Contents. Page 2 of 45 Banco de Tokyo-Mitsubishi UFJ Brasil S/A. A member of MUFG, a global financial group

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2 Contents About us and our history Mission, vision and values Global bank Human resources Social responsability Risk Management Balance Sheets Statements of income Statements of changes in shareholders equity Statements cash flows - Indirect method Notes to the financial statements Management report Independent auditors report Address and Telephones Page 2 of 45

3 About us and our history The Bank of Tokyo-Mitsubishi UFJ is a financial institution headquartered in Japan, formed by several mergers and acquisitions of financial institutions recognized in Japan and worldwide that have taken place throughout more than 130 years. The bank's history in Brazil began in 1919, when the Japanese subsidiary of Yokohama Specie Bank was established in Rio de Janeiro, which would later become Bank of Tokyo. Mitsubishi Bank had begun operating in Brazil in 1950 through Banco Tozan, created in 1926 to serve the growing demand of coffee. For hundreds of years, the Bank of Tokyo-Mitsubishi UFJ has helped its clients to reach their financial goals. From the start, the organization has maintained a tradition of cultivating excellence in customer relations, with personalized and lasting service. Page 3 of 45

4 Mission, vision and values BTMU Brasil has a solid management that inspires trust and credibility. Our almost 100 years of operating in Brazil are based on values aimed at guaranteeing a strong and lasting relationship with our clients. MISSION To be a foundation of strength, committed to meet the needs of our customers, serving society, and fostering shared and sustainable growth for a better world. VISION Be the world s most trusted financial group. VALUES 1. Integrity and responsibility Strive to be fair, transparent, and honest. Always act responsibly in the best interest of customers and society as a whole, building long-term stakeholder relationships and giving back to our 2. Professionalism and teamwork Respect the diversity of our fellow workers and foster a strong spirit of teamwork. Expect the highest levels of professionalism. 3. Challenge ourselves to grow Adopt a global perspective to anticipate trends and opportunities for growth. Create and sustain a responsive and dynamic workplace where everyone can focus on providing outstanding customer service and embrace new challenges. Page 4 of 45

5 Global bank The Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU), is Japan s premier bank, with a global network spanning more than 40 countries. BTMU offers an extensive scope of commercial and investment banking products and services to businesses, governments, and individuals worldwide. In the Americas, BTMU has offices throughout the United States and in Canada, Mexico, and South America serving mainly corporate clients. BTMU s parent, Mitsubishi UFJ Financial Group, Inc. (MUFG), is the world s third-largest financial group by assets (US$2.8 trillion) and by deposits (US$1.6 trillion), as of September 30, 2011*. MUFG s services include commercial banking, trust banking, securities, credit cards, consumer finance, asset management, and leasing. The Group s operating companies include BTMU, Mitsubishi UFJ Trust and Banking Corporation (Japan s leading trust bank), and Mitsubishi UFJ Securities Holdings Co., Ltd. MUFG s shares trade on the Tokyo, Osaka, Nagoya, and New York (NYSE: MTU) stock exchanges with a market capitalization of US$76 billion as of March 19, In 2008, MUFG acquired 100% of Union Bank ownership, a retail and commercial bank headquartered in San Francisco (United States of America) with operations in California, Illinois, Oregon, Texas, New York and Washington. In the same year, the group acquired shareholding in Morgan Stanley and now holds 22.4% of the company s share. BTMU in Brazil started in 1919 with the establishment of an office of the Yokohama Specie Bank, Ltd., from Japan. Currently, BTMU is represented by the Bank of Tokyo-Mitsubishi UFJ Brasil, a subsidiary of BTMU. BTMU Brasil focus on wholesale banking through its São Paulo and Rio de Janeiro offices. BTMU also owns 2.49% in common shares of Banco Bradesco S.A. Page 5 of 45

6 Human Resources With offices in Brazil for nearly 100 years, BTMU Brasil belongs to one of the largest financial groups in the world. We are a global and multicultural bank that believes in the importance of long-term relations with our clients, partners and employees. Based on all of this tradition and reliability, we account for global values that are found throughout our management: Integrity and responsibility Professionalism and teamwork Challenge ourselves to grow In 2011, we received an injection of capital, expanding our operations in Brazil and beginning a quite substantial process of growth. From 2011 to 2013, we leveraged our employee numbers, with significant investments in human capital, by creating strategic Human Resources management, geared towards the long-term sustainability of the business. Our strategic drivers for personnel management actions include: Education as the basis for individual and bank development Organizational and individual development Talent attraction and retention Compensation and recognition as a source of basic motivation but not the only one Processes and technology (innovation) Internal climate as an evolution agent We continue to expand and invest in the permanent development of our employee, seeking to maximize the potential of each one of them while respecting their differences. That is why we rely on the BTMU Brasil Corporate Academy, a structure that provides education and development actions for the entire employee. We are always looking for professionals and young talents who believe in our values, that have the ability to propose creative solutions, and that find fulfillment in working in a multicultural and high-performance environment. Page 6 of 45

