BNDES Presentation

Financial and Institutional Aspects

March, 2011

•• Institutional AspectsInstitutional Aspects

•• Operations and PoliciesOperations and Policies

•• Capital MarketCapital Market

•• DisbursementsDisbursements

•• FundingFunding

•• Financial PositionFinancial Position

•• Ratio and ResultsRatio and Results

•• Adoption of International Accounting Standards Adoption of International Accounting Standards -- IFRSIFRS









BNDES Highlights

� Founded on June 20th, 1952

� 100% state-owned company under private law

� Key instrument for implementation of Federal Government’sindustrial and infrastructure policies

� Support to micro, small and medium-sized companies

� Main provider of long-term financing in Brazil

� Emphasis on financing investment projects

� Excellent funding

� Suitable profitability

BNDES Highlights

� Brazilian Export Bank

� Equity investor through BNDESPAR

� Excellent asset quality indicators

� 2,619 active employees (August 2010)

� Headquartered in Rio de Janeiro

� Offices in São Paulo, Brasília and Recife

� New office in Montevideo, Uruguay, since Aug 2009

� New subsidiary in London, England, since Nov 2009

Private Infrastructure and Exports Privatization: Management of Privatization Program Urban and Social Development

1990

Today Innovation - Sustainability

1950 Infrastructure (Energy and Transport) Steel

1960 Heavy Industry - Consumer Goods –Small and Medium-Sized Enterprises Technologic Development

1970 Imports Substitution Basic Inputs - Capital Goods

1980 Energy – Agribusiness - Competitive Integration

Time Line

2000 Infrastructure – Productive Structure – ExportsSocial Inclusion

Exports - To promote external sales and reduce imports. Technological investments to increase content value of consumer goods. Preferential trade relations with Mercosur and other South-American neighbours.

Social Inclusion - Conditions and stimulus to intensify social benefits are established for the concession of BNDES credit.

Innovation - To support investments promoting technological innovation and competitiveness.

Infrastructure - Access to electric energy, telecommunications, urban transport, water supply and sanitation, increasing the offer of services ahead of demand to avoid harm to economic growth.

Productive Structure - To increase industry production capacity. To make industry and service sectors more effective. Priority to small and medium-sized companies. Support to international businesses of Brazilian companies.

Areas of Activity

BNDES´s clients are:

� Private individuals, domiciled and residing in Brazil;

� Legal entities under Brazilian Law (national or foreign control), established with head office and administration in Brazil;

� Direct and Indirect Public Administration in the Federal, State, Municipal and Federal District areas.

The financial support lines and programs offered by the BNDES serve the investment needs of companies of any size and secto r that have been set up in the country. Partnerships with financial inst itutions that have agencies established around the country facilitate the disse mination of credit, enabling micro, small, medium-sized enterprises acc ess to the BNDES´sresources.

Clients

National MonetaryCouncil (CMN)

National MonetaryCouncil (CMN)

Central Bankof Brazil


Securities andExchange Commission

Securities andExchange Commission

Private InsuranceSuperintendency

Private InsuranceSuperintendency

Commercial BanksInvestment BanksSavings BanksDevelopment BanksLeasing Companies

BCB

Stock ExchangeFuture ExchangeSecurity BrokersInvestment BanksInvestment ClubsForeign Investors

CVM

Private Open / ClosedPension FundsInsurance CompaniesCapitalization CompaniesHealth Insurance Cos.

