1.+FGV MCACapital Final Brasil

MCA Capital
BTG Pactual
Constellation Ch
allenge 2021
Gab riel Gral | P ed ro Jank | Rafael

R ec o m m en d atio n
BUY
Current P ri Target P r
c e 52% UPSID ic e
BRL 101.5 E BRL 154.2
B u ys u p p o r t e d by three m
ain theses
01 Fin a n c ia l
De e pe 02 Dig ital
R e ta i l 03 P a r tn e r s
h ip M od e l
n in g U n it
Blue Ocean for Investor’ Side: Wealth
Capital M arkets
Industry: BTG at a
Development Glance
Wholesaling Reallocation A New Era
LatAm’s largest Investment Bank is heading into digital
retail
BTG Pactual has over 30 years of experience in wholesaling. The next step of the journey is retail.
Core 2020 Revenue Digital Retail

Business Breakdown Unit
Capital Sales and 32 BTG Digital
Intensive Trading Broker
Businesses %
48% of
Corporate Lending 16 Launched in 2016
revenues % BTG+
Investment 14 Transactional Bank
Banking
% Launched in 2020
Client-fee
Businesses
Asset Management 10 BTG+
33% of % business
revenues
Wealth Management 9 SME Lending
Source
%
+ Non-Core
Launched in 2020
s
19% 3
FINANCIAL DEEPENING DIGITAL PARTNERSHIP ESG
BTG is the best surfer
to ride this wave
Digit Financial
al
Deepening
P artners
hip
Capital Blue Ocean for Investor’ Wealth
M arkets Wholesaling Side: Industry:
Development Reallocation A New Era
Underdeveloped capital markets are filling space left by public

banks
Post-recession Brazil had a legacy of sub-penetrated Public banks have since reduced their exposure, leaving room
capital markets, with disproportional public activity for
private capital raising
Financial Depth, % of GDP (2017)
Equity Corporate Bonds FI Bonds Securitized Bonds Brazilian Companies Net Capital Raising, R$ bn
Direct Lending Capital Markets Banking Credit
United 14%
States
South 10%
Korea 61.2 183.5
France 10% 29.7
United Kingdom 8% 77.5 71.9

38.9 80.1
Singapor 8% 37.1
e Direct
114.9 114 130.9
China 7% 85.2 85
Lending 76.3
29.6
German 6%
y
(85.2) (82.2)
Chile 6% (131.1)
(162.2)
Thailand 4%
(13.8)
Philippines 3%
Indi 3% (84.4)
a
Brazi
Brazil 2%
3% ~5% in 2020
l Capital markets replaced direct
Indonesi 1% loans
a 2014 2015 2016 2017 2018 2019 1H20
2017 2018 2019
Sources McKinsey, 1H20
Anbima
PARTNERSHIP ESG 5
FINANCIAL DIGITA VALUATIO
Capital Blue Ocean for Investor’ Wealth
M arkets Wholesaling Side: Industry:
Development Reallocation A New Era
Underdeveloped capital markets are filling space left by public

banks
Post-recession Brazil had a legacy of sub-penetrated Lower interest rates drove credit costs to a plunge, and they
capital markets, with disproportional public activity are
likely to remain within a satisfactory range in the future
Financial Depth, % of GDP (2017)
Equity Corporate Bonds FI Bonds Securitized Bonds Capital Issuance in R$ bn, and Credit Cost Index (ICC)
Bonds Issuance Equity Issuance ICC (%)
United 14%
States
14.1
South 10%
Korea
France 10% 323.8 325.8
United Kingdom 8%
Singapor 8% 89.9
11.5 119.4
e
China 7%
201.1
German 6% 172.7 10.9
y
Chile 6%
122.0 40.1
Thailand 4%
94.3 91.8 233.9 206.3
15.4
Philippines 3% 190.2
18.0 10.1 8.0
Indi 3% 132.6
a
106.6
76.3 81.7
Brazi
Brazil 2%
3% ~5% in 2020
l
Indonesi 1%
a 2014 2015 2016 2017 2018 2019 2020
Sources McKinsey, Anbima,

Bacen
PARTNERSHIP ESG 6
Capital Markets Blue Ocean Investor’ Wealth
Development for Side: Industry:
Wholesale focus provides BTG with expertise and operational

excellence
The wholesale activities account for just a fraction in retail Wholesale focus justifies its astonishing numbers for
banks, investment banking market share
while being BTG’s core business
BTG Pactual ECM Roles (by # of Deals), 2020
Wholesale Revenue, % of Total (2020)
94%
47% Lead
Coordinator
Seniority
84%
Role
31% 32%
Market
79% Shar
6%
e
Santander Bradesco Ita BT
BTG
ú G
Sources Dealogic, Company
Filings
PARTNERSHIP ESG 7
Capital Markets Blue Ocean Investor’ Wealth
Development for Side: Industry:
Wholesale focus provides BTG with expertise and operational

excellence
The wholesale activities account for just a fraction in retail Wholesale focus justifies its astonishing numbers for
banks, investment banking market share
while being BTG’s core business
BTG Pactual ECM Roles (by # of Deals), 2020
Wholesale Revenue, % of Total (2020)
94%
47% Lead
Coordinator
Seniority
84%
Role
31% 32%
Market
79% Shar
6%
e
Santander Bradesco Ita BT
BTG
ú G
Sources Dealogic, Company
Filings
PARTNERSHIP ESG 8
Capital Blue Ocean Investor’ Wealth
Markets for Side: Industry:
Development Wholesaling Reallocation A New Era
A smaller credit portfolio highlights a higher-quality

service
2020: Huge presence in # of ECM mandates despite a Although smaller, BTG’s credit portfolio is growing fast and
smaller gaining share
credit portfolio, which is a deal generator
Corporate Lending Portfolio Volume, R$ bn (2020)
# ECM Mandates (2020) and Credit Portfolio Volume, R$ bn
CAGR2016-20:
40
BTG stands out from
this pattern 280% 35% 78%
35 43%
1000
# of ECM Mandates
30
800
25
600
20
400
15
10
200 2016 BTG Market Share 2020
0 100 200 400 500
300
2.6% 6.8%
Sources Dealogic, Company Corporate Lending Portfolio Volume

Filings 0
PARTNERSHIP ESG 9
FINANCIAL DIGITA 2016 2017 2018 VALUATIO
2019
A smaller credit portfolio highlights a higher-quality

service
2020: Huge presence in # of ECM mandates despite a Although smaller, BTG’s credit portfolio is growing fast
smaller and
credit portfolio, which is a deal generator gaining share
# ECM Mandates (2020) and Credit Portfolio Volume, R$ bn Corporate Lending Portfolio Volume, R$ bn (2020)
CAGR2016-20:
40
BTG stands out
280% 35% 78 43
from 1000
% %
35 this pattern
800
# of ECM Mandates
30
600
25
20 400
15 200 2016 BTG Market 2020

2.6 Share 6.8%
%
10
0
0 100 200 400 500
300 2016 2017 2018 2019 2020
Sources Dealogic, Company Corporate Lending Portfolio Volume

Filings
PARTNERSHIP ESG 10
Corporate Lending: more leverage and higher

spreads
BTG’s unsecured funding base doubled in SME Lending: BTG+ business “Risco Sacado” strategy
2020
201 2020
9 BTG’s Large O w es Rec eivables
Supplier Corporate Client
SME
R$ 53.6 R$ 107.2
bn bn Finances the
receivables
BTG assumes client’s cash flow as

collateral. The benefits?
Time and demand deposits = Diversified base implies
cheaper funding less credit risk Low Provisions High Spreads
M
a
r
Sources Company g
Filings
FINANCIAL DIGITA PARTNERSHIP ESG VALUATIO i 11
Corporate Lending: more leverage and higher

spreads
BTG’s unsecured funding base doubled in 2020 SME Lending: BTG+ business “Risco Sacado”
strategy
2019 2020
BTG’s Large Owes Receivables Supplier
Corporate Client SME
R$ 53.6 bn R$ 107.2 bn Finances the

receivables
BTG assumes client’s cash flow as collateral. The

benefits?
Time and demand deposits = Diversified base

implies
Low Provisions High Spreads Margin
cheaper funding less credit Gains
risk
Sources Company
Filings
PARTNERSHIP ESG 12
Greater volume and sophistication mark this new

era
Interest rates drop boost the capital markets and surges …meanwhile, there is an increasing search for sophistication
trading volume… and
specific management strategies
Selic Rate (%) vs B3 Avg. Trading Value, R$ bn
# of Investment Funds in Brazil
Average Daily Trading Value,(BRL
R$ bn Selic Rate (%)
Millions) Fixed Income Mutual Funds Hedge Funds Pension Funds Others
37.0
25.63 25,000
20,000
15,000
10,000
14.18 19.7
5,000
10.9
-
2002 2004 2006 2008 2010 2012 2014 2016 2018 2020
9.2 6.4
7.8
1.9 100
1.4
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020
Interest over
time 51
“It doesn't matter if the interest rate is 8.5% or 5.0%, this level “Investimentos”
is enough to promote enormous sophistication in the 24
capital market, with new management styles and new asset
classes”
Jan-12 Jan- Jan- Jan- Jan- Jan- Jan- Jan- Jan-20 Jan-
– André Esteves 13 14 15 16 17 18 19 21
Sources Anbima, Valor Econômico, Google
Trends
PARTNERSHIP ESG 13
Capital Blue Ocean Investor’ Side: Wealth Industry:
Markets for Reallocation A New Era
Development Wholesaling
As for BTG, AUM is being driven by

HNWIs
BTG Assets under Management by Client Mix, R$
bn
HNW Institucional Third Party Corporations Funds Others
I
30.3
101
77.5
HNWIs are pushing
56.8 30.7 AuM. Only in 2020, HNWI
83.9
15 assets grew 43% YoY…
37.9
44.7 66.8
12.3 ...but how does BTG
12.2 114.4
34.1
10.2 create an attractive
10.1 11.3
9.4 environment for HNWIs?
80
55.3
41.4
2017 2018 2019 2020
Sources
Anbima
PARTNERSHIP ESG 14
Markets for Side: Industry: A
Development Wholesaling Reallocation New Era
Private Banking positioning: a valuable asset for
BTG
Private Bank clients demand sophisticated and ...which makes reputation a core asset, enhancing the
personalized products... advantage of being recognized as a tier one serivce
Asset Class Distribution by Segment,

2020
Exclusive Open
Funds; Funds; Brazil’s Best PB Services Overall,
49.50%
50.50
2020
% 1s
Private Banking 38% 2% 59% t 2nd
3rd
High Inc.
M ore than 15 awards
13.5% 44.6% 3.2% 38.6%
Retail in
wealth management
Traditional Retail 69.6% 17.0% 13.0%
Cash/"Poupança" Marketable Securities Structured Fuds/ETF Investment

Funds
Sources Anbima, Company

Filings
PARTNERSHIP ESG 15
Private Banking positioning: a valuable asset for
BTG
Private Bank clients demand sophisticated and ...which makes reputation a core asset, enhancing the
personalized products... advantage of being recognized as a tier one serivce
Asset Class Distribution by Segment, 2020
Exclusive Open
Funds; Funds; Brazil’s Best PB Services Overall,
49.50% 50.50%
2020
1s
Private Banking 38% 2% 59% t 2nd
3rd
M ore than 15 awards

High Inc. Retail 13.5% 44.6% 3.2% 38.6% in
wealth management
Traditional Retail 69.6% 17.0%
13.0%
Sources Anbima, Company

Filings Cash/"Poupança" Marketable Securities Structured Fuds/ETF
PARTNERSHIP ESG 16
FINANCIAL
Investment Funds DIGITA VALUATIO
Private Banking: consolidated segment with fierce competition for
bankers
The wealth management industry accounts for R$ 3.6 Fierce competition for senior bankers in PB, as the custody
trillion, of assets is closely linked to their relationship with the client
divided into three main segments
Private Banking Market-Share (jan/2020)
Financial Volume per Segment, R$ bn
Private Banking Private Banking 15%

12%
High Income High barriers to entry 11%
Retail Traditional 1,483 Highly concentrated industry:
Retail Well served and consolidated R$ 1.5 tn incumbents brutally
28% compete for senior
16% bankers
868 High Income Retail
18%
Medium barriers to
645
1,054 entry Other
778 Badly served by traditional “Rouba

banks
502 Monte”
Traditional
Retail
1,164
916 Badly served by traditional banks,
775
but
less demanding
2014 2017 2020
Sources Anbima, Company Filings, Valor Econômico, Brazil

