Earnings Presentation Disclaimer: This presentation may include - - PowerPoint PPT Presentation

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.

2nd Quarter | 2019

Earnings Presentation

2

▲ Total revenues (NII + revenues from services and insurance) increased by 3.5%

in 2Q19/1Q19, reflecting the higher profitability in the businesses

▲ Net Interest Margin (NIM) increased to 7.6% in the 2Q19, versus 7.0% in 1Q19

2

Highlights of results

Net income Revenues Credit costs¹

Delinquency (NPL90)

Efficiency Ratio²

R$ 352M +4.8% (2Q19/1Q19) +34.6% (1H19/1H18) +3.5% (2Q19/1Q19) +12.6% (1H19/1H18)

• 3.7% (2Q19/1Q19)

+29.1% (1H19/1H18) NPL90 4.4%

• 10bps (Jun19/Mar19)

+40bps (Jun19/Jun18)

• 60bps (Jun19/Mar19)
• 20bps (Jun19/Jun18)

▲ 90-day NPL of 4.4% in Jun/19, 10 bps drop in the quarter

• Consumer Finance: NPL90 of 4.8%, stable in comparison with Mar/19
• Wholesale: NPL90 decreased to 3.1%, comparable to 3.5% in Mar/19

▲ Effective cost base management and consistent revenues generation contributed

to the improvement of the Efficiency Ratio for the last 12 months, which decreased to 32.7% in Jun/19

▲ Net income of R$ 352M in 2Q19, compared to R$ 336M in 1Q19 ▲ Return on Equity (ROE) of 15.2% p.y.

in 2Q19 (14.8% in 1Q19). In 1H19, ROE increased to 14.8% p.y. (11.6% in 1H18).

• 1. Net of revenues from recovery of written-off loans. Includes provision for loan losses, guarantees and impairments; 2. Last 12 months. Excludes

labor lawsuits and profit sharing expenses

Net income of 2Q19 reached R$ 352M and ROE of 15.2%

Consistent revenue generation, maintenance of credit costs and cost basis control

Executive summary ER 32.7% R$ 2,007M R$ 447M

▲ Cost of credit decreased in 2Q19, reflecting the drop in delinquency, especially in

Auto Finance. Increase in the semester reflects higher Consumer Finance portfolio.

▲ 90-day Coverage Ratio increased to 178% in Jun/19 (Mar/19: 175%)

R$ 688M R$ 3,945M R$ 911M

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255 256 268 282 336 352 1Q18 4Q18 2Q18 3Q18 2Q19 1Q19 11.8% 11.6% 12.5% 11.9% 14.8% 15.2% +37% +5%

Net Income (R$M)

3 ROE (% p.y.)

• exponential

Net income of 2Q19 reached R$ 352M and ROE of 15.2%

1H19 result was 35% higher than the same period of 2018

Consolidated result

Quarterly net income confirms new result level

511 688 14.8% 1H18 1H19 11.6% +35%

11.4% 11.1% 11.4% 11.9% 14.0% 14.4% ROE (% p.y.)

• linear

11.2% 14.3%

4 ] Net Interest Income (A) 1,259 1,469 1,530 4.2% 2,606 2,999 15.1% Result of loan losses¹ (B) (377) (464) (447)

• 3.7%

(706) (911) 29.1% Net Financial Margin (A+B) 881 1,004 1,083 7.9% 1,900 2,087 9.9% Operating Income/Expenses (414) (497) (562) 13.1% (927) (1,059) 14.2% Income from Services and Banking Fees 344 340 343 0.9% 669 684 2.2% Personnel² and Administrative expenses (541) (643) (628)

• 2.3%

(1,194) (1,271) 6.5% Tax expenses (109) (102) (158) 54.7% (201) (260) 29.6% Income from subsidiaries 83 91 87

• 5.1%

163 178 9.5% Other Operating Income/(Expenses) (191) (184) (205) 11.9% (364) (389) 6.7% Operating Income (Loss) 468 507 521 2.8% 972 1,029 5.8% Non-Operating Income (Loss) (2) 1 (1)

• 163.3%

(5)

• Income before Taxes

466 508 521 2.4% 967 1,029 6.4% Income Tax and Social Contribution (210) (172) (169)

• 2.2%

(456) (341)

• 25.2%

Net Income 256 336 352 4.8% 511 688 34.6% 1H18 1H19 Var. 1H19/1H18 (R$ Million) 2Q18 1Q19 2Q19 Var. 2Q19/1Q19

Managerial Income Statement (R$M)

Banco Votorantim continues advancing in its agenda of improving the profitability of businesses, operational efficiency and revenue diversification

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• 1. Net of revenues from recovery of written-off loans. Includes provision for loan losses, guarantees and impairments; 2. Includes profit sharing

expenses.

