Dexia Crédit Local Fixed Income Investor Presentation. September 2017

Transcription

1 Dexia Crédit Local Fixed Income Investor Presentation September 2017

2 Fixed Income Investor Presentation Disclaimer This presentation is confidential and is being provided to you solely for your information and may not be reproduced, retransmitted, forwarded, further distributed to any other person or published, in whole or in part, by any medium or in any form for any purpose and in particular, may not be forwarded to any U.S. person (as defined in the U.S. Securities Act of 1933, as amended (the Securities Act )) or to any U.S. address or to any person and/or in any jurisdiction in which it would be unlawful to do so. Any forwarding, distribution or reproduction of this document in whole or in part is unauthorised. Failure to comply with such limitations may result in a violation of the Securities Act or the applicable laws of other jurisdictions. Nothing in this presentation constitutes an offer of securities for sale in the United States or in any other jurisdiction where it is unlawful to do so. This investor presentation is for distribution only to persons who (i) are outside the United Kingdom, (ii) have professional experience in matters relating to investments falling within article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order"), (iii) are persons falling within Article 49(2)(a) to (e) ("high net worth companies, unincorporated associations etc") of the Order or (iv) are qualified investors (investisseurs qualifiés) as defined in Article L411-2 of the French Monetary and Financial Code (code monétaire et financier), (v) who are both (a) investment professionals falling within section 31a (2) of the German Securities Trading Act (Wertpapierhandelsgesetz) and (b) qualified investors within section 2 no. 6 of the German Securities Prospectus Act, or (vi) qualify as both (a) professional investors under the Finnish Investment Funds Act 48/1999 and as (b) qualified investors under the Finnish Securities Markets Act 746/2012 (all such persons together being referred to as "relevant persons"). This investor presentation is directed only at relevant persons and must not be acted on relied on by persons who are not relevant persons. This presentation includes expectations and/or forward-looking statements and assumptions related to the possible evolution of the business environment. By their very nature, statements contained in this document involve inherent risks and uncertainties, both general and specific, and risks exist that predictions, forecasts, projections and other forward-looking statements will not be achieved. We caution readers not to place undue reliance on these statements as a number of important factors could cause our actual results to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates and intentions expressed in such statements. Such important factors include, but are not limited to, general economic conditions, general competitive factors, changes in the availability or costs of liquidity, general market conditions, changes in laws and regulations (including accounting principles), changes in the policies of regulatory authorities, changes in interest rates and/or exchange rates. In any event, forward-looking statements made herein speak only as to the date on which they are made, and Dexia does not undertake any obligation to update or revise such statements as a result of new information, future events or otherwise. This presentation contains unaudited figures. It also contains financial information of the Dexia SA Group. This financial information is not directly comparable with the financial information of the Dexia Credit Local Group. Apart from in relation to Dexia Credit Local itself, investors will not have any direct claims on the cash flows or assets of the Dexia SA Group and, apart from the Dexia Credit Local Group, members of the Dexia SA Group have no obligation, contingent or otherwise, to pay amounts due under the Notes or to make funds available to Dexia Credit Local for these payments. 2

3 Fixed Income Investor Presentation Agenda Section 1 Section 2 Section 3 Section 4 Dexia Group Profile Dexia Crédit Local, Issuer of the Group Funding & Liquidity 2013 Funding State Guarantee 3

4 Fixed Income Investor Presentation Dexia Group Profile 1. Overview 2. A Group in Orderly Resolution 4

5 Dexia Group Profile Overview Dexia SA 94% State-owned banking institution in orderly resolution Status Shareholding structure Mandate Balance sheet 1 As a significant bank, under the direct supervision of the European Central Bank within the framework of the Single Supervisory Mechanism since 4 November 2014 A group in orderly resolution, as approved by the European Commission on 28 December 2012; historically active in the financing of European public local sector European Central Bank s proportionate, pragmatic and tailored supervisory approach, taking into account Dexia s specific and unique situation as a bank in run-off, within the current and forthcoming prudential framework 94.4% State-owned (Belgium: 50.02%, France: 44.40%) To manage the balance sheet wind-down in order to preserve the financial interests of the shareholders and the State guarantors; 3 strategic objectives - Secure group s liquidity at all times over the orderly resolution period - Ensure operational continuity to execute the orderly resolution plan - Preserve capital to respect regulatory and legal requirements over the orderly resolution period EUR billion Solvency 1 Common Equity Tier 1 ratio (Basel III) at 17.0% - Total Capital ratio at 18.0% Staff 1 1,082 (1) 30 June

