Full year results 2009

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Information about Full year results 2009
Finance

Published on March 12, 2014

Author: Ageas

Source: slideshare.net

10 March 2009 Full Year 2009 results

FORTIS I 10/03/2010 I page 2 ■ CEO update ■ Full year results 2009 ■ Conclusion Agenda

FORTIS I 10/03/2010 I page 3 Solid insurance results Group net profit impacted by one off items Proposed gross dividend Continued focus on intrinsic performance Full year net profit after minorities Insurance at EUR 456 million Gross inflows of EUR 15.8 billion, exceeding 2008 levels (+8%) Continued strong capital position, total solvency ratio at 231% Market Consistent Embedded Value Life consolidated activities at EUR 4.9 billion, up 15% Full year net profit after minorities Group at EUR 1,192 million Full year net profit General Account : EUR 736 million, mainly capital gain on disposal 25% AG Insurance Other transaction and financial instruments related items nearly compensating each other (call option on BNP Paribas shares, RPN(I), write down related to legal dispute with Fortis Bank Nederland related to FCC Ltd) Eurocent 8 per share corresponding to an expected payout ratio of 41% Life: Continued tight monitoring investment portfolio Non-Life: Specific measures to improve combined ratio taken, follow up needed Legacy issues Continued management of Fortis’ position on legacy assets & liabilities Highlights 2009

FORTIS I 29/04/2009 Shareholders approve transactions. BNP Paribas acquires 75% of Fortis Bank SA/NV and 25% of Fortis Insurance Belgium (now AG Insurance) 10/03/2010 I page 4 2009, a year of significant change and stabilisation 15/06/2009 – 25/09/2009 Appointment new management team: Bart De Smet, CEO Bruno Colmant, Deputy CEO Kurt De Schepper, CRO Management Committee including CFO and 4 regional business heads Since 25/09/2009 Streamlining insurance portfolio on track: ■ Divestment Luxembourg Non-Life ■ Discontinuation Russian operations ■ Conclusion partnership with Tesco in UK ■ Acquisition stake UBI Assuricazioini in Non-Life together with BNP Paribas Assurance ■ Restructuring stake in Thailand; Kasikorn Bank increases its stake in Muang Thai Group Holding to 51% 12/05/2009 Closing of the transactions between BNP Paribas, the Belgian State, Fortis Bank and Fortis 07/03/2009 2nd revised terms transactions between BNP Paribas, the Belgian State, Fortis Bank and Fortis 11/02/2009 - 28/04/2009 Appointment new members Board of Directors : Jozef De Mey elected Chairman Guy de Selliers de Moranville elected Vice-Chairman 25/09/2009 Investor Day: Publication conclusions Strategic Review

FORTIS I General market trends in Insurance Challenging year for insurers 40,0 60,0 80,0 100,0 120,0 140,0 31/12/'08 28/02/'09 30/04/'09 30/06/'09 31/08/'09 31/10/'09 31/12/'09 DJ Eurostoxx Insurance Index DJ Eurostoxx 50 Insurance sector underperformed DJ European Insurance Index +9% vs DJ Eurostoxx 50 +21% Fortis +282% vs DJ European Insurance Index +9% Bancassurance model challenged Gradual unwinding of the model, mainly in Benelux Return to distribution contracts or creation of partnerships Volatile financial markets remain a challenge Recovery equities in 2009 − Limited positive impact for insurers Increased concerns on sovereign debt Increased focus on impact Solvency II Global impact on capital base still uncertain 10/03/2010 I page 5 2009 Financial market performance Insurance sector 10/03/2010 I page 5

FORTIS I Global trends in Life insurance Life, focus from balance sheet to operations 3 17 15 -15 -25 5 45 45 -1 -42 -19 2 139 -40 -23 -42 -44 -100 -50 0 50 100 150 2005 2006 2007 2008 2009e 2010e UK France Belgium Unit linked sales (% change) Drop in 08-09, pick up expected in 10 Lower invested volumes Despite competitive advantage vs banking savings products Contradiction with expected growth globally of 2nd pillar pensions Dilemma of ageing population Changing consumer behaviour Preference for guaranteed rate products Better returns than bank savings or deposit accounts Trend towards simplification Lower returns and competition will force insurers to streamline and simplify product portfolio 10/03/2010 I page 6 Source: Nomura, European Insurance, 06 January 2010, Data Belgium: Assuralia

FORTIS I 90,0% 92,0% 94,0% 96,0% 98,0% Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Significant increase of ‘large loss’ claims and frequency General trend of increasing combined ratios Uncertain impact climate change Fraudulent claims Pressure on Non-Life earnings power Potential for reserves releases almost expired Fierce competition -> Pricing pressure Stricter operational management going forward Tariff increases Stricter claims management Cost containment Revised policy conditions European P&C* insurance - Combined ratio evolution 10/03/2010 I page 7 Trends in Non-Life insurance Facing challenging operational times Source: JP Morgan * Property & Casualty

FORTIS I Solid commercial performance 10/03/2010 I page 8 Total gross inflow (EUR bn) AG Insurance Life Non-Life Fortis Insurance International* Life Non-Life Total inflow* Of which non-consolidated jv’s Life Non-Life Funds under management AG Insurance Fortis Insurance International Life Non-Life FY 09 6.9 5.4 1.5 8.9 7.4 1.5 15.8 3.8 3.4 0.4 73.0 48.4 24.7 68.0 5.0 FY 08 6.3 4.8 1.5 8.4 6.8 1.6 14.6 3.0 2.7 0.3 65.9 44.7 21.2 61.6 4.3 Change 9% 11% 3% 7% 9% (3%) 8% 26% 27% 13% 11% 8% 17% 11% 16% H2 09 3.3 2.6 0.7 4.6 3.8 0.7 7.9 1.8 1.6 0.2 * * * H2 08 2.8 2.1 0.7 3.9 3.2 0.7 6.7 1.4 1.3 0.1 * * * Change 18% 23% 2% 18% 21% (3%) 17% 24% 26% 7% * * *

FORTIS I 2009 gross inflows exceed 2008 levels by 8% Net profit back to positive 3.8 4.3 1.0 1.1 1.5 1.5 FY08 FY09 66 -65 24 65 FY 08 FY 09 Inflow Net Profit after minorities Non-Life GWP 6.3 6.9 -85 316 91 50 FY08 FY09 Non-Life +9% 6 366 Group Life Individual Life Life Inflow (including partnerships) * Net Profit after minorities 1.6 1.5 7.4 6.8 FY 08 FY 09 8.4 8.9+7% Non-Life GWP Life 0 90 Non-Life Life AG Insurance Fortis Insurance International 10/03/2010 I page 9 (EUR bn) (EUR mio) (EUR bn) (EUR mio) * FY 09 Inflows non-consolidated partnerships at 100% : Life, EUR 3.4 bn, Non-Life EUR 1.5 bn

FORTIS I 10.7 5.15.1 23.1 20.6 5.4 5.9 11.3 FY 08 FY 09 11.6 13.5 2.01.9 5.9 5.2 1.1 1.3 FY 08 FY 09 0.50.5 1.1 1.0 2.32.5 0.1 0.1 FY 08 FY 09 1.0 0.40.4 3.3 2.7 0.6 0.7 1.1 FY 08 FY 09 Life inflows up on increased inflows in traditional savings Funds under management up 11% Inflow Funds under Management Group Life 4.8 5.4+11% 41.8 45.4 Unit-Linked Inflow (fully consolidated only) Funds under Management (fully consolidated) 4.1 4.0(2%) 19.8 22.7 AG Insurance Fortis Insurance International 10/03/2010 I page 10 (EUR bn) (EUR bn) Savings Traditional Group Life Unit-Linked Savings Traditional +9% +15% (EUR bn) (EUR bn)

FORTIS I 459 474 125 439434 472447 130 FY 08 FY 09 299 284 202196 522641 92 131 FY 08 FY 09 Non-Life inflows in Belgium grew faster than average market growth Increased combined ratio, mainly due to higher claims Gross written premiums Combined ratio Property 1.465 1.515+3% Motor Gross written premiums (fully consolidated) Combined ratio 1.228 1.139 (7%) AG Insurance Fortis Insurance International 10/03/2010 I page 11 (EUR mio) (EUR mio) Accident & Health Other Expense ratio Claims ratio61.6% 63.7% 65.0% 66.4% 37.4% 36.7% 35.9% 36.8% 2006 2007 2008 2009 69.2% 83.9% 69.6% 77.3% 35.8% 30.1% 28.8% 30.5% 2006 2007 2008 2009 105.0% 114.0% 98.4% 107.8%99.1% 100.4% 100.9% 103.2%

