#1December 2021 Finance Department - Region Ile-de-France INVESTOR PRESENTATION Région îlede France 1#2" Important notice This Presentation has been prepared by Région Ile-de-France for information only and should not used for any other purpose; it does not constitute and should not be considered or interpreted as an offer to subscribe the notes or as a solicitation of the interest of investors to subscribe the notes as described in the Presentation (the "Notes"). [The offering and sale of the Notes in France will only be available to qualified investors (excluding individuals) within the meaning of and in compliance with article L. 411-2 of the French Code Monétaire et Financier. The Notes are not intended for public offering in France.] The Recipient is acting on its own behalf. The Recipient has decided and will decide either alone or with the assistance of the Recipient's own advisers, whether to purchase the Notes, and has evaluated or will evaluate the appropriateness and suitability of an investment in the Notes. Region Ile-de-France advises the Recipients to consult any useful regulatory or contractual documents which the Recipients wish to consult. Investment in the Notes involves financial risk. The Recipient has sufficient knowledge and experience in financial and business matters to analyse and evaluate the merits, suitability and risks of investing in the Notes. The Recipient is capable of bearing the risks relating to its investment in the Notes. The Recipient has made all legal, tax, accounting, regulatory, financial and other assessments it deems relevant in connection with its purchase of the Notes and has conducted its own analysis of the financial situation, business and solvency of the Région Ile-de-France and of the Notes prior to making any investment in the Notes. It is each Recipient's responsibility to confirm that it is authorized to subscribe or invest in the Notes. Information in this document are indicative and in draft form. They may evolve, be complemented or modified after the date of this document. This Presentation may not be forwarded or distributed to any other person and may not be reproduced, in whole or in part, in any manner whatsoever without Region Ile-de-France's prior written consent. The distribution, reproduction or partial reproduction of the Presentation may be restricted by law or regulation in certain countries, and accordingly, this Presentation should not be distributed or reproduced, even partially, in those countries. Région Ile-de-France does not represent or warrant that the Notes will be lawfully offered in compliance with any applicable registration or other requirements in any such jurisdiction or pursuant to an exemption available thereunder, and does not assume any responsibility for facilitating any offering in any such jurisdiction. The Notes have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"). The Notes may not be offered, sold or delivered, directly or indirectly, within the United States or directly or indirectly to U.S. Persons except in accordance with Regulation S under the Securities Act ("Regulation S"). Région Ile-de-France shall not bear any responsibility in the case where a Recipient distributes or makes any use of this Presentation without its authorisation and without the relevant authorities' authorisation in the relevant jurisdictions. The Recipient agrees and accepts that the Presentation is confidential and must not be disclosed to any third party (except for the Recipient's external advisors on the condition that such external advisors respect the obligation of confidentiality) and must not be reproduced, in a whole or in part, without prior written consent of Région Ile-de-France. Région îledeFrance © Finance Department - Region Ile-de-France 2#3CONTENTS A leading local authority in Europe Operations and responsibilities 1. 2. 3. A strong financial situation Région ilede France 4. Financing strategy and debt management 5. A major player in sustainable development 6. A green, social and sustainability bond framework 7. Appendices Région îlede France O Finance Department - Region Ile-de-France 3#4Région îlede France 1 A LEADING LOCAL AUTHORITY IN EUROPE 4#5Water Region Ile-de-France, a leading local authority in Europe Oise Eure Val-d'Oise ise CERGY 75 Paris 92 Hauts-de-Seine 93 Seine-Saint-Denis 94 Val-de-Marne Urban area 1% 21% Wooded area, natural environment Agricultural area Aisne 93 La Marne NANTERRE BOBIGNY 75 92 94 CRÉTEIL VERSAILLES Yvelines EVRY Eure- et-Loir 28% Essonne 50% Région îledeFrance 77 - Seine-et-Marne 78 Yvelines 91 - Essone 95 Val-d'Oise Loiret Seine-et-Marne MELUN La Seine © Finance Department - Region Ile-de-France Yonne Marne Aube 5#6A dynamic population in a dynamic territory FRANCE • The most attractive country . . for foreign investments in Europe (2021) 74% of foreign investors consider the attractivity of France will improve by 2025 (EY Barometer, 2021) A distinguished country through its response to the health crisis REGION ILE-DE-FRANCE 23,2% of all jobs in France 6,4M jobs 36% of all french executives 5,9M salaried jobs 40% of the adult population holds at least a bachelor's degree 720,000 students 26% of France's student population Ages 25-29 38.4% Women 49.4% University graduates 41.4% Executives 27.4% Foreign population 13.9% Région îlede France Ⓒ Finance Department - Region Ile-de-France 6#7The leading economic region in France The wealthiest region in France: • GDP of €726 bn • • 31% of France's GDP • 5.4% of EU-27's GDP One of the highest GDP per capita in Europe (€ 59,387 in 2018), representing 190% of European average. Most Fortune 500 Company Headquarters in Europe Région îledeFrance © Finance Department - Region Ile-de-France 7#8A center for R&D and innovation 8 regional competitiveness clusters 1,200 R&D centers €8.6 billion total funding in 2019 €20+ billion Paris Region R&D expenditure in 2019 Darmstadt 6,560 Paris Region* 20,300 STech Paris Region Finance Innovation Pôle de compétitivité mondial medicen innovation PARIS REGION for health cap-digital Paris Region moveo Elastopôle ✓ Systematic Imagine mobility Pole de competitivité caoutchouc et polymères Paris Region Digital Ecosystem COSMETIC VALLEY Région îledeFrance Stuttgart Auvergne / Rhône-Alpes* 7,000 16,000 Oberbayern 10,700 Data France French Ministry of Education, Higher Education and Research 2020, data 2017 O Finance Department - Region