investor presentation september 2016 - finance flanders · investor presentation september 2016 . 2...
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Investor Presentation September 2016
2
Flanders in a Nutshell Key Investment Highlights
One of the strongest regions in Europe
Solid Financial Situation
Positive track record of Budgetary discipline
Moderate direct debt levels
Flanders has a wealthy diversified and strong economy with one of Europe’s highest GDP per capita; unemployment rate close to Germany and solid economic growth
Flanders is collecting a greater part of its revenues via own fiscal instrument; which is positive in the context of economic growth and increasing GDP per capita levels
Fiscal flexibility: Flanders can levy more taxes rapidly if needed
Fiscal Autonomy Through the 6th state reform, Flanders has received a greater range of area of competencies and benefits from an increased tax autonomy (own fiscal instruments). Flanders has also a solid taxable basis
Over recent years, Flanders has demonstrated its ability to reduce deficits while maintaining economic growth and social welfare.
Despite ESA 2010 rules, moderate levels of debt combined with a sound financial management strategy (no debt wall)
3
I. Flanders Part of the Federal State Belgium
II. Main Facts & Figures
III. Key Strengths
IV. Public Finances – Impact 6th State Reform
V. Consolidated Debt
VI. Flanders in a nutshell
4
Flanders Part of the Federal State Belgium
Federal State
10 Provinces
3 Regions:
Flanders
Wallonia
Brussels
589 Towns and Cities
3 Communities:
Flemish
French
German
The Flemish Community
and the Flemish Region
immediately decided to
merge their competences.
As a result, Flanders has
one Flemish Parliament,
one Flemish Government
and one public
administration, responsible
for community and
regional matters.
Belgium Federal Structure
Belgian Communities Belgian Regions
5
Flanders Part of the Federal State Belgium Competence Distribution
Federal State “powers related to public interest”
Public Finances
Defense
Security
Justice
Social Security
Public Health
Domestic & International
politics
Transport & Communication
Flemish Community
“powers related to language
and culture”
Education
Culture
Public health (prevention)
Welfare
Language issues
Child protection
Family Affairs
Flemish Region
“powers related to territory
and economy”
Economic development & co-
operation
Public infrastructure
Town & country planning
Environment
Energy
Employment
Agriculture
Foreign Trade
Regional transport
Control & organization of
local governments
6
I. Flanders Part of the Federal State Belgium
II. Main Facts & Figures
III. Key Strengths
IV. Public Finances – Impact 6th State Reform
V. Consolidated Debt
VI. Flanders in a nutshell
7
Main Facts & Figures
Capital Brussels
Language Dutch
Surface 13 684 km²
Population 6 477 804 (1/1/2016)
Density 482 hab./km² (2015)
Currency Euro
N° of Companies 500,700 (subject to VAT)
Nominal GDP (PPS) EUR 216 bn (2015)
GDP/Capita (PPS) EUR 34 200 (2015)
Real GDP growth rate 1.6% (2015)
Unemployment rate 5.2% (2015)
PPS = purchasing power standards
Key Data
8
Main Facts & Figures High GDP per Capita (2015)
Source: Study Office of the Flemish Government
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
Flanders EU-28 Belgium Germany France Netherlands United Kingdom
9
Main Facts & Figures Strong Economic Fundamentals
Flanders benefits from very strong economic fundamentals.
Flanders France Germany Netherlands EU - 28
Unemployment Rate (2015) 5.2% 10.4% 4.6% 6.9% 9.4%
Real GDP Growth Rate (average
2011 – 2015) 1.3% 0.8% 1.5% 0.6% 1.0%
Source: Eurostat - Labour Force Survey, Study Office of the Governement of Flanders
• In 2015 the real GDP growth was 1.6% in Flanders which was much higher compared to the
other regions (Walloon Region 1.1% and Brussels Region 0.9%)
10
I. Flanders Part of the Federal State Belgium
II. Main Facts & Figures
III. Key Strengths
IV. Public Finances – Impact 6th State Reform
V. Consolidated Debt
VI. Flanders in a nutshell
11
Key Strengths Located in the Heart of Europe
Flanders lies at the center of the EU’s
wealthiest and most populated area;
Highly developed transport and
communications systems so that
companies can take full advantage of this
fact;
Strong stimulus for companies to locate
in Flanders – central location;
Source: Healey & Baker study
12
Key Strengths A Unique European Hub
Flanders offers companies rapid and efficient supply
and distribution links with other major European
centers and beyond.
