Earnings Presentation 1 st Quarter, 2016 Disclaimer: This - - PowerPoint PPT Presentation

Earnings Presentation

1st Quarter, 2016

Disclaimer: This presentation may include references and statements on expectations, planned synergies, growth estimates, projections of results, and future strategies for Banco Votorantim, it’s associated and affiliated companies, and subsidiaries. Although these references and statements reflect the management’s belief, they also involve imprecision and risks that are highly difficult to be foreseen. Consequently, they may conduct to different results from those anticipated and discussed here. These expectations are highly dependent on market conditions, on Brazil’s economic and banking system performances, as well as on international market conditions. Banco Votorantim is not responsible for bringing up to date any estimate in this presentation.

2

Net Income of R$ 86M in 1Q16

Consistent revenue generation, conservative approach to credit and nominal cost base reduction

Net Income

• f R$86M

Net Income of R$ 86M in 1Q16, compared to R$ 77M in 4Q15 and R$ 122M in 1Q15 Shareholders’ equity reached R$ 8.1B in Mar/16, up 6.1% in 1Q16

Consistent revenue generation

Net Interest Income (NII) grew 4.7% in 1Q16/1Q15, to R$ 1,233 million in 1Q16 NIM¹ of 5.1% p.y. in 1Q16, stable in relation to 1Q15 and 0.5 p.p. higher than 4Q15 due to higher NII Income from Services and Insurance amounted to R$ 311 million in 1Q16, 5.3% higher than in 1Q15

Conservative approach to credit

Expanded credit portfolio decreased 9.9% in the last 12 months and 5.6% in 1Q16, to R$ 61.9B

• CIB drove the portfolio reduction in the 1Q16 (Mar/16: R$ 28.4B; Dec/15: R$ 31.9B)
• In Consumer Finance, the Vehicles portfolio remained flat in 1Q16, at R$ 27.7B

Delinquency under control

90-day NPL decreased to 4.6% in Mar/16, against 5.7% in Dec/15

• Wholesale: 90-day NPL of 2.4% (Dec/15: 5.8%)
• Consumer Finance: 90-day NPL of 5.6% (Dec/15: 5.7%). Vehicles’ remained stable at 5.3%

Strengthening of the balance sheet: Coverage Ratio of 145% in Mar/16, against 117% in Mar/15

Effective cost management

Personnel and administrative expenses decreased 5.1% in relation to 4Q15 and 2.0% over 1Q15

• Nominal expenses reduction reflects the continuous focus on improving operational efficiency

Efficiency Ratio for the last 12 months remains below 40% (Mar/16: 39.1%)

• 1. Ratio between Net Interest Income and Average Interest-Earning Assets

Executive summary

Highlights of results

3

86 77 137 146 122 +12.0% 1Q16 4Q15 3Q15 2Q15 1Q15

Net income totaled R$ 86M in 1Q16, up 12% over 4Q15 Shareholders’ equity grew 6.1% in 1Q16, ending Mar/16 at R$ 8.08B

Shareholders' equity (R$B) 7.78 +6.1% Mar/16 8.08 Dec/15 7.62 Sept/15 Jun/15 7.85 Mar/15 7.68

Net Income of R$ 86M in 1Q16

Shareholders' equity ended Mar/16 at R$8,080 million, growth of 6.1% in the quarter

Net income (R$M)

• 1. Earnings growth agenda has three pillars: (i) increase profitability of business, (ii) Increase operational efficiency, and (iii) Strengthen synergies with Banco do Brasil.

