BNDES Institutional presentation - November 2019

1. BNDES
Institutional presentation
November 2019
Classification: Open Information
Management Unit: GP/DEMKT/GEMKT

2. General information
How we work: guidelines
How we work: BNDES card case
Financial performance
Social, cultural and environmental investments
BNDES website and social media
How we work: direct and indirect operations

3. General information // Highlights
Founded on
June 20th,
1952.
Main provider
of long-term
financing in
Brazil.
Emphasis on
financing
investment
projects.
Support to
micro, small and
medium-sized
companies is a
BNDES’
strategic priority
at the moment.
Key instrument
on the official
industrial and
infrastructure
policies.
100% State-
owned
company under
private law.

4. 1950 1960 1970 1980 1990 2000 2010 Today
Infrastructure
Heavy industry – consumer goods
Technological development
Imports substitution
Energy
Agribusiness
Urban and social development
Social inclusion
Exports
Privatization program
Innovation
Sustainability
Small business
Aspectos institucionais // Escritórios no BrasilGeneral information // Timeline
Service bank for the
Brazilian Government
Privatization program

5. FEDERAL REPUBLIC OF
BRAZIL
LEGISLATIVE EXECUTIVE JUDICIAL
MINISTRY OF ECONOMY
Aspectos institucionais // Escritórios no BrasilGeneral information // Group structure

6. Long-term investments financing
BNDESPAR FINAME
Equity participation Production and acquisition of Brazilian
machinery and equipment
Aspectos institucionais // Escritórios no BrasilGeneral information // Group structure

7. Team of 2,646 employees (as of October 2019)
96% of staff located in Rio de Janeiro
Aspectos institucionais // Escritórios no Brasil
Rio de Janeiro
Brasília
São Paulo
Recife
General information // BNDES’ team & offices
65% male and 35% female
All employees were hired for an indefinite period,
through a national public recruitment examination.

8. President
Advisory Board
President´s
Office
Ombudsperson
Aspectos institucionais // Escritórios no BrasilGeneral information // Organizational chart
Internal
Auditing
Communication
and Marketing
General Secretariat
Back Office Front Office
STRUCTURING OF
INVESTMENTS AND
CONCESSIONS
STRUCTURING OF
COMPANIES AND
DISINVESTMENT
INSTITUTIONAL
RELATIONSHIP
AND GOVERNMENT
GRANTING OF
DIRECT CREDIT AND
COLLATERALS
CAPITAL MARKETS
AND INDIRECT
CREDIT
LEGAL
OperationalInstitutional
FINANCIAL OPERATIONS
PEOPLE AND
CULTURE
COMPLIANCE

9. General Information
Strategic Planning

10. Different banks
Improve China's competitiveness and the
living standard of the people
Foster sustainable and competitive
development in the Brazilian economy,
generating employment while reducing social
and regional inequalities
Financial engine of Korea's takeoff,
Global KDB.
Responsible banking
with impact
Serve the future.
Different missions
General information // Benchmark

11. X X x X x
X x x x
x x x x X x x x
x x x x x x x x x x X X
X X X X X x x X x
x x x x x X X X X x
x x x x x x x x X X x x x x x
x x X X X x x x
x X X X x x
productive and economic
infrastructure transformation1
Continuous technological
advancement and
protagonism in key areas
3
Financing for development4
Competitive International
Insertion2
Permanent and Continuing
Social and Citizen
Transformation
5
territorial cohesion and right
to the city6
Vanguard in the
Environmental Agenda8
Sustainability as a basis for
development9
EconcmicSocialSustainable
Regional development7
General information // New Challenges

12. Mission
Vision
Values
Principles
Aspectos institucionais // Escritórios no BrasilGeneral information // Corporate Strategy
Enable financial solutions that add investments for the sustainable development of the Brazilian nation.
To be recognized as the development bank of Brazil for its relevance and effectiveness.
• Ethics.
• Public Spirit.
• Comittment to the Brazilian development.
• Transparency.
• Effectiviness .
• Dialogue.
• Cooperation. • Search for excellence.