7 Social Responsibility BTMU Brazil shares its greatest asset with the communities where it operates: the talent of its employees! We invite communities and employees to come forward and register social issues in a database that can be resolved through volunteer action. Social issues may have several causes: infrastructure improvement to structures, painting and small refurbishments; cultural; environmental; donations and collection of food, furniture, clothing and others. The actions are chosen by a committee comprised of BTMU Brazil members and are planned and executed by a team of Social Actors who dedicate all of their know-how, competency and desire to contribute to a more just and equal society. This is how the program provides opportunities for employees to play a leading social role while at the same time strengthening the bank connection to communities. We believe that the individual commitment of each employees, along with BTMU Brazil's institutional and financial supports, can work together to reduce current cultural and social differences. In 2012, BTMU Brazil won the Global CSR Award, the biggest international recognition of Corporate Social Responsibility of the Financial Group. The Cinema for All action was chosen as the CSR Activity of the Year by the efforts made in regional social contribution. This award encouraged CSR activities of BTMU Brazil since such prize was the only one granted in the Latin America. Page 7 of 45

8 Risk Management Bank of Tokyo-Mitsubishi UFJ Brasil considers the risk management process to be essential in all of its activities, using it to add value to its business, providing support to planning of its activities and maximizing the use of bank and third-party resources to benefit its shareholders and society as a whole. We also find that adoption of these measures is highly relevant due to the growing complexity of the products and services offered in the market as well as to the globalization of business. That is why BTMU continually enhances its activities related to risk management, applying and joining the best practices in the international financial market to local practices. The organizational structure for risk management at BTMU relies on driving participation, through executive committees that operate under the chief executive. These committees establish the policies and guidelines for monitoring risks. There is also an independent Risk Management business area, which is tasked with monitoring credit, market, liquidity and operational risks in an integrated manner, demonstrating the institution s commitment to this topic and ensuring appropriate management that also meets regulatory requirements and the concepts contained in the Basel II Accord. Page 8 of 45

9 Credit Risk BTMU defines credit risk as the chance that losses could occur associated with non-compliance, by the borrower or counterparty, with the respective financial obligations in the agreements made, as well as with devaluation of the credit contract as a result of a downgrade in the borrower s risk rating, with reduced gains or payouts, with advantages granted in renegotiation and with recovery costs. Credit risk is monitored, controlled and supervised by an independent department in the business area the Risk Management credit risk control group, which uses systems to control and monitor adherence to the credit and credit risks policy, looking to identify, measure, control and mitigate the credit risks associated with each bank unit. The credit risk management structure relies on driving participation by BTMU, through decision-making by credit committees aimed at continual monitoring and mitigation of credit risks. This structure is supported by computerized systems aimed at monitoring credit operations, their guarantees and the conditions for limits granted to our clients.the credit risk management structure has an executive board responsible for it, created based on Resolution no issued by Brazil s National Monetary Council (CMN) on April 30, Market Risk BTMU defines market risk as the chance of losses occurring as a result of the variation of risk factors such as interest rates, exchange rates, indexes and prices. BTMU has adopted a very conservative policy and exposure to market risk factors. Control of each of these risk factors is monitored, controlled and supervise by an independent department of the business area Risk Management area Market Risk Control Group, which uses systems to effectively control market risk globally, in order to prevent reduction of positions, when necessary. The market risk management structure relies on driving participation by BTMU through the Asset Liability Management Committee (ALM), through which strategies and guidelines are established for management, monitoring and follow-up of market risk. The BTMU market risk policy consists of daily monitoring or positions subject to market risk and of the respective limits established, employing Value at Risk (VaR) methodologies, Stress Testing and Sensitivity Analysis, in addition to Stop Loss and Financial Exposure limits. The market risk management structure was created based on Brazil s National Monetary Council (CMN) Resolution no , dated June 26, For oversight of market risk management activities, BTMU maintains: Page 9 of 45

10 a) Policies that are periodically revised and clear strategies on market risks b) Processes and systems that allow for timely monitoring of BTMU operations regarding market risk reports that are submitted to the BTMU board c) Control of positions and results for financial portfolios/instruments, vis-à-vis local internal limits or limits defined by The Bank of Tokyo-Mitsubishi UFJ, Ltd (controlling shareholder) for Headquarters d) Market risk measurement models for both routine scenarios and stress scenarios e) Adoption of stop-loss limits for Trading portfolios f) Monitoring of operational limits established by the Brazilian central bank g) Formal process for implementation of new products and operations h) Review every six months of local internal limits. Liquidity Risk BTMU defines liquidity risk as risk arising from the chance that the institution will not be capable of efficiently honoring its expected and unexpected obligations, both today and in the future, including those arising from connections with guarantees, without affecting its day to day operations and without resulting in significant losses. It is also defined as the chance that the institution will be unable to negotiate the market price for a position, due to its large size in relation to the normally transacted volume or due to any discontinuity in the market. BTMU has adopted a conservative policy of maintaining liquidity and control levels. Monitoring and supervising are done by an independent department of the business area the Risk Management area Market Risk Control Group, which effectively and globally controls liquidity risk, so as to prevent any financial incapacity at BTMU. The liquidity risk management structure relies on driving participation by BTMU through the Asset Liability Management Committee (ALM), through which strategies and guidelines are established for management, monitoring and follow-up of liquidity risk. The liquidity risk management structure was created based on Brazil s National Monetary Council (CMN) Resolution no , dated May 24, For oversight of liquidity risk management activities, BTMU maintains: a) Policies that are reviewed periodically and strategies that establish operational limits and procedures aimed at maintaining exposure to liquidity risk at the levels established b) Processes to control exposure for different time horizons, intraday and for each currency, allowing for monitoring of BTMU operations in a timely manner and of liquidity risk reports, which are submitted directly to the BTMU board c) Fund-raising policies and strategies that provide for diversification of sources of resources and expiration dates d) Periodically revised liquidity contingency plan e) Periodically execution of stress tests, with short and long term, idiosyncratic and systemic scenarios Page 10 of 45

