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Institutional Presentation

2Q16

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.

Agenda

Company Profile 1

Banking Industry

2

Earnings Highlights 3

Macroeconomic Information 4

Company Profile

1

5

Founded in 1808

54.4%1 controlled by the Federal Government

Largest Bank in Latin America in total assets

Acess to a broad spectrum of clients

5

1st company listed on the stock exchange in Brazil

(1) As of Jun/2016.

6

Large, diversified and stable funding base

Business diversification including:

Banking Services

Asset Management

Means of Payment

International Franchise

6

Insurance

Capital Market

7

1. Market Leadership

2. Solid Financial Performance

3. Focus on Services

4. Lowest deliquency of the Brazilian

Banking Industry

5. Stable and Diversified Funding

200(+) years of solid performance

Investment Highlights

8

Timeline / Governance

BB Shares enter the ISE portfolio

2005

Follow on (primary shares)

2010

Conversion of preferred shares to commom shares

2001 Private offering of subscription bonus

2004

ADR 1 Launching

2009

100% Tag Along clause

2002

BB Shares enter the ITAG portfolio

2003

Follow on (secondary shares)

2007

Banco do Brasil joined “Novo Mercado” (BOVESPA)

2006

BB Shares enter the IBRX-50 portfolio

1998

BB Shares enter the IBrX portfolio

1995

Capitalization and Restructuring Plan

1996

The Board of Directors of BB approved the migration of its program of American Depositary Receipt-ADR from level I to level II

2014

BB Seguridade IPO

2013

BB Shares enter Dow Jones Sustainability Index (DJSI) of NY stock exchange

2012

8

1st company listed on the stock exchange in Brazil

1906

9

Ownership Structure

Free Float 42.8% as of Jun/2016 Free Float Breakdown (%)

Treasury Shares 2,8%

National Treasury

54,4%

Foreign Investors

19,8%

Other 23,0%

21,6 21,6 21,1 19,9 19,8

18,1 18,1 18,6 22,2 23,0

39,7 39,8 39.7 42,1 42,8

Jun/15 Sep/15 Dec/15 Mar/16 Jun/16

Foreign Investors Other

10

Global Presence 10

Banco do Brasil in the world

Presence in 24 countries with 38 points of service

Branches

Sub-branches

Representative Offices

Subsidiaries and affiliates

Shared Services Units

11

4

7

14

2

11

Presence in Brazil

NORTH

27.7% NORTHEAST

31.4%

SOUTHEAST

20.5%

SOUTH

24.9%

MIDWEST

26.5%

Structural data (Jun/16)

Points of services1

17,181

Branches

5,428

Clients

64,192 mil

Employees

109,615 (1) Own Service Network

Own Service Network

Branches

MaisBB Network¹

Shared Service Network2

17,181

5,428

14,110

35,680

Total 66,971

(1) Banking Agents and Postal Bank branches.

Market Share – 23.9%

(Number of branches)

Brazil Total Service Network Jun/16

(2) Shared Service Network: lotteries (CEF), Banco 24h

e ATM (BRB+CEF).

Our more than 64 million clients count on more than 66 thousand points of service, present in 99.8% of the Brazilian municipalities and an increasingly digital Bank.

12

12

The Banco do Brasil App is 5th main App in

Brazilian’s everyday life.¹

(1) Source: eMarketer – Jun/2016. *NPS – Net Promoter Score

Digital Experience

Innovation

1. WhatsApp

2. Facebook

3. Google

4. Instagram

5. Banco do Brasil

Ourocardo ELO NOW International

Acceptance at Discover and Diners

networks.

Available in more than 39 millions

places in 185 countries.

1.7 million ATM´s for withdrawals

abroad

Profitability increase in about 20% to 44%.

35% of efficiency growth.

Estilo customers satisfaction and loyalty (NPS)* is 16% higher.

BB Estilo Digital e BB Exclusivo

Clients June/16

Estilo Digital – 552 thousand

Estilo – 521 thousand

Personalizado – 3,089 thousand

Exclusivo – 52 thousand

Estimated

2016

Estilo /

Estilo Digital 1.3 million

Exclusivo /

Personalizado 3.7 million

13

13

Automated Service Channels - Transactions BB Digital – Mobile (million transactions)

1,662

2,512

Ourocard APP

Cards Block/Unblock function

Expenses in Timeline format

Function New at the Market – Allows

questioning unrecognized purchases

“Tap and pay” – payment agility

Authorization for abroad usage

Ourocard-e

+250 thousand virtual cards, 108%

growth compared to 2Q15

1.2 million transactions since launch

in Aug/14

R$160 million total turnover on the

last 12 months

(1) Owned by BB.

2Q15

2Q16

Jun/16 Internet

26.6%

Mobile

36.8%

ATM¹

18.6%

In Branches

4.4%

Others

13.6% +51.1%

Innovation

14

Customer Segmentation

Individuals Companies

14

Private > R$ 2mm

Estilo / Estilo Digital > R$ 8k

Personalizado / Exclusivo¹ > R$ 4k < R$ 8k

Mercado Emergente < R$ 1.5k

Varejo > R$ 1.5k < R$ 4k

> R$ 1.5bn > R$ 2bn Large Corporate

> R$ 400mm < R$ 1.5bn

> R$ 600mm < R$ 2bn

Corporate

> R$ 120mm < R$ 400mm

> R$ 200mm < R$ 600mm

Empresarial Upper Middle

> R$ 25mm < R$ 120mm

> R$ 25mm < R$ 200mm

Empresarial Middle

> R$ 5mm < R$ 25mm Empresa

> R$ 1mm < R$ 5mm Pequena Empresa

< R$ 1mm Microempresa

Industry Services

(1) Digital service only.

15

Assets and Market Share

(1) Source: Central Bank of Brazil (*) Mar/2016

1,445.1

Available Funds, Short-Term

Interbank Investments, Interbank and

Intrabank Accounts

Securities and Financial Derivatives

R$ Billion

Loans

Permanent Assets

Other

1.371,0 1.402,0 1.401,1 1.404,9 1.445,1

20,9 20,1 20,2 20,3 20.3*


Assets Market Share¹ (%)

2,2%

13.3%

8.4%

34,8%

41.4%

Part. % - Jun/16

16

Loan Portfolio – Broad Concept¹

(1) It includes private securities and guarantees provided. (2) It considers the classified loan portfolio.

346,4 355,2 364,6 348,5 327,6

176,8 179,7 183,3 185,9 187,9

168,3 171,8 174,9 179,5 184,5

68,5 81,7 73,8 61,7

51,2

760,0 788,4 796,7

775,6 751,2

20,3 20,3 20,4 20,6 20,6


Corporates Individuals Agribusiness Abroad Market Share² - %

R$ Billion

9.0%

22.1%

23.3%

45.6%

6.8%

24.6%

25.0%

43.6%

9.6% on Jun/15

6.3% on Jun/15

17

17

Jun/15 Mar/16 Jun/16

Balance Provision Share %



AA 389,667 - 56.7 371,909 - 53.0 341,937 - 49.6

A 111,259 556 16.2 138,407 692 19.7 132,192 661 19.2

B 121,023 1,210 17.6 115,445 1,154 16.4 120,082 1,201 17.4

C 27,623 829 4.0 25,554 767 3.6 39,567 1,187 5.7

D 5,102 510 0.7 6,303 630 0.9 8,465 847 1.2

E 10,056 3,017 1.5 12,353 3,706 1.8 15,443 4,633 2.2

F 3,556 1,778 0.5 5,352 2,676 0.8 5,161 2,580 0.7

G 3,699 2,589 0.5 7,133 4,993 1.0 4,537 3,176 0.7

H 15,680 15,680 2.3 19,570 19,570 2.8 22,684 22,684 3.3

Total 687,664 26,170 100.0 702,027 34,189 100.0 690,067 36,968 100.0

AA-C 649,571 2,595 94.5 651,315 2,613 92.8 633,778 3,049 91.8

D-H 38,093 23,575 5.5 50,711 31,575 7.2 56,289 33,919 8.2

Total Loan Portfolio - Risk Level¹

R$ Million

(1) BB Classified Loan Portfolio.

