Dexia Holding SA · EURONEXT:DEXB

Dexia Holding SA — Investor Presentation (February 2010)

28 slides from Dexia Holding SA's investor presentation, Feb 8, 2010

  1. Slide 1: Positive Outcome from European Commission Negotiations

    Positive Outcome from European Commission Negotiations Presentation to analysts and investors February 8, 2010 Pierre Mariani, CEO Philippe Rucheton, CFO

  2. Slide 2: Disclaimer

    Disclaimer This presentation and the information contained herein are provided for information purposes only and may not be complete. It does not constitute an offer to sell or the solicitation to buy any securities issued by Dexia or any entity of the Dexia Group. This presentation may include futu

  3. Slide 3: Agenda

    Agenda † Outcome from EC discussions † Dexia’s restructuring plan approved by the EC † Dexia’s deleveraging program backed up † Cost control efforts confirmed † Additional measures required † Dexia going forward † Short-term: earlier than anticipated exit from State guarantee scheme on funding † Sho

  4. Slide 4: Common Understanding, Shared with the EC, of Dexia's Imbalances

    Common Understanding, Shared with the EC, of Dexia’s Imbalances Reliance on wholesale Developments far from High exposure to the US debt markets & core markets market excessive leverage Presence in markets with EUR 158 bn bond portfolio Exposure to the US no relevant commercial built as part of the

  5. Slide 5: Acknowledgement of the Significant Achievements in Dexia's Transformation Plan

    Acknowledgement by the EC of the Significant Achievements in Dexia's Transformation Plan 1 Run-off of selected PWB international positions and reduction of production to EUR 12 bn in 2009 vs. EUR 52 bn in 2008 Sale of Crédit du Nord, Dexia Epargne Pension (agreement) Priority given EUR 16.5 bn of bo

  6. Slide 6: Agenda

    Agenda † Outcome from EC discussions † Dexia’s restructuring plan approved by the EC † Dexia’s deleveraging program backed up † Cost control efforts confirmed † Additional measures required † Dexia going forward † Short-term: earlier than anticipated exit from State guarantee scheme on funding † Sho

  7. Slide 7: Recognition of the Ability to Deliver on Deleveraging Program

    Recognition by the EC of the Ability to Deliver on Deleveraging Program Forward Looking Statement EUR 191 bn -29 EUR 162 bn -82 Bond portfolio in 158 -24 run-off 134 (o/w 16.5 bn sales) EUR 80 bn -72 62 Financial Products 12 -1 11 -4 Non core 7 21 -4 17 -7 public loans 10 2008 2009e 2014e Classifica

  8. Slide 8: Legacy Division Assets: Low Risk or Covered by Existing State Guarantee Scheme

    Legacy Division Assets: Low Risk or Covered by Existing State Guarantee Scheme Non-core public loans Financial Products Portfolio Bond Portfolio in Run-Off EUR 17 bn EUR 11 bn EUR 134 bn Sweden, Public US, 1% 14% Agency Covered Other, 9% sector, Switz., debt, 24% bonds, Mexico, 30% public 9% 6% rela

  9. Slide 9: Allocation of a Clear Funding Structure to Legacy Assets

    Allocation of a Clear Funding Structure to Legacy Assets Forward Looking Statement EUR 162 bn EUR 162 bn 11 17 • All State guaranteed funding Long allocated to Legacy assets term • LT funding / Total liabilities: ~30% • LT funding/ Assets below A-: Short 134 ~200% term • Available Repo capacity/ ST

  10. Slide 10: Agenda

    Agenda † Outcome from EC discussions † Dexia’s restructuring plan approved by the EC † Dexia’s deleveraging program backed up † Cost control efforts confirmed † Additional measures required † Dexia going forward † Short-term: earlier than anticipated exit from State guarantee scheme on funding † Sho

  11. Slide 11: Recognition of the Ability to Deliver Cost Reductions

    Recognition by the EC of the Ability to Deliver Cost Reductions Cost reductions above target in 2009 EUR m Restructuring 4,119 3,844 charges c. 3,500 FSA -200 c. 3,250 c. -150 (EUR 101 m) -250 Recurring costs 2008 2008 2009 savings Extra savings 2009e Additional 2011e incl. FSA and excl. FSA and ann

  12. Slide 12: Agenda

    Agenda † Outcome from EC discussions † Dexia’s restructuring plan approved by the EC † Dexia’s deleveraging program backed up † Cost control efforts confirmed † Additional measures required † Agreed sales of activities † Restrictions on dividends, hybrids and acquisitions † Dexia going forward † Sho

  13. Slide 13: Recognition of the Significant Disposals Already Completed in 2008 and 2009

    Recognition by the EC of the Significant Disposals Already Completed in 2008 and 2009 K. Austria Epargne Pension EUR bn 2008 USD bn 2008 EUR bn 2008 EUR bn 2008 Partner in CEE US monoline insurer Retail France Life insurance France Total assets 37.5 Insured 408 Total assets(1) 40.7 Total assets 5.3

  14. Slide 14: Divest Crediop, Dexia Sabadell and Dexia Banka Slovensko in the Next Three Years

    Divest Crediop, Dexia Sabadell and Dexia Banka Slovensko in the Next Three Years Crediop Banka Slovensko EUR m 2008 EUR m 2008 EUR m 2008 Total assets 58,779 Total assets 15,799 Total assets 2,723 Weighted risks 4,918 Weighted risks 2,925 Weighted risks 1,409 Market share Market share Market share „

