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1 - VIFIN Ingl s100% of municipalities until 2015 Strategic Positioning Banking Alternative Municipalities Only Banco Postal 2,170 Only BB 69 Banco Postal + BB 3,101 None 225 Total

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Page 1: 1 - VIFIN Ingl s100% of municipalities until 2015 Strategic Positioning Banking Alternative Municipalities Only Banco Postal 2,170 Only BB 69 Banco Postal + BB 3,101 None 225 Total
Page 2: 1 - VIFIN Ingl s100% of municipalities until 2015 Strategic Positioning Banking Alternative Municipalities Only Banco Postal 2,170 Only BB 69 Banco Postal + BB 3,101 None 225 Total

Disclaimer

2

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.

Page 3: 1 - VIFIN Ingl s100% of municipalities until 2015 Strategic Positioning Banking Alternative Municipalities Only Banco Postal 2,170 Only BB 69 Banco Postal + BB 3,101 None 225 Total

3

ex e c u tio n tra c k re c o rd po s itiv e ou tlo o k

s tra te g ic po s itio n in g ne w fro n ts

Agenda

Page 4: 1 - VIFIN Ingl s100% of municipalities until 2015 Strategic Positioning Banking Alternative Municipalities Only Banco Postal 2,170 Only BB 69 Banco Postal + BB 3,101 None 225 Total

histórico de execuçãoexecution track record

4

po s itiv e ou tlo o k

s tra te g ic po s itio n in g ne w fro n ts

Agenda

Page 5: 1 - VIFIN Ingl s100% of municipalities until 2015 Strategic Positioning Banking Alternative Municipalities Only Banco Postal 2,170 Only BB 69 Banco Postal + BB 3,101 None 225 Total

Public Offering – free float from 6.9% to 14.8%

Public Offering - R$ 9.8 billion / free float - 30.4%

Level 1 ADR

* Brazilian government program to strenghten Federal Owned Financial Institutions

2001

2002

2006

2006

2007

2009

2009

2010

5

governance improvements

Financial statements in international standards

Public Offering - free float from 14.8% to 21.7%

“Novo Mercado” Bovespa - Special Listing Segment

Conversion of preferred shares into common shares

PFIFF*: corporate governance improvements aimingadhesion to Novo Mercado

Execution Track Record

Page 6: 1 - VIFIN Ingl s100% of municipalities until 2015 Strategic Positioning Banking Alternative Municipalities Only Banco Postal 2,170 Only BB 69 Banco Postal + BB 3,101 None 225 Total

• BBAS3 – 6th most negotiated share / 2nd most traded among Brazilian Banks

• Average volume traded in 2011 rose 840% over same period of 2006

• Stake on IBOVESPA increased from 0.9% (jun/06) to 3.1% (may/11)

• Stock performance better than peers

• BBAS3 – 6th most negotiated share / 2nd most traded among Brazilian Banks

• Average volume traded in 2011 rose 840% over same period of 2006

• Stake on IBOVESPA increased from 0.9% (jun/06) to 3.1% (may/11)

• Stock performance better than peers 6

5 years on “Novo Mercado”

Execution Track Record

BBAS3 BBDC4 ITUB4 IBOV SANB11

May 2006

May 2011

Page 7: 1 - VIFIN Ingl s100% of municipalities until 2015 Strategic Positioning Banking Alternative Municipalities Only Banco Postal 2,170 Only BB 69 Banco Postal + BB 3,101 None 225 Total

7

Execution Track Record

Expansion of the service network in São Paulo and the leadership in other regions

Retail leadership

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

commitments and strategies

Page 8: 1 - VIFIN Ingl s100% of municipalities until 2015 Strategic Positioning Banking Alternative Municipalities Only Banco Postal 2,170 Only BB 69 Banco Postal + BB 3,101 None 225 Total

R$ billion

8

Execution Track Record

largest bank in Brazil

Total Deposits

Mkt Share1Q11 (%)

2006 1Q11 CAGR %

20.8296.4 866.6 28.5

23.7158.8 381.2 22.8

19.5137.7 397.5 28.1

22.0182.7 407.5 20.7

(1) Includes guarantees and private secuirities. Market share of domestic portfolio.