SUSEP SPC

Brazilian Financial System

BNDESBNDES

Ministry of Development Industry and Foreign Trade (MDIC)

TCUFederal

AuditingOffice

Ministry of FinanceMinistry

of Finance


NationalTreasury

SecuritiesExchange

Commission

NationalMonetaryCouncil

InternalRevenueSecretary

Relationship with other Governmental Entities

Consolidated Assets

R$ 549.0 billion

(US$ 329.5 billion)

As of Jun 30, 2010

Finances capital goods production and purchases

Finances long-term investments

BNDESPAR FINAME

Equity Participation

Exchange rate: R$ 1.6662/US$

Group Structure

BNDES Limited

Internationalization of Brazilian companies

BNDES

Organizational Chart

Director 1

João Carlos Ferraz

Director 2

Wagner B. Oliveira

Director 3

Maurício B. LemosDirector 5

Elvio Gaspar

Director 6

Luiz Linck Dorneles

Administration

Credit Human ResourcesIndirect

Operations

AGIR Project

Legal

President

Luciano Coutinho

Vice-President

Armando Mariante

Basic Inputs

Advisory Board

President’s Office

Marcos Verissimo

Auditing

Risk Management

EconomicResearch

ExecutiveSecretary

ProjectDevelopment

Director 4

Eduardo Rath Fingerl

VentureCapital

Industrial

Foreign Trade

International

Environmental

Agriculture PortfolioManagement

Planning FinancialInfrastructure Social InclusionInformationTechnology

CapitalMarkets









Financing of

� Complete business projects

� Machinery and equipment

� Export of goods and services

Equity Investment

� Stocks and debentures

� Venture Capital

� Seed Capital Funds

� Private Equity Funds

Main Credit Lines

� BNDES Automatic – indirect financing through a network of accredited financial institutions (onlending).

Under R$ 10 million (close to US$ 5 million)

� FINEM - Direct financing;

� FINEM - Indirect financing.

Over R$ 10 million

� FINAME – Machinery and equipment

Unlimited

Access to Credit

Who is eligible for funding?

• Federal

• StatePublic Administration

• Municipal

• Micro-entrepreneurs

• School bus drivers

• Independent cargo transportersIndividuals

• Rural producers

• NGOs, OSCIPs (Civil Society Organization for Public Interests) or Foundations

• Cooperatives or AssociationsCompanies (Legal Entities)

• Agricultural companies, industry, trade or services

Classification per size

MICROUp to R$ 2.4 million

Up to R$ 16 million

MEDIUMUp to R$ 90 million

LARGEAbove R$ 300 million

MM

PP

MM

EE

GROSS OPERATING REVENUEAnnual

GROSS OPERATING REVENUEGROSS OPERATING REVENUEAnnualAnnual

MEDIUM - LARGEUp to R$ 300 million

SMALL

Borrower’s Requirements

• Capacity to make repayment.

• Be commercially registered.

• Tax and social securities obligations paid up and in order.

• Not to be undergoing a credit-recovery process (bankruptcy and

composition of creditors).

• Have collateral to cover the operational risk.

• Comply with environmental legislation.

Types of Operations

Direct OperationsCompanies financed directly

by the BNDES

ENTERPRISE

AccreditedFinancial Institution

ENTERPRISE

Indirect OperationsCompanies financed through an accredited financial institution

Information and Relationship

Direct Operations

ENTERPRISE

Direct Operations

• BNDES FINEM - investment projects(minimum value of R$ 10 million ~= US$ 5 million)

• Project Finance - credit to a Specific Purpose Company created tosegregate project cash flow, equity and risk

• Internationalization of Enterprises - support to investments orprojects to be performed abroad

• Credit Limit - revolving credit for the BNDES clients 5 years or more with good record and credit risk ranking

• Subscription of Securities - underwriting of securities in publicly-listed companies

Direct Operations – Lines of Financing

Credit Risk RateBasic Spread+ +Financial Cost

Financial Cost = TJLP or TJLP-462 or Currency Basket or LIBOR

(Funding cost)

BNDES´Basic Spread = from 0% to 2.5% per year (*) (Margin to cover operational and administrative expenses)

Credit Risk Rate = from 0% to 3.57% per year

(Margin to cover non-performing loans).

BNDES Interest Rate – Direct Operations

(*) Up to 1.8% p.y. for machinery and equipment acquisition and for infrastructure, agribusiness, industry, trade and service investment projects. In some especial lines of financial, like machinery leasing or import, export of goods and working capital, the basic spread may reach 2.5% p.y.

