#1REGION ILE-DE-FRANCE Investor presentation April 2021 Ⓒ Finance Department - Région Ile-de-France 1#2Important 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. 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Région îledeFrance Finance Department - Région Ile-de-France 2#3Contents → A LEADING LOCAL AUTHORITY IN EUROPE → OPERATIONS AND RESPONSIBILITIES → A STRONG FINANCIAL SITUATION FINANCING STRATEGY AND DEBT MANAGEMENT → A MAJOR PLAYER IN SUSTAINABLE DEVELOPMENT → NEW GREEN, SOCIAL & SUSTAINABILITY BOND FRAMEWORK → APPENDICES 3#4Region Ile-de-France, a leading local authority in Europe Région îledeFrance YVELINES (78) VAL-D'OISE (95) HAUTS-DE-SEINE (92) SEINE-SAINT-DENIS (93) PARIS (75) VAL-DE-MARNE (94) ESSONNE (91) SEINE-ET-MARNE (77) © Finance Department - Région Ile-de-France 12 million inhabitants 8 "départements" 4#5A dynamic population 23,3 % of all jobs in France 6,4M jobs 36% of all french executives 5,9M salaried jobs 35% of the adult population holds at least a bachelor's degree 720,000 students 26% of France's student population NO BOOM ECR Région îledeFrance Ages 25-29 38.4% Women 49.4% University graduates 41.4% Executives 27.4% Foreign population 13.9% Finance Department - Région Ile-de-France LO 5#6The leading economic region in France The wealthiest region in France: GDP of € 734 Bn 31% of France's GDP 5.5% of EU-27's GDP One of the highest GDP per capita in (€ 59,700 in 2018), Europe representing 193% of European average. Most Fortune 500 Headquarters in Europe Région îledeFrance Company Finance Department - Région Ile-de-France CO 6#7A 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 Auvergne / Rhône-Alpes* 7,000 Stuttgart 16,000 Oberbayern 10,700 ASTech Paris Region Finance Innovation Pôle de compétitivité mondial medicen PARIS REGION innovation for health * Data France French Ministry of Education, Higher Education and Research 2020, data 2017 NO 400 km L'INSTITUT PARIS REGION Source: Eurostat 2020, data 2017 L'INSTITUT PARIS REGION cap-digital Paris Region moveo Elastopôle Systematic Finance Department - Région Ile-de-France Imagine mobility Pôle de compétitivité caoutchouc et polymères Paris Region Digital Ecosystem COSMETIC VALLEY#8A multi-industry hub Seine Gateway Smart Manufacturing -industry -aeronautics - automative -tourism - logistics 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 Paris Core Economic Business Hub -university campus - start-ups -retail - tourism - finance -audit, consulting Paris Saclay Région îledeFrance 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 Finance Department - Région Ile-de-France 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 SRDEIL. Regional Strategy for Economic Development, Innovation and Internationalisation (SRDEI) 2017-2021 00 8#9A unique infrastructure The region's unrivaled transit infrastructure ensures the seamless flow of people goods, capital and ideas Massive investments are being made in autonomous vehicles and electric mobility Région îledeFrance Finance Department - Région Ile-de-France 9#10Environmentally 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 Buses¹ 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 (1): The Paris Region finances transport infrastructures. The rolling stock (including buses) are financed by IDFM Finance Department - Région Ile-de-France Région îledeFrance 10 10#11OPERATIONS AND RESPONSIBILITIES 11#12How the Region operates Île-de-France's Regional Council is composed of 209 members, elected in December 2015 for a 6 year mandate (2015-2021). Next elections are due to be held in June 2021. The Regional Council governs the affairs of Ile-de-France through its resolutions. Valérie Pécresse, its elected President, 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 1812 Région îledeFrance Finance Department - Région Ile-de-France 12#13A large scope of responsibilities Transportation Secondary education (investing in and running 472 high schools, 520 000 high-school students) Professional training and employment Economic development, research, and higher education Environment, territorial development Social inclusion, housing, culture and sport IT M Région îledeFrance Ⓒ Finance Department - Région Ile-de-France 13#14A STRONG FINANCIAL SITUATION 14#15Région A balanced budget with a specific focus on investments and tight control of expenses Evolution of the Region's budget since 2011 (in € Bn) Operating expenditures ■Capital expenditures 2.00 1.94 2.00 2.03 2.14 2.05 2.15 2.11 2.23 2.54 2.23 2.57 2.67 2.78 2.70 2.78 2.68 2.64 2.55 2.54 2.51 2.67 CA 2011 CA 2012 CA 2013 CA 2014 CA 2015 CA 2016 CA 2017 CA 2018 CA 2019 CA 2020* BP 2021 To be adopted in May 2021 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 Rationalization of the resources of associated bodies Focus on key regional responsibilities 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 îledeFrance Finance Department - Région Ile-de-France 15#16Between 2016 and 2020, the share of investments has steadily grown, reversing the previous trend In 2020, multi-annual operating expenses represented 41% of total expenses in the preliminary budget, compared to 60% in 2015. In 6 years, the increase in investment expenses represents an equivalent of € 3,6 Bn of additional investments 2015 2016 2017 2018 2019 2020 2021 60% 59% Investments Operating Expenses 40% Operating Expenses Investments Operating Expenses 41% Région îledeFrance 60% Investments 40% 41% -59% + € 3,6 Bn Multi annual opex excl.european funds, Plan 500 000 & PRIC; Multi annual capex (CA 2015 and BP 2016 to 2021) Finance Department - Région Ile-de-France 16#17The Region has achieved €2bn of savings in operating expenses offering leeway to respond to the crisis In 6 years, multi annual operating expenses were reduced by a total of €2bn compared to 2015, representing a savings of € 384 euros per household €2,33 Bn Savings of € 384 per household 2015 Région îledeFrance €2,13 Bn €2,09 Bn €2,05 Bn €2,10 Bn 2016 2017 2018 €1,87 Bn €1,87 Bn stable 2019 2020 2021 Operating expenses excluding European funds, 500 000 plan, PIC / PACTE. Finance Department - Région Ile-de-France 17#182021 budget - Expenditures (€ 4.89 bn) Economy, employment and training € 1,044 M 21% € Debt service costs € 345 M Transports € 1,433 M Secondary schools € 889 M Regional administration 29% € 552M 18% 00 Environment and living environment € 317 M 7% 7% Social and territorial equality International Europe € 72 M 11% € 243 M 5% 2% 44% of 2021 budget expenditures (exc.debt) dedicated to investments (€1,99 Bn) Région îledeFrance Finance Department - Région Ile-de-France 18#192021 budget - Resources (€ 4.89 Bn) The Region resources (€ 4.89 Bn) are composed of revenues (mainly tax related) for 88% and borrowings for 12% Tax revenues: € 3.5 Bn (72% of the 2021 Budget) a portion of the Domestic Tax on the Consumption of Energy Products (TICPE) a share of the Value Added Tax¹ Transfers from the French State: € 0.2 Bn (4% of the 2021 Budget) Misc. € 0.6 Bn (12% of the 2021 Budget) such as European funds and police fines... Borrowings: envelope of €578.8 Mn (12% of the 2021 Budget) 1- to replace general operating grant and the Corporate Value Added Contribution (CVAE) Evolution of the Region's resources since 2011 (in € Bn) ■Revenues 0.71 0.71 0.73 0.65 0.73 Borrowings 0.20 0.80 0.60 0.65 0.58 0.53 4.84 4.74 3.84 3.96 4.07 4.01 4.21 4.21 4.17 4.37 4.31 CA 2011 CA 2012 *To be adopted in May 2021 Région îledeFrance CA 2013 CA 2014 CA 2015 CA 2016 CA 2017 CA 2018 CA 2019 CA 2020* BP 2021 Finance Department - Région Ile-de-France 19#20Financial Ratings MOODY'S <<Aa2» Stable Outlook Short-term credit rating: P-1 Date: December 2020* « very strong operating performance » "strong financial performance and undisputable market access" << strong governance and sophisticated debt management >> << sound & secured liquidity profile»> Fitch Ratings <<AA>> Negative Outlook Short-term credit rating: F1+ Date July 2020* " good governance, reflected in tight expenditure control and prudent debt management »> "robust national and individual debt management framework" «Ile-de-France debt ratios improved in recent years" "strong access to liquidity in various forms" Région îledeFrance *Agencies' ratings reports are available on https://www.iledefrance.fr/region-funding Finance Department - Région Ile-de-France 20 20#21THE REGION'S FINANCING STRATEGY AND DEBT MANAGEMENT 21 21#22A 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 expenditures ■ => Borrowings are investment revenues that can only finance investment 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 - Région 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 Région îledeFrance 46) Finance Department - Région Ile-de-France 22 22#23A strong financial situation 2015 2016 2017 2018 2019 