Apimec Presentation 2010

0

Public Meeting 2010São Paulo, August 19, 2010

1

DisclaimerThis 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.

2

� 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

3

Mid-sized Bank 42 year experience in the Brazilian financial Market

694 companies in the loan portfolio

Loan Portfolio

R$ 1.8 billion

Equity

R$ 430 million

Total Assets

R$ 3.0 billlion

Who is Banco Indusval Multistock?

11 branches

350 employees

Focused on Middle Market

lending

Date: June 30, 2010

Basel Ratio

20.3%

4

Our Pathway

�Foundation of Indusval Corretora – a brokerage House1967

�The partners of Ciampolini & Ribeiro acquire Indusval Corretora1971

�Middle-market credit operations started1993

�Indusval becomes a bank1991

�Partnership with Banco Multistock in a Consumer Finance enterprise2000

�Indusval merges with Multistock and starts to operate as BIM – Banco Indusval Multistock2003

�Consumer finance company sold - Capital infusion of R$60 million doubles the Bank’s shareholders’ equity 2004

�Beginning geographic expansion – Opening of 4 branches2006

�BIM becomes a publicly held company and celebrates 40 years of operations�Second expansion phase: opening of 6 branches by the end of year2007

�Start of BNDES onlending disbursements�First IFC A/B Loan transaction of circa US$ 56 MM in Oct/08�Recognition Award for Best Utilization of IFC GTFP

2008

�Strategic partnership established to develop the Brokerage Firm business�BIM was ranked 4th among the “Most Sustainable Midsize Banks in Latin America’’ *2009

Evolution

Growth

Origin

�Indusval Multistock Corretora de Valores acquires Execution Broker Seal from BM&FBOVESPAand improves its positioning in the BM&F market global Ranking2010

* Management & Excellence Consulting

5

About distribution of our capital

41,212,984(1,262,117)42,475,101TOTAL

14,212,984(1,262,117)15,475,101Preferred

27,000,000-0-27,000,000Common

#Shares onAug. 10, 2010

# Treasury Shares cancelled

# Shares on June 30, 2010

Type

Cancellation of treasury shares approved on August 10,2010

20,324,825

13,015,367

7,309,458

# Shares Free Float

49.32%(2,733,939)(18,154,220)41,212,984TOTAL

91.52%(159,570)(1,038,047)14,212,984Preferred

27.07%(2,574,369)(17,116,173)27,000,000Common

ManagementFree Float

Controlling Group

#Shares onAug. 10, 2010

Type

6

Shareholders’

Agreement

Manuel Felix Cintra Neto

Luiz Masagão Ribeiro

Carlos Ciampolini

Antonio G. da Rocha

Free Float = 49%

Who are our shareholders?

Controlling

Group (4)

51%

Management(10)

Ciampolini &

Ribeiro families(12)

Foreign Investors

(10)

Individuals(608)

PN

ON

Total

Institutional Investors

(86)

7%63%44%

1%10%6%

5%27%20%

31%-

11%

44%-

15%

12%-

4%

7

6.36.86.02.3

6.36.9

2.3

6.6

6.56.6

5.1

6.76.4

6.1

2.005 2.006 2.007 2.008 2.009 2.010

1Q 2Q 3Q 4Q

11.610.1

15.8

25.527.0

12.6

R$

mill

ion

Shareholder Remuneration

R$ 0.3022R$ 0.6423R$ 0.5994R$ 0.3688R$ 0.3249R$ 0.3657

Pay-out per share

We have been remunerating Shareholders by quarterly anticipating the payment

of Interest on Equity

8

9 members• 22% independent• 22% external

Installed on April 15, 20103 effective members

specialized in accounting & auditing

Executive Board9 members

Long lasting experience in the financial market

About our Corporate Governance Structure

General Meeting of Shareholders

Board of Directors

Fiscal Board

President

Superintendent

Internal Auditing

Compensation & Benefits Committee

Executive Board is supported by 5 committees:

Traesury, Credit, Compliance & Internal Audit, IT & Information

Safety and Legal

IR & TreasuryTrade Finance & Structured

CommercialsTreasury

AdministrativeCreditExecutive

• Listing on Bovespa Level 1 of Corporate Governance

• 100% Tag along

• Arbitration Panel Adherent

9





� Results


� Capital Market

� Sustainability

10

607 733

276

1,2271,410

1,529

2005 2006 2007 2008 2009 Jun/10

Free Resources Earmarked ResourcesSource: Banco Central do Brasil – Credit Information System - SCR

