Sociedade Lusa de Negócios Group structure: • Ownership Structure: The BPN Group is 100%-owned by SLN –Sociedade Lusa de Negócios -SGPS, S.A., the Group’s holding company. SLN is owned, directly and/or indirectly, by approximately 500 shareholders, with no single shareholder owning more than 6.5% of the capital. The majority of SLN’s shareholders are medium-size companies and individuals residing in Portugal. • Sociedade Lusa de Negócios -SLN was created in 1999 to be the holding structure of the whole group and to allow a clear and complete separation between financial and non-financial activities. Sociedade Lusa de Negócios SLN is one of the largest conglomerates in Portugal, the financial sector being the most relevant. BANCO PORTUGUÊS DE NEGÓCIOS BPN 1993 1998 2002 2004 2006 Merger of Soserfin and Norcrédito New Shareholders Structure Acquisition of Banco Efisa (Investment Bank) 193 Branches 205 Branches Private and Investment Bank – Financial and advisory services to corporates Change of Strategy – Beginning of the existing retail network – Universal Bank Expansion of the retail network Coverage of the main business regions in Portugal – Change in the strategy focus Increase the client base and crossselling BANCO PORTUGUÊS DE NEGÓCIOS BPN Network North Branches Employees 2005 203 1.777 2006 205 2.193 116 branches BPN is present in all the main business centres in Portugal International Presence Center/South 89 branches BPN Brasil BPN France (5 branches) BPN Cayman (Off-shore) BPN IFI – Cape Verde (Offshore) BANCO PORTUGUÊS DE NEGÓCIOS • Created in 1993 • Currently - 205 branches in Portugal and 5 in France Activities Areas: • Investment Funds • Savings Account • Personal Credit • Corporate Credit • Financial Advisory • Credit Cards thousand € Net Result Net Assets ROAE dec/2005 42.899 5.361.832 15,06% dec/2006 65.096 7.226.077 19,02% BANCO PORTUGUÊS DE NEGÓCIOS Baa1 “Moody's ratings reflect the bank's niche franchise in SME banking in Portugal, as well as its good funding profile and stable profitability (…) still strong net interest margin as well as its good potential in diversification and from its credit card processing plans.“ “The BPN group has a nation wide coverage and focuses primarily on the SME market in Portugal – where it has seen strong growth in recent years –and it considers this and its good levels of service as advantages against its larger competitors.“ BANCO PORTUGUÊS DE NEGÓCIOS Banco Efisa was established in December 1994, having been acquired by BPN in 2002. The Bank has distinguished itself in the specialised areas of financial consultancy directed at Corporate and Project Finance for large-scale infrastructure developments, namely as advisor to the State, and in the raising of finance for international trade in niche segments. Banco Efisa maintains a strong presence in several areas, namely: Corporate Banking, Corporate Finance and Private Equity Ownership Structure Holding Company Financial Holding BPN S.A. BPN Part. Finan. SGPS 20% 80% Brazil BPN Part. BPN Brasil Banco Multiplo S.A. Banco Africano de Investimentos - BAI Banco Africano de Investimentos • First private Angolan bank, founded in November 1996. • Shareholders include: • Financial Highlights: thousand USD Net Result Net Assets ROE dec/2005 27.052 1.283.789 45% dec/2006 44.082 2.309.876 38% • In Oct / 2004, NOSSA – Nova Sociedade de Seguros de Angola was created through a partnership between BAI, BPN Group and IFC (International Finance Corporation). • Late in 2004, BAI entered into a joint venture together with Sonangol (Public Petroleum Company) and the Norwegian Government’s private equity group Norfund to establish the Angola Capital Partners. • Angolan Economy: • 17.6% GDP growth in 2006. • Open to international trade – exports represent 73%. • Acquisition date: 12/2002 • Multiple Bank focused in: Corporate Banking: Local Currency Loans, Banking Guarantees, Performance Bonds, Trade Finance (Pre Export, Import Financing, Pre-Payment, LCs, SBLCs), BNDES Financing. Investment Banking: Mergers & Acquisitions, Financial Advisory & Arrangement, Structured Finance, Capital Markets. Treasury: CDs, Governments and Private Securities, Foreign Exchange, Derivatives, Interbank Transactions. Business Network 115 agências no Norte BPN Brasil is present in the main Brazilian States through correspondent bankers. 88 agências no Centro/Sul Banco Africano de Investimentos - BAI Comfort Letter Banco Africano de Investimentos - BAI Balance Sheet Balance Sheets at September 2007 and 2006 (In thousands of Reais) ASSETS Current Assets and long term receivables Funds Available Interbank Investments Marketable Securities and derivative financial instruments Interbank Accounts Loans Operations Foreign Exchange Portfolio Other Loans Other Assets Permanent Assets 2007 297.980 1.476 59.538 3.228 292 148.186 75.455 7.183 2.622 2006 174.109 1.098 13.525 3.149 590 96.791 45.257 11.011 2.688 2.005 2.366 299.985 176.475 Total Assets LIABILITIES Current and long-term liabilities Deposits Interbank deposits Foreign borrowings Local onlending (BNDES/FINAME) Derivative financial instruments Foreign exchange portfolio Other liabilities Defered Income Stockholders' equity Capital Revenue reserves Retained earnings (accumulated deficit) Total liabilities and stockholders' equity 2007 248.293 55.018 1.061 123.612 20.027 2.825 33.994 11.756 487 51.205 50.000 498 707 299.985 2006 130.938 28.088 6 81.968 7.329 777 4.358 8.412 1.869 43.668 50.000 78 (6.410) 176.475 Statements of Operations at September 2007 and 2006 (In thousands of Reais) Income from financial operations Expenses on financial operations Gross profit on financial intermediation Income from services rendered Other operating expenses Operating result Non-operating result Result before taxation and profit sharing Income tax and social contribution Net profit (loss) 2007 43.472 (26.623) 16.849 5.430 (16.991) 5.288 5.288 (1.858) 3.430 2006 25.272 (21.726) 3.546 1.145 (15.161) (10.470) 313 (10.157) 2.960 (7.197) Functional Organization Chart Executive Committee President Carlos H. A. R. Catraio Luiz Stouthandel Operations Roberto Perez Jr. Hirosi Tanahara Rodrigo Del Barrio Joaquim Prado Rubens Prado Investment Banking Trade Finance Treasury Commercial Banking Credit and Risk • Financial Control • Structured Finance • Back Office • Financial Advisory (LCY and FCY) & Arrangement • Export / Import Finance • ECA / PROEX • CDs • Loans • Credit Risk • Governments and • Trade Services • Market Risk • Banking • Operational Risk Private Securities • Accounting • M&A • Foreign Exchange • Financial Institutions • Legal • Capital Markets (Legislation / • Foreign Exchange • BNDES Financing • Compliance Norms) • Derivatives • Performance Bonds • Human Resources • BNDES • Interbank • Collaterals • Outsource Transactions Guarantees • Correspondents • Loan Portfolio • Recovery Mgmt Relevant Transactions Contacts: Investment Banking Roberto Perez Jr. [email protected] (55 11) 3094-9005 Treasury Rodrigo Del Barrio [email protected] (55 11) 3094-9012 Trade Finance Hirosi Tanahara [email protected] (55 11) 3094-9045 Commercial Banking Joaquim Prado [email protected] (55 11) 3094-9008 Website www.bpnbrasil.com.br E-mail [email protected]