Apresentação do PowerPoint · BB Seguridade Participações S.A. | Investor Relations 3 BB MAPFRE SH1 The launch of a new portfolio for term life insurance (growth of 16% YoY);

2016

Public Meeting

BB Seguridade Participações S.A. | Investor Relations

BB Seguridade Participações S.A. | Investor Relations 2

• The increase of 5.0 p.p. in the income tax rate, namely the social contribution (“CSLL”), from September 2015 on, which affected BB MAPFRE SH1, MAPFRE BB SH2, Brasilprev, Brasilcap and IRB;

• The higher PIS/COFINS tax rates in BB Corretora, from 4.65% to 9.25%;

• The reinstatement of the PIS/COFINS tax on financial revenues earned by the holdings, from 0% to 4.65%.

4,6254,980

9M15 9M16

1,754

2,260

3,223

3,945

2,931 3,032

32.4% 38.4% 49.8% 54.8% 54.9% 51.3%

2012 2013 2014 2015 9M15 9M16

Adjusted net income (R$ MM) ROAE

CAGR 2012-2015 31%

+ 3%

BB Seguridade Performance

PROFITABILITY EARNINGS BEFORE TAXES¹ (R$ MM)

PROFITABILITY EARNINGS BREAKDOWN¹ Strategies

• Focus on products with low penetration in the Banco do Brasil’s client base;

• Concentration in business lines with more representativiness and higher return;

• The launch of new products;

• Cost control.

Recent impacts on earnings

+8%

1 – Combined earnings before taxes of controlled and affiliated companies weighted by BB Seguridade’s stake.


BB MAPFRE SH1

The launch of a new portfolio for term life insurance (growth of 16% YoY);

The new model of sales for crop insurance (30/70 Model);

The strict cost control.

Challenges

The adverse environment for credit;

The El Niño effects, which were the strongest over the last 10 years, which impacted the crop insurance loss ratio;

The higher loss ratio in life;

The increase of 5.0 p.p. in the income tax rate (“CSLL”).

Compensation actions


647

907

1,297

1,632

1,231 1,235

20.0%29.6%

41.4% 46.5% 49.7% 46.5%

2012 2013 2014 2015 9M15 9M16


CAGR 2012-2015 36%

+ 0.3%

309 307

444

679

482520

2012 2013 2014 2015 9M15 9M16

CAGR 2012-2015 30%

+ 8%

4,3515,703

6,904 7,007

5,073 4,829

320

542

528 594

4305844,671

6,244

7,432 7,601

5,503 5,412

2012 2013 2014 2015 9M15 9M16

Retained premiums Premiums ceded

CAGR 2012-2015 18%

- 2%

BB MAPFRE SH1

PERFORMANCE RATIOS (%)

PREMIUMS WRITTEN (R$ MM)

NET INVESTMENT INCOME (R$ MM) PROFITABILITY

36.633.6

31.1 29.5 29.8 32.2

25.4 27.3 26.3 27.0 26.6 27.1

16.814.2 15.3 12.7 12.0 11.6

78.675.0

72.569.0 68.1

70.6

2012 2013 2014 2015 9M15 9M16

Loss ratio Commission ratio G&A ratio Combined ratio


MAPFRE BB SH2

Focus on client retention and more rigorous risk selection;

Focus on products with higher margins;

New costumer service tools (digital media).

Challenges

The contraction in sales of brand new cars;

The reduction of consumer power and propensity to buy;

The higher frequency of robbery and theft;

A more competitive environment among insurers;




228199

275

416

298

221

9.7% 7.5% 9.2% 12.8% 12.2% 8.2%

2012 2013 2014 2015 9M15 9M16


CAGR 2012-2015 22%

- 26%

338

216

387

684

478 486

2012 2013 2014 2015 9M15 9M16

CAGR 2012-2015 27%

+ 2%

5,8066,909 7,648 7,680

5,790 5,263

843

885

1,198 1,414

1,0771,165

6,649

7,794

8,846 9,094

6,8676,428

2012 2013 2014 2015 9M15 9M16

Retained premiums Premiums ceded

CAGR 2012-2015 11% - 6%

MAPFRE BB SH2

PERFORMANCE RATIOS (%) PREMIUMS WRITTEN (R$ MM)

PROFITABILITY NET INVESTMENT INCOME (R$ MM)

56.6 54.4 57.4 57.2 57.9 60.2

26.1 24.1 23.0 22.9 23.0 23.1

19.3 19.5 18.3 19.5 18.5 18.5

98.4 98.0 98.6 99.4 99.1 101.5

2012 2013 2014 2015 9M15 9M16

Loss ratio Commission ratio G&A ratio Combined ratio


Brasilprev

Focus on high networthy clients;

Lower redemption ratio;

The improvement of 2.6 p.p. in the cost to income ratio (YoY).

