latam conference

LATAM Conference

Business Unit Brazil of C&CC

BU Brazil, March 2004

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Current Brazilian Business Environment

Overview of ABN AMRO Brazil

C&CC Brazil Financial Performance

Competitive Analysis

Sudameris Acquisition

Outlook 2004 / 2005

Table of Contents

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Outlook 2004 / 2005

Table of Contents

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Economic environment

After the election period in 2002, the Real appreciated and the sovereign spread narrowed, reaching the 500 bp level

Sources: Brazilian Central Bank, Bloomberg

BRL EMBI

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

Jan-

02

Feb

-02

Apr

-02

May

-02

Jul-0

2

Aug

-02

Oct

-02

Nov

-02

Dec

-02

Feb

-03

Mar

-03

May

-03

Jul-0

3

Aug

-03

Sep

-03

Nov

-03

Dec

-03

Feb

-04

0

500

1000

1500

2000

2500

3000

BRL / USD EMBI Brazil (bps)

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0.02.04.06.08.0

10.012.014.016.018.020.0

Jan-

02

Mar

-02

May

-02

Jul-0

2

Sep

-02

Nov

-02

Jan-

03

Mar

-03

May

-03

Jul-0

3

Sep

-03

Nov

-03

Jan-

04

Mar

-04

May

-04

Jul-0

4

Sep

-04

Nov

-04

0.00

0.50

1.001.50

2.00

2.50

3.003.50

4.00

4.50

IPCA (%, 12M) BRL/USD


The inflationary pressures due to the exchange rate overshooting receded significantly and are expected to stabilize along 2004

Sources: IBGE, ABN AMRO

forecast2005 FCSTBRL/USD (Dec,eop)3.25

2005 FCSTIPCA (12M, eop)5.3%

IPCA% BRL

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Central bank will likely continue to gradually ease monetary policy in 2004, but reducing interest rates at a lower pace than in 2003

Sources: Brazilian Central Bank, Bloomberg, ABN AMRO

forecast

IPCA% Selic%

0.02.04.06.08.0

10.012.014.016.018.020.0

Jan-

02

Mar

-02

May

-02

Jul-0

2

Sep

-02

Nov

-02

Jan-

03

Mar

-03

May

-03

Jul-0

3

Sep

-03

Nov

-03

Jan-

04

Mar

-04

May

-04

Jul-0

4

Sep

-04

Nov

-04

0.0

5.0

10.0

15.0

20.0

25.0

30.0

IPCA (%, 12M) Selic (% p.a.)

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The declining interest rates will enable significant volume growth in the still underdeveloped Brazilian banking market. The penetration of total credit shows a large long term growth potential

24% 28% 33%

83% 86%

141%148%

Mexico Brasil Argentina USA Chile U.K. NL

Total Credit / GDP1

1. Data as of year- end 2001. Sources: World Bank, European Union Web site, IBGE

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Political environment

Government and President Lula show a comfortable approval rating

Jan 23 2003 March 13 2003 April 23 2003 June 03 2003 July 15 2003 Aug 26 2003 Oct 21 2003 Dec 08 2003

Good/excellent 57 45 48 52 46 48 42 41Regular 18 34 35 36 39 39 42 42Bad/Negative 2 8 9 7 10 10 12 13Don´t know 24 13 8 6 5 3 4 4

Favorable - Unfavorable 54 37 38 44 36 38 29 28

Source: CNT / Sensus, ABN AMRO.

Government´s approval rating (%)

Jan 23 2003 March 13 2003 April 23 2003 June 03 2003 July 15 2003 Aug 26 2003 Oct 21 2003 Dec 08 2003

Approves 84 79 74 78 78 77 71 70Disapproves 7 12 14 13 14 16 21 21Don´t know 10 9 12 9 8 7 9 9

Favorable-Unfavorable 77 67 60 65 63 61 50 49

Source: CNT / Sensus, ABN AMRO.

President Lula´s approval rating (%)

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Political environment

Government agenda

Continuous effort to complete reforms

Revision of mortgage legal framework

New regulation to reduce number of court actions against the financial system regarding interest rates

New Bankruptcy Law

Labor regulation reform

Judiciary reform

New Central Bank Law

Public and Private Partnership regulation

Power sector framework

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Outlook 2004 / 2005

Table of Contents

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ABN AMRO Brazil – Overview

ABN AMRO Brazil has a leading presence in Brazil’s financial services sector, enhanced by the acquisition of Sudameris

– Retail Banking - 1st largest foreign institution

– Consumer Finance - Largest car financier in Brazil

– Commercial Banking - Maintains relationship with more than 2,500 companies

– Insurance - Currently positioned as the 7th largest insurer, and 5th largest pension fund by reserves

– Wholesale Banking - Maintains relationship with over 400 of the largest corporations in Brazil

– Asset Management - 4th largest Asset Manager in Brazil, with R$ 25.8 bln of assets under management in January, 2004

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ABN AMRO Brazil – Overview

Total Assets (in R$ mln) Total Loans (in R$ mln)