Note: in 4Q15, R$ 114M were provisioned for dividend distribution to shareholders, equivalent to 25% of net income

Results confirm the progress in our sustainable earnings growth agenda¹

Consolidated results

4

Net Interest Income (A) 1,178 1,098 1,233 12.3% 4.7% ALL expenses¹ (B) (417) (453) (508) 12.0% 21.6% Net Financial Margin (A+B) 761 645 726 12.5%

• 4.6%

Operating Income/Expenses (540) (543) (551) 1.4% 2.1% Income from Services and Banking Fees 243 266 257

• 3.6%

5.6% Personnel and Administrative expenses (588) (607) (576)

• 5.1%
• 2.0%

Tax expenses (132) (88) (96) 8.2%

• 27.6%

Equity in Income of Associated Companies and Subsidiarie 38 40 43 7.4% 13.2% Other Operating Income/Expenses (100) (153) (178) 16.4% 77.9% Operating Income (Loss) 221 102 175 71.7%

• 20.9%

Non-Operating Income (Loss) (3) (2) (0)

• 77.6%
• 85.4%

Income Tax and Profit Sharing (96) (23) (88)

• 8.2%

Net Income 122 77 86 12.0%

• 29.3%

(R$ million) 1Q15 4Q15 Var. 1Q16/4Q15 1Q16 Var. 1Q16/1Q15

Highlights of Results

Consistent net income, with consistent revenue generation and nominal cost base reduction

• 1. Allowance for Loan Losses (ALL), net of revenues from recovery of written-off loans.

Managerial Income Statement (R$M)

Consolidated results

5

Consistent revenue generation

Net Interest Income (NII) grew in 1Q16, despite the credit portfolio reduction

• 1. Ratio between Net Interest Income and Average Interest-Earning Assets; 2. Includes guarantees provided and private securities; 3. Sum of reserve requirements, interbank

transactions, securities and loan portfolio; 4. Result of the stake in Votorantim Corretora de Seguros (insurance brokerage) is recognized using the equity method.

Revenues

NIM reached 5.1% in 1Q16, driven by growth in NII Income from Services grew QoQ, despite the decrease in auto finance origination

Net Interest Income (R$M) e NIM¹ (% p.y.) Income from Services, Fees and Insurance4 (R$M)

Expanded credit portfolio² (R$B) 68.7 65.5 Insurance (Commission) Services and Fees 1,233 1,098 1,178 5.1% 4.6% 5.2% +4.7% +12.3% 1Q16 4Q15 1Q15 61.9 243 266 257 52 55 54

• 3.0%

+5.3% 1Q16 311 4Q15 321 1Q15 295 Auto finance

• rigination (R$B)

3.3 3.1 2.9 Average interest-earning assets³ (R$B) 93.2 98.0 97.9

6

• 5.6%
• 9.9%

Corporate & Investment Banking (CIB) Auto Finance Payroll Credit Cards Mar/16 61.9 28.4 27.7 4.4 1.3 Dec/15 65.5 31.9 27.7 4.6 1.3 Mar/15 68.7 32.9 29.4 5.3 1.0

Maintenance of the conservative approach to credit

Total credit portfolio decreased 5.6% in 1Q16, while the Vehicles portfolio remained flat

Credit portfolio by segment

Expanded credit portfolio (R$B)

(includes guarantees provided and private securities)

Focus on profitability (vs. asset growth)

• 11.0%
• 0.1%

∆Mar16 /Dec15

• 3.4%

+3.4%

• 13.6%
• 5.7%

∆Mar16 /Mar15

• 16.3%

+26.4%

7

271 358 402 285 348 147 90 672 168 160 +12.0% 1Q16 508 4Q15 453 3Q15 1,075 2Q15 448 1Q15 417

Strengthening of the balance sheet over the past 12 months

Coverage ratio reached 145% in Mar/16, versus 117% in Mar/15

Credit provision expenses – ALL¹ (R$M)

Credit provision expenses grew 12% in relation to 4Q15 90-day CR remains in conservative level, ending Mar/16 at 145%

90-day Coverage Ratio² (%) – Managed portfolio

1. Allowance for Loan Losses, net of income from recovery of written-off loans; 2. Ratio between the balance of ALL and the balance of loans past due over 90 days;

• 3. Beginning of Banco Votorantim’s adjustment process, which was concluded in 2014.

