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

Thank you!