Ile-de-France ΝΟ • 400 km L'INSTITUT PARIS REGION Source: Eurostat 2020, data 2017 L'INSTITUT PARIS REGION 8#9A multi-industry hub Seine Gateway Smart Manufacturing -industry -aeronautics -automative Cergy Knowledge & Innovation Hub -university campus -security -cosmetics La Défense -headquarters -finance -audit, consulting Plaine Commune Digital & Creative Cluster -headquarters -finance -audit, consulting Paris CDG Airport Area Hub of International Exchanges -aeronautics & airport services -transport & logistics -wholesale trade & retail -tourism & congress -digital -tourism -logistics Paris Core Economic Business Hub -university campus -start-ups -retail -tourism -finance -audit, consulting ● Paris Saclay Innovation Playground -university campus -deep tech, AI -transport -energy -security-defence -tourism -optics, photonics Grand Orly Productive & Innovative Area -airport -logistics -health -industry Paris Marne La Vallée Sustainable City & Leisure Cluster - aeronautics -logistics -retail -tourism Région îlede France © Finance Department - Region Ile-de-France O Grand Paris Sud Sénart Industry Area -health -logistics innovation -industry -aeronautics About this map This map shows Paris region main business hubs. It is based on SRDEII. Regional Strategy for Economic Development, Innovation and Internationalisation (SRDEI) 2017-2021 9#10A unique infrastructure The region's unrivaled transit infrastructure ensures the seamless flow of people, goods, capital and ideas : 1,484km of regional railways, 1,500 buses lines or even 8 tramway lines Massive investments are being made in autonomous vehicles and electric mobility Région îledeFrance © Finance Department - Region Ile-de-France 10 10#11Environmentally responsible urban planning In 2020 Paris Region allocated €10 billion to be invested in environmental projects over the next 5 years Bicycles and Electromobility In Paris Region, 850,000 journeys are made by bicycle every day Innovative Clean Buses 1 A large number (almost 5,000 buses) of fully clean buses in dense areas by 2025 Feeding the City With Agritech Currently, Paris Region has 73 hectares of urban agriculture Région îlede France 1 The Paris Region finances transport infrastructures. The rolling stock (including buses) are financed by IDFM © Finance Department - Region Ile-de-France 11#12Région îlede France 2 OPERATIONS AND RESPONSIBILITIES © Finance Department - Region Ile-de-France 12#13How the Region operates Région îledeFrance 110- Île-de-France's Regional Council is composed of 209 members, elected in June 2021 for a 6 year mandate (2021-2028). The Regional Council governs the affairs of lle- de-France through its resolutions. Valérie Pécresse, elected President for a second term, is heading the regional administration and has responsibilities for : . preparing and implementing the decisions taken by the Regional Council authorizing expenditures and acting as the signatory power managing the Region's assets © Finance Department - Region Ile-de-France 13#14A large scope of responsibilities Transportation Secondary education (investing in and running 461 high schools, 525 000 high-school students) Professional training and employment Economic development, research, and higher education Environment, territorial development Social inclusion, housing, culture and sport Région îledeFrance Finance Department - Region Ile-de-France 14#153 A STRONG FINANCIAL SITUATION Région © Finance Department - Region Ile-de-France 15 îlede France#16€ billions 5,00 A balanced budget with a specific focus on investments and tight control on operating expenses 6,00 CA 2011 CA 2012 CA 2013 4,00 2.57 2.00 2.14 2.00 1.94 2.03 2.05 2.15 2.54 2.11 2.23 2.38 3,00 2,00 Capital expenditures ■Operating expenditures 2.57 2.67 2.78 2.70 2.78 2.68 2.64 2.55 2.54 2.51 2.50 2.73 1,00 CA 2014 CA 2015 CA 2016 CA 2017 Rationalization of the resources of associated bodies Focus on key regional responsibilities CA 2018 CA 2019 CA 2020 CA 2021* Budget Project Strong focus on investments since 2016. Operating expenditures significantly decreased, thanks to strong efforts put in place to reduce the regional administration costs (including associated bodies) Non-replacement of one out of two vacancies Région îlede France 2022 *To be adopted in 2022 Optimized purchase policy Efforts to decrease operating expenditures were hailed by the French national court of auditors in 2019 and also by the Regional Court of Auditors in 2020 Ⓒ Finance Department - Region Ile-de-France 16#17Between 2016 and 2022, the share of investments has steadily grown, reversing the previous trend In 2022, multi-annual operating expenses represented 41% of total expenses in the preliminary budget, compared to 60% in 2015. In 7 years, the increase in investment expenses represents an equivalent of €4,8bn of additional investments. Investments 40% Région îlede France 2015 Operating expenses 60% 60% 40% 2016 2017 2018 2019 2020 2021 Operating expenses Investments 59% 41% Investments 59% 2022 + €4.8bn Multi annual opex excl.european funds & regional skills investment plan (PRIC); Multi annual capex (CA 2015 and BP 2016 to 2022) © Finance Department - Region Ile-de-France Operating expenses 41% 17#18A historic level of investment in 2022 and a continued control of operating expenses In 7 years, operating expenses were reduced by 20% and are stable since 2020. In the same time, investments increased by 74%. OPERATING EXPENSES INVESTMENTS Région îlede France €2.3bn -20% €1.9bn €1.9bn 2015 2021 2022 Multi annual opex excl.european funds & PRIC; Multi annual capex (CA 2015 and BP 2016 to 2022) €2.7bn +74% €2.6bn €1.6bn Finance Department - Region Ile-de-France 2015 2021 2022 18#192022 Budget - Expenditures (€5.3bn) Economy, employment and training Région îlede France Transports €1,522M 29 % €1,050M Secondary schools €898M Debt service costs €560M Environment 20% and living environment €378M 10% 7% Regional €572M 17% Social and International administration ☑A territorial Europe 11% equality €213M €111M 4% 2% 45% of 2022 budget expenditures (exc. debt) dedicated to investments (€2,114bn) O Finance Department - Region Ile-de-France 19#202022 Budget - Resources (€5.3bn) The Region resources (€5.3bn) are composed of revenues (mainly tax related) for 86.4% and borrowings for 13.6% Tax revenues: €3.8bn (82.4% of the 2022 Budget Revenues) a portion of the TICPE, Domestic Tax on the Consumption of Energy Products (€1 bn) a share of the VAT, Value Added Tax (€1,6 bn) Transfers from the French State: €0.2 bn (4.6% of the 2022 Budget Revenues) Misc. €0.6 bn (13% of the 2022 Budget) such as European funds and police fines... Borrowings: envelope of €719,4Mn (13.6% of the 2022 Total Budget Resources) Evolution of the Region's resources since 2012 (in € Bn) Région îledeFrance ■Revenues Borrowings 0.20 0.80 0.50 0.72 0.60 0.71 0.65 0.71 0.53 0.73 0.65 4.84 4.75 4.75 4.58 4.37 3.96 4.07 4.21 4.21 4.01 4.17 CA 2012 CA 2013 CA 2014 CA 2015 CA 2016 CA 2017 CA 2018 CA 2019 CA 2020 CA 2021* BP 2022 To be adopted in 2022 Finance Department - Region Ile-de-France 20#21☐ Financial Ratings MOODY'S << Aa2 >> Stable Outlook Short-term credit rating: P-1 Date October 2021* << a strong operating performance << a strong governance, as evidenced by the region's prudent budgetary approach << The region's sophisticated financial management, exemplified by its long-term Green and Sustainability strategy, further supports the rating» Région îledeFrance * " " Fitch Ratings << AA >> Negative Outlook Short-term credit rating: F1+ Date October 2021* << Ile-de-France has tight control of expenditure, as reflected by a continuous decline in operating expenditure in the last five years. » "Ile-de-France's liabilities carry little risk." <<lle-de-France has strong access to liquidity in various forms." "We have revised Ile-de-France's Standalone Credit Profile (SCP) to 'aa+' from 'aa', following an improvement of the region's debt-sustainability ratios in our rating case (...) Ile- de-France's IDR, however, remains the same as it is now capped by the French state's (AA/Negative). The Negative Outlook also reflects that of the sovereign." Agencies' ratings reports are available on https://www.iledefrance.fr/region-funding O Finance Department - Region Ile-de-France 21#224 FINANCING STRATEGY AND DEBT MANAGEMENT Région îlede France © Finance Department - Region Ile-de-France 22 22#23• A protective legal framework Budget balance golden rule (art. L1612-4 of the Code Général des Collectivités Territoriales - CGCT ; see appendix slide 46): ■ The operating section must be voted in balance ■ The investment section must also be voted in balance => Borrowings are investment revenues that can only finance investment expenditures ■ The gross operating surplus and own investment earnings must at least cover debt amortization Debt service (interest + capital) is a mandatory expense (art. L4321 du CGCT) State controls on local authorities : Legal control ■ Accounting operations control : separation between the authorizing payment officer - Region Ile-de-France - and the accountant ensuring the payment – the National State administration. Regional accounts houses controls (Chambres Régionales des Comptes) • National State insurance (no explicit guarantees): ■ State ensures payments of tax proceeds and grants (In accordance with conditions set in the Finance Law) ■ Obligation to provide financial compensation for local authorities in the case of transfer of competencies or creation of new competencies (Art. 72-2 of the Constitution; see appendix slide 46) Région îledeFrance Finance Department - Region Ile-de-France ☐ 23 23#24A strong financial situation 2015 2016 2017 2018 2019 2020 20213 Gross operating balance (M€) 718 776 1 014 1 052 1 574 1 448 1 501 Current margin rate (%) 20,5 22,5 27,8 29,2 38,2 36.5 37,5 Debt payback ratio 1 (yrs) 7,5 7,2 5,5 5,4 3,4 4,0 4,0 Self-financing capacity 2 (%) 57,8 67,8 70,9 81,6 103,9 84,9 93,7 Calculations include positive net results from previous years (+ € 1.0 M in 2015; + € 4.2 M in 2016; +€141.7 M in 2017; +€ 66,3 M in 2018, + € 306,9 M in 2019 + € 276,3 M in 2020 and € 483,5 M in 2021) 1 Outstanding debt to gross operating surplus 2 Self-financing to capital expenditures excluding debt 3 Provisional forecast Région îlede France Finance Department - Region Ile-de-France 24#25A diversified financing strategy offering a large access to short and long term liquidity • €1,5bn NEU-CP short term program in French law (2002) · • • Rated Prime-1; F1+ / Moody's; Fitch A revolving facility of €587M on the period 2007-2022 ■ Drawing request for D+1 Exceptional rates conditions (established in 2007) €7bn EMTN program ■ €5.43bn outstanding by end-2021 ■ 1st French local authority EMTN program (2001) and largest bond issues amongst French local authorities A long term partnership with EIB to finance sustainable investment projects Outstanding debt mobilized as of March 2021: €400M Opportunistic use of bank loans Région îledeFrance → Outstanding debt by end of 2021 €6.061bn Finance Department - Region Ile-de-France 25#26Issuance of bonds as the main financing tool Issuance of bonds is executed in coherence with the financial surface of the Region and is systematically assessed vs other financing alternatives Private placements Schuldschein 4,9% 0,8% EIB and CDC loans 9,6% Région îlede France Data as of 31/12/2021 Public bond issues 84,7% Outstanding debt by the end of 2021: €6.061bn Average lifetime: 5 years and 8 months Average rate: 1.50% 89,6% of bonds (Public issues and private placements) 10,4% of banks & institutional loans financing and Schuldschein Finance Department - Region Ile-de-France 26#27Focus on 2021 Green and Sustainability bond issuance On Monday 12 April 2021, Région Ile-de-France, successfully issued its first tranche under its updated framework for green, social and sustainable bond. This new €500mn bond issue will redeem in 7 years and offers a yield of -0.116%. The orderbook gathered up to €3.5bn (representing an over subscription of 7x) thanks to the conjunction of a well-known financial strength, a historic and regular presence on the sustainable debt market, further reinforced this year with the innovations brought by the updated issuance framework in March 2021. The transaction gathered 114 investors across 16 countries Germany, Italy, Switzerland and France represented over 60% of the orderbook. Distribution by geography Rest of the world 1% Northern Europe 8% United-Kingdom / Ireland 11% South Europe 13% 0 Région îlede France Germany/Austria / Switzerland 34% France 19% Belgium/Netherlands/ Luxembourg 14% Others 3% Insurers/ Pension funds 5% Central banks/ Official institutions 15% Distribution by investors type O Finance Department - Region Ile-de-France Banks / Private banks 41% Asset Managers / Fund Managers 36% 27#28Issuance of