Earnings Presentation 4 th Quarter, 2014 Disclaimer: This - - PowerPoint PPT Presentation

Earnings Presentation

4th Quarter, 2014

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.

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Net income of R$ 502M in 2014 and R$ 75M in 4Q14

Banco Votorantim completed its restructuring process and consolidated the return to profitability

Executive summary

Profit of R$ 502M in 2014

Net income totaled R$ 502M in 2014

• Net income of R$ 75M in 4Q14, fifth consecutive quarter of positive results

Consistent revenue generation

Net Interest Income (NII) remained flat in 2014/2013, despite the reduction of 5.8% (R$4.3B) in the average expanded credit portfolio Net Interest Margin¹ (NIM) of 5.0% p.y. in the 2014 – improvement of 0.6 p.p. vs. 2013, , reflecting the focus on profitability (vs. growth)

Drop in delinquency

90-day delinquency dropped to 5.7% in Dec/14, improvement of 0.2 p.p. vs. Sept/14

• Consumer Finance: 90-day NPL at 5.5% in Dec/14 (Sept/14: 6.1%), lowest level since June/11 (5.3%)

Reduction in credit provisions

ALL expenses² reduced 43.4% (or R$ 1.68B) in 2014/2013 90-day Coverage Ratio reached 130% in Dec/14 (Sept/14: 126%; Sept/11³: 78%)

Cost base reduction

Personnel and administrative expenses decreased 4.9% in the 2014/2013 comparison 12-month Efficiency Ratio (ER) reached 36.9% (Dec/13: 40.5%)

• Improvement of the ER is a result of the cost base reduction

Highlights of BV’s results

• 1. Ratio between Net Interest Income and Average Interest-Earning Assets; 2. Net of income from recovery of written-off loans; includes ALL expenses of the portfolios

assigned with recourse; 3. Beginning of the restructuring process

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Banco Votorantim – Overview 4Q14 Results Appendix

Agenda

4 28 45 53 56 202 304 310 372 569 623 Itaú CEF Banco do Brasil Safra

Votorantim

HSBC Santander Bradesco BNDES Banrisul 99 136 139 150 524 824 849

Votorantim

Safra BTG Pactual HSBC Santander BNDES Bradesco CEF 1,019 Itaú 1,070 Banco do Brasil 1,327

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...

Banco Votorantim – Overview

Shareholder 50% Total

10 largest banks in Sep/14¹ - Total Assets (R$B)

...and also in terms of loan portfolio

10 largest banks in Sep/14¹ – Loan Portfolio² (R$B)

1.Dec/14 Central Bank (“Bacen”) data unavailable by the preparation of this presentation; 2. On-balance loan portfolio according to Bacen’s Res. 2,682

10th 8th

Equal representation

• f each

shareholder

Board of Directors Executive board Fiscal Council Audit Committee Compensation & HR Committee Statutory 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

National privately-held Foreign State-owned Foreign State-owned National privately-held

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Diversified business portfolio

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

Shareholders Pillars

Banco do Brasil Votorantim Group

+

R$ 68.7B Expanded³ credit portfolio

Off-balance portfolio²

R$ 1.6B Assigned to BB R$ 0.2B Assigned to FIDCs

Strategy

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: focus on INSS (portfolio refinancing) and Private (growth) Credit cards, insurance, individual loans and CrediCasa (home equity): leverage the existing client base Other synergies with BB: BV Promotora, mortgage, etc. R$ 36.0B R$ 29.4B R$ 6.6B

Wealth

• Mgmt. & BVEP

Asset: 10th largest in the market, with innovative products and growing synergies with BB R$ 40.6B 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 of

financial solutions

• Efficient capital management

Wholesale R$ 32.7B

• 1. Assets under management 2. Securitization with substantial risk retention before entry in force of Bacen’s Res. 3,533; 3. Includes guarantees provided and private securities

6

Highlights Corporate & Investment Bank (CIB)

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

Wholesale Businesses

Expanded¹ credit portfolio (R$B) Disciplined approach to capital usage

• Credit selectivity
• Focus on products with low capital consumption (FX, IB)
• Active management of the credit portfolio
• Reduced exposure to the “lower middle market”