Journal
PARTNERSHIP ESG 17
Doubling down: betting on a huge addressable
market
The wealth management industry accounts for R$ 3.6 By targeting High Income Retail, BTG almost doubles it’s
trillion,
TAM
Financial Volume per Segment, R$ Private Banking
bn Private Banking + High Income
Private Banking TAM, 2020 TAM, 2020
Private Banking
High Income High barriers to entry R$ 1.5 tn R$ 2.5
1,483
Retail Traditional
Retail Well served and 74% tn
consolidated TAM increase

Medium barriers to
645
1,054 entry
778 Badly served by traditional
banks
502
Traditional
Retail
1,164
916 Badly served by traditional banks,
775
but
less demanding
2014 2017 2020

Journal
PARTNERSHIP ESG 18
Doubling down: betting on a huge addressable
market
The wealth management industry accounts for R$ 3.6 By targeting High Income Retail, BTG almost doubles it’s
trillion,
TAM
Financial Volume per Segment, R$ Private Banking
bn Private Banking + High Income
Private Banking TAM, 2020 TAM, 2020
Private Banking
High Income High barriers to entry R$ 1.5 tn R$ 2.5
1,483
Retail Traditional
Retail Well served and 74% tn
consolidated TAM increase

Medium barriers to
645
1,054 entry
High Income Traditional
778 Badly served by traditional Retail Retail
banks
502
Traditional
BTG reaches 48% of
52%
Retail the retail market by
92%
916
1,164
Badly served by traditional banks, targeting the 8% high-
775
but less demanding 48% income
8% accounts
2014 2017 2020 # of % of retail
accounts investments
Journal
PARTNERSHIP ESG 19
Financ ial Deep
ening
A winner strategy
in digital retail
D ig ital
P artners
hip
Retail Getting the Clients: Core-Digital
Disruption most out of Ecosystem Synergies
IFAs Stickiness
Independent Financial Advisors suit clients’ needs better than

managers
Investment
Market But what do clients seek from
Dynamics advisors?
Value Chain
1 Wide range of
Offers a wide range of Financial
products
Products
Brokers | Clients
Banks 2 User Experience
Financial Advisors
Bank managers Independent
Financial
Advises clients
3 Close and quality
Advisors (IFAs) advice
Banks: ~ 400
(High Income clients/ manager
Segments)
~ 100
IFAs: clients/advisor
IFAs provide closer advisoy

Sources Our Analysis, Field
Research
DIGITAL PARTNERSHIP ESG 21
FINANCIAL VALUATIO
IFAs Stickiness
Independent Financial Advisors suit clients’ needs better than

managers
Investment
Market But what do clients seek from
Dynamics advisors?
Value Chain
1 Wide range of
Offers a wide range of Financial
products
Products
Brokers | Clients
Banks 2 User Experience
Banks have been losing share to brokers,
following a trend observed in international
markets
Mutual Funds Assets by Distribution Channel, 2018 3 Close and quality
5%
Banks
Channels 38% 35%
Other advice
Banks: ~ 400¹
(High Income clients/manager
Segments)
87% ~ 100
100% 95% IFAs clients/advisor
65%
62% :
13% IFAs provide closer advisoy
UK US FRA IT BRA
A
Research
FINANCIAL VALUATIO
IFAs Stickiness
IFAs: a central expansion pillar, hampered by

regulation
The major non-bank player is XP Investimentos, which had
its expansion based on a large growth of the IFAs network CVM 497
establishes
XP AuC (R$ Bn) Registered IFAs in Brazil (thousands)
No But its likely
possibility of to change.
capitalist What then?
660
17% partner
17.0
Mkt.
Share13.6
365.7 Brazil is likely to experience
9.3
the same IFA offices
7.7 expansion as:
231. Publicly listed Firms that focus on
6.6 9
offices consolidating IFA
144.5 market
80.3
2017 2018 2019 2020 2021

E
Sources Ancord, Company Filings, CVM, Bloomberg, Our
Analysis
FINANCIAL VALUATIO
IFAs Stickiness
IFAs: a central expansion pillar, hampered by

regulation
The major non-bank player is XP Investimentos, which had
its expansion based on a large growth of the IFAs network CVM 497
establishes
XP AuC (R$ Bn) Registered IFAs in Brazil (thousands)
No But its likely
possibility of to change.
capitalist What then?
660
17% partner
Mkt. Share
17.0
Brazil is likely to experience

13.6 the same IFA offices
365.7
expansion as:
Publicly listed Firms that focus on
offices consolidating IFA
9.3
market
7.7 231.9
6.6
144.5
80.3
Sources Ancord, Company Filings, CVM, Bloomberg, Our
Analysis
FINANCIAL VALUATIO
IFAs Stickiness
A unique value proposition to catch the big

fish
Mandatory However,
link to brokers
becoming a
broker requires  Acquisition of a
Lower margins significant 49% stake in
for IFAs investments 09/2020
 In the process of
becoming a broker
BTG tackles the IFA office’s will to become a broker
1 White-Label Broker as a Service infrastructure

 Acquisition of stake in
09/2020
2 Support to become a  In the process of being
broker recognized to become
a Securities Distributor
3 Investment, with purchase of a stake in the
(DTVM)
office
Sources Brazil Journal, Valor

Econômico
FINANCIAL VALUATIO
Retail Getting the Clients: Ecosystem Core-Digital
Disruption most out of Stickiness
IFAs Synergies
Who can best tell us about competition for offices? IFAs

themselves
We went “out” on field, and Conversation happened on March
talked to 39 IFA
5th
offices… 22
offices
16
offices
...However, only 9% considered the possibility
of 1 office
becoming a broker a long-term goal
9%
Sources Field
Research
FINANCIAL VALUATIO
Disruption most out of Stickiness
IFAs Synergies
Who can best tell us about competition for offices? IFAs

themselves
We went “out” on field, and Conversation happened on March
talked to 39 IFA
5th
offices… 22
offices
16
offices
...However, only 9% considered the possibility
of 1 office
becoming a broker a long-term goal
What is the main strategy
9% 91
% for
Sources Field
expanding BTG Digital then?
Research
FINANCIAL VALUATIO
IFAs Stickiness
BTG's weapon: attracting sophisticated

IFAs
Sophisticated IFAs
Meet Corporate Explore Better-
sophisticated HNWI
certified
demands Service Cross-sell

professionals
Standard
IFAs
Focus on broad Aims to expand Focus on distributing
income the customer investment
ranges base products
Sources Field
Research
FINANCIAL VALUATIO
IFAs Stickiness

IFAs
Sophisticated
IFAs
Meet
sophisticated Corporate Explore Better-certified
HNWI Service Cross-sell professionals
demands
Standard
IFAs
Focus on broad Aims to expand Focus on distributing
income the customer investment
ranges base products
Sources Field
Research
FINANCIAL VALUATIO
IFAs Stickiness

IFAs
Sophisticated
IFAs
Meet
demands
Much greater Concentrate a large

part of the
added value for market's assets in
BTG Pactual a small number of
IFAs
Sources Field
Research
FINANCIAL VALUATIO
IFAs Stickiness

IFAs
Sophisticated
IFAs
Meet
demands
We found
Products that
4 main
matter when
Technology
choosing a
factors
Much greater Concentrate a large
broker part of the
Relationships added value for market's assets in
BTG Pactual a small number of
Customer value proposition IFAs
Sources Field
Research
FINANCIAL VALUATIO
IFAs Stickiness
Which player stands out when it comes to product and

technology?
Which player stands out in each XP > BTG = XP BTG
criterion? BTG > XP
Products
13%
Technology However...
27% 23%
86% of the advisors
50% 62% interviewed believe
that both product
64% 66% and technology will
38% 32%
become commodities
in the near future
9% 11%
According to BTG IFAs According to XP According to BTG According to XP
IFAs IFAs IFAs
The product portfolio is quite XP is still slightly ahead in tech,

similar in scope, with some minor but BTG is getting there
variations
Sources Field
Research
FINANCIAL VALUATIO
IFAs Stickiness
Relationships: open channel between advisors and bank

executives
In our research, we
clearly perceive the
unique
relationship that
BTG maintains with | Conversation happened on 04/03
the IFAs “BTG provides total openness to speak with the Heads of the IBD,
with Sallouti, or whoever we need. For us, this is an important
asset!”
– Marcel Góes, Partner at Cordier
Investimentos
| Conversation happened on 05/03
“BTG is very humble in hearing suggestions to

improve processes and learn from the advisors’
know-how”
– Marcello Popoff, Partner at Lifetime
Investimentos
Sources Field
Research
FINANCIAL VALUATIO
IFAs Stickiness
Access to the investment bank allows for a distinct value

proposition
Fernando, from BlackBridge, told us of a case in

which his client needed corporate solutions, and
he immediately called BTG Pactual:
“ I'm taking a client to the

bank, it would be nice if
André Esteves
attended the
meeting”
The meeting took place on January 5th and Esteves

was present. Today the client is already connected to 3
areas of the bank, and thinking about structuring an
IPO for his company.
Sources Field
Research
FINANCIAL VALUATIO
IFAs Stickiness
By encouraging cross-sell, BTG benefits all stakeholders in the value

chain
In conversations several
Great incentive to advisors reported that there
offer Investment Bank
was little incentive via
services
commission to offer more
Tightens the services
relationship with
the advisor Company
Company
Greater service Less services offered

offerings to clients for the clients by the
Adv sor (IFA) Advisor (IFA) IFA
i
Increase its penetration Closes an important

in door
Invest ent Bank the Middle Market Invest ent Bank to the Middle Market
m m
Research
FINANCIAL VALUATIO
IFAs Stickiness
By encouraging cross-sell, BTG benefits all stakeholders in the value

chain
Great incentive to In
offer Investment Bank short:
services
Tightens the
relationship with
Company the advisor Robust Bank Open Channel Offering the
Structure with the IFAs right incentives
Greater service
offerings to clients The result? BTG is much more efficient
Advisor (IFA)
at
capturing cross-sell opportunities
Increase its penetration

in
Investment the Middle Market
Bank
Research
FINANCIAL VALUATIO
IFAs Stickiness
The private proposal also generates leads in the common

base
Sophisticated IFAs
Private proposal and

investment bank
structure naturally
attract standard IFAs
Standard
IFAs
Fiercer competition due to

XP
long-term positioning on
retail
Research
FINANCIAL VALUATIO
IFAs Stickiness
Is there a clear winner? Yes... and there are

two!
Brokers are expected to continue concentrating Within the projected market size, both BTG and XP reach
investments bold levels of WuC leaving some room for other non-bank
and gaining market share in the coming years players
Brokers/Challengers WuC Market Share
Brazillian Investment Market, R$ tn
(2025E)
Brokers |
Challengers
5.4
Traditional Banks 5.
Brokers | Challengers (% of 3.5
total) 5.0 4 18% 22%
3.4 2025E 2025E WuC
4. WuC R$ 421 bi
3.3 R$ 515 bi
4. 5
3.1
3. 1
7 3.0 R$ 2.3
40%
2.8
37% tn
34%
30%
27%
24% 2.3 60% The
2025E WuC remaining market
2.0
R$ 1404 bi
1.7 may see more
1.4
1.1 consolidation ahead
0.9
2020 2021E 2022E 2023E 2024E 2025E

Sources Anbima, Oliver Wyman, Our
Analysis
FINANCIAL VALUATIO
IFAs Stickiness
Open Banking: traditional banks’

nightmare
Retail banks enjoy current account concentration, penetrating
the whole economy through long-lasting relationships
Five largest banks, # checking accounts (millions)
Santander Itaú Bradesco Banco do Brasil Caixa
The monopoly is coming to an end with
Five largest banks, % of total Open Banking
What explains the

checking account
concentration?
67.1% 66.9% 1 Data
108
monopoly Client owns … integrating … reduc ing
93 results
in… its financial it in one Switching
59.2%
data… system… Costs.
2 High switching
74
67 costs
Financial Costs Clients cheaply

