2011 annual results AMSTERDAM, 8 MARCH 2012 - Putting solidity - - PDF document

2011 annual results

AMSTERDAM, 8 MARCH 2012

1

• Putting solidity before profit

Floris Deckers, CEO

• 2 0 1 1 annual results

Constant Korthout, CFRO

• Basel I I I

Constant Korthout, CFRO

• The best private bank in the Netherlands and Belgium

Floris Deckers, CEO

• Q&A

2

Van Lanschot reports strong inflow of new money and solid balance sheet

Numbers based on core activities (excluding non-strategic investments)

Further reinforcem ent of bank’s solid profile in 2 0 1 1

• Core Tier I ratio 10.9%
• Funding ratio 91.8%
• Further diversification and lengthening of funding profile
• European stress test: under adverse stress scenario, Core Tier I ratio

increases to 9.7% in 2012 compared with 9.6% at year-end 2010

• Affirmation of Single A minus (stable outlook) credit rating by Standard &

Poor’s and Fitch in December 2011 and November 2011 respectively Giving priority to solidity puts profit under pressure

• Income from operating activities -12% to € 539.2 million
• Operating expenses -2% to € 412.3 million
• Addition to loan loss provision -26% to € 64.3 million
• Net profit -36% to € 41.9 million

Strong net inflow

• f new assets
• Total assets under management + 6% to € 36.7 billion
• Total net inflow of new assets + 10% to € 3.4 billion
• Total client assets + 4% to € 49.8 billion

3

Further reinforcement of solid capital and funding position

Core Tier I ratio 1 0 .9 %

• Further increase in capital ratios due to lower risk weighted assets, the repurchase of perpetual

loans and retained earnings Funding ratio 9 1 .8 %

• The extent to which the loan book is funded by customer deposits

Core Tier I ratio Funding ratio

Numbers based on core activities (excluding non-strategic investments)

91.8% 86.2% 79.0%

31-12-2009 31-12-2010 31-12-2011

9.6% 0.3% 0.7% 0.2% 0.1% 10.9%

31

• 1

2-201 Gain on the repurchase of perpetuals Decrease RWA Retained earnings Other 31

• 1

2-201 1 * The 2004 loans were redeemed for cash at 75% of the nominal amount. The 2005 loans were redeemed for cash at 82.5% of the nominal amount.

*

4

Diversification and lengthening of funding profile

Funding m ix at 3 1 Decem ber 2 0 1 1

• Strong funding position based on stable level of customer deposits
• Long-term funding raised on the wholesale market in 2011:
• April 2011, issue of 3-year senior unsecured bonds to institutional investors for € 500 million
• April 2011, issue of approx. € 65 million of Trigger Notes with a three year term
• May 2011, issue of Floored Floater for approx. € 90 million with a ten year term
• Van Lanschot already complies with the published Basel III funding and liquidity ratios

Custom er deposits ( € billion)

71% 13% 2% 9% 5% Custom er savings & deposits Debt securities & subordinated loans I nterbank funding Shareholders' funds Other funding

Numbers based on core activities (excluding non-strategic investments)

4.5 5.5 4.9 4.1 3.8 3.9 4.8 4.2 4.3 1 3 .4 1 3 .5 1 3 .1 31-12-2009 31-12-2010 31-12-2011 Deposits Savings Other

5

Income and profit under pressure as a result of priority for solidity and difficult market conditions

• Interest income -12% to € 297.5 million (2010: € 336.9 million)
• Interest margin 1.57% (2010: 1.68% )
• Management fees + 19% to € 124.4 million (2010: € 104.4 million)
• Other income -75% to € 11.2 million (2010: € 44.2 million)
• Consolidated net profit -35% to € 43.1 million (2010: € 66.7 million)
• Net profit (core activities) -36% to € 41.9 million (2010: € 65.7 million)

Net profit ( € m illion) I ncom e from operating activities ( € m illion)

Numbers based on core activities (excluding non-strategic investments)

272.8 336.9 297.5 224.7 232.2 230.5 71.0 44.2 11.2 539.2 613.3 568.5 2009 2010 2011 Int erest Commission Ot her income

• 14.8

65.7 41.9 2009 2010 2011

6

28.6 34.5 36.7 13.4 13.5 13.1 49.8 42.0 48.0 31- 12- 2009 31- 12- 2010 31- 12- 2011 Savings & deposit s Asset s under management

