BTG Pactual Corporate Presentation

Updated as of 1st Quarter 2015

Disclaimer
This presentation has been prepared by Banco BTG Pactual S.A. and BTG Pactual Participations Ltd. (BTG Pactual, and together with its subsidiaries
and affiliates, the Company) for the exclusive use of the party to whom BTG Pactual delivers this presentation. This presentation was prepared
based on BTG Pactual own information and other publicly available information. BTG Pactual does not make any representation or warranty, either
express or implied, as to the accuracy, completeness or reliability of the information, estimates or projections as to events that may occur in the
future (including projections of revenue, expense, net income and stock performance) contained in this presentation. There is no guarantee that any
of these estimates or projections will be achieved. Actual results will vary from the projections and such variations may be material. Nothing
contained herein is, or shall be relied upon as, a promise or representation as to the past or future. BTG Pactual expressly disclaims any and all
liability relating or resulting from the use of this presentation.
T his presentation has been prepared solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any
securities or related financial instruments. BTG Pactual should not construe the contents of this presentation as legal, tax, accounting or investment
advice or a recommendation. This presentation does not purport to be all-inclusive or to contain all of the information that BTG Pactual may require.
No investment, divestment or other financial decisions or actions should be based solely on the information in this presentation.
This material must not be copied, reproduced, distributed or passed to others at any time without the prior written consent of BTG Pactual.

Table of Contents
BTG Pactual Group
Section 1
BTG Pactual Overview
Section 2
BTG Pactual Business Units

Section 3
BTG Pactual Financial Highlights
Section 4
1st Quarter 2015 Highlights

Banco BTG Pactual and BTGI Individual Highlights

Section 1

BTG Pactual Overview

BTG Pactual at a Glance

Investment
Banking

Corporate
Lending

Sales &
Trading

Asset
Management

Wealth
Management

Principal
Investments

Pan

Interest
& Others

2014

6.8%

10.3%

42.0%

20.5%

5.8%

(7.2)%

(1.2)%

23.0%

3M 2015

2.1%

16.2%

59.6%

13.8%

5.6%

(22.6)%

(1.3)%

26.7%

Financial

Financing
Structured

% of Revenues

Description

Advisory
(M&A)
ECM
DCM

Credit

Letters of
Credit

Fixed Income
FX
Equities
Commodities

LatAm FI &

Investment

Global

Eq.
Alternative
Investments
Fund Services
Global Hedge
Funds

Advisory
Financial
Planning to
HNWI

Markets
Merchant
Banking
Real Estate

Geographic Footprint(1)

Commercial

Interest on

and consumer
Banking
activities

capital

Highlights(2)
Total assets: R$224.1bn (US$69.9bn)

U.K.
297 Professionals
USA
312 Professionals
Mexico
30 Professionals

Luxemburg
3 Professionals

Genve
62 Professionals

Moscow
3 Professionals

Milan
9 Professionals

San Jose
5 Professionals
Kenya
3 Professionals

Colombia
304 Professionals

Chile
408 Professionals

Shanghai
32 Professionals
Hong Kong
13 Professionals

Cayman Islands
Branch

Peru
36 Professionals

Shareholders equity: R$19.2bn (US$6.0bn)

Kiev
16 Professionals

Brazil
1,804 Professionals

Singapore
54 Professionals

AUA and/or AUM: R$215.4bn (US$67.1bn)

WUM: R$87.2bn (US$27.2bn)

3,421 employees(1), of which 68 partners

and 179 associate partners

Johannesburg
15 Professionals

Argentina
15 Professionals
Commodities only office

Notes:
(1)
(2)

Includes outsourced employees and interns as of March 31, 2015

Financial data as of March 31, 2015, converted for end of period R$/US$ rate of 3.21

Summarized Shareholder Structure

Partnership

Total Free Float

28.1%(2),(5)

71.9%

Banco BTG Pactual S.A.

