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