OCCITANIE Investor Presentation September 2018

C2 - Internal Natixis 09/2018

Page 03

Important Notice Page 21

Financing Strategy and Debt Management Page 04

Région Occitanie Presentation Page 27

Green and Social Issuance Page 13 Summary Organisation and Competencies Page 46

Appendices Page 17

Financial Structure

C2 - Internal Natixis 09/2018 IMPORTANT NOTICE

• This Presentation has been prepared by Région Occitanie 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 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. The Recipient has decided and will decide either alone or with the assistance of the Recipient's own advisers, whether to purchase the Notes, and has evaluated or will evaluate the appropriateness and suitability of an investment in the Notes. Region Occitanie advises the Recipients to consult any useful regulatory or contractual documents which the Recipients wish to consult. Investment in the Notes involves financial risk. The Recipient has sufficient knowledge and experience in financial and business matters to analyse and evaluate the merits, suitability and risks of investing in the Notes. The Recipient is capable of bearing the risks relating to its investment in the Notes. The Recipient has made all legal, tax, accounting, regulatory, financial and other assessments it deems relevant in connection with its purchase of the Notes and has conducted its own analysis of the financial situation, business and solvency of the Région Occitanie and of the Notes prior to making any investment in the Notes. It is each Recipient's responsibility to confirm that it is authorized to subscribe or invest in the Notes.

• Information in this document are indicative and in draft form. They may evolve, be complemented or modified after the date of this document.

• This Presentation may not be forwarded or distributed to any other person and may not be reproduced, in whole or in part, in any manner whatsoever without Region Occitanie's prior written consent.

• 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 Occitanie 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 Occitanie 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 Occitanie. 3 09/2018

RÉGION OCCITANIE PRESENTATION

C2 - Internal Natixis CCITANIE 09/2018 O , THE SECOND BIGGEST FRENCH REGION

Toulouse, the regional capital (4 th French city)

10 airports including - airport (9.2 millions of passengers in 2017)

2 900 km of railways

13 départements and 4,485 municipalities, 3 trading ports including 2 metropolis: Toulouse and (Sète, Port-La Nouvelle and Port-) , 66 yachting marinas

An area of 72,724 km², i.e. 11.3% of the size of , 220 km of coastline

The Pyrenean mountains covers over approximately 15,000 km² of the region, 20 seaside resorts

The flows across about 250 km of the region,

Agricultural land covers 48% of the region 5 09/2018 RÉGION OCCITANIE , A CROSSING HUB OF

6 th 09/2018 OCCITANIE : 5 MOST POPULATED REGION IN FRANCE

th The 5 most populated region in Occitanie 5,8M France : 5.8 million of inhabitants in 2018 (according to the INSEE, vs. 66 million in France), for a population density of 79.6 Nouvelle- 5,9M inhabitants/km² (vs. 117.6 for France).

Hauts-de-France 6,0M Strongest demographic growth for a metropolitan region (exc ) ! On 7,9M average +0.9% since 2009 (twice the -Rhône-Alpes national level). Number of inhabitants inmillions Île-de-France 12,1M 44% of the population is concentrated in 4 urban areas: Toulouse (23%), Montpellier 0 5 000 000 10 000 000 15 000 000 (10%), (6%) and Nîmes (5%). Source : INSEE data

Highest net migration inflow between 2009 and 2014: +51,400 people per year.

By 2030, population growth is expected to be the highest in France: on average +50,000 persons/year, amongst which 20,000 employed .

7 AJOR ASSETS OF THE REGIONAL ECONOMY 09/2018 M GDP : €161 BILLION

Agri-food, agriculture and Health and cutting edge Life Sciences winegrowing occupy half Industry of the territory More than 240,000 jobs 213,000 employees € 6.867 billion University Hospital Center : 37,500 industrial companies st 9% of the metropolis total 1 UHC of Toulouse 6th UHC of Montpellier 1st organic region 1st european region According to the « list of 50 best hospitals in France » (Le Point) in aeronautic and space 1st world vineyard Oncopole de Toulouse : unique site in in terms of surface 86,000 direct jobs Europe fully dedicated to fight against 3rd agri-food region cancer with 7,000 establishment Digital : a high connected region