  15. Slide 15: Agenda

    Agenda † Outcome from EC discussions † Dexia’s restructuring plan approved by the EC † Dexia’s deleveraging program backed up † Cost control efforts confirmed † Additional measures required † Agreed sales of activities † Restrictions on dividends, hybrids and acquisitions † Dexia going forward † Sho

  16. Slide 16: Restriction on Dividends, Hybrids and Acquisitions for the Next Two Years

    Restriction on Dividends, Hybrids and Acquisitions for the Next Two Years Until 31 December, 2011 „ Dexia will not make any acquisition of financial institutions „ Dexia will be able to pay dividends on common equity in shares only, conditioned to Tier 1 requirements commitments „ Dexia will pay cou

  17. Slide 17: Agenda

    Agenda † Outcome from EC discussions † Dexia’s restructuring plan approved by the EC † Dexia’s deleveraging program backed up † Cost control efforts confirmed † Additional measures required † Dexia going forward † Short-term: earlier than anticipated exit from State guarantee scheme on funding † Sho

  18. Slide 18: Important Decrease of Short Term Funding Need in 2009

    Important Decrease of Short Term Funding Need in 2009 Evolution of Group’s short term funding need Overall decrease of short term funding need in 2009 Rebased on 100 Lengthening of maturity profile of group’s 110 debt: EUR 46 bn medium and long term funds raised in 2009 100 Total short term funding

  19. Slide 19: Significant Decrease in Use of Guaranteed Debt

    Significant Decrease in Use of Guaranteed Debt Guaranteed debt outstandings Sizeable decrease of short term guaranteed funding EUR bn Orderly exit of contracts below 1 month Peak: EUR 95 bn Cap from the guarantee on October 16th, 100 2009 80 Overall decrease of Group’s short term funding need EUR 60

  20. Slide 20: Early Exit from State Guarantee: June 2010 vs. October 2010 initial Target

    Early Exit from State Guarantee: June 2010 vs. October 2010 initial Target Forward Looking Statement Projected guaranteed debt outstandings End all issue of EUR bn short term guaranteed debt as 100 early as 31 May, 2010 80 60 EUR 53 bn End all issue of Short 40 term short term and long term guarante

  21. Slide 21: Agenda

    Agenda † Outcome from EC discussions † Dexia’s restructuring plan approved by the EC † Dexia’s deleveraging program backed up † Cost control efforts confirmed † Additional measures required † Dexia going forward † Short-term: earlier than anticipated exit from State guarantee scheme on funding † Sho

  22. Slide 22: Commitment to Pursue Improvement of Funding Structure

    Commitment to Pursue Improvement of Funding Structure Rapid decrease of Central Bank funding Base 100 as of 31/12/2008 Commitments in line with efforts achieved to date 100 86 Strong reduction of short term guaranteed funding 57 Strong reduction of Central 52 47 bank repos Increase of LT funding par

  23. Slide 23: Agenda

    Agenda † Outcome from EC discussions † Dexia’s restructuring plan approved by the EC † Dexia’s deleveraging program backed up † Cost control efforts confirmed † Additional measures required † Dexia going forward † Short-term: earlier than anticipated exit from State guarantee scheme on funding † Sho

  24. Slide 24: A Refocused Balance Sheet, Reduced to ~EUR 430 bn by 2014

    A Refocused Balance Sheet, Reduced at ~EUR 430 bn by 2014 (-35% vs. 2008) Forward Looking Statement 1/3 of 6-year total target achieved in 1 year -71 EUR 651 bn Agreed sales of 57 -150 -13 EUR 580 bn Activities(1) 44 -44 Legacy 191 division -29 162 EUR 430 bn (o/w 16.5 bn bond sales) -82 80 Core div

  25. Slide 25: A Soundly Funded Balance Sheet, with Limited Reliance on Short-Term Funding

    A Soundly Funded Balance Sheet, with Limited Reliance on Short-Term Funding Forward Looking Statement Indicative 2014 Balance Sheet Significantly reduced reliance on short term funding EUR bn Large part of Group funding based 651 on stable and/or long term 580 resources ~40% Covered bonds ~30% 430 „

  26. Slide 26: An Ability to Maintain High Level Core Tier 1 Ratio

    An Ability to Maintain High Level Core Tier 1 Ratio Evolution of Tier 1 & core Tier 1 ratio Strong solvency: 11.8% Tier 1 ratio and 10.8% Core Tier 1 11.3% 11.8% 10.6% 10.7% ratio as of Q309 13.4% 10.8% Commitment to condition 9.6% 9.8% 10.4% dividend distribution to a conservative Core Tier 1 ratio

  27. Slide 27: Dexia Refocused on its Historical Franchises with an Increased Weight of Retail Activities

    Dexia Refocused on its Historical Franchises with an Increased Weight of Retail Activities Retail & Commercial Banking Belgium & Lux. Indicative 2014 Revenues „ Leading positions with profitability improvement potential - Core Divisions - „ In Belgium: initiatives to align cost/income ratio with com

  28. Slide 28: Investor Day in second quarter of 2010

    In second quarter of 2010: Dexia’s Investor Day to introduce partition between Legacy and Core Divisions and review detailed strategies on each Core businesses

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