11 f) Assessment of liquidity risk as part of the approval of new products g) Review every six months of local limits. Operational Risk BTMU defines operational risk as the chance for losses to occur as a result of error, deficiency, or inadequacy of internal processes, personnel and systems, or of outside events. Management of operational risk is done by an independent department of the business area Risk Management area Operational Risk Control Group. To gain efficiency in operational risk management, the Institution has been enhancing its identification and risk assessment tools and striving to implement controls that are effectively contributing to better management of operational risk. The operational risk management structure relies on driving participation from BTMU through the operational risk management committee and on the area at every level of the organization, the main parties responsible for identifying, monitoring, controlling and mitigating risks, in order to incorporate the concept of operational risk management into the day to day of the business. This structure is supported by a computerized system which covers the risks inherent to processes, according to the eight categories defined by Brazilian National Monetary Council (CMN) Resolution no , dated June 29, Some activities related to operational risk management are performed by other areas, such as: legal risks management of third-party contracts compliance with standards and regulations combat against money laundering inappropriate practices for clients, products and services and tangible assets. These departments are responsible for drafting, disseminating and revising the respective policies and procedures, as well as for drafting reports of these activities for upper management. Regarding quantitative measurement of operational risk, BTMU as identified loss events related to risks, standardizing information and forming a database of operational losses, pursuant to the determinations of the controlling shareholder (headquarters), which are also in line with the needs of local regulations. These loss events are assessed individually each time they happen and plans of action are established as preventive measures for mitigating the operational risks presented. Page 11 of 45

12 Balance sheets as of December 31, 2013 and 2012 (In thousands of Reais) Assets Liabilities Current assets Current liabilities Cash and cash equivalents Deposits Interbank funds applied Demand deposits Time deposits Money market Interbank deposits Money market repurchase commitments Foreign currency Own portfolio Securities and derivative Third party portfolio financial instruments Interbank accounts Own portfolio Subject to guarantees provided Collections in transit Derivative financial instruments Interbranch accounts Interbank Relations Third party funds in transit Restricted Depósits: Brazilian Central Bank Borrowings Correspondents Foreign currency borrowings Loans Local repass borrowings - government institutions Loans: Private sector BNDES Allowance for loan losses (9.578) (6.506) Finame Other government institutions Other receivables Foreing currency repass borrowings Foreign exchange portfolio Income receivable Foreign currency repass borrowings Securities clearing accounts Other Derivative financial instruments Allowance for other loan losses (2.839) (1.233) Derivative financial instruments Other assets Other liabilities Other assets Prepaid expenses Tax collection Foreign exchange portfolio Non-current assets Due to shareholders Taxes payable Interbank funds applied Securities clearing accounts Provision for contingent liabilities Interbank deposits Other Non-current liabilities Securities and derivative financial instruments Borrowings Own portfolio Linked to repurchase commitments Foreign currency borrowings Subject to guarantees provided Derivative financial instruments Local repass borrowings - government institutions Loans BNDES Loans: Finame Private sector Allowance for loan losses (2.247) (880) Foreign currency repass borrowings Other receivables Foreign currency repass borrowings Debtors for guarantee deposits Derivative financial instruments Other Derivative financial instruments Other assets Deferred income Prepaid expenses Shareholders' equity Permanent assets Capital Investments Other investments Provision for losses (195) (195) Capital - Domestic Capital - Foreign Fixed assets Profit reserves Equity valuation adjustments Property for use Treasury shares (124) 256 Other fixed assets (3.906) (3.906) Accumulated depreciation (16.296) (12.851) Intangible assets Intangibles assets Accumulated amortization (10.845) (7.032) Deferred charges Organization and expansion expenditures Accumulated amortization (5.640) (5.516) Total assets Total liabilities and shareholders' equity See the accompanying notes to the financial statements Page 12 of 45

