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

2 nd Quarter | 2019 Earnings 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.

Executive summary Net income of 2Q19 reached R$ 352M and ROE of 15.2% Consistent revenue generation, maintenance of credit costs and cost basis control Highlights of results ▲ Net income of R$ 352M in 2Q19 , compared to R$ 336M in 1Q19 +4.8% (2Q19/1Q19) R$ 352M Net income ▲ Return on Equity (ROE) of 15.2% p.y. in 2Q19 (14.8% in 1Q19). In 1H19, ROE +34.6% (1H19/1H18) R$ 688M increased to 14.8% p.y. (11.6% in 1H18). ▲ Total revenues (NII + revenues from services and insurance) increased by 3.5% R$ 2,007M +3.5% (2Q19/1Q19) Revenues in 2Q19/1Q19, reflecting the higher profitability in the businesses +12.6% (1H19/1H18) R$ 3,945M ▲ Net Interest Margin (NIM) increased to 7.6% in the 2Q19, versus 7.0% in 1Q19 ▲ Cost of credit decreased in 2Q19, reflecting the drop in delinquency, especially in -3.7% (2Q19/1Q19) R$ 447M Credit Auto Finance. Increase in the semester reflects higher Consumer Finance portfolio. costs¹ ▲ 90-day Coverage Ratio increased to 178% in Jun/19 (Mar/19: 175%) +29.1% (1H19/1H18) R$ 911M ▲ 90-day NPL of 4.4% in Jun/19, 10 bps drop in the quarter -10bps (Jun19/Mar19) NPL90 • Consumer Finance: NPL90 of 4.8%, stable in comparison with Mar/19 Delinquency 4.4% (NPL90) • Wholesale: NPL90 decreased to 3.1%, comparable to 3.5% in Mar/19 +40bps (Jun19/Jun18) ▲ Effective cost base management and consistent revenues generation contributed -60bps (Jun19/Mar19) Efficiency ER to the improvement of the Efficiency Ratio for the last 12 months, which Ratio² 32.7% decreased to 32.7% in Jun/19 -20bps (Jun19/Jun18) 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 2 2

Consolidated result Net income of 2Q19 reached R$ 352M and ROE of 15.2% 1H19 result was 35% higher than the same period of 2018 Net Income (R$M) 14.8% 15.2% 14.8% 11.6% 12.5% 688 ROE (% p.y.) 11.9% 11.8% 11.6% - exponential +35% 511 +37% +5% 352 336 282 268 256 255 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 1H18 1H19 ROE (% p.y.) 11.4% 11.1% 11.4% 11.9% 14.0% 14.4% 11.2% 14.3% - linear Quarterly net income confirms new result level 3 3

Consolidated result Consistent revenue generation and improvement of efficiency Net income increased 5% in relation to 1Q19 Managerial Income Statement (R$M) Var. Var. (R$ Million) 2Q18 1Q19 2Q19 1H18 1H19 2Q19/1Q19 1H19/1H18 ] 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) 0 - 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% Banco Votorantim continues advancing in its agenda of improving the profitability of businesses, operational efficiency and revenue diversification 1. Net of revenues from recovery of written-off loans. Includes provision for loan losses, guarantees and impairments; 2. Includes profit sharing expenses. 4 4

Revenues 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 Revenues generation (R$M) growth reflecting the higher portfolio +15% 2,999 +13% 2,606 +22% +4% 3,945 1,530 1,469 1,259 3,502 946 +5% Net Interest Income 897 ∆2Q19 +17% +4% 2Q18 1Q19 2Q19 1H18 1H19 /1Q19 NIM ² 2,007 7.0% 7.6% 7.2% 6.1% 6.2% 1,939 (%p.y.) 1,718 476 +1% 470 Services and insurance revenues grew in the 2Q19, Services, 459 fees and reflecting the higher origination of auto loans insurance¹ 2,999 +15% +5% 946 2,606 897 +4% +1% 262 227 1,530 1,469 +4% Net 470 476 459 1,259 Insurance Interest (Commission) 1 133 115 129 Income 669 684 Services 344 340 343 and fees 2Q18 1Q19 2Q19 1H18 1H19 2Q18 1Q19 2Q19 1H18 1H19 Origination of 4.7 5.0 9.7 4.1 8.5 auto loans (R$B) 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. 5