25.73,969 5,103 6.1

Total Assets

Credit (1)

Asset Management

Branch Network

Mkt Share2006 (%)

16.8

21.4

16.5

19.1

22.7

Page 9: 1 - VIFIN Ingl s100% of municipalities until 2015 Strategic Positioning Banking Alternative Municipalities Only Banco Postal 2,170 Only BB 69 Banco Postal + BB 3,101 None 225 Total

R$ billion

net income

Execution Track Record

9

6.05.1

8.8

10.1

11.7

2.42.9

3.7

5.96.7

8.5

10.7

2.12.9

32.1

22.5

32.5 30.727.0 28.0

24.9

19.5

26.1

24.7 25.8 24.6 24.2 24.8

2006 2007 2008 2009 2010 1Q10 1Q11

Net Income Recurring Net Income ROE - % Recurring ROE - %

Page 10: 1 - VIFIN Ingl s100% of municipalities until 2015 Strategic Positioning Banking Alternative Municipalities Only Banco Postal 2,170 Only BB 69 Banco Postal + BB 3,101 None 225 Total

10

R$ billion

assets

Execution Track Record

296.4367.2

521.3

708.5

811.2866.6

16.8 15.6

17.2

22.0 20.8 20.9

2006 2007 2008 2009 2010 Mar/11

Market Share - %

Page 11: 1 - VIFIN Ingl s100% of municipalities until 2015 Strategic Positioning Banking Alternative Municipalities Only Banco Postal 2,170 Only BB 69 Banco Postal + BB 3,101 None 225 Total

11

R$ billion

deposits

Execution Track Record

158.8188.3

270.8

337.6

376.9 381.221.4 21.3

22.2

26.5 26.3 26.0

2006 2007 2008 2009 2010 Mar/11

Market Share - %

Page 12: 1 - VIFIN Ingl s100% of municipalities until 2015 Strategic Positioning Banking Alternative Municipalities Only Banco Postal 2,170 Only BB 69 Banco Postal + BB 3,101 None 225 Total

12

US$ billion

foreign borrowings

Execution Track Record

2.3 3.36.2

8.8 7.91.72.2

4.6

7.6 9.0

3,8

6,8

6,3

5,1 5,3

2.0

2.0

2.0

2.1 2.0

2.6

3.4

2.6

1.82.2

12.4

17.6

21.7

25.3 26.4

2007 2008 2009 2010 Mar/11

Interbank Bond Issues Corporate Individuals Repos

Page 13: 1 - VIFIN Ingl s100% of municipalities until 2015 Strategic Positioning Banking Alternative Municipalities Only Banco Postal 2,170 Only BB 69 Banco Postal + BB 3,101 None 225 Total

13

R$ billion

asset management

Execution Track Record

182.7

220.1246.3

316.2

372.3

407.5

19.118.3

20.7 21.1 21.222.0

2006 2007 2008 2009 2010 Mar/11

Market Share - %

Page 14: 1 - VIFIN Ingl s100% of municipalities until 2015 Strategic Positioning Banking Alternative Municipalities Only Banco Postal 2,170 Only BB 69 Banco Postal + BB 3,101 None 225 Total

14

18.0%

29.3%

R$ billion

credit*

Execution Track Record

(*) Since 2009 includes guarantees and private securities.

51.9 65.597.2

144.0176.4 179.4

24.032.0

48.8

91.8

113.1 116.5

45.151.9

63.7

67.1

75.7 78.3

12.211.4

15.1

18.4

23.0 23.4

133.2160.7

224.8

321.4

388.2 397.516.5 16.017.1

20.1 19.8 19.5

2006 2007 2008 2009 2010 Mar/11

Corporate Individuals Agribusiness Offshore Market Share - %

Page 15: 1 - VIFIN Ingl s100% of municipalities until 2015 Strategic Positioning Banking Alternative Municipalities Only Banco Postal 2,170 Only BB 69 Banco Postal + BB 3,101 None 225 Total

15

78.9%

R$ billion

credit to individuals*

Execution Track Record

(*) Since 2009 includes guarantees and private securities.

47.3%

36.545.0 46.0

20.7

27.4 28.69.2

12.9 13.8

1.5

3.03.4

9.4

11.911.2

12.0

10.4 10.3

2.4

2.6 3.1

24.0

32.0

48.8

91.8

113.1 116.5

2006 2007 2008 2009 2010 Mar/11

Payroll Vehicle Finance Backed by direct deposits Mortgage Cards Other Overdraft

Page 16: 1 - VIFIN Ingl s100% of municipalities until 2015 Strategic Positioning Banking Alternative Municipalities Only Banco Postal 2,170 Only BB 69 Banco Postal + BB 3,101 None 225 Total

16(*) Since 2009 includes guarantees and private securities.