13 Statements of income Semesters ended December 31, 2013 and 2012 (In thousands of Reais except for net income/loss per share) 2º Semester Year Financial operations income Loans Securities income Income from derivative financial instruments Income from foreign exchange operations Financial operations expenses ( ) ( ) ( ) Funds obtained in the open market (89.779) ( ) (70.485) Borrowings and repass borrowings (66.369) ( ) (75.483) Recording of allowance for loan losses (4.736) (6.045) (2.378) Gross profit from financial operations Other operating income (expenses) (42.160) ( ) ( ) Service fee income Income from bank charges Personnel expenses (45.938) (86.120) (70.763) Other administrative expenses (27.161) (49.661) (40.545) Tax expenses (4.473) (8.172) (5.960) Other operating income Other operating expenses (16.430) (21.560) (29.971) Operating result Non-operating result (52) (51) 17 Income before taxes Income and social contribution taxes (26.179) (38.683) (15.271) Provision for income tax (18.435) (18.435) (15.064) Provision for social contribution (11.150) (11.150) (9.076) Deferred tax assets/liabilities - Taxes and Contributions (9.098) Net income for the semester Number of outstanding shares (per lot of a thousand shares) Net income per lot of a thousand shares - R$ 5,97 10,43 6,75 See the accompanying notes to the financial statements Page 13 of 45

14 Statements of changes in shareholders' equity Semesters ended December 31, 2013 and 2012 (In thousands of Reais) Capital reserves Profit reserves Premium on Other Equity the subscription capital valuation Retained Treasury Capital of shares reserves Legal Statutory adjustments earnings shares Total Balances at December 31, 2011 Equity valuation adjustment Acquisition of shares issued by the Bank Net income for the semester (3.771) (104) - - (104) (135) (135) Profit distribution: Legal reserve (1.461) - - Dividends (1.744) - (1.744) Transfer to statutory reserve Balances at December 31, 2012 Changes in the semester (26.024) (3.906) (104) - (135) Balances at December 31, (3.906) Equity valuation adjustment (380) - - (380) Reversal of dividends proposed in prior years Net income for the semester Profit distribution: Legal reserve (2.259) - - Dividends (R$ 0,26575 per lot of a shares) (2.617) - (2.617) Transfer to statutory reserve Balances at December 31, 2013 Changes in the semester (40.293) (124) - (3.906) (380) Page 14 of 45

15 Statement of cash flows - Indirect method Semesters ended December 31, 2013 and 2012 (In thousands of Reais) 2º Semester Year Cash provided by (used in) operating activities Net income for the semester Net income adjustments: (10.562) (1.598) Recording of allowance for doubtful loans Recording / (Reversal) of provision for other receivable (1.389) Depreciation and amortization Recording of civil, labor and tax provisions (1.203) Recording / (Reversal) of provision actuarial (18.437) (18.437) Variation in deferred income Adjusted net income Changes in operating assets ( ) ( ) (Increase) / decrease in interbank funds applied (16.007) (35.752) (Increase) in securities ( ) ( ) (Increase) / decrease in interbank and interbranch accounts (20.432) (39.946) (Increase) in loans ( ) ( ) ( ) (Increase) in other assets and other receivables ( ) Changes in operating liabilities: ( ) Increase in deposits Increase in money market repurchase commitments ( ) (78.508) (Decrease) / increase in borrowings and repass borrowings (31.118) Increase in derivative financial instruments (net of assets) Increase in other liabilities ( ) ( ) Cash used in investment activities (12.464) (22.669) (21.303) Disposal of fixed assets Acquisition of fixed assets (14.096) (32.686) (38.316) Investment in intangible assets (790) (1.525) (4.411) Cash used in financing activities (1.149) (2.886) (1.865) Dividends (1.149) (2.893) (1.730) Acquisition of shares issued by the Bank - - (135) Reversal of dividends proposed in prior years Net increase (decrease) in cash and cash equivalents Statement of changes in cash and cash equivalents Cash and cash equivalents at the beginning of the semester Cash and cash equivalents at the end of the semester Increase/(decrease) in cash and cash equivalents See the accompanying notes to the financial statements. Page 15 of 45

16 Notes to the financial statements (In thousands of Reais, except when otherwise indicated) 1 Operations The Bank develops all types of authorized bank activities and operates as a commercial bank, including the following operations: Trade, Investment, Credit, Financing and Investment and Foreign Exchange Portfolios. 2 Presentation of the financial statements The financial statements were prepared based on the accounting guidelines issued by the Brazilian Corporate Law, and the rules and instructions of the National Monetary Council (CMN), Central Bank of Brazil and Committee for Accounting Pronouncements (CPC), when applicable. The presentation of these financial statements is in conformity with the Chart of Accounts for Institutions of the National Financial System (COSIF), concluded on 01/23/2014 and approved for disclosure on 03/14/ Description of significant accounting practices Summary of significant accounting practices a. Statement of income Income and expenses are recorded on an accrual basis. b. Accounting estimates The preparation of the financial statements in accordance with accounting practices adopted in Brazil applicable to institutions authorized to operate by the Central Bank of Brazil requires that Management uses its judgment in determining and recording accounting estimates. Significant assets and liabilities subject to these estimates and assumptions include the residual value of fixed assets, the allowance for doubtful loans, the provision for deferred income tax assets, the provision for contingencies, the provision for actuarial obligation and the valuation of derivative financial instruments. The actual amounts required to settle these transactions may be different from the amounts estimated due to the lack of precision inherent in the estimation process. These estimates are reviewed at least once a year, seeking to establish values which more precisely reflect future settlement values of the assets and liabilities considered. c. Current and noncurrent assets and liabilities These assets and liabilities are recognized at realizable and/or payable amounts, including accrued and/or incurred income, charges, monetary and exchange variations earned and/or incurred up to the balance sheet date, calculated on a daily pro rata basis, and, when applicable, the effect of the adjustments to reduce the cost of assets to market and/or realizable values. Realizable and payable balances falling due within 12 months are classified in current assets and liabilities, respectively. All other assets and liabilities are considered as noncurrent. d. Securities and derivative financial instruments The securities portfolios and derivative financial instruments are recognized in accordance with the following classification and accounting measurement criteria: Securities Trading securities, Page 16 of 45