18


Payroll 61,087 62,589 62,959

Mortgage 32,833 38,446 39,706

Salary Loans 18,784 19,161 20,482

Auto Loans 9,487 7,844 7,333

Credit Cards 21,552 22,730 22,906

Consumer Finance 6,764 7,607 7,392

Overdraft 2,525 2,830 2,775

Microcredit 810 706 700

Other 5,052 7,140 7,801

TOTAL 158,894 169,054 172,054

76.9% 75.7% 75.8%

Loans to Individuals¹

R$ Million

(1) It considers the organic loan portfolio.

19

32,8 38,4 39,7

11,2 11,9 11,9

44,1 50,3 51,6

1,22 1,38 1,29


Mortgages withCompanies

Mortgages withIndividuals

Mortgage NPL +90days (%)

Salary Loans Auto Loans

Mortgages Payroll²

Growth in lower risk lines¹

88.9% 88.7% 88.6%

7.4% 8.1% 8.3% 3.7% 3.2% 3.1%

61,1 62,6 63,0

1,32 1,28 1,25


Private SectorEmployees

INSS Retirees andPensioners

Civil Servants

Payroll NPL +90 days(%)¹

18,8 19,2 20,5

2,61 2,30 2,52


Total

Salary Loans NPL +90days (%)

24,4 22,6 21,5

0,79 0,93 0,95


Auto Loans

Auto Loans NPL +90days (%)

(1) Classified Loan Portfolio (2) Organic Loan Portfolio

+9.0%

+3.1%

-12.0%

R$ Billion

+17.1%

20

Relationship

Individuals Portfolio¹ Individuals Portfolio Profile²

66,6% 68,2% 68,8%

20,9% 19,9% 19,7%

7,9% 8,0% 8,1%

4,6% 3,9% 3,4%


Time of Relationship

More than 10 years From 5 to 10 years From 2 to 5 years Up to 2 years

79,2% 79,4% 79,6%

13,6% 12,9% 12,5%

7,2% 7,7% 7,8%


Direct Consumer Credit + Auto Loans

Civil Servants

Private Sector Employees

INSS Retirees and Pensioners

(1) Classified Loan Portfolio (2) Organic Loan Portfolio

21

178,9 172,1 160,6

103,5 105,6 99,8

22,7 20,3 15,2 18,2 19,7 19,1

23,1 30,8 32,8

346,4 348,5 327,6


Working Capital² Investments + Private Securities Guarantees Trade Finance³ Other

(1) It includes private securities and guarantees provided. (2) It includes Working Capital, Receivables, Credit Card and Overdraft Account. (3) It Includes FEC/ACE and BNDES Exim. (4) Companies with annual revenues up to R$ 25 million.

Corporate Portfolio by Size

-5.4%

-2.4% on Jun/15

-13.7% on Jun/15

Loans to Companies – Broad Concept¹

R$ Billion

252,4 262,6 246,4

94,1 85,9 81,2

346,4 348,5 327,6


Very Small and Small companies⁴ Total

22

Relationship Amount Distribution by Time of

Company Foundation – Very Small

and Small Companies Portfolio (R$ bn)

(1) BB Classified Loan Portfolio - Companies with annual revenues up to R$ 25 million.

Total

Amount

R$81.1bn

41,3% 43,9% 44,8%

33,9% 34,1% 34,3%

20,2% 19,3% 18,5%

4,5% 2,7% 2,4%


Time of Relationship

More than 10 years From 5 to 10 years From 2 to 5 years Up to 2 years

0,7

8,5

23,4

28,4

20,1

Up to 2years

From 2 to5 years

From 5 to10 years

From 10to 20years

More than20 years

Very Small and Small Companies Portfolio¹

23

Carteira PJ por setor

Jun/15 Share % Mar/16 Share % Jun/16 Share % Oil and Gas 45,997 10.2% 45,739 10.1% 42,595 10.1%

Mining and Metallurgy 41,917 9.3% 42,310 9.3% 38,732 9.2%

Eletricity 40,182 8.9% 39,416 8.7% 38,274 9.1%

Government 33,017 7.3% 39,858 8.8% 37,997 9.0%

Foodstuffs of Vegetable Origin 35,732 7.9% 33,862 7.5% 33,532 8.0%

Transportation 30,945 6.9% 32,095 7.1% 27,080 6.4%

Automotive 27,633 6.1% 26,372 5.8% 23,041 5.5%

Services 24,371 5.4% 23,056 5.1% 21,525 5.1%

Real Estate Agents 20,587 4.6% 21,358 4.7% 20,778 4.9%

Retail Trade 19,217 4.3% 18,099 4.0% 17,194 4.1%

Financials Institutions 12,268 2.7% 16,933 3.7% 16,439 3.9%

Foodstuffs of Animal Origin 14,824 3.3% 17,188 3.8% 16,427 3.9%

Specific Activities of Construction 14,840 3.3% 14,733 3.3% 13,821 3.3%

Agricultural Inputs 10,856 2.4% 11,105 2.5% 10,191 2.4%

Textile and Clothing 12,475 2.8% 11,103 2.5% 10,116 2.4%

Pulp and Paper 10,779 2.4% 9,776 2.2% 8,765 2.1%

Electrical and Electronic Goods 9,648 2.1% 8,841 2.0% 8,048 1.9%

Heavy Construction 8,978 2.0% 7,865 1.7% 7,067 1.7%

Chemicals 9,291 2.1% 8,056 1.8% 7,065 1.7%

Wholesale and Various Industries 6,851 1.5% 7,122 1.6% 6,945 1.6%

Telecommunication 8,342 1.8% 7,449 1.6% 5,894 1.4%

Woodworking and Furniture 6,836 1.5% 6,036 1.3% 5,576 1.3%

Leather and Shoes 3,054 0.7% 2,793 0.6% 2,631 0.6%

Beverages 1,741 0.4% 1,631 0.4% 1,598 0.4%

Other Activities 1,119 0.2% 69 0.0% 45 0.0%

Total 451,502 100% 452,866 100% 421,374 100%

Companies Portfolio by Macro-sector¹

(1) Included Companies and Agro Companies Portfolio.

R$ Million

24

9.6% growth in the past 12 months

62.0%* of the total Rural Credit is at Banco do Brasil

24.6% of Banco do Brasil Credit Portfolio**

Agribusiness

Portfolio

R$184.5Billion

24

The Agribusiness Bank in Brazil

*As of May/16 **It considers Agribusiness Broad Concept Portfolio

25

Agribusiness

Agribusiness Loan Portfolio by Costumer Type¹

(1) It includes Rural Product Bills and guarantees provided. (2) Source: Central Bank of Brazil – May/16.

Harvest 15/16 (Jun/16)

Use of Mitigators (Working Capital for Input Purchase)

120,7 120,6 123,3 125,9 131,3

47,6 51,2 51,6 53,6 53,2

168,3 171,8 174,9 179,5 184,5

61,0 60,5 60,9 61,2 62,0


Individuals Companies Market Share - %

Insured

64.9%

Not Insured

35.1%

Total disbursement in15/16 harvest

R$ 82.4 billion, 12,4% higher than

the 14/15 harvest. 1st 62.0 % Market Share²

+9.6%

26

The Brazilian Foreign Trade Bank

Operating abroad for over 50 years,

Banco do Brasil has supported Brazil's

relations with its trading partners, being

a reference point for entrepreneurs,

investors, economic agents and

foreign governments that maintain or

wish to maintain investments in Brazil.

