CAIXA ECONÔMICA FEDERAL
The largest fully-government owned bank in Latin
America, controlled by the Brazilian National
Treasury
Largest mortgage and savings bank in Brazil
Established in 1861 by Brazilian Federal Law
Main agent in executing government policies
Systemically important institution being the 2nd
largest Brazilian bank by deposits
Issuer Credit Ratings – Investment Grade
Balance Sheet March 2014
Total Assets R$ 910 billion
Total Deposits R$ 374 billion
Profitability and Productivity
Net Income (LTM) R$6.9 billion
ROE 23.5%
ROA 0.8%
Efficiency Ratio 59.5%
Total Capital Ratio 13.7%
Total Loan Delinquency Rate 2.6%
CAIXA at a GlanceCAIXA at a Glance
Highlights
Baa2
BBB-
BBB
+5,500 municipalities
+4,000 branches
+71 million clients
+21,000 3rd party sales
outlets
Source: Caixa Econômica Federal
CAIXA Main HighlightsLeadership position in Brazilian banking sector
CAIXA Main HighlightsLeadership position in Brazilian banking sector
By Total Assets
By Deposits and Local Bonds
By Total Loans
By Savings
In R$ billions In R$ billions
In R$ billions In R$ billions
Source: Caixa Econômica Federal
CAIXA’s Key Business ActivitiesCAIXA’s Key Business Activities
R$ 284.3 billion
67.6% market share
R$ 39.8 billion
CAGR 09-13: 45.1%
R$ 180.6 billion
9.8% market share
R$ 214.6 billion
35.0% market share
R$ 227.8 billion
8.7% market share
73.7 million clients
20,713 3rd party
outlets
R$ 2.9 billion raised
in 1Q14
13,020 outlets
R$ 6.5 billion
MORTGAGE
LENDING
SANITATION &
INFRASTRUCTURE
COMMERCIAL
LENDING
SAVINGS
ASSET
MANAGEMENT
DISTRIBUTION
NETWORK
LOTTERY
OPERATOR
PAYING AGENT
OF SOCIAL
BENEFITS
Source: Caixa Econômica Federal
Investment Opportunities in BrazilNew role of Shinkin Banks and Investment
� [March 29th, 2013] Revision of relevant enforcement ordinancesenabled Shinkin Banks to provide direct loans and loan guarantees fortheir corporative clients’ overseas subsidiaries.
o Order for Enforcement of the Shinkin Bank Acto Order for Enforcement of the Small and Medium-Sized Enterprise Cooperatives Acto Cabinet Office Ordinance on the Business of Credit Cooperatives and Credit Cooperative
Associations under the Small and Medium-Sized Enterprise Cooperatives Acto Ordinance for Enforcement of the Shinkin Bank Act
� Promotion of Japanese companies’ overseas business expansion bymeeting overseas funding demand of small and medium companies.
� [April 7th, 2014] Memorandum of Understanding (MOU) signedbetween Iwata Shinkin Bank and Caixa Econômica Federal regardingthe provision on loans for Iwata Shinkin Bank corporative clients’subsidiaries in Brazil.
Loans in Brazilian Real
Iwata Shinkin’s
Business Partners
(Overseas
subsidiaries)
Management Control
Iwata Shinkin’s
Business Partners
(in Japan)
Distribution of Profits
①Application
for a loan
④Repayment
of obligations
①Application
for Issuance
of Letter of
Credit
②Issuance
of Letter of
Credit
Memorandum
③ Loan (in
Brazilian real)
Source: Iwata Shinkin Bank
Japanese Companies in Brazil
Source: Teikoku Databank (TDB) based on data collected in April/2014
Size breakdownSize breakdownSize breakdownSize breakdownNumber of Number of Number of Number of enterprisesenterprisesenterprisesenterprises
Large 293
Medium-sized 120
Small 30
TotalTotalTotalTotal 443443443443
Large
66%
Medium-
sized
27%
Small
7%
Manufacturing
263Wholesale
Business, 61
Services , 40
Other Sectors, 37
Communication
and
Transportation, 20
Construction, 15
Retail Business, 4Real Estate
Business, 3
Sectoral DistributionSectoral DistributionSectoral DistributionSectoral Distribution
####Location of the Location of the Location of the Location of the
company's company's company's company's headquartersheadquartersheadquartersheadquarters
Number of Number of Number of Number of EnterprisesEnterprisesEnterprisesEnterprises
(%)(%)(%)(%)
1 Tokyo 214 48,3
2 Osaka 47 10,6
3 Aichi 41 9,3
4 Kanagawa 26 5,9
5 Kyoto 19 4,3
6 Shizuoka 14 3,2
7 Saitama 13 2,9
8 Hyogo 10 2,3
9 Chiba 7 1,6
10 Nagano 6 1,4
10 Hiroshima 6 1,4
By sizeBy sizeBy sizeBy size Location of HeadquartersLocation of HeadquartersLocation of HeadquartersLocation of Headquarters
Federal Concession ProjectsUS$ 175,7 billion in investments from 2014 to 2017
US$ 52 billion
6.4 thousand km of road construction
US$ 21.9 billion
Generation US$ 49.6 billion
Transmission US$ 16.4 billion
Source: Ministry of Finance (Seae/MF)
(US$ 1,00 = R$2,30)
US$ 12.1 billion
Ports construction and modernization
US$ 6.7 billion
PPP projects at State and Municipal levels
US$ 8 billion
US$ 9.1 billion
Source: Ministry of Finance (Seae/MF)
Federal Concession ProjectsUS$ 175,7 billion in investments from 2014 to 2017
Strong Work Force in BrazilFalling Unemployment Rate and Expansion of Real Income
Source: Brazilian Institute of Geography and Statistics (IBGE)
0
2
4
6
8
10
12
14
95
100
105
110
115
120
125
130
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Desemprego médio (%) Rendimento médio real (2003=100)AverageUnemployment Rate (%)
AverageReal Income (2003=100)
In 10 years, 40 million Brazilians have ascended to the middle class
Source: Getúlio Vargas Foundation (FGV)
A/B C D E
Social Stratification(population in million)
Social Economic Class Definition (US$)
ClassIncome Range
Minimum Maximum
A/B 3,700.50 -
C 858.42 3,700.50
D 537.13 858.42
E - 537.13
13 14 15 17 18 19 20 23 29
66 71 75 82 86 92 95105
118
4748
4948 46
45 4439
3249 45 41 35 34 30 29
2517
0
20
40
60
80
100
120
140
160
180
200
2003 2004 2005 2006 2007 2008 2009 2011 2014
7.6%
37.6%
26.7%
28.1%
14.9%
60.2%
16.4%
8.6%
11.8%
55.1%
20.3%
12.9%
Ipê Sakura
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