3,271 4,387 4,232 2,254 2,923 3,628 145% 150% 117% Mar/16 Dec/15 Mar/15

90-day NPL balance (R$M) Allowance for Loan Losses balance (R$M)

90-day Coverage ratio

78% in Sept/11³ Delinquency reduction

22.2%

• 5.1%

∆1Q16/ 4Q15 Wholesale Consumer Finance

Prudential strengthening of ALL

Credit indicators – ALL and 90-day Coverage

8

5.3% 5.6% 5.3% 5.7% 5.3% 5.4% 5.3% 5.4% 5.3% 5.3%

Total

90-day NPL down to 4.6% in Mar/16 (5.7% in Dec/15)

Vehicles’ delinquency remains stable in 5.3%, while the market indicator¹ rose 90 bps against Mar/15 90-day NPL / Managed loan portfolio (%)

Wholesale

4.6% 5.7% 5.3% 5.2% 6.5% Mar/16 2.4% Dec/15 5.8% Sept/15 5.0% Jun/15 4.8% Mar/15 9.0%

Consumer Finance Vehicles

Consumer Finance

90-day market¹ NPL increased 90bps over the last 12 months

Credit indicators – Delinquency

• 1. National Financial System. 90-day NPL obtained in the historical series released on the Central Bank website.

9

Mar/16

1.0 1.6%

Sept/15 Mar/15

1.1

Sept/14 Mar/14

0.9

Sept/13 Mar/13

1.0

Sept/12 Mar/12

0.7

Sept/11 Mar/11

1.5

Sept/10 Mar/10

1.8

Auto finance: maintenance of quality in auto finance

• rigination, focusing on used cars

Inad 30¹ (by vintage) Used car dealers New car dealers

Origination with better quality has contributed to the favorable trend in delinquency

1% 2% 11% 27% Mar/16 Dec/15 Dec/14 Dec/13

Lower quality vintages

Lower quality vintages / Managed auto finance portfolio²

Auto Finance – Origination by channel (R$B) and first payment default by vintage – Inad 30¹ (%)

Consumer Finance – Auto Finance

• 1. First payment default, or % of each month’s production with first installment past due over 30 days; 2. Includes securitization with substantial risk retention before Res. 3,533

10

• 13.1%

Used Cars Other Vehicles¹ 1Q16 2.9 2.4 (83%) 0.5 4Q15 3.1 2.6 (82%) 0.6 1Q15 3.3 2.7 (82%) 0.6 4Q10 7.8 4.1 (52%) 3.7 26% 41% 41% 44 44 52 1Q16 4Q15 4Q10

Auto finance: greater focus on used cars and maintenance

• f tight credit origination standards

Origination of auto loans (R$B)

1. New cars, trucks and motorcycles; 2. Benchmark interest rate (Central Bank). Note: In Mar/16, the average ticket size was R$ 20,000, and the average vehicle age was 4.8 years (portfolio)

Banco Votorantim is one of the leading players in the auto financing market

Down payment Average term

Down payment (%) and Average term (months)

Greater focus on used cars, which represented 83% of 1Q16 origination Maintenance of conservative lending standards

D Cars Market:

• New cars: -33%
• Used cars: -13%

29.1 29.3 24.6 Mar/16 14.25 Dec/15 14.25 Dec/10 10.75

Auto finance interest rate x Selic² rate (% p.y.)

Selic BV Financeira

• 11.8%
• 18.9%

∆1Q16 /1Q15

Consumer Finance – Auto Finance

11

272 302 261 316 305 315

• 2.0%
• 5.1%

Administrative Personnel 1Q16 576 4Q15 607 1Q15 588

Personnel and administrative expenses (R$M)

• 1. Excludes expenses with labor lawsuits. Note: The IPCA price index reached 9.4% in the last 12 months. In 1Q16, labor lawsuits summed up R$ 106 million against

R$ 79 million in the 4Q15. Excluding labor claims, personnel and administrative expenses would have decreased 7.4% in 1Q16/4Q15.