26

3.047

1.865

2.276

27,6 26,7

24,2

2Q15 1Q16 2Q16

Contracted Amount (US$ million) Market share (%)

FCE/ACE

27

R$ Millions Dec/14 Mar/15 Jun/15 Sep/15 Dec/15 Mar/16 Jun/16

Commercial Funding¹ 632,913 641,603 639,193 660,175 669,506 638,611 624,778

Domestic Onlending 89,157 90,686 90,032 90,543 90,065 88,082 86,603

Financial and Development Funds 10,840 12,265 12,404 14,677 15,003 14,781 13,741

Subordinated Debt 49,413 49,664 50,764 54,256 54,018 51,903 52,265

Capital Eligible Debt³ 29,351 32,876 32,441 37,926 35,393 33,728 32,053

Commercial Papers ⁴ 2,549 2,630 2,735 47 2,117 2,309 2,393

HCDI domestic 150 110 175 210 256 20 46

Foreign Borrowing² 61,654 71,821 72,518 94,590 82,306 65,668 56,262

Compulsory Deposits (63,224) (56,613) (57,168) (60,362) (60,811) (62,613) (65,404)

Total 812,803 845,042 843,092 892,061 887,854 832,489 802,737

Sources

(1) Includes part of the balances of Private Securities (Note 17c).

(2) Includes Foreign Borrowing, Foreign Securities, Foreign Onlending, Subordinated Debt Abroad, Hybrid Capital Debt Instruments and Judicial Deposits.

(3) From 3Q14 on, includes Capital Eligible Debt reallocated to Core Capital, as authorized by the Central Bank by Official Letter 15006/2014-BCB/DEORF/DIFIN.

(4) Includes Letters of Credit and Debentures.

28

Sources


Foreign Securities 28,560 31,167 34,773 44,103 33,500 22,885 18,631

Foreign Borrowing 20,516 25,133 23,074 31,236 29,617 25,178 22,763

Foreign Onlending 0 0 0 9 10 0 0

HCDI Abroad 4,716 6,158 5,485 7,641 7,611 7,205 5,351

Subordinated Debt Abroad 7,862 9,361 9,186 11,600 11,569 10,400 9,517

Total² 61,654 71,821 72,518 94,590 82,306 65,668 56,262


Demand Deposits 74,224 73,705 64,755 66,063 66,550 62,631 62,550

Savings Deposits 148,699 144,089 147,306 149,764 151,845 151,919 148,368

Interbank Deposits 30,354 36,736 33,337 41,465 41,483 36,885 27,473

Time Deposits 99,889 93,304 82,126 89,068 90,890 88,433 85,804

Judicial Deposits 115,010 118,591 116,805 116,107 113,652 114,140 116,655

Agribusiness Letters of Credit 102,325 118,263 132,372 134,555 134,823 135,420 135,418

Mortgage Bonds 14,156 19,067 18,526 18,474 18,121 18,681 18,066

Repurchase Agreement with Private Sec.¹ 48,256 37,848 43,965 44,678 52,142 30,471 30,415

Total 632,913 641,603 639,193 660,175 669,506 638,611 624,778

Commercial Funding

Foreign²

(1) Includes part of the balances of Private Securities (Note 17c).

(2) Includes Foreign Borrowing, Foreign Securities, Foreign Onlending, Subordinated Debt Abroad, Hybrid Capital Debt Instruments and Judicial Deposits.

29

Emissões no Exterior

Bonds Issued Abroad

Issue Date Volume (US$

million) Currency Term in Years Maturity Coupon (%) Structure

Rating (S&P / Moody´s/Fitch)

07/18/2007 187 BRL 10 07/18/2017 9.750 SR / Ba2 / SR

04/29/2008 150 USD 10 04/29/2018 5.250 BBB / Ba1 / SR

10/20/2009 1,500 USD Perpetual Perpetual 8.500 Perpetual SR / B2 / SR

01/22/2010 500 USD 10 01/22/2020 6.000 BB / Ba2 / BB

10/05/2010 660 USD 10 10/05/2020 5.375 Subordinated SR / Ba3 / SR

05/26/2011 1,500 USD 10 05/26/2021 5.875 Subordinated SR / Ba3 / SR

11/23/2011 500 USD 5 11/23/2016 3.875 SR / Ba2 / SR

01/20/2012 1,000 USD Perpetual Perpetual 9.250 Perpetual B- / SR / SR

03/05/2012 750 USD Perpetual Perpetual 9.250 Perpetual B- / SR / SR

06/19/2012 750 USD 10 06/19/2022 5.875 Subordinated B / Ba3 / SR

10/10/2012 1,925 USD 10 10/10/2022 3.875 BB / Ba2 / BB

01/31/2013 2,000 USD Perpetual Perpetual 6.250 Perpetual B- / SR / SR

07/25/2013 930 EUR 5 07/25/2018 3.750 BB / Ba2 / BB

12/20/2013 307 CHF 5.5 06/20/2019 2.500 BB / Ba2 / BB

03/26/2014 417 EUR 5 03/26/2019 3.750 BB / Ba2 / BB+

06/18/2014 2,500 USD Perpetual Perpetual 9.000 Perpetual B- / B2 / SR

Foreign Borrowing

30


Available Funds 122,554 142,744 137,925 168,680 154,936 118,235 107,819

Net Loan Portfolio (a) = (b) + (c) + (d) 690,249 702,298 705,167 723,381 732,918 714,254 694,918

Classified Loan Portfolio (b) 669,020 682,188 687,664 710,612 717,849 702,027 690,067

Private Securities (c) 46,524 46,973 45,078 44,695 48,645 47,625 41,819

Allowance for Loan Losses (d) (25,295) (26,862) (27,575) (31,926) (33,577) (35,398) (36,968)

Adjusted Net Loan Portfolio (a) - (e)* 569,635 578,161 580,929 595,903 604,599 588,131 570,687

Domestic Onlending Loans (e) 120,614 124,137 124,238 127,478 128,319 126,122 124,232

Uses 812,803 845,042 843,092 892,061 887,854 832,489 802,737

Uses

Indicators (%)

Adjusted Net Loan Portfolio* / Commercial Funding** 90.0 90.1 90.9 90.3 90.3 92.1 91.3

Commercial Funding** 632,913 641,603 639,193 660,175 669,506 638,611 624,778

31

Compulsory/Reserve Requirements (%) 2Q15 3Q15 4Q15 1Q16 2Q16

Demand Deposits

Reserve Requirement 45 45 45 45 45

Additional Reserve Requirement 0 0 0 0 0

Marked to Rural 34 34 34 34 34

Marked to Micro Finance 2 2 2 2 2

Unmarked 19 19 19 19 19

Savings Deposits

Rural

Reserve Requirement 15.5 15.5 15.5 15.5 15.5

Additional Reserve Requirement 5.5 5.5 5.5 5.5 5.5

Marked 72 74 74 74 74

Unmarked 7 5 5 5 5

Mortgage

Reserve Requirement 24.5 24.5 24.5 24.5 24.5

Additional Reserve Requirement 5.5 5.5 5.5 5.5 5.5

Marked 65 65 65 65 65

Unmarked 5 5 5 5 5

Time Deposits

Reserve Requirement 20 25 25 25 25

Additional Reserve Requirement 11 11 11 11 11

Unmarked 69 64 64 64 64

Compulsório e Direcionamento Compulsory and Reserve Requirements

32

Means of Payment

Banco do Brasil BB Banco de Investimentos

BB Adm Cartões

BB ELO Cartões

100%

100%

100%

|

Serviços

49.99%

70%

66.64%

100%

40.95%

50.1%

100%

100%

\

100%

70%

100%

100%

30%

28.65%

30%

Banco

CBSS 100%

Promotora

33

Leadership

Assets (R$ billion – Jun/16)

Loan Portfolio (R$ billion – Jun/16)

Assets Under Managmt.¹ (R$ billion – Jun/16)

Deposits (R$ billion– Jun/16)

1.445,1 1.395,9

1.105,2

BB Bank A Bank B

(1) Source: Central Bank of Brazil - Market Share as of Mar/2016.

