Building an Asian Powerhouse: Strengthening Our Home Base

June 2001 Disclaimer and Responsibility Statement

I The Directors of DBS (including any who may have delegated detailed supervision of this presentation) have taken all reasonable care to ensure that the facts and estimates in this presentation are fair and accurate and no material facts are omitted from this presentation

I Where information contained in this presentation has been derived from publicly available sources, including forecasts of the analyst community, the sole responsibility of the Directors of DBS has been to ensure through reasonable enquiries that such information is accurately extracted from such sources or, as the case may be, reflected or reproduced in this presentation

I Neither Goldman Sachs, nor any of its affiliates or staff vouch for the accuracy of the information contained herein and nothing in this document should be construed as a warranty or representation in regard to the assumptions, facts, estimates or conclusions contained herein

I You would appreciate that DBS is subject to various laws, rules and regulations as a listed company and in the context of the current general offer, which may restrict its ability to provide certain information or to respond to certain queries

1 Building Even Greater Strength: Summary of Offer

I 0.61 DBS shares for every OUB share Consideration I S$1.14 in cash for every OUB share

I 36.6% over 60 day average

Premium I 11.1% over close of market on 21st June, 2001 price

I Acceptance greater than 50% Conditions I Regulatory and shareholder approvals

2 Delivering Value Quickly

Offer Announcement 22 June 2001

Notice of Within 14 days of Offer and Part B Offer announcement Statement

Between 14 and 28 Launch of Offer days after offer announcement

Offer Period At least 21 days

3 Building an Asian Powerhouse: Strengthening Our Home Base

Transaction Build Even Greater Strength Summary

Strategic Complete Domestic Leadership and Extend into Rationale New Markets

Financial Enhance Shareholder Value Through Growth Rationale Opportunities and Synergies

Superior Manage for Growth and Value Equity Story

4 Continuing History of Growth

Total Assets Acquisition Track Record of DBS

(S$ bn) 1997 I Thai Danu Bank 200 194.2

180 1998 I Kwong On Bank,

160 I POSBank, Singapore 147.6 140

1999 I Bank of Philippine Islands 120 (strategic stake)

100

I Vickers Ballas, Singapore 80 2001

60 I , Hong Kong 106.5 111.2 100.0 40 I Joint venture with TD Waterhouse 66.0 55.7 for regional online financial 49.2 20 services alliance

0 I Offer for OUB 1995 1996 1997 1998 1999 2000 (a)(b)

(a) ….. Proforma for Dao Heng Bank 5 (b) ….. Proforma for OUB Putting the Strategy Together Positioning for the Future

n Regionalization n Growth n Top 5 in Hong Kong

DaoDaoHeng HengBank Bank

Integrated Wealth VickersVickers BallasBallas n Cost Synergies Management OUBOUB n Scale Strategy TDTD WaterhouseWaterhouse n Market Share

HybridHybrid TierTier II SubordinatedSubordinated DebtDebt PreferencePreference SharesShares

Optimal Capital Structure 6 Compelling Strategic Rationale

#1 Consolidate domestic franchise

#2 Gain presence in Malaysia and enhance regional footprint

#3 Broaden shareholder ownership and increase liquidity

7 A Comparative Snapshot

DBS (a) OUB (in S$ millions) Total Assets 147,555 46,603

Total Advances 66,570 28,101

Total Customer Deposits 105,433 26,899

Shareholders’ Funds 10,495 5,161

Operating expenses 1,626 486

Profit Attributable to Shareholders 1,824 545

Branches(b) 115(c) 33

ATMs(b) 930(c) 140

Employees 10,800(c) 3,100

Source: Company Reports for FY 2000 (a) DBS financials pro forma for acquisition of Dao Heng Bank, ignoring the effects of financing, synergies and any potential discrepancies in accounting standards (b) Only Singapore 8 (c) Excluding Dao Heng Strengthening Retail Banking Market Leadership in Singapore

Domestic Assets(a) Domestic Gross Customer Loans(a)

#1 31.0% #1 32.8% DBS S$131 bn DBS S$63 bn 21.2% 21.3%

OUB OUB 9.7% 11.5% Others Others 69.1% 67.2%

Domestic Customer Deposits(a)(b) Credit Cards(c)

25.3% 43.1% DBS #1 #1 600,000 DBS S$89 bn 14.8% 31.6% Cards OUB 10.5% Others 56.9% Others OUB 74.7% 11.5%

Source: MAS, Company Reports for FY 2000 and GS Equity Research (a) System wide market share of domestic assets, domestic gross customer loans and domestic customer deposits is based on share of respective banks of the aggregate financials of the commercial banks, merchant banks and finance companies in Singapore (includes foreign banks) (b) No geographical breakdown of customer deposits available for the local banks. Domestic customer deposits derived based on the proportion of domestic assets and overseas assets of these banks 9 (c) System wide market share for credit card is based on the number of cards issued by respective banks as a % of total issued credit cards in Singapore (includes foreign banks) Extending Investment Banking Leadership in Singapore

IPO(a) Equity Underwriting(a)

