Retail Head ofBanco Cooperativo Sicredi

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

Loan OperationsR$ 545 Bi

R$ 870 BiR$ 1.184 Bi

Monthly Incomes (Average) R$ 583R$ 655

R$ 705

Illiteracy rate11% 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.

20142011200920072005 2016

Political continuity

Sources: IBGE (2010); BACEN (Central Bank of Brazil, 2010)

Brazil: competitive landscape

Mergers and acquisitions

A

B

C

D

E

Social Pyramid(monthly income)

The financial companies are searching for market segmentation to meet all the customers needs

~>300 U$S

~>150 U$S

~> 450 U$S

~> 1200 U$S

~> 3800 U$S

~>5700 U$S

Source: ABEP – Brazilian Association of Research (2011)

More than 4K branches

BanksBanKs of niche

and Segmented

Credit companies

Cards (‘monoliners’)

Credit Unions

(cooperatives)

Private Label

Retail

Not bankingCorrenponde

ntBanking Sites

Brazil: financial overview

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).

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

Branches EvolutionRetail Banks vs Sicredi

* 8 top retail banks in Brazil + Sicredi

Assets Evolution2010/2009

2010/09 Market

Average

2009/08 Market

Average

20%

7%

Source: BACEN (Central Bank of Brazil, 2010)

Timeline

Source: Sicredi

1902 2004

SavingsOperations

Start point:Begining of the Credit unionsin Brazil

1992

Brand

2009

Cards operations

2010

Accounting project with SAP

Partnership with Rabobank

Partnership: acquire

Partnership: TI outsourcing

Sicredi in Social Networks:‘Youth project’

1989

COCECRER-MT and MS

Union of Credit Unions

1985

COCECRER-PRUnion of

Credit Unions

1980

COCECRER-RSUnion of

Credit Unions

InsuranceBroker

2000

Sicredi in SP

2002 2005

Sicredi in GO, TO, PA e RO

1995

Sicredi’s Bank: the first cooperative-bank

in Brazil

Social Programs

Transformation Plan

Social Program

Social Program

2008

Sicredi in 11

states

Distribution

Credit Unions

Branches

ATM’sSicredi

(shared)

ATM’sSicredi

Members

Correnpondent

Banking Sites

Outsourced

ATM lot

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.

as of May 2011

Sources: Sicredi’s Sales Statement (May, 2011); Business Intelligence area

MT

BRC

PR & SP

SUL

120 1.128 2.367 1.848 2.144 679 6.461

14 118 226 199 282 78 369

12 52 132 83 129 41 844

30 385 801 430 603 191 4759

54 573 1208 1135 1130 359 489

Business evolution

Source: Sicredi’s Annual Report (2010)

Plan Real

Governance

Consortium Administrator

Cards Administrator

Insurance Broker

Sicredi Participações S.A.

1,84 MMMembers

Banco Cooperativo

Sicredi

Deposit AccountDeposit Account

DistributionDistribution

CreditCredit

ConsortiumConsortium

CardsCards

InsuranceInsurance

120 Credit Unions

1.128Branches

Hub PR & SP30 Cred. Unions

Hub MT14 Cred. Unions

Hub BRC12 Cred. Unions

Hub SUL54 Cred. Unions

InvestimentsInvestimentsRabobank

30% Bank

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.

CAS: Sicredi Administrative Center

23 BI on Assets11 BI in Loan portfolio2 MM of Cards

In May, 2011:

Sources: Sicredi’s Sales Statement (May, 2011); Data Base Marketing area

Relationshipwith members

1.128 Branches

Centralization model & scalability

4 Hubs (Central)

1 Administrative Center (CAS): Bank Sales strategy TI and Services Marketing Accounting Products

120 Credit Unions

Members

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.

CAS - Sicredi Administrative CenterSource: Sicredi’s Sales Statement (May, 2011)

Centralization model & scalability

Operations

Business/Relationship with members

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

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).

Members

Efforts to achieve efficiencies in operations and business

CAS(931 employees)

Hubs(798 employees)

Credit Unions/Branches(11.285 employees)

CAS supports more then 110 MM of transactions a year (33% through ATMs/Internet)

Sources: Sicredi’s Internal Report (May, 2011); IT Internal Report (April, 2011)

Strategical planning to keep the growth and scalability

CAPABILITIES

I

III

II

Cycles

Timeline

HOW

WHERE

Designed by

Maximization CORE

Expansion in new marketsExpansion in

current markets

15- Credit Cycle

9- Value proposal to members 11-Positioning

6-New (sub)segments

12- Branches and Channels 14- Social & Environmental

• Focus on the expansion in new states and big cities• Focus on the base and in

current cities

• Preparing to enlarge permeation in current states

• Focus on the expansion in current cities

• Preparing to enlarge permeation in new geographies and products

16- Commercial Model

19- Operational Model

2011-12 2012-14 2014-15

21- Systemic Structure

1-Current Members

13- Cost Management

2- New members 7-New states

8- Big cities

3-New cities (small & medium)

4-New products

5-New channels

10- Value proposal to cooperatives

22- Membership Development

20- People Management

18- Liquidity, Capital & Risk

17- Pricing & Rates

Sources: Bain & Company; Sicredi’s Planning and Compliance area

Social programs to keep the competitive advantage

Source: Sicredi’s Foundation (Jun, 2011)

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

“Be a cooperative”

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 keeps his competitive advantage (“be a cooperative”) through four main social responsibility programs with focus in cooperativism.

Sicredi’s

Foundation

Centralization’s results: marketing evolution

20102009 2011

Centralized Marketing Deployment

Sources: Sicredi’s Marketing area

Savings: ‘Poupedi’Savings: ‘Poupedi’ World Cup PromotionWorld Cup Promotion

‘Be an owner’‘Be an owner’‘Own the strength’‘Own the strength’

Portal and MobilePortal and MobileCRMCRM

‘Sicredi Racing’‘Sicredi Racing’

Executive DashboardExecutive Dashboard

Brand in branches and ATMs

Brand in branches and ATMs

InsuranceInsurance‘Força Premiada’: Sicredi’s

biggest Promotion‘Força Premiada’: Sicredi’s

biggest Promotion

Centralization’s results: realtime information

Sources: Sicredi’s Marketing area

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

Thank you!