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BTG Pactual Corporate Presentation
Updated as of 1st Quarter 2015
2
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.
This 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.
Disclaimer
3
Table of Contents
Section 1 BTG Pactual Overview
Section 2 BTG Pactual Business Units
Section 3 BTG Pactual Financial Highlights
Section 4 1st Quarter 2015 Highlights
BTG Pactual Group
Banco BTG Pactual and BTGI Individual Highlights
BTG Pactual Overview
Section 1
5
Total assets: R$224.1bn (US$69.9bn)
Shareholders equity: R$19.2bn (US$6.0bn)
AUA and/or AUM: R$215.4bn (US$67.1bn)
WUM: R$87.2bn (US$27.2bn)
3,421 employees(1), of which 68 partners and 179 associate partners
BTG Pactual at a Glance
Notes: (1) Includes outsourced employees and interns as of March 31, 2015 (2) Financial data as of March 31, 2015, converted for end of period R$/US$ rate of 3.21
Investment Banking
Corporate Lending
Sales & Trading
Asset Management
Wealth Management
Pan Principal
Investments Interest
& Others
Financial Advisory (M&A)
ECM
DCM
Fixed Income
FX
Equities
Commodities
LatAm FI & Eq.
Alternative Investments
Fund Services
Global Hedge Funds
Investment Advisory
Financial Planning to HNWI
Commercial and consumer Banking activities
Global Markets
Merchant Banking
Real Estate
Financing
Structured Credit
Letters of Credit
Interest on capital
2.1% 16.2% 59.6% 13.8% 5.6% (22.6)% (1.3)% 26.7%
2014
3M 2015
% of Revenues
6.8% 10.3% 42.0% 20.5% 5.8% (7.2)% (1.2)% 23.0%
Description
Highlights(2) Geographic Footprint(1)
Hong Kong 13 Professionals
U.K. 297 Professionals
USA 312 Professionals
Brazil 1,804 Professionals
Cayman Islands Branch
Colombia 304 Professionals
Chile 408 Professionals
Peru 36 Professionals
Mexico 30 Professionals
Genve 62 Professionals
Singapore 54 Professionals
Johannesburg 15 Professionals
Argentina 15 Professionals
Commodities only office
Shanghai 32 Professionals
Luxemburg 3 Professionals
Milan 9 Professionals
Kiev 16 Professionals
San Jose 5 Professionals
Moscow 3 Professionals
Kenya 3 Professionals
6
Summarized Shareholder Structure
Notes: (1) Neither BTG Participations nor any of its subsidiaries is a guarantor or otherwise obligated under the subordinated notes (2) Portion of the shares subject to lockup agreements (3) Considering economic interest only (Class A and Class B shares) (4) Reflects economic interest in BTG Participations Ltd. and BTG Investments combined (5) Includes 1% of units acquired by the Partnership in Aprils 2012 IPO.
Banco BTG Pactual S.A. BTG Pactual Participations Ltd. /
BTG Investments LP(1)
Investment Bank Investment Company
28.1%(2),(5) 71.9%(3)
Total Free Float Partnership
28.1%(2),(3),(4),(5) 71.9%
Unit Composition 3 shares from Banco BTG Pactual S.A. and 3 shares from BTG Participations Ltd. = 6 Shares
7
BTG Pactual History
1983-86 Founded as brokerage house in Rio de Janeiro
1989
Opening of So Paulo office
Beginning of Internationalization
2002-03
Opening of Belo Horizonte (MG) and Recife (PE) offices
2006 UBS acquires Banco Pactual creating UBS Pactual
1994-98
Commencement of Private Banking activities
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
2009
BTG acquires UBS Pactual, establishing BTG Pactual
2012
IPO: R$3.2 billion
Acquisition of Celfin Capital in Chile
Acquisition of Bolsa Y Renta in Colombia
2010
US$1.8bn capital increase from international investors
2011
Acquisition of co-controlling stake in Banco PanAmericano for R$450mm
Quadrant Capital Advisors Grupo Santo Domingo
2014
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$580 mm
Announced acquisition of BSI, a private banking business based in Switzerland for CHF1.5 Bn
8
What Makes BTG Pactual Unique?
