apresentação institucional 3t13

Institutional PresentationInstitutional Presentation

3rd Quarter of 2013

Summary

Profile and History

PINE

History

Business Strategy

Competitive Landscape

Focus on the Client

Corporate Credit

FICC

PINE I ti tPINE Investimentos

Rating Upgrades

Highlights and ResultsHighlights and Results

Corporate Governance and PINE4

Organizational Structure Organizational Structure

Corporate Governance

Committees

PINE4

2/33Investor Relations | 3Q13 |

Social Investment and Responsibility

Profile and History

PINESpecialized in providing financial solutions for large clients…

Credit Portfolio by Annual Client RevenuesSeptember 30th, 2013

R$250million

Up to R$250 million

5%

Over R$2 billion45%

$to R$500 million12%

45%

R$500 million to $ b ll

Profile

R$2 billion38%

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 risk• FICC: instruments for hedging and risk

management• PINE Investimentos: Capital Markets, Financial

Advisory, Project & Structured Finance andResearch


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

History

1939Pinheiro Family

October 2011

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

1,220 1,264

foundsBanco Central do

Nordeste End of 2007Focus on expanding the Corporate Banking franchise

Discontinuation of the payroll-deductible loan business

October, 2011Subscription of PINE’s capital by DEG

867

1,015

1975Noberto Pinheirobecomes one of

May, 2007Creation of PINE Investimentos products line and

opening of the Cayman branch

October, 2007Beginning of the FICC Business 801 827 825

becomes one of BMC’s controlling

shareholders 2005Noberto Pinheiro becomes PINE’s sole

shareholder

6,963 7,912

9,524

209

335 Corporate Credit Portfolio (R$ Millions)

Shareholders' Equity (R$ Millions)

1997Noberto and Nelson Pi h i ll th i 155 184 222 341 521 620 755 663 761 1,214

2,854 3,105 4,192

5,763

18 62

121 126 140 136 152 171 209

Pinheiro sell their stake in BMC and

found PINE

Devaluationof the real

Nasdaq Sept. 11 Brazilian Elections

SubprimeAsian Crisis

Russian Crisis

European Community

March 2007 M 2013

155 184 222 341 521 620 755 663 761

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

Sept

-13


(Lula) March, 2007IPO

May, 201316 years

Business Strategy

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

Market

Consolidation of the banking sector has decreased

Large Multi-Services banks

gthe supply of credit lines and financial instrumentsfor corporate

Foreign banks are in a deleveraging process

100% Corporate PINE

Full service Bank – Credit Hedging and Investment

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

Corporate & SME

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

~10 clients per officer

Foreign and Investment Banks

Corporate & SME

SME & Retail

Competitive Advantages: Focus Fast response: Strong relationship with

clients, with the credit committee meetingtwice a week and response times to clients of

Retail

twice a week and response times to clients ofno more than one week

Specialized services Tailor-made solutions Product diversity


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

CDIsCDs

LCIs

Fixed Income

CurrenciesCDBs

RDBs

LCAs

LCIsCCBs

Eurobonds

PrivatePlacements

Financial Letters

Local Currency

Pricing of Assets and Liabilities

LiquidityManagement

Working CapitOverdraftAccounts

Currencies

Commodities

Equities

DebenturesCRIs

TreasuryDistribution

Capital Financial Advisory

Foreign Currency

Trading

Local Currency

Working CapitalUnderwriting

Bank

BNDES Onlending

Bank Guarantees

Compror

ACC/ACE

Export Finance

Accounts

ClientsCorporate

Credit

FICC

PINEInvestimentos

pMarkets

Financial Advisory Local Currency

Onlending

Foreign Currency

Trade FinanceParticipation

Funds

Corporate & Structured

Finance

M&A

Project Finance

StructuredFinance

Private Credit I t t Guarantees

Exclusive Funds

Portfolio Management

FinimpLetters of Credit

2,770 onlending

Syndicated andStructured Loans

Fixed Income Currencies

Commodities

Private Credit Funds

Real Estate Funds

Rural Credit

AircraftFinancing

Investment Management

In addition to the

headquarters located in the

city of São Paulo, PINE has 12

branches throughout Brazil, in

the States of Ceará Mato

Swap NDFsStructured Swaps

Options

the States of Ceará, Mato

Grosso, Minas Gerais, Paraná,

Pernambuco, Rio de Janeiro,

Rio Grande do Sul, Santa

Catarina and São Paulo. The

origination network also


counts with a Cayman branch

and a broker dealer in New

York (USA).