– Focus on companies with annual revenues > R$200M Increased relevance of BV to its target clients

• Strengthening of the product portfolio
• Enhancing international distribution (NY and London)

Focus on capturing synergies in the origination and structuring of Credit, Capital Markets, Derivatives and FX operations

Wholesale businesses

∆Dec14 /Sept14 Guarantees provided 9.8 11.1 Loans 17.3 18.2

Large companies Mid-sized companies

Dec/14 32.7 27.0 5.7 Sept/14 32.3 26.2 6.0 Dec/13 35.1 27.5 7.6

2013 3.8 2014 1.3

Local Fixed Income Distribution Ranking²

Distributed amount (R$B)

7th 4th

• 1. Includes on-balance portfolio (loans), guarantees provided (sureties and endorsements) and private securities; 2. “Ranking Anbima de Distribuição – Renda Fixa Consolidado” (Dec/14)

Note: Medium companies are those with annual revenues up to R$600M

+2.9%

• 4.8%

+1.5% 9.9 17.5

7

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

Payroll Loans Auto Finance Consumer Finance Businesses

Managed loan portfolio (R$B) Managed loan portfolio (R$B)

Consumer Finance businesses

Among market leaders in auto financing Operates as an extension of Banco do Brasil in auto financing (outside BB´s branch network) Continuous improvement of credit processes

• 78%² automated credit decisions in Dec/14

(Dec/13: 65%; Dec/12: 45%; Jan/12: 28%) Focus on refinancing the INSS payroll loan portfolio (retirees and pensioners)… ...and on increasing the private payroll loan portfolio Continuous improvement of credit processes Used/ Total¹ 81% 75% INSS/ Total¹ 66% 62% ∆Dec14 /Sept14 ∆Dec14 /Sept14 On- balance Off- balance Dec/14 30.6 29.4

1.2

Sept/14 31.1 29.3

1.7

Dez/13 33.7 29.9

3.8

On- balance Off- balance Dec/14 5.9 5.4 0.5 Sept/14 6.2 5.5 0.7 Dez/13 7.6 6.3 1.3

• 1. Only on-balance portfolio; 2. Refers to light vehicles
• 29.1%

+0.2%

• 1.4%
• 22.9%
• 5.1%
• 2.9%

8

Auto finance: financing of used cars grew by 11% on 2014/2013, to R$11.4B Continued focus on quality and profitability

• f the new auto finance vintages

Dec/14 11.75 26.7 Sept/14 11.0 26.1 Dec/10 10.75 24.6 Down payment Average term

Consumer Finance – auto finance

26% 40% 40% 44 44 52 4Q14 3Q14 4Q10 BV Financeira (vehicles) Selic +2.7% Used cars Other vehicles¹ 2014 14.2 11.4 (80%) 2.8 2013 13.8 10.2 (74%) 3.6 2012 11.4 7.8 (68%) 3.7

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

• 1. New light vehicles, trucks and motorcycles; 2. Market’s benchmark interest rate (Bacen)

Auto finance origination (R$B) Down payment (%) and average term (months) Auto finance interest rate x Selic² rate (% p.y.)

Auto finance: used car financing grew 11% in 2014

Greater focus on used light vehicles and maintenance of tight credit standards

∆2014/ 2013 +11.1%

• 21.5%

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Highlights Wealth Management & Services

Wealth Management: Asset focused on high value-added products and Private Bank focused on estate management

Assets under management¹ (R$B) +3.0% Dec/14 40.6 Sept/14 41.7 Dec/13 39.4 Asset Management

• Focus on high value-added structured products
• “Top Gestão 2014 – Renda Fixa³”: Fixed Income award
• Synergies with BB: R$ 5.0B AuM of partnership funds, e.g.