Strong inflow of assets under management

• Total assets under management * + 6% to € 36.7 billion
• Inflow of net new money € 3.4 billion (+ 10% ), mainly institutional mandates
• Assets under discretionary management for Private & Business Banking increased to 33%

(2010: 27% )

• 2011 difficult year for investment performance; long-term track record above the benchmark
• Total client assets + 4% to € 49.8 billion

Assets under m anagem ent ( € billion) Total client assets ( € billion)

Numbers based on core activities (excluding non-strategic investments)

18.5 20.4 18.2 3.4 14.1

• 1.2

36.7 34.5 31- 12- 2010 Net new money Market performance 31- 12- 2011 Privat e & Business Banking Asset Management

* The definition of assets under management was refined in H2 2011. Comparative figures have been restated accordingly.

7

• Putting solidity before profit

Floris Deckers, CEO

• 2 0 1 1 annual results

Constant Korthout, CFRO

• Basel I I I

Constant Korthout, CFRO

• The best private bank in the Netherlands and Belgium

Floris Deckers, CEO

• Q&A

8

2011 annual results

4 1 .9 6.7 4 8 .6 14.0 64.3 1 2 6 .9 412.3 5 3 9 .2 11.2 58.6 171.9 297.5 2 0 1 1 4 0 .8 6.9 4 7 .7 3.0 27.4 7 8 .1 211.6 2 8 9 .7 16.0 29.3 93.9 150.5 H1 2 0 1 1 1 .1

• 0.2

0 .9 11.0 36.9 4 8 .8 200.7 2 4 9 .5

• 4.8

29.3 78.0 147.0 H2 2 0 1 1 22.8 Tax 8 8 .5 Operating profit before tax 6 5 .7 Net profit 16.0 Other impairments 44.2 Other income 58.8 Other commission 173.4 Securities commission 336.9 Interest 1 9 1 .0 Gross result 422.3 Operating expenses 6 1 3 .3 I ncom e from operating activities 86.5 Addition to loan loss provision 2 0 1 0 € m illion

Numbers based on core activities (excluding non-strategic investments)

9

Lower operating profit before tax due to decrease in interest income and other income

• Net profit 2011 € 41.9 million (2010: € 65.7 million)
• Operating profit before tax € 48.6 million (2010: € 88.5 million)
• Lower interest margin due to strict focus on the private banking strategy, fewer loan

applications, higher loan redemptions, diversification of the funding profile and placing excess liquidity at the ECB

• Lower other income, in particular due to lower profit on financial transactions
• Addition to loan loss provision down 26%

Operating profit before tax ( € m illion)

88.5

• 33.0

10.0 22.2 48.6

• 39.4

2.0

• 1.7

2010 Lower int erest Lower commission Lower

• t her

income Lower

• perat ing

expenses Lower loan loss provision Lower

• t her

impairment s 2011

Numbers based on core activities (excluding non-strategic investments)

10

Interest margin down due to conscious choice to put solvency and liquidity before profit

• Interest income -12% to € 297.5 million

(2010: € 336.9 million)

• Client loan book decreased by

€ 1.1 billion due to a strict focus on the private banking strategy, fewer loan applications and higher loan redemptions; mortgage portfolio reduced by approximately € 0.3 billion

• Diversification and lengthening of

funding profile resulted in higher funding costs

• Excess liquidity placed at the ECB at

low interest rate

• Interest margin 1.57% (2010: 1.68% )
• Van Lanschot already complies with the

published Basel III funding and liquidity ratios

I nterest m argin

1.57% 1.32% 2009 2010 2011 Numbers based on core activities (excluding non-strategic investments)

11

Commission income: further shift to discretionary asset management leads to higher management fees

• Commission income –1% to € 230.5 million (2010: € 232.2 million)
• Management fees* comprise 72% of total securities commission (2010: 60% ), in particular due

to increase of assets under discretionary management and growth of institutional asset management

• Assets under discretionary management comprise 33% * * (2010: 27% * * ) of the total assets

under management for Private & Business Banking clients

Com m ission incom e ( € m illion) Securities com m ission ( € m illion)

* Including portfolio commission and custody fee * * Definition of AuM was refined in H2 2011. Comparative figures have been restated accordingly. Numbers based on core activities (excluding non-strategic investments)

