20070301 doc07 Slides Journalist Year Q4 UK

Press ConferenceQ4 and Full Year 2006 ResultsUpdate on DenizBank: 

Press Conference Q4 and Full Year 2006 Results Update on DenizBank Axel Miller, CEO March 1st, 2007, Istanbul

Slide2: 

Agenda Dexia + DenizBank : a Successful Combination Photo : G. Boublil Results Dexia 2006

2006 : A year of achievements and changes for Dexia (1/2): 

2006 : A year of achievements and changes for Dexia (1/2) New Management structure Strategic Review Development opportunities (external and organic) Two licences in Japan (Banking and Credit Enhancement) Acquisition of DenizBank Capital increase Several divestitures

2006 : A year of achievements and changes for Dexia (2/2): 

2006 : A year of achievements and changes for Dexia (2/2) Main changes of scope + - DenizBank Bank Artesia Nederland 75% consolidated in Q4 06 100% sold in Q4 06 (+32M€ net income (+18M€ net income in Q4 06) in Q1, Q2 and Q3 06) Sizeable capital gains in 2006 upon disposals Capital increase changes the average number of shares in 2006 by +1.2%

Another year of strong performance: 

Another year of strong performance

Key Performance Indicators: 

Key Performance Indicators 1 (proposed) dividend for the period deducted - without AFS and CFH reserves, and cumulative translation adjustments (CTA)

Slide7: 

Earnings Per Share (€) Dexia Gaap IFRS as adopted by EU 1.64 +12.8% +33.2% CAGR: + 14.2 % p.a. 1.43 Excluding non-operating items – NA before 2001 2.49 1.44 1.18 1.13 1.03

Progressions in all Business Lines (1/2): 

Progressions in all Business Lines (1/2) LT banking commitments o/s Net par o/s FSA Customer assets o/s Customer loans o/s Assets under management Life insurance technical reserves Assets under administration Public/Project Finance and Credit Enhancement Personal Financial Services Business volumes 2006/2005 + 14.5 % + 7.1 % + 5.3 % + 11.8 % + 16.1 % + 9.4 % + 27.5 %

Progressions in all Business Lines (2/2): 

Progressions in all Business Lines (2/2) Underlying Net Income-Group Share + 14.1 % Public / Project Finance  & Credit Enhancement + 31.7 % Asset Management + 51.4 % Investor Services + 12.1 % Insurance Services + 11.2 % Treasury and Financial Markets + 13.1 % Personal Financial Services 2006/2005

Long-term Banking Commitments(1): 

Long-term Banking Commitments(1) Public / Project Finance & Credit Enhancement (1) Fully-consolidated companies & excluding DenizBank (EUR 1.2 bn of LT commitments at December 31, 2006) + 14.5 % 234.3 268.2 31/12/2005 31/12/2006 (+ 8.6 %) (+ 26.2 %) (+ 4.8 %) (Bn€) (+ 12.2 %) (+ 33.4 %)

Credit Enhancement (FSA): 

Credit Enhancement (FSA) Gross present value originations (M US$) 910 1,014 376 352 Net par outstanding -10.2 % + 7.1 % (Bn US$) Public / Project Finance & Credit Enhancement

Total Customer Assets(1) (Retail & Private banking): 

Total Customer Assets(1) (Retail & Private banking) Personal Financial Services +5.3% (Bn€) 121.9 127.2 128.3 of which (1) excluding DenizBank (EUR 3.1 bn of assets at December 31, 2006) Private Banking Retail

Total Customer Loans(1) (Retail & Private banking): 

Total Customer Loans(1) (Retail & Private banking) +11.8% (Bn€) 27.6 30.3 30.9 Personal Financial Services (1) excluding DenizBank (EUR 2.0 bn of loans at December 31, 2006)

Slide14: 

Assets under Management (Bn€) Organic growth: YTD + 11.0% Market effect: YTD + 5.1% + 16.1 % Sept. 06 March 06 Dec. 05 June 06 Dec. 06 Organic growth Market effect Organic growth Market effect Organic growth Market effect Organic growth Market effect Asset Management

Insurance Gross Written Premiums: 

Insurance Gross Written Premiums (M€) 829 823 1,297 Gross written premiums FY 2006: 3,774 M€ + 3.8 % versus FY 2005 947 686 1,057 885 885 Insurance Services

Investor Services (1): Activity Highlights: 