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 total loans in the system

R$

billi

on

11

0

10 0

2 0 0

3 0 0

4 0 0

50 0

6 0 0

D ec M ar Jun Sep t D ec M ar Jun Sep t D ec M ar Jun*

2 0 0 7 2 0 0 8 2 0 0 9 2 0 10

Free Resources

Earmarked Resources

Corporates

Individuals

R$

billi

on

Segmented development of credit volume in the syste m

Source: Banco Central do Brasil – Credit Information System - SCR

12

Corporate Credit

Mar Jun Sept Dec Mar Jun Sept Dec Mar Jun Sept Dec Mar Apr* May*

2007 2008 2009 2010

Up to R$100 tsd From R$100 tsd to R$10 million Over R$10 million

38%

46%

16%

43%

40%

17%

38%

45%

17%

44%

37%

19%

R$

billi

on

409 427 460508 540

639696 699

582

705748

788 801 806 825

Amount per Credit Agreement

Relation between amount of credit agreement and size of borrowerUp to R$ 100 thousand = Small Enterprises

from R$ 100 tsd to R$ 10 million = Mid-sized Enterprisesabove R$ 10 million = Large Corporates


13

3.6

6.6

5.0

0

1

2

3

4

5

6

7

8

9

10Dec

Dec Jan

Feb

Mar

Apr

May Jun

Jul

Aug

Sep

t

Oct

Nov

Dec Jan

Feb

Mar

Apr

May Jun

Jul

Aug

Sep

t

Oct

Nov

Dec Jan

Feb

Mar

Apr

May Jun

20062007 2008 2009 2010

Corporates Individuals Total

%

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

Default ratios in the Brazilian financial system


14



� Performance

�Loan Portfolio� Funding and Liquidity

� Results


� Capital Market

� Sustainability

15

Total Loan Portfolio

960

1,7631,7191,6991,6841,7281,7361,794

2,080

1,794

1,519

1,329

1,059

717

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

CAGR

+19% per quarte

r or 1

00% p.a.

CAGR: +7% per quarter or 31% p.a.

R$

mill

ion

16

1,4051,3861,4001,4301,460

2Q09 3Q09 4Q09 1Q10 2Q10

Disbursed Credits Assignments Guarantees issued

Local Currency Loans and Financing

CAGR -1.0% per quarter

-3.7% in the year

R$

mill

ion

17

267 254298

333 357

2Q09 3Q09 4Q09 1Q10 2Q10

Disbursed Loans Import L/Cs issued

CAGR +7.5% per quarter

+33.5% in the year

Trade Finance

R$

mill

ion

18

Manufacturing57%

Trading11%

Other Services

23%

Individuals

8%Financial Interm.

Credit Portfolio Breakdown

By Economic ActivityBy Segment

Middle Market

95%

Retail1%

Other4%

19

Securities & Deposits

4%

Monitored Pledge of

Goods10%

Real State10%

Pledge/ Lien6%

Receivables

47%

Aval PN21%

Vehicles2%

By CollateralBy Product

BNDES Onlending

4% Trade Finance

20%

Guarantees

Issued4%

Other4%

Loans & Discounts

68%


20

61 - 160 24%

11 - 60 32%

10 largest

19%Other 25%

Up to 90 days38%

91 to 18019%

181 to 360 15%

+360 days28%

By Client ConcentrationBy Maturity


21

Quality of Credit Portfolio

2.6%3.5%

8.1%6.9%

5.9%

2Q09 3Q09 4Q09 1Q10 2Q10

A33%

D-H12%

B28%

C27%

Risk Rating

107.8110.7

133.0118.2

133.4

2Q09 3Q09 4Q09 1Q10 2Q10

Default (+60 days)

Allowance for Loan Losses

R$

mill

ion

22




�Funding and Liquidity� Results


� Capital Market

� Sustainability

23

868 836

1,8811,8811,793

1,7321,772

1,5561,600

1,789

1,488

1,233

1,040

715

1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10

in Local Currency (Real) in Foreign Currency

CAGR

+17% per quarte

r or 8

4% p.a.

CAGR: +8% per quarter or 35% p.a.

R$

mill

ion

Total Funding

24

1,8811,8811,7931,7321,772

2Q09 3Q09 4Q09 1Q10 2Q10

Demand Deposits Interbank Dep. Time Deposits DPGE

LCA & other Onlending funds Foreign Loans

Funding Development and breakdownR

$ m

illio

n

CAGR +1.5% per quarter

+6.1% in the year

25

735 707 696 708 696

2Q09 3Q09 4Q09 1Q10 2Q10

R$

mill

ion

Free Cash

Free Cash = (Cash + S.T. Liquid Assets + Securities + Derivative Assets)

(-)

(Open Market + Derivative Liabilities)