bonds as the main financing tool . • Conservative interest rate risk management • An indexation linked to fixed rates or simple floating rates (Euribor, Livret A) in the Euro Zone Distribution fixed rate / floating rate adjusted depending on the long-term economic trends • Over 98% of the outstanding debt at fixed rate at the end of 2021 A complete hedging of the currency risk • • No currency risk incurred by the region • Systematic hedging at the issuance via swaps in euros A conservative approach on derivatives • Possibility to subscribe to simple vanilla products . No structured products • 100% of the outstanding amounts after swap at the end of 2021 ranked in «the least risky category» (level << A1 » according to the French State classification) Région îledeFrance Finance Department - Region Ile-de-France 28#29Région îledeFrance Debt amortization profile at the end of 2021 A smooth debt amortization profile spread across the maturity spectrum 1000 800 600 400 200 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Depreciation 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 Interest Finance Department - Region Ile-de-France 29 20#305 A MAJOR PLAYER IN SUSTAINABLE DEVELOPMENT Région îlede France © Finance Department - Region Ile-de-France 30 30#31Sustainable development is at the heart of the Region's actions The Region is committed to integrate sustainable development and social responsibility considerations in all its activities across the different fields with 5 objectives : Fight against climate change and preserve the quality of the air Support biodiversity conservation and protection of resources and environment - Contribute to personal development of all human beings Ensure social cohesion and solidarity between territories and generations Create growth dynamics integrating responsible production and consumption patterns The Region plays a key role to promote sustainable development initiatives on the territory : Competent authority setting strategic guidelines of local public actions on the territory: territorial development, transports, economic development, climate and energy, biodiversity, waste management (cf. appendices) The Region sets the example in terms of governance and policies implemented: ☐ Systematic Integration of sustainable development considerations into policies Responsible purchasing policy and public contracts Development of technical guidelines by sector to improve sustainable building for new construction projects Région îlede France Ⓒ Finance Department - Region Ile-de-France 31#32A pioneer in the green and sustainability bond market First ever local authority to issue a sustainability bond in a public format as soon as 2012 90% 80% 10 green and sustainability bonds 70% issued since 2012, including 7 benchmark public issues, for a total amount of €4.4bn In 2019, the Region committed to 100% green & sustainable financing Part of the green & sustainability borrowing in the outstanding total debt of the Region 78% 75% 65% 59% 49% 40% 29% 19% 60% 50% 40% 30% 20% 10% 8% 0% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Région îledeFrance © Finance Department - Region Ile-de-France 32#33Commitments made by the Region on its previous Green and Sustainability Bonds Since 2012, Region Île-de-France made several commitments, contributing to the adoption of high level markets standards The Region will continue to develop and adhere to best practices Région îlede France Compliance with The Green Bond Principles Commitment to report on the use of funds « second opinion » External and independant certificate 2012 2014 2015 2016 2017 2018 2020 2021 million (1) (2016-2025) € 500 € 500 million (2017-2029) million (2018-2033) € 350 € 600 € 625 € 650 million (2012-2024) million (2014-2026) million Predating the creation YES YES of the Green Bond principles Published on the anniversary date (1) Aggregated amount (2) Aligned to the Green Bond Principles and the Social Bond Principles Published on the anniversary date V.E € 800 € 500 million (2020-2030&2040) million (2021-2028) (2) (2) Published on the anniversary date Published on the anniversary date Renewal of 2014 opinion V.E Published on the anniversary date Renewal of 2016 opinion Published on the anniversary date Renewal of 2016 opinion Published on the anniversary date 2016 second opinion update To be published by the end of 2022 V.E Deloitte. I | © Finance Department - Region Ile-de-France I 33#34An advanced sustainability performance Region Île-de-France is rated by Vigeo since 2009 Region Île-de-France has a 61/100 overall sustainability performance rating, considered as Advanced by Vigeo Eiris In December 2020, Vigeo-Eiris ranked Region Île-de- France 3/29 in its sector Region Île-de-France is one of the leaders of the European local government authorities panel assessed by the extra-financial agency Region Île-de-France has no high severity. controversies OVERALL SUSTAINABILITY PERFORMANCE 61 VE 100 Advanced (¹) RELATIVE PERFORMANCE 3/29 79% Rank in Sector Company Reporting Rate Sector Average Reporting Rate High severity controversies 78% No Région îlede France (1) Performance level: weak (0-29/100), limited (30- 49/100), robust (50-59/100), advanced (60-100/100). © Finance Department - Region Ile-de-France 34#356 A NEW GREEN, SOCIAL AND SUSTAINABILITY BOND FRAMEWORK Région îlede France © Finance Department - Region Ile-de-France 35#36The new Framework's key features GREEN, SOCIAL AND SUSTAINABLE BOND FRAMEWORK New edition: March 2021 for the Ile-de-France Region Région iledeFrance A Framework fully compliant with ICMA's principles Green Bond Principles 2018, Social Bond Principles 2020 and Sustainability Bond Guidelines 2018 A Framework underlining the contribution of the Region's eligible projects to the UN Sustainable Development Goals: 12 SGDs adressed in total A framework positioning the Region's projects with the Draft Delegated Acts (Nov. 2020) of the upcoming European Taxonomy Regulation : Assessment of project categories contribution to the Technical Screening Criteria (Draft Delegated Acts of Nov. 2020) Beginning of assessment of project categories vs Do No Significant Harm criteria in the clean transportation category (50% of use of proceeds) Respect of social minimum safeguards The Region also commits to regularly update its new Framework to remain in line with best market practices, changes in international standards and European