2. Disclaimer
This presentation may contain references and statements representing future
expectations, plans of growth and future strategies of BIM.
These references and statements are based on the Bank’s assumptions and analysis
and reflect the management’s beliefs, according to their experience, to the economic
environment and to predictable market conditions.
As there may be various factors out of the Bank’s control, there may be significant
differences between the real results and the expectations and declarations herewith
eventually anticipated. Those risks and uncertainties include, but are not limited to,
our ability to perceive the dimension of the Brazilian and global economic aspect,
banking development, financial market conditions, competitive, government and
technological aspects that may influence both the operations of BIM, as the market
and its products.
Therefore, we recommend the reading of the documents and financial statements
available at the CVM website (www.cvm.gov.br) and at our Investor Relations page in
the internet (www.indusval.com.br/ir) and the making of your own appraisal.
1
3. Banco Indusval Multistock
Credit in Brazil and the Middle Market
Performance
Loan Portfolio
Funding and Liquidity
Results
Indusval Multistock Corretora de Valores (brokerage)
Capital Market
Sustainability
2
4. Who is Banco Indusval Multistock?
Mid-sized Bank
42 year experience in the
Brazilian financial Market
Focused on 694 companies
Middle Market in the loan
lending portfolio
11 branches
350 employees
Loan Portfolio Total Assets Equity Basel Ratio
R$ 1.8 billion R$ 3.0 billlion R$ 430 million 20.3%
Date: June 30, 2010
3
5. Our Pathway
Indusval Multistock Corretora de Valores acquires Execution Broker Seal from BM&FBOVESPA
2010 and improves its positioning in the BM&F market global Ranking
Strategic partnership established to develop the Brokerage Firm business
2009
Evolution
BIM was ranked 4th among the “Most Sustainable Midsize Banks in Latin America’’ *
