Corporate Presentation
4th Quarter 2020
For additional information, please read carefully the notice at the end of this presentation
1 Table of Contents
1 2 3 4 BTG Pactual BTG Pactual BTG Pactual 4th Quarter Overview Business Units Financial 2020 Highlights Highlights Section 1 Section 2 Section 3 Section 4
2 BTG Pactual Overview
Section 1
3 BTG Pactual at a glance
Core Business
Investment Corporate Sales & Asset Wealth Principal Interest & Banking Lending Trading Management Management Investments Participations Others
• Financial • Financing • Fixed Income • LatAm FI & Eq. • Investment • Global Markets • Banco Pan • Interest on Advisory • Structured • FX • Alternative Advisory • Merchant • ,too seguros capital (M&A) Credit • Equities Investments • Financial Banking • EFG • ECM • Letters of • Insurance • Fund Services Planning to • Real Estate • DCM Credit • Energy • Global Hedge HNWI • BTG+ • Brokerage Funds • BTG Pactual digital business • Credit • BTG+
Net Revenues and Net Income Evolution Highlights
2,825 2019 2020
2,486 2,482 2,478 Total Assets R$164.4 bn R$244.9 bn (US$40.8 bn) (US$47.1 bn) Shareholders' Equity R$21.4 bn R$26.7 bn (US$5.3 bn) (US$5.1 bn) 1,518 Revenues R$8.3 bn R$9.3 bn 1,258 (US$2.1 bn) (US$1.8 bn) 1,010 987 1,016 Net Income R$3.8 bn R$4.0 bn 789 (US$0.9 bn) (US$0.8 bn) AuM and/or AuA R$273.0 bn R$377.1 bn (US$67.7 bn) (US$72.6 bn) WuM R$168.0 bn R$258.4 bn 4Q 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 (US$41.7 bn) (US$49.7 bn) Total Revenues Net Income Adjusted Note: 1. US$ figures converted by end of period PTAX rate of R$4.0307 and R$5.1967 for 4Q 2019 and 4Q 2020, respectively 4 Summarized shareholder structure
Total Units BTG Pactual G7 Holding S.A. Other Partners • Each BPAC11 Unit is composed of 1 ON and 2 PNA shares of Banco BTG Pactual S.A. • Total units 4Q 2020: 904,235,657 Voting: 57.4% Voting: 42.6% • Total units Feb-21: 932,013,435 Total: 22.8% Total: 77.2%
BTG Pactual Holding S.A.1
100%
BTG Pactual Holding Free Float Financeira Ltda.
73.9% 26.1% of which 7.4% was acquired at market(1)
Banco BTG Pactual S.A.
Note: 1. Includes units acquired by investment vehicles owned by certain partners individually or collectively and vehicles under common control of the Partnership 5 BTG Pactual history
Commencement of Wealth BTG founded by a group of former Start of operations of Follow-on secondary Management activities Pactual partners and former UBS MDs BTG Pactual Seguradora offering of R$2.5 billion and BTG Pactual (55.2mm units) from our Resseguradora in Brazil Holding Co., adhering to Nível II of B3
Creation of Pactual Acquisition of co- Sale of BSI and a 30% Asset Management controlling stake in stake in the combination of EFG Banco Pan for BSI R$450mm Distribution of ECTP to Follow-on of R$2.6 billion BBTG11 shareholders (27.7mn units) to accelerate strategic initiatives and growth in our DRU, keeping strong capital metrics
1983 1989 1990 2000-2001 2002 2008 2009 2010 2011 2012 2013 2014 2016 2017 2019 2020 2021
US$1.8bn capital IPO: primary Follow-on of R$2.6 billion capital increase (35.6mm units) to increase from of R$3.2 billion Announced the accelerate strategic acquisition of BSI, a Commencement of Banking UBS acquires Banco international BBTG11 Units migration into initiatives and growth in Activities and opening of an Pactual creating investors private banking business BTG Pactual’s Digital based in Switzerland, for BPAC11 and BBTG12 units office in São Paulo UBS Pactual Retail Unit keeping CHF1.2 Bn strong capital metrics
Acquisition of Celfin Capital in Chile
