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  • 1. World Leader of Public Finance General Presentation June 2005
  • 2. Contents ! Dexia within the local public finance market ! Group financial performance and targets ! Business lines ! Appendices 2
  • 3. Part One Dexia within the local public finance market
  • 4. The main markets of local public finance Outstanding debt 2003 1,240 Bn€ 514 Bn€ 1,473 Bn€ Bond Mainly Bond market and Method of financing market Bank Loans Bank loans Annual expected 4.5 % 1.5 % 4.5 % future growth rate 4
  • 5. The local public finance market The players Liability-driven Asset-driven Domestic savings L.T. lending Intermediated banks institutions Dexia Bank Dexia Crédit Local Arrangers Dexia Public Capital Mark ets Disintermediated (Munic ipal bond market) Bond Investors insurers Dexia Municipal Agency (DMA ) Dexia Hy pothek enbank Berlin (DHB) Dexia Crediop Dexia New York 5 …
  • 6. Market constituents and clients’ needs Market constituents Clients’ needs ! Municipalities ! Funding ! Regions ! Long-lasting relationship ! Social housing institutions ! Assistance to Financial/budget management ! Health care institutions ! Access to capital markets solutions ! Schools / universities ! Optimisation of debt and cost of debt ! Charities ! Public/private partnership ! Project Finance structures 6
  • 7. Dexia is the only global player to offer full range of products/services to the local public sector Debt Management Structured Loans Project Financing Payment services / Short term Insurance Services lendings Local public Local public sector sector Asset Management Long term Loans Credit Capital Markets Enhancement Solutions 7
  • 8. Dexia outperformed the market in Europe Long-term loans outstanding Europe G rou p CAGR: +1.9% p.a. CAGR: +5.9% p.a. 514 Bn€ 107 Bn€ 451 Bn€ 27 72Bn€ +11.7% p.a. 12 +4.4% p.a. 80 59 1996 1997 1998 1999 2000 2001 2002 2003 1996 1997 1998 1999 2000 2001 2002 2003 Local authorities* Local authorities* Other local play ers * Subsovereign borrowers, excluding the German Länder 8
  • 9. Key business model features ! Solvency of borrowers " Low risk asset weighting " Narrow margins " Low cost of risk ! Long-term " Annuity building business " Low revenue volatility ! Importance of funding " High credit ratings needed ! Differential advantages " A “volume” business " Innovation: new products successfully marketed in a country can be exported to others 9
  • 10. A different business model Dexia Group of the 29 first European banks 1,000 1.000 Customer loans (1,000 basis) 622 964 Risk-weighted assets B/S 587 959 Customer deposits 63 91 Shareholder Equity 4 22 Non performing loans 1,000 1.000 Revenues (1,000 basis) 559 630 Costs P&L 42 59 Cost of risk 342 211 Net income before minorities Data: FY 2004 results 10
  • 11. Profit margin * HVB Group Allianz (Banking Deutsche Bank Crédit Suisse Bank Austria Creditanstalt SP IMI CA SA ING Groep** Intesa RBOS UBS SocGen Santander ABN Amro Unicredito Average of 30 Banks Average of 30 Banks 23 % Fortis ** Barclays HSBC Lloyds BNP Paribas KBC Standard Chartered BBVA HBOS AIB Banco Popular Nordea Dexia Dexia 34 % Bank of Ireland Den Danske -25.0% -15.0% -5.0% 5.0% 15.0% 25.0% 35.0% * Profit Margin : Net income before minority interests / Total rev enue ** Bank ing activ ities only 11 Rank ing in term of mark et capitalization as of May 27th, 2005 / Data 2004, except for Bank of Ireland (Sept. 04)