Effort
71
Costs
seek for the
49 56 providing banks with… best services
22 26 3 Lofty retention
rates
2018 2019 2020
Sources Company Filings,
Bacen
FINANCIAL VALUATIO
IFAs Stickiness
Open Banking: traditional banks’

nightmare
Retail banks enjoy current account concentration, penetrating
the whole economy through long-lasting relationships
Five largest banks, # checking accounts
(millions) The monopoly is coming to an end
Santander Itaú Bradesco Banco do Brasil Caixa with
Five largest banks, % of total Open Banking
What explains the
checking account
concentration?
67.1% 66.9% 1 Data
108 Client …
monopoly …
results owns its integrating it reducing
93
59.2% in… financial in one Switching
data… system… Costs.
2 High switching
74
67 costs
Clients cheaply
Financial Costs
seek for the
Effort
71
Costs best services
56
providing banks
49
with…
22 26 3 Lofty retention
rates
2018 2019 2020
Bacen
FINANCIAL VALUATIO
Disruption most out of Stickiness Synergies
IFAs
Banks vs Fintechs: which business model best serves the average

client?
PRODUCT- CUSTOMER-
ORIENTED ORIENTED
Greater Variety of Better User Experience
Fintechs
Products
Advisory, Wealth Management, Credit for Despite a smaller portfolio of products, focus
Large Retail
X
SMEs
and HNWIs and on clients
other needs
Banks
Credit Expertise Data-Driven Culture

Long track record in the most Allows for a more precise
important client information
financial product tracking, increasing
efficiency
Source Company Filings, Our

Sources
s
Analysis
FINANCIAL VALUATIO
IFAs Stickiness
Being able to combine both worlds is

key
PRODUCT- CUSTOMER-
ORIENTED ORIENTED
Profitable, robust investment FULLY DIGITAL entrance in
bank R
retail
2019 Net Income, structure
R$ 3,833
ebranding, sep/2020:
mn
`
82
(312) (186) digital
BTG Pactual
Much wider product portfolio DIGITAL

RETAIL UNIT
Investments Credit IB solutions Advisory

Sources
s
Analysis
FINANCIAL VALUATIO
IFAs Stickiness
Being able to combine both worlds is

key
PRODUCT- CUSTOMER-
ORIENTED ORIENTED
Profitable, robust investment FULLY DIGITAL entrance in
bank retail
Rebranding,
2019 Net Income, structure
R$ 3,833 sep/2020:
mn
digit al
82
(312) (186)
BTG Pactual
DIGITAL
Much wider product portfolio
RETAIL
UNIT
Investments Credit IB solutions Advisory

Sources
s
Analysis
FINANCIAL VALUATIO
IFAs Stickiness
BTG+: adoption is relatively easy. The tricky part is recurrence of

use
Brazilians historically have on average around two cards
per checking account
Reaching clients is not the
issue...
2.2
# of Active Cards
2019
: # of Checking
Accounts x Cards with low recurrence of use
# of Checking Accounts # of Active
Cards
=
(Millions of accounts)
214 216 CAC with no return for the issuer
190
184 185
182
172
163 161
...generating recurrence of use

is!
101 103 102
92 90 91 87
87
79 We firmly believe BTG+ will not have
any
trouble regarding recurrence of use
2011 2012 2013 2014 2015 2016 2017 2018 2019 Why
Bacen
FINANCIAL DIGITAL PARTNERSHIP ESG VALUATIO
? 44
IFAs Stickiness
Stickiness: highly integrated platforms create a feedback

cycle
We tested the new digital products, and were

impressed by the platforms’ integrability
Main point of integration

Extremely of BTG's
intuitive, two-touch digital platforms
redirectioning:
BTG+ BTG+ platform

platform BTG Digital platform
Current Account Investments

1st 2nd You are now in the
Touch Touch BTG Digital platform
Sources Our
Analysis
FINANCIAL VALUATIO
IFAs Stickiness
Stickiness: highly integrated platforms create a feedback

cycle
ECOSYSTEM
SWITCHING COSTS
LOW Transactional Bank
Transactional Bank No relationship Lower cash
ties with a volume to be
manager transfered
digital HIGH
Broker
SM E Lending
Sources Our
Analysis
FINANCIAL VALUATIO
IFAs Stickiness
Stickiness: highly integrated platforms create a feedback cycle
ECOSYSTEM
SWITCHING COSTS: Create ecosystem
stickiness 1
Enters through lower switching costs-platform:
LOW BTG+
Transactional Bank
2 Finds himself in a layer in which migration is more
costly
than the one through which he entered: BTG Digital
digital HIGH 3
Customer stickiness is generated
Broker
SM E Lending
Sources Our
Analysis
FINANCIAL VALUATIO
Disruption Ecosystem Synergies
most out of IFAs Stickiness
An even larger feedback cycle: investment and digital bank

synergies
BTG’s long-term strategy in our view: have its robust investment bank structure to push DRU growth, and vice-
versa
Deal Origination Investment Bank Products

IFAs provide Incentivizing cross-sell with
valuable access core units attracts the best
to IFAs
the middle
market
Core
DRU
Business
Better Funding Value Proposition for

Sources IFAs
Balance sheet Proximity of the banks’ top
improvement with executives to the IFA
lower risk and higher offices
spreads
Sources Our
Analysis
FINANCIAL VALUATIO
Financ ial Deep
ening
Digit Partnership
al
The partnership model

is
key to support growth
Key to the Inside the Perpetuating No Digital
Past Partnershi the Culture DNA,
Success p No Problem
BTG’s key to success: business scope

expansion
What started as a small proprietary desk in
1983...
Aplicap S.A was founded, as a
securities sales & trader
1989
Banking
License
1
9
9
0
2011
Retail Exposure
- (Banco Pan) 201
LatAm
2
2 Expansion
0 2016 -
0 2020
5 Digital Retail
Core Unit
Activities Creation
...became an industry leader with global
Expansion
penetration
Sources Company Filings 50
FINANCIAL DIGITA PARTNERSHIP ESG VALUATIO

expansion
1983...
Aplicap S.A was founded, as
a
securities sales & trader We highlight three key aspects
that
support such a business model:
1989
Banking “Never comfortable position”
License
1990 - 2005
Core
Activities Integrated Business Units
Expansion
2011
Retail Exposure
(Banco Pan) 201 Lean, efficient structure
LatAm
2
Expansion
2016 -
2020
Digital Retail
Unit
Creation
...became an industry leader with global
penetration

expansion
1983...
Aplicap S.A was founded, as
a
securities sales & trader We highlight three key aspects
that
support such a business model:
1989
Banking “Never comfortable position”
License
1990 - 2005 Constantly

Core
Integrated Business Units
unlocking
Activities
Expansion
value from
2011 new business
Retail Exposure units
(Banco Pan) 2012 Lean, efficient structure
LatAm
Expansion
2016 -
2020
Digital Retail
Unit
...became an industry leader with global Creation Partnership model has a major
penetration role
Agressive model that keeps every partner

sharp
Never in a comfortable Integrated Business Lean, efficent
position Units structure
…but sell shares at the lowest of two

values if they want to leave:
Partners enter the 1 Book Value Or if they have to:

vehicle at Book 22.3% Any partner can be
Value… asked to leave
2 M arket Value anytime
Positions increase alongside 18.6%
ROE, which
averaged
16.0% 15
years%
in the last four
14.1%
12.9%
11.0%
1Q1 3Q1 1Q1 3Q1 1Q1 3Q1 1Q2 3Q20

7 7 8 8 9 9 0
Sources Company Filings, Brazil
Journal
PARTNERSHIP ESG 53

sharp
…but sell shares at the lowest of two

values if they want to leave:
Partners enter the 1 Book Value Or if they have to:

vehicle at Book 22.3% Any partner can be
Value… asked to leave
2 Market Value anytime
ROE, which If it suddenly drops lower than 1x Book,

averaged
16.0% 15 Partners
have huge incentive to reverse the situation
years%
in the last four
14.1%
12.9% 2017:
2Q17 average
11.0% Mkt. Cap to Book
1Q1
7
3Q1
7
1Q1
8
Sources Company Filings, Brazil
3Q1
8
1Q1
9
3Q1
9
1Q2
0
3Q20
0.73x
Journal
PARTNERSHIP ESG 54

sharp
This keeps partners from jumping

off
the boat during tough times
Partners enter the Those who stayed in the bank after the slumps
vehicle at Book 22.3% enjoyed higher returns on their equity:
Value… # Partners
Value/Partner, R$ mn
Book
256

98.0
ROE, which 247 247
averaged
16.0% 15 67.8
241 75.3
237
65.5 66.1 63.3
years%
in the last four
14.1%
230
12.9%
11.0%
1Q1 3Q1 1Q1 3Q1 1Q1 3Q1 1Q2 3Q20 201 201 201 201 201 2020
7 7 8 8 9 9 0 5 6 7 8 9
Sources Company
Filings
PARTNERSHIP ESG 55
The partnership model promotes integration between

areas
What is the main incentive regarding partners As a result, cross-selling allows for healthy,
compensation? homogeneous long-term growth
The whole Revenue by Business Unit, R$ mn
cake Investment banking Corporate lending S&T Asset management Wealth management
must grow... 9,00

0
CAGR17-
8,000
20 32%
7,000
6,000
27
%
5,000
4,000 10
%
…and not just 3,000
26
the 2,000
%
slice 1,000
53
-
2017 2018 2019 2020
%
Sources Company
Filings
PARTNERSHIP ESG 56
Concentrated voting power means efficient decision

taking
Having the bank’s Senior Partners controlling the

G7 Holdings (controlling company
partners) allows for efficiently prevailing the best ideas
BTG
André
Pactual Esteves ON Shares PN
Holding 237
50% Five partners 49%
100% Shares
Partners concentrate 87%
of the voting 41%
37% power
BTG Pactual
Holding Free Float
Financeira
73.9% 26.1%
13%
BPAC 11 10%
Units
0%
G7 André Free Partner Free Partner André

Holdings Esteve Float s Float s Esteve
Sources Company s s
Filings
PARTNERSHIP ESG 57
Past Partnership the Culture DNA,
Success No Problem
Highly experienced senior partners choose the best future

successors
“In the long-run, the

Having the bank’s Senior Partners controlling the
success of a Partnership company
depends on sticking to allows for efficiently prevailing the best ideas
meritocracy.
ON Shares PN
[…] It is all about 50% Five partners 49%
Shares
human capital”* concentrate 87%
of the voting 41%
37% power
13%
To understand the partnership from the inside, we 10%
talked to former partner and founder Pérsio

0%
Arida Video conversation took place on March G7 André Free Partner Free Partner André
15th Holdings Esteve Float s Float s Esteve
Sources Company Filings, Field Research. *Full quote available in the s s
appendix
PARTNERSHIP ESG 58
Past Partnership the Culture DNA,
Success No Problem

successors
“In the long-run, the A super qualified team from the start...
André Esteves Roberto ti
success of a Partnership Antonio Porto Sallou James
depends on sticking to Marcelo Kalim Oliveira Pérsio
meritocracy. Emmanuel Arida
[…] It is all about Hermann 2008
Controllers
human capital”* …and an exceptional choice of
new
partners…
André Esteves Roberto Sallouti
Antonio Porto Renato Santos
Guilherme 2021
Paes Controllers
To understand the partnership from the inside, we

…guarantee the bank's robustness
Arida Video conversation took place on March and
15th
Sources Company Filings, Field Research. *Full quote available in the
appendix
resilience
PARTNERSHIP ESG 59
Key to the Past Inside the Perpetuating No Digital
Success Partnership the Culture DNA,
No Problem

successors
“In the long-run, the

success of a Partnership
depends on sticking to
meritocracy. About the 2015 credibility crisis, Pérsio
told us:
[…] It is all about “It is the only case in banking history that
human capital”* I know of in which a bank suffers from a
full- fledged bank run and survives without
being bailed out by Central Bank or
regulatory
entities.”
To understand the partnership from the inside, we

Arida
Video
Sources Company Filings, Field Research. *Full conversation
quote available in thetook place on March
appendix
15th 60
Key to the Inside the Perpetuating the No Digital DNA,
Past Partnershi Culture No Problem
Success p
Talent magnet: the partnership attracts great

minds
Eduard
o
Guardia
We had a conversation with a major
international
Alessandr bank’s Vice Chairman, in which he said:
o “BTG is well regarded by those who do not
Farkuh
want to be in a rigid and bureaucratic
place, which is why it attracts great
people as partners”
Man uet
s o
Almeida
Will
Lander
s
Sources Company Filings, Field