Founded as BTG acquires UBS Pactual, brokerage house in Rio de Janeiro Commencement of regional expansion in Brazil: opening of establishing BTG Pactual Belo Horizonte (MG) and Recife (PE) offices Acquisition of Bolsa Y Renta in Colombia
6 Organizational chart and main executives Board members elected
Chairman of the Board Audit Committee Nelson Jobim
Compliance(1) BTG Pactual External Directors Anibal Joaquim Nelson Jobim Roberto Sallouti Claudio Galeazzi Claudio Galeazzi Claudio Galeazzi Nelson Jobim Mark Clifford Maletz Pedro Longuini Roberto Sallouti Guillermo Ortiz Sofia Esteves Sidnei Marques Bruno Duque Eduardo Loyo Mariana Cardoso Huw Jenkins
Note: 1. Compliance Committee responds directly to the board of directors 7 Organizational chart and main executives Main executives
CEO Roberto Sallouti
Corporate Lending Sales & Trading Wealth Investment Banking Asset Management Renato Santos Renato Santos Management Guilherme Paes Eduardo Guardia Rogerio Stallone Rodrigo Goes Rogerio Pessoa
8 Dominant presence in Latin America
Investment Corporate Sales & Asset Wealth Retail Banking Lending Trading Management Management
Brazil P P P P P P
United Kingdom London Chile P P P P P Portugal USA
New York LatAm Core Mexico Miami Mexico City Colombia P P P P P
Mexico P P P P Colombia Bogotá Medellin
Argentina P P Peru Brazil Lima São Paulo Rio de Janeiro Recife Porto Alegre Peru P P P P Belo Horizonte Chile Santiago Argentina Buenos Aires USA P P P P
UK P P P
Portugal P
9 Our client franchises are experiencing significant growth
Investment Banking AuM WuM Revenues (R$ bn) (R$ bn) (R$ mm) AuM growing 38% y-o-y, with record net Record revenues and all-time high NNM in Outstanding performance and record revenues, new money for a full year of R$63.7 bn a year, as we grow our client numbers and for a single quarter and a full year increase our market share in upper retail
377 258 1,327
273 949 168
208
119 145 87 464 367
2017 2018 2019 2020 2017 2018 2019 2020 2017 2018 2019 2020
10 Unique integrated business model
Digital Investment Retail Banking ▪ Tech-enabled Banking expansion of client segments and business Large lines Institutional Corporate Corporate Wealth and SME Management ▪ No IT and branch Retail SME Lending legacy HNWI ▪ Leading wholesale Asset Sales & client franchises Management Trading
Combination of profitability of incumbents with growth of challenger banks 11 BTG Pactual Business Units
Section 2
12 Investment M&A Ranking(1)| 2010 – 2020 ECM Ranking(1)| 2010 – 2020 DCM Ranking(1,2)| 2017-2020
Banking Volume Deal # of Deal # of Volume # Institution (US$ # Institution Deals # Institution Volume Deals (US$ bn) (BRL bn) bn) 1 IBBA 194 24.6 1 IBBA 78.0 Leading Investment 1 IBBA 502 212.5 BTG Banking Franchise BTG 2 194 19.7 2 Bradesco 48.0 2 477 206.3 Pactual Pactual in Brazil Bradesco 3 138 17.3 3 Santander 35.3 3 BofA 140 177.3 BBI Credit BTG JP 4 112 15.2 4 29.9 BTG Pactual is the most active IBD 4 120 162.1 Suisse Pactual Morgan franchise in Brazil since 2010, Credit 5 BofAML 110 19.9 5 BB 24.9 having advised the most relevant 5 193 155.8 Suisse transactions during this period
2021 2020 Acted as advisor to Advisor to ISA CTEEP US$60mm US$2,232mm R$ 1.6bn R$ 1.5bn Hapvida in the in the acquisition of proposd merger with Piratininga IPO IPO GNDI Bandeirantes (PTBE) Debentures Debentures
R$ 55 bn R$ 1.9 bn Dezembro, 2020 Dezembro, 2020 December, 2020 December, 2020
2020 2020 BTG Pactual acted as BTG Pactual acted as US$209mm R$ 2.2bn financial advisor to financial advisor US$129mm R$ 3.5bn Hapvida in its Escola da acquisition of Promed Interligência in its sale IPO IPO Debentures CRA to Arco R$ 1.5 bn R$ 480 mm Nov embro, 2020 Nov embro, 2020 August, 2020 July , 2020