Credit portfolio Maintenance of the conservative approach to credit Portfolio grew 4.3% over Jun/18, with increased participation of the Consumer Finance business Expanded credit portfolio (R$B) (includes guarantees provided and private securities) ∆Jun19 ∆Jun19 +4% /Mar19 /Jun18 61.7 60.2 60.1 59.2 59.4 Credit Cards +6.0% +22.3% 2.4 2.3 2.3 2.1 2.0 2.8 -1.4% -13.1% 2.9 2.9 3.1 Loans¹ 3.3 Reduction in public payroll agreements Consumer Finance 35.7 33.4 +3.6% +13.1% Auto Finance 31.6 32.2 34.5 Increase of used car financing 22.4 20.7 Wholesale 22.0 21.6 +1.4% -7.3% 20.4 (38%) (34%) Reduction in the private securities portfolio Jun/18 Sept/18 Dec/18 Mar/19 Jun/19 Focus on profitability and asset quality 1. Portfolio comprised by products: payroll (retirees, private and public), personal credit (with and without guarantee), home equity, student credit and solar. 6 6

Consumer Finance – Auto Finance Auto finance: continued focus on used cars and maintenance of tight credit origination standards Focus on used car financing, which Maintenance of conservative represented 87% of 2Q19 origination lending standards Down payment, average term and interest rate Origination of auto loans (R$B) ∆2Q19 +20% 21.5% 22.5% 21.3% Interest rate (% p.y.)² /2Q18 5.0 6.5% 6.5% 6.5% Selic rate (% p.y.) ³ 4.7 0.6 +47.1% 0.5 4.1 Other Average term 0.4 44 45 45 Vehicles¹ (months) 4.3 +17.3% 4.2 3.7 (87%) Used cars (89%) 41% 39% 39% Down payment 2Q18 1Q19 2Q19 2Q18 1Q19 2Q19 Banco Votorantim is one of the market leaders in auto financing 1. New cars, trucks and motorcycles; 2. Weighted average rate for the quarterly origination; 3. End of the period. Nota: In Jun/19 the average ticket size was R$ 23,000, and the average vehicle age was 5.6 years (portfolio). 7 7

Credit indicators – Loan losses and 90-day Coverage Credit costs dropped 3.7% in relation to 1Q19 90-day Coverage Ratio reached 178% in Jun/19 Credit cost decreased compared to 1Q19, 90-day Coverage Ratio remains reflecting the reduction in delinquency in a sturdy level Result¹ of loan losses, guarantees provided and impairments - (R$M) 90-day Coverage Ratio² 911 90-day 200% Coverage 178% 175% +29% 706 Ratio +18% -4% 464 377 447 4,135 4,031 3,942 +14% 1,188 1,040 Higher Consumer 613 578 575 Finance portfolio 2,310 2,320 1,969 (128) (149) (200) (276) -17% (334) 2Q18 1Q19 2Q19 1H18 1H19 Jun/18 Mar/19 Jun/19 Provision for loan losses, guarantees and impairments Allowance for loan losses balance (R$M) Revenues from recovery of loans written-offs 90-day NPL balance (R$M) 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 over 90 days. Includes provision for guarantees. 8 8

Credit indicators – Delinquency 90-Day NPL of 4.4% in Jun/19 Vehicles: delinquency has maintained a downward trend since Jun/18; Wholesale reduced in 2Q19 90-day NPL ratio of the loan portfolio (%) 5.5% Banco 4.5% 4.4% 4.4% Votorantim 4.2% 4.6% 4.0% 4.0% Consumer 5.7% 5.5% Consumer 5.2% 4.9% 4.8% 4.7% 4.8% 4.8% Finance Finance 5.4% 5.1% 4.7% 4.4% Auto 4.3% 4.3% 4.2% 4.2% Finance 5.6% Wholesale 3.5% 3.1% 2.3% 2.2% 1.8% 1.3% 2.0% Jun/16 Dec/16 Jun/17 Dec/17 Jun/18 Dec/18 Mar/19 Jun/19 9