#1THE GOVERNMENT OF THE GRAND-DUCHY OF LUXEMBOURG Ministry of Finance Investor Presentation June 2013 S#2• THE GOVERNMENT OF THE GRAND-DUCHY OF LUXEMBOURG Ministry of Finance 1: LUXEMBOURG IN A NUTSHELL 2: KEY DATA 3: PUBLIC FINANCES . 4: CREDIT RATING . 5: DIVERSIFIED ECONOMY . • Overview 6: STRONG PRESENCE IN THE GLOBAL WORLD OF FINANCE 7: DEBT MANAGEMENT 8: NEXT ISSUANCE 9: CONTACT DETAILS Investor Presentation, June 2013 1 of 40#3THE GOVERNMENT OF THE GRAND-DUCHY OF LUXEMBOURG Ministry of Finance 1: LUXEMBOURG IN A NUTSHELL LUXEMBOURG Investor Presentation, June 2013 Official designation Area Capital Population Languages Grand Duchy of Luxembourg 2,586 km2 Luxembourg 524,900 inhabitants (comprising 56% Luxembourg nationals and 44% foreign residents) Currency Euro Political system Head of state Head of government Founding member of major international organisations European Union Capital Lëtzebuergesch (the national language) French, German and Lëtzebuergesch (administrative and legal languages) English (spoken by a large proportion of the population) Parliamentary democracy within the system of a constitutional monarchy HRH Grand Duke Henri Jean-Claude Juncker, Prime Minister Benelux, United Nations (UN), Organization for Economic Co-operation and Development (OECD), Council of Europe and North Atlantic Organization (NATO), European Union (EU), European Financial Stability Facility (EFSF), European Stability Mechanism (ESM) European Court of Justice, European Investment Bank, European Investment Fund, European Commission Services (Translation, Publications, Statistics), European Court of Auditors, Secretariat of the European Parliament, EFSF, ESM 2 of 40#4THE GOVERNMENT OF THE GRAND-DUCHY OF LUXEMBOURG Ministry of Finance 1: LUXEMBOURG IN A NUTSHELL Leading international financial center Dedicated public incentive framework for R&D Skilled multicultural and multilingual workforce Efficient logistic network Strategic position in the heart of Europe Very stable political and social environment Investor Presentation, June 2013 Quick decision making process and accessibility Business friendly environment with modern infrastructures Solid public finances and fiscal stability ولة 3 of 40#5• THE GOVERNMENT OF THE GRAND-DUCHY OF LUXEMBOURG Ministry of Finance 1: LUXEMBOURG IN A NUTSHELL 2: KEY DATA 3: PUBLIC FINANCES . 4: CREDIT RATING . 5: DIVERSIFIED ECONOMY . • Overview 6: STRONG PRESENCE IN THE GLOBAL WORLD OF FINANCE 7: DEBT MANAGEMENT 8: NEXT ISSUANCE 9: CONTACT DETAILS Investor Presentation, June 2013 4 of 40#6THE GOVERNMENT OF THE GRAND-DUCHY OF LUXEMBOURG Ministry of Finance 2: KEY DATA In % Year Luxembourg Euro-Zone 2003- 2012 2013 (F) 2014 (F) 2012 2013 (F) 2014 (F) 2007 Real GDP growth +4.5 +0.3 +0.8 +1.6 -0.6 -0.4 +1.2 Inflation (HICP) 3.0 2.9 1.9 1.7 2.5 1.6 1.5 Unemployment 4.1 5.1 5.5 5.8 11.4 12.2 12.2 Current Account Balance +10.4 +5.6 +6.3 +6.4 +1.8 +2.5 +2.7 Budgetary Balance +0.8 -0.8 -0.2 -0.4 -3.7 -2.9 -2.8 Gross Public Debt 6.4 20.8 23.4 25.5 92.7 95.5 96 Source: European Economic Forecast, Spring 2013 Year Nominal GDP GDP per capita (at market prices) Source: Statec / Eurostat Investor Presentation, June 2013 Luxembourg 2012 Euro-Zone 2012 45 bn EUR 84,000 EUR 9,487 bn EUR 29,000 EUR وم 5 of 40#7• THE GOVERNMENT OF THE GRAND-DUCHY OF LUXEMBOURG Ministry of Finance 1: LUXEMBOURG IN A NUTSHELL 2: KEY DATA 3: PUBLIC FINANCES . 4: CREDIT RATING . 