Banco Votorantim S.A. Earnings Presentation 1 st Half, 2011 - PowerPoint PPT Presentation

Banco Votorantim S.A. Earnings Presentation 1 st Half, 2011

Disclaimer “Certain statements made in this presentation may not be based on historical information or facts. This presentation therefore contains, or may be deemed to contain, “forward looking statements” (within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended), including those relating to the general business plans and strategy, future financial condition and results and growth prospects of Banco Votorantim S.A. (“ Banco Votorantim ” or the “Company”), and future developments in its industry and its competitive and regulatory environment. By their nature, forward ‐ looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future and are based on assumptions, data or methods which, although considered reasonable by the company at the time, may turn out to be incorrect or imprecise, or may not be possible to realize. Accordingly, actual results may differ materially from these forward ‐ looking statements due to a number of factors, including future changes or developments in the Company’s business, its competitive environment, technology developments and political, economic, legal and social conditions in Brazil. Forward looking information is not merely based on historical fact but also reflects management’s objectives and expectations. The Company can give no assurance that expectations disclosed in this presentation will be confirmed. The words “estimate”, “believe”, "anticipate", “wish", "expect", “foresee", “intend", "plan“, "predict", “forecast", “aim" and similar words, written and/or spoken, are intended to identify affirmations which, necessarily, involve known and unknown risks. Known risks include uncertainties which include, but are not limited to, interest rates, product competition, market acceptance of products, the actions of competitors, regulatory approval, currency type and fluctuations, monetary policy, among others. This presentation is based on events up to June 30 th , 2011. The Company or any of its affiliates take no responsibility or liability to update the contents of this presentation in the light of new information and/or future events. Banco Votorantim and/or any of its affiliates do not accept and take no responsibility, whatsoever, direct or indirect, for transactions or investment decisions made on the basis of information contained in this presentation. Banco Votorantim may alter, modify or otherwise change in any manner the contents of this presentation, without the obligation to notify any person of such revision or changes. This presentation does not constitute an offer, or invitation, or solicitation of an offer, to subscribe for or purchase any securities. Neither this presentation nor anything contained herein shall form the basis of any contract or commitment whatsoever. Recipients of this presentation are not to construe the contents of this summary as legal, tax or investment advice and recipients should consult their own advisors in this regard. The market and competitive position data, including market forecasts, used throughout this presentation were obtained from internal surveys, market research, publicly available information and industry publications. Although the Company has no reason to believe that any of this information or these reports are inaccurate in any material respect, the Company has not independently verified the competitive position, market share, market size, market growth or other data provided by third parties or by industry or other publications and therefore does not make any representation as to the accuracy of such information. This presentation and its contents are proprietary information and may not be reproduced or otherwise disseminated in whole or in part without the Company’s prior written consent." 1

Agenda Brazilian Macroeconomic Environment Banco Votorantim Overview Strategy and Business Segments Financial Highlights 2

Brazilian macroeconomic environment Brazil has shown a strong performance… Brazilian macroeconomic highlights Gross domestic product – GDP (R$ Trillion) Net public debt (% of GDP) 3.67 51% 48% 47% 46% 3.19 43% 3.03 40% 39% 2.66 2.37 2.15 1.94 2004 2005 2006 2007 2008 2009 2010 2004 2005 2006 2007 2008 2009 2010 Real GDP growth (% p.a.) New light vehicle sales (Million units) 4 th largest market in 2010 7.5% 3.33 6.1% 3.01 5.2% 2.67 4.0% 4.0% 4.0% 3.2% 2.34 1.83 1.62 1.48 -0.6% 2005 2006 2007 2008 2009 2010 2011E¹ 2012E¹ 2004 2005 2006 2007 2008 2009 2010 1. BV Economy department as of July 2011; 2. The ratio “used cars/new cars” is ~2.5/ 1; and about 55% -60% of all cars sold in Brazil are financed Source: Brazilian Central Bank; Ipeadata; Anfavea; Fenabrave; ANEF; Banco Votorantim 3

Brazilian macroeconomic environment …with solid macroeconomic fundamentals Brazilian macroeconomic highlights Price index – IPCA (% pa.) Interest rate – benchmark Selic¹ (% p.a.) 7.6% 18.00 17.75 6.2% 5.9% 5.9% 13.75 5.7% 13.25 12.75 11.25 10.75 4.5% 4.3% 8.75 3.1% 2004 2005 2006 2007 2008 2009 2010 2011E 2004 2005 2006 2007 2008 2009 2010 2011E International reserves (US$ Billion) Unemployment index² (%) 350 11.5 10.0 9.9 289 9.3 239 8.1 7.9 207 6.7 6.4 180 86 53 54 2004 2005 2006 2007 2008 2009 2010 2011E 2004 2005 2006 2007 2008 2009 2010 2011E 1. Selic = Brazilian Central Bank’s overnight lending rate (target) - End-of-period; 2. As a % of the economic active population in metropolitan areas (average) Note: estimates from BV Economy department as of July 2011, except for the unemployment index (Tendências Consultoria, as of July 2011) Source: Brazilian Central Bank; Ipeadata; IBGE; Banco Votorantim 4

Brazilian financial system Strong financial sector, with considerable room for expansion Credit availability (Loans as % of GDP 1 ) Growing middle class (% of population) 131% 7.4% 10.8% Classes A-B 38.7% 75% 53.3% Class C (Middle) 56% 18.4% 46% 43% 26% 18.7% Class D 24% 17% 35.5% Class E 17.2% China Chile India Brazil Russia Colom Peru Mexico Jan/04 May/11 bia Credit penetration in Brazil (% of GDP) Young, compelling demographic dynamics 3 90% 46% 44% 41% 80% 35% Demographic 31% bonus 28% 70% 26% 60% 50% 40% 2004 2005 2006 2007 2008 2009 2010 1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050 Dependency Ratio³ Economic Active Population 1. As of December, 2009 (Fitch); except for Brazil (2010); 2. Dependency ratio measures the % of dependent people (people at not working age) / (people at working age) Note: Monthly income by social class: E = up to R$701; D = R$701 to R$1.160; C = R$ 1.160 to R$4.638; B = R$4.638 to R$7.011; A = above R$7.011 Source: Brazilian Central Bank; Banco Votorantim 5

Agenda Brazilian Macroeconomic Environment Banco Votorantim Overview Strategy and Business Segments Financial Highlights 6

Banco Votorantim overview Banco Votorantim is one of the leading players in Brazil… 7 th largest bank with a diversified multi-niche portfolio Banco Votorantim is the 7th largest bank in ... with a diversified portfolio Brazil by total assets … of attractive businesses 7th largest bank in Brazil by total assets¹ • Founded in 1988 • Total assets of R$ 119.2B • ~ 7,000 employees (~5,3k in Consumer Finance ) Wholesale Banking • ~ 5.9M customers in Consumer Finance arm • Corporate Banco • Investment Banking Votorantim Multi-niche strategy • Middle Market Low fixed cost business model • Third-party distribution • Auto Finance: #2 player² BV Financeira • Highly variable compensation • Payroll Loans and BV Leasing • Personal Loans (Consumer Finance) Robust governance structure and conservative • Credit Cards financial policies Votorantim • Private Bank Culture of excellence, cooperation, agility and Wealth • Asset Management: “Top 10” efficiency Management Recognized by the market • Full Service Brokerage House • Credibility, credit quality and innovation Votorantim • Broker Dealer in New York • “Best place to work” Brokerage • Rep office in London 1. Excluding BNDES; 2. In terms of origination Source: Banco Votorantim; Brazilian Central Bank 7