6 Dexia Group Profile A Group in Orderly Resolution Scope: Dexia SA 31/12/ /12/ June 2017 Balance Sheet (EUR bn) Tier 1 ratio Staff % Group Restructuring 7.6% 36,700 22,460 Group Resolution % 1 1,082 Dexia Revised Orderly Resolution Plan, approved by the European Commission on 28 December 2012 Dexia revised orderly resolution plan setting the base of the orderly run-down of the Group s activities In essence, plan calling for the disposal of the saleable commercial franchises within a short deadline and the management in run-off of other franchises without new commercial production, except for a limited number of exceptions Support provided by the Belgian, French and Luxembourg States to allow the Group s orderly resolution in the long run Uniqueness of Dexia s situation acknowledged by the European Central Bank Capital increase of Dexia SA subscribed by Belgian and French States on 31 December 2012 Issuance of preferential shares by Dexia SA in exchange for the EUR 5.5 billion capital increase aimed at providing sufficient capital base to carry the Group s residual assets and to meet regulatory capital requirements over the period of the resolution plan Funding guarantee granted by the Belgian, French and Luxembourg States on 24 January 2013 EUR 85 billion State Guarantee provided by Belgium, France and Luxembourg, allowing Dexia to fund the Group s balance sheet (1) Common Equity Tier 1 ratio (Basel III); Total Capital ratio at 18.0% 6

7 Fixed Income Investor Presentation Dexia Crédit Local, Issuer of the Group 1. Simplified Organizational Chart 2. Balance Sheet 3. Capital Base 4. Run-Off Portfolio 5. Asset Quality 7

8 Dexia Crédit Local, Issuer of the Group Simplified Organizational Chart Dexia SA 100% Dexia Crédit Local 1 (incl. New York, Dublin, Madrid, Lisbon branches) - Total B/S 2 : EUR bn 70% 100% Dexia Crediop Total B/S 2 : EUR 10.7 bn Dexia Kommunalbank Deutschland Total B/S 2 : EUR 32.0 bn Dexia Crédit Local: - Banking subsidiary and main operational entity of the group - Located in France - Former flagship entity for the financing of local authorities and project finance - Perimeter converging to the one of Dexia SA, in the frame of the orderly resolution of the group with a total consolidated balance sheet of EUR 199 billion at the end of June 2017; >99% of the group s assets held by Dexia Crédit Local - Simplified and unified governance with Dexia SA; members of Management Board and Board of Directors of Dexia SA being members of those of Dexia Crédit Local - Issuer of the group, benefiting from the State guarantee provided by Belgian, French and Luxembourg States - International presence through branches in New York, Dublin, Madrid and Lisbon and subsidiaries in Germany, Italy and Israel (1) Including DCL branches (2) Contribution to the group s consolidated balance sheet, retreated from intragroup items, on 30 June

9 Dexia Crédit Local, Issuer of the Group Balance Sheet and Capital Base Indicative 1 Run Off Balance Sheet For illustration purpose only EUR 246 bn Achieved EUR 229 bn EUR 212 bn EUR 199 bn Forecasts 1 Natural asset amortization and asset disposals EUR ~139 bn Total assets expected to be reduced by ~45% over the period due to natural portfolio amortization and asset disposals, not compensated by new assets origination 2 Balance sheet total sensitive to exogenous factors, as the amount of cash collateral posted and fair value items may be impacted by interest rate and exchange rate movements Identification of assets available for disposals, in preparation of IFRS 9 implementation No numerical targets set by European Commission in terms of asset disposal; deleveraging mainly driven by asset value optimization (1) Targeted figures as determined in the business plan of November 2012 (updated in December 2016) underlying the Orderly Resolution Plan approved by the European Commission (2) Dexia Israel may continue its self-funded commercial activities with the purpose of preserving the commercial franchise until its divestment 9