Leading ports Antwerp, Ghent, Ostend, Zeebrugge
Airport freight & logistic hubs
Brussels, Ostend
Extensive inland waterway system
Linking into the European system
High density of freeways Connecting directly to other European countries
High density rail network Dedicated freight lines to other parts of Europe
Source: Healey & Baker study
13
Key Strengths An Economy based on Trade and Services (2014)
Real Estate and Business Services 23.2% Wholesale and Retail 13.9% Transport 6.6% Health Services 4.8% Other 24.5%
Construction 6.5% Chemicals 3.0% Iron, Metal & Steel 2.1% Food & Tobacco 2.6% Other 12%
Source: Institute of National Accounts
Primary sector 1%
Secondary sector 26%
Tertiary sector 73%
Flemish GDP – Sector contribution
14
Key Strengths Strong Export-Driven Economy
The Flemish economy is strongly export oriented: Flanders’ exports represent 83.1% of Belgium’s
total export in volume;
Flemish exports remained fairly stable over time;
The region’s most successful export products are chemicals, minerals, vehicles, machines and
equipments, pharmaceuticals.
Source: Institute for the National Accounts
2.3%
83.1%
14.6%
Regional Distribution of Belgian exports (%) (2015)
Brussels
Flanders
Wallonie
0
50
100
150
200
250
300
350
2008 2009 2010 2011 2012 2013 2014 2015
Flemish Exports (EUR billion)
15
Key Strengths Diversified Base of Trading Partners
The EU28 is the most important Flemish export market and the 3 neighbouring countries (Germany, France
and the Netherlands) are Flanders main trading partners. Also emerging economies like India and China are
steadily becoming more important for Flemish exports.
Source: Institute of National Accounts
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
Germany France Netherlands UnitedKingdom
UnitedStates
Italy India Spain China Poland
Top 10 of Flemish Export Markets in 2015 (as % of total)
Key Strengths
16
Foreign Direct Investment Figures & Trade Partnerships
Top 10 biggest investors (in 2015)
1 USA
2 Netherlands
3 United Kingdom
4 Germany
5 China
6 France
7 Japan
8 Switzerland
9 Sweden
10 India
Flanders has a proven track record of welcoming foreign
businesses to its region.
Life Sciences Johnson & Johnson, Pfizer,
Schering-Plough, AstraZeneca, ...
Automotive Volvo
ICT Alcatel Lucent, British Telecom,
Philips, ST Microelectronics, ...
Chemicals BASF, Total, Suez-GDF, Bayer,
Kaneka, Nippon Shokubai, ...
Food Products Heinz, Procter & Gamble,
Tropicana, ...
Logistics Caterpillar Logistics, Deutsche
Post, NYK, ...
Source: Flanders Investment and Trade Office
17
Key Strengths Low Unemployment Rate
Source: Statistics Belgium EAK, Eurostat, Labour Force Survey
10.7
4.4 4.0 3.9
5.2
13.5
12.0 12.2
17.5
10.8 9.9
0
5
10
15
20
25
19
83
19
84
19
85
19
86
19
87
19
88
19
89
19
90
19
91
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
(%)
Flemish Region Walloon Region Brussels Capitol Region EU-15
18
Key Strengths R&D budget evolution (in million euro)
Source: Department of Economy, Science and Innovation
0
500
1000
1500
2000
2500
Research and Development (R&D) Education and Training (E&T) Scientific and Technological Services (STS)
19
I. Flanders Part of the Federal State Belgium
II. Main Facts & Figures
III. Key Strengths
IV. Public Finances – Impact 6th State Reform
V. Consolidated Debt
VI. Flanders in a nutshell
20
Public Finances – Impact 6th State Reform Impacts in a Nutshell
• October 2011: Sixth state reform is transferring more competences towards the Communities and Regions (effective as from July 2014)
• New area of competences for the Flemish Community such as Labour market, health care,
family allowances, justice, mobilty… • Impact for Flanders:
• Possibility to define own rules and replace Federal regulation • More homogenous competences more efficient policy • Increase in financial means Transfer of competences = transfer of revenues (in
2015, approx. 9.7bn EUR) • Competence to levy surtax on Personal income tax financial autonomy raised to
34% (previously 20%)
• The sub-regions contribute to the recovery of public finances at general government level. For Flanders this contribution until 2016 amounts to over 1.5 billion euro (759 million euro in the 2015 budget and 1547 million euro from 2016 onwards).
