Retail Investor Day 2018 Den Haag 19 September 2018 Agenda 1. - - PowerPoint PPT Presentation

Retail Investor Day 2018

Den Haag – 19 September 2018

2

1. Welcome and introduction 2. Half year results 2018 3. Corporate client activities 4. Retail client activities 5. NIBC ventures 6. Wrap up

Agenda

Herman Dijkhuizen Chief Financial Officer Vice-chairman of the Managing Board Saskia Hovers Member of the Executive Committee responsible for Corporate Client Offering Sectors Caroline Oosterbaan Member of the Executive Committee responsible for Corporate Client Offering Products

3

Paulus de Wilt Chief Executive Officer Chairman of the Managing Board Reinout van Riel Chief Risk Officer Member of the Managing Board Michel Kant Member of the Executive Committee responsible for Retail Client Offering

Introducing NIBC’s Executive Committee

4

1971 Renamed De Nationale Investerings Bank (DNIB) 1986 Listed on Dutch stock exchange

1945 - Long term lending bank focused on entrepreneurs 2005 Reinventing NIBC into a new bank for entrepreneurs - 2018

1945 Herstelbank founded by the Dutch government with the mission to help rebuild the Netherlands Launch of 2008: Netherlands 2009: Germany 2011: Belgium 2005 Acquired by a consortium led by 2017 Acquired minority equity stakes in FinTech companies 2016 Acquisition of renamed Launched new leasing equipment company

MARKE TS

Securities

2014 Acquisition in Germany

Where do we come from

Building upon an entrepreneurial DNA

2004 Rebranded as 2018 Listed at Euronext Amsterdam (NIBC) Investment in Acorn / OakNorth 1999 Rebranded as 1999 Delisted and 85% acquired by two Dutch pension funds

5

Our business model Our differentiated approach

Note: Financials for NIBC Holding as of H1 2018, unless otherwise stated. 1: Net Promoter Score (NPS) measures the willingness of customers to recommend a company’s products or services to others based on speed, pricing, quality of advice and deep sector and financial knowledge. Based on Corporate Bank products only.

Key indicators

• Client oriented franchise present at clients’ decisive moments
• No flow business, no current accounts offered and no branch network
• Focus on profitable products in client-led (sub)sectors
• Corporate portfolio size and limited number of clients allow complete insight and overview
• Efficient, entrepreneurial and agile culture, driven by THINK YES approach

NPS1 +72% Cost-to- income ratio 47% Total assets €21.8bn FTE 686 Net profit €84m Typical ticket size: €10-50m Typical ticket size: €100k-2.5m Corporate client offering

• Focus on mid-market corporate clients
• Focus on specific products across broad

spectrum from advising, structuring, and financing to co-investing across debt and equity Retail client offering

• Mortgages ranging from owner-occupied to

buy-to-let

• Focus on entrepreneurs and

small businesses

• Online savings

€10.0bn client exposure €9.2bn client exposure

Focused mid-market corporate and retail franchise with differentiated approach

6

Dutch bank operating in solid Northwestern European markets

2015 H12018 Corporate clients ~600 ~700 Leasing clients ~450 Investor clients ~800 Mortgage clients 81,000 93,000 Savings clients 331,000 324,000

Mortgages (€bn) Corporate exposure (€bn)

Increasingly diverse client franchise… …resulting in growing and transforming client exposures

• c. €1.5bn
• rigination in

H1 2018

• c. €1.9bn
• rigination in

H1 20182

9.9 10.0 8.1 9.2 18.0 19.2 2015 2017 +3% CAGR

Note: Financials for NIBC Holding 1: Financials as at H12018. 2: Including originate-to-manage.