Project Evaluation Flow

Consultation

Letter

Eligibility

Project

Completion

Project

AnalysisApproval Contracting Disbursement

ENTERPRISE

Follow up

30 days

60 days

30 days

30 days

60 days

ENTERPRISE

180days

Average Time

Project

Development

Operational policies eligibility and credit risk analysis

Formulation of Analysis Report and Board of Directors approval

Submission of collateral and environmental permits, contract signing and financial schedule

100%

Consultations

US$ 145.2 billion

US$ 131.9 billion

US$ 114.4 billion

Eligible

Approved

US$ 96.3 billion

Disbursements

Performance 2010

66%

91%

79%

Indirect OperationsCompanies financed through a network of financial institutions, accredited by the BNDES, which are responsible for the analysis and credit approval.

ENTERPRISE

AccreditedFinancial Institution

Indirect Operations

Indirect Operation – Lines of Financing

• BNDES Automatic(investment projects under R$ 10 million)

• BNDES Finame(capital goods production and trade)

• BNDES Agricultural Finame(agricultural machinery and equipment production and trade)

• BNDES Leasing Finame(leasing of capital goods)

• BNDES Export(production of goods and services made in Brazil to be exported)

• BNDES Card(revolving, pre-approved credit for the acquisition of products accredited by BNDES)

Competitive export

• to improve competitiveness of Brazilian products

Credit facilities

•various types of financing to facilitate exports

Support for small and medium-sized export companies

•growth of Brazilian exporters

Emphasis on products with higher-aggregated value

Operating in partnership with a network of accredited financial institutions in Brazil and over 100 foreign banks

Supporting integration within South America

Export Support - Purposes

• Pre-Shipment: financing for the production of goods

earmarked for export, linked to specific shipments, or to the

increase of the company’s total exports

• Post-Shipment (buyer or supplier credit): financing for the

commercialization of goods and services in foreign countries

Export Support – Credit Lines

• Financial Cost = TJLP or TJLP-462 or Currency Basket or LIBOR(funding cost)

• BNDES´Basic Spread = from 0% to 1.8% per year(0.9% p.y. for SMEs)

(margim to cover operationa expenses)

• Financial Intermediation Tax = up to 0.5% per year (exempted for micro, small and medium sized companies)(to cover the sistemic risk of the financial institutions)

• Financial Institution Spread = determined by the accredited financial institution

Basic Spread+ +Financial

IntermediationRate

Financial Cost

FinancialInstitution Spread+

BNDES Interest Rate – Indirect Operations









Capital Market

The BNDES plays a key role owing to:

• Its commitment to long-term projects.

• The size and quality of its portfolio.

• Its performance in moments of higher volatility in the market.

• Its capacity to attract other investors.

• Its focus on corporate governance.

• Its capacity to invest in all segments of the market.

Capital Market

The BNDES focuses on:

• Stimulating tender offer spreading.

• Consolidating national and international companies.

• Developing new products (PIBB, CRIATEC etc).

• Supporting the development of the funds industry.

• Fostering corporate governance practices.

• Stimulating fixed-income on the secondary market (issuing debentures).

• Supporting innovative Micro, Small and Medium-Sized companies.

• Supporting IBOVESPA (the Sao Paulo Stock Exchange Index).