Investment Bank

71.9%(3)

28.1%(2),(3),(4),(5)

BTG Pactual Participations Ltd. /

BTG Investments LP(1)

Investment Company

Unit Composition
3 shares from Banco BTG Pactual S.A. and 3 shares from BTG Participations Ltd. = 6 Shares

Notes:
(1)
(2)
(3)
(4)
(5)

Neither BTG Participations nor any of its subsidiaries is a guarantor or otherwise obligated under the subordinated notes
Portion of the shares subject to lockup agreements
Considering economic interest only (Class A and Class B shares)
Reflects economic interest in BTG Participations Ltd. and BTG Investments combined
Includes 1% of units acquired by the Partnership in Aprils 2012 IPO.

BTG Pactual History

2010
US$1.8bn capital
increase from
international
investors

1983-86
Founded as
brokerage house
in Rio de Janeiro

1994-98
Commencement
of Private Banking
activities

1989
Opening of So
Paulo office
Beginning of
Internationalization

2002-03
Opening of Belo
Horizonte (MG) and
Recife (PE) offices

2000-01
Creation of Pactual
Asset Management
and Pactual Banking
in the Cayman Islands

2008
BTG founded by
Andr Esteves,
Persio Arida, and
a group of former
Pactual partners
and former UBS
MDs

2006
UBS acquires
Banco Pactual
creating UBS
Pactual

2012
IPO: R$3.2 billion
Acquisition of Celfin Capital
in Chile
Acquisition of Bolsa Y Renta
in Colombia

Quadrant Capital Advisors

Grupo Santo Domingo

2014

2009
BTG acquires UBS
Pactual,
establishing
BTG Pactual

2011
Acquisition of
co-controlling stake
in Banco
PanAmericano for
R$450mm

Announced acquisition of
Ariel Re. a reinsurance
company out of London
and Bermuda.
Announced acquisition of
Pan Seguros, as a
development of our
insurance strategy for
R$580 mm
Announced acquisition of
BSI, a private banking
business based in
Switzerland for CHF1.5 Bn

What Makes BTG Pactual Unique?

Experienced
Team and Solid
Governance

BTG Pactual Culture and Values

Strategic Focus

People

Performance
Management

How we set our strategic direction

How we work

How we achieve superior results

Client focused

Partnership

Meritocracy

Alpha-based

Teamwork

Entrepreneurship

Global thinking and presence

Hard-working and hands-on

Excellence

Long-term ambition

Grow our own talent

Bottom line driven and cost

conscious

BTG Pactual Organizational Chart and Main Executives

Board Members Elected April, 2015
Chairman of the Board
Andre Esteves

BTG Pactual

External Directors

Persio Arida
Claudio Galeazzi
John Huw Jenkins
Marcelo Kalim
Roberto Sallouti

Audit Committee

Juan Carlos Canizares

John Oros
Mark Clifford Maletz
Jonathan Michael Hausman

Alvir Hoffmann
John Oros
Anibal Joaquim

BTG Pactual Main Executives

CEO
Andr Esteves
CFO
Marcelo Kalim

Investment Banking
Guilherme Paes
Jos Vita

FICC & EQ

COO
Roberto Sallouti

Sales & Trading

Renato Santos
Ricardo Leiman
Rodrigo Ges

EQ Sales

Corporate Lending
Renato Santos

Commodities

Latam AM

Asset Management
Persio Arida | Steve Jacobs |
James Oliveira |
Antoine Estier | David
Martin | Carlos Fonseca

Merchant
Banking & RE

Wealth Management
Rogerio Pessoa
Renato Cohn

Intl AM

10

Section 2

BTG Pactual Business Units

Business Units
Investment Banking - Financial advisory and capital markets services
BTG Pactual has a leading franchise in the most important products in LatAm, especially in Brazil
Rankings Brazil
M&A 2010-3M2015 (Dealogic)

ECM 2010-3M2015 (Dealogic)

Volume
(R$bn)

# Deals

Market
Share (%)

Itau BBA

45.0

607

33.3

12.1

Bradesco BBI

29.3

587

21.7

39

9.1

BTG Pactual

25.9

197

19.2

6.8

25

8.7

BB

20.7

417

15.3

6.2

39

7.9

Votorantim

11.4

182

8.5

Volume
(US$bn)

# Deals

Mkt Share
(%)

