Dexia Holding SA · EURONEXT:DEXB

Dexia Holding SA — Dexia Crédit Local — Debt Investor Presentation (May 2020)

30 slides from Dexia Holding SA's debt investor presentation, May 2020

  1. Slide 1: Dexia Crédit Local Fixed Income Investor Presentation

    Dexia Crédit Local Issuer with an Explicit State Funding Guarantee Fixed Income Investor Presentation May 2020

  2. Slide 2: Disclaimer

    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

  3. Slide 3: Agenda

    Fixed Income Investor Presentation Agenda Section 1 Group Profile & State Funding Guarantee Section 2 Update on the resolution Section 3 Funding & Liquidity 3

  4. Slide 4: Dexia Group Profile & State Funding Guarantee

    Fixed Income Investor Presentation Dexia Group Profile & State Funding Guarantee 1. Overview of a Group in Orderly Resolution 2. … with an explicit State Funding Guarantee 3. Pursuing the resolution beyond 2021 4

  5. Slide 5: Overview of a Group in Orderly Resolution

    Dexia Group Profile Overview of a Group in Orderly Resolution Dexia SA 99.6% State-owned banking institution in orderly resolution Status  Formerly active in financing European public local sector  Since 2012, a group in orderly resolution, as approved by the European Commission  Direct supervisi

  6. Slide 6: Dexia Revised Orderly Resolution Plan and State support

    Dexia Group Profile Overview of a Group in Orderly Resolution Dexia Revised Orderly Resolution Plan, approved by the European Commission on 28 Dec. 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 dispo

  7. Slide 7: Explicit State Funding Guarantee

    Dexia Group Profile … with an explicit State Funding Guarantee Explicit funding guarantee granted by the Belgian, French and Luxembourg States on 24 Jan. 2013 Features of the 2013 Guarantee1  Explicit State guarantee2 granted to Dexia Crédit Local and DCL New York Branch  Ceiling of EUR 85 billion

  8. Slide 8: Pursuing the resolution beyond 2021

    Dexia Group Profile Pursuing the resolution beyond 2021  Approved by the European Commission on 27 September 2019  Prolongation of the funding guarantee for a period of Prolongation of Dexia’s senior 10 years as from 1 January 2022 debt State guarantee  Guarantee ceiling: EUR 75bn, instead of EUR

  9. Slide 9: Update on the resolution

    Fixed Income Investor Presentation Update on the resolution 1. Recent Developments 2. Balance Sheet 3. Solvency 4. Portfolio Breakdown and Asset Quality 9

  10. Slide 10: Recent developments: simplification of the international network

    Recent developments Transformation of the group and reduction of the portfolio  Sale of Dexia Kommunalbank Deutschland to Helaba  Closure of the Dexia branch in Madrid Simplification of the  Transformation of the Dexia branch in New York: international network  Transfer of the asset portfolios,

  11. Slide 11: Approval of two additional asset sales programmes

    Recent developments Impact of strategic decisions resulting from the group refocusing on the IFRS 9 Business Model  Specific programme dedicated to the sale of US assets aimed at reducing the operational risk linked to the transformation of DCL New York, considering current favourable market condit

  12. Slide 12: Indicative Run Off Balance Sheet

    Dexia Crédit Local, Issuer of the Dexia Group Balance Sheet Indicative1 Run Off Balance Sheet For illustration purpose only (in EUR billion) Achieved Forecasts1 Dynamic asset disposals & natural asset amortization over the last 5 years EUR -110bn (-47%)  Sensitivity to exogenous factors, as the amo

  13. Slide 13: Solvency: Total capital ratio

    Dexia Crédit Local, Issuer of the Dexia Group Solvency Total capital ratio For illustration purpose only Achieved Forecasts1  Capital measures undertaken since 2016 aiming at enhancing capital ratios  Positive impact of IFRS 9 first time application of EUR ~2.7bn on regulatory capital in 2018 (~50

  14. Slide 14: Portfolio Breakdown and Asset Quality

    Dexia Crédit Local, Issuer of the Dexia Group Portfolio Breakdown and Asset Quality Portfolio1 distribution & maturity breakdown  Portfolio reflecting Dexia’s previous positioning as a former leader in public financing  Good asset quality overall: ~90% assets within the investment grade range  Lo

  15. Slide 15: Funding & Liquidity

    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 15

  16. Slide 16: Targeted Funding Profile

    Funding & Liquidity Targeted Funding Profile Indicative1 Consolidated Funding Mix Funding Mix For illustration purpose only Achieved Forecasts1 ■ State Guaranteed funding raised under the State guarantee scheme ■ Secured market funding (non  Balanced mix between long and short-term funding allows f

