BA

NC

OE

SP

IRIT

OS

AN

TO

Esp

irit

oS

anto

Inte

rnat

ional

S.A

.R

atin

gJu

ly20

12

Contents

1.E

xecutiveS

umm

ary

2.E

spIritoS

anto

InternationalC

ompany

Presen

tation

3.S

PV

Rating

Tool

Presen

tation

4.P

arameters

used

inthe

assessmen

tof

ESI

rating

5.A

nnexes

Exe

cuU

veS

umm

ary

The

pre

sent

stud

yai

ms

toas

sess

the

ratin

gof

Esp

Irito

San

toIn

tern

atio

nal

S.A

.(“

ES

I”).

For

this

purp

ose

the

SP

VR

atin

gT

ool

was

appl

ied.

Thi

sM

odel

isem

ploy

edby

the

Glo

bal

Ris

kD

epar

tmen

tof

Ban

coE

spIr

ito

San

to(“

GR

D”)

inor

der

toas

sign

rati

ngs

tofi

nanc

ial

hold

ings

.

The

rati

ngdr

iver

ofa

fina

ncia

lho

ldin

gis

the

rela

tion

ship

betw

een

the

valu

eof

the

unde

rlyi

ngin

vest

men

ts—

adju

sted

/str

esse

dby

itspo

tent

ial

dec

reas

edu

eto

the

unce

rtai

nty

ofits

valu

ein

the

futu

re—

and

the

debt

ofth

esp

ecif

icen

tity.

The

inve

stm

ents

valu

ead

just

men

tis

bas

edup

onre

turn

san

dre

spec

tive

vola

tility

,an

dal

soin

corp

orat

esth

eco

rrel

atio

nbe

twee

nth

eas

sets

valu

es.

The

info

rmat

ion

inco

rpor

ated

inth

era

ting

asse

ssm

ent

was

bas

edup

on:

(I)in

form

atio

nse

nt

byE

SI;

(ii)

publ

icin

form

atio

nre

gard

ing

ESI

and

itssu

bsid

iari

es;

(iii)

the

inte

rnal

GR

Dex

pert

ise

abou

tth

ein

dust

ries

inw

hich

ESI

indi

rect

lyde

velo

psits

acti

viti

es.

Ret

urns

,vo

latil

ityan

dco

rrel

atio

npa

ram

eter

sem

ploy

edin

the

rati

ngas

sess

men

tof

ESI

wer

e

obta

ined

usin

ga

sam

ple

ofpee

rco

mpa

nies

*.H

owev

er,

and

give

nth

ein

exis

tenc

eof

liste

dpe

er

com

pani

esfo

rR

ioF

orte

,an

dgi

ven

the

atyp

ical

evol

utio

nof

stoc

km

arke

tsin

the

last

year

s,se

vera

l

*S

eeA

nnex

lit

Executive

Sum

mary

scenario

sw

erecalculated,

incorporatingdifferent

assum

ptio

ns

forreturns,

volatilityand

correlation

parameters*.

The

estimated

ratingof

Espirito

Santo

Internationalis

inbetw

een[bb;

bb-j,w

hichco

rrespo

nd

sto

a

PDof

[0,63%;

1,10%).

*See

Annex

II

1

Con

tent

s

1.E

xecu

tive

Sum

mar

y

2.E

spin

toS

anto

Inte

rnat

ional

Com

pan

yP

rese

nta

tion

3.S

PV

Rat

ing

Too

lP

rese

ntat

ion

4.P

aram

eter

sus

edin

the

asse

ssm

ent

ofE

SIra

ting

5.A

nnex

es

‘.j

;•

S

5•5

-5.

-

• ..*•.

..2’

•

SII

çI-

-..,

-:S

EspIrito

San

toInternacional

Com

panyP

resentatio

n

EspIrito

Santo

International,S.A

.(“ESI”)

was

incorporatedunder

thelaw

ofL

uxembourg

andis

subjectto

thelegislation

governingfinancial

holdingcom

panies(SoparfI).

The

activityof

ESI

islim

itedto

monitoring

theperform

anceof

itsinvestm

ents.E

SIthus

man

ages

itscapital

structurein

accordancew

iththe

needto

reinforceor

lightenits

investment

portfolioand

the

needto

supportthose

investments,

eitherthrough

loansor

capitalcontributions.

ESI

main

assetsare:

(i)35%

ofE

spIritoS

antoF

inancialG

roup,S.A

.(“E

SFG”),

directlyheld,

and

another10%

more,

indirectlyheld

throughE

SR

esourcesL

imited.

ES

FG

holdsinterests

infinancial

servicescom

panies,nam

elycom

mercial

bankingand

investment,

insurancecom

paniesand

healthcareproviders;

and(ii)

100%of

Rio

Forte

Investments,

S.A.