10 Dexia Crédit Local, Issuer of the Group Balance Sheet and Capital Base Total capital ratio Forecasts 1 For illustration purpose only 17.2% Achieved Deduction of an additional 20% tranche of AFS reserve in % 16.8% 18.0% IFRS 9 first application 13.1% 12.6% 13.4% 14.7% % Solvency ratios as at 30 June 2017 Since 2014, downwards trend explained by the progressive deduction of 20% per annum of AFS reserve (last tranche 01/01/2018); filtering of sovereign AFS reserve removed in As from 2017, projections highly sensitive to assumptions on the regulatory and accounting framework such as application of IFRS 9 or regulatory treatments No impact in terms of distribution of breach of the combined ratio including the capital conservation buffer, given the EC distribution restrictions already applying to the group in the frame the Orderly Resolution Plan, for burden sharing purposes (1) Targeted figures at year-end as determined in the business plan of November 2012 (updated in December 2016) underlying the Orderly Resolution Plan approved by the European Commission (2) Following the regulation (EU) 2016/445 of the European Central Bank of 14 March 2016 on the exercise of options and discretions available in Union law (ECB/2016/4), application of the national discretion allowing the filtering of sovereign AFS reserve until 1 October

11 Dexia Crédit Local, Issuer of the Group Portfolio Breakdown Portfolio 1 distribution (EAD 2 in %) Breakdown by maturity (EAD 2 in %) France 17% Italy 16% UK 15% Germany 12% Local public sector 53% Sovereigns 19% Financial institutions 11% USA 17% Spain 8% Japan 5% Portugal 2% Other countries 8% Project finance 8% ABS/MBS 3% Corporates 5% Monoline 1% Scope : Dexia Crédit Local, as at 30 June 2017 Scope : Dexia Crédit Local, as at 30 June 2017 Key portfolio figures Number of exposures Number of debtors Commitments (EAD 2 ) o/w Loans o/w Bonds 21,734 6,311 EUR billion EUR 78.0 billion EUR 65.9 billion Significant share of illiquid assets Long-term loans to the local public sector: ~63% of the portfolio with a maturity of more than 10 years Portfolio reflecting Dexia s previous positioning of former leader in public financing: significant exposure to local public sector, sovereigns and to project finance, generally linked to public sector (financing of infrastructures, utilities or renewable energies) (1) Including deposits with Central Banks (positive liquidity position of EUR 21.2 bn as at 30 June 2017, of which EUR 9.8 bn in the form of deposits with central banks) (2) The Exposure at Default (EAD) corresponds to the best estimate of credit risk exposure at default for a counterparty. The EAD for a counterpart corresponds to the (i) balance sheet assets' accounting book value gross of impairments, (ii) derivatives' mark-to-market plus regulatory add-ons and (iii) off-balance sheet items' nominal amounts times a Credit Conversion Factor. 11

12 Dexia Crédit Local, Issuer of the Group Asset Quality Exposures 1 per rating (EAD 2 in %) AA 14% AAA 21% A 26% BBB 29% BB 7% B and below <1% Non performing (D) <1% Non rated < 1% Focus on NIG assets (EAD 2 in %) A good quality asset portfolio Assets well rated, ~91% investment grade, with a low cost of risk Portfolio of significantly higher quality with respect to other run off entities in Europe Limited amount of Non Performing Loans (<1% of portfolio) Experienced risk management teams monitoring the portfolio Concentration on specific sectors and counterparts, involving a cautious risk supervision Teams mostly composed of senior risk officers with a solid experience in risk management in sectors such as local public sector and project finance Active derisking policy, to allow asset value preservation Local public sector 75% Project finance 20% Corporates 2% ABS/MBS 1% Financial institutions 1% Sovereigns 1% NIG assets mostly in the BB range ~ 88% of NIG exposure in BB range NIG exposures mainly on local public sector in Southern European countries and project finance (secured financings usually not rated in the Investment Grade range) (1) Including deposits with Central Banks (positive liquidity position of EUR 21.2 bn as at 30 June 2017, of which EUR 9.8 bn in the form of deposits with central banks) (2) The Exposure at Default (EAD) corresponds to the best estimate of credit risk exposure at default for a counterparty. The EAD for a counterpart corresponds to the (i) balance sheet assets' accounting book value gross of impairments, (ii) derivatives' mark-to-market plus regulatory add-ons and (iii) off-balance sheet items' nominal amounts times a Credit Conversion Factor. 12

