#1REGION ILE-DE-FRANCE Investor presentation June 2020 Direction des finances - Région Ile-de-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. 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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. *îlede France Direction des finances - 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 GREEN AND SUSTAINABILITY FUNDING STRATEGY APPENDICES Direction des finances - Région Ile-de-France 3#4Region Ile-de-France, a leading local authority in Europe 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) Direction des finances - Région Ile-de-France 12 million inhabitants 8 "départements" 2018 4#5A dynamic population ☐ The most densely populated French region, with 12,2 million inhabitants (as of 1 January 2019) ☐ 19% of Mainland France's population in 2% of the country's territory (12,012 Km²) Regional population distribution by age 35,0% 30,0% 25,0% 20,0% 15,0% 10,0% 5,0% 0,0% 0 to 19 years 20 to 39 years 40 to 59 years 60 to 74 years 75 and above Ile-de-France France (as a whole) More than one child out of five is born in Ile-de-France Almost 55 % of Ile de France's population is aged under 40 23% of France's total workforce 2.4% of Europe's working-age population Source: INSEE Direction des finances - Région Ile-de-France *îlede France 5#6The leading economic region in France ☐ The wealthiest region in France € 734 Bn GDP in 2018 31% of France's GDP 5.5% of EU-27's GDP ☐ One of the highest GDP per capita in Europe (€59,700 in 2018), representing 198% of European average. *îlede France Stockholm Copenhague Produit Intérieur Brut par habitant (en SPA) 15 000 ou moins 15 001 à 20 000 20 001 à 25 000 25 001 à 30 000 plus de 30 000 Helsinki Tallinn Riga Vilnius Varsovie- pays hors UE donnée non disponible * Standard du pouvoir d'achat (SPA): unité communautaire de parité de pouvoir d'achat qui permet une compparaison des volumes réels des biens et services produits dans différents pays, en éliminant les différences de niveaux de prix. Dublin Amsterdama Berlin Londres Bruxelles Prague Luxembourg Bratislava Paris Vienne Budapest Bucarest Ljubljana Zagreb Rome Madrid Lisbonne Sofia Nicosie La Valette Source: Eurostat 500 km Source: Eurostat 2013 IAU idF EuroGeographics pour les limites administratives One of the main economic hubs in Europe, and amongst the largest in the world : greatest concentration in Europe of large companies ranking in the world top 500, - largest stock of commercial real estate in Europe (53 M Sq m) Direction des finances - Région Ile-de-France 60#7An extremely attractive region A highly-qualified population: - 33% of French executives 38% of France's research staff in 2014 (including 155,842 paid researchers) 887,750 companies in sectors ranging from high- technology to traditional industrial businesses A transportation network that ranks among the most developed ones in the world : - 206 km of subway lines (which will double with the "Grand Paris Express") 1,820 km of railways 105 km of tramway tracks Paris airport hub is the largest hub in Continental Europe The world's most visited destination HEC Etangs de Saclay *îlede France Paris CEA La Martinière Saclay École Polytechnique Domaine de Corbeville Université Supélec Paris Sud 11 Massy Orly The Plateau de Saclay Campus: one of the world's leading educational, scientific research, and research and development centres The Upper Chevreuse Valley: Ile de France's first regional natural park established in 1985, covers an area made of 21 municipalities and 25,000 ha, half of which consist of forests and green spaces Direction des finances - Région Ile-de-France eN nue 7#8* A multifaceted territory *îlede France 47% Agriculture land Forestry and natural 29% areas 21% Urban area Wet lands 3% Direction des finances - Région Ile-de-France 8#9OPERATIONS AND RESPONSIBILITIES Direction des finances - Région Ile-de-France 6#10How the region operates Ile-de-France Regional Council is composed of 209 members. These members are elected using direct democracy for a 6 year mandate (2015-2021). Last elections took place in December 2015. The Regional Council governs the affairs of Ile-de-France through its resolutions. The President of the Regional Council : Valérie Pécresse Elected by the councillors: - she prepares and implements the decisions taken by the Regional Council - she authorises expenditures and acts as the signatory power - she manages the Region's assets - she is head of the regional administration *îlede France Regional Council, in Saint-Ouen O Direction des finances - Région Ile-de-France 10#11■ A large scope of responsibilities Transportation Secondary education (investing in and running 472 high schools, 500,000 high- school students) Professional training and employment Economic development, research, and higher education Environment, territorial development Social inclusion, housing, culture and sport 2 M Direction des finances - Région Ile-de-France 11 *îlede France#12A STRONG FINANCIAL SITUATION Direction des finances - Région Ile-de-France 12#13The priorities of the management ☐ Growth through investments such as : • . An ambitious development and modernisation plan for public transport A multi-annual plan for high-school buildings A supportive programme for higher education and research ☐ Promoting economic development across the whole territory ☐ Improving environment and the quality of life: « Each decision taken by the Region must improve the environment and health of its inhabitants » (combating air pollution, reducing energetic operating expenditures...). In 2020, over 50% of capital expenditures will contribute to the Region's ecological transition. ☐ Tight control over the operating expenditures (e.g. implementation of measures to reduce costs in the regional administration) to boost investment. Direction des finances - Région Ile-de-France *îlede France 13#14€ billions . 