(“Rio

Forte”),w

hoseinvestm

ents

enco

mpass

variousnon

financialsectors,

includingreal

estate,construction,

leisure,agriculture

and

renewable

energies,as

well

asholdings

inother

diversifiedcom

panies.

iT

he2011

financialstatem

ents

ofE

SIw

asrevised

byC

omm

issaire

Machado

daC

ruz),w

hichprovided

anunqualified

opinion.

auxC

omples

(Francisco

a’3

t•-

,c

•

..?•‘

—r

S.)

SP

VR

atin

gT

ool

Pre

sent

atio

n

The

“SP

yR

atin

gT

ool”

or“F

inan

cial

Hol

ding

sM

odel

”w

asde

velo

ped

byB

anco

Esp

Irit

oS

anto

in

2008

,w

ithth

ead

viso

ryof

Oli

ver

Wym

an,

and

aim

sto

assi

gn

rati

ngs

toen

titi

esth

atfo

cus

thei

r

acti

viti

esin

the

inve

stm

ent

and

man

agem

ent

offi

nanc

ial

inve

stm

ents

(“fi

nanc

ial

hold

ings

”).

The

rati

ngdr

iver

toas

sess

solv

ency

and

assi

gn

ara

ting

toa

fina

ncia

lho

ldin

gis

the

rela

tion

ship

betw

een

the

valu

eof

the

unde

rlyi

ngin

vest

men

ts—

adju

sted

/str

esse

dby

itspo

tent

ial

dec

reas

edu

eto

the

unce

rtai

nty

ofits

valu

ein

the

futu

re—

and

the

debt

ofth

esp

ecif

icen

tity.

The

mai

nin

puts

ofth

atM

odel

are:

Ass

ets

char

acte

rist

ics:

Fai

rva

lue

ofas

sets

held

and

corr

espo

ndin

gra

ting

s;

Exp

ecte

dre

turn

ofas

sets

and

indu

stry

;

Vol

atili

tyof

asse

tsan

din

dust

ry;

Cor

rela

tion

ofre

turn

s;

Fin

anci

alli

abil

itie

sch

arac

teri

stic

s:

Tot

alH

oldi

ng’s

fina

ncia

llia

bilit

ies;

Contents

1.E

xecutiveS

umm

ary

2.E

spIritoS

antoInternational

Com

panyP

resentation

3.S

PV

Rating

Tool

Presen

tation

4.P

arameters

usedin

theassessm

ent

ofESI

rating

5.A

nnexes

SP

VR

atin

gT

ool

Pre

sent

atio

n

Thi

sse

ctio

nis

eith

ercl

assi

fied

as“R

elev

ant”

(itth

esh

areh

old

er/s

ponso

rh

asfi

nanc

ial

capa

city

and

ast

rong

stra

tegi

cin

tere

stin

the

Hol

ding

,w

hich

lead

sto

ast

rong

ince

ntiv

eto

supp

ort

itin

a

stre

ssfu

lsi

tuat

ion)

or“N

onR

elev

ant”

(ifit

isno

tth

eca

se).

The

qual

itat

ive

fact

ors

pre

sen

ted

inth

epr

evio

usse

ctio

nm

ayim

prov

eth

e“s

olve

ncy

scor

e”up

to

two

notc

hes

(tha

tis

from

the

“Sup

port

and

fina

ncia

lca

paci

tyof

shar

eho

lder

s/sp

on

sors

”)or

dec

reas

e

itto

the

wor

stra

ting

inth

esc

ale

(“cc

c”,

inth

eca

seth

at“C

ompl

exit

yan

dA

sset

Tra

nspa

renc

y”is

“Hig

hly

Opa

que’

).

-,

-S

.

•t1•

SP

yR

atingT

oolP

resentatio

n

iF

inancialliabilities

characteristics:(continued)

Financial

liabilities’characteristics:

(i)spread;

(ii);covenants;

(iii)cross-default

clauses;pan

passu;negative

pledge.

Based

uponthe

mentioned

inputs,the

SP

VR

atingTool

runsM

onteC

arlosim

ulations*,w

hichaim

toestim

atethe

probabilityof

holdingasset’s

valuebeing

lower

thanits

financialliabilities.

Fromthe

resultof

these

simulations

thesolvency

scoreis

obtained.

The

finalrating

features

thesolvency

scoreas

astarting

point,but

incorporatesother

qualitativefactors

inaddition:

Com

plexityand

transparencyof

assetsheld

bythe

Holding

—w

iththe

objectiveof

assessing

ifthe

existinginform

ationregarding

itsassets

isclear

andupdated.

This

sectionis

classified

intofive

possiblecateg

ories:

(i)T

ransparent;(ii)

Not

fullytransparent;

(iii)P

artiallyopaque;

(iv)

Significantly

op

aque;

(v)H

ighlyopaq

ue;

Support

andfinancial

capacityfrom

shareh

old

ers/spo

nso

rs—

inthis

sectionthe

financial

capacityand

theincentive

thatthe

sponso

rshave

tosupport

theH

oldingin

astressful

situation

isevaluated.

