Société Anonyme de Gestion de Stocks de Sécurité

Presentation to Fixed Income Institutional Investors

September, 2016

Edouard Filho – General Secretary and CFO +33(0)1 47 10 06 85

p. 1

p. 2

Agenda

I- SAGESS’ Mission at the heart of France’s oil reserve system

II- Operational Profile

III- Financials

IV- Conclusions and Key Considerations

p. 3

I- SAGESS’ Mission at the heart of France’s

oil reserve system

p. 4

SAGESS’ Strategic Mission

SAGESS, Central Stockholding Entity for France (Dec 28th, 2012 Decree), is a private corporation (“Société Anonyme”), with private shareholders and management, fulfilling a public duty within an extensive regulatory and State-controlled environment

SAGESS’ purpose set at its creation (1988) and unchanged by the 1992 Oil Law:

Tighter control over oil reserves obligation / Availability of supply in case of crisis

Fair competition in the market / Reduced burden of strategic reserves on operators’ balance sheets

SAGESS’ unique mission: stockpiling and managing strategic stocks of crude oil and oil products, the latter being at the disposal of the Government

SAGESS’ strategic role is at the heart of France’s strategic oil reserve system, integrated into a stable and committed international framework for strategic stockpiling (IEA and EU)

SAGESS is rated by S&P “AA negative outlook” (long term) and “A-1+” (short term) in line with the rating of France in September 2016.

As of 1st July 2016, SAGESS manages 12.7 MT Eqpf (Equivalent finished products) of oil products representing 73% of France’s reserve obligation

As the Central Stockholding Entity for France, SAGESS is entrusted with the mission of holding and controlling a major part of France’s Strategic Oil Reserves

p. 5

Oil Reserves Are Strategic for Governments

1974 International Energy Agency (IEA) Treaty (OECD agency) with 26 industrialised countries Reserves set at 90 days of net imports

EU directives (Since December 1968 and amended in 2009) and associated controls/reports Reserves set at 90 days of net imports

Ensuring Ongoing State Support for SAGESS

International

Framework

French

Legislation

Reserve

Management

Systems

Strategic oil reserves obligation since 1925

December 1992 Oil Law, subsequent 1993 decrees and orders, codified in the new Code of Energy and Code of Defence

Reserves set at 29.5% (i.e. 108 days) of inland consumption in line with the European directive

SAGESS designated Central Stockholding Entity for France in Dec. 2012 by decree

Differences in set up, but all under close State supervision: Privately held stocks: UK, Italy

Dedicated “agency”: Germany (EBV)

Government: USA (DoE), Japan (JOGMEC), China (NORC)

Privately held stocks and dedicated “agency”: Holland (COVA), Ireland (NORA), Denmark (FDO), Switzerland (CARBURA), France (SAGESS), Portugal (EGREP), Austria (ELG), Spain (CORES), Belgium (APETRA)

p. 6

Responsibility for France’s Reserves Obligation… …Rests primarily with the oil operators, with a significant and increasing delegation latitude to the central reserve system

Operators

Every oil operator must ensure oil reserve at 29.5% of the quantities released for inland consumption in the previous year

17.5 MT as of July 1st, 2016

Partial delegation of this storage obligation, against fee, to the central reserve system structure (CPSSP / SAGESS), with 2 possible levels of delegation: 56% or 90%, and full responsibility on the remainder

CPSSP (“Comité Professionnel des Stocks Stratégiques Pétroliers”)

Fulfillment of delegated obligation Coverage by additional stocks « lent » by

oil operators (tickets) and by SAGESS stocks

Key decisions: SAGESS purchase and sale plans, fees from operators to recover system costs

Committee without assets or operational activities / Delegation of obligation management to SAGESS

Bank guarantee against fee payment default

Full voting rights for Government representatives

SAGESS (“Société Anonyme de Gestion de Stocks de Sécurité”)

Oil reserve management as exclusive object

Stocks purchase and sale, storage and maintenance

Management of the whole system (“Convention”)

All operating, administrative and debt-servicing costs covered by CPSSP

Can only sell upon State formal request

Cannot sell at loss Rights for Government representatives

to request a second vote

Long term

“Convention” (1)

