Banco do Brasil

Meeting with Investors

São Paulo, October 18, 2016.

Disclaimer

This presentation may include references and statements, planned

synergies, estimates, projections of results, and future strategy for Banco

do Brasil, its Associated and Affiliated Companies, and Subsidiaries.

Although these references and statements reflect the management’s

belief, they also involve estimates and unforeseen risks. Consequently,

results may differ from those anticipated and discussed here. These

expectations are highly dependent on market conditions, on Brazil’s

economic and banking system performances, as well as on international

market conditions. Banco do Brasil is not responsible for updating any

estimate in this presentation.

Agenda

Banco do Brasil at a Glance1

Sustainability Governance and Strategy2

Banco do Brasil at a Glance

1

5

Founded in 1808

54.4%1 controlled by the Federal Government

Present in 24 countries

64.2 million clients

5

1st company listed on the stock exchange in Brazil

(1) As of Jun/2016.

Business diversification including:

Banking Services

Asset Management

Means of Payment

International Franchise

Insurance

Capital Market

5,428 branches

109,615Employees

Strong Corporate Governance

Sustainability Governance

and Strategy

2

7

2003

• Letter of Socioenvironmental Responsibility Principles Approval

• Creation of the Division responsible for Employee Relations and Socioenvironmental Responsibility within the Bank

• Formation of the RSA Group - an interdisciplinary team with representatives from BB and FBB to discuss and disseminate the theme throughout the organization

• Approval of the first Socioenvironmental Responsibility Action Plan

2004• Creation of the Sustainability Plan – BB’s Agenda 21

2005• Update of BB’s Agenda 21

2008• Settled the semi-annual accountability process to the Board of Officers of the BB`s Agenda 21 actions

2009• Creation of the Sustainability Forum

2013• Annual follow up by the Board of Directors of BB's socioenvironmental performance

2014 • Resolution 4.327 of the Brazilian Monetary Council

2015 • Specific Policy on Socioenvironmental Responsibility (PRSA) approval and release

2016 • Update of the Sustainability Plan – BB’s Agenda 30 (6th edition)

Socioenvironmental Responsibility (RSA) in BB

8

RSA Specific Policy Governance Socioenvironmental Risk

CMN Resolution 4,327/2014

• Agenda 21 - BB Triennial Sustainability Plan since 2005

• Work Fronts: Sustainable Business, Administrative Practices and

Private Social Investment

• Current version (2015-2017) has 88 macro actions - Approximately 400

actions have been developed since its launch in 2004

• Updated every two years according to market and society demands

• Monitored by the Sustainability Forum, Board of Officers and Board of

Directors

• Results reported in the Annual Report - GRI G4 Audited

Sustainability Plan – BB’s Agenda 21

9

• General Policies

• Specific Policies (PRSA, Credit, Investimentsin Strategic Shareholdings and Suppliers)

• IN 397 (Socioenvironmental Responsibility)

Guiding Instruments

• Corporative Strategy, BB Sustainability Plan

Inductors Instruments

• Instruments: PD, ATB/Sinergia, Radar do Gestor

• Metrics: Environmental Footprint

• Index, IEDS, DJSI and ISE

Performance Evaluation

DEMANDS REPORTS

COMMUNICATION

Stakeholders Panel

Capital Markets Ratios

Market trends

Civil Society Survey

Sustainability Rankings

Annual Report

Management Report

Intranet/Internet

Campaigns

SOCIOENVIRONMENTAL

PERFORMANCE

BB`s RSA Governance

10

1 million seedlings planted

684.6 hectares restored;

838.9 hectares with good practices implemented

2,542 hectares with contour farming performed

1,639 hectares of preserved fragments

895 small dams for soil and water conservation built

272 cisterns for food production and 635 for domestic use

41,700 tons of waste traded with the support of the Program

R$ 14.4 million of media valuation according to Media Analysis

Report (print, web, radio/TV)

improvement on environmental performance in the DJSI and ISE

rankings

Banco do Brasil Sustainability Guidelines for Credit in eight

economic sectors

Climate Change Strategy for Banco do Brasil

Viability studies for forest recovery in Permanent Preservation

Areas, Legal Reserves and Forest Management

Main Results 2010 to 2015

Example - Brazil Water Program

+ 11 million

indirect

beneficiaries

83,000

direct

beneficiaries

1,300 producers Implemented good

agroecology practices

125 producers with contracts of

Payment for

Environmental

Services (PSA)

636,000 tonsof water are no

longer issued/used

due to the recycling

of waste collected

50 million students have benefited

from educational

material on solid waste

and responsible

consumption

760 residual

pickers trained

in the five

locations covered

by the program

11Example - EcoefficiencyArticulated programs and actions that combine economic, social and environmental performance within

the productive processes of the Bank, seeking the natural resources and its derivatives consumption

rationalization, reduction of greenhouse gas emissions (GHGs).