Corporate CreditStrong track record and solid credit origination and approval process.

Actions Credit Committee

Meets twice a week – reviewing 20 proposals on average

Minimum quorum: 4 members - attendance of CEO or

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

Chairman is mandatory

Members:Chairman of the Board

each officer handles 10 economic groups

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

Chairman of the BoardCEOChief Operating OfficerChief Administrative OfficerChief Risk Officer

Established long term relationships with more than 600economic groups

Origination network is comprised of 12 branches dividedinto 14 origination platforms in Brazil’s major economiccenters

Participants:FICC Executive Director Credit Analysts

centers

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

Credit Approval: Electronic Process

Other members of the Corporate Banking origination team

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

pp

Origination OfficersOrigination Officers

Credit origination Credit analysis visit to clients data

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

CREDIT COMMITTEE CREDIT COMMITTEE

Discussion on sizing collateral


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

research team

Presentation to the Credit Committee Centralized and unanimous decision making process

Discussion on sizing, collateral, structure etc.

FICCProven trackrecord: 2nd in commodity derivatives1.

September 30, 2013 R$ million

Client MtM Derivatives by Market Notional Value and MtM

Notional value

MtM

Stressed MtMCurrencies

73%

530

629

498

298 298

4 875 5 036 5 180 5 891 11 090

238 197 174 248

(195)

Commodities

Rates21%

Scenario on September 30:

Mark to Market, by Sector Portfolio Profile

4,875 5,036 5,180 5,891 11,090

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

Electric and Renewable Energy

Other2%

Commodities6%

Scenario on September, 30:

Duration: 119 days

Mark-to-Market : R$530 million

Pulp and Paper24%

Foreign Trade5%

Metallurgy4%

Infrastructure3%

Energy2%

2%

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

Stressed MtM: - R$195 million

Agriculture13%

M t ki

Food Industry9%

Transportationand Logistics

7%


1Source: Cetip Report, September 2013

Meatpacking11%

Construction11%

Sugar and Ethanol9%

PINE InvestimentosConsolidation, result of the focused effort through the years in the franchise.

Capital Markets: Structuring and Distribution of Fixed

Transactions

US$250,000,000R$800,000,000 R$50,000,000 US$400,000,000

Income Transactions.

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

and hybrid capital transactions

Senior Notes DebenturesDebentures Senior Notes

and hybrid capital transactions.

Research: Macro, Commodities, and Corporate.

April, 2013

Bookrunner

January, 2013

Coordinator Coordinator

June, 2013

Co-Manager

September, 2013

R$ million

Volume of Underwriting Transactions RevenuesR$ million

1,689 52

880 24


9M12 9M13 9M12 9M13

Rating Upgrades...with market recognition and positive evaluation by rating agencies.

Moodys’s attributed this upgrade to PINE’s relativestability of its financial metrics and particularly its

t lit fit bilit d it li ti hi h

September 2013Upgradeasset quality, profitability and capitalization, which

benefit 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.

August 2011

December 2011UpgradeS&P

May 2012UpgradeFitch

August 2012UpgradePerspective Moody’s


UpgradeMoody’s

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 2011UpgradeS&P

S&P


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 dependence

and 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 -

n an

d al

en

cy

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

Short Term B B - -

Long Term brAA AA-(bra) Aa2.br

Fore

ign

Loc

Curr

e

iona

l

10.78


diversification, through foreign issuances,securitizations, and the recent capital increasesubscribed by DEG.

Short Term - F1+(bra) Br-1Nat

i 10.78

Highlights and Results

Recurring results.

3Q13 Events and Highlights

On September 13, Moody's upgraded PINE’s ratings. The Bank is now only one notch from Global Investment Gradeby the three international agencies: Moody’s, Fitch and S&P.

1

Positive revenue contributions from all business lines in 9M13: 63.3% from Corporate Credit, 29.2% from FICC,6.3% from PINE Investimentos, and 1.2% from Treasury.

