APIMEC Meetings
Disclaimer This presentation may include references and statements, planned synergies, estimates, projections of results, and future strategy for Banco do Brasil, its Associated and Affiliated Companies, and Subsidiaries. Although these references and statements reflect the management s belief, they also involve estimates and unforeseen risks. Consequently, results may differ 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 do Brasil is not responsible for updating any estimate in this presentation.
Adjusted Net Income R$ billion 16.3 18.0 15.5 17.1 16.1 25.6 15.2 15.7 14.2 14.0 16.1 15.5 15.8 15.1 12.7 2.7 2.6 3.0 2.4 2.7 2.4 2.8 3.0 2.8 2.9 7.9 8.3 8.3 3Q13 4Q13 1Q14 2Q14 3Q14 9M13 9M14 Net Income Adjusted Net Income ROE - % Adjusted ROE - % 3
Ownership Structure and Value Creation Ownership Strucuture (%) Amount Distributes (Dividends and Interest on Own Capital) R$ billion Free Float 29.2 6.3 National Treasury¹ Previ 8.7 2.3 4.7 4.9 4.9 5.1 Foreign Investors 20.1 3.3 Other Treasury Shares 10.4 58.4 2010 2011 2012 2013 9M13 9M14 (1) It considers BNDES and government investment funds. 4
Leaderships Assets (R$ billion) Loan Portfolio¹ (R$ billion) 22.3% Market Share¹ 1 o 21.1% 1 Market o 1,431.6 Share 2 732.7 1,157.6 987.4 536.3 444.2 BB Bank A Bank B (1) Source: Central Bank of Brazil Market Share of June/14. Deposits (R$ billion) BB Bank A Bank B (1) It includes Private Securities and guarantees providaded. (2) Source: Central Bank of Brazil Domestic Portfolio Market Share Branches 26.1% Market Share¹ 1 o 23.9% Market 1 o 468.8 Share¹ 5,493 281.0 211.9 4,160 4,659 BB Bank A Bank B (1) Source: Central Bank of Brazil Market Share of June/14. BB Bank A Bank B (1) Source: Central Bank of Brazil Industry Market Share. 5
Businesses Funding Loan Portfolio Asset Quality Other businesses Indicators 6
Commercial Funding R$ billion 12 months Interbank Deposits Repo Demand Deposits LCA + LCI 1 Savings Deposits Time Deposits 450.5 14.5 62.0 7.4 100.1 0.7 515.7 16.6 74.8 34.1 117.7 9.6 607.2 27.2 33.6 75.8 82.6 140.7 623.5 28.5 41.2 69.5 113.5 149.0 10.0% 61.9% 11.0% 265.8 263.0 247.3 221.8-10.0% Dec/11 Dec/12 Dec/13 (1) LCA - Agribusiness Letter of Credit; LCI - Real State Letter of Credit. 7
Foreign Borrowings and Assets Under Management US$ billion R$ billion Foreign Borrowings Assets Under Management¹ 34.6 3.5 3.1 7.0 45.0 2.2 3.2 11.2 10.9 51.2 2.4 3.2 10.1 15.3 51.4 3.2 0.8 8.4 16.7 1 o 22.0 % Market Share² 415.8 444.0 493.7 +12.6% 555.8 10.0 17.5 20.1 22.4 11.0 Dec/11 Dec/12 Dec/13 Dec/11 Dec/12 Dec/13 (1) Managed Funds and Portfolios. (2) It does not includes Banco Votorantim s figures. 8
Loan Portfolio Broad Concept¹ R$ billion Market Share(%)² 19.2 20.3 21.1 21.1 12.3% in 12 months 580.8 50.2 692.8 57.8 144.8 732.7 57.2 158.4 Offshore Agribusiness Individuals Companies 465.1 35.0 89.4 130.6 108.0 152.0 167.9 175.1 210.2 270.6 322.3 342.0 Dec/11 Dec/12 Dec/13 (1) It includes private securities and guarantees provided. (2) Domestic Loan Portfolio/ Bank Industry Total. Source: Central Bank of Brazil. 9
Organic Loan Portfolio¹ ² R$ billion +12.0% 130.0 142.3 14.9 145.6 14.9 14.7 19.3 19.9 17.8 Other Credit Cards Payroll + Salary Loans + Auto Loans + Mortgage 97.5 75.0% 108.2 110.8 76.1% Jun/14 (1) Classified Concept. (2) It does not include BV operations and acquired portfolios. 10
