ING Group ING Is Delivering on Its Priorities While Remaining Customer Focused

ING Group ING is delivering on its priorities while remaining customer focused

Macquarie Financials Conference

Patrick Flynn Chief Financial Officer

Zurich – 22 November 2011 www.ing.com

ING is delivering on its priorities while remaining customer focused

Separation and divestment process on track Underlying net profit ING Group up 43.3% versus 9M 2010 • ING is executing a fundamental turn-around of its business to create strong, separate banking and insurance companies • In our preparation for 2 Insurance IPOs, important steps have been made to realign the legal structure 4,276 and governance 2,984 • Insurance businesses are making good progress on 818 performance improvement initiatives 9M2009 9M2010 9M2011

ING Bank is well positioned for the future ING Bank’s Core Tier 1 ratio was 9.6% and meets EBA Capital target • ING Bank continues to show solid results despite impairments on Greek government bonds 0.1%

• ING Bank has reduced the balance sheet while -0.3% growing customer lending 9.6% 9.4%

• ING Bank has a strong funding structure and 30 Sep REIM Market 30 Sep modest long-term funding needs 2011 RWA 2011 • Further upside from balance sheet integration and reported Pro- One Bank initiatives forma

Macquarie Conference - 22 November 2011 2 Separation and divestment process on track

Macquarie Conference - 22 November 2011 3 ING is executing a fundamental turn-around of its business to create strong, separate banking and insurance companies

Delivering on EU restructuring Separation and preparation for the base case of 2 IPOs Action • Sell ING Direct USA  Announced • Bank and Insurance/IM operationally split at the end of 2010 • Sell Insurance Latin  Announced America* • Operational disentanglement of US and • Insurance US Base case IPO EurAsia Insurance/IM operations expected to be finalised at the end of this year • Insurance EurAsia Base case IPO • Preparation for the base case of 2 IPOs is • Divesting Operationally making progress WestlandUtrecht split; exploring Bank further options

Further streamlining in 2011 Separation and preparation costs 2011 at the lower end of our expectations Action • Sell ING Real Estate  Completed • Separation and IPO preparation costs were Investment EUR 55 mln in 3Q11 and EUR 116 mln Management (REIM) September YTD after-tax • Sell ING Car Lease  Completed • It is anticipated that these costs will remain within the previously announced amount of EUR 250 million after tax

* ING’s Latin American pension, life insurance and investment management operations. Sul America is not included in this transaction

Macquarie Conference - 22 November 2011 4 In our preparation for 2 Insurance IPOs, important steps have been made to realign the legal structure and governance

Simplified legal structure • Regulatory approvals are in progress to create a separate holding company under ING ING Groep N.V. Verzekeringen N.V. for our Insurance EurAsia businesses Jan Hommen • Management structure aligned per Patrick Flynn 3 November 2011 Wilfred Nagel* • These represent ‘no regrets’ steps which in no way limit strategic flexibility on execution ING Bank N.V. ING Verzekeringen N.V. • New legal structure maintains flexibility with respect to timing and order of the planned IPOs • Change in legal structure will allow IPO Entity IPO Entity ING to optimise the debt structure ING Insurance EurAsia ING America Insurance of the two IPO entities Holdings Inc (AIH) • Ultimately, ING Verzekeringen N.V. will become a legacy entity and will Jan Hommen Jan Hommen be wound down over time Patrick Flynn Patrick Flynn Wilfred Nagel Wilfred Nagel • This process will be carefully Lard Friese Rod Martin managed, including managing Matt Rider Alain Karaoglan change of control provisions in Gilbert Van Hassel Rob Leary some instruments which will likely Ewout Steenbergen be triggered at the time of the IPOs

* Subject to 2012 AGM

Macquarie Conference - 22 November 2011 5 ING Bank: a liability-focused European Bank

ING Direct Retail Benelux Retail International Central Europe • ING Direct active in Canada • ING Retail is #2 bank in • Funds Entrusted: Netherlands and #4 in Belgium • ING Bank has strong positions in EUR 21 bln • Funds Entrusted: Central / Eastern Europe and Turkey • Number of clients: 1.8 mln EUR 176 bln • Funds Entrusted: EUR 19 bln • Number of clients: 11.6 mln • Number of clients: 5.9 mln