BNDESPAR - Equity Investment Portfolio

Value Value ValueTotal 13.641 100,0% 13.827 100,0% 14.231 100,0%

Investments in Associated Companies

12/31/2010 09/30/2010 12/31/2009

Value Value ValueListed Companies 77,872 87.3% 77,259 88.0% 65,207 86.8%Petrobras 41,866 46.9% 42,234 48.1% 25,091 33.4%VALE 15,434 17.3% 14,556 16.6% 13,680 18.2%Eletrobras 4,743 5.3% 4,580 5.2% 7,525 10.0%CPFL Energia 1,686 1.9% 1,574 1.8% 1,430 1.9%ALL 1,270 1.4% 1,473 1.7% 1,949 2.6%Gerdau 924 1.0% 942 1.1% 1,206 1.6%Braskem 904 1.0% 754 0.9% 391 0.5%CSN 849 1.0% 932 1.1% 1,070 1.4%CEG 790 0.9% 790 0.9% 718 1.0%Light 780 0.9% 879 1.0% 1,341 1.8%Marfrig 739 0.8% 828 0.9% 911 1.2%Others 7,887 8.8% 7,717 8.8% 9,895 13.2%Not Listed Companies 11,377 12.7% 10,519 12.0% 9,914 13.2%

Total 89,249 100.0% 87,778 100.0% 75,121 113.2%

09/30/2010 12/31/2009R$ millions

Equity Investments at Fair Value

12/31/2010

BNDESPAR - Equity Investment by sector

Fair Value – December 31, 2010

Oil and Gas36%

Mining22%

Electricity12%

Food and beverage

9%

Telecom3%

Siderurgy2%

Metallurgy2%

Transportation2%

Private Equity Fund - PIQ

1%

Others7%

Pulp and Paper4%









Annual Disbursements(Includes secondary market investments)

35.1

11.7

40.0

13.8

47.1

19.6

52.3

24.1

64.9

34.0

92.2

49.8

137.4

71.6

168.4

96.3

2003 2004 2005 2006 2007 2008 2009 2010

R$ Billion

US$ Billion

Disbursements by Type of Operation (%)(Do not include secondary market investments)

46

54

46

54

58

42

46

54

45

55

47

53

43

57

41

59

47

53

57

43

44

56

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Direct Operation Indirect Operation

Disbursements by Business Sector (%)(Do not include secondary market investments)

52%

30%

11%

7%

46%

35%

12%

7%

48%

30%

14%

8%

40%

38%

17%

5%

50%

36%

9%

5%

53%

33%

7%

7%

40%

40%

8%

12%

43%

39%

6%

12%

46%

35%

5%

14%

47%

31%

6%

16%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Industry Infrastructure Farming and Cattle Raising Trade and Services

Exchanged to US dollar on disbursement date

US$ 96.3 billions

Number of Operations

609,894

Disbursements

micro and smallindividuals large othermedium

ObsObs . Last 12 months up to December 2010. Last 12 months up to December 2010

2010 Operations

4.8 5% 7.7

8%13.5 14%

70.3 73%

417,14868%

41,836 7%

104,05317%

46,857 8%









� FAT (Workers Assistance Fund)

� PIS-PASEP Fund

� National Treasury

� FI-FGTS

� FGTS

� Market Funding

� BNDESPAR Debentures

Domestic Funds

Foreign Funds

� Government Agencies and Multilateral Institutions (IDB, JBIC, World Bank, KfW, NIB, China DB, etc)

� Market Funding

� Bonds, Loans and Structured Notes (ABS)

BNDES Funding

� Government-established fund: contribution on net operating revenues

� Permanent financing or quasi-equity

� Independent of Federal Budget

� Remunerated at TJLP (Long Term Interest Rate), currently 6.00% p.a., or

US$ libor

� At least 40% of annual revenues are transferred to the BNDES

(Constitutional FAT)

FAT – Workers Assistance Fund

Main Features

Stable Source of funds to BNDES (article 239 of Federal Constitution).

Origin

40% of PIS-PASEP tax collections (1.65% of corporate revenues on a non cumulative basis; 1% of the payroll of non profit oriented institutions and 1% of net revenues of public administration entities).

Use of Funds

Programs promoting economic development through BNDES

Amortization Schedule

No predefined amortization schedule – quasi capital

Constitutional FAT

Cost of Funds : TJLP, in case of BRL credits, or US$ Libor, in case of US$ related financing (Law nº 9.635/1996).

Payments to the FAT: semiannual Interest payments, limited to 6% p.a for the TJLP liabilities. The excess yield is capitalized and added to the outstanding balance of FAT funds. BNDES´s US$ related liabilities pay US$ LIBOR flat.