  17. Slide 17: Funding Tool Box

    Funding & Liquidity Funding Tool Box State guaranteed funding Non guaranteed Debt capital Money market Repo market markets Maturity Up to 1 year 1 to 10 years Up to 1 year Bilateral and Triparty Format Commercial Papers Bonds Repo Currencies EUR, USD, GBP, CHF, CAD, JPY Mainly EUR Issuer Dexia Crédi

  18. Slide 18: State Guarantee Issuance

    Funding & Liquidity State Guarantee Issuance Key pillar of the funding mix Current State Guaranteed funding mix  As the robustness of the explicit State Guarantee has positioned DCL as an SSA issuer, this source of funding progressively became the key pillar of the Group refinancing  Regular bond

  19. Slide 19: State Guarantee Issuance - Capital Markets Funding

    Funding & Liquidity State Guarantee Issuance - Capital Markets Funding Highlights Redemption profile of outstanding issuances  For 2020, long term funding program of EUR 4.5bn  Firm anchorage in SSA landscape due to: - Explicit State Guarantee funding - HQLA Level 1 status  Execution strategy: -

  20. Slide 20: State Guarantee Issuance - Commercial Paper programs

    Funding & Liquidity State Guarantee Issuance - Commercial Paper programs Highlights Outstanding by currency and initial duration  Objective: managing short-term liquidity  For 2020, average outstanding targeted at EUR 12.5bn  Frequent issuer in EUR, USD and GBP  Investor base : Central Banks, Of

  21. Slide 21: Contact Information

    Fixed Income Investor Presentation Contact Information 21

  22. Slide 22: Contact Information

    Fixed Income Investor Presentation Contact Information Funding & Treasury Financial Communication & Investor Relations Jean-Christophe Ricard Vincent Jacqmard Head of Funding & Treasury Investor Relations Officer Tel: +33 1 58 58 51 42 Tel: +33 1 58 58 58 53 / +32 2 213 57 66 jean-christophe.ricard@

  23. Slide 23: Appendices

    Dexia Crédit Local Issuer with an Explicit State Guarantee Fixed Income Investor Presentation Appendices

  24. Slide 24: 2013 Funding State Guarantee Mechanism

    Appendices 2013 Funding State Guarantee Mechanism Process Scope  No acceleration of payment. Guarantee calls leading to  Eligible Financing : funding raised in the form of payment obligations of the States only in accordance with the securities and financial instruments, deposits or normal payment

  25. Slide 25: Ratings

    Appendices Ratings1 State Guaranteed Debt Long term Outlook Short term Dexia Crédit Local “Dexia Credit Local is progressing well with its Fitch AA- F1+ orderly wind-down: Accelerated asset sales, combined with favorable market conditions, Moody’s (P)Aa3 Stable P-1 have helped strengthen its capital

  26. Slide 26: 2020 State Guaranteed Public Benchmarks

    Appendices 2020 State Guaranteed Public Benchmarks State Guaranteed Benchmarks in EUR 0,01% €1,5 bn bmk due Jan 2027 Reoffer: MS +8 bps Issue date: 24th Jan 2020 26

  27. Slide 27: 2019 State Guaranteed Public Benchmarks

    Appendices 2019 State Guaranteed Public Benchmarks State Guaranteed Benchmarks in EUR 0.625% €1.5 bn bmk due Jan 2026 0% €2bn bmk due May 2024 Reoffer: MS +24bps Reoffer: MS +5bps Issue date: 17th Jan 2019 Issue date: 29th May 2019 State Guaranteed Benchmarks in USD 2.875% $1.25bn bmk due Jan 2022 1

  28. Slide 28: State Guaranteed Bonds Secondary Market Levels

    Funding & Liquidity State Guaranteed Bonds Secondary Market Levels EUR USD Spread vs MS (bps) Spread vs MS (bps) 28 Source: Bloomberg

  29. Slide 29: Results FYE 2019 – Dexia SA

    Appendices Results FYE 2019 – Dexia SA  Recurring elements : EUR -28m − Net banking income at EUR -19m, reflecting an increased transformation cost and a net margin affected by persisting low interest rates − EUR -62m in regulatory taxes and contributions Net result € -898 m − Positive cost of risk

  30. Slide 30: Disposal Process

    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 Closed 28/09/2012  Sale price EUR 3,024 millio

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