*Sim

uIationsate

based

uponthe

Merton

Model.

See

“Methodological

Fram

ework

SP

VR

atingT

ool”,accom

panyingthis

document.

Par

amet

ers

used

inth

eas

sess

men

tof

ESI

ratin

g

The

esti

mat

edra

ting

ofE

spIr

ito

San

toIn

tern

atio

nal

isin

betw

een

[bb;

bb-J

,w

hich

corr

esp

on

ds

toa

PDof

[0,6

3%;

1,10

%].

The

follo

win

gp

aram

eter

sw

ere

use

dth

roug

hout

ES

I’s

rati

ngas

sig

nm

ent

pro

cess

:

Ass

ets

char

acte

rist

ics:

100%

ofR

ioF

orte

,va

lued

ata

lair

valu

eof

EU

R1.

234

mill

ion.

The

inte

rnal

rati

ng

assi

gned

toR

ioF

orte

isb+

;

35%

ofE

SF

G,

valu

edat

afa

irva

lue

ofE

UR

1.28

7m

illio

n.T

hein

tern

alra

ting

assi

gn

ed

toE

SF

Gis

bbb-

(S&

P:N

R;

Moo

dy’s

:B

2;D

BR

S:

BB

B-)

;

Bot

hR

ioF

orte

and

ES

FG

wer

ecl

assi

fied

as“P

riva

teC

ompa

nies

”.In

the

case

ofE

SF

G,

this

isju

stif

ied

byth

efa

ctth

atit

isco

nsid

ered

that

ahy

poth

etic

alsa

leof

such

equi

tyst

ake

byE

SIw

ould

not

beac

com

plis

hed

thro

ugh

asa

leof

shar

esin

the

stoc

km

arke

t.

Ass

etan

din

dust

ryre

turn

s,vo

latil

ityan

dco

rrel

atio

nw

ere

calc

ulat

edus

ing

mar

ket

data

,

bas

edup

ontw

o“p

eer

grou

ps”

ofco

mp

anie

sco

mpa

rabl

eto

Rio

For

tean

dE

SF

G*.

*See

Ann

exIII

••‘

4,.

••

-

•:Y

.’

••

Contents

1.E

xecutiveS

umm

ary

2.E

spIritoS

antoInternational

Com

panyP

resentation

3.S

PV

Rating

Tool

Presentation

4.P

arameters

used

inth

easse

ssment

ofE

SIratin

g

5.A

nnexes

-

IL.

-

f..

Par

amet

ers

use

din

the

asse

ssm

ent

ofE

SIra

ting

.R

egar

ding

the

qual

itat

ive

ques

tion

s,th

ese

wer

eev

alua

ted

inth

efo

llow

ing

way

:

Com

plex

ity

and

Tra

nsp

aren

cy—

itw

asco

nsid

ered

as“T

rans

pare

nt”,

give

nth

atth

ere

isa

dee

pkn

owle

dge

ofE

SIas

sets

.T

his

clas

sifi

cati

ondi

dno

tle

adno

any

adju

stm

ent

ofth

e

“sol

venc

ysc

ore”

;

Cap

acit

yan

dfi

nanc

ial

flex

ibili

tyof

shar

eho

lder

s/sp

onso

rs—

itw

ascl

assi

fied

as

“Rel

evan

t”,

give

nth

atth

eydo

have

fina

ncia

lca

paci

tyan

da

stro

ngst

rate

gic

inte

rest

in

ESI

,le

adin

gto

ast

rong

ince

ntiv

eto

supp

ort

the

com

pany

inth

ehy

poth

etic

alsi

tuat

ion

ofa

fina

ncia

lst

ress

.To

this

poin

t,it

was

also

cons

ider

edth

elo

ngtr

ack

reco

rdan

dth

e

hist

oric

alab

ility

tora

ise

fund

sei

ther

thro

ugh

debt

orth

roug

heq

uity

.T

his

clas

sifi

cati

onle

d

toa

one

notc

hup

lift

ofth

e“s

olve

ncy

scor

e”;

At

last

,it

shou

ldbe

note

dth

at,

bas

edup

onth

epr

evio

usin

puts

,th

eca

lcul

atio

nof

ESI

’sra

ting

was

calc

ulat

edth

roug

hth

eru

nnin

gof

100.

000

Mon

teC

arlo

sim

ulat

ions

.

çt

71

-.

&‘.

Param

etersused

nth

eassessm

ent

ofE

SIraU

ng

Itwasn’t

consid

eredin

thetotal

assetsvalue

ofE

SIthe

equityheld

andad

van

cesm

adeto

EspIrito

San

toR

esources

Lim

ited(“E

SR”),

inthe

amount

of95

million

Euros

and630

million

Euros,

respectively.Instead,

thistotal

amount

was

ded

ucted

fromE

SI’sfinancial

liabilities,given

theC

omfort

Letter*

issuedfrom

major

shareh

old

ersof

ESI

(EspIrito

Santo

Control,

S.A

.,“E

SC”),

ensuringthat

theloans

grantedto

ES

Rby

ESI

will

always

bereim

bursedeven

ifits

assetsare

insufficientto

settledow

nall

comm

itments.

