2011 - BNDES

Transcription

2011 - BNDES

Banco Nacional de Desenvolvimento
Econômico e Social - BNDES
(Free translation from the original previously
issued in Portuguese)
Consolidated Financial Statements for
the year ended December 31, 2011 and
Independent Auditor’s Report
Deloitte Touche Tohmatsu Auditores Independentes
Deloitte Touche Tohmatsu
Av. Presidente Wilson, 231 - 22º
Rio de Janeiro - RJ - 20030-905
Brasil
Tel: + 55 (21) 3981-0500
Fax:+ 55 (21) 3981-0600
www.deloitte.com.br
(Free translation from the original previously issued in Portuguese)
INDEPENDENT AUDITOR’S REPORT
To the Shareholders and Management of
Banco Nacional de Desenvolvimento Econômico e Social - BNDES
Rio de Janeiro, RJ
We have audited the accompanying consolidated financial statements of Banco Nacional de
Desenvolvimento Econômico e Social - BNDES and its subsidiaries (“Bank”), which comprise the
balance sheet as at December 31, 2011, and the income statement, statement of comprehensive
income, statement of changes in equity and statement of cash flows for the year then ended, and a
summary of significant accounting policies and other explanatory information.
Management’s Responsibility for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial
statements in accordance with International Financial Reporting Standards (IFRS), and for such
internal control as management determines is necessary to enable the preparation of financial
statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with Brazilian and International Standards on Auditing. Those
standards require that we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor’s
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor considers
internal control relevant to the Bank’s preparation of the financial statements in order to design
audit procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the Bank’s internal control. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of
member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description
of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.
© Deloitte Touche Tohmatsu. All rights reserved.
Deloitte Touche Tohmatsu
Opinion
In our opinion, the consolidated financial statements present fairly, in all material respects, the
consolidated financial position of Banco Nacional de Desenvolvimento Econômico e Social BNDES and its subsidiaries as at December 31, 2011, and its consolidated fomamcoaç
performance and its consolidated cash flows for the year then ended in accordance with
International Financial Reporting Standards (IFRS) issued by the International Accounting
Standards Board - IASB.
Other Matters
Individual Financial Statements
Banco Nacional de Desenvolvimento Econômico e Social - BNDES and its subsidiaries prepared a
set of individual and consolidated financial statements for the year ended December 31, 2011 in
accordance with accounting practices adopted in Brazil presented separately, for which we have
issued a separate, unqualified independent auditor’s report, dated February 13, 2012.
The accompanying financial statements have been translated into English for the convenience of
readers outside Brazil.
Rio de Janeiro, February 17, 2012
DELOITTE TOUCHE TOHMATSU
Auditores Independentes
© 20121 Deloitte Touche Tohmatsu. All rights reserved.
Marcelo Cavalcanti Almeida
Engagement Partner
2
Consolidated balance sheet
(In thousands of Brazilian reais - R$)
ASSETS
Note
Cash deposits in banks
Interbank investments
Securities
Derivative financial instruments
Current income tax and social contribution assets
Deferred income tax and social contribution assets
Interbank onlendings
Loan investments
Other receivables
Other assets
Investments in associates and other investments
Property, plant and equipment
Intangible assets
5
6
7
18
18
8
9
10
11
TOTAL ASSETS
LIABILITIES
Deposits
Repurchase agreements
Debentures issued
Borrowings and onlendings
Hybrid instrument issued
Subordinated debt
Financial and development funds
Current income tax and social contribution liabilities
Deferred income tax and social contribution liabilities
Pension obligations
Provisions
Other payables
12
12
13
14
15
16
17
7
18
18
19
20
21
TOTAL LIABILITIES
Share capital
Earnings reserve
Other comprehensive income
Retained earnings
22
Total equity
TOTAL LIABILITIES AND EQUITY
At December 31,
2011
At December 31,
2010
5,821
5,365,875
155,036,447
590,205
425,131
3,192,021
207,815,005
219,420,938
16,220,388
583,635
19,374,391
115,136
40,819
15,897
10,113,958
145,857,047
272,082
422,025
1,418,348
180,730,640
183,187,393
17,641,279
285,459
13,684,702
98,488
40,834
628,185,812
553,768,152
21,046,859
7,808,271
12,055,287
334,248,613
13,775,298
125,218,366
32,687,740
545,592
1,204,609
10,718,273
1,640,442
795,616
2,052,583
21,573,906
12,726,922
272,186,665
13,234,016
110,689,308
31,406,440
717,874
551,960
16,473,685
1,480,268
756,711
2,179,016
563,797,549
483,976,770
36,340,507
9,260,368
15,412,165
3,375,223
29,557,415
7,045,298
29,296,552
3,892,117
64,388,263
69,791,382
628,185,812
553,768,152
The accompanying notes are an integral part of these consolidated financial statements.
3
Consolidated income statement
Year ended December 31,
Note
Revenue from financial intermediation
Loan investments and interbank onlendings
Gain on securities
Income from transactions linked to Brazilian National Treasury
Management fees of funds and programs
Income from sale of fixed income securities
23
24
Expenses on financial intermediation
Funding operations - financing and onlendings
Loss on derivatives linked to debt instruments
Expenses on transactions linked to Brazilian National Treasury
Reversal (recognition) of allowance for impairment losses
Loss on foreign exchange portfolio
25
26
27
Gross profit from financial intermediation
Other operating income (expenses)
Share of profits from investment in associates
Net inflation adjustment of assets and liabilities - SELIC
Reversal (recognition) of allowance for impairment losses on investments in
associates
Dividend income
Income from interest on capital
Gain (loss) on disposal of equity instruments
Gain (loss) on derivatives linked to equity instruments
Other income from equity instruments
Reversal (recognition) of provisions for labor and civil contingencies
Tax expenses
Personnel expenses
Administrative expenses
Other operating income
Other operating expenses
11
26
Profit before income tax and social contribution
Current income tax and social contribution
Deferred income tax and social contribution
18
18
Profit for the year
2011
43,378,854
31,899,937
6,253,757
4,881,261
343,899
-
30,805,942
19,333,672
8,043,347
2,924,830
499,813
4,280
(37,381,802)
(36,904,322)
(691,072)
(15,053)
209,077
19,568
(22,196,066)
(22,970,237)
(1,148,053)
(66,621)
2,003,846
(15,001)
5,997,052
8,609,876
5,435,113
1,213,236
488,058
4,415,982
439,349
107,386
(126,158)
1,225,978
2,943,216
1,715,872
688,735
(1,475)
(65,495)
(653,161)
(1,149,257)
(463,938)
187,097
(567,595)
(174,188)
635,639
1,667,902
3,014,904
681,963
(2)
26,436
(592,512)
(1,136,292)
(306,629)
531,317
(479,291)
11,432,165
13,025,858
(2,506,682)
(394,443)
(4,007,074)
(161,447)
8,531,040
8,857,337
4
2010
Consolidated statement of other comprehensive
2011
Profit for the year
2010
8,531,040
8,857,337
(13,988,163)
(4,119,075)
Realization through sale of adjustment to fair value of shares classified as
available-for-sale - net of taxes: R$199,310 in 2011 and R$597,534 in 2010
(386,896)
(1,159,919)
Associates’ assets
Equity valuation adjustments to assets
Cumulative translation differences
686,460
(195,788)
205,681
(81,418)
(13,884,387)
(5,154,731)
(5,353,347)
3,702,606
Own assets
Adjustment to fair value of financial assets classified as available-for-sale - net of taxes:
R$7,206,023 in 2011 e R$2,121,948 in 2010
Total comprehensive income for the year
5
Consolidated statement of changes in equity
Share
capital
Balance at January 1, 2010
Share capital increase
Reversal of reserves
Supplementary dividends (Note 22.3)
Profit for the year
Allocation of profit
. Payments to shareholder (Note 22.3)
Prepayment of interest on capital
Supplementary interest on capital
Prepayment of dividends
. Legal reserve
. Tax incentive reserve
. Future capital increase reserve
. Operating margin reserve
Balance at December 31, 2010
Share capital increase
Reversal of reserves
Supplementary dividends (Note 22.3)
Profit for the year
Allocation of profit
. Payments to shareholder (Note 22.3)
Interest on capital (*)
. Legal reserve
. Tax incentive reserve
. Future capital increase reserve
. Operating margin reserve (Note 22.2)
Earnings reserves
Future
share
Operating
capital
increase
margin
reserve
reserve
Legal
reserve
Valuation
Valuation
adjustments
Cumulative
adjustments
to equity translation
to equity Associates’
differences of
Own assets
assets
associates
Tax
incentive
reserve
Retained
earnings
Total
20,260,881
1,519,676
1,701,914
3,814,428
206,339
34,786,471
(335,325)
137
5,179,549
67,134,070
9,296,534
-
(1,182,918)
-
(748,307)
(953,607)
-
(3,814,428)
-
(165,309)
-
(5,278,994)
-
205,681
-
(81,418)
-
4,768,035
(4,768,035)
8,857,337
7,200,000
(4,768,035)
(5,154,731)
8,857,337
-
507,239
-
1,442,602
-
4,697,484
20,185
-
-
-
-
(738,365)
(771,598)
(1,967,296)
(507,239)
(20,185)
(1,442,602)
(4,697,484)
(738,365)
(771,598)
(1,967,296)
-
29,557,415
843,997
1,442,602
4,697,484
61,215
29,507,477
(129,644)
(81,281)
3,892,117
69,791,382
6,783,092
-
-
-
(4,697,484)
-
-
(14,375,059)
-
686,460
-
(195,788)
-
4,697,484
(4,697,484)
8,531,040
6,783,092
(4,697,484)
(13,884,387)
8,531,040
-
452,397
-
1,281,227
-
5,124,909
54,021
-
-
-
-
(2,135,380)
(452,397)
(54,021)
(1,281,227)
(5,124,909)
(2,135,380)
-
36,340,507
1,296,394
2,723,829
5,124,909
115,236
15,132,418
556,816
(277,069)
3,375,223
64,388,263
(*) Of the balance reported, R$84,028 thousand was not paid in 2011, thus corresponding to a balance payable as at December 31, 2011.
6
Consolidated statement of cash flow
2011
2010
Cash flows from operating activities
Profit for the year
Adjustments not affecting cash
8,531,040
2,488,223
8,857,337
1,764,920
(209,077)
65,495
126,158
(1,213,236)
(357,295)
(4,481)
30,335
2,901,125
1,149,199
(2,003,846)
(26,436)
144,395
(439,349)
(1,056,349)
29,793
21,924
4,168,520
926,268
. Interest on borrowings and onlendings
. Income tax and social contribution paid
(25,063,649)
(63,061,663)
(30,478,491)
(3,783,669)
74,177,889
541,282
7,808,271
1,806,410
(10,834,641)
(1,239,037)
(14,665,453)
(75,143,089)
(18,817,381)
(13,995,580)
123,116,295
845,100
(13,740,763)
(2,841,709)
(9,474,089)
(4,614,237)
Net cash provided by (used in) operating activities
(14,044,386)
(4,043,196)
(720,406)
15,882
553,175
(36,914)
(10,053)
(198,316)
(133,556)
1,565,129
495,108
(19,105)
(33,767)
1,873,809
Net cash provided by (used in) financing activities
14,529,058
(5,878,686)
(1,820,833)
6,829,539
11,163,252
(2,548,925)
2,025,000
(783,616)
9,855,711
Decrease in cash and cash equivalents
(7,413,163)
7,686,324
14,095,553
6,409,229
6,682,390
14,095,553
(7,413,163)
7,686,324
Reversal of allowance for impairment losses
Recognition (reversal) of provision for labor and civil contingencies
Recognition of allowance for impairment losses on investments in associates
Share of profit from investments in associates
Gain (loss) on sale of investment in associates and securities
Adjustments to fair value on the exchange of shares
Realization of equity valuation adjustments to assets
Goodwill amortization
Depreciation
Tax credit realization, net
Inflation adjustment of debentures issued
Changes in assets and liabilities
. Increase in financing receivables, net
. Increase in securities, net
. Increase in other assets, net
. Increase in borrowings and onlendings, net
. Increase in hybrid instrument, net
. Increase/(decrease) in repurchase agreements, net
. Increase/(decrease) in other liabilities, net
Cash flows from investing activities
. Purchase of investments in associates and securities
. Sale of investments in associates and securities
. Dividends receivable from associates
. Additions to property, plant and equipment
. Additions to intangible assets
Net cash provided by (used in) investing activities
Cash flows from financing activities
. Increase in subordinated debt
. Payment of dividends
. Issue of debentures
. Payables from debentures issued
Changes in financial position
Cash and cash equivalents at beginning of year
Cash and cash equivalents
Cash and cash equivalents at end of year
Cash and cash equivalents (i)
Increase/(decrease) in cash and cash equivalents
Transaction not affecting cash
(i) Breakdown of cash and cash equivalents
At December 31,
2011
At December 31,
2010
Interbank investments (note 5)
Exclusive mutual funds (note 6.2)
5,821
5,365,875
1,310,694
15,897
10,113,958
3,965,698
Total
6,682,390
14,095,553
7
Notes to the consolidated financial statements
For the year ended December 31, 2011
(Amounts in thousands of Brazilian reais - R$, unless otherwise stated)
1.
GENERAL INFORMATION
Banco Nacional de Desenvolvimento Econômico e Social - BNDES (“BNDES” or “Bank”)
was established on June 20, 1952, under Law 1628, as a government agency. Subsequently,
Law 5662 and Decree 68786, both of June 21, 1971, converted BNDES into a state-owned
company under private law and own equity, subject to general budget and accounting rules
and specific regulations established by Conselho Monetário Nacional - CMN (the National
Monetary Council).
The BNDES Group, consisting of BNDES and its subsidiaries, is Federal Government’s
main instrument to grant long-term loans, focused on incentives to local private enterprise.
The Bank’s structure is designed to promote national development and job creation by
prioritizing:
•
•
•
•
•
•
infrastructure investments;
investments in base inputs to revive industrial growth;
exports;
local technology;
support to small and medium businesses; and
continental integration within South America.
In addition to operating as a development bank, the BNDES has an important role in the
design of national development policies and pinpointing solutions for structural issues of the
Brazilian economy.
BNDES also operates through its wholly-owned subsidiaries BNDES Participações S.A. BNDESPAR, which invests in local companies by subscribing shares and convertible
debentures, and Agência Especial de Financiamento Industrial - FINAME, which supports
the expansion and modernization of Brazilian industry by financing the purchase of
machinery and equipment and export of goods and services, and BNDES Limited, a
company based in London, United Kingdom, whose business purpose is to act as a holding
company for investments in securities in any country, thus contributing to the
internationalization of Brazilian companies.
The consolidated financial statements were approved by the board of directors and
authorized for issue on February 14, 2011.
8
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of the significant accounting policies adopted in the preparation
of these consolidated financial statements. These policies have been applied consistently for
all annual reporting periods.
2.1
Basis of preparation and statement of compliance
The consolidated financial statements have been prepared in accordance with
International Financial Reporting Standards ("IFRS") issued by the International
Accounting Standards Board ("IASB") and the interpretations of the International
Financial Reporting Interpretations Committee ("IFRIC") effective on December 31,
2011. As at December 31, 2011, all mandatory standards and interpretations were fully
adopted in these consolidated financial statements.
The preparation of consolidated financial statements requires Management to make
judgments to determine and record accounting estimates. Actual results could differ
from these estimates. The areas that involve judgment and the use of estimates,
material for the consolidated financial statements, are disclosed in Note 3 - Critical
accounting estimates and judgments.
(a) Standards issued but not yet adopted by BNDES
In 2011, no standard, amendment or interpretation was early adopted by BNDES.
Although the early adoption is promoted by the IASB, BNDES is prevented from
early adopting any standard, as prescribed by Bacen Resolution 3853/10.
The following new standards, amendments and interpretations were issued by the
IASB but are not yet effective in 2011:
. IAS 1 - "Presentation of Financial Statements" (amended in June). The main
change was the requirement for entities to group items presented in ‘other
comprehensive income’ (OCI) on the basis of whether they are likely to to
reclassified to profit or loss subsequently (reclassification adjustments). The
amendments do not address which items should be presented in other
comprehensive income. The consolidated financial statements of BNDES will
not be impacted. Amendments effective for reporting periods beginning on or
after July 1, 2012.
9
. IAS 27 - "Consolidated and Separate Financial Statements" and IAS 28
“Investments in Associates”. Change in scope as a result of the issuance of
IFRS 10, IFRS 11 and IFRS 12. Management is assessing the potential impact
from adopting these amendments on BNDES. Effective for reporting periods
beginning on or after January 1, 2013.
. IAS 19 - “Employee Benefits” (amended in June 2011). The main changes
refer to: (i) elimination of the corridor approach, (ii) recognition of all actuarial
gains and losses in other comprehensive income, when earned or incurred, (iii)
immediate recognition of all past service costs in profit or loss, and (iv)
substitution of interest cost and expected return on the plan assets for a net
interest amount that is calculated by applying the discount rate to the defined
benefit net asset (liability). Management is assessing the potential impact from
adopting these amendments on BNDES. Effective for reporting periods
beginning January 1, 2013.
. IFRS 9 - “Financial Instruments”. IFRS 9 supersedes parts of IAS 39 where it
relates to the classification and measurement of financial instruments. IFRS 9
requires financial assets to be classified into two categories: those measured at
fair value and those measured at amortized cost. The determination is made
upon initial recognition. The classification base depends on the entity’s
business model and the contractual cash flow characteristics of the financial
instrument. BNDES is yet to determine the full impact of IFRS 9. However,
initial indications are that it may affect the accounting for available-for-sale
financial assets because IFRS 9, despite allowing recognition of fair value
gains and losses in other comprehensive income if they refer to equity
investments, does not allow such gains and losses to be subsequently
reclassified to profit or loss. In the current reporting period, BNDES
recognized R$386,896 in profit or loss for 2011 (R$1,159,919 in 2010) arising
from the sale of equity investments classified as available-for-sale financial
assets.
For financial liabilities, the standard keeps most of the requirements set by IAS
39. The main change addresses cases where the fair value option is adopted for
financial liabilities, the changes in the fair value arising from the entity’s credit
risk is accounted for in ‘other comprehensive income’ rather than in the
income statement, except when it gives rise to an accounting mismatch. The
consolidated financial statements of BNDES will not be impacted. Effective
for reporting periods beginning January 1, 2013.
10
. IFRS 10 - “Consolidated Financial Statements”. The standard relies on existing
principles by identifying the concept of control as the factor to determine
whether an entity should be included in the consolidated financial statements of
the parent company or not. The standard provides additional guidance to
determine control. The consolidated financial statements of BNDES will not be
impacted. Effective for reporting periods beginning January 1, 2013.
. IFRS 11 - “Joint arrangements” (issued in May 2011). The standard addresses
more reasonable definitions of joint arrangements by focusing on the rights and
obligations of the arrangement rather than its legal form. There are two types of
joint arrangements: (i) joint operations - when a joint operator has rights to the
assets and obligations relating to the arrangement and consequently accounts
for its interest in the assets, liabilities, revenue and expenses; and (ii) joint
control - when the operator has rights to the net assets of the arrangement and
accounts for the investment under the equity method. The proportionate
consolidation method will no longer allowed with respect to joint control. The
financial statements of BNDES will not be impacted. Effective for reporting
periods beginning January 1, 2013.
. IFRS 12 - “Disclosure of Interests in Other Entities”. The standard addresses
the disclosure requirements for all types of interests in other entities, including
joint arrangements, associates, special purpose entities and other off balance
sheet interests. BNDES is assessing the impact of IFRS 12. Effective for
reporting periods beginning January 1, 2013.
. IFRS 13 - "Fair Value Measurement" (issued in May 2011). IFRS 13 is
designed to improve consistency and reduce complexity of fair value
measurement by providing a more precise definition and a single source of fair
value measurement and disclosure requirements for application in the IFRS.
The requirements, which are significantly aligned between IFRS and US
GAAP, do not extend the use of fair value accounting but provide guidance on
how it should be applied where its use is already required or permitted by other
IFRS or US GAAP standards. The financial statements of BNDES will not be
impacted. Effective for reporting periods beginning January 1, 2013.
There are no other IFRS standards or IFRIC interpretations that are not yet
effective and that could have a material impact on BNDES.
11
2.2
Consolidation
The consolidated financial statements includes BNDES and its wholly-owned
subsidiaries FINAME, BNDESPAR, and BNDES Limited.
Subsidiaries are entities whose financial and operating policies can be established by
the BNDES and in which generally owns more than half of the voting power. The
existence and the effect of potential voting rights, exercisable or convertible, are taken
into consideration to determine whether the BNDES controls another entity.
Subsidiaries are fully consolidated from the date in which control is obtained and
cease to be consolidated when control no longer exists.
The subsidiaries’ accounting policies have been adjusted to ensure their consistency
with the accounting policies adopted by the BNDES.
The consolidation of the balance sheet and income statement accounts corresponds to
the sum of assets, liabilities, income and expenses, according to the nature of each
balance, with the following eliminations:
2.3
•
intragroup investments, reserves and retained earnings (accumulated losses);
•
intragroup transactions;
•
intragroup unrealized profit or losses within the annual reporting period; and
•
taxes on the portion of unrealized profit or losses, stated as deferred income tax
and social contribution liabilities in the consolidated balance sheets.
Investments in associates
An associate is an entity over which the BNDES, through its subsidiary BNDESPAR,
has significant influence over its financial and operating policies, and that is neither a
subsidiary nor a joint venture. It is presumed that BNDESPAR has significant
influence if it holds 20 percent or more of the voting power of the investee. There is no
presumed significant influence when there is no participation in an investee’s
decisions, even holding 20 percent or more of the voting power.
Management understands that certain equity interests held by BNDESPAR that
represent 20 percent or more of the voting power do not grant significant influence on
such entities, primarily because there is no involvement in the definition of the
operating and financial policies of the investee. On the other hand, management
judged it has significant influence on entities where holds less that 20 percent of the
voting power because it influences the operating and financial policies of such
investees.
12
Investments in associates are measured by the equity method of accounting and are
initially recognized at cost. The carrying amount is increased or decreased for postacquisition changes in the Bank’s share of the net assets of the associates. The Bank’s
share of the profits from investments in associates is recognized in income statement,
and the share of other comprehensive income is indirectly reflected in equity.
If the share of losses of an associate equals or exceeds the carrying amount of its
interest in the associate, including any long-term assets that, in substance, form part of
the investor’s net investment in the associate, BNDESPAR does not recognize
additional losses that might be incurred in legal or constructive obligations of making
payments on behalf of the associate.
The associates’ financial statements have been adjusted for, when necessary, to ensure
their consistency with the accounting policies adopted by the BNDES Group
companies.
Gains and losses due to dilution or increase in the percentage of equity interests in
associates are recognized in income statement for the year they occur.
Investments in associates include goodwill arising on acquisition, net of any
accumulated impairment loss (see note 2.14 on impairment losses on non-financial
assets). Goodwill is measured as the excess of the consideration paid (or commitments
payable) and the fair value of the net assets acquired.
The bargain purchase gain measured on the acquisition of an associate is recognized in
income statement on acquisition date.
The financial information of associates accounted for the equity method of accounting
is summarized in Note 11.2.
2.4
Operating segments
The segment information report is presented consistently with the internal report
provided to the chief operating decision maker, responsible for allocating resources to
the segments and assessing their performance. The term ‘chief operating decision
maker’, as defined in IFRS 8 Operating Segments, comprises the collective
management activities carried out by our officers, thus representing the management
of BNDES. The ‘Segment Information’ report is disclosed in Note 29.
13
2.5
Translation of foreign currencies
(a) Functional and presentation currency
The consolidated financial statements of the BNDES Group were prepared using
its functional currency (the Brazilian real), which is the currency of the primary
economic environment in which the BNDES Group companies operate. The
Brazilian real is also the presentation currency of the Bank’s consolidated
financial statements.
(b) Balances and transactions
Transactions denominated in foreign currency are initially recognized in the
functional currency using the exchange rate prevailing on the dates the
transaction.
Foreign exchange differences arising on the settlement of such transactions and on
the translation of foreign currency-denominated monetary assets and liabilities
using exchange rates prevailing the end of the reporting period are recognized in
income statement.
2.6
Financial assets
2.6.1 Classification
BNDES classifies its financial assets in the following categories: measured at
fair value through profit or loss, loans and receivables, held-to-maturity, and
available-for-sale.
Classification depends on the purpose for which financial assets have been
obtained. Management determines the classification of its financial assets upon
initial recognition and reassesses this classification at the end of the semiannual
or annual reporting periods.
(a) Financial assets measured at fair value through profit or loss
This category includes financial assets held-for-trading or those designated
as at fair value through profit or loss on indicial recognition (fair value
option).
A financial asset is classified as held-for-trading if it has been acquired
principally for the purpose of selling it in the near term or if it is a
derivative.
14
The Bank’s management elected to designate at fair value through profit or
loss on initial recognition of debentures with embedded derivatives that
change significantly its cash flows. Thus, as BNDES elected to designate
these debentures at fair value through profit or loss on initial recognition,
embedded derivatives do not have to be separated.
(b) Loans and receivables
Non-derivative financial assets with fixed or determinable payments that
are not quoted in an active market. Loans and receivables are measured at
amortized cost using the effective interest method, less the allowance for
impairment losses. Interest income is also recognized using the effective
interest method.
(c) Held-to-maturity financial assets
Non-derivative financial assets with fixed or determinable payments and
fixed maturity dates that management has the positive intent and ability to
hold to maturity. These assets are measured at amortized cost using the
effective interest method less any impairment, with revenue recognized on
an effective yield basis.
(d) Available-for-sale financial assets
Non-derivative financial assets held for an indefinite period that can be
sold in response to liquidity requirements or changes in interest or
exchange rates, or share prices.
Gains and losses arising from changes in fair value are recognized in
‘Other comprehensive income’, net of taxes. Impairment losses, accrued
interest, and foreign exchange gains and losses are recognized in income
statement. When an investment is sold or impaired, the accumulated gain
or loss previously recognized in ‘Other comprehensive income’ is
reclassified to income statement.
2.6.2 Initial recognition and measurement
Financial assets are recognized when BNDES becomes a party to the
contractual provisions of the instrument.