  • 12. History: In 1996 CCB and CLF combined into Dexia Crédit Communal de Belgique (CCB) Crédit local de France (CLF) Lendings to Retail LT lendings local public authorities to local customer public Retail loans deposits authorities LT bond issues (52 Bn€) Bond portfolio (66 Bn€) Bond portfolio assets liabilities assets liabilities + BIL Private Banking Asset Management Fund Administration Net combined income 1996: 481 M€ 12
  • 13. Dexia primary franchise … Assets Liabilities High grade bond funding 128 Bn€ Public/Project Finance credit o/S 212 Bn€ Institutional client deposits 52 Bn€ Retail/Private Banking deposits 65 Bn€ Credit Enhancement 326 BnUS$ Asset Management 72 Bn€ (FSA) Aggregate amounts at Dec. 31, 2004 13
  • 14. Business portfolio Investment Management and Insurance Services 11% Personal Financial Services Public/Project Finance 53% 22% & Credit Enhancement 14% Treasury and Financial Markets Net income - Group share* FY 2004 : 1,822 M€ Pie chart represents segment contributions to the underlying net income – Group share in 2004 (i.e. excluding nonrecurring items & central assets), wit h changes in Business Lines segmentation 14 * i.e.under EU GAAP wit hout IAS 32 & IAS 39 and IFRS 4
  • 15. Part Two Group financial performance and targets
  • 16. A double digit growth of the Earnings Per Share Objective Reported Earnings per Share (in Eur) 2.02 1.92 (1) 1.63 CA GR CA GR CA GR: CA GR: “UNDERLYING” : : + 12.0 % p.a. “UNDERLYING” + 12.0 % p.a. + 10.1 % p.a. 1.44 (1) + 10.1 % p.a. 1.25 1.24 1.15 1.13 0.98 0.85 0.75 0.66 1996 1997 1998 1999 2000 2001 2002 2003 2004 (2) 2007 Dexia GAAP EU GAAP (1) Excluding nonrecurring items (2) Without IAS 32 & 39 and IFRS 4 16
  • 17. Dividend Per Share Gross Dividend (in Eur) Dexia France Dexia Belgium Dexia CAGR: CAGR: +11.5 % p.a. +11.5 % p.a. + 17.0% + 17.0% 0.62 0.53 0.48 0.48 0.43 0.39 0.36 0.32 0.31 0.26 1997 1998 1999 2000 2001 2002 2003 2004 17
  • 18. ROE and Tier 1 ratio 19.8% 20% 18.7% MIDTERM TARGET 18% 16.2% 16.5% 16% MIDTERM TARGET ROE 14% 12% 2002 2003 2004 Q1 2005 Dexia GAAP EU GAAP* * core ROE i.e., equity without AFS and CFH reserves 10.7% 9.3% 9.9% 9.6% Tier 1 ratio 2002 2003 2004 Q1 2005 Dexia GAAP EU GAAP 18
  • 19. Return on risk-weighted assets (RORWA)* 2% 1.76% 1.50% 1.30% 1.40% 1.50% 1.32% 1.23% 1% 1.01% 0% 2001 2002 2003 2004 Dexia Peer group** * The ratio between the net income including minority interests and the average risk-weighted assets ** Peer Group: Abn-A mro, Barclays Bank, HVB Group, BBVA, BNP Paribas, Crédit Lyonnais then CA SA, Deutsche Bank, Allianz (Banking activities), Fortis, KBC, ING Groep, Lloyds TSB, Nordea, Société Générale, SP IMI (estimates) 19 *** FY 2004 data for Peer Group Source Company Reports
  • 20. Cost/income ratio (%) 59.0 58.9 59.2 Objective 55.9 54.0 52.6 2001 2002 2003 2004 Q1 2005 * 2007 * under Dexia GAAP under EU GAAP * Excluding nonrecurring items 20