104.4 124.4 61.6 47.1 7.4 0.4 1 7 1 .9 1 7 3 .4 2010 2011 Managem ent fee* Transaction com m ission Perform ance fee 232.2 217.7 217.7 230.7 230.5 230.5

• 14.5

20.0

• 7.0
• 0.2

2010 Transact ion commission Management fee* Performance fee Ot her commission 2011

12

3.1 3.4 0.2 10% 1% 11% 2009 2010 2011

Higher commission income driven by increase in assets under management and shift to discretionary mandates

Total assets under m anagem ent ( € billion) Net inflow AuM ( € billion)

% related to total amount of AuM at the start of the period

Assets under discretionary m anagem ent Private & Business Banking ( % ) Managem ent fee and transaction com m ission ( % )

23% 27% 33% 77% 73% 67% 31- 12- 2009 31- 12- 2010 31- 12- 2011 Non- discret ionary Discret ionary

* Including portfolio commission and custody fee Numbers based on core activities (excluding non-strategic investments)

54% 64% 73% 46% 36% 27% 2009 2010 2011 Transaction related com m ission Managem ent fee*

24.3 13.7 14.8 12.4 14.9 19.7 28.6 34.5 36.7 31- 12- 2009 31- 12- 2010 31- 12- 2011 Non- discret ionary Discret ionary

13

Assets under Management (AuM) and commission in basis points (BPS) by segment

Breakdow n of AuM ( in € billion) and com m ission ( in bps) Private & Business Banking Breakdow n of AuM ( in € billion) and com m ission ( in bps) Asset Managem ent

• Shift to assets under discretionary management results in higher gross margin
• Margin on non-discretionary assets under management down due to correlation with the

sentiment on the stock market and trading volume

• Margin on fiduciary management steady despite the inflow of new mandates in 2011

Numbers based on core activities (excluding non-strategic investments)

5.1 5.6 6.5 6.1 13.5 14.8 13.9 12.4 71 72 85 81 45 34 39 29 H1 2010 H2 2010 H1 2011 H2 2011 AuM - Discret ionary AuM - Non- discret ionary BPS - Discret ionary BPS - Non- discret ionary 10.3 7.5 6.2 5.7 7.9 8.2 7.9 6.6 14 15 15 14 38 42 41 44 H1 2010 H2 2010 H1 2011 H2 2011 AuM - Fiduciary management AuM - Product s BPS - Fiduciary management BPS - Product s

14

Lower profit on financial transactions due to decrease of profit on securities and profit on interest hedges

Profit on financial transactions decreased from € 30.2 million in 2010 to € 0.2 million negative in 2011

• Lower profit on securities in the trading portfolio and on own positions in several in-house

funds

• Negative result on Marked-to-Market (MtM) investment portfolio
• Loss on interest hedges due to changes in the interest rate curve
• Terminated hedges in 2009 and 2010 result in annual amortisation charge

(2011: - € 16.6 million)

3 0 .2

• 0 .2

Profit on financial transactions 1.0 1.0 Other income

• 13.7
• 23.1

Profit on interest hedges 21.0 14.5 Profit on investment portfolio 11.4 13.0 Profit on currency trading 10.5

• 5.6

Profit on securities 2 0 1 0 2 0 1 1 € m illion

Numbers based on core activities (excluding non-strategic investments)

15

Decrease in operating expenses – decline in number of employees, particularly at Van Lanschot Bankiers

Operating expenses ( € m illion)

• Staff costs -4% on 2010 to € 216.7 million
• Lower variable pay (- € 13.1 million)
• Higher pension costs (€ 2.1 million)
• Investments in Asset Management

(€ 1.2 million)

• The number of FTEs decreased to

2,009 at 31 December 2011

Numbers based on core activities (excluding non-strategic investments)

218.5 226.4 216.7 173.2 159.9 159.0 36.0 36.6 37.1 4 2 8 .8 4 1 2 .3 4 2 2 .3

2009 2010 2011

Depreciation and am ortisation Other adm inistrative expenses Staff costs Num ber of FTEs 3 1 -1 2 -2 0 1 0 31 -1 2 -2 0 1 1 Van Lanschot 1 ,6 4 8 1 ,6 1 2 Kem pen 3 9 5 3 9 7 Total 2 ,0 4 3 2 ,0 0 9

16

Cost savings offset by higher expenses for compliance and supervision

Operating expenses ( € m illion)