2

Maintenance of the positive liquidity gap for over 3 years.

Liquid balance sheet, with cash position of R$1.3 billion, equivalent to 39% of time deposits.

3

4

PINE raised R$571.4 million through a FIDC structure, with a five-year term. PINE also concluded a syndicatedloan in the amount of US$100 million and a two-year term, at the end of September.

5

PINE moved up four positions and was ranked among the 12 largest players in derivative transactions for clientsand remained the second largest player in commodity derivatives, according to the ranking compiled by Cetip.

6

PINE is among the 15 largest banks offering credit to large corporates and the sixth Brazilian controlled privateowned bank, according to the Melhores e Maiores ranking compiled by Exame magazine.

Al di t E i PINE t 5 iti i th ki f l t b k b it d t d

7

8


Also according to Exame magazine, PINE went up 5 positions in the ranking of largest banks by equity and todayholds the thirtieth place, being the thirteenth among Brazilian controlled private owned banks.

8

3Q13 Financial HighlightsThe main performance indicators presented adequate performance in the period...

R$ million

Total Loan Portfolio 1

+6.0%

Total Funding

+11.0%

Shareholders' Equity

+0.4%6.0%

8,994 9,537 7,111

7,894 1,259 1,264

Jun-13 Sept-13 Jun-13 Sept-13 Jun -13 Sept -13

Net Income ROAEFee Income

+2.6% +50 bps+10.0%

39 40 12.9% 13.4%30

33


1 Includes Stand-by Letters of Credit, Bank Guarantees, Credit Securities to be Received and Private Securities (bonds, CRIs, eurobonds and fund shares)2Q13 3Q13 2Q13 3Q132Q13 3Q13

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

Revenue Mix

9M12 9M13

Corporate Credit 60.2%

Treasury 11.2%

Corporate Credit 63.3%

Treasury 1.2%

FICC 17.6%

FICC 29.2%

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

PINE Investimentos

11.0%

PINE Investimentos

6.3%

More than 1 product 1 product

40% 37%47%

More than 1 product 1 product

2.9 2.83.0

60% 63%53%


Sept-11 Sept-12 Sept-13 Sept-11 Sept-12 Sept-13

Net Interest MarginNIM is within the guidance range.

NIM Evolution Impacts in the Period

+80 bps

Higher average balance of the loan portfolio

Marginal improvement of spreads across all business lines

5 7%Credit recoveries

4.9%5.7%

NIM Composition

2Q13 3Q13

R$ million

3Q13 2Q13 3Q12 9M13 9M12

Income from financial intermediation 108 83 112 292 368

Overhedge effect (1) 6 (0) 3 4

Income from financial intermediation desconsidering overhedge (A) 107 89 112 295 372

Provision for loan losses (34) (29) (24) (77) (65)

Income from financial intermediation after provision (B) 73 60 88 218 307


Expenses and Efficiency RatioRigorous management and control of expenses.

Expenses

35.7% 38.1% 35.7%40.0%

30

35

22 22 23

26

2124

-20.0%

0.0%

20.0%

20

25Personnel Expenses

Other administrative expenses

-80.0%

-60.0%

-40.0%

5

10

15p

Efficiency Ratio (%)

Efficiency Ratio

-100.0%03Q12 2Q13 3Q13

R$ million

3Q13 2Q13 3Q12 9M13 9M12

Operating expenses 1 51 47 53 147 149

(-) Non-recurring expenses 1 2 3 4 6 ( ) g p

Recurring Operating Expenses (A) 50 45 50 143 143

Revenues 2 (B) 140 118 140 387 462

Ratio (A/B) 35.7% 38.1% 35.7% 37.0% 31.0%1 Other administrative expenses + tax expenses + personnel expenses


2 Gross Income from financial intermediation - provision for loan losses + fee income + overhedge effect

Loan Portfolio1

The portfolio maintained its growth to reach R$9.5 billion in September...