All financial assets are initially recognized on trade date at fair value, when
BNDES agrees to the purchase or sale of an instrument, except for loans,
advances, and regular purchase and sale transactions that require delivery of
the financial asset within the timeframe established by the market concerned,
which is recognized as the settlement date.
15
Financial assets at fair value through profit or loss are initially measured at fair
value, and the transaction costs and origination income are recognized directly
in income statement. Financial assets classified in other categories are initially
measured at fair value plus transaction costs and origination income.
2.6.3 Subsequent measurement
Financial assets classified as available-for-sale and at fair value through profit
or loss are subsequently measured at fair value. Financial assets classified as
loans and receivables and held-to-maturity are measured at amortized cost
using the effective interest method.
The effective interest method is a method of calculating the amortized cost of a
financial asset or liability and of allocating interest income or expense over the
relevant period. The effective interest rate is the rate that is applied on future
payments or receipts through the expected life of the financial instrument.
When calculating the effective interest rate, BNDES estimates cash flows
considering all contractual terms of the financial instrument, but does not
consider future credit losses. The calculation includes possible transaction
costs, origination income, and other premiums or discounts. When a financial
asset or group of similar financial assets has been written down as a result of an
impairment loss, interest income is thereafter recognized using the rate of
interest used to discount the future cash flows for the purpose of measuring the
impairment loss.
Gains or losses arising from changes in the fair value of financial assets at fair
value through profit or loss are allocated to income statement in the period they
occur.
Gains or losses arising from changes in the fair value of available-for-sale
financial assets are recognized in a separate component of equity (valuation
adjustments to equity) until the financial asset is derecognized or impaired.
In this case, the cumulative gain or loss previously recognized in “Other
comprehensive income” is reclassified to income statement. However, interest
calculated using the effective interest method and gains or losses arising on
exchange differences of monetary assets classified as available-for-sale are
recognized in income statement. Dividends on an available-for-sale equity
instrument are recognized in income statement when the entity’s right to
receive payment is established.
16
2.6.4 Derecognition
BNDES derecognizes a financial asset only when the contractual rights to the
cash flows from the asset expire, or when it transfers the financial asset and
substantially all the risks and rewards of ownership of the asset to another
entity.
2.6.5 Reclassification among categories of financial instruments
Reclassification is only permitted in rare circumstances or isolated cases where
the instrument(s) to be reclassified meet the requirements of the new category.
There were no reclassification in the year ended December 31, 2011 and 2010.
2.6.6 Impairment of financial assets
(a) Assets measured at amortized cost
BNDES assesses at the end of each reporting period whether there is any
objective evidence that a financial asset of group of financial assets,
measured at amortized cost, may be impaired.
A financial asset or a group of financial assets is impaired and impairment
losses are incurred if, and only if, there is objective evidence of
impairment as a result of one or more events that occurred after the initial
recognition of the asset (a ‘loss event’) and that loss event (or events) has
an impact on the estimated future cash flows of the financial asset or group
of financial assets that can be reliably estimated.
BNDES considers the following loss events as objective evidences of
impairment:
•
•
•
default for 90 days or greater;
customer bankruptcy or financial reorganization; and
Court-supervised reorganization.
In addition, the BNDES monitors the following qualitative items that may
indicate an evidence of impairment:
•
•
•
•
downgrading internally monitored risk rating
fraud;
renegotiation that affects the original cash flows of the transaction
(decrease); and
loss contractual guarantees.
17
The estimated period between the time the loss event occurs and the time it
is internally identified based on the materiality of the credit is six (6)
months for significant credits and twelve (12) months for insignificant
credits.
The BNDES assesses whether objective evidence of impairment exists for
financial assets that are individually significant. If the BNDES determines
that no objective evidence of impairment exists, it includes the credits in a
group of financial assets with similar credit risk characteristics and
collectively assesses them for impairment. Assets that are individually
assessed for impairment and for which an impairment loss is or continues
to be recognized are not included in a collective assessment of impairment.
When performing a collective assessment of impairment, the BNDES
groups the financial assets by similar credit risk characteristics. Future
cash flows of a group of financial assets that are collectively evaluated for
impairment are estimated on the basis of contractual cash flows and
historical loss experience for assets with credit risk characteristics similar
to those in the group. Historical loss experience is adjusted on the basis of
current observable data to reflect the effects of current conditions that did
not affect the period on which the historical loss experience is based and to
remove the effects of conditions in the historical period that do not exist
currently.
The BNDES reviews regularly the methodology and assumptions used for
estimating future cash flows to reduce any differences between loss
estimates and actual loss experience.
If, in a subsequent period, the amount of the impairment loss decreases and
the decrease can be related objectively to an event occurring after the
impairment was recognized, the previously recognized impairment loss is
reversed either directly or by adjusting an allowance for impairment losses
account. The amount of the reversal is recognized in income statement.
(b) Available-for-sale assets
The BNDES assesses, at the end of each reporting period, if there is
objective evidence that a financial asset or group of financial assets
classified as available-for-sale is impaired. The BNDES uses the same
criteria established for financial assets carried at amortized cost to assess
debt securities.
18
As for equity securities classified as available-for-sale, in addition to the
criteria established for financial assets carried at amortized cost, objective
evidences of impairment include a significant or prolonged decline in the
fair value of an investment in an equity instrument below its cost.
When such objective evidences exist for available-for-sale financial assets,
the cumulative loss - which is measured as the difference between the
acquisition cost and the fair value at the end of the reporting period, less
any impairment loss previously recognized for the same financial asset - is
derecognized from equity and recognized in income statement. Impairment
losses recognized in income statement for an investment in an equity
instrument classified as available-for-sale are not reversed, while if its fair
value increases and the increase can be objectively related to an event
occurring after the impairment loss was recognized, the impairment loss is
reversed, with the amount of the reversal recognized in income statement.
2.7
Financial liabilities
2.7.1 Classification
Financial liabilities are classified in the following categories: measured at fair
value through profit or loss and measured at amortized cost.
Financial liabilities at fair value through profit or loss basically include
derivative financial instruments.
Financial liabilities measured at amortized cost include debentures issued,
borrowings and onlendings, and other payables.
2.7.2 Initial recognition and measurement
Financial liabilities are recognized when BNDES becomes a party to the
contractual provisions of the instrument.
Financial liabilities at fair value through profit or loss are initially measured at
fair value, and the transaction costs and origination income are recognized
directly in the income statement.
Financial liabilities measured at amortized cost are initially measured at fair
value, plus transaction costs, premiums and discounts.
19
2.7.3 Subsequent measurement
Financial liabilities at fair value through profit or loss are subsequently
measured at fair value.
Financial liabilities measured at amortized cost are subsequently measured the
amortized cost using the effective interest rate method.
2.7.4 Derecognition
Financial liabilities are derecognized when their obligations are discharged,
cancelled or they expire.
2.8
Offsetting of financial assets and liabilities
Financial assets and liabilities are presented in the balance sheet on net basis when the
BNDES has the legal right to offset assets against liabilities and settled such assets and
liabilities on a net basis, or to realize the asset and settle the liability simultaneously.
2.9
The BNDES uses derivatives for hedging purposes, to balance the composition of
financial assets and financial liabilities, managing product profiles, and any other
purposes aligned with its corporate objectives, seeking financial management
efficiency. The BNDES does not use derivatives to take speculative positions that
would intentionally produce short positions.
The hedging strategy consists of offsetting, in whole or in part, the risks arising from
exposure to changes in fair or market values of or cash flows from any financial asset
or financial liability.
Derivatives are initially recognized at fair value at the date a derivative contract is
entered into and are subsequently remeasured to their fair value at the end of each
reporting period. The resulting gain or loss is recognized in income statement
immediately.
Derivatives are classified as financial assets or financial liabilities if, on the balance
sheet date, they present a positive or a negative financial position in BNDES system,
respectively.
20
2.10 Classes of financial instruments
The BNDES classifies its financial instruments into classes, according to their nature
and their characteristics. The classes of financial instruments are as follows:
Financial assets
Measured at fair value through profit or loss:
Held for trading:
•
•
Securities: mutual fund units and government bonds; and
Derivative financial instruments.
Designated at fair value through profit or loss:
•
Securities: debentures.
Loans and receivables:
•
•
•
•
•
•
Cash deposits in banks: cash, bank deposits, and foreign currencydenominated cash;
Interbank investments: foreign exchange portfolio, interbank deposits, and
repurchase agreements;
Securities: debentures;
Onlendings;
Loan investments; and
Other receivables: credit sale of securities, receivables; receivables from
Eletrobrás, receivables from the Brazilian National Treasury, dividends and
interest on capital receivable, prepayment of dividends, other receivables,
escrow deposits, refundable payments.
Held-to-maturity:
•
Securities: government bonds;
Available-for-sale:
•
Securities: shares, mutual fund units, debentures, and government bonds.
21
Measured at fair value through profit or loss:
Held for trading:
•
Derivative financial instruments.
Measured at amortized cost:
•
•
•
•
•
•
•
•
Deposits: special deposits of Fundo de Amparo ao Trabalhador - FAT (the
Workers’ Assistance Fund), sundry deposits, interbank deposits, restricted
deposits;
Repurchase agreements;
Debentures issued;
Borrowings and onlendings;
Hybrid instrument issued;
Subordinated debt;
Financial and development funds; and
Other payables: trade payables, payables linked to settlement of transactions,
dividends and interest on capital, deferred deposit obligations, dividends and
interest on capital and obligations linked to the Brazilian National Treasury.
2.11 Revenue recognition
(a) Interest income and expenses
Interest income and expenses on interest-bearing financial instruments are
recognized as ‘Revenue from financial intermediation’ and ‘Expenses on financial
intermediation’ in the income statement, using the effective interest rate method.
(b) Revenue from fees and commissions
These are recognized on an accrual basis in the period services are provided.
However, commission revenues qualified as origination revenue are added to the
initial fair value of the related financial instruments and allocated to income
statement using the effective interest rate method, and are recognized in the
relevant interest income and expenses, as applicable.
(c) Dividend income
Dividend income, arising from equity instruments classified as available-for-sale,
is recognized in the income statement when the right to receipt is established.
22
2.12 Property, plant and equipment
Stated at historical cost net of the accumulated depreciation of the depreciable items
and accumulated impairment losses. Historical cost includes expenditures directly
attributable to the acquisition or construction of the assets.
Subsequent costs are added to the carrying amount of the asset or recognized as a
separate asset, where appropriate, only when it is probable that future economic
benefits associated to the item will flow into the Bank and cost can be measured
reliably. All other repair and maintenance costs are recognized in income statement for
the year as operating expenses, when incurred.
Depreciation is calculated on a straight-line basis, based on the estimated useful lives
of the assets.
The BNDES reviews the depreciation methods, the residual values, and the estimated
useful lives of the assets, which are adjusted at the end of each reporting period, when
appropriate. The impact of any changes in estimates is accounted for prospectively.
Gains and losses on disposals are determined based on the comparison with carrying
amounts and are recorded in income statement in line item ‘Other operating expenses’.
2.13 Intangible assets
An intangible asset is recognized when all the following criteria are met: (i) the asset is
identifiable, (ii) the asset is controlled by the BNDES, (iii) it is probable that the asset
will generate future economic benefits, and (iv) the cost of the asset can be measured
reliably.
Separately acquired intangible assets with finite useful lives are carried at cost less
accumulated amortization and accumulated impairment losses. Amortization is
recognized on a straight-line basis, based on the estimated useful lives of the assets.
The estimated useful life and amortization method are reviewed at the end of each
annual reporting period, and the effect of any changes in estimates is accounted for on
a prospective basis.
2.14 Impairment of non-financial assets
Non-financial assets with indefinite useful lives are not amortized and are tested for
impairment annually. Assets subject to depreciation or amortization are tested for
impairment whenever events or changes in circumstances indicate that their carrying
amounts may not be recoverable.
23
An impairment loss is recognized as the amount by which the carrying amount of an
asset exceeds its recoverable amount. The recoverable value is the higher of its fair
value less costs to sell and its value in use.
Goodwill arising on the acquisition of an associate is tested for impairment together
with the investment measured by the equity method.
The amount of the allowance for impairment losses on non-financial assets is reviewed
by analyzing a possible reversal at the end of the reporting period.
2.15 Leases
The BNDES Group is a party to agreements mainly for the lease of properties and
copying machines and equipment. The property lease agreements refer to properties
leased for part of the personnel based in São Paulo, Recife, Rio de Janeiro, London,
and Montevideo. These leases are classified as operating leases and are recognized in
the income statement on a straight-line basis during the lease periods.
2.16 Cash and cash equivalents
For purposes of the statement of cash flows, cash and cash equivalents include cash
deposits in banks, short-term repurchase agreements, and any other highly-liquid
short-term investments, immediately convertible to a known cash amount and subject
to an immaterial risk of change in value. Transactions are considered short-term
transactions when their maturities do not exceed three months.
2.17 Provisions, contingent liabilities and contingent assets
A provision is recognized when the three criteria below are met:
I - An entity has a present obligation (legal or constructive) as a result of a past event;
II - It is probable that an outflow of resources will be required to settle the obligation;
and
III - A reliable estimate can be made of the amount of the obligation.
If some of these conditions are not met, the obligation is not accounted for and is only
disclosed.
BNDES recognizes a provision when it is contractually obligated or when there is a
past practice that created a constructive obligation.
24
A provision corresponds to the present value of the expenditures expected to be
required to settle the obligation, when the time value of money is material (over one
year). The increase in the obligation arising from the passage of time is recognized as
interest expenses.
Contingent liabilities are revalued on a quarterly basis to determine if the previous
valuation is still valid.
Considering the nature of lawsuits, past experience with similar cases, complexity,
previous court decisions and procedural phase, lawsuits are classified into three risk
categories: maximum, medium and minimum, taking into account the likelihood of
loss, based on the opinion of in-house and outside legal counsel.
Based on the expected loss, the policy adopted to classify ongoing lawsuits is as
follows:
Minimum risk - all lawsuits in lower courts and all appealed favorable lower court and
first appellate court decisions, depending on the appealed issue, are classified in this
category.
Medium risk - all lawsuits with unfavorable lower court and first appellate court
decisions but, depending on the appealed issue, with possibility of reversal of
outcome, are classified in this category.
Maximum risk - all lawsuits with unfavorable lower court or first appellate court
decision, and other lawsuits whose outcome, in light of the issue appealed, will be
hardly reversed, are classified in this category.
The BNDES’s accounting policy to determine its provisions is aligned with IAS 37
Provisions, Contingent Liabilities and Contingent Assets, as shown in the table below:
Legal criteria
(BNDES policy)
Likelihood of loss
(IAS 37)
Accounting impact
Minimum risk
Medium risk
Maximum risk
Remote
Possible
Probable
disclosure and accrual not required
Disclosure
Accrual and disclosure
Contingent assets are not recognized in financial statements since this may result in
the recognition of income that may never be realized. However, when the realization
of income is virtually certain, then the related asset is not a contingent asset and its
recognition is mandatory.
A contingent asset is only disclosed when management is certain of its realization or
has favorable unappealable court decisions or an inflow of economic benefits has
become probable.
25
Contingent assets are revalued on a quarterly basis to determine if the previous
valuation is still valid.
2.18 Employee benefits
(a)
Pension plan
The BNDES offers its employees a defined benefit supplementary pension. The
plan is funded by contributions to a trust fund, calculated using periodic actuarial
calculations.
Actuarial assets, determined by independent actuaries, are not recognized as
sponsor assets as these amounts cannot be offset against future contributions, as
established by the pension plan’s charter.
The liability recognized in balance sheet is the present value of the defined
benefit obligation at the end of the reporting period, less the fair value of plan
assets, as adjusted by actuarial gains or losses and unrecognized past service
costs. The defined benefit obligation is calculated annually by independent
actuaries based on the Projected Unit Credit Method. The present value of the
defined benefit obligation is determined by discounting estimated future cash
outflows, using interest rates consistent with market yields, which are
denominated in the currency the benefits will be paid and whose maturities are
those of the related pension plan obligation.
Debts contracted between the BNDES and the pension plan are considered in the
determination of an additional liability related to the future contributions that are
not recoverable.
Actuarial gains and losses arising from adjustments based on the experience and
changes in actuarial assumptions, that exceed 10% of the amount of the plan’s
assets or 10% of the amount of plan’s liabilities, are recognized in income
statement over the expected remaining service period of the employees (corridor
approach).
(b)
Medical care plan
The BNDES offers a postretirement health care benefit to its employees. The
entitlement to this benefit is generally contingent to the employee remaining in
service until the retirement age and the completion of the minimum service
requirement. The expected costs of this benefit are accumulated during the
service period and are calculated using the same accounting method used for
pension plans.
26
Actuarial gains and losses arising from adjustments based on the experience and
changes in actuarial assumptions, that exceed 10% of the amount of the plan’s
assets or 10% of the amount of plan’s liabilities, are recognized in income
statement over the expected remaining service period of the employees. These
obligations are annually valued by qualified independent actuaries.
(c)
Termination benefits
The BNDES recognizes termination benefits when it can be evidenced that the
entities are committed to the dismissal of current employees according to a
detailed formal plan, which cannot be suspended or canceled, or the grant of
termination benefits as a result of an offer made to encourage voluntary
dismissal. Benefits that expire in 12 months or more after the end of the
reporting period are discounted to their present value. Termination benefits are
presented in line item ‘Provisions’.
(d)
Profit sharing
The BNDES recognizes a profit sharing liability and an expense (stated in line
item ‘personnel expenses’ in the income statement) based on a formula that
takes in to consideration the profit attributable to the shareholder after certain
adjustments. The BNDES recognizes a provision when it is contractually
obligated or when there is a past practice that created a constructive obligation.
2.19 Current and deferred income tax and social contribution
Current and deferred income tax and social contribution are recognized in the income
statement, except when related to items recognized directly in other comprehensive
income (loss). In this case, taxes are also recognized directly in equity.
(a)
(b)
Current income tax and social contribution are recognized based on accounting
profit, adjusted for additions and deductions established by the tax law, on which
the statutory tax rates effective for the reporting period are applied. These taxes
are calculated pursuant to the laws and regulations enacted at the end of the
reporting period, in accordance with Brazilian tax regulations.
Deferred income tax and social contribution are calculated under the liability
method on temporary difference arising from differences between the tax bases
of assets and liabilities and their carrying amounts disclosed in financial
statements. Deferred income tax and social contribution are calculated using the
tax rates (and the tax law) enacted or substantially enacted as of the end of the
reporting period and that must be applied when the corresponding deferred
income tax and social contribution assets are realized or deferred income tax and
social contribution liabilities are settled.
27
The main temporary differences arise from fair value adjustments of financial
assets and financial liabilities, and provisions; and, with respect to acquisitions,
the difference between the fair values of acquired net assets and their carrying
amounts. However, deferred income tax and social contribution are not
accounted for if they arise from the initial recognition of an asset or liability in a
transaction which is not a business combination and, at the time of the
transaction, affects neither accounting profit nor tax loss carryforwards.
Deferred income tax and social contribution are also recognized for temporary
differences associated with investments in associates to the extent that it is
probable that the temporary difference will not reverse in the foreseeable future.
If they result in deferred tax assets, these should be recognized when it is
probable that taxable profits will be available against which the temporary
differences can be utilized.
2.20 Dividends and interest on capital
The amount to be paid to shareholders is recognized as a liability in the financial
statements at the end of the reporting period based on the minimum mandatory amount
set out in the bylaws of the BNDES and subsidiaries. Any amount above the minimum
mandatory payments is only recognized on the date it is approved by the board of
directors.
3.
ESTIMATES AND CRITICAL ACCOUNTING JUDGMENTS
The BNDES makes judgments, estimates and assumptions that may impact the amounts of
assets and liabilities to be reported in the following year. The estimates and underlying
assumptions are reviewed on an ongoing basis and are based on historical experience and
other factors, considered reasonable in the circumstances
The following are some estimates that involve critical judgments
(a) Impairment losses on financial assets measured at amortized cost
The BNDES reviews periodically its financial assets measured at amortized cost to
assess if there is objective evidence that an asset is impaired. The BNDES uses
estimates based on historical experience of losses on assets with similar credit risk
characteristics and objective evidence of impairment. The methodology and
assumptions used to estimate the loss are reviewed regularly to reduce any differences
between loss estimates and actual losses.
28
(b) Impairment losses on available-for-sale financial assets
The BNDES recognizes an impairment loss on equity instruments classified as
available-for-sale when there is a significant or prolonged decline in their fair values
below their costs. Determining what is significant or prolonged, as set forth in the
internal policy, requires, among other factors, assessing the volatility of share prices in a
given period. For debt instruments, the methodology is the same as that adopted for the
prior item. For debt instruments, the methodology is the same as that adopted for the
prior item.
(c) Fair value of financial instruments not quoted in an active market
The fair values of financial instruments that are not quoted in an active market are
determined using market accepted valuation techniques. Before being used, all models
are certified and validated to ensure that the results reflect actual data and comparable
market prices. In general, the models use observable data; however, calculations
involving volatilities and credit risk correlations (own or counterparty’s) require
estimates by the BNDES. Changes in the assumptions built on these factors may impact
the reported fair values of financial instruments.
(d) Employee benefits
The current amounts of the supplementary pension plan and the medical care plan
depend on a series of factors that are determined based on actuarial calculations, using a
series of assumptions, such as, for example, the discount rates that are disclosed in Note
19. The change in one of those estimates may impact the carrying amount of the
obligation.
The discount rate used to determine the present value of future estimated cash
disbursements which should be required to settle the pension plan obligations, is duly
reviewed at the end of each reporting period. In determining the appropriate discount
rate, the BNDES considers the interest rate of government bonds, which are maintained
in the currency in which the benefits will be granted and with maturities close to the
terms of the related pension plan obligations.
Other key assumptions for the supplementary pension plan obligations and the medical
care plan are based, in part, on current market conditions, which are disclosed in Note
19.
(e) Deferred income tax and social contribution
As explained in Note 2.19, deferred tax assets are recognized only for temporary
differences when it is probable that the BNDES will have future taxable profits against
which such deferred tax assets can be utilized. Other deferred tax assets (tax credits and
tax loss carryforwards) are recognized only when it is probable that the BNDES will
have sufficient future taxable profits against which such credits can be utilized. Under
current regulations, the expected realization of the Bank’s tax credits is based on the
future earnings projection and technical studies.
29
4.
RISK MANAGEMENT AND DISCLOSURES OF FINANCIAL INSTRUMENTS
4.1
Risk management
In compliance with internal and external regulations and the objectives set by the top
management, the Bank’s Risk Management Function is responsible for:
•
•
•
•
•
•
Setting and proposing to the board of directors the general risk management and
internal control guidelines for the BNDES and its subsidiaries;
Monitoring the risk exposure levels;
Analyzing and monitoring the regulatory capital requirements;
Analyzing the changes in allowance for impairment losses and their impacts on
the profit of the BNDES and its subsidiaries;
Assessing the quality of internal control in place at the BNDES Group, the
assignment of responsibilities, the segregation of duties, involved risks, and the
compliance of processes with internal and external regulations by proposing
measures for their improvement; and
Disseminating a group-wide internal control and risk management culture.
BNDES risk management is an ongoing process. The work is performed in order to
align risk control policies, processes, criteria and methodologies.
The following comprise BNDES risk management and internal control structure:
board of directors; executive board; risk management committee; market, credit and
operational risk management and internal control subcommittees; and, units dedicated
in managing risks.
The complete market risk management framework of BNDES is available for public
access at:
http://www.bndes.gov.br/SiteBNDES/bndes/bndes_pt/Institucional/Relacao_Com_Inv
estidores/Relatorio_Gestao_Riscos
4.2
Internal controls
Internal controls are procedures that are present at all entity’s levels, which are
designed to mitigate risks and provide reasonable assurance that the following
objectives will be met:
•
•
•
Compliance: performance of activities in accordance with internal and external
guidelines that regulate such activities;
Performance: process efficiency and effectiveness, with no significant costs and
asset hedging;
Information: disclosure of reliable, precise and timely information to support the
decision-making process.
30
The BNDES promotes the continuous improvement of internal control, based on the
foundations set out in CMN Resolution 2554/98 and the Corporate Internal Control
Policy. In this context, activities are performed to check the compliance with internal
and external regulations risks and assess internal controls of work processes.
Reports containing evaluation conclusions are submitted to the Operational Risk and
Internal Control Management Subcommittee, Risk Management Committee and the
Top Management and the recommendations made to the involved units have been
carefully monitored.
The permanent dissemination of an internal control culture is based on an
communication process in order to clarify the role of each professional in the Internal
Control System and emphasize the importance of ethics and transparency. In addition
to disseminating the Corporate Internal Control Policy and making available
information related to this subject on the intranet, the BNDES holds lectures for new
employees as part of the current headcount renewal process to highlight the
importance of internal control.
The highlights of 2011 were as follows:
• Compliance monitoring work and assessment of process internal control, as
established in the annual plan of the Internal Control Unit;
• Initial implementation of continuous monitoring for internal control assessment; and
• The compliance agent project; and
• Approval, by the Board of Directors, of the Internal Control Report for the second
half of 2010 and fisrt half of 2011, as set forth in CMN Resolution 2554/98.
4.3
Operational risk
Operational risk is the possibility of incurring in losses due to failure, deficiencies or
inadequacy of internal processes, people and systems, or external events. The concept
includes legal risk, associated to inadequacy or weaknesses in contracts entered into,
as well as penalties due to noncompliance with statutes, and compensation paid for
damages caused to third parties as a result of the activities conducted by the BNDES.
Differently from the market and credit risks, its management and mitigation involves
all functions of the BNDES.
The unit responsible for operational risk is in charge of assisting the other units in
identifying and assessing these risks. This is made by following the criteria set out in
BNDES’s Corporate Operational Risk Management Policy and the criteria set out in its
Business Continuity Management Policy. Both policies establish the set of principles,
actions, roles, and responsibilities related to such risks.
Concerning the regulatory capital, the BNDES currently uses the Basic Indicator
Approach to calculate the Required Regulatory Capital (PRE) related to the
operational risk (POPR). This portion is being periodically calculated and reported to
the BACEN as an integral part of the Statement of Operational Limits (DLO).
