General Presentation

World Leader of Public Finance

General Presentation

June 2004

2

Contents

! Dexia within the Local Public Finance Market

! Group Financial Performances and Objectives

! Business Lines

! Appendices

Part One

Dexia within the Local Public Finance Market

4

The main markets of Local Public Finance

LT Debt O/S: ≈1,600 Bn€ ≈500 Bn€* ≈1,500 Bn€

Access: Bond Market

Bank Loans & Bond Market

Bond Market & Bank Loans

Group

* Local Authorities only

5

The PlayersThe Local Public Finance Market

Domestic SavingsBanks

L.T. lending institutions

Arrangers

Bond Insurers

Disintermediated(Municipal Bond Market)

Intermediated

Liability Driven Asset Driven

Dexia Bank Dexia Crédit Local

Investors

Dexia Public Capital Markets

Dexia Municipal Agency

Dexia Hypothekenbank BerlinDexia Crediop…

6

Market constituents – Clients’ expectations - Products

Market constituents

! Municipalities

! Regions

! Social Housing Institutions

! Health care institutions

! Schools / universities

! Charities

Clients’ expectations

! Funding

! Long lasting relationship

! Assistance to Financial/Budget management

! Access to capital markets solutions

! Optimisation of debt, and cost of debt

! Public/Private partnership

Products

! Long term Loans and Bonds

! Short term facilities

! Payment services

! Asset management

! Insurance services

! Financial engineering/advisory services

7

59 7620

53

1996 1997 1998 1999 2000 2001 2002

Dexia’s volume growth outperformed the market’s

1996 1997 1998 1999 2000 2001 2002

EuropeLT Loans O/S

493 Bn€451 Bn€CAGR: +1.3% p.a.

129 Bn€79 Bn€

CAGR: +8.3% p.a.

Group

+4.1%p.a.

+17.4%p.a

Local authorities Other local actors

1996 1997 1998 1999 2000 2001 2002

USAMuni Bonds insured O/S

1,763 Bn$

1,262 Bn$

CAGR: +4.9% p.a.

1996 1997 1998 1999 2000 2001 2002

201 Bn$

47 Bn$

CAGR: +23.2% p.a.

8

Key business model features

! Solvency of borrowers" Low risk asset weighting" Narrow margins" Low cost of risk

! Long Term" Annuity building business" Low revenue volatility

! Importance of Funding" High credit ratings needed

! Differential advantages" A “volume” business " Innovation: new products successfully marketed in a country can be exported to others

9

History:In 1996 CCB and CLF combined into Dexia

Crédit local de France (CLF)

LT Bonds

Issues

LT Lendingsto local public

authorities

Bond Portfolio

assets liabilities

Retail

Customer

Deposits

Lendings to local public authorities

Retail loans

Bond Portfolio

assets liabilities

+ BIL

Private Banking

Asset Management

Fund Administration

Crédit Communal de Belgique (CCB)

10

Dexia Primary Franchise …

Public/Project Finance

LiabilitiesAssets

Retail Deposits

Triple A Funding

11

Treasury and Financial

Markets

Financial

Services to the

Public Sector

Credit Enhancement Bancassurance

Inve

stm

ent

Man

agem

ent

Serv

ices

# Muni bonds# ABS

# Insurance# Cash management# Financial engineering

# Private banking# Asset management # Fund administration

… has been enlarged over the years

Public/Project Finance Retail Deposits

12

51%

13%

19%

17%

Public/Project Finance & Credit Enhancement Investment Management ServicesRetail Financial Services Treasury and Financial Markets

Business Portfolio in 2003Segment contributions*

Net Income 2003: 1,431 M€

* Excluding nonrecurring items

13

Main Business Aggregates (at 31.12.03)

Bn€ $ LT Loans and bonds to Public Institutions 174 $ LT Corporate and Project Finance 15 $ ST Loans 12

$ Retail Loans 26

$ Credit Spread Portfolio* 39

$ Retail and Private Deposits 64

$ Institutional clients Deposits 45 $ Long Term Bonds O/S 67 $ Short term funding 39

$ Net Par outstanding Muni Bonds 171 $ Net Par outstanding ABS 119

$ Life Insurance Technical Reserves 7

$ Assets under Management 77

Balance Sheet

Off B/S

liabi

litie

sas

sets

* Of which 9.3 Bn€ of Public Bonds

Part Two

Financial Performances and Targets

15

A different business model

4

293

34

1,000

658

570

1,000

592

35

204

89

1,000

955

1,068

1,000

623

Net income before minorities

Cost of risk

Costs

Revenues (1,000 basis)