5: DIVERSIFIED ECONOMY . • Overview 6: STRONG PRESENCE IN THE GLOBAL WORLD OF FINANCE 7: DEBT MANAGEMENT 8: NEXT ISSUANCE 9: CONTACT DETAILS Investor Presentation, June 2013 6 of 40#8THE GOVERNMENT OF THE GRAND-DUCHY OF LUXEMBOURG Ministry of Finance 3: PUBLIC FINANCES Luxembourg is the only country that has consistently respected the Maastricht criteria Budgetary Deficit <3% of GDP 5% 4% plo do do do do 7% 6% 3% 2% 1% 0% -1% - -2% -3% -4% -5% 2011 20.10 2009 2008 2007 2006 2005 2004 2003 2002 2001 REFERENCE VALUE: -3% OF GDP . Budgetary balance - in % of GDP 2000 Source: 14th Update of the Luxembourg Stability and Growth Programme 2013-2016 Investor Presentation, June 2013 2016 2015 7 of 40#9THE GOVERNMENT OF THE GRAND-DUCHY OF LUXEMBOURG Ministry of Finance 3: PUBLIC FINANCES 35 000 Gross Public Debt < 60% of GDP REFERENCE VALUE: 60% OF GDP 30 000 25 000 20 000 15 000 10 000 5 000 2016 2015 2014 2013 2007 2006 2005 2004 2003 2002 2001 2000 Gross Public Debt in mln euros Source: 14th Update of the Luxembourg Stability and Growth Programme 2013-2016 Gross Public Debt in % of GDP 2012 2011 2010 2009 2008 Investor Presentation, June 2013 70% 60% 50% 40% 30% 20% 10% 0% 8 of 40#10THE GOVERNMENT OF THE GRAND-DUCHY OF LUXEMBOURG Ministry of Finance 2013 ■2012 3: PUBLIC FINANCES Budgetary Balance, general government (as a percentage of GDP) Germany Luxembourg Finland Austria Netherlands Euro-zone France -6% -5% -4% -3% -2% -1% 0% 1% Percentage of GDP Source: European Economic Forecast, Spring 2013 Investor Presentation, June 2013 ولة 9 of 40#11THE GOVERNMENT OF THE GRAND-DUCHY OF LUXEMBOURG Ministry of Finance Luxembourg Finland Netherlands Austria Germany Euro-zone France 3: PUBLIC FINANCES Gross Public Debt, general government (as a percentage of GDP) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Percentage of GDP Source: European Economic Forecast, Spring 2013 Investor Presentation, June 2013 2013 2012 10 of 40#12THE GOVERNMENT OF THE GRAND-DUCHY OF LUXEMBOURG Ministry of Finance 3: PUBLIC FINANCES Luxembourg's public debt is mainly composed of central government debt and local government debt. On the asset side, the Grand-Duchy of Luxembourg holds assets worth > 37.5% of GDP, i.e. higher than the level of gross public debt. Assets include: • • A pension reserve of 27.5% of GDP - in which social security payments surpluses are transferred to secure future payment obligations Stakes in listed and non-listed companies worth more than 10% of GDP Investor Presentation, June 2013 11 of 40#13• THE GOVERNMENT OF THE GRAND-DUCHY OF LUXEMBOURG Ministry of Finance 1: LUXEMBOURG IN A NUTSHELL 2: KEY DATA 3: PUBLIC FINANCES . 4: CREDIT RATING . 5: DIVERSIFIED ECONOMY . • Overview 6: STRONG PRESENCE IN THE GLOBAL WORLD OF FINANCE 7: DEBT MANAGEMENT 8: NEXT ISSUANCE 9: CONTACT DETAILS Investor Presentation, June 2013 12 of 40#14THE GOVERNMENT OF THE GRAND-DUCHY OF LUXEMBOURG Ministry of Finance 4: CREDIT RATING Standard & Poor's AAA Stable outlook Moody's Fitch Aaa Negative outlook AAA Stable outlook The rationale behind this strong AAA rating is: Standard & Poor's High wealth levels, GDP per capita likely to exceed a forecast €86,000 in 2013 A stable, predictable, and transparent political environment A strong government balance sheet Outlook: Luxembourg's strong government balance sheet, wealthy population, and stable political environment should be sufficient to outweigh risks to its economy. Moody's Fitch . Large net financial assets and low levels of public debt Political stability and historically