1. Apresentação dos
Resultados do 3T07
4Q07 Results
Presentation
9 de novembro de 2007
January 23, 2008
1H07
1
2. The Bank's financial statements and consolidated financial statements
herein are presented on a pro forma basis, encompassing the financial
statements of the Bank, its subsidiaries, the Credit Receivables Investment
Funds (FIDC) and insurer J. Malucelli Seguradora.
They were prepared based on the accounting practices pursuant to Brazilian
Corporate Law, and associated with the regulations and instructions issued
by the National Monetary Council (“CMN”), the Brazilian Central Bank
(“BACEN”) and the Brazilian securities and exchange commission Comissão
de Valores Mobiliários ("CVM") (“BR GAAP”).
2
3. Summary
General Overview 4
Operational Highlights 5
Origination Evolution 6
Surety Bond Market 7
Franchise: an innovative sales channel 9
Alternative Channel x Comissions/Originations 10
Total Assets and Equity 11
Period Result Composition (R$ x 1,000) 12
Financial Highlights Summary 13
Credit Portfolio 14
Financial Revenue and Loan Assignments 15
Credit Portfolio Quality 16
Loan Assignment 17
Funding Structure (R$ x 1,000) 18
Operating Income and Expenses 19
J. Malucelli Seguradora – Performance 20
Ratings 21
Corporate Governance 22
Share Price Evolution 23
3
4. General Overview
Private multiple bank focused on payroll-deductible and the middle-market segment
Focus in profitability and a low-risk customer base (civil servants, private-sector
employees and retirement beneficiaries, and pensioners under the INSS social security
system)
At the close of 2007, the Bank had 715 payroll-deduction loan agreements (state and
private entities)
Loan portfolio for middle-market operations totaled R$ 98.9 million on December
31, accounting for 8.2% of the total loan portfolio
4 sales channels: brokers, call center, franchises and regionals
The Franchise Channel closed the year with 60 operational units spread through
several important regions of the country, exceeding the initial annual target of 30
units
Paraná Banco concluded the acquisition of 100% of J. Malucelli Seguradora, as
outlined in the IPO Prospectus
4
5. Operational Highlights
Total Originations (R$ mm) Number of Agreements
1,013.9 715
682.7 519
365.2
192.5
4Q06 4Q07 2006 2007 4Q06 4Q07
5
7. Surety Bond
Market
Annual Evolution – Surety Bond
Net premiums written (R$ x 1,000)
315,775
(2000-2007)
OTHER
CAGR market =22%
CAGR J. Malucelli = 33% ACE SEGURADORA S.A.
205,368
194,664
BERKLEY INTERNATIONAL DO BRASIL
164,550 167,642
SEGUROS S.A.
134,749
UBF GARANTIAS & SEGUROS S/A
98,639
77,946 AUREA SEGUROS S/A
J. MALUCELLI SEGURADORA S/A
28% 24% 34% 30% 37% 42% 50%
27%
2000 2001 2002 2003 2004 2005 2006 2007
•Data until November 2007
Source: SUSEP
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8. Surety Bond
Market
Claim Volume and Claim Ratio Evolution
80000
70000
60000
50000
R$ x 1,000
40000
30000
20000 50%
10000
40%
0
2000 2001 2002 2003 2004 2005 2006 2007
30%
Claim Volume - Market Claim Volume J. Malucelli Seguradora
20%
10%
0%
2000 2001 2002 2003 2004 2005 2006 2007*
•Data until November 2007
Source: SUSEP Claim Ratio - Market Claim Ratio - J. Malucelli Seguradora
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9. Franchise: an innovative
sales channel
Exclusivity and long-term agreements
Low initial investment and low operating costs
Initial activities in march 2007
The target for 2008 remains at 210 units in operation
The Franchise Channel closed the year with 60 operational
units
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10. Alternative Channel x
Comissions/Originations
Evolution of Alternative Distribution Channels * 28%
21%
Begin of Franchise
Operations
9% 10%
% of Payroll
Deductible
7%
Loan
6% 5% Origination
3%
1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07
Comissions / Originations (% of Payroll Deductible Loans Origination)
1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07
8.1% 8.1% 7.2% 7.9% 7.6% 8.1% 9.2% 7.4%
* Sales channels: brokers, call center, franchises and regionals
10
11. Total Assets and Equity
(R$ x 1,000)
Total Assets Shareholders’ Equity
1,881,567
776,572
920,877
197,775
4Q06 4Q07 4Q06 4Q07
11
12. Period Result Composition
(R$ x 1,000)
4Q07
504
21,212 21,384
2007
Net Income Non-Recurring IPO Net Adjusted
expenses Income
24.505
13,217
113.450
75,728
Net Income Non-Recurring IPO Deferred Comissions Period Result
expenses Adjustment
12
13. Financial Highlights
Summary
Variation Variation
4Q06 4Q07 2006 2007
4Q06 x 4Q07 2006 x 2007
Net Adjusted Income 13,419 35,620 165.4% 52,120 75,728 45.3%
IPO related expenses 504 13,217
Deferred Commission
24,505
Result
Adjusted Net Income 13,419 36,124 169.2% 52,120 113,450 117.7%
Annualized Return over average
26.2% 18.6% -7.6p.p 27.6% 18.2% -9.4p.p
Equity (%)
Annualized Intermediary margin of
22.9% 16.8% -6.1p.p. 23.1% 15.3% -7.9p.p.
