Institutional Presentation June 2009 Agenda Page 3 About Banco - PowerPoint PPT Presentation

Institutional Presentation June 2009

Agenda Page 3 About Banco Daycoval Page 4 Business Strategy Page 7 Capital Structure and Funding Page 12 Our Products Page 20 Results Page 25 Corp. Governance, Shareholders and DAYC4 Shares Page 29 Annexes 2

About Banco Daycoval Traditional Bank, with more than 40 years of experience 1968 commencement of activities at Daycoval DTVM in Brazil Capital Structure reflecting the Bank’s conservative approach Basel Index always above 20% High level of liquidity and low leverage Outstanding position in the financial market In 2007, Daycoval carried out the biggest IPO among the peers In 2009, Daycoval carried out a unique funding operation Several recognitions awarded Best middle market bank in the last 3 years 3

Agenda About Banco Daycoval Business Strategy Capital Structure and Funding Our Products Results Corp. Governance, Shareholders and DAYC4 Shares Annexes 4

Business Strategy Diversification of Assets and Liabilities Financial Strength Funding Sources Management Deposits Shareholders’ Equity Matching volumes and and duration among assets Borrowings / Onlending Cash Position (417 days) and liabilities (562 days) Foreign Equity = R$ 1.6 bi (*) (*) Borrowings Cash = R$ 1.5 bi (*) Strict Credit Policy Operational Excellence Focus on relationship Low fixed costs Flexibility in the Rigorous internal development of the controls operation Outstanding IT Agility in the making platform process decision (*) 06/30/2009 5

Business Strategy Middle Market Payroll 26 branches Auto 10 Daycred stores 538 employees 6

Agenda About Banco Daycoval Business Strategy Capital Structure and Funding Our Products Results Corp. Governance, Shareholders and DAYC4 Shares Annexes 7

Capital Structure: maintenance of low leverage Shareholders’ Equity and Credit / Equity Basel Index – % R$ MM times 30.5 30.1 1,634 1,640 4 1,631 2.8 2.9 1,630 3 28.2 2.2 1,620 3 1,612 1.9 1.9 1,607 1,610 2 25.6 25.6 1,597 1,600 2 1,590 1 1,580 1 1,570 0 2Q08 3Q08 4Q08 1Q09 2Q09 2Q08 3Q08 4Q08 1Q09 2Q09 Cash Evolution – R$ MM Solidness: the capital structure reflects the conservatism of the strategy adopted 2,000 Low leverage: ratio Credit/Equity enable the Bank to play an 1,500 active role in the recovery of the credit growth 1,000 Capital adequacy : Basel Index above 30%, overcoming the market’s average 500 High capitalization: maintenance of cash reinforces the 0 operations liquidity 2Q08 3Q08 4Q08 1Q09 2Q09 8

Funding: strong growth in time deposits Total Funding - R$ MM Funding Breakdown – June/09 3,975 3,858 18% 3,377 3,273 3,264 Total Deposits 20% Foreign Borrowings Borrowing and Onlending 62% 2Q08 3Q08 4Q08 1Q09 2Q09 Credit versus Funding – R$ MM Credit portfolio Deposits : with more than 700 clients, are the main source Funding of funding, representing 60% of the total 5,000 4,000 Low Exposure: less than 25% of the deposits have liquidity and the top 10 clients representing 36% of the total 3,000 2,000 Maintenance of Liquidity : the ratio cash/total deposits 1,000 always of 74% at the end of June 0 2004 2005 2006 2007 2008 1H09 9

Funding: match between assets and liabilities Average Term – (calendar days) Average Term – Middle Market Loan Portfolio Average Term : positive gap between average term of deposits Average Term – Time Deposits (without liquidity) and middle market portfolio 1,000 Match between Assets and Liabilities: the funding average 800 term (562 days) is superior of credit portfolio average term 600 (417 days) 400 200 0 2Q08 3Q08 4Q08 1Q09 2Q09 By maturity (Credit Portfolio) – 2Q09 By maturity (Funding) – 2Q09 2% 1% No maturity 3% 6% Up to 3 months 16% 35% Up to 3 months From 3 to 12 months From 3 to 12 15% months From 1 to 3 years From 1 to 3 years 36% 26% From 3 to 5 years From 3 to 5 years 32% 28% Above 5 years Above 5 years 10

Ratings Global Scale Global Scale National Scale Low Risk – mid-term Long Term BB- Long Term BB- Long Term AA- Index 11.25 Short Term B Short Term B Short Term A-1 National Scale National Scale Long Term brA Long Term A (bra) Short Term brA-2 Short Term F1 (bra) Stable Stable Stable No Alert Gaps May 2009 April 2009 May 2009 April 2009 11

Agenda About Banco Daycoval Business Strategy Capital Structure and Funding Our Products Results Corp. Governance, Shareholders and DAYC4 Shares Annexes 12

