2q14 institutional presentation

Institutional PresentationInstitutional Presentation 2Q14

Profile and History

Pine

History

Business Strategy

Competitive Landscape

Focus Always on the Client

Corporate Credit

FICC

Pine Investimentos

Summary

2/31Investor Relations | 2Q14 |

Pine Investimentos

Rating Upgrades

Highlights and Results

Corporate Governance and PINE4

Organizational Structure

Corporate Governance

Committees

PINE4

Social Investment and Responsibility

Profile and History

PineSpecialized in providing financial solutions for large clients…

Credit Portfolio by Annual Client Revenues

June 30th, 2014

Over R$2 billion44%

R$500 million to R$2 billion

R$250million to R$500 million

12%

Up to R$250 million

6%


Profile

Focused on establishing long-term relationships

Profound knowledge and product penetration

Business is structured along three primary business lines:

• Corporate Credit: credit and financing products

• FICC: instruments for hedging and riskmanagement

• Pine Investimentos: Capital Markets, FinancialAdvisory, Project & Structured Finance andResearch

R$2 billion38%

801 827 825

867

1,015

1,220 1,272 1,270

...with extensive knowledge of Brazil’s corporate credit cycle.

History

1939Pinheiro Family

foundsBanco Central do

Nordeste

1975Noberto Pinheiro becomes one of

End of 2007Focus on expanding the Corporate Banking franchise

Discontinuation of the payroll-deductible loan business

May, 2007Creation of Pine Investimentos products line and

opening of the Cayman branch

2005Noberto Pinheiro becomes Pine’s sole

shareholder

October, 2007Beginning of the FICC Business

October, 2011Subscription of Pine’s capital by DEG

August, 2012 Subscription of Pine’s capital by DEG, Proparco, Controlling Shareholder and Management

November, 2012Opening of the broker dealer in New York, Pine Securities USA LLC


155 184 222 341 521 620 755 663 761 1,214

2,854 3,108

4,195

5,763

6,963

7,911

9,920 10,032

18 62

121 126 140 136 152 171 209

335

Dec-

97

Dec-

98

Dec-

99

Dec-

00

Dec-

01

Dec-

02

Dec-

03

Dec-

04

Dec-

05

Dec-

06

Dec-

07

Dec-

08

Dec-

09

Dec-

10

Dec-

11

Dec-

12

Dec-

13

Jun-1

4

Corporate Credit Portfolio (R$ Million)

Shareholders' Equity (R$ Million)

1997Noberto and Nelson Pinheiro sell their stake in BMC and

found Pine

becomes one of BMC’s controlling

shareholders

Devaluationof the real

Nasdaq Sept. 11 Brazilian Elections

(Lula)

SubprimeAsian Crisis

Russian Crisis

European Community

shareholder

March, 2007

IPO

May, 2014

17 years

Business Strategy

Competitive LandscapePine serves a niche market of companies with few options for banks.

100% Corporate

Large Multi-Services banks

Market

Consolidation of the banking sector has decreasedthe supply of credit lines and financial instrumentsfor corporate

Foreign banks are in a deleveraging process

PINE

Full service Bank – Credit, Hedging, and Investment


100% focused on providing complete service to companies, offering customized products

Corporate & SME

SME & Retail

Retail

Full service Bank – Credit, Hedging, and InvestmentBank products – with room for growth

~10 clients per officer

Competitive Advantages:

� Focus

� Fast response: Strong relationship withclients, with the credit committee meetingtwice a week and response times to clients ofno more than one week

� Specialized services

� Tailor-made solutions

� Product diversity

Foreign and Investment Banks

Focus Always on the ClientStrategy of product diversity, tailored to meet the needs of each individual client.