Retail International Asia

• ING Retail active in China, India and Thailand • Funds Entrusted: EUR 4 bln • Number of clients: ING Commercial Banking 4.6 mln ING Direct • ING Commercial Banking has leadership positions in core • ING Direct active in Austria, markets such as the Benelux & ING Direct CEE and an international France, Germany, Spain, Italy network in 40 countries and the UK • ING Direct in Australia • Strong focus on core products • Funds Entrusted: such as Structured Finance and EUR 146 bln • Funds Entrusted: EUR 18 bln

Financial Markets • Number of clients: 13.2 mln • Number of clients: 1.5 mln

Macquarie Conference - 22 November 2011 6 Insurance EurAsia: European-based Insurer with strong growth profile in Asia and CRE

Insurance Benelux ING Investment Management • #1 life insurer in the Netherlands1 • #4 non-life insurer in the • Principal Investment Manager Netherlands 1 for Insurance EurAsia • IIM Europe: EUR 149.6 bln AUM • IIM Asia: EUR 60.0 bln AUM

Insurance Central and Rest Insurance Asia of Europe • Presence in 7 Asian countries • Top 5: Malaysia and South Leading Life & Pensions provider in CRE. Presence in 9 countries. Korea

1 Ranking based on Gross Written Premium of 2009. Competitor information based on company’s websites

Macquarie Conference - 22 November 2011 7 Insurance US: focused US insurer with leading position in retirement service

Insurance US

US Insurance ING IM

• Top 10 Life Insurance • Overall, ING ranks in the top 20 managers of Writer in the US4 institutional tax-exempt assets1

• +80k points of • EUR 120.6 bln AUM2 distribution • More than 70% of ING IM’s retail mutual

through 3 funds beat their 5-year Lipper category channels average3 • +1.2 mln inforce policies

• Second largest writer US Retirement Services of Term policies in the US4 • Third largest provider of Defined Contribution in the US based on AUM and administration, the second largest based on the number of plan participants • Top 5 in Small / Mid-Corporate market4 • Ranked #1 in K – 12 sales4

1 – Pensions and Investments 31/12/10. 2 – As of 30/9/11 3 – Lipper 30/6/11. 4 – LIMRA 3Q11 survey.

Macquarie Conference - 22 November 2011 8 ING has reported solid results

Macquarie Conference - 22 November 2011 9 Underlying net profit of EUR 4,276 mln in 9M11, up 43.3% versus 9M10 despite Greek impairments

Underlying pre-tax result Underlying pre-tax result Underlying net result Bank (in EUR mln) Insurance* (in EUR mln) ING Group (in EUR mln)

591 455

4,383 4,061 4,276 323 2,984 1,663 1,199 818

-245 -198 9M2009 9M2010 9M2011 9M2009 9M2010 9M2011 9M2009 9M2010 9M2011 Impairments on Greek government bonds • Group net profit was EUR 4,580 mln in 9M2011 versus EUR 2,680 mln in 9M2010 • First nine months results include impairments on Greek government bonds of EUR 777 mln pre-tax (or EUR 593 mln after-tax)

* Insurance 2009-2010 figures have been restated to reflect 1) the sale of ING Insurance Latin America which is booked in discontinued operations until closing (expected in 4Q11) and 2) the change in accounting policy i.e. the move towards fair value accounting for GMWB for life in the US Closed Block VA as of 1 January 2011.

Macquarie Conference - 22 November 2011 10 Bank is making progress on Ambition 2013

Underlying income (EUR million) Underlying cost/income ratio (%)

455 75% 68.7% C/I ratio Target excl. 65% 56.0% 58.3% 12,873 12,489 CAGR market 10,137 2010-13: 55% Target: 50% impacts 5% was 54.7% 45% in 9M2011 9M2009 9M2010 9M2011 FY09 FY10 9M2011 Impairments on Greek government bonds

Underlying risk costs in bps of RoE (YTD, %) average RWA 25% 100 20% 17.6% 16.5% 13.1% Target*: 75 15% 11.4% 13-15% Normalised: 10% 50 5.0%4.3% 85 40-45 bps 5% 25 53 48 0% 0 FY09 FY10 9M2011 FY09 FY10 9M2011 Equity based on CT1 ratio of 7.5% IFRS-EU equity * Target assumes average equity based on core Tier 1 ratio of 7.5%.