1st French region About 52,500 workers in 8,400 companies for research 2 « French Tech Metropolis » labeling 4th French touristic (Toulouse and Montpellier) 6 billion euros region 1 digital companies cluster : merger in January 2017 of in R&D expenditures FrenchSouthDigital (Montpellier) and Digital Place (Toulouse) > to 3% of GDP 14 billion euros tourism revenues 30,000 researchers Coastal economy, « blue » growth 15 competitiveness clusters 30 million tourists 35 graduate schools and 5,319 million tonnes of freight universities 1st region for its campsites st capacity 1 Mediterranean fishing fleets 155,172 maritime passengers 230,000 students th 4 region in terms of jobs in Sètes, Port-La-Nouvelle et Port Vendres ports (2014) created by tourism: 108,000 8 million of tourists per year – 20 touristic resorts on the coast 66 yacht harbours, 30,000 rings – 1 Sea Parliament

8 09/2018 AN ATTRACTIVE REGION WITH A DYNAMIC ECONOMY

€ 161 billion of GDP in 2016 , the 4th regional GDP ; which Number of jobs between 2013 and 2018 represents 7.2% of the national GDP. in relation to the unemployment rate in France (base 100: T4 2010): Between 2014 and 2015, the growth rate of the region is twice higher than the national level (+0.5%) and 0.1% 108 higher between 2015 and 2016. 106. Growth of salaried jobs (> 2 million) higher than that of 106 5 metropolitan France since 2011 and fall in the unemployment rate (10.7% in the first quarter of 2018 (- 104 1.2 point in 2017) against 9.2% in La France). There is, 103. therefore, a catch-up phenomenon for several years. 5

102 Région Occitanie is also dynamic in terms of business creation: 55 000 companies were created in 2017 (+5% growth). 100

37,400 jobs were created over 5 years (between 2011 and 2016), third national score: attractive region for workers. 98 Business failure down 6% in 2017. T4 T1T2T3T4T1T2T3T4T1T2T3T4T1T2T3T4T1T2T3T4T1T2T3T4T1 T2 T3 T4 T1 2010 2011 2012 2013 2014 2015 2016 2017 2018 th 4 tourist region of France : tourism represents 10% of Occitanie France the region’s GDP (i.e. € 14 billion in revenue in 2017).

The new dimension of the regional territory has favored the diversification of the economy . Thus, agriculture, agri- Source : INSEE data food and viticulture constitute the first economic sector, followed by the aeronautics and space sectors, health and informatics. The biggest contributor to regional wealth is the agri-food industry (20%), ahead of aeronautics (18%).

9 09/2018 AERONAUTIC AND SPACE : A MAJOR ASSET OF THE REGION

First european region in the aeronautic and space sector ;

Many major clients, suppliers and key players in research and education are present in the region: • Airbus global headquarters (R&D and assembly lines), ATR, Safran, Latécoère, Liebherr Aerospace, Ratier-, tier 1 and later subcontractors : production and engineering (Alten, Altran, Assystem…), 102,000 JOBS CREATED MORE THAN 1,100 • Airbus Defense & Space, Thales Alenia Space, OF WHOM 86,000 directly FIRMS IN THE REGION CNES, ONERA,… employed in aeronautic and space • Main French aeronautical schools (ENAC, ISAE Sup-Aéro,…) ;

Dynamic job creation: +2.1% in 2017 ; st 1 EUROPEAN €10Bn OF 40% OF THE Major contributor to the R&D performance of the REGION ANNUAL REGION’S Région Occitanie. Region where the plane of the FOR CIVIL AVIATION REVENUES INDUSTRIAL furture is designed and built. EMPLOYMENT

10 09/2018 AN ECONOMY DRIVEN BY RESEARCH AND INNOVATION

Highest R&D expenditure relative to GDP in France (3.74% in 2014 vs. 2.24% in France), driven by the private sector (aeronautic and space, health, etc…) and the public sector (University Poles, CNES, CNRS, ONERA, INRA, INSERM, CEA,…). Occitanie is thus the first region to achieve the R&D objective (3% of GDP) set by the European Commission in the Europe 2020 strategy.

Nearly 30,000 researchers working in the region.

15 competitiveness clusters : the goal is to create technopoles by rallying companies, research laboratories and training institutions in order to promote the development of a dynamic and wealth-creating ecosystem (development of strategic and innovative collaborative projects). Challenges are : innovation, attractiveness, the impediment to relocation and employment.