regulations https://www.iledefrance.fr/sites/default/files/medias/2021/03/bond-framework-region-IDF-EN.pdf https://www.iledefrance.fr/sites/default/files/medias/2021/03/VE-SPO-IDF-2021-03.pdf Région îledeFrance © Finance Department - Region Ile-de-France 36#37An umbrella Framework Under its updated framework, Region Île-de-France can issue three types of bonds, reflecting the large variety of eligible projects : Green bonds The proceeds of the bonds are intended to finance exclusively expenditures relating to one (or more) category(ries) of green projects Social bonds The proceeds of the bonds are intended to finance exclusively expenditures relating to one (or more) category(ries) of social projects Sustainable bonds The proceeds of the bonds are intended to finance exclusively expenditures relating to one (or more) category(ries) of green projects and/or one (or more) category (ries) of social projects In line with its tradition of funds allocation since 2012, the Region will continue to make its best efforts to finance projects with both environmental and social vocations * Région îledeFrance Finance Department - Region Ile-de-France 37#38Regional objectives aligned with international sustainable goals Each regional objective is in line with at least one United Nations Sustainable Development Goal (SDG) With a large array of eligible projects, the Region contributes to at least 12 out of the 17 UN SDGs Regional environmental objectives are aligned with 2 EU environmental objectives Région îledeFrance SUSTAINABLE GOALS DEVELOPMENT EU TAXONOMY Fight climate change and protect the atmosphere Preserve biodiversity and protect environments and resources AND COMMUNITIES Enable all human beings to be fulfilled Ensure social cohesion and solidarity among territories and generations Establish development dynamics based on responsible modes of production and consumption Région îledeFrance CLEAN WATER 6 AND SANITATION AFFORDABLE AND CLEANENERGY INDUSTRY INNOVATION AND INFRASTRUCTURE SUSTAINABLE CITIES 12 RESPONSIBLE CONSUMPTION AND PRODUCTION Со QUALITY FOUCATION 13 ACTION CLIMATE 1 POVERTY GOOD HEALTH AND WELL-BEING 15 FE ON LAND Climate change mitigation Climate change adaptation SUSTAINABLE CITIES AND COMMUNITIES NOT RELEASED BY THE EU YET DECENT WORK AND ECONOMIC GROWTH M 10 INEQUALITIES REDUCED Finance Department - Region Ile-de-France 38 38#39The alignment with the EU Taxonomy Regional green projects are classified according to the environmental objectives of the << Taxonomy>> Regulation (EU Regulation (EU) 2020/852, article 9) and when possible, the NACE classification Vigeo-Eiris SPO: "Most Green Eligible Categories follow the technical screening criteria specified by the Draft Delegated Act under EU Taxonomy Regulation (Nov 2020)” * In its evaluation and selection process, regional Green projects categories are assessed, when possible, according to the Do No Significant Harm criteria (example of the clean transportation sector in appendix of the Framework) Moreover, at the start of the evaluation and selection process is confirmed that the Region's activities are carried out in strict compliance with the French environmental and social legislation, hence in line with the European Union's Minimum Safeguards (Regulation (EU) 2020/852, article 18) Climate change mitigation Climate change adaptation * Out of the 16 EU taxonomy activities covering all regional projects, regional projects are fully aligned with the technical criteria of contribution to the objective of climate change mitigation in 13 cases, partially aligned in 2 cases and "Not yet assessed" in 1 case. Région îledeFrance O Finance Department - Region Ile-de-France 39#40Eligible Green Projects categories Region Île-de-France has identified 4 green projects' categories and defined rigorous eligiblity criteria for each category to be aligned with the best market practices Green Project Categories Description Green Buildings Clean Transportation Renewable Energy Terrestrial and aquatic biodiversity conservation Construction of buildings following a sustainable development Approach and promoting respect for the Environment Renovation of buildings according to a sustainable development approach and promoting respect for the Environment Construction of rail transit Infrastructure Construction of low-carbon road transport infrastructure dedicated to public passenger transport Projects contributing to the development of local renewable energies and energy efficiency Restoration and rehabilitation of ecosystems (e.g. renaturation of banks, the reopening of urban rivers, the planting of hedges), Sustainable forest management (e.g. adaptation of tree species to climate change, safeguarding state forests), Investment in protected areas. Regional Eligibility Criteria Public buildings (high schools and annex buildings, higher education buildings, medico-educational institutes): All high schools from 2017 onwards: required energy consumption level < -40% compared to RT 2012 (equivalent to the level E3C1 of Label E+C-). All higher education buildings: required level of energy consumption < -20% compared to RT 2012 (equivalent to Effinergie + Label). Medico-educational institutes: Required level of energy consumption < RT 2012. Residential: Required level of energy consumption < RT 2012. High schools and higher education buildings: for major restructurings/rehabilitations of +1000m2, the works must lead to a reduction in primary energy consumption (Cep) of at least 30% (Cepprojet ≤ Cepinitial - 30%; i.e. the level required by the Thermal Regulation «RT Global»>). Construction of rail transport infrastructure meeting the following criteria: ground electrified infrastructure and associated subsystems: infrastructure, energy, on-board control-command and signaling and ground control-command and signaling subsystems. Construction of low-carbon road transport infrastructure dedicated to public passenger transport. Production of electricity from photovoltaic solar energy; Cogeneration of heat/cold and electricity from solar energy; Heat/cold production from geothermal energy; Production of heat/cold using residual heat; Manufacture of equipment for the production of hydrogen; Hydrogen storage Afforestation (PEFC label) Forest rehabilitation and restoration (PEFC label) Reforestation (PEFC label) Sustainable forest management(PEFC label) Forest conservation (PEFC label) Wetlands restoration