Institutional Presentation

Third Quarter of 2010

Index

1. CETIP’s Investment Highlights 2. New Initiatives 3. CETIP’s Financial Highlights 4. Appendix

2

1. CETIP’s Investment Highlights

3

CETIP’s Highlights CETIP is the largest registration, depository and trading platform of fixed income and OTC derivatives in Latin America Strong Position

Dominant position in a rapidly expanding market

Business Model

Diversified and vertically integrated model

Growth Profile

Superior growth profile

Management

Resilience

Experienced management team and high standards of governance

Resilient and predictable cash generative business with low execution risk 4

Strong Position High barriers to entry:

- network effect (more than 9,000 participants) - regulatory framework - scale and reputation - low prices in the market - dominant position in the market

Number of Participants

Market Share

CAGR: 12.2% 9915

4%

Other

25%

CETIP

9644 9305 9109

75%

96%

100%

100%

OTC Derivatives

Corporate Debt

Investment Funds

Bank Deposits

8837

3Q09

4Q09

1Q10

2Q10

3Q10

5

Business Model Registration - Fixed income instruments Financial Institutions - CDs, IDs, others - Loans participants (CCBs) - Real estate financing (CCI, LCI, others) - Agribusiness financing (LCA, CCA, others) - Export financing - Others Corporations - Corporate Bonds, Debentures, Commercial Papers - OTC Derivatives

24%*

We derive our revenues from acting as a registration, custodian/depository and settlement agent for all securities under our care, with over 50 asset classes, primarily in fixed income, such as interbank and time deposits, corporate bonds, some specialty government bonds, mutual funds, and finally over the counter derivatives.

Custody

Transactions

- Debentures - Quota of Funds - Other assets held in custody

- Management of Corporate Events

21%*

(custody services)

14%*

Monthly Utilization - Connectivity Fee

26%* Others - CIP services

15%* (*) % of revenue (3Q10)

6

Business Model Vertically Integrated Model

Diversified Revenue Drivers

Registration Matching Confirmation

Electronic Trading CETIPNet

Settlement

Risk Management Collateral Management

Registration Fixed Income OTC Derivatives

Volume Quantity

Custody Debentures Quota of Funds End Users

Average Volume %/volume R$ Average Volume %/volume R$ Quantity R$/customer

Transactions

Quantity

R$/transaction

Monthly Utilization

Quantity

R$/customer/scale

Others

Quantity

R$/fund transfer

%/volume R$ R$/contract

Depository/ Custody

Vertical integration driven by regulatory zeal Rest of the world heading this way 7

Multiple Growth Drivers Credit Growth in Brazil Volume (R$ billion)

OTC Derivatives Growth – Volume R$ billion 678

45%

% GDP 40%

26%

25%

22%

24%

25%

28%

31%

33%

498

488

397 1,410 1,277

384

418

499

733

336

607

327 2000

2001

2002

2003

2004

2005

2006

936

2007

2008

(Source: Brazilian Central Bank)

2009

2006

2007

Corporate Debt¹ vs. GDP Average of Developed Countries 23%

U.K.

Source: CVM, Andima, BIS, S&P & Global Insight e CIA – World Fact Book 1 Considers primary corporate debt (excluding Financial Institutions)

Spain

South Africa

18%

Japan

9%

16%

Chile

8%

11%

6%

Australia

2%

26%

Mexico

2009

0%

Brazil

1.5%

Turkey

2.0%

2008

34%

Average of Emerging Markets 10%

2.8%

2007

41%

Ireland

3.7%

2006

2009

U.S.