Consolidated result

Net income increased 5% in relation to 1Q19

Consistent revenue generation and improvement of efficiency

5 +1%

• 1. Result of the stake in Votorantim Corretora de Seguros (insurance brokerage) is recognized using the equity method; 2. Ratio between Net Interest

Income and Average Interest-Earning Assets.

Revenues

Net Interest Income 6.1% NIM ² (%p.y.) 7.0% 7.6%

Consistent and diversified revenue generation

2Q19x1Q19: expansion of both NII and income from services and insurance

NIM increased to 7.6% in 2Q19, driven by the NII growth reflecting the higher portfolio Services and insurance revenues grew in the 2Q19, reflecting the higher origination of auto loans

Revenues generation (R$M)

2Q18 1Q19 2Q19 1,259 1,469 1,530 +22% +4% 344 340 343 115 129 133 470 1Q19 2Q19 2Q18 459 476 +4% +1%

Origination of auto loans (R$B)

459

470 476 1Q19 2Q19 2Q18 1,718 1,939 2,007 1,259 1,469 1,530 +17% +4%

Net Interest Income Services, fees and insurance¹

897 946 1H19 1H18 2,999 2,606 3,502 3,945 +13%

∆2Q19 /1Q19 +15% +5%

1H18 1H19 2,606 2,999 +15%

+4% 6.2% 7.2% Insurance (Commission)1 Services and fees

669 684 227 262 1H18 897 946 1H19 +5%

4.1 4.7 5.0 8.5 9.7

6

Credit Cards

2.8

Jun/18

33.4

59.4

2.0 32.2 3.3 2.9 22.4 (38%) 2.4 2.1 2.3

Sept/18 Dec/18

2.3 2.9

Mar/19

35.7

Loans¹ Auto Finance

Wholesale

34.5 22.0 20.7 (34%)

Jun/19 59.2 60.2 60.1 61.7

31.6 3.1 21.6 20.4

+4%

Expanded credit portfolio (R$B)

(includes guarantees provided and private securities)

+1.4% +3.6% ∆Jun19 /Mar19

• 1.4%

+6.0%

• 7.3%

+13.1% ∆Jun19 /Jun18

• 13.1%

+22.3%

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Consumer Finance

• 1. Portfolio comprised by products: payroll (retirees, private and public), personal credit (with and without guarantee), home equity, student credit and

solar.

Credit portfolio

Maintenance of the conservative approach to credit

Portfolio grew 4.3% over Jun/18, with increased participation of the Consumer Finance business Focus on profitability and asset quality

Reduction in public payroll agreements Increase of used car financing Reduction in the private securities portfolio

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4.3 (87%) 3.7 (89%) 0.4 2Q18 1Q19 0.5 4.1 0.6 4.2 2Q19 4.7 5.0 +20%

Banco Votorantim is one of the market leaders in auto financing

41% 39% 39% 2Q18 1Q19 2Q19 Down payment Average term (months) 22.5% 21.5% 21.3% Interest rate (% p.y.)²

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• 1. New cars, trucks and motorcycles; 2. Weighted average rate for the quarterly origination; 3. End of the period.

Nota: In Jun/19 the average ticket size was R$ 23,000, and the average vehicle age was 5.6 years (portfolio).

Focus on used car financing, which represented 87% of 2Q19 origination Maintenance of conservative lending standards

Origination of auto loans (R$B) Down payment, average term and interest rate

Auto finance: continued focus on used cars and maintenance

• f tight credit origination standards

Consumer Finance – Auto Finance

Used cars Other Vehicles¹ +17.3% +47.1% ∆2Q19 /2Q18 45 44 45

6.5% Selic rate (% p.y.)³ 6.5% 6.5%

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200% 175% 178%

Mar/19 Jun/18 Jun/19

3,942 1,969 4,031 2,310 4,135 2,320

Allowance for loan losses balance (R$M) 90-day NPL balance (R$M)

90-day Coverage Ratio 578 613 575 (200) (149) (128)

2Q18 1Q19 2Q19

377 464 447 +18%

• 4%

8

• 1. Net of revenues from recovery of written-off loans; 2. Ratio between the balance of Allowances for Loan Losses and the balance of loans past due
• ver 90 days. Includes provision for guarantees.

