Goldman Winter Conference

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Goldman Winter Conference
March 20, 2003
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PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995 FORWARD-LOOKING STATEMENT DISCLOSURE
These presentation materials and discussion,
including related questions and answers, contain
forward-looking statements about issues like
anticipated first quarter and full-year 2003
earnings, anticipated level of net loan
charge-offs and nonperforming assets and
anticipated improvement in profitability and
competitiveness. Forward-looking statements by
their nature are subject to assumptions, risks
and uncertainties. Actual results could differ
materially from those contained in or implied by
such forward-looking statements for a variety of
factors including changes in interest rates
continued weakness in the economy, which could
materially impact credit quality trends and the
ability to generate loans failure of the capital
markets to function consistent with customary
levels delay in or inability to execute
strategic initiatives designed to grow revenues
and/or manage expenses consummation of
significant business combinations or
divestitures new legal obligations or
restrictions or unfavorable resolution of
litigation further disruption in the economy or
the general business climate as a result of
terrorist activities or military actions and
changes in accounting, tax or regulatory
practices or requirements.
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Keys Management Team
Chairman CEO
Henry L. Meyer III
Key Corporate Investment Banking
Victory Capital
Key Consumer Banking
McDonald Financial Group
Tom Bunn
Jack Kopnisky
Rick Buoncore
Bob Jones
1Key District Presidents
Staff Areas Chief Administrative Officer Tom
Stevens CFO Jeff Weeden Technology Bob
Rickert Human Resources Tom Helfrich


Yank Heisler
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Keys Major Lines of Business
2002 Net Income
Victory Capital Management High Net Worth Capital
Markets
Corporate Banking National Commercial R/E Nat.
Equipment Finance
Capital Partners16
Corporate Finance41
Consumer Banking43
Retail Banking Small Business Indirect
Lending National Home Equity
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The KCIB Structure

• An organization structure that aligns all
  products and people around clients
• KCIB now comprises all of Keys Corporate
  Banking, Capital Markets, Treasury Management,
  Commercial Real Estate, Equipment Leasing, and
  Investment Banking units

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KCIB Leadership
Tom Bunn
Cheryl Nickels
KeyBank Real Estate Capitaland Commercial Bank
Key Equipment Finance
Key Institutional Bank
KeyBank Global Treasury Management
KCIB Administration
Pam Carson
Chris Gorman
Paul Larkins
Linda Grandstaff
George Emmons
KCIB Portfolio Management
KeyBank Syndicated Finance
KeyBank Bank Capital Markets
KeyBank Taxable Fixed Income
KeyBank Equity Capital Markets
Will Barnes
Amy Carlson
Richard Owens
Dan Austin
Jack Schlifer
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How Were Building KCIB

• Align our product and intellectual capital in a
  single organization
• Focus our business on targeted clients and
  industries where we have a competitive advantage
• Use our capital strategically, with the right
  clients
• Become more important to our important clients
• Invest in businesses that fit our strategy

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A Rich Product Set to Cross Sell

• Origination Groups
• Key Institutional Bank
• Key Equipment Finance
• KeyBank Real Estate Capital
• KeyBank Commercial Bank

• Product Set
• Core Bank Products
• Equipment Leasing
• Portfolio Management
• Treasury Management
• Syndicated Finance
• Derivatives and Foreign Exchange
• Mergers Acquisitions
• Equity Capital Markets
• Private Debt Placement
• Fixed Income
• Asset Management

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Synergistic Locations
Geographic View of KCIB
Strategically focused and competitively sized
262 Offices in 32 States and 23 Countries
Lines of Business
Commercial Bank Real Estate Leasing Institutional
Bank Debt Capital Markets
28 offices are outside of the USA
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KeyBank Commercial Bank - (Middle Market)

• Clients 8,500
• Principally 10-250 million in annual
  revenues, within KeyBanks footprint markets
• Offices 35 (in footprint)
• Focus Greater penetration of current clients,
  identification of targeted prospects, and cross
  selling of Keys product set.
• Approach to Client Relationship-oriented and
  idea based, up tier to fee-based and more
  sophisticated capital alternatives as needs
  arise.
• Product Focus Equipment Leasing, Treasury and
  Asset Management, Bank Financing, Business
  Advisory and Capital Markets significant
  deposit-gathering initiative underway
• Intellectual Capital Long-term client
  relationship managers domiciled in local markets.
  New training and reward structures will drive
  cross-sell and penetration.
• Other Levers Keys brand awareness and
  community/business relationships in footprint
  markets access to capital markets expertise
  ability to provide complete range of financial
  solutions

