Restructuring Leasing Portfolios

1. Restructuring Leasing Portfolios Keeping up with Stakeholder demands Bas Hoekstra Head of Product Management Prague, 2nd February 2012

2. Background - Company overview Profile ING Lease ING Lease is a product of ING Bank providing asset-based finance solutions to its clients on a pan-European scale. ING Lease operates under the brand name ING Lease providing financial and operating lease services: Key player in Europe ING Lease is the 6th largest leasing company in Europe according to the Leaseurope 2010 ranking, which is based on new production volume. 2

3. The current environment challenges status quo… • Ongoing crisis in the Eurozone • Longer term solutions require strong Political European leadership • Elections pending in major global Adapting to the new environment economies in 2012 • Ultimate capital targets under Basel III, including SIFI buffers, not yet known Regulatory • Ultimate rules on liquidity and funding not yet clear • Customer Centricity • Operational Excellence • Balance Sheet Optimisation • Additional measures under discussion • Sovereign debt crisis ongoing • Volatility in financial markets Economic • Very uncertain short - term economic outlook in EU, US and Asia This implies rethinking of ideal portfolio make up Restructuring Leasing Portfolios - February 2012

4. We have aligned our business closer to the bank’s • Which implies: • Hierarchical changes and functional steering. • Product Management organisation instead of a holding organisation. • Recognition of RWA benefits of the product. • Aligning to client base of the bank where feasible and profitable. • Tapping in to distribution network where efficient and cost effective. • Adapting to target segmentation local bank Bank and leasing closer aligned presence Bank and leasing presence Bank only Restructuring Leasing Portfolios - February 2012

5. Example ING Poland Bank is leading market player ING Lease in top 10 • Total ranking based on portfolio in 2010 Loans (total corporate) Deposits (total corporate) Pekao Pekao PKO BP PKO BP BRE Bank • Vehicles in 2010 (production) BRE Bank BZ WBK Millennium Raiffeisen Citibank BGŻ BZ WBK Nordea Raiffeisen • Machinery & Industrial in 2010 (production) Millennium Getin Citibank Kredyt Bank Restructuring Leasing Portfolios - February 2012, Market share, Sept. 2011, % Source: NBP; DMK 5

6. Historically a mismatch in target segments • Ranking largely due to excellent Real Estate presence. • Lease used to target a different market segment than the bank. • Ambition: top 4 leasing company in the market measured in production; number 3 in portfolio size. • To achieve that: • Market share in vehicles, machinery & equipment needs to be increased. • Leading position in real estate and rolling stock needs to be maintained. • It will result in a restructure of the portfolio mix: • 40-60 RE-Movables vs 70-30 today • Asset mix within portfolio changes over time to balance out more evenly. • New support system for standardised lease product. • Extension/ development of Small Ticket Leasing capability for the Retail Bank Clients and part of the Corporate business. • New back office system - current system not able to support future growth strategy. • Change of distribution model - Sales increase via Corporate & Retail Bank • ING Lease specialised product staff in all Corporate and Retail Bank regions. • Leasing KPIs for Bank Account Managers • Operational Excellence: • FTE impact; Shift to smaller transactions results in substantial increase in number of contracts requires different capabilities for sales & servicing. New production per asset group (as % of total new production) Restructuring Leasing Portfolios - February 2012 6

7. Utilise bank sales network better 1 Bielsko-Biała

8. Lease financing integrated part of ING internet offering • ING BusinessOnLine as main Internet tool to offer all corporate products including Lease • Internet / Contact Centre as main channel to service simple product clients • Straight-through-processing ING Direct Business Credit » ABL One Face » corporate lending » « Front End « ING Direct Business « Electronic applications « Account opening on ING website « e-INGvoicing « on-line Trezor Trade Finance » Project « e-Custody FX Trader » Restructuring Leasing Portfolios - February 2012 8

9. ABL One Face – Leasing facility • Focusing on mid- and small- ticket, bigger number of transactions, local currency • ABL Product specification: • cars, trucks, trailers, building machines, forklifts • PLN only • average transaction – EUR 25 k • process consistent with Bank’s procedures • Provide Lease in Fast Track credit process • (x-sell) Enable the bank relationships managers to offer lease (ABL) products on the same basis Simplify and automate credit process for Lease products offered for ING Bank customers Improve the efficiency of Lease processes => 50% of ABL products credit decisions via short credit process in Fast-Track • Provide Lease in ING BusinessOnLine • (better service) • Provide Lease on ING internet site 9 Restructuring Leasing Portfolios - February 2012

10. There is a lot to be gained; Major shift – Major Benefits • From RWA perspective Leases are favourable: • Substitution of loans with leases. Risk Weighted Assets Customer Centricity Better service bank and bank customer Innovative Developing distribution channels. Improving operations. Drive for excellence. Balance Sheet Optimisation Utilise liquidity and funding directly where it is sourced 10 Restructuring Leasing Portfolios - February 2012