INVESTOR PRESENTATION 2021 GERMAN-SPEAKING COMMUNITY OF BELGIUM OSTBELGIEN | JUNE 2021 CONTENT 1. INSTITUTIONAL CONTEXT 2. PRESENTATION & ORGANISATION 3. BUDGET & FINANCE 4. DEBT MANAGEMENT AND FINANCING STRATEGY 5. KEY INVESTMENT HIGHLIGHTS 6. USE OF PROCEEDS 7. KEY TERMS & CONDITIONS 1 INSTITUTIONAL CONTEXT THE GERMAN-SPEAKING COMMUNITY IN BELGIUM STRUCTURE OF THE BELGIAN FEDERAL STATE Communities Regions VLAANDEREN VLAAMSE GEMEENSCHAP BRUSSELS COMMUNAUTE WALLONIE FRANCAISE DEUTSCH- SPRACHIGE GEMEINSCHAFT THE GERMAN-SPEAKING COMMUNITY OF BELGIUM28.05.2021 PAGE 4 COMPETENCIES OF THE COMMUNITIES . Culture . Individual-related matters . Education © eastbelgium.com THE GERMAN-SPEAKING COMMUNITY OF BELGIUM28.05.2021 PAGE 5 COMPETENCIES OF THE REGIONS Town and country Economic policy planning Environment Energy Rural development Local Authorities and nature protection Housebuilding Employment Public works Agriculture S.295 IZ KAISERBARACKE 2012_Edition E. Kirsch Studio and transport ADR , A. Drèze THE GERMAN-SPEAKING COMMUNITY OF BELGIUM28.05.2021 PAGE 6 THE GERMAN-SPEAKING COMMUNITY AS SELF-GOVERNED PART OF BELGIUM KELMIS LONTZEN RAEREN NL EUPEN BÜTGENBACH DE AMEL BÜLLINGEN ST. VITH LUX F BURG-REULAND THE GERMAN-SPEAKING COMMUNITY OF BELGIUM28.05.2021 PAGE 7 DEMOGRAPHICS Population POPULATION DEVELOPMENT SINCE 1990 Source: Statbel as at: 1.1.2018 Eupen canton Eupen canton: 46,989 (60.9%) 20% (+18%) 18% 16% German community 14% (+15%) 12% St.Vith canton: 30,196 (39.1%) 10% 8% St.Vith canton: 6% (+11%) 4% 2% 0% German-speaking community: 77.185 1990 1994 1998 2002 2006 2010 2014 2018 Source: Statbel as at: 1.1.2018 THE GERMAN-SPEAKING COMMUNITY OF BELGIUM28.05.2021 PAGE 8 2 PRESENTATION & ORGANISATION SOVEREIGN BORDER EXPERIENCE RESIDING, LIVING, WORKING AND DRIVING THE ECONOMIC WITHOUT BORDERS IN THE HEART OF EUROPE © Christian Charlier THE NETHERLANDS (INS 2001) from the Verviers district: 429 (INAMI 2017) ± 60 FLANDERS 486 (ONSS 2017) 315 BRUSSELS 268 GERMANY 4,435 (ONSS 2017) 99 (BA 2018) WALLONIA 5,527 597 (ONSS 2017) (ONSS 2017) 4,080 2,938 in the Verviers district: 561 (INAMI 2017) LUXEMBOURG MOBILE WORKFORCES (IGSS 2018) IN BORDER REGIONS EDUCATIONAL REGION: CAPITAL OF THE FUTURE • Educational equality • High level of training and education • Wide-ranging participation possibilities for young people • Strengthening media skills © fotolia.com THE GERMAN-SPEAKING COMMUNITY OF BELGIUM 28.05.2021 PAGE 12 GOOD EDUCATION AND FURTHER TRAINING • Qualified multilingual workforces • Dual education • Autonomous college in the German- speaking community • Short distances © Gregor Collienne © badahos/fotolia.com THE GERMAN-SPEAKING COMMUNITY OF BELGIUM 28.05.2021 PAGE 13 ECONOMIC REGION: INNOVATION & COOPERATION • Profiling as a trade and services region • Promotion of SMEs through strong networks • Sustainability • Regional cycles • Creative industry © Gregor Collienne THE GERMAN-SPEAKING COMMUNITY OF BELGIUM 28.05.2021 PAGE 14 CLOSE LINKS WITH RESEARCH AND DEVELOPMENT • RWTH Campus • FH Aachen • Université de Liège • Jülich research centre • Maastricht University © Gregor Collienne © badahos/fotolia.com THE GERMAN-SPEAKING COMMUNITY OF BELGIUM 28.05.2021 