Focus on Northwestern Europe1

€4.3bn savings €2.1bn corporate exposure 78 FTEs €9.2bn mortgages €3.9bn savings €6.3bn corporate exposure 569 FTEs €1.0bn savings 5 FTEs €1.6bn corporate exposure 34 FTEs

Excluding pre- IFRS9 fair value adjustment on mortgage loans

7

Agile organisation with an entrepreneurial culture

Making a difference at decisive moments

Professional

• In-depth sector knowledge
• Expert financial solutions
• Tailored risk and portfolio

management Entrepreneurial

• Sound, enterprising bank
• Decisive moments in

clients’ business and life

• Agile execution

Inventive

• Bespoke solutions
• Think creatively to meet

clients’ financial needs

• Structuring DNA

Our purpose Our values Version excludes movies

8

Our six strategic priorities

Continuous evolution of client franchise, expertise and propositions Further optimisation of capital structure and diversification of funding Diversification of income Ongoing investment in people, culture and innovation Focus on growth of asset portfolio in core markets Building on existing agile and effective

• rganisation

1 2 3 4 5 6

• Sustainably lowering funding costs
• Further RWA reduction
• CETI ratio 16.4%, well above mid-

term objective

• 2% growth in Corporate client assets
• 5% growth in Retail client assets, excluding OTM
• Beequip
• Receivable finance offering
• Increased OTM mandate to EUR 3.3bn
• Successfully closed EUR 450m North

Westerly V CLO

• Strategic partnerships with fintechs
• IMD program for senior staff
• IMD follow-up review of global trends

9

1. Welcome and introduction 2. Half year results 2018 3. Corporate client activities 4. Retail client activities 5. NIBC ventures 6. Wrap up

Agenda

The world around us

Positive trends in most indicators

1: Real GDP growth in percentage, y-o-y. Sources: Dutch Statistics Office (NL); German Federal Statistics Office (GE) 2: Source: Dutch Statistics Office 3: 2017 figures 10

Dutch economy: strong fundamentals3 Strong house price recovery in the Netherlands (2015 = 100)2 Solid economic growth and declining unemployment in the Netherlands and Germany1 High Dutch consumer confidence level2

(%) (%) (%) (%) 95 105 115 125 2015 2016 2017 2018 2 4 6 8 2015 2016 2017 2018 NL GDP (%) GE GDP (%) NL Unemployment (%) GE Unemployment (%)

• 10

10 20 30 2015 2016 2017 2018 Consumer confidence

• International, highly competitive economy
• GDP: EUR 738 billion; GDP per capita: #5 in the EU

But international challenges remain…..

• Interest rate environment: low for longer
• Italian budgetary issues, Turkish economic policy
• Trade tensions, and uncertainty around Brexit continues

The world around us

Positive trends in most indicators

1: Real GDP growth in percentage, y-o-y. Sources: Dutch Statistics Office (NL); German Federal Statistics Office (GE) 2: Source: Dutch Statistics Office 3: 2017 figures 11

Dutch economy: strong fundamentals3 Strong house price recovery in the Netherlands (2015 = 100)2 Solid economic growth and declining unemployment in the Netherlands and Germany1 High Dutch consumer confidence level2

(%) (%) (%) (%) 95 105 115 125 2015 2016 2017 2018 2 4 6 8 2015 2016 2017 2018 NL GDP (%) GE GDP (%) NL Unemployment (%) GE Unemployment (%)

• 10

10 20 30 2015 2016 2017 2018 Consumer confidence

• International, highly competitive economy
• GDP: EUR 738 billion; GDP per capita: #5 in the EU

But international challenges remain…..

• Interest rate environment: low for longer
• Italian budgetary issues, Turkish economic policy
• Trade tensions, and uncertainty around Brexit continues

Share price performance

NIBC share price remained under pressure

Peers Pre Easter IPOs

Share price performance versus peers Since NIBC IPO, rebased to the IPO price of € 8.75

€ Shares Traded (‘000)

Source Bloomberg as of 14 September 2018

500 1,000 1,500 2,000 6.75 7.25 7.75 8.25 8.75 9.25 9.75 23-Mar-18 23-Apr-18 23-May-18 23-Jun-18 23-Jul-18 23-Aug-18 NIBC Volume (RHS) NIBC (LHS) AEX Index (LHS) Stoxx Banks (LHS) IPO Price (LHS)

• c. 5K
• 7%

3%

• 5%
• 15%

55% 40% 35% 21%

• 27%
• 45%
• 30%
• 15%

0% 15% 30% 45% 60% NIBC ABN KBC ING Sensirion Elkem Energean B&S DWS Performance since NIBC IPO

