Our Mission. Group Chairman s Message. Our Culture. Our Activities. Corporate Responsibility

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1 ANNUAL REVIEW 2014

2 Our Mission Group Chairman s Message Our Culture Our Activities Corporate Responsibility Consolidated Balance Sheet and Income Statement Finantipar (parent company) Consolidated Balance Sheet and Income Statement Banco Finantia Highlights Banco Finantia Our Team

3 We are an independent private Portuguese financial group, with more than 28 years of experience, always with positive results. We are pleased to preserve our independence. To resist storms. To innovate with vision. To fulfill ambitions. To draw the future. Having the talent to manage talent.

4 We offer our clients high quality value-added services. OUR MISSION ALWAYS ACCOMPLISHED We recruit, train and develop the most talented professionals. We are committed to create value for our shareholders, reinforcing our institution s solidity.

5 We are proud of our rich history and track record. They are sources of inspiration and, together with our strong capital base, we anticipate a solid and promising future ahead. The year of 2014 marks the beginning of the Portuguese economic recovery after a recession closely linked to a severe economic adjustment program imposed by the country s creditors. This positive evolution was somewhat diminished by the collapse of the Espírito Santo Group which has sent shock waves throughout the Portuguese economy not yet fully absorbed. The structural reforms implemented in the past few years must be deepened by the Government to be elected in the autumn of This is the basic assumption for our forecast of a smooth recovery for 2015 and beyond. Our Group made a consolidated net profit of EUR18.6 million in 2014, an increase of 11% over the previous year with good contributions from all areas of activity. Of particular relevance were the innovative and highly visible transactions in the Corporate and Investment Banking areas, as well as the continued growth of our deposit base. Our activities are increasingly more international with Spain representing about a quarter of total assets, up from 10% a decade ago. We have now added China and Africa as important emerging markets/economies we follow on a regular basis, further to our traditional activities in Brazil and Eastern Europe. GROUP CHAIRMAN S MESSAGE We have been recruiting high caliber professionals to strengthen our qualified staff pool in order to respond effectively to the new challenges of the financial activities and the regulatory environment. Our culture has remained strong and focused: independent, innovative and entrepreneurial. Smooth transition to a new generation of younger executives is in progress while observing the best practices of corporate governance. The dedication of our staff, the trust of our clients and the support of our shareholders are second to none, despite the adversities we have been confronted with in recent years in the aftermath of the financial crisis. Our thanks to all of them. António M. A. Guerreiro Chairman Finantia Group 03 Finantia Group Annual Review 2014

6 The synergy of our values determines the success of our decisions and actions. EXCELLENCE The professionalism, quality and dedication of our staff and the recognised international experience of our management teams are what sets us apart. INDEPENDENCE We guarantee that the service we provide to clients is completely free of conflicts of interest. INTEGRITY We demand high ethical standards from our staff, in both their professional and their personal lives. OUR CULTURE OF PROFOUND ROOTS SOLIDITY We maintain the stable capital and liquidity ratios we need to carry out our various activities.

7 CREATIIVITY We develop financial products and services that lead to unique growth and investment opportunities. INNOVATION We anticipate most of our clients needs and offer them high added-value services. TEAM WORK We believe that working as a team, sharing responsibilities and rewards, is the only possible way to achieve our objectives and meet our clients expectations. CLIENT- ORIENTATION We constantly look for the best solutions for our clients, and seek to build long-term relationships. 05 Finantia Group Annual Review 2014