Net Income (in R$ mln)

All figures based on Brazilian GAAP

Average annual IPCA inflation in the period: 8.9%

22,26027,514

31,81136,952

55,424

43,800

Dec-99 Dec-00 Dec-01 Dec-02 Dec-03ABN AMRO ABN AMRO + Sudameris

9,57711,701

14,06517,359

27,236

19,770

Dec-99 Dec-00 Dec-01 Dec-02 Dec-03

ABN AMRO ABN AMRO + Sudameris

420

649784

1,208 1,137


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ABN AMRO Brazil – Strategic Vision

CLIENT FOCUS

PEOPLESKILLED AND COMMITTED

COMPETITIVEINFRASTRUCTURE

CORPORATEVALUES

CLIENT SATISFACTION

RESULTS

SHAREHOLDERS EMPLOYEES COMMUNITY

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ABN AMRO Brazil – Strategy

ABN AMRO Brazil focuses on being one of the most

efficient and valued banks among the top 3 privately owned

retail banks in the Brazilian market, through a segmented

approach

ABN AMRO aims to maintain a leadership position in the

Auto Consumer Finance segment in Brazil, through its

Aymoré Financiamentos brand

ABN AMRO Brazil focuses on value creation through

synergies among the Commercial Banking, Retail and

Wholesale segments (i.e. payroll, value chain)

Retail

Consumer Finance

CommercialBanking

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Retail banking

* June 2003 figures. Mini-branches: branches on companies’ premises

ABN AMRO has a strong presence in Brazil, and is playing an important role among the top retail banks

Dec 2003 Branch Network (incl Mini-branches)

Bank # of Branches Rank

Bradesco 5,167 1

Banco Itaú 3,172 2

AA + Sudameris 1,947 3

Santander* 1,909 4

HSBC* 1,516 5

Unibanco 1,279 6

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Client base ABN AMRO Brazil

Significant organic growth based on strong corporate franchise. In 2003,

incorporation of Sudameris’ client base of approximately 700 thd. clients

In million clients

5.66.2

6.8 7.1

8.3


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Consumer finance

ABN AMRO Consumer Finance division is Brazil’s largest car

financier through its Aymoré brand, driven by strong customer

service and a low efficiency ratio

Car Financing Market Share

Source: DETRAN

5.7%

9.7%10.1%

16.7%

22.0%

0.0

5.0

10.0

15.0

20.0

25.0

ABN AMRO Bradesco Itaú Votorantim Santander

2nd Sem. 01 1st Sem. 02 2nd Sem. 02 1st Sem. 03

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Asset management

3rd largest privately owned retail driven asset manager

4th largest asset manager after Sudameris acquisition

Source: ANBID

January 2004

Assets Under Management

R$ blnMarket Share

1 Banco do Brasil 108.4 20.2%2 Bradesco 74.7 13.9%3 Itau 72.2 13.4%4 ABN AMRO + Sudameris 25.8 4.8%5 Citibank 25.7 4.8%6 CEF 25.6 4.8%7 Unibanco 24.5 4.6%8 HSBC 24.0 4.5%9 BankBoston 21.6 4.0%10 BSCH 19.8 3.7%

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Outlook 2004 / 2005

Table of Contents

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C&CC Brazil: Profit & Loss R$ mln

Figures in Dutch GAAP

R$ mln 2001 2002 2003 %ch 03/02

Revenues 3,852 4,760 5,883 23.6%Expenses (2,549) (3,316) (3,727) 12.4%Operating Profit 1,303 1,444 2,156 49.3%Provisions (394) (521) (887) 70.2%Oper. Profit Before Taxes 909 923 1,269 37.5%Taxes (75) (231) 496Net Profit 833 1,128 728 -35.5%

Efficiency Ratio 66% 69.7% 63.4%

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Outlook 2004 / 2005

Table of Contents

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Size

ABN AMRO Brazil is the 4th largest privately owned Brazilian bank by total loans and assets, and 3rd by deposits

Top Privately owned banks

All figures based on Brazilian GAAP as published by each institution

Loans Assets DepositsJune 2003 R$ bn R$ bn R$ bn

1 Bradesco 53.0 154.5 56.8 2 Itau 38.4 106.8 34.8 3 Unibanco 26.2 66.1 24.0 4 ABN AMRO + Sudameris 25.9 56.5 25.1 5 BSCH 14.5 52.8 18.1 6 Safra 12.2 30.3 7.7 7 HSBC 9.1 22.9 15.1 8 Bank Boston 7.7 19.6 2.7 9 Citibank 6.6 22.0 1.1

10 Votorantim 3.2 21.3 7.5

Loans Assets DepositsDecember 2003 R$ bn R$ bn R$ bn

1 Bradesco 54.3 176.1 58.0 2 Itau 38.7 118.7 36.7 3 Unibanco 27.9 69.6 25.4 4 ABN AMRO + Sudameris 27.2 55.4 26.7

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Efficiency

ABN AMRO Brazil had a substantial improvement on the efficiency ratio in 2003. The Sudameris integration costs will temporarily affect the efficiency ratio

