DnB and Brazil

1. DnB and Brazil Seminar 15 September 2003

2. Why Brazil • Vast natural resources and familiar industries • Oil and Gas • Shipping and ship building • Energy • Pulp and paper • Developing country and many opportunities • Large market • Huge foreign direct investments • International business environment • Improving infrastructure

3. Challenges • Things takes time …sometimes a lot of time • In Brazil • In the banks • Even in your own company … because • High risk market • "New" market – financial structures and legal matters not standardized • Short term and volatile market • Complex tax system and legal framework • Unfamiliar business culture

4. Solutions To succeed you need • A good lawyer • A good accountant • A good bank …and • A good priest

5. So why DnB as your good bank… • Our only interest in Brazil is to serve our clients … and that is a long term dedication • Many years of experience • Representative office since 1970 • Extensive network • Fully competitive on structures and solutions • And the Latin American Desk here in Norway for your daily assistance and consultation

6. …when exporting • Trade Finance instruments • To support short and long term trade • To reduce risk • To secure correct and precise payment • To finance credit periods • Export Financing • Favorable financing solutions for Norwegian export • Covering commercial and political risk • In cooperation with GIEK and often Exportfinans • Short term and long term • Buyers and suppliers credit • Creative and reliable structures using our Trade Finance products • Discounting of receivables • Making your future income available today • Reducing risk on your balance

7. …when investing In projects or other long term investments • Structure the financing alone or in cooperation with other banks and institutions • GIEK • BNDES • IFC • Use trade finance, guarantees and other risk hedging instruments • Involve a large network of competent players to structure solid, legal and profitable financial solutions • Search for efficient methods of transferring your funds in and out of the investments • Structure adequate pledges and securities

8. BNDES Brazilian development bank offering cheap financing in Brazil • In 2001 DnB was the first international bank, with no banking services in Brazil, to be accredited by BNDES • Since then • Developed a strong and good relationship • With our guarantees, Norwegian companies have been able receive BNDES financing for 3 vessels in Brazil • In pipeline 3-5 new projects • Terms and conditions • Financing for up to 20 years depending on the project • Interest rates of 4-6%, depending on the guarantee package • US dollar linked loans but disbursement in Reais • Financing of up to 90% of contract value

9. Conexión Americas • Alliance of local banks in Latin America • In Brazil • Unibanco • Partners outside Latin America • Bank of America • Den norske Bank • Providing local banking services on our behalf • Our customers are their customers • More attention • Better service • Lower prices • Providing cross boarder cash management solutions • Strong and close relationship enabling us to better structure financing, transferring funds, taking and reducing risk

10. Our promise As Brazil is a complex and high risk market, financing will not always come • When you want it • How you want it • And at the price you want BUT, our promise is that we will always • Be available for our customers • Have the best intentions on behalf of our customers • Work hard to give our customers the best solutions when they need them