% Change

NIBC Key statistics

12

• NIBC share is covered by six analysts, three are with Dutch

institutions, and three are with international banks

• 5 analysts initiated coverage at IPO; one started following

us since beginning of April

• Recently we held a broader analyst briefing in London
• H1 2018 results were above consensus

13 13

Analyst coverage

NIBC is building its analyst coverage

Overview of analyst recommendations

Recommendation Target price

Date

Morgan Stanley Buy 10.80 €

31-Aug-18

Deutsche Bank Buy 11.00 €

31-Aug-18

ABN AMRO Buy 9.30 €

11-Sep-18

ING Buy 10.00 €

30-Aug-18

Citigroup Buy 10.00 €

29-Aug-18

Kempen Hold 8.50 €

29-Aug-18

*Animated GIF in live presentation

• Operating income up 18% to EUR 254 million from EUR 216 million in

H1 2017

• Cost-to-income ratio improved to 47%, including EUR 8 million of costs

related to the IPO

• Impairments 34% lower at EUR 21 million, compared to EUR 32 million

in H1 2017

• Strong net profit H1 2018 of EUR 84 million (+40%) compared to EUR

60 million in the first half of last year

• Return on Equity (ROE) improved to 10.5%, in line with our medium

term objectives

• Fully loaded CET 1 ratio increased from 16.1% on 1 Jan 2018 (post-IFRS

9) to 16.4% per H1 2018

• Interim dividend increased by 19% to EUR 0.25 per share (H1 2017

EUR 0.21)

14 14

Moving Ahead

Results for the first half of 2018: delivering as promised

Comments

Metrics Medium-term

• bjectives1

Return on Equity

(Holding)

Cost-to-income

(Holding)

CET1

(Holding)

Rating

(Bank)

10 - 12% <45% >14% BBB+ Dividend pay-out

(Holding)

>50% H1 2018 10.5% 47% 16.4% BBB 44%

Note: Financials for NIBC Holding as of H1 2018, unless otherwise stated. All comparison figures of H1 2017 exclude the results from Vijlma in H1 2017.

• 1. Medium-term objectives as announced on 8 February 2018 at the publication of FY2017 results, except for cost-to-income ratio (Bank)

15 15

Income statement

Continued improvement of profitability in H1 2018

Comments

Note: Financials for NIBC Holding, 2017 figures exclude Vijlma 1) The difference between ‘Profit after tax attributable to shareholders of the company’ and ‘Profit after tax’ concerns the portion of profit after tax attributable to investors in our AT1 transaction

• The profitability improvement in H1 2018 follows the substantial

improvement made in 2017

• The development of net profit in H1 2018 is mainly driven by an

increase of net interest income and improved cost of risk, whilst managing operating expenses

• Operating expenses include EUR 8 million IPO costs

IFRS 9 H1 2018 IAS 39 H1 2017 IAS 39 H1 2017

• ex. Vijlma

H1 2018 vs. H1 2017 ex. Vijlma (%) Net interest income 207 167 169 22% Net fee and commission income 21 20 20 5% Investment income 21 27 27

• 22%

Other income 5 68

• Operating income

254 282 216 18% Personnel expenses 53 55 55

• 4%

Other operating expenses 55 41 39 41% Depreciation and amortisation 3 3 3 0% Regulatory charges 9 9 9 0% Operating expenses 120 108 106 13% Net operating income 134 174 110 22% Credit loss expense / (recovery) 21 33 32

• 34%

Tax 23 34 18 28% Profit after tax 90 107 60 50% Profit attributable to non-controlling shareholders 6 - - Profit after tax attributable to shareholders of the company 84 107 60 40%

70 104 60 160 84

• 47

53

• 4.2%

6.0% 6.7% 9.0% 10.5% 2015 2016 H1 2017 2017 H1 2018 Profit after tax Profit Vijlma Return on equity 1)

254 120 84

16 16

Growth on both Corporate client and Retail client offering

Strong asset growth in targeted sectors, mortgage origination almost doubled

Corporate loan origination Corporate loan portfolio

2.9 3.1 3.1 1.5 2015 2016 2017 H1 2018

In EUR bn

7.8 7.9 7.4 7.4 1.2 1.3 1.6 1.7 9.0 9.2 9.0 9.1 2015 2016 2017 H1 2018 Drawn Undrawn

