APIMECBANCO DO BRASIL 2017DIGITAL TRANSFORMATION AND USER EXPERIENCE

MARCELO LABUTO / VICE-PRESIDENT OF RETAIL BUSINESS

ANTÔNIO GUSTAVO DO VALE / VICE-PRESIDENT OF TECHNOLOGY

WALTER MALIENI / VICE-PRESIDENT OF RETAIL DISTRIBUTION AND HUMAN RESOURCES

TAKE CARE OF WHAT MATTERS

TO PEOPLE

Public Spirit

CustomerFocus Innovation Ethics

Protagonism Efficiency

BB VALUES

Reliability

Being the company that offers a better experience for people's lives and

promote the society development in an innovative, efficient and sustainable way

VISION

An innovative company, that connectspeople to their achievements

POSITION

human capital

customer experience

quality of services

capital and credit management

digital transformation

efficiency

profitability

BB PILLARS

CUSTOMER SERVICE’S YEAR

› 1,057 branches with Wi-Fi available to customers and more than 2 thousand until August 2018› Emission of password in the app, with the expected time of service in the branch chosen› Improved service with the BB 3.0 Platform: higher performance, customer dashboard with propensity intelligence and most

demanded solutions available at one-click

Actions resulting from the employees contributions duringinteractions with the

Board of Officers (throughout the whole country)Caffarelli, CEO

Proposition of actions with indicators and goals

Analysis of relevance and completeness of these actions

selection

Approval of the set of actions for the quarter

Dissemination ofactions to the Bank

Monthly monitoring the indicators of actions implemented

ON A QUARTERLY BASIS

SOME IDEAS ALREADY IMPLEMENTED

65.8million customers

36.6 millionaccounts

1.4 million ofContas Fácil

BB’S CUSTOMERS

Mobile

Branches / ATM / Agents in the Country

258 branches

1,2 mm customers

63 offices

1,1 mm customers

39 offices

113 thousand customers

108 branches

155 thousand customers

309 specialized branches

68,3 thousand customersautomated approach

Estilo Exclusivo Microempresa Empresa Agro Varejo

(customer choose when and where to be served)

Ecosystem optichannel

SPECIALIZED SERVICES

[ remuneration among models / conclusive customer service in any branch of the country ]

↑ 123% ↑ 95% ↑ 182%

SPECIALIZED SERVICES / benefits and mix of tools

ACCOUNT MANAGERS/SPECIALISTS

EXTENDEDHOURS

TELEPHONESERVICE

VIDEOCHATS

E-MAILSCHAT ONLINE

INSIDE THE APP FILE

UPLOADDOUBLE

CONFIRMATION

HIGHER OPERATIONAL CAPACITYAND INCREASE OF SATISFACTION INDEXES

SPECIALIZED SERVICES / implementations

INDIVIDUALS

Any branch can update and confirm theupdate of customer info increasing thespeed in service

COMPANIES

Instant register update, specially in mostdemanded items (with higher rate ofcomplaints)

AGRO / RURAL PRODUCER

Automated guarantees pricing and reductionin the number of documents for the hiring oftransactions

PASSWORDS

Revision and improvement in the processof register and unblocking of passwordsvia new app solution

MODULAR SERVICE PACKAGE (COMPANIES)Service package that agreggates cash management services, along with therevision os access and special rates

AGRO

Fewer steps for rural transactions analysisin order to reduce the time incurred betweenhiring and disbursement of agro transactions

REG

IST

ER

SPECIALIZED SERVICES / launch of BB Visitas app

BB VISITAS APPFirst application developed exclusively for Account Managers:

› Increase of qualified visits

› Online access to customers info

› List of customers needs available

› Companies Customer Service Panel (360º solution)

› Integrated Geolocation

› Check-in at the beginning of the visit and check-out at the end

› Documents, photos, or audio recordings upload

› Synchronization with BB Platform

We are visiting 200% more compared to 2016

With an increase in the number of visits, BB is even closer to the customer and negotiates

transactions with better levels of RAR¹

The disbursement of receivables lines increased from 57.7% of the daily total in the 2nd quarter to 61.2% in the 3rd quarter, a 6%

increase

1. RAR – Risk Adjusted Return

Creation of 96 agro-specialized portfolios for medium and large-scale producers308 specialized branches

GeoMapa Rural: app of measurement of areas that allows to demarcate perimeters of the properties, and send the info to BB for financing