13 Fixed Income Investor Presentation Funding & Liquidity 1. Targeted Funding Profile 2. Funding Tool Box 3. Focus on State Guaranteed Issuance 4. State Guaranteed Bonds Secondary Market Levels 13

14 Funding & Liquidity Targeted Funding Profile EUR 163 bn Indicative 1 Consolidated Funding Mix For illustration purpose only EUR 229 bn EUR 146 bn EUR 212 bn EUR 140 bn Achieved EUR 199 bn Forecasts 1 EUR ~139 bn EUR ~ 88 bn Funding Mix State Guaranteed funding raised under the State guarantee scheme granted by the States of Belgium, France and Luxembourg Secured market funding (non guaranteed) including secured repo transactions and covered bonds (Pfandbriefe issued by DKD) Deposits and non-guaranteed unsecured funding (mostly residual funding raised before 2011) In , reduced use of Central Bank funding, replaced by State guaranteed funding and secured market funding As from 2017 onward, funding mix converging towards: - 59 % of State guaranteed funding - 41 % of non-guaranteed secured and unsecured market funding - < 1% of central bank funding Access to ECB funding still available up to EUR 5.2 bn 2 (1) Figures determined in the business plan of November 2012 (updated in December 2016) underlying the Orderly Resolution Plan approved by the European Commission (2) Until 31 December

15 Funding & Liquidity Funding Tool Box State guaranteed funding Money market Debt capital markets Non guaranteed funding Money market Capital markets Maturity Up to 1 year 1 to 10 years Up to 1 year 1 year and longer Format Commercial Papers, Certificates of Deposits, Deposits of institutional clients Bonds Bilateral and Triparty Repo, Commercial Papers, Certificates of Deposits Bilateral and Triparty Repo, Covered Bonds (Pfandbriefe) Currencies EUR, USD, GBP, CHF, CAD, JPY Mainly EUR, USD and GBP Issuer Dexia Crédit Local and DCL NY branch Dexia Crédit Local Dexia Crédit Local and DCL NY branch Dexia Crédit Local, DCL NY branch and DKD Documentation ECD & ECP USCD & USCP EMTN USMTN BMTN ECD & USCP GMRA EMTN GMRA Yearly targeted issuance volumes EUR bn Regular issuance to maintain outstanding of short term guaranteed funding at 20 bn as at end of 2017 EUR 12 bn Annual funding program for 2017 EUR 22 bn Regular issuance to achieve outstanding of short term non secured funding of EUR 1.6 bn and short term repos of EUR 20.5 bn EUR ~3 bn Annual funding program for

16 Funding & Liquidity Focus on State Guarantee Issuance Indicative 1 Recourse to State Guarantee For illustration purpose only Indicative 1 State Guaranteed Funding Mix For illustration purpose only Realized Forecasts 1 EUR 61.0 bn EUR 71.4 bn EUR 70.5 bn Long term funding 33% Short term funding GBP 15% EUR ~48 bn 67% USD 25% 60% EUR In 2017, targeting State Guaranteed short term and long term funding in the market for an average amount of EUR equivalent 35 billion per year 2017 long term funding program of EUR 12 bn with a planned execution through: - Benchmark transactions to maintain liquid curves in Euro, US Dollar and Sterling - Private placements to meet specific investor demand (1) Targeted figures as determined in the business plan of November 2012 (updated in December 2016), underlying the Orderly Resolution Plan approved by the European Commission 16