• Other administrative expenses of € 159.0

million more or less in line with 2010

• Cost reduction at Van Lanschot Bankiers

(- € 4.7 million)

• Higher expenses for deposit guarantee

scheme (€ 1.9 million)

• Increased expenses for compliance and

supervision (€ 1.4 million)

• Increased statutory and regulatory

requirements mean higher expenses for compliance and supervision; on a structural basis, these costs are estimated at 3 to 4% of total operating expenses

Numbers based on core activities (excluding non-strategic investments)

218.5 226.4 216.7 173.2 159.9 159.0 36.0 36.6 37.1 4 2 8 .8 4 1 2 .3 4 2 2 .3

2009 2010 2011

Depreciation and am ortisation Other adm inistrative expenses Staff costs

17

Strict focus on cost control

Operating expenses ( € m illion)

• Decrease in operating expenses due to lower staff costs (lower accrual for variable pay)
• Additional expenses related to new statutory and regulatory requirements and investments in IT

and Asset Management

• Cost reduction at Van Lanschot Bankiers

Numbers based on core activities (excluding non-strategic investments)

412.3 409.2 422.3

• 13.1

2.1 1.9 5.2

• 2.6

1.2

• 4.7

201 Lower reservation variable pay Higher pension costs Higher provision deposit guarantee scheme Higher costs IT projects and compliance One-off tax income Investment Asset M anagement Cost reduction Van Lanschot Bankiers 201 1

18

Strong decrease in loan losses despite difficult economic conditions

• Addition to loan loss provision down 26% to

€ 64.3 million (2010: € 86.5 million)

• Addition to loan loss provision represents

56 basis points (BPS) of average risk weighted assets (2010: 66 BPS)

Addition to loan loss provision ( € m illion)

Numbers based on core activities (excluding non-strategic investments)

• 113.2
• 86.5
• 64.3

2009 2010 2011

19

Other impairments due to impairments on shareholdings and properties

Other im pairm ents ( € m illion)

Participations portfolio

• In 2011, several shareholdings in the

participations portfolio were written down by a total amount of € 9.6 million

• Market value of the participations

portfolio was up (year-end 2011: approximately € 110 million)

• Participations portfolio has a strategic fit

with the target group policy of Van Lanschot

• Long-term return on the participations

portfolio of 15 – 20% Other

• Impairment of € 3.2 million on property

Numbers based on core activities (excluding non-strategic investments)

13.6 9.6 1.2 2.1 0.3 3.2 14.0

1 6 .0

2010 2011 Impairment on propert y Impairment on t rading funds Impairment on part icipat ions port folio

20

Asset s Equit y and liabilit ies

Balance sheet is for the client

Cash and balances at banks Financial I nstrum ents Loans and advances Other Savings and deposits Due to banks I ssued debt securities Other Equity 1 .7 1 .4 1 .0 1 4 .3 1 3 .1 2 .3 0 .4 1 .0 1 .6 Total assets € 1 8 .4 billion

No exposure to Greece, Spain, Portugal, Italy and Ireland 70% of available-for-sale investments have a triple-A rating 91% of financial assets designated at fair value through profit or loss have a triple-A rating More than half of the loan book consists of residential mortgages The core activities of Van Lanschot take place in its home markets in the Netherlands and Belgium High funding ratio 91.8% Stable base of customer deposits Diversified funding profile (in terms of both maturity and source) Van Lanschot has access to the wholesale market Issue of 3-year senior unsecured bonds for € 500 million Very low leverage 12.2*

* Current definition of leverage = total assets / equity attributable to shareholders Numbers based on core activities (excluding non-strategic investments)

21

High quality loan book

• Total loan book at 31 December 2011

€ 14.3 billion

• More than half of the loan book

consists of residential mortgages

• 97% of the loan book comprises loans

and advances in the Netherlands and Belgium

• New loans provided to target group

clients with private banking potential

• Loans for commercial property and

corporate clients reduced

Loan book by sector at 3 1 Decem ber 2 0 1 1

Numbers based on core activities (excluding non-strategic investments)

51% 18% 2% 20% 4% 2% 3% Resident ial Mort gages Commercial Propert y Financial Holdings Healt hcare Services Ret ail Ot her

22

Losses on the mortgage portfolio remain limited

• Average mortgage per client is € 460,000 (national average € 213,750* )
• Mortgages largely originated before 2007
• Number of foreclosures in 2011 was 12 (2010: 16)
• Addition to the loan loss provision for mortgage loans only 6 BPS
• Average Loan-To-Value 89%