Custeio Digital: renewal of working capital for input purchase (agricultural and livestock transactions) directly via mobile app (launched in Feb/17 and Nov/17, respectively)

Digital Investment: Launched in May/17

BB digital tools available to rural producers:

SPECIALIZED SERVICES / agribusiness

SPECIALIZED SERVICES / new areas

Funding and Investments Foreign Trade› Specialized advice for investors and prospects

› Product efficiency and portfolio diversification

› Vision oriented to the investor's journey

› Strengthen the Bank's performance as a business partner

› Centralize international business strategy

› Promote the development of professional skills

2016: Fees were 29% of Total Income

IN 2017 (9 months): Fees are 31% of Total Income

RESULTS

FEE INCOME EVOLUTION ON BB’S TOTAL REVENUES:

Indicates inflection of the curve, which will accentuate with the focus given by BB

video

DIGITAL TRANSFORMATION / channel participation (%)

Internet and Mobile

Other Channels59.7%

40.3%

72.1%

27.9%

SEP/11 SEP/12 SEP/13 SEP/14 SEP/15 SEP/16 SEP/17

1.3

2.4

3.64.2

5.4

7.7

14.7

DIGITAL TRANSFORMATION / numbers

21.8 MM ENABLED USERS (INTERNET + APP)

Customers with active account and internet password enabled

12.2 MM

21.8 MM

20132011

14.7 MILLIONMOBILE USERS

2015 2017

DIGITAL TRANSFORMATION / numbers

DAILY ACCESS (on average)4.0 million Mobile0.8 million Internet

APP’S EVALUATION4.5 Google Play4.1 Apple Store

CHATBOT MESSENGERMachine Learning (IBM Watson) 81% efectiveness42% FCR – no need of additional human

interaction (First Call Resolution)

CHAT SERVICE“Fale com seu Gerente”:2.5 MM Estilo/Exclusivo/MPE

For accounts opened via app:18 thousand active customers96.5% of demands are solved

99.4% 99.3% 100%

AVAILABILITYBB WEBSITEATM COMMUNICATION BRANCH SERVER

“If you could install only one app in your phone which one would it be?”

BB is the only financial app listed!

5 Brazilians’ favorite apps

MOBILE TIME/OPINION BOX MAY/17

1 thousand branches with 2 thousand until Aug/18Wi-Fi

WhatsAppFacebookInstagram

Google +Banco do Brasil

DIGITAL TRANSFORMATION / core banking digitization

APPS UNIFICATIONI N D I V U I D U A L S / C O M P A N I E S /G O V E R N M E N TD E C 2 0 1 7

2017 HIGHLIGHTS

ACCOUNT OPENING

UPDATE INFO

PASSWORDS

INSURANCE

CONSORTIUM AND PREMIUM BONDS

TRANSFER OF LIMITS AMONG CREDIT LINES

DEBT SOLUTION

INVESTIMENTS SIMULATION

MORTGAGE SIMULATION

CONTA FÁCIL OPENINGI N D I V I D U A L S / M E I ¹

MY FINANCES

1 - I n d i v i d u a l e n t r e p e n e u r .

DIGITAL TRANSFORMATION / share (%) of auto loans hired via app

Launchedon app BB in AUG/15

2%

18%

53%

NOV/15 NOV/16 NOV/17

Disbursement R$ 850 Millionsince August/15

Going to reachR$ 1 Biin Dec/17

DIGITAL TRANSFORMATION / monthly payroll disbursements¹ via app

Increase in the portfolio’s profitability

Expand the portfolio on lower and neutal risk lines

Improve the operational efficiency and drop in the cost of hiring

Monthly Average disbursement in 2017: R$ 128 Milion

204% growth as compared to the

same period of 2016

1. R$ Million

Cumulative anual disbursements (Nov) R$ 1 Bi

9M16 9M17

+204%

DIGITAL TRANSFORMATION / debt solution and transfer of limits among credit lines

DEBT SOLUTION

VIA APPA L T E R N A T I V E SF O R C O S T U M E R S

- DELINQUENCY REDUCTION- ALLL EXPENSES REDUCTION- GREATER DISBURSEMENT OF

CREDIT RENEWAL

ADHESION TO

AUTOMATIC TRANSFER OF CREDIT LIMITS.A V A I L A B L E L I M I T S F O R O V E R D R A F T A C C O U N T ,

C A R D O R D I R E C T C O N S U M E R C R E D I T .

