PREVI :: Annual Report 2008

from the Executive Board from the Deliberative Body from the Audit Committee from Plano 1's Consultative Council from PREVI Futuro's Consultative Council

PREVI: Who we are, Mission, Vision, Values Composition of the Management

Investments Governance Management Social Security

Socioenvironmental responsibility Customer Service Risk Planning & Management

Benefit Plan 1 PREVI Futuro Benefit Plan CAPEC

Balance Sheet Result Statement Financial Flow Demonstration Asset and Result Statement - Benefit Plan 1 Asset and Result Statement - PREVI Futuro Benefit Plan Asset and Result Statement - Capec Benefit Plan

Independent Auditors Audit Committee Deliberative Body

Home :: Introduction

Before beginning the presentation of the 2008 Annual Activity Report, we must refer to the economic crisis that erupted in full force on the global level in the middle of the year. The impact this crisis had on the financial market and on the actual economy of the most diverse countries was so intense that it is difficult to find a place or a business that remained unscathed.

Analysts are reasonably unanimous with regard to the main causes of this crisis, the epicenter of which was the American real estate market. However, the intensity at which the effects radiated the world over is still amazing, and they have affected nearly all markets: credit, stock, commodities, consumption, labor, etc.

The crisis took a little longer to make landfall in Brazil, and there is good reason to believe that its impact around here will be less intense than it was, on average, around the world. Recent reports published by the OECD (Organization for Economic Cooperation and Development), which monitors the economy of the more developed countries, single Brazil out as the most resistant economy and as the one that might emerge from this process the least damaged. In any event, there are consequences, and they will indeed be felt.

This entire scenario impacted the Plans PREVI manages. The 2008 results reflect the loss in value of both the Plano 1 and the PREVI Futuro stock portfolios. The presentation and analysis of these results are this Report’s reason for being, and perhaps this year this information will merit even more attention from our members. We by no means intend to diminish the effects of the crisis, but we certainly do not want to scare anyone.

In the case of Plan 1, in spite of the relevant losses, both the surplus and financial health were maintained. Naturally, expectations regarding a new surplus were reversed, and even the discussion regarding the distribution of the 2007 surplus was suspended. But from the security and long-term vision viewpoint, the foundations remain positive.

In the PREVI Futuro case, we had lower-than-desired profitability due to the increased investment in the Variable Income segment as of late 2007 and because of reduced Fixed Income profitability on account of the securities being marked to market. However, considering the Plan still has a long accumulation term, these effects will be diluted and overcome in a short timeframe.

Furthermore, it is worthwhile to mention that we included brief testimonials of participants, in addition to the opinions of a few specialists about the many ways one can deal with their personal finances in this publication. This is yet another step we took to approaching Financial and Social Security Education issues. This matter is alive in all participants’ daily lives.

We invite all members to read this Report carefully. Although the results are not as positive as we had gotten used to see in the past few years, we are convinced that good and bad moments both require the same transparency, participation, and the same commitment to overcome as always.

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