Notes: 2020 Acted as advisor to 2020 1. Dealogic, as of December 2020 (ECM and Faculdade de BTG Pactual acted as US$176mm US$110mm R$ 800mm R$ 1.5bn Ciências Méidas da financial advisor to M&A Rankings) and ANBIMA Long-Term Paraíba in its sale to Stone in its acquisition of Linx IPO IPO Debentures Debentures Distribution Ranking (DCM Rankings) Afya 2. Ranking not available prior to 2013 R$ 380 mm R$ 6.3 bn Nov embro, 2020 Nov embro, 2020 May , 2020 April, 2020 13 Investment Revenues (R$ million) Market Positioning Highlights Banking (FY 2020)
Outstanding performance and record revenues, for
a single quarter and 1,327 a full year M&A: #1 in FY2020 in volume of transaction Overview of 4Q 2020 949 in Brazil and LatAm
• DCM had its best quarter ever, with strong activities especially in the local market
464 • Significant performance in ECM, with record revenues in 367 ECM: #1 in FY2020 in a year fully marketed offerings in Brazil and LatAm • Financial Advisory revenues have picked up, M&A pipeline resumed stronger activity and 2017 2018 2019 2020 we recorded higher volume of concluded transactions
14 Corporate Revenues (R$ million) 1,591 Lending
790 849 814 Financing and loan guarantees to corporations in Latin America 2017 2018 2019 2020 Main Highlights • Integrated origination platform • Anticipation of demand and Corporate Lending Portfolio by Industry Corporate Lending Portfolio needs of our clients (%) (1,2) (R$ bn) • Greater flexibility and agility in order to structure and approve loan transactions 4Q 2020 • Partners involved in credit and risk analysis 14% • Cross-selling with IBD, Wealth 25% 73.7 Management, Merchant Banking and 2%1% FICC distribution desk 3% 4% 43.8
Main booking areas: 5% 29.7 21.8 • High Grade Credit Desk: tailored 11% credit solutions for large corporations 5%
• Special Situations: credit arbitrages on 6% loans and acquisition of non- 10% 6% 2017 2018 2019 2020 performing loans (NPL) portfolios 7% • BTG+ business (SME): digitally- originated supplier financing portfolio Notes: 1. Does not include Banco Pan Loan Portfolio and includes off balance sheet items (loans, debentures, CRIs, FIDCs, FIPs, TDs, corporate bonds, letter of credit, and credit card receivables commitments and others) 2. As of December 30, 2020 15 Sales & Highlights and Awards Trading Brasil Equity Sales LatAm Equity Sales (2020, 2019, 2017, 2014, 2013) (2019, 2018, 2017, 2015) Brasil Equity Research nd Brasil Equity Research st (2020, 2019, 2018, 2017, 2015, (2019, 2016) Integrated and 2014, 2013) 2 1 Brasil Equity Sales diversified platform of LatAm Equity Sales (2016, 2015) (2014, 2013) customer facilitation businesses in Latin America Research
BTG Pactual Wins Again In Brazil 2020 BTG Pactual was awarded, for the third straight year, the best Research team in Brazil, by the weighted commissions ranking of Institutional Investor. Our analysts ranked #1 in 9 of 17 categories, in their respective sectors/regions • Equity research and sales teams named among the best teams in LatAm, covering 223 companies in 16 industries • Fixed Income and Credit Research team named among the best teams in LatAm, covering over 30 companies
Latin America Dedicated Bank
• Fixed Income • Energy Insurance and • Equities • Reinsurance • FX
Note: * According to Institutional Investor rankings 16 Sales & UK Trading USA Mexico
Sales Team has always Colombia Peru Brazil been in the top positions on Institutional Investor’s Chile Argentina Brasil ranking, and we rated as #1 again in 2020 Local presence started in 2012 2013 2014 2015 2016 2017 2018 2019 2020 1º 1º 2º 6º 2º 1º 1º 1º
Overview of 4Q 2020
• Solid performance while decreasing market risk component of RWA Revenues (R$ million)