Investor Services (1): Activity Highlights (1) RBC Dexia Investor Services since Jan.1, 2006 – pro forma for 2005 (2) i.e. assets under custody, administration and transfer agent in the banking activities and assets under custody of the trust activities Assets under administration (2) (Bn USD) Number of funds under administration Dec. 2005 Sept. 2005 Dec. 2006 Number of shareholder accounts in transfer agent (in thousands) + 10.4 % + 27.5 % + 20.0 % 1,796 2,170 2,290 3,898 4,585 4,679 5,783 6,341 6,385 Dec. 2005 Sept. 2005 Dec. 2006 Dec. 2005 Sept. 2005 Dec. 2006 Investor Services

Group Treasury – Funding ActivitiesNew Long-Term Issues: 

Group Treasury – Funding Activities New Long-Term Issues Treasury and Financial Markets (Bn€) 29.7 29.9 AA AA AAA AAA

Summary of FY 2006 P&L Account: 

Summary of FY 2006 P&L Account (1) Based on pro forma accounts for FY 2005 and excluding non-operating items

Slide19: 

Cost of Risk Related to Total Net o/s Commitments (2) (1) Excluding impact of charges for Legio Lease at Dexia Bank Nederland (2) For credit enhancement activities, cost of risk relates to net par outstanding insured Credit enhancement Banking activities (in basis points) (1) (1) (1) (1) (1) (1)

Dividend Per Share (€): 

Dividend Per Share (€) CAGR: + 11.9 % p.a. Dexia France Dexia + 14.1 % Dexia Belgium proposed

Slide21: 

Agenda Dexia + DenizBank : a Successful Combination Photo : G. Boublil Results Dexia 2006

Slide22: 

Rationale of the Acquisition Turkey, a country with strong growth potential : DenizBank is one of the most dynamic and profitable banks in Turkey. • Provide PFS business with a strong growth engine. • Offer a platform to develop Public/Project Finance on a large and promising market.

Slide23: 

Future of DenizBank Within the Dexia Group Bringing Expertise and Financial Strength Capitalizing on DenizBank's excellent current positioning in a large and growing market Create a strong leading financial group active in Turkey and its region in the fields of Universal Banking & Public / Project Finance

Slide24: 

Board Composition D. Bruneel (Chairman of the Board), is in charge of monitoring DenizBank and ensuring good coordination with Dexia. Dexia’s Business heads (H. Lasat, B. Deletré, A. Delouis) to ensure strong support from the whole organization. Dexia Provides Significant Support as Witnessed by Composition of the Board and Expats Sent Organizational Support (10 expats) Dexia added specific expertise in new businesses (eg. mortgages, Project and Public Finance) as well as key control areas (risk, audit/compliance..). Dexia's expertise transfer added to maximize synergies and support the future growth.

Slide25: 

Already Advanced Integration in Important Control Functions Done Ongoing Finance  Consolidation into Dexia  Integration in budget 2007-2009 Transfer pricing Enhanced reporting tools Risk Delegation of powers Risk framework Basel II / Economic capital Unified rating system Audit / Compliance Audit plan 2007 Implementation of Group's standard compliance tools

Slide26: 

DenizBank Provides ... Access to another important market with : Personal Financial Services • A growing customer base of over 1.9 M PFS customers including 230,000 SME and agricultural customers. • Important growth perspectives in most of its segments (a.o. private banking, mortgages, insurance…). • A young branch network of 262 domestic branches covering main economic regions of the country, with strong remaining “maturity” potential*. * Ageing of branches is clearly the driving force of future profitability.

Slide27: 

A Successful Combination in Retail Banking Strenghten DenizBank’s retail franchise growth and efficiency : Position DenizBank as a manufacturer and distributor of life insurance products (integrated product line). Personal Financial Services • Enhance sales approach • Develop the branch network and alternative distribution channels • Increase efficiency in the branches to boost sales time Create a strong Private Banking franchise and expertise (domestic & international) towards Turkish population. Add product expertise in key growth domains, such as mortgages.

Slide28: 

Resulting in… Evolution of outstanding loans (EUR M) Evolution of Turkish origin AuM in Private Banking (EUR M) A Successful Combination in Personal Financial Services At Group level X 5 2006 2009 Obj. ~ 200 ~ 1,000 Credit Card ~ 1,950 ~ 5,100 2006 2009 Obj. CAGR: 38 % Agriculture SME Retail

Slide29: 

Combining DenizBanks’ Local Franchise with Dexia’s Expertise and Financial Strength Strong local commercial franchise Larger underwriting capacity Access to more competitive funding Expertise in Project Finance (Infrastructure, Telecom…) Expertise to off-load risks (placement, securitization) Product expertise Structuring capabilities Main sources of synergy in PPFCE

Slide30: 

1 Leveraging Dexia’s Worldwide Leadership in Public Finance A Staged Approach • Project financing with specific focus on : • Develop activities with “satellites*” of Istanbul and extend to other large cities. • Products development (e.g. Leasing). • Focus on joint PFS-PPFCE projects (civil servants loans, social housing,…). 2 * Satellite: Some municipalities use ‘satellites’ companies for offering public services; hence, they have their secured own revenue streams. Telecom - Energy - Infrastructure / Housing Environment Shipping