  • 21. Cost of risk related to total net O/S commitments (in basis points) 2.5 1.2 1.2 Credit 0.4 0.7 0.6 0.6 0.6 0.5 enhancement 12.2 * 9.8 * 7.8 6.4 6.6 5.7 * Banking 2.2 1.8 * activities 0.8 * 1997 1998 1999 2000 2001 2002 2003 2004 Q1 2005 For Credit Enhancement activities, Cost of Risk relates to net par outstanding insured 21 * Excluding impact of charges for Legio Lease at Dexia Bank Nederland
  • 22. Summary of P&L under EU GAAP (IFRS as endorsed by EU Commission) ∆ Q1 04/ Evolution of (M€) 2004 (1) Q1 2004 (1) Q1 2005 Q1 05 underlying (2) Income 5,629 1,458 1,453 - 0.3% + 5.1% Costs - 3,064 -743 - 773 + 4.1% + 5.9% Gross operating income 2,565 715 680 - 4.9% + 4.1% Cost of risk - 226 - 14 - 90 x 6.6 Tax expense - 429 - 150 - 101 - 33.0% Other items -88 - 32 - 14 n.s. Net income – Group share 1,822 519 475 - 8.6% + 12.0% (1) Without IAS 32 & IAS 39 and IFRS 4 (2) Based on pro forma accounts, excluding nonrecurring items 22
  • 23. Part Three Business lines # Public/Project Finance and Credit Enhancement # Personal Financial Services # Investment Management and Insurance Services # Treasury and Financial Markets
  • 24. Public/Project Finance & Credit Enhancement This business line covers: • Municipal Finance • Project Finance • Corporate Lending • Credit Enhancement (FSA) 2004 53% Underlying* net income FY 2004: 884 M€ Q1 2005: 238 M€ * Excluding nonrecurring items 24
  • 25. Geographical origin of the net income* Other Other (mainly (mainly Europe) Europe) 16% 16% America America 6% 6% France ++ France Benelux Benelux Dexia NY 50% FSA 50% • Long and short-term FSA • Liquidity facilities 28% 28% financing to the public sector • Project Finance • Other financial services to the • Bond portfolio public sector FSA • Credit Enhancement – Muni • Project Finance and • Credit Enhancement – ABS Corporate Lending * Underlying net income in 2004 25
  • 26. A robust “single-digit” revenue growth (M €) 2,043 1,877 1,793 1,716 884 790 724 634 2001 2002 2003 2004 under Dexia GAAP under EU GAAP Revenue Net income - Group share 26
  • 27. Growth of outstandings stems mainly from new markets… Long-Term outstandings (Bn€) CAGR 2001-2004 +8.5% 193.0 177.7 167.1 26.8 +15.5% America 151.2 24.1 21.1 17.4 80.7 +14.0% Other countries 65.7 71.4 54.5 France + Belgium 79.3 80.3 82.2 85.5 +2.6% 2001 2002 2003 2004 27
  • 28. … and from “other local players” in historic markets (France & Belgium) Long-Term outstandings CAGR 2001-2004 (Bn€) +2.6% 85.5 79.3 80.3 82.2 5.8 - 5.9% 6.9 6.7 6.9 Corporate and 19.2 +10.8% 14.1 14.8 16.7 Project Finance Other local players Local Authorities +1.3% 58.3 58.6 58.8 60.6 2001 2002 2003 2004 28
  • 29. FSA’s credit enhancement: a high growth business Net par outstanding CAGR 2001 - 2004 International asset-backed obligations +14.5% 326 International municipal obligations +9.4% U.S. asset-backed obligations 294 32 U.S. Muni obligations 8 +43.6% (Bn US$) 266 38 34 6 +4.1% 5 98 217 25 86 3 95 87 +22.1% 187 165 133 103 2001 2002 2003 2004 29
  • 30. Since the merger with Dexia, FSA’s adjusted book value has grown at a high double digit rate $ per Share Adjusted book value $110 pre-merger post-merger CAGR 1999-2004* $100 ABV: 16.7% BV: 15.8% $90 $80 Book value $70 $60 $50 $40 $30 $20 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Adjusted book value (ABV) per share of $110.90 at December 31, 2004 = Book value of $76.76 + after-tax net deferred premium revenue, net of deferred acquisition cost, of $21.25 + PV of future installment premiums and net interest margin of $13.83 – fair-value adjustments for insured credit default swaps of $.94. * Growth rates include dividends 30