Credit cost decreased compared to 1Q19, reflecting the reduction in delinquency 90-day Coverage Ratio remains in a sturdy level

Result¹ of loan losses, guarantees provided and impairments - (R$M) 90-day Coverage Ratio²

90-day Coverage Ratio reached 178% in Jun/19

Credit costs dropped 3.7% in relation to 1Q19

Credit indicators – Loan losses and 90-day Coverage

Provision for loan losses, guarantees and impairments Revenues from recovery of loans written-offs

(334) (276)

1H19 1H18

706 1,040 911 1,188 +29%

Higher Consumer Finance portfolio

+14%

• 17%

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5.2% 5.4% 5.7% 5.5% 4.2% 5.1% 4.7% 4.7% 4.9% 4.4% 4.8% 4.3% 4.8% 4.3% 4.8% 4.2%

Banco Votorantim

90-day NPL ratio of the loan portfolio (%)

Wholesale

4.5% 4.6% 4.2% 5.5% 4.4% 4.0% 4.4% 4.0% Jun/19 Dec/18 3.5% Jun/16 5.6% Dec/16 Jun/17 Dec/17 Mar/19 Jun/18 2.0% 2.3% 1.8% 1.3% 2.2% 3.1% Consumer Finance Auto Finance

Consumer Finance

90-Day NPL of 4.4% in Jun/19

Vehicles: delinquency has maintained a downward trend since Jun/18; Wholesale reduced in 2Q19

Credit indicators – Delinquency

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301 315 318 199 268 271 40 60 39 2Q18 1Q19 2Q19 541 643 628 +16%

• 2%

Personal Labor claims Compensation, Charges, Training, Profit Sharing Administrative

The cost base management contributed to the improvement

• f the Efficiency Ratio for the last 12 months
• 1. Excludes expenses with labor lawsuits and profit sharing expenses

Personnel and administrative expenses

∆2Q19 /1Q19

• 35.4%

+1.2% +1.1%

Personnel¹ and administrative expenses (R$M)

Efficiency Ratio – last 12 months¹ (%)

32.9% 32.7% 578 633 474 539 142 99 1S18 1S19 1,271 1,194 +6%

• 30.3%

+13.8% +9.5%

Increased investment in Technology

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Personnel and Administrative expenses

578 633 616 638 1H19 1H18 1,271 1,194 +6% 256 336 352 2Q18 14.8% 1Q19 2Q19 11.6% 15.2%

R$ Million

459 470 476 2Q18 2Q19 1Q19 1,259 1,718 1,939 2,007 1,469 1,530 +17% +4% 301 315 318 240 328 310 2Q19 2Q18 1Q19 541 643 628 +16%

• 2%

Net Interest Income Services¹ and Insurance

• 1. Income from services and banking fees; 2. Last 12 months. Excludes expenses with labor lawsuits and profit sharing expenses; 3. Includes profit

sharing expenses.

NII and Income from Services¹ and Insurance

Consistent generation of revenues, maintenance of the credit cost and improvement of efficiency

Net income of 2Q19 reached R$ 352M, and ROE of 15.2%

Consolidated result

Net income and ROE

Efficiency Ratio(%)2

Admin. Personnel3 Net income ROE (p.y.) Recovery of loans written-offs Loan losses, guarantees provided and impairments 578 613 575 (200) (149) (128) 2Q18 1Q19 2Q19 377 464 447 18%

• 4%

897 946 3,502 1H18 1H19 3,945 2,606 2,999 +13% (334) (276) 1H18 1H19 911 706 1,040 1,188 +29%

32.9 33.3 32.7

511 688 1H18 1H19 11.6% 14.8%

revenue DIVERSIFICATION

Result² of loan losses, guarantees provided and impairments

improving EFFICIENCY PROFITABILITY

• f businesses

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• 1. Includes cash and interbank deposits, and securities abroad, whose balance was R$ 0.8B in Jun/19; 2. Ratio of total high quality liquid assets (HQLA)

and the total cash inflows for a 30 days period in a stress scenario, being the minimum regulatory of 90%. Does not consider standby credit facility with Banco do Brasil. .