Working Capit

CDIs

OverdraftAccounts

Fixed Income

Currencies

Commodities

Equities

CDBs

CDs

RDBs

LCAs

LCIs

DebenturesCRIs

CCBs

Eurobonds

PrivatePlacements

Financial Letters

TreasuryDistribution

Capital Markets

Financial Advisory

Local Currency

Foreign Currency

Pricing of Assets and Liabilities

LiquidityManagement

Trading

Local Currency

Working CapitalUnderwriting


BankGuarantees

Exclusive Funds

Portfolio Management

Swap NDFsStructured Swaps

BNDES Onlending

Bank Guarantees

Compror

ACC/ACE

Export Finance

Finimp

Lettersof Credit

2,770 onlending

Accounts

Syndicated andStructured Loans

ClientsCorporate

Credit

FICC

PineInvestimentos

Capital Markets

Financial Advisory

Fixed Income Currencies

Commodities

Local Currency

Onlending

Foreign Currency

Trade FinanceParticipation

Funds

Options

Corporate & Structured

Finance

M&A

Project Finance

StructuredFinance

Private Credit Funds

Real Estate Funds

Rural Credits

AircraftFinancing

Investment Management

In addition to the

headquarters located in the

city of São Paulo, Pine has 11

branches throughout Brazil, in

the States of Ceará, Mato

Grosso, Minas Gerais, Paraná,

Pernambuco, Rio de Janeiro,

Rio Grande do Sul, and

São Paulo. The origination

network Also counts with a

Cayman Branch and a broker

dealer in New York (USA).

Corporate Credit

Actions Credit Committee

Strong track record and solid credit origination and approval process.

Meets twice a week – reviewing 20 proposals on average

Minimum quorum: 4 members - attendance of CEO orChairman is mandatory

Members:

Chairman of the Board

CEO

Chief Operating Officer

Chief Administrative Officer

Chief Risk Officer

Personalized and agile service, working closely withclients and keeping a low client to account officer ratio:each officer handles ~10 economic groups

Geographic coverage of clients, providing the bank withlocal and extremely up-to-date credit intelligence andinformation

Established long term relationships with more than 600economic groups

Origination network is comprised of 11 branches dividedinto 14 origination platforms in Brazil’s major economiccenters


Credit Approval: Electronic Process

Origination OfficersOrigination Officers

Credit origination Credit analysis, visit to clients, data updates, interaction with internal

research team

Credit AnalystsCredit AnalystsRegional Heads of

Origination and Credit Analysis

Regional Heads of Origination and Credit

Analysis

Presentation to the Credit Committee

CRO, Executive Directors and Analysts

of Credit

CRO, Executive Directors and Analysts

of Credit

Centralized and unanimous decision making process

CREDIT COMMITTEE CREDIT COMMITTEE

Chief Risk Officer

Participants:

FICC Executive Director

Credit Analysts

Other members of the Corporate Banking origination team

centers

More than 30 credit analysts, assuring that analysis isfundamentally driven and based on industry-specificintelligence

Efficient loan and collateral processes, documentation,and controls, which has resulted in a low NPL track record

Discussion on sizing, collateral, structure etc.

Commodities

Fixed Income4%

Currencies90%

5,891 11,090 11,148 11,268 14,382

248

530

327

482

354

298

(195)(310)

(243)

(532)

Notional value

MtM

Stressed MtM

June 30th, 2014 R$ million

FICCProven trackrecord: 2nd in commodity derivatives1.

Client Notional Derivatives by Market Notional Value and MtM


Commodities6%

Jun-13 Sept-13 Dec-13 Mar-14 Jun-14

Market Segments Portfolio Profile

1Source: Cetip Report, June 2014

Scenario on June, 30:

Duration: 149 days

Mark-to-Market : R$354 million

Stress Scenario (Dollar: +31% and Commodities Prices: -30%):

Stressed MtM: (R$532 million)

Fixed Income: Fixed, Floating, Inflation, Libor

Currencies: Dollar, Euro, Yen, Pound, Canadian Dollar,Australian Dollar

Commodities: Sugar, Soybean (Grain, Meal and Oil), Corn,Cotton, Metals, Energy

R$300,000,000

January, 2014

Coordinator

Pine Investimentos

Selected Transactions

Consolidation, result of the focused effort through the years despite the capital market cycles.

Promissory Note

R$300,000,000

February, 2014

Debentures

Coordinator

R$25,000,000

May, 2014

Debentures

Coordinator

Capital Markets: Structuring and Distribution of Fixed

Income Transactions.

Financial Advisory: Project & Structured Finance, M&A,

and hybrid capital transactions.

Research: Macro, Commodities, and Corporate.