Research
PARTNERSHIP ESG 61
Key to the Inside the Perpetuating the No Digital DNA,
Past Partnershi Culture No Problem
Success p
Partners perpetuate the bank's culture in new ventures
In our conversations with

employees, we found that the
partners are committed to
bringing the bank's culture to
all new ventures
“The acquisition of Bolsa y Renta was due to
Guilherme Gomes
an exceptional matching of culture
Executive Director | BTG Pactual
Colombia and long- term vision”
Conversation happened on 23/02 - Guilherme
Gomes
“Several partners came here from Brazil, and

Rafael Dringoli
today we have already managed to align the
Associate Partner | BTG Pactual
Chile culture in Chile with what we practice in
Conversation happened on 25/02 Brazil”
- Rafael
Sources Company Filings, Field

Dringoli
Research
PARTNERSHIP ESG 62
Past Partnershi the Culture DNA, No
Success p Problem
The franchise has spread to many markets. How will it break into the
digital?
Amos However, incumbent banks lack the digital mindset
Genish that
fintechs enjoy…
Head of Digital Retail
Unit
“Consumers expect from their ...and ambitions aren’t
banks the same experience modest:
they have with FAAMG” 6th largest 1st option 4.5 million
retail bank in of IFAs and customers in
Brazil Investors 2023
A telecom
guru
Sources Company Filings, Youtube Video featuring Amos Genish: “Crescimento do segmento digital em
bancos”
PARTNERSHIP ESG 63
Past Partnershi the Culture DNA, No
Success p Problem
The franchise has spread to many markets. How will it break into the
digital?
Amos However, incumbent banks lack the digital mindset
Genish that
fintechs enjoy…
Head of Digital Retail
Unit
“Consumers expect from their ...and ambitions aren’t
banks the same experience modest:
they have with FAAMG” 6th largest 1st option 4.5 million
retail bank in of IFAs and customers in
Brazil Investors 2023
A telecom
guru
They don’t have the digital DNA.
But they have the entrepreneur one.
The partnership has always led partners to

expand
their usual job description
Sources Company Filings, Youtube Video featuring Amos Genish: “Crescimento do segmento digital em
bancos”
PARTNERSHIP ESG 64
Financ ial Deep
ening
E SG
Digit
Does BTG adopt the
al best
business practices?
P artners
hip
Environmental, Social, and Corporate
Governance
How aligned is BTG with the best business
practices? We ranked multiple companies through
an original index to assess how aligned
they are with generating stakeholder
value
Current Efforts
We
Grades from 1 - 3:
compare:
The company’s current 5 Environmental criteria
efforts regarding the 7 Social criteria
best business practices 5 Governance criteria
Index
Rationale
Our view on future Future Commitment
commitment with an Grades from 1 - 3:
ESG agenda
Clear
goals ESG
Evolution Benchmarks
Managem
ent
Sources Companies Annual Reports, Self awareness
Elaboration
PARTNERSHIP ESG 66
Environmental, Social, and Corporate
Governance
How aligned is BTG with the best business
practices? We ranked multiple companies through
an original index to assess how aligned
they are with generating stakeholder
2.8 value
2.6 NTCO3
Commitment with future agenda
XP
2.4
BPAC1 BTG is well positioned. Highlights:

BIDI1 1
2.2 1 ITUB
4 Environmental
B3SA
BBDC3 ESG committee has clear goals
3
2.0
that are aligned with its
products
1.8
Social
BBSA Relevant efforts regarding
3 education
1.6 PETR4
QUAL3 Governance ESG
Past credibility crisis is being Benchmarks
1.4
1.00 1.20 1.40 1.60 1.80 2.00 2.20 2.40 2.60 2.80 3.00
mitigated with strict actions
Current efforts
Sources Companies Annual Reports, Self
Elaboration
PARTNERSHIP ESG 67
Financ ial Deep
ening
Financials &
Digit
Valuation
al
How do our theses
translate into numbers?
P artners
hip
Business Business Unit: Financial SOTP
Unit: Core DRU Indicators Valuation
Business
Core Business highlights: cross-selling is likely to drive CL and IB
revenue
Corporate Lending main assumption: 4.1x book leverage A closer relationship to large corporates is the most relevant
by 2025 due to a growing base of unsecured funding driver for future IB revenue, generating market share gains
SME Lending CL Revenue ,R$ bn IB Revenue, R$ bn ECM Market Share DCM

CL Portfolio Volume , R$ bn
Market Share
6.3
Yields
2.3
209.7
Large Companies: 5.1
2
2.5% .
SME: 4.1 1
168.9 23.9%
6.4% 3.3
1.9
2.6
135.3 21.7%
1.8
14.9%
109.7 19.5%
4.1x Book 1.8
89.7 17.3% 1.6 14.4%
2025E
73.7 15.1%
12.9%
1.3 13.9%
1
3
.
5
%
2020 2021E 2022E 2023E 2024E 2025E 13.4%
Sources Our
Analysis 13.2%
PARTNERSHIP ESG 69
Business
Core Business highlights: cross-selling is likely to drive CL and IB
revenue
Corporate Lending main assumption: 4.1x book leverage A closer relationship to large corporates is the most
by 2025 due to a growing base of unsecured funding relevant
driver for future IB revenue, generating market share gains
SME Lending CL Revenue ,R$ bn IB Revenue, R$ ECM Market Share DCM Market
CL Portfolio Volume , R$ bn
bn Share
6.3 2.3
Yields
209.7 2.1
Large Companies: 5.1
2.5% 1.9
14.9%
SME: 4.1 1.8
168.9 23.9%
6.4% 3.3 1.6 14.4%
2.6
135.3 21.7%
1.8 1.3 13.9%
109.7 19.5% 13.5%

4.1x Book 13.4%
89.7 17.3% 13.2%
2025E
73.7 15.1% 12.9% 12.9%
12.9% 12.6%
12.4%
12.3%
12.0%
2020 2021E 2022E 2023E 2024E 2025E 2020 2021E 2022E 2023E 2024E 2025E
Sources Our
Analysis
PARTNERSHIP ESG 70
Business
We discount S&T revenue growth due to insertion in
retail
2020 was an excellent year, but we expect even greater How do we forecast sales
revenues from 2023 onwards
and trading revenue?
Sales and Trading Revenue, R$ bn
We take the average guidance for quarterly revenue…
10% CAGR Quarterly S&T Revenue, R$ mn
4.0
450 600 850
3.6
From 1Q20 Conference Call
3.4
...then we think of an annual growth rate as
3.1 3.1
2.8
Equity Growth Rate
33.5% of
Total 4.5% discount on growth
Revenues
Due to insertion in retail,

15.1% of
Total
and consequent
Revenues expected reduction
2020 2021E 2022E 2023E 2024E 2025E in VaR
Sources Our
Analysis
PARTNERSHIP ESG 71
Business Unit: Business Financial SOTP
Core Business Unit: Indicator Valuation
DRU s
BTG Digital will reach R$ 515 bn by

2025
BTG Digital is set to increase its share among We built 3 investment portfolios based on different
brokerage institutions investor profiles and estimated a fair take-rate for each
BTG Digital AuC BTG's share on non-banks

brokerage firms
515
Conservative Moderate Agressive

377
Portfolio Portfolio Portfolio
0.78% 0.73% 0.65%
268 22%
19%
16%
180 Average take-rate
114
13% 0.72%
66 10% or 1.13% before IFA
7% expenses
2020 2021E 2022E 2023E 2024E 2025E
Sources Our
Analysis
PARTNERSHIP ESG 72
Business Business Financial SOTP
Unit: Unit: Indicators Valuation
Core DRU
Business
BTG+ will reach 4.8 million customers and R$900 million annual
profit
We use a bottom-up approach to estimation, starting from the expected
number of clients that BTG + should reach
#Clients
81k 1.0mn 1.9mn 2.9mn 3.9mn 4.8mn Other key assumptions:
TPV (bn) Average monthly Spending (thousand) 132.5
1.5% of revolving over TPV

103.3
2.3
76.9
2.2
2.2
1.1% Net Interchange
2.2
2.1
2.1 51.2
26.2
2.0
10% BTG+ Premium Penetration
2020 2021E 2022E 2023E 2024E 2025E
Sources Our
Analysis
PARTNERSHIP ESG 73
Core DRU
Business
How does BTG look like five years from
now?
Revenue, R$ bn 26.0 2020 2025
Investment
7.3%
E
Banking
Corporate lending (Ex-
Non-Core 15.7% 12.0%
Business) Sales and trading 22.9% 3.9%
22. 1.2%
Asset CAGR
management
Wealth 0 8.8%
Digital Retail Unit:
management Digital
18. 3.8%
BTG +
5 10.5% 29.4%
BTG BTG BTG +
BTG + Business + Digital Business
Principal
15. 7.7% 13.2% 8.5%
8%
Core Business:
investments
Participations
Interest and
3
other 12.
3
14%
58.6%
9.3
Capital
48% 30%
16%
Intensive
9%
10%
Business
15%
32%
Client fee
33% 29%
16% Business
11%
14%
2020 2021E 2022E 2023E 2024E 2025E

Sources Our
Analysis
PARTNERSHIP ESG 74
Core DRU
Business
We also believe in improvements regarding efficiency and bottom
lines
Efficiency Ratio: the bank will gain significant efficiency due Expenses control + Diminishing need of reinvestments in
to an asset light expansion the
long-term = higher payout ratio in perpetuity
OpEx, R$ bn and Efficiency Ratio Net Income, R$ bn and Dividend Payout
Ratio Payout Ratio
2025 – 2030: 50%
Perpetuity: 60%
Asset-light expansion
is c ost-efficient
1 2,000
10.2
43.5% 50%
8.7
41.9%
12.2
41.1% 40% 40% 40% 40% 40%
40.6%
40.0% 10.1
6.4 39.3%
8.4
7.5 6.7
5.3
5.3
3.8
4.2
2020 2021E 2022E 2023E 2024E 2025E 2020 2021E 2022E 2023E 2024E 2025E
Sources Our
Analysis
PARTNERSHIP ESG 75
Core DRU
Business
We also believe in improvements regarding efficiency and bottom
lines
Efficiency Ratio: the bank will gain significant efficiency due Expenses control + Diminishing need of reinvestments in
to an asset light expansion the
long-term = higher payout ratio in perpetuity
OpEx, R$ bn and Efficiency Ratio Net Income, R$ bn and Dividend Payout
Ratio Payout Ratio
2025 – 2030: 50%
Perpetuity: 60%
Asset-light expansion
is c ost-efficient
1 2,000
10.2
43.5% 50%
8.7
41.9%
12.2
41.1% 40% 40% 40% 40% 40%
40.6%
40.0% 10.1
6.4 39.3%
8.4
7.5 6.7
5.3
5.3
3.8
4.2
2020 2021E 2022E 2023E 2024E 2025E 2020 2021E 2022E 2023E 2024E 2025E
Sources Our
Analysis
PARTNERSHIP ESG 76
Core DRU
Business
The result: attractive returns combined with a healthy balance
sheet
As a consequence of an asset-light expansion and ... and a healthy balance sheet with highly comfortable levels
DRU scallability, we forecast attractive ROAA and of
ROAE... capitalization
Basel Index
ROAE ROAA
Tier I Tier II
17.6 17.4
17.1 17.4 17.0
16.7 % %
% % 1.4% %
% 1.7% 1.1% 0.9%
2.1%
2.6%
25.9%
24.2%
22.6%
20.8%
19.2%
17.6%
16.3% 16.1%
15.7% 16.2%
14.1% 15.0%
2.4% 2.4%
1.9% 2.2% 2.3%
2.0%
2020 2021E 2022E 2023E 2024E 2025E 2020 2021E 2022E 2023E 2024E 2025E
Sources Our
Analysis
PARTNERSHIP ESG 77
Core DRU
Business
SOTP valuation: R$ 154.2 price target with a 52%
upside
After all, how much is
BPAC11 worth? We believe in an upside of 52%
Our Sum of The Parts Valuation
For each business unit, we

calculate the fair Equity R$ 6.8 R$ 1.4
R$ 9.5
Value using the DDM R$ 17.1 R$ 154.2
method
We assume, in R$ 17.6
general: R$ 101.9
Ke =
11.92% R$ 101.5
g (Perpetuity) = 7.00%
Resulting from assuming a ROE
of
17.5% and payout ratio of 60%
in
perpetuity (2030)
Sources Our
Analysis
PARTNERSHIP ESG 78
Core DRU
Business
We see BPAC11 as a unique growth story for Brazilian
banks
Fwd
12.0
2021
XP
BIDI1
1
10.0
BPAC11 trades similarly
incumbent
to banks...
STNE
8.0 LPLA
P/ BV 6.0
...despite a much more
attractive
4.0 growth story...
BPAC1
SCHW
1
Challenger
2.0 JPM ITUB4 SANB1 Incumbent
MS
UBS GS
1
... leading us to believe that
BAC
CS
BBDC4
the stock is
0.0
2.0 7.0 12.0 17.0 22.0 27.0 32.0 37.0 underpriced
ROE,
Sources Bloomberg, Our %
Analysis
PARTNERSHIP ESG 79
Would you be a BTG Pactual
shareholder?
Diversified and integrated business

units…
...driven by Financial Deepening trends...
...and an exceptional Partnership model!
Yes
!
Q&A
MCA Capital
Gab riel Gral | P ed ro Jank | Rafae