Efficiency ratio – last 12 months¹ (%) 39.1 37.8 ∆1Q16 /4Q15 +3.4% ∆1Q16 /1Q15

• 0.1%
• 13.7%
• 4.2%

Nominal cost base reduction

Administrative and personnel expenses decreased 5.1% over 4Q15 and 2.0% compared to 1Q15

Personnel and administrative expenses

39.5

12

86 77 137 146 122 726 645 59 843 761 726 645 618 843 761 1Q16 4Q15 3Q15 2Q15 1Q15

Net Interest Income (NII) Credit provision expenses – ALL Personnel and Administrative expenses Net Income and Net Margin (post provisions)

R$ million

Summary: Net Income of R$ 86M in 1Q16

Highlight to the Net Margin growth and cost base reduction

+12.3% 1Q16 1,233 4Q15 1,098 3Q15 1,134 2Q15 1,291 1Q15 1,178 272 268 286 302 261 316 314 275 305 315

• 5.1%

Admin. Personnel 1Q16 576 4Q15 607 3Q15 561 2Q15 582 1Q15 588 271 358 402 285 348 147 672 168 160 +12.0% Consumer Finance Wholesale 1Q16 508 4Q15 453 3Q15 1,075 2Q15 448 90 1Q15 417 Net Margin without prudential provisions Net Margin Net income

• 5.1%

+22.1% ∆1Q16 /4Q15 Prudential strengthening of ALL

Consolidated results

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Funding profile improved over the last years

Bills and Credit Assignments accounted for 47% (R$ 34.0B) out of the total funding sources

Funding Other ¹

• 7.2%

Bills (LF, LCA and LCI) Loans securitized to Banco do Brasil Debentures (BV Leasing) Loans and onlendings Sub debt Securities abroad Time deposits (CD) 72.3 17.5 (24%) 16.5 (23%) 16.7 7.0

2.3 2.2

Dez/15 78.0 17.2 6.6 3.3 15.7 17.9 7.9 6.9 8.1 2.2 2.0 Dez/14 72.3 16.3 15.2 17.4 6.7 6.2 Mar/16 2.4 1.4 Dez/13 75.6 15.7 (21%) 12.8 (17%) 6.6 6.7 7.4 6.9 5.8 4.3 16.1

LF: R$14.1B LCA and LCI: R$3.4B

Funding evolution (R$ billions)

Expanded credit portfolio²/ Total Funding 81% 80% 72%

1Q16: +R$ 3.2B

75%

Bond matured (R$ 5B) in Feb/16

Additionally, Banco Votorantim has a stand-by credit facility of ~R$7B from BB, which has never been tapped

• 1. Includes cash and interbank deposits and Structured finance certificates (“COEs”); 2. Excludes guarantees provided.

Note: International funding is 100% hedged for BRL

14 Total Capital 10,523 10,742 9,742 Tier I Capital 6,873 6,686 6,587 Common Equity Tier I 6,873 6,686 6,587 Additional Tier I

• Tier II Capital

3,651 4,056 3,155 Risk Weighted Assets (RWA) 76,289 70,549 67,714 Credit risk 68,988 62,926 59,714 Market risk 2,894 2,843 1,984 Operational risk 4,407 4,780 6,016 Minimum Capital Requirement 8,392 7,760 6,687 Basel Ratio (Capital/RWA) 13.8% 15.2% 14.4% Tier I Capital Ratio 9.0% 9.5% 9.7% Common Equity Tier I Ratio 9.0% 9.5% 9.7% Additional Tier I Ratio

• Tier II Capital Ratio

4.8% 5.8% 4.7% Mar.16 Dec.15 Mar.15 BASEL RATIO (R$ Million)

Basel Ratio of 14.4% in Mar/16

Tier I Capital rose to 9.7%, entirely composed of Common Equity

Note: In 2016, the minimum capital requirement was changed to 10.50% (11.00% in 2015), including 0.63% for maintenance capital.