20.3% Market Share¹

751,2

608,6

447,5

BB Bank A Bank B

(1) Source: Central Bank of Brazil - Market Share as of Jun/16 for domestic loan portfolio.

20.6% Market Share¹

660,5

534,9

416,8

BB Bank A Bank B

(1) It does not include Banco Votorantim

22.2% Market Share

440,9

309,0

179,4

BB Bank A Bank B

(1) Source: Central Bank of Brazil - Market Share as of Mar/2016.

23.7% Market Share¹ 1st 1st 1st 1st

34

Leadership

Cards

Total turnover

Debit

Credit

1st

2nd

Insurance

Business 2Q16

Rural

Pension Plan

Life

Premium Bonds

Vehicle

Source: Abecs Jun/16 Source: Susep Jun/16

1st

1st

2nd

1st

2nd

35

16,8% 15,8%

13,7% 13,7%

11,4%

BB Bank 1 Bank 2 Bank 3 Bank 4

23,4%

17,1%

12,9%

7,9% 6,6%

BB Bank 1 Bank 2 Bank 3 Bank 4

Foreign Exchange Export Contracts Foreign Exchange Import Contracts

Leadership in Foreign Trade

1st 1st

Source: Central Bank of Brazil – YTD Jun/16

36

Awards and Achievements

37

Decisions at any level of the Company are made collectively. With the purpose of involving all the executives in the definition of strategies and approval of proposals for the different businesses of Banco do Brasil.

The Only Brazilian Bank listed since 2006, in this BM&F Bovespa segment, destined to companies that voluntarily adopt the best practices for corporate governance.

Corporate Governance

3 Higher Committees

15 Executive Committees

Other Committees

Global Risk Committee Asset and Liabilities Management

and Liquidity Committee Investor Relations

Executive Committee

Credit Risk Executive Committee

Credit Limit Executive Committee Ethics Executive

Committee

Capital Management Executive Committee

Products and Services Executive Committee

Market and Liquidity Risk Executive Committee

Related Companies Governance Executive Committee

Internal Controls and Operational Risk Executive Commitee

Prevention of Financial,Foreign Exchange Illicit and Information Security Executive Committee

Administrative and Operational Executive Committee

Credit Transactions Executive Committee

Information Technology Executive Committee

Human Resources Executive Committee

Disciplinary Review Executive Committee

Credit Transactions Committee Human Resources Committee Information Technology

Committee

Objective Mitigate risks, share visions, aggregate value and quality to the decision process and disseminate knowledge.

Asset & Liability Management and Liquidity Executive Committee

38

Banco do Brasil: Ratings

2012 2013 2014 2015 2Q16

Standard & Poor's

Long-Term - Local Currency BBB BBB BBB- BB+ BB

Long-Term - Foreign Currency BBB BBB BBB- BB+ BB

Moody's

Financial Strength C- C- C- - -

Long-Term Debt - Foreign Currency Baa1 Baa2 Baa2 Baa3 Ba2

Long-Term Deposits - Foreign Currency Baa2 Baa2 Baa2 Baa3 Ba3

Long-Term Deposits - Local Currency A3 Baa2 Baa2 Baa3 Ba2

Fitch Ratings

Long-Term - Local Currency BBB BBB BBB BB+ BB

Long-Term - Foreign Currency BBB BBB BBB BB+ BB+

38

Banking Industry

2

40

81,3 81,4 81,6 88,2 89,1 89,1 92,1 93,0 92,6

5 Largest 10 Largest 20 Largest

78,2 77,5 77,4

88,0 88,1 87,7 93,1 93,2 93,1

5 Largest 10 Largest 20 Largest

Concentration - %

Assets Loans

Source: Central Bank of Brazil

2014 2015 Mar/16 2014 2015 Mar/16

41

67,1 69,3 70,6

88,7 88,8 88,4

5 Largest Banks 10 Largest Banks

Concentration - %

Deposits Assets under Management Credit Card Revenue**

82,5 79,8 79,7

88,2 90,8 90,6 93,6 95,1 95,0

5 Largest Banks 10 Largest Banks 20 Largest Banks

2014 2015 2Q16* 2014 2015 Mar/16

Source: Central Bank of Brazil *As of May/16 ** Source: CardMonitor Research as of 1Q16 per issuer.

87,8 86,9

95,8 95,6

5 Largest 10 Largest

1Q15 1Q16

Earnings Highlights

3

43

Net Interest Income Grew by 17.5%.

Pre-Tax and Pre-Provision Earnings Increased by 14.9%.

Fee Income 12.8% Growth.

Administrative Expenses Under control (2.7% growth).

Cost to income ratio Improved to 39.7%.

Highlights 2Q16 / 2Q15

44

Net Income

(6,577) (402)

6.065

3.891

824

(714)

3.087

1.738 4.824

1H15Adj. Net Income

NII ALL Fee Income AdministrativeExpenses

Other 1H16Adj. Net Income

One-Off Items 1H16 Net Income

R$ Million

ROE

6.6%

ROE

10.4%

2Q15 1Q16 2Q16 1H15 1H16 ROE 15.3% 11.9% 12.3% 22.8% 12.0%

Adjusted ROE 14.2% 5.6% 7.7% 14.2% 6.6%

Market ROE 16.1% 6.6% 9.2% 16.0% 7.9%

Shareholders ROE 17.6% 7.3% 10.2% 17.4% 8.7%

Profitability Ratios

Accumulated

45

Pre-Tax and Pre-Provision Earnings

9,4 10,3 10,7

2Q15 1Q16 2Q16

R$ Billion

36,7 41,7

2Q15 2Q16

+13.5%

Quarterly change Adjusted Annual change¹

+14.9%

+3.9%

(1) Pre-Tax and Pre-Provision Earnings accumulated in four quarters.

46

Earnings per Share (R$)

Market Ratios

1,05 1,08

0,89 0,83 0,88 1,06 1,01

0,92

0,45

0,63

2Q15 3Q15 4Q15 1Q16 2Q16Earnings per Share Adjusted Earnings per Share

Dividend Yield1 (%)

8,56 8,74

13,96

7,38 7,62

2Q15 3Q15 4Q15 1Q16 2Q16

(1) Dividends and Interest on Capital 12 months / Market Capitalization. Source: Economatica.

Source: Economatica. Source: Economatica.

Price/Book Value Price/Earnings 12 months

4,66

2,86 2,86

5,05 4,60


0,81

0,51 0,50 0,66

0,57


47

Annual Vintage – Very Small and Small Companies Loan

Portfolio Annual Vintage – Individuals Loan Portfolio

Vintages

48

27.807

32.354

29.366

25.750

19.326

344 504 505 423 430

1,2% 1,6% 1,7% 1,6% 2,2%

2Q15 3Q15 4Q15 1Q16 2Q16

Guarantees Provided (balance) Provisions (balance) Provisions / Guarantees Provided

R$ Million

Guarantees provided and Provisions

49

NPL Ratio +90 days (%)

NPL Ratio +15 days (%)

(1) BB Classified Loan Portfolio. (2) Simulation excluding an oil and gas specific case effect. (3) Simulation considering the Companies portfolio balance as of mar/16.