– BB Votorantim Highland Infraestrutura4 (FIDC) – 2013 – BB Progressivo II (FII) – 2012 – BB Renda Corporativa (FII) – 2011 – BB Votorantim Energia Sustentável (FIP) – 2011 Private Bank

• Focus on High and Ultra High clients (assets > R$ 25M)
• Integrated estate management, through differentiated and

custom-made solutions

• ISO 9001:08 certification

BVEP – BV Empreendimentos e Participações

• Focus on real estate, residential, commercial

and logistic projects (SP, RJ, MG and DF)

Wealth Management Businesses

Wealth Management businesses

ANBIMA ranking² 10th 10th 10th

• 1. Includes onshore funds (ANBIMA criteria) and private clients’ assets (fixed income, equities and offshore funds); 2. Managers’ ranking; 3. Awarded by the Valor Investe

magazine, along with Standard & Poor’s, in the “largest asset managers” category; 4. Infrastructure fund launched that raised R$ 300M at the time of launch

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Banco Votorantim – Overview 4Q14 Results Appendix

Agenda

11

75 135 140 152 121

• 159
• 196
• 278

2Q14 3Q14 1Q14 4Q13 3Q13 2Q13 1Q13 4Q14

Net income of R$ 502M in 2014

5th consecutive quarter of positive results

Consolidated results

Net Income evolution (R$M)

• 512M

502M +1,014M

Bank completed its restructuring process in 2014 In 2015, earnings growth is expected

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Net Interest Income (A) 1,165 1,081

• 7.2%

4,615 4,586

• 0.6%

ALL expenses¹ (B) (451) (505) 11.9% (3,875) (2,193)

• 43.4%

Net Financial Margin (A+B) 714 576

• 19.3%

740 2,393 223.5% Operating Income/Expenses (527) (548) 3.9% (1,883) (1,936) 2.8% Income from Services and Banking Fees 249 276 10.9% 1,030 975

• 5.3%

Personnel and Administrative expenses (661) (613)

• 7.2%

(2,575) (2,449)

• 4.9%

Tax expenses (118) (104)

• 11.4%

(515) (442)

• 14.1%

Equity in Income of Associated Companies and Subsidiaries 36 37 2.3% 109 148 35.5% Other Operating Income/Expenses (34) (107) 215.0% 68 (131)

• Operating Income (Loss)

187 29

• 84.7%

(1,144) 457

• Net Income (Loss)

135 75

• 44.6%

(512) 502

• 2013

3Q14

• Var. 4Q14

/3Q14 4Q14 2014

• Var. 2014

/2013 (R$ million)

Continued evolution of results’ fundamentals, with higher Net Financial Margin (post-provisions) and lower expenses

Highlights of BV’s results

Consistent revenue generation, drop in ALL expenses and reduction of the cost base

Consolidated results

Managerial Income Statement

• 1. Includes expenses related to credit assignments with recourse (both on and off-balance), as well as revenues from write-off recovery

Note: “ALL” stands for allowance for loan losses

1 2 3

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Consistent revenue generation

Net Interest Margin (NIM) increased in 2014, reflecting the focus on profitability

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

transactions, securities and loan portfolio

Net Interest Income

Net Interest Income (NII) remained flat in 2014... ...despite the reduction of the expanded credit portfolio

Net Interest Income (R$M) e NIM¹ (% p.y.)

4,586

• 0.6%

2014 5.0% 2013 4,615 4.4%

• 5.8%

2014 69.5 2013 73.8

Average expanded² credit portfolio (R$B)

NIM 92.3 104.4 Average interest- earning assets³ (R$B)

1

Focus on profitability (vs. asset growth)

Net Interest Income (NII)

14

Large Companies

• 5.0%

+0.7% Mid-sized Companies Auto Finance Payroll Loans Other¹ Dec/14 68.7 27.0 5.7 29.4 5.4 Sept/14 68.2 26.2 29.9 6.3 6.0 29.3 5.5 June/14 68.8 25.7 6.6 29.6 5.8 Mar/14 69.7 25.4 7.3 30.0 6.0 Dec/13 72.3 27.5 7.6

Maintenance of the conservative approach to credit

Expanded credit portfolio decreased in 2014, but resumed growth in 4Q14

Credit portfolio by segment

• 1. Credit cards and individual loans; 2. Not included in the expanded credit portfolio

Note: Expenses with pre-payment of credit assignments with recourse pre-Res. 3,533 totaled R$84M in 2014 vs R$265M in 2013

1

1.8 5.1 2.4 Off-balance securitization² (pre-Resolution 3,533) 2.9% 0.2% ∆Dec14 /Sept14 CIB

