Luxembourg is an international hub for financial services. It is the leading investment fund center in Europe and leading wealth management center in the Eurozone. Financial services make up 45% of Luxembourg's GDP. Luxembourg has competitive advantages due to its highly skilled multi-lingual workforce, political and economic stability, and membership in the EU which allows passporting of financial services.

1. Luxembourg, THE international hub for financial services By Fernand Grulms CEO Luxembourg for Finance

3. Financial services made in Luxembourg 45 % of GDP (= 16 BIO EUR) Law firms Audit, Tax Banks, Other financial Intermediaries, Insurance 44,000 ICT Other 27,000

4. Luxembourg is one of the most competitive economies in Europe…. and in the World !

5. International competitiveness indicators Name of Index Source Luxembourg ranking Number of participants Growth environment score Goldman Sachs 1 170 Global competitiveness Index IMD Lausanne 5 55 International Business costs KPMG 5 121 Index of Economic Freedom Heritage Foundation 8 157 Safest city in the world Mercer Human Resources Consulting 1 215

8. Luxembourg, an international platform

9. Luxembourg, an international platform

10. Luxembourg, an international platform Direct investment in flows OECD countries (2006)

11. Luxembourg, an international platform Direct investment out flows OECD countries (2006)

14. Institutional organisation Minister for the Treasury Commission for the supervision of the financial sector Insurance Commission Luxembourg central bank Macro supervision Systemic risk Liquidity Payment systems Banks Financial intermediaries Securities markets Investment funds Pension funds Other vehicles Life insurance P & C insurance Reinsurance Captives Pension funds

17. Origin of banks in Luxembourg

18. Free provision of services in the EU

19. Cross-border finance: insurance Life Crossborder 83.9% Life Luxembourg 4.4% Non life crossborder 6.3% Non Life Luxembourg 5.4% Source: Commissariat aux Assurances 2007 Total: € 12.44 billions

20. Life insurance: origin of premiums Source: Commissariat aux Assurances 2007

21. Luxembourg a sound financial centre S olvency ratio since 1990 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Weighted average 8.9 10.3 11.2 11.5 12.1 12.6 12.5 12.4 12.4 13.3 12 12.7 14.3 16.5 16.5 15.2 14.7 14.5

25. Strategic re-positioning Year 2,000

27. The Luxembourg investment fund sector Net assets of Luxembourg domiciled UCIs Strong development after UCITS I

29. The Luxembourg investment fund sector Figures as at May 2008 – Source: CSSF Market shares (%) of promoters of Luxembourg domiciled funds by country of origin in terms of assets under management

31. The top 16 countries of distribution outside the European Union

32. The Luxembourg investment fund sector Profile of Luxembourg investment funds KEY CRITERIA UCITS Non-UCITS SIF SICAR Investment restrictions (eligible assets) High Medium Low Medium - High Risk diversification High Medium Low None Ease of public distribution High Medium Low Low Degree of investor protector High High Low Medium Degree of supervisor High High Low Medium Time to establish Low - Medium Medium - High Very low Low Target investors All All Institutional / HNWI Institutional / HNWI

33. Largest private banking in the Eurozone Private Banking AuM au Luxembourg 300 BIO EUR Luxembourg 12% B, F, D 46% Other EU 16% Latin America US ASIA Middle East … 26%

35. Captive reinsurance Industrial company Direct insurer Professional reinsurer Insurance premiums reinsurance premiums Captive reinsurance premiums Insurance premiums (« The excess » ) participation

36. Country of origin of mother-company Source: Commissariat aux Assurances 2007

37. Economic sector of mother company Source: Commissariat aux Assurances 2007

38. Origin of premiums 2007 Total amount = 3 BIO Euro Source: Commissariat aux Assurances 2007

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