  • 31. Public/Project Finance & Credit Enhancement Underlying* P&L (M€) Full Year 2004** Q1 2005 Income 2,043 539 Costs - 693 - 180 Gross operating income 1,351 359 Cost of risk - 30 +1 Tax expense - 394 - 113 Other items - 43 -9 Net income – Group share 884 238 Cost-income ratio 33.9% ROEE*** 22.8% * Based on pro forma accounts; excluding nonrecurring items; under EU GAAP (IFRS as endorsed by EU Commission) ** Without IAS 32, IAS 39 and IFRS 4 31 *** Return on economic equity = net income – Group share / allocated equity
  • 32. Public/Project Finance & Credit Enhancement Strategy and outlook Development largely driven by organic growth Innovation Innovation Based on Broadening of client base Broadening of client base Geographic expansion Geographic expansion leading to High single digit annual growth of Underlying Gross Operating Income* * Objective of the 3-year plan 2004-2007 disclosed at Investor Day 11.02.05 32
  • 33. Personal Financial Services This business line covers: • Retail banking • Private banking 2004 22% Underlying* net income FY 2004: 372 M€ Q1 2005: 101 M€ * Excluding nonrecurring items 33
  • 34. Dexia : a key player in asset gathering, mainly in Belgium and Luxembourg Volumes outstanding in Bn€, at 31/03/2005 119.6 of which 8.2 38.4 Private 55.6 banking 81.2 26.7 Retail 55.8 banking 18.0 2.5 6.1 Loans to retail customers Life insurance technical reserves Loans to professionals & SME’s Off-balance sheet products (Mutual funds, direct securities, …) 34 Loans to private banking customers Balance Sheet products (Deposits, savings bonds, …)
  • 35. An on-going shift from B/S products towards non B/S products in retail customers assets Volumes outstanding in Bn€ Dexia Bank alone Dexia Bank + Artesia 88 80 82 79 31 35% 24 26 24 57 59 53 49 15 10 14 12% 6 56 55 56 57 43 43 44 45 1997 1998 1999 2000 2001 2002 2003 2004 Off-balance Sheet products (Mutual funds, Life insurance,…) Balance Sheet products (Deposits, Savings Bonds, …) 35
  • 36. Domestic market shares in Belgium (at Dec. 2004) Savings bonds Savings accounts Mutual funds Dexia market share: 23.0% 16.2% 19.6% Mortgages Consumer loans Dexia market share: 15.3% 18.3% 36
  • 37. Personal Financial Services Streamlining the branch network after acquiring Artesia in 2001 Number of branches in Belgium 1,483 -21% -21% 1,167 940 868 543 299 2001 2002 2003 2004 March 2005 Employee network Independent agents network 37
  • 38. Personal Financial Services Underlying* P&L (M€) Full Year 2004** Q1 2005 Income 2,164 547 Costs - 1,577 - 393 Gross operating income 586 154 Cost of risk - 35 -9 Tax expense - 180 - 44 Other items +1 0 Net income – Group share 372 101 Cost-income ratio 72.9 % ROEE*** 21.7 % * Based on pro forma accounts; excluding nonrecurring items; under EU GAAP (IFRS as endorsed by EU Commission) ** Without IAS 32, IAS 39 and IFRS 4 *** Return on economic equity = net income – Group share / allocated equity 38