• 2.9%
• 4.8%

Expanded credit portfolio (R$B)

(includes guarantees provided and private securities)

3.2 4.1

Gradual reduction in the “lower middle”

15

Dec/14 1.3 June/14 1.0 Dec/13 1.3 June/13 Dec/12 1.1 June/12 Dec/11 1.0 June/11 Dec/10 2.1 June/10 Dec/09 1.5 June/09 1.1

Auto Finance: BV has been originating quality auto finance for over 3 years, focused on used cars

Inad 30¹ (by vintage) Multi-brand dealers New car dealers

Consumer Finance – Auto Finance

June09- June10 average 11% 27% 48% 62% Dec/14 Dec/13 Dec/12 Dec/11

2 Car financing – Origination by channel (R$B) and first payment default (Inad 30¹, %)

Lower quality vintages / Managed auto finance portfolio²

Vintages indicating lower quality

Growing participation of better quality vintages has contributed to reduce credit provision expenses

• 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

16

ALL expenses reduced 43% in the 2014/2013

90-day coverage ratio reached 130% in Dec/14, despite the reduced ALL balance

417 378 293 849 212 +11.9% 4Q14 505 3Q14 451 74 4Q13 1,266

• 43.4%

2014 2,193 1,635 558 2013 3,875 2,382 1,494 130% 147% Dec/14 3,154 4,096 Sept/14 3,273 4,114 126% Dec/13 3,081 4,514

• 1. Includes expenses related to credit assignments with recourse, as well as revenues from write-off recovery; 2. Ratio between ALL balance and balance of operations

past due over 90 days; 3. Beginning of Banco Votorantim’s adjustment process

Allowance for loans losses (ALL) expenses reduced 43.4% (R$1.68B) in 2014/2013 90-day Coverage increased to 130% in Dec/14, reflecting the lower 90-day NPL balance

Credit indicators – ALL and 90-day Coverage

Wholesale

Cons. Finance 78% in Sept/11³

2

90-day NPL balance of operations (R$M) ALL balance (R$M)

• 63%
• 31%

∆2014 /2013

90-day

• Cov. Ratio

Expenses¹ with credit provisions – ALL (R$M) Managed loan portfolio’s 90-day Coverage Ratio² (%)

17

The “ALL expenses / loan portfolio” ratio ended 2014 with the lowest level in four years

Credit Indicators– ALL/credit portfolio

Note: “ALL” stands for allowance for loan losses; Managed loan portfolio Includes on-balance portfolio and credit assignments with recourse (off-balance) (pre-Res 3,533)

2014 2,193 3.8% 2013 3,875 6.1% 2012 5,092 6.9% 2011 3,405 4.5% ALL Expenses / Managed Portfolio average (%) ALL Expenses (R$M)

2 ALL Expenses / Managed loan portfolio – period average(%)

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1 2 3 4 5 6 7 8 9 10 % Dec/14 6.2% 5.7% 5.5% Sept/14 5.4% 5.9% 6.2% June/14 6.2% 6.5% 6.6% Mar/14 5.0% 6.2% 6.6% Dec/13 1.9% 5.1% 6.6% Sept/13 2.1% 5.5% 6.9% June/13 2.4% 5.7% 7.1% Mar/13 Dec/12 2.4% 6.6% 8.3% 2.3% 6.2% 7.7%

90-day ratio reduced to 5.7%in Dec/14 (5.9% in Sept/14)

Excluding a specific Wholesale case, the 90-day NPL rate ended Dec/14 at 4.7%

• 1. Specific case that, by the end of Dec/14, was classified in the “G” risk level, with 90% of provisioning (R$ 541M)

Note: credit Portfolio was reviewed in Nov/14 and 90-day history adjusted

Dec/14 2.9% 4.7% Sept/14 2.1% 4.8% June/14 2.8% 5.4% Mar/14 1.6% 5.1% Dec/13 1.9% 5.1%

Excluding specific Wholesale case¹

Credit indicators – Delinquency

2 90-day NPL / Managed loan portfolio (%)

Wholesale Total Consumer Finance

The Consumer Finance 90-day NPL reduced 1.0 p.p. YoY, displaying the improvement of the loan portfolio quality