26

383

293

533559

307 286

720

586

90 days 180 days 360 days above 360 days

Assets Liabilities

R$

mill

ion

Asset & Liability Management

27





�Results


� Capital Market

� Sustainability

28

102 94 93114 110

220 225

2Q09 3Q09 4Q09 1Q10 2Q10 1H09 1H10

+7.8%

+2.1%

Income from Financial Intermediation

Loans60%

FX Op17%

Derivatives6%

Securities

17%

R$

mill

ion

2nd quarter 2010

1st half 2010

Loans56%

FX Op.21%

Derivatives4%

Securities

19%

29

7088

6679 77

159 156

2Q09 3Q09 4Q09 1Q10 2Q10 1H09 1H10

+10.1%

-1.9%

Financial Intermediation Expenses

Open Market Funds

60%


16%

Borrowings, Assignment

s & Onlending

Funds24%

R$

mill

ion

2º Trimestre 2010

1º Semestre 2010

Open Market Funds

55%


15%

Borrowings, Assignment

s & Onlending

Funds30%

30

6.9%

5.1%

1S09 2S09 1S10

68.360.5

33.135.227.4

6.4

32.1

2Q09 3Q09 4Q09 1Q10 2Q10 1H09 1H10

+2.9%

+12.8%

Gross Result and Financial Margin R

$ m

illio

n

Quarter

Semester

6.8%

4.9%

2Q09 3Q09 4Q09 1Q10 2Q10

NIM GIM

NIM (Net Interest Margin) = Net of Loan Loss Allowance

GIM (Gross Interest Margin) = including Loan Loss Allowance

31

46%

61% 61%55%

45%

58%63%

2Q09 3Q09 4Q09 1Q10 2Q10 1H09 1H10

45.447.5

20.924.422.524.5 23.2

2Q09 3Q09 4Q09 1Q10 2Q10 1H09 1H10

Net Operating Expenses Efficiency Ratio

R$

mill

ion

Other Operating Expenses and Efficiency

-14.7%

-4.4%

32

Net Profit

Profitability

Net Recurring Result

15.616.1

8.37.3

-7.8

8.1

4.4

2Q09 3Q09 4Q09 1Q10 2Q10 1H09 1H10

R$

mill

ion

+2.5%

-3.1%

15.611.6

8.37.36.8

-7.8

2.4

2Q09 3Q09 4Q09 1Q10 2Q10 1H09 1H10

R$

mill

ion

+22.1%

+34. 5%

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

33





� Results

� Indusval Multistock Corretora de Valores(brokerage)

� Capital Market

� Sustainability

34

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 andmarkets 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



35





� Results


� Capital Market

� Sustainability

36

IDVL4 X IBOV - 2010

80

90

100

110

120

130

30/12

/2009

09/01/20

1019/0

1/2010

29/01

/2010

08/02/2

01018

/02/201

028

/02/2010

10/03/201

020

/03/201

030/0

3/2010

09/04/20

1019

/04/20

1029/0

4/2010

09/05

/2010

19/05

/2010

29/05/201

008/0

6/2010

18/06/2

01028/0

6/2010

08/07

/201018/0

7/2010

28/07

/2010

07/08

/2010

IBOVESPA IDVL4 IDVL4 Earnings Adjusted

37





� Results


� Capital market

� Sustainability

38

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

Commitment

39

� 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

Business Sustainability

40

Clients

Social & Environmental Responsibility Policy and Le nding

Expanding the Social Environmental action to

Corporate customers

Expectation:

To contribute for the awareness of people and

enterprises about the importance of the rational

utilization of natural resources and of the

respect towards the social environment and

citizenship

Lending prohibited to enterprises that:

• Utilize infantile or slavery labor

• Operate in activities directly or indirectly related to gambling & prostitution

• Produce or trade substances that may threaten the health and safety of people, plants and animals

Social & Environmental Policy

41

Sustainability and our Internal Stakeholders

Ethics Code

Fair Compensation

Policy

Social Inclusion Initiatives

Benefits to support Health, Safety and Quality of Living

Training and Qualification

Professional Training for people

with disabilities

Intern and Trainee Programs

Job opportunities for young people

Knowledge Dissemination

Leadership Development

Social & Environmental

Awareness

42

Indusval MultistockInstitute

Culture

Education

Sport

Community DevelopmentEnvironment

Entrepreneurship

Sustainability and the Community

43

Investor Relations – Contact Information

Ziro Murata Jr.

IRO

Phone: (55 11) 3315-6961

E-mail: [email protected]

Maria Angela R. Valente

Head of IR

Phone: (55 11) 3315-6821

E-mail: [email protected]

Banco Indusval S/ARua Boa Vista, 356 – 7º andar01014-000- São Paulo – SPBrazil

IR Site: www.indusval.com.br/ir

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