Capital structure

15

Appendix

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Banco Votorantim is one of the leading banks in Brazil

“Top 10” in total assets, with strong shareholders and shared governance

Banco Votorantim is one of the largest privately-held Brazilian banks in total assets... ...and also in terms of loan portfolio

10 largest Banks in Dec/15 – Loan Portfolio¹ (R$B) 10 largest Banks in Dec/15 - Total Assets (R$B) 10th

Shareholder 50% Total

Banco Votorantim - Overview

Equal representation

• f each

shareholder

Board of Directors Executive board Fiscal Council Audit Committee Compensation & HR Committee Products & Marketing Committee Finance Committee

Total: 50.00% Voting: 49.99% Non-voting: 50.01% Total: 50.00% Voting: 50.01% Non-voting: 49.99%

Votorantim Group Banco do Brasil Ownership Structure Corporate Governance Structure

1.On-balance loan portfolio according to Bacen’s Resolution 2,682

10th

110 148 175 242 682 905 926 1,204 1,285 1,439 CEF Itaú Banco do Brasil Bradesco BNDES Safra Santander BTG Pactual HSBC Votorantim State-owned Foreign National privately-held 49 50 66 71 260 392 435 539 674 705 Itaú CEF Banco do Brasil

Votorantim

Safra BTG Pactual Santander BNDES Bradesco HSBC State-owned Foreign National privately-held

17

Banco do Brasil Grupo Votorantim

+

Consumer Finance Auto Finance

To originate portfolios with quality, scale and profitability To focus on used auto finance (multi-brand dealers), where BV has a history of leadership and expertise

Other Businesses

Payroll loans: to focus on INSS (portfolio refinancing) and Private (portfolio growth) Credit cards, insurance, individual loans and CrediCasa (home equity): to leverage the existing client base Other synergies with BB: Promotiva, mortgage, etc.

Wealth

• Mgmt. & BVEP

Asset: 9th largest in the market, with innovative products and growing synergies with BB R$ 51.2B in AuM¹ Private: focus on estate management through taylor- made solutions BVEP: investment in real estate projects

Wealth Mgmt. Corporate & IB (CIB)

To be the best wholesale bank to our target clients, focused on:

• Long-term relationships
• Capturing synergies in the
• rigination and structuring
• f financial solutions
• Efficient capital

management

Wholesale

Diversified business portfolio

Focus on increasing business profitability, operating efficiency and synergies with BB

Strategy

• 1. Assets under management 2. Includes guarantees provided by the Bank and private securities

Note: In Mar/16, the outstanding volume of loans (off-balance) securitized with recourse prior to Resolution 3,533 totaled R$ 0.1B (versus R$ 0.3B in Dec/15)

Shareholders Pillars

Expanded² credit portfolio R$ 61.9B R$ 33.5B R$ 27.7B R$ 5.8B R$ 28.4B

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Consumer Finance: increased focus on used auto finance and INSS payroll loans (retirees and pensioners)

Payroll Loans Auto Finance Consumer Finance Businesses

Loan portfolio (R$B) Loan portfolio (R$B) Among market leaders in auto financing, with the following advantages:

• Capillarity: presence in ~13,000 car dealerships nationwide
• Agility: 84% of proposals with automatic credit decision
• Expertise: continuous improvement of management tools

(pricing, credit, collection etc.)

• Long-term relationship: first access to customer record

Mar/15 29.4 24.1 5.3 Used New Mar/16 27.7 23.9 3.8 Dec/15 27.7 23.7 4.1 INSS Private Public Mar/16 4.4 3.0 0.8

0.6 (14%)

Dec/15 4.6 3.1 0.8

0.7

Mar/15 5.3 3.5 0.8

1.0 (19%) States: 40% Cars: 95%

Consumer Finance businesses

Focus on refinancing the INSS payroll loan portfolio (retirees and pensioners)… ...and on increasing the private payroll loan portfolio Selective operation in public payroll agreements Continuous improvement of management tools (pricing, credit, collection etc.)

