Fortis is an international financial services provider whose core activities are Banking and Insurance. The primary format for segment reporting is based on businesses.

In October 2006 Fortis announced a new organisational structure to support the evolution of its growth strategy. The structure was implemented on 1 January 2007. The 2006 figures have been changed for comparison purposes.

Fortis is now organised on a world-wide basis into three businesses which are further subdivided into business segments (for details see below):

• Retail Banking
• Merchant & Private Banking
• Insurance.

Activities not related to the Banking and Insurance businesses and elimination differences are reported separately.

Fortis’ segment reporting reflects the full economic contribution of the businesses of Fortis. The aim is direct allocation to the businesses of all balance sheet and income statement items for which the businesses have full managerial responsibility.

Segment information is prepared based on the same accounting policies as those used in preparing and presenting Fortis’ Consolidated Financial Statements (as described in note 1) and by applying appropriate allocation rules.

Transactions between the different businesses are executed under standard commercial terms and conditions.

On 5 November 2007 Fortis announced that it would reorganise its management structure as of 1 January 2008. The adequate management structure will not only facilitate the successful integration of the acquired businesses of ABN AMRO, but will also support the development of Fortis as a whole. Fortis will start to report according to the new organisational structure as of the first quarter of 2008.