Presentation Index
Cover Third Thesis: Partnership

Key to the Past Success I
Our Theses B nside the Partnership Per
petuating the Culture No
TG at a Glance Digital DNA, No Problem
First Thesis: Financial Deepenin ESG

g Capital Markets Develop Our ESG Index
ment Blue Ocean for Whole
saling Investor’ Side: Reallo Financials & Valuation
cation Wealth Industry: A N Business Unit: Core Busin
ew Era ess Business Unit: DRU F
inancial Indicators
Second Thesis: Digital SOTP Valuation
Retail Disruption Distribution:
Quality Niched Clients: Ec Conclusion
osystem Stickiness Core-
Digital Synergies

A p p en d i
x
1.Digital Retail Unit (exc. Pan and Too) 3. Partnership and governance 5. Participations and others
1. Banco Pan
1. COVID-19 impact on Digital Banks 1. Field Research: Pérsio Arida
2. Too Seguros
1.2 Field Research: IFAs 2. Case Study: Better Than Goldman? 3. Principal Investments
3. IFA’s clients migration: Our esti 3.3 Management Description
mates 3.4 Shareholder’s Structure 6. Financials
4. IFAs: Geographical Distribution (XP vs. BTG
6.1 Summarized Income Stateme
) 1.5 Case Study: Tangerine
4. Core Business nt 6.2 Revenues Breakdown
6. BTG Advisors
1. Industry Dynamics 3. Investment Banking
7. BTG Digital: International Peers 1
2. Investment Banking: incentive fees 4. Corporate Lending
.8 BTG Digital: take-rate estimati
4.3 Sales and Trading: drivers 5.Sales and Trading 6
on 1.9 BTG Digital: AuC estimate
4. Sales and Trading: risk appetite .6 Asset Management
s
5. Asset Management positioning 7. BTG+
10. BTG Digital sensibility analysis
6. Corporate Lending: Portfolio Maturity 8. BTG Digital
11. Field Research: digital banks 1.1
4.7 SMEs: an attractive market 9. Banco Pan
2 Mosaico: creating an ecosyste
8. Unsecured Funding 10.Balance Sheet Ratios
m 1.13 Open Banking: Kinvo
9. BTG+ Business 6.11 Core Valuation –
1.14 The startups ba
10. Latin America Expansion DDM
nk 1.15 Banco XP
6.12 AM and PB Modelling
2. ESG 1.16 How much does
Analysis
a client pays in fees? Rationale 6.13 BTG+ Business
1. Our ESG Index: Grades and criteria 2. 14. Equity value
2 Our ESG Index: Detailed examples 15.Implied and Exit Multiples
2.3 What does ESG commitment mean 6.16 Justified P/BV
s? 17. Sanity Check on P/BV
18. Sensitivity Analysis
19. Risks to our Valuation

COVID-19
Coronavirus crisis has accelerated trends in financial

deepening | Appendix
Millions of 30
accounts
20
Avg. 40-50% growth in digital

jan/ 20 oct/20 banks in the first semester of
jan/ 20 oct/20 2020
Millions of 7.2
accounts
4
In order to maintain the pace of
growth, the competition to
increase product offerings and
loyalty becomes more fierce
jan/ 20 oct/20
jan/ 20 oct/20
Sources Company Filings, 84

Field Research: IFAs
Our field research with

| Appendix
IFAs
With the research, we could see a
In order to fully understand the expansion of BTG's B2B network,
we made contact with several IFAs. We reached them by email,
clear distinction between
phone and social media, and the conversation with each one common and
lasted an average of 30 minutes. sophisticated advisors!
We conducted the conversations in a very free structure, but some
questions were asked in common to the advisors:
What is the average ticket?
What made you change platforms? (in the case of those who migrated)
How was the migration process? How many percent migrated in the first
few months? (in the case of those who migrated)
Have you received proposals from competing
brokers? How is the incentive for Cross Sell?
What favors XP the most? And BTG?

The physical structure of Lifetime,
What is your perception about the competition in product variety which Marcello showed us,
and platform technology? exemplifies the Private proposal of
the IFAs that BTG
seeks.
Sources Field 85
IFAs migration: Our estimates
In BTG's tactics, migration is not a nightmare... our data proves it

| Appendix
What drives higher After all, how much of the assets

migration? is expected to migrate?
Sophisticated IFAs
Closer relationship
with clients Avg. 82% of AuC
migrated in the first months
after (based on 7 IFAs
Quantity of services experience)
offered
Common IFAs
Avg. 44% of AuC

Sophistication of the expected to migrate in the first months
service offered after (in the hypothesis of migration)
We expect even higher migration rates as

BTG
consolidates its brand in retail
Sources Field 86
IFAs: geographical distribution
IFA offices: geographical distribution, XP vs

| Appendix
BTG
Sources 87
Case Study: Tangerine
Case Study: Tangerine Growth and the need of physical

| Appendix
contact
“We understand that having

some physical presence is important
to some people. Brokers/
AuC People still
B anksay Comissions
to us, Fin.
‘I really Institutions
like what Tangerine stands for,
but I’m not a customer, s because the
lack
of physical presence makes me
uncomfortable.”
5 large brick–and-mortar
banks Peter Aceto, CEO
Despite a successful 100% digital
proposal,
Products
Tangerine needed
customers whose trust
alternative
depended
solutions
on 41% Brazilians trust the bank manager to
for
contact invest
Sources Harvard Business 88

BTG Advisors
BTG Advisors: a hybrid

| Appendix
strategy
We got the following insights about BTG
With the acquisition of Ourinvest, Advisors:
BTG Advisors was created,
BTG’s Proprietary IFA
 It is a good strategy to compete with the other large
Private Banks, as it attracts clients with not so high
assets, and who are dissatisfied with the traditional
Employees are remunerated in two ways: molds
Comissions on investments, as IFAs  It ends up having greater integration with the bank's
traditional Wealth products than the other IFAs, an
employee told us that Advisors is like a “Private Jr”
at BTG
Salaries and banefits, as BTG  Good option for those who want to migrate to the
employees IFAs' service model but are not confident enough to
work with advisors outside major banks
Sources Our Analysis, Field 89

BTG Digital: international peers
BTG Digital: International Peers

| Appendix
Comparison
The alignment of BTG's metrics with that of major,

more consolidated international players indicates that
our assumptions in general are sustainable
Sources Our 90
BTG Digital: take-rate estimation| Appendix
Based on fee data for each type of product, and portfolios for
6.9% 5.7%
9.1% each investor profile, we estimate an average of BTG's Take
FIDC/Deb/ CRI/ CRA 6.9% Rate, considering a rebate in which 60% is for the bank and
% 11.4%
4.1%
40% for the IFA
18.2%
Fixed Income Funds % 11.4% Conservativ M oderate Agressive
13.8%
e Portfolio Portfolio Portfolio
0,78% 0,73% 0,65%
Hedge Funds %
22.9%
Equity Funds % 36.4% 27.6% Average take-rate

0,72%
or 1,13% before IFA expenses
Stocks
% 22.9%
16.6% By estimating the take-rate in this way, we can get a
FII % more
accurate idea of how BTG's earnings are affected as:
11.4%  changes occur in the composition of investor
36.4%
COE
24.1%
profiles
%
14.3%  changes occur in the composition of B2B and B2C
 changes occur regarding specific products in
the portfolio
Conservative Moderate Agressive
Sources Our Analysis, Field 91

BTG Digital AuC estimates
BTG Digital will reach more than R$ 500 bn AuC in

| Appendix
2025
Our estimates indicate that non-bank institutions are expected ...and BTG Digital is set to increase its share among brokers
to account for 40% of the investment market by 2025... and
non-bank Institutions
Non-Bank
Brokers Bank Non-Banks
Brokers (% (total)
% BTG Digital AuC non-banks
5.9 BTG's share on brokerage f irms
total)
5.4 515
4.9
4.5
4.1
377
3.5
3.7
3.4
22%
3.3
268
3.1 19%
40%
3.0 37%
2.8 34% 16%
30% 180
27%
24% 13%
114
2.3
2.0 66 10%
1.7
1.4
1.1 7%
0.9
2020 2021E 2022E 2023E 2024E 2025E 2020 2021 2022 2023 2024 2025
Sources Company Filings, Our 92

BTG Digital sensibility analysis
Sensibility Analysis: BTG Digital

| Appendix
BTG Digital Sensibility Analysis – Additional Value on BPAC11 Unit (Base Scenario = R$
17.64)
Efficiency Rate Fixed in 50% 2021E, linearly decreasing to 40% Take Rate Fixed in
until 2025E 0.72%
Take Rate is keep flat throughout our forecast horizon. We see it as

a
equilibrium of two main forces:
 Increasing competition and negative effects on ROA

 Increasing participation of B2C channel for BTG Digital
Sources Our 93
Field Research: digital banks| Appendix
Digital Banking Apps: our tests and
conclusions
Best rating when Impressive range Good Benefits Good financing

How does each BTG Digital results
in a more it comes to of products in the Platform, with a products for
app robust support and ecosystem well- developed vehicles, real estate
stands investment service loyalty program and others
platform
out?
Sources Field 94
Field Research: digital banks| Appendix
Digital Banking Apps: our tests and
conclusions
Best rating when Impressive range Good Benefits Good financing

How does each BTG Digital results
in a more it comes to of products in the Platform, with a products for
app robust support and ecosystem well- developed vehicles, real estate
stands investment service loyalty program and others
platform
out?
Overall, they provide a very i) Integration with BTG
satisfying user experience and a Digital
wide range of products... ii) BTG makes acquisitions with enormous
agility;
...however, in the long term we manages to bring complementary services much more
easily;
believe BTG Digital stands out for
and it remains close to numerous technological initiatives that
some main may represent good options and competitive advantages in the
reasons medium term.
Competitors either do not have the

same firepower, or they are too
inert to do so
Sources Field 95
Mosaico: creating an ecosystem | Appendix
Value generation through an exceptional partnership: BTG &
Mosaico
Cash back service Client base
With BTG’s support, M osaico will expansion In order to have
be able to use the size and cashback service available,
expertise of its partner to offer M osaico’s clients must open
the cashback service a BTG+ account and
request a bank
More client retention card
CAC reduction
By offering cashback Those additional customers
services, M osaico expects to that BTG will gain from the
retain and monetize more partnership, will have a zero CAC
clients expenditure
More purchase Marketplace development

recurrence The partnership will
As clients receive also provide M osaico’s
cashbacks, they can services
spend it in other to BTG clients
products
Mosaico only receives