2,00 1,00 CA 2010 6,00 5,00 A balanced and controlled budget Evolution of the Region's budget since 2010 2,56 2,57 CA 2011 4,00 1,88 2.00 1,94 2,00 2,03 2,14 2,05 2,15 2,34 Capital expenditures 2,11 2,23 3,00 CA 2012 CA 2013 CA 2014 2,67 2,78 2,70 2,78 2,68 2,64 2,55 2,54 2,65 CA 2015 CA 2016 CA 2017 CA 2018 CA 2019 2020 (Bugdet) Operating expenditures 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 Optimised purchase policy Efforts to decrease operating expenditures were underlined in 2019 by the French national Court of Auditors The operating expenditures decrease was also hailed by the Regional Court of Auditors in its 2020 report about Region's management for 2014 and following years. It underlined « an effort to control management expenditures (...), significant since 2016 » particularly with « decreasing operating expenditures since 2016 >> *îlede France Direction des finances - Région Ile-de-France 14#15Confirmation of trend inversion: during the current mandate, investment has largely exceeded operating budget Multi-annual operating expenses represent 46% of total expenses in 2020, compared to 60% in 2015. In 5 years, investment expenses grew by 41% representing € 2,15 Bn. This is equivalent to an additional year of investments. 2015 60% Investment exp. Operating exp. 40% *îledeFrance 60% 40% 2016 2017 2018 2019 54% Operating expenses 2020 Investment exp. Operating exp. 54% Capital expenses 46% 46% Operating expenses excluding European funds, 500 000 plan & PIC / PACTE. Multi-annual authorized expenses program Direction des finances - Région Île-de-France € 2.15 Bn 1 additional year of investments#16Since 2016, the Region achieved €1,5bn of savings in operating expenses In 5 years, operating expenses were reduced by a total of € 1,5 Bn compared to 2015. this represents a savings of € 294 euros per household € 2 331 M 2015 Savings of € 294 per household No tax increase for 5 full years € 2 133 M € 2090 M € 2 052 M € 2010 M -7% 2016 2017 2018 2019 € 1 869 M 2020 *îlede France According to the French national Court of Auditors, Ile-de-France is the only Region to have decreased operating expenses in 2018 and every year since 2016. Operating expenses excluding European funds, 500 000 plan, PIC / PACTE. © Direction des finances - Région Île-de-France 16#172020 budget- Expenditures (€ 4.99 bn) *îlede France Economy, employment and training € 782 M Debt service costs (€ € 575 M Transports € 1,430 M Secondary schools € 840 M 29% 17% Regional administration € 555M Environment and living environment € 524 M 16% 12 % 10% Social and territorial equality International Europe € 75 M 11% € 212 M 4% 1% 43% of 2020 budget expenditures (exc. debt) dedicated to investments (€1,89 Bn) Direction des finances - Région Ile-de-France 17#182020 budget - Revenues Region resources are composed of revenues (mainly tax related) for 87% and borrowings for 13% Tax revenues: € 3.6 Bn (73% of the 2020 Budget) o Including the Corporate Value-Added Contribution. (CVAE), O a portion of the Domestic Tax on the Consumption of Energy Products (TICPE), O a dynamic share of the Value Added Tax (to replace general operating grant). Transfers from the French State: € 0.2 Bn (3% of the 2020 Budget) Miscellaneous revenues: € 0.6 Bn (11% of the 2020 Budget) such as European funds and police fines... Revenues: €4.99 billion DIRECT REGIONAL TAXATION (CVAE) € 1038,3 M 21% BORROWINGS € 641,5 M 13% TICPE € 1074,5 M 22% OTHER TAX INCOME (excl.TICPE) € 1508,0 M 30% OTHER REVENUES € 569,7 M 11% STATE GRANTS € 162,7 M 3% *îledeFrance Evolution of the Region's revenues since 2010 ■Revenues (tax & others) Borrowings 0,20 0,71 0,62 0,73 0,65 0,71 0,73 0,65 0,53 0,60 0,64 4,85 3,82 3,84 3,96 4,07 4,01 4,21 4,22 4,32 4,37 4,35 2010 2011 2012 2013 2014 2015 2016 Direction des finances - Région Ile-de-France 2017 2018 2019 Budget 2020 18#19A supplementary budget to fight the crisis Covid-19 measures Voted on June 11, 2020, the 2020 supplementary budget integrated several significant changes since the vote on the 2020 initial budget (December 2019), namely the shockwave due to the sanitary crisis related to the Covid-19, and the launch of the first step of the regional recovery plan to support Ile-de-France's economy in this context. For more details on the regional recovery plan to fight the crisis, please read the dedicated presentation on : www.iledefrance.fr/financement-region On top of the integration of the 2019 result (€ 276,28 M), the supplementary budget recorded: A decrease of regional revenues (excluding debt) of € 129,54 M