Slide31: 

Potential in Public/Project Finance for Dexia is More Medium to Long Term • Regulatory/administrative changes • Degree of decentralization • Strengthening of financial position and autonomy of local authorities • Improvement of financial competences/accounting system of local authorities • Opening of the market • Realization of the planned infrastructure investments Source : Team analysis Volume will depend on : EUR 7 – 9 Bn Expected Dexia outstanding in Public/Project Finance* related to Turkey by 2015 Public/Project Finance * Excluding Corporate / Commercial Banking activities

Slide32: 

Commercial & Corporate Banking Combination Will Lead to a Strengthened Franchise … Customer retention : • Focus on sales approach and increase product sophistication New customers’ acquisition : • Focus on niche sectors, education, energy, health, shipping,… in which Dexia is a world leader • Target to increase number of customers over 2006-2009 by > 60 %

Slide33: 

Resulting in ... A Successful Combination in PPFCE Market share corporate & commercial (%) Evolution of outstanding* (EUR M) Corporate/ Commercial Public Project Finance 4.0 6.3 Current 2009 Obj. ~2,800 ~6,200 2006 2009 Obj. CAGR: 30% * Including long term and short term loans.

Slide34: 

Dexia - DenizBanks’ successful combination Across all Business Lines Higher and faster synergies than originally expected Estimation 2010 Announced in May 2006 2009 Obj. EUR 51 M EUR ~ 55 M USD 66 M =

Slide35: 

Strong Expected Growth in Turkey Contribution to Dexia Result Turkey contribution to Dexia : Net Income (EUR M) A stronger growth perspective than initially announced. DenizBank and Turkey will boost Dexia’s growth perspectives. Return On Investment (ROI) should exceed the 12% level by 2009. CAGR : 30% Pro forma 2006 assuming F.Y. ownership Cost Income ratio 61 % 49 % 2009 Obj. excl. amortization of intangibles 138 ~ 300 2009 Obj. ~ 325 ROI > 12%

Slide36: 

Expected Contribution of Turkey per Business Line Net Income, EUR M PFS Others* CAGR 06-09 53 % 27 % * Central assets and other business lines; the negative evolution of central assets is linked to the decrease of excess equity. Pro forma 2006 assuming F.Y. ownership PPFCE 2009 Obj. ~138 ~300

Slide37: 

Evolution of Contribution per Business Line Contribution of Turkey A strong growth engine for Personal Financial Services and a good development platform for Public Project Finance / Credit Enhancement 2006 2009 Obj.

Slide38: 

DenizBank FX risk exposure Sensitivity Analysis 2007 TRY/EUR budget rate 2008 TRY/EUR +/- 10% Net Income* Turk. Impact Dexia global 1.95 2.03 2009 2.11 2.14 2.23 2.32 /1.75 /1.88 /1.90 - /+ 6.3 % - /+ 6.5 % - /+ 6.6 % -/+ 0.5 % -/+ 0.6 % -/+ 0.7 % An overall limited exposure to FX risk, open position of less than 5% of total equity. Prudent ALM and interest rate risk policy. Limited credit risk (1.9% NPL ratio) and high level of coverage (135%). Overall a limited “size” relative to Dexia’s Balance sheet (less than 3%). * Contribution

Slide39: 

Valuation Metrics on DenizBanks’ Acquisition Price paid to actual book end 2006 : 3.5x Price paid to actual earnings 2006 : 13.8x Expected ROI by 2009 > 12% Expected net contribution to Dexia of ~ EUR 300 M by 2009 (CAGR 06-09 at 30%) Limited exposure to FX risk

Slide40: 

Conclusion A Strong Growth Engine for Dexia DenizBank is a very good investment for Dexia : DenizBank fully fits with Dexia’s long term strategy based on two pillars. - by offering a significant European growth engine for PFS - and a foothold in a large but still nascent public finance market with huge infrastructure needs

Slide41: 

Conclusion Integration of DenizBank in Dexia is fully on track : Towards a very successful combination Strong involvement of Dexia at all levels while maintaining current management team and its strong proven-successful entrepreneurial approach. Turkey contribution 06-09 Obj. shows a 30% growth of its earnings. Estimated synergies higher and faster than expected, with many quick-wins already identified. A Strong Growth Engine for Dexia

Press ConferenceQ4 and Full Year 2006 ResultsUpdate on DenizBank: 

Press Conference Q4 and Full Year 2006 Results Update on DenizBank Axel Miller, CEO March 1st, 2007, Istanbul