21
Public Finances – Impact 6th State Reform Revenues by Segment
Large increase in revenues in 2015 due to the 6th State Reform; Increase in revenues mainly coming from additional personal income tax charge
0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
45,000,000
2014 ACT 2015 ACT 2016 BA
Institutions within scope of consolidation Lottery funds Own non-tax non-allocated income Own non-tax allocated income
Regional taxes Specific allocations SFA Regional and Community resources SFA Gross additional personal income tax charge
22
Public Finances – Impact 6th State Reform
Increase in tax autonomy due to the 6th State reform. In 2016 Flanders is collecting a larger part of its resources (nearly 34%) via own fiscal instruments: regional taxes (15%), and the additional personal income tax charge, the so-called 'surcharges' (19%);
Revenues by Segment
0%
70%
20%
4% 6%
2014 ACTUALS
Surcharges
Combined and shared taxes
Regional taxes
Rest
Institutions within scope ofconsolidation
19%
58%
16%
2% 5%
2016 Budget review
Surcharges
Combined and shared taxes
Regional taxes
Rest
Institutions within scope ofconsolidation
23
Public Finances – Impact 6th State Reform Breakdown of Public Spending
Also in the expenditures we see a large increase, as a result of the Sixth State Reform, in the budget adjustment 2016 (2016 BA) compared to the realizations 2014 (ACT).
The largest increases are situated in Welfare, Public Health and Family and in Employment and Social Economy.
0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000
Culture, Youth, Sport and Media
Economy, Science and Innovation
Other
Finance and Budget
Mobility and Public Works
Chancellery and Administration
Employment and Social Economy
Welfare, Public Health and Family
Education and Training
2016 BA 2014 ACTIn keuro
24
Public Finances – Impact 6th State Reform
The Sixth State Reform not only increased significantly in absolute terms the expenditures of the Flemish Community, but also changed the proportion of the different policy areas in the expenditure budget.
Breakdown of Public Spending
28%
27% 9%
8%
8%
7%
4% 3% 3% 3%
Breakdown of the expenditures 2016 BA Education and training
Welfare, public health and family
Work, professional training and social economy
Chancellory and general government (incl.transfers to local authorities)
Mobility and public works
Finance and budget
Economic development, science and innovation
Culture, sport, youth, media
Environment, nature, energy
other
25
Public Finances – Impact 6th State Reform Realisations
Budgetary targets and results (in mio euro)
26
Public Finances – Impact 6th State Reform Forecasts Budgets
• In 2016, the deficit for Flanders reached EUR 370 million
• Flemish government fully focused on a sound budgetary policy for the coming years
• Additional budget for investment in infrastructure (Oosterweel)
• 2017: political discussions ongoing
27
I. Flanders Part of the Federal State Belgium
II. Main Facts & Figures
III. Key Strengths
IV. Public Finances – Impact 6th State Reform
V. Consolidated Debt
VI. Flanders in a nutshell
28
Consolidated Debt Overview of the Strategy
• Diversified financing strategy: Combination of banking and non-banking financing tools; • Large and diversified access to short term liquidity: Belgian Commercial Paper programme combined
with a short term credit line of EUR 3.25bn; • Conservative Risk management:
• Conservative interest rate risk management : indexation linked to fixed rates or simple floating rates in the Euro zone (Euribor…); distribution fixed rate / floating rate adjusted depending on the long term economic trends; 82% of the outstanding debt at fixed rate as of 31/12/2015
• Complete hedging of currency risk: no currency risk incurred by the Flemish Community; • Systematic hedging at the issuance via swaps in EUR; • Conservative approach on derivatives: No structured products;
• Issuance of bonds as main medium and long term financing tool: Flanders is a recognized issuer in the
capital markets. Purpose is to build a reference benchmark curve;
• Diversification of the investor base;
29
Consolidated Debt Consolidated Debt position
The last years the National Accounts Institute (NAI) reclassified a large number of public entities as a consequence of the new rules of ESA2010. The incorporation of the social housing companies (VMSW and VWF) in 2014 was the most important factor in the increase of the consolidated debt. The most of these debts were previously reported as guaranteed debt.