Experienced Team and Solid
Governance
9
BTG Pactual Culture and Values
Client focused
Alpha-based
Global thinking and presence
Long-term ambition
Strategic Focus People Performance Management
How we set our strategic direction How we work How we achieve superior results
Partnership
Teamwork
Hard-working and hands-on
Grow our own talent
Meritocracy
Entrepreneurship
Excellence
Bottom line driven and cost conscious
10
BTG Pactual Organizational Chart and Main Executives
Chairman of the Board
Andre Esteves
Persio Arida Claudio Galeazzi
John Huw Jenkins Marcelo Kalim
Roberto Sallouti
Juan Carlos Canizares John Oros
Mark Clifford Maletz Jonathan Michael Hausman
Alvir Hoffmann John Oros
Anibal Joaquim
Investment Banking Guilherme Paes
Jos Vita
Sales & Trading Renato Santos Ricardo Leiman Rodrigo Ges
Corporate Lending Renato Santos
Asset Management Persio Arida | Steve Jacobs |
James Oliveira | Antoine Estier | David
Martin | Carlos Fonseca
Wealth Management Rogerio Pessoa
Renato Cohn
CFO Marcelo Kalim
COO Roberto Sallouti
CEO Andr Esteves
FICC & EQ EQ Sales Commodities Latam AM Merchant
Banking & RE Intl AM
BTG Pactual Main Executives
Board Members Elected April, 2015
External Directors BTG Pactual Audit Committee
BTG Pactual Business Units
Section 2
12
BTG Pactual has a leading franchise in the most important products in LatAm, especially in Brazil
Business Units Investment Banking - Financial advisory and capital markets services
Note: * The source for DCM LatAm is Dealogic
Rankings Brazil
Rankings LatAm
M&A 2010-3M2015 (Dealogic)
Institution Volume (US$bn)
# Deals
Mkt Share (%)
BTG Pactual 151.1 264 29.0
Credit Suisse 140.7 150 27.0
Itau BBA 113.5 236 21.8
BofAML 108.8 63 20.9
Rothschild 107.8 69 20.7
Institution Volume (US$bn)
# Deals Mkt Share
(%)
Itau BBA 10.3 58 13.2
BTG Pactual 9.4 51 12.1
Bradesco BBI 7.1 39 9.1
BofAML 6.8 25 8.7
Credit Suisse 6.2 39 7.9
Institution Volume (US$bn)
# Deals Mkt Share
(%)
Credit Suisse 219.7 206 24.5
BofAML 173.5 118 19.4
JP Morgan 159.7 142 17.8
BTG Pactual 156.8 282 17.5
Citi 142.8 105 15.9
Institution Volume (US$bn)
# Deals Mkt Share
(%)
BTG Pactual 13.8 81 9.2
Citi 13.2 63 8.8
Itau BBA 12.3 74 8.2
JP Morgan 11.7 56 7.8
Credit Suisse 11.6 71 7.8
Institution* Volume (US$bn)
# Deals Market
Share (%)
Deutsche Bank 63.8 208 10.9
Citi 62.1 234 10.6
HSBC 60.9 224 10.4
JP Morgan 58.3 214 10.0
BofAML 56.0 231 9.6
Institution Volume (R$bn)
# Deals Market
Share (%)
Itau BBA 45.0 607 33.3
Bradesco BBI 29.3 587 21.7
BTG Pactual 25.9 197 19.2
BB 20.7 417 15.3
Votorantim 11.4 182 8.5
ECM 2010-3M2015 (Dealogic) DCM 2010-3M2015 (Anbima)
13
BTG Pactual main awards and full year revenues for Investment Banking
Business Units Investment Banking - Financial advisory and capital markets services
Revenues (R$ mm) Recent Highlights & Awards
2010 - Brazil
Financial Advisor of the Year
Best Equity House Brazil (2011/2010)
World Finance
Best IB Brazil (2012)
Fin. Institution Chile (2012/11/10)
Deloitte Diario Financeiero - Chile
Best OPA Agent / Transaction - (2011)
Best Debt Restructuring Agent - (2011)
Best Financial Institution - (2011)
2010 Latin America
Best Investment Bank Brazil
Best Equity House - LatAm
Global Finance
Best M&A Bank - LatAm (2012)
Best Investment Bank - Brazil
(2012/2011)
377
448 459 456
41
2011 2012 2013 2014 3M 2015
14
Financing and loan guarantees to corporations in Latin America
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
Business Units Corporate Lending
Total Banking Credit Portfolio (R$ bn) Main Highlights
Credit Portfolio Profile by Industry Mar-15 (%)(1,2) Revenues (R$ mm)
Notes: (1) According to Brazilian Central Banks 2682 resolution (2) 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)
