Retail Head of Banco Cooperativo Sicredi

1. Retail Head of Banco Cooperativo Sicredi

2. Before to “get in” Sicredi let see “where” Sicredi is...

3. BRAZIL R$ 1.184 Bi R$ 870 Bi R$ 545 Bi R$ 705 Loan Operations R$ 655 R$ 583 Monthly Incomes (Average) 2005 2007 2009 2014 2016 2011 Illiteracy rate 11% 10% 9,6% Brazil is one of the countries that has been growing the most during the last few years. This growth is a result of a good economy that came from political changes that impacted the whole brazilian society. Political  continuity Sources: IBGE (2010); BACEN (Central BankofBrazil, 2010)

4. Brazil: competitive landscape The financial companies are searching for market segmentation to meet all the customers needs Social Pyramid (monthly income) More than 4K branches Banks BanKsofnicheandSegmented CreditUnions (cooperatives) Cards (‘monoliners’) Retail ~>5700 U$S A ~> 3800 U$S B ~> 1200 U$S C Private Label ~> 450 U$S D Creditcompanies ~>300 U$S E Not banking Correnpondent Banking Sites ~>150 U$S Mergers and acquisitions Source: ABEP – BrazilianAssociationofResearch (2011)

5. Brazil: financial overview Assets Evolution 2010/2009 2010/09 Market Average During the past two years (2009 and 2010) the total Assets of Sicredi kept the growth of 25% a year (above market averages* in the same period). 20% 2009/08 Market Average 7% Branches Evolution Retail Banks vs Sicredi In the aspect "number of branches“, Sicredi is among the 10 largest financial institutions in the country, with presence in 10 states and more than 880 cities * 8 top retail banks in Brazil + Sicredi Source: BACEN (Central BankofBrazil, 2010)

6. Timeline Transformation Plan Start point: Begining of the Credit unions in Brazil Social Program Savings Operations Social Programs Sicredi in Social Networks: ‘Youth project’ Partnership: TI outsourcing COCECRER-PR Union of Credit Unions Accounting project with SAP Brand Insurance Broker 2008 2005 2002 1980 1995 1989 2009 1902 1985 2000 2010 1992 2004 Sicredi in GO, TO, PA e RO Sicredi in 11 states Sicredi in SP COCECRER-MT and MS Union of Credit Unions Partnership: acquire Cards operations Sicredi’s Bank: the first cooperative-bank in Brazil COCECRER-RS Union of Credit Unions Social Program Partnership with Rabobank Source: Sicredi

7. Distribution Sicredi is present in 10 states across the country, with over a thousand Branches, and with access to over 10 thousand ATMs and 2 thousand Correspondent Banking sites. Credit Unions Correnpondent Banking Sites Outsourced ATM lot ATM’s Sicredi Branches Members ATM’s Sicredi (shared) MT BRC PR & SP SUL as of May 2011 Sources: Sicredi’s Sales Statement (May, 2011); Business Intelligence area

8. Business evolution Plan Real Source: Sicredi’sAnnualReport (2010)

9. Governance SicrediPar is the holding company, representing the 120 Credit Unions and managing the Bank, Confederation, and other companies. Credit Unions are grouped into 4 regional hubs. In May, 2011: 23 BI onAssets 11 BI in Loanportfolio 2 MM ofCards Sicredi Participações S.A. Banco Cooperativo Sicredi DepositAccount Hub SUL 54 Cred. Unions 120 CreditUnions 1.128 Branches CAS: Sicredi Administrative Center Distribution Hub MT 14 Cred. Unions Credit Rabobank Investiments 1,84 MM Members Hub PR & SP 30 Cred. Unions 30% Bank Consortium Administrator Consortium Cards Administrator Cards Hub BRC 12 Cred. Unions InsuranceBroker Insurance Sources: Sicredi’s Sales Statement (May, 2011); Data Base Marketing area