in mio EUR 2014 2015
Direct debt 4.614,14 4.106,94
VMSW (social housing) 5.968,84 6.313,15
VWF (social housing) 3.041,30 3.005,41
EKM's (social housing) 729,55 596,90
VIPA (infrastructure hospitals and rest homes) 2.130,45 1.846,55
PPP debt 711,33 1.097,76
Rest 1.717,79 1.914,48
TOTAL 18.813,40 18.881,20
30
Consolidated Debt Direct Debt position
By the end of 2015 almost 78% of direct debt was financed with the EMTN programme.
At the end of 2015 there were also a positive current account and short term investments outstanding for 1.5 billion euro.
in Mio EUR 31/12/2012 31/12/2013 31/12/2014 31/12/2015
EMTN 4.670,00 3.620,00 2.370,00 3.201,50
Private loans 115,00 115,00 115,00
Bank loans 223,45 220,83 218,21 150,44
BCP 363,41 755,00
Current account 1.049,30 428,28 1.910,92
TOTAL 6.421,16 4.384,11 4.614,14 4.106,94 77.95%
3.66%
18.38%
Direct debt instruments 2015
EMTN
Private loans
Bank loans
BCP
Current account
82% Fixed 18% Floating
Average duration (end 2015): 4 years and 8 months
31
Consolidated Debt Bond Financings
In 2015, the Flemish Community tapped the Capital Markets for the first time since 2012
Change in way of financing due to consolidation
Mainly for financing of Social housing and VIPA (infrastructure of hospitals and rest homes)
Private placements on EMTN program (new issues and taps)
Maturities between 7 years and 30 years
Issuer ISSUE DATE MATURITY DATE MATURITY AMOUNT (in EUR) COUPON (%)
1 FLEMISH COMMUNITY 10/03/2010 10/03/2020 10 30,000,000 3.650
2 FLEMISH COMMUNITY 18/08/2010 18/08/2020 10 140,000,000 3.116
3 FLEMISH COMMUNITY 20/03/2012 31/01/2018 6 750,000,000 3.000
4 FLEMISH COMMUNITY 12/06/2015 12/06/2025 10 626,500,000 1.341
5 FLEMISH COMMUNITY 12/06/2015 12/06/2035 20 180,000,000 1.887
6 FLEMISH COMMUNITY 03/07/2015 03/07/2045 30 35,000,000 2.317
7 FLEMISH COMMUNITY 03/07/2015 03/07/2022 7 133,500,000 0.854
8 FLEMISH COMMUNITY 20/11/2015 20/11/2030 15 56,500,000 1.707
32
Consolidated Debt Financing needs 2016 - 2018
Benchmark issues under EMTN: 750 mio – 1,250 mio 7 y – 15 y (or longer)
Private placements EMTN or Schuldschein 5 y – 30 y
Commercial Paper Current account
Repayment of KBC at the end of 2015
in Mio EUR 2016 2017 2018
VMSW 1,047.07 1,340.00 1,076.14
VWF 270.00 350.00 300.00
VIPA 36.20 135.44
PPP Schools 663.97 432.71 130.37
BAM 681.90
TOTAL 2,017.23 2,258.15 2,188.41
Debt redemptions 1,302.43 2.65 752.65
33
Debt Redemption Schedule
Consolidated Debt
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
EMTN Private loans Bank loans
In t
ho
usa
nd
eu
ro
34
Consolidated Debt Financial instruments
EMTN (updated 5th September 2016)
Flanders has a EUR10 bn EMTN programme, with public issues and/or a series of private
placements
Currently only fixed interest issues
Programme allows flexibility on rates, currencies, redemptions, etc…
Currently outstanding: EUR 3,201.5 mln
Arranger: ING
Dealers: ING, BNP Paribas Fortis, KBC, Belfius, HSBC, Société Générale, LBBW
ECB-eligible
PSPP eligible
Commercial Paper
Flanders has a EUR 1.5 bn BCP-programme
Arranger: KBC
Dealers: KBC, Belfius
Currently outstanding: EUR1,138 mln
STEP-compliant
Cashier : ING creditline of EUR 3.25 bn
35
I. Flanders Part of the Federal State Belgium
II. Main Facts & Figures
III. Key Strengths
IV. Public Finances – Impact 6th State Reform
V. Consolidated Debt
VI. Flanders in a nutshell
36
Flanders in a nutshell Credit rating
Long term credit rating • Moody’s: Aa2 stable (Belgium: Aa3 stable) Short term credit rating • Moody’s: P-1
ISSUER MOODY'S FITCH STANDARD & POORS
FLEMISH COMMUNITY Aa2 Stable
BELGIUM FEDERAL STATE Aa3 Stable AA Neg AA Stable
FRENCH COMMUNITY OF BELGIUM Aa3 Stable
WALLOON REGION A1 Neg