Non Performing Loans

Customer deposits

Risk Weighted Assets

Customer Loans (1,000 basis)

Dexia Group of 9 European banks*

* BNP Paribas, Société Générale, KBC, SCH, CA SA, BBVA, Unicredito, Fortis (Banking), ABN Amro (data 2003)

B/S

P&

L

16

Return On Risk-Weighted Assets (RORWA)*

1.18%

1.51% 1.50%

1.30%1.40%

1.12%

1.54%

1.32%1.23%1.29%

1.01%

1.39%

0%

1%

2%

1998 1999 2000 2001 2002 2003

Dexia Peer Group**

* The ratio between the net income including minority interests and the average risk-weighted assets.** Peer Group: Abn-Amro, Barclays Bank, HVB, BBVA, BNP Paribas, CA SA1, Deutsche Bank, Dresdner Bank, Fortis,

KBC, ING Groep, Lloyds TSB, Nordea, Société Générale, SP IMI, SHB1 before 2002 figures of Crédit Lyonnais

17

Cost of Risk related to total net O/S commitments (in basis points)

5.7 bp*

9.8 bp*

12.2 bp*

6.6 bp

2.2 bp

7.8 bp

6.4 bp

1997 1998 1999 2000 2001 2002 2003

2.5 bp

* Excluding impact of charges for Legiolease at Dexia Bank Nederland

Credit Enhancement

Banking Activities

0.6 bp0.6 bp0.7 bp1.2 bp

0.4 bp1.2 bp

18

Cost/Income Ratio (%)

53.9 54.8

59.0 58.9 59.2

54.0

1999 2000 2001 2002 2003 2006

≤

Objective

19

9.3% 9.3%9.9%

18.7%

16.2%

9.5%11.2%10.2%

9.6%9.0% 9.3%

18.0%

16.5%

12.9% 13.2%14.0%

15.7%

17.7%

9.0%

1996 1997 1998 1999 2000 2001 2002 2003 2006

ROE

Tier One Ratio

ROE

Objective

20

Earnings per Share (€)

0.660.75

0.850.98

1.151.25

1.131.24

1.70

1996 1997 1998 1999 2000 2001 2002 2003 2006

Objective

CAGR:+9.4 % p.a.

CAGR:+9.4 % p.a.

21

Dividend per Share

0.390.43

0.48 0.48

0.53

0.320.36

0.31

0.26

1997 1998 1999 2000 2001 2002 2003

(€)CAGR:

+10.5 % p.a.CAGR:

+10.5 % p.a.

Dexia BelgiumDexia France

Dexia

22

Summary of 2003 P&L

(M€)

2002 2003 ! Evolution of underlying*

Evolution of underlying* at constant

rate of exchange

Revenues # Net Interest and Related Income # Net Commissions and Other Income # Technical & Financial Margin / Insurance

3,422 1,015 720

3,429 992 739

0.2% -2.3% 2.6%

Total Revenues 5,157 5,160 0.1% 3.8% 5.5%

Costs -3,037 -3,055 0.6% -0.3% 0.7%

Gross Operating Income 2,120 2,104 -0.7% 10.2% 13.0%

# Cost of Risk -722 -176 -75.7% -41.0% -37.8% # Losses/Gains on LT invest. # GBRR # Goodwill amortization # Corporate Income Tax # Income from Equity Accounted Co’s

-36 82 -57 -58 56

15 7

-131 -362 56

n.s. -91.6%

n.s. n.s.

-

Net income before minority interests 1,385 1,513 9.3%

Minority Interests 86 82 -4.4%

Net Income 1,299 1,431 10.2% 15.2% 18.5%

* Based on pro forma accounts, without exceptional and nonrecurring items

Part Three

Business Lines

Public/Project Finance & Credit Enhancement

• Municipal Finance• Project Finance• Structured Finance • Corporate Lending• Credit Enhancement

24

Net underlying* Income 2003: 783 M€


This segment covers:

51%

39% 60%

1%

Geographical origin of net income*

* Underlying net income of booking centers and irrespective of transactions’ location

• Long and short-term

financing to the public sector

• Other financial services to the

public sector

• Project Finance and

Corporate Lending

Dexia NY

• Liquidity Facilities

• Project Finance

• Bond portfolio

FSA

• Credit Enhancement – Muni

• Credit Enhancement – ABS

USA(FSA + NY branch)

Other

Europe

25

Public and Project Finance: Revenue metrics

In & off B/S outstandings*

* Fully consolidated Co’s** Net interest and related income (excluding commissions and interest on allocated economic capital), related to period-end outstandings