FORTIS I Belgium : Free Invest Plan & Fix & Income :Savings products with guaranteed interest rate Smart Invest Bon : capital guaranteed unit linked products Group Life & Health Care : Group healthcare contract for Transportation and Construction sector : > 200,000 affiliates Various new products in Non-Life for retail and SME Portugal : New pension products meeting client’s increased risk averseness New motor and pet insurance products Luxembourg: New products with guaranteed return Regained confidence from high worth individuals Asia: Thailand: Single premium unit linked in co-operation with K-Asset Management, Multiple Critical Illness rider China: “Fulu Shuang Zhi” : key product combining whole Life policy with a rider providing death benefits on critical illness India: First Endowment and Money Back plan UK: Industry award winning new products : Your Life Plan and Real Life Cover Further finetuning online travel platform, launch a new Fleet product and enhanced e-trading capability for commercial products Fortis premium inflow 2009* (%) Strong inflows thanks to continued product innovation … 10/03/2010 I page 12 * Including Non-consolidated companies Life 80% Non-Life 20%

FORTIS I … and through a continued expansion of distribution and new partnerships in Europe and Asia…. 10/03/2010 I page 13 Portugal : Further development specialised agents/brokers pool to promote Non- Life business towards small business segment Currently more than 300 agents Germany : Introduction HonorarKonzept Fee based advisor network Belgium/Luxembourg : Exclusive distribution agreement with Fortis Bank Rebranding broker channel into AG Insurance Modulis VIP, unique distribution model between banking and broker channel Renewed confidence of customers in Lxb UK : New partnership with Tesco Expansion of partnership with Post Office into SME market Expansion in UK Commercial SME market through increased broker relationships & electronic trading platforms Year 1 of Fortis UK Life - > 60,000 customers – Distribution via IFA Turkey : New initiative focused on subagents Fortis offered support in hiring talented new sales people and building necessary infrastructure France : Distribution agreement with online provider Sicavonline Italy : Non-Life : Joint acquisition of 50% of UBI Assuricazioni together with BNP Paribas Assurances India (IDBI Fortis) # of agents close to 5,000 Thailand (Muang Thai Fortis) Increased stake to 51% of Kasikornbank will have positive impact on local distribution network China (Taiping Life) Further expansion agency sales force to over 60,000 Expansion network > 600 offices Hong Kong (FICA) Launch IFA channel, aiming to diversify distribution capacity beyond Agency Malaysia (Mayban Fortis / eTiQa) Launch various direct marketing campaigns (direct mails/Internet/email sales campaigns)

FORTIS I Fortis Investment Portfolio at 31 December 2009 Fixed Income Securities 51.2 RE Inv Prop* 2.2 RE own use* 1.4 Equities 1.6 Fixed Income securities 99% investment grade, 89% rated A or higher Government debt further reduced ‒ Mainly EUR 1.5 bn Italian bonds sold** ‒ Impact re-balancing of investments on results limited Equities Up to EUR 1.6 bn Increase linked to new investments and revaluation portfolio Real Estate Unrealized gain net-of-tax remained intact at EUR 0.6 bn Occupancy rate 94% (EUR bn) FORTIS’ overall low risk investment portfolio supports its long term liabilities and is tightly monitored “ 10/03/2010 I page 14 Insurance Investment Portfolio (EUR 56.4 bn) ” * Real Estate valued at market value; Unrealized gain after tax (incl. own use) amounts to EUR 0.6 billion ** Sales in 2010 as per 3 March 2010

FORTIS I A sound insurance group Strong capital position unchanged Commercial franchise intact, Luxembourg recovers in Q4 Streamline insurance portfolio Sale Luxembourg Non-Life Discontinuation Russian operations Create value through partnerships with leading distribution partners UK : Fortis – Tesco Italy : Fortis – BNP Paribas Assurances – UBI Assuricazioni Thailand : Sale part stake to Kasikorn bank; EUR 17 mio capital gain realised Invest in businesses if ROI exceeds cost of equity. For growth businesses, look at value creation Embedded Value up 15% to EUR 4.9 billion Annual target dividend payout of 40 to 50% of the net profit of the insurance activities Gross dividend proposed of 8 eurocent per share Strategy updated in 2009 Execution on track… 10/03/2010 I page 15

FORTIS I Through a set of KPIs Fortis will track its performance on a continuous base 10/03/2010 I page 16 KPI Frequency 2009 performancePerformance criteria Gross inflow growth +8%Commercial performance Quarterly Cost ratio Life Combined ratio Non-Life Net profit 0.41%, stable on 2008 105.1% vs 99.8% in 2008 From EUR 6 mio to EUR 456 mio Profit related Quarterly Quarterly Quarterly Operating return on EV Total return on EV Net return on risk adjusted capital (NRRAC) 6.0% 14.7% 9.98% Value creation Annually KPIs should match balance between growth and more mature businesses KPIs are a part of revised remuneration policy NRRAC calculates as : (Net profit Insurance - (Average available solvency – average appropriate solvency)*11%) / (average appropriate solvency)

FORTIS I 10/03/2010 I page 17 ■ CEO update ■ Full year results 2009 ■ Conclusion Agenda 10/03/2010 I page 17

FORTIS I Group Solid insurance net profit, strong capital position Group 2009 net profit attributable to shareholders EUR 1,192 mio, minority interests EUR 120 mio – Insurance: EUR 456 mio; General Account: EUR 736 mio Funds under Management at EUR 73 billion, up 11% Shareholders’ equity at EUR 8.3 bn, Core equity at EUR 8.6 bn Discretionary capital General Account at EUR 1.3 bn Full year 2009 net profit after minorities recovers to EUR 366 mio – Life : EUR 316 mio; Non-Life : EUR 50 mio; – One-off items : EUR 17 mio positive Life funds under management at EUR 45.4 bn (+9%) – Non unit-linked : EUR 38.8 bn (+8%); Unit-linked : EUR 6.5 bn (+11%) Total solvency ratio end 2009 at 205% Full year 2009 net profit amounts to EUR 736 million – EUR 697 mio capital gain on sale 25%+1 share AG Insurance – EUR -36 mio net impact other transaction related items i.e. call option on BNP Paribas shares, RPN(I), write down related to legal dispute FCC Ltd – EUR 760 million equity investment RPI intact Full year 2009 net profit after minorities increased to EUR 90 mio – Life : EUR 66 mio; Non-Life : EUR 24 mio; – One-off items : EUR 15 mio positive Life funds under management at EUR 22.7 bn (+15%) – Non unit-linked : EUR 8.5 bn (+11%); Unit-linked : EUR 14.2 bn (+17%) Total solvency ratio end 2009 at 300% AG Insurance Insurance International General Account 10/03/2010 I page 18

FORTIS I Key figures 2009 FY 09 FY 08 H2 09 H2 08 Net profit Insurance before non-controlling interests Net profit attributable to minority interests Net profit Insurance after minority interests Net profit General Net profit attributable to shareholders Funds under management (EUR bn) Market consistent Embedded Value (EUR bn) Value Added New Business (VANB) Earnings per share (EUR) ** Net equity per share (EUR) Net shareholders’ equity (as per 31 December 09) AG Insurance*** Fortis Insurance International General (incl. eliminations) Discretionary capital (EUR bn) 576 120 456 736 1,192 73.0 4.9 69 0.48 3.37 8,350 2,860 2,684 2,806 1.3 31 25 6 (616) (28,022)* 65.8 4.3 81 (12.21) 2.75 6,795 2,785 2,009 2,001 * 314 87 227 78 306 73.0 * * 0.12 1.3 (318) (5) (313) (322) (635) 65.8 * * (12.38) EUR mio * Including EUR 27.4 bn net loss on discontinued operations ** Based on average number of outstanding shares *** Net equity 31 December 2009 after 25% minority stake Fortis Bank 10/03/2010 I page 19

FORTIS I Strong recovery Insurance profits in 2009* 488 553 522 366 76 118 40 90 International AG Insurance AG Insurance: − Lower negative impact financial markets, low yield revenues − One off tax recovery of EUR 94 mio, partially compensated by EUR 77 mio negative impact financial markets (before minorities and before tax) International: − Improved investment margins in Portugal partially offset by lower contribution UK Non-Life − One off result of EUR 15 mio (EUR 32 mio in Malaysia positive vs EUR 17 mio discontinuation costs) 2007 20082005 2006 2009 6 564 671 562 EUR mio 456* Inc EUR 639 mio investment losses 10/03/2010 I page 20 * Net Profit; AG Insurance at 100% until 13 May 2009, thereafter 75%

FORTIS I Life contribution significantly up Non-Life impacted by higher claims & frequency 10/03/2010 I page 21 * All net profit figures after tax and after minorities EUR mio 390 464 501 382 174 207 61 74 -150 156 Non-Life Life 2007 20082005 2006 2009 6 564 671 562 456 Life: − Total negative impact financial markets: EUR 77 mio (100% AG Insurance) vs EUR 639 mio in 2008 − Lower fee contribution due to overall lower unit-linked sales Non-Life: − Result affected by high claims frequency & more large claims in all activities − Belgium: mainly Fire less Motor; UK: general market issues in private Motor