R$ million

Volume of Underwriting Transactions

R$19,300,000

June, 2014

Lead Coordinator

Promissory Note

US$135,000,000

June, 2014

Joint Bookrunner

Senior Secured Notes

R$459,300,000

June, 2014

M&A

Advisor663

1,150

739

-

500

297

1H12 1H13 1H14

International Market

Local Market

1,036

663

1,650

RatingsFitch and S&P reaffirmed Pine’s ratings in April, 2014.

Moodys’s attributed this upgrade to Pine’s relativestability of its financial metrics and particularly itsasset quality, profitability and capitalization, whichbenefit from the business and earningsdiversification derived from the bank’s broaderfranchise. The consolidation of the bank’s strategicpositioning has resulted in a track record ofprofitability and asset quality.

Fitch attributed this upgrade to Pine’s ability topreserve and to enhance its credit profile in thelast several years. Also, the ratings reflect Pine’s

August 2011

UpgradeS&P

December 2011

Upgrade

S&P

May 2012

Upgrade

Fitch

� � �

May 2010Upgrade

Fitch

� � �

August 2012

Upgrade

Perspective Moody’s

May 2013Upgrade

Fitch

�

September 2013

Upgrade

Moody’s

�

Abril 2014

ReaffirmationS&P and Fitch


The agency based its ratings on the strong asset-quality, adequate liquidity, capital, and earnings.S&P also emphasizes the gradual fundingdiversification, through foreign issuances,securitizations, and the recent capital increasesubscribed by DEG.

last several years. Also, the ratings reflect Pine’sconsistent performance, higher fundingdiversification and sound asset quality, liquidity andcapitalization. According to Fitch, Pine hasmanaged carefully its growth in the corporatesegment with a strategy of revenue diversificationand cross-selling aiming to reduce the dependenceof revenues from lending and to increase theparticipation of its FICC Business and PineInvestimentos.

� � ��

Long Term BB+ BB+ Ba1 -

Short Term B B- -

Long Term brAA AA-(bra) Aa2.br

Short Term - F1+(bra) Br-1

Fore

ign a

nd

Loca

l

Curr

ency

Nati

onal

10.30

� �

Highlights and Results

2Q14 Events and Highlights

1. Positive contributions from all business lines in the semester: 68.9% from Corporate Credit, 22.0% from FICC, 6.1% from Treasury,

and 3.0% from Pine Investimentos.

2.Maintenance of positive liquidity gap over the past years, with 14 months for credit versus 16 months for funding.

3. Liquid balance sheet, with cash position of R$1.4 billion, equivalent to 35% of time deposits.

4. R$230 million issuance through a Financial Bill, with a two-year term, at the end of July.

5. Although many Brazilian banks were downgraded in April, S&P reaffirmed Pine’s ratings based on the consistency of its financial

profile “even after incorporating the negative impact of the economic and industrial high risks in Brazil”.


profile “even after incorporating the negative impact of the economic and industrial high risks in Brazil”.

6. Fitch has also reaffirmed Pine’s ratings, which “reflects the satisfactory credit profile of the Bank and its good performance over

the last years amid a deteriorated and relatively volatile operational environment”.

7. Pine executed another transaction of the Pine-DEG partnership, totaling US$18 million with a eight-year term, for a company in

the Construction Material sector.

8. 11th largest bank in derivative transactions and the 2nd largest in commodity derivatives segment according to CETIP – OTC Clearing

House.

9. 13th largest bank offering credit to large companies, moving up two positions, vis-a-vis 2013, according to the Melhores e Maiores

ranking compiled by Exame magazine.

2Q14 Financial Highlights

R$ million

The main performance indicators were within expectations in the quarter...

10,090 10,032

Mar-14 Jun-14

Total Loan Portfolio1

-0.6%

8,797 8,559

Mar-14 Jun-14

Total Funding

-2.7%

1,271 1,270

Mar-14 Jun-14

Shareholders’ Equity

-0.1%


1 Includes Stand by LCs, Bank Guarantees, Credit Securities to be Received and Securities (bonds, CRIs, eurobonds and fund shares)2 Reconciliation of results due to funding hedges in the gross amount of R$1.6 million and R$0.9 million net in 2Q14, and gross amount of R$3.9 million and R$2.3 million net in 1Q14. Considers the reclassification of FIDC expenses pursuant to Circular Letter number 3,658 from Central Bank..