Gross new m ortgage business ( € m illion) Mortgage portfolio per nom inal am ount of loan at 3 1 Decem ber 2 0 1 1

Numbers based on core activities (excluding non-strategic investments)

917 672 418 204 234 1,321 2006 2007 2008 2009 2010 2011

37% 35% 14% 14% <= € 500k € 500k - € 1m € 1m - € 1.5m > € 1.5m * Source: Mortgage data network

23

Property portfolio

• Property portfolio (excluding residential mortgages) at 31 December 2011 amounts to

€ 2.5 billion (2010: € 2.6 billion)

• Average Loan-To-Value 70%
• Property portfolio includes company and other business-related buildings in use and recreational

property

• Less than a quarter of the portfolio concerns loans for office buildings
• Portfolio almost entirely concerns property in the Netherlands, excluding residential mortgages

Property by sector at 3 1 Decem ber 2 0 1 1 Occupancy of property at 3 1 Decem ber 2 0 1 1

Numbers based on core activities (excluding non-strategic investments) 41% 23% 16% 12% 8% Indust rial Offices Resident ial Ret ail Ot her 7% 11% 37% 44% Unoccupied Rent ed < 1 year Rent ed < 1 - 5 years Rent ed < 5 years

24

Investment and trading portfolio held mainly for liquidity purposes

I nvestm ent and trading portfolio by counterparty at 3 1 Decem ber 2 0 1 1 I nvestm ent and trading portfolio by country at 3 1 Decem ber 2 0 1 1

• Total investment and trading portfolio of € 1.4 billion
• Comprises mainly Dutch government bonds and small amounts in France, Belgium, Germany,

Switzerland and Canada

• No investments in European peripheral countries

Numbers based on core activities (excluding non-strategic investments)

68% 10% 10% 12% Government & guarant eed Corporat es Funds Banks 94% 6% The Net herlands Ot her

25

* Current definition of leverage = total assets / equity attributable to shareholders Numbers based on core activities (excluding non-strategic investments)

Conscious decision to put solidity before profit in 2011

Grow th in discretionary AuM results in higher m anagem ent fees Solid capital and funding position

• Assets under management + 6% to € 36.7 billion
• Inflow of net new money € 3.4 billion (+ 10% ), mainly in discretionary

mandates

• Total client assets + 4% to € 49.8 billion
• Management fees + 19% to € 124.4 million
• Core Tier I ratio 10.9%
• Low leverage 12.2*
• Funding ratio 91.8% ; long-term funding position strengthened by raising

wholesale funding

• Affirmation of Single A minus (stable outlook) credit rating by Standard &

Poor's and Fitch in December 2011 and November 2011 respectively

Pressure on incom e and profit

• Income from operating activities -12%
• Operating expenses -2%
• Addition to loan loss provision -26%
• Operating profit before tax € 48.6 million
• Net profit € 41.9 million
• Earnings per ordinary share € 0.81

26

• Putting solidity before profit

Floris Deckers, CEO

• 2 0 1 1 annual results

Constant Korthout, CFRO

• Basel I I I

Constant Korthout, CFRO

• The best private bank in the Netherlands and Belgium

Floris Deckers, CEO

• Q&A

27

Implementation of IRB and Basel III

I nternal Ratings Based

• Credit risk management professionalised with implementation of Internal

Ratings Based (IRB) models

• Transition of retail portfolio in 2010, transition of non-retail portfolio in

2011 (2 models) and 2012 (2 models). Expected to be finalised in 2012

• Transition of non-retail portfolio is based on prescribed LGD percentages,

resulting in an expected shortfall between expected loss based on IRB models and provisions on the balance sheet

• Shortfall results in additional Core Tier I capital deduction (Basel II 50%

and Basel III ultimately 100% )

• Transition of non-retail portfolio results therefore in (limited) negative

impact on capital ratios

• Transition to IRB means that the capital ratios will be more sensitive to

impact of economic conditions on the loan book

I m pact on capital ratios

• Phased implementation of Basel III as from 2013
• Combined initial impact of Basel III and IRB will lead to a net decrease of

the Core Tier I ratio of approx. 80 to 100 BPS

• The bank remains well above the minimum requirement of Basel III of

7.0% and the EBA standard of 9.0%

Numbers based on core activities (excluding non-strategic investments)