Mortgage origination Mortgage loan portfolio

1.3 0.8 0.9 0.9 0.1 0.3 0.3 0.1 0.7 0.9 1.4 1.1 1.9 1.9 2015 2016 2017 H1 2018 Owner occupied BTL OTM

In EUR bn

8.0 8.0 8.2 8.6 0.1 0.4 0.6 0.6 0.5 0.4 0.3 0.7 1.6 8.6 8.8 9.8 10.8 2015 2016 2017 H1 2018 Owner occupied Buy-to-let Fair value adjustment OTM

What is important when looking at a bank….

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Emotions and public opinions… Technological developments… Many aspects and different dynamics…. Data integrity….

44% 6% 21% 20% 9%

• Built successful curves in:

– Wholesale senior unsecured – Secured curves e.g. conditional pass-through covered bond (CPTCB) and participation in (T)LTRO

• Softened redemption scheme funding
• €200m AT1 issued in September 2017, benchmark covered

bond issued in January 2018, benchmark senior unsecured issuance in April 2018

Improved rating outlook and decreasing cost of funding

18

1.22% 1.01% 0.87% 0.81% 2015 2016 2017 H1 2018

Note: Financials for NIBC Bank. 1: Liabilities excluding derivatives and “other liabilities”.

Normalised funding profile: ready for the future Positive rating developments Solid and diversified funding base Reducing cost of funding

Also received unsolicited rating by Moody’s of Baa1

2014 2016 2015 2013 BBB- Positive BBB- Positive BBB- Stable BBB- Stable BBB- Stable BBB- Stable BBB- Stable BBB- Negative BBB Stable BBB Stable 2017 Retail funding ESF Secured (wholesale) funding Unsecured (wholesale) funding Equity

Total funding1 (H1 2018) €20.9bn

19 19

Operating expenses

Agile organisation with continuous focus on operational efficiency

Cost to income ratio

Note: Financials for NIBC Holding

Operating expenses by nature

55% 49% 48% 47% 2015 2016 2017 H1 2018 Personnel expenses 46% Other operating expenses 43% Regulatory Charges 9% D&A 2%

• The solvency ratios at 30 June 2018 are comfortably above the

required SREP-levels set by DNB for NIBC in July 2018

• The CET1 ratio of 16.4% is well above the medium term objective of

14%, enabling:

• the pay-out of solid dividends
• future growth of our business
• NIBC to be well prepared for Basel IV
• The proposed interim dividend pay-out of EUR 0.25 per share:
• reflects a pay-out of EUR 37 million or 44%
• reflects an increase of 19% compared to EUR 0.21 interim

dividend per share at H1 2017

• is well on track to reach at least 50% dividend pay-out by the end
• f the year

25 31 96 37 25% 29% 45% 44% 2016 H1 2017 2017 H1 2018 Dividend (€m) Pay-out ratio (%)

20 20

Capital and dividend

Solvency ratios provide strong base to pay dividends

Solvency ratios (fully loaded) Comments

Note: Financials for NIBC Holding 1) As NIBC's commitment to acquire a stake of 5% for an amount of EUR 56 million in HSH Nordbank is irrevocable, the committed amount is included in the calculation of the RWAs and therefore of the CET 1 ratio at 30 June 2018. The impact on the CET 1 ratio is -0.4%. 2) H1 2018 figures based on Interim dividend pay-out proposal.