19

875 912 406 219

• 4.9%

2014 2,449 1,131 2013 2,575 1,482

∆ 2014/2013 % R$M

298 291 241 233 121 89

• 7.2%

Administrative Other Personnel Labor Lawsuits² 4Q14 613 3Q14 661

Cost base reduction

Personnel and administrative expenses reduced 4.9% in 2014, compared to 6.4% IPCA¹

Personnel and administrative expenses

• 1. The IPCA price index reached 6.41% in 2014 2. Labor Lawsuits includes provisions related to labor claims and payment of labor reparations

3

• 23.7%

+4.3%

• 4.9%

+85.6%

• 351

+37

• 127

+187 Personnel

Personnel and Administrative expenses (R$M)

Cost base reduction has contributed to the improvement of operational efficiency

20

Operational efficiency has improved in the last 12 months

12-month Efficiency Ratio ended 2014 in 36.9% vs. 40.5% in 2013

Total Personnel¹ and Administrative expenses (A) 627 540 524

• 2.9%

Total Revenues (B) 1,859 1,416 1,250

• 11.7%

Net Interest Income (NII) 1,226 1,165 1,081

• 7.2%

Fee/Banking Fee Income 282 249 276 10.9% Equity in Income of Associated Companies and Subsidiaries 35 36 37 2.3% Other Operating Income/Expenses 315 (34) (144) 323.1% Efficiency Ratio - quarter (A/B) 33.8% 38.1% 41.9% 3.8 p.p. Efficiency Ratio - 12 months 40.5% 34.9% 36.9% 2.0 p.p. 4Q13 3Q14

• Var. 4Q14

/3Q14 EFFICIENCY RATIO (ER) (R$ million) 4Q14

Efficiency Ratio

3

• 1. Personnel Expenses excludes expenses with Labor Lawsuits

21

502

• 512

2014 2,393 2013 740 75 135 576 714 4Q14 3Q14

Summary: Net income of R$ 502M in 2014

Consistent revenue generation, drop in ALL expenses and reduction in cost base

Net Interest Income (NII) Credit provision expenses – ALL Personnel and Administrative expenses Net income and Net Financial Margin

R$ million

Consolidated results

4Q14 1,081 3Q14 1,165 298 291 362 321 Admin. Personnel 4Q14 613 3Q14 661 378 293 212 Cons. Finance Wholesale 4Q14 505 3Q14 451 74 Net Margin (post-provisions) Net Income

• 0.6%

2014 4,586 2013 4,615

• 43.4%

2014 2,193 1,635 558 2013 3,875 2,382 1,494

• 4.9%

2014 2,449 1,131 1,318 2013 2,575 1,482 1,094

• 63%
• 31%

∆2014 /2013

22

Funding profile improved over the past 12 months

Bills and Credit Assignments represent 44% of total funding (38% in Dec/13)

Funding

Funding evolution in R$ billions Funding evolution in % share

Dec/14 72.3 16.3 15.2 17.4 6.2 6.7 6.6 2.4 1.4 Sept/14 72.4 16.0 15.5 14.4 7.0 6.5 6.1 3.2 3.7 Dec/13 75.6 15.7 12.8 16.1 7.4 6.7 6.9 5.8 4.3 17% 21% 21% 24% 10% 9% 9% 9% 9% 9% 8% 6%

Bills (LF, LCA and LCI) Credit assignments² Debentures (repos) Subordinated Debt Loans and onlendings Securities abroad Time deposits (CD)

Dec/14 72.3 23% 3% 2% Dec/13 75.6 21%

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

• 1. Includes other deposits, debenture issuances, and box of options; 2. Credits assigned with substantial risk retention to FIDCs e to other FI, under Res. 3,533 (i.e. does not

include off-balance credit assignments). Note: International funding is 100% swapped for BRL

Other¹

23

Total Capital 11,217 10,770 11,052 11,190 11,276 Tier I Capital 7,100 7,029 7,256 7,344 7,159 Common Equity Tier I 7,100 7,029 7,256 7,344 7,159 Additional Tier I