28

Van Lanschot meets published Basel III requirements

Leverage Net Stable Funding Ratio ( % ) Liquidity Coverage Ratio ( % )

PRO FORMA AT 3 1 DECEMBER 2 0 1 1 UNDER BASEL I I I

104% 31- 12- 2011 Min 100% 192% 31- 12- 2011 Min 100% 19 31- 12- 2011 Max 33

29

Strong results in European stress test

• Core Tier I ratio under adverse stress scenario increases
• No exposure to government bonds of Greece, Portugal, Ireland, Italy and Spain
• Sovereign risk in the bank’s investment portfolio is limited to the Netherlands and small amounts

in France, Belgium, Germany, Switzerland and Canada

• High quality loan book: more than half of the portfolio consists of residential mortgages in the

Netherlands and Belgium

• EBA stress test complements the risk management procedures and regular stress testing

programmes performed by Van Lanschot 9.7% 9.8% 10.2% 9.9% Core Tier I ratio 1,167 1,152 1,227 1,170 Core Tier I capital (€ million) 12,031 11,766 12,027 11,764 Risk-weighted assets (€ million) Adverse scenario 2011 2012 Baseline scenario 2011 2012

30

• Putting solidity before profit

Floris Deckers, CEO

• 2 0 1 1 annual results

Constant Korthout, CFRO

• Basel I I I

Constant Korthout, CFRO

• The best private bank in the Netherlands and Belgium

Floris Deckers, CEO

• Q&A

31

Van Lanschot’s strategy: unchanged but accelerated

Targets Vision Mission Strategy Core Values

To be able to measure the achievement of its vision, Van Lanschot has formulated targets relating to clients, employees, and financial ratios; Van Lanschot aims to realise the targets in harmony with all its stakeholders To offer high-quality financial services to high net-worth individuals, entrepreneurs and other select client groups, whereby the interest of our clients is leading

• 1. Focus on private banking
• 2. Enhance commercial effectiveness
• 3. Invest continually in service quality
• 4. Maintain a solid profile

Ambitious Committed Independent Professional Van Lanschot aims to be the best private bank in the Netherlands and Belgium

32

Comfortable funding and liquidity position

• Largely ‘self funded’ in line with a

traditional private bank: funding ratio 91.8%

• Van Lanschot already complies with

the published Basel III liquidity and funding ratios: LCR 192% , NSFR 104%

• Successful in raising funds in

wholesale markets in 2010 and 2011

• CMBS transaction (Lancelot) called at

February 2012

• Strong diversification in terms of

maturity and funding sources

• Liquidity buffer of over € 3 billion at

1 March 2012 covers funding requirement for the coming years

W holesale funding by m aturity at 1 March 2 0 1 2 ( € m illion)

5 0 0 1 ,0 0 0 1 ,5 0 0 2 ,0 0 0 2 ,5 0 0 3 ,0 0 0 3 ,5 0 0 Buffe r 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0 2 0 2 1 > 2 0 2 1 LTRO LT Repo RMBS Senior Subordinated Liquidity buffer

33

Participation in the LTRO

• Amount € 750 million
• RMBS notes used as collateral
• Separate investment portfolio – very low risk profile, highly liquid and/ or maturity of

less than 3 years

• Repayment in 3 years (or earlier) from self-liquidating portfolio
• Target: extra profit

34

Strong balance sheet translates into robust solvency

Leverage *

Target: Leverage * less than 2 0

Capital

Target: Core Tier I ratio: at least 1 0 .0 % ; increasing in the future to 1 2 .0 %

• Improved capital position to be realised through profit

retention, dividend policy and balance sheet management

13.4 12.2 16.6 <20.0

2009 2010 2011 Target

12.0% 9.6% 6.6% 10.9%

1 0.0% 2.0%

2009 2010 2011 Target * Current definition of leverage = total assets / equity attributable to shareholders Numbers based on core activities (excluding non-strategic investments)

35

Towards normalised profit level

• 1. Recovery of income to (future) normal levels:
• Interest
• Commission income
• 2. Cost control:
• Investment programme
• Cost reduction programme
• Return to normalised loan losses

Numbers based on core activities (excluding non-strategic investments)

36

High interest rates on savings and deposits due to funding needs of banks

I nterest rates* on Van Lanschot deposits I nterest rates* on Van Lanschot savings

