Institutional Presentation June 2010 Agenda Page 3 Brazilian - PowerPoint PPT Presentation

Institutional Presentation June 2010

Agenda Page 3 Brazilian Credit Market Page 8 Overview and Strategy Page 17 2Q10 Results Page 34 Appendix 2

Agenda Page 3 Brazilian Credit Market Page 8 Overview and Strategy Page 17 2Q10 Results Page 34 Appendix 3

Overview of the Brazilian Credit Market Credit Evolution in Brazil (% of GDP) 45.7 45.0 41.3 36.6 34.8 32.0 30.7 28.8 28.1 27.9 26.8 26.4 24.9 24.7 24.5 24.0 22.0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Jun/10 Loan to Companies up to R$ 100 million – R$ Billion Total credit operations of the financial system - R$Billion 424.0 446.9 1,227.3 1,414.3 1,529.1 388.8 315.5 70% 250.8 70% 935.9 71% 211.3 179.6 71% 732.6 70% 69% 607.0 498.7 70% 29% 30% 30% 30% 31% 29% 30% 2004 2005 2006 2007 2008 2009 May-10 2004 2005 2006 2007 2008 2009 Jun-10 Up R$ 100.000 From R$ 100.000 to R$ 10 million Source: Brazil Central Bank – March 2010 4

Brazilian Credit Market vs. Banco Daycoval Financial System Total Credit Operations vs. Banco Daycoval Total Loan Portfolio (1) - R$ Million (% p.a.) 112% 4,787 4,020 4,033 67% 3,574 51% 40% 39% 1,680 31% 29% 28% 21% 22% 21% 19% 19% 993 14% 15% 661 15% 474 217 341 263 9% 8% 3% -1% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 1H10 2001 2002 2003 2004 2005 2006 2007 2008 2009 1H10 Banco Santos Crisis / Brazilian Credit Volume Daycoval Loan Portfolio World Crisis Beginning of Payroll Loans IPO Branch Expansion (1) Includes Avals and Sureties Program 5

Consistent Funding in Good and Bad Times Total Funding 1 - R$ Million 4,725 3,509 CAGR 00 – 09: 39.1% 3,273 2,977 1,868 1,226 754 498 318 217 180 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 1H10 Banco Santos Crisis / Eurobond US$ Eurobond US$ 300 Eurobond US$ 225 Creation of Daycoval Asset 120 mn / FIDC MM / Syndicated Loan mn / World Crisis (IFC) US$165 MM Middle Management Private Placement Eurobond IPO / AB Loan-IFC US$ 65 mn US$ 115 mn R$ 410 mn 1 Funding = Total Deposits + Foreign Issuances + Borrowing and Onlendings (does not include FIDC) 6

Financial System Ranking Daycoval Ranking Private National Banks Total Assets 25º Total Funding 26º Shareholders ’ Equity 14º Net Income 16º Source: Brazil Central Bank – March 2010 Tradicional Bank, with over 40 years of operation. Recognized in the market for its conservative profile, solid stance, credibility and excellence in the management of its businesses. 7

Agenda Page 3 Brazilian Credit Market Page 8 Overview and Strategy Page 17 2Q10 Results Page 34 Appendix 8

Distribution and New Service Outlets National Presence Recently opened two exchange bureaus on Avenida Paulista, Brazil’s major business hub. Seven Daypag offices in major cities of São Paulo State: Osasco, Barueri, Guarulhos, Atibaia, Campinas, Ribeirão Preto, Mogi Guaçu, and Detran São Paulo 29 Branches 690 employees São Paulo – SP - HQ Alphaville Caxias do Sul - RS Manaus - AM Bom Retiro Cuiabá - MT Natal - RN Faria Lima Porto Alegre - RS Curitiba - PR Brás Recife - PE Florianópolis - SC Aracaju - SE Ribeirão Preto - SP Fortaleza - CE Belém - PA Rio de Janeiro - RJ Goiânia - GO Belo Horizonte - MG Salvador - BA Brasília - DF Guarulhos - SP São Bernardo - SP Londrina - PR Campinas - SP Vitória - ES Campo Grande - MS Maceió - AL 9

Daycoval’s Market Capital and Corporate Structure Stock Performance – 2Q10 Capital Structure – June/10 DAYC4 (R$) 2Q10 1Q10 Chg. % 2Q09 Chg. % Daycoval Holding Financeira Closing Quotation 8.80 10.12 -13.0% 7.10 23.9% S/A 25.2% High for the quarter 10.25 10.24 0.1% 7.60 34.9% Controlling Shareholders 0.6% (family) + Daycoval Expert 65.8% Average for the quarter 9.12 9.88 -7.7% 6.61 37.9% 8.4% Treasury Low for the quarter 7.90 8.89 -11.1% 4.85 62.9% Book Value 7.71 7.97 -3.26% 7.33 5.18% Free Float Market Value(RS) Million 1,903.6 2,189.2 -13.1% 1,580.7 20.4% Total Shares: 216.3 million shares. Free Float: 54,4 million shares. First middle market bank to implement a ADR Level I Program. Coverage by research analysts from 16 local and international brokerage firms. 10

