Innovation and technology Bradesco - 2014 RI

Mauricio Minas - Executive Vice President

Challenging Environment

Source: Economic and Financial Analysis Report – 3Q/2014

MARKET VALUE: R$ 146,504 Million

92,741 Points ofService

49,020Correspondents

4,659Branches

13Countries

PRESENCE IN 100% OF BRAZILIAN CITIES

WHOLESALE BANKR$ 444,195 Million in Credit

R$ 486,941 Million in AssetsInvestment bank

PRIVATE BANK11 OfficesData Center: Luxemburgo

CONSUMER FINANCING R$ 95,294 Million in Credit

CARDSCAGR 2012/16 18%

2014 3Q RevenueR$ 33,208 Million118,7 Million cards issued

INSURANCER$ 12,904 Million Revenue

23,4% Market Share Leadership

RETAIL BANKR$ 987,364 Million in Assets

79.5 MillionClients

1

CRM

Focus on the Product Customer Experience

DIGITAL CHANNELSCONVENIENCE AND

USABILITY

PHYSICAL CHANNELSBRANCHES/BRADESCO

EXPRESSO

MULTICHANNEL

EXPERIENCE

90%of the transactions 10% of the transactions

Customer Experience

2

3

Customer

Experience

Data Analysis Research and

Development

Digital

Relationship and

Customized

Multichannel

IntegrationOffering, Information

and Sale

Physical

Relationship Channel - Evolution of CustomerExperience

90%89%

21%17%

28%28%

23%

20%

11%22%

5%5%

6%5%

3% 2%2% 2%

Oct/13 Oct/14

Branches

Bradesco Expresso

Bradesco Celular (Mobile)

Internet Banking PF

COSTS BASE 100

Branches 100 R$ 2.78

Telebanco – Customized. 68 R$ 1.88

Autoatendimento(Self Service Banking)

45 R$ 1.25

Bradesco Expresso 32 R$ 0.89

Net Empresa PJ 6 R$ 0.18

Internet Banking PF 5 R$ 0.15

Bradesco Celular (Mobile) 4 R$ 0.11

Telebanco URA – IVR (Interactive Voice Response)

3 R$ 0.08

Average Cost, ABC Costing. Source: DOM

+1.5 p.p.

Autoatendimento

Telebanco (Customized)Telebanco URA

107 Million of

Transactions

Internet Banking PJ

49%45%

Distribution of Transactions in the Bank

4

sep/08 sep/10 sep/12 sep/14 sep/08 sep/10 sep/12 sep/14

Transactions Active users - individuals

CUSTOMERS ARE NOW

CHOOSING MOBILITY

3.1Thousand

1.2 Billion

168 Thousand

4.9Million

• Available at the customer’s hand

• All social classes

• Focus on usability • Free access

Relationship channels

5

Value innovation to the customer

CLOSED

INNOVATION

• Processes

• Methods

• Executive Agenda

• Innovation parks

OPEN

INNOVATION

• Universities

• inovaBRA

• Entrepreneurs

• Startups

• Innovation

Communities

Innovation

Strategic focus

6

7

New Experiences

MobileServices

New Technologies

NewBusiness models

▪ Espaço Villa Lobos

▪ Real Time Deposit

▪ Mobile Check Deposit

▪ Google Glass

▪ b∙wallet

▪ Bradesco Next

Mobile Bank and ATM

Assertiveness in offerings via CRM (Sales Force Automation)45%

Reduction of operational activities25%

Agility in conception and development of new products

50% to70%

Reduction in development costs with the reuse of components

20%

CLIENT’S VIEW

Able to respond properly to the company

OPERATIONAL

EFFICIENCYBusiness processes and back office activities

TIME TO MARKET

Agility in developing products and services

SAVINGS

Development and Maintenance

8

Systems

Architecture

System Architecture

Systems architecture

8

CLIENT’S VIEW

Able to respond properly to the company

OPERATIONAL

EFFICIENCYBusiness processes and back office activities

TIME TO MARKET

Agility in developing products and services

SAVINGS

Development and Maintenance

8

Developed

90% 92%

set/14 dec/14

42% 48%

set/14 dec/14

ImplementedSystems

Architecture

System Architecture

Systems architecture

9

3,929

4,2424,427

2012 2013 2014

GROWTH

Systems architecture impact

BusinessVolume

Costs260,1

282,7

301,3

IT investments12.7%

Volume of transactions 15.9%

IT investments Volume of Transactions(Daily average in Millions)(R$ Millions)

Operational Efficiency

IT Efficiency

10

DEC 2015

Structural

Back office

Branches

Products

100%

74%

71%

46%

75%

DEC 201448%

SET 201442%

Operational Efficiency

Evolution of full use of systems architecture

11

40,8%

41,7%

42,5%

40,9%

42,1%

42,9%

42,5%

40,1%

38,6%

2Q12 3Q 4Q 1Q13 2Q 3Q 4Q 1Q14 2Q14

Quarterly CTI

Business Volume

Costs

Operational Efficiency

Systems architecture impact

12