17 Securities available for sale and Securities held to maturity. Classified in the category trading securities, are securities acquired for the purpose of being actively and frequently traded; in the category securities available for sale, those that do not classify in the other categories described above; and in the category securities held to maturity, the securities acquired and held with the intention and financial ability to be held by the Bank as part of its portfolio until their maturity date. Securities classified in the categories trading securities and securities available for sale above are recognized at their purchase price plus accrued earnings up to the balance sheet date, which are calculated on a daily pro rata basis, and adjusted to their market value, with the corresponding entry for the valuation adjustment being reflected in: (1) the appropriate income or expense account in the statements of income, when relating to the securities classified as trading securities ; and (2) a specific account in shareholders equity, when relating to securities classified as securities available for sale. The securities classified as held to maturity are recognized at their purchase price plus accrued earnings up to the balance sheet date, calculated on a daily pro rata basis, which are recorded in the statements of income, and an allowance for losses is recorded whenever there is a permanent loss in the realizable value of these securities. Derivative financial instruments Derivative financial instruments are recorded at market value, with the increase or decrease arising from the adjustment to market value being recorded in a separate income or expense account, except for the derivative instruments designated as part of a hedge structure, which can be classified as follows: I. Market risk hedge II. Cash flow hedge The derivative financial instruments destined for hedge purposes and the respective hedge objects are measured at market value, observing the following: For those classified in Category I, the increase or decrease in market value is recorded with a corresponding entry in the appropriate income or expense account, in the statements of income; and For those classified in Category II, the increase or decrease in market value is recorded with a corresponding entry in a shareholders equity account. e. Loans and allowance for loan losses Loans are classified according to the Management s judgment, based on analyses of the outstanding loan transactions (overdue and falling due), past experience, future expectations, specific portfolio risks and the risk assessment policy of Management, regarding the parameters established by the National Monetary Council Resolution 2,682/99, which requires the periodic analysis of the portfolio and its classification in nine levels, which of AA represents minimum risk and H represents loss. Revenues from loans overdue up to 60 days, irrespective of its risk level, will only be recognized as income when effectively received. The allowance for loan losses, considered sufficient by the Management, meets the minimum requisite established by the aforementioned Resolution, as per Note 7c. As renegotiation the bank considers debt composition, extension, renovation, new operation for partial or full settlement of the previous operation or any other type of agreement involving the change in maturity or payment terms as originally agreed, in accordance with the CMN Resolution 2,682/99. Page 17 of 45

18 f. Permanent assets They are recognized at the acquisition cost in combination with the following aspects: Depreciation of property for use is computed using the straight-line method at the following annual rates: properties for use - buildings - 4%; machinery and equipment, security and communication systems - 10%; and data processing systems and transport - 20%. Amortization of deferred assets is calculated using the straight-line method, up to ten years, or based on contractual terms in the case of leased asset improvements. Law 11,638 eliminated the account of Deferred Assets. The National Monetary Council authorized Financial Institutions to maintain the balance as of December 31, 2008 up to its complete amortization to write-off. Financial Institutions shall register in Deferred Asset, only preoperational expenses and restructuring costs which will, effectively, increase the results of more than one subsequent semester and do not represent only reduction of costs or increase in operational efficiency. Linking expenses and expenditure recorded in Deferred Assets with the increase of income of more than one fiscal year was based on a technical study, consistent with the information used in other operational reports. Intangible assets - they correspond to the vested rights in intangible assets for the maintenance of the entity or exercised for this purpose. The intangible assets with defined useful lives are usually amortized on a straight-line basis over their estimated useful economic lives. g. Reduction in the recoverable value of non-financial assets ( Impairment ) A loss due to impairment is recognized if the carrying amount of an asset, or of its cash generating unit, exceeds its recoverable value. A cash generating unit is the smallest identifiable group of assets that substantially generates cash flows independently of other assets and groups. Losses due to impairment are recognized in the income statement. The values of non-financial assets are reviewed once a year at least in order to determine whether there is any indication of loss due to impairment. h. Provision for income and social contribution taxes The provision for income tax is recorded at the rate of 15% of taxable income, plus an additional 10% on annual taxable income exceeding R$ 240 (six-month-period - R$ 120), and the provision for social contribution on net income is recorded at the rate of 15% on adjusted income before income tax. The accounting policy for recording income and social contribution tax credits on temporary difference are described in Note 20. Deferred tax liabilities are recognized for all taxable temporary differences. 4 Cash and cash equivalents composition Cash and cash equivalents presented on the statements of cash flows are composed as follows: At the beginning of the year 1,887,865 1,591,168 Cash 5,262 5,016 Interbank deposits (*) 1,882,603 1,586,152 At the end of the year 2,460,909 1,887,865 Page 18 of 45