Perfect currency and interest rate match for BNDES balance sheets

FATCAMBIAL

Res. Codefat n°320: up to 50% ofFAT Constitucional

US$ based financings: cost of funds = Libor flat

Financing of production or commercialization ofgoods in external markets

Constitutional FAT

Origin

Unused resources of FAT, contracted with the Labor Ministry and CODEFAT.

Use of Resources

Specific programs and economic sectors

Amortization Schedule

There is repayment of principal to the FAT

Cost of Funds

TJLP

Payments to FAT

BNDES is required to make monthly payments equivalent to 1% or 2%, depending on the program, of the outstanding balance.

FAT Special Deposits

• Resources from BNDES´ single shareholder.

• Each transaction has its specific conditions, like cost and amortization schedule.

• 2009 and 2010: In 2009 R$105 billion were received from Brazilian Union, while the amount in 2010 were R$ 107 billion. These resources aim to support investments of PAC (Growth Acceleration Program) and PSI (InvestmentMaintenance Program).

National Treasury

2010 2009 2008 2007

National Treasury 253,058 144,213 43,207 13,896

Others Borrowings/Onlendings 196,033 180,624 178,992 154,327

% 129.1 79.8 24.1 9.0

R$ million

Funding Dec, 31 2010 – Capital Structure

Others

6.4%

PIS/PASEP

5.6%

FI-FGTS

1.2%Shareholders´

Equity

12.0%

FGTS

1.0%

FAT

24.1%

Foreign Funding

3.6%

National Treasury

46.1%

Changes in Source of Funds

FAT BondsMultilateral Institutions

National Treasury

December 31, 2009 122.497 4.429 12.035 144.213

Inflows 12.230 3.417 1.896 107.052

Amortizations (2.232) (360) (993) (1.271)

Exchange Variation (480) (280) (407) (1.606)

Accrued Interest and Monetary Adjustment 7.139 406 292 13.621

Payment of Interest (6.891) (356) (300) (8.951)

December 31, 2010 132.263 7.256 12.523 253.058

R$ million

Funding Dec, 31 2010 – Cash Flow

Return on

Operations; 44,8%

Government

Funding; 46,8%

Assets

Monetization; 4,7% Foreign Funding;

2,1%FAT; 1,6%









Balance Sheet – BNDES System

R$ billion

2010 2009 2008 2007

Cash and Equivalents 10,1 2,0 6,9 0,0

Marketable Securities 145,9 54,3 22,9 13,8

Loans 361,6 283,7 216,0 164,5

Investments 11,6 33,9 25,3 19,0

Others 19,8 12,7 6,2 5,4

549,0 386,6 277,3 202,7

FAT 132,3 122,5 116,6 105,9

PIS/PASEP 30,8 30,0 - -

National Treasury 253,1 144,2 43,2 13,9

International Borrowings 19,8 16,5 17,5 12,1

FGTS 5,5 5,8 6,1 -

FI-FGTS 6,7 7,0 7,0 -

Money Market Funding - 13,7 8,4 -

Debentures 6,0 3,6 2,3 2,0

Others 29,0 15,8 50,9 43,8

ShareholdersÉquity 65,9 27,6 25,3 24,9

549,0 386,6 277,3 202,7 TOTAL LIABILITIES

LIA

BIL

ITIE

S

TOTAL ASSETS

AS

SE

TS

R$ billion

Assets

Average increase between 2001 and 2010: 19,2% per year.

