Dexia Holding SA · EURONEXT:DEXB
Dexia Holding SA — Dexia Crédit Local — Debt Investor Presentation (April 2023)
26 slides from Dexia Holding SA's debt investor presentation, April 2023
Slide 1: Dexia Crédit Local Fixed Income Investor Presentation
Dexia Crédit Local Issuer with an Explicit State Funding Guarantee Fixed Income Investor Presentation April 2023
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
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
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 2022 4
Slide 5: Dexia Group Profile: 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 ▪ Supervision with
Slide 6: 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
Slide 7: Extended Explicit State Funding Guarantee
Dexia Group Profile … with an extended explicit State Funding Guarantee granted by the Belgian and French States Features of the 2022 Guarantee ▪ Explicit State guarantee1 granted to Dexia Crédit Local ▪ Ceiling of EUR 75 billion in principal2 of which EUR 72 billion to cover the Group's debt issues
Slide 8: 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 8
Slide 9: Recent developments: Progress in the orderly resolution
Recent developments Progress in the orderly resolution ▪ Progress with the simplification of the entities network ▪ Ongoing simplification of the French leasing subsidiaries and of the US entities ▪ Implementation of the merger by absorption of Dexia Crediop by Dexia Crédit Local by September 2023 N
Slide 10: Indicative Run Off Balance Sheet
Dexia Group Balance Sheet Indicative1 Run Off Balance Sheet For illustration purpose only (in EUR billion) Achieved Forecasts1 ▪ Sensitivity to exogenous factors, as the amount of cash collateral posted and fair value items may be impacted by interest rate and exchange rate movements. Balance sheet
Slide 11: 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
Slide 12: 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
Slide 13: 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 13
Slide 14: 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
Slide 15: 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
Slide 16: 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
Slide 17: State Guarantee Issuance - Capital Markets Funding
Funding & Liquidity State Guarantee Issuance - Capital Markets Funding Highlights Redemption profile of outstanding issuances ▪ For 2023, long term funding program of EUR 1.9bn ▪ Firm anchorage in SSA landscape due to: - Explicit State Guarantee funding - HQLA Level 1 status ▪ Execution strategy: -
Slide 18: 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 2023, average outstanding targeted at EUR 7bn ▪ Frequent issuer in EUR, USD and GBP ▪ Investor base : Central Banks, Offic
Slide 19: Contact Information
Fixed Income Investor Presentation Contact Information Funding & Treasury Communication & Investor Relations Jean-Christophe Ricard Fabienne Carlier Head of Funding & Treasury Head of Communication & Investor Relations Tel: +33 1 58 58 51 42 Tel: +32 2 213 57 39 jean-christophe.ricard@dexia.com fabi
Slide 20: Appendices
Dexia Crédit Local Issuer with an Explicit State Guarantee Fixed Income Investor Presentation Appendices
Slide 21: 2013 and 2022 Funding State Guarantee Mechanism
Appendices 2013 and 2022 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 norma
Slide 22: Ratings
Appendices Ratings1 State Guaranteed Debt Long term Outlook Short term “The stable outlook reflects our expectation Dexia Crédit Local that the bank will implement an orderly wind- down of its operations and continue to benefit Fitch AA- F1+ from the strong commitment of the Belgian and French gover
Slide 23: 2021 & 2022 - Government Guaranteed Public Benchmarks
Appendices 2021 & 2022 - Government Guaranteed Public Benchmarks Government Guaranteed Benchmarks in EUR Government Guaranteed benchmarks in USD Government Guaranteed benchmarks in GBP 23
Slide 24: State Guaranteed Bonds Secondary Market Levels
Funding & Liquidity State Guaranteed Bonds Secondary Market Levels EUR USD Spread vs MS (bps) Spread vs SOFR (bps) 24 Source: Bloomberg
Slide 25: 2022 Results – Dexia
Appendices 2022 Results – Dexia ▪ Recurring elements : EUR -260 m ▪ Improvement of the net interest margin of EUR +10 m compared to 31 Dec 2021, to EUR +47 m, mainly due to the decrease in cash collateral, induced by the rise of the interest rates, favourable for the transformation result Net result
Slide 26: 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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