Customer Creates a card at BTG+ to a fee when the
uses receive cashback customer uses a BTG+ expands customer
bank service
marketplace base with acquisition cost
close to zero
Sources Company 96
Open Banking: Kinvo
BTG and XP are getting ready for Open

| Appendix
Banking
700 thousand
users R$120 bi in
What is behind these recent acquisitons?
wallets
consolidated
Acquired by in  The last stage of open banking - which

mar/21 will allow for better integration of
investments - scheduled for the end of
the year, according to the Central Bank's
schedule.
120 thousand users  Both BTG and XP anticipate the
R$ 12 bi in wallets movement and invest in businesses that
consolidated (sep/20) benefit from this change while
complement retail.
Acquired by in sep/ 20
Sources Valor 97
The startups bank | Appendix
BTG Pactual: the startups
bank
BTG Pactual How does BoostLAB meet both side needs Startup
simultaneously?
Side
Customer Base Expansion
Side
Boosting Business Expansion
By getting close to the initial stages of The chosen startup, can easily
these startups, BTG can offer initial boost their business with the
services to the company, such as credit support and resources of the
investment bank
Cross-selling with ECM and Broadening Horizons

DCM One of the strengths of boostLAB is
As these startups grows, they will the network that the startup will have
probably demand new services that access to, from top bank executives to
BTG can also offer, such as IPO’s and all kind
M&A’s advisory of investors
Equity Investment Opportunities Being the best
Although this is not the final objective, solution
BTG Pactual can invest in the company.
So far, the investment bank has made This group of startups does not
five deals attract large investment
banks, as they interested in
larger companies
Sources Company Filings, Social 98

Banco XP
Banco XP: A Threat to Traditional

Banks | Appendix
Banco XP main goal is to provide a full customer experience to It can compete with BTG’s DRU over AuC market share, but
its clients in a unified digital platform, trying to expand AuC. they have stronger common enemies right now, large
traditional banks.
Banco XP evolution
2021 Total AuC (R$ bn)
(2019) M ulti-
purpose
bank
authorization
Authorization to operate with
both commercial and
Cards
investment banking activities, agreement with
as a complement to its Visa
current products and
services. In March 2021,
Users credit and debit
cards will be
Experience
issued for XP
To improve client clients, with lower 1,959
retention, the fees than
platform will include M ain hires
traditional banks. 1,575
a marketplace and José Berenguer 1,293
cashbacks on some as the incumbent bank
purchases. chief, former CEO of
660
JPMorgan Brazil. 475
Gustavo Balassiano 205
as the corporate bank
chief, former Itaú BBA BTG Pactual XP Banco Ita Bradesc
Senior Office. Santander Inc do ú o
Brasil

Average revenue per client | Appendix
How much does an average digital client pays in fees and
interest?
Monthly TPV/Client: R$2100

Supposing an average custody of R$300k per
client
Interchange Fees: 1.1% (Avg. credit and debit)->
Custody (avg. fee): 0.5%-1.0% / R$23.1
year
Revolving: 1.5% of TPV
Interest Paid: 10% monthly
Interest: R$ 3.15
BTG Premium (optionality):
29,90
Paid in fees for the broker: Paid in fees, int. and additional
R$ 3000/ year or R$ 125 / services:
month R$26.5
Sources Our 100

Our ESG Index
Building Our ESG

| Appendix
Index
Sources Our Analysis, Companies Annual 101

Our ESG Index
Building Our ESG

| Appendix
Index

Our ESG Index
Our ESG Index: Environmental Criteria

| Appendix
Examples

Our ESG Index
Our ESG Index: Social Criteria

| Appendix
Examples

Our ESG Index
Our ESG Index: Governance Criteria

| Appendix
Examples

What does ESG Commitment | Appen
means?
dix
What does ESG Commitment
means?
Management recognizes materiality more
than the stakeholders themselves, with an
emphasis on data protection, integrity
and digital innovation
Stakeholders View
Ethics and compliance in all

relationships We also highlight
Cyber risks, security and data the practical
protection responsibility to
Integration of socio-environmental risk
with promote a greener
corporate risk management economy, with green
Diversity and inclusion of bonds and specialized
people
Innovation and technology driven by ETFs.
digital
transformation
Social responsibility actions and

private social investment
Human capital management
M anagement View

Field Research: Pérsio Arida
Our meeting with Pérsio

| Appendix
Arida
We had a call with Pérsio Arida, to understand in detail The conversation took place on March 15, and we contacted Persio
what the Partnership is like from the inside, and what with the help of FGV professors.
to expect from its future.
(All citations w ere authorized)
He told us about:
“In the long-run, the success of a Partnership depends on
 His career in the private sector, and a little bit of sticking to meritocracy. The problem is that there is no
relationships with BTG colleagues; purely objective evaluation of merit. The Partnership model
helps to avoid individual idiosyncrasies as all partners have
 The creation of BTG, and the purchase of Pactual; a voice in selecting new partners and electing the ones to
run it. It helps but does not ensure success. It is all about
 The origin of the bank's name; human capital. In the modern world, capital is not a
constraint.”
 The replacement of the partners who left and
how important this is for Partnership; "It is the only case in banking history that I know of in
which a bank suffers from a full-fledged bank run and
 The day-to-day life during the credibility crisis of survives without being bailed out by Central Bank or
2015. regulatory entities."
Sources Field 107

Better Than Goldman? | Appendix
Trade-off: maintaining the partnership model or going
public?
In the 80’s, american Investment Banks started to What followed for Goldman Sachs was a success:
dismantle their partnership culture when they went astronomic
public profit growth in the post-IPO decade
Goldman Sachs Net Income, US$ bn
IPO
Bear 13.4
198 Sterns
5 11.6
M organ A natural consequence was that the

198 Stanley started taking more bets and
bank 9.5
6 risk S&T Revenue CAGR:

Lehman 29%
199 Brothers
4 5.6
4.6
One exception remained 3.1 3

a partnership model: 2.7
2.3 2.1 2.3
IPO in 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
1999
Better Than Goldman? | Appendix
However, the GS partnership grew bloated. Is BTG destined to the
same?
Since the IPO in 1999, Goldman Sachs partnership has
lost its allure, and is now being forced to shrink “To make it special, it’s got to
feel
Partner’ like it’s a high-quality group of
# Profit/Partner people”
Profit
s Pool
Partners
“There has been some creep
1999 US$ 400 mn 220 US$ 1.8 mn over
time”
“Partners don’t retire”
2020 US$ 500 mn 550 US$ 0.9 mn
- As said by a GS employee
More than doubled its size, which
forced the CEO to take measures:
“Taps on the shoulder” are more

frequent, allowing for size
control

Management Description
Executives: The maximum representation of BTG strong

| Appendix
culture
Prize
Roberto
Esteves' right-hand man
Sallouti since the beginning of Banker of The Year
Chief Executive
Officer his trajectory 2018
Latin America
Bachelor of Economics
Board Member
at
Intern Partner COO CEO
1994 1998 2008 2015
20 years or more at BTG Pactual

Some members of the board of
directors
André Lopes Mariana Marcelo Iuri

Dias Cardoso Flora Rapoport
Executive CCO Executive Director Executive
Director Pactual Pactual since Pactual since Director Pactual
since 1997 1996 2000 since 1995
Sources Company 110

Shareholder’s Structure
BTG Pactual Shareholder’s

| Appendix
Structure
G7 Holding André 237

22.8 77.2
S.A. ON: Esteves ON: partners
% %
57.4% 42.5% ON:
PN: 0% PN: 19.3% 0.06%
PN:
BTG Pactual Holding S.A. 80.7%
25% | 100%
BTG Pactual
Free
Others Holding Financeira
Float
Ltda.
26.1%
73.9%
Sources Company 111

Industry Dynamics | Appendix
Industry
dynamics
Investment banks allow companies and investors to access
the
capital markets, besides taking care of other business needs
Simplified Dynamics
Investment
Nascent Banking Financial Opening and
Bank¹ industry in entry of foreign banks
Founded
ECM, DCM and M&A Financing and
Brazil
(Investment services
Banking) 80’s 90’s
70’s
Interest (CL)
Corporate Lending Fees (IB and 10’s 00’s
S&T) Companies
Technology allows Growth of the capital

Sales and Trading for Digital banks and markets (IPO wave 05-
Fintechs growth 07)
Management and 202
Asset Management
custody of their 1
assets
Fees (WM/AM)
Wealth Management Investors
Sources Our AnalysisMcKinsey; Middle-office and back-office areas, among others, were omitted for 112
IBD Quality: we proved it!
Investment Banking: incentive fees indicate the quality of

| Appendix
service
We calculated each bank’s average incentive fee for Yes. Companies discretionarely pay BTG more than they
the last 30 ECM deals: pay
other banks
Average Incentive Fees, Last 30 ECM deals as of March 3rd
Bank’s Economics
0.38% 0.39%
0.34%
Deal Incentive Fee Discretionary 0.29%
0.23%
Bank’s Incentive Fee

0.15%
Does BTG receives higher incentive

fees on average, which could
explain its industry leadership?
Citi Santander XP BBA BBI BT

BTG
G
Sources Our Analysis, Company 113

Sales and Trading: drivers | Appendix
Sales and
Trading
Sales and Trading revenues
We believe the growth of
IB are generated in two main
ways S&T
17% will be driven by
CL
20% Higher volume
1. Fees and commissions charged of transactions
for products and services linked to
various instruments and securities
offered
S& 2. Gains or losses from its trades with Solid relationship with
T these securities customers across the bank
39%
13% Equity Sales and

Operations are
A divided into
Trading Good use
11%
M two major Fixed Income, of
W segments Currency and volatility
M Revenue
breakdown
Commodities
(core segments
only)
Sources Company 114
Sales and Trading: risk appetite
Sales and Trading and Risk

| Appendix
Appetite
The risk-taking culture and the S&T expertise make BTG a Value at Risk shows us the most daring position of BTG,
bank which
with more diversified risks historically brought higher returns in relation to the others
Comparison of Risk Weighted Assets (RWA), 2020 BTG Value at Risk (%)
Credit Risk Operational Risk Market Risk
2.6% 1.6% 2.5% 1.16%

3.8%
8.7% 7.5% 8.8%
9.0%
18.4%
4.5%
0.74%
0.71%
BTG
87.2% 88.7% 90.8% 88.7%
77.1%
Operati ns are 0.30%

0.33%
o ntoo Industry
divided tw s average
i majorgmen
0.05% -0.40%
se t
BTG
BT Santander Itaú Bradesco Banco do Brasil 2015 2016 2017 2018 2019 2020
G
Sources Company 115

Asset Management positioning | Appendix
Asset
management
High exposure to the fastest growing class of funds: Contrary to the market trend, we observe positive inflows even
equity in
(29% CAGR 16-20) and hedge (10.1% CAGR 16-20) the declining fixed income class
AuM Fixed Hedge Others Assets Inflow Oct/19-Dec/20, R$ bn
Equity Pension
(R$ Income (Incl.
bn) Funds FIP)
Banco do Brasil 1173 64% 5% 3% 25% 3%
31.2
29.3 Fixed Income
Itaú Unibanco 752 48% 7% 19% 24% 2% CAGR (2018-
Funds
2020)
M arke -9.1%
Bradesco 529 43% 3% 10% 41% 2% t
+23.8%
Caixa 412 63% 6% 8% 22% 1%
15.4
Santander 295 55% 3% 21% 20% 1%
BTG Pactual 144 19% 19% 32% 1% 30% 10.5
Safr 106 41 8% 29% 2 5.7

a % 19% %
1.7
Credit 10 14 3% 5 9 0.7
Suisse 1 % 69% % %
Equit Hedge FI FIP Fixed Pension Outros
y Funds I Income
Sources Company 116

Credit: portfolio maturity
Corporate Lending
| Appendix
After a large sale of the credit portfolio in 2015, BTG has By having a longer maturity portfolio than most retail
done an excellent job recovering volume and market banks,
share BTG enjoys very decent yields
Corporate Lending Portfolio Volume, R$ bn Portfolio Maturity and Average Interest Rates
CAGR2016-20: Interest Rates, 10/02/21 - 18/02/21
280% 35% 78 43
1000 % %
Up to 6
800 months 40.1% 42.0%

53.7%
600 83.1%
6 to 12
months 20.6%
28.4%
400 10.7% 39.6%
28.8%
37.4%
200 2016 BTG Market 2020 19.9%
35.6%
2.6% Share 6.8 14.1%
More 31.5% 10.4%
%
than 12
6.5%
0 months
2016 2017 2018 2019 2020 Bradesco Ita BT
BTG Santander
ú G
Sources Company 117