17 Funding & Liquidity Focus on State Guarantee Issuance 2017 State Guaranteed Benchmarks (USD, EUR, GBP) Order books reflecting Dexia positioning as an SSA issuer EUR 9.6 bn of long term funding raised in 2017 through 4 benchmark issues and private placements: - EUR 6.7 bn in public benchmarks - EUR 2.9 bn in private placements EUR 19.7 billion raised in 2017 via 311 short term transactions executed under the CD and CP formats: - Average outstanding of EUR 27 bn - Average initial maturity above 8.3 months 2.250% $1.5 bn bmk due Feb 2020 Reg S / 144A Reoffer: MS+69bps / T+91.9bps Issue date: 18 th Jan % 2 bn bmk due June 2022 Reoffer: MS +29bps Issue date: 2 nd June % 2 bn bmk due Feb 2024 Reoffer: MS +23bps Issue date: 3 rd Feb % 1 bn bmk due June 2022 Reoffer: UKT +70bps Issue date: 12 th July 2017 Aggregated benchmark distribution since 2015 Fund Managers 32% Central banks & official institutions 28% Asia 13% France 10% Benelux 10% Middle East & Africa 8% Banks 33% Insurance & pension funds 7% Germany & Austria 14% UK & Ireland 24% USA 7% Nordic countries 7% Switzerland 3% Other Europe 4% 17

18 Funding & Liquidity State Guaranteed Bonds Secondary Market Levels EUR Spread vs MS (bps) USD Spread vs MS (bps) Source: Bloomberg (update 10 August 2017) 18

19 Fixed Income Investor Presentation 2013 Funding Government Guarantee 1. Key Terms 2. Mechanism 19

20 2013 Funding State Guarantee Key Terms Key terms of the funding State Guarantee Explicit State guarantee 1 granted to Dexia Crédit Local and DCL New York Branch Limit of EUR 85 billion in principal 2 ; interests and incidental amounts due are guaranteed beyond this limit Shared 51.41% Belgium (AA / Aa3 / AA-), 45.59% France (AA / Aa2 / AA), 3.00% Luxembourg (AAA / Aaa / AAA) Several, not joint, first demand, unconditional, irrevocable 2013 State guarantee rated AA / Aa3 / AA- and A-1+ / P- 1 / F1+ 3 Framework Effective as of 24 January 2013; replaces the 2011 Guarantee Maximum maturity of 10 years for securities issued under the guarantee and extended issuance period till 31 December 2021 In agreement with the European Commission, fees paid on the outstanding guaranteed under the 2013 scheme set at 5 bps Confirmation of 0% RW for State Guaranteed debt by National Bank of Belgium and French banking supervisor (ACPR) Eligible as HQLA level 1 under the EU Delegated Act on the Liquidity Coverage Ratio Jurisdiction Guarantee governed by Belgian Law Governmental and Parliamentary Approvals European Commission: 28 December 2012 Belgium: Royal Decree of 18 October 2011 granting the State s guarantee for certain commitments of Dexia Crédit Local SA, as amended by the Royal Decree of 19 December 2012 and ratified by the Law of 17 June 2013 France: article 4 of the finance law n of 2 November 2011, as amended by the finance law for 2012 of 29 December 2012 Luxembourg: law of 16 December 2011 (1) 2013 funding guarantee agreement available on (2) Guaranteed obligations denominated in foreign currencies are converted into their euro equivalent amount on the date any new eligible financings are issued or entered into (3) Rating reports: S&P (24/01/2013), Moody s (18/02/2013 and 11/03/2014) and Fitch (25/10/2012, 26/03/2014 and 04/01/2017) 20