- EFFICIENCY IN CAPITAL ALLOCATION.- OPTIMIZATION OF THE USE OF LIMITS.- REDUCTION OF DENIED CREDIT CARD TRANSACTIONS.

44,000 adhesions in 10 days 130,000 contracts

R$ 1.2 billion renegotiated

loansuntil Nov/17

Investments volume

Total Alta Renda Personalizado Varejo

R$ 100 MM

R$ 57 MM

R$ 21 MM

R$ 47 MM

R$ 28 MM

R$ 25 MM

DIGITAL TRANSFORMATION / investments simulator

More than 116,000 customers performed simulations

Clients with a conservative profile accounted

for 68% of hirings

The average value of investments in this period was R$ 15,600

High Income segment customers made 47%of the total number of hirings

INVESTMENTS

SIMULATORI N T H E A P P

4 months of Pilot Project

Jul/26 Aug/31 Sep/30 Oct/31 Nov/07 Nov/20 Dec/01

DIGITAL TRANSFORMATION / mortgage in BB app

MORTGAGEI n B B A P P

STILL IN 2017

A N D F O L L O W T H E R E L E A S E O F T H E I R M O R T G A G E L O A N S T H R O U G H A N E X C L U S I V E T R A C K I N G S Y S T E MA L L V I A B B A P P

CLIENT WILL HIRE

3 months pilot with 2.7 million simulations

made via app by over 760 thousand clients

R$ 62 Millionin mortgages hired

FIRST BANK IN BRAZILIAN MARKET TO PROVIDE A MOBILE

SOLUTION FOR THESE TRANSACTIONS.

DIGITAL TRANSFORMATION / Ourocap and consortium – wherever the client is, whenever he wants

Over R$ 30 million in Ourocap

hired via BB Appin an unprecedent Black Friday

promotional action

Sales via app are greater thanwebsite BB and ATM combined !

App release in Feb/2017

21 thousand hirings until novemberAccumulated disbursement of 37 million 1.0%

7.5%

15.0%

The share (%) of BB App salesreached 7.5% and for 2018 the goal

is to reach 15% of new hiringsvia mobile.

Sales costs in this channel are 99.8%lower as compared to sales costs in

branches

App release in May/2017

5.9 thousand hirings via appover R$ 220 million in effective sales

!

Ourocap Consortium

NOV/17

DEC/18

DIGITAL TRANSFORMATION / Ourocard app

Ourocard app highlights

› New card request

› Card delivery tracking

› Blocking and Unblocking

› Invoices and purchases inquiry

› Anticipation of installments

› Transaction contestation

› Enabling usage abroad

› Ourocard-e

› NFC payment

› Payment of purchases with points

› Custom cards

› Wearables

BB provides all sollutions in the proximity payments systems environment(NFC) Samsung Pay, Android Pay, App Ourocard, dual chip Cards and wearables(Ourocard bracelet)

400 thousand clients using Ourocard App with NFC

2.1 Million transactions with virtual cards (Ourocard-e)

65 thousand clients registered in the Samsung Pay solution

Over 11 thousand Ourocard bracelets sold

BB Client

DIGITAL TRANSFORMATION / Ourocard cidades

Launch in 23 cities

Oct/2017

REDUCTION IN PAPER CURRENCY RUNNING (REDUCTION IN THE RISK OF LOSS)

INCREASE IN USE OF ALTERNATIVE MEANS OF PAYMENTS (DEBIT, CREDIT AND DIGITAL CHANNELS)

INCENTIVE TO DIGITAL TECHNOLOGIES (USE OF BB APP AND OUROCARD)

STRENGHTHENING OF LOCAL ECONOMY (RESOURCES MAINTAINED IN THE COUNTY)

Customization with Rates Exemptions

Annual Fee Expemption 12 months – Credit

POS Rent (R$ 1 thousand revenue card/month)

4 months exemption

5th to 8th month – 50% Discount

Package Receivables

Government Products Basket

DIGITAL TRANSFORMATION / potential of offering in digital channels

Implementation of segmented Market Actions, from February 2017,

obtained an amount of deals close to R$ 4.8 BILLION, being 17% made in the same channel

CRM /ANALYTICS

DIGITIZEDPRODUCTS

DIGITAL SOLUTIONS OFFERINGS

+ =

THE CONVERTION RATIO OF CUSTOMERS THAT RECEIVED THE OFFER WAS TWICE AS HIGHER

TRANSFORMAÇÃO DIGITAL / my finances = financial management

BB’s Gerenciador Financeiro Monthly budget creation Timeline of expenses by category Income Tax advice