8 We are an independent Portuguese private financial group with over 28 years of both local and international experience. Free of any conflicts of interest, we have a vast track record of successful operations, staff with diverse backgrounds and a wide network of contacts in main international financial markets. New York London Madrid, Barcelona, Valencia Lisbon, Porto Sao Paulo OUR ACTIVITIES A SUSTAINED EXPANSION INVESTMENT BANKING AND FINANCIAL ADVISORY > MERGERS & ACQUISITIONS > PRIVATIZATIONS > VALUATIONS > RESTRUCTURINGS > PROJECT FINANCE > TRADE FINANCE > FORFAITING > SYNDICATED LOANS > COMMERCIAL PAPER > GUARANTEES > SPECIALIZED FINANCE Professional and independent advisory services, free of conflict of interests Experience in M&A transactions of local and international companies Specialist in cross border transactions, attracting international investors to Portugal and to countries where the Bank is present Support to Portuguese companies in their internationalization efforts Experience in privatizations and in transactions in regulated sectors Extensive investor base and syndication capacity in Europe and the Americas. 06 Finantia Group Annual Review 2014

9 CAPITAL MARKETS > ORIGINATION, SALES AND DISTRIBUTION OF SECURITIES > LOCAL BONDS > EUROBONDS > COMMERCIAL PAPER > MARKET MAKING Over 28 years of experience in fixed-income markets, a pioneer and a partner that clients can trust Strong origination, syndication, sales and trading capabilities, with placement on a broad and diversified base of investors in Europe and the Americas Important lender of Portuguese companies New Issues / Underwriting Teams in Lisbon, Madrid, London, New York and Sao Paulo, specializing in fixed-income products, with emphasis on issuers from Portugal, Spain, Brazil, Turkey, Russia and the CIS countries. PRIVATE BANKING > TIME DEPOSITS > FINANCIAL PORTFOLIO > MANAGEMENT > SALE AND PURCHASE OF > SECURITIES > INVESTMENT FUNDS > FINANCIAL ADVICE > INSURANCE Management of financial assets, providing individually tailored advice with complete discretion and confidentiality Savings solutions beyond those offered by retail banks. Simple, transparent savings products adapted to the risk profile, return expectations and investment horizon of the individual client Time deposit and certificates of deposit: the best way to make risk-free investments, with guaranteed and attractive returns Portfolios managed by Banco Finantia (under a discretionary-management contract) or by clients themselves, with the assistance of our advice and investment proposals (non-discretionary management) Independent advice on issues such as asset management, inheritance, retirement planning, healthcare and leisure, with the support of specialists in the relevant areas Unrestricted selection of the best Portuguese and international investment funds, with verifiable and consistent medium and long-term returns Products and services available through Banco Finantia in Portugal (Lisbon and Porto) and Banco Finantia Sofinloc in Spain (Madrid, Barcelona and Valencia). 07 Finantia Group Annual Review 2014

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11 We are constantly engaged to contribute, in a sustainable manner, to a better world. SOCIAL RESPONSIBILITY In 2014, Finantia Group consolidated its support of specific social actions aimed at assisting disadvantaged children, with or without special educational needs, such as: APSA a private social solidarity institution with the mission of helping children and young people with Asperger Syndrome to live a more independent and better quality life. Finantia supported the Casa Grande project that started its activities in January Banco do Bebé an association that helps underprivileged families with babies and children from 0-6 years old, born at Alfredo da Costa Maternity, in Lisbon and since 2012 in the hospitals of Santa Maria (Lisbon) and Beatriz Angelo (Loures). Raríssimas an association that helps people with rare diseases. Liga dos Amigos do Hospital S. João do Porto an association that helps underprivileged children and elderly people when hospitalized. CORPORATE RESPONSIBILITY IN THE PRESENT AND IN THE FUTURE CORPORATE PATRONAGE Finantia Group has been an active patron of the Palácio Nacional da Ajuda, in Lisbon, since 1997 and is proud to be a founding member (1995) of the Fundação de Serralves, Oporto, where it has sponsored several cultural and social programs. EDUCATION In 2014, Finantia Group once again cooperated with ISEG - Instituto Superior de Economia e Gestão of the Technical University of Lisbon, attributing a prize to the best first-year Master s degree student in International Economics and European Studies. The Bank is also a founding member of the Economics Foundation Foundation for the Development of Economic, Financial and Entrepreneurial Sciences (Fundação Económicas Fundação para o Desenvolvimento das Ciências Económicas, Financeiras e Empresariais). 09 Finantia Group Annual Review 2014