19 9.7 (34%) 7.8 (28%) 5.4 (19%) 3.5 (12%) 1.2 0.7

Highlights and strategy Corporate & Investment Bank (CIB)

Wholesale: continued focus on improving return on capital and on strengthening the product portfolio

Wholesale Business

Additional strengthening of the balance sheet

• Prudential strengthening of credit provisions in view of the

uncertainties of the macroeconomic scenario

• 90-day Coverage Ratio exceeds 200%

Conservative approach to credit

• Focus on profitability (vs. asset growth)

Increased relevance of BV to its target clients

• Focus on 400 Corporate groups with credit exposure and

better risk profile, plus Financial Institutions Exit of non-core clients Focus on capturing synergies in the origination and structuring of Credit, IB, Derivatives and FX

2015 22.1 2014 16.4

FX Ranking4 – Traded Volume (US$ B)

Loans2 Onlending Financing export / import Other3 Guarantees provided Private securities1 Expanded credit portfolio R$ 28.4B

Diversified portfolio of wholesale products

Wholesale business

Expanded credit portfolio (R$B e %)

• 1. Includes debentures and promissory notes; 2. Includes export credit notes, working capital and Loan Offshore; 3. Rural Financing e Advances on Exchange Contracts;
• 4. Ranking published by the Brazilian Central Bank. Only considers Primary Market.

17th 12th

20

Balance Sheet

Balance Sheet

Mar.16/Dec.15 Mar.16/Mar.15 CURRENT AND LONG-TERM ASSETS 105,142 109,698 108,890 (0.7) 3.6 Cash and cash equivalents 124 180 210 16.6 69.7 Interbank funds applied 14,743 17,187 17,030 (0.9) 15.5 Securities and derivative financial instruments 27,236 30,424 31,117 2.3 14.3 Derivative financial instruments 2,227 2,550 2,929 14.9 31.5 Interbank accounts or relations 67 72 442

• Loan Operations, Leases and Others receivables

53,646 51,138 48,363 (5.4) (9.8) Alowance for loan losses (4,144) (4,152) (3,046) (26.6) (26.5) Tax credit 6,825 7,833 7,273 (7.1) 6.6 Others 4,419 4,466 4,572 2.4 3.4 NON-CURRENTS 369 522 417 (20.1) 13.0 Investments 195 324 216 (33.4) 11.1 Fixed assets 101 97 98 0.8 (3.1) Intangible and deferred charges 73 100 103 2.8 40.4 TOTAL ASSETS 105,511 110,221 109,307 (0.8) 3.6 Mar.16/Dec.15 Mar.16/Mar.15 CURRENT AND LONG-TERM LIABILITIES 97,803 102,556 101,186 (1.3) 3.5 Deposits 4,928 4,206 4,491 6.8 (8.9) Demand deposits 86 81 78 (4.5) (9.5) Interbank deposits 1,636 1,933 2,086 8.0 27.5 Time deposits 3,206 2,192 2,327 6.1 (27.4) Money market borrowings 29,227 32,800 36,653 11.7 25.4 Acceptances and endorsements 24,409 25,323 20,860 (17.6) (14.5) Interbank accounts 177 83 35 (58.2) (80.3) Borrowings and onlendings 7,500 7,893 7,032 (10.9) (6.2) Derivative financial instruments 2,746 2,914 2,776 (4.7) 1.1 Others obligations 28,816 29,337 29,339 0.0 1.8 Subordinated debts 7,079 6,928 6,648 (4.0) (6.1) Credit transactions subject to assignment 15,873 15,677 16,538 5.5 4.2 Others obligations 5,863 6,732 6,153 (8.6) 4.9 DEFERRED INCOME 29 48 41 (14.5) 40.0 SHAREHOLDERS’ EQUITY 7,679 7,617 8,080 6.1 5.2 TOTAL LIABILITIES 105,511 110,221 109,307 (0.8) 3.6

BALANCE SHEET | Assets (R$ Million)

Mar.15 Dec.15 Mar.16 Variation %

BALANCE SHEET | Liabilities (R$ Million)

Mar.15 Dec.15 Mar.16 Variation %

21

Mar/16 51.2 Dec/15 47.4 Sept/15 46.6 Jun/15 43.8 Mar/15 41.3

Total Assets Assets under Management¹ On-balance loan portfolio

Mar/16 109.3 Dez/15 110.2 Set/15 110.3 Jun/15 103.3 Mar/15 105.5

Financial highlights

Jun/15

Consumer Finance Wholesale

Mar16 48.7 33.6 17.4 33.5 15.2 Sept/15 51.1 Dec/15 51.0 34.2 17.0 51.8 35.1 54.3 35.8 16.7 Mar/15 18.5