21 2013 Funding State Guarantee Mechanism Process No acceleration of payment. Guarantee calls leading to payment obligations of the States only in accordance with the normal payment schedule of the Guaranteed Obligations ( Pay as you go ) Call by any Third-Party Beneficiary or Security Holder, or any proxy holder, agent, settlement institution or trustee acting for the account of the former, on the Guarantee by simple notice delivered to each of the States within 90 days after the date of non-payment by DCL Third-Party Beneficiaries or Security Holders not required, in the context of securities and financial instruments, to exercise the Guarantee, to make any demand against DCL, to take any action against DCL or to file claims in any insolvency proceedings relating to DCL Regular guarantee payment period of 5 days for all debt issuance except USD short term funding (< 365 days) which may benefit from a shorter 3 days period Guarantee drawn up in French and in English, both languages being equally binding Guaranteed Debt outstanding to be followed on: Scope Eligible Financing : funding raised in the form of securities and financial instruments, deposits or borrowings (Deposits, CP, CD, Notes, Bonds, Loans, Interbank Overdraft and Fiduciary Deposits) Eligible Investors : Qualified Investors (as per European Directive), Qualified Institutional Buyers, Accredited Investors, Central Banks, Credit Institutions (as per European Directive), social security and assimilated organizations, state-owned enterprises, public or semi public authorities, supranational and international institutions, financial holding companies, investments firms, other approved or regulated, financial institutions, insurance companies, retirement institutions Available currencies : EUR, USD, GBP, CHF, CAD, JPY 21

22 Fixed Income Investor Presentation Contact Information 22

23 Fixed Income Investor Presentation Contact Information Long Term Funding Jean-Christophe Ricard Head of Long Term Funding & Structured Funding Tel: jean-christophe.ricard@dexia.com Franck Pibouin Long Term Funding Officer Tel: franck.pibouin@dexia.com Financial Communication Florent Masson Head of Financial Communication Tel: florent.masson@dexia.com Vincent Jacqmard Investor Relations Officer Tel: / vincent.jacqmard@dexia.com Daisy Tchikovani Long Term Funding Officer Tel: daisy.tchikovani@dexia.com Short Term Funding Hervé Foyan Djoudom Head of Cash & Liquidity Management Tel: herve.foyandjoudom@dexia.com Funding New York Olivier Benatar Funding Programs & Investor Relations Tel: olivier.benatar@dexia-us.com 23

24 Dexia Crédit Local Fixed Income Investor Presentation Appendices

25 Appendices Ratings 1 (24 August 2017) State Guaranteed Debt Dexia Crédit Local Fitch Moody s Standard & Poor s Senior Unsecured Debt Dexia Crédit Local Fitch Moody s Standard & Poor s Long term Outlook Short term AA- (P)Aa3 AA Stable F1+ P-1 A-1+ Long term Outlook Short term BBB+ Baa3 BBB Stable Stable Stable F2 P-3 Moody s Counterparty Risk (CR) Assessment Baa3(cr) P-3(cr) A-2 In our view, Dexia Crédit Local s liquidity has improved, as its government-guaranteed issuance programs let to a reduction of its dependence on exceptional funding mechanisms and central bank loans. As such, we have positively reassessed DCL s standalone credit profile to bb from b Standard & Poors 6 July 2016 DCL s BCA of b2 reflects Moody s view that the entity, which is managed in run-off mode and has avoided default thanks to the provision of extraordinary support from the governments of Belgium, France and Luxembourg is slowly and progressively improving its risk profile by de-risking its large balance sheet of EUR 230 billion at year-end 2015, while maintaining the operational continuity of the group. Moody s 18 April 2016 Regulatory capital is gradually eroded through the yearly negative net results. The 2012 capital injection had been calibrated as such to cover for the combination of reported net losses and anticipated reduction in weighted risks. Capitalisation should therefore remain sufficient if DCL s resolution goes according to plan. Fitch 15 March 2016 (1) A severity rating is not a recommendation to buy, sell or hold securities and may be subject to suspension, revision or withdrawal at any time by the assigning rating agencies 25