Real Estate Financing vs. GDP

(Source: Brazilian Central Bank and IPEADATA)

2008

(Note: Volumes at the end of each period combining CETIP and BVMF)

8

Benefits from Multiple Growth Drivers – OTC Derivatives Annual Volume of OTC Derivatives Trading per Country ¹

Growth Drivers

45.1

Multiple of Country’s GDP

18.3

13.2

13.6

•

Increased usage of fixed rate debt

•

Lengthening of tenors

•

Progressive regulatory environment

•

Increased variety of underlying assets and sophistication of managers and investors

•

Development of collaterization and tools for fair value calculation

Developed countries average 17x

14.0

Volume CAGR 7.0

07-12E: 60% 5.1

Emerging markets average 5x

4.1 2.8 1.6

Source: BIS, Global Insight, Oliver Wyman analysis 1 Volumes for other countries in 2007

Australia

USA

S.Africa

Japan

Germany

Italy

Spain

Mexico

Turkey

Brazil '12

Brazil' 07

0.4

9

Raising demand for Real Estate Sector Funding Net Savings vs. Real Estate Sector Funding

Savings Balance vs. Real Estate Sector Funding

(Source: Brazilian Central Bank and ABECIP) (In R$ billion)

(Source: Brazilian Central Bank and ABECIP) (In R$ billion)

Real estate sector funding

117

Net savings

Real estate sector funding

254

Savings balance 215 188

83 150

62 53

117 38

35

83

25

53 35

-2 Dec/06

Dec/07

Dec/08

Dec/09

Dec/06

Dec/07

Dec/08

Dec/09

CRI & CCI Volumes

Sources of Funding Real Estate Sector

(Source: CETIP. Volumes at the end of each period) CRI CCI (In R$ billion)

(Source: Brazilian Central Bank , ABECIP and CETIP ) (In R$ billion) Savings Accounts LCI/LH CRI

CRI

CCI

12.7 10.6

8.29 7.2

2.2

2.9 2.01

Dec/06

2.64

Dec/07

Dec/08

Dec/09

Dec/06

Dec/07

Dec/08

Dec/09

Real Estate sector is funded, essentially, by savings accounts. Net amount of funds outstanding in savings accounts is growing less than the Real Estate funding demand.

10

Experience and Corporate Governance In 2009 CETIP committed to the highest corporate governance standards with the Novo Mercado listing

CETIP is created as a non-forprofit organization

1984

Agreement with ANDIMA to operate SND

1986

CETIP starts its operations

1988

2008

Demutualization process, creating CETIP SA

Novo Mercado Listing

Advent becomes a shareholder with 32% stake

One class of shares with voting rights

2009

2009

CTIP3

11

Experience and Corporate Governance Main Executives Luiz Fernando Vendramini Fleury (CEO) Former CEO of IBI / Redecard

Years in Financial Industry

Corporate Governance

+ 19 years Shareholders Boards

Francisco Carlos Gomes (CFO) Former CFO of Bovespa, created CBLC

+ 33 years

Self Regulation Board

Committees

Carlos Eduardo Ratto Pereira (Commercial Director and Product Development Director) Formerly at BankBoston, Bank of America, Banco Itaú and HSBC Bank

+ 17 years

Wagner Anacleto (COO) Formerly at BM&FBovespa and CBLC

+ 29 years

Maurício Rebouças dos Santos (CTO) Formerly at Mercabolsa (Portugal), ANDIMA (Selic manager)

-

Executive Bodies

+ 24 years

Board of Directors

Management Committee

Pricing Committee

Compensation Committee

Nominations Committee

Self Regulation Officer

CEO

CFO and Investor Relations

Carlos Menezes (Self regulation Director) Formerly at Unibanco and BPN Brasil Bank

Commercial and Product Development

Chief Operations Officer

Chief Technology Officer

+ 27 years

12

2. New Initiatives

13

Continued Innovation to Sustain Our Advantage New Products Implemented 2003 - 2004 ► ► ► ► ► ► ► ► ► ► ► ►

CCI - real estate securities Bank deposits - multiple index NCE - export credit note CCE - export credit securities Credit default swap Box contracts New modalities interbank deposits Flexible options – currencies CetipNet - request for quote functionality CetipNet - government bonds functionality CetipNet - auction functionality Non deliverable forward

