BB Seguridade Culture -...

2017

Public Meeting

BB Seguridade Participações S.A. | Investor Relations 2

Value generation toshareholders

Op

erat

ion

alIn

tern

al

Efficiency and profitability

Corporate governance

BB Seguridade culture

Strategic Agenda

Digital transformation Customer ExperienceInnovation

Mar

ket

BB Seguridade Culture


From a departament of Banco do Brasil to the 11th company listed in B3 – Brazilian Stock Market

Roles

Function

Values

Mission

Own culture

Net income = R$1.8 bi

ROAE = 32.4%

Net income = R$4.1 bi

ROAE = 51.8%

2012 2016


BB Seguridade Culture

MISSIONPROTECTING GOODS, ACHIEVEMENTS AND PROJECTS

Our function

Simplicity

Respect to theCustomer

Reliability

Innovation Ownership feeling To manage a

platform of

business and

solutions

Our valuesOur business

roles

Catalyst ofInnovation and best

practices

Distributionchannels Manager

GovernanceSpecialist

Business Portfolio Manager


How to create value in our business

• Projects

• Business emphasis

• Value chain

Collaborative and guided process to:

• Life insurance

• Pension Plans

Focus on “core business”

• KPIs

• Strategicexecution

Variable remuneration


Critical business processes automated by ERP

Institutional Processes

Business Processes

Shareholding Governance Customer Management

Marketing and Promotion

Management

Distribution and

Customer Service

Management

Portfolio

Management

Corporate Governance and Legal

Services

Risks, Compliance and Internal Control

Management

Finance, Accounting, Controllership and

Investor Relations

Enablers Processes

Corporate Strategy Management Processes Management

Administrative Management

Corporate Information Technology

ManagementHuman Resources Management

HR practices envolving performance evaluation (9-box), continuous training focus on business, innovation, finance and corporate governance, talent management, succession and retention plans.

Experienced staff, coming from Banco do Brasil, which 76% of them are post-graduated Lean organizational structure, end-to-end process, with 6 positions (Director, Executive, Superintendent,

Manager, Advisor, Assistant), enabling flexible and oriented careers possibilities.

Efficiency and Profitability


1,754

2,260

3,223

3,9454,107

3,0322,970

32.4%38.4%

49.8%54.8% 51.8% 51.3%

46.0%

2012 2013 2014 2015 2016 9M16 9M17

Adjusted net income (R$ million) ROAE

33

43

54

60

69

48

45

2012 2013 2014 2015 2016 9M16 9M17

BB SEGURIDADE

One of the largest insurance, pension plans and premium bonds companies The growth in revenues was 1.8x up compared to market growth in the period of 2012 to 2016 Return on average equity increased 60% in the same period

PREMIUMS, CONTRIBUTIONS AND COLLECTIONS¹ NET INCOME AND PROFITABILITY

¹ Written premiuns, pension plans contributions and premium bonds collections.


WRITTEN PREMIUMS

NET INCOME AND PROFITABILITY

COMBINED RATIO (%) UNDERWRITING RESULT

BB MAPFRE SH1

4,671

6,244

7,432 7,601 7,379

5,412 5,467

2012 2013 2014 2015 2016 9M16 9M17

1,2781,680

2,4252,654 2,794

2,104 2,157

78.6% 75.0% 72.5%69.0% 70.2% 70.6% 72.0%

2012 2013 2014 2015 2016 9M16 9M17

Underwriting result (R$ MM) Underwriting margin

78.6 75.0 72.5 69.0 70.2 70.6 72.0

2012 2013 2014 2015 2016 9M16 9M17

-8.4 p.p.

647

907

1,297

1,632 1,663

1,2351,132

20.0%29.6%

41.4% 46.5% 44.2% 46.5%43.0%

2012 2013 2014 2015 2016 9M16 9M17


Life, mortgage life and rural operationspresented growth in premiums and

consistent improvement in operationalperformance, reaching a return more

than 2x up compared to the profitabilityover five years ago.

+1.4 p.p.


228199

275

416

250221

75

9.7%7.5%

9.2%12.8%

7.0%8.2%

2.7%

2012 2013 2014 2015 2016 9M16 9M17Adjusted net income (R$ million) ROAE

1,166

1,423 1,4101,504

1,185

959 940

20.9%21.5%

19.8% 19.9%

16.0%17.0%

18.2%

2012 2013 2014 2015 2016 9M16 9M17

Underwriting result (R$ MM) Underwriting margin

WRITTEN PREMIUMS

UNDERWRITTING RESULT NET INCOME AND PROFITABILITY

COMBINED RATIO (%)

MAPFRE BB SH2

6,649

7,7948,846 9,094

8,424

6,428 6,325

2012 2013 2014 2015 2016 9M16 9M17

98.4 98.0 98.6 99.4 102.7 101.5 103.3

2012 2013 2014 2015 2016 9M16 9M17

+4.3 p.p. +1.8 p.p.

-66%


CONTRIBUTIONS


MANAGEMENT FEE RESERVES

BRASILPREV

8381,031

1,236

1,555

1,957

1,429

1,769

60.7%52.8% 52.2% 51.7%

49.2% 48.3% 47.8%

2012 2013 2014 2015 2016 9M16 9M17

Management fee (R$ MM) Cost-to-income ratio

Higher growth compared to the market and consolidation of its leadership position considering total contributions and reserves.

Steady improvement of cost-to-incomeratio, with strict cost control: down 11.5 p.p. between 2012-2016.