31
In order to disseminate the operational risk culture in the BNDES, a specific module
on this theme was included in the new employee training program that is regularly
attended by all new employees. Operational Risk information is also available on the
intranet to our internal audience.
In 2011, with respect to the continuous assessment and mitigation of operational risk,
special attention was directed in improving the risk assessment methodology and
operational loss database. In the second half, the project to develop and implement a
Business Continuity Management system for BNDES has began, with the assistance of
a specialized technical consulting firm, which project is expected to be completed by
July 2013.
4.4
Credit risk
The credit risk is defined as the risk associated to the possibility of incurring losses
due to borrower or counterparty default of agreed financial obligations, the
depreciation of a credit agreement due to the downgrading of the borrowers’ risk
ratings, the decrease in gains or returns, the advantages granted in renegotiations, and
the costs of recovery. Accordingly, significant changes in the economy or financial
situation of a specific segment of the industry could result in losses different from
those provided for at the end of the reporting period.
At the BNDES, credit risk exposures arise mainly from financing transactions
(conducted directly with the end borrower or through financial agents), and the
acquisition of debentures and other securities. In addition, in compliance with
prevailing legislation, it also takes into account credit risks associated to assumed
commitments not yet recognized in the balance sheet (undrawn amount).
The measurement and monitoring of credit risk exposures are carried out both at the
individual and aggregate level of transactions. The following sections are a brief
description of the main instruments used to measure credit risk at the individual level
(risk rating) and aggregate level (risk components). Note that the definition of risk
components and exposure categories (aggregation by business line) were defined in
BACEN Bulletin # 18365, based on the guidelines set out in the Basel II Accord.
4.4.1 Credit risk measurement
(a) Risk ratings
The transactions classified as Loan investments, interbank onlendings,
debentures (except those classified as available-for-sale), rights and
receivables, and credit sale of securities are individually analyzed using
internally developed risk rating models. Even though the BNDES has its
own risk rating scale, this is equivalent to the scales prepared by the major
international risk rating agencies, and corresponds, under an internal
resolution, to the risk rating scale set by the regulator.
32
The BNDES started to use risk rating models in 1993, prepared for the
purpose of measuring the possibility of default of financing. Currently, risk
rating is a decision-making instrument used in several stages of transaction
processing: compliance, rating, credit limit setting, guarantee waiver
assessments, etc. The risk rating obtained is used not only to identify the
target entities of the new financing and to set the spread or risk premium to
be embedded in the interest rate of the loan.
(b) Probability of Default (PD)
The possibility of default is defined as the long-term average of default
rates for one-year timeframe for borrowers in a certain grade or
homogeneous pool. The BNDES marks a default event when it considers
that the borrower or the counterparty will not fully discharge their
obligations or when the payments of at least one of the borrower’s
obligations are past due for more than 90 days.
The probabilities of default are, therefore, estimated based on the historical
frequency of the default events. Additionally, status migration matrices are
prepared on a monthly basis for one-year timeframe, whose results are
presented to the Risk Management Committee.
(c) Exposure at Default (EAD)
The EAD parameter corresponds to the Bank’s exposure to the borrower
or counterparty when at the time a default event is triggered. For exposures
recognized in the Bank’s assets, EAD parameter estimates are identical to
the carrying amounts at the time there are calculated.
(d) Loss given Default (LGD)
Loss given default or loss severity represented the Bank’s expectation
regarding unrecoverable amounts from defaults. These amounts are
expressed as percentages and usually vary according to the counterparty’s
risk rating and the specific features of the transaction, which include risk
and other mitigants.
The BNDES obtains the LGD parameter estimates by firstly calculating
the recovery rate (TR) of default and, complementarily, the LGD, i.e.,
LGD = 1 - TR. In turn, all receipts from contracts marked as
nonperforming are used to calculate the recovery rates. These receipts are
compared with the outstanding balance of the contract at the time of
default based on amounts adjusted for the analysis date.
33
4.4.2 Monitoring of risk exposure limits and mitigation policies
The BNDES monitors all regulatory limits set by the regulator and a series of
additional limits set by internal statutes. The exposure limits by client and to
the public sector, set under CMN Resolutions 2844/2001 and 2827/2001,
respectively, as subsequently amended, are monitored on a monthly basis and
disclosed in periodic, internally distributed reports. Similarly, exposure limits
to corporate groups and sectoral limits set by the Bank’s executive committee
are also monitored.
Also, several indicators are produced and analyzed for portfolio monitoring
purposes, as follows: default and receivables written off, credit quality of
portfolio, concentration indicators by corporate group and industry, etc. These
indicators generated are analyzed and disclosed in the Credit Risk Management
Report sent to the Risk Management Committee on a monthly basis.
(a) Guarantees
In addition to using policies, processes and procedures intended to
maintain risk exposures at acceptable levels, the BNDES structures
financing transactions using guarantees and collaterals set during the loan
transaction rating period. The main guarantees and collaterals used by the
BNDES to structure its transactions are mortgages and liens,
collateralization of receivables, export credit insurance, and sureties.
(b) Derivative instruments
Derivative instruments are usually considered powerful tools in managing
different types of risks, both to hedge outstanding positions and leverage
and explore new business opportunities. Credit derivatives complement
traditional derivative instruments as they permit a quick and flexible
management of exposures to the default risk. In Brazil, the National
Monetary Council authorizes, through Resolution 2933/2002, financial
institutions and other entities authorized to operate by the BACEN to
conduct credit derivative transactions. However, these instruments are not
often used by Brazilian financial institutions, which impairs the
development of the market for these papers in Brazil.
(c) Credit-related commitments
Credit-related commitments represent the undrawn portions of contracted
transactions and, as a result, are not recognized in the Bank’s consolidated
balance sheet (see Note 4.11).
34
4.5
Market risk
The market risk is the risk of financial losses resulting from changes in the fair values
of the asset and liability positions held by the BNDES, including the risks of
fluctuation in foreign exchange rates, the interest rates, equity prices, and the
commodity prices.
The risk management monitors the portion of required capital resulting from the
trading and banking portfolios to ensure that the risks inherent in these transactions are
consistent with the desirable risk appetite of the BNDES Group.
BNDES, as prescribed by CMN Resolution 3464/07 and Bacen Circular 3354/07,
segregates its operations, including those involving derivatives, as follows:
(i) The trading portfolio consists of all transactions conducted with financial
instruments, including derivatives, held with the intent of being actively and
frequently traded or used for hedging purposes, and that are not subject to trading
restrictions. Transactions held-for-trading are those intended for resale; obtain
benefits from changes in effective or expected prices; or arbitration.
(ii) The banking portfolio corresponds basically to financing transactions conducted
by the BNDES, its borrowings, government bonds, and private securities, with or
without options, and some hedge instruments. This portfolio includes interest rate,
price, and currency risks. In addition, there is the equity risk arising from the
BNDES Group’s equity investments. Some of BNDES Group’s shares are
measured under the equity method of accounting.
4.5.1 Market risk measurement techniques
The measurement techniques used to measure and control the market risk are
as follows:
(a) Value at Risk
The VaR is a risk metric based on potential loss statistics for investment
portfolios, due to adverse changes in market variables. It expresses the
maximum loss that the BNDES would incur at a 99 percent confidence
level. There is, therefore, a one percent probability that actual losses are
higher than the VaR estimate. This model presumes a ten-day holding
period for all positions. In addition, it also presumes that changes during
such period will maintain a pattern similar to the changes that occurred in
the previous day holding periods. The VaR is used to measure the financial
transaction risk from trading portfolio subject to changes in the fixed
interest rates of the financial instruments denominated in local currency.
35
(b) Maturity Ladder
The maturity ladder is a risk measurement metric that consists of dividing
the maturities of cash flows into a series of bands, grouped into maturity
zones. The maturity bands and zones are selected to determine sensitivity
and volatility differences in rates in light of different maturities. The
maturity ladder is used to measure the market risk of trading portfolio
financial transactions exposed changes in foreign currency coupon rates
and changes in price index coupon rates.
(c) Net Interest Income
The change in the net interest income (NII) is a risk metric that consists of
determining the probability of expected losses in net interest income. This
is done using a ‘gap’ for the Bank’s portfolio not classified as trading
portfolio (credit portfolio, debentures, and government bonds). The gap
analysis measures the exposure to the interest rate risk strictly applicable
to transactions with debt instruments. This methodology consists of
calculations the expected losses in net interest income using a gap analysis
and risk factor stresses of the portfolio with one-year holding period.
(d) Stress tests
Stress tests provide an indication of the potential volume of losses that
might arises from extreme market situations. The stress tests of the trading
portfolio are conducted by the manager of the fund where the BNDES
holds investments and are monitored by the Market Risk Department. The
stress tests of the banking portfolio are conducted as established by the
BACEN and reported on a quarterly basis to the regulator. In this test, the
change applied to each index corresponds to the 1st and 99th percentiles of
the distribution in the previous 60 months of the day-to-day differences
actually observed in the twelve-month rates and provided for in contracts
negotiated in the market for the same period. This produces an estimate for
the unexpected loss on the portfolio of BNDES assets and liabilities.
4.5.2 Sensitivity analysis
In preparing the sensitivity analysis, BNDES adopted the following
assumptions, set out in the aforementioned standards :
1.
2.
identify the market risks that can result in material losses to the BNDES
System;
define a probable scenario, supported by an independent outside source
for a one-year period;
36
3.
4.
present the impact of the outlined scenarios on the fair values of the
financial instruments traded by the Bank and the impact on profit or loss
and equity; and
compare the probable scenario with the current scenario for each type of
financial instrument.
The probable scenario for variable income transactions (shares) was calculated
based on the BNDES system’s portfolio beta and internal evaluations to
determine the risk-free rate for one-year period and the market risk premium,
based on the Capital Asset Pricing Model (CAPM).
We present below the sensitivity analysis for the operations with financial
instruments which affected the Bank’s income statement and shareholders’
equity. The sensitivity analysis considered the tax effects on income/loss of
fixed or variable income operations.
Impact
Instrument
Income statement
Income statement
Income statement
Income statement
Income statement
Income statement
Income statement
Income statement
Income statement
Income statement
Income statement
Income statement
Equity
Equity
Equity
Selic / DI
TJLP
Fixed rate (repricing)
IGPM
IGP-DI
IPCA
INPC
TR
BRL/USD
Fixed rate
Forex coupon
IPCA coupon
Fixed rate
IPCA coupon
Shares
Probable scenario
24,948
308,354
(29,753)
8,135
(4,716)
(4,820)
(1,614)
(43,707)
(1,453)
23,168
985
(102)
81,859
(11,776)
8,581,930
4.5.3 Foreign exchange and interest rate risks
The BNDES is exposed to the impact of exchange rate fluctuations on its
financial position and its cash flows. The foreign exchange is monitored on
daily basis by determining foreign exchange exposure. The exposure to this
risk factor is controlled by operating in the derivative market.
The BNDES is exposed to the impact of market interest rates fluctuations on
both the fair values of its financial instruments and its cash flows. The risk of
fluctuations in indices and rates is monitored on monthly basis and is subject to
limits approved by the Risk Management Committee for each subsidiary and
BNDES consolidated.
37
4.5.4 Equity price risk
The BNDES monitors the figures related to equity interests held by
BNDESPAR in publicly-traded companies listed on the São Paulo Stock
Exchange (Bovespa), private companies, and mutual funds. The equity price
risk is assessed using indicators including the parametric VaR, which is
measured by company and/or industry, using the incremental VaR analysis for
the entire portfolio.
4.6
Liquidity risk
Liquidity risk is the risk arising from unbalances between tradable assets and payable
liabilities that might affect the payment ability of the BNDES, taking into
consideration the different currencies and settlement terms of its assets and liabilities.
The Bank’s liquidity risk is managed by the Financial Function, which determines the
minimum cash volume for operation of the BNDES Group, which should be at least
equivalent to the sum of capital, administrative and tax expenses for the subsequent
month.
Even though the BNDES is not required to sent liquidity reports to the BACEN, this
assessment is conducted for management purposes by the Risk Management
Function. The assessment is conducted on a monthly basis and provide a quantitative
estimate of the financial instruments included in tradable assets and payable liabilities
for 30, 60 and 90 days. This estimate does not generate a forecast of cash at the end of
the period but indicates the volume of funds the BNDES is capable of raising within
this timeframe, discharging its obligations on a timely basis.
See analysis of the maturity of financial liabilities in Note 4.10
4.7
Capital management
The main objectives of the BNDES related to the management of its capital are as
follows:
• Maintain a sound capital base that effectively supports business development;
• Comply with the requirements set by the regulatory agencies of the banking
markets where it operates;
• Ensure profitability compatible with the risks assumed by the BNDES.
The adjustment of the capital structure and the monitoring the limits related to
regulatory capital are carried out by the BNDES based on the implementation of
processes, methods and procedures based on the guidelines set by the Basel
Committee, as implemented by the BACEN. Therefore, the monetary authority
required that each financial institution and each entity authorized to operate by the
BACEN permanently maintains:
38
•
•
A regulatory capital (PR) compatible with the risk of its activities, calculated
according to CMN Resolution 3444/07; and
Minimum regulatory capital, called Required Regulatory Capital (PRE), of
11 percent of total risk-weighted assets, calculated according to CMN
Resolution 3490/07.
The Regulatory Capital (PR) is divided into two tiers, calculated as prescribed by
Article 1, Par. 1 and Par. 2, of CMN (BACEN) Resolution 3444 of February 28, 2007:
•
Tier 1 capital:
Sum of the following amounts:
(+) Equity
(+) Balance of income accounts
(+) Deposit in restricted account to cover capital shortfalls
(+) Hybrid instruments qualified to include Tier 1 of PR
Deduction of the following amounts:
(–) Expense accounts
(–) Revaluation reserves, provisions for contingent liabilities, and special
earnings reserves related to undistributed mandatory dividends
(–) Preferred shares issued with redemption clause and preferred shares entitled
to cumulative dividends
(–) Tax credits excluded from Tier 1 of PR (subject to the amendments to
BACEN Resolution 3655)
(–) Deferred long-lived assets, less goodwill on the acquisition of investments
(–) Balance of unrealized gains and losses arising on the mark-to-market of
securities classified as ‘available-for-sale securities’ and derivative financial
instruments used as cash flow hedges
•
Tier 2 capital:
Sum of the following amounts:
(+) Revaluation reserves
(+) Provisions for contingent liabilities
(+) Special earnings reserves related to undistributed mandatory dividends
(+) Preferred shares issued with redemption clause and preferred shares entitled
to cumulative dividends
(+) Hybrid instruments qualified to include Tier 2 of PR
(+) Subordinated debt instruments
(+) Balance of unrealized gains and losses arising on the mark-to-market of
securities classified as ‘available-for-sale securities’ and derivative financial
instruments used as cash flow hedges.
39
The Regulatory Capital (PR) used to check compliance with the operating limits
consists of, under Articles 1, 3, 4, 5, and 6 of Resolution 3,444/07, of the sum of Tier 1
capital and Tier 2 capital, net of fund raising financial instruments issued by financial
institutions and entities authorized to operate by the BACEN.
Under CMN Resolution 3490/07, the PR must be higher than the Required Regulatory
Equity (PRE), which is calculated considering all components of risk-weighted assets,
as follows:
PRE = PEPR + PCAM + PJUR + PCOM + PACS + POPR
Under Article 2 of CMN (BACEN) Resolution 3490 of August 29, 2009, the Required
Regulatory Equity (PRE) consists of the following components: credit risk (PEPR exposures weighted by relevant risk factors); market risk (PCAM, PJUR, PCOM and PACS exposures subject to system risk); and operational risk (POPR ).
Risk-weighted exposures (PEPR) are monthly calculated using the procedures set out in
BACEN Circular 3360/2007. Note that in addition to the Bank’s credit portfolio, the
PEPR component includes other assets and securities, swaps, and repurchase
agreements.
The calculation of the PRE is an integral part of the Operating Limits Document
(DLO) sent on a monthly basis to the BACEN.
40
The calculation of the regulatory capital as at December 31, 2011 compared to the
year ended December 31, 2010 is as follows:
REGULATORY CAPITAL
December 31, 2011
(1)
Patrimônio de Referência - PR (Nível I + Nível II - deduções)
Tier 1 regulatory capital
Equity
Income accounts
Hybrid instruments qualified to include Tier 1 of PR
(-)Expense accounts
(-)Tax credits deducted from Tier 1 of PR
(-)Mark-to-market - securities and derivative financial instruments
(-)Dividends and bonuses for distribution
Tier 2 regulatory capital
Hybrid instruments qualified to include Tier 2 of PR
Subordinated debt instruments
Mark-to-market - securities and derivatives financial instruments
(-)Tier 2 capital surplus
Deductions from PR
(-)Share issued by financial institutions and other entities authorized to operate by the
Central Bank of Brazil,
Required Regulatory Capital (PRE) (2)
Credit risk
Market risk
Operational risk
Banking risk (RBAN)
Capital margin (PR - PRE - RBAN)
Total risk-weighted exposure (PRE / 0.11)
Basel ratio (PR) / (PRE / 0.11)] * 100
December 31, 2010
99,083,786
51,849,278
57,327,713
37,659,466
6,000,000
33,890,726
19,731
15,143,417
84,027
48,043,501
6,975,446
25,924,639
15,143,417
808,993
83,108,116
41,769,622
59,556,569
24,036,405
5,448,212
17,693,709
70,086
29,507,769
41,769,622
7,103,253
20,884,811
29,507,768
15,726,210
431,128
808,993
431,128
51,898,052
71,751
946,734
49,048,808
48,192,186
94,587
762,035
1,461,418
1,455,436
44,705,831
32,603,872
481,059,427
20.60%
445,898,256
18.64%
(1) CMN Resolution 3444, of February 28, 2007, defines Regulatory Capital (PR) for operational limit calculation purposes as the sum of two
tiers (Tier I and Tier II), likewise in the international market, consisting of components of shareholders' equity, subordinated debts and
hybrid/debt equity instruments
(2) CMN Resolution 3490 of August 29, 2007 sets out the criteria for the calculation of the Required Regulatory Capital (PRE). The risk
components are calculated in accordance with the procedures set out in BACEN Circular Letter 3360, of September 12, 2007 for credit risk,
Circular Letters 3361, 3362, 3363, 3364, 3366 and 3368 of September 12, 2007, 3388 of June 4, 2008 and 3389 of June 25, 2008, and
Circular Letters 3309 and 3310 of April 15, 2008 for market risk, and Circular Letter 3383 and Circular Letters 3315 and 3316 of April 30,
2008 for operational risk
In the period from December 31, 2010 to December 31, 2011, the consolidated regulatory capital
increased approximately R$16 billion. A significant portion of such amount is explained by the
decrease in the balancing item of Tier I Capital - Adjustment to Fair Value of Securities, in the
amount of R$14 billion, consequently resulting in an increase in Tier I Capital. The Bank’s Basel
Ratio reached 20.60% as at December 31, 2011, about 11% above the ratio identified at the end
of 2010.
41
4.8
Classification and fair value of financial assets and liabilities
4.8.1 Classification by category
(a) Balance Sheet
At December 31, 2011
Financial assets
11,176,258
590,205
-
10,067,191
-
107,807,447
-
5,821
5,365,875
5,836,656
207,815,005
219,420,938
20,148,895
-
Outside the scope
of IAS 32 and 39
and IFRS 7
425,131
3,192,021
-
-
-
-
1,184,067
1,057,467
3,222,436
-
-
1,184,067
1,057,467
3,222,436
-
-
-
7,830,901
-
-
7,830,901
11,766,463
10,067,191
351,756
108,159,203
1,883,514
690,247
454,312,927
20,148,895
583,635
19,374,391
115,136
40,819
23,731,133
1,883,514
1,042,003
583,635
19,374,391
115,136
40,819
628,185,812
Held for
trading
Securities
Recoverable taxes and contributions
Deferred tax credits
Loan investments
Other receivables
Credit sale of securities
Receivables
Receivables - Eletrobrás
Receivables from the Brazilian
National Treasury
Dividends and interest on capital
receivable
Other
Other assets
Investments
Property and equipment
Intangible assets
Total
Designated
at fair value
Availablefor-sale
Loans and
receivables
545,592
-
-
21,046,859
7,808,271
12,055,287
334,248,613
13,775,298
125,218,366
32,687,740
-
Outside the
scope of IAS 32
and 39 and
IFRS 7
1,204,609
10,718,273
1,640,442
795,616
-
-
175,877
84,027
-
175,877
84,027
-
-
81,164
-
81,164
545,592
-
131,312
406,647
547,719,461
125,533
127,503
920,520
64,388,263
79,920,759
131,312
406,647
125,533
127,503
920,520
64,388,263
628,185,812
Held for
trading
Deposits
Debentures issued
Subordinated debt
Impostos e contribuições sobre o lucro
Tributos diferidos
Obrigações de benefícios de aposentadoria
Provisões
Other payables
Payables
Linked to settlement of exchange
transactions
Linked to Brazilian National
Treasury
Deferred deposit obligations
Other taxes and contributions
Accrued vacation and related taxes
Other
Shareholders’ equity
Total
Held-tomaturity
Designated
at fair value
Measured at
amortized
cost
42
Carrying
balance
21,046,859
7,808,271
12,055,287
334,248,613
13,775,298
125,218,366
32,687,740
545,592
1,204,609
10,718,273
1,640,442
795,616
Carrying
balance
5,821
5,365,875
155,036,447
590,205
425,131
3,192,021
207,815,005
219,420,938
Financial assets
Designated
at fair value
Available-forsale
9,062,574
272,082
-
12,044,335
-
108,861,344
-
15,897
10,113,958
3,774,632
180,730,640
183,187,393
12,114,162
-
Outside the scope
of IAS 32 and 39
and IFRS 7
422,025
1,418,348
-
-
-
-
1,276,778
2,708,719
7,172,194
-
-
1,276,778
2,708,719
7,172,194
-
-
-
3,547,589
-
-
3,547,589
9,334,656
12,044,335
462,695
109,324,039
1,909,393
563,912
395,001,105
12,114,162
285,459
13,684,702
98,488
40,834
15,949,856
1,909,393
1,026,606
285,459
13,684,702
98,488
40,834
553,768,152
Held for
trading
Securities
Recoverable taxes and contributions
Deferred tax credits
Loan investments
Other receivables
Receivables
Receivables from the Brazilian
National Treasury
receivable
Other
Other assets
Investments
Property and equipment
Intangible assets
Total
Taxes and contributions on income
Deferred taxes
Pension obligations
Provisions
Other payables
Payables
Linked to settlement of exchange
transactions
Linked to Brazilian National
Treasury
Other taxes and contributions
Other
Shareholders’ equity
Total
Held-tomaturity
717,874
-
-
21,573,906
12,726,922
272,186,665
13,234,016
110,689,308
31,406,440
-
Outside the
scope of IAS
32 and 39 and
IFRS 7
551,960
16,473,685
1,480,268
756,711
-
-
201,083
-
201,083
-
-
96,265
-
96,265
717,874
-
128,862
483,309
462,726,776
110,111
116,526
1,042,860
69,791,382
90,323,503
128,862
483,309
110,111
116,526
1,042,860
69,791,382
553,768,152
Held for
trading
Deposits
Debentures issued
Subordinated debt
Loans and
receivables
Designated
at fair value
Measured at
amortized
cost
43
Carrying
balance
21,573,906
12,726,922
272,186,665
13,234,016
110,689,308
31,406,440
717,874
551,960
16,473,685
1,480,268
756,711
Carrying
balance
15,897
10,113,958
145,857,047
272,082
422,025
1,418,348
180,730,640
183,187,393
b) Income Statement
Year ended December 31, 2011
Financial assets
Borrowings
Receivables
Income (loss) on securities
Mutual fund units
Debentures
Financial Treasury Bills (LFTs) - Series A
Treasury Financial Bills (LFT)
National Treasury Bills (LTN)
National Treasury Notes (NTN-B)
National Treasury Notes (NTN-F)
Income from transactions linked to Treasury
Deposits
Payables for issue of debentures
Hybrid equity/debt instrument
Subordinated debt
Income (loss) on derivatives
Futures
Swap
Expenses on transactions linked to Treasury
Reversal (recognition) of the allowance for losses
On onlendings
On lending operations
On receivables
On credit sale of securities
On debentures
Credit recovery
Income (loss) on foreign exchange portfolio
-
Outside the scope of
IAS 32 and 39 and
IFRS 7
343,899
Carrying balance
43,378,854
-
-
-
10,415,856
21,146,950
224,319
112,812
-
-
-
-
1,016,576
319,217
958,646
6,347
603,612
498,842
1,912,562
937,955
343,899
228,645
-
(1,409,882)
(36,919,375)
-
(37,381,802)
-
-
-
-
(1,250,934)
(17,115)
(1,151,121)
(25,928,490)
(1,498,257)
(6,914,080)
(144,325)
-
(1,250,934)
(17,115)
(1,151,121)
(25,928,490)
(1,498,257)
(6,914,080)
(144,325)
-
-
-
-
(864,126)
(545,756)
-
(15,053)
-
(404,583)
(286,489)
(15,053)
-
-
135,012
(719,098)
13,907
(89,671)
(12,172)
881,099
-
-
-
-
-
135,012
(719,098)
13,907
(89,671)
(12,172)
881,099
-
Held for trading
869,361
Designated at
fair value
289,935
Available for
sale
1,815,876
Loans and
receivables
38,271,097
Held-tomaturity
1,788,686
Held for trading
-
-
-
-
10,415,856
21,146,950
224,319
112,812
-
351,102
499,083
4,718
14,458
-
289,935
-
(31,885)
195,388
104,529
429,884
863,636
254,324
-
1,016,576
473,323
4,881,261
-
718,810
-
-
-
-
459,543
259,267
-
44
Measured at
amortized cost
Financial assets
Held for trading
1,588,171
386,896
1,427,202
-
Designated at
fair value
289,935
-
Available for
sale
1,815,876
-
Loans and
receivables
38,499,742
686,177
1,225,978
2,943,216
-
Held-tomaturity
1,788,686
-
Held for trading
(1,409,882)
(738,467)
-
Measured at
amortized cost
(36,919,375)
(198,119)
-
IAS 32 and 39 and
IFRS 7
343,899
1,213,236
(126,158)
1,328,976
(1,475)
(65,495)
(653,161)
(1,149,257)
(463,938)
187,097
(567,595)
Carrying balance
5,997,052
1,213,236
488,058
(126,158)
1,225,978
2,943,216
1,715,872
688,735
(1,475)
(65,495)
(653,161)
(1,149,257)
(463,938)
187,097
(567,595)
Income (loss) before taxes on income
3,402,269
-
289,935
-
1,815,876
-
43,355,113
-
1,788,686
-
(2,148,349)
-
(37,117,494)
-
46,129
(2,506,682)
(394,443)
11,432,165
(2,506,682)
(394,443)
Net income
3,402,269
289,935
1,815,876
43,355,113
1,788,686
(2,148,349)
(37,117,494)
(2,854,996)
8,531,040
Gross profit (loss) from financial intermediation
Equity in subsidiaries
Reversal (recognition) of provision for loss on investments
Income from dividends
Income (loss) on sale of variable income securities
Income (loss) on derivatives - variable income
Other income from equity interests
Tax expenses
Personnel expenses
45
Financial assets
Borrowings
Receivables
Income (loss) on securities
Shares
Mutual fund units
Debentures
Promissory notes
Financial Treasury Bills (LFTs) - Series A
Income from transactions linked to Treasury
Income (loss) on sale of fixed income securities
Deposits
Payables for issue of debentures
Hybrid equity/debt instrument
Subordinated debt
Income (loss) on derivatives
Futures
Swap
Expenses on transactions linked to Treasury
Reversal (recognition) of the allowance for losses
On onlendings
On lending operations
On receivables
On credit sale of securities
On debentures
Credit recovery
Income (loss) on foreign exchange portfolio
-
IAS 32 and 39 and
IFRS 7
499,813
Carrying balance
30,805,942
-
-
-
8,926,518
10,157,440
153,002
96,712
6,582
146,965
822,303
658,943
-
-
-
499,813
-
61,998
540,090
173,638
1,379,637
864
6,582
1,224,220
1,358,006
1,480,857
1,817,455
2,924,830
499,813
4,280
1,988,845
-
(2,073,673)
(23,036,858)
-
(22,196,066)
-
-
-
-
(1,447,844)
(758,136)
(937,688)
(13,130,508)
(1,283,521)
(5,319,117)
(93,423)
-
(1,447,844)
(758,136)
(937,688)
(13,130,508)
(1,283,521)
(5,319,117)
(93,423)
-
-
-
-
(1,773,868)
(299,805)
-
(66,621)
-
(963,298)
(184,755)
(66,621)
-
-
(227,028)
(66,651)
(5,390)
7,815
9,096
2,286,004
(15,001)
-
-
-
-
(227,028)
(66,651)
(5,390)
7,815
9,096
2,286,004
(15,001)
Held for trading
788,279
Designated at
fair value
(301,415)
Available for
sale
3,937,303
Loans and
receivables
24,247,169
Held-tomaturity
1,634,793
Held for trading
-
-
-
-
8,926,518
10,157,440
153,002
96,712
-
295,722
472,314
20,243
-
(301,415)
-
61,998
(122,084)
237,619
604,941
1,358,006
638,311
1,158,512
-
540,090
1,443,433
864
2,924,830
4,280
925,620
-
-
-
-
810,570
115,050
-
46
Measured at
amortized cost
Financial assets
Held for trading
Designated at
fair value
Available for
sale
Loans and
receivables
Held-tomaturity
Held for trading
Measured at
amortized cost
IAS 32 and 39 and
IFRS 7
Carrying balance
Gross profit (loss) from financial intermediation
Reversal (recognition) of provision for loss on investments
Income from dividends
Income (loss) on derivatives - variable income
Other income from equity interests
Tax expenses
Personnel expenses
1,713,899
1,159,919
2,437,105
-
(301,415)
-
3,937,303
-
26,236,014
283,850
635,639
1,667,902
-
1,634,793
-
(2,073,673)
(1,755,142)
-
(23,036,858)
(176,464)
-
499,813
439,349
(174,188)
1,854,985
(2)
26,436
(592,512)
(1,136,292)
(306,629)
531,317
(479,291)
8,609,876
439.349
107,386
(174,188)
635,639
1,667,902
3,014,904
681,963
(2)
26,436
(592,512)
(1,136,292)
(306,629)
531,317
(479,291)
Income (loss) before taxes on income
5,310,923
-
(301,415)
-
3,937,303
-
28,823,405
-
1,634,793
-
(3,828,815)
-
(23,213,322)
-
662,986
(4,007,074)
(161,447)
13,025,858
(4,007,074)
(161,447)
Net income
5,310,923
(301,415)
3,937,303
28,823,405
1,634,793
(3,828,815)
(23,213,322)
(3,505,535)
8,857,337
47
4.8.2 Financial assets and financial liabilities not measured at fair value
The table below shows the carrying balances of financial assets and financial
liabilities not measured at fair value, classified as loans and receivables, and
held-to-maturity, in the case of financial assets, and as measured at amortized
cost, in the case of financial liabilities. The table also presents their fair values
for comparative purposes.