26 Appendices 2016 State Guaranteed Public Benchmarks State Guaranteed Benchmarks in EUR 0.75% 1.5 bn bmk due Jan 2023 Reoffer: MS +32bps Issue date: 14th Jan % 2 bn bmk due March 2021 Reoffer: MS +25bps Issue date: 16th March % 2bn bmk due Dec 2019 Reoffer: MS +13bps Issue date: 1 st June 2016 State Guaranteed Benchmarks in USD 1.875% $1.75bn bmk due Mar 2019 Reg S / 144A Reoffer: MS+83bps / T+85bps Issue date: 20th Jan % $1.25bn bmk due Sept 2021 Reg S / 144A Reoffer: MS+79bps / T+80bps Issue date: 15th Sept 2016 State Guaranteed Benchmarks in GBP 1.125% 300m bmk due Feb 2019 Reoffer: UKT 03/ bps Issue date: 3rd Mar % 500m bmk due Sept 2021 Reoffer: UKT +75bps Issue date: 5th Oct

27 Appendices 18 January 2017: 3Y USD State Guaranteed benchmark On 10th January 2017, launch of a 3-year senior unsecured guaranteed transaction under the 2013 State Guarantee Mechanism Strong investors interests, allowing to close the books with a final pricing of MS+69bps Central banks accounting for 35% of the order book, Asset Managers for 34% and Banks for 27% Issuer Key terms Dexia Crédit Local Investor by geography Investor by type Issue rating Instrument Amount Launch Settlement Aa3 / AA / AA- (Moody s / S&P / Fitch) Senior, unsecured, unsubordinated, guaranteed USD 1,500,000, January January 2017 UK & Ireland 19% EMEA 10% Asia 10% Nordic 12% Other EU 3% Swiss 5% Banks 27% Central Banks 35% Maturity Coupon R/O spread 18 January %, semi-annual MS + 69 bps / UST + 91,9 bps US 41% Asset Managers 34% Pension funds & Insurance 4% 27

28 Appendices 03 February 2017: 7Y EUR State Guaranteed benchmark On 26th January 2017, launch of a 3-year senior unsecured guaranteed transaction under the 2013 State Guarantee Mechanism Strong geographical granularity of the order book Banks accounting for 42% of the order book, Central Banks for 25% and Asset Managers for 25% Issuer Key terms Dexia Crédit Local Investor by geography Investor by type Issue rating Instrument Amount Launch Aa3 / AA / AA- (Moody s / S&P / Fitch) Senior, unsecured, unsubordinated, guaranteed EUR 2,000,000, January 2017 Southern Europe 12% France 25% Asia 10% Nordic 9% Swiss 4% UK & Ireland 3% Other 25% Banks 42% Central Banks 25% Settlement 03 February 2017 Maturity Coupon R/O spread 03 February % MS + 23 bps BeNeLux 18% Germany & Austria 30% Asset Managers 25% Pension funds & Insurance 8% 28

29 Appendices 16 May 2017: 5Y EUR State Guaranteed benchmark On 24th May 2017, launch of a 5-year senior unsecured guaranteed transaction under the 2013 State Guarantee Mechanism Great granularity of the order book Strong interest from Banks (34%), Asset Managers (32%) and Central Banks & Official Institutions (25%) Issuer Key terms Dexia Crédit Local Investor by geography Investor by type Issue rating Instrument Amount Launch Aa3 / AA / AA- (Moody s / S&P / Fitch) Senior, unsecured, unsubordinated, guaranteed EUR 2,000,000, May 2017 UK & Ireland 16% Nordics 15% Benelux 13% Asia 12% Banks 34% Central Banks & Official Institutions 25% Settlement Maturity Coupon R/O spread 02 June June % MS + 9 bps France 25% Other 1% Germany & Austria 23% Italy 6% Switzerland 3% Asset Managers 32% Pension Funds and Insurance 9% 29

30 Appendices 12 July 2017: 5Y GBP State Guaranteed benchmark On 4th July 2017, launch of a 5-year senior unsecured guaranteed transaction under the 2013 State Guarantee Mechanism High quality of the order book, in a challenging market environment Order book composed of Fund Managers (47%), Banks (32%) and Central Banks & Official Institutions (14%) Issuer Key terms Dexia Crédit Local Investor by geography Investor by type Issue rating Instrument Amount Aa3 / AA / AA- (Moody s / S&P / Fitch) Senior, unsecured, unsubordinated, guaranteed GBP 1,000,000,000 UK 76% Asia 6% Other Europe 13% Fund Managers 47% Banks 32% Launch Settlement 4 July July 2017 Switzerland 5% CB & OI 14% Maturity 15 June 2022 Coupon R/O spread 1.125% GILT + 70 bps Insurance & Pension Fund 7% 30

