Earnings Release First Quarter 2016

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For additional information, please read carefully the notice at the end of this presentation.

Earnings Release

First Quarter 2016

May 11

th

_{, 2016}

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Earnings Release

First Quarter 2016

English Conference Call

May 11, 2016 (Wednesday)

12:00 pm (New York) / 01:00 pm (Brasília)

Phone: +1 (412) 317-5446

Code: BTG Pactual

Replay: +1 (412) 317-0088

Code: 100845152

Portuguese Conference Call

May 11, 2016 (Wednesday)

10:00 am (New York) / 11:00 am (Brasília)

Phone: +55 (11) 2188-0155

Code: BTG Pactual

Replay: +55 (11) 2188-0400

Code: BTG Pactual

Webcast: The conference calls audio will be live broadcasted, through a webcast system available on our website

www.btgpactual.com/ir

Participants are requested to connect 15 minutes prior to the time set for the conference calls.

Investor Relations

Email:

ri@btgpactual.com

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1Q 2016 presents strong revenues, with an even stronger balance sheet

Performance Summary

1Q 2016

Note:

* Balance sheet items represents end of period data

** Includes BSI from September 1st onwards – a one month impact for the 3rd quarter, and a full impact for the 4th quarter onward (1) Incudes BSI‘s VaR since September 15th_{, 2015}

(2) Adjusted by treasure units

1 For 1

st

_{quarter, total revenues and net income reached R$3.6 billion and R$1.1 billion, respectively}

• Annualized ROAE of 18.8%

• Net income R$1.19 per unit

2 Labor and admin cost reduction successfully implemented

• Cost to income ratio at 50% for the quarter (BTG Pactual stand alone ratio at 47%)

• Compensation ratio at 30% for the quarter (BTG Pactual stand alone ratio at 28%)

• Cost reduction benefits to flow through PnL on upcoming quarters

3 Total assets at R$234.5 billion, 12% lower than 4Q 2015 and 30% lower than 3Q 2015

Basel ratio was 15.5% at quarter end

• Avg VaR in the quarter increased to R$264.5 million, or 1.16% of average shareholders’ equity

• Book value of R$26.07 per unit

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Revenues (R$ million)

Net Income (R$ million)

Shareholders’ Equity (R$ billion)

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854 1,023

1,510

1,229

1,071

0.94

1.13

1.61

1.34 _1.19

1Q

2015

2Q

2015

3Q

2015

4Q

2015

1Q

2016

Net income

Earnings p/Unit (R$)

19.2

19.8

22.1

22.5

23.2

0.59

0.60

0.67

0.77

1.16 1Q

2015

2Q

2015

3Q

2015

4Q

2015

1Q

2016

Shareholders Equity

Avg. daily VaR / avg. equity (%)

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Record revenues with strong contribution from Sales & Trading and Wealth Management

Total Revenues

Business Units Breakdown

1

st

_{Quarter 2016}

Investment Banking Sales and Trading Wealth Management Principal Investments Corporate Lending Asset Management

Pan Interest & Other

(% of total)

Total Revenues = R$3.6 billion

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Business Areas

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Investment Banking

Decrease in revenues mainly due to reduction in concluded transactions in financial advisory.

Although market activity contracted, we continue to have a leadership position in M&A

• Performance from Financial Advisory decreased

due to significant transactions closed in the

previous quarter. Market activity decreased, but

we continued to lead M&A markets across LatAm.

• Revenues in equity and debt underwriting

remained relatively stable at low levels, impacted

by continued weak activity in capital markets in

LatAm, especially in Brazil.

Overview of 1Q 2016

Revenues (R$ million)

Market Positioning Highlights

(1Q 2016)

M&A: #1 in announced transactions and transaction

volumes in Brazil and Latin America

ECM: #1 in number of transactions and #3 in transaction

volumes in Latin America

DCM: #2 in transaction volumes in Brazil

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Corporate Lending

Revenues were positively impacted by the credit recovery in our NPL portfolios and by the

increase in Corporate Lending spreads, partially offset by the significant portfolio reduction

implemented

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Sales & Trading

Strong Sales and Trading performance, with very positive revenue contribution from all our

trading desks

Sales & Trading revenues were

driven by:

• Rates and FX desks having

lower revenue contribution on

the quarter

• Strong performance from our

commodities desks, especially

energy, agriculture and metals

and mining

• Good revenue contribution

from our equities desks

• Very liquid balance sheet

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Revenues decrease mainly reflects the reduction in AuM / AuA. In 1Q 2016 NNM was impacted by the effective

liquidation of redemptions and transfers requested, mostly in December, 2015. AuM has remained stable since

then, and we have already noted positive inflows

Asset Management

AuM and AuA (R$ billion)

Revenues (R$ million)

Net New Money

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Solid performance and stable ROA. NNM was impacted by the effective liquidation of redemptions and

transfers requested mosly in December, 2015. WuM has remained stable since then, and we have

already noted positive inflows

Wealth Management

WuM (R$ billion)

Revenues (R$ million)

0.3

3.2

1.2 (14.9)

(8.3)

Net New Money BSI(1,2)

Note:

* Includes BSI from September 1st onwards – a one month impact for the 3rd quarter, and a full impact for the 4th quarter ** BTG Pactual stand alone NNM

(1) BSI’s total WuM for 4Q 2015 was R$342.6Bn and for 1Q 2016 was R$294.6Bn (2) BSI’s WuM from 4Q 2015 on includes assets under custody

109 113 123 119 ₁₀₁ 264 726 1,127 109 113 387 846 1,228 1Q 2015 2Q 2015 3Q 2015 4Q 2015 1Q 2016 BTG Pactual Stand Alone BSI

92 55 77 84 9 6 119 59 76 76 67 102 48 67 67 57 56.2 61.0 158.2 173.0 147.9 17.8 17.7 73.4 75.4 63.1 11.7 11.7 90.1 87.4 77.3 1.4 1.4 84.8 77.5 69.0 0.1 0.2 10.5 6.5 5.4 5.5 6.7 6.5 87.2 91.9 422.5 426.5 369.1 1Q 2015 2Q 2015 3Q 2015 4Q 2015 1Q 2016

Funds Equities Fixed Income

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Principal Investments

Significant reduction in Merchant Banking exposure, in line with our strategy to reduce balance

sheet risk.

In Global Markets negative

revenues were mainly driven by EM

credit strategies

Negative results in Merchant

Banking, mainly due to the sale of

an investment in the retail sector

Real Estate negative revenues are

mostly related to an asset sale

Revenues (R$ million)

Global Markets Merchant Banking Real Estate Total

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Expenses

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Quarter

1Q 2016 % change to

Full Year

(in R$ mm, unless stated)

1Q 2015

4Q 2015

1Q 2016

1Q 2015

4Q 2015

Bonus

(172) (514) (502)

193%

-2%

Salaries and benefits

(215) (579) (569)

164%

-2%

Administrative and other

(239) (651) (554)

132%

-15%

Goodwill amortization

(46) (57) (55)

18%

-4%

Tax charges, other than income tax

(119) (97) (134)

13%

39%

Total operating expenses

(791) (1,898) (1,814)

129%

-4%

Cost to income ratio

40%

54%

50%

Compensation ratio

20%

31%

30%

Income tax and social contribution

(317) (391) (727)

130%

86%

Effective income tax rate

27.0%

24.1%

40.4%

Expenses and Main Ratios

BSI BTG Pactual Stand Alone

4Q 2015 1Q 2016 4Q 2015 1Q 2016 % Change to 1Q 2015

% Change to 4Q 2015

Bonus (64) (99) (450) (403) 135% -10% Salaries and benefits (292) (286) (287) (283) 31% -1% Administrative and other (325) (247) (326) (307) 29% -6% Goodwill amortization - - (57) (55) 18% -4% Tax charges, other than income tax (10) (12) (87) (122) 3% 40% Total operating expenses (691) (644) (1,206) (1,170) 48% -3%

Cost to income ratio 95% 57% 43% 47%

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Balance Sheet

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Balance Sheet Analysis

Cash & Equivalents

Assets financed

through REPOs

Settlement account

Liabilities

Assets

Trading portfolio of

assets

(In R$ billion)

Note:

* Excludes demand deposits from BTG Pactual stand alone

REPO Financing

Settlement account

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Broader Credit Portfolio

Broader Credit Portfolio by Product (R$ billion)

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Broader Credit Portfolio by Area (R$ billion)