Mar-14 Jun-14 Mar-14 Jun-14 Mar-14 Jun-14

33 352

352

1Q14 2Q14

Net Income

0.0%

4.5% 4.0%

4.7%2

4.1%2

1Q14 2Q14

NIM

-60 bps

10.7%11.3%

11.5%2 11.6%2

1Q14 2Q14

ROAE

+10 bps

Product and Revenue Diversification... with contributions from all business lines, ratifying the strategy of complete service to clients.

Revenue Mix

CorporateCredit

63.1%

Pine Investimentos

FICC

29.4%

Treasury

0.4%

1H13

Corporate Credit

68.9%

Pine Investimentos

3.0%

FICC

22.0%

Treasury6.1%

1H14


Clients with more than one product Penetration Ratio – Clients with more than one product

Investimentos7.1%

38%47% 43%

62%53% 57%

Jun-12 Jun-13 Jun-14

1 Product More than 1 product

2.9 2.9 3.0

Jun-12 Jun-13 Jun-14

Net Interest Margin

NIM Evolution Impacts in Period

NIM in line with guidance.

Increase in average earning assets, which occurred at

the end of the quarter;

Mark to market of private securities that compose the

expanded loan portfolio. The mark to market impact is

due to the increase in spreads, as a result of the re-

pricing of the credit portfolio.

4.5% 4.0%

4.7%1

4.1%1

1Q14 2Q14

-60 bps


NIM Composition

1Q14 2Q141 Reconciliation of results due to funding hedges in the gross amount of R$1.6 million and R$0.9 million net in 2Q14, and grossamount of R$3.9 million and R$2.3 million net in 1Q14. Considers the reclassification of FIDC expenses pursuant to Circular Letter number 3,658 from Central Bank.

R$ million

2Q14 1Q14 2Q13 1H14 1H13

Recurring Financ ial Margin

Income from financial intermediation 96 109 85 205 188

Overhedge effect (3) (3) 6 (6) 4

Liabilities hedge effect (2) (4) - (5) -

Recurring Income from financial intermediation (A) 92 102 91 194 192

Provision for loan losses (14) (12) (29) (26) (42)

Recurring Income from financial intermediation after provision (B) 78 90 61 168 150

Expenses and Efficiency Ratio

Expenses

Rigorous expense control.

22 2322

20

26

21

37.1% 39.8% 37.5%

- 80,0%

- 60,0%

- 40,0%

- 20,0%

0,0%

20,0%

40,0%

60,0%

5

10

15

20

25

30

35

40

45

50

Personnel Expenses

Other administrative expenses

Recurring EfficiencyRatio (%)


Efficiency Ratio

- 100,0%0

2Q14 1Q14 2Q13

R$ million

2Q14 1Q14 2Q13 1H14 1H13

Operating expenses1 45 53 47 97 96

(-) Non-recurring expenses 1 4 2 5 3

Recurring Operating Expenses (A) 43 49 45 92 93

Recurring Revenues2 (B) 116 123 120 238 252

Recurring Effic iency Ratio (A/B) 37.1% 39.8% 37.5% 38.7% 36.9%

1 Other administrative expenses + tax expenses + personnel expenses

Considers the reclassification of FIDC expenses pursuant to Circular Letter number 3,658 from Central Bank.

2 Gross Income from financial intermediation - provision fo r loan losses + fee income + overhedge effect - hedge impact

R$ million

Loan PortfolioThe portfolio remained above R$10 billion...

-0.6%

7,642 7,4447,948

8,405

8,994

9,5379,930

10,090 10,032

1,103 1,599 1,699 2,114

2,501 2,807

3,073

2,909 2,905 2,941

1,154 942

781 842

1,059

965 903 989 1,116

Trade finance1: 11.1%

Bank Guarantees: 29.3%


1 Includes Stand by LC2 Includes debentures, CRIs, Hedge Fund Shares, Eurobonds, Credit Portfolio acquired from financial institutions with recourse and Individuals

4,067 4,004 4,200 4,236 4,284 4,509 5,050 5,092 4,904

822 800 853 826 844

990

1,068 1,103 1,071

1,599 1,699

Jun-12 Sept -12 Dec-12 Mar-13 Jun-13 Sept -13 Dec -13 Mar-14 Jun-14

Bank Guarantees: 29.3%

BNDES Onlending: 10.7%

Working Capital2 : 48.9%

13 14 14 15 1515 16 14 14 Duration (months)

Continuous Loan Portfolio Management

Sectors Rebalance

...with increased sector diversification...