Start of BNDES onlending disbursements
2008 First IFC A/B Loan transaction of circa US$ 56 MM in Oct/08
Recognition Award for Best Utilization of IFC GTFP
BIM becomes a publicly held company and celebrates 40 years of operations
2007 Second expansion phase: opening of 6 branches by the end of year
Growth
2006 Beginning geographic expansion – Opening of 4 branches
2004 Consumer finance company sold - Capital infusion of R$60 million doubles the Bank’s shareholders’ equity
2003 Indusval merges with Multistock and starts to operate as BIM – Banco Indusval Multistock
2000 Partnership with Banco Multistock in a Consumer Finance enterprise
1993
Origin
Middle-market credit operations started
1991 Indusval becomes a bank
1971 The partners of Ciampolini & Ribeiro acquire Indusval Corretora
1967 Foundation of Indusval Corretora – a brokerage House
* Management & Excellence Consulting 4
6. About distribution of our capital
Cancellation of treasury shares approved on August 10,2010
# Shares on # Treasury Shares #Shares on
Type
June 30, 2010 cancelled Aug. 10, 2010
Common 27,000,000 -0- 27,000,000
Preferred 15,475,101 (1,262,117) 14,212,984
TOTAL 42,475,101 (1,262,117) 41,212,984
#Shares on Controlling # Shares Free
Type Management
Aug. 10, 2010 Group Free Float Float
Common 27,000,000 (17,116,173) (2,574,369) 7,309,458 27.07%
Preferred 14,212,984 (1,038,047) (159,570) 13,015,367 91.52%
TOTAL 41,212,984 (18,154,220) (2,733,939) 20,324,825 49.32%
5
7. Who are our shareholders?
Shareholders’
Agreement Free Float = 49%
Ciampolini & Foreign Institutional
Controlling Management Individuals
(10)
Ribeiro families Investors Investors
Group (4) (608)
(12) (10) (86)
44% 6% 20% 11% 15% 4%
63% 10% 27% - - -
7% 1% 5% 31% 44% 12%
Manuel Felix Cintra Neto
Luiz Masagão Ribeiro 51%
Carlos Ciampolini
Antonio G. da Rocha
Total
ON
PN
6
8. Shareholder Remuneration
27.0
We have been remunerating
25.5
Shareholders by quarterly
anticipating the payment
6.7
of Interest on Equity 6.4
15.8 6.6
6.5
12.6
11.6 6.1
10.1
6.9
6.6 6.3
5.1
R$ million
2.3 6.0 6.8 6.3
2.3
2.005 2.006 2.007 2.008 2.009 2.010
Pay-out per share
R$ 0.3657 R$ 0.3249 R$ 0.3688 R$ 0.5994 R$ 0.6423 R$ 0.3022
1Q 2Q 3Q 4Q
7
9. About our Corporate Governance Structure
• Listing on Bovespa Level 1 of
Installed on April 15, 2010 General Meeting Corporate Governance
3 effective members
specialized in accounting & auditing of Shareholders • 100% Tag along
Fiscal Board • Arbitration Panel Adherent
9 members
Board of Directors Compensation & Benefits
• 22% independent
Committee
• 22% external
Internal Auditing
Executive Board President Executive Board is supported
9 members by 5 committees:
Traesury, Credit, Compliance &
Long lasting experience in the
Internal Audit, IT & Information
financial market Superintendent Safety and Legal
Trade Finance Treasury
Executive IR & Treasury Commercials Credit
& Structured Administrative
8
10. Banco Indusval Multistock
Credit in Brazil and the Middle Market
Performance
Loan Portfolio
Funding and Liquidity
Results
Indusval Multistock Corretora de Valores (brokerage)
Capital Market
Sustainability
9
11. Credit Volume in the Brazilian Financial System
Individuals credit growth still supported pay
payroll lending and housing loans.
Growth in Corporate credit is mainly supported
by earmarked resources from BNDES, the
Brazilian Social and Economic Development
Bank.
Government owned banks respond for 42% of 1,529
total loans in the system 1,410
1,227
276
R$ billion
607 733
2005 2006 2007 2008 2009 Jun/10
Free Resources Earmarked Resources
Source: Banco Central do Brasil – Credit Information System - SCR
10
12. Segmented development of credit volume in the system
600
50 0
400
300
200
10 0
R$ billion
0
D ec M ar Jun Sep t D ec M ar Jun Sep t D ec M ar Jun*
2007 2008 2009 2 0 10
Free Resources Corporates
Earmarked Resources Individuals
Source: Banco Central do Brasil – Credit Information System - SCR
11
13. Corporate Credit
806 825
788 801
748
696 699 705
639
582 46%
540
508 45%
460 40%
409 427
37%
38% 38%
43%
44%
17% 17% 16%
19%
R$ billion
Mar Jun Sept Dec Mar Jun Sept Dec Mar Jun Sept Dec Mar Apr* May*
2007 2008 2009 2010
Amount per Credit Agreement Up to R$100 tsd From R$100 tsd to R$10 million Over R$10 million
Relation between amount of credit agreement and size of borrower
Up to R$ 100 thousand = Small Enterprises
from R$ 100 tsd to R$ 10 million = Mid-sized Enterprises
above R$ 10 million = Large Corporates
Source: Banco Central do Brasil – Credit Information System - SCR
12
14. Default ratios in the Brazilian financial system
10
9
8
7
6.6
6
%
5 5.0
4
3.6
3
2
1 Corporates Individuals Total
0
n
Fb
n
n
Fb
n
n
Fb
n
Dc
Dc
My
Nv
Dc
My
Nv
Dc
My
l
l
ct
ct
Mr
Mr
Mr
Ju
Ag
Ju
Ag
et
et
Ar
Ar
Ar
a
Sp
a
Sp
a
e
e
Ja
e
p
a
Ju
o
e
Ja
e
p
a
Ju
o
e
Ja
e
p
a
Ju
u
u
O
O
2006
2007 2008 2009 2010
Individual Credit Default: - Quick reduction from June 2009
Corporate Default: - Accelerated increase from September 2009
- Slow decline from November 2009 to March 2010
- Stable at 3.6% from March 2010
Source: Banco Central do Brasil – Credit Information System - SCR
13
15. Banco Indusval Multistock
Credit in Brazil and the Middle Market
Performance
Loan Portfolio
Funding and Liquidity
Results
Indusval Multistock Corretora de Valores (brokerage)
Capital Market
Sustainability
14
16. Total Loan Portfolio
2,080
.
p.a 1,794 1,794
0% 1,736 1,728 1,719 1,763
G R r 10 1,684 1,699
CA ter o
ar 1,519
r qu
pe 1,329
9%
+1
1,059
960 a.
