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

3 rd 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 management’s statements reflect the 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 3Q19 reached R$ 355M and ROE of 15.1% Consistent revenue generation and cost basis control Highlights of results ▲ Net income of R$1,043M in 9M19 , compared to R$779M in 9M18 +33.8% (9M19/9M18) R$1,043M Net income ▲ Return on Equity (ROE) of 14.5% p.y. in 9M19 (11.5% in 9M18). In 3Q19, ROE R$355M +0.9% (3Q19/2Q19) increased to 15.1% p.y. (11.9% no 3Q18). ▲ Total revenues (NII + revenues from services and insurance) increased by 11.4% +11.4% (9M19/9M18) R$5,890M Revenues in 9M19/9M18, reflecting the higher profitability in the businesses -3.0% (3Q19/2Q19) R$1,945M ▲ Net Interest Margin (NIM) increased to 7.0% in the 9M19, a versus 6.2% in 9M18 ▲ Cost of credit decreased in 3Q19 and increased on the nine months, reflecting the +34.0% (9M19/9M18) R$1,301M Credit higher Consumer Finance portfolio. costs¹ -12.9% (3Q19/2Q19) R$390M ▲ 90-day Coverage Ratio decreased to 171% in Sep/19 (Jun/19: 178%) ▲ 90-day NPL of 4.6% in Sep/19, 20bsp increase in the quarter +40bsp (Sep19/Sep18) Delinquency NPL90 • Consumer Finance: NPL90 of 4.8%, stable in comparison with Jun/19 (NPL90) 4.6% • Wholesale: NPL90 increased to 4.0%, comparable to 3.1% in Jun/19 +20bsp (Sep19/Jun19) ▲ Efficiency Ratio of 32.7% in Sep/19, reduction of 70bsp reflection of consistent -70bsp (Sep19/Sep18) Efficiency IE revenues generation in the last 12 months. Ratio² 32.7% 0.0bsp (Sep19/Jun19) 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 reached R$1bi on the 9M19 Increase of 34% in 9M19 and 32% in 3Q19 versus 3Q18 Net Income (R$M) 14.5% 15.2% 15.1% 14.8% 11.5% 1,043 12.5% ROE (% p.y.) 11.9% 11.8% +34% 11.6% - exponential 779 +32% +1% 352 355 336 282 268 256 255 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 9M18 9M19 ROE (% a.a.) 11.4% 11.1% 11.4% 11.9% 14.0% 14.4% 14.3% 11.3% 14.2% - linear Nine months net income confirms new result level 3 3