Macquarie Conference - 22 November 2011 11 Insurance operations showing clear progress on Ambition 2013

Life general account (EUR bln) and Life & IIM administrative expenses / investment spread*,** (bps) Life & IIM operating income** (%)

200 120 50% 94 104 150 100 44.2% 100 84 45% 44.0% 80 50 141 165 171 40% 39.5% 0 60 9M2009 9M2010 9M2011 35% Target: ≤35% General account assets (Target: CAGR ≥4%) 30% Investment spread (Target: ≥105 bps) FY09 FY10 9M2011

APE** (EUR bln) RoE**,*** (YTD, %)

15% Target: ≥10% 9.3% Target 10% 5% 3.1 3.2 3.2 CAGR 2010-13 0% ≥10% -5% -2.5% -10% -5.0% 9M2009 9M2010 9M2011 FY09 FY10 9M2011 * Four-quarter rolling average ** Insurance 2009, 2010 and 1Q11 figures have been restated to reflect the sale of ING Insurance Latin America which is booked in discontinued operations until closing. *** Annualised underlying net result divided by average IFRS-EU equity. (For Insurance, the 2010 quarterly results are adjusted for the after-tax allocated cost of Group core debt.).

Macquarie Conference - 22 November 2011 12 ING meets EBA Capital target of 9%

Core Tier I ratio 0.1% -0.3% • The Core Tier 1 ratio was 9.6% at 30 September 2011 9.6% • The 2011 year-end implementation of market risk model updates, including the 9.4% impact of Basel 2.5, is estimated at around EUR 11 bln or -30 bps • ING has a positive unrealised result on its government bond exposure to the European Economic Area (EEA) and consequently nothing is subtracted according to the rules applied in the EBA test 30 Sep 2011 REIM* Market RWA 30 Sep • ING has a buffer of EUR 1.2 bln reported 2011 Pro- above the hurdle rate of 9% forma EBA * REIM Asia closed on 3 October 2011 and REIM Europe closed on 31 October

Macquarie Conference - 22 November 2011 13 ING Bank has been de-risked and has a strong funding profile

Macquarie Conference - 22 November 2011 14 ING has reduced the balance sheet while growing customer lending

Total assets (in EUR billion) Asset leverage ratio 2008-Sep 2011

994 -8% Asset leverage = Total Assets / 914* Shareholders Equity* 160 86 41 27 59 77 45.2 208 151 39.0

29.2 27.1 27.1 526** 574**

31 Dec. 2007 30 Sep. 2011 Investments Other Cash and amounts due from banks Financial assets at fair value through P&L 31 Dec. 31 Dec. 31 Dec. 31 Dec. 30 Sep. Loans and advances to customers 2007 2008 2009 2010 2011 * Excluding Assets held for sale (ING Direct USA and ING Real Estate * 2011 is excluding Assets held for sale (ING Direct USA and ING Real Investment Management). Estate Investment Management) ** Includes IABF (for 2011) and reclassified debt securities.

Macquarie Conference - 22 November 2011 15 Government bond exposure to southern Europe substantially reduced. Greek debt impaired to market value

Bank: Government bond exposure Insurance: Government bond (in EUR bln)*, ** exposure (in EUR bln)*, ** 4.4

2.9

1.7 1.4 1.7 0.9 0.9 0.8 0.5 0.4 0.4 0.3 0.1 0.1 0.3 0.2

Italy Spain Portugal Greece Italy Spain Portugal Greece B/S value 2Q2011 B/S value 3Q2011 B/S value 2Q2011 B/S value 3Q2011

• Greek government bonds of all maturities impaired to the 30 September market value, which represents a write-down of approximately 60%

• Government bond exposure to Greece, Italy, Ireland, Portugal and Spain reduced by EUR 4.8 billion in 3Q11. In October 2011, the Bank further reduced its exposure to these countries by EUR 0.6 billion

* Bank has no government bond exposure to Ireland. Insurance exposure to Ireland amounted to EUR 46 mln (B/S value) at the end of 3Q11 ** All AFS, except for Bank exposure to Italy (EUR 1.6 bln AFS and EUR 0.1 bln at amortised costs on 30 Sep 2011) and Spain (EUR 0.6 bln AFS and EUR 0.2 bln at amortised costs at 30 Sep 2011).