The main clusters are :

Sustainable development of the maritime and Aeronautic, Embedded systems space Water issues : location, extraction, uses and Axes drugs, medical devices, littoral economy in the Mediterranean basin Worldwide cluster sanitation for secure use diagnostics and imaging, e- World-class cluster Bi-regional Occitanie / Nouvelle Aquitaine World-class cluster health Bi-regional Occitanie / PACA Tri-regional Occitanie / PACA / Corse Bi-regional Occitanie / PACA

Health and biotechnology sector, in Renewable energy Agriculture, agri-food, particular in the fight against cancer developement in building and agri-ressources Bi-regional Occitanie / Nouvelle Aquitaine industry Bi-regional Occitanie / Nouvelle Aquitaine 11 GRICULTURE AND AGRI FOOD 09/2018 A - : AN ESSENTIAL SECTOR OF THE REGIONAL ECONOMY

Agriculture occupies half of the region’s land (3.5 million hectare) generating € 7 billion worth of annual production in 2016, i.e. 10% of the French production: more than 75,000 farms and more than 7,000 agro-food companies (TPE-PME) ;

2nd largest agricultural region: vegetables, livestock (sheep, cattle, pastoral), fruit production, cereals and grains. Altogether there is 240 official labels that attest to quality and provenance ;

1st French region for organic farming ;

Largest vineyard of the world (a third of the French production) and 1st wine exporting region in France ;

1st French « field crops » region (wheat, corn, …) ;

The agricultural and agri-food sector achieves a turnover of € 13.7billion and employs 164,000 people (the 2nd French region of agricultural employment),

Région Occitanie forest is the 2nd largest in France (2.5 million hectares covering 35% of the regional territory). The sector represents 8,000 companies and 32,000 jobs.

12 09/2018

ORGANISATION AND COMPETENCIES

C2 - Internal Natixis 09/2018 THE RÉGION OCCITANIE

Région Occitanie was created in Thus, Occitanie became the second 2016 from the merger of 2 former biggest region in France. It is bigger French regions: - than several European countries like and Midi-Pyrénées. Switzerland, Luxembourg, Holland and Belgium.

14 09/2018 REGIONAL GOVERNMENT AND POLITICS

The region has two legislative bodies: a deliberative one, the Regional Council and an advisory one, the Regional Economic, Social and Environmental Council (CESER).

The Regional Council is composed by 158 The Regional Economic, Social and Environmental members elected in December 2015 for 6 years Council formulates opinions on regional policies, by direct universal suffrage (of whom 71 are at the request of the President of the region. women). Upcoming polls are scheduled for March It is composed of 170 advisers appointed for 6 2021. years since the 1st January 2018 by order of the The council meets to vote on the main lines of Prefect of the region. regional policy.

The President of the Regional Council, elected by the councilors, Mrs. Carole DELGA (former Minister) : - Prepares and executes the decisions of the Regional Assembly, - Is the Authorizing Officer and prescribes the execution of regional revenues, - Manages the heritage of the region, - Heads the region services. 15 09/2018 COMPETENCIES OF THE REGION

TOURISM TRANSPORT • Defines development goals, • Coordinates promotion initiatives, • Manages the TER, TERRITORY DEVELOPMENT • Sets the status of the Regional Tourism • Operates commercial seaports, Committee. • Designs, maintains and manages civil aerodromes, • Develops the spatial planning and the • Organizes road transports and school transport (2017). sustainable development and territorial equality scheme. PROFESSIONAL TRAINING AND EMPLOYMENT

ECONOMIC DEVELOPMENT • Defines and implements the apprenticeship and vocational training policy, • Defines the economic orientations, • Coordinates the regional public service of guidance. • Grants aid to companies, • Animates competitiveness clusters, • Supports research and innovation. CULTURE

• Conducts the general inventory of cultural ENVIRONMENT AND ENERGY heritage, • Manages regional museums, the regional fund of • Leader for climate, air quality, energy, contemporary art, waste management • Preserves cultural heritage protection. • Creates and manages Regional Natural Parks (RNP). EDUCATION ET LEARNING

SPORTS • Builds, maintains and operates high schools, • Establishes the provisional training program, • Builds and maintains school equipment, • Participates in the financing of high education • Subsidizes clubs, associations,… sites. • Manages CREPS in charge of high level sport. HEALTH AND SOCIAL SERVICES HOUSING • Health and social training (construction and maintenance), • Defines the training policy of social workers, • Supports access to housing, • Helps to the installation of professionals in deficit areas, • Supports city policy and urban renewal. • Contributes to the financing of equipment for neighborhoods.