Institution*

Volume
(US$bn)

# Deals

Market
Share (%)

Volume
(US$bn)

# Deals

Mkt Share
(%)

Itau BBA

10.3

58

13.2

27.0

BTG Pactual

9.4

51

236

21.8

Bradesco BBI

7.1

108.8

63

20.9

BofAML

107.8

69

20.7

Credit Suisse

Volume
(US$bn)

#
Deals

Mkt Share
(%)

BTG Pactual

151.1

264

29.0

Credit Suisse

140.7

150

Itau BBA

113.5

BofAML
Rothschild

Institution

DCM 2010-3M2015 (Anbima)

Institution

Institution

Rankings LatAm
Volume
(US$bn)

# Deals

Mkt Share
(%)

Credit Suisse

219.7

206

24.5

BTG Pactual

13.8

81

9.2

Deutsche Bank

63.8

208

10.9

BofAML

173.5

118

19.4

Citi

13.2

63

8.8

Citi

62.1

234

10.6

JP Morgan

159.7

142

17.8

Itau BBA

12.3

74

8.2

HSBC

60.9

224

10.4

BTG Pactual

156.8

282

17.5

JP Morgan

11.7

56

7.8

JP Morgan

58.3

214

10.0

Citi

142.8

105

15.9

Credit Suisse

11.6

71

7.8

BofAML

56.0

231

9.6

Institution

Institution

Note:
*
The source for DCM LatAm is Dealogic

12

Business Units
Investment Banking - Financial advisory and capital markets services
BTG Pactual main awards and full year revenues for Investment Banking
Recent Highlights & Awards

World Finance
Best IB Brazil (2012)
Fin. Institution Chile (2012/11/10)

2010 Latin America

Best Investment Bank Brazil
Best Equity House - LatAm

Deloitte Diario Financeiero - Chile

Best OPA Agent / Transaction - (2011)
Best Debt Restructuring Agent - (2011)
Best Financial Institution - (2011)

Revenues (R$ mm)

448
Global Finance
Best M&A Bank - LatAm (2012)
Best Investment Bank - Brazil
(2012/2011)

459

456

377

Best Equity House Brazil

(2011/2010)

2010 - Brazil
Financial Advisor of the Year

41

2011

2012

2013

2014

3M 2015

13

Business Units
Corporate Lending
Financing and loan guarantees to corporations in Latin America
Main Highlights

Total Banking Credit Portfolio (R$ bn)

Integrated origination platform

Anticipation of demand and needs of our clients
Greater flexibility and agility in order to structure and approve loan

transactions
Partners involved in credit and risk analysis
Cross-selling with IBD, Wealth Management, Merchant Banking and
FICC distribution desk
Main booking areas:
High Grade Credit Desk: tailored credit solutions for large
corporations
High Yield Credit Desk: credit arbitrages on loans and acquisition
of non-performing loans (NPL) portfolios

767

692

564

366

318

2012

35.6

35.8

39.6
10.1

11.8

7.9
2.7

13.2

13.6

40.9

13.3

13.7

2.5

8.9
2.4

9.8
2.3

16.3

14.9

15.0

11.7

7.8
2.8

39.4

10.7

15.7
14.1
11.0

49.1
5%

13.9

21%

14.0

13.6

2.3

1.3

20.1

20.3

2.3
17.5

49.1

75%

Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15

Loans

Funds

Letter of Credit

Marketable Securities

AA-A
E-H

B-D

Credit Portfolio Profile by Industry Mar-15 (%)(1,2)

Revenues (R$ mm)

2011

52.2

44.9

2013

Notes:
(1)
(2)

2014

3M 2015

Utilities
Infrastructure
Retail
Real Estate
Metals & Mining
Agribusiness
Oil & Gas
Mid-sized Banks
Wealth Management
Health
Food & Beverage
Auto-Parts
Services in General
Legal Claims
Others

13%
2%
2%
2%
2%
3%

30%

3%

4%
5%

10%
5%
6%

6%

7%

According to Brazilian Central Banks 2682 resolution

Does not include Banco Panamericano Loan Portfolio and includes off balance sheet items (loans, debentures, CRIs, FIDCs, FIPs, TDs, corporate
bonds, letter of credit, commitments and others)