Our Products: focus on middle market Total Credit Portfolio - R$ MM 4,627 4,494 3,981 3,548 3,533 Middle Market kept as most important product of Daycoval’s total portfolio and will continue to be the main focus 2Q08 3Q08 4Q08 1Q09 2Q09 In the retail operations, current Credit Portfolio Breakdown – June/09 focus is the payroll due to its best relation risk and return 22% Middle Market + Trade Finance Payroll 25% Vehicles 53% 13

Our Products: middle market Middle Market Portfolio – R$ MM The Bank plays in the “Low Middle Market” : companies Middle Market with revenues between R$8 and R$300 million Trade Finance 2,901 2,813 Operations with pulverized tickets: 95% of the clients 2,231 277 201 1,860 1,860 with tickets less than R$5 million 197 155 171 Recognized expertise in this segment: best middle 2,624 2,612 2,034 market Bank in the last 3 years 1,705 1,689 2Q08 3Q08 4Q08 1Q09 2Q09 Middle Market Breakdown – June/09 Average Ticket – Middle Market + Trade Finance – 2Q09 5% 5% Per Per Final Balance R$ Volume Client 10% < 500,000 7.6% 67.7% 8% 500,000 to 1 million 9.3% 13.2% 1 to 3 million 21.9% 13.1% 26% 46% 3 to 5 million 14.6% 3.9% 5 to 10 million 24.0% 3.6% > 10 million 22.6% 1.5% Working Capital Cash Account Trade Finance Discount Trade Notes Total 100.0% Resolution 2770 Other 14

Our Products: middle market Middle Market Concentration – June/09 Average term: 170 days 33% Diversification in the clients base: more than 2,000 active clients 19% Low sector exposure: there is no segment representing 12% more than 10% of the portfolio Focus on guarantees: highlight of receivables with more liquidity Top 10 Top 20 Top 50 Sector Distribution - Middle Market – June/09 Mix of Guarantees - Middle Market – June/09 6% 4% Receivables 8% 17% 8% 7% Vehicles + Real Estate Agricultural Products 20% 30% Equipaments + 45% Foreign Goods Financial 55% Investments Other Industry Services Commerce Other 15

Our Products: payroll Payroll Portfolio - R$ MM Credit assignments Main segment is the INSS: 41% of the total portfolio Lower risk and adequate return: 99% of the portfolio are 900 869 858 854 in the public sector 770 115 134 151 Average term in line with the funding structure Portfolio has approximately 264,000 clients and average 785 ticket of R$3,500 707 720 2Q08 3Q08 4Q08 1Q09 2Q09 Average ticket – R$’000 Payroll Breakdown – June/09 1% 3.5 3.5 8% 9% INSS 10% Federal Government Army 14% Law Courts and Legislative Bodies 41% Municipalities Private 17% Other 1Q09 2Q09 16

Our Products: payroll Payroll Production - R$ MM 202 183 139 83 68 2Q08 3Q08 4Q08 1Q09 2Q09 Average Term Adjusted by Risk – Months 33 32 1Q09 2Q09 17

Our Products: auto Auto Portfolio - R$ MM Main product is small vehicles: 66% of total portfolio are small vehicles Credit assignments Reduction of production: R$19 million during 2Q09 946 892 835 reflecting the new strategy after the crisis 822 774 124 102 84 High liquidity: 92% of the expected payments were received 768 Average ticket of R$8,000 733 690 2Q08 3Q08 4Q08 1Q09 2Q09 Liquidity of Auto Loans Portfolio – % R$ MM % Auto Breakdown – June/09 Aug/06 to Mar/09 Accum. PMT’s received in advance 200.0 34.2 34.2 PMT’s received on date of maturity 81.7 14.0 48.1 14% PMT’s received with delay of 30 days 188.0 32.1 80.3 20% PMT’s received with delay of 60 to 120 days 62.5 10.7 90.9 PMT’s received with delay over 120 days 7.2 1.2 92.2 PMT’s overdue 45.8 7.8 100.0 66% Liquidity of the Auto Loans Portfolio 539.4 92.2 Outstanding PMT’s Total Amount 585.2 100.0 Small Vehicles Heavy-duty Vehicles Motorcycles 18

Our Products: auto Auto Production - R$ MM 204 184 19 20 20 2Q08 3Q08 4Q08 1Q09 2Q09 Average Term Adjusted by Risk – Months 22.5 22.5 1Q09 2Q09 19

Agenda About Banco Daycoval Business Strategy Capital Structure and Funding Our Products Results Corp. Governance, Shareholders and DAYC4 Shares Annexes 20

Profitability: fresh rise in net interest margin Net Income - R$ Million 62.5 48.0 38.5 2Q08 1Q09 2Q09 Net Interest Margin (NIM) - % ROAE - % 16.7 12.6 13.0 10.8 12.3 9.8 2Q08 1Q09 2Q09 2Q08 1Q09 2Q09 21