5%5%

5%5%8%

7%7%8%

10%7%9%8%

12%11%9%8%

13%12%10%9%

12%14%19%20%

Sugar and Ethanol

Construction

Electric and Renewable Energy

Agriculture

Infrastructure

Construction

13%

Sugar and Ethanol

12%

Telecom

3%

Chemicals

3%

Foreign Trade

3%

Retail

3%

Meatpacking

2%

Food Industry

2%

Construction Material

2%

Others

10%


The composition of the portfolio of the 20 largest clients changed by approximately 25% over the past twelve months;

The total portfolio share of the 20 largest clients remained below 30%, in line with the industry.

40%44%41%42%

Jun-14Jun-13Jun-12Mar-12

Transportation and Logistics

Others

Electric and Renewable

Energy

12%

Agriculture

10%

Infrastructure

8%

Transportation

and Logistics

5%

Vehicles and Parts

4%

Specialized Services

4%

Metallurgy

4%

3%

June 30, 2014

Contracts Overdue: total amount of the contracts overdue for more than 90 days / Loan Portfolioexcluding Bank Guarantees and Stand-by Letters of Credit.

Loan Portfolio Quality... quality, collaterals, and adequate credit coverage.

Loan Portfolio Quality – Res. 2,682 Non Performing Loans > 90 days

1.1%

0.7%

0.1%

0.7%

0.3%

0.6%

0.1% 0.1%

0.6%

0.2%

0,0%

0,5%

1,0%

1,5%

2,0%

Jun-13 Sept -13 Dec-13 Mar-14 Jun-14

Contracts Overdue

Installments Overdue

AA-A46.5%

B34.8%

C12.9%

D-E4.3%

F-H


Installments Overdue: total amount of installments overdue for more than 90 days / LoanPortfolio excluding Bank Guarantees and Stand-by Letters of Credit

Coverage of Overdue Portfolio: Provision/Overdue PortfolioCoverage of Total Portfolio: Provision/Loan Portfolio – Res. 2,682

Credit Coverage Collaterals

ProductsPledge

43%

Receivables5%

Properties

Pledge

49%

Investments2%

Guarantees1%

F-H1.5%

532%

270%

640%2.9% 2.9%

2.4%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

-50%

50%

150%

250%

350%

450%

550%

650%

Dec-13 Mar-14 Jun-14

Coverage of Overdue Portfolio Coverage of Total Portfolio

R$ million

+20.4%

FundingDiversified sources of funding...

38% 41% 50% 42% 41%44% 39% 41% 35% Cash over Deposits

113 364 500

478

473 973

871

834 1,064

6,972 6,804 7,062 6,589

7,111

7,894

8,383 8,797

8,559 Trade Finance: 12.4%

Private Placements: 5.5%

Multilateral Lines: 4.1%


2,089 1,993 2,167 2,087 2,185 1,944 2,099 2,314 2,271

1,228 1,177 1,174

973 1,013 1,048

1,185 1,022 761

287 276 224

225 254 372

478 659 908

194 176 121

110 110 93

90 76 80 33 33 30

126 19 20 23

27 41 890 840 903

859 862 1,099

1,141 1,174 1,086

217231

277 154 286

649

632 582 594

376409

624 642

689

762

792 833

508

295 260

409 402

435

437

459 434

427

234 156

152

78 80

69

113 346

118 180

173

171 181

429

500 473

1,011 1,073

808

762

997

6,972 6,804 6,589

Jun-12 Sept-12 Dec -12 Mar-13 Jun-13 Sept-13 Dec-13 Mar-14 Jun-14

International Capital Markets: 5.0%

Financial Letters: 5.9%

Local Capital Markets: 7.0%

Onlending: 12.7%

Demand Deposits: 0.5%

Interbank Time Deposits: 0.9%

High Net Worth Individual Time Deposits: 10.6%

Corporate Time Deposits: 8.9%

Institutional Time Deposits: 26.5%

Asset & Liability Management... keeping a positive gap between credit and funding.