13.9% 15.1% 19.3% 16.1% 16.4% 1.1% 1.3% 1.3% 2.8% 2.9% 1.8% 2.0% 2.0% 16.7% 18.0% 22.2% 19.4% 19.7% 2015 2016 2017 IAS 39 1 Jan 2018 IFRS 9 H1 2018 CET 1 ratio (%) Additional Tier 1 (%) Tier 2 (%)

Earnings per share and dividend per share2)

0.71 0.82 1.46 1.15 0.17 0.21 0.66 0.25 2016 H1 2017 2017 H1 2018 Earnings per share - annualised (€) Dividend per share (€)

Impact IFRS 9 on solvency The reduction of capital following the transition to IFRS 9 on 1 January 2018 led to a reduction of NIBC's fully loaded solvency ratios by 3.2%-points

1)

ROE and net profit €m Efficient operating model supporting:

• return on equity

improvement

• future growth

70 84 2015 H1 2018

Cost of funding

• Strong and

diverse funding profile

• Benefiting from

current environ- ment to increase maturity of whole sale funding

Note: Financials for NIBC Holding excluding Vijlma in 2017. 1: H1 2018 annualised. CAGR based on H1 2017 annualised and assuming 3 year period. Spreads above base rate. 2: Credit loss expense and other credit losses / average total RWA. 21

CET1 ratio Holding

• Strong capital

position after full absorption of IFRS 9, supports:

• dividend pay-outs
• future transition

to Basel IV Total net interest income €m

• Improving net

interest margin Total operating income €m

• Fuelled by a

diverse set of income drivers Cost/income

• Operating

leverage

• Flexibility to in-

vest in innovation and product development Cost of risk2

• Steering to lower

risk portfolios

• Active manage-

ment of RWA’s

• Risk DNA and

employee accountability

Increase in net interest income Improving cost

• f funding

Growing total income Lean

• rganisation

Prudent risk management Strong capital position Significant improvement in earnings and ROE

= + + + + +

• 15%

1 1

13%

CAGR1

15%

CAGR1 H1 2018 annualised

1.22% 0.81% 2015 H1 2018 274 207 2015 H1 2018 354 254 2015 H1 2018 55% 47% 2015 H1 2018 0.73% 0.55% 2015 H1 2018 13.9% 16.4% 2015 H1 2018 34%

CAGR1

Continued improvement of earnings and ROE…

… alongside a strong capital base

4.2% 10.5%

Questions?

23

1. Welcome and introduction 2. Half year results 2018 3. Corporate client activities 4. Retail client activities 5. NIBC ventures 6. Wrap up

Agenda

24

Entrepreneurial corporate offering servicing clients at decisive moments

Debt

• Asset and project finance
• Leveraged finance
• Receivables finance
• Corporate lending

Mezzanine and Equity

• Mezzanine solutions
• Equity solutions
• Project equity
• Fund solutions

Corporate Finance and Capital Markets

• M&A
• ECM & DCM
• Equity research
• Private placements
• Debt & equity advisory
• Sales and trading (mainly fixed income)

Deep product knowledge in chosen sectors

Infrastructure & Renewables (I&R) Shipping & Intermodal (S&I) Industries & Manufacturing (I&M) Telecom, Media, Technology & Services (TMT&S) Offshore Energy (OE) Food, Agri, Retail & Health (FAR&H) Commercial Real Estate (CRE)

Overview Client cases Client Franchise

Client focused approach leading to repeat business and growing client base

25

Institutional Investor Clients Asset Based Financing Clients Private Equity Clients Corporate Clients Debt, equity & advisory High Net Worth Entrepreneurs & Family Offices

25

66% Client retentions & renewals1 34% New business with new clients2

1: Comprised of (i) 36% retention – new deals with existing clients and (ii) 30% renewals – extension of existing deals based on data as of FY 2017. 2: Business originated with new clients as of FY 2017.

Repeat business and growing client base

Corporate client

• ffering
• c. 1,500 clients

Overview Client cases Client franchise

Management buy-out of Fletcher Hotels

• Seller originally opted for an auction process
• NIBC Mezzanine & Equity Partners (MEP) helped management of

Fletcher Hotels to buy the company that they had helped build

• NIBC Mezzanine & Equity Partners joined as minority shareholder

and management obtained control in Fletcher

• With the chosen structure, Fletcher can further expand its buy &

build strategy

• Collaboration between MEP and our Commercial Real Estate team

made this transaction a huge success

• The management buy-out of Fletcher shows the THINK YES attitude

which helps entrepreneurs to realise their goals and dreams

Buy side M&A advice to Goldman Sachs Private Equity on the investment in Caldic

• M&A had a strategic dialogue with Goldman Sachs Private Equity on

several buy-out opportunities in the Netherlands

• NIBC FAR&H team has built a relationship with Caldic and NIBC

advised the purchaser of Caldic’s Belgian herbs and spices business in 2015

• Bilateral discussions resulted in a Heads of Agreement in 2017
• Franchise defining transaction: landmark transaction for NIBC’s M&A

and Debt advisory teams, demonstrating close collaboration among the M&A, FAR&H, LF and Distribution teams