Carrying
balance
Fair value
Financial assets
Securities
Loan investments
Other receivables
Receivables
Receivables from the Brazilian National Treasury
Dividends and interest on capital receivable
Other
5,821
5,365,875
25,985,551
207,815,005
219,420,938
5,821
5,365,875
27,101,518
207,815,005
219,420,938
1,184,067
1,057,467
3,222,436
7,830,901
1,883,514
690,247
1,184,067
1,057,467
3,222,436
7,830,901
1,883,514
690,247
Total
474,461,822
475,577,789
Carrying
balance
Fair value
Deposits
Debentures issued
Subordinated debt
Other payables
Payables
Linked to settlement of exchange transactions
Linked to Brazilian National Treasury
21,046,859
7,808,271
12,055,287
334,248,613
13,775,298
125,218,366
32,687,740
21,046,859
7,808,271
12,055,287
334,248,613
13,775,298
125,218,366
32,687,740
175,877
84,027
81,164
131,312
406,647
175,877
84,027
81,164
131,312
406,647
Total
547,719,461
547,719,461
48
Carrying
balance
Fair value
Financial assets
Securities
Loan investments
Other receivables
Receivables
Other
Total
Deposits
Debentures issued
Subordinated debt
Other payables
Payables
Total
15,897
10,113,958
15,888,794
180,730,640
183,187,393
15,897
10,113,958
16,761,691
180,730,640
183,187,393
1,276,778
2,708,719
7,172,194
3,547,589
1,909,393
563,912
407,115,267
1,276,778
2,708,719
7,172,194
3,547,589
1,909,393
563,912
407,988,165
Carrying
balance
Fair value
21,573,906
12,726,922
272,186,665
13,234,016
110,689,308
31,406,440
21,573,906
12,726,922
272,186,665
13,234,016
110,689,308
31,406,440
201,083
96,265
128,862
483,309
462,726,775
201,083
96,265
128,862
483,309
462,726,775
(a) Securities
As commented in Note 6, securities that are not measured at fair value
include government bonds classified as held-to-maturity and debentures
classified as loans and receivables.
The fair values of held-to-maturity securities were determined, for
purposes of this presentation, using the same assumptions adopted to
measure the fair values of securities classified as held-for-trading and
available-for-sale.
The fair values of debentures classified as loans and receivables are
addressed in the next topic.
49
(b) Loan investments, onlendings, debentures, credit sale of securities, and
receivables
The BNDES, as the main Government agency responsible for grating
long-term credit that is ultimately intended to promote national
development and the creation of jobs, extends financing facilities bearing
interest rates different from those charged in the local market in general.
These financing facilities have special features, with terms and conditions
set out in agreements entered into at arm’s length, and provide for rates
that would be applicable to any entity, only adjusted for the specific credit
risk of the involved party.
Accordingly, the BNDES believes that the carrying balance of its loan
portfolio approximates its fair value, both at the time a facility is extended
and on subsequent dates.
In addition to the reasons above, this understanding is based on the
following:
(i) There is no consolidated local long-term credit market with the
features of the financing facilities extended by the BNDES, where
available long-term credit with such features is limited to the credit
offered by the BNDES; and
(ii) The fair values of the financial instruments usually correspond to their
exit price. In the event of early settlement, this is usually based on the
yield curve.
(c) Deposits, debentures issued, borrowings and onlendings, hybrid
instruments issued, subordinated debt, and financial and development
funds
The Bank’s main funding sources are the Fundo de Amparo do
Trabalhador - FAT (Workers’ Assistance Fund), managed by the Brazilian
National Treasury, financial and development funds, and international
development agencies.
This funding has special features that allow the BNDES to meet its main
objectives and the underlying agreements provide for interest rates and
terms significantly different from usual terms and conditions of the local
market in general.
Accordingly, for the same reasons set out in the previous topic, the
carrying balances approximate their fair values, both on initial recognition
and on subsequent dates.
50
(d) Other financial assets and financial liabilities
The carrying amount of other financial assets and financial liabilities
approximate their fair values.
4.8.3 Financial assets and financial liabilities measured at fair value
When measuring the fair value of financial instruments the BNDES uses the
following hierarchy:
Level 1: quoted prices (unadjusted) in active markets. The fair values of
financial instruments traded in active markets are based on market prices
quoted at the end of the reporting period. A market is considered an active
market if quoted prices are readily and regularly available. The instruments
included in level 1 basically comprise shares, government bonds, and
derivative instruments traded in stock exchange.
Level 2: prices quoted in an active market for similar instruments or valuation
techniques whose significant inputs are based on observable market data. The
instruments included in level 2 basically comprise mutual fund units,
debentures classified as designated at fair value and available-for-sale, shares
and derivative instruments traded in an over-the-counter market.
Level 3: valuation techniques whose significant inputs are not based on
observable market data. The instruments included in level 3 basically comprise
shares and debentures classified as designated at fair value.
Cost: part of the portfolio of shares classified as available-for-sale is measured
at cost, net of any impairment losses. These shares are not measured at fair
value in view of the range of possible fair values too broad to be admitted.
Specific valuation techniques used to measure financial instruments, according
to Level 2 rules, include:
-
quoted market prices or quotations of financial institutions or brokers for
similar instruments;
-
the fair value of debentures that have an option for conversion/swap into
shares is calculated using the projected credit flow based on preset rates,
discounting the projected flow to present value, deducted by a discounted
rate consisting of: spread corresponding to the risk-free rate + market risk
spread;
51
-
the fair value of European options whose underlying assets are traded on a
stock exchange is calculated based on the following models:
(a) Black-Scholes-Merton whose main assumptions are listed below:
a.
b.
c.
d.
e.
f.
g.
Initial date: refers to the valuation date, i.e., the closing date of each
quarter;
Closing date: maturity date;
Asset price: last average quotation of the underlying assets up to
the end of the first fortnight of the base month;
Strike price: projected strike price of option on the closing date,
pursuant to the conditions set forth in the agreement;
Risk-free rate: preset nominal rate of government bonds issued by
the National Treasury with a term compatible to the appraised
asset;
Dividend yield: calculated on a case by case basis but generally
defined as the average for the last years;
Volatility: the annual volatility based on the daily fluctuation of the
underlying asset over the last four years was adopted.
(b) Monte Carlo simulation;
-
-
the fair value of other options/derivatives whose underlying asset is
not traded on a stock exchange is calculated by determining the fair
value of the option based on the difference between the economic
value of the underlying asset, calculated using pricing models
based on multiples or discounted cash flows, and the debt balance
of the debenture contract on the base date.
the fair value of American options whose underlying assets are not
traded on a stock exchange is calculated based on the portfolio
valuation model.
52
The table below shows the Bank’s financial assets and financial liabilities
measured at fair value as at December 31, 2011 and at December 31, 2010:
Financial assets
Securities
Brazilian Government bonds
Investment fund units
Debentures
Shares
Futures
Swaps
Options
Other receivables
Tax incentives
Total
Cost
Level 2
Level 1
Level 3
Total
210,073
5,752,423
6,934,442
12,551,359
5,941,716
1,400,804
73,453,778
3,535,034
7,777,901
8,316,261
2,730,005
447,100
5,752,423
6,934,442
12,551,359
5,941,716
3,535,034
11,908,710
82,427,212
-
10
-
17,443
572,752
-
10
17,443
572,752
-
351,756
-
-
351,756
210,073
106,386,288
20,219,391
3,177,105
129,992,857
Cost
Level 1
Level 2
Level 3
Total
Futures
Swaps
Options
-
11,393
-
437,861
96,338
-
11,393
437,861
96,338
Total
-
11,393
534,199
-
545,592
Financial assets
Securities
Brazilian Government bonds
Investment fund units
Debentures
Shares
Futures
Swaps
Options
Other receivables
Tax incentives
Total
Cost
Futures
Swaps
Options
Total
Cost
Level 2
Level 1
Level 3
Total
186,163
5,892,140
2,938,694
2,489,201
2,203,983
1,854,068
84,447,295
5,988,528
10,487,204
11,135,263
2,007,906
337,807
5,892,140
2,938,694
2,489,201
2,203,983
5,988,528
14,349,179
96,106,529
-
833
-
271,248
-
833
271,248
186,163
99,826,214
462,695
28,344,938
2,345,714
462,695
130,703,029
Level 1
Level 2
Level 3
-
70,150
70,150
53
164,154
483,569
647,723
Total
-
70,150
164,154
483,569
717,874
The table below shows the changes in the financial instruments classified in
level 3 of the fair value hierarchy for year ended December 31, 2011 and 2010:
2,035,439
Gain (loss)
Profit for the year
Purchase/issue
Transfers between other levels
(65,320)
1,198
708,826
(316,815)
(17,614)
2,345,714
Sale/settlement
Gain (loss)
Profit for the year
Purchase/issue
Transfers between other levels
112.171
(165.985)
1,231,587
(19,995)
(326,386)
3,177,105
Sale/settlement
4.9
Foreign exchange exposure
Foreign exchange derivative instruments are used to adjust the composition of the
Bank’s financial assets and financial liabilities. In particular, the purpose of these
derivatives is to make the credit product “currency basket”, which represents the
composition of the Bank’s foreign exposure, more attractive to borrowers.
Concurrently, these derivatives contribute to the management of assets and liabilities
denominated in hard currencies to reduce a possible mismatch between such
currencies.
According to its financial policy guidance, the purpose of the BNDES is to transfer to
borrowers the currency risks, including risks arising from derivative transactions,
where the BNDES ultimately assumes the credit risk possibly derived from foreign
exchange rate volatilities on its clients.
Using foreign exchange derivative instruments, the Bank seeks to increase the weight
of the US dollar in the currency basket and minimize the adverse impact on of other
hard currencies’ volatility on borrowers denominated in the currency pegged to
BNDES’s “currency basket” and reduce the risk associated to a possible currency
mismatch in BNDES’s balance sheet.
54
The table below shows the foreign exchange exposures of financial assets and
financial liabilities as at December 31, 2011 and 2010.
Financial assets
R$
USD
EUR
YEN
SWFR
Total
Securities (1)
Derivative financial instruments (2) (3)
Onlendings (1)
Loan investments (1)
Other receivables (1)
5,141
5,346,130
154,969,579
1,640,384
206,871,952
147,979,965
16,318,623
680
19,745
78,790
4,179,900
1,361,558
72,399,878
28
4
1,845,481
48
377,990
-
2,705
31,588
112,374
-
399,875
-
5,821
5,365,875
155,051,078
8,065,640
208,265,146
220,870,208
16,318,651
Total
533,131,774
78,040,580
2,223,523
146,667
399,875
613,942,419
Debentures issued
Subordinated debt
Other payables
21,046,859
7,808,271
12,055,287
266,691,569
13,775,298
116,890,910
32,687,740
5,762,457
879,027
64,599,779
8,327,456
4,556,008
-
1,851,329
-
705,371
-
400,566
-
21,046,859
7,808,271
12,055,287
334,248,613
13,775,298
125,218,366
32,687,740
10,318,465
879,027
Total
477,597,417
77,483,243
1,851,329
705,371
400,566
558,037,926
55,534,357
557,337
372,194
(558,703)
(691)
55,904,493
Deposits
Net exposure
(1)
(2)
(3)
Balance presented gross of allowance for impairment losses.
The long positions and the short positions of swap contracts are separately presently (gross).
Considers the notional amount of futures.
Financial assets
Securities (1)
Onlendings (1)
Loan investments (1)
Other receivables (1)
Total
Deposits
Debentures issued
Subordinated debt
Other payables
Total
Net exposure
(1)
(2)
(3)
USD
EUR
R$
Total
15,288
609
-
-
15,897
8,424,343
1,689,615
-
-
10,113,958
145,859,506
145,773,220
83,094
9
3,182
543,330
8,484,609
1,674,238
-
10,702,177
180,169,712
1,114,804
93
31,184
181,315,793
124,694,203
59,099,364
534,184
99,755
184,427,506
17,663,752
25
-
-
17,663,777
477,283,848
70,472,120
2,208,524
134,121
550,098,614
21,573,906
-
-
-
21,573,906
12,726,922
-
-
-
12,726,922
212,072,804
57,735,298
1,695,548
683,015
272,186,665
13,234,016
-
-
-
13,234,016
101,398,844
9,290,463
-
-
110,689,308
31,406,440
-
-
-
31,406,440
1,720,402
3,038,437
-
-
4,758,839
909,519
-
-
-
909,519
395,042,853
70,064,198
1,695,548
683,015
467,485,615
82,240,995
407,922
512,976
(548,894)
82,612,999
Balance presented gross of allowance for impairment losses.
The long positions and the short positions of swap contracts are separately presently (gross).
Considers the notional amount of futures.
55
YEN
4.10 Cash flows for financial liabilities
The table below shows the cash outflows of financial liabilities. The amounts disclosed in this table represent the contractual
undiscounted cash flow, and thus differ the amount disclosed in the balance sheet.
Without
fixed
maturity
Up to 3
months
3 to 12
months
1 to 5 years
5 to 10 years
10 to 15
years
15 to 20
years
20 to 25
years
Over 25
years
Deposits
-
1,140,727
2,372,146
9,605,911
7,327,686
4,627,752
91,349
-
-
-
7,808,271
-
-
-
-
-
-
-
Debentures issued
Private issues
Public issues
-
241,088
935,183
709,759
69,400
3,269,972
5,148,334
3,079,595
596,676
1,128,049
-
138,185
-
-
-
Borrowings
Domestic
Foreign
-
149,684
58,966
443,278
424,695
2,202,939
2,355,290
2,335,651
9,080,512
1,926,530
-
63,987
-
1,696
-
6
-
9,113,889
-
3,441,978
358,578
8,773,772
969,034
63,250,708
5,363,320
85,275,181
5,303,112
89,699,633
2,688,995
132,360,961
1,020,521
158,182,167
-
285.668.917
-
-
702,943
359,452
4,035,287
5,036,805
1,783,224
1,783,224
1,428,787
5,705,119
121,778,244
3,516,366
3,507,363
28,136,167
35,191,027
35,191,027
31,703,171
-
-
32,687,740
-
-
-
-
-
-
-
-
-
(7,709)
112,049
524,116
230,263
-
-
-
-
Other payables
-
879,027
-
-
-
-
-
-
-
163,579,873
19,225,102
17,740,948
123,892,045
153,456,509
137,045,211
167,161,398
159,612,650
291,374,042
Onlendings
Domestic
Foreign
Subordinated debt
Total
56
Without fixed
maturity
Up to 3
months
3 to 12
months
1 to 5 years
5 to 10 years
10 to 15
years
15 to 20
years
20 to 25
years
Over 25 years
Deposits
-
1,121,805
2,366,224
9,680,497
7,512,933
4,819,682
96,031
-
-
Debentures issued
Private issues
Public issues
-
227,164
834,561
696,452
64,658
3,423,835
5,931,099
3,270,575
593,424
1,481,489
-
278,918
-
-
-
151,139
52,379
447,202
888,696
2,227,646
1,536,712
2,374,892
8,152,127
1,974,292
-
409,669
-
-
-
6,783,074
5,469,784
320,276
7,699,406
738,241
49,973,207
4,560,263
79,153,771
4,693,673
72,779,175
2,786,950
99,666,133
1,181,234
116,466,601
52,400
209.622.304
-
-
586,133
334,780
3,900,840
4,858,068
2,312,360
1,675,779
1,339,119
5,695,011
107,703,838
5,718,483
3,060,224
24,966,128
31,220,809
31,203,512
31,204,648
3,143,500
-
Borrowings
Domestic
Foreign
Onlendings
Domestic
Foreign
Subordinated debt
31,406,440
-
17,277
25,106
144,720
52,253
1,876
-
-
-
Other payables
-
909,519
-
-
-
-
-
-
-
145,893,352
15,408,520
16,320,989
106,344,947
141,882,525
117,359,336
134,512,412
121,001,620
215,317,315
Total
57
4.11 Undrawn Loan investments and interbank onlendings
As at December 31, 2011 and 2010, the BNDES had the following commitments
arising from undrawn Loan investments and interbank onlendings:
Interbank
onlendings
Loan investments
106,144,842
72,305,344
Total
41,003,763
25,190,676
147,148,604
97,496,020
4.12 Maximum exposure to credit risk and credit quality of financial assets
The table below presents the Bank’s maximum exposure to credit risk as at December
31, 2011 and 2010, disregarding any guarantees, and taking into account only those
financial assets that have some type of exposure to credit risk, presented at their gross
carrying amounts.
Internally
rated
Not
Without
internally
credit risk
rated
(*)
Total
Internally
rated
Not
Without
internally
credit risk
rated
(*)
Total
Securities
Loan investments
Other receivables
5,836,656
207,815,005
219,420,938
2,241,534
5,821
5,365,875
63,237,545
590,205
13,627,098
85,962,246
351,756
5,821
5,365,875
155,036,447
590,205
207,815,005
219,420,938
16,220,388
3,774,633
180,730,640
183,187,393
3,985,497
15,897
10,113,958
39,987,358
272,082
13,193,089
102,095,056
462,695
15,897
10,113,958
145,857,047
272,082
180,730,640
183,187,393
17,641,280
Total
435,314,133
82,826,544
86,314,002
604,454,679
371,678,163
63,582,383
102,557,751
537,818,297
(*) Include mutual fund units and shares.
(a) Internally rated financial assets
The table below presents the credit quality analysis of internally rated financial
assets.
Allowance
for
Gross
doubtful
balance
accounts
AA
A
B
C
D
E
F
G
H
Total
159,596,011
224,914,596
39,487,365
7,472,724
830,818
3,946,327
274,061
18,492
786,043
437,326,437
(187,285)
(432,276)
(162,828)
(57,925)
(14,133)
(868,298)
(25,183)
(4,145)
(260,231)
(2,012,304)
Net
159,408,726
224,482,320
39,324,537
7,414,799
816,685
3,078,029
248,878
14,347
525,812
435,314,133
Allowance
for
Gross
doubtful
balance
accounts
137,945,424
185,030,075
34,529,311
10,659,566
1,841,835
1,063,468
144,531
596,775
1,717,403
373,528,386
(222,477)
(473,278)
(157,485)
(90,738)
(38,153)
(62,026)
(14,555)
(138,231)
(653,279)
(1,850,223)
Net
137,722,947
184,556,797
34,371,826
10,568,828
1,803,682
1,001,442
129,976
458,544
1,064,121
371,678,163
(b) Financial assets not internally rated
The counterparties of the main financial instruments not internally rates are prime
financial institutions and the National Treasury.
58
4.12.1 Portfolio analysis by risk rating
The allowance for impairment losses disclosed in the balance sheet at the end of the reporting period is based on risk ratings.