Région îledeFrance Green contribution to the Sustainable Development Goals O Finance Department - Region Ile-de-France MONSTRICT 12 13 AT 15 AND FRAN 40 40#41Eligible Social Projects categories Region Île-de-France has identified 6 social projects' categories and defined rigorous eligibility criteria and target populations for each category to be aligned with the best market practices Social Project Categories Access to essential services: Education Access to essential services: Health Access to essential services: Social inclusion Affordable housing Affordable basic infrastructures (transport, energy, green spaces and sport infrastructures) Support for employment creation, prevention & fight against unemployment related to crises . Regional Eligibility Criteria An increase in educational accommodation capacity through the construction or extension of infrastructure for public secondary and public higher education. Improvement of the quality of existing infrastructure and equipment for public secondary and public higher education. An increase in health capacities through the construction or extension of health infrastructures. Improvement of the quality of existing health infrastructures and sanitary facilities. Development of medical research. Provision of infrastructure, equipment and emergency materials needed in the event of an exceptional crisis (health crisis, natural disaster, etc.). Increase in reception and accommodation capacities for vulnerable populations. Projects to make buildings and infrastructure (transport, education, etc.) accessible to people with reduced mobility. Increase in the capacity of the social housing stock through the construction of new dwellings or the transformation of existing buildings. Improvement of the quality and comfort of the existing social housing stock through thermal renovation works. Construction of public transport infrastructure for better access to the entire territory. Projects to improve the comfort and safety of transport users and those living near the infrastructure. Construction of basic infrastructure for the supply of renewable energy, heating and cooling networks. Works to develop and extend green spaces, preservation of natural environments and biodiversity. Works to develop and extend sport infrastructures. Projects contributing to the creation or maintenance of local employment, via support to SMES & MICS in the territory and to social and solidarity economy projects. Support for research and innovation of SMES & MICs and the development of the territory's attractiveness. In the event of exceptional crises (health crisis, natural disaster, etc.), support for SMES & MICS that have been impacted by the consequences of the crisis. Social contribution to the Sustainable Development Goals 1 PET 3 Target Population The entire population of the territory The entire population of the territory Vulnerable populations including, in particular but not exclusively, people with reduced mobility, the elderly, people in precarious situations or vulnerable groups (situations of insecurity, exclusion, disability, homelessness, etc.) Population meeting social criteria, students and young working people The entire population of the territory Small and Medium-sized Enterprises (SMEs) and Microenterprises (MICS) SMES & MICs impacted by the occurrence of exceptional crises The unemployed MAKA ECENIC GRETH 10 W 11 NECE AND COMEN M Région îlede France © Finance Department - Region Ile-de-France 41#42Estimated funds allocation between Green & Social categories Average % of fund allocation Secondary category 1 - Buildings and equipment for education and leisure activities Building / renovation projects for High Schools and Boarding Schools Building projects for Higher Education Sports / leisure equipment construction project 2- Public transport and sustainable mobility . Metro/tram/rail link projects • Specific scheme Development of roads dedicated to buses Specific scheme Accessibility Master Plan 3-Renewable energies and Energy efficiency 4 - Biodiversity 5 Social actions in favor of vulnerable populations 6 Social Housing 7 Economic and inclusive development of previous IDF bonds issues Dominant category Green Social Green 20% 10% 5% 5% 50% 40% 5% 5% 5% 5% 5% 10% 5% Sustainable Social Up to 90% of the Region's eligible projects may match either a primary or a secondary Green category Up to 95% of the Region's eligible projects may match either a primary or a secondary Social category In addition, in line with its tradition of funds allocation all projects are selected according to 9 qualitative criteria, relating to project management in terms of environmental, social/societal, Région îlede France economic and governance responsibility. O Finance Department - Region Ile-de-France 42#43A four-step selection process Compliance with national legislation in terms of human rights and social laws Compliance with one or more of the eligibility criteria defined by the Region for each of the green and/or social project categories Evaluation of the Contribution to the European Union's environmnetal goal of Climate Change Mitigation and assessment of compliance with the relevant Do no significant harm (DNSH) criteria, where possible Qualitative assessment of project management in its environmental, social and societal, economic and governance responsibility dimensions Projects are evaluated and selected according to a four-step process mainly led by the Finances Department : Operational Departments propose for selection a list of investments projects or schemes The Management Control and financial Decision-making Mission extracts, from the Region's financial information system, the amounts of expenditures for the listed projects/ schemes. The Finances Department finalizes the list of projects for a total amount corresponding to the amount of proceeds. The Sustainable Finance Committee, which gathers the main managers from the Finances Directorate, from the Territorial Cohesion Directorate in charge of regional environmental policies, the Operational Departments and the Paris Region Institute, validates the final list. The projects' environmental responsibility The projects' social and societal responsibility The projects' economic responsibility Région îlede France Governance 1. 2. 