13.2 13.6 16.3 14.9 15.0 17.520.1 20.3
2.8 2.72.5 2.4 2.3
2.32.3 1.37.8 7.9
10.78.9 9.8
11.014.0 13.611.8 11.7
10.1 13.3 13.714.1
15.713.935.6 35.8
39.6 39.4 40.944.9
52.249.1
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 B-D
E-H
75%
21%
5%
49.1
30%
10%
7%6%
6%
5%
5%
4%
3%
3%
2%2%
2%2%
13%
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
366
564
767692
318
2011 2012 2013 2014 3M 2015
15
Integrated and diversified platform of customer facilitation businesses in Latin America
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
Business Units Sales & Trading
Note: (1) According with BM&FBovespa on March 31, 2015. Includes Brazilian equities only
Fixed Income
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
Equities
Structured products Market making One of the primary dealers of Brazilian Central Bank
FX
Global Commodities platform, including over 40 desks
Commodities
Coverage of corporate insurance and infrastructure projects
Insurance and Reinsurance
2014 2013 2012 2011
Equity Research House in Brazil
1st 1st 2nd
3rd 1st Equity Research House in LatAm
2nd 1st 1st Brazil Economics
Research
2nd 2nd Fixed Income / Credit Research
Brazil 2nd
2nd 2nd Fixed Income / Credit Research
LatAm 3rd
3rd
2nd
1st
2nd
3rd
16
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
Business Units Sales & Trading
Institutional Investor 2014 Brazil Rankings
Rank Total Team Positions First Team
2014 Firm 2014 2013 2014 2013
18 17 8 7
2 Ita BBA 16 16 3 7
3 Credit Suisse 11 12 5 1
4 BofAML 11 9 1 1
4 JP Morgan 11 6 0 0
In 2014, BTG Pactual had a total of 18 ranked analysts, including 8 ranked #1 in their respective sectors/regions
1st
Local presence started in 2012
2nd 1st 1st
2012 2013 2014
Latin America Sales Team
Revenues (R$ mm)
1,0121,517 1,729
2,833
1,168
2011 2012 2013 2014 3M 2015
17
R$215.4 billion in assets under management
Business Units Asset Management
Global Hedge Funds R$27.1 billion
LatAm FI & EQ Funds R$ 89.2 billion
Alternative Investments R$ 43.8 billion
Fund Services R$ 55.3 billion
Global Hedge Funds
Global Fund of Funds
Private Equity
Timberland
Infrastructure
Real Estate
External Managers Funds
NAV Calculation Fund Accounting Register and Transfer Agent Compliance breaches control Pricing Custody reconciliation
Latam Fixed Income
Money Market Rates & Credit
Latam Equity Index-enhanced
Absolute Return Long Biased Long /Short
Country Specific Funds
Brazil Chile Colombia
Assets Evolution (R$ billion)
120.1
170.7189.5 201.4
215.4
2011 2012 2013 2014 3M 2015
18
BTG Pactual main awards and full year revenues for Asset Management
Business Units Asset Management
Revenues (R$ mm) Recent Highlights & Awards
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
507
1,190 1,172
1,378
270
2011 2012 2013 2014 3M 2015
19
Investment advisory, financial planning services and investment products to HNWI
One of the largest private wealth managers in Latin America
Broad footprint in Brazil, with offices in So Paulo, Rio de Janeiro, Recife, Belo Horizonte and Porto Alegre
Presence in Latin America, with offices in Medellin, Bogot, Lima, Santiago and Mexico City and a broker dealer presence in New York
Proactive and systematic approach to portfolio monitoring
Strong cross-selling with all business units
Business Units Wealth Management
WUM Evolution (R$ billion) Main Highlights
Recent Highlights & Awards Revenues (R$ mm)
Best Private Bank in Brazil 2014 World Finance Magazine
Best Private Bank for Growth Strategy 2014 PWM / The Banker Magazine
Best Private Bank in Colombia 2014 PWM / The Banker Magazine
Best Family Office Services in Brazil 2014 Euromoney Magazine
Best Corporate Advisory for Private Banking Clients in Brazil 2014 Euromoney Magazine