2005 - 2006 ► ► ► ► ► ► ► ►

► ► ►

► ►

Export notes Agribusiness securities FIDIC - mutual funds for securitizations Cash flow swaps Portfolio netting Mutual funds primary distribution system New modalities interbank deposits CCB / CCCB - bank credit securities - new system End user identification system CetipNet - single dealer functionality CetipNet - agribusiness securities functionality Collateralized bank deposits Trading monitoring system

2007 - 2010 ► ► ► ► ► ► ► ►

► ► ► ► ► ► ► ► ►

Collateralized interbank deposits Resetable swaps Collateral management for derivatives New modalities bank deposits Real estate securities - new system Non deliverable commodities CetipNet - auction new functionalities CetipNet - new government securities functionalities Standardized derivatives Back-office automation Business information Derivatives Carried out Abroad – DCE/ DCE-DP Credit Derivatives – DVE Letras Financeiras Collateral Management Time Deposits with Special Guarantee – DPGE Leasing Bills – LAM

14

2010e New Products ... Q2

2010e Q3

Q4

2011e Q1 ...

Off-shore Derivatives Registration of Derivatives Carried out Abroad

Equity Derivatives Improvement of the Stock Options registration procedure and implementation of Stock Contracts without physical delivery

Collateral Management Agreement with Clearstream to jointly develop, promote and distribute collateral management service for OTC Derivatives

Bank Assets Implementation of registration module to Certificados de Operações Estruturadas (COE)

(Pending on Brazilian Central Bank regulation)

15

New Initiatives

Collateral Management

CETIP plans to develop a comprehensive collateral management functionality to support OTC Derivatives as well as to help Brazilian banks reduce their capital requirements and improve process efficiency.

16

Services along the OTC contract ‘life cycle’ – client perspective CETIP is the responsible for the delivery of all services CETIP does not act as a CCP – Central Counterparty OTC contract ‘life stage’

Services

1. Establishment


Registration
Initial collateral

2. Servicing (payment and exposure mgt)


Payment calculation

OTC contract ‘life stage’

Services

3. Servicing
Collateral level calculation (tri-party collateral mgt
Collateral haircut calculation and reporting)
Collateral identif./optimisation
Collateral calls and movement


Payment netting


Collateral mark-to-market


Payment


Asset servicing/corp. actions


Exposure calculation


Basic client reporting


Exposure capture


Basic regulatory reporting


Exposure matching


Advanced client reporting


Exposure netting


Advanced regulatory reporting 4. Repo Services


Tri-party Repo

5. Termination


Settlement payment calculation
Settlement payment

Service currently offered by

Service supported by collaboration CETIP - Clearstream

Service supported by Algorithmics system

17

Concept: Targeted benefits  Neutral and independent collateral management agent  Integration of CETIP, SELIC and Clearstream assets in one virtual collateral pool  Enabler for new business opportunities (e.g. trade of forwards)  Outsourcing of burdensome administrative tasks  Daily mark-to-market of exposures and collateral  Automatic allocation, substitution and optimisation of collateral  Standardised and reliable collateral profiles  Transparent and consolidated reporting (*) in a second phase.

18

Envisaged time-frame*

project phases

final specifiaction documentation

binding contractual agreement

LOI between CETIP and Clearstream

initial client validation

contract negotiation

specification

Q1 2010

Q2 2010

Q3Q4 2010

launch of the collateral service

implementation

Q1 2011

testing

Q2 2011

continuous client validation, e.g. CETIP/Clearstream sponsored user group

 This time-frame considers a best-case scenario. First indication of a possible launch date will only be possible at the end of the specification phase. 19

Clearstream Global Liquidity and Risk Management Hub (Repos) 550 500 450 400 350 300

Peak over € 500 bn Commercial Bank Investment Bank Private Bank Central Bank Fund / Sicav / FCP Asset Manager Insurer State Agendcy Supranational Corporate Custodian CCP