The tables below show BNDES’s credit portfolio by risk rating, status and related allowance for impairment losses:
Risk
rating
AA
A
B
Status
Performing
Performing
Performing
Allowance
for
impairment
losses
Gross balance
Loan investments
Debentures
Allowance
for
impairment
Gross
losses
balance
Receivables
Allowance
for
impairment
Gross
losses
balance
Allowance
for
impairment
Gross
losses
balance
Total
Gross balance
Allowance for
impairment
losses
Gross balance
Allowance for
impairment
losses
58,996,744
136,353,655
12,647,621
(62,888)
(288,893)
(84,269)
96,638,789
85,513,490
26,719,341
(123,088)
(138,915)
(78,191)
2,843,551
2,064,458
103,917
(818)
(3,246)
(318)
986,292
15,244
16,486
(470)
(19)
(50)
130,635
967,749
-
(21)
(1,203)
-
159,596,011
224,914,596
39,487,365
(187,285)
(432,276)
(162,828)
C
C
Performing
Nonperforming
189,873
189,873
(2,262)
(2,262)
6,556,149
3,844
6,559,993
(50,265)
(29)
(50,294)
722,345
722,345
(5,365)
(5,365)
513
513
(4)
(4)
-
-
7,468,880
3,844
7,472,724
(57,896)
(29)
(57,925)
D
D
Performing
Nonperforming
-
-
830,818
830,818
(14,133)
(14,133)
-
-
-
-
-
-
830,818
830,818
(14,133)
(14,133)
E
E
Performing
Nonperforming
-
-
3,671,201
158,110
3,829,311
(842,897)
(20,517)
(863,414)
117,016
117,016
(4,884)
(4,884)
-
-
-
-
3,788,217
158,110
3,946,327
(847,781)
(20,517)
(868,298)
F
F
Performing
Nonperforming
350
350
(21)
(21)
233,848
233,848
(22,572)
(22,572)
-
-
39,863
39,863
(2,590)
(2,590)
-
-
274,061
274,061
(25,183)
(25,183)
G
G
Performing
Nonperforming
-
-
18,492
18,492
(4,145)
(4,145)
-
-
-
-
-
-
18,492
18,492
(4,145)
(4,145)
H
H
Performing
Nonperforming
76,903
76,903
(11,808)
(11,808)
87,248
438,878
526,126
(41,303)
(113,215)
(154,518)
-
-
1,879
2,637
4,516
(964)
(1,350)
(2,314)
178,498
178,498
(91,591)
(91,591)
344,528
441,515
786,043
(145,666)
(114,565)
(260,231)
208,265,146
(450,141)
220,870,208
(1,449,270)
5,851,287
(14,631)
1,062,914
(5,447)
1,276,882
(92,815)
437,326,437
(2,012,304)
Total
59
Risk
rating
Status
Allowance
for
impairment
losses
Gross balance
Loan investments
Allowance
for
impairment
losses
Gross balance
Debentures
Allowance
for
impairment
Gross
losses
balance
Receivables
Allowance
for
impairment
Gross
losses
balance
Allowance
for
impairment
Gross
losses
balance
Total
Gross
balance
Allowance for
impairment
losses
AA
A
B
Performing
Performing
Performing
59,242,581
110,320,629
11,022,551
(92,140)
(333,481)
(89,166)
74,462,830
72,176,422
22,547,079
(128,238)
(136,586)
(65,383)
3,179,092
529,990
68,009
(1,566)
(685)
(208)
940,662
1,735,043
(475)
(2,168)
120,259
267,991
891,672
(58)
(358)
(2,728)
137,945,424
185,030,074
34,529,311
(222,477)
(473,278)
(157,485)
C
Performing
305,570
(4,672)
10,353,996
(86,066)
-
-
-
-
-
-
10,659,566
(90,739)
D
Performing
-
-
1,823,987
(37,833)
-
-
17,848
(320)
-
-
1,841,835
(38,153)
E
E
Performing
Nonperforming
16,011
16,011
(681)
(681)
1,000,399
47,058
1,047,456
(42,988)
(18,357)
(61,345)
-
-
-
-
-
-
1,016,410
47,058
1,063,467
(43,669)
(18,357)
(62,026)
850
850
(60)
(60)
143,303
378
143,681
(14,453)
(42)
(14,495)
-
-
-
-
-
-
144,153
378
144,531
(14,513)
(42)
(14,555)
-
-
596,740
35
596,775
(138,212)
(19)
(138,231)
-
-
-
-
-
-
596,740
35
596,775
(138,212)
(19)
(138,231)
407,601
407,601
(64,953)
(64,953)
788,631
486,649
1,275,280
(407,452)
(164,483)
(571,935)
-
-
32,536
1,983
34,520
(15,262)
(1,129)
(16,391)
-
-
1,228,768
488,632
1,717,400
(487,666)
(165,613)
(653,279)
181,315,793
(585,153)
184,427,506
(1,240,113)
3,777,091
(2,459)
2,728,073
(19,354)
1,279,922
(3,144)
373,528,386
(1,850,223)
Subtotal
F
F
Performing
Nonperforming
Subtotal
G
G
Performing
Nonperforming
Subtotal
H
H
Performing
Nonperforming
Subtotal
Total
Guarantees and the main credit risk mitigation actions are described in Note 4.4.2 (Monitoring of risk exposure limits and mitigation policies).
60
4.12.2 Analysis of impairment losses of the Bank’s portfolio
The table below is a breakdown of the Bank’s credit portfolio by
impairment losses:
Not past due without evidence of impairment
Past due without evidence of impairment
Individually assessed with evidence of impairment
Collectively assessed with evidence of impairment
Subtotal
Allowance for impairment losses
Total
At December 31,
2011
At December 31,
2010
433,693,210
132,452
3,385,130
115,645
437,326,437
372,989,683
45,903
381,780
111,017
373,528,383
(2,012,304)
(1,850,223)
435,314,133
371,678,160
(a) Not past due without evidence of impairment by risk rating:
At December 31,
2011
At December 31,
2010
AA
A
B
C
D
E
F
G
H
159,591,036
224,944,652
39,486,402
7,468,928
831,100
761,752
273,627
18,489
317,224
138,042,145
185,210,213
34,609,378
10,660,423
1,835,947
1,016,495
143,353
594,300
877,429
Total
433,693,210
372,989,683
Risk rating
(b) Past due without evidence of impairment
The Bank’s credit portfolio past due for less than 90 days that is not
impaired is broken down as follows:
Up to 30 days past due
31-60 days past due
61-90 days past due
Total
At December 31,
2011
At December 31,
2010
85
95,417
36,950
4,234
20,460
21,209
132,452
45,903
Guarantees in general include mortgages and liens, collateralization of
receivables, export credit insurance, and sureties, with coverage above
the financed amount, depending of the risk profile. See Note 4.4.2
(Monitoring of risk exposure limits and mitigation policies).
61
(c) Individually assessed with evidence of impairment
At December 31,
2011
At December 31,
2010
Gross carrying amount
3,385,130
(885,767)
381,780
(92,254)
Net carrying amount
2,499,363
289,526
Fair value of guarantees
2,499,363
289,526
The amount presented in line item ‘Fair value of guarantees’ considers
the future realization of guarantees and represents the minimum amount
receivable from the transaction approved by the BNDES executive
board. In addition, this amount is discounted to present value at the
actual original rate of the contracts.
4.13 Risk concentration of financial assets exposed to credit risk
The tables below show the main exposures to credit risk of financial assets by industry
and the balances of loan investments and interbank onlendings of the major clients.
(a)
By industry
Private sector
Public
Sector
Rural
Manufacturing
Trade
Financial
intermediation
Other
services
Total
Securities
Interbank onlendings and Loan
investments
Other receivables
54,828,458
-
268,281
-
5,929,868
-
24,110
-
5,821
5,365,875
590,205
8,038,116
-
5,821
5,365,875
69,088,832
590,205
116,095,416
12,056,115
3,183,511
-
90,871,992
1,087,536
3,206,262
13,198
140,050,223
-
75,727,950
2,810,045
429,135,354
15,966,894
Total
182,979,989
3,451,792
97,889,396
3,243,570
146,012,124
86,576,111
520,152,981
Public
Sector
Securities
Interbank onlendings and Loan
investments
Other receivables
Total
Private sector
Financial
Manufacturing
Trade
intermediation
Rural
Other
services
Total
28,747,765
-
-
9,286,826
-
46,288
-
15,897
10,113,958
272,082
5,683,570
-
15,897
10,113,958
43,764,449
272,082
97,080,805
11,678,293
137,506,863
3,161,899
3,161,899
74,908,944
1,264,566
85,460,335
2,737,901
2,784,189
125,465,316
135,867,253
62,388,435
4,258,224
72,330,228
365,743,299
17,201,083
437,110,767
62
(b) Major clients - interbank onlendings and Loan investments
At December 31,
2011
At December 31,
2010
10 largest customers
50 next largest customers
100 next largest customers
Other customers
166,129,658
126,728,923
68,439,933
67,836,840
141,577,335
112,947,014
55,832,382
55,386,568
Total
429,135,354
365,743,299
At December 31,
2011
At December 31,
2010
871,806
881,100
10,448,322
2,286,031
4.14 Renegotiated and recovered receivables
Renegotiated receivables
Recovered receivables
4.15 Enforcement of guarantees
The BNDES obtained the ownership of assets pledged as guarantee, as follows:
Properties and sundry goods
At December 31,
2010
8,582
8,632
The properties seized are sold as soon as possible and the proceeds are used to reduce
the outstanding debts. A repossessed property is classified in the balance sheet in line
item ‘Other assets’.
5.
CASH AND CASH EQUIVALENTS
At December 31,
2011
At December 31,
2010
19,745
5,043,427
302,703
1,689,615
8,400,000
24,343
Total
5,365,875
10,113,958
Current
Noncurrent
5,365,875
-
10,113,958
-
Purchases of securities under short-term resale agreements (over-the-counter market) are
backed by federal government bonds.
Investments in interbank deposits are short-term investments registered with CETIP
(Brazilian clearing and settlement house).
63
6.
SECURITIES
6.1
Per nature and issuer
Held for
trading
Free float
Public sector
Shares
Debentures
Exclusive mutual funds
Designated
at fair value
Availablefor-sale
Loans and
receivables
Held-tomaturity
Total
4,748,194
5,004,718
112,652
1,310,694
167,476
-
1,004,229
1,929,724
12,438,707
5,941,716
38,046,755
560,101
-
2,900,923
-
1,988,041
10,484,243
-
5,752,423
6,934,442
14,539,400
16,425,959
38,046,755
3,628,500
1,310,694
-
9,899,715
-
1,281,418
44,380,457
2,224,340
2,935,733
-
-
14,116,866
44,380,457
2,224,340
Linked to repurchase agreements
Public
-
-
-
-
7,420,976
7,420,976
Linked to guarantees provided
Public sector
Treasury Financial Bills (LFT-A)
-
-
-
-
48,615
48,615
Linked to assignment
Public sector
-
-
-
-
207,020
207,020
11,176,258
10,067,191
107,807,447
5,836,656
20,148,895
155,036,447
Private sector
Debentures
Shares
Mutual funds
Total
Held for
trading
Free float
Public sector
National Treasury Notes (NTN)-B
Shares
Debentures
Exclusive mutual funds
Private sector
Debentures
Shares
Mutual funds
Linked to guarantees provided
Public sector
Treasury Financial Bills (LFT-A)
Total
AvailableLoans and
for-sale
receivables
Designated at
fair value
4,992,577
104,299
3,965,698
-
-
Held-tomaturity
Total
145,725
-
899,563
2,938,694
2,384,902
2,203,984
54,902,741
493,989
-
2,467,307
-
6,691,760
5,359,702
-
5,892,140
2,938,694
9,180,961
7,563,686
54,902,741
3,107,021
3,965,698
11,898,610
-
1,810,854
41,203,788
2,022,829
1,307,325
-
-
15,016,789
41,203,788
2,022,829
-
-
-
-
62,700
62,700
9,062,574
12,044,335
108,861,344
3,774,632
12,114,162
145,857,047
64
6.2
Exclusive mutual funds managed by Banco do Brasil and Caixa Econômica Federal
At December
31, 2011
At December
31, 2010
5
6,017
713,184
1,709,040
508,299
2,284
4
1,223,776
1,647,610
2
3,362,669
(103)
(221)
1,223,673
3,362,448
4,324
4
-
13,879
35,614
1
39,939
64,071
77,954
(5)
(5)
(5)
(5)
39,934
77,949
At December
31, 2011
At December
31, 2010
-
2
47,090
47,090
525,307
525,309
Subtotal
(3)
(3)
(8)
(8)
Subtotal
47,087
525,301
1,310,694
3,965,698
BB Extramercado Fund (*)
Assets
Securities
National Treasury Notes (NTN)
Other
Subtotal
LIABILITIES
Other
Subtotal
Fundo BB GAIA FI RF
Assets
Securities
Other
Subtotal
LIABILITIES
Amounts payable
Subtotal
Subtotal
Fundo FI Caixa Progresso Curto Prazo
ATIVO
ASSETS
Subtotal
LIABILITIES
Amounts payable
Total
(*)
Includes the funds BB Urano 2 (FINAME), BB Extramercado Exclusivo 23 FI RF (BNDESPAR), and BB Milênio 28 FI
Renda Fixa (BNDES) which have similar investment policies.
65
6.3
Mutual Funds
These investments are managed by private financial institutions. The units are valued
by the unit amounts disclosed by the fund manager at the end of the reporting period.
Fund
- PROT - Fundo de Investimento em Participações
- Brasil Energia - Fundo de Investimentos em Participações
- Fundo de Investimento em Direitos Creditórios - Corporativo Brasil
- InfraBrasil - Fundo de Investimentos em Participações
- AG Angra Infra-Estrutura - Fundo de Investimento em Participações
- Fundo de Investimentos Cia. Paulista Trens Metropolitanos
- Logística Brasil - Fundo de Investimento em Participações
- Fundo de Invest. Em Partic. Governança e Gestão - FIPGG
- Fundo de Investimento em Participações Caixa Modal Oleo e Gas
- FIP Terra Viva - Fundo de Investimento em Participações
- Fundo Brascan de Petróleo e Gás
- Brasil Mezanino Infra-estr fdo. Inv. em Participações
- Fundo Mútuo Invest em Empresas Emergentes CRIATEC
- Fundo de Investimento em Participações Caixa Ambiental
- BR Educacional Fundo de Investimento em Participações
- CRP VI Venture Fundo Mútuo de Invest. Empr. Emergentes
- Fundo Brasil Agronegócio - Fundo de Investimento em Participações
- Vale Florestar Fundo de Investimento em Participações
- Fundo Brasil Sustentabilidade
- Fundo Empreendedor Brasil
Fund Manager
Mellon Serviços Financeiros
Distribuidora de Títulos Mobiliários
S.A.
Banco Bradesco S.A
Credit Suisse Brasil
Banco ABN Amro Real S.A.
Banco Bradesco S.A
Banco Bradesco S.A
Banco Bradesco S.A.
Governança & Gestão Investimentos
Caixa Econômica Federal
DGF Gestão de Fundos Ltda
Banco Brascan S.A.
Darby Stratus Administração de
Investimentos Ltda
BNY Mellon Serviços Financeiros
Distribuidora de Títulos e Valores
Mobiliários S.A
Caixa Econômica Federal
BEM - Distribuidora de Títulos e
Valores Mobiliários Ltda.
CRP Companhia de Participações
S.A
Banco Bradesco S.A
Citibank Distribuidora de Titulos e
Valores Mobiliários S.A
- Outros
Total
555,565
668,473
306,672
285,665
187,929
150,033
40,561
56,316
31,606
32,738
29,712
14,665
315,427
298,196
151,751
82,253
55,412
56,889
38,778
18,502
29,494
16,728
41,865
22,550
35,551
22,803
35,266
31,522
42,798
36,074
33,953
12,203
21,552
6,880
61,868
36,248
34,289
3,111
14,522
10,626
211,214
2,224,340
108,909
2,022,829
The investments in mutual funds are valued based on the price of each fund’s units
reported by the related fund managers. There is no difference between the adjusted
value and the fair value.
66
6.4
Shares, stock certificates and subscription warrants
Number of shares held
(in thousands)
Investees
América Latina Logística S.A. - ALL
Banco do Brasil
Bradesco
Brasil Foods
Braskem
CEG
CEMIG
CESP
Cia Siderúrgica Nacional
CPFL Energia
Eletrobrás (a)
Embraer
Gerdau
Iochpe
Itaú Unibanco Holding
Klabin
Light
LLX Logística
Marfrig
Paranapanema
PDG Realty
Petrobras (b)
Rede Energia
Tele Norte Leste
TOTVS
Tractebel
Usiminas
Vale
Other companies
Subtotal
(a)
(b)
Common
83,940
3,696
16,761
17,944,799
485
31,774
81,053
255,303
39,762
37,917
6,419
30,632
48,201
54,986
24,718
615,402
775
8,344
6,225
218,386
Preferred
9,523
44,317
11,147
9,348
36,954
21,218
11,259
87,903
1,341,349
67,643
5,627
18,549
68,276
% equity interest
12,21
1,92
5,53
34,56
1,7
2,85
2,18
8,42
21,61
5,37
3,44
6,77
9,58
15,02
13,89
17,23
2,2
15
15,86
1,34
5,23
1,83
5,34
At December 31,
2011
778,961
87,456
291,398
604,560
575,684
717,792
382,390
308,031
474,696
2,113,874
5,524,109
462,835
767,796
164,655
381,117
694,436
885,259
405,851
164,409
147,074
42,746,117
338,215
115,281
276,869
187,191
189,573
11,250,504
2,417,644
73,453,777
At December 31,
2010
1,270,009
7,352
305,196
609,657
903,633
789,571
310,601
505,190
848,988
1,686,318
4,742,631
470,390
923,975
153,164
445,071
634,267
780,192
97,083
738,919
278,230
251,633
48,538,156
408,564
161,236
281,730
169,760
354,521
15,434,023
2,365,772
84,465,832
Other unlisted companies
8,973,435
11,525,911
Total
82,427,212
95,991,743
Of total ownership interest of 21.61%, 6.86% is held directly by BNDES (74,545 thousand common shares and 18,263 thousand preferred shares) and 14.75% through its subsidiary BNDESPAR (180,758 thousand common shares and 18,691
thousand preferred shares).
Of total ownership interest of 15.00%, 3.39% is held directly by BNDES (442,001 thousand common shares) and 11.61% through its subsidiary BNDESPAR (173,400 thousand common shares and 1,341,349 thousand preferred shares).
67
6.5
Debentures
(a)
Broken down as follows:
At December 31,
2011
At December 31,
2010
10,067,191
9,899,715
167,476
12,044,335
11,898,610
145,725
Available-for-sale
Private sector
Public Sector
1,841,519
1,281,418
560,101
2,304,843
1,810,854
493,989
Loans and receivables
Private sector
Public Sector
5,836,656
2,945,999
2,905,288
(14,631)
3,774,632
1,307,219
2,469,872
(2,459)
Total
17,745,366
18,123,810
Current
Noncurrent
326,674
17,418,692
371,993
17,751,817
Designated at fair value
Private sector
Public Sector
(b)
Changes in allowance for impairment losses
2011
2010
Balance at beginning of year
2,459
11,555
Recognition (reversals), net
12,172
(9,096)
Balance at end of year
14,631
2,459
The effects of these changes on profit are presented in Note 27.
68
7.
DERIVATIVE FINANCIAL INSTRUMENTS
As at December 31,
2011
As at December 31,
2010
Long position
Swaps
Futures
Options
590,205
17,443
10
572,752
272,082
833
271,249
Short position
Swaps
Futures
Options
545,592
437,861
11,393
96,338
717,874
164,154
70,150
483,570
Net position
44,613
(445,792)
Current
Noncurrent
54,030
(9,417)
(330,710)
(115,082)
Breakdown of derivative financial instruments:
Memorandum account
Swap contracts
Foreign exchange:
Euro x US$
USD x R$
R$ x USD
Swiss franc x USD
USD x R$
Interest rates in US$:
Fixed vs. floating rate
Notional
amount
Assets
Notional
amount
Assets
Maturities
Custodian
Fair value
Sep/2017
Jan/2012, Feb/2012 and
Mar/2012
Dec/2014 until Jul/2019
Dec/2016
Jan/2012, Apr/2012 and
Jul/2012
CETIP
1,845,481
1,976,745
(131,264)
CETIP
CETIP
CETIP
564,267
477,427
399,875
546,824
538,968
465,040
17,443
(61,541)
(65,165)
BM&F
375,160
375,160
(1,198)
Mar/2015 until Agu/2021
CETIP
1,302,772
1,481,465
(178,693)
4,964,982
5,384,202
(420,418)
Notional amount
Future contracts
R$ (short position)
USD (long position)
USD (short position)
Maturities
Jan/2014, Jan/2015 and
Jan/2017
Jan/2012 until Apr2012
Jan/2012
Custodian
BM&F
BM&F
BM&F
Fair value
4,198,543
1,937,701
93,790
(2,285)
(9,108)
10
(11,383)
Options
Short position (liabilities)
Long position (assets)
Long position (assets)
Type
American
European
European
Pricing methodology
Black-Scholes/Merton
Fair value
(96,338)
478,861
93,891
476,414
69
Swap contracts
Foreign exchange:
EUR x USD
USD x R$
Maturities
Custodian
Feb/2011
Jan/2011
Until Mar/2011
CETIP
CETIP
Mar/2015
Until Agu/2021
CETIP
Memorandum account
Notional amount Notional amount
Assets
Liabilities
1,674,238
501,014
Fair value
1,705,365
(31,127)
518,959
(17,945)
1,333,072
(115,082)
3,557,396
(164,154)
Interest rates in US$:
Fixed vs. floating rate
Total posição líquida
1,217,990
3,393,242
Future contracts
Notional amounts
DI (short position)
USD (long position)
Total net position
501,693
6,765,605
Fair value
jan/2011 until jan/2013
nov/2010
BM&F
BM&F
833
(70,150)
(69,317)
Type
American
Pricing methodology
Fair value
(483,569)
European
European
229,902
41,346
(212,321)
Options
Purchase of shares (short position)
Sale of shares (long position)
Sale of shares (long position)
Total net position
7.1
Swap
In view of the features of BNDES’s liability transactions, the Bank has performed
financial hedges on the over-the-counter market, registered with the CETIP (Brazilian
clearing and settlement house). In order to mitigate the credit risk involved in such
transactions, the acceptance of counterparties is decided based on the credit analysis
conducted by BNDES, which can even include the requirement of formal guarantees.
The tables below describe the asset transactions involving currency hedges as at
December 31, 2011.
Summary of outstanding swap transactions contracted on the over-the-counter market:
Notional amount
Benchmark currency
Maturity
EURO 750 million1
Euro - USD
Sep/2017
US$300 million
USD - R$
US$690.4 million
US$ (fixed interest rate
–floating)
R$452.5 million 1
R$ - USD
CHF 200 million
1
Swiss franc - USD
Between Jul/2012 and
Sep/2012
Between Mar/2015 and
Aug/2021
Between Dec/2014 and
Jul/2019
Dec/2016
Counterparties
Deutsche Bank, HSBC, Santander and Bank of America
Merrill Lynch de Investimentos
Itaú BBA and Banco Votorantim
Citibank, Bank of América Merrill Lynch de Investimentos
and HSBC
Merril Lynch de Investimentos, Santander and Deutsche Bank
Santander and Société Generale
1
Operations contracted with bilateral credit risk mitigation mechanism through the assignment of government
bonds and interbank deposits as margin. Under the terms of the agreements, bilateral contributions of initial
margins are made when operation is contracted and, until settlement, periodic reviews are performed to supplement
the guarantee.
As at December 31, 2011, government bonds given and received as guarantee totaled R$219.6.2 million and
R$146.3 million, respectively. The amounts were calculated based on the unit prices in BACEN Resolution 550
disclosed on the reporting date.
70
7.2
Futures
In order to manage currency and short-term interest rate mismatches, BNDES carries
out, through the Managed Portfolio, derivative transactions on the BM&F.
Investments and redemptions are ruled by BNDES and performed by BB DTVM, and
the amounts arising from the redemption of investments in securities are deposited in a
BNDES account with Banco do Brasil to be reinvested.
8.
INTERBANK ONLENDINGS
(a)
Broken down as follows:
At December 31,
2011
At December 31,
2010
208,140,358
80,971
43,817
181,137,690
132,973
45,130
(450,141)
(585,153)
Total
207,815,005
180,730,640
Current
Noncurrent
47,924,491
159,890,514
38,575,033
142,155,607
Unrestricted funds
PIS/PASEP funds
Merchant Marine Fund (FMM) funds
(b) Changes in allowance for impairment losses:
Write-offs against the allowance
2011
2010
585,153
358,125
(135,012)
-
227,028
-
450,141
585,153
71
9.
LOAN INVESTMENTS
(a) Broken down as follows
At December 31,
2011
At December 31,
2010
209,860,224
1,946,071
9,063,913
174,902,331
2,792,720
6,732,455
(1,449,270)
(1,240,113)
Total
219,420,938
183,187,393
Current
Noncurrent
24,638,292
194,782,646
21,727,198
161.460.195
Unrestricted funds
PIS/PASEP funds
Merchant Marine Fund (FMM) funds
2011
2010
1,240,113
1,314,051
717,042
(507,885)
(12,191)
(61,747)
1,449,270
1,240,113
10. OTHER RECEIVABLES
At December 31,
2011
At December 31,
2010
1,057,467
1,184,067
1,883,514
3,222,436
7,830,901
1,042,003
2,708,719
1,276,778
1,909,393
7,172,194
3,547,589
1,026,606
Total
16,220,388
17,641,279
Current
Noncurrent
3,841,384
12,379,004
3,172,248
14,469,031
Receivables
Term sale of securities
Other
72
10.1 Term Sale of Securities And Receivables (Net)
(a) Breakdown of transactions
At December 31,
2011
At December 31,
2010
1,062,914
(5,447)
2,728,073
(19,354)
1,057,467
2,708,719
1,276,882
(92,815)
1,279,922
(3,144)
1,184,067
1,276,778
Total
2,241,534
3,985,497
Current
Noncurrent
317,110
1,924,424
439,305
3,546,192
Receivables
(i)
Receivables
2011
2010
19,354
13,964
(13,907)
5,390
5,447
19,354
(ii)
2011
2010
3,144
11,580
91,728
(2,057)
(7,815)
(621)
92,815
3,144
73
10.2 Dividends and interest on capital receivable
Of the balance of R$1,883,514 thousand (R$1,909,393 as at December 31, 2010),
R$1,321,410 thousand (R$775,772 thousand as at December 31, 2010), net of taxes
and adjusted based on the SELIC rate, refer to dividends receivable from Centrais
Elétricas Brasileiras - Eletrobrás by BNDESPAR. In accordance with the Material
Fact Notice disclosed on January 22, 2010, Eletrobrás reported to the market that the
Board of Directors approved the settlement of the special reserve balance related to
undistributed mandatory dividends arising from net income between 1979 and 1998, in
the total amount of R$10,284,915 thousand, whose payments are scheduled to be
made in four annual installments from June 30, 2010 to June 30, 2013. BNDESPAR
was entitled to receive the gross amount of R$2,171,231 thousand. Through December
31, 2011, R$849,821 thousand was paid and the outstanding balance amounted to
R$1,321,410 thousand.
10.3 Receivables - Eletrobrás
As at December 31, 2011, the Federal Government receivables from Eletrobrás,
assigned to BNDES, amounted to R$3,222,436 thousand (R$7,172,194 thousand as at
December 31, 2010). These receivables refer to the portion of dividends recognized in
a Special Reserve (R$1,611,218 thousand, current, and R$1,611,218 thousand,
noncurrent).
10.4 Other
Sundry debtors
Escrow deposits
Tax incentives
Payments to be refunded
Total
Current
Noncurrent
At December 31,
2011
At December 31,
2010
96,732
573,986
351,756
19,529
73,918
471,148
462,695
18,845
1,042,003
1,026,606
690,247
351,756
563,911
462,695
11. INVESTMENTS IN ASSOCIATES AND OTHER INVESTMENTS
11.1 Breakdown of investments in associates and other investments:
At December 31,
2011
At December 31,
2010
Other investments
19,332,194
42,197
13,641,374
43,328
Total
19,374,391
13,684,702
74
11.2 Investments in associates
Associates measured by the equity method of accounting are part of BNDESPAR’s equity investments portfolio. The portfolio of
investments in associates comprises companies from different industries and has been built up as a result of long-term financial support
transactions of the BNDES Group.