Funding volume amounted to R$ 61.1B in Jun/19

Stable funding instruments accounted for 61% of total funding

Funding and liquidity

Additionally, Banco Votorantim has a standby credit facility with BB since 2009, which has never been tapped

6.8 4.9 8.2 3.3 4.6 10.7 20.8 2.6 4.1 2.7 6.5 6.4 Jun/18 4.3 3.4 2.6 9.0 2.6 25.0 Mar/19 2.9 Jun/19 10.6

Other Bills

6.4 5.6 25.4

Loans and onlendings Time Deposits Repos (debentures) Sub Debt Loans securitized to Banco do Brasil Financial Bills

63.8 60.8 61.1

6.4

Funding evolution (R$B)

High Quality Liquidity Assets (HQLA) (R$B) 11.7 156% Liquidity Coverage Ratio (LCR)² Other¹ 11.4 154%

61% of funding composed

• f long-term instruments

13

Basel Ratio (%) Risk-weighted assets – RWA (R$B)

16.0 Jun/18 1.9 Mar/19 Jun/19 12.1 16.0 15.8 10.8 3.3 1.9 1.9 2.0 12.2 1.8

CET1 Tier II

Jun/18 9.8 Mar/19 Jun/19 9.3 9.6 9.9 9.8 9.7 Total Capital Shareholders’ Equity 2.3 5.6 2.3 53.1 51.8 Mar/19 Jun/18 6.4 2.1 6.4 53.4 Jun/19 Market Operational Credit 61.8 59.8 61.9

Total Capital and Shareholders’ Equity (R$B)

• 1. On Nov / 17 the Bank issued USD 300M in perpetual bonds, which were approved in Mar/18 to compose complementary CET1.

Note: In 2019, the minimum regulatory capital requirement was 10.5% for the Basel Ratio, 8.50% for Tier I Capital Ratio and 7.00% for CET1

Capital structure

Basel Ratio of 15.8% in Jun/19

Tier I Capital ratio of 14.0%, with 12.2% of CET1

Tier I – Complementary¹

Includes the provision of R$ 400M in dividends

▲ Overview ▲ Strategy ▲ Key indicators ▲ Ratings

15

Banco Votorantim is one of the largest privately-held Brazilian banks in total assets...

10 largest Banks in Mar/19 - Total Assets (R$B)

...and also in terms of loan portfolio

849 789 190 163 93 84 Banco do Brasil 1,517 Bradesco Itaú CEF BTG Pactual BNDES Santander Safra Votorantim 1,142 Cielo S.A. 1,491 1,293

10 largest Banks in Mar/19 - Loan Portfolio¹ (R$B)

State-owned Foreign National privately-held 686 628 544 420 310 292 66 51 34 22 CEF Banco do Brasil Santander Itaú Votorantim Bradesco BNDES Safra Banrisul BTG State-owned National privately-held Foreign

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

Banco Votorantim – Overview

Banco Votorantim is one of the leading banks in Brazil

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

9th 8th

Shareholder 50% Total

Votorantim S.A. Banco do Brasil Ownership Structure

Board of Directors Executive Board Fiscal Council Audit Committee Compensation & HR Committee Advisory Committee Risk and Capital Committee

General Meeting

Management

Corporate Governance Structure

Total: 50.00% ON: 49.99% PN: 50.01% Total: 50.00% ON: 50.01% PN: 49.99%

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Auto Finance Other Businesses Corporate Bank Wealth Management

R$ B Expanded credit portfolio in Jun/19 (includes guarantees provided by the Bank and private securities)

CONSUMER FINANCE WHOLESALE

R$ 61.7B

▲ To focus on used auto finance (multi-

brand dealers), where BV has a history

• f leadership and expertise

▲ To originate portfolios with quality,

scale and profitability

▲ Innovation and digital transformation ▲ Credit Cards and Insurance:

revenue diversification cross-selling to auto customer base

▲ Loans: revenue diversification

• Payroll loans
• Personal loans
• Home equity
• Direct Consumer Credit (solar, student,

tourism, health)

▲ Promotiva: dedicated payroll loans origination

to BB

▲ Corporate (R$300M to R$ 1.5B):