Challenges

The increase in the unemployment rate;

The lower average disposable income;




6784

112

148 138

183

8.7%11.2%

9.4% 9.3% 9.2% 8.4%

2012 2013 2014 2015 9M15 9M16

Reserves (R$ BN) Redemption ratio

CAGR 2012-2015 30%

+ 32%

8381,031

1,236

1,555

1,133

1,429

1.38% 1.32% 1.28%1.21% 1.22%

1.16%

2012 2013 2014 2015 9M15 9M16

Management fee (R$ MM) Management fee

CAGR 2012-2015 23% + 26%

Brasilprev

CONTRIBUTIONS AND NET INFLOW (R$ BN) MANAGEMENT FEE

RESERVES (R$ BN) PROFITABILITY

1 - Source: Quantum Axis

1823

31

37

2732

13 14

21 2317 19

2012 2013 2014 2015 9M15 9M16

Contributions Net inflow¹

CAGR 2012-2015 20%

CAGR 2012-2015 27%

477592

729

861

652742

47.1% 46.3% 42.6% 39.2% 41.5% 39.4%

2012 2013 2014 2015 9M15 9M16


CAGR 2012-2015 22%

+ 14%

+18%

+10%


Brasilcap

The launch of a new portfolio of products, for middle and high income clients.

Challenges




1,951

4,403 4,058 3,9312,646 2,074

1,920

1,867 2,629 2,586

2,0151,900

3,871

6,2706,687 6,517

4,6613,974

2012 2013 2014 2015 9M15 9M16

Unique payment Montlhy payment

CAGR 2012-2015 19% - 15%

183

59

325

454

306

516

2012 2013 2014 2015 9M15 9M16

CAGR 2012-2015 35%

+ 69%

Brasilcap

PREMIUM BONDS COLLECTION (R$ MM)

NET INVESTMENT INCOME (R$ MM)

RESULT WITH PREMIUM BONDS

PROFITABILITY

99

166

209

178

144

105

15.4% 17.3% 18.2% 15.7% 17.5% 15.7%

2012 2013 2014 2015 9M15 9M16Result with premium bonds (R$ MM)

Premium bonds margin

CAGR 2012-2015 22% - 27%

168132

324

379

270

339

88.6%57.1%

92.2% 87.0% 92.3%109.8%

2012 2013 2014 2015 9M15 9M16


CAGR 2012-2015 31%

+ 26%


1,359

1,766

2,308

2,559

1,9022,032

2012 2013 2014 2015 9M15 9M16

CAGR 2012-2015 23%

+ 7%

SH159.1%

SH211.5%

Brasilprev19.7%

Brasilcap9.6%

Other0.2%

661

913

1,289

1,508

1,1091,175

2012 2013 2014 2015 9M15 9M16

CAGR 2012-2015 32%

+ 6%

SH155.6%

SH212.9%

Brasilprev17.7%

Brasilcap13.6%

Other0.3%

BB Corretora

BROKERAGE INCOME (R$ MM)

ADJUSTED NET INCOME (R$ MM)

BREAKDOWN OF BROKERAGE INCOME

EXPENSES BREAKDOWN & NET MARGIN (%)

9M15 9M16

22.5 17.6 12.3 9.4 9.8 8.1

5.57.2

7.47.4 7.4 11.0

25.2 26.728.8 30.0 29.7 29.4

53.2 51.548.5 46.8 46.9 48.5

48.7 51.755.9 58.9 58.3 57.8

2012 2013 2014 2015 9M15 9M16

Operating expenses Tax expenses Income taxes Net margin


Guidance 2016

Ratio 2016

Estimates

BB Seguridade - Adjusted net income growth

(%)4 - 8 3.4

9M16


BB Seguridade – IR

Investor Relations Contacts

Rua Alexandre Dumas, 1671 Térreo – Ala B

São Paulo – SP – Brasil 04717-903

Telephone: +55 11 3066-9894

www.bancodobrasilseguridade.com.br [email protected]

mailto:[email protected]

Documents

Apresentação do PowerPoint · BB Seguridade Participações S.A. | Investor Relations 3 BB MAPFRE SH1 The launch of a new portfolio for term life insurance (growth of 16% YoY);