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1Q13 Institutional Presentation
- 1. Institutional Presentation 1st Quarter of 2013
- 2. Summary History and Profile PINE History Business Strategy Competitive Landscape Focus on the Client Corporate Credit FICC PINE Investimentos Rating Upgrades Highlights and Results Corporate Governance and PINE4 Organizational Structure Corporate Governance Committees PINE4 Ownership Structure Social Investment and Responsibility Investor Relations | 1Q13 | 2/32
- 4. PINE Specialized in providing financial solutions for large clients… Credit Portfolio by Annual Client Revenues Up to R$250 million 7% March 31st, 2013 Over R$2 billion 39% R$250million to R$500 million 15% R$500 million to Profile R$2 billion 39% Focused on establishing long long-term relationships Business is along primary business lines: Profound knowledge and product penetration structured three • Corporate Credit: credit and financing products • FICC: instruments for hedging and risk management • PINE Investimentos: Capital Market, Financial Advisory, Project & Structured Finance and Research Investor Relations | 1Q13 | 4/32
- 5. History ...with extensive knowledge of Brazil’s corporate credit cycle. 1939 Pinheiro Family founds Banco Central do Nordeste November, 2012 Opening of the broker dealer in New York, PINE Securities USA LLC August, 2012 Subscription of PINE’s capital by DEG, Proparco, Controlling Shareholder and Management October 1,015 1,220 1,260 End of 2007 Focus on expanding the Corporate Banking franchise Discontinuation of the payroll-deductible loan business October, 2011 Subscription of PINE’s capital by DEG 801 827 825 867 1975 Noberto Pinheiro becomes one of October, 2007 Beginning of the FICC Business May, 2007 Creation of PINE Investimentos products line and opening of the Cayman branch 6,963 7,912 8,379 BMC’s controlling shareholders 2005 Noberto Pinheiro becomes PINE’s sole shareholder Corporate Portfolio (R$ Millions) 335 2,854 3,104 4,191 5,746 18 62 121 126 140 136 152 171 209 Credit Shareholders' Equity (R$ Millions) 1997 155 184 222 341 521 620 755 663 761 1,214 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 Mar-13 Noberto and Nelson Pinheiro sell their stake in BMC and found PINE Asian Devaluation Subprime Crisis of the real Nasdaq Sept. 11 Brazilian Elections (Lula) Russian Crisis European Community March, 2007 IPO May, 2013 16 years Investor Relations | 1Q13 | 5/32
- 7. Competitive Landscape PINE serves a niche market of companies with few options for banks. Market Consolidation of the banking sector has Large Multi-Services banks decreased the supply of credit lines and financial instruments for corporate Foreign banks are in a deleveraging process 100% Corporate g g gp PINE 100% focused on providing complete service to companies, offering customized products Corporate & SME Full service Bank – Credit, Hedging, and Investment Bank products – with room for growth Foreign and Investment Banks SME & Retail ~10 clients per officer Competitive Advantages: Focus Retail Fast response: Strong relationship with clients, with the credit committee meeting twice a week and response times to clients of no more than one week S i li d i Specialized services Tailor-made solutions Product diversity Investor Relations | 1Q13 | 7/32
- 8. Focus Always on the Client Strategy of product diversity, tailored to meet the needs of each individual client. CDIs CDs LCIs Fixed Income Currencies CDBs RDBs LCAs CCBs Eurobonds Private Placements Financial Letters Local Currency Pricing of Assets and Liabilities Liquidity Management Working Capit Underwriting Working Capital Overdraft Accounts Commodities Equities CRIs Debentures Distribution Treasury Foreign Currency Financial Advisory Capital Trading Local Currency Bank BNDES Onlending Bank Guarantees Compror ACC/ACE Export Finance Clients Corporate Credit FICC PINE Investimentos p Markets Onlending Foreign Currency Trade Finance Participation Funds Corporate & Structured Finance M&A Project Finance Structured Finance Private Credit I t t Guarantees Exclusive Funds Portfolio Management Finimp Letters of Credit 2,770 onlending Syndicated and Structured Loans Fixed Income Currencies Commodities Funds Real Estate Funds Rural Credit Aircraft Financing 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 Swap NDFs Structured Swaps Options Ceará, Mato Grosso, Minas Gerais, Paraná, Pernambuco, Rio de Janeiro, Rio Grande do Sul, Santa Catarina and São Paulo. The origination network also countswith a Cayman branch and a broker dealer in New York (USA). Investor Relations | 1Q13 | 8/32