• Growing contribution from client 3,117 activities 2,801 2,389
• Lower VaR levels, less intensive use 1,539 of balance sheet
• Growing revenue diversification inside Sales & Trading 2017 2018 2019 2020 17 Asset Management
Leading Latin American asset manager and world class global markets manager with R$377.1 Brasil FI & LatAm FI & Alternative billion in assets, with a EQ Funds EQ Funds Investments complete range of both traditional and alternative investment products
Global Hedge Fund Funds Services
18 Asset Revenues (R$ million) AuM and AuA Management (R$ billion)
Higher revenues and 15.6 43.7 36.5 63.7 record net new money 377 1,013
Overview of 4Q 2020 868
• Revenues up 37.4% x 3Q 273 2020 717
• All-time high NNM in a quarter 208 and in a year (R$26 bn and 486 R$63.7 bn, respectively) 145
• AuM/AuA increased 14.5% q- o-q and 38.1% y-o-y
• Launch of several alternative investment products under our Illiquid Asset strategy 2017 2018 2019 2020 2017 2018 2019 2020
# Net New Money • Annualized RoA in the quarter remains stable y-o-y, despite lower interest rates scenario 19 Wealth Recent Highlights & Awards
Management • Best Private Bank in Brazil Service Overall – 2020, 2019, 2018 Euromoney • Best Private Banking Colombia - 2020 The Banker • Best Private Banking LatAm – 2020 The Banker All-time high revenues • Best Family Office Services in Brazil – 2019, 2018 Euromoney • Best Technology – 2019, 2018 Euromoney and net new money • Best Private Banking LatAm, Brazil and Chile - 2018 Global Finance • Best Private Banking Brazil – 2018, 2017, 2016 The Banker
Main Highlights Revenues (R$ million) WuM (R$ billion) • Proactive and systematic approach to portfolio monitoring 4.0 23.8 24.5 63.2 • Strong cross-selling with all 850 business units 258 • LatAm platform • One of the largest private wealth 610 managers in Latin America 168 472 • Broad footprint in Brazil, with offices in São Paulo, Rio de 369 119 Janeiro, Recife, Belo Horizonte 87 and Porto Alegre • Strong presence in Latin America and also a broker dealer presence in New York 2017 2018 2019 2020 2017 2018 2019 2020 and offices in Miami Net New Money # 20 Wealth Management Market segmentation for best service
1 2 3
✓ Best in class WM services ✓ Focus on large IFAs, multi-family ✓ Proprietary IFA offices and consultants ✓ International awards recognition ✓ # of advisors more than doubled ✓ Accelerates growth, regional since acquisition of Ourinvest expansion and capillarity ✓ 6 new offices in 2020 ✓ 100% commission based ✓ Commission based employees ✓ Cross-selling opportunities with IBD
4 5 6 Partnerships
✓ Online client acquisition with low CAC ✓ Accelerate our retail client base ✓ Proven track record to attract and retain clients ✓ Only platform with 5 RA1000 stamps ✓ Fully owned subsidiary with from Reclame Aqui – Grade LTM: 9.0 independent brand ✓ Cost dilution and gains of scale ✓ “BTG Perto de Você” ✓ Focus on attraction of small IFAs ✓ Broker as a Service to be provided by BTG Pactual ✓ Employees (salary + bonus) ✓ Promote consolidation of niched New broker dealers independent ✓ New revenue stream with RLP WM platform 21 BTG Pactual Financial highlights
Section 3
22 Track record of strong, controlled and profitable growth, built on top of a fortress balance sheet
Shareholders' equity (R$ mm) Net income adjusted (R$ mm) Net Income, Shareholder’s Equity, ROAE (%) ROAE & Basel Ratio 26,681
21,387 • Strong and consistent RoE through 18,524 18,845 out time and across economic cycles 19.1% 16.3% 16.9% • Solid profitability 14.7%
• Strong capitalization 2,949 2,741 3,833 4,050 2017 2018 2019 2020