from the € 4,35 Bn initially voted in the 2020 initial budget. An increase of expenditures of € +474,92 M: ■ ◉ € +206,77 M in operating expenditures (moving up the total amount of operating expenditures to € 2,86 Bn for the full year 2020) € +268,15 M in capital expenditures (with a total amount of € 2,61 Bn in 2020), An adjusted borrowing ceiling amount at € 969,64 M (vs € 641,47 M voted in the 2020 initial budget, showing an increase of € +328,17 M). *îledeFrance Direction des finances - Région Île-de-France 19#20A modified framework to take into account some measures of the recovery plan The framework used by Région Ile-de-France for its green and sustainable bond issues has been slightly modified with the addition of a sub-category to ensure the eligibility of the sanitary measures taken during the fight against the Covid19. The existing framework already covered the projects in favor of employment, and the support measures for SMEs on the Region's territory. Vigeo-Eiris updated its Second Party Opinion in June 2020, taking into account these slight modifications of the Framework. The 7 eligible categories in the framework Buildings and equipment for education and leisure Public transport and sustainable mobility Renewable energies and energy efficiency Biodiversity Social and health actions in favor of populations Social Housing Economic, social and inclusive development Addition of a new sub-category: << Projects contributing to the improvement of health infrastructures to the purchase of health equipment, to Research and Development, to the establishment of any emergency infrastructure necessary in the context of an exceptional crisis (health crisis, natural disaster, ...) ». *îledeFrance → The 2020 SRI bond proceeds will therefore be used to finance some Covid-19 measures, which are fully in line with the Region's green and sustainable framework. Direction des finances - Région Île-de-France 20#21Financial Ratings MOODY'S << Aa2>> Stable Outlook Short-term credit rating: P-1 Date: February 2020* "good operating performance >> << strong governance and debt management » << unquestioned market access » << sound & secured liquidity profile >> Fitch Ratings <<AA >> Negative Outlook Short-term credit rating: F1+ Date May 2020* ☐ ☐ ☐ << sound operating performance and strong governance « strong capacity to self-finance sizeable capex >> << conservative debt and liquidity management »> " « the region's financial management is sophisticated and prudent, particularly in terms of its forecasting ability, which allows Region IDF to control its annual budget and debt commitments » A «< satisfactory deleveraging capacity » *îlede France *Agencies' ratings reports are available on the Region's website O Direction des finances - Région Ile-de-France 21#22THE REGION'S FINANCING STRATEGY AND DEBT MANAGEMENT Direction des finances - Région Ile-de-France 22 22#23Main features A protective legal framework ❖ Strong financial position Large and diversified access to short-term liquidity Diversified financing strategy Issuance of bonds as main medium term / long term financing tool ✰ Conservative risk management ❖ Construction of a benchmark reference curve Direction des finances - Région Ile-de-France *îlede France 23 23#24A 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 - Région Ile- de-France - and the accountant ensuring the payment – the National State administration. - ■ Regional accounts houses (Chambres Régionales des Comptes) controls ☐ 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) *îlede France Direction des finances - Région Ile-de-France 24#25Financial ratios: a strong financial situation 2015 2016 2017 2018 2019 2020 Budget Gross operating balance (M€) 718 776 1 014 1 052 1 574 834 Current margin rate (%) 20,5 22,5 27,8 29,2 38,2 23,9 Debt payback ratio 1 (yrs) 7,5 7,2 5,5 5,4 3,4 6,7 Self-financing capacity 2 (%) 57,8 67,8 70,9 81,6 104 563 These ratios are presented without the exceptional items in 2020 (e.g. real estate divestiture gains for 189,3M€ in 2020) 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 M for 2020) 1 Outstanding debt to gross operating surplus 2 Self-financing to capital expenditures excluding debt 3 Including exceptional items, this ratio would be at 66% Direction des finances - Région Ile-de-France 25 25 *îlede France#26* A diversified access to liquidity €1bn NEU-CP short term program in French law (2002) ☐ Rated Prime-1; F1+/ Moody's; Fitch ■ € 500 M outstanding amount on average ☐ 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) ☐ Moreover, multiannual credit lines with EIB currently under negotiation - should be active in 2020 Direction des finances - Région Ile-de-France 26 *îlede France#27Diversified financing strategy The Region can use several funding sources on the medium and long term : Bonds issued under its EMTN program O € 7 Bn ceiling, and € 4.75 Bn outstanding by end-2019 О 1st French local authority EMTN program (2001) ○ Largest bond issues amongst French local authorities A long term partnership with EIB О To finance sustainable investment projects (education, public transport, energy savings...) Outstanding debt mobilized in July 2019 : € 200 M О О New lines being negotiated for 2020 and