Macquarie Conference - 22 November 2011 16 ING Bank’s total investment book is de-risked; ABS exposure declined strongly

Total Investments* (in EUR bln) ABS (in EUR bln)

66 -74% 185 -36% 7 3 66 118 23 4 17 3 48 10 50 17 38 4 28 24 1 12 29 19 31 Dec 2007 30 Sep 2011 31 Dec 2007 30 Sep 2011 Corporate bonds** US Alt-A RMBS Covered bonds US RMBS Other Government bonds Non-US RMBS Equities CMBS ABS Other ABS * Total investments includes securities in ‘Amounts due from Banks’ and ‘Loans and advances’ totalling EUR 32 billion as of 30 September 2011 and excludes Securities held for sale. ** Includes financial institutions

Macquarie Conference - 22 November 2011 17 ING Bank’s Real Estate exposure on development projects and investments (FV through P/L) has declined sharply

Exposure on development projects and investments reduced (EUR bln)

7.5 -55% • Exposure on development projects and investments

reduced primarily through sales and FV changes/impairments 4.6 • RE investments and development projects will be 3.4 further reduced over time in a 0.7 controlled manner 1.0 2.9 1.7

31 Dec 2007 30 Sep 2011 Development projects Real Estate Real Estate Investments (FV through the P/L) Real Estate Investments (FV through Equity)*

* Following the closure on 9 June 2011 of one part of the REIM transaction (sale of Clarion Partners), ING has reclassified EUR 0.7 bln of RE investments from ‘FV through P/L’ to ‘FV through Equity’

Macquarie Conference - 22 November 2011 18 ING’s strong funding position enabled us to continue to increase lending to support our customers

Loan-to-deposit ratio (excluding Loan book per segment (%) securities and IABF)* of 1.15 6% 1% 33 4% 19 10% 28%

8% 1.15 541 13% 507 470 30% NL Retail Mortgages Other Mortgages Benelux SMEs/mid-corps General Lending Structured Finance Leasing & Factoring Real Estate Finance Other and interbank 31 30 30 • ING’s loan-to-deposit ratio (excluding December September September securities at amortised costs and IABF 2011 2011 2007 receivable) was 1.15 at 30 Sep. 2011 Securities at amortised cost and IABF • Residential mortgages represent 58% Customer lending of the total loan book Customer deposits and other funds on deposit * 2011 is excluding Assets held for sale (ING Direct USA and ING Real Estate Investment Management) and after netting

Macquarie Conference - 22 November 2011 19 Large deposit base is strong source of funding

Large deposit base (30 September 2011, EUR bln) ING Funds Entrusted* (30 Sep 2011) HSBC 949 Deutsche Bank 588 14% Santander 561 BNP Paribas 539 5% 39% RBS 505 Credit Agricole 493 ING Bank* 470 Lloyds 462 Barclays 413 Intesa Sanpaolo 407 42% Unicredit 393 Societe Generale 333 Retail Banking Benelux Rabobank 305 Retail Banking Direct BBVA 282 Retail Banking CEE & Asia UBS 273 Commercial Banking Commerzbank 262 Credit Suisse 259 Standard 237 • ING’s deposit base is among the largest in Europe Nordea 185 KBC 184 • More than 40% of total funds Erste Bank 122 entrusted is from ING Direct Dexia 44 Source: Latest available company financials and results presentation * ING excluding ING Direct USA

Macquarie Conference - 22 November 2011 20 ING Bank benefits from favourable funding mix

Favourable funding mix Favourable funding mix: (30 September 2011) • ING’s funding mix dominated by client deposits (61%) 3% 7% • Capital markets and money markets 41% deteriorated significantly in 3Q11. ING 10% was still able to maintain access to short and long term funding sources, for acceptable pricing and tenors.

19% • ING Bank has been structurally reducing reliance on short-term

professional funding since start of credit crisis through: 20% 1. strong increase long-term debt issuance

Retail deposits Corporate deposits 2. integration of balance sheets Public debt Interbank Repo Subordinated debt 3. divestments * Liabilities excluding trading liabilities and IFRS equity. Liabilities held for sale are excluded

Macquarie Conference - 22 November 2011 21 ING Bank has modest long-term funding needs

Maturity ladder outstanding Public senior issue spread long-term debt (EUR million) (in bps)

Issued Maturing 350 20,000 300 250 10,000 200 150

0 100 '11 '12 '13 '14 '15 '16 '17 '18 >'18 50 0 Senior debt State Guaranteed 14/01/11 14/06/11 14/11/11 Lower Tier-2 Covered bond RMBS ITRAXX Banks 5yr ING CDS 5yr • ING Bank’s 2011 refinancing need already met: EUR 20 billion raised at 30 September, versus EUR 10.7 billion maturing in full year 2011

