1. Development
through
Innovation May, 2015

2. US$ million BNDES KfW CDB KDB
Brazil Germany China South Korea
2012 2012 2012 2012
Total Assets 367.825 657.347 1.191.597 147.067
Credit Portfolio 254.019 526.401 1.016.959 85.572
Net Profit 3.009 3.063 9.995 836
Return on Assets (%) 0,90 0,47 0,92 0,50
Non-perfoming loans (%) 0,06 0,21 0,30 1,60
Foundation 1952 1948 1994 1954
Employees 2.853 5.190 8.038 na
BNDES & Other Development Banks

3. InfrastructureInfrastructure
Heavy Industry – Consumer GoodsHeavy Industry – Consumer Goods
Technological DevelopmentTechnological Development
EnergyEnergy
AgribusinessAgribusiness
ExportsExports
Urban and Social DevelopmentUrban and Social Development
Social InclusionSocial Inclusion
InnovationInnovation
SustainabilitySustainability
Small BusinessSmall Business
50’s 60’s 70’s 80’s 90’s 00’s Today
Imports
Substitution
Imports
Substitution
Privatization
Program
Privatization
Program
Timeline

4. Innovation: Definition
“An innovation is the implementation of a
new or significantly improved product (good
or service), or process, a new marketing
method, or a new organisational method in
business practices, workplace organisation or
external relations.”
(Oslo Manual – 3ª Version)
“An innovation is the implementation of a
new or significantly improved product (good
or service), or process, a new marketing
method, or a new organisational method in
business practices, workplace organisation or
external relations.”
(Oslo Manual – 3ª Version)

5.  Increase production efficiency
 Create better quality jobs
 Improve competitive positioning of organizations
 Generate economic or social value
 Increase sustainable growth
 Increase environmental sustainability
 To blend various financial instruments (equity, debt, bonds, etc)
 To operate as a complement for other institutions within the Brazilian Innovation System
 To be present in all sectors of the economy
GuidelinesGuidelines
Objective:Objective: Capacity-building and the development of innovative environments to…
BNDES’ Innovation Policy

6. Performance Evolution
BNDES Innovation Disbursement
(US$ million)
(as % of total)

7. Innovation Financing
CompanyCompany ClientsClients
Business Plan
Investments
Acquisition of
Locally developed
products
Local companies development
through the support of
investment plans, innovation,
M&A and overseas initiatives
Global Companies that wish to
set Brazil into its global
development strategies, with
high local value aggregation
and/or exports from Brazil
Objective:Objective: To foster the Brazilian Innovation ecosystem through 2 initiatives
BNDES supports not only the companies, but also its clients!

8. BNDES’ priority: Innovation Policy and
instruments to support all companies
Equity
Closed and Open Mutual Funds
BNDES INNOVATION
PROSOFT, PROFARMA, PROPLASTICO, PRO-
Aeronautical, PRO-Engineering, BNDES O&G
SECTORIAL
Automatic
Produts
BNDES Card
BNDES Automatic
Financing
Lines
Direct Participation (stake in the company)
Criatec Program (Seed Money)

9. Eligible Items
CompanyCompany
* For some credit lines, when there’s no locally produced similar
Tangible and intangible assets
Technology
acquisition
Workforce
training
Lab
infrastructure
Locally
produced
equipment
R&D workforce
Physical
infrastructure:
Computers,
datacenters,
construction,
reforms,
furniture, tools
in general
Marketing
investments
Imported
Equipment*
Innovation
Strategies
Innovation
Investment Plan
(IIP)

10.  Repayment capacity
 Be commercially registered
 Tax and social securities obligations paid up and in order
 Have collateral to cover the operational risk
 Comply with environmental legislation
Borrower’s Requirements

11. Innovation Sample
Non-exhaustive

12. Innovation Sample - ICT
ALL public traded
TECH companiesin Brazil havebeen supportedby BNDES!
Non exhaustive

13. Fostering Brazilian Optical Technologies
Photonic Device Amplifier for Submarine ApplicationPhotonic Device Amplifier for Submarine Application
RESEARCH & DEVELOPMENTRESEARCH & DEVELOPMENT
INDUSTRY TRANSFERINDUSTRY TRANSFER
Integration of more than 120
optical components
Substantial reduction (up to 3x)
the cost of the amplifierIntegrated Photonic Chip
~ 120
Optical
components
Chip OTN Processor for Applications in 100 Gbit/s OTNChip OTN Processor for Applications in 100 Gbit/s OTN
40nm technology, 15mm x 15mm
220M Transistors

14. Final Remarks
Innovation is a strategic priority of our country
Government agencies have been engaged to enhance the country’s
innovation capacity
BNDES provides a wide range of financial instruments
Credit and Equity
Support for companies of all sizes and of all sectors
We expect private sector mobilization
OurOur main goalmain goal is tois to
accelerate innovationaccelerate innovation

15. http://www.bndes.gov.br/inovacao/
Francisco Coser
Manager - ICT Financing
+ 55 21 2172 7286
francisco.coser@bndes.gov.br
Thanks!