(1) Evergreen agreement with a 5-year cancellation notice / Convention part of the SAGESS By-Laws, approved by Prime Minister Decree

p. 7

SAGESS is at the heart of France’s Reserve obligation…(1/2) …with a growing central coverage and an increasing recourse to SAGESS stocks

France Obligation Coverage (in Eqpf) SAGESS’s Increasing Importance

France Obligation Fulfilment: 17.5 MT (in Eqpf) as of July, 1st 2016

Oil Operators

Own Stocks 3.8 MT

CPSSP

Tickets 1.0 MT

SAGESS 12.7 MT

For each category Gasoline Distillates (Diesel oil

Heating oil) Jet fuel Heavy fuel oils

29.5% of the previous

calendar year’s volumes

released for inland

consumption

0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

198

7

198

8

198

9

199

0

199

1

199

2

199

3

199

4

199

5

199

6

199

7

199

8

199

9

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

201

5

Crude oil

Jet

Distillates

Gasoline

National obligation breakdown

SAGESS stocks evolution (KT)

19

747231

4750

2221

0%

25%

50%

75%

100%

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

Operators Tickets SAGESS

p. 8

SAGESS is at the heart of France’s Reserve obligation…(2/2)

SAGESS’ stocks have reached a ceiling in 2014 at 13.1 Mt fpeq with a

predictable decrease in the forthcoming years:

Decreasing trend of the national obligation as a consequence of the

decrease in national consumption (2015 being an exception) :

National consumption: -2,1 % in 2014, but +1,2% in 2015

National obligation: 17,7 Mt in 2014 and 17,3 Mt in 2015, 17,5 Mt in 2016.

Stabilisation of compulsory storage tickets to CPSSP at an historical low

level, as a result of inventory streamlining by the operators.

Outstanding compulsory storage tickets to CPSSP:

January 2014 : 1170 Kt Eqpf

January 2015 : 815 Kt Eqpf

January 2016 : 809 Kt Eqpf

As a consequence, SAGESS stocks level has marginally decreased, still representing 73% of France strategic stocks as of July 1st, 2016.

…with a growing central coverage and an increasing recourse to SAGESS stocks

Current strategic reserve system maintained and possibly

strengthened:

Stability and criticality of International, EU and National frameworks

Update of Energy and Defence Codes in 2012 to include EU Directive recommendations

SAGESS and CPSSP’ public service role fulfilled at the satisfaction of all stakeholders

EU 2009 Directive on emergency oil stocks regime, aligned with IEA framework

Regulatory framework No foreseeable changes to the oil stockpiling laws that would affect SAGESS’ creditworthiness

Recommendation to create a “Central Stockholding Entity” by country: SAGESS

has been nominated as the CSE for France on Dec 28, 2012 by decree

p. 9

Classification of SAGESS in the ODAC list

On 15 May 2014, INSEE has added SAGESS, in the list of « Organismes

Divers d’Administration Centrale / Miscellaneous central government

agencies »:

This classification had a statistical purpose with regards to France’s national and European

public accounting, by consolidating SAGESS’ debt with France’s national debt.

On 9 August 2016, a Ministerial Decree (arrêté ministériel) has been

published, officially adding SAGESS to the ODAC list.

This list of close to 600 ODACs cannot independently contract long-term debt or issue

bonds above 12 months maturity. This interdiction will be valid from 9 August 2017

onwards.

However, SAGESS can legally issue medium and long-term bonds until 8 August 2017.

On 7 September 2016, SAGESS, as a private corporate entity, has filed

an appeal before the « Conseil d’Etat (Supreme Administrative Court) »

against its inclusion on the ODAC list in the Decree, in order to protect its

financing independence :

If SAGESS wins the appeal : SAGESS’ situation is unchanged

If SAGESS loses the appeal : SAGESS will have access to other means of financing

More information on SAGESS website : http://www.sagess.fr/en/news/news-on-sagess/publication-odac-ministerial-decree-9-august-2016

p. 10

p. 11

II- Operational Profile

p. 12

A Stable and Oil Industry Representative Shareholding Structure

SAGESS is a private corporation (“Société Anonyme”) and has private shareholders and management