Daycoval’s Strategy Middle Market Pursue higher returns with  Focus and expected share gain the lowest possible risk along next years Maintain Low Leverage and High Liquidity policy Payroll  Participate in the market expansion Maintain the quality of collaterals Long term funding to Auto match the growing payroll  Grow origination portfolio strategy 11 11

Loan: agile and efficient Partnership posture with the Executive Board Committee clients, with special solutions for Aproves operations above R$ 1 million. each requirement. Cross selling of credit products and Credit Committee financial services. Define the approval of limits and hierarchies, monitor Proactive in the management of the performance of the credit portfolio and approve operations of up to R$ 1 million. portfolio risks, with strict control of guarantees. Credit Director and Analyst Conducts the company’s economic-financial analysis, Expertise and flexibility to structure analyzes documentation and issues opinions as the Director of Credit. Together, they discuss the risks of transactions. each operation and propose them to the Credit Committee. Centralized back-office at headquarters. Sales Manager Visits clients, prepares the credit visit report, the structure of the operation and the interaction with the internal analysis team. Is not in the credit hierarchy . Strong and specialized front-office team. 12

Business Strategy : New Products Credit to individuals Daypag meets the financing needs of car license agents, expediters and driving schools in São Paulo State by extending loans for clients to pay vehicle registration fees (road tax, compulsory third-party liability insurance, fines etc.) and facilitating payments by wire transfer. Prepaid card, rechargeable in another currency that allows withdrawals and purchases in licensed establishments to VISA worldwide. New Exchange Bureau, partners with travel agencies, brokers and other financial instituion’s . 13

Business Strategy : New Credit Products and Technology to companies Long-term financing for investment in the business. Acquisition of new machinery and equipment. Practicality in controlling costs for company, with benefits package and benefits. Makes it possible companies and individuals to electronically received all bank payment slips, facilitating day-to-day operations. Internet Banking: secure, modern, efficient and easy navigation. 14

Created in 2004 to service clients of the Bank who wanted sophisticated products designed according to their individual profiles. Each Fund has its own manager who has deep understanding of the capital markets and is fully dedicated to obtaining the maximum returns possible. In June/2010, net assets totaled approximately R$ 785 million. Assets Under Assets Under Management – R$ MM Profitability Funds Mannagement R$ Year Million 784 Daycoval Renda Fixa 5.45% 73.8 % CDI 102.87% 643 Multifunds Daycoval Multifunds 4.77% 17.7 238 % CDI 90.66% 241 138 91 Parnamirim 5.84% 36 148.5 % CDI 111.12% Stocks 2004 2005 2006 2007 2008 2009 1H10 Daycoval Target -0.91% 22.0 % Ibovespa -0.05% 15

Ratings Global Scale Global Scale Low Risk – Mid-Term Long Term BB Long Term BB Index 11.40 Short Term B Short Term B General Rank: march/10 National Scale National Scale 8 Long Term brAA- Long Term A+ (bra) Short Term brA ‐ 2 Short Term F1 (bra) Stable Stable November 2009 December 2009 July 2010 16

Agenda Page 3 Brazilian Credit Market Page 8 Overview and Strategy Page 17 2Q10 Results Page 34 Appendix 17

Key Figures (R$ MM) June 2010 Total Assets R$ 8,813.5 million Loan Portfolio R$ 4,786.8 million Funding R$ 4,725.5 million Net Income (quarter) R$ 64.2 million Shareholders ’ Equity R$ 1,668.0 million ROAE (quarter) 16.0% NIM-A (1) (quarter) 11.7% Efficiency Ratio 24.1% BIS Index 22.3% (1) New methodology excluding repurchase agreements – tri-party repos outstanding 18

Funding: strong growth of funding with diversification of sources Funding – R$ Million Breakdown of Funding 44.8 % Funding (R$ MM) 2Q10 1Q10 Chg. % 13.3 % 4,725 Total Deposits 2,775.0 2,505.7 10.7% 4,172 26% Demand Deposits + Other Deposits 164.8 150.5 9.5% 3,567 3,509 18% 3,264 18% Time Deposits 2,552.4 2,246.6 13.6% 21% 15% 18% 22% 17% 11% Interbank Deposits 57.8 108.6 -46.8% 20% Foreign Issuances 712.1 902.8 -21.1% 59% 68% 60% 65% 62% Borrowing and Onlending 1,238.4 763.4 62.2% Total 4,725.5 4,171.9 13.3% 2Q09 3Q09 4Q09 1Q10 2Q10 Total Deposits Foreign Issuances Borrowing and Onlending Total Deposits Breakdown – R$ 2,775.0 Million Corporates 2.2% 9.2% Individuals 19.0% Investment 49.0% Funds Institutional 20.6% Financial Institutions 19