robust economic performance Attractive business environment Outlook: negative outlook is part of a broader exercise reassessing the outlook on Aaa-rated member countries of the euro area in the context the sovereign crisis. Rich Economy, Strong Institutions Strong Public Balance Sheet Large, Sound Financial Sector Outlook: strong and stable institutions foster confidence in the sovereign's ability and willingness to honour its public debt commitments. Source: Moody's / Standard & Poor's / Fitch Investor Presentation, June 2013 13 of 40#15• THE GOVERNMENT OF THE GRAND-DUCHY OF LUXEMBOURG Ministry of Finance 1: LUXEMBOURG IN A NUTSHELL 2: KEY DATA 3: PUBLIC FINANCES . 4: CREDIT RATING . 5: DIVERSIFIED ECONOMY . • Overview 6: STRONG PRESENCE IN THE GLOBAL WORLD OF FINANCE 7: DEBT MANAGEMENT 8: NEXT ISSUANCE 9: CONTACT DETAILS Investor Presentation, June 2013 14 of 40#16THE GOVERNMENT OF THE GRAND-DUCHY OF LUXEMBOURG Ministry of Finance 5: DIVERSIFIED ECONOMY 2012 Gross value added by activities (at basic prices) Wholesale and retail trade, HORECA, transports and communications Financial activities Real estate activities Education and human health services Construction 6% Other manufacturing 5% Public administration 5% Other services 2% 9% 21% 24% 25% Manufacture of basic metals and fabricated metal products 2% Electricity, gas and water supply 1% Agriculture, forestry and fishing 0% 0% 5% 10% 15% 20% 25% 30% Investor Presentation, June 2013 Source: Statec in % 15 of 40#17• THE GOVERNMENT OF THE GRAND-DUCHY OF LUXEMBOURG Ministry of Finance 1: LUXEMBOURG IN A NUTSHELL 2: KEY DATA 3: PUBLIC FINANCES . 4: CREDIT RATING . 5: DIVERSIFIED ECONOMY . Overview 6: STRONG PRESENCE IN THE GLOBAL WORLD OF FINANCE • 7: DEBT MANAGEMENT 8: NEXT ISSUANCE 9: CONTACT DETAILS Investor Presentation, June 2013 16 of 40#18• THE GOVERNMENT OF THE GRAND-DUCHY OF LUXEMBOURG Ministry of Finance 6: STRONG PRESENCE IN THE GLOBAL WORLD OF FINANCE The Luxembourg financial services center is highly specialised with an international, cross-border focus Financial institutions based in Luxembourg invest globally in over 30 countries in Europe and beyond • Activities revolved around: Asset Management & Investment Wealth Management Insurance & reinsurance Corporate Finance Structured Finance Investor Presentation, June 2013 17 of 40#19THE GOVERNMENT OF THE GRAND-DUCHY OF LUXEMBOURG Ministry of Finance 6: STRONG PRESENCE IN THE GLOBAL WORLD OF FINANCE Luxembourg has 141 banks from 26 countries, of which: 106 subsidiaries 35 branches Total balance sheet of EUR 750 bn (16x GDP) Of the 141 banks, only a handful have a domestic focus and are systemically relevant for the Luxembourg economy. Assets related to such domestic operations constitute only aprroximately 3x GDP France Switzerland Italy Sweden Country of origin Germany Number 37 13 11 9 8 Belgium 7 United Kingdom 7 USA 6 Japan 5 Luxembourg 5 Brazil 4 China 4 Israel 3 Netherlands 3 Qatar 3 Andorra 2 Canada 2 2 Spain Norway Greece Latvia 2 Portugal 2 Denmark 1 1 1 Liechtenstein 1 Russia 1 Turkey 1 TOTAL 141 Source: CSSF Investor Presentation, June 2013 18 of 40#20THE GOVERNMENT OF THE GRAND-DUCHY OF LUXEMBOURG Ministry of Finance 6: STRONG PRESENCE IN THE GLOBAL WORLD OF FINANCE Private Banking sector: 19% are local clients, 25% of clients are from Belgium, France and Germany, 56% from other countries Geographic Origin of Private Banking Clients Not defined 22% United States of Other non-EU Countries America 0% Africa 0% Middle East 2% Latin America 4% Source: Private Banking Group, Luxembourg Investor Presentation, June 2013 7% Asia & Asia-Pacific 2% Other European Countries 17% Eastern Europe (non-EU). 