All SAGESS’ shareholders must be “customs authorised” oil operators:

International oil companies (TOTAL, ExxonMobil, Shell, BP, ENI) and their subsidiaries

Hypermarkets (Carrefour, Auchan, Intermarché, Leclerc, …)

Other importers/distributors (Bolloré, Dyneff, Picoty, …)

35 shareholders by December 31st 2015

Share in capital adjusted annually in proportion of shareholders previous year releases for inland consumption

Shares can be transferred only with the government’s prior approval

SAGESS is a private company owned by most of the players in the oil sector

SAGESS shareholders as of december 31st 2015 (% of shares)

Source: Cie as of December 31, 2015

50,0

34,0

16

%

Oil Operators

Hypermarkets

Independants

34

12,59,4

7,58,1

28,5

%

Total Marketing France

SIPLEC

Esso S.A.F

CARFUEL

SCA Pétroles et dérivés

Source: Cie as of December 31, 2015

p. 13

SAGESS’ Activities: Oil Stocks management

Purchase and sale of oil products systematically carried out through a tendering process

Most oil industry players are invited (refiners, traders, French and international)

Stock Acquisition

Policy

Storage Policy

Quantity/ Quality Controls

SAGESS is responsible for its storage management

Localisation plan is endorsed by the French State

Stocks are mainly kept in France and, subject to the French State’s agreement, abroad

SAGESS stocks are spread in 92 third party sites (8 refineries, 83 depots and 1 underground salt caverns storage in Manosque)

SAGESS only owns one storage plant of 33,000m3 in Chasseneuil du Poitou (not operated by SAGESS)

Product quantities and qualities are regularly checked and stocks are periodically rotated

All products upgraded with latest specification changes

Products in Stock

Stocks are made up of gasolines, diesel oil/heating oil, jet fuel and of crude oil

p. 14

SAGESS is Run by an Experienced Management

CEO François Martin, joined SAGESS in January 2015. He spent his career, with the Mobil group and then with TOTAL group. He has occupied various managerial positions in the marketing and distribution activities in France and internationally.

Corporate Services Senior VP and CFO Edouard Filho joined SAGESS in July 2010. He was previously in charge of Worex Controllers Department and General Secretary. He spent close to 30 years with ExxonMobil, either in France or abroad

Logistics Senior VP Daniel Bonocori joined SAGESS in April 2013, with an experience in managerial, operational, economic & finance, technical (oil & construction) functions as well as in control and audits in national and international bodies.

The Board of Directors is composed of 13 members from the Oil Industry (the mandate is given for a 5-year period that can be renewed). Three State representatives attend with consulting and second vote rights. One State Commissioner introduced in 2006 with veto right on Manosque pipeline matters

A “Logistic Committee”, a “Financial Committee” and a “CSR Committee” assist SAGESS management and the Board in operational, key financial and CSR matters respectively

An Audit Committee was created in 2009 as a consequence of the European directive on transparency to assist the Board with an oversight of the financial information and a review the efficiency of the internal control system

SAGESS is periodically audited by auditors of the shareholders

Board of Directors and

“Comités”

Experienced Management

Long experience in the oil industry

Corporate Social Responsibility Initiatives of SAGESS

A sustainable development charter was signed at the initiative of SAGESS’s management in February 2012

The annual action Plan is reviewed and approved by SAGESS CSR Committee and SAGESS Board of Directors

Review by SAGESS CSR Committee of the CSR annual report, the related KPI’s and their monitoring

Publication in April 2015 of an updated Code of Business Conduct with a reinforcement of anti-corruption practices: shared with all SAGESS employees and suppliers

Annual publication of SAGESS CSR reports:

Presentation of SAGESS annual CSR plan

Annual update of reporting procedures

Publication of the annual CSR indicators on SAGESS activities

Duty in public service mission

Equity in employment

Sustainable development

Code of business conduct

Environmental policy

p. 15

Corporate Social Responsibility Rating

Unsolicited rating by VIGEO (extra-financial rating agency) every 2 years (latest

November 2015)