Focus on growing

• cash management, financial structure,

guarantees, working capital, hedge, FX, capital markets and M&A

▲ Large Corporate (>R$ 1.5B):

Focus on increasing profitability

• capital markets, financial structure,

guarantees and treasury

▲ Agility and flexibility to serve ▲ Capital discipline (Risk-Adjusted Return) ▲ Asset: 13th largest in the market, with

innovative products and relevant synergies with BB

▲ R$ 51.0B in AuM ▲ Private: focus on asset management

through tailor-made solutions

Strategy

Diversified business portfolio

Focus on increasing profitability, operational efficiency and diversifying revenues

Banco do Brasil Votorantim S.A.

Shareholders

R$ 5.3B R$ 35.7B R$ 20.7B

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• 1. With and without guarantees; 2. Includes home equity, student credit and solar energy.

Auto finance Loans and financing

Loan portfolio (R$B) Loan portfolio (R$B)

Consumer Finance: increased focus on used auto finance and selective operation in loans agreements

Consumer Finance businesses

INSS Private Public

Consumer Finance Businesses

Payroll loans

▲ Reduction of the exposure of Public and INSS agreements;

growth of the Privado portfolio through new agreements. Personal loans and other businesses

▲ Personal loans ▲ Student loans ▲ Home equity ▲ Solar energy

Partnerships focused on diversification

▲ Neon, GuiaBolso, Yalo, CVC, Quero Quitar! among others

Among market leaders in auto financing, with the following advantages:

▲ Capillarity: presence in ~18,000 car dealerships nationwide;

65 own stores; ~ 1,200 banking correspondents; mobile app

▲ Agility: 95% of proposals with automatic credit decision ▲ Expertise: continuous improvement of management tools ▲ Long-term relationship: access to the 1st customer proposal ▲ Digital transformation: creation of data science and innovation

lab (BV Lab) Mar/19 31.6 (92%) 2.8 3.0 28.8 (91%) Jun/18 2.9 32.7 (92%) Jun/19 New Used 31.6 34.5 35.7 Jun/18

0.8 1.1

2.4

1.0

1.9 1.7 Mar/19 Jun/19 Personal Loans¹ + Other² Payroll loans 3.3 2.8 2.9

18

Focus on increase brokerage revenues, leveraging the Consumer Finance customer base Wide portfolio of insurance and assistance, with more than 15 products:

▲ Life ▲ Dental ▲ Residential ▲ Personal accidents, etc.

Issuance of Elo, Visa and Mastercard credit cards Focus on exploring the current customer base of auto finance... ... and growing organically through new business partnerships (ex.: Netpoints), and investment in new technologies (digital wallet, artificial intelligence, virtual credit card etc.) Active Cards 0.92 0.92 0.89

Consumer Finance Businesses

Credit Cards and Insurance: revenue diversification through cross-selling to auto finance customers

Consumer Finance businesses

Credit Cards Insurance brokerage

Active cards (million) and Loan Portfolio (R$B) Insurance premiums (R$M)

1,99 2,30 2,44 Jun/18 Mar/19 Jun/19 Portfolio 2Q18 54 43 40 138 Credit Insurance 46 1Q19 61 148 64 148 2Q19 Other Auto 255 235 251

19

Wholesale Business

Wholesale: focus on growing in the Corporate segment to improve return on capital and diversify credit risk

• 1. Risk-adjusted return.

Wholesale business

Corporate Bank Highlights and strategy

Wide range of products Foreign currency & FX Local currency & Cash Management Funding Derivatives Corporate Finance Capital market & M&A

Large Corporate (> R$ 1,500M): increase profitability ▲ Focus on capital market operations, financial structuring, guarantees and treasury Corporate bank (R$ 300M to R$ 1,500M): portfolio growth

▲ Focus on cash management operations, financial structuring,

guarantees, working capital, hedge, FX, capital markets and M&A Discipline in capital allocation and risk management (RAR¹) Leverage competitive capabilities

▲ Agility and flexibility to serve clients ▲ Sectoral expertise (infrastructure and agribusiness) ▲ DCM distribution ▲ Officers held accountable for credit

Improvement of cost-to-income ratio

20

Jun/18 Mar/19 6.1% Jun/19 7.6% 5.6%

• 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

Sectoral concentration¹ Loan portfolio

10 major debtors / Total loan portfolio Expanded credit portfolio by product - Wholesale (R$B)