NPL Ratio +90 Days (%)

2,70 2,80 2,90 3,10

3,40 3,50 3,50

1,86 1,84 1,89 2,06

2,24

2,60

3,27

Dec/14 Mar/15 Jun/15 Sep/15 Dec/15 Mar/16 Jun/16

Banking Industry Banco do Brasil

2,30 2,20 2,16 2,17 2,17 2,41 2,40

0,69 0,82 0,73 0,84 0,97 1,19 0,95

2,59 2,52 2,72 3,10

3,42 4,01

4,82


Individuals Agribusiness Companies

4,26

4,60

4,47

4,79 4,52 5,51

4,59 3,90

4,69

4,50

5,62 5,56

7,07 7,09

1,19 1,29 1,29 1,69 1,66 1,80 1,45


Individuals Companies Agribusiness

NPL Ratio +90 days (%) excluding a specific case²

Delinquency Ratios¹

2,70 2,80 2,90 3,10

3,40 3,50 3,50

1,86 1,84 1,89 2,06

2,24

2,60 2,85



4,62³

50

Allowance for Loan Losses

(1) BB Classified Loan Portfolio. (2) Simulation excluding an oil and gas specific case effect. (3) Quarterly ALL. It does not consider additional provision.

Coverage Ratios (%) and ALL Balance (R$ million)¹

ALL by Segment³

206 144 246 391 1.942

804

3.142 3.810 3.832 4.319

4.754 5.794

1.405 680 1.221

1.326

1.408 1.282

902 557 536

954

1.041 396

5.654 5.191

5.835

6.991

9.145

8.277

Mar/15 Jun/15 Sep/15 Dec/15 Mar/16 Jun/16

Agribusiness

Individuals

Companies

Abroad

25.482 26.170 28.220 30.349 34.189 36.968

1.380 1.405 3.705 3.228

1.209 26.862 27.575

31.926 33.577 35.398

175,00 172,41 177,42 167,65 171,43

180,00

213,99 211,79 218,07 209,19 193,83

163,87

98,89 119,14 113,11

119,68 104,05 109,06


Additional (Complementary) Provision

Required Allowance - R$ million

Banking Industry + 90 days

Banco do Brasil + 90 days

Banco do Brasil + 15 days

187,71²

51

(1) Required Provision / BB Classified Loan Portfolio. (2) Simulation excluding an oil and gas specific case effect

ALL Evolution

4,90 4,90 5,00

5,50 5,70

6,00 6,30

3,57 3,74 3,81

3,97 4,23

4,87

5,36



ALL and Average Risk

Average Risk¹ (%)

5,2 5,8 7,0 7,3 6,9

1,9 1,4


Allowance for Loan Losses Risk downgrades + specific case

9.1 8.3

R$ Billion

4.16

4.60

4.94²

52

(1) Quarterly change in the balance of past due for over 90 days operations + current quarter write-off. (2) It considers the Classified Loan Portfolio of the previous quarter. (3) Simulation excluding an oil and gas specific case effect.

New NPL¹, Write Off and NPL Formation Rate excluding a specific case³

4,28 4,91 5,59 6,22

7,39 6,87

4,16 4,45 3,97 4,81 5,18 5,43

0.64 0.72 0.81 0.88 1.03 0.98

131,99 105,64 104,33 112,32

123,80 120,55


New NPL (R$ billion)

Write Off (R$ billion)

Quarterly ALL/New NPL (%)

New NPL / Loan Portfolio² (%)

NPL Formation

4,28 4,91 5,59 6,22 7,39

9,73

4,16 4,45 3,97 4,81 5,18 5,43

0.64 0.72 0.81 0.88 1.03 1.39

131,99 105,64 104,33 112,32

123,80 85,05


New NPL (R$ billion)



New NPL / Loan Portfolio² (%)

New NPL¹, Write Off and NPL Formation Rate

53

(1) Quarterly change in the balance of past due for over 90 days operations + current quarter write-off. (2) It considers the Classified Loan Portfolio of the previous quarter . (3) Estimated flow of the Renegotiated loan portfolio contracts of past due for over 90days operations. (4) Simulation excluding an oil and gas specific case effect.

New NPL¹, Write Off and NPL Formation Rate including the Past Due Renegotiated loan Portfolio³, excluding a specific case4

New NPL¹, Write Off and NPL Formation Rate including the Past Due Renegotiated loan Portfolio²

4,81 5,98 6,73

8,03 8,47 8,37

4,16 4,45 3,97 4,81 5,18 5,43

0.72 0.88 0.98 1.13 1.18 1.19

117,46 86,77 86,73 87,07 107,97 98,84


New NPL with Past due Credits Portfolio (R$ million)



New NPL with Past due Credits Portfolio /Loan Portfolio² (%)

NPL Formation

4,81 5,98 6,73

8,03 8,47

11,24

4,16 4,45 3,97 4,81 5,18 5,43

0.72 0.88 0.98 1.13 1.18

1.60

117,46 86,77 86,73 87,07 107,97 73,64


New NPL with Past due Credits Portfolio (R$ million)



New NPL with Past due Credits Portfolio /Loan Portfolio² (%)

54

Renegotiated Overdue Loan Portfolio¹

2Q15 1Q16 2Q16

Renegotiated Overdue Loan Portfolio - Changes

Initial Balance 10,183 19,653 22,038

Contracts 3,561 3,611 5,026

Payments received minus capitalized interest (397) (449) (979)

Write Off (646) (777) (1,036)

Final Balance 12,701 22,038 25,050

Allowance for Loan Losses Balance 6,616 9,495 10,369

NPL + 90 days 1,729 4,303 5,642

Indicators - %

ALL for Loan Losses / Loan Portfolio 52.1 43.1 41.4

NPL + 90 days / Loan Portfolio 13.6 19.5 22.5

ALL for Loan Losses Balance/NPL + 90 days 382.7 220.7 183.8

Credits Renegotiated/Classified Loan Portfolio 1.8 3.1 3.6 (1) Table according Explanatory Notes 10.k.

R$ Million

0.33 0.68 0.79 1.24 1.55 1.91 2.38

0.51 0.51 0.65 0.50 0.84 0.78 1.04

4,14 7,50 7,73

9,80 9,96 9,71 10,78

403,08 384,91 382,74

302,24 270,72

220,67 183,79


New NPL - Renegotiated Overdue Loan Portfolio (R$billion)


New NPL/Past due Renegotiated Portfolio²

ALL Balance/NPL + 90 days

New NPL¹, Write Off and NPL Formation Rate

(1) Quarterly change in the balance of past-due for over 90 days operations + current quarter write off. (2) It considers the classified loan portfolio of the previous quarter.

Jun/16

Balance Share %

AA 218 0.9

A 1,604 6.4

B 3,426 13.7

C 3,154 12.6

D 1,301 5.2

E 4,988 19.9

F 2,369 9.5

G 1,897 7.6

H 6,094 24.3

Total 25,050 100.0

AA-C 8,401 33.5

D-H 16,649 66.5

55

(1) It corresponds to two large Brazilian private banks.