SAGESS classified among “Specific Purpose Banks & Agencies” panel sector

SAGESS: active performer in 3 out of 5 criteria

SAGESS: Global score: 64 /100 - Ranking 4 /15 (13 points increase vs 2013)

p. 16

« Sagess overall CSR

performance is

considered advanced

in absolute terms and

improve significantly

since the last review

in 2013 » Source: Vigeo rating - Nov-2015

p. 17

III- Financials

p. 18

Full Cost Recovery Principle SAGESS and CPSSP are by Law self sustaining entities, which sets aside any cost recovery issue

Pay a monthly fee to the CPSSP (€/T released for inland consumption)

Quarterly update to cover all CPSSP costs

Provide bank guarantee against fee payment default

Remunerates operators for tickets on a monthly basis

Covers SAGESS costs

Operators CPSSP SAGESS

Pays:

Storage rentals

Products upgrade

Products controls

Insurance

Other operating and exceptional costs

Overheads

Financial charges

Recovers on a monthly basis all costs

Perceives monthly fees

Stockists

Other Suppliers

Financial Markets and

Banks

SAGESS and CPSSP are linked by a long term “Convention” which guarantees the full cost

recovery principle:

Convention part of the SAGESS By-Laws, approved by Prime Minister Decree

Evergreen agreement with a 5-year cancellation notice

p. 19

SAGESS Profit & Loss Account

Full cost recovery from CPSSP (Law and CPSSP / SAGESS “Convention”) : Convention has been updated and re-approved by French Government on January 2016.

Stocks booked at acquisition cost:

Accounting value €4,324m (end December 2015) vs Market value € 4,253m (end December 2015)

If stocks requested to be sold by government:

Market price transaction

SAGESS benefit from a formal price protection mechanism with CPSSP: guarantee to receive at least the stock weighted average cost (if market price lower than SAGESS weighted average cost, CPSSP will compensate SAGESS by raising an extra fee from the operators)

Profit from sales are booked to reserves

87% of borrowings is based on variable rates (end December 2015)

Preferential tax regime – No corporate income tax

SAGESS cannot make a loss (but can make a profit) and is exempt from corporate taxes

€m Year End 2014 Year End 2015

Cost recovery from CPSSP

Strategic stock sales

361

2

352

155

Strategic Stock variation (1) (131)

Logistic expenses (303) (307)

Other charges (11) (8)

Financial charges (47) (37)

Net Result 1 24

p. 20

SAGESS Summary Balance Sheet By year end 2015, 97,4% of the total balance sheet is made of stocks financed by borrowings. Stocks are fully protected against a fall in oil price, are insured and totally unpledged

€m Year End

2014

Year End

2015

Total Fixed Assets

66 59

Oil Stocks 4,456 4,324

Receivables and Others

48 58

Total

Assets 4,570 4,441

€m Year End

2014

Year End

2015

Net Worth and Provisions

5 28

Borrowings 4,528 4,368

Payables and Others

37 45

Total Liabilities

4,570 4,441

Assets Liabilities

p. 21

SAGESS’ Financial Strategy is Highly Transparent and Accountable SAGESS’ financial strategy is reassessed and reviewed by the Board on an annual basis

Raise funds at competitive cost when needed to finance the stocks and the assets

80 to 90% of funds from medium and long term borrowings

Staggered maturities

Diversification of funding sources

Flexibility

Objectives

Current Debt Structure

Risk Management

Bonds, commercial paper (in addition to the €61m CPSSP’s loan)

100% of use of commercial paper program covered by undrawn Revolving Credit Facility

Short term floating rate debt policy

SAGESS does not use derivatives except interest rate swaps of bond issues (Board prior approval)

No exposure to currencies or oil price

Periodic insurance risk assessment, insurance contracts in place (property products, environment, third party, fraud), high limits and limited

deductibles.

p. 22

Diversified Funding Sources and strong Liquidity Profile

Total Financial Debt of €4,321m by the end of December 2015 (€ 4,686 m by the end of June 2016)

With Diversified Sources of Funding

Bonds accounting for 93% of total debt (100% by end of June 2016) with a strong diversification of the investor base:

A weighted average close to 15% on the four latest 12 year tranches was composed of non-domestic investors

