1.
BOND INVESTOR MEETINGS
Danske Bank & SEB MARCH 2013

2. Agenda – Bond Investor Meetings1
City of Gothenburg 2
Financial information 3
Funding strategy 4
Next bond issue 5
Q&A

3. Agenda – Bond Investor Meetings1
City of Gothenburg 2
Financial information 3
Funding strategy 4
Next bond issue 5
Q&A

4. City of Gothenburg Employees 48 000 Inhabitants 526 054
City of Gothenburg
Current status
Employees
Inhabitants
Turnover SEK 48,0 bn
Debt portfolio SEK 21,2 bn
Derivative portfolio SEK 23,7 bn
Aaa (2006) / AA+ (2007)
Key points
New funding Strategy
Regular communication (investor meetings/www)
Next bond issue

5. City of Gothenburg & Consolidated results
City of Gothenburg & Consolidated results

6. City of Gothenburg & Combined accounts
City of Gothenburg & Combined accounts
Source: Annual report 2011

7. Agenda – Bond Investor Meetings1
City of Gothenburg 2
Financial information 3
Funding strategy 4
Next bond issue 5
Q&A

8. Financial information
Annual Result
Annual Result
MSEK
MSEK
Meet the requirements made by the Local Government Act for good financial management

9. Financial information
Population
Taxes & net costs
Thousands
BN SEK
Growing population
Net expenses rose faster than revenue for the second consecutive year.

10. Financial information
Revenues
Investments
BN SEK
MSEK
Small changes in revenues

11. Agenda – Bond Investor Meetings1
City of Gothenburg 2
Financial information 3
Funding strategy 4
Next bond issue 5
Q&A

12. Funding strategy AA+ AA+ since 2007, stable outlook
Funding strategy
AA+
AA+ since 2007, stable outlook
Predictable and supportive institutional framework
Dynamic local economy with solid growth prospects
Very positive financial management
Sound budgetary flexibility due to a high share of modifiable revenues
Robust liquidity position
Increasing deficits after capital accounts, owing to higher investments.
Potential risks in an adverse scenario, given the very large, albeit mainly self-supporting, group of municipal companies.

13. Funding strategy AAA AAA since 2006, stable outlook
Funding strategy
AAA
AAA since 2006, stable outlook
Track record of balanced budgets
Rigorous budget controls
Solid financial position with a very low, though increasing net debt burden as the bulk of the city’s debt is related to what to date have been on aggregate self-supporting companies
Downside risks
A loosening of the prudent budget discipline, resulting in a large increase of expenditures, and negative operating margins in combination with a high level of debt-financed investments could put pressure on the rating.
Significant weakening of the importance of local government and consensus with the central government, regarding the delivery of public services, or a downgrade of the sovereign rating could place the rating under pressure.

14. Funding strategy Decided by City Council
Funding strategy
Financial Policy
Decided by City Council
Monthly reports to City Council
Subject to annual revision

15. Funding strategy EMTN EUR 3000m CP SEK 3000m ECP USD 200m
Funding strategy
Loan structure
EMTN EUR 3000m
CP SEK 3000m
ECP USD 200m
Credit Line SEK 300m
Bilateral loans SEK 7000m
EIB
Kommuninvest

16.
Funding strategy
Debt Portfolio SEK21.2bn

17. Funding strategy Nominal worth of SEK23.7bn
Funding strategy
Derivative Portfolio
Nominal worth of SEK23.7bn
Managed for hedging purposes
No speculative positions
Comprehensive EMIR-preparations

18. Funding strategy Tax financed debt Tax financed debt will increase
Funding strategy
Tax financed debt
SEKbn
Tax financed debt will increase

19. Funding strategy Group maturity structure
Funding strategy
Group maturity structure
SEKbn
New funding strategy will change maturity profile
External factors

20. Agenda – Bond Investor Meetings1
City of Gothenburg 2
Financial information 3
Funding strategy 4
Next bond issue 5
Q&A

21. Next bond issue Fewer bond issues
Next bond issue
Planned activities in 2013
Fewer bond issues
Three issues planned for 2013 (EMTN Docs)
Joint Lead mandates will be given
Bids will be taken in a standard book building process
We plan to issue benchmark size bonds
We will maintain an open dialogue with investors to foster good transparency into the transaction(s)

22. Next bond issue Timing and Involved Parties Scheduled for March 2013
Next bond issue
Timing and Involved Parties
Scheduled for March 2013
Danske Bank & SEB
EMTN documentation
Structure
Volume Benchmark size through book building
Currency SEK
Tenor 5Y
Coupon Fixed / FRN

23. Agenda – Bond Investor Meetings1
City of Gothenburg 2
Financial information 3
Funding strategy 4
Next bond issue 5
Q&A

24. Contact details http://finans.goteborg.se
Magnus Borelius Head of Treasury magnus.borelius*
Frida Svensson Portfolio Manager frida.svensson*
Danijel Afolter Portfolio Manager danijel.afolter*

25. Q&A