14

Business Units
Sales & Trading
Integrated and diversified platform of customer facilitation businesses in Latin America
Fixed Income

2014

2013

2012

2011

Equity Research
House in Brazil

1st

1st

1st

2nd

Equity Research
House in LatAm

2nd

3rd

1st

Brazil Economics
Research

3rd

2nd

1st

1st

Fixed Income /
Credit Research
Brazil

2nd

2nd

2nd

2nd

Fixed Income /
Credit Research
LatAm

3rd

3rd

2nd

2nd

Fixed Income and Credit Research team named among the best teams

in LatAm, covering over 30 companies

Dealer in Public Debt Offering from National Treasury
Leading Futures Brokerage platform in Brazil
Market making
Structured products

Equities
Equity research and sales teams named among

the best teams in LatAm, covering 264 companies in 20 industries

Equity financial products and services to local and international clients,
including:
Leader in market-making, with 44.7% market share(1)
Brokerage and clearing services
Derivatives for hedging and trading purposes

FX
Structured products
Market making
One of the primary dealers of Brazilian Central Bank

Commodities
Global Commodities platform, including over 40 desks

Insurance and Reinsurance

Coverage of corporate insurance and infrastructure projects
Note:
(1)

According with BM&FBovespa on March 31, 2015. Includes Brazilian equities only

15

Business Units
Sales & Trading
In 2011, BTG Pactual debuted on Institutional Investors inaugural Latin American Sales Team at
No. 5. In 2012 the firm soared to second, and in 2013 and 2014 the So Paulo-based outfit claims
the summit
Latin America Sales Team

Institutional Investor 2014 Brazil Rankings

Total Team Positions
First Team
Firm
2014
2013
2014
2013

Rank
2014

1st

18

17

Ita BBA

16

16

Credit Suisse

11

12

BofAML

11

JP Morgan

11

In 2014, BTG Pactual had a total of 18 ranked analysts, including 8 ranked #1

in their respective sectors/regions

Revenues (R$ mm)

2,833

2012

2nd

2013

1st

Local presence started in 2012

2014

1st

1,517

1,729

2012

2013

1,168

1,012

2011

2014

3M 2015

16

Business Units
Asset Management
R$215.4 billion in assets under management
LatAm FI & EQ Funds
R$ 89.2 billion
Latam Fixed Income
Money Market
Rates & Credit
Latam Equity Index-enhanced
Absolute Return
Long Biased Long /Short
Country Specific Funds
Brazil
Chile
Colombia

Alternative Investments
R$ 43.8 billion

Fund Services
R$ 55.3 billion

Private Equity
Timberland
Infrastructure
Real Estate

External Managers Funds

NAV Calculation
Fund Accounting
Register and Transfer Agent
Compliance breaches control
Pricing
Custody reconciliation

Global Hedge Funds

R$27.1 billion
Global Hedge Funds
Global Fund of Funds

Assets Evolution (R$ billion)

170.7

189.5

201.4

215.4

2013

2014

3M 2015

120.1

2011

2012

17

Business Units
Asset Management
BTG Pactual main awards and full year revenues for Asset Management
Recent Highlights & Awards

Revenues (R$ mm)

Best Fixed Income and Equities Global Manager in Chile

2015 (Morningstar)
Best High Net Worth Fund Manager 2013 / 2014
(Exame/FGV)
Best Equities Strategist 2014 (Institutional Investor
Brazil)
Best Hedge Fund Strategist 2014 (Institutional Investor
Brazil)
Best Equities Fund Manager 2013 (Exame/FGV)
Best Fixed Income and Flexible-Multi Asset 2012/ 2013
(S&P/Valor Econmico)
Best Hedge Fund Manager in Global Macro 2012 (FN
Hedge Fund Awards)
New Hedge Funf of the Year (Global Eq. Opp. Fund)
2012 (FN Hedge Fund Awards)
Best Fund Manager 2012 (Exame/FGV)
Best Global Macro Hedge Fund 2012 (GEMM,
EuroHedge Awards)
High Standard Asset Managers Rating by Fitch Ratings