Growth in lower risk lines Payroll (R$ billion) 61.6 +2.3% 63.4 63.1 25.8% de Market Share Organic Portfolio 88.2% Civil Servants 7.8% INSS s Retirees and Pensioners 4.0% Private Sector Employees Jun/14 Mortgages (R$ billion) Auto Loans Organic Portfolio(R$ billion) 20.2 4.5 15.8 +73.1% 32.0 8.4 23.5 35.0 9.3 25.7 108% 63.2% 12.0 61.9% 19.3% 18.8% 10.9 64.6% 17.6% 17.8% 10.5 65.2% 17.7% 17.1% Jun/14 Mortgage with Companies Mortgage with Individuals Jun/14 Account Time Over 10 years Up to 5 years From 5 to 10 years 11
Loans to Companies Broad Concept¹ +12.8% R$ billion Other Trade Finance Guarantees Working Capital Investment + Corp. Bonds & Notes 303.3 12.0 15.5 19.1 164.4 335.3 16.9 16.1 19.5 181.2 342.0 17.9 15.9 19.2 182.6 92.3 101.7 106.4 Jun/14 (1) It includes Private Securities and Guarantees provided. 12
Loans to Companies Broad Concept Corporate portfolio by Size SME Portfolio FGO and Fampe¹ R$ billion 303.3 +12.8% 335.3 101.1 342.0 101.5 7.5% 20.4 +15.0% 23.3 3.6 23.5 3.6 94.4 3.6 208.9 234.2 240.5 15.2% 16.8 19.7 19.9 Jun/14 Jun/14 Micro and Small Enterprises Medium and Large Companies FGO Fampe (1) Operations Guarantee Fund and Fampe a SME guarantee fund. 13
Agribusiness Agribusiness Loan Portfolio¹ (R$ billion) Mitigators Use (Working Capital for Input Purchase) +21.8% 157.2 158.4 Vintage 14/15 () 130.1 42.5 47.5 47.7 12.2% 64.0% 36.0% Insured Not insured 87.6 109.7 110.7 26.4% Vintage 13/14 () 34.8% Insured Jun/14 65.2% Not insured Companies Individuals (1) It includes Rural Product Bills and guarantees provided. 14
Agribusiness Vintages Plans¹ 1 o 63.2 % Market Share +16.4% R$ billion 70.0 76.3 81.5 61.6 55.1 Objective Disbursement 41.9 39.0 45.7 48.2 20.6 2010/2011 2011/2012 2012/2013 2013/2014 2014/2015 (1) Amounts relating to rural credit. 15
Banco Votorantim BV Lightweight Vehicles¹ : Production per Business Channel and Delinquency BV Net Income(R$ million) 9.1 6.5 5.9 121 152 140 135 3.3 3.4 2.5 2.6 2.8 2.0 0.5 0.7 0.6 (159) 3Q12 3Q13 3Q14 3Q13 4Q13 1Q14 2Q14 3Q14 Multi-brand car dealers (R$ billion) Car dealers (R$ billion) NPL 90 - Managerial Loan Portfolio (%) (1) Comprised of CDC veículos (Autos Consumer Credit) and vans. 16
Asset Quality Average Risk¹ (%) 5.83 5.66 5.73 5.08 4.83 4.82 4.16 4.10 3.57 3.66 Sep/10 Sep/11 Sep/12 BB Average Risk BI Average Risk Risk Level Jun/14 (%) Coverage Ratio +90 days² (%) BB 5.2 SFN 6.9 201.0 211.2 218.4 191.9 185.9 171.2 161.3 150.9 154.0 161.0 94.8 93.1 Sep/10 Sep/11 Sep/12 AA-C Level D-H Level BI Average Risk BB Average Risk (1) Required Provision / Classified Loan Portfolio (2) Required Provision + Additional / Overdue +90 Days 17
Delinquency NPL Ratio +90 days (%) 3.41 3.51 3.80 3.30 3.00 2.66 2.19 2.03 1.97 2.09 Sep/10 Sep/11 Sep/12 Banco do Brasil Banking Industry NPL 15 Days (%) NPL 90 Days (%) 4.4 4.1 4.6 4.3 4.1 2.5 2.6 2.4 2.4 2.7 3.6 1.1 3.3 1.2 3.8 1.1 3.8 0.9 4.3 1.1 2.2 0.7 2.3 0.8 2.2 0.7 2.3 0.6 2.4 0.6 Dec/13 Mar/14 Jun/14 Dec/13 Mar/14 Jun/14 Individuals Companies Agribusiness Individuals Companies Agribusiness 18
Fee Income Fee Income (R$ billion) Other Businesses 23.3 21.1 18.2 16.2 17.1 18.3 51.2% 2010 2011 2012 2013 9M13 9M14 19
BB Seguridade Adjusted Net Income (R$ million) Insurance s Premiums and Collection 49.1% 2,316 Insurance s Premiums Market Share % Ranking Vehicle¹ 15.1 2º 1,553 Life 19.2 1º Mortgage 6.6 3º Rural 67.0 1º +50.1% 548 845 822 Collection Market Share % Ranking Pension Plan² 38.0 1º Premium Bond 25.9 1º 3Q13 2Q14 3Q14 9M13 9M14 (1) It does not consider DPVAT (2) It considers PGBL + Traditional + VGBL 20