Wholesale: credit portfolio

Wholesale credit portfolio

0.4 3.5 Jun/19 1.5 0.5 Jun/18 Mar/19 0.6 1.6

Private Securities Guarantees provided

22.4 20.4 20.7 8.8 2.3 5.5 4.5 8.6 5.5 8.6 5.5 3.7

Loans Other Onlending (BNDES) Financ Export/Import

On balance loan portfolio

R$M Part.(%) R$M Part.(%)

Telecom 1,356 8.4% 1,438 9.2% Sugar and Ethanol 1,601 9.9% 1,360 8.7% Retail 999 6.2% 1,149 7.4% Financial Institutions 2,280 14.2% 1,142 7.3% Automotive/Auto parts/Car Dealers 642 4.0% 881 5.6% Oil & Gas 503 3.1% 715 4.6% Car Rental 268 1.7% 664 4.3% Food and beverages industry 374 2.3% 599 3.8% Industry 343 2.1% 560 3.6% Railways 605 3.8% 483 3.1% Mining 952 5.9% 475 3.0% Eletricity Generation 263 1.6% 475 3.0% Cooperatives 215 1.3% 401 2.6% Government 485 3.0% 400 2.6% Slaughterhouses 371 2.3% 381 2.4% Steel 171 1.1% 337 2.2% Services 330 2.0% 334 2.1% Agrochemistry 200 1.2% 298 1.9% Civil Construction - Residential 251 1.6% 295 1.9% Agribusiness 288 1.8% 269 1.7% Other 3,596 22.3% 2,949 18.9% Total¹ 16,092 100.0% 15,607 100.0%

Wholesale Sectorial concentration Jun.18 Jun.19

21

Financial highlights

• 1. Net of revenues from recovery of written-off loans. Includes guarantees provided and impairments; 2. Includes profit sharing expenses; 3. Ratio

between net interest income and average interest-earning assets of the period. This ratio is annualized; 4. ER = administrative and personnel expenses / (net interest income+ fee income/ banking fees income + equity in income from subsidiaries + other operational income and expenses);

Financial highlights

Key indicators Managerial Income Statement Balance sheet

Net Interest Income (A) 1,259 1,469 1,530 Result of loan losses¹ (B) (377) (464) (447) Net Financial Margin (A+B) 881 1,004 1,083 Operating Income/Expenses (414) (497) (562) Income from Services and Banking Fees 344 340 343 Personnel² and Administrative expenses (541) (643) (628) Tax expenses (109) (102) (158) Income from subsidiaries 83 91 87 Other Operating Income/(Expenses) (191) (184) (205) Operating Income (Loss) 468 507 521 Non-Operating Income (Loss) (2) 1 (1) Income before Taxes 466 508 521 Income Tax and Social Contribution (210) (172) (169) Net Income 256 336 352 (R$ Million) 2Q18 1Q19 2Q19

CURRENT AND LONG-TERM ASSETS 96,750 91,066 91,183 Cash and cash equivalents 92 157 306 Interbank funds applied 20,658 9,924 6,745 Securities and derivative financial instruments 15,143 20,213 23,132 Derivative financial instruments 4,817 3,748 2,896 Interbank accounts or relations 1,996 1,145 868 Loan Operations, Leases and Others receivables 46,736 48,454 50,347 Alow ance for loan losses (3,622) (3,799) (3,906) Tax credit 7,042 6,621 6,405 Others 3,891 4,605 4,391 NON-CURRENTS 1,404 2,350 2,396 TOTAL ASSETS 98,154 93,417 93,579 CURRENT AND LONG-TERM LIABILITIES 88,766 83,597 83,768 Deposits 12,636 11,200 12,709 Demand and Interbank deposits 1,984 2,165 2,151 Time deposits 10,652 9,034 10,558 Money market borrow ings 22,124 16,651 17,349 Acceptances and endorsements 26,058 30,475 30,509 Interbank accounts 1,199 1,445 1,575 Borrow ings and onlendings 4,111 3,374 3,324 Derivative financial instruments 4,285 3,383 2,506 Others obligations 18,354 17,069 15,795 Subordinated debts 6,352 6,357 6,362 Credit transactions subject to assignment 8,198 6,776 5,575 Others obligations 3,804 3,936 3,858 DEFERRED INCOME 40 32 66 SHAREHOLDERS’ EQUITY 9,349 9,788 9,745 TOTAL LIABILITIES 98,154 93,417 93,579 BALANCE SHEET | Liabilities (R$ Million) Jun.18 Mar.19 Jun.19 BALANCE SHEET | Assets (R$ Million) Jun.18 Mar.19 Jun.19