R$ million

13 Individuals: 0.1% 8 994 9,537

3 073 1 154 781

832 1,059

965

102 81 65 47

36 26

18 13 Individuals: 0.1%

Trade finance: 10.1%

Bank Guarantees: 32 2%

7,065 7,426 7,642 7,444

7,948 8,405

8,994

6,875

884 821 800 853 826 844

990 1,534 1,687 1,684 1,599 1,699 2,114 2,501 2,807

3,073

756 782 1,021 1,154 942 124 102 Bank Guarantees: 32.2%

BNDES Onlending: 10.4%

3 550 3 717 3 935

251 322 367 670 683 787 670 549 561 881 883 884

821 800

Private Securities +

ki C i l 2% 3,329 3,289 3,389 3,332 3,274 3,377 3,550 3,717 3,935

Sept-11 Dec-11 Mar -12 Jun-12 Sept-12 Dec-12 Mar -13 Jun-13 Sept-13

Working Capital: 47.2%


1 Includes Stand-by Letters of Credit, Bank Guarantees, Credit Securities to be Received and Private Securities (bonds, CRIs, eurobonds and fund shares)

Continuous Loan Portfolio Management...with sector diversification...

Construction Material

Retail2% Meatpacking

2% Other6%

Sept -13

Financial Institutions

2%

Construction Material

2%

Other9%

Sept -12

Sugar and Ethanol14%

ConstructionVehicles and Parts

3%

Food Industry2%

Beverages and Tobacco

2%

2%6%

Sugar and Ethanol16%

B d

Food Industry3%

Telecom2%

Chemicals2%

Construction14%

l dTelecom

Chemicals4%

Foreign Trade4%

3%Construction

12%

Metallurgy4%

Vehicles and Parts4%

Beverages and Tobacco

3%

Electric and Renewable Energy

9%

Infrastructure9%

AgricultureTransportation and

LogisticsSpecialized Services

5%

Metallurgy5%

Telecom4% Electric and

Renewable Energy10%

Agriculture9%

InfrastructureTransportation and

Logistics6%

Foreign Trade6%

Specialized Services4%

4%

Reshuffle of the 20 largest clients over 20%;

8%g5%

5%6%6%

20 largest clients continue to represent less than 30% of the total loan portfolio.


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

September 30, 2013

Loan Portfolio Quality Non Performing Loans > 90 days

B 1.2% 1.2%

Contracts overdue

Installments overdue

B35.9%

0.8%

1.1%

0.7%

0.4%

0.6% 0.6% 0.6%

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

AA-A50.6%

C7.3%

D-E3 7%

0.1%


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

Credit Coverage Collaterals

3.7%F-H

2.5%

3.5%3.3% 3.4% 3.4%

3.0%

Products Pledge

34%Investments

3%

Guarantees1%

Receivables


Credit Coverage: Provision / Loan Portfolio excluding Bank Guarantees and Stand-by Letters ofCredit.


ece vables24%

Properties Pledge

38%

FundingDiversified sources of funding...

R$ million

41% 41% 34% 38% 42%41% 50% 44% 39% Cash over Deposits

69 429

1,011 1 073

808 997

973

Trade Finance: 12.3%

Private Placements: 5.5%

M ltil t l Li 0 9%

6,258

7,111 6,575 6,443

6,972 6,804 7,062

6,589

7,894

934 938 890 903

266 312 314 593

640 901

796 975 1,411

237 246 233 295

260 409

402 435

437

310 353 276

234 156

152 78

80

69

86 250 125

118 180

173 171

181 757 686 771

1,011 1,073 752 Multilateral Lines: 0.9%

International Capital Markets: 5.5%

Local Capital Markets: 17.9%

1,253 1,196 1,186 1,228 1,177 1,174 972 1,013 1,048

228 250 281 223 213 146 126 119 113

165 106 161 194 176 121

110 110 93 66 112 31 33

33 30 126 19 20

924 934 938 890 840 903 870 862 1,099 Onlending: 13.9%

Demand Deposits: 0.2%

Interbank Time Deposits: 1.2%

1,965 2,130 2,128 2,153 2,056 2,245 2,186 2,320 2,203

High Net Worth Individual Time Deposits: 1.4%

Corporate Time Deposits: 13.3%


Sept-11 Dec-11 Mar-12 Jun-12 Sept-12 Dec-12 Mar-13 Jun-13 Sept-13Institutional Time Deposits: 27.9%

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

Leverage Credit over Funding Ratio

6 1x6.5x 6.7x

7.1x7.5x

83% 82%87% 85% 81%

6.1x

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

Total Deposits OthersR$ million

ALM – Average Maturity Total Deposits over Total Funding

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

months

p p

46% 47% 47% 50% 56%

Total Deposits Others

7,894 7,111 6,589 7,062 6,804 16

17 17

15

18

16

54% 53% 53% 50% 44%

50% 56%14 13

14 14

Funding

Loan Portfolio


44%

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

Capital Adequacy Ratio (BIS)BIS ratio reached 15.9%.