Basel ratio (%) VaR as a % of shr. equity (%) (1) VaR and VaR/Average 18.0% 16.6% 16.7% Shareholder’s Equity 14.9%
• Excellence in risk management, proven in extremely adverse market conditions 0.65% 0.67% 0.44% 0.46%
2017 2018 2019 2020
Notes: 1. 1 day Value at Risk (95%) Includes BSI’s RWA and VaR since September 15th 2015 23 Industry-leading operating and profitability metrics
ROAE (%) ROA (%)
19.1% 2.8% 16.9% 2.5% 16.3% 2.3% 14.7% 2.2%
2017 2018 2019 2020 2017 2018 2019 2020
Cost to Income Ratio (%)1 Compensation Ratio (%)2
48.0% 47.8% 40.3% 40.9% 24.3% 24.1% 23.1% 21.6%
2017 2018 2019 2020 2017 2018 2019 2020
Notes: 1. Total operating expenses/ net revenues 2. Salaries and benefits + bonus expenses/ net revenues 24 Rating summary
• Outlook Stable • Rating Outlook Negative • Outlook Stable
• Long Term Deposit Ba2/NP • Foreign and local currency Long • Issuer Credit Rating: BB- − Long Term IDR BB- • Issuer Credit Rating brAA+/brA-1
Banco BTG Pactual S.A. − Short Term IDR B (local): • NSR Bank Deposits - Aa2.br/BR-1 Dom Currancy • Local
− Long Term IDR AA(bra)
− Short Term IDR F1+(bra)
25 4th Quarter 2020 highlights
Section 4
26 Strong organic growth in all client franchises
AuM WuM (R$) (R$)
+38% y-o-y +54% y-o-y 377bn in 4Q 20 258bn in 4Q 20
Net New Money IBD Revenues (R$) (R$)
+46bn 4Q 20 +40% y-o-y +127bn FY 20 1.3bn FY 20
27 Growth in Credit and SME Portfolio, with the strongest balance sheet in the industry
Credit and SME Portfolio (R$)
+68% y-o-y 74bn Total Portfolio SME: 9.5bn
Unsecured Funding ROAE Adj (R$) (R$)
+100% y-o-y 19% 4Q 20 107bn in 4Q 20 17% FY 20
28 Achievements
Significant progress in our ESG agenda, incorporating ESG values to our corporate culture, complemented by donations to combat Covid-19, specially on support to social initiatives and to the healthcare system
Successful issuance of our first senior unsecured green bond on January 6,2021, in the total amount of US$500 mn at a fixed coupon rate of 2.75% p/a, printing the lowest coupon ever for a Brazilian financial company in an international placement
Successful completion of our primary equity follow on January 13, 2021, when we issued 27,777,778 units priced at R$92.52, raising R$2,6 bn in additional capital to continue to accelerate growth across our client franchises, and taking our pro-forma capital ratio post follow-on to 18.5%
Successful launch of our transactional bank platform, BTG+ on September 2020 for BTG Pactual clients, and for the general public on January 2021, with a full product array and a best-in-class UX, bringing innovative and contextual consumer banking solutions to mass affluent customers, using cutting-edge technology and extensive data management (including open banking readiness)
29 Performance Summary 4Q 2020 1 2 3 We delivered a 19.1% adjusted ROAE and Total revenues and adjusted net Efficient cost-to-income ratio, At the end of the quarter, total assets income of R$2,825 mn and4 below our historical average, were R$244.9 bn, BIS ratio was 16.7% our cost-to-income R$1,258 mn. Operating notwithstanding significant and shareholders’ equity was R$26.7 bn ratio was 36.5% revenues(1) reached R$ 2,460 mn investments in the Digital Retail Unit • Average VaR in the quarter was R$87.6 mn • Annualized adjusted ROAE(2): 19.1% or 0.33% of average shareholders’ equity • Net income per unit(2): R$1.39 • Cost-to-income ratio: 36.5% • Reflecting the JCP provision of R$563 million • Accounting net income: R$1,229 mn • Compensation ratio: 21.6%
Shareholders’ Equity Total Revenues and Net Income and ROAE Operating Revenues (R$ million) (R$ billion) (R$ million)
19.1% 15.7% 19.1% 1,258 2,825 2,486 2,478 1,010 1,016 26.0 26.7 2,460 2,209 21.4 1.39 1,660 1.16 1.12 0.54 0.61 48.1% 0.33