Return on Average Equity (ROAE) - exponential 11.6 14.8 15.2 Return on Average Equity (ROAE) - linear 11.1 14.0 14.4 Return on Average Assets (ROAA) 1.1 1.4 1.5 Net Interest Margin3 (NIM) 6.1 7.0 7.6 Efficiency Ratio - LTM4 32.9 33.3 32.7 (%) 2Q18 1Q19 2Q19

22

• 1. Considers credit provisions recognized as Liabilities in the "Other“ line (see Note #18d of Financial Statements); 2. Net loss = loans written-off to

losses in the quarter + revenues from credit recovery.

Loan portfolio rated by risk level (%) Allowance for loan losses balance (R$M) Result of loan losses, guarantees and impairments (R$M) Net Loss² (R$M)

Credit quality indicators

Credit quality

11.2%

Sept/18

89.5% 10.8% 88.8%

Jun/18

89.9% 10.1% 89.2%

Dec/18

10.5%

AA-C Mar/19

10.9% 89.1%

Jun/19 D-H

357 215 416 301 393 Net Loss Revenues from recovery Write-off (327) (233) (412) (465) (502) (60) (84) (59) (3) (52) 2

2Q18 4Q18 3Q18

27 59

1Q19

49 6

2Q19

(377) (265) (499) (464) (447) 3.622 3.635 3.631 3.799 3.906 7,4% 7,3% 7,2% 7,4% 7,4% 295 3,942

Jun/18

320

Sept/18

4,031 297 229

Dec/18

233

Jun/19 Mar/19

4,135 3,930 3,928 200 221 114 149 128 557 436 530 450 521

4Q18 3Q18 2Q18 1Q19 2Q19

Specific + Additional Generic¹+ Guarantees Provided ALL balance/Loan portfolio Provisions (-) Revenues from recovery Impairment Guarantees provided

23

1,15% 2,17% 1,15% 0,86% 1,27% 0,92% 0,92% 0,97% 1,38% 1,14% 1,13% 1,25% 0,92% 0.45 0.44

1Q18

0.56

2Q16 2Q17 4Q16

0.47 0.55

3Q16 1Q17

0.46

4Q17

1.02

3Q17 2Q18 3Q18 4Q18 1Q19

0.46

2Q19

0.56 0.64 0.62 0.47 0.54 0.41 0.56 0.93 0.59 0.65 0.43 0.44 0.47 0.53 0.67 0.53 0.56 0.63 New NPL Rate¹

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

New NPL rate

• 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.

Credit quality

Managed Loan Portfolio (A) 46,925 47,031 47,620 46,931 46,828 47,608 48,679 48,185 49,170 49,771 50,478 51,199 52,480 90-day NPL Balance 2,174 2,567 2,638 2,120 2,068 1,947 1,925 1,861 1,969 2,095 2,128 2,310 2,320 90-day NPL Quarterly Variation (B) (80) 393 71 (518) (53) (120) (22) (64) 108 126 34 181 11 Write-off (C) 639 624 469 926 646 549 461 534 557 436 531 449 459 New NPL (D=B+C) 560 1,017 540 408 594 429 439 470 665 562 565 630 469 New NPL Rate¹ (D/A) 1.15% 2.17% 1.15% 0.86% 1.27% 0.92% 0.92% 0.97% 1.38% 1.14% 1.13% 1.25% 0.92% 2Q19 2Q18 1Q18 3Q17 4Q17 NEW NPL (R$ Million) 1Q19 3Q16 2Q16 4Q18 2Q17 1Q17 4Q16 3Q18

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Ratings

Banco Votorantim’ s main ratings

RATING AGENCIES International National

Local Foreign Local

Moody’s

Long-term

Ba2 (stable) Ba3 Aa3.br

Short-term

NP NP BR-1

Standard & Poor’s

Long-term

BB- brAAA

Short-term

B brA-1+

Brazil

Sovereign rating (outlook)

Ba2 (stable) BB- (stable)