AMRO’s Road to Growth - in three phases

Making the organisation transparent

Creating focus

Formulating and realising a growth strategy

2

ABN AMRO’s Road to Growth – Phase I

Making the organisation transparent Before 2000 2000

Strategic Business Units

Client lead

Consumer & Commercial

Clients

Wholesale Clients

Private Clients & Asset Management

Divisions

Geography lead

Netherlands

Investment Banking & Global Clients

International

3

Introductionof

“Managing for Value”

Visible revenue streams and profitability

Allocate capital and (human) resources to activities with highest

(future) returns

ABN AMRO’s Road to Growth – Phase I

Making the organisation transparent

Consumer

“Playing to our strengths”

Mid-marketStrategy

Market lead

Commercial

Mid-MarketClients

Multi-NationalCorporations

TopPrivateClients

Mid-Market /Financial Institutions

Private Clients /Mass Affluent

Mass Retail Small Business

Transparency led to: Better and more open dialogues

– Based on facts

– Organisation and clients leading Better-founded follow-up action Started at the top

Reflected throughout organisationResulted in improved insight

into our performance in - specific client segments

- specific products

- product-market combinations

4

ABN AMRO’s Road to Growth – Phase II

Creating Focus

ABN AMRO created focus supported by Managing for Value

Do activities add value in the short and long term?

– Reorganisations, e.g. “No Detours” in the Netherlands

– Divestments, e.g. WCS: From 10 to 3 BU’s and withdrawal from 10 countries

Are activities focused on our strengths?

– Divestments and investments, e.g. US: Sale of European American Bank and investment in Michigan National.

Are activities part of our core business?

– Divestments, e.g. Sale of Leaseplan, Bank of Asia and Trust

As a result, focus on mid-market segment

of our consumer and commercial clients5

ABN AMRO’s Road to Growth – Phase III

Formulating a growth strategy

Financial ambition Financial target

To be in the top five An average Return on Equity of our self selected peer group of 20% over the period 2005 – 2008. in terms of total return to shareholders at the end of every four-year cycle.

Our ambition and target

The conditions: Client Intimacy and loyalty is key

The value proposition for our mid-market customers:

Professional employees who create a long term partnership through innovative and competitive products and services.

– Innovation example: Private Investor Products

Making more possible

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Our Growth Strategy

Growth in Europe

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Growth in Europe

Europe as single market from a banking perspective

Europe: Is the sum of several countries

– Each country has own banking rules, authorities and competitors

– Strong local markets, e.g. co-operatives

Growth in Europe: Is investigating your opportunities in every single country

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Growth in EuropeSustainable growth opportunities in Europe

based on our growth strategy:

1&2. Grow existing clients and new clients in existing markets

- Is business as usual and limited by country boundaries

Conclusion: Tough competition

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3. Organic growth

- On average the European markets are too mature for organic growth, but markets like Romania are interesting growth markets

Conclusion: Few opportunities4. Acquisitions

- Depend on life cycle of a country’s banking industry and protection measures Conclusion: Fragmented view

Leading Growth

Sustainable Growth and Values

Our Corporate Values and Business Principles are key in realising sustainable growth

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Growth in Europe

THE EUROPEAN DREAM

Sustainability & quality of life

“Thick” enough?

Enough drive?

Source: Het Financieele Dagblad

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Leading Growth

Continual and Cyclical Process with Value Focus

1 Clear Focus…

2 – 4 …

Customer-

Driven Plans…

5 – 6 ...

Turning

Plans Into

Results…

Select Growth

Platforms

Build Deep

Customer

Insight

Remove

Organisational

Growth Barriers

Target Headroom For

Profitable Growth

Aligning Operations

Address

Growth

Priorities

1

2

3

4

5

6

Deliver Growth Strategies

Develop Growth Strategies

ValueFocus

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Leading Growth

Leading growth through people and leadership

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Leading Growthin Europe