beyond ☐ A revolving facility of € 587 M on the 2007-2022 period ☐ Opportunistic use of bank loans *îlede France Outstanding debt by end of 2019: €5.384 Bn, i.e. a stabilization compared to 2015 Direction des finances - Région Ile-de-France 27#28Issuance of bonds as the main financing tool In coherence with the financial surface of the Region Systematic assessment of the various financing alternatives Schuldschein 0,9% Private placements 8,6% *îlede France EIB loans CDC loans 4,2% 7,4% Outstanding debt by the end of 2019: € 5.384 Bn Average lifetime: 5,97 years Average rate: 2.16% Public bond issues 78,9% 87,5% of bonds (Public issues and private placements) 12,5% of banks & institutional loans financing and Schuldschein Data as of 31/12/2019 Direction des finances - Région Ile-de-France 28#29Conservative 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 • 95% of the outstanding debt at fixed rate at the end of 2019 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 2019 ranked in <<the least risky category» or « A1 » according to the French State classification *îlede France Direction des finances - Région Ile-de-France 29#30*îlede France 2020 N 23 410 2021 N 24 67100 2022 N 24 25 2023 190 150 410 202450 2025 75 26 27 2026 2027 501 475 433 434 300 09 2028 Direction des finances - Région Ile-de-France 3:45: 200 2029 161 2030 2031 099 600 167 2032 5:00 500 2033 M€ • A smoothed debt amortization profile on the long term . 65% of the total debt is now made of green and sustainable bonds 751 706 687 506 500: 6 6 6 2 2 2 2 2 2034 ~ 2 2035 2036 30 30 2037 2038 Debt amortization profile at the end of 2019 504 Green and sustainability bonds Regular bonds ■Revolving Other bank end EIB loans CDC loans#31REGION ILE-DE-FRANCE A MAJOR PLAYER IN SUSTAINABLE DEVELOPMENT Direction des finances - Région Ile-de-France 31#32An holistic and integrated approach to sustainable development ☐ The Region is committed to integrate sustainable development and social responsibility considerations in all its activities across the different fields О 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 ○ О 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: О Integration of sustainable development considerations into policies implemented *îlede France ○ Responsible purchasing policy and public contracts О Development of technical guidelines by sector to improve sustainable building for new construction projects Direction des finances - Région Ile-de-France 32#33*îlede France ☐ Environment is at the heart of regional policies Creation in 2017 of the 1st Regional Agency for Biodiversity Since 2017, inclusion of an environmental bonus in social housing subsidies for the most efficient programs (eco-materials, Positive energy building 'BEPOS') In 2018: Launch of a Green Plan to support green area creation in specific deficient area Adoption of the "Plan Friche" (end of 2019): the Region supports projects limiting urban sprawl and preserving valuable nature areas New policy on energy and climate elaborated during 2018: over € 20 million to support solar, biomethane and hydrogen energy Repositioning of the support to the Domaine d'Intérêt Majeur 'DIM' label (key research sectors backed by the Region), targeting the main environment challenges: climate, energy and resources (ex: air quality) Generalisation of the most efficient energy labels Transports: priority to the development of sustainable transports (bicycles, clean buses) An ambitious and holistic roadmap focused on territories: 1 euro in 2 of the budget devoted to environment Direction des finances - Région Ile-de-France 333#34A solid extra-financial performance vigeqeiris Rated by Vigeo since 2009 One of the leaders of the European local government authorities panel assessed by the extra-financial agency Second party opinion, June 2020 : "(...) Région Île-de-France displays a good ESG performance, ranking 4th in our "Local authorities" sector which covers 29 local authorities." "We express a reasonable level of assurance (our highest level of assurance) on the sustainable credentials of the Green and Sustainable Expenditures identified by the Région Île-de-France for 2020." *îlede France Direction des finances - Région Ile-de-France 34#35REGION ILE-DE-FRANCE'S GREEN AND SUSTAINABILITY FUNDING STRATEGY Direction des finances - Région Ile-de-France 35 55#36A leading issuer in the green and sustainability bond market Inaugural green and sustainability bond ever launched by a local authority in 2012 8 green and sustainability bond issued since 2012, including 6 benchmark public issues, for a total amount of € 3.2 Bn Standard & Poor's 26 September 2017 : "Ile-de-France has been especially active through its annual benchmark bonds" Moody's 18 nov. 2019, Région Île-de-France: update to credit analysis: "In 2012, it was one of the first regional and local governments in the world to issue labelled bonds ... Région Ile-de-France's status as a high- profile and important issuer of bonds on international capital markets" Part of the green & sustainability borrowing in the annual borrowings of the Region Part of the green & sustainability borrowing in the outstanding total debt of the Region 100% 100% 100% 94% 88% 82% 65% 59% 49% 