16 09/2018

FINANCIAL STRUCTURE

C2 - Internal Natixis 2018 BUDGET 09/2018 PILLARS OF REGIONAL ACTION : € 3.5 BILLION

€ 318,8mn Personnel expenditure (general administration, High Schools and ports) € 1,107mn A determined €117,4mn territorial action for Debt service (capital employment and and interests) equality of citizens

Education and youth, vocational training € 961,2mn and apprenticeship, employment, The "Made in territory planning, mountain and rurality, solidarity, community life and housing, Occitanie" to preserve, gender equality, city politics, sport. support and promote our cultures, our The practical know-how and our ecological innovations transition in everyday life Economy, agriculture and agri-food, research and innovation, higher €105.9 M education, international relations, tourism and thermalism, culture and history.

€ 68,3mn € 756,7mn General administration A regional public transports service to promote all ways of € 77,9mn transportation Taxation repayment to some départements Transportation infrastructures, seaports (transfers) Ï €1.1billion spent on investment. 18 09/2018 BREAKDOWN REGIONAL RESSOURCES IN THE 2018 BUDGET : € 3BILLION (EXCEPT BORROWING )

Other ressources € 221.6mn State's grants € 229.9mn Indirect taxation € 993.3mn

European funds € 573.7mn

Direct taxation € 949.8mn Two-thirds of regional resources consist of tax revenues that are more dynamic than government grants. Essentially, it's about: • CVAE (contribution on the value added of companies), • Vehicle registration certificate, • VAT (Value-added tax), • Internal consumption tax on energy products.

Tax rate only concerns vehicle registration certificates,

The relative share of state grants has declined over the last years,

The European Funds Management Authority is supported by: the European Regional Development Fund (ERDF), the European Social Fund (ESF), the European Agricultural Fund for Rural Development 19 (EAFRD) and the European Maritime and Fisheries Fund (EMFF). 09/2018 FINANCIAL METRICS : A ROBUST FINANCIAL SITUATION

2015 2016 2017

Preservation of gross savings in millions of € (surplus Savings rate above 20% (self- generated by the operating section allocated to financing 473.6 560.7 461.8 financing) investments)

Solvency: deleveraging capacity in years (outstanding Regions’ average close to 5 years, 3.2 2.8 3.9 debt / gross savings) alert threshold greater than 9 years

In 2017, more than 70% of regional investments were An investment-oriented financial self-financed. strategy, combined with a highly monitored evolution of operating expenses.

The Public Finance Programming Act (2018- Use of debt Net adjusted 2022) caps the actual operating expenses 29,3% savings 41% increase of large local authorities to 1.2% per year in value. The 2015-2017 average for the Région Occitanie is +0.9% per year on a like- Own ressources for-like basis (excluding transfers of of Competencies and European funds). investment 29,8%

20 09/2018

FINANCING STRATEGY AND DEBT MANAGEMENT

C2 - Internal Natixis 09/2018 WHAT LEGAL FRAMEWORK ?

The golden rules of budgetary balance (art.L612-4 of the General Code of Territorial Collectivities, see appendices): ∑ The operating section must be voted in balance, ∑ Investment section must be balanced: borrowings are non-tax investment income that finances capital expenditures , ∑ Operating section surplus and Investment revenues streams must be sufficient to Cover Debt Capital Amortization.

Debt service (interest + capital) is a mandatory expense (Article L4321 of the GCTC).

State supervision on territorial collectivities: ∑ Legality check, ∑ Control of accounting operations (separating authorizing - accounting), ∑ Control by the Regional Chambers of Accounts.

State financial insurance (no explicit guarantee) ∑ Ensures the payment of tax revenues and endowments (in accordance with the terms set out in the budget law), ∑ Obligation to compensate local authorities financially in case of transfer of Competencies or creation of new powers (Article 72-2 of the Constitution, see appendices). 22 COMPOSITION OF OUTSTANDING DEBT : € 1.79 BILLION 09/2018 € 310.6 / INHABITANT (A LEVEL BELOW THE NATIONAL AVERAGE CLOSE TO € 400)

