CGD INVESTOR S JOURNAL 02_2014

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2 CAIXA GERAL DE DEPÓSITOS AVENIDA JOÃO XXI, LISBOA Tel: (+351) Fax:(+351) EXECUTIVE BOARD JOSÉ AGOSTINHO MARTINS DE MATOS CEO NUNO MARIA PINTO DE MAGALHÃES FERNANDES THOMAZ EXECUTIVE VICE-PRESIDENT JOÃO NUNO DE OLIVEIRA JORGE PALMA EXECUTIVE BOARD MEMBER, CFO JOSÉ PEDRO CABRAL DOS SANTOS EXECUTIVE BOARD MEMBER ANA CRISTINA DE SOUSA LEAL EXECUTIVE BOARD MEMBER, CRO MARIA JOÃO BORGES CARIOCA RODRIGUES EXECUTIVE BOARD MEMBER JORGE TELMO MARIA FREIRE CARDOSO. EXECUTIVE BOARD MEMBER 2

3 OUR PRINCIPLES BUSINESS FULLY ORIENTED TO CUSTOMER. SUPPORT OF PORTUGUESE ECONOMIC ACTIVITY. PROMOTION OF HUMAN TALENT AND TEAMWORK. HIGHEST ETHICAL STANDARDS. INNOVATION. SOCIAL RESPONSIBILITY, GLOBAL SUSTAINABILITY AND INVESTMENT IN THE FUTURE.

4 A BANK IN TRANSFORMATION TO ADJUST TO A RENEWED ECONOMIC PARADIGM. Group has returned to profit, and continues along the road to renewal, providing the best responses to the structural changes in the economy and Portuguese society, as reflected in the behaviour and needs of its customer base. Caixa continues to afford high priority to funding the best companies and providing Portuguese households with instruments designed to encourage savings, as well as investment solutions based on criteria of rigour and prudence. The improvement in net interest margin alongside the good performance of financial operations and the improved operational efficiency contributed decisively to the increase of operating income. Caixa s commitment to developing international operations and its good performance in highly dynamic jurisdictions has made a decisive contribution to the trajectory of its return to profitability levels commensurate with Caixa Group s position in the financial system. 4

5 THERE IS A BANK THAT IS HELPING THE COUNTRY TO TURN AROUND. CAIXA. FOR SURE. MORE THAN 4 MILLION CUSTOMERS IN PORTUGAL

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7 BUSINESS PERFORMANCE M CONSOLIDATED NET INCOME EXCLUDING EXTRAORDINARY COSTS WITH COCO BONDS 42,1 22,4-36,4-16,4 Mar-13 Mar-14 Mar-13 Mar-14 Group returns to profits in first quarter 2014, with consolidated net results of 22.4 million. NET INTEREST INCOME Income from Equity Instruments Net Interest Income M 5,5 EXCLUDING EXTRAORDINARY COSTS WITH COCO BONDS 5,5 10,7 10,7 175,0 232, % 195,1 252, % Mar-13 Mar-14 Mar-13 Mar-14 Net interest income was up 32.9% and notwithstanding the significant reduction of income from equity instruments, net interest income including equity instruments was up 28.2%, year-on-year

8 BUSINESS PERFORMANCE OPERATING COSTS AND DEPRECIATION M Mar-13 Mar Employee Costs External supplies and services Depreciation and amortisation Total Caixa maintains operational efficiency and costs rationalisation as main policy goals. The costs declining trend would be maintained excluding the one-off increase of staff costs with the restoring of holiday and Christmas bonuses. GROSS OPERATING INCOME M 186,3 89,6 Mar-13 Mar-14 Gross operating income was up an expressive 108.0%, year-on-year 2013, benefiting from higher net operating income and improved operating efficiency. 8

9 INTERNATIONAL BUSINESS CONTRIBUTION NET OPERATING INCOME ASSETS GROSS OPERATING INCOME 41% 77 M 17% 19,665 M 35% M Increasing emphasis on international operation which made a visible contribution to consolidated results. CORPORATE AND SME CORPORATE LOANS - MARKET SHARE 18.1% 18.2% 17.3% 16.4%1 6.4% 15.5% 14.8% Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Mar-14 The current economic crisis has been conditioning Portugal s internal and external trade, reflecting a weaker credit demand by corporates. Nevertheless, s strategy for the financing of this sector is being achieved, which is confirmed by the evolution of the market share. 9