FORTIS I Strong capital position: 231% solvency ratio of Insurance Activities Strong solvency levels valuable strength in times of volatile financial markets Capital position General Account at EUR 2.4 bn Including General Account, Capital EUR 6.0 bn above legally required regulatory minimum Capital in associates and partnerships at EUR 1.3 bn end 09 including EUR 0.8 bn of RPI Solvency Capital (Actual) Required Regulatory Minimum VOBA 10/03/2010 I page 22 EUR bn 4.1 2.3 6.4 2.0 0.8 2.8 AG Insurance International Total Insurance EUR 3.6 bn above Minimum 0,3 205% 300% 231%

FORTIS I Value creation in Fortis Insurance International AG Insurance EV 08 restated for 25% sale of AG Insurance Increase based on solid operating cash flows, increased interest rates and recovery financial markets 10/03/2010 I page 23 Embedded Value* development Fortis (EUR mio) Value added by New Business (VANB) (EUR mio) * Embedded value at 100%; Taiping under local methodology; HKD/EUR 0.0873 at 22 September 2009 International AG Insurance 3.208 3.638 1.063 1.260 2008 2009 4,271 4,898 40 49 41 20 2008 2009 81 69 VANB 08 restated based on new scope Increase at AG Insurance driven by improved financial markets; 2008 impacted by defaulting bonds Lower new business volumes expressed as Present value of New Business Premiums (PVNBP)

FORTIS I General FY 09 net result of EUR 736 mio EUR 697 mio: Capital gain on sale 25%+1 share AG Insurance Impact other ‘transaction related’ items close to zero EUR 581 mio: Net-of-tax valuation call option on BNP Paribas shares EUR (316) mio: Fair value quarterly interest payments related to RPN(I) EUR (301) mio: Write down related to legal dispute FCC Ltd (subsidiary FBN) EUR 760 mio equity investment Royal Park Investments intact Other items: FY 09 interest margin breakeven – Positive funding structure with Fortis Bank in 1st half 09: unwound end of June 09 – Positive cash position at year end but interest period mismatch between assets & liabilities Total expenses at EUR 91 mio – Mainly corporate staff related costs – Continued impact of one off items (a.o. legal, separation etc) Net cash position General on 31 December of EUR 3.0 bn Assuming full redemption EMTN programme; EUR 915 mio outstanding at 31/12/09 10/03/2010 I page 24

FORTIS I Valuation Black & Scholes as per 31/12/2009 Valuation call option related to BNP Paribas shares Volatility impact set at 27% ► EUR 1,257 mio total value option as at 31 December - Volatility +5% ► total value option +25% Dividend yield of 3.565% applied Strike price used of EUR 66.672 per share, adjusted after rights issue BNP Paribas Non-standard features: 30% haircut ► EUR 880 mio Fortis continues to examine all options Still under investigation Tax exempted situation still considered to be likely Net-of-tax valuation call option on BNP Paribas shares estimated at EUR 581 mio per 31 December 2009; Deferred tax charge of EUR 299 mio All gains realized to be dividend out to shareholders, to the extent permitted by law 10/03/2010 I page 25 Exercise Taxation Value as per 31/12/2009

FORTIS I Value as per 31/12/2009 Valuation methodology Valuation interest mechanism related to RPN(I) 3/9/2010 I page 26 Net discounted value all future interest payments until a potential reimbursement of the CASHES Methodology refined based on valuation techniques for financial derivatives Evolution Fortis’ share price Evolution theoretical market value CASHES Evolution short term interest rate Fortis’ share price: - EUR 2.62 per share (closing price 31/12/09) (B-S model) - Dividend yield consistent with the proposed dividend - Share price volatility of 42% (base Q4 09 data) LT-value CASHES: - 54.4% of par value (closing price 31/12/09) - Evolution based on forward spread curves LT i-rate: Standard arbitrage-free i-rate model Model also accounts for conversion option embedded in the CASHES EUR 316 mio negative as per 31/12/2009 mark-to-market value RPN(I) Cash interest cost FY 09: EUR 3 mio 17/11/2009 I page 26 10/03/2010 I page 26 Drivers quarterly interest payments Assumptions Sensitivity analysis Fortis share up to EUR 2.90 per share : decrease fair value to EUR 305 million Fortis share down to EUR 2.30 per share : increase fair value to EUR 327 million Market value CASHES up to 60% : increase fair value to EUR 385 million Market value CASHES down to 48% : decrease fair value to EUR 241 million Discount rate – 100 bps : increase fair value to EUR 350 million Discount rate + 100 bps : decrease fair value to EUR 288 million

FORTIS I Financing structure Asset Value as per 31/12/2009 Financial performance Royal Park Investments* Face value remaining portfolio: EUR 17.9 bn IFRS fair value: EUR 7.2 bn Total interest payments until 31/12/ 09: EUR 1.1 bn Total principal collections until 31/12/09: EUR 141 mio Net outstanding debt end 09: EUR 8.2 bn Commercial paper program launched end 09, fully placed end of Feb 10, replacing senior debt Fortis Bank Average financing cost at IBOR +48bps vs IBOR +50 bps on face value portfolio Equity investment of EUR 760 mio intact end of Dec 09 IFRS 09 net profit of RPI at zero No impairment as per 31/12/09 10/03/2010 I page 27 * Recovery value under B-GAAP corresponds to the estimated recovery value of the remaining lines of the structured credit portfolio, based on the assumptions used at closing date ** For more information see www.royalparkinvestments.com Cash collection Value as per 31/12/2009

FORTIS I General account is carefully managed for value Equity and liquidity carefully monitored Investment strategy for net cash position under review Prudent approach adopted, no value included in balance sheet for Procedure on the merits against forced payment of EUR 363 mio to holders of Fortis Capital Company Potential future compensation for exchange of MCS Litigation Litigation is contingent liability Part of discretionary capital retained as a prudential buffer in view of remaining uncertainties 10/03/2010 I page 28

FORTIS I Shareholders equity + FRESH Invested in non-current assets on balance sheet Total Capital Contingent asset off balance (Fortis Bank Tier 1 loan, due Sept 2011) Already committed to projects (Tesco & dividend) Discretionary Capital * (if available in cash) 4.0 1.4 2.6 1.0 0.3 1.3 EUR bn EUR bn EUR bn EUR bn EUR bn EUR bn Increase of discretionary capital since end of June 2009 amounts to EUR 0.2 billion due to sale of investments in Mandatory convertible & part of result increasing capital position Net cash position unchanged at EUR 3.0 billion As of 1 January 2010, net cash position will include EUR 0.2 bn negative net cash and equity of FII, lowering reported discretionary capital by the same amount Discretionary Capital of the General Account slightly up 10/03/2010 I page 29 EUR bn; 31 December 2009 Assets Liabilities Net Cash: EUR 3.0 bn Cash & Cash equivalents 4.3 ST (EMTN (0.9) + Bank (0.4)) 1.3 Passed on Due from FBB & AG Insurance 1.7 NITSH I & NITSH II 1.7 LT assets & LT liabilities Other 0.2 RPN(I) 0.3 Other 0.4 Discretionary Capital on balance sheet Royal Park Investments 0.8 FRESH 1.2 Call option net of tax on BNP P 0.6 Net equity 2.8 Perpetual loan to AG insurance 0.1 Total 7.7 Total 7.7 * Fortis defines discretionary capital as the lower of the available cash and total capital of the General Account corrected for (contingent) illiquid assets and existing investment commitments

FORTIS I Financial instruments Brussels, Belgium Criminal proceedings Fortis will manage all legal proceedings & investigations in the interest of its shareholders Investigation ongoing Belgium & The Netherlands Belgium The Netherlands a) Experts at request of individuals represented by Mr Modrikamen : report “Van Gerven”: filed in June 09 b) Experts appointed at request of Deminor Int’l: On going & investigating specifically transactions Sep/Oct 08 Experts appointed at request of VEB : Investigating period Aug 07-Oct 08 Amsterdam, The Netherlands Procedure on the merits initiated by individuals, represented by Mr Modrikamen : court decision 8 Dec 09 on competence and provisional measures Procedure on the merits initiated by individuals, represented by Deminor Int’l : pending Initiated by VEB/Deminor Initiated by Stichting Fortis Effect Utrecht, The Netherlands Initiated by individuals represented by Mr. Bos USA, New York Class action : dismissed by decision rendered on 18/02/10 appealed Proceedings in relation to FRESH AFM : decision 5 Feb 2010 : fine imposed appeal filed by Fortis CBFA : proceedings ongoing 10/03/2010 I page 30 Civil lawsuits Administrative proceedings Belgium Expert investigations Brussels, Belgium