Type Outstanding amount in 2016 Outstanding amount in 2017

Fixe €686.6mn €919.6mn

Bond market €26.4mn €14.8mn

Barrier €50.2mn €47.7mn

Barrier with multiplier effect €8.7mn €8.3mn

€ 990.4mn Total Fixe (48.5% in 2016 versus 55.2 % in 2017 ) € 771.9mn

Variable €632.4mn €603.8mn

€ 803.0mn Livret A € 188.1mn

Total Variable and cancellable (51.5% in 2018 versus €820.5mn €803.0mn 44.8% in 2017)

A balanced distribution Breakdown of the outstanding: Charte Gissler

Floating Fixed Rate Rate 55,20% 44,80%

23 09/2018 2017 DEBT BREAKDOWN BY LENDER OUTSTANDING AMOUNT : € 1,793.3 MILLION -AVERAGE LIFE SPAN : 11.8 YEARS -WEIGHTED AVERAGE RATE : 1.54%

As part of its development, Région Occitanie wishes to diversify its sources of financing and has therefore decided to create an inaugural green and social bond issue.

The region also has other diversified sources of medium / long term funding: • An EIB loan line of € 150mn available until mid-2019, • A CDC loan line of € 64.8mn.

Crédit Agricole Caisse des dépôts et € 181mn consignations SFIL – Société Française Crédit Foncier € 48,5mn € 497,7mn Financement Local € 100,2mn

BNPP € 27,5mn

Société Générale € 56,0mn Credit Mutuel Arkéa € 14,6mn Others € 299.0mn

Caisse Française PBB Deutsche Financement € 61,9mn Pfandbriefbank € 9,0mn

Crédit Coopératif € 8,0mn

Caisse d’Epargne € 73,4 mn European Investment Bank € 715,4mn

24 09/2018 INTEREST RATES AND AMORTIZATION PROFILE

Average life and weighted average rate Extinction of debt

Debt service Remaining capital 15 4.0

3.5 12,3 12,3 12,4 12,2 11,8

3.0

10 2,35 2.5 2,14 1,89 1,79 2.0 1,54

1.5 5

1.0

0.5

0 0.0 2013 2014 2015 2016 2017 Average life (year) Weighted average rate (%) Capital depreciation Interests Remaining capital on the 1 st of January

Prudent debt management, good governance and financial strength have helped to further reduce the cost of the region’s debt. In 2017, their average interest rate (1.54%) is lower than that of all local communities (2.37%). 25 09/2018 CREDIT RATING «Regions cannot be subject to « Quality bankcruptcy governance » proceedings »

« Financial strength among local « Good debt authorities is repayment another factor for capacity » their rating » « AA » Stable Perspective Rating given since its creation. July 2018 « Good liquidity coverage»

« Good budgetary performance »

« The management sticks to its patience and prudence mantra, closely managing its budget and its debt through advanced financial forecasts »

« An upgrade in France’ rating (AA stable) combined with an improved budgetary performance, could be reflected in the collectivities’ ratings »

Despite the increase in outstanding debt, financial expenses are only increasing slightly 26 09/2018

GREEN AND SOCIAL ISSUANCE

C2 - Internal Natixis 10/09/18 OCCITANIE , POSITIVE ENERGY REGION

Occitanie’s consumption reduction targets per sectors ß Région Occitanie is ranked 2 nd among French regions for the production of renewable energy. In 2050, Région Occitanie plans to be the first European energy positive Residential region (Repos) by:

• reducing by 39% its energy consumption (in Services comparison with 2015 level of consumption);

Transportation • multiplying by 3 the renewable energy production within the different possible sectors in Industry the region.

nd ß 2 French region for the production of photovoltaic and Agriculture hydro electricity, and 3rd region for wind energy, 1 st potential for offshore wind,

ß 15,000 employees. REPOS scenario

Energy production

Demand(REPOS) Renewable (REPOS) Demand (Trend) Renewable (Trend)

Evolution 2015-2050 Demand and renewable Nuclear Renewable Fossils Net (Cons – Prod) energies (in TWh) 28 10/09/18 OCCITANIE , A SOCIALLY COHESIVE REGION

In order to address precariousness, territorial disparity and discrimination (gender equality, handicap), Région Occitanie implements a large panel of ambitious policies to meet the needs of 1 700 90 300 34 000 the most disadvantaged inhabitants and APPRENTICESHIP TRAINING PLACES YOUNG PEOPLE anchor the solidarity between territories. PLACES in apprenticeship (as of 1rst of preparing for 700 for unemployed people january 2016) different degrees