2% Luxembourg 19% Belgium, France, Germany 25% S 19 of 40#21THE GOVERNMENT OF THE GRAND-DUCHY OF LUXEMBOURG Ministry of Finance 6: STRONG PRESENCE IN THE GLOBAL WORLD OF FINANCE • Strong capitalization of Luxembourg-based banks • Overall solvency ratio of over 17% in 2012, more than twice the legally required minimum of 8%. % 20% Solvency Raio in 18% 16% 14% 12% 10% 8% 6% 0% de de do 4% 2% Legal required minimum 2002 2001 2000 1999 1998 1997 1996 Source: CSSF Investor Presentation, June 2013 2003 2004 2012 2011 2010 2009 2008 2007 2006 2005 Solvency Ratio 20 of 40#22THE GOVERNMENT OF THE GRAND-DUCHY OF LUXEMBOURG Ministry of Finance 6: STRONG PRESENCE IN THE GLOBAL WORLD OF FINANCE • Luxembourg was the first EU Member State to transpose the UCITS Directive in 1985 It has since developed into the number 1 investment fund centre in Europe by assets under management Number of funds 4500 4000 3500 3000 3000 2500 2000 1500 Net Assets in min of euros 2500 2000 1500 1000 500 0 Investor Presentation, June 2013 2012 2010 2008 2006 2004 2002 2000 Numer of funds 1998 1996 Net assets 1994 1992 1990 Source: CSSF 1000 500 0 21 of 40#23THE GOVERNMENT OF THE GRAND-DUCHY OF LUXEMBOURG Ministry of Finance 6: STRONG PRESENCE IN THE GLOBAL WORLD OF FINANCE International and diversified fund industry • Nearly 4000 investment funds sold in over 70 countries Over 700 promoters of funds( i.e. institutions having launched funds, or initiators) originating from 60 countries 66 depositary banks and 139 (regulated) central administrations safeguarding respectively administering the assets in the funds Investor Presentation, June 2013 22 of 40#24THE GOVERNMENT OF THE GRAND-DUCHY OF LUXEMBOURG Ministry of Finance 6: STRONG PRESENCE IN THE GLOBAL WORLD OF FINANCE Luxembourg is furthermore one of the EU's major centres in the Insurance and Reinsurance industry International activity represents 90% EUR 172 bn of total balance sheet 331 entities EUR 35 bn of premiums received Strong solvency margin of 231% (2,5 x the legal minimum) Source: CAA Investor Presentation, June 2013 23 of 40#25THE GOVERNMENT OF THE GRAND-DUCHY OF LUXEMBOURG Ministry of Finance 6: STRONG PRESENCE IN THE GLOBAL WORLD OF FINANCE • • Prudential supervision of the financial sector by the Commission de Surveillance du Secteur Financier (CSSF) Participation in the prudential supervision of the financial sector and the exercise of the oversight of payment and settlement systems by the Banque centrale du Luxembourg (BCL) • Insurance and Reinsurance industry supervised by the Commissariat Aux Assurances (CAA) • Internationally recognized financial supervision • Foreign banks based in Luxembourg are controlled not only by the Luxembourgish regulator but also by the banking supervisor of the home country of the mother company • Regular reviews of standards & practices at European and international level Investor Presentation, June 2013 Highly regulated market 24 of 40#26• THE GOVERNMENT OF THE GRAND-DUCHY OF LUXEMBOURG Ministry of Finance 1: LUXEMBOURG IN A NUTSHELL 2: KEY DATA 3: PUBLIC FINANCES . 4: CREDIT RATING . 