13. General information // Corporate Strategy

14. General information
Funding

15. General information // Domestic and foreign funding
FOREIGN FUNDING
Government agencies and multilateral
institutions
Market funding
Bonds, loans, structured notes (ABS)
FAT – Workers’ Assistance Fund
 Government-established fund: social tax contribution over all
Brazilian enterprises net operating revenues (1988).
 Automatic transfer to BNDES as an undermined term, resulting
in a quasi equity funding mechanism.
 FAT transfers are independent of Federal Budget:
40% of FAT revenues are automatically transferred to BNDES.
60% used to pay unemployment insurance and training programs for workers.
 FAT is Remunerated at TLP (Long-Term Interest Rate).
PIS-PASEP Fund
BNDESPAR Bonds
National Treasury
DOMESTIC FUNDING

16. General information // Foreign loans
LENDER
NUMBER
OF LOANS
US$
MILLION
FIRST
LOAN
LAST
LOAN
PURPOSE
IBRD - Intl Bank for Reconstruction and
Development / World Bank
18 1.619 1953 1992
Infrastructure, Small and Medium-sized Companies, Environmental
Projects
USA Eximbank 6 43 1957 1971 Imported Equipment
JBIC - Japan Bank for International Cooperation 18 3.247 1962 2018
Productive Investments and Imported Equipment, Export-oriented
Brazilian companies, Climate Change Mitigation Projects
IABD - Inter-American Development Bank 22 8.963 1964 2017 Infrastructure, Productive Investments, SMEs
KFW - Kreditanstalt für Wiederaufbau (Germany) 15 1.215 1965 2017
Small and Medium-Sized Companies, Infrastructure, Renewable Energy
and Urban Mobility
Industrial Development Corporation (South Africa) 1 5 1969 1969 Imported Equipment
Export Credits Guarantee Department (England) 1 30 1976 1976 Imported Equipment
Eksportfinans ASA (Norway) 1 12 1978 1978 Imported Equipment
Skandinaviska Enskilda Banken (Sweden) 1 15 1980 1980 Imported Equipment
Nordic Investment Bank 4 320 2002 2015 Mutual Interest Projects
China Development Bank 1 750 2007 2007 Infrastructure Projects
European Investment Bank 1 666 2011 2011
Climate Change Mitigation Projects
AFD - Agence Française de Développement
1 206 2014 2014
Climate Change Mitigation Projects, Renewable Energy
and Energy Efficiency
SEK - Aktiebolaget Svensk Exportkredit
1 100 2014 2014
Projects of Mutual Interest
ICO - El Instituto de Crédito Oficial 1 228 2015 2015
Projects of Mutual Interest
New Development Bank 1 300 2017 2017 Renewable energy

17. General information // Structure of liabilities
8% 7%
16%
37%
46% 50% 53% 55% 58% 56%
50% 48%
38%
8% 6%
6%
4%
4%
4%
3%
4%
5% 6%
5% 5%
5%
67%
66%
53%
40%
30%
29% 27%
27%
26% 27%
30.6% 32%
36%
7%
9% 16%
12%
9%
8% 10% 9%
8% 7%
8% 8%
11%
10% 12% 9% 7%
12% 10% 7% 6% 4% 3% 6% 7% 10%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
National Treasury International borrowings FAT/PIS/PASEP Others Shareholder´s Equity
2019 & 2020
Return Financial
Resources to the
National Treasury

18. Fontes de RecursosGeneral information // Latest cash flow (2018)
64.0%
18.0%
7.0%
5.0%
3.0%
3.0%
Return on operations
Net Treasury Gains
FAT
Variable Income Portfolio
International and Other
National Funding
Others
As per “Return on operations” is the main source
of BNDES’ funds, it reflects the importance of
maintaining a good quality of the loan portfolio.

19. General information
How we work: guidelines
How we work: direct and indirect operations
How we work: BNDES Card case
Financial performance
Social, cultural and environmental investments
BNDES website and social media

20.  Companies: agribusiness, industry, infrastructure, trade and services etc.
 Cooperatives or associations
 NGOs, OSCIPs or foundations
 Rural producer
 Truckers
 Micro-entrepeneur
LEGAL ENTITIES
ESTABLISHED
IN BRAZIL
BRAZILIAN PRIVATE
INDIVIDUALS
BRAZILIAN PUBLIC
MANAGEMENT
 Municipalities
 States
 Federal
Guidelines // Who can be financed?

21. (*) When a company is under control of another or it is part of an economic group, the company size ranking
classification will consider the gross anual operational revenue of the economic group.
(**) Public administration will get the same financial conditions as those applied to large companies.
MSMEs: BNDES´priority
COMPANY
SIZE
Micro Small Medium Large
GROSS ANUAL
OPERATIONAL
REVENUE
Bellow
R$ 360
thousand
Bellow
R$ 4.8
million
Bellow
R$ 300
million
Above
R$ 300
million
Guidelines // Company size ranking

22. Guidelines // What can be financed?
Machine and equipment
Working capital and microcredit
Exports
Investment projects Innovation
Social and productive inclusion
BNDES Card Social, environmental, cultural and sports

23. General information
How we work: guidelines
How we work: direct and indirect operations
How we work: BNDES Card case
Financial performance
Social, cultural and environmental investments
BNDES website and social media

24. DIRECT OPERATIONS
Financing directly with BNDES
ENTERPRISE
How we work // Direct and indirect operations
INDIRECT OPERATIONS
Companies financed through an accredited
financial institution
Accredited
Financial
Institution
ENTERPRISE
Information &
Relationship