Shareholders’ Equity

Mar/15 7.78 7.85 7.68 7.62 Jun/15 8.08 Mar/16 Sept/15 Dec/15

1. Includes onshore funds (ANBIMA criteria) and private clients resources.

Financial highlights

R$ billion

22

Net Interest Income (A) 1,178 1,098 1,233 12.3% 4.7% Average Interest-Earning Assets (B) 93,183 98,020 97,909

• 0.1%

5.1% Compulsory Reserves (Bacen) 48 24 206

• Interbanks Funds Applied

11,059 16,689 17,109 2.5% 54.7% Securities 28,184 30,258 30,771 1.7% 9.2% Loan Portfolio 53,892 51,049 49,823

• 2.4%
• 7.5%

NIM (A/B) 5.2% 4.6% 5.1% 0.5 p.p.

• 0.1 p.p.

Var. 1Q16/1Q15 4Q15 1Q16 Var. 1Q16/4Q15

NET INTEREST MARGIN (NIM)

(R$ million) 1Q15

Net Interest Margin (NIM)

Financial highlights – NIM

23

Total Personnel¹ and Administrative expenses (A) 493 528 470

• 11.0%
• 4.8%

Total Revenues (B) 1,358 1,251 1,354 8.3%

• 0.3%

Net Interest Income (NII) 1,178 1,098 1,233 12.3% 4.7% Fee/Banking Fee Income 243 266 257

• 3.6%

5.6% Equity in Income of Associated Companies and Subsidiaries 38 40 43 7.4% 13.2% Other Operating Income/Expenses (100) (153) (178) 16.4% 77.9% Efficiency Ratio (A/B) - period 36.3% 42.2% 34.7%

• 7.5 p.p.
• 1.6 p.p.

Efficiency Ratio - last 12 months 37.8% 39.5% 39.1%

• 0.4 p.p.

1.3 p.p. Var. 1Q16/1Q15 Var. 1Q16/4Q15 4Q15 1Q16 1Q15 EFFICIENCY RATIO (ER) (R$ million)

Efficiency Ratio

Financial highlights - ER

• 1. Excludes expenses with labor lawsuits

24

3,824 4,200 4,152 3,046 4,144 6.7% 8.6% 8.6% 7.6% 7.6% Sept/15 3,979 225 Jun/15 235 155 Mar/15 4,232 87 225 4,425 4,387 Dec/15 Mar/16 3,271

Specific + Additional Generic2 ALL balance / Managed loan portfolio

ALL Balance (R$M) Managed loan portfolio rated by risk level¹ (%)

Credit quality indicators

88.8% 11.2% Sept/15 89.7% 10.3% Jun/15 90.6% 89.8% 9.4% Dec/15 10.2% Mar/15 AA-C D-H 89.5% 10.5% Mar/16 166 151 170 197 141 693 838 834 578 1,215 1Q16 3Q15 1Q15 4Q15 2Q15

Credit Recovery (R$M) Net Loss (R$M)

412 683 669 495 1,074 9.1% 3.9% 5.3% 5.3% 3.0% 4Q15 1Q15 3Q15 2Q15 1Q16 Net loss Net Loss/Managed loan portfolio Credit Recovery Write-off

Credit portfolio

• 1. According to Bacen’s Resolution 2,682; 2. Considers balance of R$ 225M of “generic” credit provisions recognized as Liabilities in the "Other“ line (see Note #19d of

1Q16 Financial Statements)