19 Cash 7,789 5,262 Interbank deposits (*) 2,453,120 1,882,603 - Cash and cash equivalents Securities (*) 573, ,697 (*) Operations whose maturity at the time of acquisition was up to 90 days. 5 Interbank funds applied a. Money market From 91 to 365 days Over 365 days (*) Total Total Own portfolio LFT 355, , ,021 LTN 285,998 1,600,000 1,885, ,989 NTN-B , ,637 1,600,000 2,241,637 1,616,010 Financed portfolio LFT 148, , ,008 LTN , , , ,018 Total 790,142 1,600,000 2,390,142 1,843,028 (*) They are classified in Current Assets in the Balance Sheet, as it refers to maturity of the operation and not to the maturity of the underlying collateral, less than 2 days. b. Interbank deposits Due up to 30 days From 31 to 180 days 54,791 16,112 From 181 to 365 days Over 365 days - 3,346 Total 55,469 19,717 Page 19 of 45

20 c. Foreign currency Due up to 30 days 62,978 39,575 Total 62,978 39,575 6 Securities Categories Up to 3 months From 3 to 12 months Over 12 months Total Total Trading securities ,352 50,352 93,269 Securities available for sale 299, , ,215 1,140, ,724 Total 299, , ,567 1,191, ,993 Categories Curve value Market value Adjustment Market value Trading securities 50,317 50, ,269 Securities available for sale 1,145,004 1,140,834 (4,170) 874,724 Total 1,195,321 1,191,186 (4,135) 967, Curve value Market value Adjustment Market value Types of Securities National Treasury Bill 1,058,627 1,054,489 (4.138) 966,647 Financial Treasury Bill 136, , ,346 Total 1,195,321 1,191,186 (4,135) 967,993 For securities classified as "held for trading" and "available for sale", the measurement at market value is performed by discounting the future flow at present value using the interest rate curves built by an area independent of the business area which follows its own methodology, and leading practices of the market, in accordance with the specific characteristics of each security, based primarily on data published by the Stock Exchange, Commodities and Futures Exchange - BM&F BOVESPA and the National Association of Investment Banks and Security Dealers - ANBIMA. The mark-to-market adjustments of securities classified as available for sale are recognized in a special account in the shareholders equity, net of tax effects. Securities classified as "held for trading" are measured at fair value with a corresponding entry in income and are presented in the balance sheet as current assets, irrespective of their maturity. Government bonds are kept in custody with the Special System for Settlement and Custody - SELIC. As per Note 3d, the Bank recorded mark-to-market adjustments of securities for the year ended December 31, 2013, loss of which deriving from this assessment totaled R$124 ( R$256 gain), net of tax effects. The amount of R$4,011 (2012 R$5,466) was recorded in the equity account deriving from the use of Hedge Accounting. Page 20 of 45

21 7 Loans a. Analysis of the total loan portfolio by activity sector Loans: Rural 12,103 7,559 Industry 314, ,816 Commerce 220,463 28,081 Services 405, ,825 Individuals Other receivables - Foreign exchange portfolio: 953, ,354 Advances on exchange contracts and income receivable: Industry 330, ,024 Commerce 18,184 14,574 Services - 98, , ,151 Total 1,301, ,505 b. Composition of the loan portfolio by range of maturity of transactions Falling due: From 1 to 180 days 584, ,863 From 181 to 365 days 572, ,168 Over 365 days 144, ,474 1,301, ,505 Overdue (Contracts/Installments): Up to 90 days 1 - Total 1,301, ,505 c. Composition of the provision per risk levels In accordance with the CMN Resolution 2682/99, presented below is the analysis of the loan portfolio and other credits (foreign exchange portfolio - advances on exchange contracts) and the related risk levels: Page 21 of 45

22 Total loans 2013 Risk level % Minimum provision required Normal course loan Loans in arrears Total loans Minimum provision required Total provision Effective % of provision AA - 865, ,432-1, A ,898-4, B , ,405 3,764 7, C ,156-41,156 1,235 3, D , ,794 1,379 2, ,301, ,301,685 6,402 14,664 Total loans 2012 Risk level % Minimum provision required Normal course loan Loans in arrears Total loans Minimum provision required Total provision Effective % of provision Risk level AA - 539, , A , ,639 1,143 1, B ,461 98, , C ,698 32, , D ,492 9, , , ,505 4,058 8,619 2nd. Semester Loans renegotiated for the period 98, , ,136 Renegotiated loans are basically composed of working capital renewals. During the years ended December 31, 2013 and 2012, there were no write-offs to loss or loan recoveries prior written off as loss. The provision recorded by the Bank is bigger than the minimum provision required by BACEN. This is so because the Bank adopts the provision criterion established by the Headquarter (The Bank of Tokyo-Mitsubishi UFJ, Ltd.), which reflects the loss forecast of Management. Page 22 of 45