Highly Commended for Best Private Bank in Brazil and Chile 2014 PWM / The Banker Magazine
38.9
62.267.6
81.087.2
2011 2012 2013 2014 3M 2015
150202
385 393
109
2011 2012 2013 2014 3M 2015
20
48
1,859718
(776)
(35)173
234
255
258
(537)(40)
245
(353) 32
128
2011 2012 2013 2014 3M 2015
Principal investments in broad range of financial instruments which are primarily managed by our Asset Management team
Business Units Principal Investments
Global Markets Highly experienced team with strong
track record
Strategy is designed to scale up and down according to market opportunities
Multi-strategy investments with optimization of performances through a dynamic capital allocation
Existing strategies
EM Credit
EM Rates & FX
EM Equities
Equities GDM
Merchant Banking BTG Pactual network of contacts grants
us access to numerous attractive investment opportunities and brings a significant deal flow
Asset Management has a local dedicated investment team, allowing us to operate in both sourcing deals and managing the investments portfolio
Divisions:
Private Equity
Natural Resources
Timber
Infrastructure
Real Estate Investment Strategy focused in: Brazil,
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
Global Markets
Merchant Banking
Real Estate
Total
Revenues (R$ mm)
620
(485) (444)
2,338
181
Global Rates & FX
US Mortgages
US Credit
Reinsurance
21
Pan turnaround underway
Business Units Pan
Shareholding Structure and Rationale
Co-controlling interest with Caixa Econmica Federal
Long-term financing agreement with Caixa Econmica Federal
Business opportunity with profitable products, low cost funding and a well established commercial base
40.4% 40.4% 19.3%
Free-Float
Auto loans
Payroll loans
Consumer loans
Credit cards
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)
Consumer Loans Mortgage SME Lending
BFRE acquisition
Established distribution network for mortgage origination
Real estate mortgages
New or used real estate financing
Construction financing
Home equity
BTG Pactual Financial Highlights
Section 3
23
Track Record of Strong, Controlled and Profitable Growth
Note: (1) 1 day Value at Risk (95%)
Net Income, Shareholders Equity, ROAE and BIS Ratio
VaR(1) and VaR/Average Shareholders Equity
Consistent growth, even in adverse market conditions
Solid profitability (average ROAE of 22.7% in the last 4 years)
Strong capitalization
Excellence in risk management, proven in extremely adverse market conditions
14,145
16,091
18,678 19,215
3,256 2,775 3,411
854
28.7%
18.4% 19.6% 18.0%
2012 2013 2014 3M 2015
Shareholders' Equity (R$mm) Net Income (R$mm) ROAE (%)
17.8% 17.7% 17.5%16.7%
0.8%
0.5% 0.5% 0.6%
2012 2013 2014 3M 2015
Basel Ratio VaR/Avg. Shareholders' Equity
24
Industry-Leading Operating & Profitability Metrics
ROA (%) ROAE (%)
Cost to Income Ratio (%)(2) Compensation Ratio (%)(1)
Notes: (1) Salaries and benefits + bonus expenses / net revenues (2) Total operating expenses / net revenues
22%24%
23%
20%
2012 2013 2014 3M 2015
40%
43%
41%40%
2012 2013 2014 3M 2015
2.5%
1.7% 1.7%1.5%
2012 2013 2014 3M 2015
28.7%
18.4%19.6%
18.0%
2012 2013 2014 3M 2015
25
BTG Pactual has rigorous risk management and maintains a solid and diversified funding base
Rigorous Risk Control Framework with Proven ALM
Assets and Liabilities are Well-matched to Avoid Gaps Strong Risk Management Culture
Risk management and capital preservation are key elements of the investment decision process
Vast majority of partners wealth is BTG Pactuals equity, encouraging rigorous risk control and long-term commitment
Senior management sits on trading floor
Average daily VaR of R$110.9mm / (0.59% of Shareholders Equity) in the 3M 2015