1011

14

1317

19

162152

136125

119

15

44

24

53 bp53 bp58 bp59 bp 54 bp

0

50

100

150

200

1999 2000 2001 2002 20030102030405060708090100110120130140150160170

Short Term

Other LT

Public SectorLong Term

Bn€Net interest margin**

133140

167184

201

26

Growth of outstandings (banking activities) stems from new markets

France+ Belgium

Other Countries

USA

CAGR 2000-2003

+26.5%

+13.0%

+3.2%

+9.3%

27

(Bn€)

141.3

171.8

154.4

184.7

76.0 79.5 80.8 83.6

53.457.5

69.977.1

11.917.4

21.124.1

2000 2001 2002 2003

FSA: Revenue metrics

Net Par Outstanding

79 87 106 137 171

51

67

111

126

119

18 bp18 bp17 bp18 bp20 bp

0

50

100

150

200

250

300

1999 2000 2001 2002 20030

10

20

30

40

50

60

70

80

90

100

110

ABS

Muni

Bn$Margin*

28

130154

217

263

290

* Total revenues (excluding GICs revenues and net realized and unrealized gains/losses on derivatives) related to period-end outstandings

35 4666

78 85103

165

2226

35

4454

86

82

3

634

38

133

92

2

1

1

5

1

1

1

2

3

7

25

13

1996 1997 1998 1999 2000 2001 2002 2003

International Asset-Backed Obligations

International MunicipalObligations

U.S. Asset-BackedObligations

U.S. Muni Obligations

FSA’s credit enhancement: a high growth businessNet Par outstanding*

(Bn$)

217

263

290

29* Excludes amounts relating to FSA-insured GICs; excludes insurance of interest

154

130

105

5975

CAGR 1996-2003

+30.0%

+20.4%

+24.8%

+25.5%+67.3%

30

Public/Project Finance & Credit EnhancementAnalysis of 2003 underlying P&L

(M€)

2002*

2003 ∆

2003 / 2002

∆ at constant

rate of exchange

Revenues

1,793

1,867

4.1%

10.4%

Costs

-631

-635

0.6%

4.6%

Gross Operating Income

1,162

1,232

6.0%

13.6%

Cost of Risk

-168

-84

-50.2%

Corporate income tax

-266

-319

19.9%

Other Items

-4

-46

n.s.

Net Income

724

783

8.2%

16.7%

ROEE**

21.0%

22.8%

Allocated equity

3,659

3,663

* Based on pro forma accounts** Annualized Return on Economic Equity. ROEE = Total Net Income (before minority interests) / Allocated Equity

Retail Financial Services

31* Excluding nonrecurring items

Net underlying* Income 2003: 286 M€19%

Dexia Bank Belgium: a key player in asset gathering

43 43 44 4556 55

12 13

18 18 19

12 2

6 6

7 8 9 915 15 162 3 4 5

7 7 7

56

96

7

De

c.1

997

De

c.1

998

De

c.1

999

De

c.2

000

De

c.2

001

Dec

. 200

2

De

c.2

003

Bn€

4953

57 59

9 11 13 14

82

23

Dexia Bank alone Dexia Bank + Artesia

Life Insurance technical reserves

Mutual funds and other investment products

Deposits & Savings Bonds

Loans to Professionals & SME’s

Mortgages & consumer loans

80

22 22

79

32

Domestic market shares in Belgium (as of Dec. 2003)

Savings bonds Savings accounts Mutual funds

Insurance* Mortgages Consumer loans

Dexia market share: 25.9% 15.7% 17.1%

16.2% 15.6%

* estimated

Dexia market share: 9.2%

33

Merger of Dexia Bank and Artesia produces sizeable costs synergies in Retail Financial Services as well as in other divisions

8595

180

200

48

6050

302516

39

101

Objective Achieved Objective Achieved Objective

55

(M€)

2002 2003 2005Min. Max.

Retail Financial Services

Min. Max. Min. Max.

149

Min. Max.