Cards Total Turnover (R$ billion) Elo Cards Brand: Turnover and Card Base 20.8 20.9 23.2 24.1 24.9 6.2 7.2 7.2 2010 2011 2012 2013 Jun/14 52.4 +12.7% 59.2 59.0 +10.1% 6.1 21.5 25.5 23.5 3.9 4.2 30.9 33.8 35.6 3Q13 2Q14 3Q14 3Q13 2Q14 3Q14 Credit Cards Debit Cards Market Share- %¹ Turnover R$ billion Card Base R$ million (1) Turnover, Source: Abecs 21
Administrative Expenses and Cost to Income Ratio Cost to Income Ratio (%)¹ R$ billion 44.0 42.9 43.2 44.3 43.4 44.0 30.1 28.2 24.8 22.6 12.4 13.1 Personnel Expenses Other Expenses 10.3 10.8 21.7 +8.5% 23.6 9.3 10.0 12.2 13.9 15.8 17.1 12.4 13.6 2010 2011 2012 2013 9M13 9M14 (1) Administrative Expenses / Operating Revenues. Data from the Income Statement with Reallocations. Accumulated in 12 months. 22
BIS Ratio¹ ² % 15.31 5.49 14.19 4.06 16.04 4.53 Tier I Tier II 9.82 10.13 11.51 Jun/14 (1) Financial Consolidated. (2) Methodology used since Oct. 01st., 2013, according to CMN Resolution 4.192/2013. 23
Guidance % 2014 Guidance 2014 Performance 2014 Revised guidance Adjusted Return on Equity¹ 14-17 15.2 Unchanged Net Interest Income 5-9 7.3 Unchanged Commercial Funding² 14-18 10.0 12-16 Domestic Loan Portfolio³ - Broad Concept 14-18 13.1 12-16 Individuals 12-16 6.9 8-12 Companies 14-18 12.8 12-16 Agribusiness 18-22 21.8 16-20 Allowance for Loan Losses⁴ 2.7-3.1 2.8 Unchanged Fee Income 6-9 6.7 Unchanged Administrative Expenses 5-8 8.5 Unchanged (1) Adjusted ROE estimated for 2014 uses estimated adjusted shareholders equity, free from the effects of: (i) the restatement of assets and actuarial, liabilities arising from the Deliberation CVM/695; (ii) Corporate Profit Sharing; and (iii) as of, was also excluded the amount of R$ 8.1 billion related to the reclassification of the debt instruments eligible as core capital for shareholders equity of the Bank. (2) Commercial Funding includes Total Deposits, Agribusiness Letter of Credit, Real Estate Letters of Credit and Repos with Corporate Bonds. (3) It includes private securities and guarantees provided. (4) Allowance for Loan Losses expenses of the last twelve months / Average Classified loan portfolio for the same period. 24
Structural Data Global Presence Clients Service Network Channels Human Resources 25
Global Presence Brazil Total Service Network Own Service Network 18,924 Branches 5,493 MaisBB Network¹ 15,148 Banco Postal 6,189 Shared Service Network 34,964 Total 69,036 (1) Banking Agents and Postal Bank branches Norte 28.8% Quantity of Bank Branches (Regional Market Share) Centro Oeste 26.7% Sul 24.9% Sudeste 20.0% Nordeste 32.5% Total = 23.9% Market Share in Brazil Banco do Brasil in the World Branches 12 Sub-branches 4 Representative Offices 10 Subsidiaries and affiliates 16 Shared Services Units 2 Business Units 1 Presence in 25 Countries 26
Clients and Service Network Channels Clients BB Digital Transactions¹ in 9M14 61.8 million Clients Total Volume Total Transactions 10.8 million Savers 2.4 million SMEs 2.3 million INSS s Pensioners R$ 754 bi (34.3%) R$ 1,445 bi (65.7%) 3.3 billion (40.9%) 4.8 billion (59.1%) BB Digital Mobile (million transactions) BB Digital² Other Channels³ Automated Teller Machines (thousand) +489.4% 1,319.1 2,210.1 60.4 2.7 13.4 63.1 5.0 14.0 64.0 5.3 14.6 64.6 5.4 15.3 65.5 5.3 16.1 107.4 375.0 44.3 44.1 44.1 44.0 44.0 2011 2012 2013 9M14 Dec/13 Mar/14 Jun/14 Automated Teller Machines ATM: Banco 24h ATM: BRB + CEF (1) Salary loans transactions, Insurance, Payments, MoneyTransfers and account balance (2) ATM, mobile and internet (3) Branches, Agents in Country, Banco Postal and CABB 27