Leverage Credit over Funding Ratio

7.1x 7.5x 7.8x 7.9x 7.9x

4.9x 5.1x

5.5x 5.6x 5.6x

-

1,0

2,0

3,0

4,0

5,0

6,0

7,0

8,0

9,0

10,0

Jun-13 Sept-13 Dec -13 Mar-14 Jun-14

Expanded Loan Portfolio

Loan Portfolio excluding Bank Guarantees

85%81% 83% 82% 83%



15

18 17

16 16

14

16

15 14 14


Funding Credit

Leverage: Expanded Loan Portfolio / Shareholders’ EquityExpanded Loan Portfolio excluding Bank Guarantees and Stand-by Letters of Credit / Shareholders’Equity

Credit over Funding ratio: Loan Portfolio excluding Bank Guarantees and Stand-by Letters ofCredit / Total Funding

ALM – Average Maturity Total Deposits over Total FundingR$ millionmonths

8,5594,622 5,902 6,972 7,111

69%61% 55% 50% 47%

31%39% 45% 50% 53%

Jun-10 Jun-11 Jun-12 Jun-13 Jun-14

Total Deposits Others


Capital Adequacy Ratio (BIS), Basel III BIS ratio continued at 13.7%

15.0% 14.7%

3.3%3.0%

2.8%2.1% 2.3%

2.2%

2.1% 1.5% 1.5%

15.9%17.0%

16.2% 17.1% 17.0%15.9%

14.1% 13.7% 13.7%

Tier II Tier I

Minimum Regulatory Capital (11%)


R$ Million BIS Ratio (%)

Tier I 1,256 12.2%Tier II 152 1.5%

Total 1,408 13.7%

12.6%14.0% 13.4%

15.0% 14.7% 13.7%12.0% 12.2% 12.2%

Jun-12 Sept-12 Dec-12 Mar-13 Jun-13 Sept-13 Dec-13 Mar-14 Jun-14

Corporate Governance and PINE4

Organizational StructureNon-bureaucratic, entrepreneurial, and meritocratic culture with a flat hierarchy.

CEONoberto N. Pinheiro Jr.

INTERNAL AUDITTikara Yoneya

COMPENSATION COMMITTEE

AUDIT COMMITTEE

EXTERNAL AUDITPWC

Noberto N. Pinheiro Noberto N. Pinheiro Jr. Mailson da Nóbrega Maurizio Mauro Gustavo Junqueira Susana Waldeck*

Chairman Vice ChairmanIndependent

DirectorIndependent

DirectorExternalDirector

ExternalDirector

BOARD


COO Alexandre Aoude

CROGabriela Chiste

CAOUlisses Alcantarilla

CFONorberto Zaiet

HUMAN RESOURCES & ITIvan Farber

*Pending approval of Brazilian Central Bank

Origination

Investment Banking

Sales & Trading

Research Macro/ Commodities/Corporate

Credit

Corporate Research

Compliance, Internal Controls and IT Security

Credit, Market, Operational and Liquidity Risks

Financial Modeling

Asset & Liabilities Back Office

Legal

Collaterals Management

Special Situations

Middle Office

Office Management

Controlling

Accounting

Tax Planning

Accounts Payable

Marketing

Investor Relations

International Division

Corporate GovernancePine commits to best corporate governance practices…

Two Independent Members and Two External Member on the Board of Directors

Mailson Ferreira da Nóbrega: Brazil’s Finance Minister from 1988 to 1990

Maurizio Mauro: Former CEO of Booz Allen Hamilton and Grupo Abril

Gustavo Junqueira: Former Head of Pine Investimentos, Member of the Board of Directors atEZTEC, Financial Advisor at Arsenal Investimentos and CFO at Gradiente Eletrônica

Harumi Susana Ueta Waldeck*: Former CFO of Pine, with over 17 years of experience at thecompany. She brings the day-to-day experience to the Board.


São Paulo Stock Exchange (BM&FBOVESPA) Level 2 Corporate Governance

Audit and Compensation Committee reporting directly to the Board of Directors

100% tag along rights for all shareholders, including non-voting shares

Arbitration procedures for fast settlement of litigation cases

First Brazilian bank to release BR GAAP and IFRS quarterly

*Pending approval of Brazilian Central Bank

Committees…favoring collective decision making.

Main decisions are taken by committees.

Non-stop exchange of knowledge, ideas, and information.

Transparency.