5: DIVERSIFIED ECONOMY . Overview 6: STRONG PRESENCE IN THE GLOBAL WORLD OF FINANCE • 7: DEBT MANAGEMENT 8: NEXT ISSUANCE 9: CONTACT DETAILS Investor Presentation, June 2013 25 of 40#27THE GOVERNMENT OF THE GRAND-DUCHY OF LUXEMBOURG Ministry of Finance 7: DEBT MANAGEMENT Outstanding Luxembourg Government Bonds (LGB) Launch date Amount issued Maturity Maturity date Coupon Yield* Currency LGB 3.75% 2013 07/11/2008 2,000,000,000 5 years 04/12/2013 3.750% MS-30 bps EUR LGB 3.375% 2020 11/05/2010 2,000,000,000 10 years 18/05/2020 3.375% MS-6 bps EUR LGB 2.25% 2022 12/03/2012 1,000,000,000 10 years 21/03/2022 2.250% MS-2 bps EUR LGB 2.25% 2028 12/03/2013 750,000,000 15 years 19/03/2028 2.250% MS+14bps EUR * June 6, 2013 Source: State Treasury Investor Presentation, June 2013 26 of 40#28THE GOVERNMENT OF THE GRAND-DUCHY OF LUXEMBOURG Ministry of Finance LGB €0.75bn 15-year 2.25% 03/2028 7: DEBT MANAGEMENT The Grand Duchy of Luxembourg AAAAaa (S&P / Moody's) € 750 million Issuer: Issue ratings: Size: Launch date: 12 March 2013 Maturity: 19 March 2028 Coupon: Reoffer yield: Reoffer spread: Governing Law: Listing: Denominations: Joint Lead Managers: Distribution by geography 2.250%, annual, ACT/ACT 2.285% MS +8bp (DBR 5.625% 1/28 +29.8bp) Luxembourg Law Luxembourg Stock Exchange €1,000 BCEE, BGL BNP PARIBAS, BIL, SG Deal summary • After closely monitoring the market reaction to the downgrade by Fitch of Italy on Friday 8 March, the syndicate banks assessed investor sentiment as constructive and recommended that the Grand Duchy of Luxembourg go ahead with the transaction. The mandate for a new 15 year EUR benchmark bond was announced on Monday, 11 March. • • At the start of the next day, and after rapidly assessing market conditions, books officially opened at 10:45 CET with a price guidance set at "Mid Swaps + 8bps area". Books steadily grew during the next hours and when final spread was set at "Mid Swaps + 8bps", total demand grew above EUR 800m and this despite some intraday volatility in the EUR government bond market. In light of the contemplated issue amount of EUR 750m the books were closed at 2.30pm CET. The pricing level of this longer-dated transaction is a further testimony that fixed income investors value the intrinsic quality and stability an issuer such as the Grand Duchy of Luxembourg offers - enabling it to price its longest EUR government bond ever at a spread of only 29.8bp over Germany. In total, 73 investors participated in the transaction, highlighting the granularity of the investor demand. Investor demand was spread over 8 countries with a very strong support from Luxembourg domestic accounts who picked up 28% of the transaction, followed by Germany with 25%, France and Belgium respectively took up 11% and 8%. Distribution by investor type Luxembourg (28.3%) Germany (25.4%) Investor Presentation, June 2013 France (11.8%) Belgium (7.7%) UK (7.3%) Netherlands (7.3%) ■Switzerland (5.8%) Others (6.4%) ■Banks (57%) Asset Managers (27%) Insurance/Pension (16%) 27 of 40#29THE GOVERNMENT OF THE GRAND-DUCHY OF LUXEMBOURG Ministry of Finance LGB €1.0bn 10-year 2.25% 03/2022 7: DEBT MANAGEMENT Issuer: Issue ratings: The Grand Duchy of Luxembourg AAAAaa (S&P / Moody's) Size: € 1.0 billion 12 March 2012 Launch date: Maturity: Coupon: Reoffer yield: Reoffer spread: Governing Law: Listing: Denominations: Joint Lead Managers: Distribution by geography 21 March 2022 2.250%, annual, ACT/ACT 2.292% MS +6bp (DBR 2.00% 1/22 +53.8bp) Luxembourg Law Luxembourg Stock Exchange €1,000 BCEE, BGL BNP PARIBAS, BIL, SG Deal summary • The mandated banks gauged investor sentiment for such a transaction and scouted likely timing