1823

3137

47

32 30

26.1%

31.4%

37.3% 37.6%40.6% 40.2%

34.5%

2012 2013 2014 2015 2016 9M16 9M17

Total (R$ billion) Market-share¹

6784

112

148

198 183

226

20.7%

22.9%25.9%

28.2%30.3% 29.8% 30.6%

2012 2013 2014 2015 2016 9M16 9M17

Reserves (R$ billion) Market-share¹

477592

729861

1,009

742812

47.1% 46.3%42.6%

39.2%41.8%

39.7%

43.3%

2012 2013 2014 2015 2016 9M16 9M17


¹Source: Susep. ¹Source: Susep.


COLLECTIONS


ADMINISTRATIVE EXPENSES

BRASILCAP

76 72

8897

91

60 60

2012 2013 2014 2015 2016 9M16 9M17

3,871

6,2706,687 6,517

5,649

3,9743,238

2012 2013 2014 2015 2016 9M16 9M17

168132

324379

439

339

221

88.6%

57.1%

92.2% 87.0%98.4%

109.8%

72.8%

2012 2013 2014 2015 2016 9M16 9M17

Adjusted net income (R$ MM) ROAE

Strict administrative expenses control, withgrowth below inflation rate.


1,359

1,766

2,3082,559

2,764

2,032 2,029

2012 2013 2014 2015 2016 9M16 9M17

BROKERAGE REVENUE (R$ million)

NET INCOME (R$ million)

ADMINISTRATIVE EXPENSES

BB CORRETORA

Lower administrative expenses and improvement in operating margin.

271 276 269232

197

147

115

72.0%75.3%

80.3% 83.1% 80.5% 80.9% 80.7%

2012 2013 2014 2015 2016 9M16 9M17

Administrative expenses (R$ million) Margem Operacional

661

907

1,289

1,5081,610

1,175 1,160

2012 2013 2014 2015 2016 9M16 9M17


1,979

2,765

3,366 3,3043.4%

5.1%

6.8% 6.8%

2013 2014 2015 2016Dividend distributed (R$ million) Dividend yield Payout %

80.0 80.0 80.0 82.3

3439

54

43

5357

IPO (abr/13) dez/13 dez/14 dez/15 dez/16 set/17

MARKET VALUE (R$ billion)

SHAREHOLDER RETURN

Shareholder return

One of the largest companies in Brazil, holding the 11th position between thegreatest companies in B3 – the brazilianStock Market and the 3rd in “Novo Mercado”.

Corporate Governance


Internal Controls: Integrity Program

Development ofenvironment of integrityprogram management

Periodic riskanalysis

Structure and implementation of policies and procedures of integrity

program

Communication and training

Program monitoring, remedial action and

imposition of penalties.


Corporate Management: State-Owned Enterprise Governance Program

Courses of action

Transparency

Internal

Controls

Composition of

the Management

Controllers

commitment


Best practices of Corporate

Governance

to prepare the strategicplanning of companies

in strategic projects and M&A process

to prepare/improve corporatedocuments

to improve risk management frameworks

Governance: Best practices of Corporate Governance


Governance: Investment in Related Companies

04

Representation in governancebodies.

03Follow-up of decision-makingprocesses in the companies.

02Interaction betweengovernance bodies.

01

Monitoring risk exposures

Decision-making

Processes

Risks

Interaction in governance

bodies

Representation

Digital Transformation and Innovation


We are building a new IT Plataform

To update development systemsof BB Seguridade and relatedcompanies.

To allow the reuse of functionalities and

to apply the API. Reduction of Timeto Market e costs of systems

maintenance.


Multiple channels

700 thousandof assistancein Call-Centers

by month

Internet BB3 millions ofunique users

Iniciatives withknowledge-based

intelligence in 2017

13 millionsof users of

APP BB

4,300 Branches of Banco do Brasil237 “Estilo” Digital112 Offices Digital

240 Advisors ofpension plans and

insurance products


We have “Innovation DNA”

Innovation Platform

BR Startups

B-Commerce

Digital Marketing


Innovation Platform

I t i s a v i r t u a l t o o l :

support to innovation

offers innovation facilitators

channel of interaction with associates

centralize content and information

*** mOBILE e wEB ***


BR Startups

Holders:


B-Commerce

• Distribution of products in digital media (BB channels,

internet and social medias)

• Offers based in Analytics data and navigation data.

• Cluster approach (Public/Channel/Life-cycle)

• Strategy of LEAD picking – for products not distributed in

digital media yet


Digital Marketing

• Use of navigation data to programmatic media

• Strategy to perform search engine

• Production of specific content to each step of

digital journey

• Application of the channel as support of advertisingcampaigns

• Production of specific campaigns


Customer Experience


BB Seguridade in numbers

7,8 millionsof customers in BB Seguridade

66 millionsof customers in Banco do Brasil


We work to understand the customer

Integrated data between BB Seguridade andrelated companies to better assertivenessin offers and in better customer experience.

Implementation of Analytics Hub


Hub de Analytics

Challenges of 2017 Potential for 2018

• Negotiation between BB and supplier of BigData support

• Creation of data lake and integrated data

modeling

• Implementation of Zeppeling / Python tool

• Creation of score customer value

• Propensity to consumption:prospects, upselling and cross-seling

• Analysis of Market Basket

• Analysis of customer life-cycle and better

security offer

• Marketing assets – Selection of public and

vision of post activation


Always seeking enhancement in our products

2017

Feb

BB Seguro Residencial

Apr

Ourocap

May

Renewal BB Seguro Auto

Dec

InspectionAuto

Double checkconfirmationSeguros Vida

Nov

BB Dental

OurocapNegócios

Jun Sep

BB SeguroVida

New fundsgroup

Brasilprev

Oct

New fundsgroup

BrasilprevPrivate

Thank you!


RI BB Seguridade

ContactInvestor Relations

Rua Alexandre Dumas, 1671 – Térreo – Ala B04717-903 – São Paulo (SP)Phone: +55 (11) 4297-0730

[email protected]

mailto:[email protected]

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