Bi-annuallyMonthly

AUDIT COMMITTEE

BOARD OF DIRECTORS

COMPENSATION COMMITTEE

45 days


CEO

Bi-annuallyMonthly

CREDITASSET & LIABILITY

COMMITTEE ALCO

EXECUTIVEHUMAN

RESOURCESINVESTMENT

BANKINGPERFORMANCE EVALUATION IT ETHICS

COMPLIANCE

INTERNAL CONTROLS AND

COMPLIANCERISK

Twice a week WeeklyMonthly Every 2 monthsWeekly Monthly Quarterly On demandEvery 2 months 45 days

COMMITTEES

DISCLOSURE

Quarterly

PINE4

Volume (R$ million) and Number of Trades (quantity) – Daily Average

935 1,000 1,023

932

1,093

584

426 553 595

508 525

723

984

195 182 220

137

246

168 154 146 169

90 113 122 108

Volume (R$ thousand)

Number of Trades


PINE4 | As of June 30th, 2014

Price (R$) 7.52

P/BV 0.7x

P/E (1) 5.8x

(1) Considers the market consensus for the 2014 net income; source: Bloomberg Dividend Yield: Dividends and Interest on Own Capital of the last twelve months / Average dailyclosing prices of the stocks in 2Q14

Multiples Dividend Yield

Jun/13 Jul/13 Aug/13 Sept/13 Oct/13 Nov/13 Dec/13 Jan/14 Feb/14 Mar/14 Apr/14 May/14 Jun/14

10.9% 10.6%

12.3%11.8%

3Q13 4Q13 1Q14 2Q14

Social Investment and ResponsibilityFocus on the short, medium and long term.

Partnerships

The UN initiative mobilizes the international businesscommunity to adopt fundamental and internationallyaccepted values in their business practices in the areasof human rights, labor relations, environment andcombating corruption, which are reflected in tenprinciples. Since October 2012

Responsible Credit

“Lists of Exceptions”: the Bank does not finance projects or thoseorganizations that damage the environment, are involved in illegallabor practices or produce, sell or use products, substances or activitiesconsidered prejudicial to society.

System of environmental monitoring, financed by the IADB andcoordinated by FGV, and internally-produced sustainability reports forcorporate loans

Principles applied to Project Finance transactions wheretotal project capital costs exceed US$10 million and arebased on International Finance Corporation PerformanceStandards on social and environmental sustainability andon the World Bank Group Environmental, Health, andSafety Guidelines (EHS Guidelines). Since December/2012

Protocolo Verde – “Green Protocol”, an agreementbetween FEBRABAN and the Ministry of the Environment


Social Investment Recognition

Most Green Bank

Recognized by the International Finance Corporation (IFC), privateagency programs of the World Bank as the most "green" bank as a resultof its transactions under the Global Trade Finance Program (GTFP) andits onlending to companies focused on renewable energy and ethanol

Efficiency Energy

Recognition by World Bank for support in the Energy Efficiency sector.

between FEBRABAN and the Ministry of the Environmentto support development that does not compromise futuregenerations.

Exhibition and sponsorship of Brazilian artists, for instance Paulo von Poser and

Miguel Rio Branco, in addition to sponsoring and supporting films and

documentaries such as Quebrando o Tabu (Fernando Henrique Cardoso on the

drug war), O Brasil deu certo, e agora? (idealized by Mailson da Nóbrega), Além

da Estrada (Charly Braun) and others.

Investor Relations

Noberto N. Pinheiro Jr.

CEO

Norberto Zaiet Junior

CFO/IRO

Raquel Varela

Head of Investor Relations

Alejandra Hidalgo

Investor Relations Manager


This report may contain forward-looking statements concerning the business prospects, projections of operating and financial results and growth outlook of PINE. These are merelyprojections and as such are based solely on management’s expectations regarding the future of the business. These statements depend substantially on market conditions, theperformance of the sector and the Brazilian economy (political and economic changes, volatility in interest and exchange rates, technological changes, inflation, financialdisintermediation, competitive pressures on products and prices and changes in tax legislation) and therefore are subject to change without prior notice..

Luiz Máximo

Investor Relations Specialist

Ana Lopes

Investor Relations Analyst

Phone: +55-11-3372-5343

www.pine.com/ir

[email protected]

2q14 institutional presentation

Economy & Finance