20203 2021 BP4 Gross operating balance (M€) 718 776 1 014 1 052 1 574 1 475 1 262 Current margin rate (%) Debt payback ratio 1 (yrs) Self-financing capacity 2 (%) 20,5 22,5 27,8 29,2 38,2 37,0 32,1 7,5 7,2 5,5 5,4 3,4 3,9 4,5 57,8 67,8 70,9 81,6 104 84,9 95,2 Nota bene: BP (Preliminary Budget) 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 and + € 276,3 M in 2020) 1 Outstanding debt to gross operating surplus 2 Self-financing to capital expenditures excluding debt 3 To be adopted in May 2021 4 Taking into account positive net 2020 result that will be included in the next 2021 supplementary budget (about €484 M). Other revenues may be included in the supplementary budget (EU revenues and revenues from the State regional allocation for anti-crisis investments). Région îledeFrance Finance Department - Région Ile-de-France 23 23#24A diversified financing strategy offering a large access to short and long term liquidity ☐ ☐ € 1bn NEU-CP short term program in French law (2002) Rated Prime-1 ; F1+/ Moody's; Fitch A revolving facility of € 587 M on the period 2007-2022 that can be used for treasury purposes and for longer term borrowings: Drawing request for D+1 Exceptional rates conditions (established in 2007) ☐ € 7bn EMTN program ◉ € 5.1 Bn outstanding by end-2020 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: € 400 M ☐ Opportunistic use of bank loans Région îledeFrance → Outstanding debt by end of 2020 €5.751 Bn Ⓒ Finance Department - Région Ile-de-France 24 24#25Issuance 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 Schuldschein 0.9% Private placements 8.0% Région îledeFrance EIB loans 7.0% CDC loans 3.5% Public bond issues 80.6% Outstanding debt by the end of 2020: € 5.751 Bn Average lifetime: 6,5 years Average rate: 1.85% 88,6% of bonds (Public issues and private placements) 11,4% of banks & institutional loans financing and Schuldschein Data as of 31/12/2020 Finance Department - Région Ile-de-France 25#26Conservative risk management 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 95% of the outstanding debt at fixed rate at the end of 2020 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 2020 ranked in <<the least risky category» or « A1 » according to the French State classification Région îledeFrance Finance Department - Région Ile-de-France 26 26#27Région îledeFrance 24 67 100 24 190 2021 2022 2023 410 150 25 50 26 2024 N 2025 109 501 475 434 300 75 375 26 27 2026 650 60 60 200 2027 ΜΕ Debt amortization profile at the end of 2020 A smooth debt amortization profile spread across the maturity spectrum Green and sustainable bonds now represent 75% of the total debt 009 2028 161 2029 167 2030 751 706 687 500 2031 500 Finance Department - Région Ile-de-France 10 2032 550 10 2033 506 556 500 4 2 2 2 2034 504 Green and sustainability bonds Regular bonds Revolving Other bank end EIB loans ■CDC loans 2 20 2039 2040 250 27 27 250#28REGION ILE-DE-FRANCE A MAJOR PLAYER IN SUSTAINABLE DEVELOPMENT 28#29Sustainable 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 îledeFrance Finance Department - Région Ile-de-France 29 29#30A 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 9 green and sustainability bonds issued since 2012, including 6 benchmark public issues, for a total amount of € 4 Bn In 2019, the Region committed to 100% green & sustainable financing Région îledeFrance Part of the green & sustainability borrowing in the outstanding total debt of the Region 80% 75% 70% 65% 59% 60% 49% 50% 40% 40% 29% 30% 19% 20% 8% 7% 10% 0% 2012 2013 2014 2015 2016 2017 2018 2019 2020 Ⓒ Finance Department - Région Ile-de-France 30#31Commitments 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 Compliance with The Principles Commentte report anthoffunde and opinion External and Independant certificate Aggregated amant îledeFrance YES 2012 2014 2015 2016 2017 2018 2020 € 350 € 600 € 625 € 650 € 500 € 500 € 800 million (2012-2094) Predating the creation ofthe Gran Bond principles YES million (2014-2025) YES million million YES (2016-2025) YES million (2017-2029) million (2018-2033) YES millions (2020-90302040) YES Aligned to the Green Bond Principles and the Sodal Bond Principles Published on the anniversary date Published on the anniversary date Published on the anniversary date Published on the anniversary date Published on the anniversary date Published on the anniversary date To be published In June 2021 