113

151 152164 175

187 203

277

387

549

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

R$ billions

Assets - Breakdown

Cash and Equivalents 10.1 1.8 2.0 0.5 6.9 2.5 0.0 0.0

Marketable Securities 145.9 26.6 54.3 14.0 22.9 8.3 13.8 6.8Government Securities 25.6 4.7 35.9 9.2 10.6 3.9 1.0 0.5Debentures 17.8 3.2 12.2 3.2 8.1 2.9 6.1 3.0Shares 95.9 17.5 0.1 0.0 0.0 0.0 0.0 0.0Others 6.6 1.2 6.1 1.6 4.2 1.5 6.7 3.3

Loans 361.6 65.9 283.7 73.4 216.0 77.9 164.5 81.2Interbank Onlendings 180.2 32.8 121.6 31.5 99.4 35.8 80.5 39.8Loans 181.4 33.0 162.1 41.9 116.6 42.0 84.0 41.4

Investments 11.6 2.1 33.9 8.8 25.3 9.1 19.0 9.4Investments in Associates 11.3 2.1 12.0 3.1 7.6 2.7 11.0 5.4Investments in Other Companies 0.2 0.0 21.9 5.7 17.6 6.3 7.9 3.9Others Investments 0.1 0.0 0.0 0.0 0.1 0.0 0.1 0.0

Others 19.8 3.6 12.7 3.3 6.2 2.2 5.4 2.6

Total Assets 549.0 100.0 386.6 100.0 277.3 100.0 202.7 100.0

2010 %Assets

R$ billion

% 2007 %2008 %2009

Loans and Interbanking Onlendings by Sector

Gross Portfolio by Sector

As of Dec, 31

73% 75%

27% 25%

2010 2009

Public Sector

Private Sector

Loans and Interbanking Onlendings –per Maturity

Gross Portfolio per Maturity – As of December 31,

R$ million R$ million

Past-due 551 Past-due 825

Current Current2011 59.955 2009 51.3892012 51.067 2010 41.7292013 37.794 2011 32.6642014 27.885 2012 23.1152015 19.663 2013 15.527After 2015 168.875 After 2013 123.073

Total 365.790 Total 288.322

2010 2009

Loans and Interbanking Onlendings

Portfolio Concentration

R$ million

2010 % 2009 %

10 largest customers 141.617 38,7% 100.251 34,8%

50 next largest customers 112.979 30,9% 96.223 33,4%

100 next largest customers 55.848 15,3% 47.301 16,4%

Other 55.346 15,1% 44.547 15,5%

Total 365.790 100,0% 288.322 100,0%

As of December 31,

Foreign Debt Securities – Outstanding International Bonds

Issue Year

MarketPrincipal

(currency - million)

Coupon (%) Maturity

1998 Eurodollar/144-A US$ 1,000 6,369% 06.16.2018 (a)

2001 Eurodollar US$ 300 9,625% 12.12.2011

2009 Eurodollar US$ 1,000 6,50% 06.10.2019

2010 Eurodollar US$ 1,000 5,50% 12.07.2020

2010 Euro MTF EUR 750 4,125% 09.15.2017(a) As amended on June, 2008

Foreign Debt Securities - Ratings

Rating Outlook Rating Outlook

Moody´s Baa2 Positive A3 Stable

S&P BBB- Stable BBB+ Stable

Global Foreign Currency Issuer Rating

Global Local Currency Issuer Rating









Ratios

R$ billion, except percentages

Ratios 2010 2009 2008 2007

Total Assets 549,0 386,6 277,3 202,7

Net Income 9,9 6,7 3,1 0,7

Shareholders' Equity 65,9 27,6 25,3 24,9

ROE (%)1/ 21,2 25,5 21,2 33,2

ROA (%)2/ 2,1 2,0 2,2 3,8

NIM (%)3/ 1,8 2,2 2,0 3,0

BIS Ratio (%)4/ 18,64 17,58 17,67 26,73 1/Average Shareholders' Equity = (Ecurrent year + Eprevious year)/2

2/Average Asset = (Acurrent year + Aprevious year)/2

4/ Central Bank of Brazil requires 11% as a minimum percentage.

3/ NIM is the net income interest (interest income minus interest expenses) divided by average interest-earning assets.