• ING issues well below ITRAXX and ING CDS 5Y level. The average spread per end September 2011 is 3m Euribor +90 bps (~50 bps tighter than average CDS)

Macquarie Conference - 22 November 2011 22 Diversified Issuance – September YTD 2011

Total Issuance, ING Bank September YTD 2011 (in EUR million) Format Public % Private % Total % Covered Bond 6,211 35% 1,505 63% 7,717 38% Senior Unsecured 10,515 60% 899 37% 11,413 57% RMBS Public 909 5% - - 909 5% Total 17,635 100% 2,404 100% 20,039 100%

Issued Tenors Sep 2011 vs Sep 2010 Issuance over Currencies, YTD 2011 (in EUR mln) EUR, 66% USD, 21% 6,000 THB, 1% GBP, 3% 4,000 JPY, 0.3% NZD, 0.1% 2,000 CHF, 3% NOK, 1% 0 AUD, 3% RUB, 0.6% 1.523456710>10 CAD, 1.6% 2010 2011

• Weighted average tenor of issues increased from 5.0 years in 2009 to 6.0 years in September YTD 2011

Macquarie Conference - 22 November 2011 23 Building a stronger bank

Macquarie Conference - 22 November 2011 24 Basel III is a catalyst to manage the balance sheet more efficiently

Total assets (EUR bln) Total liabilities (EUR bln)

100% 100%

= 0% 0% Current Directional Current Directional Mortgages Other loans Client deposits Debt securities Financial assets at FV Investments Financial liabilities at FV Interbank Cash and other Other

Directional balance sheet • Investment portfolio will be shifted more to government bonds to meet liquidity requirements

• Balance sheet integration started: taking own assets to match ING Direct deposits • Loan portfolio will grow, but impetus to put less emphasis on mortgages due to low RoA

Macquarie Conference - 22 November 2011 25 Multiple waves of balance sheet integration

1st wave: 4th wave: ING Bank’s internal 2nd wave: 3rd wave: domestic funding position securitisations mortgages CB assets banks

• Funding position in • Units with • Transfer • Transfer • In selected the Netherlands excess funding own-originated selected ING Direct can be improved invest in mortgages Commercial countries, through more internally directly to Banking assets merge ING efficient Balance ringfenced and funding-rich to funding rich and CB Sheet management packaged units units activities into

• ING Belgium and mortgages one legal ING Direct are entity* funding rich

• By better matching the own originated assets with liabilities, ING can limit the investment portfolio

• Balance sheet integration progressing in close cooperation with local regulators * Subject to regulatory approval

Macquarie Conference - 22 November 2011 26 Wrap up

• ING Bank has reduced the balance sheet while -0.3% growing customer lending 9.6% 9.4%

Macquarie Conference - 22 November 2011 27 Disclaimer

ING Group’s Annual Accounts are prepared in accordance with International Financial Reporting Standards as adopted by the European Union (‘IFRS-EU’). In preparing the financial information in this document, the same accounting principles are applied as in the 3Q2011 ING Group Interim Accounts. All figures in this document are unaudited. Small differences are possible in the tables due to rounding. Certain of the statements contained herein are not historical facts, including, without limitation, certain statements made of future expectations and other forward-looking statements that are based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Actual results, performance or events may differ materially from those in such statements due to, without limitation: (1) changes in general economic conditions, in particular economic conditions in ING’s core markets, (2) changes in performance of financial markets, including developing markets, (3) the implementation of ING’s restructuring plan to separate banking and insurance operations, (4) changes in the availability of, and costs associated with, sources of liquidity such as interbank funding, as well as conditions in the credit markets generally, including changes in borrower and counterparty creditworthiness, (5) the frequency and severity of insured loss events, (6) changes affecting mortality and morbidity levels and trends, (7) changes affecting persistency levels, (8) changes affecting interest rate levels, (9) changes affecting currency exchange rates, (10) changes in general competitive factors, (11) changes in laws and regulations, (12) changes in the policies of governments and/or regulatory authorities, (13) conclusions with regard to purchase accounting assumptions and methodologies, (14) changes in ownership that could affect the future availability to us of net operating loss, net capital and built-in loss carry forwards, and (15) ING’s ability to achieve projected operational synergies. ING assumes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information or for any other reason. This document, and any other document or presentation to which it refers, do not constitute an offer to sell, or a solicitation of an offer to buy, any securities. www.ing.com

Macquarie Conference - 22 November 2011 28