A weighted average close to 60% on the two latest 5 to 7 year tranches was composed of non-domestic investors

CPSSP zero interest loan: €61m

Commercial papers: €235m (no outstanding amount by end of June 2016)

And Strong Liquidity position

Commercial paper program of €1,400m

Undrawn Revolving Credit Facility of €900m

Approval by Ministry of energy to sell up to 10% of SAGESS stocks in case of systemic banking crisis (equiv. €480m at August 2016 market price)

Debt structure :

A continued diversification of the bond investor base*

* Distribution statistics of SAGESS bond issues realised in September 2015 & January 2016

Geography Investor Type

7 y

r

Janu

ary

201

6

12 y

r

Sep

tem

ber 2

015

85%

6% 6%

2% 1% France

Germ / Aust/ Switz

Nordics

Benelux

Others

66% 6%

22%

3% 1% Asset Managers

OIs/ Central Banks

Insurance/ Pension funds

Banks

Others

43,5%

24%

20,5%

8% 2%

2% France

Other Eurozone

Germ/ Aust / Switz

Nordics

UK

Asia

52,5%

24%

13,5%

9% 1% Asset Managers

OIs/ Central Banks

Insurance/ Pension funds

Banks

Corporates

93%

6%1%

Year-end 2015

99%

0%1%

June 2016

Bonds

CP

CPSSP Loan

p. 23

A demonstrated access to the bond market since 2001

Demonstrated access to the bond market:

By the end of June 2016:

8 bonds outstanding with size from €500m to €700m

3 latest bond issues:

March 2013: €600m 2025 maturity

Sept. 2015: €500m 2027 maturity

January 2016 : €600m 2023 maturity

A smooth maturity profile:

Progressive construction of a smooth curve over the last 10 years

No redemption peak: an average redemption size lower than €600m per year

A 5.8 year Average debt maturity by end of December 2015

Bond issue Maturity Coupon (%) Total amount (€m)

June 2006* Oct 20th, 2016 4.000 625

October 2010 Oct 21st, 2022 3.125 500

January 2012 Jan 24th, 2017 2.750 500

January 2012 Jan 24th, 2024 4.000 600

October 2012 Oct 22nd, 2019 1.750 700

March 2013 Mar 6th, 2025 2.625 600

Sept 2015 Oct,25th, 2027 1.500 500

January 2016 May, 25th, 2023 0,625 600

Debt Redemption Profile €m (June 2016)

Outstanding Bonds (June 2016)

* €350m initial issuance, followed by a €275m tap in October 2008

0

100

200

300

400

500

600

700

800

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

Comm. Paper Bonds

p. 24

A regular issuer in the French agency segment

Indicative Secondary Spreads vs. OAT

CADES AFD BPI RATP SAGESS

Credit Rating Aa2/NR/AA Nr/AA/AA Aa2/Nr/AA Aa2/NR/AA NR/AA/NR

State Ownership

100% 100% 50%1 100% 0%

LCR classification

Level 1 Level 1 Level 1 Level 2.A Level 2.A

Issue Risk Weight

0% 20% 20% 20% 20%

PSPP / CSPP Eligibility

Yes Yes Yes Yes Yes

September 2016

0

5

10

15

20

25

30

35

Spre

ad t

o O

AT

inte

rpo

late

d (

bp

s)

Tenor

AFD/BPI RATP SAGESS CADES Linear (CADES)

1. 100% ultimate State ownership through CDC

p. 25

Information about the planned transaction

Issuer SAGESS

Status Senior unsecured

Format RegS bearer, dematerialised

Ratings (Moody’s/S&P/Fitch) NR/AA/NR

Liquidity HQLA Level 2.A

Legal framework Standalone

Listing Euronext Paris

Expected size EUR Benchmark

Currency EUR

p. 26

Standard & Poor’s Ratings

In September 2016, Standard and Poor’s confirmed, in line with the Sovereign, SAGESS’ long term issuer credit at “AA negative outlook” and the “A-1+” short term issuer credit (€ 1,400m Commercial Paper program was confirmed “A-1+”).

SAGESS is included by Standard and Poor’s in the list of the “Government-Related entities” whose rating are equalised with that on France.