FORTIS I Shareholders’ equity at EUR 8.3 bn Shareholders’ equity as per 31/12/08 6.8 0.7Capital gain on sale 25% +1 share AG Insurance (based on EUR 2.8 bn book value) (0.3) Shareholders’ equity as per 31/12/09 8.3 Available Net Cash position General as per 31/12/08 2.0 Cash proceeds on sale 25% + 1 share AG Insurance 1.4 Charge legal dispute Fortis Capital Company Ltd (0.3) Equity investment Royal Park Investments (0.8) Elimination leverage Fortis Insurance International N.V. (Holding) (0.2) Available Net Cash position General (as per 31/12/09) 3.0 Charge legal dispute Fortis Capital Company Ltd 0.8Net result 2009 Insurance/General (excl. items above) Net cash unwinding financing structure Fortis Bank SA/NV 1.0 Net equity per share 31/12/09 (EUR/share) 3.4 (EUR bn) 0.3Net impact fair value RPN interest payments/ value call option BNP Paribas shares 10/03/2010 I page 31

FORTIS I Gross dividend proposed of eurocent 8 per share Expected payout ratio of 41% Proposal for approval by shareholders at Annual shareholders’ meeting of 28 and 29 April 2010 I page 329/25/2009 FORTIS targets to pay out 40% to 50% of the net profit of the insurance activities “ ” 10/03/2010 I page 32

FORTIS I 10/03/2010 I page 33 ■ CEO update ■ Full year results 2009 ■ Conclusion Agenda 10/03/2010 I page 33

FORTIS II page 34 Continued focus on streamlining and reinforcing insurance activities Progress on legacy issues while seeking maximal value creation More clarity on outcome various legal investigations Finalize rebranding and repositioning of the company Conclusion 2009 a year of stabilisation, 2010 another important year 9/25/2009 10/03/2010 I page 34

FORTIS I Fortis proposes to change its name The new name is a crucial element in the repositioning of the group and symbolizes the start of a new era “ 10/03/2010 I page 35 ”

FORTIS I 10 March 2009 Selected topics

FORTIS I 10/03/2010 I page 37 ■ Insurance activities ■ Embedded Value 2009 ■ Financial instruments ■ Royal Park Investments ■ Ratings ■ General information on Fortis Selected topics 37-55 56-74 75-77 78-81 82-83 84-88

FORTIS I Summary overview inflows FY 2009 By segment AG Insurance Gross written premiums Life Investment contracts without DPF Gross Inflow Life Gross Written premiums Non-Life Total inflow AG Insurance Insurance International (FII) Gross written premiums Life Investment contracts without DPF Gross Inflow Life Gross Written premiums Non-Life Total inflow FII consolidated Non-consolidated JVs (100%) Total inflow FII Total inflows EUR mio 10/03/2010 I page 38 FY 09 FY 08 Change H2 09 H2 08 Change 4,769 583 5,352 1,515 6,867 1,826 2,187 4,013 1,139 5,152 3,773 8,925 15,792 4,077 740 4,817 1,465 6,282 1,719 2,383 4,102 1,228 5,330 3,010 8,340 14,623 17% (21%) 11% 3% 9% 6% (8%) (2%) (7%) (3%) 25% 7% 8% 2,318 288 2,606 707 3,313 928 1,293 2,221 562 2,783 1,792 4,575 7,888 1,754 368 2,122 691 2,813 972 9,297 1,899 594 2,493 1,441 3,934 6,748 32% (22%) 23% 2% 18% (5%) 39% 17% (5%) 12% 24% 16% 17%

FORTIS I Summary overview inflow FY 2009 By type Life AG Insurance Fortis Insurance International - Fully consolidated - Non consolidated JVs (100%) Total inflow Life Non-Life AG Insurance Fortis Insurance International - Fully consolidated - Non consolidated JVs (100%) Total GWP Non-Life Total inflow Fortis Insurance EUR mio 10/03/2010 I page 39 FY 09 FY 08 Change H2 09 H2 08 Change 5,352 7,404 4,013 3,392 12,756 1,515 1,521 1,139 382 3,036 15,792 4,817 6,774 4,102 2,672 11,592 1,466 1,565 1,228 337 3,031 14,623 11% 9% (2%) 27% 10% 3% (3%) (7%) 13% 0% 8% 2,606 3,845 2,221 1,624 6,451 707 730 562 168 1,437 7,888 2,123 3,183 1,899 1,284 5,305 691 751 594 157 1,442 6,748 23% 21% 17% 26% 22% 2% (3%) (5%) 7% 0% 17%

FORTIS I Summary overview inflow FY 2009 By region 10/03/2010 I page 40 (EUR mio) Belgium United Kingdom Other European countries Portugal France Luxemburg Ukraine Germany Turkey Asia Hong Kong Equity associates at 100% Malaysia Thailand China India Fortis Re-Insurance Total % Ownership 75%-1 100% 51% 100% 50% /100% 100% 100% 100% 100% 31% 31% /12% 25% 26% 100% FY 09 5,352 10 3,706 2,163 335 1,102 2 41 62 3,689 297 3,392 498 456 2,371 67 12,756 FY 08 4,817 1 3,819 2,238 433 1,033 4 29 82 2,955 282 2,673 435 358 1,850 30 11,592 H2 09 2,606 7 2,059 993 182 830 1 24 28 1,780 156 1,624 224 224 1,142 34 6,452 FY 09 FY 08 1,465 954 214 192 22 337 337 269 68 61 3,031 H2 09 707 454 108 101 7 168 168 123 45 1,437 FY 09 6,867 913 3,939 2,377 335 1,122 2 41 62 4,071 297 3,774 791 545 2,371 67 15,792 FY 08 6,282 955 4,033 2,430 433 1,055 4 29 82 3,292 282 3,010 704 426 1,850 30 61 14,624 H2 09 3,313 461 2,166 1,094 182 837 1 24 28 1,948 156 1,792 347 269 1,142 34 7,888 Gross inflow Life Gross Written premiums Non-Life Total 1,515 903 236 214 22 382 382 293 89 3,036

FORTIS I … Fortis maintained its strong market positions 10/03/2010 I page 41 RBS 26% Others 37% Zurich 7% RSA 10% Aviva 16% Source: McKinsey – Company Data Fortis UK 4% In Belgium In UK Life AG Insurance 25% KBC 14% AXA 13% Dexia 12% Ethias 12% Others 24% Others 33% AXA 22% AG Insurance 17% Ethias 13% P&V 6% KBC 9% 10/03/2010 I page 41 In Portugal Source: Assuralia – 2008 market shares Others Leader Millenniumbcp Fortis 2009 market shares Non-Life Non-Life 48.0% 53.5% 31.2% 28.1% 30.3% 20.8% 16.2% 66.9% 5.0% Life Non-Life Total

FORTIS I AG Insurance Non-Life Life Life operating margin significantly recovered, despite lower financial yields and decreased average funds under management in unit-linked Non-Life operating margin down due to lower results in Fire. Combined ratio up to 103.2% Operating costs up 6% on higher staff expenses and non-recurring rebranding and separation costs Life cost ratio nearly stable; Non-Life cost ratio slightly up 10/03/2010 I page 42 Operating Margin Net Profit Non-Life Life Net profit recovered to EUR 366 mio Minority interests amounted to EUR 69 mio Positive DRD tax recovery impact EUR 94 mio Negative net-of-tax impact financial markets EUR 77 mio, incl EUR 16 mio loss on sale Greek bonds One-off rebranding costs related to name change and separation costs (EUR 7 mio) 65 390 313 117 (77) 40 (52) 401 50 316 (85) 6 (41) 91 378 366 FY 08 FY 09 FY 08 FY 09

FORTIS I Insurance International Non-Life Life Life operating margin up thanks to better investment margins, following increased funds under management and better market circumstances Non-Life operating margin down on poor claims experience in the UK Motor market and lower positive run-offs compared to previous years Operating costs nearly stable at current rates. Up 5% at constant exchange rates due to the inclusion of full year cost of UK Life operations and costs related to streamlining of the portfolio 10/03/2010 I page 43 Operating Margin Net Profit Non-Life Life Life net profit positively impacted by higher contribution of Millenium BCP Fortis and the absence of financial turmoil Positive net one off result of EUR 15 mio from re-assessment of reserves in Malaysia offset by costs related to streamlining of the portfolio Non-Life result down on lower UK contribution 104 23 126 69 (81) 47 92 (57) 22 56 174 0 24131 (27) (65) 66 (41) 90 65 FY 08 FY 09 FY 08 FY 09