Rigorous Stress Test modeling to complement VaR
Strong discipline of mark-to-market and profit-and-loss review on a daily basis
Investment Grade (Global Scale), Moodys and Fitch, which recently revised the outlook to positive
(Mar-15)
Illiquid Assets
Credit
Assets Financed Through REPOs
Cash & Equivalents
REPO Financing
Assets Liabilities
Settlement Account
Settlement account
Other Assets
Unsecured Funding
Secured Funding
Trading Portfolio Assets
Net Equity
Other Liabilities
Perpetual
19.2
4.110.1
66.9
64.9
51.7
7.1
224.1
1Q 2015
Demand deposits
195% coverage
21.0
9.9
34.2
80.0
53.4
14.8
10.8
224.1
1Q 2015
26
0.4%1.4%
26.8%
36.9%
11.3%
17.4%
5.8%
Demand Deposits
Interbank Deposits
Time Deposits
Securities Issued
Subordinated Debt
Borrowings and Onlending
Perpetual
Loan Portfolio and Unsecured Funding Details
Loans Portfolio Profile by Industry and Rating(1),(2) (as of December 2011)4
R$49.1 billion
Main Unsecured Funding Highlights (as of Mar 2015)(3)
75% of Loan AA-A (as per Brazilian Central Banks definition)
Unsecured funding covers 195% of total loan portfolio(4)
R$71.0 billion
Notes: (1) 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) (2) According to Brazilian Central Banks 2682 resolution (3) Includes funding from LCIs (Real Estate Backed Notes), LCAs (Agricultural Backed Notes) and Subordinated Notes (4) Excludes (i) Demand Deposits from unsecured funding and (ii) letters of credit in general (off balance items) and Interbank Deposits from loans
30%
10%
7%6%
6%
5%
5%
4%
3%
3%
2%2%
2%2%
13%
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
27
Robust Capital Base
BTG Pactual has a solid capital base with R$19.2bn common equity
Notes: (1) Includes shareholders equity of Banco BTG Pactual and BTG Participations (2) Applicable only to Banco BTG Pactual S.A.
BIS Ratio Evolution (%) (2) Shareholders Equity Evolution (R$ billion)(1)
14.1
16.1
18.719.2
2012 2013 2014 3M 2015
12.5% 12.2%10.9% 10.2%
2.9%3.2%
5.3% 5.5%3.7%
3.3%
17.8% 17.7% 17.5%16.7%
2012 2013 2014 3M 2015
Common Equity Tier I Additional Tier I Tier II
28
Revenue Mix(1)
Notes: (1) Revenue mix does not consider revenues from Interest and Others (2) Principal Risk revenues includes our Principal Investment unit and revenues from Banco Pan (3) Return on average equity for BTG Pactual
2014 2010 2011 2012 2013
Principal Risk(2) contributes with additional alpha
ROAE(3) 27.5% 24.2% 28.7% 18.4%
Fee Business Includes IB, AM and WM with CAGR of 28%
Client Facing businesses with
stable revenue mix over the last four
years
Sales and Trading CAGR of 44%
Corporate Lending CAGR of 28%
19.6%
14% 15% 14% 17% 12%
38%42%
39%38% 49%
48%43% 47% 45%
39%
2010 2011 2012 2013 2014
6581,012
1,517 1,729
2,833
8391,033
1,840 2,0172,228
252 366564 767 692
484 129
2,094
497
(565)
1st Quarter 2015 Highlights
Section 4
30
1Q 2015 posted record revenues, 24% above 4Q 2014, and record pre tax profit 28% above the same period.
Performance Summary 1Q 2015
Note: (1) Balance sheet items represents end of period data
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
2 Expenses remain under control Cost to income ratio at 40% for the quarter Compensation ratio at 20% for the quarter
3 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) Net Income (R$ million) Shareholders Equity (R$ billion)
1,706 1,742 1,702 1,586
1,961
20.2 22.417.3 18.4 18.0
1Q2014
2Q2014
3Q2014
4Q2014
1Q2015
Revenues ROAE (%)
832962
769848 854
48.7 55.2 45.2 53.5 43.5
1Q2014
2Q2014
3Q2014
4Q2014
1Q2015
Net income Net margin (%)
16.917.4
18.218.7
19.2
0.540.66
0.48 0.470.59
1Q2014
2Q2014
3Q2014
4Q2014
1Q2015
Shareholders EquityAvg. daily VaR / avg. equity (%)
31
Record revenues with good performance from Corporate Lending and Sales & Trading.