1,378
1,190

1,172

507
270

2011

2012

2013

2014

3M 2015

18

Business Units
Wealth Management
Investment advisory, financial planning services and investment products to HNWI
Main Highlights

WUM Evolution (R$ billion)

One of the largest private wealth managers in Latin America

Broad footprint in Brazil, with offices in So Paulo, Rio de Janeiro,
81.0

Recife, Belo Horizonte and Porto Alegre

62.2

Presence in Latin America, with offices in Medellin, Bogot, Lima,

Santiago and Mexico City and a broker dealer presence in New York

87.2

67.6

38.9

Proactive and systematic approach to portfolio monitoring

Strong cross-selling with all business units
2011

Revenues (R$ mm)

2012

2013

2014

3M 2015

Recent Highlights & Awards

385

Best Private Bank in Brazil 2014 World Finance Magazine

Best Private Bank for Growth Strategy 2014 PWM / The

393

Banker Magazine

Best Private Bank in Colombia 2014 PWM / The Banker

Magazine

202

Best Family Office Services in Brazil 2014 Euromoney

150

109

Magazine

Best Corporate Advisory for Private Banking Clients in

Brazil 2014 Euromoney Magazine

2011

2012

2013

2014

3M 2015

Highly Commended for Best Private Bank in Brazil and Chile

2014 PWM / The Banker Magazine

19

Business Units
Principal Investments
Principal investments in broad range of financial instruments which are primarily managed by our
Asset Management team
Global Markets

Merchant Banking

Real Estate

Highly experienced team with strong

BTG Pactual network of contacts grants

Investment Strategy focused in: Brazil,

track record

Strategy is designed to scale up and down

according to market opportunities

Asset Management has a local dedicated

Multi-strategy investments with

optimization of performances through a
dynamic capital allocation

Existing strategies
EM Credit
EM Rates & FX
EM Equities
Equities GDM

us access to numerous attractive

investment opportunities and brings a
significant deal flow

Global Rates & FX

US Mortgages
US Credit
Reinsurance

investment team, allowing us to operate

in both sourcing deals and managing the
investments portfolio

Divisions:
Private Equity
Natural Resources
Timber
Infrastructure

Chile, Colombia and Peru

Income Generating Properties

Exposure to all the main assets classes:
offices, shopping, industrial (logistics)
and hospitality

Development
Exposure to residential, commercial
and mixed use projects

Partnership with local developers

Dedicated Investment team with
broad experience in the sector

Revenues (R$ mm)

Global Markets

2,338
181
173
48
(40)

2011

245
234
1,859

620
(444)

258
32
(776)

128
(35)
(537)

2014

3M 2015

255

718
(353)
2012

(485)

2013

Merchant Banking
Real Estate
Total

20

Business Units
Pan
Pan turnaround underway
Shareholding Structure and Rationale

Co-controlling interest with Caixa Econmica

Free-Float
40.4%

Consumer Loans
Auto loans
Payroll loans
Consumer loans
Credit cards

40.4%

19.3%

Federal
Long-term financing agreement with Caixa
Econmica Federal
Business opportunity with profitable products,
low cost funding and a well established
commercial base

SME Lending
Main products are trade finance, working
capital and stand-by letters of credit

Guarantees through:
Receivables and advances
Commercial pledge
First priority security (interest on real
estate)

Mortgage
BFRE acquisition
Established distribution network for
mortgage origination

Real estate mortgages

New or used real estate financing
Construction financing
Home equity

21

Section 3

BTG Pactual Financial Highlights

Track Record of Strong, Controlled and Profitable Growth

Shareholders' Equity (R$mm)

Net Income, Shareholders Equity, ROAE and BIS Ratio

Consistent growth, even in adverse

market conditions

Solid profitability (average ROAE of 22.7% in

the last 4 years)

Net Income (R$mm)

18,678

19,215

18.4%

19.6%

18.0%

2,775

3,411

16,091
14,145

28.7%

3,256

Strong capitalization

854
2012

2013

Basel Ratio

VaR(1)