FORTIS I Insurance Life FY 09 vs FY 08 analysis Gross inflow * Technical result Allocated capital gains Operating margin Non-allocated other income Pre-tax profit Tax Results on disc. operations Minorities Net profit bef. divestment EUR mio 10/03/2010 I page 44 FY 09 FY 08 Change 12,756 450 (68) 382 160 542 (60) - 100 382 11,591 (35) (99) (134) 94 (40) (95) - 15 (150) 10% * 32% * 68% * * - * * Net Profit Δ Tech. result Δ Alloc. gains Δ Non-alloc. income Δ Tax Δ Minor. Net Profit FY 08 (150) 485 31 66 35 (85) FY 09 382 Gross inflow up 10% to 12.3 bn AG Insurance up 11% to EUR 5.4 bn - Individual Life EUR 4.2 bn (+11%) Inflow bank/broker channel: EUR 3.5 bn (+27%) / EUR 0.7 bn (-29%) 32% market share - Group Life EUR 1.1 bn (+10%) FII: up 9% to EUR 7.4 bn - Strong performance at Asian partnerships (up 27% to EUR 3.4 bn), and recovery Luxembourg Operating margin up to EUR 382 mio AG Insurance/FII: EUR 313 mio / EUR 69 mio Strong increase due to shrinking financial turmoil impact somewhat offset by lower financial yields in Belgium Non-allocated other income up to EUR 160 mio Increase mainly related to FII and impact re- assessment reserves on annuity portfolio Malaysia Net result returns to profit in both AG and FII Supported by DRD recovery in Belgium and net one off result from re-assessment in Malaysia Increased minority stake due to sale 25% AG Insurance to Fortis Bank and higher contribution MilleniumBCP Fortis * Including non-consolidated JV's at 100%

FORTIS I Insurance Non-Life FY 09 vs FY 08 analysis Gross inflow* Technical result Allocated capital gains Operating margin Non-allocated other income Pre-tax profit Tax Results on disc. operations Minorities Net profit bef. divestment EUR mio 10/03/2010 I page 45 FY 09 FY 08 Change 3,036 85 2 87 35 122 (28) - 20 74 3,031 227 (7) 220 19 239 (73) - 10 156 0% (63%) * (60%) 84% (49%) (62%) - 100% (53%) Gross written premiums flat at 3.0 bn AG Insurance, up 3% to EUR 1.5 bn - Individual Life EUR 4.2 bn (+11%) Faster growth than market, # 2 market position confirmed Strong inflows in Motor Bank EUR 0.2 bn / Broker EUR 1.1 bn / EB- channel EUR 0.2 bn FII: down 3% to EUR 1.5 bn due to lower GBP-rate - At constant rates UK +6% mainly due to Household - Strong performance health business in Portugal Operating margin down to EUR 87 mio AG Insurance: down to EUR 64 mio, caused by climatic events affecting claims frequency mainly in Fire, and increased number of large claims . Combined ratio up to 103.2% FII: down to EUR 23 mio mainly on higher claims from UK’s Motor business and lower positive run-offs on previous years. Combined ratio up to 107.8% Non-allocated other income up to EUR 35 mio Increase mainly in FII from capital gains in Fortis UK and Fortis Re Net profit down in both AG Insurance & FII Impact lower technical result due to increased combined ratio Net Profit Δ Tech. result Δ Alloc. gains Δ Non-alloc. income Δ Tax Δ Minor. Net Profit FY 08 156 (142) 9 16 45 (10) FY 09 74 * Including non-consolidated JV's at 100%

FORTIS I AG Insurance P&C Combined ratio P&C Motor Fire 10/03/2010 I page 46 50,6% 52,7% 57,0% 59,8% 62,2% 42,9% 43,1% 42,2% 42,0% 42,5% 2005 2006 2007 2008 2009 93.5% 95.9% 99.2% 101.8% 104.7% Global P&C Combined ratio up to 104.7% mainly due to Fire Corrective measures taken e.g. product features Tariff increases in Fire and Motor (+ 3.5% on average since Jan 09) Expense ratio: Net cost ratio slightly up from 17.7% to 18.1% Commission ratio at 24.5% Claims ratio: 62.2% end 09 vs 59.8% in 08 - CY significantly up to 67.5% - PY : positive contribution of 5.3% Motor: 2008 result hit by review of bodily injury claims reference tables Fire: up significantly to 60.5% - CY vs PY : 64.6% vs positive 4.1% run off 52,1% 55,7% 56,9% 70,3% 68,5% 37,3% 37,8% 37,0% 36,4% 36,3% 2005 2006 2007 2008 2009 89.4% 93.5% 93.8% 106.6% 104.8% Expense ratio Claims ratio Expense ratio Claims ratio 47,1% 48,3% 56,8% 50,7% 60,5% 48,2% 46,9% 45,5% 45,8% 47,1% 2005 2006 2007 2008 2009 95.2% 95.3% 102.3% 96.5% 107.6%

FORTIS I Fortis Insurance International P&C Combined ratio P&C Motor Fire 10/03/2010 I page 47 86.8% 69.3% 77.9% 30.3% 28.9% 31.1% 2007 2008 2009 116.9% 98.2% 109.0% Mainly Fortis UK, global P&C Combined ratio up to 109.0% due to Motor Corrective measures taken e.g. rate increases, sophisticated rate analysis, fraud prevention techniques Expense ratio significantly down since 06: Net cost ratio at 17.7% (vs 18.4% in 07) Commission ratio at 12-13% Claims ratio: FII: 77.9% end 09 vs 69.3% in 08 - CY at 81.2% vs 75.5% in 08 - PY at positive 3.3% vs 6.2% in 08 Motor/ Fire: PY positive run off at 2.7%/4.6% 85.7% 76.2% 88.7% 25.1% 25.5% 25.5% 2007 2008 2009 110.8% 101.7% 114.2% Expense ratio Claims ratio Expense ratio Claims ratio 95.0% 57.7% 56.2% 37.0% 31.5% 35.7% 2007 2008 2009 132.0% 89.2% 91.9%

FORTIS I Cost ratio overview AG Insurance Life cost ratio stable as increased funds under management absorbed cost increase, due to higher staff expenses FII Increase in funds under management overcompensates the full year inclusion of UK Life operations. 10/03/2010 I page 48 Life cost ratio as % average funds under management 0.41%0.40% 0.42% 0.96%0.97%0.94% 2007 2008 2009 AG Insurance FII Non-Life cost ratio as % gross written premiums 16.5% 16.1% 16.4% 16.5% 16.3% 16.9% 2007 2008 2009 AG Insurance FII AG Insurance Non-Life operating costs increase, driven by higher staff expenses, rebranding and separation cost. FII 2009 operating costs increase (-6%) not fully absorbed by decreased inflow (-7%) pushing cost ratio slightly higher.

FORTIS I Fortis Investment Portfolio at 31 December 2009 Fixed Income Securities 51.2 RE Inv Prop* 2.2 RE own use* 1.4 Equities 1.6 Fixed Income securities 99% investment grade, 89% rated A or higher Government debt further reduced ‒ Mainly EUR 1.5 bn Italian bonds sold** ‒ Impact re-balancing of investments on results limited Equities Up to EUR 1.6 bn Increase linked to new investments and revaluation portfolio Real Estate Unrealized gain net-of-tax remained intact at EUR 0.6 bn Occupancy rate 94% (EUR bn) FORTIS’ overall low risk investment portfolio supports its long term liabilities and is tightly monitored “ 10/03/2010 I page 49 Insurance Investment Portfolio (EUR 56.4 bn) ” * Real Estate valued at market value; Unrealized gain after tax (incl. own use) amounts to EUR 0.6 billion ** Sales in 2010 until 3 March 2010

FORTIS I Fixed Income Securities of EUR 51.2 bn Situation end of 31 December 2009 10/03/2010 I page 50 EUR bn Government Bonds 33.4 65% Structured Credits 0.5 1% Corporate Bonds 17.3 34% AAA 17.5 34% A 16.0 31% AA 12.6 25% BBB 4.9 10% Below Inv grade/ Unrated 0.3 0.7% Gross unrealized gains before tax EUR 1,517 mio or EUR 812 mio after tax and after shadow accounting 89% bond portfolio single A or higher 56% rated AA or higher Only 0.7% below investment grade or unrated

FORTIS I Government & Corporate Bond portfolio of EUR 50.7 bn Situation end of 31 December 2009 10/03/2010 I page 51 EUR bn Gross unrealized gains before tax and shadow accounting of EUR 870 mio (end of Dec 09) Additional sales government bonds in 2010, mainly Italian bonds for EUR 1.5 bn Sensitivities book value for yield changes (1bp): - Greece: EUR -1.2 mio to EUR -1.4 mio - Italy : EUR -3.3 mio to EUR -4.0 mio - Spain : EUR -0.7 mio to EUR -0.8 mio Gross unrealised gains of EUR 649 mio (end of Dec 09) 94% bond portfolio single A or higher; 72% rated AA or higher; only 1% below investment grade or unrated Government bonds EUR 33.4 bn Corporate bonds EUR 17.3 bn Spain 2.0 Banking/ Other financials 8.5 Other corporates 2.2 Supra-national 1.9 Government related 4.7 Greece 4.1 Belgium 6.9 Portugal 3.1 Italy 8.9 France 1.7 Others 6.7