Investees
Brasiliana (3)
(4)
COPEL (3)
Fibria
JBS (5)
Rio Polímeros
(2)
Telemar Part. (2)
Sub-total
Other companies
Total
Share of
profits from
investment in
associates
At December
31, 2011
Valuation
adjustments
to equity Assets
Share of
profits from
investment in
associates
At December 31,
2010
Valuation
adjustments
to equity Assets
Reporting
date (1)
% interest
in total
equity
31.10.2011
53.85
760,816
-
325,205
2,391,431
320,733
-
-
1,646,789
31.10.2011
31.10.2011
31.10.2011
23.96
30.45
31.41
311,033
82,688
99,219
(196,182)
355,272
1
(1,017)
2,840,937
4,705,596
7,463,127
207,331
109,389
22,628
(81,266)
205,351
291
2,275,172
4,703,324
4,083,577
-
-
-
-
(231,412)
-
-
-
-
-
-
-
(68,782)
-
39
-
1,253,756
(196,182)
679,460
17,401,091
359,887
(81,266)
205,681
12,708,862
(40,520)
394
7,000
1,931,103
79,462
(152)
-
932,512
1,213,236
(195,788)
686,460
19,332,194
439,349
(81,418)
205,681
13,641,374
Cumulative
translation
differences
Investment
75
Cumulative
translation
differences
Investment
(1)
(2)
(3)
(4)
(5)
The reporting date indicates the investee’s shareholders' equity date used in the last calculation of equity in investees. This date differ from
the reporting date of BNDES financial statements (December 31, 2011) because BNDES and its associates use different year-end calendar.
The effects of material events that occurred after the reporting date have been recognized.
In 2010 BNDESPAR sold all shares of Rio Polímeros and a portion of its shares of Telemar Participações; therefore, it lost significant
influence over the latter. The remaining investment in Telemar Participações was classified as “Securities available for sale”.
As at December 31, 2010, investments were measured based on the balance sheet of associates as at October 31, 2010 and, through that
date, public utility companies did not fully adopt the CPC, in particular IFRIC 12 - Concession Arrangements. Beginning December 31,
2010, the aforementioned companies restated their 2010 interim financial statements upon the full adoption of the International Financial
Reporting Standards (IFRS), whose impacts on BNDESPAR were the increase in shareholders' equity and increase in net income (loss) by
approximately R$754,640 thousand and R$22,866 thousand, respectively. These effects were not considered as material in respect of
BNDESPAR’s shareholders’ equity. .
Regardless of the fact that BNDESPAR holds 53.85% interest in Brasiliana’s capital, it holds less than 50% of its voting capital and does
not govern Brasiliana’s operating and financial policies; therefore, it does not hold the controlling stake.
In July 2011 BNDESPAR converted debentures issued by JBS held by it into 493,968 thousand shares of this associate, equivalent to
R$3,477,568 thousand, thus increasing its stake from 17.60% to 31.35%. The increase in the number of shares held in treasury by the
associate at the end of 2011 raised the percentage interest, used to calculate equity in subsidiaries, to 31.41%.
(*) BNDES has no significant contingent liabilities relating to investments in associates, whose likelihood of loss has been assessed as
possible
The effects from changes in interest in associates were recorded in profit or loss.
The balance of investments in associates includes goodwill amounting to R$1,165,310 thousand
as at December 31, 2011 (R$1,044,185 thousand as at December 31, 2010) and an allowance for
impairment losses amounting to R$88,791 thousand as at December 31, 2011 (R$88,915
thousand as at December 31, 2010).
Investments in associates have been tested for impairment as at December 31, 2011, in
accordance with IAS 36 - Impairment of Assets. In the year ended December 31, 2011, the
Company recognized R$124 thousand as revenue from reversal of the allowance for impairment
losses on investments in associates, net of expenses on the recognition of allowance of R$34,501
thousand. In the year ended December 31, 2010, the Company recognized an expense of
R$27,765 thousand. The recoverable value of an asset is the higher of its fair value and value in
use. These amounts are included in line item “reversal (recognition) of allowance for investment
losses” in the income statement.
In accordance with IAS 28, in the year ended December 31, 2011, BNDESPAR no longer
recognized losses on investments in associates with shareholders’ deficit, in the amount of
R$20,867 thousand (R$7,045 thousand in the year ended December 31, 2010). Unrecognized
accumulated losses amounted to R$117,043 thousand as at December 31, 2011 (R$96,176
thousand as at December 31, 2010). No reserve was recognized since BNDESPAR has no legal
or constructive obligation to settle the associates’ potential liabilities.
76
11.3 Fair value of investments in associates that are quoted at stock exchange
The following table shows the fair value of investments that are quoted at stock
exchange.
Associate
COPEL
COPEL
Fibria
Fibria*
JBS
Others
Share
1,249,306
1,060,997
1,263,218
695,574
5,660,903
562,532
1,453,439
1,124,291
2,412,176
1,288,614
3,134,023
511,929
10,492,531
9,924,472
ON
PNB
ON
ON RM
ON
Total
*
Portion of Fíbria shares that is linked to the put options held by Votorantim Industrial against BNDESPAR, which is
presented in liabilities, in line item ‘Derivative financial instruments’ (see Note 7).
11.4 Summary information of the main balances of associates
At December 31, 2011 (*)
At December 31, 2010 (*)
Assets
Liabilities
Equity
Revenue
Profit
90,791,890
82,677,516
32,959,261
34,804,920
57,832,629
47,872,596
25,850,989
15,652,146
2,570,683
3,051,221
* Dated as at October 31, adjusted to ensure consistency with the accounting policies adopted by the BNDES
11.5 Other investments
Tax incentive investments
Membership certificates
Works of art
Interest in projects - Vale: Project 118
77
At December 31,
2011
At December 31,
2010
295
296
41,606
1,131
295
296
41,606
42,197
43,328
12 DEPOSITS AND REPURCHASE AGREEMENTS
12.1 Deposits
At December 31,
2011
At December 31,
2010
Special deposits - FAT
Other deposits
21,046,590
269
21,573,637
269
Total
21,046,859
21,573,906
Current
Noncurrent
269
21,046,590
269
21,573,637
12.2 Workers’ Assistance Fund (FAT) Special Deposits
The FAT special deposits represent additional transfers to the FAT Constitutional
fund. Special deposits are used to finance specific programs and under special
conditions, subject to different interest rate, repayment and interest payment to the
FAT rules
The FAT special deposits yield interest equal to the Government’s benchmark longterm interest rate (TJLP) from the date loans are granted to the end borrowers.
Undrawn funds, thus available for investment, yield interest equivalent to the yield of
the Brazilian National Treasury bills, which is currently the SELIC rate (set by Central
Bank’s Special Settlement and Custody System). The SELIC is a computerized system
for the custody of securities issued by the Brazilian National Treasury and the BACEN
and the registration and settlement of transactions involving such securities.
The outstanding balance of FAT special deposits is broken down as follows:
At December 31,
2011
At December 31,
2010
Pró-emprego (government employment incentive program)
FAT Exportar/Fomentar (tax incentive)
Pronaf
Infrastructure
Giro Rural (rural financing)
172,132
5,823,440
1,214,919
13,598,983
237,116
208,262
5,833,922
726,258
14,474,254
330,941
Total
21,046,590
21,573,637
Current
Noncurrent
21,046,590
21,573,637
78
Changes in the balance for the year ended at December 31, 2011 and 2010 are as
follows:
Balance at January 1
2011
21,573,637
2010
22,970,880
Inflow of funds
Interest on Special Deposits
Amortization of Special Deposits
Interest payments
1,705,000
1,250,933
(2,223,104)
(1,259,876)
850,000
1,340,313
(2,232,024)
(1,355,532)
Balance at December 31
21,046,590
21,573,637
12.3 Repurchase agreements
In 2011 BNDES purchased securities under repurchase commitments backed by
federal government securities, totaling a balance of R$7,808,271 as at December
31, 2011.
Securities
Maturities
National Treasury B Notes (NTN-B)
01/02/2012
Current
Noncurrent
Total
As at December 31
2011
2010
7,808,271
-
7,808,271
7,808,271
-
13 DEBENTURES ISSUED
The BNDES Group issued private debentures, through the BNDES, and public debentures,
through BNDESPAR, whose balance is broken down as follows:
Private issues
Public issues
Total
Current
Noncurrent
79
At December 31,
2011
At December 31,
2010
6,277,090
5,778,197
6,727,156
5,999,766
12,055,287
12,726,922
1,558,310
10,496,977
854,407
11,872,515
13.1 Private issue - BNDES
The BNDES issued 700,000,000 simple, registered debentures, nonconvertible into
shares, in five series, with no secured or floating guarantee, no preemptive rights,
however, with collateral.
The unit par value of debentures is R$10 thousand reais as of the issuance date,
December 23, 2008. The placement was private, through exclusive subscription by
Severance Pay Fund (FGTS) Investment Fund FI-FGTS, represented by its manager,
Caixa Econômica Federal - CEF.
Debentures are adjusted on a monthly basis on the 15th of each month based on the
Reference Rate (TR) and pay 6% per year on a monthly basis. Maturity is on
October 15, 2029, and principal is being amortized monthly since January 15, 2009,
through October 15, 2029
The adjusted amount of liabilities for debentures issued is as follows:
At December 31,
2011
At December 31,
2010
1st series
Adjusted principal (TR)
Accrued interest (6% p.a.)
1,341,513
3,577
1,437,700
3,834
2nd series
1,341,513
3,577
1,437,700
3,834
3rd series
1,341,513
3,577
1,437,700
3,834
4th series
1,341,513
3,577
1,437,700
3,834
5th series
894,344
2,386
958,464
2,556
Total
6,277,090
6,727,156
Current
Noncurrent
602,413
5,674,677
548,183
6,178,973
80
13.2 Public issue - BNDESPAR
In December 2006, BNDESPAR issued 600,000 simple, registered, nominal,
nonconvertible debentures in a single series, without guarantee or preference
(unsecured), with a unit par value of R$1,000.00 on issue date, totaling R$600,000.
This public distribution was held as part of the Issuer’s First Public Debenture
Distribution Program and filed with the Brazilian Securities and Exchange
Commission on December 19, 2006, under No. CVM/SRE/PRO/2006/0011.
Debentures were subscribed and paid in at the price of R$898.33 each, corresponding
to a unit par value of R$1,000.00, adjusted for a discount of 10.167%, determined in a
bookbuilding procedure.
The debentures’ unit par value is adjusted from the subscription date through the
payment date based on the Extended Consumer Price Index (IPCA), determined and
released by the IBGE (Brazilian Institute of Geography and Statistics), and the
adjustment amount is automatically added to the par value, according to the formulas
set out in the debenture indenture. These debentures pay interest of 6% per year
calculated on the debenture’s adjusted unit par value, payable at the end of each
capitalization period. The first and second interest payments were made on January 15,
2009, January 15, 2010 and January 17, 2011 respectively, and the other payments
will be made on January 15, 2012, as detailed in the debenture indenture. Debentures
will be repaid in a single installment, on the maturity date, January 15, 2012
In the second distribution of the First Program, which took place on July 1, 2007,
BNDESPAR issued 1,350,000 simple, registered, book-entry debentures, in two
series, out of which 550,000 debentures in the First Series and 800,000 debentures in
the Second Series, without guarantee or preference (unsecured), at the unit par value
of R$1,000.00, on issue date, totaling R$1,350,000. The debentures were subscribed
and paid-in at their unit face value.
The fourth public offering of simple debentures issued by BNDESPAR was completed
in December 2009, already in the context of the Second Distribution Program, filed
with the CVM on July 29, 2008 under No. CVM/SER/PRO/2008/007. A total of
1,250,000 debentures were issued, of the same type and class of the previous issues, in
two series, of which 640,000 debentures in the First Series and 610,000 debentures in
the Second Series, with a unit face value of R$1,000.00 on issue date, totaling
R$1,250,000. The debentures were also subscribed and paid-in at their unit face value.
81
The unit face value of debentures in the First Series of the distributions carried out in
2007 and 2009 is not adjusted and is only subject to fixed interest, which is paid
together with the principal on maturity dates, as indicated in the table below. The
compensation for the debentures in the First Series issued in 2007, as well as
repayment, was fully settled on January 3, 2011.
The unit face value of Second Series debentures of the 2007 and 2009 issues are
adjusted using the IPCA fluctuation released by the IBGE, and the adjustment will be
automatically added to the par value, according to the formula set out in the indenture.
The unit face value of the Second Series debentures of the 2007 and 2009 issues, as
adjusted for inflation, will accrue a fixed-rate interest from the date of subscription and
payment or the previous Second Series Interest payment date, as the case may be, to
the date of actual repayment. The Second Series interest for both issues are determined
according to the formula set out in the indenture.
The first, the second and the third interest payments of the Second Series of the 2007
issue were made on August 17, 2009, August 16, 2010, and August 15, 2011,
respectively, and the other payments will be made on August 15, 2012, and on
maturity date, August 15, 2013, when it will be repaid in a bullet payment. Interest on
the Second Series of the 2009 issue will be paid annually, beginning January 15, 2012,
through January 15, 2015, when it the Second Series will be repaid in bullet payment.
In December 2010, BNDES conducted the fifth public offering of BNDESPAR
debentures, the first under the Third Distribution Program. Three series were issued, a
fixed rate series (First Series), a quarterly floating rate series (Second Series), and a
series indexed to the Extended Consumer Price Index (IPCA) (Third Series). The
first, second, and third series were approved by and registered with the CVM on
December
10,
2010
under
numbers
CVM/SRE/DEB/2010/033,
CVM/SRE/DEB/2010/034, and CVM/SRE/DEB/2010/035, respectively.
The offering was closed on December 17, 2010, with the distribution of
2,025,000 simples, registered, book-entry, nonconvertible, unsecured debentures, in
the total nominal amount of R$2,025,000. The distribution consisted of 500,000 First
Series debentures, 1,000,000 Second Series debentures, and 525,000 Third Series
debentures.
The unit par value of the debentures in the First and Second Series are not adjusted
and are subject to fixed-rate interest (First Series) and quarterly floating rate interest
(Second Series). The yield of both series, as well as amortization, will be paid in full at
the related maturities. The interest rates and maturities are indicated in the table below.
82
The Second Series will yield floating interest consisting of a fixed three-month rate
reset on a quarterly basis using the surcharge of 0.30% per year to be added to the
interest rate of Interbank deposits (DI) futures (traded on the BM&FBOVESPA)
applicable to each quarterly capitalization period.
The unit face value of the Third Series debentures since the last issue will be adjusted
using the IPCA fluctuation, and the adjustment will be automatically added to the face
value using the formula set out in the Indenture. This unit face value adjusted for
inflation is subject to fixed-rate interest from the date of subscription and payment or
the previous date of Third Series Interest payment, as applicable, to the date of actual
repayment. The Third Series interest will be determined using the formula set out in
the Indenture.
Interest payments for the Third Series of the 2010 issue will be made annually,
beginning January 15, 2013, until January 15, 2017, when it will be repaid in a bullet
payment.
The adjusted amount of the obligation for the issue of debentures, the maturity dates
and the interest for each series are shown below:
Maturity date
01.15.2012
First distribution - First Program
Adjusted principal (IPCA)
Discount
Accumulated amortization of discount (1)
Subtotal
Second distribution - First Program
1st series
Principal
Accrued interest (11.2% p.a.)
2nd series
Subtotal
First distribution - Second Program
1ª série
Principal
Accrued interest (12,74% p.a)
2ª série
Accrued interest (7,078% a.a)
Subtotal
First distribution - Third Program
1st series
Principal
2nd series
Principal
Accrued interest (3M DI Futures + 0.30% p.a.)
3rd series
Subtotal
782,234
44,828
(61,002)
60,018
826,078
734,784
42,109
(61,002)
48,211
764,102
-
550,000
240,141
1,016,421
25,795
1,042,216
954,766
23,975
1,768,882
640,000
176,562
640,000
84,288
699,321
104,024
1,619,907
656,901
47,833
1,429,022
500,000
66,246
500,000
3,384
1,000,000
125,334
1,000,000
5,571
561,320
37,096
2,289,996
527,269
1,536
2,037,760
5,778,197
955,897
4,822,300
5,999,766
306,224
5,693,542
08.15.2013
01.15.2015
01.15.2017
Total
Current
Noncurrent
(¹) Discount will be amortized on a straight-line basis from December 2007 to January 2012.
83
14. BORROWINGS AND ONLENDINGS
At December 31,
2011
At December 31,
2010
13,860,569
5,349,678
8,510,891
12,729,464
5,474,293
7,255,171
Onlendings
Domestic
Brazilian National Treasury
Merchant Marine Fund (FMM)
Other
Foreign
320,388,044
259,457,201
296,998,647
9,419,288
32,277
13,937,832
239,823,527
7,076,244
34,479
12,522,951
Total
334,248,613
272,186,665
Current
Noncurrent
4,338,547
329,910,066
6,693,525
265,493,140
Borrowings
Domestic
Foreign
(a)
Domestic borrowings
The BNDES acquired federal government bonds from the Severance Pay Fund
(FGTS), by entering into a financing agreement to pay 2006 and 2007 dividends and
interest on capital in 2008. This loan is adjusted for inflation using the TR (a managed
prime rate) plus interest of 4.8628% per year, amortizable on a monthly basis, in 18
years, from January 1, 2009 to December 1, 2026.
(b)
Foreign borrowings
(i) Warrants
Issue amount
USD 1 billion
USD 1 billion
USD 1 billion
USD 300 million
CHF 200 million
EUR 750 million
Maturity
Funding rates
Paying agent
6/16/2018 (1)
6/10/2019
7/12/2020
12/12/2011
6.369%
6.500%
5.500%
9.625%
2.725%
Bank of New York
Bank of New York
Bank of New York
Bank of New York
Bank of TokyoMitsubishi UFJ
Bank of New York
12/15/2016
9/15/2017
4.125%
Accrued interest
Total
Current
Noncurrent
84
At December 31,
2011
At December 31,
2010
1,875,800
1,875,800
1,875,800
-
1,666,200
1,666,200
1,666,200
499,860
400,039
1,825,650
1,671,000
93,068
7,946,157
93,068
7,853,089
85,711
7,255,171
585,571
6,669,600
(ii) Syndicated loan
Issue amount
Maturity
Funding
rates
Paying agent
As at December
31, 2011
As at December
31, 2010
-
6-month
LIBOR
+ 70 bps
Bank of TokyoMitsubishi UFJ
562,740
-
1,994
564,734
1,994
562,740
-
USD300 million
Accrued interest
Total
Current
Noncurrent
(c)
Domestic onlendings
Brazilian National Treasury
In 2009, as prescribed by Law 11948/2009, a financing agreement was entered into
between BNDES and the Brazilian government, in the amount of R$100 billion. In
2010, as prescribed by Law 12249/2010 and Law 12397/2011, new loan agreements
were entered into between BNDES and the Federal Government, in the amounts of
R$80 billion and R$24.7 billion, respectively. In 2011, new financing agreements
were entered into between BNDES and the Federal Government, in the amount of
R$5.3 billion, as prescribed by Law 12397/2011, and in the amounts of R$30 billion
and R$25 billion, as prescribed by Law 12453/2011. A portion of the funds borrowed
in 2011 (R$10 billion) will only be released in 2012. The Federal Government issued
federal government bonds, as direct placement, on behalf of BNDES, to cover these
receivables.
Currency
Average
maturity (years)
TR + 6% p.a.
SELIC
IPCA + 6% p.a.
IGP-M + 10% p.a.
IGP-DI
USD + interest of 4.83 to 6.00%
USD + 6.77% p.a.
USD + 5.98% p.a.
US$ + 0,55%
USD + 0.8%
TJLP
TJLP + 2.5%
TJLP + 1.0%
Brazilian reais (R$)
Accrued interest
Total
15.22
6.01
6.01
3.98
17.88
17.46
17.46
27.48
28.50
36.38
27.65
27.65
Current
Noncurrent
85
At December 31,
2011
At December 31,
2010
1,336,591
2,884,850
2,289,085
1,520,386
11,109,433
16,105,261
8,599,724
2,438,540
215,264,194
7,544,919
26,619,347
1,642
1,284,675
296,998,647
1,407,536
2,584,528
2,018,574
2,364,266
1,440,025
10,991,081
14,305,676
7,638,799
2,166,060
160,009,917
7,368,687
26,367,132
1,642
1,159,604
239,823,527
1,872,204
295,126,443
4,116,754
235,706,773
Since January 1984, the BNDES has been the financial agent of the Merchant Marine
Fund (FMM), whose purpose is to provide financial support to renewing, expanding,
and overhauling the National Merchant Marine fleet. As at December 31, 2011, FMM
investments reached R$10,298,808 thousand (R$7,676,892 thousand as at December
31, 2010), of which R$9,419,288 thousand (R$7,076,244 thousand as at December 31,
2010) involves the BNDES risk.
Pursuant to BACEN guidelines, transactions entailing a risk for the BNDES are
classified in its assets, in line items ‘Lending operations’ and ‘Interbank onlendings’.
(d)
Foreign onlendings - multilateral institutions
BNDES’ foreign sources of funds include both borrowings using traditional market
instruments–bank loans and issue of Eurobonds—as funding from multilateral credit
institutions and governmental agencies. While market instruments do not require
collateral from the Federal Government, borrowings from multilateral credit
institutions - e.g. World Bank, Interamerican Development Bank (BID) and Nordic
Investment Bank - NIB, are collateralized by the Brazilian Government, either by
operation of their articles of incorporation or other internal regulations. The agreement
entered into on October 5, 2011 with the European Investment Bank (EIB) (whose
funds were not yet released, where a formal collateral by the Federal Government was
waived) is an exception. Borrowings from governmental entities, such as the Japan
Bank for International Corporation (JBIC) (international branch of the Japan Finance
Corporation (JFC)), the Kreditanstelt für Wiederaufban (KfW), and the China
Development Bank (CDB), may or may not be formally guaranteed by the Federal
Government.
At December 31,
2011
At December 31,
2010
Total
2,369,347
9,519,685
321,566
383,122
1,289,612
54,500
13,937,832
1,866,117
8,815,966
311,817
227,475
1,249,650
51,926
12,522,951
Current
Noncurrent
1,106,886
12,830,946
836,288
11,686,663
Institution
JBIC
BID
NIB
KfW
CDB
Accrued interest
Currency
Average
maturity (years)
YEN/USD
Various
USD
Various
USD
7.43
14.85
7.91
10.13
11.13
86
Foreign onlending agreements are subject to annual interest rates ranging from 0.94%
to 10.35% per year as at December 31, 2011 (0.91% and 10.35% per year as at
December 31, 2010). Concentration by funding rate range is as follows:
Funding rates
Up to 3%
3.1% to 5%
5.1% to 7%
Accrued interest
Total
At December 31,
2011
At December 31,
2010
11,249,251
382,549
2,251,532
54,500
13,937,832
10,004,594
225,903
2,240,528
51,926
12,522,951
15. HYBRID INSTRUMENT ISSUED
Pursuant to Law 9491/97, regulated by Decree 2201/97 and the Share Transfer and Debt
Assumption Agreement and Other Covenants, shares of Vale S.A. owned by the Federal
Government (94,953,982 registered common shares and 4,372,154 registered preferred
shares) were transferred to the BNDES. A portion of these shares was sold during the
privatization of Vale S.A. in the auctions held in May 1997.
In exchange for the funds received, the BNDES agreed to, alternatively or jointly, at the
Ministry of Finance’s discretion:
a)
Assume both acknowledged and novated debts of the Federal Government involving the
Salary Variation Compensation Fund (FCVS); and
b) Transfer to the Federal Government its own BNDESPAR debentures with the same
profile (dates of payment and financial conditions) as those of the debts of the Federal
Government to the FCVS.
On December 29, 2000, a debt assumption was formalized in the amount of R$2,593,470
(originally received, adjusted using TR fluctuation, plus interest of 6.17% per year),
corresponding to 1,608,084 CVSA970101 securities, payable under the following
conditions:
Grace period for interest payment:
4 years and 1 month beginning December 1, 2000, and first payment on
January 1, 2005
Grace period for principal repayment:
8 years and 1 month beginning December 1, 2000, and first payment on
January 1, 2009
Remaining term:
27 years beginning December 1, 2000 and last payment of principal and
charges on January 1, 2027
Interest rate:
TR (managed prime rate) + 6.17% per year
87
In March 2002, the BNDES sold, through a public offering on the domestic and foreign
markets, 39,389,193 common shares of Vale S.A. for R$2,218,339 , settled in April 2002.
Such amount was also the subject matter of a debt assumption by the Federal Government
regarding the Salary Variation Compensation Fund (FCVS), adjusted for inflation using the
TR plus interest of 6.17% per year. In December 2005, the remaining shares transferred by
the Federal Government were sold in an auction together with noncontrolling interests, for
R$1,516, and the settlement was completed in January 2006.
In August 2006, the BNDES and the Federal Government entered into a Debt Novation and
Acknowledgment Agreement in the amount of R$5,293,537, corresponding to the portion of
the agreements above intended to change the BNDES’ debt profile and increase its
Regulatory Capital, adjusting its terms and conditions to those of a hybrid instrument,
pursuant to National Monetary Council Resolution 2837, of May 30, 2001, in conformity
with Law 11371, of November 28, 2006
As at December 31, 2011, the balances of these agreements were as follows:
•
Hybrid Equity/Debt Instrument: R$12,430,382 thousand (R$11,817,801 thousand as at
December 31, 2010);
•
Debt Assumption Agreement: R$1,444,916 thousand (R$1,416,215 thousand as at
December 31, 2010).
16 SUBORDINATED DEBT
At December 31,
2011
At December 31,
2010
25,924,638
99,293,728
18,888,422
91,800,886
Total
125,218,366
110,689,308
Current
Noncurrent
3,440,122
121,778,244
2,985,471
107,703,837
FAT Constitutional fund
Debt eligible for capitalization
Debt not eligible for capitalization
Funds from the FAT, consisting basically of PIS and PASEP (taxes on revenue) tax
collection revenues and interest income from their investment, are used to fund
unemployment insurance and salary allowances, as well as economic development programs
through the BNDES, by at least 40% of those tax revenues.