12 CONSOLIDATED BALANCE SHEET as at 31 December 2014 and 2013 EUR million ASSETS Cash and banks Available-for-sale financial assets Loans and advances to customers Other loans and advances Total Assets LIABILITIES MM takings Customers deposits Repos (including ECB) Subordinated debt Other liabilities Total Liabilities EQUITY Share capital, reserves and retained earnings Net profit Total Equity Total Liabilities and Equity CONSOLIDATED BALANCE SHEET AND INCOME STATEMENT FINANTIPAR (PARENT COMPANY) CONSOLIDATED INCOME STATEMENT as at 31 December 2014 and 2013 EUR million Net interest income Net fee and other operating income Financial Instruments and hedging Total Operating Income Impairment and provisions Operating expenses Profit before tax Net profit (42.6) (23.0) (48.0) (23.8) Finantia Group Annual Review 2014

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14 CONSOLIDATED BALANCE SHEET as at 31 December 2014 and 2013 EUR million ASSETS Cash and banks Available for sale financial assets Loans and advances to customers Other loans and advances Total Assets LIABILITIES MM takings Customers deposits Repos (incluinding BCE) Subordinated debt Other liabilities Total Liabilities EQUITY Share capital, reserves and retained earnings Net profit Total Equity Total Liabilities and Equity CONSOLIDATED BALANCE SHEET AND INCOME STATEMENT BANCO FINANTIA CONSOLIDATED INCOME STATEMENT as at 31 December 2014 and 2013 EUR million Net interest income Net fee and other operating income Financial instruments and hedging Total operating income Impairment and provisions Operating expenses Profit before tax Net profit (42.6) (23.0) (48.0) (23.7) Finantia Group Annual Review 2014

15 Banco Finantia reported a consolidated net profit of EUR 11.9 million in Applying the full phased in ratios of Basel III, the Common Equity Tier 1 ratio (CET1) would be 20% and the total ratio would be 21.7%, one of the strongest among Portuguese banks. Investment Bank of the Year Private Bank of the Year International Banker awards for Banco Finantia: Investment Bank of the Year Portugal 2014 Private Bank of the Year Portugal 2014 Global Banking & Finance Review awards for Banco Finantia: Fastest Growing Bank for Capital Markets 2015 Fastest Growing Investment Bank for Capital Markets 2015 HIGHLIGHTS BANCO FINANTIA EUR million Total Assets Guarantees and Credit Default Swaps Total Loans and Guarantees Total Equity Total Operating Income Operating Profit Net Profit IFRS CAPITAL ADEqUACY (BAL III) RWA Transitional Provisions Common Equity Tier 1 (CET1) (%) Total Capital Ratio (%) Fully loaded Common Equity Tier 1 (CET1) (%) Total Capital Ratio (%) PRODUCTIVITY/EFFICIENCY Cost to income (%) Cost to Income (%) 2 Data per share (Euro) Net Profit Book Value Weighted average no. of shares outstanding (million) Year end no. of shares outstanding (million) 1International Financial Reporting Standards 2 Excluding results from financial operations Finantia Group Annual Review 2014