• Tier II Capital

4,117 3,741 3,796 3,847 4,117 Risk Wighted Assets (RWA) 77,309 74,299 73,119 73,223 75,375 Credit risk 71,990 68,624 66,709 66,967 67,932 Market risk 1,678 1,513 2,248 2,067 3,255 Operational risk 3,641 4,162 4,162 4,188 4,188 Minimum Capital Requirement 8,504 8,173 8,043 8,055 8,291 Basel Ratio (Capital/RWA) 14.5% 14.5% 15.1% 15.3% 15.0% Tier I Capital Ratio 9.2% 9.5% 9.9% 10.0% 9.5% Common Equity Tier I Ratio 9.2% 9.5% 9.9% 10.0% 9.5% Additional Tier I Ratio

• Tier II Capital Ratio

5.3% 5.0% 5.2% 5.3% 5.5% Mar.14 BASEL RATIO (R$ Million) Dec.13 Dec.14 June.14 Sept.14

Basel Ratio of 15.0% in Dec/14 (14.5% em Dec/13)

Tier I Capital of 9.5%, entirely composed by Common Equity

Capital structure

24

Banco Votorantim – Overview 4Q14 Results Appendix

Agenda

25

• 2.8%

Dec/14 40.6 Sept/14 41.7 June/14 40.6 Mar/14 40.6 Dec/13 39.4 +0.7% Dec/14 98.7 Sept/14 98.0 June/14 96.3 Mar/14 104.6 Dec/13 105.5 0.3%

Consumer Finance CIB

Dec/14 53.5 36.0 17.5 Sept/14 53.3 36.0 17.3 June/14 53.6 36.4 17.2 Mar/14 54.4 37.0 17.3 Dec/13 55.4 37.2 18.2

• 1.7%

Dec/14 7.55 Sept/14 7.68 June/14 7.59 Mar/14 7.34 Dec/13 7.14

Total Assets Assets under Management¹ On-balance loan portfolio

Financial highlights

Financial highlights

R$ billion

Shareholders’ Equity

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

26

Wholesale: concentration by economic sector

Credit portfolio

Note: excludes private securities

R$M Part.(%) R$M Part.(%) Financial Institutions 4,113 15.7% 4,201 16.0% Sugar and Ethanol 2,251 8.6% 2,160 8.2% Telecom 2,026 7.7% 2,066 7.9% Retail 1,614 6.2% 1,898 7.2% Agribusiness 1,135 4.3% 1,323 5.1% Petrochemical 1,003 3.8% 1,078 4.1% Agro Trading 992 3.8% 984 3.8% Eletricity Generation 926 3.5% 828 3.2% Metallurgy 785 3.0% 748 2.9% Railw ays 727 2.8% 731 2.8% Pulp and Paper 638 2.4% 700 2.7% Services 622 2.4% 665 2.5% Road Cargo Transportation 651 2.5% 663 2.5% Heavy Construction 834 3.2% 640 2.4% Mining 582 2.2% 590 2.3% Eletricity Distribution 301 1.1% 556 2.1% Oil & Gas 468 1.8% 525 2.0% Government 459 1.7% 524 2.0% Automotive 469 1.8% 503 1.9% Capital Goods 496 1.9% 396 1.5% Other sectors 5,141 19.6% 4,406 16.8% Total 26,233 100.0% 26,185 100.0% Sept/14 Dec/14 Wholesale - Sectoral concentration

27

Net Interest Margin (NIM)

NIM evolution in last quarters reflects the focus on profitability (vs. growth) and the improved asset quality

Net Interest Income (A) 1,226 1,165 1,081

• 7.2%

4,615 4,586

• 0.6%

ALL Expenses (1,266) (451) (505) 11.9% (3,875) (2,193)

• 43.4%

Net Financial Margin (40) 714 576

• 19.3%

740 2,393

• Average Interest-Earning Assets (B)

100,020 89,222 89,774 0.6% 104,378 92,259

• 11.6%

Compulsory Reserves (Bacen) 113 56 52

• 7.6%

477 71

• 85.1%

Interbanks Funds Applied 13,821 8,888 9,295 4.6% 15,077 9,774

• 35.2%

Securities 30,924 26,839 27,046 0.8% 32,913 28,389

• 13.7%

Loan Portfolio 55,163 53,439 53,381

• 0.1%

55,911 54,025

• 3.4%

NIM (A/B) - quarter 5.0% 5.3% 4.9%

• 0.4 p.p.

