1

Welcome

DSTA Presentation Outlook 20182

ABN Amro Bank Barclays Citigroup

Commerzbank Deutsche Bank Goldman Sachs

HSBC France ING Bank Jefferies

Natixis NatWest Markets Nomura

Nordea Rabobank Société Générale

15 Primary Dealers, Single Market Specialists and CP Dealers

Today’s programme

DSTA Presentation Outlook 20183

15.00 hrs Welcome by Martin Heerma

15.05 hrsKeynote speaker: Willem Buiter (Citi)Outlook for Europe’s economy and financial markets

15.50 hrsLooking back on funding 2017 and Primary Dealer AwardsEmile Spijkerman, DSTA

16.10 hrsFunding and issuance in 2018Martin Heerma, DSTA

16.30 hrs Drinks & Bites

The Hague15 December 2017

Overview of this presentation

DSTA Presentation Outlook 20185

• The economy and the budget

• Looking back on funding 2017

• DSTA Awards

• Funding plan 2018

• Q&A

Photo theme Outlook 2018

DSTA Presentation Outlook 20186

DSTA Presentation Outlook 2018 7

The economy andthe budget

Solid economic growth across the board

DSTA Presentation Outlook 20188

Source: CPB, 19 September 2017

-1

0

1

2

3

4

2014 2015 2016 2017 2018

Household consumption Investments in housing

Business investments Government consumption

Exports GDP growth

Labour market tightens

DSTA Presentation Outlook 20189

0

1

2

3

0

2

4

6

8

10

2012 Q1 2013 Q1 2014 Q1 2015 Q1 2016 Q1 2017 Q1

unemployment rate, lhs (% labour force, seasonally adjusted)

Job vacancies rate, rhs (%labour force, seasonally adjusted)

Source: Statistics Netherlands, 28 November 2017

Budget surpluses and falling debt levels

DSTA Presentation Outlook 201810

Source: CPB, 27 October 2017

-8%

-7%

-6%

-5%

-4%

-3%

-2%

-1%

0%

1%

2%

44%

46%

48%

50%

52%

54%

56%

58%

60%

62%

64%

66%

68%

70%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

EMU-debt (% GDP; LHS) EMU-balance (% GDP; RHS)

DSTA Presentation Outlook 2018 11

Looking back on funding 2017

Lower funding need than anticipated

DSTA Presentation Outlook 201812

30 - 35

32.5

24.4 - 29.4

18.6

0

5

10

15

20

25

30

35

40

Capital market Money market

€ bn

Money market changes explained

DSTA Presentation Outlook 201813

0

5

10

15

20

25

30

Outlook 2017 Cash effects

2016 + 2017

Sale of state

owned

enterprises

Change in

cash collateral

Buy-back of

DSLs

Latest update

Stock and flow of money market in 2017 (€ bn)

DSTA Presentation Outlook 2018 14

DSTA Awards

Global Commercial Paper programme

DSTA Presentation Outlook 201815

GCP volumes outstanding in 2017 (€ bn)

0

2

4

6

8

10

12

14

16

Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17

ECP USCP

DSTA Awards

Top 3 Global Commercial Paper

DSTA Presentation Outlook 201816

1. Rabobank

2. ING Bank

3. Barclays

Dutch Treasury Certificates

DSTA Presentation Outlook 201817

DTC volumes outstanding in 2017 (€ bn)

0

5

10

15

20

25

Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17

DSTA Awards

Top 3 DTC

DSTA Presentation Outlook 201818

1. ING Bank

2. Nordea

3. ABN Amro Bank

Dutch State Loans

DSTA Presentation Outlook 201819

Cumulative DSL issuance in 2017 by maturity (€ bn)

0

5

10

15

20

25

30

35

Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec

2022 2024 2027 off-the-run

DSTA Awards

Top 3 DSL

DSTA Presentation Outlook 201820

1. Jefferies

2. ABN Amro Bank

3. Nordea

DSTA Presentation Outlook 2018 21

Funding plan 2018

Borrowing requirement 2018

DSTA Presentation Outlook 201822

Borrowing requirement (€ bn)

Capital market redemptions 2018 38.5

Money market ulimo 2017 18.6

Cash balance (- = surplus) -3.6

Total funding need 2018 53.5

Update on 3 January 2018 by press release

Dealing with a persistently lower funding need

DSTA Presentation Outlook 201823

• Capital market is cornerstone

• Money market is primarybuffer

• Every year issuance of 10 yearDSL

• Commitment to both shorterand longer end of the curve

• Ensuring liquiditySource: CPB and internal calculations

30

35

40

45

50

55

60

65

70

0

20

40

60

80

100

120

140

EMU debt (% GDP; right) Total funding (€ bn; left)

Funding 2018: distribution between CM and MM

DSTA Presentation Outlook 201824

Funding (€ bn)

Capital market 23 - 29

Money market ultimo 2018 24.5 – 30.5

Total funding need 2018 53.5

Capital market issuance in 2018

DSTA Presentation Outlook 201825

DSLIndicative amount

(€ bn)

New DSL 2028 (DDA) 12 - 15

Reopening DSL 2024 9

Longer dated issuance* 2 - 5

Total DSL funding 23 - 29

* This could be the reopening of longer-dated off-the-run bonds or a new longer dated bond. This will be decided in the course of the year.

Issuance calendars Q1 2018

DSTA Presentation Outlook 201826

Auction date Details Target volume (€ bn)

9 January Reopening 0% DSL 15 January 2024 1.5 - 2.5

February/March* DDA: new 10-year bond: DSL To be announced

Auction date Settlement date 3-month programme 6-month programme

8 January 10 January 29 June 2018

15 January 17 January 29 March 2018 29 June 2018

5 February 7 February 31 July 2018

19 February 21 February 30 April 2018 31 July 2018

5 March 7 March 31 August 2018

19 March 21 March 31 May 2018 31 August 2018

DSTA Presentation Outlook 2018 27

Questions?

28

Please join us for drinks and bites!