and guidance at the open. Given the supportive market environment, it was decided to go ahead on this very day.Investor response was very brisk as soon as the mandate announcement hit the screens on Thursday March 8, 2012. • After rapidly assessing market conditions, books were officially opened at 10:10 CET with an initial price thoughts of "Mid Swaps + 8 to 10bps". The official price guidance was set a Mid Swaps +7bps area at 11:00 CET following the strong investor response. Books closed at 12:30 CET with a final orderbook size of EUR 2.6bn and 113 high quality accounts involved, allowing thus to set final terms for a EUR 1bn issue at MS + 6 bps, below the initial guidance, while giving care for potential after-market performance. • The final spread and transaction size testify of the popularity of Luxembourg's signature. The two previous transactions' high performance undeniably helped to build a strong momentum enabling the Grand Duchy to successfully launch its third bond issue in an historically low absolute yield environment. In total, 113 investors participated in the transaction coming from 18 jurisdictions - illustrating the granular placement and broad appeal of this rare issuer. Luxembourg domestic accounts also strongly supported the deal accounting for 33% of the transaction. Distribution by investor type I Luxembourg (33%) Germany (22%) ■UK (6%) Investor Presentation, June 2013 France (5.5%) Other Eurozone (8.5%) Other Europe (6.5%) Other (18.5%) ■■Banks (41%) Asset Managers (22%) Central Banks (19.5%) Insurance/Pension (13.5%) Other (4%) 28 of 40#30THE GOVERNMENT OF THE GRAND-DUCHY OF LUXEMBOURG Ministry of Finance LGB €2.0bn 10-year 3.375% 05/2020 7: DEBT MANAGEMENT Issuer: The Grand Duchy of Luxembourg Issue ratings: AAA/AAA (S&P / Fitch) Size: € 2.0 billion Launch date: 11 May 2010 Maturity: 18 May 2020 Coupon: Reoffer yield: Reoffer spread: Governing Law: Listing: Denominations: 3.375%, annual, ACT/ACT 3.390% MS +18bp (DBR 3.25% 1/20 +51.6bp) Luxembourg Law Luxembourg Stock Exchange €1,000 Joint Lead Managers: BCEE, BGL BNPP, BNPP, DEXIA CM Distribution by geography Deal summary • The mandated banks, sensing a turn in sentiment in the credit markets, gauged investor sentiment for such a transaction and scouted likely timing and guidance at the open. Investor response was very brisk as soon as the mandate announcement hit the screens at 11 AM CET, confirming the right choice of product to reopen a market, which while more balanced than in previous weeks, remains rather risk-wary, given ongoing uncertainties. • After rapidly assessing market conditions, books were officially opened at 13:00 CET with a price guidance set at "Mid Swaps +20 area". Over EUR 1.5 bn in orders were garnered by 14:30, breaching the EUR 2bn mark at 15:00 CET. Books closed at 15:30 with a final orderbook size of EUR 2.75bn and next to 120 high quality accounts involved, allowing thus to set final terms for a EUR 2bn issue at MS +18 bps, inside the initial guidance, while giving care for potential aftermarket performance. • The final spread and transaction size testify to the huge popularity of Luxembourg's signature, a rare credit that finally triggered renewed investor appetite for bestrated transactions and thus reopened the EUR market. • In total, 115 investors participated in the transaction. Investor demand was spread over 15 countries with a very strong support from Luxembourg domestic accounts picking up 32% of the transaction. Distribution