  • 39. Personal Financial Services Strategy and outlook ! Finalize the integration of Artesia, and the restructuring of the distribution networks in Belgium ! Deploy commercial action in Belgium - increase wallet-share ! Fully exploit the synergies between Retail and Private Banking leading to Annual growth of underlying Gross Operating Income in excess of 10%* Underlying Cost/Income Ratio down from 73% in 2004 to 68% in 2007 * Objective of the 3-year plan 2004-2007 disclosed at Investor Day 11.02.05 39
  • 40. Investment Management And Insurance Services (IMIS) This business line covers: • Asset Management • Fund Services • Insurance 2004 11% Underlying* net income FY 2004: 179 M€ Q1 2005: 58 M€ * Excluding nonrecurring items 40
  • 41. Investment Management and Insurance Services Underlying* Gross operating income 2004 Insurance 32% Asset Fund Management Services 38% 30% Underlying* Gross operating income FY 2004: 251 M€ * Excluding nonrecurring items 41
  • 42. Dexia Asset Management Assets by type of management (Bn€) CAGR 75.7 + 15.1% 71.5 Institutional mandates 62.2 18.7 18.4 55.1 14.9 3.7 Private clients discretionary 3.8 mandates 11.2 4. 0 4.1 Mutual funds (ret & instit. ) 53.3 49.3 43.4 39.8 2002 2003 2004 Q1 2005 42
  • 43. Investment Management and Insurance Services ! Fund services Capital managed at end Net Asset Valuations Assets managed of period (Bn€) (x 1000) end of period (Bn€) 354 363 320 403 309 152 382 167 Other* 202 153 Mandates to DFS Q1 Q1 March March March March 2004 2005 2004 2005 2004 2005 Custody Central Administration Transfer Agent * Dexia-BIL group only; excludes other units of Dexia 43
  • 44. Investment Management and Insurance Services ! Insurance premiums 3,003 of which (M€) 397 PFS 78 % 2,363 317 1,754 281 Non life IMIS 2,606 8% 2,046 Life 1,473 PPF 14 % 2002 * 2003* 2004 * As previously published for the first and second business lines and excluding direct business of IMS (previous segmentation) 44
  • 45. Investment Management and Insurance Services Underlying* P&L (M€) Full Year 2004** Q1 2005 Income 630 168 Costs - 379 - 98 Gross operating income 251 69 Cost of risk -1 0 Tax expense - 63 - 10 Other items -9 -1 Net income – Group share 179 58 Cost-income ratio 60.1 % ROEE*** 24.7 % * Based on pro forma accounts; excluding nonrecurring items; under EU GAAP (IFRS as endorsed by EU Commission) ** Without IAS 32, IAS 39 and IFRS 4 45 *** Return on economic equity = net income – Group share / allocated equity
  • 46. Investment Management and Insurance Services Strategy and outlook ! Asset Management ! Target strong growth of assets ! Fund Services ! Continue to develop Luxembourg and international operations ! Keep on improv ing productiv ity ! Insurance ! Develop Life Insurance activities ! Pursue the reorganisation of the activ ity Leading to Annual growth of underlying Gross Operating Income in excess of 10%* Further improvement of the underlying C/I Ratio * Objective of the 3-year plan 2004-2007 disclosed at Investor Day 11.02.05 46
  • 47. Insurance Activities* at Group level: Contribution of the Business Lines to the Revenues Underly ing in M€ Q1 2005 revenues from Insurance: 115 M€ Public/Project Finance 51% 5% Personal Financial Services 44% Investment Management and Insurance Services * Excluding FSA (credit enhancement) and Dexia Sofaxis (specialist brokerage) 47