• NIBC Leveraged Finance co-underwriting of the financing meant one-

stop shop for our client

26

Creating value by bringing it all together

Overview Client cases Client Franchise

Version excludes movies

27

NIBC Corporate client cases in various sectors

Anthony Veder

GREEN DEAL FOR PIONEERING GAS TANKER SPECIALIST The company has turned to NIBC to finance two of its existing carriers, as well as the rpe- delivery of an innovative new LNG bunkering vessel named ‘Energice’. The revolutionary new tanker, which was recently commissioned for construction in Germany, will use the boil-off from its own cargo to fuel its propulsion system, thereby significantly reducing its emissions

Van Dijck Groenteproducties

SUPPORTING GROWTH AMBITIONS OF TOP VEGETABLE GROWER For Van Dijck Groenteproducties (VDG), NIBC provided an additional senior facility to expand its greenhouse by 35 hectares, one year ahead

• f its original growth plan.

“NIBC fully understood our needs and ambitions and acted very fast and professionally”.

• Peter van Dijck, owner VDG

Ark Data

NIBC ENABLING ARK DATA CENTRES GROWTH “We are companies that understand one another and have a similar ethos of doing business. I think that is why we work well together”.

• Huw Owen, CEO, ARK Data Centres

Overview Client cases Client Franchise

Version excludes movies

Questions?

29

1. Welcome and introduction 2. Half year results 2018 3. Corporate client activities 4. Retail client activities 5. NIBC ventures 6. Wrap up

Agenda

30

Retail client offering in a nutshell

1: NIBC Direct Customer Survey score. 2: Excluding German mortgages which are designated as an exit portfolio (€38m). 3: Excluding German investments (brokerage business) which are supportive to savings.

Business model

• Strong franchise across The Netherlands, Germany and Belgium

with close to 400,000 clients

• Product range currently consists of mortgages and savings

 Mortgages in The Netherlands via a broker model  Savings via a direct model

• No current accounts offered and no branch network
• Non-value adding activities are outsourced resulting in an

efficient and scalable setup with only c. 80 employees

Close to 400,000 clients across 3 countries

€4.2bn Savings 107,000 3 clients since 2009 €10.8bn client assets2 92,000 clients since 1995 €4.0bn savings 163,000 clients since 2008 €1.0bn savings 33,500 clients since 2011 7.9 Customer satisfaction in 20171

Website

• f the year

2015 & 2016

Award by the Dutch Marketing Authority in category Banking and Investments

Overview Mortgages Savings

31

Well established savings platform

• Launched in 2008 to diversify funding sources within NIBC
• NIBC Direct label has been created to attract retail funding in a

simple, transparent and fair way

• Transparent product offering with on-demand and term deposits

ranging from 3 months up to 10 years

• Efficient and flexible operating model

 Direct online model  Outsourcing of standard activities

• Strategic direction

 Diversification over 3 different countries with product differentiation in each country  Stabilisation of volumes managed vis-à-vis costs  Improve costs of funds by increasing share of on-demand and introducing new product / market combinations

• 1. Portfolio statistics as of H1 2018. Notional amount.