financial operations (%)
13
14. Credit Portfolio
(R$1,000)
Total Credit Portfolio, including credit assignments to the FIDC’s, grew
up to R$ 1,172.1 million in the 4Q07.
Loan Portfolio (R$ x 1,000)
1,172.1
1,080.5
623.2
19.6%
88.1%
4Q06 3Q07 4Q07
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17. Loan Assignment
Operation with Loan Assignment
Operation retained in Balance Sheet
% Net Income over Financial Income
% Net Income over Financial Income
Reduction of 45%
Results grow 45x
20.9%
19.9%
11.6%
0.4%
1st Month End of Contract 1st Month End of Contract
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18. Funding Structure
(R$ x 1,000)
844.061
844,061
56.922
56,922
578.859
578,859
102.471
102,471
787.139
787,139
476.388
476,388
4Q06
4T06 4Q07
4T07
Total Medium term notes
Deposits Medium term Total
notes
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19. Operating Income
(Expenses)
Operating Income (Expenses)
Variation Variation
4Q06 4Q07 2006 2007
4Q06 x 4Q07 2006 x 2007
Personnel expenses (3,920) (5,520) 40.8% (13,599) (18,305) 34.6%
Other administrative
(17,253) (25,099) 45.5% (76,688) (106,984) 39.5%
expenses
Other Expenses (8,842) (15,369) 73.8% (20,436) (32,703) -60.0%
IPO expenses - (504) - (19,506)
Commissions Expenses
(8,411) (9,226) 9.7% (56,252) (54,775) -2.6%
(Loan Origination)
Other operating expenses (758) 10,522 - 5,561 17,785 219.8%
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21. Ratings
Rating /Rating
Classificação Rating / Ranking
Índice / Classificação
Rating / Ranking
Rating / Classificação Rating Rating
brBBB+ 11.39 brA- A-
Low Credit Risk Low Risk - Medium Term Low Credit Risk Low Credit Risk
June 2007 September 2007 October 2007 June 2007
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22. Corporate Governance
The Board of Directors of Paraná Banco authorized on 19 October
2007, a stock buyback program. The program provides for the
purchase of up to 4,156,481 preferred shares until October 15,
2008.
Paraná Banco hired Banco UBS Pactual to act as market maker for
its preferred shares for a period of six months, automatically
renewable, with the objective of increasing liquidity in the
shares.
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24. IR Contact
Luis César Miara André Nacli
CFO and Investor Relations Officer IR Analyst
Ph: (55 41) 3351-9961 Ph: (55 41) 3351-9645
Ricardo Rosanova Garcia Mauricio N. G. Fanganiello
IR Manager IR Coordinator
Ph: (55 41) 3351-9812 Ph: (55 41) 3351-9765
e-mail: ir@paranabanco.com.br
IR Website: www.paranabanco.com.br/ir
“This document may include estimates and forward-looking statements. These estimates and forward-looking statements are to a large extent based on current
expectations and projections about future events and financial trends that affect or may come to affect our business. Many important factors may adversely affect
the results of Paraná Banco as described in our estimates and forward-looking statements. These factors include, but are not limited to, the following: the Brazilian
and international economic conjunctures, fiscal, foreign-exchange and monetary policies, higher competition in the payroll deductible loan segment, the ability of
Paraná Banco obtain funding for its operations, and amendments to Central Bank regulations.
The words “believe”, “may”, “could”, “seek”, “estimate”, “continued”, “anticipate”, “plan”, “expect” and other similar words have the objective of identifying
estimates and projections. The considerations involving estimates and forward-looking statements include information related to results and projections, strategies,
competitive positioning, the environment in the industry, growth opportunities, the effects of future regulations, and the impacts from competitors. Said estimates
and projections refer only to the date on which they were expressed, and we do not assume any obligation to publicly update or revise any of these estimates
arising from the occurrence of new information, future events, or any other factors. In view of the risks and uncertainties described above, the estimates and
forward-looking statements contained herein may not materialize. Given these limitations, shareholders and investors should not make any decisions based on the
estimates, projections and forward-looking statements contained in this report.
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