Economic and Financial Release

(1)

1

Prepared by: AF/DEPOL

Edited in March, 2016

Selected Financial Ratios

The BNDES System reached net income of R$ 6.199 billion in 2015, a decrease of 27.9% compared to

2014. The amount of impairment recorded in the year, totaling R$ 9.736 billion (R$ 6.070 billion net of

taxes) was the main cause for this decrease. Of this total, some R$ 7.334 billion (R$ 4.485 billion net of

taxes) refers to the impairment caused by the investment into Petrobras. Concerning the financial position,

4Q15 highlights include receiving of R$ 22.812 billion in credits related to programs stimulated by the

federal governement and the prepayment of R$ 15.766 billion in debt contracts with the National Treasury.

In spite of the slump in Brazil’s economic scenario, on 12/31/15, the default rate reached 0.06%, below

the default rate in the National Financial System (3.4%). The Basel Index was at 14.7% on December 31,

2015, above the minimum index of 11.0% required by the Central Bank of Brazil.

BNDES Evolution

R$ billion

Economic and Financial Release

Highlights 4Q15

BALANCE SHEET RATIOS DEZ/15 SET/15 DEZ/14

Total Assets 930,576 938,575 877,219

Shareholders´Equity 30,993 33,794 30,737

Shareholders´Equity/Total Assets 3.33% 3.60% 3.50%

Loans, net of allowance/Total Assets 74.73% 73.24% 74.24%

Nonperforming loans/Total Loans 1/ 0.06% 0.02% 0.01%

Allowance for losses/Total Loans 1/ 0.67% 0.54% 0.49%

Allowance for losses/Nonperforming Loans 1/ 10.88 23.02 36.11 1/ _{Includes loans and interbank onlendings}

R$ million, except percentages

INCOME RATIOS 2015 2014

Net Income 6,199 8,594 ROA (Net Income/Total Assetsaverage 1 ) 0.67% 1.03%

ROE (Net Income/Shareholders´s Equity_average1 ) 15.37% 21.18%

1/ _{Excludes fair value adjustments in non-associated companies.}

624.8 715.5 782.0 877.2 930.6 61.0 _50.0 _45.6 30.7 31.0 9.0 8.1 8.2 8.6 6.2 0.0 2.0 4.0 6.0 8.0 10.0 12.0 0 100 200 300 400 500 600 700 800 900 1,000 2011 2012 2013 2014 2015

Assets Shareholders' equity Net income

Rating Agency Foreign

Currency Outlook

Moody´s Ba2 Negative

S&P BB Negative

Global Scale Issuer Rating - Long Term

Not considering the net effect of the impairment on Petrobras in 2015, the BNDES’ net income

would be R$ 10.684 billion, representing a ROA of 1.15% and a ROE of 23.56%.

(2)

2 1/_{Increase influenced by growth in the loan portfolio and management of treasury resources. See “Operating Segments”.} 2 _{The year of 2014 was marked by credit recoveries of R$ 672 million (R$ 341 million in 2014) and 2015 recorded an}

increase in the allowance due to downgrades in the rating of some clients.

3/_{Increase in impairment expenses in R$ 8.272 billion and decrease in income from dividends and interest on capital in R$}

2.660 billion, influenced by Petrobras.

4/_{Increase in personnel expenses (R$ 229 million) due to the 2015 Collective Labor Agreement and taxes expenses (R$ 199}

million), which was in keeping with the 49.9% increase in gross income from financial intermediation.

Income Statement

Regulatory Capital

R$ billion 99.1 89.6 108.7 97.9 95.0 52.9 64.0 _63.8 67.7 70.9 20.6% 15.4% 18.7% 15.9% _14.7% 10,4% 10.6% 9.8% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 0.0 20.0 40.0 60.0 80.0 100.0 120.0 2011 2012 2013 2014 2015

Regulatory Capital Minimum Capital Required (RWA x 0.11) BIS Ratio Common Equity Capital Ratio R$ million

DEC/15 SEPT/15 DEC/14

Tier I (*) 63,331 65,849 65,234

Tier II 31,666 32,924 32,617

Regulatory Capital 94,997 98,773 97,851

Amount of Risk-weighted Assets (RWA) 644,332 671,545 615,706

= Credit Risk (RWACPAD) 601,621 608,729 575,861

(+) Market Risk (RWAMPAD) 16,981 37,086 28,055

(+) Operating Risk (RWAOPAD) 25,730 25,730 11,790

Bank Risks (Rban) 3,568 3,147 2,383

(*) Tier I fully composed by Common Equity.