BNDES vs. Multilateral Agencies

US$ million

BNDES IADB World Bank 2/ CHINA DB2010 2010 (Jun, 30.10) 2009

Total Assets 1/ 329,504 87,217 282,842 665,168

Shareholders' Equity 1/ 39,551 20,960 37,401 55,471

Net Income 1/ 5,950 330 (870) 4,673

Disbursements 3/ 96,322 10,341 28,855 92,998

Capitalization (%) 4/ 12.0 24.0 13.22 8.34

ROA (%) 5/ 2.1 0.39 (0.31) 0.76

ROE (%) 6/ 21.2 1.6 (2.30) 8.761/ BNDES - Exchange rate US$ 1,66622/Unlike other institutions 12 months fiscal year ends June 30th

3/Based on the historical exchange rate - NET

4/ShareholdersÉquity/Total Assets5/ Net Income/(Assets current year + Assets previous year)/2

6/ Net Income/(Shareholders' Equity current year + ShareholdersÉquity previous year)/2

Asset Quality (%)

Source:1/BNDES System = Consolidated2/SFN - National Financial System (all financial institutions that operate in Brazil)3/Includes BNDES

As of Dec 31, 2010

BNDES System 1/ SFN2/ Private Fin

InstitutionsPublic Fin

Institutions 3/

93,7

D - G 1,0 4,4 4,8 3,6

AA - C 98,5 92,6 92,0

2,7

Total 100,0 100,0 100,0 100,0

H 0,5 3,0 3,2

Provision

Level (%)

Past Due

Period

Risk

Category

100.0> 180 daysH

70.0180 daysG

50.0150 daysF

30.0120 daysE

10.090 daysD

3.060 daysC

1.030 daysB

0.5-A

0.0-AA

Provision

Level (%)

Past Due

Period

Risk

Category

100.0> 180 daysH

70.0180 daysG

50.0150 daysF

30.0120 daysE

10.090 daysD

3.060 daysC

1.030 daysB

0.5-A

0.0-AA

Resolution CMN 2,682/99

Asset Quality (%)

2010 2009 2008 2007

Loans, net of allowance/Total Assets 65.86% 73.37% 77.89% 81.19%

Nonperforming loans/Total Loans 0.15% 0.20% 0.15% 0.11%

Allowance for losses/Total Loans 1.15% 1.61% 2.07% 2.51%

Allowance for losses/Nonperforming Loans 7.65 8.05 13.89 23.34

Total allowance as a percentage of non-performing loans as of December31, 2010

Brazilian Financial SystemAverage NPL ratio (Dec/10)

765%

3,23%

Non-performing loans/total loans

Asset Quality (%)

0,11%

0,15%

0,20%

0,15%

2007 2008 2009 2010

Income Statement

R$ million

2010 2009

+ Net Income from Loans 25,336 18,600

+ Income from Marketable Securities 8,377 5,209

(-) Interest Expenses (26,051) (17,721)

(+/-) Net of Effect Exchange Variation (623) (267)

(=) Net Interest Income, before allowance for loan losses7,039 5,821

(+/-) Allowance for Loan Losses 2,852 (6)

(=) Net Interest Income, after allowance for loan losses 9,891 5,815

+ Income from Equity Investments 6,159 3,990

(-) Administrative and Tax Expenses (1,877) (1,740)

(+/-) Other Net Revenues/Expenses 187 994

(=) Operating Income 14,360 9,059

(-) Taxes (4,287) (2,238)

(-) Employee´s Profit (159) (86)

= Net Income 9,914 6,735









Adoption of International Accounting Standards - IFRS

• Communication Nº. 14,259/2006, Resolution Nº. 3,786/09 and Circular Nº. 3,472/09 – Brazil’s Central Bank (Bacen).

• Year ended December 31, 2010, the BNDES will present Consolidated Financial Statements in BR GAAP and in IFRS.

• Statements in accordance with IFRSs are not used as a basis for paying dividends or collecting tax. They include additional information required by Brazil’s Central Bank.