10. Centralization model & scalability To support the business model, Sicredi structured the Sicredi Administrative Center (CAS). This Center centralizes the operations of products, channels, marketing, accounting, and other areas. The CAS supports the entire institution with strategy and technical support, and its existence optimizes costs that probably would be spent on 120 credit unions and more than a thousand of branches. • 1 Administrative Center (CAS): • Bank • Sales strategy • TI andServices • Marketing • Accounting • Products Relationship withmembers Members CAS - Sicredi Administrative Center Source: Sicredi’s Sales Statement (May, 2011) 4 Hubs (Central) 120 CreditUnions 1.128 Branches

11. Centralization model & scalability CAS centralization makes Sicredi more efficient and safe. The institutions that have relationship with members (Credit Unions and Branches) can focus on business, and CAS (together with the Hubs) can give them a support with technology and operations (always fundamented by a systemic strategical plan). Business/ Relationshipwithmembers Operations Hubs (798 employees) CAS (931 employees) CreditUnions/Branches (11.285 employees) • Accounting systems • Regulatory compliance • Product development • Risk management • HR management • Marketing • Tools/ IT • Regulatory compliance • Risk management • HR regional support • Marketing reg. support • Risk analysis • Compliance Efforts to achieve efficiencies in operations and business CAS supports more then 110 MM of transactions a year (33% through ATMs/Internet) Members Sources: Sicredi’sInternalReport (May, 2011); IT InternalReport (April, 2011)

12. Strategical planning to keep the growth and scalability Expansion in new markets III Designedby Expansion in current markets II I Maximization CORE • Focus on the expansion in new states and big cities • Focus on the expansion in current cities • Preparing to enlarge permeation in new geographies and products Cycles • Focus on the base and in current cities • Preparing to enlarge permeation in current states Timeline 2011-12 2012-14 2014-15 WHERE 3-New cities (small & medium) 1-Current Members 6-New (sub)segments 4-New products 7-New states 2- New members HOW 5-New channels 8- Big cities 11-Positioning 9- Value proposal to members 10- Value proposal to cooperatives 13- Cost Management CAPABILITIES 14- Social & Environmental 12- BranchesandChannels 15- Credit Cycle 19- Operational Model 16- Commercial Model 17- Pricing & Rates 18- Liquidity, Capital & Risk 20- People Management 21- Systemic Structure Sources: Bain & Company; Sicredi’sPlanningandCompliance area 22- Membership Development

13. Social programs to keep the competitive advantage Sicredi keeps his competitive advantage (“be a cooperative”) through four main social responsibility programs with focus in cooperativism. “Be a cooperative” Main social responsibility program of Sicredi: aims to strengthen the cooperative and entrepreneurial culture in society through education. Gives opportunity to Sicredi’s members (and future members) to assimilate the role of owner of a collective enterprise Aims to improve the process of participation of members in the management and development Aims to preserve corporate memory and serve as a source of consultation Sicredi’s Foundation Source: Sicredi’sFoundation (Jun, 2011)

14. Centralization’s results: marketing evolution Local brand, known for credit and unfamiliar business model Known brand, recognized for financial products Centralized Marketing Deployment 2009 2010 2011 Restructure Institutional Advertising ‘Own the strength’ Brand in branches and ATMs ‘Be an owner’ ‘Sicredi Racing’ Portfolio (Product Advertising) Insurance ‘ForçaPremiada’: Sicredi’s biggest Promotion World Cup Promotion Savings: ‘Poupedi’ Business Intelligence Portal and Mobile Executive Dashboard CRM Sources: Sicredi’s Marketing area

15. Centralization’sresults: realtimeinformation Sources: Sicredi’s Marketing area

16. Centralization’s results: accounting with SAP • Tax and Accounting process optimization • Standardization of processes in accounts payable  • Reduction of operational risks through the integration process Sources: Sicredi’s IT area

17. Thank you!