PAGE 15 POPULATION BY COUNTRY OF ORIGIN FOREIGN POPULATION BY COUNTRY OF ORIGIN Source Statbel. As at: 1.1.2018 Spain 1,29% FEDERAL REPUBLIC OF Rumania Iraq 1,71% 0,68% Bosnia-Herzegovina Other countries GERMANY 1,39% 11,81% The Netherlands 4,05% Luxembourg 1,36% 69.65% Italy 1,05% Poland 1,69% Russia Federal Republic Kosovo 1,55% 0,61% 69,65% France 1,25% Turkey 1,36% Morocco 0,55% THE GERMAN-SPEAKING COMMUNITY OF BELGIUM 28.05.2021 PAGE 16 EMPLOYEES BY SIZE OF BUSINESS Employers and employees Employees by size of business by size of business 80% (Private sector) 80% 60% German community Wallonia 40% Flanders 48% 20% Brussels Belgium 0% < 100 100-199 > 200 23% 18% Only Ger. com. Employees Employers 16% 13% < 10 5,103 1,784 1% 0% 10-99 10,946 409 100-199 3,591 26 < 10 10-99 100-199 > 200 > 200 3,045 7 Employees Main office Total 22,685 2,226 Source: NSSO, as at: 30.6.2017 THE GERMAN-SPEAKING COMMUNITY OF BELGIUM 28.05.2021 PAGE 17 EMPLOYEES BY SECTOR RELATIVE SIGNIFICANCE OF SECTORS BY REGION Manufacturing industries 22% 13% Trade and repairs 13% Property and housing 11% Public administration Ger. com. Health and social affairs 11% Wallonia Construction industry 6% 6% Education and training Flanders Freelance and technical services 4% Belgium Transport and storage 3% Finance and insurance 2% 0% 5% 10% 15% 20% 25% Source: NSSO, as at: 30.6.2017 THE GERMAN-SPEAKING COMMUNITY OF BELGIUM 28.05.2021 PAGE 18 RESPONSIBILITIES CULTURAL MATTERS • Protection and promotion of language • Art, culture, cultural heritage and museums • Media: Radio and television, libraries, media centres • Youth policy • Adult education • Sport • Leisure activities and cultural events • Art training • Professional training and further education © Gregor Collienne THE GERMAN-SPEAKING COMMUNITY OF BELGIUM 28.05.2021 PAGE 20 PERSONAL MATTERS • Families and family allowances • Health • Social care • Admission and integration of immigrants • Disability policies • Senior citizens’ policies • Youth welfare • Film monitoring • Reintegration of prisoners • Initial legal support • Public service halls and electronic supervision © badahos/fotolia.com THE GERMAN-SPEAKING COMMUNITY OF BELGIUM 28.05.2021 PAGE 21 TEACHING AND EDUCATION • Nursery schools • Primary and secondary schools • Special schools • Kaleido East Belgium Centre for the healthy development of children and young people © fotolia.com • Colleges • Further education colleges • Extra-curricular eduction • Scientific research • Mid-tier dual training establishments © Gregor Collienne © Syda Productions - Fotolia.com THE GERMAN-SPEAKING COMMUNITY OF BELGIUM 28.05.2021 PAGE 22 FOREIGN RELATIONS • Belgian domestic and international cooperation within its own areas of responsibility © Denys Rudyi - Fotolia.com • Possibility of concluding agreements and contracts • Acceptance of international contracts © cunaplus - Fotolia.com THE GERMAN-SPEAKING COMMUNITY OF BELGIUM 28.05.2021 PAGE 23 REGIONAL AUTHORISATIONS Protection of listed monuments Tourism and sites and excavations Supervision and financing of the nine Employment German-speaking communities and the associated organic law © Hagemann THE GERMAN-SPEAKING COMMUNITY OF