Human Resources Changes of BB s Staff (thousand) 118.5 10.0 123.3 9.8 123.3 118.3 117.9 8.8 5.6 6.0 108.5 113.6 114.5 112.7 111.9 Sep/10 Sep/11 Sep/12 Employees Interns Profile of Staff Members Education s Level 58.5% 41.5% 58.4% 41.6% 0.4% 23.9% 29.6% 0.3% 22.7% 31.5% 46.2% 45.5% Female Male High School College Specialization, Master s and Doctorate others 28
Sustainability Agenda 21 BB BB Volunteer Program Sustainable Regional Development Banco do Brasil Foundation 29
Agenda 21 BB and CMN 4.327 Resolution Specific Policy for Environmental Responsability Governance Environmental Risk CMN 4.327 Resolution Agenda 21 BB Triennial Sustainability Plan since 2005 Topics: Social Businesses/ Financial Inclusion/ Businesses Opportunities Current Version (2013-2015) has 92 macro actions Updates every 2 years from market and social demands Followed by Sustainability Forum, Board of Directors and Board of Officers Results presented in the Annual Report GRI G4 Audited Capital Market Awards: DJSI, ISE, ICO2 30
BB Volunteer Program Number of Volunteers Regional Distribution 16,145 12,515 22% 18% Midwest 1,449 1,712 1,918 2,118 2,475 4,911 8,399 38% 16% 6% Northeast North Southeast South 2006 2007 2008 2009 2010 2011 2012 2013 9M14 BB Volunteers Project: FBB¹ e FIA² Resources (R$ mil) 17,527 1,968 1,173 6,477 5,113 3 3,509 2,525 3,471 3,434 4,180 4,232 3 2009 2010 2011 FBB 2012 2013 3Q14 FIA (1) Banco do Brasil Foundation. (2) Fund for Children and Adolescents. (3) Support for projects with waives tax resources (FIA) will occur in the second half of 2013. 31
Sustainable Regional Development (DRS) DRS Action DRS Integrated Action Model 75% Rural Activities Production Chains Actions Integration Large Ventures Public Policies Prioritized Publics DRS Portfolio: R$ 7.9 billion NPL 60: 1.30% 25% Urban Activities Base Methodology Action Plans BB Strategies Government Programs Integration/ BB Portfolio Clients Satisfaction and Sustainable Consumption SCOPE 1.527 Businesses Plans¹ 100 Supported Activities 34 Validated Plans 34 Branches 33 Cities (1) Source: Big DRS sep/2014 32
Banco do Brasil Foundation Private Social Investments (R$ million) 223.90 80.47 93.99 118.61 136.18 136.16 145.68 2008 2009 72% 28% 2010 Sources of the Resources Invested 3Q14 (R$ million) 41.4 102.6 1.74 Own Resources Third Party Resources 0.014 2011 2012 2013 Sep/2014 Line of Actions 3Q14 (%Total Investment) 3.44 3.34 Water 10.38 82.84 Education Agroecology Others FBB BNDES BID PETROBRAS 33
Awards Top of Mind 2014 "As marcas mais lembradas em todo o país" Instituto Datafolha Certificação do Inventário de emissão de Gases de Efeito Estufa pela WayCarbon Prêmio ISTOÉ As Empresas Mais Conscientes do Brasil Categoria Recursos Humanos Grandes Empresas Destaque RH no "Guia 2014 Você S/A - As Melhores Empresas para Você Trabalhar" Prêmio EduCorp 2014 de melhor programa de Educação Corporativa - Human Resources Academy Prêmio As Melhores da Dinheiro 2014 O Banco do Brasil foi eleito a "Empresa do Ano" e a empresa vencedora no setor Bancos 34
Investor Relations Unit Av. Paulista, 2.163 2 nd Floor- São Paulo-SP CEP 01311-933 Telephone: +55 (11) 3066 9110 ir@bb.com.br bb.com.br/ir 35