40% 54% 29% 19% 8% 7% 2012 2013 2014 2015 2016 2017 2018 2019 2012 2013 2014 2015 2016 2017 2018 2019 *îlede France O Direction des finances - Région Ile-de-France 36#37* Commitments made by the Region on its previous Green and Sustainability Bonds Public issue Compliance with The Green Bond Principles Commitment to report on the use of funds Private placement 2012 YES Tap 2014 2015 € 350 million (2012-2024) Predating the creation of the Green Bond principles € 600 million (2014-2026) YES € 500 M (2015 > 2027) € 25 M (2015 > 2024) € 100 M (2015, 2021) € 625 million YES Published on the anniversary date Second opinion on the selection criteria External and independant certificate Published on the anniversary date vigeo 2016 2017 2018 € 650 million (2016-2025) € 500 million (2017-2029) € 500 million (2018-2033) YES YES YES Published on the anniversary date Renewal of 2014 opinion Published on the anniversary date vigeo Published on the anniversary date Renewal of 2016 opinion Published on the anniversary date Renewal of 2016 opinion Deloitte. *îlede France Direction des finances - Région Ile-de-France 37#38A framework aiming at following best practices Fully compliant with the Green Bond Principles & sustainability bond guidelines Use of proceeds • Commitment on the use of the funds towards one or several categories of projects ahead of any bond issuance Flagship types of projects of the regional action • Projects that meet both environmental and socially responsible performance criterial Project assessment and selection • Definition of 9 eligibility criteria in relation to the purpose of the project and to its responsible management (detailed criteria in appendix, p52) • Second opinion delivered by Vigeo in 2014 and updated in 2016 and in 2020 •Transparency of the project selection process Management of proceeds • Borrowings can only finance investments of the year • Funds allocated to each project are accounted in the related-year financial data • In 2016, external certification from Deloitte on the concordance of the amount allocated with 2015 financial documentation Reporting on the financed projects • A commitment to reporting on the use of proceeds on the issue's anniversary date • Presentation of impact indicators and calculation methodologies used (audited by Deloitte in 2016) *îlede France Direction des finances - Région Ile-de-France 38#39Reporting on projects financed by the proceeds ■ 5 reporting published since 2014, at anniversary date of each bond issue Last reporting on 2018 green and sustainability bond issue was published in June 2019 Reporting information contents : Summary tables of the fund allocation and of the impact indicators transversal to the projects (CO2 avoided, FTE supported, number of beneficiaries) Description of the allocation and selection process Description and update on the life of the projects • Description of the project and its timeline Summary grid illustrating how each project answers each criterion with convincing elements Insertion of a note presenting the methodology / sources used for each project and each indicator Impact indicators specific to each project if applicable ☐ A reporting putting forward sustainability and greenness of projects : Example with the extension of Parisian subway line 14 (organisation of the worksite visit with investors in 2018): a permanent concern in keeping contact with residents Completed with a reading of the funded projects from the point of view of UN Sustainable Development Goals îledeFrance Direction des finances - Région Ile-de-France 39#40Focus on the 2019 reporting 28 projects presented 10 new projects Easily tagged NEW PROJECT Allocation 2018 BUILDINGS ANS FACILITIES FOR EDUCATION AND LEISURE € 87,8 million 17,6% PUBLIC TRANSPORT AND SUSTAINABLE TRANSPORTATION € 254,4 million 50,9% 62% of projects reconducted 8.5 'SDG' goals on average by project Examples of projects financed by the 2018 green and sustainability bond (see appendices): ■ Electrification of the P railway between Paris and Troyes ■ New high school in Courbevoie SOCIAL HOUSING € 80,0 million 16,0% € 500 million ECONOMIC AND SOCIALLY INCLUSIVE DEVELOPMENT € 17,8 million 3,6% BIODIVERSITY € 21,3 million 4,3% SOCIAL INITIATIVES AIMED AT HELPING VULNERABLE POPULATION GROUPS € 24,0 million 4,8% RENEWABLE ENERGY AND ENERGY-EFFICIENCY € 14,7 million 2,9% îledeFrance Direction des finances - Région Ile-de-France 40#41Projects financed by the 2018 green and sustainability bond have been analyzed according to their positive contribution to SDG Positive contribution of each project to SDG is presented SUSTAINABLE DEVELOPMENT GOALS BUILDINGS AND FACILITIES FOR EDUCATION AND LEISURE LUCIE AUBRAC HIGH SCHOOL Projects: construction of new high schools 10am 10 O <> 81 13 p.14 & 15 of the reporting about projects financed by the 2018 green and sustainability bond: - an explanation of the methodology used to scrutinize each project under SDGS summary table, with a special focus on the main SDG goal of each project Boulogne-Billancourt high school Lucie Aubrac high school - Courbevoie Emily Brontë high school - Lognes Alexandre Denis high school - Cerny Ecole des Hautes Etudes en Sciences Sociales, Campus Condorcet - Aubervilliers Grand Equipement Documentaire (library). Campus Condorcet - Aubervilliers Bibliothèque de Documentation Internationale Contemporaine (library) - Nanterre Conservatoire National des Arts et Métiers (CNAM) - Landy 2 - Saint-Denis Leisure and sport centre - Vaires-Torcy îledeFrance 1BO POVERTY GOOD HEALTH QUALITY AND WELL-BEING 4 EDUCATION 6 AND SANITATION CLEAN WATER AFFERDABLE AND CLEAN ENERGY DECENT WORK INDUSTRY, AND ECONOMIC GROWTI INNOVATION AND INFRASTRUCTURE REDUCED 10 INEQUALITIES SUSTAINABLE 11 CITIES AND COMMUNITE RESPONSIBLE CLINAT 12 CONSUMPTION 13 ACTION 15 LIFE AND LIND AND PRODUCTION MAIN SDG'S 8 IMPACT INDICATORS • . O • • • O • • . O • • . O • . mber o beneficiaries Number of beneficiaries Number of beneficiaries Number of beneficiaries page 18 page 20 page 22 page 24 O • . Number of • . page 26 beneficiaries • O • • Number of page 28 beneficiaries • • • • Number of . Ο • • Ο • . beneficiaries Number of beneficiaries Number of page 30 page 32 hahriaries page 34 Direction des finances - Région Ile-de-France 41#42Visits of projects financed by green and sustainability bonds with investors 3 visits since 2015: o Tramway T6 - Chatillon Montrouge to Viroflay (2015) o Campus Jourdan ; host of Paris School of Economics and ENS – Paris 14e (2017) o Extension of subway line 14 at Mairie de Saint-Ouen - Pont Cardinet (2018) prolongement M14 a Maine de Saint-Ouen, pour une lone 13 onorée Systra P O Direction des finances - Région Ile-de-France 42 îledeFrance#43Key elements on Region Ile-de-France's green and sustainability bonds Exposure to the Region credit quality (not to the projects) ☐ ☐ Financial Ratings: Aa2 (stable) Moody's / AA (negative) Fitch A protective legal framework Prudential weights ☐ Solvency II: 0% ☐ CRD IV: LCR 2A & credit risk 20% Assets eligible to the ECB purchase program under QE An exemplary issuer ☐ ☐ ☐ Advanced and recognized ESG quality (Vigeo-Eiris), a leader in the European Local Authorities sector An adapted framework to integrate covid-related expenditures, and the confirmation of the SPO by Vigeo (June 2020) A long-term green and sustainability financing strategy Issue compliant with the Green Bond Principles and the Social Bond Principles Green and sustainability bonds of Region Ile- de-France included in Bloomberg - Barclays Global Green Bond index (ex. Barclays-MSCI) and S&P Green Bond index. Also listed on Euronext Green Bond. € M 800 700 600 500 400 300 200 100 Building a green and sustainable benchmark curve Olle-de-France Green and sustainability bonds Ile-de-France standard loans & bonds 009 500 2020 433 2021 90 100 2022 434 2023 475 2024 126 | 375 2025 101 | 650 2026 87 2027 206 2028 167 2029 500 2030 2031 2032 6 2033 500 2034 2 20352 2036 2037 2 2 2038 2 *îlede France Direction des finances - Région Ile-de-France 43#44APPENDICES Direction des finances - Région Ile-de-France 44 44#45French 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. *îlede France Direction des finances - Région Ile-de-France 45 45#46A 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. *îlede France Direction des finances - Région Ile-de-France 46#47☐ ㅁ 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 current plan will be evaluated in 2019 in view of an update. 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 the STIF : The Region launched the transports revolution with the STIF 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 adress 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 The Region ensures also an asset management of the territory in order to value a balance with the green areas on the territory. It defines its property influence in voting the Regional Perimeters for property intervention (RPPI) *îlede France Direction des finances - Région Ile-de-France 47#48* Région Ile-de-France, Société du Grand Paris, Ile-de- France Mobilités, RATP et SNCF : 5 different entities îlede France Société du Grand Paris fledeFrance mobilités RATP DEMANDEZ NOUS LA VILLE SNCF Legal body governed by public law Regional authority, autonomous -regional assembly composed of 209 elected members, - chaired by Valérie PECRESSE. Public industrial and commercial undertaking ("EPIC”) 100% owned by the state - Supervisory Board (representatives of the State and local authorities, 21 members). Public administrative institution << EPA >> Council composed of 29 members, representing << départements >>, Ile-de-France Region and the French State, -chaired by Valérie PECRESSE. 