BRUSSELS CAPITAL REGION AA Stable
37
Flanders in a nutshell Key Points and Major Strengths
A wealthy, diversified and strong economy, with one of highest European GDP per capita combined with low and stable unemployment rate. Flanders is considered as Belgian economic engine;
Strong track record of Budgetary discipline and continued commitment to fiscal consolidation;
Strong credit rating of Aa2 Stable by Moody’s; above the rating of the Belgian federal state;
Very strong & prudent Financial management with greater use of direct debt and sufficient liquidity;
Light debt burden relative to revenues and increased fiscal power through Sixth state Reform (increased fiscal basis);
Moderate direct debt levels
38
Appendix –
Flemish export sector with regard to UK: overview
(source: G Gielens – Belfius Chief Economist)
38
39
Export market for Flanders: trade in goods
Source: NBB, national concept
Total value in Bn euro exports 2015 imports 2015
World 186,11 197,08
UK 15,08 11,83
Share of trade with UK
8,1% 6,0%
The “national” concept as calculated by the NBB has been used. The more frequently used concept used by the Eurostat and the international institutions, but also Vlastat and FIT, contains also flows in which Belgian corporations are not involved.
For a small country with many ports this leads to an important overstatement of the actual trade flows. Therefore we report on the national concept to focus on the flows where Belgian corporations have been involved. This permits better to assess impacts on value added and employment.
40
Export market for Flanders: trade in goods
Export Products ranked by value
product value share cumulative share
Vehicles, aircraft, vessels and associated transport equipment 3,46 23,0% 23,0%
Products of the chemical or allied industries 1,54 10,2% 33,2%
Machinery and mechanical appliances; electrical equipment; parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles 1,39 9,2% 42,4%
Plastics and articles thereof; rubber and articles thereof 1,37 9,1% 51,5%
Mineral products 1,29 8,6% 60,0%
Prepared foodstuffs; beverages, spirits and vinegar; tobacco and manufactured tobacco substitutes 1,27 8,4% 68,5%
Base metals and articles of base metal 1,01 6,7% 75,1%
41
Value added in exports: goods
Source: OECD, Belfius
1% 0%
29%
3%
2% 59%
6%
value added split acc. sector: Belgium
Agriculture, hunting, forestry andfishing
Mining and quarrying
Total Manufactures
Electricity, gas and water supply
Construction
Total Business Sector Services
value added in Flemish exports of goods 2011
value added embedded in final UK demand
2,265 bn euro
share in Flemish GDP 1,04%
42
Appendix –
Regional Statistics
42
43
Regional forecasts (Federal planbureau – june 2016)
Growth rate Average
2014 2015 2016 2017 2018-2021 2001-2007 2008-2014 2015-2021
Belgium 1,3 1,4 1,2 1,5 1,5 2,1 0,6 1,5
Brussels region 1,0 0,9 0,8 1,4 1,4 1,8 0,1 1,2
Flemish region 1,5 1,6 1,4 1,7 1,6 2,3 0,9 1,6
Walloon region 1,3 1,1 1,1 1,3 1,4 2,0 0,5 1,3
Sectoral evolution Average yearly growth
1996 2006 2014 2021 1996-2007 2008-2014 2015-2021
1. Agriculture 1,8 1,3 0,9 0,5 2,8 -1,5 1,2
2. Energy 4,1 2,9 2,9 2,6 1,5 5,5 1,1
3. Manufacturing 24,8 20,0 16,5 15,6 2,8 -0,3 1,2
4. Construction 5,8 6,0 6,5 6,1 3,2 1,6 1,7
5. Services 51,9 58,4 61,2 63,6 2,8 1,2 1,9
6. None market services 11,7 11,4 12,0 11,5 0,8 0,3 0,4
7. Total 100,0 100,0 100,0 100,0 2,6 1,0 1,6
Employment rate Average
2014 2015 2016 2017 2018-2021 2001-2007 2008-2014 2015-2021
Belgium 67,3 67,2 67,5 67,7 70,0 65,9 67,4 68,3
Brussels region 58,7 58,7 58,9 58,7 59,8 58,6 58,7 58,9
Flemish region 71,9 71,9 72,3 72,6 75,3 69,8 71,9 73,3