Several measures can contribute to social cohesion: 200 CLUBS AND SPORTS 1 049 SOCIAL HOUSING 85 CARE HOME « ensuring equal access to employment, to TRAINING CENTRES SUBSIDISED PROJECTS healthcare services, to culture, to professional benefit from regional grants by the Region financed by the Region training at any stage of professional career, to local services, to local democracy…; fostering the development of social ties, exchanges and intercultural solidarities between generations and territories; fighting against discrimination, revitalizing disadvantaged areas and neighborhoods, … »

GENDER EQUALITY YOUTH CARD

29 10/09/18 INAUGURAL GREEN AND SOCIAL BOND

In concordance with its commitments, and in order to finance the corresponding investments, the Région Occitanie will launch its first Green and Social Bond, with the following features:

Size : TBD – Sub-benchmark

Maturity : TBD – Long Dated

Green/Social eligibility: Compliant with 4 components of the Green Bonds Principles and the Social Bonds Principles

Use of Proceeds : Financing of investments in the following fields: Ecological and Energy Transition, Natural Resources Protection, Social Action, Education and Culture

Reporting : on a yearly basis, until complete allocation of proceeds

Second opinion : independent second opinion from Vigeo Eiris

30 10/09/18 GREEN & S OCIAL BOND FRAMEWORK

A framework : Aiming at fully complying with the Green Bonds Principles and the Social Bonds Principles 2018 Use of proceeds Process for Project Evaluation and Selection • Commitment on the use of the funds towards one or • Transparency of the project selection process several project categories ahead of any bond issuance • Second opinion delivered by Vigeo Eiris • Emblematic green & social projects of the region

• Projects aligned with both environmental and social performance criteria.

Management of proceeds Reporting on financed projects • Bonds will mainly finance investments expenditures of the • Commitment to reporting on the use of proceeds on the current year and the following fiscal year bond issue’s anniversary date

• Amounts allocated to projects will be accounted on the • Presentation of impact indicators and calculation basis of the accurate spent amount methodologies used

In line with several Sustainable Development Goals defined by the United Nations:

31 10/09/18 USE OF PROCEEDS

The net proceeds of the Green and Social Bond will be used to finance or refinance, in whole or in part, investments made by Région Occitanie in projects belonging to the following 4 categories:

ß Ecological and Energy Transition and Climate Change Mitigation ,

ß Natural Resources Protection

ß Social Action,

ß Education and Culture.

Funds will mainly be allocated to the financing of investments of the current year, and of the following fiscal year with the possibility to refinance projects from the previous year:

Year n-1 Current year Year n+1

32 10/09/18 PROJECT ’S ELIGIBILITY CRITERIA

Every financing or grant request has to comply with eco-conditionality principles . These principles aim at integrating economic, social and environmental criteria into its interventions in favor of both Corporates or Local Authorities.

These principles are the following:

ß Reduction of the environmental footprint and development of low-energy consumption model ,

ß Improvement of working conditions : professional development and respect of social rights

ß Fight against discriminations ,

ß Financial ethic .

33 10/09/18 PROJECTS SELECTION PROCESS

1- Technical Committee selects and assesses projects

• The Technical Committee is composed of representatives of Department of Budget and Financial Affairs, representatives of Direction of Strategic Valuation of information (in charge of the evaluation of public policies) and representatives of the Technical Departments,

• Technical Departments ensure that projects are in line with the framework,

• Both Department of Budget and Financial Affairs and Direction of Strategic Valuation of information serve as the secretariat for the Technical Committee,

• Technical committee meet on a yearly basis.

2- Steering Committee arbitrates and validates the list of eligible Green and Social Projects

• The Steering committee is composed of Madame La Presidente of the Région , the relevant Presidents of Commissions , and the General Direction of the Regional Administration,

• The final list of Green and Social Projects is submitted by the Technical Committee to the Steering Committee for final decision.

34 10/09/18 SELECTED ELIGIBLE PROJECTS

The following projects have been selected to reflect the ambitions carried by Région Occitanie:

PROJECTS CATEGORIES SUBCATEGORIES Buildings: construction of energy efficient buildings, thermal insulation for existing building Ecologic and Energy Transition Renewable energy production: onshore & offshore wind, solar panels, biomass,ydro-electricity. h Public transport / low-carbon energy transport: rail infrastructures, acquisition of new rollingstock.

Protection of Natural Resources Durable water management distribution : infrastructures, infrastructuresthe for prevention of flood damage.