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. Direction des finances - Région Ile-de-France 48 *îlede France#49Sustainable development is at the heart of Region Ile- de-France's strategies and policies A key role in the definition of objectives on the territory Energy Plan for Climate SRCAE Regional Roadmap for Climate, Air and SRCE Regional Roadmap for Ecological Consistency Drawn up in consultation with public entities on the territory Structuring policies Leading player of the economic development Regional Scheme Economic development Innovation and internationalisation Agenda 21 et 22 SDRIF Master Plan of Region Ile-de- France PDUIF Urban Mobility Plan of Ile-de- France Drawn up in consultation with all concerned players on the territory Disseminating good practices Responsible îledeFrance An exemplary issuer Responsible public purchase policy financial strategy Key environmental stakes that are inscribed in regional policies Financial rating Fitch: AA Moody's: Aa2 Extra-financial rating "sturdy" or "advanced" levels for ESG (Vigeo-Eiris) A leader in the local authority panel *îlede France Direction des finances - Région Ile-de-France 49#50Ambitious strategic axes carried by a pragmatic approach The Region ... • Locates sustainable development at the heart of its strategies and policies • Is committed to report and assess the public spending • Expresses its support to the of green & development sustainability bond market • Aims to promote responsible and efficient finance to address the environmental, economic and social challenges It has implemented • A selection of flagship projects of the regional action • An • improvement process internally and towards its partners, besides reporting tools that are continuously being improved The highest standards in the green & sustainable bond market, with evolutions and innovations each year, that also allows the Region to further widen its investor base Direction des finances - Région Ile-de-France *îlede France 50#51Green and sustainability financing strategy A multi-awarded strategy Most impressive local government Green/SRI bond issuer, at the Sustainable and Responsible Capital Markets Forum (Euromoney GlobalCapital in September 2018, Amsterdam). Environmental Finance AWARDS 2012 ENVIRONMENTAL BOND issue of the year afiqese JJJ Association Finances Gestion Evaluation des collectivités territoriales Prix de l'innovation financière - 2012 Unsolicited external BONDA GREEN ARDS PIONEER Climate Bonds 2019 Award 2016 : First Municipal Green Bond SOMMET -DES- LEADERS DE LA FINANCE DIRECTION FINANCIÈRE DU SECTEUR PUBLIC TROPHEE D'OR GlobalCapital Bond Awards #1Public Sector Green Bond Deal of the Year GlobalCapital Bond Awards #1 Public Sector Issuer of the Year Environmental Finance Bond Awards 2019 Winner Sustainability bond of the Year- local authority/municipality evaluation on previous sustainability bond issued by Oekom, and eligibility of previous issues to Bloomberg-Barclays Green Bond (ex MSCI-Barclays) and S&P Green Bond indices Sustainability Bond approved *îlede France Direction des finances - Région Ile-de-France rated by oekom research 51#52Eligibility criteria 9 criteria covering the purpose and the responsible management of the projects 2nd opinion delivered by Vigeo in 2014, and updated in 2016 and in 2020 The projects' environmental responsibility The projects' social and societal responsibility The projects' economic responsibility Governance • 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 • Consultation with stakeholders *îlede France Direction des finances - Région Ile-de-France 52 52#53*îlede France Projects selection process 1 Each directorate of Region Ile-de-France is asked to identify the proper projects to be considered • For an expected amount of spending • Compliant with the eligibility criteria 2 The most exemplary projects are selected by each directorate • High environmental and social commitment on all the Region's area of intervention • Selection based on the investment budget • The major projects on transportation and eco-construction can be reconducted from a year to another 3 Finance directorate • Validates the breakdown between each category based on the projects presented • Consolidates information communicated by each directorate O Direction des finances - Région Ile-de-France 59 53#54◉ Use and management of proceeds Borrowings can only finance investment expenditures of the year: principles of public accounting (unit- based, universal and annual) A strong guarantee: the proceeds of the Green and Sustainability bonds are used to fund the expenditures of the year related to the investment projects selected О It allows to fund the annual tranches of the selected projects These projects have been decided by the Regional Council, sometimes several years ahead for the major transportation projects When possible, the major projects eligible to Green and Sustainability bond issuances benefit from a share of allocation from one year to the next in order to favor a follow-up and a continuity in the reportings Management of proceeds: ○ Proceeds are immediately fungible within the Region's treasury After the closing of the investment budget at the end of November each year: ○ The investment expenditures related to each selected project are extracted from the internal financial management tools ○ The Management Control and IT System department ensures the control of the expenditure amounts on each project Direction des finances - Région Ile-de-France *îlede France 54 54#55« Use of Proceeds, as specified in the Final Terms The net proceeds of the issue are aimed to finance environmental and social projects, defined as << Eligible Projects ». These << Eligible Projects » (i) will fall under one or several of the following categories: . Buildings and facilities for education and leisure • • Public transport and sustainable transportation Renewable Energy and Energy-Efficiency Biodiversity Social and sanitary actions