27.628

6.735

386.633

BR GAAP

Dec./09

67.134

8.149

446.086

IFRSIFRSBR GAAP

Dec./10

69.79165.899Net Equity

8.8579.913Net Earnings

553.768549.020Total Assets

R$ billion

Adoption of IFRS Comparison of the Main Indicators

� Fair Value of Financial and Equity Instruments;

� Allowance for Loan Losses;

� Constitution of Deferred Tax Credits from adjustments;

� Associated Companies - Bargain Purchase (Negative Goodwill), Goodwill valuation, Adjustments on Convertible Securities and others;

Adoption of IFRS Main Adjustments

69,791

67,134

45,910

IFRS

(91)

85

(319)

Others

2,316

708

317

Associated

Companies

(750)

(18,967)

(8,892)

Deferred

Tax on

Adjust.

2,417

3,265

3,671

Allowance

for Loan

Losses

-

54,585

25,228

Fair Value of

Financial

Instruments

2010

2009

2008

BR GAAP

65,899

27,628

25,267

R$ million

Adoption of IFRSMain Adjustments – Net Equity

118(801)Deferred Tax on Adjustments

20102009

(848)(406)Allowance for Loan Losses

(224)2,953Associated Companies

-(894)Recognition of derivatives

9,9136,735BR GAAP

8,8578,149IFRS

(102)35Others

-527Fair Value of Financial Instruments

R$ million

Adoption of IFRS Main Adjustments - Earnings

Board of Directors

Comprised of:

I) eleven members appointed by the President of Brazil, with three-year terms, including the Chairman of the Board. Of this total, the Minister of Planning, Budget and Management, the Minister of Labor and Employment, the Minister of Treasury and the Minister of Foreign Affairs each appoint a member. The remaining members are appointed by the Minister of Development, Industry and Foreign Trade; and

II) one vice-chairman of the Board of Directors, a position filled by the President of the BNDES.

The current Members of the BNDES Board of Directors are the following:Fernando Damata Pimentel (Chairman)Luciano Galvão Coutinho (Vice-Chairman)Alessandro Golombiewski TeixeiraCarlos Roberto LupiEduardo Eugênio Gouvêa VieiraArtur Henrique da Silva Santos Roberto Atila Amaral VieiraMiriam BelchiorLuiz Eduardo Melin de Carvalho e SilvaPedro Luiz Carneiro de Mendonça

Board of Executive Officers

The BNDES´ Board of Executive Officers is comprised of eight members: the President, Vice-President and six Managing Directors, all appointed by President of Brazil.

President

Luciano Coutinho

Vice-President

Armando Mariante Carvalho

Managing Directors

i) João Carlos Ferraz

ii) Luiz Eduardo Melin de Carvalho e Silva

iii) Mauricio Borges Lemos

iv) Eduardo Rath Fingerl

v) Elvio Lima Gaspar

vi) Luiz Fernando Linck Dorneles

Fiscal Council and Audit Committee

Fiscal Council:

The Audit Committee is currently comprised of:

Current Members

Carlos Eduardo Esteves LimaAndré Luiz Barreto de Paiva Filho Reginaldo Braga Arcuri

Substitute Members

Clayton Campanhola Francisco Moreira da Cruz Filho Eduardo Coutinho Guerra

João Paulo dos Reis VellosoAttílio GuaspariPaulo Roberto Vales de Souza

Brazilian Development BankAvenida República do Chile nº 10021031-917 Rio de Janeiro – RJ - Brazil

Brazilian Brazilian DevelopmentDevelopment BankBankAvenida República do Chile nº 100Avenida República do Chile nº 1002103121031--917 917 Rio de Janeiro Rio de Janeiro –– RJ RJ -- BrazilBrazil

[email protected]@bndes.gov.br

Presentation edited by:

VaniaVania Maria da Costa BorgerthMaria da Costa BorgerthAccountantAccountant ChiefChief andand InvestorInvestor RelationsRelations

www.bndes.gov.br

Documents

BNDES Presentation