31 Appendices Private Placement Activity since 2015 Selection of non-benchmark State Guaranteed transactions Private Placement Activity since 2015 USD 36% 350mn tap due Nov 2024 Coupon: 1.25% Issue date: 27 th Jan mn due June 2020 Coupon: 3mEuribor+10 bps Issue date: 5 th June 2015 $575mn due June 2018 RegS / 144A Coupon: 3m$Libor+20 bps Issue date: 5 th June 2015 EUR 54% GBP 10% 500mn due Oct 2025 Coupon: 1.25% Issue date: 27 th Oct 2015 $1bn due March 2018 Coupon: 3m$Libor + 60bps Issue date: 23 rd March mn due May 2021 Coupon: 3mEuribor+40 bps Issue date: 13 th May 2016 <2 Years 22% 2-5 Years 53% 100mn tap due March 2019 Coupon: 1.125% Issue date: 13 th May mn 7-year & 20mn 8-year Coupon : 0.075% & 0.135% Issue date: 10th Oct 2016 $500mn due Feb 2019 Coupon: 3m$Libor+50bps Issue date: 15th Feb 2017 >5 Years 25% 31

32 Appendices Results H Dexia SA Net result Group share -296 m Recurring elements : -171 m EUR -85 m of taxes and contributions booked on 1 January (IFRIC 21) Strengthening of provisioning on Puerto Rico (-89 m ) Excl. exceptional items, cost trajectory under control Accounting volatility : -80 m Reflect of unfavourable market conditions Non recurring elements : -46 m Gain derived from active balance-sheet management (EUR +12 m) Negative impact of the unwinding of accounting hedging relationships on exposures to Puerto Rico, with a view to selling them (EUR -52 m) Balance sheet bn bn vs. 31/12/2016 Trend mainly driven by the reduction of asset portfolios (EUR -8.9 bn) under the effect of natural amortisation and asset disposals Decrease of fair value of assets and derivatives (EUR -6.5 bn) Decrease by EUR -3.0 bn of the cash collateral paid by Dexia Increase of cash placed with central banks (EUR +6.5 bn) Solvency 18.0% vs. 16.6% on 31/12/2016 Decrease in RWAs offsetting the impact of the phased-in deduction of the AFS reserve Solvency remaining sensitive to exogenous market parameters (mainly credit spreads) Data as at 30 June

33 Appendices Disposal Process Disposal of major franchises Status Main characteristics Dexia Bank Belgium (renamed Belfius) Closed 20/10/2011 Sale price EUR ~4 billion RBC Dexia Investor Services Closed 27/07/2012 Sale price EUR 838 million DenizBank Banque Internationale à Luxembourg Société de Financement Local Dexia Asset Management Closed 28/09/2012 Closed 05/10/2012 Closed 31/01/2013 Closed 3/02/2014 Sale price EUR 3,024 million Balance sheet reduction of EUR ~18 billion Sale price EUR 730 million Scope of disposal excluding Legacy Division assets and holdings in Parfipar and RBC Dexia Balance sheet reduction of EUR ~12 billion Disposal for 1 euro No guarantee given on assets sold Balance sheet reduction of EUR ~84 billion Sale price EUR 380 million Other disposals DKB Polska Dexia Bail Public LLD Sofaxis Domiserve ADTS Popular Banca Privada Status Closed 13/03/2013 Closed 02/04/2013 Closed 06/09/2013 Closed 30/09/2013 Closed 04/10/2013 Closed 06/12/2013 Closed 19/02/2014 Sale price EUR 13.7 million EUR 1 million EUR 0.4 million EUR 136 million EUR 2.3 million EUR 1.2 million EUR 49.2 million 33

34 Dexia Crédit Local Fixed Income Investor Presentation