Health :accessibility to healthcare services across theritory. ter Healthcare and social welfare training institutes: construction and renovation of healthcare andial soc welfare training schools Social Action Public Buildings and infrastructures : accessibility to public buildings and infrastructures Social Housing / Sutdent Housing: support for the increase of the offer Investments for small size sport clubs: equipments financing

Education and culture Support services for young people and students school : books, laptops.

35 10/09/18 EXAMPLE OF EMBLEMATIC PROJECT

Construction of « Olympe de Gouges » High-School in

Emissions of greenhouse Energy Transition and Reduction of greenhouse gas avoided (t eq CO2) Buildings gas emissions Climate Change efficiency Mitigation Energy savings Energy savings (MWh) Project High-School Olympe de Gouge Picture: Région Occitanie

Investment amount: €29.9m for 2017 - 2018 (as budgeted) – 2019 (as budgeted)

General Description:

High school on 3 levels (ground floor + 2 floors), with a building footprint of 12,505 sq m, Capacity : 1,471 pupils + 185 staff (teachers/ general services) This equipment will be made up of 71 classrooms, one 2,800 sq m sports facility, nine 4-rooms official accommodations.

Environmental Quality of the building:

- Energy performance of the building: Q4Pa Surf: 1.7m 3 / h / sq m, reducing heating needs to 13 kWh / sq m, - 2 wood-fired boilers 2* 200kW, - Photovoltaic panels on the rooftop, for a total surface of 1,750 sq m and peak power of 371kWc,

Positive Energy building with a negative consumption of non renewable energy of -15.2 kWhEP / sq m - LED lighting , with presence detection, - Level 2 « Label Bâtiment biosourcé » (more than 24kg of bio-based raw materials per sq m).

36 10/09/18 EXAMPLE OF EMBLEMATIC PROJECT

Acquisition of rolling stock Régio2N

Energy Transition and Modal shift (number of Public additionnal public Climate Change Energy savings transport transport users) Mitigation Emissions of Greenhouse Reduction of greenhouse gas avoided (t eq CO2) gas emissions Train Régio2N Picture: Région Occitanie

Investment amount : € 115,9mn: 2017 - 2018 (budgeted)

General Description : Acquisition of 18 trains / model Regio2N – short version 83m.

- Double-decker trains, - Self propelled / Electricity powered / dual-current mode (1 500V, 25kV), - Number of seats (including folding seats) : 376 / Total number of passengers (seated + standing 4p/sq m) : 705 , - Speed maxi: 160 km/h – Expected service life : 30 years.

Environmental and sustainable main characteristics :

- CO 2 emissions par user, in g / km : 0.67 - Raw material used for wagon bodies and bogies : Steel - Recyclability rate (% of total weight) : 88% - Recoverability rate (% of total weight) : 96%

37 10/09/18 EXAMPLE OF EMBLEMATIC PROJECT

Methanization

Energy Transition and Reduction of greenhouse Renewable Emissions of Greenhouse gas emissions Climate Change energies gas avoided (t eq CO2) Mitigation Energy production (MWh) Bioquercy Project Picture: Région Occitanie

Investment amount : 3.6 M€ : 2018 (budgeted)

General Description : Methanization is a biowaste treatment process which aims at :

• Enhancing the use of biowaste available on the region’s territory, • Producing biogas which will be used in the natural gas distribution network, or for the production of heat and electricity. • Producing digestate usable as a natural fertilizer.

Methanization is a renewable low carbon source of energy for the inhabitants.

Technical characteristics / Bioquercy Project ( – ) :

- 50,000 tons of biowaste treated - Electricity production of 9,900 MWh - 45,000 tons of fertilizers produced

38 10/09/18 EXAMPLE OF EMBLEMATIC PROJECT

Plan Rhône

Durable water Natural Resources Prevention of flooding Perimeter of areas management Protection protected against flooding

Dikes length

Investment amount : 13.3 M€ : 2017 - 2018 (budgeted) – 2019 (budgeted)

General Description :

The prevention of flooding is a component of « Plan Rhône » and aims at durably protecting inhabitants and economic activities from the risk of Rhône flooding. It has been elaborated as part of a general strategy of Rhône flood prevention for the Rhône and its tributaries, following the catastrophic floods of 2003.

A large part of financing has been allocated to infrastructures (dikes maintenance), but the program has an inclusive approach of all aspects of the flooding risk:

• Reduce the risk of future occurrence, • Reduce vulnerability, • Know how to better live with the risk, • Coordinate the efforts on tributaries.