25

1.07% 1.75% 1.57%

• 0.12%

1.90% 0.98% 0.67% 1.64% 2.24% 0.94% 1.04% 1.36% 1.00% 1.22 0.55

4Q15

0.69 0.90

3Q15

0.84 0.82

2Q15

0.83

• 0.07

1Q15

0.58 1.05

4Q14

0.67 0.55

3Q14

0.77

1Q16 2Q14

0.86 0.96

1Q14

0.87 1.36

4Q13

0.87 0.58

3Q13

0.90 0.66

2Q13

1.34 0.90

1Q13

1.15 0.68 0.38

New NPL rate

New NPL rate

Write-off (R$B) New NPL (R$B) Credit portfolio

• 1. Variation in the balance of 90-day NPL balance + loans written-off to loss in the quarter, divided by loan portfolio by the end of the immediately preceding quarter

Managed Loan Portfolio (A) 65,923 63,546 61,281 60,539 58,281 56,806 55,712 55,231 55,422 52,505 51,576 51,250 48,799 90-day NPL Balance 4,056 3,616 3,373 3,081 3,563 3,662 3,273 3,154 3,628 2,727 2,712 2,923 2,254 90-day NPL Quarterly Variation (B) (465) (439) (244) (292) 482 99 (388) (119) 474 (902) (14) 211 (669) Write-off (C) 1,144 1,339 902 869 874 857 771 666 578 834 838 693 1,215 New NPL (D=B+C) 680 900 659 578 1,356 955 383 547 1,052 (67) 823 903 546 New NPL Rate¹ (D/A) 1.00% 1.36% 1.04% 0.94% 2.24% 1.64% 0.67% 0.98% 1.90%

• 0.12%

1.57% 1.75% 1.07% 1Q13 2Q13 3Q13 4Q13 4Q15 NEW NPL (R$ Million) 3Q15 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 1Q16

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Wholesale has a diversified credit portfolio

Top 20 sectors account for 85% of the Wholesale credit exposure

Credit portfolio

• 1. Numbers exclude private securities and are net of credit provisions. Note: Does not consider application of Credit Conversion Factor of 50% in transactions relating to

some specific guarantees provided.

R$M Part.(%) R$M Part.(%) R$M Part.(%) Financial Institutions 4,297 17.1% 5,229 21.5% 3,800 17.3% Sugar and Ethanol 2,522 10.0% 2,153 8.9% 2,033 9.2% Telecom 1,687 6.7% 1,675 6.9% 1,568 7.1% Petrochemical 1,310 5.2% 1,684 6.9% 1,558 7.1% Retail 1,234 4.9% 1,313 5.4% 1,440 6.5% Agribusiness 1,375 5.5% 1,001 4.1% 908 4.1% Mining 480 1.9% 1,006 4.1% 889 4.0% Railw ays 705 2.8% 771 3.2% 810 3.7% Eletricity Generation 777 3.1% 683 2.8% 751 3.4% Government 600 2.4% 401 1.7% 616 2.8% Pulp and Paper 662 2.6% 755 3.1% 606 2.8% Road Cargo Transportation 649 2.6% 533 2.2% 527 2.4% Residential Construction 628 2.5% 522 2.1% 462 2.1% Electricity Distribution 309 1.2% 461 1.9% 448 2.0% Food Industry 314 1.2% 314 1.3% 423 1.9% Heavy Construction 749 3.0% 472 1.9% 401 1.8% Oil & Gas 772 3.1% 401 1.7% 401 1.8% Automotive 533 2.1% 404 1.7% 391 1.8% Services 713 2.8% 414 1.7% 304 1.4% Slaughterhouses 460 1.8% 284 1.2% 292 1.3% Other sectors 4,422 17.5% 3,823 15.7% 3,378 15.4% Total¹ 25,198 100.0% 24,300 100.0% 22,005 100.0% Wholesale - Sectoral concentration Mar.15 Mar.16 Dec.15

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Banco Votorantim’ s main ratings

Ratings

RATING AGENCIES International National

Domestic Foreign Domestic

Fitch Ratings

Long-term

BB- AA+(bra)

Short-term

B F1+(bra)

Standard & Poor’s

Long-term

BB brA+

Short-term

B brA-1

Moody’s

Long-term

Ba2 Ba3 Aa3.br

Short-term

NP NP BR-1

Brazil

Sovereign rating

BB BB Ba2