BB x Peers¹

Renegotiated Loan Portfolio – 2Q16

25.050 18.981

3,6 4,5

BB Peers Average¹

Renegotiated Loan Portfolio

Renegotiated Loan Portfolio/ClassifiedLoan Portfolio (%)

6.982 7.414 8.112 8.563

9.760

6.616 7.464

8.585 9.495

10.369

17,5 16,5 18,5

23,0 23,5

13,6 15,9 16,1

19,5

22,5


Peers Average - ALL Balance

BB - ALL Balance

Peers Average - Renegotiated Portfolio NPL +90days (%)

BB - Renegotiated Portfolio NPL +90 days (%)

R$ Million

Renegotiated Loan Portfolio

56

Allowance for Loan Losses (12 months) / Loan Portfolio Allowance for Loan Losses (Quarterly) / Loan Portfolio

Classified Loan Portfolio – Growth by Risk Level

0.3%

in 12 months

(1) Average classified loan portfolio 12 months. (2) ALL accumulated in 12 months / 12 months Average Loan Portfolio. (3) 3 months Average Loan Portfolio. (4) Quarterly ALL / 3 months Average Loan Portfolio.

Allowance for Loan Losses (ALL) and Loan Portfolio

659.843 675.671 690.144 699.218 702.224

20.036 21.571 23.671 27.161 30.248

3,0 3,2 3,4 3,9

4,3

2Q15 3Q15 4Q15 1Q16 2Q16

Loan Portfolio¹ Allowance for Loan Losses ALL / Loan Portfolio (%)²

683.547 695.770 711.477 710.697 696.907

5.191 5.835 6.991 9.145 8.277

0,8 0,8 1,0

1,3 1,2

2Q15 3Q15 4Q15 1Q16 2Q16

Loan Portfolio³ Allowance for Loan Losses ALL / Loan Portfolio (%)⁴

687.664 15.793 3.363 5.387 1.605 838 7.003 690.067

Jun/15 AA-C D E F G H Jun/16

R$ Billion

57

Write-off – Percentage of the Classified Loan Portfolio¹

(1) Write-offs to losses accumulated in 12 months / average balance of the classified credit portfolio in 12 months. (2) It corresponds to the three largest Brazilian private banks.

2,38 2,37 2,49 2,61 2,75

4,05 4,03 4,23

4,47 4,61


Banco do Brasil Peers Average²

58

ALL Balance – Current and Past Due Operations

1,4

3,7 3,2

1,2 0,0

13,1 13,1 14,8

16,4 16,3 13,1

15,1 15,6

17,8

20,7

27,6

31,9 33,6

35,4 37,0

2Q15 3Q15 4Q15 1Q16 2Q16

Additional (Complementary) Provision Current (Generic) Past Due (Specific) Total

R$ Billion

59

Net Interest Income

Global Spread (%)³ Spread by Portfolio (%) ³

(1) It Includes senior debt, subordinated debt and hybrid capital instrument (HCDI). (2) It included interest income, profitable compulsory deposits income, tax hedge, derivatives and other financial instruments that compensate the exchange rate variation in result. (3) Annualized data. (4) Series revised from 1Q15 due to methodology adjustments. (5) It does not include loans with government sector.

4,3 4,5 4,8 4.8 4,9

2,5 2,5 2,4

1,7 2,1

2Q15 3Q15 4Q15 1Q16 2Q16

NIM Risk Adjusted NIM

7,0 7,1 7,4 7,5 7,7

14,0 14,9

15,5 15,8 16,3

5,6 5,7 5,8 5,9 5,9

4,8 4,5 4,8 4,8 4,9

2Q15 3Q15 4Q15 1Q16 2Q16

Loan Operations NIM⁴ Individuals NIM Companies NIM⁵ Agribusiness NIM

2Q15 1Q16 2Q16

Change % Change %

R$ million on 2Q15 on 1Q16 1H15 1H16 on 1S15

Net Interest Income 12.457 14,276 14,633 17.5 2.5 25,019 28,909 15.6

Loan Operations Income 22.738 25,450 25,423 11.8 (0.1) 44,577 50,873 14.1

Funding Expenses (10.308) (10,930) (11,034) 7.0 1.0 (19,618) (21,965) 12.0

Institutional Funding Costs¹ (3.371) (3,733) (3,785) 12.3 1.4 (6,691) (7,518) 12.4

Recovery of Write-offs Loans 911 861 1,384 51.8 60.7 1,751 2,245 28.2

Treasury Income² 2.487 2,628 2,646 6.4 0.7 5,000 5,274 5.5

60

Net Interest Income

Revenue from Loans

Funding Costs

8,9 9,1 9,3 10,3 11,6 11,3 10,9 11,0

2,9 3,0 3,3 3,4 3,8 3,8 3,7 3,8

10,4 10,9 11,3 11,9 12,6 13,4 14,2 14,2

76,5 76,8 75,9 76,8 75,9 74,9 75,4 74,7

3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16

Funding Expenses Institutional Funding Accumulated Selic (% accumulated in 12 months)¹ Funding Expenses % Selic

(1) Source: Central Bank of Brazil

20,5 21,3 21,8 22,7 24,8 25,3 25,5 25,4

10,4 10,9 11,3 11,9 12,6 13,4 14,2 14,2

3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16

Revenue from Loans Accumulated Selic (% accumulated in 12 months)¹

61

Fee Income 61

R$ Million

2Q15 1Q16 2Q16 Change %

1H15 1H16 Change %

on 2Q15 on 1Q16 on 1H15

Fee Income 5,374 5,558 6,063 12.8 9.1 10,797 11,621 7.6

Account Fees 1,252 1,435 1,534 22.6 7.0 2,394 2,969 24.0

Asset Management Fees 880 906 974 10.7 7.5 1,693 1,880 11.0

Insurance, Pension and Premium Bonds 779 697 835 7.2 19.8 1,475 1,532 3.9

Collections 426 419 421 (1.1) 0.6 844 840 (0.5)

Loan Fees 420 360 444 5.7 23.4 771 804 4.3

Credit / Debit Cards 273 321 331 21.3 3.3 954 652 (31.7)

Billings 273 260 257 (5.7) (1.0) 533 517 (2.9)

Interbank 193 202 223 15.3 10.0 379 425 12.2

Fiduciary Services 124 129 133 7.8 3.5 237 262 10.6

Consortium 110 115 123 11.3 6.1 205 238 15.9

Capital Market 96 110 174 81.7 59.2 262 284 8.2

Other 547 604 612 11.9 1.5 1,049 1,216 16.0

62

BB Seguridade

Adjusted Net Income (R$ million)

995 958 1.087

1.944 2.044

2Q15 1Q16 2Q16 1H15 1H16

+9.3%

+5.2%

63

Banco Votorantim

Net Income (R$ million)

Delinquency and Risk Level

146 137

77 86 108

2Q15 3Q15 4Q15 1Q16 2Q16

89,8% 89,7% 88,8% 90,6% 90,2%

10,2% 10,3% 11,2% 9,4% 9,8%

5,2% 5,3% 5,7% 4,6% 4,6%

2Q15 3Q15 4Q15 1Q16 2Q16

AA-C D-H NPL + 90 days / Loan Portfolio

64

Administrative Expenses and Cost to Income Ratio¹

(1) Administrative Expenses / Operating Revenues. Data from the Income Statement with Reallocations. 1H15 and 1H16 cost to income ratio is accumulated in 12 months.