R$10.3 millions¹

R$31 millions¹

R$2.8 millions

97% (reconditioned)

Total Resources Saved

2013 to 2016

¹ Although there was a reduction in the consumption in the 1H16, we could not save resources due to fees increase.

12

1997: Adoption of the Ibase Model

2002: Unification of the socioenvironmental report with the economic report

2005: Release of indicators of the Balanced Scorecard (BSC)

2006: Application of GRI indicators - G3 "C“

2007: First online fully interactive Annual Report - GRI - G3 "B"

2008: First assured by specialized audit - GRI - G3 "A +“ Annual Report

2009: First Stakeholders Panel of Banco do Brasil

2010: First Annual Report on multi-platform (Internet, Card Drive, Mobile, iPad, iPhone and Magazine)

2010: Annual Report 2008 wins three categories in the awards "GRI Readers' Choice Awards 2010"

(Engagement, Investor and General Winner)

2013: First "Comprehensive" Annual Report GRI - G4 with "GRI" Materiality Matters 'check'

Accountability

13Market Indexes and Awards

Corporate Sustainability Index (ISE) – BM&FBovespa - 2015

11 consecutive listing years since the first portfolio in 2005.

Dow Jones Sustainability Index (DJSI) New York Stock Exchange - 2016

5 consecutive listing years.

BB is a global benchmark in "Customer Relationship Management", "Financial Stability / Systemic

Risk", "Anti-crime Policy & Measures" "Corporate Citizenship and Philanthropy", "Financial

Inclusion" and "Controversial Issues, Dilemmas in Lending & Financing."

Carbon Efficient Index (ICO2) – BM&FBovespa - 2015

5 consecutive listing years in ICO2. The mais indicator of ICO2 is the change of GHG emissions

in relation to the financial result.

14

The largest bank in Latin America

Av. Paulista 2163, 2nd Floor – Cerqueira César

São Paulo/SP - Brazil - 01311-933+55 (11) 3066-9110www.bb.com.br/ir [email protected]

15

Appendix

16

• Relevance: risk of exposure degree• Proportionality: compatibility with the size

1 – Principles: Policy Implementation

• Clients and Users• Products and Services• Employees• Impacted community

2 – Stakeholders: Encourage Participation

• Implement / Monitor / Evaluate / Check adequacy• Committee creation• PRSA Revaluation at every 5 years

3 – Governance: Compatible with its size and complexity

• Technical aspects: specific criteria and mechanisms for risk assessment

4 – Risk Management: possibilities of occurrence of loss

• Structure Adequacy• Participation of the whole organization

5 – Action Plan: Approved by the Board of Directors

SOCIAL

ECONOMIC

ENVIRONMENTAL

Ch

ap

ters

RSA Policy= more proximity with clients

= organization engagement

= training

= more transparent reporting

= risk mitigation

Dissemination

Training

Engagement

Management

CMN Resolution 4.327/2014

17BB Agenda 21 - ResultsSince its creation, BB's Sustainability Plan - Agenda 21 has implemented 400 actions related to

economic, social and environmental dimensions.

• BB’s Code of Corporate Governance

• Eco-Efficiency Program

BB Agenda 21

2006 /2007

• Variable compensation system

• Gender and Race Pro-Equity Program

• Sustainability Forum

BB Agenda 21

2008/2012

• Sustainable Credit Guidelines

• BB's complete inventory of greenhouse gas emissions

• Annual event of stakeholder engagement - BB's political and credit practices

BB Agenda 21

2011/2013

• Guidelines for credit / investment involving controversial issues

• Sustainability culture in the Board of Directors

• Training plan and communication actions for the dissemination of PRSA

• Development of BB's Proposal for Performance on Climate Change

BB Agenda 21

2013/2015

18

• Develop / propose guidelines for new products and service channels to work with financial inclusion initiatives and social businesses.

• Include in risk assessment models, weighting for situations involving illegal practices of aggression to the environment.

• To create mechanisms for annual monitoring, reading and agreement with the Code of Ethics and Standards of Behavior by all the employees in Brazil and abroad.

• Define and implement gender equality at all hierarchical levels.

• Develop BB’s action regarding Climate Change - Business and Operations.

• Structuring the solid waste management system, covering the control of volumes generated by type of waste generation sites, allocation of local and total volumes recycled by type, and release the information.

BB Agenda 21

2015/2017

BB Agenda 21 - ResultsHistory – Examples of Implemented Actions

19BB`s Sustainability Plan Update - every two yearsBB’s Agenda 30 2017- 2019

From 03rd to 07th October

BB Agenda 30 week

Tematic Panels

From 22nd August to

30th September

Development of

Materiality Matrix

13th October

Sustainability Forum

16th November

VI WKS DS

Pesquisas, Rankings de

Sustentabilidade, Estudos

Setoriais