SME: an attractive market | Appendix
SME Lending: operational advantages enable margin
gains
SME: default risk and difficulty of credit analysis limits ...enhancing the need to operate with alternative
banks’ strategies
lending appetite… coupled to the use of technology
Credit Balance by Company Size, R$ bn BTG+ business “Risco Sacado” strategy
SME Large Corporates
1035 BTG’s Large Owes Receivables Supplier
Corporate Client SME
Difficult credit 956
analysis Lack of
financial and operational
data Finances
them
729
695 BTG Assumes client’s cash flow as collateral. The
1benefits?
Reduced Default
552
Risk
2
501 Which, in turn, allows for lower
provisions
jan/12 jan/ 13 jan/14 jan/15 jan/16 jan/17 jan/18 jan/19 jan/20 jan/21
Low Provisions High Spreads Margin Gains
Sources Company 118

Unsecured Funding | Appendix
An even larger feedback cycle: investment and digital bank
synergies
Remember how unsecured funding allows for more Taking BTG+ by itself into account, we see significant flight
leverage to
because it’s cheaper and reduces credit risk? quality regarding funding volume
Unsecured Funding Base, R$ bn BTG+ Loan Book, R$ bn
15.6
2018 45,1
11.7
8.7
2019
2020 surge was
53,6
pushed by the DRU
4.8
1.9
0.2
2020 107,2
2020 2021E 2022E 2023E 2024E 2025E
Demand Time Securities Corporate Lending Division: directly benefited

deposits deposits Issued
+350%, 2020 +178,7%, 2020 +70,4%, 2020 Cheaper Funding = Better Spreads
Diversified Funding = Lower Credit Risk
BTG+ and BTG Digital Investment Banking Division: indirectly benefited

directly
influenced past year growth A larger CL Portfolio strengthens BTG’s relation with the
industry generating more mandates
Sources Company 119

Latin America Expansion | Appendix
LatAm
operations LatAm (exc. Brazil) ECM market and BTG market
share
Transactions Volume, R$ bn Mkt.
40% Share 40%
Colombia – since 20.8

30%
2012 14.6
27%
Bolsa y Renta 9.9 9.7

(broker) purchase 16%
Might get its 11%
7.0 4.2
banking license 9%
until 2H21 3.4
2013 2014 2015 2016 2017 2018 2019
Companies mkt. cap to GDP,

2019
72.2%
64.5%
Chile – since 2012

43.6%
Celfin (broker) purchase 40.8%
Has every license to operate as

a complete Investment bank 8.8%
Argentina Colombia Peru Brazil Chile
Sources Field Research, Company Filings, World 120

Latin America Expansion | Appendix
LatAm
operations
Key LatAm operation numbers
Colombia – since
2012
Bolsa y Renta
1 ~15% of loan
(broker) purchase
Might get its book
banking license 2 ~586 employees,
until 2H21
3Q20
3 ROE:
Chile ~15 – 17%
Colombia ~10 – 15%
Chile – since 2012 Talking to employees from chile and colombia, we
Celfin (broker) purchase had a clear vision: BTG follows the same path it
traced in Brazil, in markets similar to what Brazil
Has every license to operate as was a few years ago. It becomes easier then to
a complete Investment bank apply a well-defined tactic, and this gives us
confidence in the success of the expansion.
Sources Field Research, Company 121

Banco Pan
Banco Pan’s Synergy with BTG

Pactual | Appendix
BTG exchange top managers with Banco Pan, trying to Banco Pan complements BTG Pactual’s strategy,
replicate the partnership program success. providing
exposure to low-income retail, with a huge TAM
Ownership structure
Income classes synergy
Free-float
A High
Incom
e
44,9% 26,8% 28,3%
focus
B
Low
C Incom
e
focus
90% of Unbanked
Amos Genish, Chairman (Head of BTG’s
the D people:
population 50
Board DRU)
members
million
Roberto Sallouti (CEO of
nominated by
BTG Pactual BTG) Sérgio Cutolo
Alexandre Camara
E

Banco Pan
Growing Credit
Operation | Appendix
Pan’s revenues rely mostly on two retail businesses, but it More than 80% of Banco Pan’s origination comes from the
already social security retirees (INSS) niche, that should expand as
has a solid track-record in both operations population ages
Loan Book Origination 2030E Brazilian Demographic Pyramid
Payroll Loans Vehicles 90+
In this niche, Pan (5% market 80-84

the five large share) focuses on
banks hold used vehicles 70-74
78% Market and new
52 39%
share, while motorcycles,
% Pan has 3%, operating
60-64
focused on through
third-party dealerships. 50-54
brokers.
40-44
30-34
Credit Cards
6% 20-24
Pan has a small
market share (1%),
but a growing 10-14
portfolio. It operates
via digital 0-4
distribution and
partnerships. Women Men

Banco Pan
Ready-to-Scale Digital
Bank | Appendix
Banco Pan has launched its digital platform in early 2019, and The digital platform has already been responsible for a increase
currently operates in an omnichannel structure focused on in
B2B loan origination, due to reduced costs and better fraud
prevention
Omnichannel structure
Average Monthly Credit Origination
Financial 15 thousand 424

Services Dealerships
307
269 258 470

Credit and 459
Debit
770 342 34
7
Correspondents
Investments
1127
842 838 940
46
Insuranc Digital partners
e 201 201 2019 9M20
7 8
Vehicle Credit
Payroll s Card
Sources Company 124

Banco Pan
Banco Pan
Competition | Appendix
Banco Pan has an edge over other major players, since it does Credit should remain the main client retention tool, a product
not depend on some threatened fee-based income streams in
which Banco Pan has more expertise than any competitor
Fee-based industry comparison
Revenue Digital Banks industry comparison Number
% of Total Main Products Revenue Core
from fees in of Products
(2019)
2019 Revenue (fee- Clients (total)
based) R$ 4,5 bn 6 mn Payroll, Auto
Loans,
R$ 0,4 bn 9%
Credit Credit Card
Operations, Credit Card,
Credit Cards R$ 1,0 7 Investments,
bn mn M ortgage
Cards,
28%
R$ 19 bn
Current Credit Card,
Account R$ 188 3 mn Investments,
Cards, Current mn Current Account
R$ 34 bn 31% Account,
Asset $ 2,8 30 mn Credit
Management bn Card
34% Current
R$ 30 bn Credit Card,
Account, Asset R$ 2,0 3,5
Account Current
Management bn mn
Account
R$ 2,0 bn 27%
Cards,
Current
Sources Company 125

Too Seguros
Too Seguros: A Good Cross Sell

| Appendix
Optionality
Though insurance should not be BTG’s main strategy, Too After 2018 Pan Seguros rebranding, in an attempt to optimize
Seguros its
may leverage the bank’s growth by diversifying its products pool portfolio and reduce costs, Too has shown higher ROE
Insurance
Too Seguros results
Products
Once called Pan Seguros, a
segment of Banco Pan, Too Vehicles
Seguros is an insurance Life
company that provides its 28%
products through partners’ Home equity 26%
retail channels. Financial
16% 500 51
14% 3
40
345 1
Sold Pan Seguros operation in Owns 51% of Too Seguros.
2014 to focus on credit services. 17
DRU have synergies To 15
Still have a deal with Too Seguros 107 118 4
with Seguros, as it may o 1
to provide insurance in its digital
platform. complementary products. offe
r 2017 2018 2019 3Q LTM
Offering credit is Banco Pan main In this sense, BTG may have an
strength, but increasing cross-sell optionality to create an one-stop- Revenue (R$ Net Profit (R$ RoE
in insurance may be a hidden shop platform. mm) mm) (%)
opportunity.
Sources Company 126

Principal Investments
Principal Investments: slow exit

| Appendix
outlook
Two assets, opportunistically acquired by BTG, account for We expect BTG to be dilluted with time, with revenues
most of Principal Investment revenues associated
losing relevance in the big picture of the bank
BTG’s Principal Investments revenues
BTG acquired a 50% stake from Petrobras in 2013
Principal Investments % of total
revenue revenues
Company owns energy assets in Africa, mostly Nigeria
15.5%
Cash flows hedged from oil-price fluctuations
12.9%
R$2,5bn book value
8.2%
5.7%
4.9%
4.1%
Loan receivables converted into 50% stake in 2015, curently at 23%
2.3%
1.6%
0.3%
Integrated power generation company using natural gas 1,290
Succesful turnaround, reaching R$1bn profit in 2020, 48% CAGR from 2015
691 730
603 607 587
375
R$4,3bn market value, booked at R$3,7bn 302
1
5
201 201 201 2020 2021 2022E 2023E 2024E 2025E
7 8 9 E
Sources Company 127

Income Statement | Appendix
Summarized Income
Statement
Sources Our 128

Revenue Breakdown | Appendix
Revenue Breakdown 2020 2021E 2022E 2023E 2024E 2025E
Total Revenue 9.928,7 12.306,1 15.161,0 18.379,0 21.822,5 26.110,4
Core-Business 7.898,1 8.901,2 10.183,4 11.686,7 13.394,0 15.465,8
% of total 80% 72% 67% 64% 61% 59%
Investment Banking [R$ mi] 1.327 1.504 1.601 1.709 1.865 2.002
% of total 13% 12% 11% 9% 9% 8%
Corporate Lending (Ex-SME) [R$ mi] 1.591 1.872 2.269 2.723 3.307 3.990
% of total 16% 15% 15% 15% 15% 15%
Sales & Trading [R$ mi] 3.117 2.844 3.110 3.421 3.638 4.013
% of total 31% 23% 21% 19% 17% 15%
Asset Management [R$ mi] 1.013 1.659 1.973 2.358 2.817 3.346
% of total 10% 13% 13% 13% 13% 13%
Wealth Management (excluding BTG Pactual D [R$ mi] 850 1.023 1.230 1.476 1.768 2.115
% of total 9% 8% 8% 8% 8% 8%
Digital Retail Unit (Ex-Pan and Too) 625,2 1.801,5 2.849,0 4.110,5 5.634,3 7.482,9
BTG Digital [R$ mi] 290 650 1.062 1.613 2.320 3.211
% of total 3% 5% 7% 9% 11% 12%
BTG+ Business [R$ mi] 303 733 986 1.308 1.723 2.242
% of total 3% 6% 7% 7% 8% 9%
BTG+ [R$ mi] 33 419 801 1.190 1.591 2.030
% of total 0% 3% 5% 6% 7% 8%
Others 1.405,4 1.603,3 2.128,6 2.581,8 2.794,2 3.161,7

Participations 730 603 607 587 375 302
% of total 7% 5% 4% 3% 2% 1%
Interest and other 313 548 971 1.325 1.605 1.869
% of total 3% 4% 6% 7% 7% 7%
Principal investments 362 453 550 670 814 991
% of total 4% 4% 4% 4% 4% 4%
Sources Our 129

Investment Banking | Appendix
Our Investment Banking Division
Forecasts
Sources Our 130

Corporate Lending | Appendix
Our Corporate Lending
Forecasts
From the Spread ICC data of the

Banking Economics Report (BCB), we
estimate a ratio between the Yield of
SMEs and that of Large companies of
2.55x
It decreases as competition and

credit supply increase
Sources Our 131

Sales and Trading | Appendix
Our Sales and Trading
Forecasts
We followed the bank's Guidance, from 1Q20, for a quarterly average revenue between R$ 450
and
800 million.
We grow revenue annually at the Equity growth rate minus a 4.5% discount.
We did this because we believe that VaR will be reduced in proportion to Equity, with expansion
to retail, and thus the returns of the Sales and Trading division will not grow in proportion to
Equity.
We are aware, however, that it is an area of difficult predictability.
Sources Our 132

Asset Management | Appendix
Our Asset Management
Forecasts
Sources Our 133

Asset Management | Appendix
Our Asset Management
Forecasts
Obs: all fees are after rebate
Sources Our 134