Note

thatE

SIand

ES

Cplan

toaccom

plishthe

phase

outof

ES

Runtil

finalclosing

ofthis

company.

mE

SIF

inancialL

iabilitiescharacterization:

The

amount

ofE

Sl’s

financialliabilities

consid

eredin

therating

assessmen

tw

asE

UR

1.754m

illion.T

heco

verag

eratio

between

theassets’

fairvalue

andfinancial

liabilitiesis

144%;

Itw

asco

nsid

eredthe

following

characteristics

offinancial

liabilities:(i)

spread

of4,5%

overE

uribor;(ii)

nonex

istence

ofcovenants;

Existence

ofcro

ssdefault,

negativepledge

andpari-p

assuclau

ses.

*See

Annex

VI

Conte

nts

1.E

xecu

tive

Sum

mar

y

2.E

spIr

ito

San

toIn

tern

atio

nal

Com

pany

Pre

sent

atio

n

3.S

Py

Rat

ing

Tool

Pre

sent

atio

n

4.P

aram

eter

sus

edin

the

asse

ssm

ent

ofE

SIra

ting

5.A

nnex

es

Annex

I—

Consid

erations

regardingth

eE

xecu

tedS

cenario

s(1/2)

Regarding

stockm

arketvaluation

ofthe

com

pan

iescom

prisingthe

peer

groups,data

fromJu

ne

2000to

June

2007w

ascollected,

sinceit

isconsidered

thatfrom

thisdate

onward

thestock

markets

hadan

atypicalbehavior

dueto

severalfactors

(e.g.:sub-prim

ecrisis,

Lehm

anB

rothersbankruptcy;

sovereigndebt

crisis).

.G

iventhe

inexistenceof

peer

listedco

mpan

iesfor

Rio

Forte,

itw

asdecided

tosim

ulatedifferent

scenario

sin

orderto

calculateE

SI’srating.

These

scenario

sw

erebased

upondifferent

assum

ptio

ns

regardingreturns,

volatilityand

correlationparam

eters.

iR

eturns—

were

calculatedin

thefollow

ingm

anner:(I)

evolutionof

stocksin

theperiod

Jun2000-]un200Z;

(ii)R

eturnon

equityfor

theperiod

2000-2011—

inboth

situationsreturns

were

calculatedusing

arithmetic

mean

sand

weighted

averag

esusing

them

arketcap

of

com

pan

iesthat

make

partof

peer

groups.

Inthe

caseof

Rio

Forte,

andtaking

intoacco

unt

itslarge

industrydiversification,

industry

averag

esw

erecalculated,

which

were

weighted

afterwards

based

onthe

weight

ofeach

industryin

thecom

positionof

adjustedR

ioF

orteN

etA

ssetV

alue(N

AV

)(C

onstructionand

Renew

ableE

nergy—

18%,

Real

Estate

—54%

,leisure

—19%

andH

ealthcare—

9%).

:?

.:•

Ann

exI —

Consi

der

atio

ns

rega

rdin

gth

eE

xecu

ted

Sce

nar

ios

(2/2

)

Vol

atili

ty—

itw

asus

edth

evo

latil

ityas

soci

ated

tost

ocks

that

com

pris

eth

epe

ergr

oups

inth

eJu

n200

0-Ju

n200

7pe

riod

.B

oth

arit

hmet

icm

eans

and

wei

ghte

dav

erag

esth

atus

eth

em

arke

tca

pw

ere

calc

ulat

ed.

Inth

eca

seof

Rio

For

te,

and

inad

diti

onto

wei

ghti

ngea

chse

ctor

inth

eco

mpo

siti

onof

adju

sted

NA

V,

the

corr

elat

ions

betw

een

diff

eren

tin

dust

ries

*w

ere

incl

uded

.A

dditi

onal

ly,

ase

nsit

ivit

ysc

enar

iofo

rth

ispar

amet

erw

asru

n.

iT

heco

rrel

atio

nsus

edbe

twee

nE

SF

Gan

dR

ioF

orte

wer

ebas

edup

onco

rrel

atio

nsca

lcul

ated

betw

een

the

resp

ecti

vepee

rgr

oups

(46%

and

43%

for

the

arit

hmet

icm

eans

and

mar

ket

cap

wei

ghte

dav

erag

es,

resp

ecti

vely

).

*See

Ann

exIV

.

•.

p—

•..

•

4

:L•;•••

••.

‘•;

)1•

..

.P

•

:1

J•

1•

•.