- 9. Corporate Credit Strong track record and solid credit origination and approval process. Actions Credit Committee Personalized and agile service, working closely with clients and keeping a low client to account officer ratio: each officer handles ~10 economic groups q Meets twice a week – reviewing 20 proposals on average Minimum quorum: 4 members - attendance of CEO or Chairman is mandatory Members: Chairman of the Board Geographic coverage of clients, providing the bank with local and extremely up-to-date credit intelligence and information CEO Chief Operating Officer Chief Administrative Officer Chief Risk Officer Established long term relationships with more than 600 economic groups Origination network is comprised of 12 branches divided into 14 origination platforms in Brazil’s major economic centers Participants: FICC Executive Director Credit Analysts More than 30 credit analysts, assuring that analysis is fundamentally driven and based on industry-specific intelligence 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 Credit Approval: Electronic Process Origination Officers Credit Analysts Credit origination analysis clients Regional Heads of Origination and Credit Analysis CRO, Executive Directors and Analysts of Credit Presentation to the Credit Committee CREDIT COMMITTEE Centralized and unanimous Discussion on sizing sizing, collateral collateral, Credit analysis, visit to clients, data updates, interaction with internal research team decision making process structure etc. Investor Relations | 1Q13 | 9/32
- 10. FICC Proven trackrecord: 2nd in commodity derivatives1. R$ millions Client Notional Derivatives Portfolio by Market Notional Value and MtM Fixed Income Currencies Notional value MtM Stressed MtM March 31st, 2013 20% 60% 354 597 629 498 298 Commodities 126 256 238 197 174 20% 4 287 4 720 4 875 5 036 5 180 4,287 4,720 4,875 5,036 5,180 Mar-12 Jun-12 Sept-12 Dec-12 Mar-13 Market Segments Portfolio Profile Fixed Income: Fixed Floating Inflation Libor Scenario on March March, 31: Duration: 149 days Mark-To-Market : R$174 million Fixed, Floating, Inflation, Currencies: Dollar, Euro, Yen, Pound, Canadian Dollar, Australian Dollar Stress Scenario (Dollar: +31% and Commodities Prices: -30%): Stressed MTM: R$298 million Commodities: Sugar, Soybean (Grain, Meal and Oil), Corn, Cotton, Metals, Energy 1Source: Cetip Report, March 2013 Investor Relations | 1Q13 | 10/32
- 11. PINE Investimentos Consolidation of the investment done through the years in the franchise. Capital Markets: Structuring and Distribution of Fixed Transactions US$250,000,000 R$50,000,000 R$800,000,000 Income Transactions. Financial Advisory: Project & Structured Finance, M&A, and hybrid capital transactions Senior Notes Capital Increase Debentures transactions. Research: Macro, Commodities, and Corporate. Advisor January, 2013 Bookrunner April, 2013 Coordinator January, 2013 Volume of Underwriting Transactions Revenues R$ millions R$ millions 16 9 10 1,045 +11.1% +553.1% 317 160 1Q12 4Q12 1Q13 1Q12 4Q12 1Q13 Investor Relations | 1Q13 | 11/32
- 12. Rating Upgrades ...with market recognition and positive evaluation by rating agencies. The agency based its ratings on the strong asset-quality, adequate liquidity, capital, and earnings. S&P also emphasizes the gradual funding diversification, through foreign issuances, securitizations, and the recent capital increase subscribed by DEG. August 2011 December 2011 Upgrade S&P May 2012 Upgrade pela Fitch August 2012 Upgrade Perspective Moody’s May 2013 Upgrade Fitch May 2010 Upgrade Fitch Moody's explained that the positive outlook reflects PINE PINE’s s profitability through a well well-executed Upgrade S&P strategy, and which has ensured earnings recurrence. The rating action also captures the bank's improved funding diversification, well managed asset quality metrics and its good liquidity and capital management. Fitch attributed this upgrade to PINE’s ability to preserve and to enhance its credit profile in the last several years. Also, the ratings reflect PINE’s Long Term BB+ BB+ Ba2 - n and al ency consistent performance, higher funding diversification and sound asset quality, liquidity and capitalization. According to Fitch, PINE has managed carefully its growth in the corporate segment with a strategy of revenue diversification and cross-selling aiming to reduce the dependence of revenues from lending and to increase the Short Term B B - - Long Term brAA AA-(bra) A1.br Foreign Loca Curre ional 10.74 participation of its FICC Business and PINE Investimentos. Short Term - F1+(bra) Br-1 Nati Investor Relations | 1Q13 | 12/32