Tier I Tier II

Minimum Regulatory

4.5%4.2%

3 0% 2.1% 2.3%

19.6%18.5%

16.4% 15.9%17.0%

16.2%17.1% 17.0%

15.9%

Minimum Regulatory Capital (11%)

15 1% 14 3% 14 0% 15 0% 14 7%

3.1% 3.3%3.0% 2.8%

2.3%2.2%

15.1% 14.3% 13.3% 12.6% 14.0% 13.4% 15.0% 14.7% 13.7%

Sept-11 Dec-11 Mar-12 Jun-12 Sept-12 Dec-12 Mar-13 Jun-13 Sept-13

R$ million BIS Ratio (%)

Tier I 1,276 13.7 Tier II 200 2.2

Reference Equity 1,476 15.9%


Balance Sheet

R$ million

2010 2011 2012 1Q13 2Q13 3Q13

Assets 9,151 11,144 10,406 10,204 10,457 10,508

Cash 92 114 126 212 120 281

Interbank investments 74 496 405 611 669 870

Securities 3,808 5,125 4,261 3,604 2,977 2,627

Lending operations 4,842 4,980 5,038 5,114 5,483 5,855

(-) Provisions for loan losses (116) (173) (190) (195) (203) (190)

Net lending operations 4,726 4,807 4,848 4,920 5,280 5,665

Property and equipments 13 10 31 30 94 101 Property and equipments 13 10 31 30 94 101

Others 439 591 735 828 1,317 963

Liabilities 8,283 10,128 9,186 8,944 9,198 9,243

Deposits 3,152 3,484 3,319 3,199 3,236 2,924

Money market funding 2,359 3,190 1,833 1,954 1,245 829 y g , , , , ,

Borrowings and onlendings 1,376 2,101 1,975 1,859 2,090 2,933

Other liabilities 527 523 588 595 1,046 727

Others 870 831 1,471 1,337 1,581 1,830

Shareholders' Equity 867 1,015 1,220 1,260 1,259 1,264

Liabilities and Shareholders' Equity 9,151 11,144 10,406 10,204 10,457 10,508


Income Statement

2010 2011 2012 1Q13 2Q13 3Q13

Income from financ ial intermediation 1 056 1 401 1 237 233 341 298

R$ million

Income from financ ial intermediation 1,056 1,401 1,237 233 341 298

Lending transactions (1) 526 658 548 111 140 154

Others 530 742 689 122 201 144

Expenses with financ ial intermediation (711) (1,067) (860) (144) (288) (224)

Funding transactions (1) (408) (700) (607) (119) (175) (146)g ( ) ( ) ( ) ( ) ( ) ( )

Borrowings and onlendings (1) (226) (278) (170) (12) (84) (44)

Provision for loan losses (77) (89) (83) (13) (29) (34)

Gross income from financ ial intermediation 345 333 376 89 53 74

Other operating (expenses) income (149) (49) (115) (19) (18) (13)

Fee income 61 61 120 30 30 33

Personnel expenses (52) (71) (89) (22) (22) (23)

Other administrative expenses (85) (102) (92) (24) (21) (24)

Tax expenses (29) (37) (17) (4) (4) (4)

Other operating revenues/expenses (1) (44) 100 (37) 1 (1) 5

Operating income 196 285 261 70 35 60

Non-operating income (1) 4 20 2 3 2 Non-operating income (1) 4 20 2 3 2

Income before taxes ad profit sharing 195 289 281 72 38 62

Income tax and social contribution (49) (66) (58) (19) 8 (11)

Profit sharing (28) (61) (36) (8) (7) (11)

Net income 118 162 187 46 39 40


(1) The exchange rate variation relating to assets and liabilities, until 2010, were accounted in Other operaing revenues/expenses.