• Market rates of savings and deposits are far above ‘normal’ levels: more than 60 bps above

Euribor

• Interest rates of other banks are higher still: average interest rate on savings above 2.5%
• With an average volume of savings and deposits of € 7 billion in 2011, revenues potentially hit

by approx. € 20 - 40 million

Numbers based on core activities (excluding non-strategic investments)

2.59% 2.45% 1.95% 1.50% Dec- 10 Jan- 11 Feb- 11 Mar- 11 Apr- 11 May- 11 June- 11 July- 11 Aug- 11 Sept - 11 Oct - 11 Nov- 11 Dec- 11 Int erest rat es deposit s Euribor 12 mont hs 2.05% 1.36% 1.71% 1.00% Dec- 10 Jan- 11 Feb- 11 Mar- 11 Apr- 11 May- 11 June- 11 July- 11 Aug- 11 Sept - 11 Oct - 11 Nov- 11 Dec- 11 Int erest rat es savings Euribor 3 mont hs

* Rates in the Netherlands

37

3.1 3.4 0.2 10% 1% 11% 2009 2010 2011

Growth assets under management towards € 50 billion

• Growth of assets under management towards € 50 billion through inflow of net new money and

expected market performance

• Target is achievable, the pace depends on market conditions
• Shift to discretionary management provides higher and more stable commission income

(80 bps versus 30 bps)

• Distribution fees also to be passed on to advisory clients

Net inflow AuM ( € billion) Total assets under m anagem ent ( € billion)

% related to total amount of AuM at the start of the period

24.3 13.7 14.8 12.4 14.9 19.7 28.6 34.5 36.7 31- 12- 2009 31- 12- 2010 31- 12- 2011 Non- discret ionary Discret ionary

Numbers based on core activities (excluding non-strategic investments)

38 38

• 2012-2014

38

Cost reduction programme: FTE reduction of 10-15% from 2012 to 2015

I nitiative Tim ing

Cost savings

Corporate departm ents

• 2012

Collaboration Van Lanschot / Kem pen System upgrade and integration

• 2012 / 2013

Mid and back

• ffices
• 2012-2014
• Upgrades: web portal functionalities, improved front office
• Back office: enhanced effectiveness and efficiency in back office
• Integration: systems to be integrated with KCM systems
• More efficient and effective processes for payments, securities,

lending and operations

• Reduction and concentration of Trade Finance activities
• Potential FTE reduction by 30-40% in 2013/ 2014
• Corporate departments to achieve 15% cost savings
• More intensive collaboration with Kempen
• Collaboration on selected projects, e.g. investment policy

39 39

• 2012 / 2013

Investments in improved online services

• 2012 / 2013
• 2012 / 2013

39

Investments to promote the positioning as Private Bank

I nitiative Tim ing

External profile

Closer to target group Online services Positioning Strict focus of business bank

• n

entrepreneur

• 2012
• Key messages: Performance and Personal
• To be reflected in website and campaign
• Website: first release in progress
• Advertising campaign to promote positioning + 275 year

anniversary of Van Lanschot

• Focus on entrepreneur and his business as feeder for the private

bank

• Reduction of smaller loans
• Reduction / ring-fencing of property loans
• Banker to be matched to client profile
• Clustering and enhancing expertise
• Promoting local presence

40

Towards normalised profit levels

W hat is needed?

• 1. Recovery of capital markets

 decrease of interest rates on savings

• 2. Return of confidence in the financial markets

 return of investors  growth in assets under management

• 3. Successful implementation of investment and cost reduction programme

 gross reduction in cost base by € 60 million from 2015

• 4. Economic recovery

 Loan losses reduce to a normalised level (addition to loan loss provision of 25-30 BPS per year)

41

• Putting solidity before profit

Floris Deckers, CEO

• 2 0 1 1 annual results

Constant Korthout, CFRO

• Basel I I I

Constant Korthout, CFRO

• The best private bank in the Netherlands and Belgium

Floris Deckers, CEO

• Q&A

2011 annual results

AMSTERDAM, 8 MARCH 2012

43

Disclaimer

Forw ard looking statem ents This presentation contains forward looking statements concerning future events. Those forward looking statements are based on the current information and assumptions of the 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 Lanschot’s expectations regarding such matters as the assessment of market risk and revenue growth 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 regarding forward looking statements concerning future events included in this presentation have not been audited.