FORTIS I Equity portfolio of EUR 1.6 bn 10/03/2010 I page 52 EUR bn Increased equities position driven by investments & positive revaluations Value reduction of EUR 40 mio on real estate funds (Sicafi related) Unrealized gain of EUR 141 mio end 09 vs unrealized loss end HY1 09 of EUR 12 mio (after tax and shadow accounting) * Including EUR 0.32 mio real estate mutual funds Equity funds 0.08 Equities 0.67 FII 0.5 AG Insurance* 1.1 Mixed funds 0.10 Real Estate funds 0.57 Others 0.15

FORTIS I Real estate portfolio of EUR 3.6 bn (at market value) 10/03/2010 I page 53 EUR bn Investments for own use EUR 1.4 bn Investment property EUR 2.2 bn Unrealized gain (net-of-tax), end 09 at EUR 643 bn - For own use: EUR 266 mio - Investment property: EUR 377 mio - Not reflected in net equity Real estate exposure mainly in Belgium - Mainly Brussels region - Office buildings: occupancy rates of 94% - Commercial assets: shopping centers & public car parks across Europe (via Interparking) - Stable income streams Corporate Buildings 0.3 Belgium 2.6 France 0.3 Spain 0.2 Car Parks 1.1 Investment Offices 1.4 Investment Retail 0.7 Investment Warehouses 0.1 Europe/ Others 0.2Italy 0.1 Germany 0.2

FORTIS I Fortis Insurance Gross Technical Reserves 10/03/2010 I page 54 Total Reserves – Life AG Insurance (Belgium) Insurance International Total Reserves – Life Ins. & Inv. contracts. AG Insurance (Belgium) Insurance International Total Reserves – Life Unit-Linked AG Insurance (Belgium) Insurance International Gross Technical Reserves Non-Life AG Insurance (Belgium) Insurance International Total Gross Technical Reserves FY 09 FY 08 Change 68.0 45.3 22.7 47.3 38.8 8.5 20.7 6.5 14.2 5.0 3.0 2.0 73.0 61.6 41.8 19.8 43.5 35.9 7.6 18.1 5.9 12.2 4.3 2.9 1.4 65.9 +10% +9% +15% +9% +8% +12% +14% +11% +16% +16% +3% +43% +11%

FORTIS I Fortis’ capital of a high quality As per 31/12/09 10/03/2010 I page 55 Reported net Shareholders’ Equity Unrealised gain real estate Goodwill VOBA (Value of Business Acquired) DAC (Deferred Acquisition Cost) Other* Goodwill, DAC, VOBA related to minorities 25% tax adjustment DAC, VOBA & Other Tangible net equity Tangible net equity 83% of reported net shareholders’ equity 8.3 0.5 (1.4) (0.5) (0.5) (0.2) 0.4 0.3 6.9 EUR mio * Includes a.o. management contracts of public car parks

FORTIS I 10/03/2010 I page 56 ■ Insurance activities ■ Embedded Value 2009 ■ Financial instruments ■ Royal Park Investments ■ Ratings ■ General information on Fortis Selected topics 37-55 56-74 75-77 78-81 82-83 84-88

FORTIS I 10/03/2010 I page 57 Key messages As per 12 May 2009 the scope of Fortis Group consisted of 75% of AG insurance, Fortis Insurance International, including international insurance activities in Europe and Asia and a General Segment. The change in scope has led to a restatement of the Embedded Value 2008 to EUR 4.3 bn. Where comparisons are made with 2008 results, these results are restated for the scope changes in 2009 The Value Added by New Business (VANB) reduced from EUR 81 mio on a restated basis by 14% to EUR 69 mio in 2009. The value at AG insurance increased from 2008, which was impacted by defaulting bonds. This increase was more than offset by a decrease at Insurance International which was driven by lower new business volumes The EV increased by 15% to EUR 4.9 bn based on solid operating cash flows and supported by increased interest rates and recovery of financial markets during 2009. Fortis complies with European Embedded Value (EEV) Principles and applies a market consistent approach. Fortis has continued its methodology as applied for the Embedded Value of 2008 until the CFO Forum has finalised the review of the Market Consistent Embedded Value Principles© Full Embedded Value 2009 report available on www.holding.fortis.com including review statement “

FORTIS I 1,260 1,063 3,638 3,208 FY 08 FY 09 Value creation in Fortis Insurance Embedded Value development Fortis AG Insurance* 4,898 4,271 +15% Value added by New Business (VANB) 10/03/2010 I page 58 International EUR mioEUR mio * AG Insurance at 75% The divestiture of 25% stake in AG Insurance led to an opening adjustment of EUR 954 mio. Together with other Opening Adjustments the total year start restatement amounts EUR 652 mio negative. The EV increased by EUR 627 mio based on solid operating cash flows and supported by increased interest rates and recovery of financial markets during 2009. VANB reduced from EUR 81 mio 2008, restated based on the new scope, to EUR 69 mio The value at AG insurance increased from 2008, which was impacted by defaulting bonds This increase was offset by a decrease at Insurance International which was driven by lower new business volumes 20 41 49 40 FY 08 FY 09 69 81 -14%

FORTIS I 4,271 251 365 4,898 46963 Increase Embedded Value by 15% to EUR 4.9 bn during 2009 Change in Value before variances and VANB: the expected after-tax return on embedded value resulting from projections of assets and liabilities over the year Operating assumptions changes and variance: operating assumption changes and the difference between actual and expected non-economic experience and assumption changes, including lapses and mortality Changes in investment income: the difference between actual and expected economic experience, including yields on Equity, Real Estate and fixed income portfolios Change in interest rates and market conditions: the impact of changes in interest rate yield curves, volatilities and liquidity premium 10/03/2010 I page 59 15% EV 2009 Year start Change in Value before variances and VAN B EV 2009 Year end Operating assumptions changes and variances Value Added by New Business Changes in Investment Income Change in Interest rate and market conditions

FORTIS I 10/03/2010 I page 60 ■ Embedded Value at Fortis ■ EV 2009 Results Agenda

FORTIS I FCoC Certainly Equivalent Value Deterministic value of the business without taking credit for any future investment risk premiums. Captures the ‘intrinsic value’ of financial options & guarantees Cost of Financial Options & Guarantees Represents the ‘time value’ of options & guarantees Cost of Non- Hedgeable Risks (Market value Margin) is an allowance for the uncertainty of shareholder profits related to insurance and operational risks Market Consistent Value of the operating business in force obtained after allowing for all risks Embedded Value at Fortis Value of Shareholder Equity Market value of the assets backing the shareholder equity Value of In-force Business Value of the operating business based on a market consistent deduction of risks Frictional Cost of Capital Cost of tax and investment charges on the portion of equity needed to meet solvency requirements Total EV CNHR CFOG Certainty Equivalent Value VIF VSE VIF Total Value components Risk components 10/03/2010 I page 61

FORTIS II page 62 Scope 2009 I page 62 Covered business for Fortis EV includes all long-term life insurance business from the following majority shared subsidiaries: AG Insurance in Belgium (75%) Insurance International - Fortis Assurances in France - Fortis Luxembourg in Luxembourg (50%) - Millenniumbcp Fortis in Portugal (51%) - Fortis Insurance Company Asia (‘FICA’) in Hong Kong This Fortis EV disclosure excludes joint ventures in Asia and smaller entities in Insurance International not mentioned above. Where comparisons are made to 2008 results, the figures represent the restated figures resulting from the scope changes at Fortis Group, unless stated otherwise. “ 10/03/2010

FORTIS I 1.2% 1.7% 2.2% 2.7% 3.2% 3.7% 4.2% 4.7% 5.2% 1 3 5 7 9 11 13 15 17 19 21 23 25 EUR Swap 2008 EUR Swap 2009 HKD Swap 2008 HKD Swap 2009 Key Assumptions and Calibrations 10/03/2010 I page 63 * A number of at-the-money swaption quotes as of last trading day of the year were used for calibrating interest rate model. The sample quotes are for a 5-year and 10-year option on 10-year and 15-year swap. ** Quotes for volatilities on Equity Share investments for HKD also include USD indices *** Asset mix based on market value of assets backing modelled operating business excluding unit linked business and assets backing shareholder equity which do not impact CFOG Operating assumptions Expenses: actual expenses including allocation of pension costs and all holding expenses except for pre-tax EUR 140 mio of group central overheads related to both the General Segment and Insurance activities of which a part remained unallocated for life activities. Expense inflation is based on price and wage inflation. Other operating assumptions: best estimate. Economic assumptions and Market conditions Swap 1 year 5 years 10 years 20 years Illiquidity Premium on swap Volatilities Sample swaption quote* for 5 yr/10yr option on 10 year swap 5 yr/10yr option on 15 year swap Equity indices (Min/max) Real Estate indices (Min/max) 1.3% 2.8% 3.6% 4.1% 20 bps 16.4%/14.4% 16.6%/14.7% 22.2%/26.9% 1.4%/45.5% 0.5% 2.7% 3.6% 3.6% 50 bps 23.8%/24.7% 23.8%/24.7% 22.2%/26.9%** 28.5% Economic Assumptions EUR HKD FY 09 Yield Curve 2.7% 3.2% 3.7% 3.8% 50 bps 20.8%/18.3% 22.3%/21.2% 28.4%/40.6% 11.9%/23.9% 2.9% 2.0% 1.9% 1.8% 100 bps 50.0%/50.6% 56.6%/52.1% 29.2%/39.7%** 21.9% EUR HKD FY 08 Fixed Income Shares Real Estate 91% 1% 7% 85% 7% 8% Asset mix *** Fortis Insurance AG Insurance FY 09 Insurance international Actual Target Actual Target Actual Target Fortis Insurance AG Insurance FY 08 Insurance international Actual Target Actual Target Actual Target 91% 1% 8% 85% 6% 9% 94% 1% 5% 84% 8% 7% 92% 1% 7% 85% 7% 8% 92% 1% 8% 85% 7% 8% 92% 3% 5% 84% 8% 7%