% p.
or 31
arter
717 7% p er qu
CAGR: +
R$ million
1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10
Local Currency Loans Trade Finance Letters of Guarantee and L/Cs issued
15
17. Local Currency Loans and Financing
CAGR -1.0% per quarter
-3.7% in the year
1,460 1,430 1,400 1,405
1,386
R$ million
2Q09 3Q09 4Q09 1Q10 2Q10
Disbursed Credits Assignments Guarantees issued
16
18. Trade Finance
arter
7.5% per qu
CAGR +
year
in the
+33.5%
333 357
298
267 254
R$ million
2Q09 3Q09 4Q09 1Q10 2Q10
Disbursed Loans Import L/Cs issued
17
19. Credit Portfolio Breakdown
By Segment By Economic Activity
Individual
s
Financial 8%
Interm.
Middle Retail Other
Market 1% Services Manufact
95% 23% uring
Other 57%
4%
Trading
11%
18
20. Credit Portfolio Breakdown
By Product By Collateral
BNDES Vehicles
Onlending 2% Aval PN
Trade
4% Real State 21%
Finance
20% 10%
Pledge/
Lien
Guarantees 6%
Issued Monitored
4% Pledge of
Other Goods
4% 10%
Loans &
Discounts Securities
& Deposits Receivable
68% s
4%
47%
19
21. Credit Portfolio Breakdown
By Maturity By Client Concentration
+360 10
days Other largest
28% Up to 90 19%
25%
days
38%
11 - 60
181 to 32%
61 - 160
360
24%
15% 91 to 180
19%
20
22. Quality of Credit Portfolio
Default (+60 days)
Risk Rating 8.1%
6.9%
5.9%
D-H 3.5%
2.6%
12%
A
33%
2Q09 3Q09 4Q09 1Q10 2Q10
Allowance for Loan Losses
C
27% 133.0 133.4
B 118.2
110.7 107.8
28%
R$ million
2Q09 3Q09 4Q09 1Q10 2Q10
21
23. Banco Indusval Multistock
Credit in Brazil and the Middle Market
Performance
Loan Portfolio
Funding and Liquidity
Results
Indusval Multistock Corretora de Valores (brokerage)
Capital Market
Sustainability
22
24. Total Funding
. 1,881 1,881
p.a 1,789 1,772 1,793
% 1,732
R r 84
G o
CA rter 1,600
1,556
a 1,488
r qu
pe
%
+17 1,233
1,040
% p. a.
868 or 35
836 arter
715 8% p er qu
CAGR: +
R$ million
1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10
in Local Currency (Real) in Foreign Currency
23
25. Funding Development and breakdown
arter
per qu
+1.5%
C AGR
year
in the
+6.1%
1,881 1,881
1,772 1,732 1,793
R$ million
2Q09 3Q09 4Q09 1Q10 2Q10
Demand Deposits Interbank Dep. Time Deposits DPGE
LCA & other Onlending funds Foreign Loans
24
27. Asset & Liability Management
720
586
559
533
383
307 293 286
R$ million
90 days 180 days 360 days above 360 days
Assets Liabilities
26
28. Banco Indusval Multistock
Credit in Brazil and the Middle Market
Performance
Loan Portfolio
Funding and Liquidity
Results
Indusval Multistock Corretora de Valores (brokerage)
Capital Market
Sustainability
27
29. Income from Financial Intermediation
2nd quarter 2010
FX Op
17%
Derivativ
+2.1% es
6%
220 225
Loans
+7.8% Securitie
60%
s
17%
102 114 110
94 93
R$ million
1st half 2010
FX Op.
21%
2Q09 3Q09 4Q09 1Q10 2Q10 1H09 1H10
Derivati
ves
4%
Loans
56%
Securiti
es
19%
28
31. Gross Result and Financial Margin
Quarter
NIM GIM
6.8%
%
2.8 4.9%
+1
68.3
60.5
+2.9%
32.1 35.2 33.1 2Q09 3Q09 4Q09 1Q10 2Q10
27.4
R$ million
Semester
6.4
6.9%
2Q09 3Q09 4Q09 1Q10 2Q10 1H09 1H10
5.1%
NIM (Net Interest Margin) = Net of Loan Loss Allowance
GIM (Gross Interest Margin) = including Loan Loss
Allowance
1S09 2S09 1S10
30
32. Other Operating Expenses and Efficiency
Net Operating Expenses Efficiency Ratio
-4.4%
-14.7% 47.5
45.4
61% 63% 61%
55% 58%
46% 45%
24.5 23.2 24.4
22.5 20.9
R$ million
2Q09 3Q09 4Q09 1Q10 2Q10 1H09 1H10 2Q09 3Q09 4Q09 1Q10 2Q10 1H09 1H10
31
33. Profitability
Net Profit Net Recurring Result
-3.1%
5%
+34.
