Van Lanschot reinforces its capital position

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Van Lanschot reinforces its capital position

• 1 December 2008

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Programme

• Van Lanschots strategy
• Reinforcement capital position
• Financial performance first 10 months 2008
• QA

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Van Lanschots strategy (I)

• Distinct positioning
• Real alternative to the large banks
• Independence is our distinguishing feature

• Full-service niche bank
• Large enough to provide full-service concept to
  target groups
• Small enough to ensure genuine personal service

• Client intimacy
• The client is key, also in terms of client due
  diligence
• Best in class products / full open architecture

• Private Banking
• Wealthy private individuals

• Business Banking
• Enterprises and entrepreneurs - combined
• Aligned to private banking

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Van Lanschots strategy (II)

• Objective to be the best private bank in the
  Netherlands and Belgium
• Increased focus on wealthy individuals and
  medium-sized (family) businesses (entrepreneurs
  and their enterprises)
• Specialist teams offering tailor-made solutions
• Emphasis on asset planning

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Low risk profile strong solvency position

• Deliberate choice for a low risk profile in line
  with profile of a private bank
• No direct or indirect investments in the subprime
  sector, Alt-A RMBS, CDOs, SIVs or exposure to
  Lehman Brothers or Landsbanki
• Additional 100m in Lower Tier II capital issued
  in August 2008
• Single A (stable outlook) ratings reconfirmed by
  Standard Poors and Fitch in July 2008

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Programme

• Van Lanschots strategy
• Reinforcement capital position
• Financial performance first 10 months 2008
• QA

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Reinforcement capital position

• Van Lanschot issues  150 million in Tier I
  preference shares to institutional and private
  investors
• Issue leads to a further strengthening of already
  strong solvency position
• New capital increases the banks Tier I ratio to
  10.1 and its BIS total capital ratio to 12.9
  (pro forma)
• Van Lanschot aims for early implementation of
  F-IRB approach under Basel II as from January
  2010 this will have a substantial positive
  impact on the capital ratios

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Van Lanschot has strong solvency ratios
Capital ratios at 31 October 2008 (pro forma)
Solvency position pre transaction
Solvency position post transaction
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Details of the issue

• Issue of 150 million of non-listed preference
  shares
• Annual coupon of 7.5
• Group of existing and new institutional and
  private shareholders
• Post transaction, the preference shares will
  represent approximately 9 of Van Lanschots
  outstanding shares
• The Dutch Central Bank classifies the preference
  shares as Tier I capital. The preference shares
  will rank equal to Van Lanschots ordinary shares
  A and B (pari passu)
• Payment and delivery of the preference shares
  will take place
• on 29 December 2008

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Programme

• Van Lanschots strategy
• Reinforcement capital position
• Financial performance first 10 months 2008
• QA

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Despite its strong fundamentals, the turmoil on
the financial markets indirectly affects Van
Lanschots results
In mln

• Van Lanschots results are negatively affected by
  the market situation
• Bearish sentiment on the stock market resulted in
  fewer and smaller securities transactions causing
  lower transaction commission income
• Falling share prices adversely affected
  management and performance fees
• Net profit for the first 10 months of 2008
  amounts to  73.3 million

Net profit H2 2003 October 2008
Including Kempen Co Including profit
of 20.8 million on sale of Van Lanschot
Assurantiën
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Sufficient liquidity
100 approx. 920 mln, as of 31 October 2008

• Funding ratio 92.7 at 31 October 2008
• In H1 2008 Van Lanschot repaid and repurchased
• 1 bln of Floating Rates Notes
• Current liquidity Van Lanschot
• Net lender on interbank money market, maximum
  term of 3 months
• 1.5 bln available eligible collateral DNB/ECB,
  comprising of investment portfolio, eligible
  assets securitisation transaction and general
  collateral management
• liquidity surplus (DNB definition) per 31 October
  2008 1.8 bln (week) 1 bln (month)

Funding ratio development
Overview of investments available for sale
Funding ratio public and private sector
liabilities / total loans and advances
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Exceptional items in last two months 2008

• Falling equity markets lead to losses on the sale
  of listed shares in the investment portfolio of
  approximately  50 million before tax
• An additional depreciation on the IT project of
  around
•  17.5 million before tax will be recognised in
  2008
• - Van Lanschot will form a provision for Icesave
  in 2008 for an
• amount of  5 million (savings guarantee
  scheme)
• - Forecast net profit for 2008 around  30
  million

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Programme

• Van Lanschots strategy
• Reinforcement capital position
• Financial performance first 10 months 2008
• QA

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• Disclaimer
• Forward looking statements
• This presentation contains forward looking
  statements concerning future events. Those
  forward looking statements are based on the
  current information and assumptions of Van
  Lanschot management concerning known and unknown
  risks and uncertainties.
• Forward looking statements do not relate to
  definite facts and are subject to risks and
  uncertainty. The actual results may differ
  considerably as a result of risks and
  uncertainties relating to Van Lanschots
  expectations regarding such matters as the
  assessment of market risk or possible
  acquisitions, or business expansion and premium
  growth and investment income or cash flow
  predictions or, more generally, the economic
  climate and changes in the law and taxation.
• Van Lanschot cautions that expectations are only
  valid on the specific dates, and accepts no
  responsibility for the revision or updating of
  any information following changes in policy,
  developments, expectations or the like.
• The financial data included in this presentation
  have not been audited.