16 Alexei Mitrofanov Non-executive Member Board of Directors, Finantipar Álvaro Novis Member Strategic Board, Banco Finantia António Gomes de Pinho Member Strategic Board, Banco Finantia António Guerreiro Chairman Board of Directors, Finantipar Chairman Strategic Board, Banco Finantia António Santiago Freitas Non-executive Member Board of Directors, Banco Finantia António Vila-Cova Non-executive Chairman Board of Directors, Banco Finantia Carlos Cuervo Member Strategic Board, Banco Finantia Charles-Louis de Laguiche Member Strategic Board, Banco Finantia David Guerreiro Executive Member Board of Directors, Banco Finantia Dominique de Guerre Member Strategic Board, Banco Finantia Duarte Correia de Sá Executive Member Board of Directors, Banco Finantia Sofinloc Eduardo Catroga Non-executive Member Board of Directors, Finantipar Eduardo Costa Vice-Chairman Strategic Board, Banco Finantia Filipe Marques Managing Director, Finantia USA Francisco Ortigão Managing Director, Banco Finantia Gonçalo Vaz Botelho Executive Vice-President Board of Directors, Banco Finantia Igor Souvorov Member Strategic Board, Banco Finantia Israel Vainboim Member Strategic Board, Banco Finantia João Cassiano Managing Director, Banco Finantia João Sabido Silva Non-executive Member Board of Directors, Finantipar José Miguel Júdice Member Strategic Board, Banco Finantia Laurent Mignon Member Strategic Board, Banco Finantia OUR TEAM OUR UNIVERSE Manuel Sebastião Member Strategic Board, Banco Finantia Maria Luisa Antas Secretary General, Banco Finantia Marta Eirea CEO, Banco Finantia Sofinloc Martin Lee-Warner Member Strategic Board, Banco Finantia Michael Hamilton Non-executive Member Board of Directors, Finantia Securities Nelly Desbarrières Non-executive Member Board of Directors, Finantipar Pedro Benites Managing Director, Banco Finantia Pedro Santos Executive member Board of Directors, Finantipar Pedro Perestrelo dos Reis CEO, Banco Finantia Renato Schulman General Manager, Finantia Brasil Ricardo Caldeira Executive Member Board of Directors, Banco Finantia Riccardo Orcel - Member Strategic Board, Banco Finantia Roberto Teixeira da Costa Member Strategic Board, Banco Finantia Rui Guerra Managing Director, Banco Finantia Rui Martinho Member Strategic Board, Banco Finantia Sandra Matos Chaves Non-executive Member Board of Directors, Finantipar Sérgio Zappa Member Strategic Board, Banco Finantia Tiago Lopes Executive Member Board of Directors, Banco Finantia Sofinloc Ulf Bachmann Member Strategic Board, Banco Finantia 14 Finantia Group Annual Review 2014

17 GENERAL ASSEMBLIES João Vieira de Almeida Chairman, Banco Finantia José A. Pinto Ribeiro Chairman, Finantipar SGPS AUDIT BOARDS José Manuel Archer Chairman, Banco Finantia, Finantipar SGPS Miguel Cancella de Abreu Member, Banco Finantia, Finantipar SGPS Rita Correia Afonso Member, Banco Finantia, Finantipar SGPS EXTERNAL AUDITORS Ernst & Young Audit & Associados, S.R.O.C. BANCO FINANTIA S MAIN SHAREHOLDERS Finantipar SGPS ( 57.0 %) Natixis (9.9%) VTB Capital (8.9%) Erste Abwicklungsanstalt (8.2%) 15 Finantia Group Annual Review 2014

18 Rua General Firmino Miguel, Lisboa Portugal T F Rua São João de Brito, Porto Portugal T F Avenida Menéndez Pelayo, Madrid Espanha T F Paseo de Gracia, Barcelona Espanha T F Calle Colón, Valência Espanha T F Austin Friars, 5th Floor London EC2N 2HG Reino Unido T F Third Avenue, 28th Floor New York NY EUA T F Rua James Joule, 65, Conj. 172 Brooklin São Paulo SP Brasil T F finantia@finantia.com

19 The contents of this document are complemented by Finantipar SGPS and Banco Finantia s Report and Accounts The paper used in this Annual Review is from forests that are managed in an environmentally appropriate, socially beneficial and economically viable manner. Certification no. sgs-coc Design and production graça abreu design Printing leycol, London.

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