An

nex

II—

Sum

mary

of

Accom

plished

Resu

lts

Param

eters:R

eturn

san

dv

olatilities

were

calculated

ES

FG

90%correlation

between

Real

Estate

andC

onstructionw

asused

forR

ioForte;

43%correlation

between

Real

Estate

and

Construction

was

usedfor

Rio

Forte;

usin

garith

metic

av

era

g.

46%co

rrelation

betw

enR

ioF

orte

and

Rio

Fo

rteE

SF

GS

olv

ency

So

lven

cyF

inalR

eturn

Volatility

Volatil.

Retu

rnV

olatil.R

eturn

PD

Ratin

gR

ating*

90%correlation

between

Real

Estate

and1

84

%11,8%

26,3%6,9%

1,31%bb-

bb

Equity

Returns

Construction

was

usedfor

Rio

Forte;

2000-200735%

correlationbetw

eenR

ealE

stateand

16,9%11,8%

26,3%6,9%

1,08%bb-

bb

Construction

was

usedfor

Rio

Forte;

90%correlation

between

Real

Estate

and18,4%

11,3%26,3%

12,4%1,03%

bb-bb

Construction

was

usedfor

Rio

Forte;R

OE

2000-201135%

correlationbetw

eenR

ealE

stateand

16,9%11,3%

26,3%12,4%

0,84%bb-

bb

Construction

was

usedfor

Rio

Forte;*

One

notchupllft

Param

eters:R

eturn

san

dvo

latilitiesw

erecalcu

latedusin

gav

erages

weig

hted

byth

em

arket

capof

the

com

pan

iesth

at

mak

epart

ofth

peer

gro

up.

43%co

rrelation

betw

enR

ioF

orte

and

ES

FG

Rio

Fo

rteE

SF

GS

olv

ency

So

lven

cyF

inalR

eturn

Volatility

Volatil.

Retu

rnV

otatil.R

eturn

PD

Ratin

gR

ating*

90%correlation

between

Real

Estate

and18,2%

15,3%28,9%

4,1%1,58%

b-i-b

bE

quityR

eturnsC

onstructionw

asused

forR

ioForte;

2000-200743%

correlationbetw

eenR

ealE

stateand

16,9%15,3%

28,9%4,1%

1,30%bb-

bb

Construction

was

usedfor

Rio

Forte;

RO

E2000-2011

One

notchuplift

18,2%13,7%

28,9%13,2%

16,9%13,7%

1,13%bb

28,9%13,2%

0,89%bb

-..

-,

—:.

Ann

exIll

—P

eer

Gro

upR

ioF

orte

(1/2

)P

aram

eter

sca

lcula

tion

thro

ug

har

ithm

etic

aver

ages

Com

pan

yIn

du

stry

RO

E20

00-2

011

(J007)