BTG+ | Appendix
Our BTG+
Forecasts
Sources Our 135

BTG Digital | Appendix
Our BTG Digital
Forecasts
Sources Our 136

BTG Digital | Appendix
Our BTG Digital
Forecasts
Sources Our 137

Banco Pan | Appendix
Banco
Pan
Banco Pan 2020 2021E 2022E 2023E 2024E 2025E
Income Statement (Highlights)
Net Interest Income [R$ mi] 5.368,1 5.977,2 6.885,6 7.971,8 9.265,9 10.806,9
Provision for Loan Losses [R$ mi] (1.431,4) (1.905,2) (2.194,7) (2.540,9) (2.953,4) (3.444,6)
Other Operating Income [R$ mi] 482,3 514,0 547,7 583,7 622,1 663,0
Administrative Expenses [R$ mi] (2.950,9) (3.273,4) (3.633,2) (4.047,0) (4.518,6) (5.053,9)
Other Expenses [R$ mi] 888,0 791,0 1.030,8 1.335,6 1.713,3 2.184,5
Operational Result [R$ mi] 888,0 791,0 1.030,8 1.335,6 1.713,3 2.184,5
Net Income [R$ mi] 655,6 522,1 680,4 881,5 1.130,8 1.441,8
Net Margin [%] 12,2% 8,7% 9,9% 11,1% 12,2% 13,3%
Loans [R$ mi] 28.907,5 33.073,2 38.100,0 44.110,2 51.270,5 59.797,4

Vehicle Financing [R$ mi] 11.140 13.034 15.249 17.842 20.875 24.424
Payroll Loans [R$ mi] 15.129 17.096 19.319 21.830 24.668 27.875
Credit Card [R$ mi] 1.772 2.357 3.135 4.170 5.546 7.376
Others [R$ mi] 866 586 397 269 182 123
Sources Our 138

Balance Sheet Ratios | Appendix
Key
Ratios
Reported Balance Sheet Ratios 2020 2021E 2022E 2023E 2024E 2025E
Assets BRL mn 251.393 298.399 328.922 388.681 462.802 548.247
Expanded Credit Portfolio 73.700 89.563 109.740 135.284 168.895 209.709
YoY 68,3% 21,5% 22,5% 23,3% 24,8% 24,2%
Assets - Expanded Credit Portfolio 177.693 208.836 219.182 253.397 293.906 338.538
YoY 21% 18% 5% 16% 16% 15%
Equity BRL mn 26.681 30.382 34.593 39.611 43.904 50.403

ROE annualized 17,6% 18,7% 20,8% 22,6% 24,2% 25,9%
ROA annualized 1,9% 1,9% 2,2% 2,3% 2,4% 2,4%
Asset / Equity 9,2x 9,8x 9,5x 9,8x 10,5x 10,9x
RWA BRL mn 156.914 190.688 233.646 288.032 359.594 446.491
Capital tier I BRL mn 22.088 28.360 36.381 46.378 58.180 71.748

Common equity tier I BRL mn 21.710
Additional tier I BRL mn 377
Deductions BRL mn -
Capital tier II BRL mn 4.045 4.045 4.045 4.045 4.045 4.045
Deductions BRL mn
Reference equity BRL mn 26.133 32.405 40.426 50.423 62.225 75.793
Basel ratio 16,7% 17,0% 17,3% 17,5% 17,3% 17,0%

Tier I 14,1% 14,9% 15,6% 16,1% 16,2% 16,1%
Tier II 2,6% 2,1% 1,7% 1,4% 1,1% 0,9%
Sources Our 139

Core Valuation - DDM | Appendix
Core Valuation -
DDM
Obs, included Business Units are: Investment Banking, Corporate Lending, S&T, Asset and Wealth Management
Sources Our 140

AM and PB modelling rationale | Appendix
Asset Management and Private Banking modelling
rationale
We forecast an Asset Management portfolio similar to Due to intense competition for custody in Private Banking,
the current one, with average annual NNM/AuM close we
to 15% maintain BTG's current Market Share for years to come
AuM (R$ AuA (R$ Net New Money (R$ Bn)
Bn) Bn)
19,8% CAGR AuA + AuM 337.7 15,2% CAGR 390.6
AuA ROA : 0,01% Brazilian

Private Banking 339.0
289.0
AuM ROA : 0,87% Volume
294.3
247.8
255.4
202.8 221.7
404.0
165.8 192.4
338.1
134.7 12,9% PB Mkt Share
282.7
232.1
192.8
165.5
94.1 0.44% 0.44% 0.44% 0.44% 0.44% 0.44%
87.0 79.6
63.7 60.0 71.7
2020 2021E 2022E 2023E 2024E 2025E 2020 2021E 2022E 2023E 2024E 2025E
Sources Our 141

BTG+ Business
BTG+
| Appendix
Business
BTG+ business yields BTG+ business: a high-spread, low-provision strategy that
assumptions: will
account for 24% of the portfolio by 2024
SME Portfolio Volume and Revenue, R$ bn
SM E Portfolio Volume SM E Lending Revenue 24% of
CL 2 .5
Portfolio
Avg. SME 2.6x (net of
2.3
Yields Large Corporate provisions)
50.8
1.8
37.3
1.3
Our Assumptions
for: 1.0 26.8
2.5%
Large Corporate 0.7
19.3
SME Yields:
Yields: 2.5 2.6 = 9.5
13.7
% 6.4% 0.3
2020 2021E 2022E 2023E 2024E 2025E

Equity value | Appendix
Valuation and returns: equity
value
Business Units Equity Value, R$ Business Units Share Value,
bn R$
92.1 101.9
15.9 15.5 17.6 17.1
8.6 9.5
6.1 6.8
1.2 1.4
Core BTG BTG+ BTG+ Pan Too Seguros Core BTG BTG+ BTG+ Pan Too Seguros
Digital Business Digital Business
Sources Our 143
Implied and Exit Multilpes | Appendix
Valuation and returns: Implied Multiples and Exit Multiples
(IRR)
Implied Multiples on our SOTP Consolidated Units
valuation IRR
2021 2022E 2023E 2024E 2025E
1
Cash flows = Dividends +
E
Target Price (final year)
68x 68x
IRR Exit P/E

35% 16x 17x 18x 19x 20x
48x
2021 -4.8% 1.1% 6.9% 12.7% 18.5%

40x
36x
2022 11.1% 14.4% 17.6% 20.7% 23.7%
Exit
27x
25x 24x 2023 16.0% 18.3% 20.5% 22.6% 24.6%
21x 20x Year
18x
17x
15x 15x 15x
13x 11x 11x 2024 17.8% 19.5% 21.1% 22.7% 24.2%
11x
9x
2025 19.1% 20.5% 21.8% 23.0% 24.2%
Core BTG BTG+ BTG+

Digital business
Sources Our 144

Justified Price/Book Value | Appendix
Justified Price/Book
Value
Considering the high return on
ROE - g In perpetuity, we assume: equity and growth perspective for
Fair P/B g = 7% ROE = 17.5% Ke = the medium term, compared to our
= Ke - g
11.92%, perpetuity assumptions, our
which gives Fair P/BV = 2.13x Justified P/BV brings a great sanity
check for
our SOTP valuation
Our Price to Book Multiples Forecast for
BPAC11
3.2x
3.0x 3.0x
2.7x
2.3x
2.1x 2.1x
1. 8x
2019 2020 2021 2022 2023 2024 2025
P/BV Justified
P/BV
Sources Our 145

Sanity check on P/BV | Appendix
A sanity check from our multiples
analysis
Fwd
12.0
2021
XP
BIDI1
1
10.0
STNE
8.0 LPLA
P/ BV 6.0
y = 0.1422x + 1.6132 What if BTG was on the
regression line?
4.0
It should trade at 4.22x P/BV
BPAC1 then, an even higher multiple
SCHW
1
Challenger than our
JPM ITUB
2.0
4 SANB1 Incumbent implied 4.2x
MS 1
UBS GS
BAC BBDC4 It is clearly not a rigorous
CS
0.0 analysis, but it brings
2.0 7.0 12.0 17.0 22.0 27.0 32.0 37.0 confidence to our
numbers!
ROE,
%
Sources Our 146

Sensitivity Analysis | Appendix
Sensitivity
analysis
How sensitive is our valuation?
g Payout on perpetuity
52,0% 5,0% 6,0% 7,0% 7,5% 8,0% 60,0% 70,0% 80,0%
52% 40,0% 50,0%
10,92% 58% 72% 94% 110% 131% 10,92% 59% 77% 94% 112% 129%
11,42% 42% 54% 71% 83% 98% 11,42% 41% 56% 71% 86% 100%
Ke 11,92% 29% 38% 52% 61% 72% Ke 11,92% 26% 39% 52% 65% 77%
12,42% 18% 26% 37% 44% 53% 12,42% 15% 26% 37% 48% 59%
12,92% 9% 15% 24% 30% 37% 12,92% 5% 14% 24% 34% 44%
BUY recommendation
stands for multiple
scenarios

Sensitivity Analysis | Appendix
Leverage x SME sensitivity
analysis
How sensitive is our valuation?
Leverage
52% 3,11x 3,61x 4,11x 4,61x 5,11x
33,9% 45% 49% 53% 57% 61%
SME 28,9% 44% 48% 52% 57% 61%
(% of lending) 23,9% 44% 48% 52% 56% 60%
18,9% 44% 48% 51% 55% 59%
13,9% 43% 47% 51% 55% 59%

Risks to our valuation | Appendix
Economic uncertainty is the biggest threat to our
theses
What can unsettle
our perspectives?
Risks matrix
Market Risks
M1 Unstable macroeconomic scenario due to the Covid-19
Probability
pandemic
M M2 Political and legislative issues can suffer turbulence

1
Company Risks
M2
C1 Difficulty of raising significant unsecured funding
D C2 The success of the AM and WM areas can be over-conditioned to
the
1 performance of the products
C C3 New issues regarding the bank's credibility can affect the valuation
1
Competition Dynamics Risks
D1 Abrupt changes in the competitive dynamics of credit or wealth
C2 D2 management can happen
C3 D2 Major banks may have a successful strategy in avoiding the
expansion of challengers
Impac
t
Sources Our 149

1.+FGV MCACapital Final Brasil

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MCA Capital

Gab riel Gral | P ed ro Jank | Rafael

Core 2020 Revenue Digital Retail

Underdeveloped capital markets are filling space left by public

United Kingdom 8% 77.5 71.9

Underdeveloped capital markets are filling space left by public

Sources McKinsey, Anbima,

Wholesale focus provides BTG with expertise and operational

Wholesale focus provides BTG with expertise and operational

A smaller credit portfolio highlights a higher-quality

Sources Dealogic, Company Corporate Lending Portfolio Volume

A smaller credit portfolio highlights a higher-quality

15 200 2016 BTG Market 2020

Sources Dealogic, Company Corporate Lending Portfolio Volume

Corporate Lending: more leverage and higher

BTG assumes client’s cash flow as

Corporate Lending: more leverage and higher

R$ 53.6 bn R$ 107.2 bn Finances the

BTG assumes client’s cash flow as collateral. The

Time and demand deposits = Diversified base

Greater volume and sophistication mark this new

As for BTG, AUM is being driven by

2017 2018 2019 2020

Asset Class Distribution by Segment,

Cash/"Poupança" Marketable Securities Structured Fuds/ETF Investment

Sources Anbima, Company

Asset Class Distribution by Segment, 2020

M ore than 15 awards

Traditional Retail 69.6% 17.0%

Sources Anbima, Company

Private Banking Private Banking 15%

778 Badly served by traditional “Rouba

Sources Anbima, Company Filings, Valor Econômico, Brazil

868 High Income Retail

Sources Anbima, Company Filings, Valor Econômico, Brazil

868 High Income Retail

Independent Financial Advisors suit clients’ needs better than

IFAs provide closer advisoy

Independent Financial Advisors suit clients’ needs better than

IFAs: a central expansion pillar, hampered by

2017 2018 2019 2020 2021

IFAs: a central expansion pillar, hampered by

Brazil is likely to experience

A unique value proposition to catch the big

BTG tackles the IFA office’s will to become a broker

1 White-Label Broker as a Service infrastructure

Sources Brazil Journal, Valor

Who can best tell us about competition for offices? IFAs

Who can best tell us about competition for offices? IFAs

BTG's weapon: attracting sophisticated

demands Service Cross-sell

BTG's weapon: attracting sophisticated

BTG's weapon: attracting sophisticated

Much greater Concentrate a large

BTG's weapon: attracting sophisticated

Which player stands out when it comes to product and

The product portfolio is quite XP is still slightly ahead in tech,

Relationships: open channel between advisors and bank

| Conversation happened on 05/03

“BTG is very humble in hearing suggestions to

Access to the investment bank allows for a distinct value

Fernando, from BlackBridge, told us of a case in

“ I'm taking a client to the