R$ billion

corporate loans

Execution Track Record

179.4

30.4 39.660.6

83.699.1 97.1

9.613.4

19.2

25.2

33.0 34.2

10.1

10.9

15.5

12.6

14.1 13.7

1.9

1.7

1.9

12.6

14.2 14.8

51.9

65.5

97.2

125.3

160.5

2006 2007 2008 2009 2010 Mar/11

Working Capital Investment Trade Finance Other

Page 17: 1 - VIFIN Ingl s100% of municipalities until 2015 Strategic Positioning Banking Alternative Municipalities Only Banco Postal 2,170 Only BB 69 Banco Postal + BB 3,101 None 225 Total

17

R$ billion

credit to agribusiness*

Execution Track Record

(*) Since 2009 includes guarantees and private securities.

36.6 40.2 45.2 48.0 49.6 50.4

8.511.7

18.519.2

26.1 27.9

45.151.9

63.767.1

75.7 78.3

58.0 58.2 59.9 59.2 60.6 61.1

2006 2007 2008 2009 2010 Mar/11

Agribusiness - Producer Agribusiness - Corporate Market Share - %

Page 18: 1 - VIFIN Ingl s100% of municipalities until 2015 Strategic Positioning Banking Alternative Municipalities Only Banco Postal 2,170 Only BB 69 Banco Postal + BB 3,101 None 225 Total

R$ billion

credit to agribusiness*

Execution Track Record

18(*) Since 2009 includes guarantees and private securities.

Corn

Costs** % Secured

3,898 73.2

1,741 87.3

919 79.6

197 61.9

Soy

Rice

Bean

(**) Amount contracted on crop 2010/2011 – R$ million.

9.4%22.7% 14.4 11.7 8.7 7.3

49.2 55.4 67.0 70.9

63.7 67.175.7 78.3

2008 2009 2010 Mar/11

Portfolio with rollover Portfolio without rollover

Page 19: 1 - VIFIN Ingl s100% of municipalities until 2015 Strategic Positioning Banking Alternative Municipalities Only Banco Postal 2,170 Only BB 69 Banco Postal + BB 3,101 None 225 Total

19

NIM and Risk Adjusted Margin

Execution Track Record

(*) Risk Adjusted NIM = Net Financial Margin / Average Earning Assets.

%

8.17.6

7.0 6.76.3 6.2

4.4

5.65.0

4.3 4.6 4.6

2006 2007 2008 2009 2010 1Q11

NIM Risk Adjusted NIM*

Page 20: 1 - VIFIN Ingl s100% of municipalities until 2015 Strategic Positioning Banking Alternative Municipalities Only Banco Postal 2,170 Only BB 69 Banco Postal + BB 3,101 None 225 Total

20

%

90 days delinquency

Execution Track Record

2.52.7

2.4

3.3

2.32.1

3.7

3.2 3.2

4.3

3.2 3.2

2006 2007 2008 2009 2010 Mar/11

BB Brazilian Banking Industry

Page 21: 1 - VIFIN Ingl s100% of municipalities until 2015 Strategic Positioning Banking Alternative Municipalities Only Banco Postal 2,170 Only BB 69 Banco Postal + BB 3,101 None 225 Total

business growth with efficiency

Execution Track Record

21

Thousand

4.0 4.0 4.3 4.9 5.1 5.1

Branches

82.6 81.989.0

104.0 109.0 111.2

2006 2007 2008 2009 2010 Mar/11

Employees

47.546.2 45.6

43.4 42.6 41.8

Cost to income ratio - % - 12 months

Page 22: 1 - VIFIN Ingl s100% of municipalities until 2015 Strategic Positioning Banking Alternative Municipalities Only Banco Postal 2,170 Only BB 69 Banco Postal + BB 3,101 None 225 Total

po s itv e ou tlo o k

22

execution track record

s tra te g ic po s itio n in g ne w fro n ts

Agenda

Page 23: 1 - VIFIN Ingl s100% of municipalities until 2015 Strategic Positioning Banking Alternative Municipalities Only Banco Postal 2,170 Only BB 69 Banco Postal + BB 3,101 None 225 Total

perspectivas favoráveis

23

execution track record positive outlook

s tra te g ic po s itio n in g ne w fro n ts

Agenda

Page 24: 1 - VIFIN Ingl s100% of municipalities until 2015 Strategic Positioning Banking Alternative Municipalities Only Banco Postal 2,170 Only BB 69 Banco Postal + BB 3,101 None 225 Total