209 40 34 24 21 15 9 8 8 5 5 2

250 Lender Cash Taker Borrower Cash Provider Collateral Giver Collateral Receiver Pledgor Pledgee

200 150 100 50 0 Jan-03

Jan-04

Jan-05

Jan-06

Jan-07

Jan-08

Jan-09

145 144 137 134 54 52 44 32

Jan-10

More than 375 participants 20

3. CETIP’s Financial Highlights

21

Financial Highlights Net Revenues – R$ million

Adjusted Operating Expenses – R$ million

+35.7%

+38.4% +31.7%

+11.0%

200,3

4Q09

1Q10

2Q10

3Q10

68,7

152,1

+23.9%

72,4 53,4 56,8 62,7 65,2

3Q09

+21.4%

56,6

26,2 22,3 21,4 21,1 18,9

9M09

9M10

3Q09

4Q09

1Q10

2Q10

3Q10

9M09

9M10

22

Financial Highlights Adjusted EBITDA – R$ million

136,5 +48.4%

68.1%

77,9

48,0

9M10

3Q09

4Q09

1Q10

53.6%

9M09

63.6%

3Q10

56.2%

2Q10

61.4%

1Q10

35,3 41,5 38,8 28,2 34,9 52.9%

66.3%

4Q09

45,6 69.9%

3Q09

42,9 68.4%

65.5%

37,2

69.6%

37,1

-6.3%

2Q10

3Q10

115,6 57.7%

103,6 +5.2%

+37.7%

51.2%

+31.8%

68.1%

+29.2%

Adjusted Net Income – R$ million

9M09

9M10 23

Revenue Breakdown by Type (%) – R$ million +35.6% +31.7%

+11.1% 61.9

66.1

21%

22%

22%

22%

15%

15%

72.9

75.6

28%

26%

22%

22%

13%

14%

84.0

176.5

232.5

24%

25%

26%

Registration

21%

21%

22%

Custody

14%

14%

14%

Transactions

29%

27%

25%

25%

26%

28%

25%

Monthly Utilization

13%

14%

12%

13%

15%

12%

13%

Other revenues

3Q09

4Q09

1Q10

2Q10

3Q10

9M09

9M10

24

Registration Revenues – R$ million + 35.0%

+50.2%

59.7 Others

44.2 + 3.0%

20.3 13.3

14.7

4,2

5,1

8,8

9,4

3Q09

4Q09

4,6

19.4

15,5

Derivatives

41,0

Fixed Income

13,7

20.0

5,6

5,2

15,3

12,6

13,2

1Q10

2Q10

3Q10

29,8

9M09

9M10

25

Custody Revenues – R$ million +32.5%

+ 38.1% 50.5 + 6.9%

13.6

14.6

15.7

3Q09

4Q09

1Q10

36.6

16.8

18.0

2Q10

3Q10

9M09

9M10

26

Transactions and Monthly Utilization – Revenues and Volumes Transactions – Quantity (million)

Transactions – Revenue (R$ million)