Vol

atil

ity

MO

TA

EN

GIL

SG

PS

Con

stuc

tion

11,8

2%19

,02%

25,8

5%S

OA

RE

SD

AC

OS

TA

Con

stuc

tion

3,32

%19

,82%

38,5

1%T

EIX

EIR

AD

UA

RT

EC

onst

ucti

on7,

38%

1,71

%30

,08%

Abe

ngoa

SAC

onst

ucti

on19

,84%

19,8

5%32

,94%

AC

SA

ctiv

idad

esde

Con

stru

ccio

ny

Ser

vic

Con

stuc

tion

29,3

7%22

,33%

17,8

3%A

ccio

naSA

Con

stuc

tion

24,5

3%23

,50%

20,1

1%F

omen

tode

Con

stru

ccio

nes

yC

ontr

atas

SAC

onst

ucti

on16

,03%

14,4

8%21

,11%

Gru

poFe

rrov

ial

SAC

onst

ucti

on3,

82%

17,5

9%21

,72%

Sac

yrV

alle

herm

oso

SAC

onst

ucti

on12

,80%

10,2

4%40

,42%

OH

LSA

Con

stuc

tion

17,4

8%23

,68%

30,3

0%U

niba

il-R

odam

coS

ER

eal

Est

ate

14,2

3%19

,57%

21,3

4%E

uroc

omm

erci

alP

rope

rtie

sN

VR

eal

Est

ate

9,62

%10

,28%

15,7

8%V

astn

edR

etai

lN

VR

eal

Est

ate

9,85

%6,

36%

16,5

1%C

orp

Der

moe

stet

jca

SAH

ealt

hcar

e1,

57%

2,95

%27

,85%

Orp

eaH

ealt

hcar

e11

,63%

29,8

0%24

92%

IBE

RSO

LL

eisu

re18

,37%

11,8

8%20

,87%

Acc

orSA

Lei

sure

17,5

0%6,

08%

29,0

0%M

elia

Hot

els

Inte

rnat

iona

lSA

Lei

sure

7,21

%3,

57%

32,0

9%N

HH

otel

esSA

Lei

sure

7,73

%5,

16%

25,1

0%C

lub

Med

iter

rane

eL

eisu

re-4

,70%

-13,

31%

43,7

9%P

ierr

e&

Vac

ance

sSA

Lei

sure

16,4

1%8,

29%

32,3

0%C

onst

ruct

ion

Indu

stry

Ave

rage

14,6

%17

,2%

27,9

%R

eal

Est

ate

Indu

stry

Ave

rage

11,2

%12

,1%

17,9

%H

ealt

hcar

eIn

dust

ryA

vera

ge6,

6%16

,4%

26,4

%L

eisu

reIn

dust

ryA

vera

ge10

,4%

3,6%

30,5

%

Rio

Fort

e’s

Pee

rW

eig

hte

dA

ver

age

wit

hC

orr

elat

ions

(i)(ii

)(ii

i)11

,3%

11,8

%16

,9%

Rio

For

te’s

Pee

rW

eigh

ted

Ave

rage

wit

hC

orr

elat

ions

fi)(ii

)fv

)11

,3%

11,8

%18

,4%

Sou

rce:

Blo

ombe

rg(I)

Adj

uste

dav

erag

ein

corp

orat

ing

the

wei

ght

ofea

chin

dust

ry(c

onsi

deri

nglis

ted

peer

s)in

the

com

posi

tion

ofR

ioF

orte

sN

etA

sset

Val

ue(N

Ay)

,na

mel

y:(a

)C

onst

ruct

ion

and

Ren

ewab

leE

nerg

y—

18%

;(b

)R

eal

Est

ate

—54

%;

(c)

Lei

sure

—19

%;

and

(d)

Hea

fthc

are

—9%

.

ii)G

iven

that

Fort

eR

iopr

esen

tsa

dive

rsif

ied

busi

ness

port

folio

,th

evo

latil

ityto

okin

toco

nsid

erat

ion

the

corr

elat

ions

betw

een

the

indu

stri

esin

whi

chR

ioFo

rte

oper

ates

.(ii

i)In

dica

tor

base

dup

onth

eun

derl

ying

corr

elat

ion

of35

%be

twee

nth

eC

onst

ruct

ion

and

Rea

lE

stat

e,af

ter

som

est

atis

tica

lca

lcul

atio

ns.

(v)

Indi

cato

rth

atha

sun

derl

ying

corr

elat

ion

betw

een

the

Con

stru

ctio

nan

dR

eal

Est

ate

90%

(ove

rrid

e).

A

A

Annex

III—

Peer

Group

Rio

Forte

(2/2)

Source:

Bloom

berg

Para

mete

rscaIc

uIa

ton

thro

ug

hM

ktC

apW

eigh

tedA

verag

es

*A

vgM

tC

apJan2000-Jun

2007

(I)A

djustedaverage

incorporatingthe

weight

ofeach

industry(considering

listedpeers)

inthe

composition

ofR

ioF

ortesN

etA

ssetV

alue

(NA

y),nam

ely:(a)

Construction

andR

enewable

Energy—

18%;

(b)R

ealE

state—

54%;

(c)L

eisure—

19%;

and(d)

Healthcare

—9%

.

(ii)G

iventhat

ForteR

iopresents

adiversified

businessportfolio,

thevolatility

tookinto

considerationthe

correlationsbetw

eenthe

industries

inw

hichR

ioForte

operates.