“We continue to equalize the ratings on SAGESS with those on France. This is because we consider there is an almost certain likelihood that the French Government would provide timely and sufficient extraordinary support to SAGESS in the event of financial distress.(…).

We continue to consider SAGESS as a GRE (government-related entity), based on our view of its :

"Critical" role in France (…) in supporting the country's energy security and fulfilling its legal obligation to stockpile strategic oil reserves according to International Energy Agency (IEA) and UE requirements. SAGESS was recognized by a 2012, by State decree, as France’s sole central stockholding entity under the 2009 EU directive (…). In our opinion, SAGESS's strategic mission (…) ensures it receives strong state support.

"Integral" link with the French sovereign. SAGESS is integrated into the government's energy and defense policy and subject to close state supervision and control. Furthermore, SAGESS’ debt is consolidated into the central government’s debt.”

“We believe SAGESS’ legal framework ensures full cost recovery, since all SAGESS’ charges are reimbursed by CPSSP.”

“We also consider that, if necessary, SAGESS could access the emergency funding from the French Treasury (Agence France Trésor) […]. We consider this allows for prompt and ample state support to

SAGESS in the event of financial distress”.

Source: Extracts of S&P research as of September 27, 2016

p. 27

IV- Conclusions and Key Considerations

SAGESS Key Highlights

SAGESS, private company with stable shareholding structure with most of the oil sector players

Stable legislative environment, with SAGESS official Central Stockholding Entity for France

More than 25 years of experience with a proven track record management and an increased role at the satisfaction of all stakeholders

An immune business model:

Full SAGESS cost recovery by CPSSP, guaranteeing a balanced statement of income

Ministry of energy approval to sell up to 10% of SAGESS stocks in case of systemic banking crisis

Oil stock value protected by CPSSP agreement

CSR initiative launched in 2012, with annual publication of CSR report and a strong Vigeo rating

Highly transparent, responsive and protective financial policy

Active management of debt profile with extended and staggered debt maturity profile

Regular benchmark issuer since 2001

Robust liquidity position through CP program, undrawn Revolving Credit Facility and mechanism of emergency stock sale

SAGESS S&P ratings: “AA (negative outlook)” long term rating (in line with the Sovereign) and a “A-1+” short term rating by S&P

S&P considers SAGESS as a Government-Related entity (GRE), as are 8 others in France, “ which benefit from an ‘almost certain’ likelihood of extraordinary support from the French government in the event of financial distress.”

SAGESS bonds eligible to the ECB Asset Purchase Program (APP) under CSPP

SAGESS, France Central Stockholding Entity, a corporate with strong assets, secured cash flows and strategic support of French government

p. 28

p. 29

www.sagess.fr

This investor presentation has been prepared by Société Anonyme de Gestion de Stocks de Sécurité (SAGESS). Crédit Agricole Corporate and Investment Bank, CM-CIC, HSBC and Natixis make no representation, warranty (express or implied) or undertaking of any nature nor is any responsibility or liability of any kind accepted with respect to the truthfulness, completeness or accuracy of any information, projection, representation or warranty (express or implied) or omissions in this investor presentation. This investor presentation does not constitute an offer or invitation, or solicitation of an offer, to subscribe for or purchase any bonds issued by SAGESS. This investor presentation is not intended to provide the basis of any credit or other evaluation and should not be considered as a recommendation by or on behalf of Crédit Agricole Corporate and Investment Bank, CM-CIC, HSBC and Natixis or any other person that is a recipient of this investor presentation. Each recipient of this investor presentation should make its own independent evaluation of this transaction and of the relevance and adequacy of the information contained herein and should make such other investigations as it deems necessary to determine whether to participate in the transaction. Accordingly, investors should rely solely on the terms of the Prospectus describing the transaction which will be made available on the website of the Autorité des Marchés Financiers (www.amf-france.org) and at the website of SAGESS (www.sagess.fr) for any investment decisions. This investor presentation is not intended for distribution or publication in the United States or to US persons and it may not be distributed, directly or indirectly, in the United States or to US persons. SAGESS's securities have not been and will not be registered under the United States Securities Act of 1933, as amended.