3.5 MILLIONO F T O T A L U S E R S

O V E R

ACCESSDAILY43%

DIGITAL TRANSFORMATION / my finances = financial management

BUDGET

B U D G E T S C R E A T E D S I N C E T H E L A U N C H I N O C T / 1 7

408 THOUSAND R $ 405 M I L L I O N / M O N T H

E C O N O M Y S T I M U L A T E D ( a v e r a g e o f R $ 1 , 0 0 0 )

DIGITAL TRANSFORMATION / my finances = financial management

DIGITAL TRANSFORMATION / update to 2018

integration

quickness

functionality

availability

usability

DIGITAL TRANSFORMATION / openbanking

Systems Integration

For new business creation

generating support for digital ecosystem

throughAPIs

Developer WebsiteLaunched in 06.13.17Winner of e-finance premium – Open Banking category

DIGITAL TRANSFORMATION / openbanking

Brazil’s First OPEN BANKING Partnership.Whe are changing the financial management of small companies

+

Use of APIs for financial data synchronization

Fast and easy configuration

Accounts statements synchronized between the bank and the management system

Coverage of all accounts (checking account, credit cards, investments, etc.)

Real-time update

Api collection Api bill payments

Api working capital

Roadmap

DIGITAL TRANSFORMATION / labbs [ Silicon Valley and Brasilia ]

Banco do Brasil’s labs of experimentationDevelopment of servicesand business innovation

Spread of Innovation Culture

New ways of work and processes INITIATIVES DEVELOPED HERE

SOLUTIONSDEVELOPED

52 35https://www.labbs.com.br/

Labbs BB – Silicon Valley, Oct,26thBB received the Corporate Innovation awardduring the Fall Summit, arranged by Plug and Play,one of the main startup incubators on the planet.

Amongst competitors, there were enterprises like

Credit Suisse, Deutsche Bank e BNP Paribas.

For 2018

Expand LABBS

Partnerships with startups and incubators

DIGITAL TRANSFORMATION / labbs [ Silicon Valley and Brasília ]

DEMOCRATIZESOLUTIONS THAT SATISFIES

CUSTOMER’S NEEDS

BANCO DIGITAL

Launch of Conta Fácil

NOV/16

Digitization of new Products/Services

FEB/17

Account opening on BB’s app

JUL/17 SEP/17

Free WiFi on BB’s branchesExclusive service on CHAT

AUG/17

DIGITAL BANK / ambition

3 million

1.5 million

5 million

Pure digital customers

Dec/2017

2018

2019

79 thousand upgradesfor checking accounts

1.4 millionConta Fácil

NPS (Net Promoter Score) 15% higher¹

Exclusive Sevice package for digital model /developed with customers interaction

Dedicated Chat, with 96.5% success rate and 100% digital experience

Immediate opening of Payment Account

Opening cost 98% lower than face-to-face

procedure

100% digital account upgrade option

1. Compared to face-to-face procedure

DIGITAL BANK / November 2017

SUSTAINABILITY AND PERENITY FOR BUSINESS, BASED ON THE RENEWAL OF CUSTOMER BASE

OPERATIONAL EFFICIENCY

(adequate cost of service)

CUSTOMER SATISFACTION(experience and stage of life)

SUSTAINABLE RESULT

(tangible benefits)

+

=“DIGITAL BANK”

+

DIGITAL BANK

6 EDITIONS with over 10 thousand viewers30 speakers (BB staff) and over 40 invited attractionsWITH CULTURA TV COVERAGE

over 7 million views

HUMAN CAPITAL / INSPIRA BB

HUMAN CAPITAL / INSPIRA BB

video

24.6 million

over 30 Million UniBBwebsite hits

30.3 million

2016

2017

Average 5.7 million hits per year

Best Corporate University of the World in Innovation in 2017

according to Global CCU

HUMAN CAPITAL / Banco do Brasil Corporate University

99.4% of employees trained with focus on the improvement of customer service and

BB’s results7,039,770 hours of training / Average 73 hours of training per employee

163,274 internal certifications obtained by

employees

4,878 scholarships awarded for graduate,

postgraduate and language courses Partnership with Korn Ferry evaluated218 Executives

HUMAN CAPITAL / Banco do Brasil Corporate University