#1 #1 DBS 35.9% DBS Others Others 37.2% 40.7% 59.3% 41.6% 58.4% S$2,255 mm S$3,380 mm

OUB OUB 21.2% 23.4%

Debt Underwriting(a)

#1 39.3% S$6,587 mm DBS 33.7%

Others 60.7%

OUB 5.6%

Source: Bondware, 1998 – 2000 10 (a) Market share is based on share of respective banks of the total capital issuance in Singapore (including foreign banks) Widening the Regional Footprint

DBS + Dao Heng Bank(a) DBS + Dao Heng Bank + OUB

Malaysia 3.5% Malaysia Others Thailand Others 0.8% 5.4% 2.8% Thailand 6.8% 3.9%

Hong Kong Singapore 31.4% 58.4% Hong Kong Singapore 23.9% 63.1%

Total Loans: S$69,980 mm Total Loans: S$99,721 mm

11 (a) Assuming S$1 = HK$4.33 – Proforma 2000 Widening the Regional Footprint

(US$ bn)

226

124 124 121 111

90 86

57

37 33 26

HSBC(a) Kookmin NAB (a) CBA (a) DBS Westpac (a) ANZ (a) Stanchart (a) UOB OCBC OUB + H&CB + Dao Heng + OUB UK Korea Australia Australia Singapore Australia Australia UK Singapore Singapore Singapore

(a) Asia Pacific assets only 12 Source: Annual reports 2000, Interim Reports 2000 Note: Excludes Chinese banks Broadening Shareholder Ownership and Increasing Liquidity

Share Ownership in DBS Market Implications

Pre-Transaction Liquidity

LTM Daily Trading Value(a)

DBS S$47.9 mm 37% Government 63% OUB S$18.5 mm Other Shareholders

Post Transaction Index Implications

DBS OUB

25% MSCI üû Government 75% DBS50 üû Other Shareholders STI Index üü

Note: Assuming all OUB shares tendered; Fully diluted 13 (a) Source: Bloomberg Building an Asian Powerhouse: Strengthening Our Home Base

Transaction Build Even Greater Strength Summary

Strategic Complete Domestic Leadership and Extend into Rationale New Markets

Financial Enhance Shareholder Value Through Growth Rationale Opportunities and Synergies

Superior Equity Story Manage for Growth and Value

14 Compelling Financial Rationale

#1I Enhanced operating measures

#2I Attractive synergy potential

#3I Enhanced balance sheet

#4I Bolstered Tier I and Total Capital Ratios

#5I Disciplined approach to value maximisation of non-core assets

15 Enhanced Operating Measures Dec 2000

Dao Heng Combined DBS OUB Bank Entity Net Interest Margin 2.02% 2.51% 2.34%

Cost Income Ratio 42.5% 40.2% 38.1%

Loan Deposit Ratio 63.2% 62.9% 104.5%

The pro forma consolidated financial information contained herein is provided for illustrative purposes only. Such information does not purport to represent what the actual results of operations or financial position of DBS or the combined entity would have been had the acquisition been completed as of the relevant date. Nor is such information necessarily indicative of the future results of operations or financial position of DBS or the combined entity. 16 Important Realizable Synergies

All Shareholders will Benefit from Sustainable Synergies of Transaction

I Eliminate duplicative expenses

I Reconfigure branch network

I Rationalize IT systems

I Consolidate back office operations

I Improve productivity

I Scale of e-business investment

Note: Full synergies expected to be realized within two years after the completion of the offer 17 Synergies Expected to be in Line with Other In-Market Mergers

Announced Synergies % of Acquiror Target Country Ann. Date Target Operating Cost Base

Barclays Woolwich UK Aug 2000 37%

Santander BCH Spain Jan 1999 36%

Fortis Generale de Banque Belgium Jun 1998 23%

Credito Italiano Unicredito Italy Apr 1998 29%

UBS SBC Switzerland Dec 1997 49%

Range of in-market mergers 23% - 49%

Source: Company filings, press releases and investor presentations and Securities Data Corporation 18 Note: Announced synergies are not necessarily indicative of actual synergies achieved Bolstering Capital Ratios

Agency Rating Comment Standard & Poors I A+ Senior ratings reaffirmed “The acquisition of Overseas Union Bank will solidify DBS’ position as the market I Removed from Creditwatch leader in Singapore, controlling about Negative one-third of the domestic banking assets…”

“…strong likelihood that additional equity of appropriate quality and quantity will be injected into DBS Bank, aside from the further equity that may be issued under the proposed OUB acquisition.” That would allay the rating company’s concerns about the bank’s capital structure.