4.4% 5.0% 0.6 p.p.

NET INTEREST MARGIN (NIM)

(R$ million)

• Var. 2014

/2013 3Q14

• Var. 4Q14

/3Q14 4Q13 2013 2014 4Q14

Financial highlights

28 Sept/14 7.4% 4,114 June/14 7.6% 4,308 Mar/14 7.6% 4,421 Dec/13 7.5% 4,514 7.4% 4,092 Dec/14 130% 126% 118% 124% 147% Sept/14 3,273 June/14 3,662 Mar/14 3,563 Dec/13 3,081 Dec/14 3,154 ALL balance / Managed loan portfolio ALL balance (R$M) Sept/14 5.4% 5.9% 6.1% June/14 6.2% 6.4% 6.5% Mar/14 5.0% 6.1% 6.5% Dec/13 1.9% 5.1% 6.5% Dec/14 5.5% 5.7% 6.2% Sept/14 5.4% 6.0% 6.2% June/14 6.2% 6.6% 6.8% Mar/14 5.0% 6.2% 6.8% Dec/13 1.9% 5.2% 6.8% Dec/14 5.6% 5.8% 6.2% Wholesale Total

• Cons. Finance

90-day NPL balance Coverage Ratio Wholesale Total

• Cons. Finance

Credit quality indicators

ALL Balance (R$M) 90-day Coverage ratio¹ (%) 90-day NPL / Managed loan portfolio (%) 90-day NPL / Credit loan portfolio (%)

• 1. Ratio between ALL balance and balance of operations past due over 90 days

Note: refers to managed loan portfolio (includes credits assigned with substantial risk retention until Dec/11 (before Res. 3,533))

Credit portfolio

29

Managed Loan Portfolio (A) 76,775 74,185 71,481 68,169 65,923 63,546 61,281 60,539 58,465 56,806 55,712 55,231 90-day NPL Balance 5,390 5,539 5,276 4,520 4,056 3,616 3,373 3,081 3,563 3,662 3,273 3,154 90-day NPL Quarterly Variation (B) 793 149 (262) (756) (465) (439) (244) (292) 482 99 (388) (119) Write-off (C) 693 1,079 1,269 1,439 1,144 1,339 902 869 832 860 771 666 New NPL (D=B+C) 1,486 1,228 1,007 683 680 900 659 578 1,314 959 383 547 New NPL Rate¹ (D/A) 1.88% 1.60% 1.36% 0.95% 1.00% 1.36% 1.04% 0.94% 2.17% 1.64% 0.67% 0.98% 4Q12 2Q14 3Q14 4Q14 1Q13 2Q13 3Q13 4Q13 1Q14 NEW NPL (R$ million) 1Q12 2Q12 3Q12

0.98% 0.67% 1.64% 2.17% 0.94% 1.04% 1.36% 1.00% 0.95% 1.36% 1.60% 1.88% 4Q14 2Q14 0.55 0.67 3Q14 4Q13 0.38 0.87 0.77 0.86 1Q14 0.83 1.31 0.96 0.58 3Q13 0.90 0.66 2Q13 1.34 0.90 1Q13 1.15 0.68 4Q12 1.43 0.68 3Q12 1.27 1.01 2Q12 1.08 1.23 1Q12 0.69 1.49

New NPL rate

New NPL rate

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

Impact of specific Wholesale case

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

Credit portfolio

30

Banco Votorantim’s main ratings

Ratings RATING AGENCIES International National Long-Term Short-Term Long-Term Short-Term Long-Term Short-Term Fitch Ratings Local Currency Foreign Currency National BBB- F3 BBB- F3 AA+(bra) F1+(bra) Moody’s Local Currency Deposits Foreign Currency Deposits National Baa2 P-2 Baa2 P-2 Aaa.Br BR-1 Standard & Poor's Local Currency Foreign Currency National BB+ B BB+ B brAA+ braA-1

Banco Votorantim is rated Investment Grade by Fitch & Moody’s