BELGIUM 28.05.2021 PAGE 24 ACCEPTANCE OF ADDITIONAL REGIONAL AUTHORISATIONS (CURRENTLY UNDER NEGOTIATION OR SINCE 2020) Road building Provincial Energy responsibilities (2020) Housing (2020) Town and country planning (2020) © Kabelwerk THE GERMAN-SPEAKING COMMUNITY OF BELGIUM 28.05.2021 PAGE 25 INSTITUTIONS GOVERNMENT • Accountable to the parliament - constructive vote of no confidence possible • Four full- time ministers Mr Oliver Paasch: Prime minister Mr Antonios Antoniadis: Deputy prime minister, Minister for families, health and social affairs Ms Isabelle Weykmans: Deputy prime minister, minister for culture, employment and tourism Ms Lydia Klinkenberg: Minister for education and scientific research • Government cabinet: total of 34 personal staff of government members Seat of the government © Philippe Massotte THE GERMAN-SPEAKING COMMUNITY OF BELGIUM 28.05.2021 PAGE 27 MINISTRY • Administration of the German-speaking community • 439 members • Preparation and implementation of political decisions • Financing and organisation of over 300 services • The staff maintain close contact with the citizens and subsidised organisations, with many national and international partners. © Ministry of the German-speaking community © Specialist communication ministry department THE GERMAN-SPEAKING COMMUNITY OF BELGIUM 28.05.2021 PAGE 28 SERVICES WITH SEPARATE MANAGEMENT Three services with separate management: MEDIA CENTRE COMMUNITY CENTRES SERVICE AND LOGISTICS © Gaby Zeimers THE GERMAN-SPEAKING COMMUNITY OF BELGIUM 28.05.2021 PAGE 29 PUBLIC SERVICE ESTABLISHMENTS • Employment office of the German-speaking community • Belgian radio and television centre, BRF • Department for independent living • Institute for mid-tier education and further training and training in small and medium- sized firms • Autonomous college in the German-speaking community • Kaleido East Belgium Centre for the healthy development of children and young people © BELGA IMAGE, Thierry Rogé THE GERMAN-SPEAKING COMMUNITY OF BELGIUM 28.05.2021 PAGE 30 3 BUDGET AND FINANCE THE BUDGET OF THE GERMAN-SPEAKING COMMUNITY: INCOME Income 2020 EUR million TRANSFERRED INCOME 314.45 Federal State 237.73 Walloon Region 73.30 Federal State European Union 2.40 23% Walloon Region Luxemburg 1.01 Other Income OTHER INCOME 4.13 European Union 75% Sale of goods and services 2.45 Luxemburg Sale of land and properties 0.00 Interest and Capital Income 0.56 Other assigned revenue 1.12 TOTAL INCOME without proceeds from 318.58 borrowings Credit reimbursements 5.83 Proceeds from borrowing 168.00 TOTAL INCOME 492.41 THE GERMAN-SPEAKING COMMUNITY OF BELGIUM 28.05.2021 PAGE 32 INCOME - KEY FACTS - The federalism of the Belgian state is characterized by persistent tendencies to transfer national competences to local authorities (communities and regions). This explains why about 98% of the revenues of the German-speaking Community are generated by transfers from the federal state and the Walloon Region. - The transfers from the Federal State are regulated and guaranteed by a special financing law of January 16, 1989, amended in 1993, 2001 and 2014. - The transfers of the Walloon Region are regulated by agreements and