FORTIS I 10/03/2010 I page 64 ■ Embedded Value at Fortis ■ EV 2009 Results Agenda

FORTIS I Restatement of 2008 EV EUR mio 10/03/2010 I page 65 Free Surplus Required Equity Value of In-force business Embedded Value AG Insurance Insurance International 362 123 485 (294) (261) 2,617 (558) 2,059 186 155 1,944 (217) 1,728 210 187 4,923 (652) 4,271 102 81 3,817 (609) 3,208 53 40 1,107 (43) 1,063 49 41 + + = EV as reported in 2008, is restated including Value added by New Business is restated as a result of the scope changes resulting from the disentanglement of Fortis that started in 2008. Together with modeling enhancements, these changes include: Divestiture of 25% stake in AG Insurance to BNP Paribas Fortis led to an opening adjustment of EUR 954 mio. Marking to market value of existing subordinated loans which have a market quotation and increasing Shareholder Equity by EUR 191 mio. Capital contribution of EUR 30 mio from Fortis Group to Insurance International. Year-end 2008 Scope adjustments Year-end 2008 restated Value Added by New Business 2008 Value Added by New usiness 2008 restated

FORTIS I 4,898 2,940 1,957 (425) (165) (628) 3,175 1,957 Overview of Embedded Value of 2009 10/03/2010 I page 66 Value components Risk components Total Embedded Value Value Business In-Force Value of Shareholders Equity Value Business In-force Certainty Equivalent Value Cost of options and guarantees Cost of Non- hedgeable Risks Frictional Costs of Capital

FORTIS I Overview of Embedded Value of 2009 Details per Business EV 2009 year end Total Shareholders Equity - Required Equity - Free Surplus Value of In-force Business - Certainty Equivalent Value - Cost of Financial Options and Guarantees - Cost of Non-hedgeable risks - Cost of Capital EUR mio 10/03/2010 I page 67 Total Insurance AG Insurance Insurance International 4,898 2,940 2,340 600 1,957 3,176 (628) (165) (425) 3,638 2,345 1,875 470 1,292 2,238 (406) (143) (397) 1,260 595 465 130 665 938 (222) (22) (28) Value of In-Force Business 2009 Year-end Value of In-Force Business 2009 Year-start % Change Modelled Technical Provisions 2009 Year-end Modelled Technical Provisions 2009 Year-start % Change Ratio VIF/Modelled Tech. Prov. 2009 Year-end Ratio VIF/Modelled Tech. Prov. 2009 Year-start 1,957 1,728 13% 50,803 46,518 9.2% 3.9% 3.7% 1,292 1,176 10% 33,760 31,152 8.4% 3.8% 3.8% 665 551 21% 17,043 15,366 10.9% 3.9% 3.6%

FORTIS I 4,271 251 365 4,898 46963 Movement Analysis Change in Value before variances and VANB: the expected after-tax return on embedded value resulting from projections of assets and liabilities over the year Operating assumptions changes and variance: operating assumption changes and the difference between actual and expected non-economic experience and assumption changes, including lapses and mortality Changes in Financial Markets: the difference between actual and expected economic experience, including yields on Equity and Real Estate portfolios Change in interest rates: the impact of changes in interest rate yield curves and volatilities 10/03/2010 I page 68 15% EV 2009 Year start Change in Value before variances and VAN B EV 2009 Year end Operating assumptions changes and variances Value Added by New Business Changes in Investment Income Change in Interest rate and market conditions

FORTIS I Movement Analysis Details per business 10/03/2010 I page 69 Year-start 2009 Expected return - Risk free return - Expected return above risk free - Transfer to shareholder equity Experience variance and assumption changes Value added by new business Variance on Investment income Changes in interest rates and markets conditions Exchange rate differences Year-end 2009 EUR mio Free Surplus Required Equity Value of In-force business Embedded Value AG Ins. Insurance Int. 485 434 4 2 428 (50) 267 (35) 32 2 600 2,059 (52) 70 15 (137) 125 180 6 27 (4) 2,340 1,728 (131) 78 82 (291) (137) 157 32 318 (9) 1,957 4,271 251 152 99 0 (63) 69 4 376 (10) 4,898 3,208 196 124 71 (0) (23) 49 (69) 277 0 3,638 1,063 56 28 28 0 (41) 20 73 99 (10) 1,260 + + =

FORTIS I 40 49 FY 08 FY 09 Overview of New Business AG Insurance VANB VANB Margin PVNBP IRR* 10/03/2010 I page 70 (EUR mio) (EUR mio) (VANB / PVNBP) (VANB / APE) 3,2493,266 FY 08 FY 09 12.3%12.7% FY 08 FY 09 1.5%1.2% 13% 15% FY 08 FY 09 * Calculated based on a deterministic projection using real-world assumptions

FORTIS I 41 20 FY 08 FY 09 Overview of New Business Insurance International VANB VANB Margin PVNBP IRR* 10/03/2010 I page 71 (EUR mio) (EUR mio) 2,222 2,959 FY 08 FY 09 * Calculated based on a deterministic projection using real-world assumptions (VANB / PVNBP) (VANB / APE) 14.2% 17.3% FY 08 FY 09 0.9%1.4% 12% 8% FY 08 FY 09

FORTIS I Sensitivities Embedded Value Embedded Value Risk free rate + 100bp Risk free rate - 100bp Asset values shares and real estate -10% Volatilities equities and properties +25% Volatilities risk-free yields +25% Liquidity Premium 0bp Liquidity Premium +10bp Required Equity (minimum regulatory level) Costs -10% Mortality rates -5% Lapse rates -10% EUR mio 10/03/2010 I page 72 Total Insurance AG Insurance Insurance International 4,898 (2.0%) (1.7%) (4.8%) 0.7% (5.2%) (4.0%) 1.7% 2.6% 2.8% 0.6% 0.6% 3,638 (2.7%) (1.9%) (5.2%) 1.2% (4.9%) (4.1%) 1.8% 3.2% 2.6% 0.3% 0.2% 1,260 0.1% (1.1%) (3.4%) (0.7%) (6.0%) (3.5%) 1.3% 0.8% 3.2% 1.3% 1.6%

FORTIS I Sensitivities Value Added by New Business Value Added by New Business Risk free rate + 100bp Risk free rate - 100bp Volatilities equities and properties +25% Volatilities risk-free yields +25% Liquidity Premium 0bp Liquidity Premium +10bp Required Equity (minimum regulatory level) Costs -10% Mortality rates -5% Lapse rates -10% EUR mio 10/03/2010 I page 73 Total Insurance Insurance Belgium Insurance International 69 7.4% (15.9%) (0.4%) (18.9%) (15.3%) 5.9% 9.1% 10.8% 5.3% 7.0% 49 7.2% (19.0%) 3.4% (13.3%) (15.5%) 5.4% 10.2% 7.8% 3.3% 3.6% 20 7.7% (8.2%) (9.6%) (32.7%) (14.6%) 7.0% 6.3% 18.1% 10.3% 15.2%

FORTIS I Group EV Adjusted Net Equity 2009 10/03/2010 I page 74 Total IFRS equity, including minority interest, allocated to General including eliminations Minority interests Insurance Insurance Shareholder Equity, allocated to Other Insurance activities Life Insurance activities Life Activities Shareholders Equity, split between Non-covered Covered Covered Life Activities IFRS Equity, adjusted for Deduction Deferred Acquisition costs Deduction of Other Intangible Assets (Goodwill/VOBA) Reserves adjustments Market value adjustments Reallocation of UCG to assets backing provisions Adjustments for participation differences Value of shareholder Equity Embedded Value, of which Value of Shareholder Equity Value of Business In-force Business out of scope Adjustments for participation differences Non-covered life activities Other Insurance activities General including eliminations Adjusted Net Equity EUR mio FY 09 FY 08 10,004 2,806 1,654 5,544 5,544 965 4,579 4,579 504 4,075 4,075 -172 -920 169 847 -1,293 235 2,940 4,898 2,940 1,957 4,040 -235 504 965 2,806 8,938 7,310 2,001 515 4,793 4,793 907 3,889 3,889 79 3,811 3,811 -167 -953 447 444 -761 158 2,979 4,924 2,979 1,944 2,829 -158 79 907 2,001 7,753