by investor type Investor Presentation, June 2013 I Luxembourg (31%) France (19%) Germany (15%) ■Belgium (10%) ■Switzerland (7%) UK (5%) Netherlands (3%) Nordics (3%) Asia (3%) Italy (2%) Other Europe (2%) Banks (37%) Asset Managers (29%) Insurance/Pension (24%) Central Banks (5%) Corporates (5%) 29 of 40#31THE GOVERNMENT OF THE GRAND-DUCHY OF LUXEMBOURG Ministry of Finance 7: DEBT MANAGEMENT LGB 3,375% 2020 Yield compared to other euro-zone sovereign issuers Yield -LGB 5/20 DBR 7/20 RFGB 4/20 NETHER 7/20 RAGB 7/20 4,0 3,5 3,0 2,5 2,0 1,5 1,0 воз ولة 0,5 06/11 12/11 06/12 12/12 06/13 Source: Bloomberg Investor Presentation, June 2013 30 of 40#32THE GOVERNMENT OF THE GRAND-DUCHY OF LUXEMBOURG Ministry of Finance 7: DEBT MANAGEMENT LGB 3,375% 2020 ASW compared to other euro-zone sovereign issuers ASW LGB 5/20 - DBR 7/20 RFGB 4/20 NETHER 7/20 RAGB 7/20 150 100 50 -50 жут -100 06/11 12/11 06/12 12/12 06/13 Source: Bloomberg Investor Presentation, June 2013 31 of 40#33THE GOVERNMENT OF THE GRAND-DUCHY OF LUXEMBOURG Ministry of Finance 7: DEBT MANAGEMENT LGB 2,25% 2022 Yield compared to other euro-zone sovereign issuers Yield - LGB 3/22 DBR 7/22 RFGB 9/22 NETHER 7/22 RAGB 4/22 2,6 2,4 2,2 2,0 MM 1,8 1,6 1,4 1,2 ولة 1,0 06/12 08/12 10/12 12/12 02/13 04/13 06/13 Source: Bloomberg Investor Presentation, June 2013 32 of 40#34THE GOVERNMENT OF THE GRAND-DUCHY OF LUXEMBOURG Ministry of Finance ASW 70 50 30 10 -10 -30 -50 7: DEBT MANAGEMENT LGB 2,25% 2022 ASW compared to other euro-zone sovereign issuers LGB 3/22 DBR 7/22 سلالته RFGB 9/22 NETHER 7/22 RAGB 4/22 ولة -70 06/12 08/12 10/12 12/12 02/13 04/13 06/13 Source: Bloomberg Investor Presentation, June 2013 33 of 40#35THE GOVERNMENT OF THE GRAND-DUCHY OF LUXEMBOURG Ministry of Finance ASW 80 60 70 60 50 40 40 30 Love 20 20 10 0 06/11 Source: Bloomberg 7: DEBT MANAGEMENT Spread LGB vs DBR LGB 5/20 vs. DBR 7/20 LGB 3/22 vs. DBR 7/22 س 09/11 12/11 03/12 06/12 09/12 12/12 03/13 06/13 Investor Presentation, June 2013 34 of 40#36THE GOVERNMENT OF THE GRAND-DUCHY OF LUXEMBOURG Ministry of Finance 7: DEBT MANAGEMENT Luxembourg has a well-spread debt maturity profile and limited refinancing needs in mln of euros 2 500 € 2000 1 500 Loans Institutional Bonds Retail Bonds LIKE 1000 500 0 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Source: Trésorerie de l'Etat Investor Presentation, June 2013 2026 2027 2028 35 of 40#37• THE GOVERNMENT OF THE GRAND-DUCHY OF LUXEMBOURG Ministry of Finance 1: LUXEMBOURG IN A NUTSHELL 2: KEY DATA 3: PUBLIC FINANCES . 4: CREDIT RATING . 5: DIVERSIFIED ECONOMY . • Overview 6: STRONG PRESENCE IN THE GLOBAL WORLD OF FINANCE 7: DEBT MANAGEMENT 8: NEXT ISSUANCE 9: CONTACT DETAILS Investor Presentation, June 2013 36 of 40#38THE GOVERNMENT OF THE GRAND-DUCHY OF LUXEMBOURG Ministry of Finance 8: NEXT ISSUANCE Indicative terms and conditions: Issuer: Issuer Rating: Currency: The Grand Duchy of Luxembourg AAA(S&P) / Aaa (Moody's) / AAA (Fitch) EUR Size: Benchmark size Tenor: [ ] Timing: [June] Clearing: Governing Law: Listing: Denominations: Documentation: Joint Lead Managers: LuxCSD Luxembourg Law Luxembourg Stock Exchange €1,000 Standalone (RegS, CAC) BCEE, BGL BNP PARIBAS, BIL, DB, HSBC Investor Presentation, June 2013 37 of 40#39• THE GOVERNMENT OF THE GRAND-DUCHY OF LUXEMBOURG Ministry of Finance 1: LUXEMBOURG IN A NUTSHELL 2: KEY DATA 3: PUBLIC FINANCES . 4: CREDIT RATING . 