Corporate Governance and PINE4

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

BOARD

Noberto Pinheiro Noberto Pinheiro Jr. Maurizio Mauro Gustavo Junqueira Mailson da Nóbrega

Chairman Vice Chairman IndependentDirector

ExternalDirector

IndependentDirector

CEONoberto Pinheiro Jr.

INTERNAL AUDITTikara Yoneya

COMPENSATION COMMITTEE

AUDIT COMMITTEE

EXTERNAL AUDITPWC

Noberto Pinheiro Jr.

HUMAN RESOURCESIvan Farber

COO Norberto Zaiet

CROGabriela Chiste

CAOUlisses Alcantarilla

CFOSusana Waldeck

OriginationInvestment Banking

Asset & Liabilities Back Office

ControllingAccounting

Credit Corporate Researchg

Sales & TradingResearch Macro/ Commodities/CorporateInternational

LegalCollaterals ManagementSpecial SituationsMiddle Office

gTax PlanningITAccounts PayableOffice ManagementMarketingInvestor Relations

pCompliance , Internal Controls and IT SecurityCredit, Market, Operational and Liquidity RisksFinancial Modeling


Investor Relations

Corporate GovernancePINE commits to best corporate governance practices…

Two Independent Members and one External Member on the Board of DirectorsMailson Ferreira da Nóbrega: Brazil’s Finance Minister from 1988 to 1990Maurizio Mauro: Former CEO of Booz Allen Hamilton and Grupo AbrilGustavo Junqueira: Former Head of PINE Investimentos Member of the Board of Directors atGustavo Junqueira: Former Head of PINE Investimentos, Member of the Board of Directors atEZTEC, Financial Advisor at Arsenal Investimentos and CFO at Gradiente Eletrônica

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


Committees…favoring collective decision making.

Main decisions are taken by committees.Non-stop exchange of knowledge, ideas, and information.Transparency.p y

BOARD OF DIRECTORS45 days

AUDIT COMMITTEE

COMPENSATION COMMITTEE

CEO

Bi-annuallyMonthly

COMMITTEES

CREDITASSET & LIABILITY

COMMITTEE ALCO

EXECUTIVE HUMAN RESOURCES

INVESTMENT BANK

PERFORMANCE EVALUATION IT ETHICS

INTERNAL CONTROLS AND

COMPLIANCERISK

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


PINE4Increased ADTV and yields above average.

246

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

84 111 195 182

220 137

246

Hiring of Market Maker

Number of Trades

634 762

935 1,000 1,023 932 1,093

Volume

Apr/13 May/13 Jun/13 Jul/13 Aug/13 Sept/13 Oct/13

Multiples Dividend Yield

10.9%

PINE4 | As of September 30th

Price (R$) 10.00

P/BV 0 9

7.1%7.8%

8.5%

P/BV 0.9x

P/E(1) 7.2x


Dividend Yield: Dividends and Interest on Own Capital of the last twelve months / Average dailyclosing prices of the stocks in 3Q13

(1) Considers the market consensus for the 2013 net income; source: Bloomberg4Q12 1Q13 2Q13 3Q13

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

Partnership

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 and

Responsible Credit

“Lists of Exceptions”: the Bank does not finance projects or thoseorganizations that damage the environment are involved in illegalof human rights, labor relations, environment and

combating corruption, which are reflected in tenprinciples. Since October 2012

organizations 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 for

Principles applied to Project Finance transactions wheretotal project capital costs exceed US$10 million and arebased on International Finance Corporation Performance corporate loansbased 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

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

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

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

addition to sponsoring and supporting films and documentaries such as

Efficiency Energy

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

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.


g y pp gy y

Investor Relations

Noberto N. Pinheiro Jr.

CEO

Susana Waldeck Norberto Zaiet Junior

CFO / IRO COO

Raquel Varela

Head of Investor Relations

Alejandra Hidalgo

Investor Relations Manager

Luiz Maximo

Investor Relations Analyst

Ana Lopesp

Investor Relations Analyst

Phone: +55-11-3372-5343

www.pine.com/ir

[email protected]


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..

apresentação institucional 3t13

Economy & Finance

corporate credit portfolio

credit committee meetingtwice

shareholders equity

yearsinvestor relations

subscription of pines

bank products

ficc business

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