16.1 15.6
%
+2.5 +22.
1%
8.1 7.3 8.3
15.6
4.4 11.6
6.8 7.3 8.3
R$ million
R$ million
2.4
2Q09 3Q09 4Q09 1Q10 2Q10 1H09 1H10 2Q09 3Q09 4Q09 1Q10 2Q10 1H09 1H10
-7.8 -7.8
As reported in the respective periods, 2009 net profit include non-recurring
income net of taxes as follows:
1Q09 – R$ 3.2 MM – sale of BM&FBovespa shares
2Q09 – R$ 1.2 MM – sale of CETIP shares
4Q09 – R$ 2.0 MM – effect of the Bank’s adhesion to the government’s tax
amnesty program (REFIS) for the monetary updating of the pledged deposits
32
34. Banco Indusval Multistock
Credit in Brazil and the Middle Market
Performance
Loan Portfolio
Funding and Liquidity
Results
Indusval Multistock Corretora de Valores
(brokerage)
Capital Market
Sustainability
33
35. Investment plan maintained
Challenging market in 2Q10
The brokerage firm modernization process keeps its pace with
investments in technology and people to develop new products and
markets within its strategic targets:
To broaden the institutional clients and qualified individual investors base
To expand to the retail segment
To become an institutional clients’ liquidity center
Repositioning in the BM&F Ranking
2Q09: 53th position
1Q10: 17th position
2Q10: 33th position
34
36. Banco Indusval Multistock
Credit in Brazil and the Middle Market
Performance
Loan Portfolio
Funding and Liquidity
Results
Indusval Multistock Corretora de Valores (brokerage)
Capital Market
Sustainability
35
38. Banco Indusval Multistock
Credit in Brazil and the Middle Market
Performance
Loan Portfolio
Funding and Liquidity
Results
Indusval Multistock Corretora de Valores (brokerage)
Capital market
Sustainability
37
39. Commitment
Continuous improvement in key sustainability aspects:
Business
Employees
Communities
Environment
We believe to be in the beginning of a right track:
Ranking Management & Excellence - 2009
– 4th Most Sustainable Mid-sized Bank in Latin America
– 2nd Most Sustainable Mid-sized Bank in Brazil
38
40. Business Sustainability
Ethics
Transparency
Corporate Governance
Sustainable business development
Social & Environmental Responsibility Policy: aiming at encouraging
our employees, suppliers, business partners, clients to adopt a
responsible attitude towards
– Social development,
– Citizenship recovery,
– Respect for environment
39
41. Social & Environmental Responsibility Policy and Lending
Clients
Lending prohibited to
enterprises that:
Expectation:
• Utilize infantile or
To contribute for the slavery labor
awareness of people and
• Operate in activities
Expanding the Social enterprises about the
directly or indirectly
Environmental action to importance of the rational
related to gambling &
Corporate customers utilization of natural
prostitution
resources and of the
respect towards the social • Produce or trade
environment and substances that may
citizenship threaten the health and
safety of people, plants
and animals
Social & Environmental Policy
40
42. Sustainability and our Internal Stakeholders
Ethics Code
Fair Benefits to support
Training and
Compensation Health, Safety and
Qualification
Policy Quality of Living
Professional
Social Inclusion Job opportunities Intern and Trainee
Training for people
Initiatives for young people Programs
with disabilities
Social &
Knowledge Leadership
Environmental
Dissemination Development
Awareness
41
43. Sustainability and the Community
Education
Culture Sport
Indusval
Multistock
Institute
Community
Environment Development
Entrepreneurship
42
44. Investor Relations – Contact Information
Ziro Murata Jr. Banco Indusval S/A
IRO Rua Boa Vista, 356 – 7º andar
01014-000- São Paulo – SP
Phone: (55 11) 3315-6961
Brazil
E-mail: ziro@indusval.com.br
Maria Angela R. Valente
Head of IR IR Site:
Phone: (55 11) 3315-6821
www.indusval.com.br/ir
E-mail: mvalente@indusval.com.br
43