34 Environmental management and eco-design of the projects Combating climate change and promoting the Region's environmental transition Sustainable regional planning and improving quality of life Socially inclusive development, combating inequality, and promoting the safety of individuals Respect for fundamental rights Responsible regional development Regional economic development Fair practices, responsible purchasing and responsible supplier relations 5. 678 6. 7. 8. O Finance Department - Region Ile-de-France 9. Consultation with stakeholders 43 43#44A well-controlled Management of proceeds Proceeds management: French local authorities are required to deposit their cash balances in a single account with the French Treasury. A 12-month allocation period: from a budgetary and accounting point of view, the proceeds of the bonds will be entered as investment income, and cover the capital expenditure for the year. The principle of budgetary annuality offers a guarantee to investors that the funds raised by the green and sustainable bonds will be used in the year of mobilisation of the borrowings to finance the Region's investment projects Reallocation of proceeds: If the Region faces a major controversy on an eligible expenditure, or if an eligible project becomes ineligible, is postponed or divested, then it will reallocate the net proceeds to other eligible projects which meet the eligibility criteria of the Framework within 24 months of the reallocation decision Région îlede France Finance Department - Region Ile-de-France 44#45A hailed Reporting Process For each bond issue, the allocation and impact report shall be published at the latest by 31st December of the year following the issue on the Region's website The Allocation report, made of: • Tables showing the allocation of the funds raised for the selected projects et schemes, broken down in 2 major categories: Green & Social • A breakdown of the funds raised, in accordance with the UN Sustainable Development Goals and for each of theirs Targets. • • • • A presentation, where possible, of the distribution of the allocated funds according to their contribution to the environmental objectives of the European Union ☐ The Impact report, with Project sheets detailing each project/scheme with : A description of the purpose of the project The essential information on the project, the amounts allocated to the project in previous bond issues, and the share of co-financing A summary table illustrating how the project meets the eligibility criteria and the project management criteria • • An evaluation, where possible, of the impact of the project according to the 3 impact indicators selected The UN SDGs / environmental objectives of the EU to which the project aims to respond The 3 impact indicators selected by the Region are: - CO2 emissions avoided by the project (in teq/year) for all green projects number of jobs created by the project for all social projects number of beneficiaries of the project Région îledeFrance Reporting methodology and assumptions used to report publicly disclosed. O Finance Department - Region Ile-de-France 45#46A remarkable Second-Party Opinion New Île-de-France Region Framework has been reviewed by Vigeo Eiris (V.E) in March 2021 V.E V.E is of the opinion that the Expected impacts and ESG risks management are Robust and that "the contemplated Framework is coherent with Région Île-de-France's strategic sustainability priorities and sector issues and that it contributes to achieving the Issuer's sustainability commitments" The quality of the framework has been underlined with 3 pillars recognized as Best practices by V.E, see details below: Use of Proceeds Evaluation & Selection of Eligible Categories Management of Proceeds Monitoring & Reporting Best Practices V.E considers that the content, eligibility and exclusion criteria of the UoP are clear and in line with international standards for all categories. Best Practices V.E highlights that the process of selection and exclusion are clearly defined and detailed for all the Eligible Categories. Best Practices V.E notes that Île-de-France Region has provided the information needed on the procedure that will be applied in case of project/asset divestment or postponement and it has committed to relocate divested proceeds to projects that are compliant with the Framework within 24 months. Aligned V.E mentions that the monitoring and reporting section of the Île-de-France Region is aligned. Région îledeFrance O Finance Department - Region Ile-de-France 46 46#47Issuer quality highlights Ratings of Aa2 (stable) Moody's / AA (negative) Fitch Asolid financial situation allowing to weather the impacts of the Covid-19 related crisis efficiently A protective legal framework Prudential weights: Solvency II = 0%, CRD IV = LCR 2A, Risk weighting = 20% Assets eligible to the ECB purchase programme under QE Sustainability issues at the heart of the Region's competencies, with a commitment to 100% of green and sustainable financings Leader in the European local authorities sector (ranked 3/29) by Vigeo in 2020 An issuance Framework aligned to ICMA's best market practices (GBP and SBP) Positioning of project categories vs the Taxonomy regulation (work in progress) to offer maximum transparency Région îlede France © Finance Department - Region Ile-de-France 47#487 APPENDICES Région îlede France © Finance Department - Region Ile-de-France 48#49French territorial organisation Composed of: 18 regions 101 départements 35 357 municipalities, of which 94.5% under 5,000 inhabitants Principle of free administration by elected councils, no local institution can exercise any authority on another Income and competences are defined by national law → A key role of the national State in the territorial organisation Several characteristics : 1) Process of merging and combinations to optimise local public action : Example with the << Loi NOTRE » : switch from 26 regions to 13 metropolitan regions, to improve efficiency and focus of Regions on investment policies Merging at the muni level: 36 588 municipalities combined by end-2015 2) Competences attributed to each level of local authorities based on the principle of subsidiarity, and withdrawal of the concept of general competences in 2015 → Given their size and strategic positioning, Regions are investment authorities by essence, with a leadership role amongst local administrations in terms of economic development, environment, planning. Région îledeFrance © Finance Department - Region Ile-de-France 49 49#50A protective