4Q 2019 3Q 2020 4Q 2020 4Q 2019 3Q 2020 4Q 2020 4Q 2019 3Q 2020 4Q 2020
Revenues Operating Revenues Adjusted Net Income Earnings p/Unit (R$) Shareholders Equity
Notes: Avg. daily VaR / avg. S.E. (%) 1. Operating revenues: total revenues excluding interest and others, participations and principal investments % ROAE 30 2. Balance sheet items present data as of the end of the period. Annualized ROAE and net income per unit uses adjusted net income as the basis for the calculations Performance Summary Full Year 2020 3 1 2 3 2020 was marked by a strong performance, Total revenues and adjusted net Cost-to-income ratio was in Shareholders’ Equity increased income were R$9,304 million and line with historical average, 24.8% y-o-y and ended the year especially of our client R$4,050 million, respectively. notwithstanding significant at R$26.7 bn franchises, despite the Operating revenues(1) reached investments in the DRU R$7.898mn challenging market • Reflecting the JCP provision of • YTD annualized ROAE(2) was 16.9% • Cost to income ratio was 40.9% R$1,096 mn conditions • Accounting net income was R$3,976 • Compensation ratio was 24.1% • Follow-on offering of R$2.65 bn in million June 2020 Shareholders’ Equity Total Revenues and Net Income and ROAE Operating Revenues (R$ million) (R$ billion) (R$ million)
19.1% 16.9% 9,304 3,833 4,050 8,333 26.7 21.4 7,898
6,041 4.48 4.40 0.67 30.7% 0.46
2019 2020 12M 2019 12M 2020 12M 2019 12M 2020
Revenues Operating Revenues Shareholders Equity Adjusted Net Income Earnings p/Unit (R$) Notes: Avg. daily VaR / avg. S.E. (%) 1. Operating revenues: total revenues excluding interest and others, participations and principal investments % ROAE 31 2. Balance sheet items present data as of the end of the period. Annualized ROAE and net income per unit uses adjusted net income as the basis for the calculations Revenue breakdown by business unit Operating Revenues were 85% of total revenues in 2020, vs 72% in 2019
Total Revenues = R$2.8 billion 4Q 2020 Total Revenues = R$9.3 billion Full Year
752 3,117
596 515
350 1,591 1,327 247 221 1,013 850 730 101 362 313 44
(% of total) (% of total)
34% 21% 27% 17% 18% 12% 14% 11% 9% 8% 9% 8% 4% 2% 4% 3%
Investment Corporate Sales & Asset Wealth Principal Participations Interest Investment Corporate Sales & Asset Wealth Principal Participations Interest Banking Lending Trading Management Management Investments & Others Banking Lending Trading Management Management Investments & Others
32 ESG Accomplishments 4Q 2020 update
First Green Bond Global Bond issued under our Green, (Private Placement) Social and Sustainable Framework
First green issuance concluded Issued a US$500 mn bond under out BTG Pactual was selected to join by BTG Pactual, raising US$50 recent Green, Social, and Sustainable the B3 sustainability index ISE, mn in a private placement with an Financing Framework. along with 38 other companies individual investor Eligible portfolio of R$6.5 bn with strong ESG practices
Climate, Forest and Inside Program Carbon Disclosure Program Agriculture Coalition
Kickstarted mentorship program for Joined the Climate, Forest and Received B scoring, meaning that college students interested in financial Agriculture Coalition, aimed to open BTG Pactual is taking coordinated markets, program received the Municipal dialogue with peers in order to promote actions to address climate risks Seal of Human Rights and Diversity the development of the green economy and opportunities
33 Expenses and Main Ratios