ROAE (%)

and VaR/Average Shareholders Equity

17.8%

2014

3M 2015

VaR/Avg. Shareholders' Equity

17.7%

17.5%

0.5%

0.5%

0.6%

2013

2014

3M 2015

16.7%

Excellence in risk management, proven

in extremely adverse market conditions

0.8%

2012

Note:
(1)

1 day Value at Risk (95%)

23

Industry-Leading Operating & Profitability Metrics

ROAE (%)

ROA (%)
2.5%

28.7%

19.6%

18.4%

2012

2013

2014

18.0%

3M 2015

Compensation Ratio (%)(1)

1.7%

2013

2014

1.5%

3M 2015

Cost to Income Ratio (%)(2)

43%

24%

23%

22%

2012

2012

1.7%

20%

2013

2014

Notes:
(1)
(2)

3M 2015

Salaries and benefits + bonus expenses / net revenues

Total operating expenses / net revenues

41%

40%

2012

2013

2014

40%

3M 2015

24

Rigorous Risk Control Framework with Proven ALM

BTG Pactual has rigorous risk management and maintains a solid and diversified funding base
Strong Risk Management Culture
Risk management and capital preservation are
key elements of the investment decision
process

Vast majority of partners wealth is BTG

Assets and Liabilities are Well-matched to Avoid Gaps

(Mar-15)
Assets

Liabilities

224.1

224.1

Cash & Equivalents

10.8

7.1

Settlement account

Settlement Account

14.8
51.7

REPO Financing

64.9

Secured Funding

Pactuals equity, encouraging rigorous risk

control and long-term commitment

Senior management sits on trading floor

Assets Financed
Through REPOs

53.4

Average daily VaR of R$110.9mm / (0.59% of

Shareholders Equity) in the 3M 2015

Rigorous Stress Test modeling to complement

VaR

Trading Portfolio
Assets

80.0
Demand deposits

Strong discipline of mark-to-market and profitand-loss review on a daily basis

Investment Grade (Global Scale), Moodys and

Fitch, which recently revised the outlook to
positive

66.9

Unsecured Funding

195%
coverage

Credit

34.2

Other Assets

9.9

10.1
4.1

Other Liabilities
Perpetual

Illiquid Assets

21.0

19.2

Net Equity

1Q 2015

1Q 2015

25

Loan Portfolio and Unsecured Funding Details

Loans Portfolio Profile by Industry and Rating(1),(2)

Main Unsecured
Funding2011)
Highlights
(as of Mar 2015)(3)
4
(as of December
Unsecured funding covers
195% of total loan portfolio(4)

Utilities
Infrastructure
Retail
Real Estate
Metals & Mining
Agribusiness
Oil & Gas
Mid-sized Banks
Wealth Management
Health
Food & Beverage
Auto-Parts
Services in General
Legal Claims
Others

5.8%

13%
2%
2%
2%
2%
3%

30%

0.4%
1.4%

17.4%

26.8%

Demand Deposits

Interbank Deposits
Time Deposits

3%

Securities Issued

4%

11.3%

5%

Subordinated Debt
Borrowings and Onlending

10%
5%

Perpetual
6%

6%

7%

R$49.1 billion

36.9%

R$71.0 billion

75% of Loan AA-A (as per Brazilian Central Banks definition)

Notes:
(1)
(2)
(3)
(4)

Does not include Banco Panamericano Loan Portfolio and includes off balance sheet items (loans, debentures, CRIs, FIDCs, FIPs, TDs, corporate
bonds, letter of credit, commitments and others)
According to Brazilian Central Banks 2682 resolution
Includes funding from LCIs (Real Estate Backed Notes), LCAs (Agricultural Backed Notes) and Subordinated Notes
Excludes (i) Demand Deposits from unsecured funding and (ii) letters of credit in general (off balance items) and Interbank Deposits from loans

26

Robust Capital Base

BTG Pactual has a solid capital base with R$19.2bn common equity
Shareholders Equity Evolution (R$ billion)(1)

18.7

BIS Ratio Evolution (%) (2)

19.2
17.8%

17.7%

17.5%
16.7%

16.1
5.3%

14.1

5.5%

3.7%

2.9%

12.5%

2012

2013

2014

3M 2015

2012

12.2%

2013

Common Equity Tier I

Notes:
(1)
(2)

Includes shareholders equity of Banco BTG Pactual and BTG Participations

Applicable only to Banco BTG Pactual S.A.