25. Borrower’s requirements
 Repayment capacity
 Be commercially registered
 Tax and social securities obligations paid up and in order
 Not be defaulter with BNDES nor undergoing a credit recovery process
 Have collateral to cover the operational risk
 Comply with environmental legislation
How we work // Borrower’s requirements

26. How we work
Direct operations

27. DIRECT OPERATIONS
Financing directly with BNDES
Industries SanitationPower plantsOil and gasExamples:
ENTERPRISE
How we work // Direct operations

28. Board of Directors
Analysis Team
Equipe de
Acompanhamento
Electronic
Consultation
Letter
Project
completion
Eligibility
Request for
financial
support
Analysis Contracting Follow up
Business, Credit,
and Legal
information
Project
development
Legal Team
Board of Directors
Technical Team
Project evaluation flow
How we work // Direct operations

29. How we work
Indirect operations

30. INDIRECT OPERATIONS
Financing by intermediation of an accredited financial institution
Accredited
Financial
Institution
ENTERPRISE
Information &
relationship
How we work // Indirect operations

31. Construction Heavy vehicles
Machinery and
equipment
Exports Agriculture
How we work // Indirect operations

32. 1st step
How to apply for financing indirectly?
2nd step 3rd step
 Identify/select the BNDES’ line of
financing
 Address the comercial bank of your
choice
 Submission of documentation
 Examination of the possibility of
granting the credit
 Negotiation of the conditions applied
to the financing
 Approval of the transaction
 Approval of the transaction
 Disbursement to commercial bank
Micro, small and medium-sized
companies
Commercial bank
How we work // Indirect operations

33. Cost of funds
Total interest rate
Funding Cost
TLP; TFB; SELIC;
Currency Basket; LIBOR
+
Direct Operations
BNDES’ margin
+
Financial intermediation rate
+
Commercial bank spread
=
Margin to cover
operational expenses
Financial institutions
systemic risk
Determined by
each institution
How we work // BNDES’ interest rate
Indirect Operations
Cost of funds
BNDES’ margin
Risk spread
Total interest rate
+
+
=
Margin to cover
non-performing loans

34. Financing for the production of
goods earmarked for export,
linked to specific shipments, or
to the increase of the
company’s total exports
Buyer or supplier credit: financing
for the commercialization of goods
and services in foreign countries
Pre-shipment
Production in Brazil
Post-shipment
Foreign trading
How we work // Export support - Credit lines
BNDES Exim

35. How we work // Export support - Credit lines
Competitive export
 To improve competitiveness of Brazilian products
 Emphasis on products with higher-aggregated value
Credit facilities
 Lines of financing designed to facilitate exports
Support for small and medium-sized export companies
 To increase the number of Brazilian exporters
Indirect operations aimed to small business
 Operating in partnership with a network of accredited financial institutions in Brazil and
over 100 foreign banks

36. General information
How we work: guidelines
How we work: direct and indirect operations
How we work: BNDES Card case
Financial performance
Social, cultural and environmental investments
BNDES website and social media

37. How we work
BNDES Card

38. BNDES Card

39. The BNDES Card limit allows the acquisition of equipment, products and
services accredited and available on the website.
CLIENTS Small business companies
CREDIT LIMIT Up to R$ 2 million per card
FINANCIAL COST 1.16% p.m. (As of october 2019)
AMORTIZATION PERIOD
From 3 to 48 equal and fixed
monthly installments
BNDES Card // Financial conditions
APPLICATION
As an indirect product, the card is issued by a
network of 11 accredited banks

40. General information
How we work: guidelines
How we work: direct and indirect operations
How we work: BNDES Card case
Financial performance
Social, cultural and environmental investments
BNDES website and social media

41. Financial performance
Disbursements

42. Disbursements // Annual disbursements
65
91
136
168
139
156
190 188
136
88
71 69
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
.
Annual Disbursements in R$ billion

43. Disbursments (% GDP)
Fontes: BNDES e IBGE
1.0
1.1
1.9 1.9
1.7
1.9 1.9
2.5
2.0 2.0
2.2 2.1
2.4
2.9
4.1
4.3
3.2 3.2
3.6
3.3
2.3
1.4
1.1 1.0
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
43

44. Disbursements // Disbursements by Size
25% 24% 21%
27%
36% 32% 33% 32%
27% 31%
42% 45%
75% 76% 79%
73%
64% 68% 67% 68%
73% 69%
58% 55%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Small business Large companies + Public administration