vigeo Renewal of 2014 opinion vigeo Renewal of 2016 opinion Renewal of 2016 opinion 2016 second opinion update Deloitte. © Finance Department - Région Ile-de-France 31#32An Advanced sustainability performance V.E VIGEO.EIRIS 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 61 100 Advanced (1) RELATIVE PERFORMANCE Rank in Sector 3/29 79% Company Reporting Rate Sector Average Reporting Rate High severity controversies 78% No (1) Performance level: weak (0-29/100), limited (30-49/100), robust (50-59/100), advanced (60-100/100). Région îledeFrance Finance Department - Région Ile-de-France 32 32#33REGION ILE-DE-FRANCE NEW GREEN, SOCIAL AND SUSTAINABILITY BOND FRAMEWORK 33#34The new Framework's key features GREEN, SOCIAL AND SUSTAINABLE BOND New edition: March 2021 FRAMEWORK 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) Assessment of project categories vs Do No Significant Harm criteria (example in the clean transportation category) 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 - Région Ile-de-France 34#35An 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 - Région Ile-de-France 35#36Regional 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 îlede France SUSTAINABLE DEVELOPMENT GOALS EU Taxonomy Regulations 6 AND SANITATION CLEAN WATER AFFORDABLE AND CLEAVENERSY REGIONAL ENVIRONMENTAL OBJECTIVES NUSTRY INDIEN AND INFRASTRUCTURE SUSTAINABLEC AND COMMENTS 12 RESPONSE CONSUMPTION AND PRODUCTION Fight climate change and protect the atmosphere Preserve biodiversity and protect environments and resources REGIONAL SOCIAL OBJECTIVES 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 13 CLIMATE 15 ON LAND NO POVERTY GOOD HEALTH AND WELL-BEING 4 EDUCATION QUALITY 8 BECENT WORK AND ECONOMIC GROWTH REDUCED INEQUALITIES SUSTAINABLE CITES AND COMMUNITIES Finance Department - Région Ile-de-France Climate change mitigation protection and restoration of biodiversity and ecosystems. NOT YET RELEASED BY THE EU 36#37The alignement 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 V.E 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 protection and restoration of biodiversity and ecosystems. * 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 © Finance Department - Région Ile-de-France 32 37#38Eligible Green Projects categories Region Île-de-France has identified 4 green projects' categories and defined rigorous eligibility criteria for each category to be aligned with the best market practices Green Project Categories Green Buildings Clean Transportation Renewable Energy Terrestrial and aquatic biodiversity conservation Région îledeFrance • . Description 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 Green contribution to the Sustainable Development Goals CLEAN WATER 6 AND SANITATION AFFORDABLE AND CLEANEREDCY 9 NUSSY MINUTE SUSTAINAIRE CITIES ANDINISTRACTE AND COMMUNITIES 12 O 18 RESPONGALE AND PRODUCTION 13 CLIMATE 13 ACTION LIFE 15 ON LAND 38#39Eligible 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. .. 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 Région îledeFrance Social contribution to the Sustainable Development Goals NO GOOD HEALTH QUALITY DECENT WORK AND POVERTY 3 AND WELL-BEING EDUCATION ECONOMIC GROWTH REDUCED INEQUALITIES SUSTAINABLE CITIES AND COMMUNITIES 39#40Estimated funds allocation between Green & Social categories Average % of fund allocation of previous IDF bonds issues Secondary category Dominant category Sustainable Social Green Social Green 1 - Buildings and equipment for education and leisure activities • Building / renovation projects for High Schools and Boarding Schools Building projects for Higher Education 20% 10% 5% • Sports / leisure equipment construction project 5% 2 - Public transport and sustainable mobility . Metro/tram / rail link projects 50% 40% . Specific scheme: Development of roads dedicated to buses 5% • Specific scheme Accessibility Master Plan 5% 3- Renewable energies and Energy efficiency 4- Biodiversity 5% 5% 5 - Social actions in favor of vulnerable populations 5% 6- Social Housing 7-Economic and inclusive development 10% 5% 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, economic and governance responsibility. Région îledeFrance Finance Department - Région Ile-de-France 40#4141 44 A Four-step Selection Process 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. Région îledeFrance 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 