Walloon region 61,8 61,5 61,8 62,0 64,0 61,1 62,2 62,5
44
An increase in the level of education
31.7
21.1
51.1
54.6
17.2
24.3
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
30-34-year-olds in 2002
30-34-year-olds in 2012
Graduating age <20 years old Graduating age 20-24 years old Graduating age >24 years old
45
Evolution of employment rate
80.5
75.6
40.3
68.2 60.5
71.9
52.8
65.0
30
40
50
60
70
80
90
(%)
Men Women Total EU-15 - Women
46
Evolution of employment rate (25 – 65 y) according to education level
49.8
51.0
76.4 76.6
86.8 87.1
64.7
0
45
50
55
60
65
70
75
80
85
90
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
(%)
Lower Secondary Education Upper Secondary Education Tertiary Education Total
47
Evolution of employment rate by age category (Flanders – Sweden – EU 15)
55.4
84.6
77.0
34.5
11.2
47.7
82.1
86.4
64.9
23.4
0
10
20
30
40
50
60
70
80
90
1002
0-2
4
25
-29
30
-34
35
-39
40
-44
45
-49
50
-54
55
-59
60
-64
20
-24
25
-29
30
-34
35
-39
40
-44
45
-49
50
-54
55
-59
60
-64
1995 2013
(%)
Flemish Region EU-15 Sweden
48
Contacts
Koen Algoed
Secretary – general
Flemish Community, Department of Finance and Budget
+32 493 31 63 02
Hugues Mommens
Senior advisor, head of financial operations
Flemish Community, Department of Finance and Budget
+32 493 51 22 29
Luc Keereman
Senior advisor
Flemish Community, Department of Finance and Budget
+32 493 31 63 07
Kristien Hantson
Advisor
Flemish Community, Department of Finance and Budget
+32 493 31 63 08
For more information please also consult:
http://www.financeflanders.be
49
Disclaimer
This presentation has been prepared by Flanders for informational purposes only. Although the information in this presentation has been obtained from sources which Flanders believes to be reliable, we do not represent or warrant its accuracy, and such information may be incomplete or condensed. This presentation report is not intended to provide the sole basis for any evaluation of the transactions discussed herein. All estimates and opinions included in this presentation constitute our judgment as of the date of the presentation and may be subject to change without notice. Changes to assumptions may have a material impact on any recommendations made herein. Flanders will not accept any liability whatsoever for any loss howsoever arising, directly or indirectly, from the use of this presentation or the information provided for in this presentation or otherwise arising in connection with this presentation. This presentation is confidential and is provided to you for information purposes only and does not constitute a public offering or an investment service in Belgium. This presentation is being submitted to selected recipients only and neither this presentation nor any other offering materials may be distributed, published or made available to the public in Belgium. This presentation may not be reproduced or passed on (in whole or in part) to any other person than the selected recipients. Neither this presentation nor any offering materials may be used in relation to any investment service in Belgium unless all conditions of directive 2004/39/EC, as implemented in Belgium, are satisfied. Neither this document nor any offering materials can be used to publicly solicit, provide advice or information to, or otherwise provoke requests from, the public in Belgium in relation to the offering. Any offering in Belgium is made exclusively on a private basis in accordance with article 3 of the Belgian law of 16 June 2006 on the public offering of investment instruments and the admission of investment instruments to the trading on a regulated market. © September 2016 Flanders. All rights reserved.