aimed at assisting population groups • Social Housing • Economic and socially inclusive development and (ii) will be consistent with the Region Ile-de-France's selection criteria available on the Region's website. Ile-de-France Region will monitor the use of funds invested in Eligible Projects and will publish on the issue's anniversary date reports until either: - the amount invested in Eligible Projects reaches the bond amount issued, or - the bond matures, whichever date comes first. >> *îlede France Direction des finances - Région Ile-de-France 55 595#56LUCIE AIRBAG Example of a project which will benefit from 2018's transaction proceeds New high school in Courbevoie (department Hauts-de-Seine) Project amount : € 53.6 M Region share: 100% Expected due date: summer 2018 Projects in category Buildings and equipments for education and leisure Building of a new high school with a capacity of 1 500 students to adress the strong demographic push in Western Paris area; Implementation at the heart of the city of Courbevoie, on a 10 370m² plot benefiting from good public transport services for the future users; Urban implementation of good quality according to the city's orientations (students access protected from road traffic, continuity with the existing buildings), multi purpose room available to external people; Realization of 13 900m² of buildings and landscaped remodeling of all outside areas (keeping the existing trees) completed with a majority of vegetated roofs. The works: progression and deadlines Preparation of field: summer 2016 Start of work site: January 2017 (Eiffage general enterprise in charge of the construction market) Opening to students planned in September 2018, with a work agenda on 18 months particularly ambitious An exemplary high school : ☐ From an environmental standpoint: operation certified «NF Tertiary Building-Approach HQE» (environmental high quality) with energetic requirements but also in greening (vegetated roofs, landscaped knots, recovery rainwater), users comfort, waste management and green work site; From an economic standpoint: diversified training offer facing the job market evolutions (general education completed by a course on Management, by a preparatory class for entrance to the 'Grandes Ecoles', and by an international section); From a social standpoint: integration of a clause on insertion and assistance to employment in the works market Operation targeting the BEPOS label : << Positive Energy Building >> A sober building due to its compactness and its strenghtened insulation; ■ Performing technical systems with ventilations and a high efficiency boiler completed by a cogeneration; Production of photovoltaic electricity equivalent to the thermal regulation needs (heating, ventilation, hot water, lighting). O Direction des finances - Région Ile-de-France 56 îledeFrance#57SNCF 679 N Example of new projects that will benefit from the proceeds raised in 2017 and 2018 Electrification of the P railway between Paris and Troyes Project amount: € 320 M Regional share : € 70 M High numbers of co-funders : The French State, SNCF, Region Grand Est and 7 local players Expected date of delivery: 2021 Category of the “Eligible Project” : Public transport and sustainable transportation The last diesel-powered railway line in Ile-de-France, despite the fact that the number of users has increased steadily on this line: +28% over the last 5 years with currently 104,000 passengers per day Signature of an agreement with the Region in September 2016 to ensure the launch of the project the electrification of this railway will help replace current diesel-powered trains with electric trains to reduce air pollution and limit CO2 emissions By 2021 the STIF will set up 24 new trains on the Provins branch of the P railway and will renovate 16 Z2N trains Works undertaken: Electrification of 128km of railway between Gretz- Armainvilliers and Troyes as well as 7km between Longueville and Provins ➤ Adjustment of 41 road bridges and one tunnel An exemplary project: ■ ■ Environmental Limitation of the noise and discomfort for local residents as well as reduction of greenhouse gas emissions and air pollution Economic Attractiveness of the territory Social Comfort and reliability for travellers A purpose Reduce the environmental footprint of this railway ☐ Reduce the use of hydrocarbons by replacing diesel-powered trains with electric trains ; Reduce greenhouse gas emission and air pollution: an electric train emits 30 times less CO2 than a diesel-powered Corail train; Increase energy efficiency: the new trains use more efficiently the energy supplied. http://www.electrification paristroyes.fr îledeFrance 57#58Contacts and documentation Conseil régional d'Île-de-France, Direction des finances, 2 rue Simone Veil, 93400 Saint-Ouen [email protected] RÉGION Paul BERARD Deputy general manager in charge of finances [email protected] Manuel THOMAS Finance director (head of funding) [email protected] *îlede France Homepage : https://www.iledefrance.fr/financement-region In English: https://www.iledefrance.fr/region-funding ÎLE-DE-FRANCE PROJETS FINANCES PAR L'EMPRUNT VERT ET RESPONSABLE 2018 *iledeFrance Direction des finances - Région Ile-de-France 58