10.9%

3.3%

3.2%

10.2%

2014

3M 2015

Additional Tier I

Tier II

27

Revenue Mix(1)
2010

839

2011

2012

2013

1,840

2,017

2014
2,228

1,033

Fee Business
Includes IB, AM
and WM with
CAGR of 28%

48%

43%

47%

45%

39%

2,833

658

1,517

1,012

Sales and Trading

CAGR of 44%

1,729

38%

252

564

366

767

692

Corporate Lending
CAGR of 28%

14%

42%

15%

39%

14%

38%

17%

49%

12%

2010 2011 2012 2013 2014

2,094
484

Risk(2)

Principal
contributes with
additional alpha

497

129

(565)

27.5%

24.2%

Notes:
(1)
(2)
(3)

28.7%

18.4%

19.6%

Client Facing
businesses with
stable revenue mix
over the last four
years

ROAE(3)

Revenue mix does not consider revenues from Interest and Others
Principal Risk revenues includes our Principal Investment unit and revenues from Banco Pan
Return on average equity for BTG Pactual

28

Section 4

1st Quarter 2015 Highlights

Performance Summary
1Q 2015
1Q 2015 posted record revenues, 24% above 4Q 2014, and record pre tax profit 28% above the
same period.
1

For 1st quarter, total revenues and net income reached almost R$2.0 billion and R$854 million, respectively
Annualized ROAE of 18.0%
Net income at R$0.94 per unit

Expenses remain under control

Cost to income ratio at 40% for the quarter
Compensation ratio at 20% for the quarter

Total assets at R$224.1 billion, 3% higher when compared to 4Q 2014, and our Basel ratio was 16.7%
VaR in the quarter increased to R$110.9 million, or 0.59% of average shareholders equity

Revenues (R$ million)

1,706

1,742

Net Income (R$ million)

962

1,961

1,702

832

1,586

769

848

Shareholders Equity (R$ billion)

854

18.2

16.9
20.2

1Q
2014

22.4

2Q
2014

17.3

3Q
2014

Revenues

18.4

4Q
2014

18.0

1Q
2015

ROAE (%)

48.7

55.2

1Q
2014

2Q
2014

Net income

Note:
(1) Balance sheet items represents end of period data

45.2

53.5

3Q
2014

4Q
2014

43.5

0.54

1Q
2015

1Q
2014

Net margin (%)

18.7

19.2

17.4

0.66

2Q
2014

0.48

0.47

3Q
2014

4Q
2014

0.59

1Q
2015

Shareholders Equity
Avg. daily VaR / avg. equity (%)
30

Total Revenues
Business Units Breakdown
Record revenues with good performance from Corporate Lending and Sales & Trading.
1st Quarter 2015
Total Revenues = R$2.0 billion
(R$mm)

1,168

524
318

270

109

41

(25)

(444)

60%

(% of total)

16%

14%

2%

27%
6%
-1%
-23%

Investment
Banking

Corporate
Lending

Sales and
Trading

Asset
Management

Wealth
Management

Principal
Investments

Pan

Interest &
Other

31

Expenses and Main Ratios

Costs remained strictly under control, even with higher tax charges, due to higher concentration
of revenues in Banco BTG Pactual.

Quarter

1Q 2015 % change to

1Q 2014

4Q 2014

1Q 2015

Bonus

(225)

(242)

(172)

-24%

-29%

Salaries and benefits

(159)

(197)

(215)

35%

9%

Administrative and other

(178)

(251)

(239)

34%

-5%

Goodwill amortization

(46)

(34)

(46)

0%

36%

Tax charges, other than income tax

(39)

51

(119)

206%

n.a.