FORTIS I 10/03/2010 I page 75 ■ Insurance activities ■ Embedded Value 2009 ■ Financial instruments ■ Royal Park Investments ■ Ratings ■ General information on Fortis Selected topics 37-55 56-74 75-77 78-81 82-83 84-88

FORTIS I Overview of main characteristics Hybrids % Amount ISIN Call date ACSM Dividend pusher Dividend stopper Trigger Other Market Value (Feb 26) EUR mio 10/03/2010 I page 76 Fortis Finance, Senior outstandings Fresh Hybrone Fortis Hybrid Financing Nitsh I Nitsh II 910 EMTN Debt in default, early redemption at first request of bondholders - - - - - - 3m EUR + 135 1,250 XS0147484074 Undated exchange strike 31,50 mandatory 47,25 YES YES NO < 0,5% divident trigger - 46.9 5.125% 500 XS0257650019 Jun/2016 Step up to 3M Euribor+200 YES YES YES Liabilities > assets 500 on lent to AG Insurance 68.6 8.25% USD 750 XS0346793713 Aug/2013 No step up YES YES YES Liabilities > assets USD 750 on lent to FBB 91.9 8% 625 XS0362491291 Jun/2013 No step up YES YES YES Liabilities > assets 250 on lent to AG Insurance 375 on lent to FBB 92.3 Fortis Holding ASR instrument TOPrS -contingent liabilities with regard to former subsidiaries – no longer exists as result of exchange on 4 August 2009

FORTIS I Overview of main characteristics Hybrids % Amount ISIN Call date ACSM Dividend pusher Dividend stopper Trigger Other Market Value (Feb 26) EUR mio 10/03/2010 I page 77 FCCL MCS Direct issue FBB 2001 Direct issue FBB 2004 CASHES 3m EUR +260 88 GB0057047275 FBNH did not call on 29-6-2009; coupon at the discretion of FBNH* - - - - - - 8.75% 2,000 XS0328920862 Exchange 7-12-2010 at 18,74 # 106.723.586 shares YES** YES NO Early conversion <5% T1 <8% CAD or default issuers Coupon at discretion Issuers (FBNH & FBB & Holdings) 18.7 4.625% 1,000 BE0117584202 Sep/2011 Step up to 3M Euribor+237 YES YES YES <5% T1 If not called, holders can opt to exchange in Fortis shares, in turn Fortis would need to redeem in shares or cash 96.5 6.50% 1,000 BE0119806116 Oct/2014 Step up to 3M Euribor+170 YES YES YES YES <8% CAD No stock settlement feature as for Direct issue FBB 2001 79.7 3m EUR +200 3,000 BE0933899800 Undated exchange strike 23,94 mandatory 35,91 YES NO YES <0.5% Dividend Coupon served by FBB,however,trig- ger ACSM linked to dividend Fortis’ holdings 55.8 Fortis Bank Nederland Fortis Bank * Fortis holdings paid 362 mio after ruling in summary proceedings, proceedings on the merit of the case pending Fortis not liable for remaining principle, parental support on coupon dependent on outcome proceedings ** Only in case of an accelerated conversion

FORTIS I 10/03/2010 I page 78 ■ Insurance activities ■ Embedded Value 2010 ■ Financial instruments ■ Royal Park Investments ■ Ratings ■ General information on Fortis Selected topics 37-55 56-74 75-77 78-81 82-83 84-88

FORTIS I Overview funding Royal Park Investments As per 31 December 2009 10/03/2010 I page 79 Capital Senior Super Senior Total Capital & Debt 740 (44%) 740 State of Belgium (SFPI/FPIM) 200 (12%) 519 719 760 (45%) 760 4,321* 3,375 7,696 1,700 4,840 3,375 9,915 * End of February, senior debt Fortis Bank fully replaced by commercial paper programme, benefiting from a Belgian State Guarantee. Senior debt provided by BNP Paribas is not state guaranteed

FORTIS I Quality portfolio assets Royal Park Investments 10/03/2010 I page 80 Exp average income = IBOR + 50 bps (on face value EUR 17.9 bn) minus cost IBOR + average mark-up of 48 bps (on EUR 8.2 bn) Breakdown by currency Breakdown by rating AAA 23% USD 71% EUR 22% Below inv. Grade Unrated 54% GBP 7% AA 11% A 5% BBB 7%

FORTIS I Balance sheet Royal Park Investments under IFRS 12-5-2009 31-12-2009EUR mio Assets Securities Deferred tax assets Goodwill Other assets Liabilities and shareholders' equity Liabilities Other liabilities Commercial Paper Funding, super senior Funding, senior Shareholders’ equity Share capital Share premium (additional paid in capital 11,754 8,240 1,191 2,323 11,754 10,054 5,027 5,027 1,700 850 850 10,152 7,230 943 1,724 281 10,152 8,452 237 1,431 3,375 3,409 1,700 850 850 10/03/2010 I page 81

FORTIS I 10/03/2010 I page 82 ■ Insurance activities ■ Embedded Value 2009 ■ Financial instruments ■ Royal Park Investments ■ Ratings ■ General information on Fortis Selected topics 37-55 56-74 75-77 78-81 82-83 84-88

FORTIS I Ratings 10/03/2010 I page 83 AG Insurance Insurance Financial Strength Outlook Last change MilleniumBCP Fortis Insurance Financial Strength Outlook Last change Fortis Holdings Long-term Outlook Last change Fitch S&P Moody's A+ Negative 8-Dec-09 A Stable 9-Jul-09 BBB+ Negative 8-Dec-09 A- Stable 3-Aug-09 A- Stable 3-Aug-09 BBB- Stable 3-Aug-09 A2 Negative 15-Jul-09 NR Baa3 Developing 15-Jul-09

FORTIS I 10/03/2010 I page 84 ■ Insurance activities ■ Embedded Value 2009 ■ Financial instruments ■ Royal Park Investments ■ Ratings ■ General information on Fortis Selected topics 37-55 56-74 75-77 78-81 82-83 84-88

FORTIS I General information Fortis share 10/03/2010 I page 85 Total number of outstanding shares Including shares issued for FRESH Including shares issued for CASHES Shares to be potentially issued In connection with MCS In connection with option plans Total number of effective and potential shares Shares related to CASHES and FRESH not entitled to dividend and voting rights Par value Fortis SA/NV and Fortis N.V. share equal at EUR 0.42 per share Authorized capital around 322 mio shares Valid until general shareholder’s meeting of 2011 Usage in line with companies code and bylaws 2,516,657,248 39,682,540 125,313,283 147,437,048 105,386,849 42,050,199 2,664,094,296

FORTIS I Shareholder structure overview Per type 10/03/2010 I page 86 December 2009 based on 2,516,697,248 shares * 125 mio shares related to CASHES financial instrument; shares without dividend and voting rights Source: Thomson Financial Ping An 4.98% Other Institutionals +/-60% Retail Benelux +/- 25% Blackrock Inc 3.39% UBS AG 3.15% Fortis Bank SA/NV 4.97%*

FORTIS I Shareholder structure overview Per country 10/03/2010 I page 87 December 2009 based on 2,516,697,248 shares Source: Thomson Financial UK 21% China 5% Belgium 33% (incl retail) Netherlands 8% (incl retail) France 6% Other Europe 10% Rest of World 12% Germany 5%

FORTIS I 4 May Ex-dividend date – Start dividend election period 10/03/2010 I page 88 Financial Calendar 2010 28 April Annual shareholders’ meeting Brussels 10 March Annual results 2009 29 April Annual shareholders’ meeting Utrecht 12 May Q1 10 Periodic financial information 1 June Payment 2009 dividend 21 May End of dividend election period 25 August First half results 2010 10 November Q3 periodic financial information

FORTIS I 10/03/2010 I page 89 Fortis Investor Relations Tel: E-mail: Website: + 32 2 565 57 49 + 31 30 226 65 66 ir@fortis.com www.fortis.com

FORTIS II page 90 Disclaimer I page 90 These pages are intended to provide investors with financial information about Fortis’s business plans. The financial information contained in this presentation has been prepared by Fortis and has not been audited. The figures are provided for information purposes only and are subject to the conditions and restrictions mentioned hereafter. No warranty can be given by Fortis, either explicitly or implicitly, regarding the reasonableness, correctness or completeness of the information, forecasts and assumptions contained in these pages. The information here provided could be subject to change. This presentation and the information contained herein in no way replace any formal reporting. Investment considerations should continue to be based on periodical reporting and other information Fortis is required to disclose by law or stock exchange regulations. Certain of the statements contained herein may be statements of future expectations and other forward-looking statements that are based on management’s current views and assumptions as well as on partial information and involve a certain degree of risk and uncertainty that could cause actual results or performance to differ materially f

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