The projects' environmental responsibility The projects' social and societal responsibility The projects' economic responsibility Evaluation of the Contribution to the European Union's environmental 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 1. Environmental management and eco-design of the projects 2. Combating climate change and promoting the Region's environmental transition 2 34 Sustainable regional planning and improving quality of life Socially inclusive development, combating inequality, and promoting the safety of individuals 5. Respect for fundamental rights Responsible regional development 7. Regional economic development 8. Fair practices, responsible purchasing and responsible supplier relations 9 6. | Governance 9. Consultation with stakeholders Finance Department - Région Ile-de-France#42A 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 îledeFrance 42 Finance Department - Région Ile-de-France#43A 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: For all green projects : CO2 emissions avoided by the Project (in teq/year) For all social projects: number of jobs created by the project and number of beneficiaries of the project Reporting methodology and assumptions used to report will be publicly disclosed. Région îledeFrance Finance Department - Région Ile-de-France 43 43#44☐ A remarkable Second-Party Opinion New Île-de-France Region Framework has been reviewed by Vigeo Eiris (V.E) in March 2021 V.E VIGEO.EIRIS 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 Best Practices ✔ Vigeo Eiris considers that the content, eligibility and exclusion criteria of the UoP are clear and in line with international standards for all categories. Eval & Selection of Eligible Categories Best Practices ✔ Vigeo Eiris highlights that the process of selection and exclusion are clearly defined and detailed for all the Eligible Categories. Management of Proceeds Best Practices ✔ Vigeo Eiris 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. Monitoring & Reporting Région îledeFrance Aligned Vigeo Eiris mentions that the monitoring and reporting section of the Île-de-France Region is aligned. Finance Department - Région Ile-de-France 44#45Investment highlights Ratings of Aa2 (stable) Moody's / AA (negative) Fitch A solid 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 îledeFrance Finance Department - Région Ile-de-France 45 45#46APPENDICES 46 46#47French 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 - Région Ile-de-France 47 47#48A 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 - Région Ile-de-France 48 48#49ㅁㅁㅁ Région The 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 îledeFrance Finance Department - Région Ile-de-France 49#50Région Ile-de-France, Société du Grand Paris, Ile-de- France Mobilités, RATP et 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. Société du Grand Paris Public industrial and commercial undertaking ("EPIC”) 100% owned by the state - Supervisory Board (representatives of the State and local authorities, 21 members). filede France mobilités Public administrative institution << EPA » Council composed of 29 members, representing « départements >>, Ile-de-France Region and the French State, - chaired by Valérie PECRESSE. RATP DEMANDEZ NOUS LA VILLE SNCF RATP: Public industrial and commercial undertaking ("EPIC") SNCF : Limited Company 100% owned by the state 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. Design, develop and finance the Grand Paris Express project (200 km of metro lines, 100 % automatic; 68 new stations). Authority in charge of transportation in Ile-de-France Region. -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 - Région Ile-de-France 50 50#51A 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 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 Act II A regional COP for a greener Île-de-France 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 - Région Ile-de-France 51 5554#52Contacts and documentation Conseil régional d'Île-de-France, Direction des finances, 2 rue Simone Veil, 93400 Saint-Ouen [email protected] Paul BERARD Deputy general manager in charge of finances [email protected] Région îledeFrance Manuel THOMAS Finance director (head of funding) [email protected] Homepage : https://www.iledefrance.fr/financement-region In English: https://www.iledefrance.fr/region-funding Finance Department - Région Ile-de-France 52