88
The FAT succeeded the PIS-PASEP Fund and changed significantly the purpose of said
taxes. While the PIS-PASEP Fund was created to be part of the individual net worth of
workers, who held fund units, the FAT is used as a tool against unemployment on two
fronts. The first, of an emergency nature, supports the unemployed by granting a temporary
compensation, and a training and outplacement program. The second front is preventive,
fostering job creation through economic development projects.
FAT funds transferred to the BNDES are classified into two categories: FAT Constitutional
fund (described below) and FAT - special deposits (see Note 12.1).
FAT Constitutional fund
The FAT Constitutional fund comprises transfers of funds up to the limit of 40% of the PIS
and PASEP revenue and yields interest equivalent to the long-term interest rate (TJLP) or
indexed to the US dollar (FAT - TJLP) and international market interest rates. The
equivalent amount in Brazilian reais of the debit balance of financing granted using the latter
portion of funds, which forms the FAT - Foreign Exchange program, can be determined
based on two currencies: i) the US dollar, yielding the London Interbank Offered Rate
(LIBOR) or the US Treasury Bonds rate; ii) the euro, yielding the Europe Interbank Offered
Rate (EURIBOR) or any interest rate representing the average yield of bonds from any of
the euro-area countries, the euro area yield curve.
Semiannually, in January and July, the BNDES transfers to the FAT the amounts
corresponding to the yield of funds indexed to the TJLP and the full yield of FAT-Foreign
Exchange, where the TJLP fluctuation is limited to 6% per year. The difference between the
TJLP and the annual 6% threshold is capitalized with the debit balance.
The funds of Constitutional FAT are only repaid if there is a deficit to fund unemployment
insurance and the salary allowance, in the amount and circumstances set forth by Law.
The debit balance of FAT Constitutional fund is broken down as follows:
FAT - TJLP - Principal
FAT - Foreign Exchange - US$ (¹)
Accrued interest
Total
(¹)
At December 31,
2011
At December 31,
2010
113,524,124
8,254,090
3,440,122
125,218,366
98,548,534
9,155,303
2,985,471
110,689,308
Up to 50% of total regular transfers; used to finance production/sale of products with acknowledged
international demand.
89
BACEN Resolution 344, of February 28, 2007, which revokes the BACEN Resolution 2837,
of May 30, 2001, maintained the classification of funds transferred by the FAT as
subordinated debt. This classification is possible since the BNDES’s debt related to these
funds is not subject to contractually defined repayment terms as they must only be required
when the Ministry of Labor lacks sufficient funds to pay unemployment insurance. In this
case, about 20% of the debit balance would be repaid in the first two years, 10% in the
following three years, and 5% from the sixth year, when required, to cover unemployment
insurance expenses.
In addition, pursuant to Article 14, III, of BACEN Resolution 3444, Subordinated Debt Eligible for Capitalization is limited to 50% of the Tier 1 Capital, equivalent to
R$51,849,278 as at December 31, 2011 (R$41,769,622 as at December 31, 2010).
Changes in the fund’s balance for the year ended December 31, 2011 and 2010 are as
follows:
FAT Constitucional
Foreign
TJLP
exchange
92,141,558
7,384,498
Total
99,526,056
Inflow of funds
Exchange differences
Accrued interest
Interest payments
Transfer to FAT foreign exchange
Return on FAT foreign exchange
11,380,461
5,541,615
(5,310,295)
(5,620,102)
3,265,607
(480,058)
257,560
(226,031)
5,620,102
(3,265,607)
11,380,461
(480,058)
5,799,175
(5,536,326)
-
101,398,844
9,290,464
110,689,308
13,729,354
6,383,088
(5,866,642)
(6,147,476)
7,393,742
345,054
185,939
(247,735)
6,147,476
(7,393,742)
13,729,354
345,054
6,569,027
(6,114,377)
-
116,890,910
8,327,456
125,218,366
Inflow of funds
Exchange differences
Accrued interest
Interest payments
Transfer to FAT foreign exchange
Return on FAT foreign exchange
90
17. FINANCIAL AND DEVELOPMENT FUNDS
At December 31,
2011
At December 31,
2010
PIS/PASEP fund
FPS fund
Other funds and programs
31,085,709
596,507
502,260
503,264
30,435,222
392,385
219,232
359,601
Total
32,687,740
31,406,440
Current
Noncurrent
3,131,295
29,556,445
2,429,549
28,976,891
Beginning 1974, part of the PIS and PASEP tax collection revenues, which are allocated to
the PIS-PASEP Fund, are transferred to the BNDES. Under relevant legislation, these funds
are used in economic development programs, including in the capital market. On average, in
the period 1974-1988, 38% of these taxes revenues was transferred, which is equivalent to
approximately R$700,000 per year.
The PIS-PASEP Fund bears the risk of transactions conducted through December 31, 1982.
The BNDES receives an annual management fee of 0.5% per year on 1.57% of the total
portfolio as at December 31, 2011, paid by the Fund. The Bank bears the risks of
transactions conducted after that date (98.43% of the portfolio) and is authorized to charge
borrowers a management fee of up to 0.5% per year, embedded in the interest rate, and a
risk fee of up to 1.5% per year.
Changes in the balance of the PIS-PASEP funds managed by the BNDES are as follows:
BNDES risk
30,021,028
PIS-PASEP
risk
629,490
Total
30,650,518
Gain (loss)
Transfers from FPS
Returns
1,841,594
12,600
(1,440,000)
12,455
-
1,854,049
12,600
(1,440,000)
30,435,222
641,945
31,077,167
Gain (loss)
Returns
2,090,487
(1,440,000)
(142,261)
-
1,948,226
(1,440,000)
31,085,709
499,684
31,585,393
91
18. INCOME TAX AND SOCIAL CONTRIBUTION
18.1. Reconciliation of income tax and social contribution on net income and tax basis:
2011
Profit before income tax and social contribution
2010
11,432,165
13,025,858
Total income tax and social contribution expenses at tax rates 25% and 15%
4,572,866
5,210,343
Effect of additions and deductions on tax bases:
Receivables written off as losses
Interest on capital of associates
Exchange for securities
Dividendos de investimentos avaliados
Interest on capital paid to the Federal Government - controlling shareholder
Impairment losses on investments in associates
Provision for labor and civil contingencies
Accrued employee profit sharing
Actuarial liability - FAMS
Goodwill amortization, net of realization
Mark-to-market of swaps
FAPES - technical reserves
Investment grants - tax incentives
Financial support not reimbursable
Share of subsidiaries’ profits subject to 9% social contribution rate
Deferred taxes on the sale of noncurrent assets
Mark-to-market - financial instruments
Derivative instruments - Options
Realization of negative goodwill amortization
Effect of Transition Tax Regime (RTT)
Other additions (deductions), net
Charges before reversals
Offset of tax loss carryforwards
Reversal of provision for income tax and social contribution
(9,666)
51,724
(411,187)
33,384
(37,245)
(398,192)
(854,152)
63,956
317
2,979
46,349
17,345
19,823
(33,454)
(331,624)
18,778
(49,778)
234,170
4,595
(97,077)
70,071
2,913,982
(8,889)
(3,968)
39,567
66,834
(148,750)
16,844
287,942
(215,969)
(603,986)
34,448
(3,941)
(27,312)
857
27,249
6,211
19,368
76,715
(296,955)
(59,412)
(72,189)
39,948
(174,029)
(39,897)
4,162,983
5,538
-
2,901,125
4,168,521
2,506,682
394,443
4,007,074
161,447
25.38%
32.00%
Income tax and social contribution for the year
Of which:
Average effective rate (%)
18.2. Current taxes - income tax and social contribution
Current income tax and social contribution assets are broken down as follows:
At December 31,
2011
At December 31,
2010
IRRF on fixed income
IRRF on variable income
IRRF - interest on capital
Prepayments - Audiovisual
Prepayments - income tax and social contribution
Other
111,590
1,650
308,653
1,965
1,273
120,935
112
137,017
12,732
149,956
1,273
Total
425,131
422,025
Corrente
Não corrente
425,131
-
422,025
-
92
The balance of income tax and social contribution is broken down as follows:
At December 31,
2011
At December 31,
2010
1,638,005
874,605
2,512,610
2,618,697
1,382,839
4,001,536
(906,938)
(401,063)
(1,308,001)
(2,238,787)
(1,210,789)
(3,449,576)
Total
1,204,609
551,960
Current
Noncurrent
1,204,609
-
551,960
-
Income tax and social contribution:
Provision
Income tax
Social contribution
Subtotal
Prepayments
Income tax
Social contribution
Subtotal
As permitted by Articles 27-35 of Law 8891/95 and other relevant legislation, the
BNDES calculates annual income tax and social contribution based on actual income,
which requires the monthly payment of these taxes on an estimates basis, whenever no
payment suspension/reduction applies.
The BNDES recognized provisions for the payment of social contribution at the rate of
15% and income tax at the rate of 15%, plus a surtax of 10%. The provision for social
contribution of BNDESPAR is recognized at the rate of 9%.
18.3. Deferred income
The balances of deferred income tax and social contribution assets and liabilities are
broken down as follows:
Deferred tax income tax and social contribution assets
recognized in income statement
Receivables written off as losses
Allowance for impairment losses on investments
Accrued employee profit sharing
Planned employee termination program
Goodwill amortization, net of realization
Reserve for depreciation of assets
Provision for medical expenses - FAMS
Tax loss
Social contribution tax loss carryforwards
Derivative instruments - Option
Other
Subtotal
510,460
255,250
70,830
21,458
45,881
27,592
13,921
2,608
36,773
32,755
63,515
1,374,139
414,207
231,612
231,278
35,022
60,951
36,872
58,044
2,417
33,491
2,345
1,958
164,413
56,104
1,328,714
Deferred tax income tax and social contribution assets
recognized in equity - Available-for-sale financial assets
Income tax and social contribution
PIS and COFINS
Subtotal
1,637,829
180,053
1,817,882
80,299
9,335
89,634
Total tax credits
3,192,021
1,418,348
93
Deferred tax income tax and social contribution liabilities
Amortization of discount
Adjustment of securities at fair value
Gain on sale of long-lived asset
Mark-to-market - financial instruments
Bargain purchase gain
Derivative instruments - Options
Other
Subtotal
(7,621)
(1,101)
(48,694)
(126,139)
(398,744)
(782,244)
(194,736)
(36,650)
(1,595,929)
(8,054)
(41,771)
(52,164)
(155,426)
(787,271)
(92,224)
(19,151)
(1,156,061)
Deferred tax income tax and social contribution liabilities
recognized in equity - Available-for-sale financial assets
Income tax and social contribution (1)
PIS and COFINS
Subtotal
(9,083,791)
(38,553)
(9,122,344)
(15,300,460)
(17,164)
(15,317,624)
(10,718,273)
(16,473,685)
Total deferred taxes
(1)
Refers to income tax and social contribution on adjustment to fair value of financial assets (equity instruments), classified
as available-for-sale.
Movement in the deferred income tax and social contribution for the year is as
follows:
1,328,714
1,519,799
45,425
(191,085)
1,374,139
1,328,714
(1,156,061)
(1,185,699)
(439,868)
29,638
(1,595,929)
(1,156,061)
Recognition/(realization)
94
Changes in deferred taxes impacting shareholders’ equity are as follows:
(15,227,990)
(17,952,216)
7,923,528
2,724,226
(7,304,462)
(15,227,990)
Deferred income tax and social contribution recognized in
equity, net
The estimated realization and settlements of amounts recognized as deferred income
tax and social contribution, assets and liabilities, are as follows:
1,374,139
369,069
58,835
105,003
389,416
368,569
83,247
1,328,714
491,817
84,242
92,386
264,105
269,974
126,190
1,817,882
1,728,894
88,988
89,634
89,634
-
(1,595,929)
(48,835)
(288)
(1,546,806)
(1,156,061)
(41,771)
(1,114,290)
(9,122,344)
(45,202)
(370,186)
(8,706,956)
(15,317,624)
(16,418)
(164,809)
(15,136,397)
Within 1 year
Within 2 years
Within 3 years
Within 4 years
Within 5 years
Over 5 years
recognized in equity
Within 2 years
Within 3 years
Within 2 years
Within 3 years
Over 5 years
recognized in equity
Within 1 year
Within 2 years
Over 5 years
The tax rates currently set to determine these deferred taxes are 25% for income tax
and 15% (BNDESPAR - 9%) for social contribution.
95
The amount of unrecognized Deferred income tax and social contribution assets as at
December 31, 2011 totals R$1,368,261 (R$1,259,371 thousand as at December 31,
2010) . These amounts refer basically to part of the allowance for impairment losses,
part of the provision for civil and labor contingencies, the allowance for impairment
losses on investments in associates, credits arising from tax incentives - FINOR
(applicable only to social contribution), and the provision for medical expenses FAMS. After the enactment of BACEN Resolution 3059/02, tax credits could only be
recognized on the portion realizable within up to five (5) year, a timeframe that was
changed to ten (10) years by BACEN Resolution 3355/06. The BNDES, however, has
budgets and expects to generate taxable income for the foreseeable future, and does
not expect to utilize assets/liabilities after the five-year period.
Under Article 5 of Resolution 3059/02, the assets corresponding to the portion of tax
credits must be derecognized whenever the amounts effectively realized in two
consecutive periods are less than 50% of the amounts estimated for the same period in
a technical study prepared by the BNDES. The provisions of this article do not apply
to tax credits claimed before the date on which such Resolution became effective. At
December 31, 2011, no derecognition of such nature had been made. The tax credits
claimed after this Resolution became effective totaled R$1,184,993.
19. PENSION OBLIGATIONS
The obligations recognized in balance sheet and the income statement related to the
supplementary pension and medical care plans are as follows:
At December 31,
2011
At December 31,
2010
735,642
904,800
702,450
777,818
1,640,442
1,480,268
Current:
Supplementary pension plan
Medical care plan
33,484
17,951
28,875
16,308
Total
51,435
45,183
702,158
886,849
673,575
761,510
1,589,007
1,435,085
Obligations recognized in balance sheet:
Medical care plan
Total
Noncurrent:
Medical care plan
Total
2011
2010
Expenses recognized in income statement (‘personnel expenses’):
Medical care plan
239,140
163,855
76,845
118,471
Total
402,995
195,316
96
19.1. Supplementary pension plan
FAPES (Fundação de Assistência e Previdência Social do BNDES) is a close-end
pension fund. It is mainly engaged in supplementing the pension benefits paid by the
National Institute of Social Security (INSS), to employees of its sponsors: BNDES,
FINAME, BNDESPAR, and FAPES itself.
FAPES has a defined benefit plan and the capitalization system is used to size its
reserves.
The sponsors guarantee the transfer to FAPES, when necessary, of the funds intended
to cover possible deficits identified by an actual valuation, as set forth by the plan’s
bylaws and prevailing relevant legislation.
The actuarial commitment was valued by an independent actuary using the Projected
Unit Credit method (PUC). The adjustment of the amounts for specific dates was
based on interest equivalent to the interest rate stated in National Treasury Notes series B (NTN-B).
The table below shows the results of the actuarial valuation of the supplementary
pension plan:
Present value of actuarial obligations
Fair value of plan assets
Present value of unfunded obligations/(excess funding)
Unrecognized actuarial gains/(losses)
Actuarial (asset)/liability
Assets cap
Actuarial liability before applying IFRIC 14
Additional liability - under IFRIC 14
Net liabilities
At December 31,
2011
At December 31,
2010
8,127,695
(7,085,581)
1,042,114
(1,379,669)
(337,555)
337,555
735,642
7,160,601
(6,551,448)
609,153
(1,007,407)
(398,254)
398,254
702,450
735,642
702,450
Additional liability
The additional liability refers to debt acknowledgment contracts entered into with the
sponsors, through monthly payments, totaling thirteen installments per year, calculated
using the Price System and subject to annual interest equivalent to the six percent
actuarial rate plus the administrative costing rate and inflation adjustment, which
occurs at the same time and is prorated to the sponsors’ employees’ salary increases or
general changes. Therefore, the contracted debt is recognized as an additional liability
when the net liability is determined.
97
The balance of these debts is as follows:
At December 31,
2011
At December 31,
2010
2002 contracts (a)
2004 contracts (b)
581,116
154,526
544,125
158,325
Total
735,642
702,450
Current
Noncurrent
33,484
702,158
28,875
673,575
(a) Refers to the agreement between the BNDES Group entities and their employees
regarding the recognition of changes in working hours, pursuant to Law 10556, of
November 13, 2002, which resulted in a 16.67% increase in the participants’
contribution salary, directly impacting the benefit plan’s mathematical reserves.
For partial funding of the increase in such reserves in 2002, agreements providing
for the debt amortization in 390 installments were entered into. The payment
began in January 2003.
(b) Refers to conversion of the mathematical reserves to be recognized (in compliance
with BACEN recommendation), which were being amortized on a monthly basis
since November 1998 through extraordinary contributions, into debt
acknowledged by the sponsors, due in November 2018. The first installment was
paid in December 2004.
The changes in the present value of defined benefit obligations are as follows:
2011
2010
Balance at beginning of the year
7,160,601
5,933,161
Cost of current service
Interest cost
Unrecognized actuarial losses
Benefits paid
158,764
729,866
495,782
(417,318)
105,814
585,911
928,687
(392,972)
Balance at end of the year
8,127,695
7,160,601
98
Changes in the fair value of plan assets are as follows:
2011
2010
6,551,448
6,082,799
Expected return on plan assets
Unrecognized actuarial gains
Contributions received from sponsor
Contributions received from plan participants
Benefits paid
665,142
107,869
134,893
43,547
(417,318)
614,880
92,190
114,186
40,365
(392,972)
7,085,581
6,551,448
The BNDES Group expects to contribute approximately R$140,963 to the
supplementary pension plan next year.
The amounts recognized in the income statement (‘personnel expenses’) are follows:
2011
2010
Interest cost
Expected return on plan assets
Net actuarial gains/losses recognized (*)
Total
158,764
729,866
(665,142)
15,652
105,814
585,911
(614,880)
-
239,140
76,845
(*) No actuarial gains or losses were recorded in 2010 as the balance as at December 31, 2009 is within the corridor.
(*)
No actuarial gains or losses were recorded in the year ended December 31, 2010 as the balance as at December 31, 2009 is
within the corridor.
The expected return on assets was determined based on the same assumptions used for
the adjustment of liabilities, applying interest rate equivalent to the interest rate stated
in National Treasury Notes - series B (NTN-B). The main categories of plan assets, as
a percentage of total plan assets, are as follows:
Balanced funds
Shares
Real estate investments
Other
Total
At December
31, 2011
At December
31, 2010
79.7
5.0
8.2
7.1
80.2
5.6
5.7
8.5
100.0
100.0
The actual return on plan assets accumulate through December 31, 2011 was
R$557,273 (R$707,069 as at December 31, 2010).
99
The table below shows the estimated benefits payable for the next three years as at
December 31, 2011:
2011
2012
2013
437,542
457,232
477,807
19.2. Medical care plan
The BNDES and its subsidiaries sponsor the FAMS (Health Care and Welfare Fund),
created primarily to provide the plan’s participants and dependents with benefits that
supplement or are similar to those granted by the INSS. These benefits, which include
healthcare, hospital and dental care services under free or directed-choice systems,
have been provided to the employees since 1976, under the BNDES’ Executive Board
Resolution 933/98, also applicable to the BNDES’ subsidiaries.
FAMS beneficiaries are active and retired employees of the BNDES and its
subsidiaries and their dependents; in the event of death of the principal beneficiary, the
dependent is assured of his/her right to the benefits over a maximum of 24 months.
FAMS receives funds donated by the BNDES and its subsidiaries to attain its goals.
These funds are managed by FAPES, which is also responsible for annual budgeting
and detailing of operating costs required by FAMS.
FAMS is not covered by guarantors’ assets. Benefit prepayment is made by the
BNDES and its subsidiaries based on the budgets presented by FAPES, which reports
the costs incurred on a monthly basis via an Expense Schedule.
As at December 31, 2011, the amount of the actuarial obligation to covered
participants and active participants for the average future time of service was recorded
based on the update of the actuarial valuation made by an independent actuary.
The amounts recognized in the balance sheet are as follows:
Present value of unfunded obligations
Net liabilities
100
At December 31,
2011
At December 31,
2010
1,246,200
(341,400)
1,040,531
(262,713)
904,800
777,818
Changes in the defined benefit obligation during the year ended at December 31, 2011
and 2010 are as follows:
2011
Balance at the beginning of the year
2010
1,040,531
858,730
Interest cost
Benefits paid
43,680
107,275
91,587
(36,873)
26,630
86,090
100,078
(30,997)
Balance at the end of the year
1,246,200
1,040,531
The amounts recognized in the income statements (‘personnel expenses’) are as
follows:
2011
2010
43,680
26,630
107,275
86,090
12,900
5,751
Interest cost
Net actuarial gains/losses recognized
Total
163,855
118,471
The BNDES Group expects to contribute approximately R$40,633 to the medical care
plan next year.
A one percentage point change in medical care cost rates would have the following
impacts:
One percentage
point increase
Effect on aggregate cost of current service and interest cost
Effect on defined benefit obligation
One percentage
point decrease
31,533
196,547
(23,432)
(155,327)
19.3. Actuarial and economic assumptions
All actuarial calculations involve future projections for some parameters, such as:
salaries, interest, inflation, variation of INSS benefits, mortality, disability, etc. No
actuarial outcome can be analyzed without the prior knowledge of the assumptions
scenario used in the valuation. The following economic assumptions were used in the
valuations:
Benefits considered
Actuarial valuation method
Active employee mortality table
Disability mortality table
Disability
Actual salary increase expected for active participants
Nominal discount rate
Inflation rate
Expected return on supplementary pension plan assets
Actual trend rate of medical costs
101
All regulatory benefits
Projected Credit Unit
AT 2000
AT 49 increased by 100%
Álvaro Vindas
Staff: 3.1100% p.a. and
back office: 2.5397% p.a.
10.288% p.a.
4.5% p.a.
10.288% p.a.
5% p.a.
All regulatory benefits
Projected Credit Unit
AT 2000
AT 49 increased by 100%
Álvaro Vindas
Staff: 2.9546% p.a. e
back office: 2.4426% p.a.
10.4909% p.a.
4.5% p.a.
10.4909% p.a.
5% p.a.
20. PROVISIONS
At December 31,
2011
At December 31,
2010
Voluntary dismissal program
724,662
70,954
661,568
95,143
Total
795,616
756,711
Current
Noncurrent
72,219
723,397
49,749
706,962
20.1. Provisions - labor and civil
The BNDES is a party to various labor and civil lawsuits arising from the normal
course of its business.
The provision recognized is considered by Management as sufficient to cover potential
losses.
The provisions for lawsuits recognized by nature are as follows:
At December 31,
2011
41,857
682,805
At December 31,
2010
43,471
618,097
Total
724,662
661,568
Current
Noncurrent
1,265
723,397
7,059
654,509
Labor lawsuits
Civil lawsuits
(a)
Labor lawsuits
The provisions for labor contingencies reflect the risk of probable loss on 164
ongoing lawsuits that refer basically to pre-agreed overtime and lawsuits related
to the Amnesty Law (administrative reform of the Collor administration).
Table below shows the changes in the provisions for labor contingency in the
year ended at December 31, 2011 and 2010:
2011
2010
43,471
70,760
Payments
787
(2,401)
(22,392)
(4,897)
41,857
43,471
As at December 31, 2011, the BNDES is a party to 129 ongoing lawsuits
classified as possible contingencies, in the estimated amount of R$256,372
(R$241,420 as at December 31, 2010).
102
(b)
Civil lawsuits
The provision for civil contingencies reflects the risk classification as probable
loss on 15 lawsuits. The most important lawsuits are related (i) compensation
lawsuits related to privatizations carried out by the Federal Government and
implemented by the BNDES in its capacity as the manager of the National
Privatization Program (PND), (ii) contractual matters, and (iii) a lawsuit filed in
1995, relating to a privatization auction held in 1989, with a lower court decision
favorable to BNDESPAR, which was revised and still awaits judgment.
Table below shows the changes in the provisions for civil contingency in the
year ended at December 31, 2011 and 2010:
2011
618,097
2010
622,140
64,708
(4,043)
682,805
618,097
As at December 31, 2011, the BNDES is a party to 84 ongoing lawsuits
classified as possible contingencies, in the estimated amount of R$566,926
(R$1,396,800 as at December 31, 2010).
20.2. Planned employee termination program
After the decision of the Federal Supreme Court (STF) which established that the
voluntary retirement of employees does not automatically terminate the employment
contract, a large number of employees remained working at the Bank while receiving
the retirement benefit, which impaired the expected renewal of the BNDES Group’s
personnel.
The Planned Retirement Program which is an incentive for the retirement of
employees who are eligible to full or early retirement through December 31, 2012 was
approved under the scope of the Collective Bargaining Agreement, to ensure the
renewal of personnel, without prejudice to the transfer of retirees’ experience to new
employees.
According to FAPES estimate, in the coming two years, 152 employees will become
eligible to the Program, corresponding approximately to 5,5% of the current headcount
of the BNDES Group.
The estimated remaining disbursement as at December 31, 2011 as a result of the
implementation of the program is R$770,954.
103
21. OTHER PAYABLES
At December 31,
2011
At December 31,
2010
84,027
406,647
175,877
81,164
131,312
125,533
127,503
920,520
483,309
201,083
96,265
128,862
110,111
116,526
1,042,860
Total
2,052,583
2,179,016
Current
Noncurrent
2,052,583
-
2,179,016
-
Payables
Other taxes
Outras
22. EQUITY
22.1. Share capital
As of December 31, 2011 and 2010 the BNDES’ subscribed capital is represented by
6,273,711,452 registered common shares, without par value, all held by the Federal
Government.
A capital increase in the amount of R$6,783,092 thousand arising from the transfer of
shares of Petrobras is being made as follows:
•
•
Transfer of 223,597,798 common shares of Petróleo Brasileiro S.A. PETROBRAS, in the amount of R$6,400,000 thousand, exceeding the Federal
Government’s share control, pursuant to Decree 7439 of February 16, 2011.
Transfer of 16,103,059 common shares of Petróleo Brasileiro S.A. PETROBRAS, in the amount of R$383,092 thousand, exceeding the Federal
Government’s share control, pursuant to Decree 7653 of December 23, 2011.