Portfolio statistics Saving volume per country1 Business model and strategy

62% 50% 91% 59% 38% 50% 9% 41% Netherlands Germany Belgium Total On-demand Term deposits Average savings balance €28k €35k €24k

4.0 4.2 1.0

NL (€bn) DE (€bn) BE (€bn)

Overview Mortgages Savings

Total: € 9.2bn

Version excludes movies

32

Strategy resulting in transformation of the overall mortgage portfolio

Evolution of mortgages origination1… ... Resulting in transformation of mortgage portfolio1

7.4 7.9 8.0 8.2 8.5 0.1 0.4 0.6 0.6 0.7 1.6 7.4 8.0 8.3 9.5 10.8 2014 2015 2016 2017 H1 2018 Originate-to- manage (€bn) Buy-to-let (€bn) Owner-occupied (€bn)

• Mortgage business consists of:

– Owner-occupied (own use) – Buy-to-Let (investment) – Originate-to-Manage (external investor)

• Margin over volume by focusing on higher yielding segments where

NIBC can make a difference

• Retail client offering transformed from solely own balance sheet

lending to a dual strategy by including originate-to-manage in order to: – Enhance income diversification by adding the fee generating

• riginate-to-manage business line

– Create flexible origination model which enables on balance sheet origination and originate-to-manage origination depending

• n market circumstances

– Creating a one-stop shop for brokers by supplying a full product range from niche products to price competitive long interest fixed terms

1.0 1.2 0.8 0.9 0.9 0.1 0.3 0.3 0.1 0.7 0.9 1.0 1.3 1.1 1.9 1.9 2014 2015 2016 2017 H1 2018 Originate-to- manage (€bn) Buy-to-let (€bn) Owner-occupied (€bn)

Transformation

1: Notional amount as of H1 2018, defined as outstanding net loan derived from NIBC Bank on- and off-balance sheet, Agio, arrears and impairments. Netted with

• utstanding savings amount and building deposit.

Overview Mortgages Savings

Version excludes movies

Questions?

34

1. Welcome and introduction 2. Half year results 2018 3. Corporate client activities 4. Retail client activities 5. NIBC ventures 6. Wrap up

Agenda

Developing future revenue generators

• Buy-to-let mortgages (2015)
• Receivables Financing offering
• Mezzanine & Equity offering

New Products

Leveraging platform and generating fees

• Introduction of “originate-to-

manage” offering with international insurer (2016) with increased mandate to € 3.3bn (2018)

• Agreement with EIB

guaranteeing loans up to €500m (2017)

• Establishment Rotterdam Port

Fund (2016)

• Dutch Growth facility (2013)

Partnering

Strengthening footprint in Germany

• NIBC Bank Deutschland AG

(2014) Broadening product offering

• SNS Securities (2016) – capital

markets offering focused on small and mid-cap corporates

• €0.2bn acquisition of mortgage

portfolio (Q3 2017)

Acquisitions

35

NIBC actively anticipates trends by adapting our current offering to the future

+ + +

Facilitating and investing in FinTech businesses:

• Netherlands:

… and strategic partnerships:

• Germany:
• UK:

Innovation

Majority stake (founding partner) (2015) (2017) (2017)

36 36

The Future of Banking… What are ‘Fintechs’?

Movie source: Dutch Kamer van Koophandel (KvK)

Version excludes movies

37

Other examples

Version excludes movies

Questions?

39

1. Welcome and introduction 2. Half year results 2018 3. Corporate client activities 4. Retail client activities 5. NIBC ventures 6. Wrap up

Agenda

40

Our six strategic priorities

Continuous evolution of client franchise, expertise and propositions Further optimisation of capital structure and diversification of funding Diversification of income Ongoing investment in people, culture and innovation Focus on growth of asset portfolio in core markets Building on existing agile and effective

• rganisation

1 2 3 4 5 6

• Sustainably lowering funding costs
• Further RWA reduction
• CETI ratio 16.4%, well above mid-

term objective

• 2% growth in Corporate client assets
• 5% growth in Retail client assets, excluding OTM
• Beequip
• Receivable finance offering
• Increased OTM mandate to EUR 3.3bn
• Successfully closed EUR 450m North

Westerly V CLO

• Strategic partnerships with fintechs
• IMD program for senior staff
• IMD follow-up review of global trends

41 41

Moving ahead – Well positioned towards medium-term objectives

41

Metrics Medium-term

• bjectives1

Return on Equity

(Holding)

Cost-to-income

(Holding)

CET1

(Holding)

Rating

(Bank)

10 - 12% <45% >14% BBB+ Dividend pay-out

(Holding)

>50% H1 2018 10.5% 47% 16.4% BBB 44%

Thank you