45. Disbursements // Disbursements by business sector
41% 43% 47% 47%
32% 31% 30% 27% 27%
34%
21% 18%
40% 39%
36%
31%
40%
34% 33% 37%
40% 29%
38% 44%
8% 6% 5%
6%
7%
7% 10% 9%
10% 16%
20%
21%
12% 12% 13% 16%
21%
28% 27% 28%
22% 21% 21% 17%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Industry Infrastructure Agriculture Trade and Services

46. Disbursements // By type of transaction
41%
47%
57%
44%
39%
46%
39%
45%
52%
45%
41%
50%
59%
53%
43%
56%
61%
54%
61%
55%
48%
55%
59%
50%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Direct operations Indirect operations

47. Disbursements // Disbursements by region
NORTH
R$ 3.5 bi
MIDWEST
R$ 9.4 bi
NORTHEAST
R$ 12 bi
SOUTHEAST
R$ 26.5 bi
SOUTH
R$ 18 bi
Data in R$ billion % BNDES Disbursement X % GDP
5.1% / 5,4% 17.2% / 14.3%
38.2% / 53.2%
13.5% / 10,1%
25.9% / 17%

48. (*) Converted to US dollar on the disbursement dates.
Disbursements // Disbursements to finance export
4.2
6.6
8.3
11.3
6.7
5.5
7.1
4.4
2.1
4.4
0.9 1.1
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Annual Disbursements to Export in US$ billion

49. Financial performance
Number of operations and Indicators

50. 0, 0%
30.987;
45%
38.317;
55%
298.152;
97%
10.128;
3%
Financial performance // Disbursements & Number of operations (2018)
Number of operationsDisbursements
Small business companies
Large companies and public administration
BNDES loans go to big companies... … but also to small business.
R$ 69.3 billion in
308.280 operations
with 152.887 clients.

51. Financial performance // Net profit
7.3
5.3
6.7
9.9
9.0
8.1 8.2
8.6
6.2 6.4 6.2
6.7
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
BNDES´net profit
(In R$ bilions)

52. Financial performance // Loan portfolio quality
One highlight is the excellent quality of BNDES loan portfolio which is better than the National Financial System average
RATING BNDES
NATIONAL FINANCIAL
SYSTEM
PRIVATE FINANCIAL
INSTITUCIONS
PUBLIC FINANCIAL
INSTITUCIONS
AA - C 94,7% 90,6% 90,3% 90,8%
D - G 2,2% 6,2% 6,2% 6,3%
H 3,1% 3,2% 3,5% 2,9%
Non-Performing *2,95% **2,87% N/A N/A
Source: National Financial System and Central Bank of Brazil.* Based on 30 days ** Based on 90 days
As of December 31, 2018

53. Financial performance // Non-performing loans
The increase of the BNDES’ default rate - in comparison to its recent historical data series -
is a consequence of the retraction of the Brazilian economy during the last two years.
Source: BNDES / Central Bank of Brazil.
0.20% 0.15% 0.14% 0.06% 0.01% 0.01% 0.06%
2.81%
2.08%
2.95%
4,3%
3,2%
3.60% 3.60%
3.00%
2.80%
3.40% 3.50%
3.25%
2.87%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
BNDES Sistema Financeiro Nacional

54. General information
How we work: guidelines
How we work: direct and indirect operations
How we work: BNDES Card case
Financial performance
Social, cultural and environmental investments
BNDES website and social media

55. BNDES has invested more than R$ 5.7 billion in the Brazilian culture (2007-2017).
Social, cultural and environmental investments // Social, cultural and sports
Sports
 Focus on canoeing and
paracanoeing
 Sponsorship of cultural
events
 Live music performances
at the BNDES Auditorium
 Exhibitions at the BNDES
Art Galery
EventsCulture
 Brazilian movie industry
 Restoration of historical
buildings
 Preservation of
collections (audiovisual,
archives etc.)
 Support to the Brazilian
Symphony Orchestra

56. General information
How we work: guidelines
How we work: direct and indirect operations
How we work: BNDES Card case
Financial performance
Social, cultural and environmental investments
BNDES website and social media

57. BNDES English version website and social media
TWITTER
twitter.com/bndes_imprensa
Learn more about BNDES wherever you are:
FACEBOOK
www.facebook.com/bndes.imprensa
YOUTUBE
www.youtube.com/bndesgovbr
SLIDESHARE
www.slideshare.net/bndes
WEBSITE
www.bndes.gov.br/english

58. facebook.com/bndes.imprensa
twitter.com/bndes_imprensa
youtube.com/bndesgovbr
slideshare.net/bndes
linkedin.com/company/bndes
BNDES Portal
www.bndes.gov.br
Business Services
0800 702 6337
International Calls
+55 21 2052 6337
Ombudsman
0800 702 6307
www.bndes.gov.br/ouvidoria
Contact us
www.bndes.gov.br/faleconosco
Thank you!