(647)

(673)

(791)

22%

18%

Cost to income ratio

38%

42%

40%

Compensation ratio

23%

28%

20%

Income tax and social contribution

(227)

(65)

(317)

39%

390%

Effective income tax rate

21.5%

7.1%

27.0%

(in R$ mm, unless stated)

Total operating expenses

1Q 2014

Full Year

4Q 2014

32

Section 5

Banco BTG Pactual and BTGI Individual Highlights

Income Statement Breakdown Between Entities

In R$ million

3M 2015
Banco BTG Pactual

BTG Investments

41

Investment Banking

318

Corporate Lending

1,152

Sales and Trading

16

270

Asset Management

109

Wealth Management

(252)

Principal Investments

(192)

(25)

Pan

430

Interest and Others

93

2,044

Total Revenues

(83)

(783)

Total Operating Expenses

(7)

1,261

Net Income

(90)

15,522

Shareholders Equity

3,740

34

Highlights Banco BTG Pactual S.A

Balance Sheet Summary (R$ billion)

Shareholders Equity, Net Income and ROAE

Shareholders' Equity (R$mm)

Cash & Equivalents

Assets

Liabilities

177.0

177.0
3.0

10.4

Settlement Account

12.3

Assets Financed
Through REPOs

30.9

14,733
Settlement account

ROAE (%)
15,522

12,128
10,101

30.6

REPO Financing

25.1%

52.9

Trading Portfolio
Assets

Net Income (R$mm)

65.9

25.1%
22.4%

2,061

2,489

2012

2013

3,369
937

Secured Funding

2014

3M 2015

Basel Ratio and VaR

Demand deposits

Basel Ratio (%)

61.0

24.8%

Unsecured Funding

17.8%

17.7%

185%
coverage

VaR/Avg. Shareholders' Equity (%)

17.5%
16.7%

Credit

33.3

9.8

9.7
4.1

Other Liabilities

Other Assets
Illiquid Assets

14.4

15.5

Net Equity

1Q 2015

1Q 2015

0.7%

Perpetual

2012

0.7%

0.5%

0.5%

2013

2014

3M 2015

35

Highlights BTG Investments

Balance Sheet Summary (R$ billion)

Total Revenues, Net Income and ROAE

Total revenues (R$ mm)

Assets

Liabilities

50.7

50.7

1.5
2.5

4.1

Net income (R$ mm)

ROAE (%)

38.3%
Cash & Equivalents
Settlement Account

Settlement account

1,197
1,194
7.0%

1.0%
184
42

319
286

-8.6%

-83
Assets Financed
Through REPOs

23.7

22.3

-83

REPO Financing

2012

2013

2014

3M 2015

Shareholders Equity and VaR

Shareholders' Equity (R$mm)

12.5
Trading Portfolio
Assets

15.6

Other Assets

0.2

Illiquid Assets

6.4

Secured Funding

VaR / Average Shareholders' Equity (%)

4,124
4,044
3,973

1T2015

7.7

Unsecured Funding

0.4
3.7

Other Liabilities

1T2015

3,740

1.5%

0.9%

1.1%

1.1%

2013

2014

3M 2015

Net Equity

2012

36

BTG Pactual Rating Summary

BTG Pactual is rated investment grade by the three most renowned rating agencies

Outlook
Bank deposits

Banco
BTG Pactual S.A.

NSR Bank Deposits

BTG Pactual
Holding S.A.

Baa3/P-3
Aaa.br/BR-1

Rating Outlook
Positive
Foreign and local currency
Long Term IDR

BBB-

Short Term IDR

F3

Outlook
Stable
Issuer Credit Rating:
BB+/B
Issuer Credit Rating (local): brAA/brA-1

Local

Dom Currency

Bank Financial Strength

BTG Investments
L.P.

Stable(m)

D+

Long Term IDR

AA(bra)

Short Term IDR

F1+(bra)

Rating Outlook
Positive
Foreign and local currency
Long Term IDR

BB+

Rating Outlook
Positive
Foreign and local currency
Long Term IDR

BBB-

37

Main Contacts

www.btgpactual.com/ir
ri@btgpactual.com

Investor Relations Team

Joo Dantas
Pedro da Rocha Lima
Philippe Katz
Mariana Quintanilha

38