  • 48. Treasury and Financial Markets 2004 Underlying* net income FY 2004: 231 M€ 14% Q1 2005: 82 M€ * Excluding nonrecurring items 48
  • 49. Treasury and Financial Markets Missions and key figures ! Missions ! Long and short-term funding ! Liquidity ! Financial markets desks (Foreign Exchange, Financial Engineering and Derivatives, fixed income…) ! Key figures ! L.T. debt issued in 2004: 29 Bn€ ! CSP outstanding at 31/12/04: 44 Bn€ ! S.T. debt outstanding at 31/12/04: 24 Bn€ ! Q1 2005 underlying net income – Group share stems from: ! Credit Spread Portfolio: 54 % ! Money Market activities: 24 % ! Financial Derivatives: 11 % ! Other activities (securitization, fixed income, …): 11 % 49
  • 50. Treasury and Financial Markets Underlying* P&L (M€) Full Year 2004** Q1 2005 Incom e 449 138 Costs - 163 - 42 Gross operating income 287 95 Cost of risk + 20 +1 Tax ex pense - 73 - 13 Other items -2 -1 Net income – Group share 231 82 Cost-incom e ratio 36.2 % ROEE*** 25.9 % * Based on pro forma accounts; excluding nonrecurring items; under EU GAAP (IFRS as endorsed by EU Commission) ** Without IAS 32, IAS 39 and IFRS 4 50 *** Return on economic equity = net income – Group share / allocated equity
  • 51. Treasury and Financial Markets Strategy and outlook ! Develop, through permanent innovation, the offer of Market products to the commercial Business Lines and Group Treasury Functions ! Support the growth of Group’s balance sheet ! Optimize the use of allocated equity by maintaining a cautious risk/return balance Leading to Mid single digit annual growth of Gross Operating Income* * Objective of the 3-year plan 2004-2007 disclosed at Investor Day 11.02.05 51
  • 52. Appendices
  • 53. 12 € 13 € 14 € 15 € 16 € 17 € 18 € 19 € 2/01/2004 16/01/2004 30/01/2004 13/02/2004 27/02/2004 12/03/2004 26/03/2004 9/04/2004 2004 23/04/2004 7/05/2004 21/05/2004 Stock Performance 4/06/2004 average Dexia 18/06/2004 2/07/2004 16/07/2004 30/07/2004 13/08/2004 27/08/2004 10/09/2004 24/09/2004 8/10/2004 22/10/2004 EuroStoxx Banks 5/11/2004 19/11/2004 3/12/2004 Stock Pe rfor mance of Dexia from January 2, 2004 17/12/2004 31/12/2004 14/01/2005 28/01/2005 11/02/2005 25/02/2005 11/03/2005 EuroStoxx 50 2005 25/03/2005 8/04/2005 22/04/2005 6/05/2005 53 20/05/2005 27/05/2005
  • 54. Total shareholder return Value in € at 27/05/2005 of 1,000 € invested* on November 20, 1996 on September 19, 1999 (day before creation of Dexia) (day before merger Dexia France and Dexia Belgium) 3,265 2,816 2,143 2,049 2,013 1,475 1,221 1,100 987 908 CAC 40 EuroStoxx 50 BEL 20 EuroS tox x Dex ia CAC 40 EuroStox x50 BEL 20 EuroStox x Dexia Ba nks Banks * With dividends reinvested, calculated with Dexia share at 17.84 € 54
  • 55. Dexia ranking in Euroland (market capitalisation) 27/05/2005 (Bn€) 1 SA NTA NDER Central Hispano 57,8 2 ING Groep 50,0 3 BNP Paribas 49,7 4 BBVA 42,6 5 ALLIA NZ DRESDNER 36,4 6 SOCIETE GENERA LE 36,1 7 ABN AMRO 34,6 8 DEUTSCHE BANK R 34,0 9 CREDIT A GRICOLE 30,9 10 FORTIS 28,6 11 UNICREDITO ITALIA NO 26,0 12 KBC GROUPE 23,5 13 INTESA BCI 21,8 14 NORDEA 21,2 15 DEXIA 19,5 16 SA N PAOLO IMI 16,5 17 BA YERISCHE HYPO & VEREINSBANK 14,9 18 ALLIED IRISH BA NKS 14,6 19 BA NK OF IRELAND 12,1 20 BCO POPULA R ESPANOL 11,8 21 BA NK AUSTRIA CREDITANSTA LT 11,6 55