Cost-to-income ratio at 36.5% 2020 % 4Q 2020 % change Quarter Year to Date change and compensation ratio at to 21.6%, both below our to historical average, capturing (in R$ mm, unless stated) 4Q 2019 3Q 2020 4Q 2020 4Q 2019 3Q 2020 2019 2020 2019 benefits from operational Bonus (356) (444) (363) 2% -18% (1,128) (1,333) 18% leverage as we grow Salaries and benefits (175) (230) (249) 42% 8% (673) (909) 35% Administrative and other (301) (248) (309) 3% 25% (999) (1,056) 6% Highlights of 4Q 2020 Goodwill amortization (11) (11) (27) 140% 152% (125) (64) -49% • S&B increased 8.1% q-o-q, Tax charges, other than income tax (138) (152) (84) -39% -45% (436) (440) 1% mostly due to new hires Total operating expenses (982) (1,084) (1,031) 5% -5% (3,362) (3,802) 13%
Normalized Cost to income ratio 39% 44% 37% 40% 41% • A&O increased 24.6% q-o-q, Compensation ratio 21% 27% 22% 22% 24% mostly due to outsourced technology services Income tax and social contribution (325) (392) (565) (1,143) (1,525) 33% Effective income tax rate 21.6% 28.1% 31.5% 23.0% 27.7% • Year to date Income tax in line with historical average, and higher in the 4Q 2020 due to the marginal rate impact over the higher per-tax profits
34 Balance Sheet Analysis
Assets Liabilities 253.2 253.2 244.9 244.9 Settlement account 4.7 Highlights of 4Q 2020 3.4 Cash & Equivalents 35.5 41.3 47.5 REPO Financing • Record high liquidity, with Settlement Account 7.7 54.3 R$41.3 bn cash and cash 4.7 Assets financed equivalents, growth of 138% (or 48.0 R$24bn) compared to 2019, and through REPOs 54.6 62.5 LCR at 273% 39.5 Secured funding
• Total assets (9.2x equity) decreased 3% Trading portfolio 77.1 of assets 54.3
• On balance sheet credit 106.8 100.0 increased R$ 4.4 bn, while Unsecured funding unsecured funding increased Coverage 54.0 193%(1) R$6.8 bn (coverage ratio at Credit 49.6 193%) 13.9 12.1 Other assets 13.6 13.8 Other liabilities
Illiquid assets 21.6 22.1 27.1 26.4 Equity & Perpetual
3Q 2020 4Q 2020 4Q 2020 3Q 2020
(In R$bn)
Note: 1. Excludes demand deposits 35 Unsecured Funding Base
Unsecured funding base growth of R$54 bn, a 100% expansion in the year (In R$bn)
Highlights of 4Q 2020 107.2 • Funding base growing 6.8% 100.4 0.4 Perpetual q-o-q, mostly on local currency Borrowings and On-lendings 0.4 5.1 deposits (BRL and CLP) 5.2 7.1 Subordinated debt
• Demand deposits from retail 80.0 8.1 clients continue to grow, as 0.4 4.4 38.0 Securities issued well as the share of retail on 37.2 our total funding base (~11%) 61.1 8.0 53.6 0.4 4.1 0.4 • Liquidity coverage at 273%, 4.2 8.3 32.0 above our industry peers 7.1
• Average tenor and average 24.4 22.3 52.4 Time deposits cost of funding (relative to 46.7 CDI) reduced slightly q-o-q 33.3 and y-o-y, already excluding 22.5 impacts from LTRO funding in 18.8 0.3 0.4 0.8 1.6 Interbank deposits Brasil and Chile 0.3 Demand deposits 0.6 1.1 1.4 2.0 2.7 4Q 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 Notes: 1. Does not include the green bond issued in January 36 BIS Ratio and VaR
BIS Ratio Average daily trading VaR BIS capital ratio (%) (% of average shareholders equity) decreased to 16.7% at 19.4% 19.6% the end of 4Q 2020, 17.5% with CET1 3.6% 4.1% 16.7% at 13.8% (pro-forma 14.9% 0.3% 3.1% ratio of 18.5% post 0.3% 2.6% follow on of Jan/21) 0.2% 0.2% 2.8% 0.61% Total average daily 0.0% 0.54% VaR decreased 44.3% 0.50% when compared to the previous quarter 15.0% 15.7% 0.37% 14.1% 13.8% 0.33% 12.2%
4Q 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 4Q 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020
Common Equity Tier I Additional Tier I Tier II
37 Disclaimer
This presentation has been prepared by Banco BTG Pactual S.A. (“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.
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