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Key Institutional Bank

• Clients Approximately 1,200
• Principally 250 million-plus in annual
  revenues within and outside Key footprint.
• Offices 6 (footprint) and 6 (out of footprint)
• Focus Eight industries where Key/McDonald have
  traditional strength Consumer
  Energy/Utilities Financial Services Financial
  Sponsors Healthcare Industrial Institutional
  Geography Technology.
• Approach to Client Idea and solution based, not
  bank-finance driven. Levered by industry sector
  knowledge. Emphasis on prospecting in this
  category, and solidifying relationships.
• Product focus MA Debt and Equity Capital
  Markets Syndicated Bank Finance Strategic
  Business Advisory Equipment Leasing
• Intellectual Capital Integrated teams of
  corporate and investment bankers dedicated
  industry-focused research teams.
• Other Levers MA and Capital Markets
  transactions totaled 155 in 2002 18 billion of
  capital raised second best year ever.
  Significant core industry overlap between Key and
  McDonald.

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KeyBank Real Estate Capital

• Clients 1,000
• Principally middle market and institutional
  in 29 U.S. markets and 4 time zones
• Offices 6 (in footprint) and 23 (out of
  footprint)
• Focus Highly successful integration of bank and
  capital-markets financing capabilities and
  mortgage servicing in commercial real estate
  sectors.
• Approach to Client A client-focused
  organization that serves middle market,
  institutional and private equity clients through
  a single, unified sales force, meeting the total
  capital needs of target clients.
• Product Focus Commercial Banking, Mortgage
  Banking and Investment Banking, as well as Loan
  Syndications, Derivatives, Deposits, Cash
  Management, Private Banking and other core bank
  products
• Intellectual Capital Relationship managers and
  product specialty portfolio managers in 29 target
  metro markets. New training and reward structures
  will drive cross-sell and penetration.
• Other Levers 5th largest commercial real estate
  lender in U.S. 7th largest commercial mortgage
  loan servicer in U.S.

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KeyBank Real Estate Capital
Distribution of Assets
Geographic Distribution of Assets
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Key Equipment Finance

• Clients Approximately 20,000
• Customers in the U.S. and abroad, ranging
  from small businesses to middle market and large
  corporations, both inside and outside the Key
  footprint.
• Offices In the U.S., KEF operates from 46
  offices in most major cities across 25 states
  (inside and outside Key footprint) KEF also has
  multiple sales offices in 25 countries around the
  world.
• Focus To provide innovative and flexible
  financing customized to clients specific
  equipment and financial, tax and accounting
  needs Lead with Leasing initiative partners
  with other Key LOBs to introduce leasing as means
  of opening the door to cross-sell other Key
  products.
• Approach to Client Product-based and
  cross-selling to other Key LOBs are
  expected/rewarded.
• Product Focus Equipment Financing, Vendor
  Programs, Lease Advisory Services, Syndication
  Buy and Sell, and Leveraged Leasing. Products
  often cross-sold include Investment Banking,
  Merger Acquisition support, Foreign Exchange,
  Treasury and Asset Management, Cash
  Management/Depository Products.
• Intellectual Capital Relationship management
  focus, industry expertise, multiple in-house
  services and high performance sales culture.
• Other Levers Nations 6th largest
  bank-affiliated leasing company 8 billion
  equipment portfolio.

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Major KCIB Strategic Initiatives 2003

• Revenue Growth
• Alignment of commercial and investment banking
• Increase relationship profitability guidelines
• Align incentives with breadth and depth of
  relationship
• profitability
• Demand to get paid for use of Keys capital
• Deliver multiple Key/McDonald/Victory products
• Deposit Growth
• Cross-sell loans and deposits
• Focus on deposit-rich client segments

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Major KCIB Strategic Initiatives 2003

• Credit Quality
• Re-connect accountability with RMs
• Align incentives with credit quality
• Maximize Key-led transactions
• Expand Originate to Distribute Capability
• Floating Rate Syndications
• Private Debt Placements
• Fixed Income
• Product Management
• Focus Focus Focus