10 FUNDING STRUCTURE BREAKDOWN Off-balance Sheet 12% Institutional (Bonds+CP) + CoCos 9% 9% Central Banks + CI resources Mar 2014 Retail 70% SOURCES 11% Bancassurance 3% Other Customer Resources Mar 2014 Customer Deposits 86% Sound liquidity profile, due to a large and stable deposit base: 3/4 of deposits hail from households; 2/3 of deposits are term and savings deposits. 10

11 DEBT 750M / 5 YEAR COVERED BONDS PRIMARY MARKET BREAKDOWN BY TYPE OF INVESTORS GEOGRAPHIC BREAKDOWN Other 16% Germany and Austria UK 26% 25% Insurance 8% 750M Spain France 12% 10% Banks 13% Portugal Other 9% 5% Asset Managers 63% Benelux/ Swizterland Italy 4% 4% ISSUER: Caixa Geral de Depósitos SA FORMAT: 5 Year Covered Bond 2019 ANNOUNCEMENT: 8-Jan-14 ISSUE SIZE: 750 M COUPON: 3% REOFFER YIELD: Mid-Swaps + 188bps BOOKRUNNERS: Caixa BI/HSBC/CAL/COBA/JPMorgan USA Middle East/ Asia Africa 2% 2% 0.3% 11

12 VYING FOR FAST GROWING MARKETS Large network connecting mature and fast growing markets. 12

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14 INTERNATIONAL OVERVIEW SPAIN POPULATION (ESTIMATE) 46,704,314 AREA 506,030 Km2 BANCO CAIXA GERAL SPAIN BCG Spain is concentrated on retail operations. TOTAL ASSETS (NET) 5,157,297,086 LOANS AND ADVANCES TO CUSTOMERS 3,063,519,701 CUSTOMER DEPOSITS 2,501,938,947 Geographical proximity and intense cross border business, as well as major confluence in Caixa s corporate customers interests in both markets, explains why Spain is a natural expansion of domestic market. Caixa s subsidiary, BCG Spain, is nowadays carrying out a deep restructuring process reorienting its activity to retail business, with the aim of adapting its business model to an evolving economic landscape in order to take advantage of the new opportunities and challenges that will result from the progresses made by the two countries, strengthening their productive structures and, therefore, improving their resilience to a potential crisis. BRANCHES 113 EMPLOYEES 612 SPAIN BRANCH Non-core assets TOTAL ASSETS (NET) 1,194,138,133 LOANS AND ADVANCES TO CUSTOMERS 1,114,166,832 AS FOR MARCH 2014

15 PERCENT DISTRIBUTION OF GROSS VALUE ADDED BY SECTOR OF ACTIVITY 70.5% LONG TERM RATING MOODY S Baa2 (POSITIVE) SPAIN S&P BBB (STABLE) FITCH BBB+ (STABLE) GDP NOMINAL ESTIMATE $1,395,000,000,000 14th GDP PER CAPITA $30,315 30th GINI 2011 HDI th SOURCE: IMF, 2013 SOURCE: U.N. DATA 2.5% AGRICULTURE 10.1% CONSTRUCTION 16.9% SERVICES AS OF 2011, SPANISH REGIONAL ACCOUNTS INDUSTRY SPAIN IS THE LARGEST MARKET FOR PORTUGAL QQ Spain and Portugal share the oldest border in Europe. QQ Portugal is Spain third largest market. QQ Portugal and Spain hold regular bilateral summits, since 1983, with 15 cooperation agreements signed. SOURCE: SPAIN TODAY, FOREIGN POLICY 2013, SPANISH GOVERNMENT STOCK MARKET CAPITALIZATION [MAY 2014] $995,094,000,000 SOURCE: WORLD BANK DOMESTIC CREDIT TO PRIVATE SECTOR [% OF GDP, JAN 2012] % SOURCE: WORLD BANK PORTUGAL/SPAIN BILATERAL TRADE 25,000,000,000 EXPORTS MARKET SHARE 23.6% 15