+19.7%

+12.4%

13

14

13

14

16

3Q09

4Q09

1Q10

2Q10

3Q10

+20.7% 44 36

9M09

9M10

Monthly Utilization – Number of Participants +13.1%

3Q09

+30.7% +13.5% 9,4

9,8

9,6

10,4

11,8

3Q09

4Q09

1Q10

2Q10

3Q10

31,7 24,3

9M09

9M10

Monthly Utilization – Revenue (R$ million) +22.9%

8.601

4Q09

8.827

1Q10

9.118

2Q10

+19.0%

+13.7%

+3.0% 8.306

+24.8%

9.395

3Q10

8.018

9M09

+13.8%

9.113

9M10

17,7

18,0

18,4

19,1

21,8

3Q09

4Q09

1Q10

2Q10

3Q10

49,8

9M09

59,3

9M10

27

CAPEX - % of Net Revenues R$ mm

2.7

2.9

3.1

% NR

5.0%

5.2%

5.0%

4%

5% 6%

15%

9.6 14.8%

6.0

6.0

8.3%

3.9%

2% 3%

18.7 9.3%

7%

11%

8%

26%

29%

16% 22%

17%

46% 4%

32%

5%

5% 61% 59%

46%

59%

Others 41%

63%

Office Settlement

38%

Platform Migration Technology 19% 12% 5%

3Q09

4Q09

1Q10

10%

10%

12%

2Q10

3Q10

9M09

9M10

Product Development

28

Other Highlights Adjusted earnings per share - R$

Shareholder Remuneration 0.5113 0.3494

0.1157 0.1266

0.1560 0.1577

0.1849

0.1718

Remuneration

Deliberation

Amount (R$mm)

Gross amount per share (R$)

Payment

1H09 ISE

Board Meeting 08/26/09

6.88

0.030939

09/15/09

2H09 ISE

Board Meeting 12/21/09

8.95

0.040025

01/13/10

2009 Dividend

Board Meeting 03/10/10

50.78

0.226862

05/17/10

1H10 ISE

Board Meeting 06/18/10

9.24

0.041207

07/12/10

2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 9M09 9M10

Note: As provided in the bylaws, dividend and/or ISE payment policy corresponds to at least 25% of adjusted net income in accordance with Brazilian law.

29

Shareholder Base

As of November 04, 2010

TOTAL SHARES: 226,290,645* ADVENT 18%

Federated (FEMCO) 13% FREE FLOAT 54%

ITAÚ UNIBANCO 9%

BRADESCO 4% SANTANDER 1% BOARD 1%

Outstanding options Potential future grants (*) Considers the capital increases in the period. FEMCO: Federated Management Company; parent Company for Federated Kauffman Fund.

5,704,659 shares 3,970,807 shares 30

Stock Performance CTIP3 (R$) vs. Volume (R$ mm)

CTIP3 vs. IBOV vs. BVMF

(Oct 27, 2009 – Nov 04, 2010)

(Oct 27, 2009 – Nov 04, 2010)

25.00 20.00

19.26

35

140

30

130

25 15.00 12.45

48%

26%

120

20 15

10.00 5.00 0.00

16%

110

10

100

5

90

0

29-Oct 14-Dec

1-Feb

17-Mar 30-Apr 14-Jun

27-Jul

8-Sep

21-Oct

80 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10

Volume - R$ mm

Price - R$

IBOV

CTIP3

BMFB

Note: Financial volume in the first trading session amounted to R$260 million and in the second trading session, R$80 million.

31

4. Appendix

32

DIs and CDBs - Volumes and Revenues -14.3%

DI – Volume (R$ billion)

DI – Revenue (R$ million)

2,876

+1.3%

+45.0%

26.5

+53.9%

2,465

885

701

814

756

18.3

-3.9%

+18.6%

11.4

896 4.8

3Q09 4Q09 1Q10 2Q10 3Q10 9M09 9M10

CDB – Volume (R$ billion)

7.7

4.9

7.4

3Q09 4Q09 1Q10 2Q10 3Q10 9M09 9M10

CDB – Revenue (R$ million) +19.0%

+38.9%

+31.3%

+ 25.9%

9.2

1176 +10.4%

316

362

339

398

7.7

934

439

3Q09 4Q09 1Q10 2Q10 3Q10 9M09 9M10

+4.5%

2.5

2.9

2.7

3.2

3.3

3Q09 4Q09 1Q10 2Q10 3Q10 9M09 9M10

33

Swaps - Volume and Revenue SWAPS – Quantity (thousand)

SWAPS – Revenue (R$ million)

-31.8%

+5.4%

+25.6%

234 -39.8%

67

3Q09

4Q09

-18.3%

141

-8.0%

67

10.0

47

49

45

1Q10

2Q10

3Q10

2.9

9M09

9M10

3Q09

4.2

4Q09

3.2

3.8

3.1

1Q10

2Q10

3Q10

8.0

9M09

9M10

34

Debentures and Fund Quotas - Volumes and Revenues Debentures – Volume (R$ billion)