Total Revenues Business Units Breakdown
1st Quarter 2015
Investment Banking
Sales and Trading
Wealth Management
Principal Investments
Corporate Lending
Asset Management
Pan Interest & Other
(% of total)
Total Revenues = R$2.0 billion (R$mm)
41
318
1,168
270
109
(444)
(25)
524
2%16%
60%
14%6%
-23%
-1%
27%
32
Quarter 1Q 2015 % change to Full Year
(in R$ mm, unless stated) 1Q 2014 4Q 2014 1Q 2015 1Q 2014 4Q 2014
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.
Total operating expenses (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%
Expenses and Main Ratios
Costs remained strictly under control, even with higher tax charges, due to higher concentration of revenues in Banco BTG Pactual.
Banco BTG Pactual and BTGI Individual Highlights
Section 5
34
Income Statement Breakdown Between Entities In R$ million
3M 2015 BTG Investments Banco BTG Pactual
Shareholders Equity
41
318
1,152
270
109
(252)
(25)
430
2,044
(783)
1,261
15,522 3,740
Investment Banking
Corporate Lending
Sales and Trading
Asset Management
Wealth Management
Principal Investments
Pan
Interest and Others
Total Revenues
Total Operating Expenses
Net Income
-
-
16
-
-
(192)
-
93
(83)
(7)
(90)
35
15.5
4.1
9.7
61.0
52.9
30.6
3.0
177.0
1Q 2015
14.4
9.8
33.3
65.9
30.9
12.3
10.4
177.0
1Q 2015
Balance Sheet Summary (R$ billion)
Assets Liabilities
Illiquid Assets
Credit
Assets Financed Through REPOs
Cash & Equivalents
Settlement Account
Other Assets
Trading Portfolio Assets
REPO Financing
Settlement account
Unsecured Funding
Secured Funding
Net Equity
Other Liabilities
Perpetual
Demand deposits
185% coverage
Highlights Banco BTG Pactual S.A
Shareholders Equity, Net Income and ROAE
Basel Ratio and VaR
10,101
12,128
14,73315,522
2,061 2,4893,369
937
25.1% 22.4%25.1% 24.8%
2012 2013 2014 3M 2015
Shareholders' Equity (R$mm) Net Income (R$mm) ROAE (%)
17.8% 17.7%17.5%
16.7%
0.7%
0.5% 0.5%0.7%
2012 2013 2014 3M 2015
Basel Ratio (%) VaR/Avg. Shareholders' Equity (%)
36
Balance Sheet Summary (R$ billion)
Assets Liabilities
Illiquid Assets
Assets Financed Through REPOs
Cash & Equivalents
Settlement Account
Trading Portfolio Assets
REPO Financing
Settlement account
Unsecured Funding
Secured Funding
Net Equity
Other Liabilities
Other Assets
Highlights BTG Investments
Total Revenues, Net Income and ROAE
Shareholders Equity and VaR
4,044
4,124
3,973
3,7401.5%
0.9% 1.1% 1.1%
2012 2013 2014 3M 2015
Shareholders' Equity (R$mm) VaR / Average Shareholders' Equity (%)
1,197
319184
-83
1,194
286 42
-83
38.3%
7.0%1.0%
-8.6%
2012 2013 2014 3M 2015
Total revenues (R$ mm) Net income (R$ mm) ROAE (%)
6.4
0.2
15.6
23.7
2.5
1.5
50.7
1T2015
3.7
0.4
7.7
12.5
22.3
4.1
50.7
1T2015
37
BTG Pactual is rated investment grade by the three most renowned rating agencies
BTG Pactual Rating Summary
Outlook
Bank deposits
NSR Bank Deposits
Dom Currency
Bank Financial Strength
Stable(m)
Baa3/P-3
Aaa.br/BR-1
D+
Rating Outlook
Foreign and local currency
Long Term IDR
Short Term IDR
Local
Long Term IDR
Short Term IDR
Positive
BBB-
F3
AA(bra)
F1+(bra)
Outlook
Issuer Credit Rating:
Issuer Credit Rating (local):
Stable
BB+/B
brAA/brA-1
Rating Outlook
Foreign and local currency
Long Term IDR
Positive
BB+
Rating Outlook
Foreign and local currency
Long Term IDR
Positive
BBB-
Banco BTG Pactual S.A.
BTG Investments L.P.
BTG Pactual Holding S.A.
38
Main Contacts
Investor Relations Team Joo Dantas Pedro da Rocha Lima Philippe Katz Mariana Quintanilha
www.btgpactual.com/ir [email protected]
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