Efficiency Ratio


56.8%

65.0%

55.7%55.9%

63.8%56.8%

52.4%

57.8%55.7%56.0%

49.5%

57.6% 58.1%

Bradesco Itau Unibanco ABN AMRO

Dec-01 Dec-02 Dec-03 Dec-03 (ABN AMRO + Sudameris)

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Client Focus

Loans / Total Assets ratio

ABN AMRO Brazil has expanded its relationship with the clients prioritizing the credit portfolio


49.1%

40.1%

32.6%30.9%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%


Dec-01 Dec-02 Dec-03 Dec-03 (ABN AMRO + Sudameris)

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Asset quality

Ranking E-H Loans (as per Brazilian Central Bank rule)

(criteria: > 90 days past due, a.o.)

Despite showing the largest loans/assets ratio, ABN AMRO Brazil’s overdue loans ratio is in line with peers


*

* ABN AMRO + Sudameris

Dec 2003

6.4%

7.7%

6.0%6.5%


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Outlook 2004 / 2005

Table of Contents

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The consolidation in the Brazilian banking market is continuing. Since Dec/01,

Bradesco has acquired Banco Mercantil de São Paulo, Banco Cidade (SMEs),

Banco do Estado do Amazonas, Banco Ford and BBVA Brazilian operation,

whilst Itaú acquired Banco Fiat and Banco BBA.

Considering size of portfolio, excellent client reach and high concentration of

branches in the state of São Paulo (the wealthiest state of Brazil where Banco

Real had historically lower market share), Sudameris was the best option to fit

ABN AMRO’s growth and strategic goals.

Sudameris improves ABN AMRO’s market share immediately, especially in

some specific segments like SMEs and upscale clients.

The integration of Sudameris operations enhances ABN AMRO’s competitive

positioning.

Sudameris - The rationale

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ABN AMRO concluded the acquisition of Sudameris on October 24th, 2003,

buying from Intesa its 94.57% stake in the total share capital of Banco

Sudameris Brasil S.A.. The final transaction amount for Intesa’s stake reached

R$ 2.2 bln, paid partially in cash (R$ 527 mln) and partially with shares of Banco

ABN AMRO Real S.A. (11.58%).

Expected synergy gains: R$ 300 mln per year as from 2005 onwards

*Includes mini-branches


Sudameris Factsheet

Dec 2003 R$ mlnAssets 13,450 Deposits 6,826 Loans 7,876 Total Revenue 1,603 Efficiency Ratio 66.4%

# employees 6,029 # branches* 340 # clients (thd) 700

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Asset Management Treasury Insurance (partial) Audit Private Banking Broker Risk Management and Credit Analysis (partial)

Already integrated

Developments

Unification of products and services of both Banks already defined

Communication Plan approved

Instalment of new equipment in the branch network already in progress (around 50% completed)

In October 2003, a Career Orientation Program was created, to support realocation of dismissed employees

Sudameris Integration

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Outlook 2004 / 2005

Table of Contents

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Inflation under control (IPCA FCTS 5.5%eop in 2004, 5.3%eop in 2005)

Lower volatility in FX rate (BRL/USD FCST at 3.25 at Dec 05, eop)

Lower interest rates (Selic FCST Dec 04 13%pa, Dec 05 12%pa)

Growing Credit Portfolio (25% growth FCST for 2004)

Improving Provisions (lower provisions/loans ratio)

Outlook 2004 / 2005

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Thank You

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Cautionary Statement regarding Forward-Looking Statements

This announcement contains forward-looking statements. Forward-looking statements arestatements that are not historical facts, including statements about our beliefs and expectations.Any statement in this announcement that expresses or implies our intentions, beliefs,expectations or predictions (and the assumptions underlying them) is a forward-lookingstatement. These statements are based on plans, estimates and projections, as they are currentlyavailable to the management of ABN AMRO. Forward-looking statements therefore speak only asof the date they are made, and we take no obligation to update publicly any of them in light ofnew information or future events.

Forward-looking statements involve inherent risks and uncertainties. A number of importantfactors could therefore cause actual future results to differ materially from those expressed orimplied in any forward-looking statement. Such factors include, without limitation, the conditions inthe financial markets in Europe, the United States, Brazil and elsewhere from which we derive asubstantial portion of our trading revenues; potential defaults of borrowers or tradingcounterparties; the implementation of our restructuring including the envisaged reduction inheadcount; the reliability of our risk management policies, procedures and methods; and otherrisks referenced in our filings with the U.S. Securities and Exchange Commission. For moreinformation on these and other factors, please refer to our Annual Report on Form 20-F filed withthe U.S. Securities and Exchange Commission and to any subsequent reports furnished or filedby us with the U.S. Securities and Exchange Commission.

The forward-looking statements contained in this announcement are made as of the date hereof,and the companies assume no obligation to update any of the forward-looking statementscontained in this announcement.

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