23 d. Concentration of the largest debtors 10 largest clients Balance Portfolio % Provisions Balance Portfolio % Provisions 757,476 58% 6, ,060 67% 3,643 Other clients 544,209 42% 7, ,445 33% 4,976 1,301, % 14, , % 8,619 e. Changes in provision Changes in provision for allowance for doubtful loans were the following during the semester: 2nd. Semester Year Opening balance 9,928 8,619 6,241 Provision recognition 7,272 12,304 11,127 Provision reversal (2,536) (6,259) (8,749) Closing balance 14,664 14,664 8,619 % of provision on the loans portfolio Other receivables - Other Advances and prepayment of salaries Tax credits from temporary differences (Note 20) 13,616 13,874 Taxes to offset 18,915 26,378 Sundry debtors Domestic Payments reimbursable 10 - Other Total 32,790 40,554 9 Permanent assets a. Property and equipment in use Depreciation rate Cost Accumulated depreciation Net value (%) p.a Land - 1,416 1, ,416 1,416 Buildings 4 27,229 19,879 9,545 7,485 17,684 12,394 Facilities, Machinery and equipment in use 10 6,941 4,737 1,344 1,117 5,597 3,620 Data processing system 20 6,694 6,574 3,817 3,216 2,877 3,358 Transport system 20 1,075 1, Security system 10 2,938 1, , Communication system 10 1,296 1, Page 23 of 45

24 Depreciation rate Cost Accumulated depreciation Net value (%) p.a Fixed asset in progress (*) - 14,672 5, ,672 5,518 62,261 41,549 16,296 12,851 45,965 28,698 (*) Refers to expenditures for expansion projects. b. Intangible assets Amortization rate Cost Accumulated amortization Net value p.a. (%) Expenditures on software acquisitions and development 20(*) 19,975 18,450 10,845 7,032 9,130 11,418 Total 19,975 18,450 10,845 7,032 9,130 11,418 (*) Development of new systems. c. Deferred assets Amortization rate Cost Accumulated amortization Net value p.a. (%) Expenditures on software acquisitions and development 20 4,667 4,667 4,667 4, Branches and facilities improvements 20 1,036 1, Total 5,703 5,703 5,640 5, Related party transactions According to the Bank, related parties are defined as the Headquarters and branches, parent companies and shareholders, companies related to them, the Bank s Management and other Management key staff and their relatives Assets Revenues Assets Revenues (liabilities) (expenses) (liabilities) (expenses) Cash in foreign currency 7,421 (9,441) 5,021 (21,808) The Bank of Tokyo-Mitsubishi UFJ, Ltd New York 287 2,585 Page 24 of 45

25 Assets Revenues Assets Revenues (liabilities) (expenses) (liabilities) (expenses) The Bank of Tokyo-Mitsubishi UFJ, Ltd - London 2,263-1,410 - The Bank of Tokyo-Mitsubishi UFJ, Ltd - Tokyo 4,862-1,026 - The Bank of Tokyo-Mitsubishi UFJ, Ltd - Mexico Interest - 6, Exchange variation - (15,922) - (21,808) Interbank funds applied in foreign currencies 62,978 9,082 39,575 2,014 The Bank of Tokyo-Mitsubishi UFJ, Ltd - New York 62,978 9,082 39,575 2,014 - Interest Exchange variation - 9,053-1,977 Demand deposits (4,190) - (3,837) - The Bank of Tokyo-Mitsubishi UFJ, Ltd - Tokyo (4,190) - (3,837) - Borrowings and repass borrowings (1,428,974) (159,997) (1,062,518) (69,517) The Bank of Tokyo-Mitsubishi UFJ, Ltd - New York (1,428,974) (159,997) (1,062,518) (69,517) - Interest - (96,731) - (10,122) - Exchange variation - (63,266) - (59,395) Swaps 5,370 4,166 (2,633) (3,174) The Bank of Tokyo-Mitsubishi UFJ, Ltd New York 5,370 4,166 (2,633) (3,174) Services Payments and Reception - 13,885 - (5,169) The Bank of Tokyo-Mitsubishi UFJ, Ltd - New York - 12,555 - (5,169) The Bank of Tokyo-Mitsubishi UFJ, Ltd Leasing and Finance - 1, The Bank of Tokyo-Mitsubishi UFJ, Ltd Tokyo - (51) - - Other liabilities - (510) - - The Bank of Tokyo-Mitsubishi UFJ, Ltd London - (510) - - a. Remuneration of the Management s key personnel The maximum remuneration for the Executive Board which was established at an Extraordinary General Shareholders Meeting held at July 05, 2013 determined the maximum of R$10,234 to be distributed for directors. 2nd. Semester Year Fixed remuneration 2,385 4,265 2,958 Variable remuneration 1,273 2,783 2,573 Total 3,658 7,048 5,531 Page 25 of 45