16. 16
BNDES Innovation
• Eligible Items: physical infrastructure + tangible and intangible assets
• Direct Operation: financing and/or capitalization
• Minimum Amount: R$ 1 million
• Participation: up to 70%
• Term of loan: up to 12 years
• Guarantees: defined during analysis
Innovation
Strategies
Innovation Investment
Plan (IIP)
CompanyCompany
Objective:Objective: to support innovative efforts that aims to increase
competitiveness and that are aligned with the strategy and outlined in
companies’ Innovation Investment Plans. It includes product, process or
marketing innovations and the investments to improve the competences
and technical knowledge in the country.
↑

17. BNDES Automatic
Objective:Objective: to provide financing, through Accredited Financial
Institutions, for implementation, expansion, recovery and modernization of
fixed assets, as well as projects in Research, Development and
Innovation, in the sectors of industry, commerce and agribusiness.
• Direct or indirect operation
• There is no minimum value
• Maximum amount: R$ 20 million
• It is divided into financing lines, with specific goals and financial conditions
• Participation: up to 90% of eligible items
• Term of loan: defined by the Accredited Financial Institution
Indicated
for
SM
Es
↑

18. Criatec
• Criatec I: R$ 100 million (80% BNDESPar) – end of investment period
• Criatec II: minimum of R$ 170 million (80% BNDESPar) – manager selection
period
• Criatec III: public contest coming
• Duration: 10 years (first four: investment period)
• Investment Policy
• Companies with maximum net turnover of R$ 10 million
• At least 25% of porfolio made of companies with net turnover under R$ 2.5 million
• Maximum investment per company: R$ 2.5 million
• Sectors under focus: IT, Biotechnology, New Materials, Nanotechnology,
Agribusiness, among others.
Objective:Objective: to capitalize innovative micro and small companies with
seed capital and offer them appropriate management support
↑

19. 19
BNDES Card
• Limit up to R$ 1 million by issuing bank
• Fixed installments within 48 months
• Revolving and pre-approved credit
• Automatic use
Small and
Medium-sized
Accredited
Suppliers
Based on the concept of a credit card, it aims to finance investments in
MSMEs in a fast and simplified fashion. In the case of innovation, the
process is to be financed, not the projects. Services are provided by
accredited suppliers.
↑

20. BNDES Card: Financial Conditions
Micro, small and medium size enterprises.
Clients
Revolving credit up to R$ 1 million,
for the acquisition of equipments, products
and services accredited by BNDES.
Credit Limit
0.99% p.m. (as of March, 2015)
Cost
From 3 to 48 equal and fixed monthly
installments.
Amortization Period

21. BNDES Card: Examples
Vehicles
FurnitureBuilding Materials
Computer &
Software

22. As of October,
2014:
663.000
R$ 51.5 billion
R$ 9.9 billion
R$ 77.000
254.000
63.000
Since its release, back in 2002, the BNDES Card has already held 3.26 million
transactions, totaling R$ 47.18 billion in disbursements.
BNDES Card: Statistics
Cards Issued
Total Credit
Disbursements 2014
Average Credit Limit
Accredited Products/Services
Accredited
Manufacturers and Retailers
R$ 14.000Average Ticket

23. 23
BNDES PROSOFT
• Eligible Items: R&D + physical infrastructure + tangible and intangible assets
• Direct Operation: financing and/or capitalization
• Minimum Amount: R$ 1 million
• Participation: up to 70%
• Term of loan: up to 8 years
• Guarantees: defined during analysis
Business Plan
Investments
Acquisition of Locally
developed software
CompanyCompany
Objective:Objective: To foster Brazilian IT industry through 2 initiatives
↑
ClientsClients
Local companies development
supporting investment plans,
innovation, M&A and overseas
initiatives
Global Companies that wish to set
Brazil into its global development
strategies, with high local value
aggregation and/or exports from
Brazil