22.2. Earnings reserves
At December 31,
2011
At December 31,
2010
Legal reserve
Future share capital increase reserve
Operating margin reserve
Tax incentives
1,296,394
2,723,829
5,124,909
115,236
843,997
1,442,602
4,697,484
61,215
Total
9,260,368
7,045,298
Beginning 2008, the bylaws of BNDES started to provide for the recognition of an
‘Earnings reserve for future Share capital increase’, an ‘Earnings reserve for operating
margin’, and a ‘Tax incentives reserve’.
104
The ‘Reserve for future Share capital increase’ is designed to ensure the formation of
equity compatible with the expected growth of the Bank’s assets and is recognized as
15% of adjusted profit, with a total balance limited to 30% of Share capital.
The ‘Reserve for operating margin’ is designed to ensure that the BNDES has an
operating margin consistent with the development of its operations and is recognized
as 100% of the remaining balance of profit, with a total balance limited to 50% of
capital.
With the enactment of Law 11638/07, tax incentives should be recorded to profit or
loss and allocated to the earnings reserve - tax incentive.
22.3. Dividends
Dividends paid in the year
In the year ended December 31, 2011, BNDES paid supplementary dividends for the
year ended 2010 upon partial reversal of the operating margin reserve and
prepayments of interest on capital for 2011, as follows:
Event
Supplementary dividends - 2010
Prepayment of interest on capital - 2011 (**)
Prepayment of interest on capital - 2011 (**)
Total payments
(*)
(**)
Payment method
Federal government bonds
Cash
Cash
Cash
Cash
Cash
Includes adjustment using the SELIC rate from the date the distribution is proposed until the date of payment.
Proposed payments to shareholder include adjustment by the SELIC rate, amounting to R$42,259 thousand. See table above on allocation
of profit.
Event
Interest on capital - 2009
Mandatory minimum dividend - 2009
Prepayment of interest on capital/dividends 2010 (**)
Prepayment of interest on capital/dividends 2010 (**)
Total
(*)
(**)
Declared value
Amount paid
R$ thousand
(*)
Payment date
1,000,000
1,026,010 March 2011
1,500,000
1,552,559
Apr 2011
1,700,000
1,776,219
May 11
540,814
Sep-11
497,484
1,599,607
1,557,904
Sep-11
451,746
451,190
Dec-11
6,748,837
6,904,696
Declared value
Amount paid (*)
R$ thousand
41,994
42,523
381,547
386,350
875,000
886,015
2,434,216
2,500,000
289,920
300,000
215,293
226,467
Payment date
Payment method
Feb-10
Feb-10
Feb-10
Apr 2010
May 10
Jul-10
Cash
Cash
Cash
Cash
Cash
738,365
953,607
707,566
1,012,010
Jul-10
Aug-10
Cash
2,738,896
8,668,838
2,664,345
8,725,276
Aug and Nov-10
Includes adjustment using the SELIC rate from the date the distribution is proposed until the date of payment.
Proposed payments to shareholder include adjustment by the SELIC rate, amounting to R$105,350 thousand. See table above on
allocation of profit.
105
22.4. Valuation adjustments to equity
Increases or decreases in the amounts attributed to components of assets or liabilities,
net of taxes, as a result of their measurement to fair value, are accounted for under this
line item. These adjustments are broken down as follows:
As at
December
31, 2011
As at
December
31, 2010
15,132,418
29,507,477
(277,069)
556,816
(81,281)
(129,644)
15,412,165
29,296,552
Own assets
Adjustment to fair value of securities classified as available for sale
Associates’ assets
Cumulative translation differences
Other related adjustments of associates
23. REVENUE FROM FINANCIAL INTERMEDIATION - LENDING OPERATIONS AND
INTERBANK ONLENDINGS
2011
Loan investments
Local currency
Interest
Other
Foreign currency
Interest
Losses on exchange differences
Other
2010
10,558,768
31,922
9,158,147
14,905
3,504,174
7,056,728
(4,642)
3,413,137
(2,430,193)
1,442
10,201,644
8,894,087
63,195
149,390
1,627
72,216
(41,575)
1,792
Local currency
Interest
112,812
96,712
Receivables
Local currency
Interest
224,319
153,002
31,899,937
19.333.672
Local currency
Interest
Foreign currency
Interest
Other
Total
106
24. GAIN (LOSS) ON SECURITIES
2011
Interbank deposits
Interest
Interest
2010
997,588
525,022
18,988
15,069
325,750
(6,533)
188,489
(14,851)
1,635,345
9,364
(712,221)
4,411
21,747
1,166,567
(3,209)
(330,617)
524,704
22,195
6,347
6,582
602,908
704
-
1,224,203
165
(149)
516,222
(17,380)
1,358,006
-
1,892,235
1,975
40
18,312
1,299,517
9,455
152,039
19,844
853,535
32,005
52,415
1,723,344
32,005
62,105
Shares
Adjustment to fair value
-
61,998
Promissory notes
Interest
-
864
6,253,757
8,043,347
Mutual fund units
Management and brokerage fees
Debentures
Interest
Premium
Other
Government bonds
LFT - A
Interest
LFT
Interest
Gain on disposal
LTN
Interest
Gain on disposal
NTN-B
Interest
Gain on disposal
Outros
NTN-F
Interest
Gain on disposal
Total
107
25. FUNDING OPERATIONS - FINANCING AND ONLENDINGS
2011
2010
Deposits
Interbank deposits
Interest
Special deposits - FAT
Interest
-
(94,771)
(1,250,934)
(1,353,073)
Market funding
Interest
(17,115)
(758,136)
(1,151,121)
(937,687)
(323,360)
(15,664)
(309,585)
-
(464,319)
(834,240)
(1,270)
(455,138)
280,343
(30,082)
(15,954,124)
(12,181,746)
(2,392,258)
(5,943,172)
(83)
(2,457,813)
2,023,676
(165)
Interest
(1,498,257)
(1,283,521)
Subordinated debt
Interest
Gains on exchange differences
(6,569,026)
(345,054)
(5,799,175)
480,058
(144,325)
(93,422)
(36,904,322)
(22,970,237)
Debentures issued
Interest
Borrowings
Domestic
Interest
Foreign
Interest
Other
Onlendings
Domestic
Interest
Foreign
Interest
Total
108
26. GAIN (LOSS) ON DERIVATIVE INSTRUMENTS
2011
2010
Swaps
Futures
(286,489)
(404,583)
(691,072)
(184,755)
(963,298)
(1,148,053)
Options
688,735
681,963
(2,337)
(466,090)
Total
27. REVERSAL (RECOGNITION) OF THE ALLOWANCE FOR IMPAIRMENT LOSSES
2011
Loan investments
Debentures
Receivables
Written-off receivables
Credit recovery
135,012
(717,042)
(12,172)
13,907
(91,728)
Total
2010
881,100
(227,028)
12,191
9,096
(5,390)
7,815
(78,842)
2,286,004
209,077
2,003,846
28. RELATED-PARTY TRANSACTIONS
The BNDES Group entities have business relations and conduct transactions with entities
considered related parties, as defined in IA 24 ‘Related Party Disclosures’.
109
(a) Transactions with subsidiaries
Transactions between companies included in consolidation have been eliminated from the consolidated financial statements and were as
follows:
As at December 31, 2011
Finame
BNDESPAR
As at December 31, 2010
Total
Finame
BNDESPAR
Total
Assets
Onlendings
Local currency
Foreign currency
104,548,121
7,341,052
8,710,955
38,526
113,259,076
7,379,578
82,405,006
7,198,212
11,642,000
49,431
94,047,006
7,247,643
Total
111,889,173
8,749,481
120,638,654
89,603,218
11,691,431
101,294,649
Liabilities
Onlendings
Local currency
(1,908)
(86,931)
(88,839)
(890,144)
(91,770)
(981,914)
Total
(1,908)
(86,931)
(88,839)
(890,144)
(91,770)
(981,914)
2011
2010
Revenue
Onlendings
Local currency
Foreign currency
4,335,636
1,168,344
1,102,895
9,904
5,438,531
1,178,248
2,675,407
98,535
990,696
1,846
3,666,103
100,382
Total
5,503,980
1,112,799
6,616,779
2,773,942
992,542
3,766,485
Expenses
Onlendings
Local currency
(82,014)
(6,361)
(88,375)
(347,998)
(38,931)
(386,929)
Total
(82,014)
(6,361)
(88,375)
(347,998)
(38,931)
(386,929)
110
(b) Transactions with the Government
The Federal Government is the sole shareholder and the sole and controlling
shareholder of BNDES.
Transactions involving the National Treasure are summarized below and the terms and
conditions are described in notes to each line item:
Assets
Federal government securities (Note 6.1)
Other receivables from the Brazilian National Treasury (Note 10)
Liabilities
Onlendings (Note 14)
Hybrid instrument issued (Note 15)
Other payables to Brazilian National Treasury (Note 21)
At December 31,
2011
At December 31,
2010
51,328,835
7,830,901
25,638,179
3,547,589
(296,998,648)
(13,775,298)
(131,312)
(239,823,527)
(13,234,016)
(128,862)
2011
Income statement
Income from federal government bonds
Income from other receivables - equalization
Expenses on onlendings and hybrid instrument issued
Expenses on other payables - equalization
3,959,319
2,958,113
(22,030,353)
15,052
2010
5,895,064
1,658,825
(12,239,110)
(66,619)
(c) Transactions with other Government entities
In addition to the transactions with its sole shareholder, the BNDES conducts in the
course of its operations, transactions with other Government entities, therefore under
common control, such as Banco do Brasil, Caixa Econômica Federal, Banco do
Nordeste, Petrobras, Eletrobras, Fundo de Amparo ao Trabalhador, Fundo de
Participação PIS/PASEP, Fundo da Marinha Mercante, and Fundo de Garantia para
Promoção da Competitividade (FGPC).
Balances of significant transactions with these entities are summarized below:
Assets
Funds, debentures, lending and onlending transactions, dividends and
interest on capital, and other receivables
Liabilities
Deposits and onlendings
At December 31,
2011
At December 31,
2010
143,948,168
(68,121)
91,565,251
(196,321)
(198,869,344)
(182,402,038)
(d) Transactions with Fundação de Assistência e Previdência Social do BNDES FAPES
111
Transactions with the supplementary pension plan and the health care, administered by
FAPES, summarized below, are detailed in Note 19:
Liabilities
Supplementary pension plan (Note 19)
Health care plan (Note 19)
At December 31,
2011
At December 31,
2010
(735,642)
(904,800)
(702,450)
(777,818)
2011
Expenses
Medical care plan
(111,811)
(126,982)
2010
(102,958)
(87,475)
(e) Transactions with associates
BNDESPAR holds investments in associates. In addition to capital contributions to the
investees and receipt of dividends and interest on capital, the BNDES has Loan
investments and debentures in its portfolio of BNDESPAR associates, as follows:
Assets
Loan investments
At December 31,
2011
At December 31,
2010
5,200,781
(4,245)
1,252,751
(7,068)
2011
Income/expenses
Interest income
Expenses on allowance for impairment losses
(184,726)
(3,255)
2010
(50,991)
39,397
These transactions with these investees are conducted under the same terms and
conditions as those conducted with unrelated parties and do not generate different effects
on the BNDES profit and financial position as compared to transactions with unrelated
parties.
(f) Employee and management compensation
The key management personnel are the people with the power of and responsibility for
planning, steering and controlling the BNDES activities. All the members of the
executive committee and the board of directors are key management personnel of
BNDES.
The BNDES does not grant loans to its management key personnel—officers and
members of the board of directors, audit committee, and supervisory boards. This practice
is prohibited for all financial institutions regulated by the BACEN.
The BNDES also does not grant share-based compensation or other long-term benefits for
its key management personnel. Postemployment benefits are restricted to employees of
the BNDES and its subsidiaries.
112
Costs on compensation and other benefits paid to key management personnel of the
BNDES are as follows:
2011
2010
Short-term benefits:
Payroll and related taxes
8,262
7,840
Compensation paid to managers and employees are broken down below:
Management
Employees
Highest salary
Lowest salary
Average salary
53,91
4,95
16,75
44,92
1,64
14,33
29. SEGMENT INFORMATION
The BNDES defined the operating segments based on the reports used by management for
strategic decision-making.
The BNDES conducts its business analysis mainly from the standpoint of financing to
businesses and the capital market, and treasury. The financing to businesses segment
consists of Loan investments and financing onlendings. The capital market segment consists
of financial support transactions through debt and equity instruments. The treasury segment
consists mainly of transactions with government bonds and derivative instruments.
The accounting policies adopted to produce segment information are consistent with the
accounting policies adopted to prepare the financial statements. The operating segment
report was prepared considering the amounts determined in accordance with the BR GAAP,
as Management uses this information to assess the performance of the business. The
reconciliation between the BR GAAP and IFRS, and its impact on the main amounts
presented in the segment report (income, expenses, profit or loss, and assets) is presented in
Note 31.
The BNDES assesses the performance of the operating segments based on net operating
profit. Income tax monitoring is centralized, and thus it was not allocated to any segment.
Operating revenue is fully obtained from external clients and thus there are no intersegment
transactions.
113
Segment information was analyzed and is stated below
Financing to
businesses
Interest income
Income from transactions linked to Brazilian
National Treasury
Other income
Capital
market
Treasury
Unallocated
Total under
BR GAAP
37,245,254
24,731,805
7,215,482
-
1,278,643
1,287,935
(31,885)
5,555,211
5,116,369
374,939
-
44,079,108
31,136,109
7,215,482
343,054
4,739,569
343,899
214,499
22,593
63,903
-
4,739,569
343,899
300,995
Interest expenses
Expenses on transactions linked to Brazilian
National Treasury
Reversal (recognition) of allowance for impairment
losses
Other expenses
(30,154,379)
(22,969,772)
(7,138,130)
(691,072)
(2,089,465)
(2,089,465)
-
(4,629,560)
(4,561,277)
-
-
(36,873,404)
(29,620,514)
(7,138,130)
(691,072)
(8,971)
-
-
-
(8,971)
717,475
(63,909)
-
(68,283)
-
717,475
(132,192)
Share of profits from investments in associates
Net inflation adjustment of assets and liabilities SELIC
Reversal (recognition) of allowance for impairment
losses on investments in associates
(263,338)
-
7,614,031
1,213,236
-
(2,492,856)
-
4,857,837
1,213,236
-
652,061
-
(164,003)
488,058
-
(126,158)
4,169,194
1,730,659
-
-
(126,158)
4,169,194
1,730,659
(263,338)
(24,961)
-
(65,495)
(653,161)
(30,335)
(1,462,702)
(117,160)
(65,495)
(653,161)
(30,335)
(1,462,702)
(405,459)
6,827,537
6,803,209
925,651
(2,492,856)
(2,896,064)
(119,543)
12,063,541
(2,896,064)
(119,543)
6,827,537
6,803,209
925,651
(5,508,463)
9,047,934
Unallocated
Total under
BR GAAP
8,605,528
-
624,826,922
17,031,477
Reversal (recognition) of provisions for labor and
civil contingencies
Tax expenses
Depreciation expenses
General and administrative expenses
Income before taxes and profit sharing
Income taxes and social contribution
Profit sharing
Profit for the year
Financing to
businesses
ASSETS
440,144,848
-
114
Capital
market
116,546,479
17,031,477
Treasury
59,530,067
-
Financing to
businesses
Interest income
Income from transactions linked to Brazilian National
Treasury
Other income
Interest expenses
Expenses on transactions linked to Brazilian National
Treasury
Reversal (recognition) of allowance for impairment losses
Other expenses
Share of profits from investments in associates
Reversal (recognition) of allowance for impairment losses on
investments in associates
Tax expenses
Depreciation expenses
General and administrative expenses
Income before taxes and profit sharing
Income taxes and social contribution
Treasury
Unallocated
Total
under
BR GAAP
23,067,915
22,054,380
(2,474,978)
-
1,209,501
721,088
(60,086)
6,961,442
6,390,258
352,198
-
31,238,858
29,165,726
(2,474,978)
292,112
2,761,538
499,813
227,162
548,499
218,986
-
2,761,538
499,813
994,647
(14,255,397)
(18,553,660)
2,784,077
(1,148,053)
(1,716,166)
(1,716,166)
-
(5,376,571)
(5,360,821)
-
-
(21,348,134)
(25,630,647)
2,784,077
(1,148,053)
(4,157)
2,851,778
(185,382)
-
(15,750)
-
(4,157)
2,851,778
(201,132)
(191,786)
-
6,896,639
439,349
279,651
-
(2,236,643)
(172,265)
4,468,210
439,349
107,386
-
(144,395)
2,303,541
3,238,442
-
-
(144,395)
2,303,541
3,238,442
(191,786)
780,051
-
26,436
(592,512)
(21,924)
(1,261,690)
(214,688)
26,436
(592,512)
(21,924)
(1,261,690)
373,577
8,620,732
6,389,974
1,584,871
(2,236,643)
(4,286,305)
(159,307)
14,358,934
(4,286,305)
(159,307)
8,620,732
6,389,974
1,584,871
(6,682,255)
9,913,322
Unallocated
Total
under
BR GAAP
10,456,847
-
549,019,962
11,340,657
Reversal (recognition) of provisions for labor and civil
contingencies
Capital
market
Profit sharing
Profit for the year
Financing to
businesses
ASSETS
369,948,918
-
Capital
market
126,574,787
11,340,657
Treasury
42,039,410
-
The presentation format of segment information stated above already includes the
reconciliation of line item amounts (income, expenses, profit or loss, assets, etc.) of the
operating segments disclosed with the related total amounts disclosed in the BR GAAP
financial statements. This reconciliation is stated in the column ‘Unallocated’.
115
30. OTHER INFORMATION
30.1. Joint Liability of the Federal Government
In accordance with the Official Opinion 1124/96 issued by the Ministry of Planning
and Budget, the BNDES, as a wholly-owned subsidiary of the Federal Government
cannot file for bankruptcy, and the Federal Government is jointly liable for obligations
assumed by the BNDES.
30.2. Guarantees provided
The BNDES pledged to the Brazilian National Treasury as counter-guarantees for
collateral and loans raised abroad, in the amount of US$600 million, 7,744,038
registered preferred shares issued by Petróleo Brasileiro S.A. - PETROBRAS (later
split into 61,952,304 preferred shares) and 28,083,251,230 registered common shares
issued by Centrais Elétricas Brasileiras S.A. - ELETROBRÁS (later grouped into
56,166,502 common shares) held by its wholly-owned subsidiary BNDES
Participações S.A. - BNDESPAR. Out of these shares, 61,952,304 preferred shares
issued by Petrobras and 1,510,070 common shares in Eletrobrás remain blocked and
under custody.
30.3. Program management
Fundo Amazônia
Fundo Amazônia, created under BNDES Resolution 1640, of September 3, 2008, is
engaged in obtaining investment grants for non-reimbursable investments to be used in
prevention, monitoring, and suppression of deforestation, and promotion of the
preservation and sustainable use of the Amazon rainforests, pursuant to Decree 6527,
of August 1, 2008.
As at December 31, 2011 and 2010, the balances of the funds arising from donations
to Fundo Amazônia, managed by BNDES, are as follows:
Donations received (*)
Investment in non-reimbursable operations
Refund of administrative expenses
Total
(*) includes income from investment of available balances
116
39,934
70,846
2,073
112,853
84,394
11,106
1,359
96,859
Export Guarantee Fund - FGE
The FGE, an accounting fund linked to the Ministry of Finance and managed by the
BNDES, was created by Law 9818/99 for the purpose of covering the guarantees
pledged by the Federal Government on export insurance guarantee transactions. As at
December 31, 2011, total guarantees pledged amounted to R$18,924,994.
Guarantee Fund To Promote Competitiveness (FGPC)
The FGPC is an accounting fund linked to the Ministry of Development, Industry and
Foreign Trade and managed by the BNDES, created by Law 9531/97 and regulated by
Decree 3113/99. The purpose of this fund is to provide funds to guarantee the risk of
financing operations undertaken by the BNDES and FINAME, directly or through
onlending institutions, to micro, small and medium-sized export companies or
producers of inputs that are an integral part of the production process, assembly or
packaging of goods for export. As at December 31, 2011, total guarantees pledged
amounted to R$420,809.
Fund for Regional Development with Resources from Privatization (FRD)
The FRD, created on December 17, 1997, through the BNDES Resolution 918, is an
accounting fund engaged in providing financial support to regional and social
development projects in municipalities geographically located in areas directly
influenced by Vale S.A. The initial share capital of the fund was R$85,900, provided
from a donation made under CND (National Privatization Board) Resolution 02/97. In
2011, the fund conducted transactions totaling R$7,416.
Fund for Land and Agricultural Reform - Fundo da Terra
Fund for Land and Agricultural Reform - Banco da Terra is an accounting fund
created by Supplementary Law 93/98 and regulated by Decree 3475/2000, to provide
funds for rural settlement and land reform programs, and the BNDES is the financial
manager of the Fund.
117
31. SUMMARY OF DIFFERENCES BETWEEN ACCOUNTING PRACTICES ADOPTED
IN BRAZIL (BR GAAP) AND IFRS
The reconciliation between shareholders' equity and net income under the Brazilian
Corporate Law, technical standards issued by the Brazilian Securities and Exchange
Commission (CVM) and standards issued by the Central Bank of Brazil (Bacen), and
shareholders’ equity and net income determined under the International Financial Reporting
Standards (IFRS) is as follows:
31.1. Reconciliation of shareholders’ equity based on differences between BR GAAP and
IFRS
As at December 31,
2011
As at December 31,
2010
61,012,425
65,899,265
Revenue from lending operations (a)
Interest on overdue receivables (b)
Allowance for impairment losses (c)
Investments in associates (d)
Deferred taxes (e)
(171,220)
93,030
1,908,690
2,300,717
(755,379)
(152,885)
62,726
2,417,088
2,315,504
(750,317)
Shareholders´ equity under IFRS
64,388,263
69,791,382
Shareholders´ equity under BR GAAP
31.2. Reconciliation of profit or loss based on the differenced between BR GAAP and IFRS
2011
2010
Profit or loss under BR GAAP
9,047,934
9,913,322
Revenue from lending operations (a)
Interest on overdue receivables (b)
Allowance for impairment losses (c)
Investments in associates (d)
Deferred taxes (e)
Other
(18,336)
30,303
(508,398)
(14,787)
(5,061)
(615)
(22,702)
(79,598)
(847,932)
(223,538)
117,784
-
Net income under IFRS
8,531,040
8,857,337
Adjustments
(a)
Revenue from credit operations
Under BR GAAP, BNDES promptly records in profit or revenues or expenses
from credit operations. Under IFRSs, revenues earned or expenses incurred in
connection with lending operations, which are incremental and directly
attributable to their sources, are included in the calculation of amortized cost of
the operation through the effective interest method. These expenses or revenues
are recognized in profit or loss over the transaction term.
118
(b)
Interest on overdue receivables
In accordance with Bacen Resolution 2682/99, the recognition in profit or loss of
revenues and charges of any nature related to credit operations with principal or
charges overdue for 60 (sixty) days or more is not allowed.
Under IFRSs, revenues and charges of any nature from credit operations are
recognized under the effective interest method.
(c)
Under accounting practices adopted in Brazil applicable to financial institutions,
the reserve for credit risk is subject to Bacen Resolution 2682/99, which is based
on the “estimated loss" method.
Under IFRSs, the measurement of allowance for loan losses is based on the
"incurred loss" method, which requires objective evidence of impairment loss as
a result of one or more events occurred after the recognition of the financial
asset.
(d)
In accordance with accounting practices adopted in Brazil applicable to financial
institutions, bargain purchase gains are not recognized in profit or loss, which
differs from IFRS.
(f)
Deferred taxes
Changes in deferred taxes and social contributions represent the effects from
these taxes on the adjustments for transition to IFRSs.
32. NON-CASH TRANSACTIONS
In 2011 and 2010, BNDES carried out financing activities not involving cash, as detailed
below; therefore, these transactions are not reflected in the statement of cash flows.
A capital increase, in the amount of R$6,783,092 thousand, is being carried out through the
transfer of shares issued by Petróleo Brasileiro S.A. - PETROBRAS, exceeding the
maintenance of the Brazilian government’s shareholding control.
In 2010 BNDES increased capital by R$7,200,000 thousand, of which R$2,700,000
thousand through the transfer by the Federal Government of part of the receivables arising
from advances for future capital increase made in Centrais Elétricas Brasileiras S.A. Eletrobrás; and R$4,500,000 thousand through the transfer of shares issued by Petróleo
Brasileiro S.A. - PETROBRAS, exceeding the maintenance of the Brazilian government’s
shareholding control.
119
33. EVENTS AFTER THE REPORTING PERIOD
There were no events after the reporting period.
120
BOARD OF DIRECTORS
Fernando Damata Pimentel - Chairman
Luciano Galvão Coutinho - Vice Chairman
Mauro Borges Lemos
Carlos Roberto Lupi
Eduardo Eugênio Gouvêa Vieira
Artur Henrique da Silva Santos
Roberto Atila Amaral Vieira
Orlando Pessuti
Miriam Aparecida Belchior
Márcio Holland de Brito
SUPERVISORY BOARD:
Carlos Eduardo Esteves Lima
Paulo Fontoura Valle
Clayton Campanhola - Alternate
Raul Lycurgo Leite - Alternate
Eduardo Coutinho Guerra - Alternate
121
AUDIT COMMITTEE:
João Paulo dos Reis Velloso
Attilio Guaspari
Paulo Roberto Vales de Souza
EXECUTIVE BOARD:
Luciano Galvão Coutinho - President
João Carlos Ferraz - Vice President
Elvio Lima Gaspar
Julio César Maciel Ramundo
Luiz Eduardo Melin de Carvalho e Silva
Luiz Fernando Linck Dorneles
Maurício Borges Lemos
Roberto Zurli Machado
FINANCIAL AREA SUPERINTENDENCE:
Selmo Aronovich
ACCOUNTING DEPARTMENT HEAD:
Carlos Frederico Rangel de Carvalho Silva - CRC-RJ 087956/O-8
***
122

2011 - BNDES

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