R$ million

2015

2014

Income from Loans

_53,876

_40,617

-Income from Securities

13,726

_-

8,594

-(-) Interest Expenses

(47,115)

_-

(35,800)

-(+/-) Exchange rate variation, net

(328)

_-

39 -(=) Gross Income from Financial Intermediation

1

20,159

_-

13,450

-(+/-) Allowance for Losses on Loans

2

(1,468)

_-

(65)

-= Income from Financial Intermediation

18,691

_-

13,385

-Income from Equity Investments

3

(5,407)

_-

2,865

-(-) Administrative, Personnel and Tax Expenses

4

(2,113)

_-

(1,877)

-(+/-) Other Expenses, net

(1,403)

_-

(1,146)

-= Income before Taxes

9,768

_-

13,227

-(-) Income Taxes

(3,271)

_-

(4,392)

-(-) Profit sharing

(298)

_-

(241)

(3)

3

Income from Equity Investments

1/_{Not distributed by Petrobras in 2015 (R$ 1.842 billion in 2014).} 2/_{2015: a R$ 1.049 billion income from JBS (R$ 350 million in 2014).}

3/_{In 2015, the depreciation of Petrobras’ shares resulted in an impairment expense of R$ 7.334 billion, equivalent to 75.3% of} the total impairment expense.

3/_{A R$ 1.155 billion gain resulted from the change in the accounting method (to fair value from equity method) of the investments} since they are no longer treated as investments in associated companies.

Result with Taxes

Operating Segments

The relevant contribution of the Treasury segment in 2015, above the historic standard, is due to the extraordinary and non-permanent increase in the average balance of cash and cash equivalents as a result of the following: (i) disbursements below expectations; and (ii) receiving R$ 30.6 billion in equalization credits.

R$ million 3,272 765 1,721 (2,814) (181) 102 -2,865 612 1,310 1,629 (9,736) (295) (123) 1,196 (5,407) Dividends and Interest on capital 1

Equity 2 Divestments Impairment 3

Derivatives Equity funds Others 4

Total

2014 2015

R$ million 2014 BNDES FINAME BNDESPAR BNDES

System

BNDES System Income Tax (2,895) (577) (412) (3,884) (3,508) Social Contribution Tax (1,961) (391) (153) (2,505) (1,961) Tax Credits 1,636 7 1,475 3,118 1,077 Subtotal (3,220) (961) 910 (3,271) (4,392) PIS (119) (18) (20) (157) (136) COFINS (730) (111) (111) (952) (771) Others (44) (1) (10) (55) (61) Total (4,113) (1,091) 769 (4,435) (5,360) 2015 12,934 13,728 1,645 (6,911) 2,664 6,940 (8,649) (7,560) 8,594 6,199 Fixed Income Variable Income Treasury Others Net Income Income Allocated 17,243 Income Allocated 13,758 99% 51% -50% 10% 75% 15%

2015

2014

641.1 84.2 71.3 723.6 62.2 111.0 Average Assets R$ billion 2.01 1.90 3.79 1.89 (11.09) 6.22 Average Return - % Income R$ million

(4)

4

Loan Portfolio Quality (%)

One highlight is the excellent quality of the BNDES' loan portfolio which is better than the average presented by the National Financial System.

For the twelve-month period ending December 31, 2015, the renegotiated credits represented 2.14% of the total loan portfolio.

Financial Position

1/_{Fluctuations are part of the BNDES’ treasury management strategy.}

2/_{The R$ 7.9 billion increase in the 4Q15 reflects the R$ 11.7 billion increase in the local currency portfolio.}

3/_{In the 4Q15, payment of R$ 22.8 billion related to equalization of agricultural programs and the Investment}

Maintenance Program (PSI).

4/_{Decrease in 4Q15 due to the payment of supplementary dividends for 2014 (R$ 1.443 bllion) and intermediate}

dividends and interest on shareholders’ equity for 2015 (R$ 3.343 billion).