2004

Objective

Other business lines34

35

Number of branches

543394

940889

204

895

2001 2002 2003 2004 2005

Employee Network Independent Agents Network

target1,483

1,283

1,099

-26%-26%

36

Retail Financial Services Analysis of 2003 underlying P&L

(M€)

2002*

2003 ∆ 2003 /

2002

Revenues

1,661

1,764

6.2%

Costs

-1,349

-1,371

1.7%


312

393

26.1%

Cost of Risk

-40

-34

-14.4%

Corporate Income tax

-109

-110

0.9%

Other Items

27

37

37.0%

Net Income

190

286

50.9%

ROEE**

10.8%

15.8%

Allocated Equity

1,748

1,799


Investment Management Services

37



13%

Investment Management Services

Segment contributions to the underlying Gross Operating Income (2003)

22%

21%

22%

35% Private/Affluent Banking

AssetManagement

FundAdministration

Dexia Nederland

38

Recent evolution of the underlying Gross Operating Income

Asset Management Fund Administration

(M€)

Revenues

Costs

GrossOperating Income

Revenues

Costs

17 18 17 1523

56 56 55 58 56

74 74 72 7479

Q1 2003* Q2 2003* Q3 2003* Q4 2003* Q1 2004

10 11 12

21 22

21 21 2124 23

31 32 33

45 45

Q1 2003* Q2 2003* Q3 2003* Q4 2003* Q1 2004

1417 16

19 19

37 37 37 37 38

5154 53 56 57

Q1 2003* Q2 2003* Q3 2003* Q4 2003* Q1 2004

GrossOperating Income

Private and Affluent Banking

* Q1 2003 to Q4 2003 are pro forma

(M€)

22

30

1622 15

202223 2422

44

53

4044

35

Q1 2003* Q2 2003* Q3 2003* Q4 2003* Q1 2004

Dexia Nederland

39

Private and Affluent Banking*

Total customers’ assets** : 28.0 Bn€

Luxembourg

By geographical area By type of management

*Excluding Dexia Nederland **at Dec. 31, 2003

Belgium

Switzerland

OtherFrance

72%

8%

9%

7% 4%

40%

19%

41%

DiscretionaryManagement

AdvisoryManagement

Withoutmandate

40

21.530.1

37.245.5

39.8 43.4

4.4

5.3

4.8

4.14.0

6.2

8.6

10.6

10.6

11.2

14.9

4.2

1998 1999 2000 2001 2002 2003

Institutional Mandates

Private Clients DiscretionaryMandates

Mutual Funds (Ret & Instit.)

Dexia Asset Management

60.9

31.8

(Bn€)

43.2

53.155.1

62.2

Assets by type of management

41

151 149

142 146 154

159

Total assets under custody (Bn€)

Other**Other**

Dec. 2002

Mandates to DFS*

Mandates to DFS*

Custody

4.67

5.24 5.38

272

314329

* Including Dexia Nederland Holding** Dexia-BIL group only; excludes other units of Dexia

# of transactions (in millions)

# of NAV to calculate in the year (x 1000)

Transfer AgentCentral Administration

Dec.2003

12 months

2002

12 months

2003

297 303

Dec. 2003

Dec.2002

Fund Administration

Dec. 2001

Dec.2001

12 months

2001

42

Mandates to DFS*

Other**

301

43

Investment Management Services Analysis of 2003 underlying P&L

(M€)

2002*

2003 ∆ 2003 / 2002

∆ at constant

rate of exchange

Revenues

1,011

914

-9.6%

-8.4%

Costs

-668

-604

-9.5%

-9.4%


343

310

-9.6%

-6.5%

Cost of Risk

-6

-22

n.s.

Corporate Income Tax

-99

-80

-18.4%

Other Items

-1

-4

+33.3%

Net Income

237

204

-13.8%

-10.6%

ROEE**

39.1%

35.3%

Allocated Equity

614

588


Treasury and Financial Markets

44



17%

Treasury and Financial MarketsMissions and Key Figures

! Missions! Long and Short Term Funding

! Liquidity

! Financial Markets Desks (Forex, derivatives, equities, bonds…)

! In 2003! L.T. Debt Issued in 2003: 21.5 Bn€

! CSP outstanding: 38.9 Bn€

! S.T. Debt outstanding 2003: 38.8 Bn€

Credit Spread Portfolio: 51%

! Net Underlying* Income: 263 M€ Money Market: 25%

Other: 24%

45* Excluding nonrecurring items

46

Capital Markets & Treasury ActivitiesAnalysis of 2003 underlying P&L

(M€)

2002*

2003

∆ 2003 /

2002

∆ at constant

rate of exchange

Revenues

552

472

-14.6%

-10.4%

Costs

-170

-153

-10.2%

-8.4%


382

319

-16.6%

-11.3%

Cost of Risk

-24

6

n.s.

Corporate Income Tax

-75

-60

-20.6%

Other Items

-2

-2

n.s.