Consolidated result Consistent revenue generation and cost control Net income increased 34% in relation to 9M18 Managerial Income Statement Var. Var. (R$ Million) 3Q18 2Q19 3Q19 9M18 9M19 3Q19/2Q19 9M19/9M18 ] Net Interest Income (A) 1,326 1,530 1,474 -3.7% 3,932 4,472 13.8% Result of loan losses¹ (B) (265) (447) (390) -12.9% (971) (1,301) 34.0% Net Financial Margin (A+B) 1,061 1,083 1,084 0.1% 2,960 3,171 7.1% Operating Income/Expenses (518) (562) (562) 0.0% (1,445) (1,620) 12.1% Income from Services and Banking Fees 341 343 336 -2.0% 1,010 1,020 1.0% Personnel² and Administrative expenses (674) (628) (691) 10.1% (1,868) (1,962) 5.0% Tax expenses (99) (158) (97) -39.0% (300) (357) 19.1% Income from subsidiaries 87 87 101 16.1% 250 279 11.7% Other Operating Income/(Expenses) (172) (205) (211) 2.8% (537) (600) 11.8% Operating Income (Loss) 543 521 522 0.2% 1,515 1,551 2.4% Non-Operating Income (Loss) (2) (1) 7 - (7) 7 - Income before Taxes 541 521 529 1.6% 1,509 1,558 3.3% Income Tax and Social Contribution (273) (169) (174) 3.2% (729) (515) -29.3% Net Income 268 352 355 0.9% 779 1,043 33.8% 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 9M19x9M18: expansion of both NII and income from services and insurance NIM increased to 7.0% in 9M19, driven by the NII Revenue generation (R$M) growth reflecting the higher portfolio +14% 4,472 3,932 +11% +11% -4% 5,890 1,530 1,474 1,326 5,287 Net 1,418 +5% Interest Income 1,355 ∆3Q19 +9% -3% 3Q18 2Q19 3Q19 9M18 9M19 /2Q19 NIM ² 2,007 7.6% 7.1% 7.0% 6.4% 6.2% 1,945 (%p.y.) 1,784 476 -1% 472 Services and insurance revenues grew in the 9M19, Services, 458 reflecting the higher origination of auto loans fees and insurance¹ 4,472 +14% +5% 1,418 3,932 1,355 +3% -1% 397 Net 345 1,530 1,474 -4% 476 472 1,326 458 Interest Insurance Income 133 135 118 (Commission)¹ 1,010 1,020 Services 341 343 336 and fees 3Q18 2Q19 3Q19 9M18 9M19 3Q18 2Q19 3Q19 9M18 9M19 Origination of 5.0 5.6 15.3 4.3 12.4 auto loans (R$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 Consistent growth on Auto Finance and Credit Card portfolio Portfolio grew 8% over Sep/18, with increased participation of the Consumer Finance business Expanded credit portfolio (R$B) (includes guarantees provided and private securities) ∆Set19 ∆Set19 +8% /Jun19 /18 64.0 61.7 Credit Cards +5.1% +24.7% 60.2 60.1 2.6 59.4 2.4 2.8 2.3 -0.1% -8.6% 2.3 2.1 2.8 2.9 2.9 Loans¹¹ 3.1 Reduction in public payroll agreements Consumer Finance 37.3 +4.4% +15.8% 35.7 Auto Finance 32.2 33.4 34.5 Increase of used car financing 22.0 21.3 Wholesale +2.6% -3.5% 21.6 20.7 20.4 (37%) (33%) Sep/18 Dec/18 Mar/19 Jun/19 Sep/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 86% of 3Q19 origination lending standards Down payment, average term and interest rate Origination of auto loans (R$B) 23.2% 21.3% 20.0% Interest rate (% p.y.)² ∆3Q19 +30% /3Q18 6.5% 6.5% 5.5% Selic rate (% p.y.) ³ 5.6 +47.3% 5.0 0.8 Other Average term 0.6 4.3 45 45 45 Vehicles¹ (months) 0.5 4.8 +27.1% Used cars (86%) 4.3 3.8 41% 39% Down payment 38% (88%) 3Q18 2Q19 3Q19 3Q18 2Q19 3Q19 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. Note: In Set/19, the average ticket size was R$25,000 and the average vehicle age was 6.2 years (portfolio). 7 7

Credit indicators – Loan losses and 90-day Coverage Credit cost dropped 12.9% in relation to 2Q19 90-day Coverage Ratio reached 171% in Sep/19 Credit Cost decreased compared to 2Q19, 90-day Coverage Ratio remains reflecting the increase of credit recovery revenues in a sturdy level Result¹ of loan losses, guarantees provided and impairments - (R$M) 90-day Coverage Ratio² 1,301 188% 90-day 178% 171% +34% +47% -13% 971 Coverage Ratio 447 390 265 4,251 4,135 3,930 +15% 1,754 1,526 575 567 Higher Consumer 486 Finance portfolio 2,483 2,320 2,095 (128) (177) (221) -18% (453) (555) 3Q18 2Q19 3Q19 9M18 9M19 Sep/18 Jun/19 Sep/19 Provision for loan losses, gurantees and impairments Allowance for loan losses balance (R$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 – Loan losses and 90-day Coverage NPL90 of 4.6% in Sep/19 Vehicles: delinquency has maintained a downward trend; Wholesale: increased due to a specific case 90-day NPL ratio of the loan portfolio (%) 5.5% Banco 4.5% 4.6% 4.5% 4.4% Votorantim 4.2% 4.1% 3.9% Consumer 5.5% 4.8% Consumer 4.9% 4.8% 4.8% 4.8%4.8% 4.6% Finance Finance 5.2% 5.2% Auto 4.3% 4.4% 4.3% 4.2% 4.2% 4.1% Finance 5.3% 4.0% Wholesale 3.5% 2.6% 3.1% 2.1% 2.1% 1.5% Sep/16 Mar/17 Sep/17 Mar/18 Sep/18 Mar/19 Jun/19 Sep/19 9

Personnel and administrative expenses The cost base management contributed to the improvement of the Efficiency Ratio for the last 12 months Personnel¹ and administrative expenses (R$M) +5% ∆3Q19 1,962 /2Q19 +3% +10% 1,868 153 -27.4% 691 211 674 +38.1% 54 628 Labor claims 68 39 817 +10.1% 742 Personnel 278 Compensation, +2.5% 268 Charges, Training, 271 Profit Sharing +8.4% 992 915 359 +13.0% 338 318 Administrative Increased investment in Technology 3Q18 2Q19 3Q19 9M18 9M19 Efficiency Ratio – 33.4% 32.7% last 12 months¹ (%) 1. Excludes expenses with labor lawsuits and profit sharing expenses 10