Global markets and ING Australia

• ING Australia is very strong financially and is well placed to weather the current global turmoil.
• ING Australia is well capitalised and has strong parent companies – ANZ and ING Group.
• ING Group is one of world’s top 3 savings banks with over 85 million customers and client retail balances of about Euro 1.5 trillion (more than A$3 trillion).
• ING Group has received Euro 10 billion from the Dutch Government. ING Group is one of many banks around the world who are receiving capital injections from their governments. The Dutch Finance Minister has said: "It is a large sum that we are injecting into a healthy business." This added capital will further strengthen and protect ING's business for its stakeholders, and ensure an even stronger competitive position.

ING Australia strength

• ING Australia is a joint venture between ING Group (51%) and ANZ (49%). The joint venture was established in 2002.
• ING Australia satisfies the capital requirements of APRA. We have a very healthy balance sheet and are well capitalised. We also have significant undrawn credit facilities available at call, and two very well capitalised parent companies (ING Group and ANZ). The Dutch Government has stated that ING is a healthy and well-managed enterprise, has robust financial resilience, making it one of the stronger banks in international terms.
• Recently ING Australia’s financial strength has been recognised by Standard & Poor’s decision to upgrade their rating of ING Life from A+ to AA- status. This improved rating recognises the performance of ING Life and the strategic importance of ING Australia to ING Group.
• In announcing its raised insurer financial rating for ING Life, Standard & Poor’s said in part: “The ratings on ING Life reflect the insurer's solid and improving business profile, supported by a diverse distribution network and robust capitalization. ING Life holds a strong market position in its core business segments of life insurance, and employer and personal superannuation. The stable rating outlook on ING Life reflects that of the majority parent, ING Group, and our expectation is that ING Group’s earnings and balance sheet will remain relatively resilient.”
• Despite the current negative market conditions ING Australia is on track to deliver a solid profit result in 2008. This follows the delivery of a record profit in 2007.
• ING Australia is one of the most trusted brands in the wealth management industry, with a leading position in wealth management and life insurance. The business was recently independently rated as the 6th most trusted brand in Australia (AMR Interactive brand reputation research July 2008).

Our Australian partner, ANZ:

• has assets of A$471 billion and employs more than 44,000 people in Australia, New Zealand, Asia, the Pacific, UK/Europe, Dubai, India and the USA.
• is one of the ten largest and most successful companies in Australia; the number one bank in New Zealand; and operates in more than 30 countries across Australasia, the Pacific, Europe, Dubai, USA and Asia.
• is one of only 14 banks globally with a Standard & Poor's AA rating.
• announced cash earnings of more than A$3 billion for 2008.

Recent ING Group announcements

ING Group market position

• ING Group has weathered the financial turmoil relatively well so far. We are confident about our financial and capital position, as well as our liquidity. Our capital position was already in line with targeted levels.
• ING Group has solid financial strength ratings:
  • AA- and outlook stable by Standard and Poor’s (reaffirmed in Oct)
  • Aa3 and outlook stable by Moody’s
  • AA- and outlook stable by Fitch Ratings (reaffirmed in Oct)

3rd Quarter loss of Euro 500 million – 19 Oct

• ING Group has reported a 3rd Quarter loss of Euro 500 million. This far outweighed by the profits in Qrt 1 & 2 of this year of Euro 3.5 billion. Therefore ING Group total profits for year so far are Euro 3 billion.
• This 3rd Qrt loss of Euro 500 million is due entirely current market volatility.
• This Euro 500 million loss compares with the accumulated write-down losses of the world’s top 24 financial institutions, which is Euro 435 billion (approx. Euro 18 billion each).

ING Group share price has recently dropped 20%

• All financial stocks are getting badly hit by this unusual and unstable market environment. ING is no different.
• There is absolutely no relation between your deposits, investments, insurance policies and the stock price.

ING Group has received Euro 10 billion from the Dutch Government – 19 Oct 2008

• ING Group will receive Euro 10 billion from the Dutch Government. These funds will strength ING Group’s capital position, creating a strong buffer to navigate the current market turmoil.
• The Dutch Government stated: “That ING is a healthy and well-managed enterprise, has robust financial resilience, making it one of the stronger banks in international terms.”
• The Dutch Government will receive securities in ING in receipt for the capital.
• It is important to note that these securities are not ordinary shares in ING, so the government is not buying a stake in the company. This means there is no dilution in existing shareholder entitlements. The Government has no voting rights.
• ING Group is one of many banks around the world that are receiving capital injections from their governments, and this is to further strengthen and protect ING's business for its stakeholders.
• ING Group will use the proceeds of the transaction to:
  • increase shareholders’ equity in ING Bank by Euro 5 billion,
  • strengthen the balance sheet of ING Insurance by Euro 2 billion.
  • the remaining Euro 3 billion will be used to reduce Debt/Equity ratio at ING Group from 15% to around 10%.

About ING Group

• ING’s business model is about savings
• ING is in the business of collecting retail savings and pensions
• ING is not in the business of originating structured US products
• ING is one of the largest savings bank in the world with over 85 million customers and client retail balances of about Euro 1.5 trillion.
• ING Australia is part of ING Group, one of the world’s largest financial institution (7th largest according to Fortune 2008), and with a net profit for 2007 of Euro 9.241 billion
• We take a low risk approach to investments and invest in good quality assets.
• In terms of liquidity, ING is very robust and remains a safe haven for its customers.
• While no financial services company is immune in this environment, ING believes its prudent approach to risk management and diverse business model put the company in a solid position. ING’s prudence and discipline in managing risks and capital have been our guiding principles for doing business, and they have served us well through the liquidity crisis.