legal framework Article 72-2 of the Constitution Local authorities benefit from resources they can use freely in the conditions fixed by the law. They can receive all or part of the proceeds issued from all kind of taxations. The law can authorize them to fix the scope and rate in the limit it determines. Fiscal receipts and other own resources of local authorities represent, for each category of local authorities, a determining part of all their resources. The organic law fixes the conditions in which this rule is implemented. Any transfer of competencies between the State and the local authorities comes along the allocation of equivalent resources to those that were dedicated to their exercise. Any creation or extension of competencies having an increase in expenditures of the local authorities as a consequence comes along resources fixed by the law. The law plans devices for adjustment intended to favor equality between the local authorities. Article L1612-4 of the General Local Authorities Code The budget of the local authority is in real balance when the functioning and the investment sections are respectively voted in balance, incomes and expenditures having been evaluated in a sincere way, and when the debit on the incomes of the functioning section to the benefit of the investment section, added to the own receipts of this section, excluding the proceeds from borrowings, and eventually the endowments of amortizations and provisions accounts, provides enough resources to cover the capital repayments of the borrowings maturing in the course of the exercise. * Région îledeFrance © Finance Department - Region Ile-de-France 50 50#51The competent authority to define the strategic orientations of the public action on the territory of Ile-de-France Authority in charge of organizing the territory planning : The Region defines the strategic orientations in terms of urban planning, with regard to the environmental stakes, employment hubs, needs for housing and transports (SDRIF). This reference framework is prescriptive and must be declined in the whole of the local plans for urban planning in Ile-de-France. The Region is associated to each local document for urban planning, and pays a particular attention to the environmental topics. Authority in charge of organizing the transports in Ile-de-France with IDFM (Île-de-France Mobilité, formerly ❝STIF"): The Region launched the transports revolution with IDFM since 2016, with the aim to renew all the rolling stocks (trains) and the implementation of the Greater Paris for Bus to service the territories of the greater Paris area. Lead manager of the economic development on the territory : The Region defined in December 2016 the regional strategy for economic development, innovation and internationalization, which integrates the environmental stake to address a dual objective of identification of the possibilities in terms of economic activity, employment and innovation, and improve the living environment in Ile-de-France Lead manager, along with the State, of the territorial politics related to quality of air, energy and fight against climate changes Lead manager for biodiversity Role of planner in terms of waste management, with a zero waste objective adopted in September 2016 Région îledeFrance © Finance Department - Region Ile-de-France 51#52Region Ile-de-France, Société du Grand Paris, Ile-de- France Mobilités, RATP and SNCF : 5 different entities Région îledeFrance Legal body governed by public law Regional authority, autonomous -regional assembly composed of 209 elected members, - chaired by Valérie PECRESSE. The regional Council governs the affairs of Ile-de-France through its resolutions. It has jurisdiction over subsidies and project management in the transport's sector. Société du Grand îledeFrance Paris Public industrial and Public commercial undertaking ("EPIC”) 100% owned by the state Supervisory Board (representatives of the State local authorities, 21 members). and Design, develop and finance the Grand Paris Express project (200 km of metro lines, 100 % automatic; 68 new stations). mobilités administrative institution << EPA >> Council composed of 29 members, representing « départements », Ile-de- France Region and the French State, chaired by Valérie PECRESSE. of Authority in charge transportation in Ile-de-France Region. RATP SNCF RATP Public industrial and commercial undertaking (“EPIC”) SNCF Limited Company 100% owned by the state - RATP ensure, design and maintain transport networks in Region Ile-de-France - SNCF manage, maintain and develop the railway network+ service operation. Région îledeFrance © Finance Department - Region Ile-de-France 59 52#53A Region fully focused on addressing the Covid-19 crisis: an action plan in 3 acts Act I A strong and immediate response to the crisis Act II A regional COP for a greener Île- de-France 1.3 billion euros dedicated and 90% spent by the end of 2020 The largest stimulus plan in France after the State 1. Economy, 2. Training and return to employment, 3. Solidarity, purchasing power, health and research, 4. Environment and participatory budget for a territories scaled recovery 192 proposals to make Île-de-France a Region with zero net artificialization, zero net emissions, and zero net resources Proposals implemented as of January 2021: retrofitting, collection and recycling of disposable masks, strengthened brownfields plan, structuring of the Ile-de-France bio-based materials industry Act III An unprecedented multi-year investment plan 20 billion euros between 2021 and 2027, 5,5 billion of which in the 2021-2022 period A recovery plan, which covers all areas of intervention of the Region: transport, with a record of € 1 billion of investment from 2021, high schools with the review of the multi-year investment plan, but also economic development and innovation, health and research, environmental transition, culture, sport... while relying on the European recovery plan, including the crisis funds REACT-EU Région îledeFrance © Finance Department - Region Ile-de-France 53 53#54Contacts and documentation Finance direction [email protected] Paul BERARD Deputy general manager in charge of finances [email protected] Manuel THOMAS Finance director (head of funding & treasury) [email protected] Conseil régional d'Île-de-France 2 rue Simone Veil, 93400 Saint-Ouen Région îlede France Website : https://www.iledefrance.fr/region-funding