4,9 4,8 5,0

2,9 3,0 3,0

43,4

40,8 39,7

2Q15 1Q16 2Q16

Personnel Expenses Other Expenses Cost to Income Ratio (%) - 12 months

R$ Million

9,5 9,7

5,9 6,0

42,8

39,1

1H15 1H16

Cost to Income Ratio (%)

65

8,71 8,07 8,17 8,26 8,42

2,64 3.54 3,22 3,12 2,92

16.18 16.20 16.13 16.24 16.45


Core Capital Additional Tier I Tier 2

BIS Ratio %

4.82 4.58 4.74 4.87

Tier I 11.34%

5.11

66

BIS Ratio

Tier 1

Full application of Basel III rules

16,45 15,69 15.42

1.17

16.59

(0.76) (0.28)

BIS Ratio Deductions ScheduleAnticipation

BIS Ratio with fulldeductions

RWA RulesAnticipation

BIS Ratio with FullyLoaded Basel III Rules

Use of Tax Credits Simulated BIS Ratiounder complete Basel

III Rules

10.47 10,29

11,42 11.34

(0.86) (0.19) 1.13

Tier 1 Deductions ScheduleAnticipation

Tier 1 with fulldeductions

RWA Rules Anticipation Tier 1 with Fully LoadedBasel III Rules

Use of Tax Credits Simulated Tier 1 undercomplete Basel III Rules

67

BIS III – Capital Requirements % 67

2016 2017 2018 2019

Common Equity Tier I (CET1) 4.500 4.500 4.500 4.500

Tier 1 6.000 6.000 6.000 6.000

Brazilian BIS Ratio 9.875 9.250 8.625 8.000

Capital Conservation Buffer 0.625 1.250 1.875 2.500

Additional CET1 Countercyclical Buffer (superior limit) 0.625¹ 1.250 1.875 2.500

Additional CET1 Systemic (D-SIB) Buffer 0.000 0.250 0.500 1.000

CET1 + Buffers 5.125¹ 7.250 8.750 10.500

Tier 1 + Buffers 6.625¹ 9.000 10.250 12.000

Brazilian BIS Ratio + Buffers 10.500¹ 12.000 12.875 14.000

Implementation Schedule

(1) The Additional CET1 Countercyclical Buffer was not activated by the Central Bank in 2016, according to Central Bank Circular 3,769/15.

68

Tax Rate R$ Million

EBT Reallocations 2,472

Additional ALL 1,209

Tax Hedge 928

Other One-Off Items 74

Tax Base 4,683

IR/CSLL Reallocations 12

Interest on Own Capital Tax Benefit (344)

Statutory Profit Sharing (141)

Eq. Int. in Results of Subsidiaries and Affiliates (491)

Tax Hedge (928)

Tax Effect on One-Off Items (544)

Other 328

IR/CSLL (2,107)

EBT Effects Tax Rate Effects

Source: Income Statement with Reallocations and Explanatory Note 24.

Tax Rate: 45%

69

(1) Adjusted ROE estimated for 2015 uses estimated adjusted shareholders’ equity, free from the effects of: (i) the restatement of actuarial assets and liabilities arising from the Deliberation CVM/695; and (ii) minority interests in controlled companies. (2) It includes private securities and guarantees provided. (3) Allowance for Loan Losses expenses of the last twelve months / Average Classified loan portfolio for the same period.

2016 Guidance 2016 Performance 2016 Guidance

Revised

Adjusted Return on Equity¹ 9 to 12 6.6 Unchanged

Net Interest Income 7 to 11 15.6 11 to 15

Domestic Loan Portfolio² - Broad Concept 3 to 6 1.2 -2 to 1

Individuals 5 to 8 6.3 Unchanged

Companies 1 to 4 -5.4 -10 to -6

Agribusiness 6 to 9 9.6 Unchanged

Allowance for Loan Losses³ 4.0 to 4.4 4.3 Unchanged

Fee Income 7 to 11 7.6 Unchanged

Administrative Expenses 5 to 8 2.6 Unchanged

Guidance

Macroeconomic Information

4

71

Inflation and Selic Rate

6,50 5,84 5,91

6,41

10,67

8,89 9,39 8,84

7,21

5,20

11,00

7,25

10,00

11,75

14,25 13,75 14,25 14,25 13,50

11,00

4,50

1,41

4,09

5,34

3,58

4,86 4,86 5,41

6,29

5,80

2011 2012 2013 2014 2015 2Q15 1Q16 2Q16 2016 2017

IPCA – IBGE (% accumulated in 12 months) Selic (% - end of the period) Real Interest Rate¹

Source: Central Bank of Brazil and IBGE. Projection for 2016 and 2017, according to Boletim Focus as of 29/07/2016. (1) Real Interest Rate = Selic - IPCA

72

GDP

50,3 52,6 53,1 54,2 53,4 53,1 51,9

32,3 30,6

33,1 36,2

33,8

39,0 39,7

1,9

3,0

0,1

-3,8

-1,7

-4,7

2,2

1,7

-0,6 -1,9

-0,8

-2,3 -2,5

2012 2013 2014 2015 2Q15 1Q16 2Q16

Credit/GDP (% YTD in 12 months) PSND (% GDP) GDP (% YTD in 12 months) Primary Surplus (%GDP in 12 months)

Source: Central Bank of Brazil .

73

Loans/GDP

Loans/GDP (%) and Evolution of Loan Portfolio of Banking Industry

Source: Central Bank of Brazil

50,3 52,6 53,1 54,2 53,4 51,9

3.060,7 3.100,4 3.017,5 3.216,9 3.100,4 3.130,3

2012 2013 2014 2015 2Q15 2Q16

Credit/GDP (% YTD in 12 months) Loan Portfolio Banking Industry (R$ billion)

74

Unemployment

100,0 98,7 97,9 96,3 97,6 98,6 97,6

105,2 101,0

37,5 38,6 37,2 35,7 36,4 36,5 37,4 41,3

45,7

Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16

Consumer Expectations (INEC) Business Confidence (ICEI)

-2,3

2,1

-3,0

-8,3

-4,7

-9,5

5,5 5,4 4,8

6,8 7,4

9,8

2012 2013 2014 2015 2Q15 2Q16

Industrial Production (% accumulated in 12 months)

Unemployment Rate (% accumulated in 12 months)

Source: IBGE and Confederação Nacional da Indústria

75

Trade Balance US$ Billion

29,8

19,4

2,3

-4,0

19,7

51,1 50,0

7,8 8,4

23,7

2011 2012 2013 2014 2015 2016 2017 2Q15 1Q16 2Q16

Source: MDIC. Projection for 2016 and 2017, according to Boletim Focus as of 29/07/2016.

76

International Reserves

Gross Foreign Debt (R$ billion) International Reserves (US$ billion)

516,0

570,8

621,4

712,7

665,1 675.8*

352,0

378,6 375,8 374,1

368,7

376,7

2011 2012 2013 2014 2015 2Q16

Source: Central Bank of Brazil. *As of Mar/2016

77

Source: World Bank and FAO

Brazil has the ideal conditions for sustainable growth Only a few countries have the same potential as Brazil

Sustainable Growth

Urban Population > 80 million people* (2011)

GDP > US$ 1 trillion*

UK

France

Korea

Italy

Canada Germany

Spain

Mexico

Japan

Indonesia

Kasakhstan

Argentina

Brazil

India

USA China Russia

Planting Area > 140 million ha*

Australia

*2011

78

Main Pilars of Brazilian Growth

Agriculture Foreign Trade Infrastructure

78

79

Overview

Area 8.5 million Km²

Population (2015) 204 million

GDP (1Q16)* -4.7%

Agribusiness GDP (1Q16)* -1.0%

Brazil’s Unique Advantages

Greater availability of low cost arable land

in the world

Easy access to clean water supplies

Competitive prices for land

Excellent climate

Rich soil

Source: Agriculture Ministry and IBGE * Change on 12 months.