Debentures – Revenue (R$ million)

+18.8%

266

3Q09

277

4Q09

288

1Q10

301

2Q10

+17.0%

317 260

3Q10

9M09

547

600

656

9M10

8.8

9.0

9.8

10.4 11.0

3Q09

4Q09

1Q10

2Q10

4Q09

+62.4%

713

2Q10

3Q10

9M09

9M10

+85.2%

+36.6%

7.9

680 +5.0%

497

1Q10

3Q10

Fund Quotas – Revenue (R$ million)

4.3 1.7

3Q09

25.9

+5.5%

+3.4%

690

31.1

304

Fund Quotas – Volume (R$ billion) +30.5%

+20.1%

+25.5%

+5.1%

9M09

9M10

3Q09

2.3

2.5

2.6

2.8

4Q09

1Q10

2Q10

3Q10

9M09

9M10

35

CIP – Revenue and Volume Processed EFTs

268

293

CIP – Revenue (R$ million)

359

300 323

328

262

+6.9%

+ 7.1%

+25.9%

61.6

+33.8%

49.0

+16.7%

17.4

18.4

18.3

20.0

23.3

3Q09

4Q09

1Q10

2Q10

3Q10

Processed EFTs (Quantity – MM)

9M09

+13.6%

9M10

6.6

6.6

6.6

6.2

7.0

3Q09

4Q09

1Q10

2Q10

3Q10

18.6

9M09

19.9

9M10

Processed EFTs/day (Quantity - thousand)

Note: Revenue refers only to services of SITRAF – Transfer Funds System.

36

Adjusted Operating Expenses Breakdown – % and R$ million +38.4%

+23.9%

18.9

55%

22.3

21.4

21.1

62%

66%

65%

26.2

56%

+21.4%

56.6

57%

68.7

61%

Personnel Outsourced services 15%

20%

15% 16%

14% 12%

7%

17%

16% 7%

14% 10%

4% 0%

8% 1% 3%

9% 1% 1%

11% 1% 0%

3Q09

4Q09

1Q10

2Q10

3Q10

Note: Personnel expenses include board members’ compensation.

Depreciation and amortization General

7%

Equipments and systems rental

5% 1%

12% 1% 1%

Others expenses/revenues & taxes and fees

9M09

9M10

7% 14% 1% 2%

11%

14%

37

Income Tax and Social Contribution

Quarter (R$ million) Income before taxes Income tax and social contribution (-) Tax credit (goodwill amortization) (=) IR+CSLL (ex-goodwill) % Effective income tax rate (cash)

3Q10

YTD

2Q10

9M10

9M09

50.6

41.1

134.9

77.1

(17.8)

(11.5)

(44.8)

(32.4)

3.3

3.3

10.0

0.0

(14.5)

(8.2)

(34.8)

(32.4)

29%

20%

26%

42%

38

Adjusted Cash Flow – R$ million 2Q10

Adjusted CF

3Q10

-9.5%

46.2

41.8

241.5* 210.7

39.7

06/30/2010

Operating

(6.0)

(3.5)

Investment

Financing

(*) Excluding the change in fair value – financial investments available for sale, valued at R$0.6 million

09/30/2010

39

Investor Relations [email protected]

Legal Disclaimer The forward-looking statements contained in this document relating to business prospects, projections of operating and financial results, and those related to the growth prospects of CETIP are merely estimates and as such are based exclusively on the Management’s expectations about the future of the business. These forward-looking statements depend substantially on the approvals and licenses necessary for the projects, market conditions, and performance of the Brazilian economy, the sector and international markets and hence are subject to change without prior notice. This performance report includes accounting data and nonaccounting data such as operating, pro forma financial data and projections based on the Management’s expectations. Non-accounting data has not been reviewed by the Company’s independent auditors.

40