5: DIVERSIFIED ECONOMY . • Overview 6: STRONG PRESENCE IN THE GLOBAL WORLD OF FINANCE 7: DEBT MANAGEMENT 8: NEXT ISSUANCE 9: CONTACT DETAILS Investor Presentation, June 2013 38 of 40#40THE GOVERNMENT OF THE GRAND-DUCHY OF LUXEMBOURG Ministry of Finance 9: CONTACT DETAILS Contact numbers Email Georges HEINRICH +352 247-82703 Director of Treasury Paul HILDGEN* +352 247-82728 Treasury department Charles RIES +352 247-82767 Treasury department Marie-Jeanne CONTER +352 247-82798 Treasury department +352 247-82749 Luc WITRY Treasury department Michel HAAS Ministry of Finance Nima AHMADZADEH Ministry of Finance * Coordinator Ministry of Finance 3 rue de la Congrégation L-1352 Luxembourg Luxembourg http://www.mf.public.lu/ +352 247-82680 +352 247-82613 State Treasury 3 rue du Saint-Esprit L-1475 Luxembourg Luxembourg http://www.te.public.lu/ [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] Investor Presentation, June 2013 39 of 40#41THE GOVERNMENT OF THE GRAND-DUCHY OF LUXEMBOURG Ministry of Finance LEGAL DISCLAIMER This presentation has been prepared and presented by the Grand Duchy of Luxembourg acting through its Ministry of Finance (the "Issuer") in connection with the proposed Offer ("the Offer"). This document does not qualify as a prospectus within the meaning of Article 3 of the Directive 2003/71/EC nor within the meaning of Article 5 and following of the Luxembourg law in relation to prospectuses for securities (the "Luxembourg Prospectus Law"). This document does not either qualify as a simplified prospectus within the meaning of Article 30 of the Luxembourg Prospectus Law. The Bonds to be issued under the Offer will not be registered under the U.S. Securities Act of 1933 and are subject to U.S. tax law requirements. Subject to certain conditions, the Offer may not be available for offer, sale and/ or delivery within the United States or to U.S. persons. This document and its contents have not been approved by the UK Financial Services Authority or an authorized person (as defined in the Financial Services and Markets Act 2000 (the "FSMA") for distribution. The Issuance will comply with all applicable provisions of the FSMA with respect to anything done by it in relation to the Bonds in, from or otherwise involving the United Kingdom. The Issuer will only communicate or cause to be communicated an invitation or inducement to engage in investment activity (within the meaning of Section 21 of the FSMA) received by it in connection with the issue or sale of any Bonds in circumstances in which Section 21(1) of the FSMA does not apply to it. Please be aware that this presentation has not been approved by the Luxembourg Financial Services Authority, the Commission de surveillance du secteur financier. Its content has not been independently verified and may be subject to revision and / or modification before closing. Any statements, projections and / or forecasts are not reliable guarantees for future performances. Each potential investor remains solely responsible for evaluating in the light of his own personal and financial circumstances the risks and benefits of investing in the Offer. The Offer may not be suitable for all investors. Each possible investor is invited to consult with its personal advisors on legal, tax and related matters concerning the Offer. This document does not constitute an investment advice. The final version of the terms and conditions as detailed in the Offer's Prospectus shall prevail. This document remains the property of the Issuer. Investor Presentation, June 2013 40 of 40