Net Income

281

263

-6.6%

-1.1%

ROEE**

24.0%

28.3%

Allocated Equity

1,181

938


Appendices

48

31/12/2000 31/12/2001 31/12/2002 23/02/20041 ALLIANZ DRESDNER 1 ALLIANZ DRESDNER 1 BNP Paribas 1 BNP Paribas 2 ING Groep 2 ING Groep 2 ING Groep 2 SANTANDER 3 DEUTSCHE BANK R 3 DEUTSCHE BANK R 3 SANTANDER 3 ING Groep4 SANTANDER 4 BNP Paribas 4 BBVA 4 DEUTSCHE BANK R 5 BBVA 5 BBVA 5 DEUTSCHE BANK R 5 ALLIANZ DRESDNER6 FORTIS 6 SANTANDER 6 ABN-AMRO 6 BBVA7 BNP Paribas 7 FORTIS 7 SOCIETE GENERALE A 7 SOCIETE GENERALE A 8 ABN-AMRO 8 ABN-AMRO 8 UNICREDITO ITALIANO 8 ABN-AMRO 9 HVB Group 9 SOCIETE GENERALE A 9 FORTIS 9 CREDIT AGRICOLE

10 SOCIETE GENERALE 10 UNICREDITO ITALIANO 10 ALLIANZ DRESDNER 10 UNICREDITO ITALIANO 11 UNICREDITO ITALIANO 11 DEXIA 11 DEXIA 11 FORTIS12 INTESA BCI 12 HVB Group 12 CREDIT AGRICOLE 12 INTESA BCI 13 SAN PAOLO IMI 13 NORDEA 13 NORDEA 13 DEXIA 14 NORDEA 14 SAN PAOLO IMI 14 INTESA BCI 14 NORDEA15 DEXIA 15 CREDIT AGRICOLE 15 ALLIED IRISH BANKS 15 SAN PAOLO IMI 16 COMMERZBANK 16 INTESA BCI 16 BANK OF IRELAND 16 KBC BANCASSURANCE 17 KBC BANCASSURANCE 17 ALLIED IRISH BANKS 17 KBC BANCASSURANCE 17 ALLIED IRISH BANKS 18 CREDIT LYONNAIS 18 KBC BANCASSURANCE 18 SAN PAOLO IMI 18 BCO POPULAR ESPANOL 19 ALLIED IRISH BANKS 19 BANK OF IRELAND 19 BCO POPULAR ESPANOL 19 BANK OF IRELAND 20 BANK OF IRELAND 20 COMMERZBANK 20 HVB Group 20 HVB Group21 BCO POPULAR ESPANOL 21 BCO POPULAR ESPANOL 21 COMMERZBANK 21 COMMERZBANK

Dexia ranking in Euroland (market capitalisation)

49

HVB GroupAbbey National

Unicredito

HBOS

Allianz **Deutsche Bank

CA SASP IMIIntesa

ING Groep**SocGen

ABN AmroKBC

UBSFortis **

Crédit SuisseAIBStandard Chartered RBOSBarclaysBNP Paribas

HSBC Nordea

BBVASantander

Banco PopularLloyds

Den DanskeHandelsbanken

-40.0% -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0%

Profit Margin * (2003)

* Net Income before minority interests/Total revenue** Banking Activities only

Dexia

Average of 30 first European

Banks

50

Credit Ratings of main subsidiaries

S&P Moody’s Fitch

Dexia Crédit Local AA Aa2 AA+

Dexia Bank Belgium AA Aa2 AA+

Dexia BIL AA Aa2 AA+

Dexia Municipal Agency AAA Aaa AAA

FSA AAA Aaa AAA

51

Main Stock Indexes including the Dexia stock

& Euronext 100

& CAC 40

& BEL 20

& FTSE Eurotop 100

& MSCI

& Dexia is also included in 4 “Sustainable Growth” indexes: & DJ Sustainability Index “World”, & ASPI Eurozone, & FTSE 4 Good Europe & World, Ethibel Sustainability Index (ESI)

52

Shareholders’ base (at Dec. 31, 2003)

15.3%

14.9%

7.7%

5.7%

4.1%2.8%

49.5%

Arcofin

Holding Communal

Groupe CDC

Ethias

Staff and Management

Treasury Shares

Others

Total number of shares outstanding: 1,175,222,680

(Formerly SMAP)

53

Total Shareholder Return

2,4502,317

1,498

1,7851,810

CAC 40 EuroStoxx50 BEL 20 EuroStoxxBanks

Dexia

Value in € at 31/03/2004 of 1000 € invested*

1,1081,005

819791833

CAC 40 EuroStoxx50 BEL 20 EuroStoxxBanks

Dexia

on November 20, 1996 on September 19, 1999

* With dividends reinvested

54

Documents

General Presentation