26 The variable remuneration payment to the Management is in compliance with the National Monetary Council (CMN) Resolution 3,921, of 11/25/2010, and is deferred over the minimum period of three months, and established as a result of the Management risks and activity. The number of shares held by the Executive Board is 10,618 shares, which account for % of the total number of shares. The Bank neither has post-employment benefits nor long-term benefits due to employment termination agreements for the Management s key personnel. b. Other information The Bank, in accordance with the legislation in force, cannot grant loans or advances: Neither to executive officers, nor to their respective spouses and relatives up to the 2 nd. degree; Individuals or legal entities that hold an equity interest higher than 10% of the Bank s capital; Legal entities, capital of which the Bank, or any of the executive officers or managers of the institution itself, as well as their spouses and respective relatives up to the 2 nd. degree, hold equity interest higher than 10%; and The Bank s majority shareholder. Accordingly, neither loans nor advances are performed by the Bank to any of the entities and people listed above.note: The Bank does not have Administrative, Tax or Advisory boards and similar ones. 11 Deposits Without maturity Due up to 3 months 2013 From 3 to 12 months From 1 to 3 years From 3 to 5 years Total Demand 149, ,849 deposits Time - 622, , ,232 43,694 1,889,855 deposits (*) Total 149, , , ,232 43,694 2,039,704 Without maturity Due up to 3 months 2012 From 3 to 12 months From 1to 3 months From 3 to 5 years Total Demand deposits 150, ,122 Time deposits (*) - 214, , ,802 46,896 1,206,195 Total 150, , , ,802 46,896 1,356,317 (*) In the balance sheets classified as current liabilities due to their liquidity characteristics. Page 26 of 45

27 12 Borrowings and repass borrowings Borrowings and repass borrowings refer to funds obtained in foreign currency from the Bank of Tokyo-Mitsubishi UFJ, Ltd., for the financing of foreign trade operations with maturity up to January 2015, in the amount of R$337,825 ( R$337,288) and for external funding in accordance with Resolution 3,844 with maturities up to June 2018 in the amount of R$ 1,091,149 ( R$730,299) and are corrected using the foreign exchange rate variation plus spread, and domestic repass borrowings due up to June 2020 in the amount of R$68,993 ( R$54,539). 13 Foreign exchange portfolio a. Other receivables - Assets Forward foreign currency purchased 1,034,472 1,102,868 Rights on sales of foreign exchange 728, ,758 Credit balance of advances received (12,672) (11,616) Income receivable from advances granted 1,743 3,165 Exchange and forward papers in foreign currency Total 1,751,703 1,921,653 b. Other obligations - Liabilities Forward foreign currency sold Foreign exchange acquisition Balance from advances on export contracts ( ) ( ) Unearned income from advances granted - 5 Total Taxes payable Description Provision for income and social contribution taxes 29,113 23,997 Taxes and contributions on third party services Taxes and contributions on payroll 2,671 5,708 Other taxes payable 523 1,613 Provision for deferred income tax (Note 20) 15,554 6,968 Provision for tax risks (Note 15) 54,642 47,062 Total 102,818 85,627 Page 27 of 45

28 15 Assets and liabilities related to civil, labor and tax contingencies The provisions for contingent and tax liabilities are recognized in the financial statements as Other liabilities - Tax and social security when, based on the opinion of legal counsel, an unfavorable outcome for a judicial or administrative proceeding is regarded as probable, generating the probable disbursement of funds to settle the obligations, and when the amounts involved may be estimated with a reasonable level of certainty, regardless of whether judicial deposits are required or not. Legal obligations arise from lawsuits related to tax obligations, whose legality or constitutionality is being challenged, and which, regardless of the evaluation of the likelihood of a favorable outcome, have their amounts fully recognized in the financial statements. The deposits in court are recorded in the account Other receivable - Debtors for Guarantee Deposits Provision for contingent liabilities (iii) Opening balance Additions to the Used/ Closing Deposits Description provision Reversal balance in court (iv) Civil provision 6,396 4,978-11, Labor provision 4,205 5,521 2,638 7, Other liabilities (v) 3,425 3,233 3,020 3,638-14,026 13,732 5,658 22,100 1,323 Provision for tax risks Federal 46,734 10,890 3,507 54,117 87,102 Income and social contribution taxes (i) 19, ,350 18,520 51,844 Cofins (ii) 27,329 10,015 1,918 35,426 34,660 Other taxes Municipal ,775 Total 47,062 11,235 3,655 54, ,877 Overall total 61,088 24,967 9,313 76, , Provision for contingent liabilities (iii) Additions Opening to the Used/ Closing Deposits Description balance provision Reversal Balance in court (iv) Civil provision 5, , Page 28 of 45