Technical characteristics :

- Consolidation of 15 km of dikes - Consolidation at the 1,000-years flood level.

39 Photo Région Occitanie 10/09/18 EXAMPLE OF EMBLEMATIC PROJECT

Care Homes

Number of supported projects Social Action Health Fight against medical desert Perimeter of concerned area, and number of concerned inhabitants Care Home Picture : Région Occitanie

Investment amount : 3 M€ : 2018 (budgeted) – 2019 (budgeted)

projects General Description : funded in 2018 Financial contribution for the set up of new Care Homes / Care Centers , gathering several medical specialties, and located in territories with a deficit of medical staff / services. The region will financially participate in the construction or the refurbishment of buildings that will host health professionals and paramedics.

Eligibility criteria :

- Preliminary prospective study, - A minimum 20km distance with the nearest Care Center, - Commitment for 3 years minimum, with participation to the rental and maintenance costs, - Financial contribution from hosting city (or the inter-municipalities body).

40 10/09/18 EXAMPLE OF EMBLEMATIC PROJECT

Région Youth Card

Measures of assistance to Promoting knowledge Number of beneficiaries Education and Cultureyoung people and students Laptop distribution , Picture : Région Occitanie

Investment amount : 80 M€ : 2017 - 2018 (budgeted) – 2019 (budgeted)

General Description :

Through a unique support – “Carte Jeune Région” – Région Occitanie accompanies the high school students and the apprentices in their education course through direct grants for expenses such as school books , adapted personal computer equipment , or apprenticeship fees.

General eligibility criteria :

- Enrolled in an educational institution located in Occitanie (High School (public or private under contract), professional training school, second chance programs etc..), School books distribution Picture : Région Occitanie Or - Resident in Occitanie, and registered in a full time education program with CNED (National Center for Distance Learning).

Specific eligibility criteria (for laptops) :

- High school with the label « Digital High School » Or - Under Conditions of resources (‘quotient familial’) for other High Schools. 41 10/09/18 EXAMPLES OF REPORTING INDICATORS

Project categories Sub categories Examples of indicator Project categories Sub categories Examples of indicators - energy savings (Mwh) - number of supported - emissions of greenhouse projets Building energy gas avoided (t eq.CO2) Health / access to - perimeter of concerned efficiency - number of renovated health care services area, and number of housings concerned inhabitants - number of beneficiaries Ecologic and - energy production (Mwh) - number of news projets Healthcare and social Energy Transition Renewable energies - emissions of greenhouse executed welfare training institute gas avoided (t eq.CO2) - number of beneficiaries - modal shift (number of addtionnal public transport Social Action Social Housing / - number of beneficiaries Public transport users) - emissions of greenhouse Student Housing - number of housings gas avoided (t eq.CO2) - number of realised Access to public improvements buildings and - m3 distributed infrastructures Natural Resources Durable water - m3 substituted to local Protection management - number of supported supply Investment for small sport clubs - perimeter of areas size sport clubs protected against flooding - Dikes length Support services for - number of beneficiaries Education et young people and Culture students

42 10/09/18 SECOND OPINION

Performance evaluation Advanced Good Limited Weak Level of assurance Reasonable Moderate Weak -

«- The Issuer’s ESG commitments and policies are considered to be good. Vigéo Eiris’ assurance on Région Occitanie’s capacity to integrate ESG factors in its strategy is reasonable on the environmental, social and governance pillars.

- No controversy was identified for Région Occitanie over the period under review»

« - We are of the opinion that the contemplated Bond is coherent with Région Occitanie‘s main sustainability priorities and issues, and contributes to achieve its sustainability commitments. »

43 10/09/18 DOCUMENTATION AND CONTACTS

Website : http://www.laregion.fr/

- Budget documents : https://www.laregion.fr/budget2018 - ESG policy : www.laregion.fr/Emission-obligataire-verte-et-sociale

Contacts :

Jean-Pierre PONCET- Directeur des Affaires financières et du Budget MONTANGE

• +33 (0)5 61 33 55 53 • [email protected]

Bernard Directeur Adjoint – Stratégie, Analyse et prospective financières MIFSUD

• +33 (0)5 61 33 51 74 • [email protected]

44 10/09/18

APPENDIX

C2 - Internal Natixis BUDGET 2018

46 COMPTE ADMINISTRATIF 2017

47