16 SUSTAINABLE OFFER 16

17 SOCIAL RESPONSIBILITY 17

18 ENVIRONMENTAL RESPONSIBILITY 18

19 IMPROVING HUMAN CAPITAL 19

20 THE GLOBAL COMPACT SUPPORT IS COMMITED TO WORKING TOWARDS THE CONSISTENT IMPLEMENTATION OF THE TEN PRINCIPLES PROPOSED BY THE UNITED NATIONS GLOBAL COMPACT ORGANIZATION. HUMAN RIGHTS Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights; and Principle 2: make sure that they are not complicit in human rights abuses. LABOUR Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining; Principle 4: the elimination of all forms of forced and compulsory labour; Principle 5: the effective abolition of child labour; and Principle 6: the elimination of discrimination in respect of employment and occupation. ENVIRONMENT Principle 7: Businesses should support a precautionary approach to environmental challenges; Principle 8: undertake initiatives to promote greater environmental responsibility; and Principle 9: encourage the development and diffusion of environmentally friendly technologies. ANTI-CORRUPTION Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery. 20

21 PRIZES AND DISTINCTIONS BRAND VALUE 27% INCREASE IN BRAND VALUE OVER 2013 PRIME COMPANY. [OEKOM RANKING] CARBON DISCLOSURE PROJECT LEADERSHIP INDEX DISCLOSURE [CDLI]. came in top position among Portuguese companies (99 points) THE MOST VALUABLE BANKING BRAND. [BRAND FINANCE] CARBON DISCLOSURE PROJECT PERFORMANCE [CPLI]. Best Iberian Bank (level A) BANKING BRANDS WITH THE BEST REPUTATION. [REPUTATION INSTITUTE] 21

22 CAIXA GERAL DE DEPÓSITOS Investor Relations Office Tel: (+351)

23 BACK ISSUES 01_ _ _2014 DISCLAIMER This document is only provided for information purposes and does not constitute, nor must it be interpreted as, an offer to sell or exchange or acquire, or an invitation for offers to buy securities issued by any of the aforementioned companies in any jurisdiction where, or to any person to whom, it is unlawful to make such an offer or sale. Any decision to buy or invest in securities in relation to a specific issue must be made solely and exclusively on the basis of the information set out in the pertinent prospectus filed by the company in relation to such specific issue. Nobody who becomes aware of the information contained in this report must regard it as definitive, because it is subject to changes and modifications. The Company makes no representation or warranty, express or implied, as to the accuracy or completeness of the information containeherein. This document contains or may contain forward looking statements regarding intentions, expectations or projections of Caixa Geral de Depósitos or of its management on the date thereof that refer to miscellaneous aspects, including projections about the future earnings of the business and involve significant elements of subjective judgment and analysis that may or may not be correct. The statements contained herein are based on our current projections, although the said earnings may be substantially modified in the future by certain risks, uncertainty and others factors relevant that may cause the results or final decisions to differ from such intentions, projections or estimates. These factors include, without limitation, (1) the market situation, macroeconomic factors, regulatory, political or government guidelines, (2) domestic and international stock market movements, exchange rates and interest rates, (3) competitive pressures, (4) technological changes, (5) alterations in the financial situation, creditworthiness or solvency of our customers, debtors or counterparts. These factors could condition and result in actual events differing from the information and intentions stated, projected or forecast in this document and other past or future documents. Caixa Geral de Depósitos does not undertake to publicly revise the contents of this or any other document, either if the events are not exactly as described herein, or if such events lead to changes in the stated strategies and intentions. The contents of this statement must be taken into account by any persons or entities that may have to make decisions or prepare or disseminate opinions about securities issued by Caixa Geral de Depósitos and, in particular, by the analysts who handle this document and any recipient thereof should conduct its own independent analysis of the Company and the data contained or referred to herein. This document may contain summarised information or information that has not been audited, and its recipients are invited to consult the documentation and public information filed by Caixa Geral de Depósitos with stock market supervisory bodies, in particular, the prospectuses and periodical information filed with the Portuguese Securities Exchange Commission (CMVM). Distribution of this document in other jurisdictions may be prohibited, and recipients into whose possession this document comes shall be solely responsible for informing themselves about, and observing any such restrictions. By accepting this document you agree to be bound by the foregoing restrictions. 23

24 2014 GIR - INVESTOR RELATIONS OFFICE CAIXA GERAL DE DEPÓSITOS