24

Positive Outlook

worldcup + olimpic games

clean energy

pre-salt

rural productivity

infrastructure investments

income class migration

Page 25: 1 - VIFIN Ingl s100% of municipalities until 2015 Strategic Positioning Banking Alternative Municipalities Only Banco Postal 2,170 Only BB 69 Banco Postal + BB 3,101 None 225 Total

25

execution track record positive outlook

s tra te g ic po s itio n in g ne w fro n ts

Agenda

Page 26: 1 - VIFIN Ingl s100% of municipalities until 2015 Strategic Positioning Banking Alternative Municipalities Only Banco Postal 2,170 Only BB 69 Banco Postal + BB 3,101 None 225 Total

execution track record positive outlook

posicionamento estratégico ne w fro n ts

Agenda

strategic positioning

26

Page 27: 1 - VIFIN Ingl s100% of municipalities until 2015 Strategic Positioning Banking Alternative Municipalities Only Banco Postal 2,170 Only BB 69 Banco Postal + BB 3,101 None 225 Total

Banco Postal

Banco do Brasil

100% of municipalities until 2015

Strategic Positioning

Banking Alternative MunicipalitiesOnly Banco Postal 2,170

Only BB 69Banco Postal + BB 3,101

None 225Total 5,565

27

Fernando de Noronha

Page 28: 1 - VIFIN Ingl s100% of municipalities until 2015 Strategic Positioning Banking Alternative Municipalities Only Banco Postal 2,170 Only BB 69 Banco Postal + BB 3,101 None 225 Total

Source: IBGE, Ipeadata, Caged, CBIC and Brazilian Central Bank

Region’s percentage of Brazilian GDP

28

branch network suports growth

Strategic Positioning

% of Banco do Brasil Network in Terms of Branches

13.1%

9.2%

16.6%

56.0%

5.3%

20.8%

8.4%

20.5%

45.0%

5.1%

46.1%

18.5%

2006

2010

55.4%

16.6%

2006

2010

42.6%

20.1%2006

2010

43.1%

11.3%2006

2010

70.9%

82.5%2006

2010

Page 29: 1 - VIFIN Ingl s100% of municipalities until 2015 Strategic Positioning Banking Alternative Municipalities Only Banco Postal 2,170 Only BB 69 Banco Postal + BB 3,101 None 225 Total

Strategic Positioning

Augusta - SP29

BB 2.0 – retail remodeling

Gramado - RS

Leblon - RJ

(*) Net Interest Income + Fee Income + Insurance Income

42.848.0

52.7 54.4 54.9 198.8219.6

248.4

274.9 276.2

2007 2008 2009 2010 Mar/11

Clients (million) Comercial Revenues* / Clients (R$)

Page 30: 1 - VIFIN Ingl s100% of municipalities until 2015 Strategic Positioning Banking Alternative Municipalities Only Banco Postal 2,170 Only BB 69 Banco Postal + BB 3,101 None 225 Total

30

execution track record positive outlook

strategic positioning ne w fro n ts

Agenda

Page 31: 1 - VIFIN Ingl s100% of municipalities until 2015 Strategic Positioning Banking Alternative Municipalities Only Banco Postal 2,170 Only BB 69 Banco Postal + BB 3,101 None 225 Total

no v a s fre n te s

31

execution track record positive outlook

strategic positioning new fronts

Agenda

Page 32: 1 - VIFIN Ingl s100% of municipalities until 2015 Strategic Positioning Banking Alternative Municipalities Only Banco Postal 2,170 Only BB 69 Banco Postal + BB 3,101 None 225 Total

New Fronts

32

Market capitalization: R$ 78.2 billion

Page 33: 1 - VIFIN Ingl s100% of municipalities until 2015 Strategic Positioning Banking Alternative Municipalities Only Banco Postal 2,170 Only BB 69 Banco Postal + BB 3,101 None 225 Total

33

internationalization revenues diversification

eficiency and costs control retail remodeling

Agenda for the future

Page 34: 1 - VIFIN Ingl s100% of municipalities until 2015 Strategic Positioning Banking Alternative Municipalities Only Banco Postal 2,170 Only BB 69 Banco Postal + BB 3,101 None 225 Total

Investor Relations UnitSBS - Quadra 1 - Bloco C - Ed. Sede III - 7° andar

70073-901 - Brasília (DF)Phone: +55 (61) 3310 3980

Fax: +55 (61) 3102 1435

[email protected]