Moody’s I Aa2 Senior ratings reaffirmed “Like most in-market combinations, the acquisition of OUB would be beneficial”

“Moody’s is positive about the long-term synergies and fortification of DBS Bank’s franchise that would result from a successful offer for OUB…”

“Furthermore, the offer which is comprised 88% of shares, will bring DBS Group Holdings a timely infusion of common equity”

19 Building an Asian Powerhouse: Strengthening Our Home Base

Transaction Build Even Greater Strength Summary

Strategic Complete Domestic Leadership and Extend into Rationale New Markets

Financial Enhance Shareholder Value Through Growth Rationale Opportunities and Synergies

Superior Manage for Growth and Value Equity Story

20 Managing for Growth and Value

DBS OUB

I Tier 2

Capital I Hybrid Tier 1 û Management I Tier 1 Preference Shares issue

I Hong Kong Regional I Philippines Diversification û Initiatives I Thailand

I DBS Land

Non-Core I Singapore Petroleum û Asset Divestitures I DBS Tampines Centre

21 Applying Disciplined Approach to Value Maximization of Non-Core Assets

I We believe a number of OUB’s assets to be non-core and will carefully examine their value to DBS. These include:

N OUE (Market Capitalization(a): S$1.6 billion)

N OUL (Private)

N Hotel properties (Private)

N OUB Insurance (Private)

22 (a) As at June 22, 2001. Source: Bloomberg Managing for Scale Long Term Asset Growth

1996 Asset Growth 2000

DBS S$55.7 bn S$111.2 bn 100%

DBS + S$55.7 bn Dao Heng S$146.3 bn 163%

OCBC S$51.5 bn S$59.7 bn 16%

S$33.6 bn OUB S$46.6 bn 39%

UOB S$45.8 bn S$66.3 bn 45%

23 Source: Company reports Managing for Returns Long Term Return to Shareholders

1996 ROE Growth 2000

DBS 10.3% 12.9% 25%

OUB 10.1% 9% 11.0%

UOB 15.6% (10)% 14.1%

OCBC 12.8% 10.7% (17)%

24 Source: Company reports Restructuring for Value DBS Thai Danu Bank

1Q 1999 1Q 2001 Change %

NPL Ratio 49.0 % 7.4 % (85) %

Branches 95 61 (36) %

Personnel 3,450 1,850 (46) %

Operating Costs 676.9 mm Baht 515.5 mm Baht (24) %

Net Income Margin 0.9 % 2.6 % 189 %

Net Income (347.3) mm Baht 33.0 mm Baht NM

25 Source: DBS Bank Growing for Value DBS Kwong On Bank

Dec 1999(a) Dec 2000 Change %

Net Interest Margin 2.79 % 2.95 % 6 %

Customer Loans S$3.6 bn S$4.6 bn 26 %

Customer Deposits S$4.8 bn S$5.7 bn 18 %

NPL Ratio 15.3 % 5.6 % (63) %

Net Profit after Minority S$60.2 mm S$73.7 mm 22 %

26 (a) Consolidated from May 1999 Source: DBS Integrating for Value DBS and POSBank

1998 2000 Change

Branches 173 115 (34) %

Deposits S$65.8 bn S$69.1 bn 5 %

Operating Profits(a) S$1.1 bn S$1.6 bn 45 %

27 Source: DBS prospectus – DBS Bank data 1998 vs. 2000 (a) DBS Bank solo earnings. POSB consolidated from May I 1998. Excludes one time gains form sale of DBS Land and other units Commitment to Value

Philippe Paillart CEO

Jackson Tai President and COO

OUB Dao Heng Bank Integration Team Integration Team

Randolph Sullivan Chong Kie Cheong (Dao Heng Bank) Finance Director Managing Director & Alternate CEO of Dao Heng Edmund Koh Bank Managing Director Chan Tak Kin Managing Director Oon Kum Loon Managing Director Rajan Raju Managing Director Greg Seow Managing Director

28 Deep Integration Teams: Dao Heng

Name Experience (Years)

William Hon 23 Consumer and Ted Ling 27 Enterprise Banking TK Chan 29 R Strickland 28

Corporate, Corporate, S F Wong Investment Banking 26 and Treasury PS Tam 22

Rajan Raju 11 Jennifer Lynn 16 Finance, IT and Infrastructure David Faulkner 26 Kendy Wong 20

Randy Sullivan, CEO Designate 28 Michael Chan 25 Dao Heng Personnel Sunny Cheung 26 David Tsui 34 Steve Wong 26

Total 367 Years 29 Deep Integration Teams: OUB

Name Experience (Years)

Greg Seow 22

Consumer and Edmund Koh 17 Enterprise Hong Tuck Kun 26 Banking Craig Townend 33

Corporate, Oon Kum Loon 27 Investment Seck Wai Kwong 21 Banking and Treasury Wong Ban Suan 21

Chong Kie Cheong 30

Finance, IT and Tom Vainius 21 Infrastructure Infrastructure Chua Bee Choo 26

Andy Chan 21

Total 265 Years 30 Best Positioned to Create Value

I Unparalleled record in Singapore

I Experienced management team

I Sophisticated user of capital management

I Existing infrastructure

I Investments in technology

I Renewed focus on cost management

31 Building an Asian Powerhouse: Strengthening Our Home Base

Transaction Build Even Greater Strength Summary

Strategic Complete Domestic Leadership and Extend into Rationale New Markets

Financial Enhance Shareholder Value Through Growth Rationale Opportunities and Synergies

Superior Manage for Growth and Value Equity Story

32