Weight

inthe

RO

EE

quityR

eturn

sC

ompany

IndustryM

arketC

ap*Industry

¾2000-2011

Jun

2000-Jun2007

Volatility

MO

TA

EN

GIL

SG

PS

Construction

534,51,7%

11,8%19,02%

25,85%S

CA

RE

SD

AC

OS

TA

Construction

103,70,3%

3,3%19,82%

38,51%T

EO

<EIR

AD

UA

RT

EC

onstruction535,0

1,7%7,4%

1,71%30,08%

AbengoaS

AC

onstruction1.113,3

3,6%19,8%

19,85%32,94%

AC

SA

ctividadesde

Construccion

yServic

Construction

6.751,421,9%

29,4%22,33%

17,83%A

ccionaSA

Construction

5.367,417,4%

245%23,50%

20,11%

Fom

entode

Construcciones

yC

ontratasSA

Construction

4.874,115,8%

16,0%14,48%

21,11%

Grupo

FerrovialSA

Construction

6.219,220,1%

3,8%17,59%

21,72%S

acyrV

allehermoso

SAC

onstruction4.438,4

14,4%12,8%

10,24%40,42%

OH

LSA

Construction

955,13,1%

17,5%23,68%

30,30%

Unibail-R

odamco

SE

Real

Estate

5.357,575,7%

14,2%19,57%

21,34%

Eurocom

mercial

Properties

NV

Real

Estate

868,412,3%

96%10,28%

15,78%

Vastned

Retail

NV

Real

Estate

846,712,0%

9,8%6,36%

76,51%

Corp

Derm

oesteticaSA

Healthcare

330,126,5%

1,6%2,95%

27,85%

Orpea

Healthcare

915,173,5%

11,6%29,80%

24,92%

IBE

RSO

LL

eisure110,9

0,8%18,4%

11,88%20,87%

Accor

SAL

eisure8.783,2

65,8%17,5%

6,08%29,00%

Melia

Hotels

InternationalSA

Leisure

1.637,5123%

7,2%3,57%

32,09%

NH

Hoteles

SAL

eisure1.406,1

10,5%7,7%

5,16%25,10%

Club

Mediterranee

Leisure

810,16,1%

-4,7%-13,31%

43,79%

Pierre

&V

acancesSA

Leisure

595,94,5%

16,4%8,29%

32,30%

Construction

IndustryA

verage17,4%

18,1%24,1%

Real

Estate

IndustryA

verage13,1%

16,8%20,1%

Healthcare

IndustryA

verage9,0%

22,7%25,7%

Leisure

IndustryA

verage13,8%

4,6%29,9%

Rio

Fo

rte’sP

eerW

eightedA

veragew

ithC

orrelatio

ns

(I)(ii)

(iii)13,7%

15,3%16,9%

Rio

Forte’s

Peer

Weighted

Average

with

Correlatio

ns

(I)(ii)

(v)13,7%

15,3%18,2%

(iii)Indicator

basedupon

theunderlying

correlationof

43%betw

eenthe

Construction

andR

ealE

state,after

some

statisticalcalculations.

(v)Indicator

thathas

underlyingcorrelation

between

theC

onstructionand

Real

Estate

90%(override).

r.

Ann

exIII

—P

eer

Gro

upE

SF

G(2

/2)

Par

amet

ers

calc

ula

tio

nth

rough

Mkt

Cap

Wei

gh

ted

Aver

ages

Wei

ght

inR

OE

Equ

ity

Ret

urn

sC

ompa

nyS

ecto

rM

arke

tC

apV

olat

ilit

yth

eIn

dust

ry20

00-2

011

Jun

2000

-Jun

2007

BC

P‘R

’B

anki

ng8.

569,

01,

7%13

,4%

-1,2

%27

,8%

BA

NC

OE

SP

R.S

AN

TO

Ban

king

4.52

0,6

0,9%

10,6

%6,

2%14

,5%

BA

NC

OB

PIB

anki

ng2.

633,

00,

5%12

,2%

10,1

%20

,6%

BA

NIF

R’

Ban

king

511,

60,

1%7,

9%23

,0%

27,4

%E

SPIR

ITO

SAN

TO

FIN

L.B

anki

ng1.

156,

10,

2%11

,1%

13,8

%19

,3%

Ban

coB

ilbao

Viz

caya

Arg

enta

ria

SAB

anki

ng47

.661

,29,

3%16

,4%

2,7%

26,6

%

Ban

kint

erS

AB

anki

ng3.

183,

70,

6%12

,5%

4,5%

27,1

%

Ban

coE

span

olde

Cre

dito

SAB

anki

ng8.

195,

11,

6%15

,8%

2,4%

21,3

%

Ban

coP

opul

arE

span

olSA

Ban

king

11.2

13,2

2,2%

17,4

%9,

9%15

,0%

Ban

code

Sab

adel

lSA

Ban

king

5.82

2,3

1,1%

12,3

%10

,3%

19,0

%

Ban

coS

anta

nder

SA

Ban

king

59.8

88,0

11,6

%13

,3%

3,7%

27,9

%

BN

PP

arib

asSA

Ban

king

50.0

38,3

9,7%

14,1

%8,

1%24

,6%

Cre

ditA

gric

ole

SAB

anki

ng33

.027

,26,

4%7,

3%10

,1%

24,6

%

Cre

dit

Lyo

nnai

sSA

Ban

king

14.5

86,1

2,8%

12,2

%3,

7%35

,6%

Dex

iaSA

Ban

king

18.8

16,5

3,7%

10,8

%5,

8%27

,4%

Gro

upe

Bru

xelle

sL

ambe

rtSA

Ban

king

8.81

7,1

1,7%

5,4%

9,5%

22,1

%

ING

Gro

epN

VB

anki

ng56

.440

,111

,0%

17,5

%-1

,1%

33,1

%

KB

CG

roep

NV

Ban

king

19.6

97,7

3,8%

9,8%

11,1

%21

,6%

Soc

iete

Gen

eral

eSA

Ban

king

34.5

17,6

6,7%

12,1

%11

,2%

26,1

%

RB

SH

oldi

ngs

NV

Ban

king

38.3

35,6

7,4%

19,0

%6,

6%31

,5%

Map

ireS

AIn

sura

nce

2.83

8,7

0,6%

14,1

%18

,9%

26,0

%

Aeg

onN

VIn

sura

nce

27.2

42,4

5,3%

9,2%

-12,

8%43

,5%

Alli

anz

Fra

nce

SAIn

sura

nce

11.5

75,2

2,2%

14,4

%11

,5%

32,0

%

AX

ASA

Insu

ranc

e45

.578

,28,

9%9,

3%-3

,1%

37,0

%

Secto

rsA

ver

age

13,2

%4,

1%28

,9%

Sou

rce:

Blo

ombe

rg*

Avg

Mkt

Cap

Jan2000-J

un

20

07

•.,

.•

UC

•

Annex

ill—

Peer

Group

ES

FG

(1/2)

Param

eterscalcu

lation

thro

ug

harith

metic

avera

ges

Com

pan

yIn

dustry

RO

E2000-201

1(JO

OO

7)

Volatility

BC

PB

anking13,4%

-1,2%27,8%

BA

NC

OE

SP

R.S

AN

TO

Banking

10,6%6,2%

14,5%B

AN

CO

BPI

Banking

12,2%10,1%

20,6%B

AN

IFB

anking7,9%

23,0%27,4%

ES

PIR

tFO

SAN

TO

FINL.

Banking

11,1%13,8%

19,3%B

ancoB

llbaoV

izcayaA

rgentariaSA

Banking

16,4%2,7%

26,6%B

ankinterSA

Banking

12,5%4,5%

27,1%B

ancoE

spanolde

Credito

SAB

anking15,8%

2,4%21,3%

Banco

Popular

Espanol

SAB

anking17,4%

9,9%15,0%

Banco

deS

abadellSA

Banking

12,3%10,3%

19,0%B

ancoS

antanderSA

Banking

13,3%3,7%

27,9%B

NP

Paribas

SAB

anking14,1%

8,1%24,6%

Credit

Agricole

SAB

anking7,3%

10,1%24,6%

Credit

Lyonnais

SAB

anking12,2%

3,7%35,6%

Dexia

SAB

anking10,8%

5,8%27,4%

Groupe

Bruxelles

Lam

bertSA

Banking

5,4%9,5%

22,1%IN

GG

roepN

VB

anking17,5%

-1,1%33,1%

KE

CG

toepN

VB

anking9,8%

11,1%

21,6%S

ocieteG

eneraleSA

Banking

12,1%11,2%

26,1%R

BS

Holdings

NV

Banking

19,0%6,6%

31,5%M

apireS

AInsurance

14,1%18,9%

26,0%A

egonN

VInsurance

9,2%-12,8%

43,5%A

ilianzF

ranceSA

Insurance14,4%

11,5%32,0%

AX

ASA

Insurance9,3%

-3,1%37,0%

Secto

r’sA

verag

e12,4%

6,9%26,3%

Source:

Bloom

berg

l•’.-

-..,

_‘;‘

.

41

iC

Ann

exV

Rat

ing

Sca

lean

dP

roba

bili

ties

ofD

efau

lt

Rat

ing

Aver

age

PDM

inP

OM

axP

D

aaa

0,00

1%0,

000%

0,00

2%aa

+0,

003%

0,00

2%0,

005%

aa0,

008%

0,00

5%0,

011%

aa-

0,01

5%0,

011%

0,02

5%a+

0,04

0%0,

025%

0,04

5%a

0,05

0%0,

045%

0,05

5%

a0,

060%

0,05

5%0,

095%

bbb+

0,15

0%0,

095%

0,16

9%bbb

0,19

0%0,

169%

0,21

8%

bbb-

0,25

0%0,

218%

0,31

6%

bb+

0,40

0%0,

316%

0,50

2%

bb0,

630%

0,50

2%0,

832%

bb-

1,10

0%0,

832%

1,46

8%

b+1,

960%

1,46

8%3,

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b5,

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3,20

2%6,

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b-7,

580%

6,29

6%13

,930

%

ccc

25,6

00%

13,9

30%

100,

000%

:Ji.I.:

1-

-

1:-•

Annex

IVR

ioF

orte:C

orrelationM

atrixbetw

eenIndustries

Arithm

eticM

eans

Construction

Healthcare

Leisure

Real

Estate

Construction

100%51%

61%—

35%H

ealthcare51%

100%38%

16%L

eisure61%

38%100%

25%R

ealE

state35%

16%—

25%100%

Blo

onterg

Data;

GR

DC

alculation

Market

Cap

Weig

hted

Averag

esC

onstructionH

ealthcareL

eisureR

ealE

stateC

onstruction100%

51%55%

43%H

ealthcare51%

100%37%

15%L

eisure55%

37%100%

25%R

ealE

state43%

15%25%

100%B

loon

tergD

ata;G

RD

Calculation

•

...•

-S

.•

t-

-ci

Ann

exV

I—

Com

fort

Let

ter

“Esp

Irit

oS

anto

Con

trol

”

SE

EN

EX

TPA

GE

):

:

Annex

VII

—R

ioF

orteInvestm

entsR

iskR

eport

SE

EN

EX

TP

AG

ES

.