Agenda. positive outlook. execution track record. new fronts. strategic positioning

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2 Disclaimer This presentation may include reference and statements, planned synergies, increasing estimates, projections of results and future strategy for Banco do Brasil, it s Associated and Affiliated Companies and Subsidiaries. Although theses references and statements reflect the management s belief, they also involve imprecision and high difficult risks to be foreseen, consequently, they may conduct to a different result than those anticipated and discussed here. These expectations are highly dependent on market conditions, on Brazil s economic and banking system performances, as well as on international market one. Banco do Brasil is not responsible for bringing up to date any estimate in this presentation. 2

3 Agenda execution track record positive outlook strategic positioning new fronts 3

4 governance improvements 2010 Public Offering - R$ 9.8 billion / free float % 2009 Level 1 ADR 2009 Financial statements in international standards 2007 Public Offering - free float from 14.8% to 21.7% 2006 Public Offering free float from 6.9% to 14.8% 2006 Novo Mercado Bovespa - Special Listing Segment 2002 Conversion of preferred shares into common shares 2001 PFIFF*: corporate governance improvements aiming adhesion to Novo Mercado * Brazilian government program to strenghten Federal Owned Financial Institutions 4

5 5 years on Novo Mercado May 2006 June 2011 Ibovespa Banco do Brasil Bradesco Itaú Santander* BBAS3 7 th most negotiated share / 3 rd most traded among Brazilian Banks Average volume traded in 2011 rose 691% over same period of 2006 Stake on IBOVESPA increased from 1.7% (jun/06) to 2.5% (jun/11) Stock performance better than peers 5

6 commitments and strategies Retail leadership Expansion of the service network in São Paulo and the leadership in other regions Expansion of credit and exposure to more profitable segments Diversification: insurance and pension plans, cards, asset management and capital markets Costs control: modern infrastructure and cutting edge technology Customer base expansion, improvement in service quality and strengthening of relationship 6

7 largest bank in Brazil R$ billion H11 CAGR % Market Share 2006 (%) Market Share 1H11 (%) (2) Total Assets Total Deposits Credit (1) Asset Management Branch Network 3,969 5, (1) Includes guarantees and private securities. Market share of domestic portfolio. (2) Market share position of Total Assets and Total Deposits: march/2011 7

8 net income R$ billion H10 1H11 Net Income Recurring Net Income ROE - % Recurring ROE - % 8

9 assets* R$ billion Jun/11 Market Share - % (*) Market share position: march/2011 9

10 deposits* R$ billion Jun/11 Market Share - % (*) Market share position: march/

11 foreign borrowings* US$ billion Jun/11 Interbanking Bond Issues Corporates Individuals Repos (*) Without Banco Patagonia 11

12 asset management* R$ billion Jun/11 Market Share - % (*) Market share without Banco Votorantim. 12

13 credit* R$ billion % % Jun/11 Corporates Individuals Agribusiness Offshore Market Share - % (*) Since 2009 includes guarantees and private securities. 13

14 credit to individuals* R$ billion 79.3% % Jun/11 Payroll Vehicle Finance Backed by Direct Deposits Mortgage Cards Other Overdraft (*) Since 2009 includes guarantees and private securities. 14

15 corporate loans* R$ billion Jun/11 Working Capital Investment Trade Finance Other (*) Since 2009 includes guarantees and private securities. 15

16 credit to agribusiness* R$ billion Jun/11 Producer Corporate Market Share - % (*) Since 2009 includes guarantees and private securities. 16

17 credit to agribusiness* R$ billion Soy Costs** % Secured 5, Corn 2, Rice 1, ,7% Jun/11 8,1% Weath Extended Unextended (*) Since 2009 includes guarantees and private securities. (**) Amount contracted on crop 2010/2011 R$ million. 17

18 NIM and Risk Adjusted Margin % Q11 NIM Risk Adjusted NIM* (*) Risk Adjusted NIM = Net Financial Margin / Average Earning Assets. 18

19 90 days delinquency % Jun/11 BB BI 19

20 business growth with efficiency thousand Jun/11 Employees Branches Cost to income ratio - % - LTM 20

21 Agenda execution track record positve outlook strategic positioning new fronts 21

22 Positive Outlook worldcup + olimpic games pre-salt infrastructure investments income class migration clean energy rural productivity 22

23 Agenda execution track record positive outlook strategic positioning new fronts 23

24 Strategic Positioning 100% of municipalities until 2015 Fernando de Noronha Banco Postal Banco do Brasil 24

25 Strategic Positioning branch network suports growth % 18.5% % 5.3% 13.1% % 20.8% % 9.2% 55.4% 16.6% % 16.6% 45.0% 56.0% % 11.3% Region s percentage of Brazilian GDP % of Banco do Brasil Network in Terms of Branches 20.5% % Source: IBGE, Ipeadata, Caged, CBIC and Brazilian Central Bank % 25

26 Strategic Positioning BB 2.0 retail remodeling Leblon - RJ Gramado - RS 2Q10 3Q10 4Q10 1Q11 2Q11 Customers (million) Commercial Income* / Customers (R$) Augusta - SP (*) Net Interest Income + Fee Income + Insurance Income 26

27 Strategic Positioning sustainable development Regional Sustainable Development Strategy 1,208 thousand beneficiaries 564 thousand beneficiaries with operations Portfolio balance = R$ 9.4 billion Regional Sustainable Development Microcredit Contracted amount = R$ 91.5 milllion Balance = R$ 63.9 million Fundação Banco do Brasil FBB R$ 665 million own resources invested from 2003 to 2010 R$ million invested in 2010 higher volume of FBB s history R$ 134 million estimated to

28 Agenda execution track record positive outlook strategic positioning novas frentes new fronts 28

29 New Fronts Market capitalization: R$ 78.2 billion (*) Posição: 30/06/

30 Agenda for the future internationalization revenues diversification eficiency and costs control retail remodeling 30

31 Investor Relations Unit SBS - Quadra 1 - Bloco C - Ed. Sede III 7 th floor Brasília (DF) Phone: +55 (61) Fax: +55 (61) bb.com.br ir@bb.com.br