2013 Annual Report

BUSINESS PERFORMANCE BUSINESS PERFORMANCE PRIVATE EQUITY Equity Investments The Banks's Equity Investments area is focused on identifying investment opportunities in business with a high potential for growth and quality management while providing attractive financial returns for the Bank. Such investments are made with the Bank's proprietary assets and favor businesses that are part or could potentially become part of its client base. Created in 2008, this area has already reviewed more than 180 opportunities in a number of sectors and has invested a total of R$ 1.1 billion. In 2013, we highlight the payout of R$ 59 million in dividends and interest on equity to the Bank by Transmissora Aliança de Energia S.A; and the increase by R$ 112 million in the stock held by the Bank in Sete Brasil Participações. In line with our conduct of investing in innovative projects focused on sustainability, Santander Brazil also completed an investment in the stock of Ambievo, a newly created company with business that comprise the development of sustainable solutions for land cleanup and manufacturing degreasing. MANTIQ Mantiq is the private equity fund manager of Santander Brazil. Its role is to create profits for the capital of clients via investments in privately-owned companies with strong potential for growth. Focused on sectors such as infrastructure and oil & gas, the company closed the year with approximately R$ 2.4 billion in managed assets, which places it as one of the top asset managers in the country in the infrastructure sector. As of December 2013, Mantiq managed four funds: InfraBrasil, Caixa Ambiental, Brasil Petróleo I and Brasil Petróleo II. In 2013, the committees for these funds approved investments for the amount of R$ 308 million, of which R$ 190 million were placed by December. In this context, the first investments of Funds Fundos Brasil Petróleo I and Brasil Petróleo II were effected, with the completion of the Caixa Ambiental investment period. In a favorable position for focusing its operations on sectors that are deemed priority in the country's development agenda, Mantiq expanded its activities in 2013 while enjoying a gross revenue growth of 4.7%, arising out of management fees, with total revenues of R$ 14 million. The company is also one of the investment engines of Santander Brazil in renewable energy. The Bank supports this sector via the A&CS and Equity Investments areas while strengthening its position and becoming a member in funds managed by Mantiq. The Bank invested approximately R$ 40 million in the funds InfraBrasil and Caixa Ambiental, with an ownership interest in companies such as Renova (wind power), Cerp (Small Hydropower Plants) and Sikué (biomass). Together, the five companies in the sector that are part of the asset manager's portfolio have a potential for the generation of 600 MW. 100 90 80 70 60 50 40 MANTIQ, SANTANDER BRAZIL PRIVATE EQUITY MANAGER, EXPANDED ITS GROSS REVENUES BY 4.7%, TO R$ 14 MILLION " SANTANDER BRAZIL'S OPERATIONS ARE DIVIDED INTO TWO MAIN AREAS: COMMERCIAL BANK AND WHOLESALE BANK. IN EVERY SEGMENT, THE BANK'S STRATEGY IS TO BECOME A SIMPLE BANK WITH A CLOSE RELATIONSHIP WITH THE BANK'S CLIENTS, INCREASING LOYALTY AND TRANSACTIONALITY. IN 2013 THE BANK PROVIDED LOANS OF R$ 2 BILLION IN PROJECTS AND INITIATIVES IN BUSINESSES THAT PROMOTE SUSTAINABLE DEVELOPMENT. IT'S THE WAY TO INFLUENCE SOCIETY TOWARDS THIS PATH WHILE INTEGRATING ECONOMIC RESULTS WITH POSITIVE SOCIAL AND ENVIRONMENTAL RESULTS. 30 Operations at Ambievo a company in which Equity Investments has an ownership interest. 32.9% RISE IN INDIVIDUAL MORTGAGE LOANS, THE HIGHEST GROWTH RATE IN THIS SEGMENT 90 Annual Report 2013 R$ 1 1.1. BILLION TOTAL INVESTED BY THE EQUITY INVESTMENT AREA SINCE ITS INCEPTION IN 2008 91

View entire presentation