DEZ/15

%

SET/15

%

DEZ/14

%

Cash and equivalents

1

35,403

3.8 29,783

3.2 7,879

0.9 Securities

105,052

11.3 108,648

11.6 105,033

12.0 Loan Portfolio

2

695,378

74.7 687,447

73.2 651,207

74.2 Equity Investments

52,388

5.6 54,290

5.8 63,360

7.2 Credit from the National Treasury

3

7,834

0.8 27,197

2.9 26,163

3.0 Others

34,521

3.8 31,210

3.3 23,577

2.7 Total Assets

930,576

100.0 938,575

100.0 877,219

100.0 National Treasury

523,737

56.3 534,518

56.9 506,215

57.7 FAT

220,665

23.7 214,219

22.8 195,460

22.3 PIS/PASEP

33,732

3.6 33,668

3.6 33,617

3.8 International Funding

56,542

6.0 60,103

6.3 41,280

4.7 FGTS/FI-FGTS

8,060

0.9 8,239

0.9 8,807

1.0 Debentures

3,554

0.4 3,421

0.4 4,073

0.5 Others

53,293

5.7 50,613

5.5 57,030

6.6 Shareholders' Equity

4

30,993

3.4 33,794

3.6 30,737

3.4 Total Liabilities

930,576

100.0 938,575

100.0 877,219

100.0

As of December 31, 2015 BNDES System NFS 1 Private Fin. Institutions 1 Public Fin. Institutions 1 AA - C 99.4% 92.4% 90.8% 93.7% D - G 0.5% 4.9% 5.7% 4.2% H 0.1% 2.7% 3.5% 2.1% Total 100.0% 100.0% 100.0% 100.0%

Nonperforming loans/Total Loans 0.06% 3.4% 2.7% 4.2%

Allowance for losses/Total Loans 0.67% 5.7% 4.2% 7.6%

Allowance for losses/Nonperforming loans 10.88 1.71 1.56 1.83

(5)

5

Equity Investments

Loan Portfolio per Sector (%)

The decrease in the equity investments portfolio in the 4Q15 is associated with the depreciated value of the non-associated companies portfolio in the amount of R$ 1.6 billion.

As of December 31, 2015

Eletricity and gas 18% Land transportation 13% Agribusiness 8% Transportation equipment 7% Coke/fuel /oil 6% Construction 6% Public administration 6% Trading 5% Auxiliary transportation service 5% Food products 3% Extractive industry 2% Pulp and paper

2% Vehicle 2% Chemical 2% Telecommunications 2% Others_13% R$ millions (A) % (B) % (C) % Non-associates 36,228 69.2 36,243 66.8 45,031 71.1 Petrobras 16,327 31.2 17,034 31.4 22,483 35.5 Vale S/A 3,362 6.4 4,312 7.9 5,838 9.2 Eletrobras 1,624 3.1 1,467 2.7 1,581 2.5

AES Tietê Energia 1,543 2.9 - - -

-Suzano 1,410 2.7 1,443 2.7 1,093 1.7 Others 11,962 22.8 11,987 22.1 14,036 22.2 Associates 14,215 27.1 16,053 29.6 16,246 25.6 JBS 6,684 12.8 6,408 11.8 6,492 10.2 Copel 3,028 5.8 2,991 5.5 2,817 4.4 Fibria Celulose 1,851 3.5 2,472 4.6 2,718 4.3 Tupy 674 1.3 647 1.2 562 0.9 Others 1,978 3.8 3,535 6.5 3,657 5.8 Others 1,944 3.7 1,994 3.6 2,083 3.3 Total 52,387 100.0 54,290 100.0 63,360 100.0

(6)

6

Changes in Sources of Funds

R$ million

FAT

Bonds

Multilateral

Institutions

National

Treasury

Initial Balance

214,219

31,820

25,460

534,518

Inflows

4,607

-

710 -Amortizations

(778)

(2,370)

(603)

(17,946)

Repurchase of bonds

-

(2,766)

-

-Exchange Variation

(470)

1,958

(441)

(560)

Accrued Interest and Monetary Adjustment

3,339

376

143 9,818

Payment of Interest

(252)

(335)

(152)

(2,093)

Final Balance

220,665

28,683

25,117

523,737

4Q/15

1 _{Prepayment of R$ 15,666 billion in contracts with the National Treasury.}

Effects from Impairment

According to the CMN Resolution N° 4,175/12, permanent losses in shares received from the Federal

Government for capitalization should be entered in the net worth and will only affect earnings when

investments are sold off.

Some of Petrobras shares and those from other companies in the BNDES’ and BNDESPAR’s Portfolio fall

under this Resolution.

R$ million

Impairment

2015

2014

Effect on Earnings

1/

9,736

2,814

Petrobras

7,334

1,725

Other corp. shares non-affiliated

1,767

895 Other corp. shares affiliated

635

194 Effect on PL - Res. CMN 4.175/12

2/

4,687

2,620

Petrobras

3,313

2,609

Other corp. shares non-affiliated

1,374

11 Total Impairment

14,423

5,434

1

Considering the tax impact, already changed to the new CSLL rate valid as of Sept. 15, net expenses reached R$ 6,070 million in 2015 and R$ 1,668 million in 2014.

2

Considering the tax impact, already changed to the new CSLL rate valid as of Sept. 15, net effect reached R$ 2,730 million in 2015 and R$ 1,442 million in 2014.