Brazilian Agribusiness: Overview

80

Brazilian Agribusiness: Area X Production

Planted Area (thousands Ha) vs Production (thousands Tons)

47.674 47.416 49.873 50.885 53.563 57.060 57.931 58.146

135.135

149.255 162.803 166.172

188.658 193.622

207.667

189.271

2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 E

Planted Area Production

CAGR

4.3%

CAGR

3.1%

Source: CONAB

81

Brazilian Agribusiness: Undisputable Leadership

Brazil: World Commodities Ranking

Coffee

Orange Juice

Sugar

Soybean

Poultry

Beef

Corn

Production Export

Source: Agriculture Ministry

1st

1st

1st

2nd

3rd

1st

1st

1st

1st

1st

2nd

2nd

2nd

2nd

82

Source: Federal Government (MPOG) - Jul/16 *Private Service Terminal

The Federal Government holds Investment Programs in progress

R$51.9 bn IN PROGRESS

R$198.4 bn AUCTION LAUNCHED

PIL – Logistics Investment Program – Stage I (2012-2014)

PIL – Logistics Investment Program – Stage II (2015-2018)

R$186.0 bn AUCTION LAUNCHED

PIEE – Electricity Investment Program

+ than R$400bn Total Investment Forecast

R$8.5bn

Airports

R$86.4bn

Railroad

R$66.1bn

Highway

R$37.4bn

Ports

6 projects - R$27.7bn

Highway


Airports


TUPs*

R$116bn

Generation

R$70 bn

Transmission

Infrastructure: Investment Programs

83

Brazilian Foreign Trade Balance Evolution (US$ billion)

Brazilian Foreign Trade Balance: Overview

242,6 242,0 225,1

191,1

94.3 90.3

223,2 239,7

229,1

171,5

92.1

66.6

2012 2013 2014 2015 Jun/15 Jun/16

Exports (US$ billion - year accumulated) Imports (US$ billion - year accumulated)

Source: Ministry of Development, Industry and Foreign Trade.

19,4 2,3 -4,0

19,7 2,2

23,7

Trade Balance (US$ billion – year accumulated)

84

Brazilian Exports (by country of destination¹)

Brazilian Foreign Trade Balance: Exports

20,1%

12,0%

7,4%

5,4%

3,0% 2,5% 2,3% 2,0% 1,9% 1,8% 1,7% 1,5%

China USA Argentina Netherlands Japan Germany Chile Mexico Italy Belgium South Korea UK

Source: Ministry of Development, Industry and Foreign Trade. (1) YTD April/2016

85

Summary Table

Annual Collected Data Quarterly Data

2011 2012 2013 2014 2015 2Q15 1Q16 2Q16

Economic Activity

GDP (% YTD in 12 months) 3.9 1.9 3.0 0.1 -3.8 -1.7 -4.7 -

Family Consumption 4.7 3.5 3.5 1.3 -4.0 -0.7 -5.2 -

Government Consumption 2.2 2.3 1.5 1.2 -1.0 0.0 -1.3 -

Gross Fixed Capital Formation 6.7 0.8 5.8 -4.5 -14.1 -9.3 -15.9 -

Exports 4.8 0.3 2.4 -1.1 6.1 1.0 8.3 -

Imports 9.4 0.7 7.2 -1.0 -14.3 -4.6 -18.3 -

Use of Installed Capacity (%) 82.8 82.8 82.3 81.1 77.6 79.7 76.8 77.4

Economically active population - PEA (% YTD in 12 months) 1.2 1.7 -0.8 -0.1 -0.3 -0.4 1.8 2.0

Unemployment Rate (% YTD in 12 months) 6.0 5.5 5.4 4.8 9.3 7.4 9.3 9.8

Formal employment – net creation in 12 m (thousand jobs) 1,566.0 868.2 730.7 152.7 -1,625.6 -729.9 -1,883.7 -1,805.7

Industrial Production (% YTD in 12 months) 0.4 -2.3 2.1 -3.0 -8.3 -4.7 -9.6 -9.5

External Sector

Current Transactions (% GDP in 12 months) -3.0 -3.1 -3.1 -4.3 -3.3 -4.4 -2.4 -1.7

Direct Foreign Investment (US$ billion - year accumulated) 101.2 86.6 69.2 96.9 75.1 30.9 16.9 29.9

International Reserves (US$ billion – end of period) 352.0 378.6 375.8 374.1 368.7 372.2 375.2 376.7

Sovereign Risk (basis points – EOP) 223.0 142.0 224.0 259.0 432.0 304.0 502.0 404.0

Trade Balance (US$ billion – year accumulated) 29.8 19.4 2.3 -4.0 19.7 2.2 8.4 23.7

Exports (US$ billion – year accumulated) 256.0 242.6 242.0 225.1 191.1 94.3 40.6 90.3

Imports (US$ billion – year accumulated) 226.2 223.2 239.7 229.1 171.5 92.1 32.2 66.6

Trade Balance (US$ billion – quarterly accumulated) - - - - - 7.8 8.4 23.7

Exports (US$ billion – quarterly accumulated) - - - - - 51.6 40.6 90.3

Imports (US$ billion – quarterly accumulated) - - - - - 43.8 32.2 66.6

Ptax Dollar Rate (EOP) – R$ 1.9 2.0 2.3 2.7 3.9 3.1 3.6 3.2

Ptax Dollar Rate (% YTD in 12 months) 12.6 8.9 14.6 13.4 47.0 40.9 10.9 3.5

All indicators were obtained from official sources such as Central Bank of Brazil, FGV( Getúlio Vargas Foundation), IBGE, etc.

86

Summary Table

Annual Collected Data Quarterly Data

2011 2012 2013 2014 2015 2Q16 1Q16 2Q16

Monetary Ratios

IGP-DI FGV (% YTD in 12 months) 5.0 8.1 5.5 3.8 10.7 6.2 11.1 12.3

IGP-M FGV (% YTD in 12 months) 5.1 7.8 5.5 3.7 10.5 5.6 11.6 12.2

IPCA – IBGE (% YTD in 12 months) 6.5 5.8 5.9 6.4 10.7 8.9 9.4 8.8

Selic (EOP %) 11.00 7.25 10.00 11.75 14.25 13.75 14.25 14.25

Accumulated Selic (% YTD in 12 months) 11.62 8.49 8.22 10.90 13.37 11.88 14.15 14.15

Accumulated TR (exBTN) (% YTD in 12 months) 1.4 0.3 0.3 1.0 1.8 1.4 2.1 2.1

TJLP - IBGE (EOP %) 6.0 5.5 5.0 5.0 7.0 6.0 7.5 7.5

Libor (EOP %) 0.4 0.4 0.2 0.2 0.3 0.3 0.6 0.6

Public Finance

Primary Surplus (% GDP 12 months accumulated) 2.9 2.2 1.7 -0.6 -1.9 -0.8 -2.3 -2.5

Public Sector Gross Debt (% GDP) 51.3 53.8 51.7 57.2 66.5 61.8 67.4 68.6

Public Sector Net Debt (% GDP) 34.5 32.3 30.6 33.1 36.2 33.8 39.0 39.7

Credit Ratios

Banking Industry Loan Portfolio (R$ billion) 3,017.5 3,060.7 3,100.4 3,017.5 3,216.9 3,100.4 3,160.7 3,130.3

Individuals (R$ billion) 40.9 1,075.8 1,245.8 1,412.1 1,512.2 1,463.4 1,520.6 1,530.1

Companies (R$ billion) 40.9 1,292.6 1,465.5 1,605.4 1,707.2 1,637.0 1,640.4 1,600.3

Credit/GDP (% YTD in 12 months) 46.5 50.3 52.6 53.1 54.2 53.4 53.1 51.9

Household Debt (%) 41.6 43.6 45.1 46.0 45.6 46.1 44.5 -

Total Default (% past due loans over 90 days) 3.6 3.7 2.8 2.7 3.1 2.9 3.5 3.5

All indicators were obtained from official sources such as Central Bank of Brazil, FGV( Getúlio Vargas Foundation), IBGE, etc.

87

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