  • 56. Main stock indexes including the Dexia stock $ Euronext 100 $ CAC 40 $ BEL 20 $ Dow-Jones Stoxx & EuroStoxx $ FTSE Eurotop 100 $ FTSEurofirst80 $ MSCI $ Next CAC 70 $ Dexia is also included in 4 “Sustainable Growth” indexes: $ DJ Sustainability Index “World”, $ ASPI Eurozone, $ FTSE 4 Good “Europe” and “Global” $ Ethibel Sustainability Index (ESI) “Europe” and “Global” 56
  • 57. Shareholders’ base at May 11, 2005 Total number of shares outstanding: 1,093,374,501(1) Arcofin (2) 16.5% Holding Communal (2) Groupe CDC (incl. CNP) (2) 45.8% 16.2% Ethias (2) Staff and Management (2) Treasury Shares 9.7% 6.8% Others 5.0% 0.1% (1) after cancellation of 51,886,865 shares on May 11, 2005 57 (2) Data March 31, 2005
  • 58. Credit ratings of main subsidiaries S&P Moody’s Fitch Dexia Crédit Local AA Aa2 AA+ Dexia Bank Belgium AA Aa2 AA+ Dexia BIL AA Aa2 AA+ Dexia Municipal Agency AAA Aaa AAA FSA AAA Aaa AAA 58
  • 59. New segmentation as from January 1, 2005 Investment Retail Financial Management Services Services Public & Project becomes becomes Treasury and Finance Financial Markets Central (PPF) Assets Personal Financial Investment (TFM) Services Management and (PFS ) Insurance services (IM IS) Share-Leasing Public/Project Finance Retail Asset Management CSP (DBNL) Credit Fund Private Banking MM Enhancement Administration Insurance Others % FED % Forex % Fixed income % Securitization % Equity Related Services 59
  • 60. New accounting standards: IFRS & Starting equity base at 01.01.05 increases by 1.9 Bn€ to 12.4 Bn€ at 01/01/05, mainly due to & GBBR & Impact of IAS 32 & IAS 39 & IFRS 4 & Use of European Hedge Portfolio (« Carve-out ») allows no radical change in ALM policies and procedures, and should not materially change volatility of earnings from 2005 onwards & Some activities will generate some « accounting noise » ' CDS’s at FSA in the P&L ' Some Treasury and Financial Market mostly in the Reserves & New calculation of Regulatory Capital Ratios lead to tier 1 ratio of 9.6% (at 31/03/05). 60
  • 61. Economic Capital: a new method implemented in 2005 The amount of economic capital may change from time to time ! with continuing refinements of the risk measurement methodology (Bn€) Total reg. Capital 11.5 0.9 Tier One Capital 10.6 8.8 8.7 8.5 -2.7 +2.0 +0.6 Basel II Basel II Basel II Pillar 1 Pillar 1 Net impact of (all Pillar 1 (at Dexia IC*) other risks** risks included) Basel I Economic Economic Current « Cooke » Capital Capital Regulatory 8% capital 30/06/04 31/03/05 * IC: 99.97% ** Insurance; business; behavioral; diversification impact deducted 61
  • 62. Contacts Robert Boublil Director of Investor Relations Investor Relations Officers: Peter de Baere (Brussels) Anne Garsoux (Brussels) Jim Root (Paris) Christian Daumann (Paris) Tel: +32 2 213 57 46 Tel: +32 2 213 57 49 Tel: +33 1 43 92 83 93 Tel: +33 1 43 92 82 54 Fax: +32 2 213 57 80 Fax: +32 2 213 57 80 Fax: +33 1 43 92 71 07 Fax: +33 1 43 92 71 07 peter.debaere@dexia.com anne.garsoux@dexia.com jim.root@dexia.com christian.daumann@dexia.com 62