Broader credit portfolio decreased, mainly due to actions taken to reduce LatAm exposure and FX

impacts

Note:

• Includes BSI from September 1st onwards – a one month impact for the 3rd quarter, and a full impact for the 4th quarter (1) Mortgages are related to BSI only

43.5 _41.7 42.8 29.2 _25.8 1.6 _1.6 50.1 44.7 40.4 4.0 _5.6 5.3 6.9 6.3 49.1 48.9 98.2 80.8 72.5 1Q 2015 2Q 2015 3Q 2015 4Q 2015 1Q 2016 Corporate Lending Wealth Management Others

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Unsecured Funding Base

Borrowings and onlendings

Subordinated debt

Securities issued

Time deposits

Interbank deposits

Demand deposits

Perpetual

(In R$ billion)

Note:

* Includes BSI from September 1st onwards – a one month impact for the 3rd quarter, and a full impact for the 4th quarter

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Banco BTG Pactual Basel ratio reached 15.5%. Average VaR increased due to larger FX exposure

and higher observed volatility in commodities prices throughout the quarter

Basel Ratio and VaR

Daily Average VaR

(% of average equity)

Basel Ratio

(%)

Note:

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Simplifying our Business and Strengthening our Balance Sheet

BTG Pactual announced several transactions that, once closed, will result in significant

simplification and additional balance sheet deleverage

Commodities

ring-fencing and potential

delivery to

shareholders

BSI combination with

EFG

Commodities has been operating as a fully owned and independent entity - Engelhart

Commodities Trading Partners - incorporated in Luxembourg

• Company is managed through a board and several sub board committees

• Delivery to shareholders of a significant stake of the company is being analyzed

-

Structure under consideration guarantees to all shareholders the potential to retain their

proportional stake in commodities or increased stake in BTGP, with no book value dilution

-

Deconsolidation of assets and liabilities of ECTP in BTG Pactual’s balance sheet in light of the

business de-leveraging and simplification

Final agreements signed February 22

nd

_{and both institutions working to meet conditions}

precedent for closing

• Process of obtaining regulatory approvals under way, most filings concluded

• EFG’s rights issue announced and expected conclusion on May 13, 2016

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Simplifying our Business and Strengthening our Balance Sheet

Note:

(1) Main assumptions: (i) no profit from the transaction, all adjusted on the equity portion retained; (ii) cash portion of approximately CHF900 million; (iii) database as of March 31, 2016, which means does not include potential future adjustments, including business profitability; and (iv) CHF/R$ exchange rate of 3.7153

(2) Main assumptions: (i) Engelhart CTP shareholder’s equity of R$5.9bn; (ii) reflects distribution of a 65% stake; and (iii) USD/R$ exchange rate of 3.5589 (3) Net of intercompany eliminations

10.6% 2.8% 2.1% 15.5% 11.6% 4.6% 3.4% 19.6%

Tier II

Tier I

Core Equity

March 31, 2016 BSI Engelhart

(in R$ million, unless stated)

BTG Pactual combined

Deconsolidation (3)

Combination

with EFG(1) BSI adjusted

Deconsolidation (3) Partial delivery to shareholders(2) BSI+Engelhart adjusted Assets 235,053 (76,718) - 158,335 (21,393) (3,842) 133,100

Cash and Financial Assets 124,966 (38,158) 3,333 90,141 (12,820) - 77,321 Loans 52,586 (40,059) - 12,527 (32) - 12,495 Others 49,180 (2,131) - 47,048 (14,376) - 32,673 Permanent assets 8,322 3,630 (3,333) 8,619 5,834 (3,842) 10,611

Liabilities 211,878 (76,718) - 135,159 (21,393) - 113,766

Deposits and open market funding 92,738 (62,131) - 30,607 474 - 31,081 Securities issued and sub.liabilities 27,590 (357) - 27,233 - - 27,233 Loans and onlendings 16,180 (1,352) - 14,827 (3,133) - 11,695 Derivative financial instruments 30,716 (1,556) - 29,160 (11,093) - 18,066 Other liabilities 44,321 (11,322) - 32,998 (7,641) - 25,358 Deferred income & minority interest 333 - - 333 - - 333

Shareholders' equity 23,176 - - 23,176 - (3,842) 19,334

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