- 14. 1Q13 Events and Highlights Recurring results. Positive revenue contributions from all business lines in the quarter: 56.6% from Corporate Credit, 34.1% from FICC, 7.6% from PINE Investimentos, and 1.7% from Treasury. 1 , , y Positive liquidity gap 2 maintained for over 11 quarters: 15 months for credit, versus 17 months for funding. 3 4 commodity derivatives according to Clearing House). Liquid balance sheet, with cash position of R$1.4 billion, equivalent to 42% of time deposits. PINE continues to be ranked among the 15 largest players in derivative transactions and the 2nd largest in di d i i di CETIP (OTC Cl i H ) On April 19, the Central Bank of Brazil approved the capital increase made by Proparco in the Bank. The transaction resulted in the issuance of 2,211,213 preferred shares, totaling approximately R$32 million, with the 5 , , p , g pp y , participation of other shareholders who exercised their preemptive rights at the price of R$14.28 per share. The transaction resulted in a BIS ratio improvement of 40 bps. On April 25, DEG disbursed the first transaction of the PINE-DEG partnership, totaling US$16 million with an eight-year 6 year term for a company in the autoparts sector sector. On April 30, we concluded our first DCM transaction through our New York broker dealer. The deal amounted to US$250 million for a Sugar and Ethanol company in the State of São Paulo. 7 Investor Relations | 1Q13 | 14/32
- 15. 1Q13 Financial Highlights The main performance indicators were within expectations in the quarter... Loan Portfolio1 R$ millions 13.2% Shareholders' Equity 22.4% Funding 2.3% 7 7,426 426 8 8,405 405 6,443 6,589 1,029 1,260 6 589 1 029 1 260 Mar-12 Mar-13 Mar-12 Mar-13 Fee Income -3.2% Net Income -2.1% ROAE -400 bps Mar-12 Mar-13 31 30 47 46 19 5% 15 5% 1Q12 1Q13 1Q12 1Q13 19.5% 15.5% 1Q12 1Q13 1 Includes Stand-by Letters of Credit, Bank Guarantees, Credit Securities to be Received and Private Securities (bonds, CRIs, eurobonds and fund shares) Investor Relations | 1Q13 | 15/32
- 16. Product and Revenue Diversification ... with contributions from all business lines, fruit of the strategy of complete service to clients. Clients with more than one product Penetration Ratio – Clients with more than one product More than 1 product 1 product 3 0 56% 42% 42% 2.7 3.0 2.8 44% 58% 58% Mar -11 Mar -12 Mar -13 Mar -11 Mar -12 Mar -13 Revenue Mix 1Q12 1Q13 Corporate Credit 57.3% PINE Investimentos Corporate Credit 56.6% PINE Investimentos 7.6% Treasury 1.7% 10.2% Treasury 8.2% FICC 34.1% FICC 24.3% Investor Relations | 1Q13 | 16/32
- 17. Net Interest Margin NIM is within the guidance range. NIM Evolution Impacts in the Period +50 bps 5.0% 5.5% Increased activity in the FICC business Loan portfolio growth 4Q12 1Q13 Cash reserves returned to approximately 40% of deposits NIM Composition R$ millions 1Q13 4Q12 1Q12 QoQ YoY Income from financial intermediation 102 93 122 9.7% -16.4% Overhedge effect (2) (1) (1) 100.0% 100.0% Income from financial intermediation ex-overhedge 100 92 121 8.7% -17.4% Provision for loan losses (13) ( 19) ( 11) -31.6% 18.2% Income from financial intermediation after provision 87 73 110 19.2% -20.9% Investor Relations | 1Q13 | 17/32
- 18. Expenses and Efficiency Ratio Rigorous management and control of expenses. Expenses 29.5% 39.3% 37.7% 22 23 22 20 22 24 Personnel Expenses Other Administrative Expenses Efficiency Ratio (%) 1Q12 4Q12 1Q13 Efficiency Ratio R$ millions 1Q13 4Q12 1Q12 QoQ YoY Operating expenses 1 50 49 46 2.0% 8.7% (-) Non-recurring expenses ( ) Non 1 1 1 - - Recurring Operating Expenses (A) 49 48 45 2.1% 8.9% Revenues 2 (B) 130 122 152 6.6% -14.5% Ratio (A/B) 37.7% 39.3% 29.5% -160 bps 820 bps 1Other administrative expenses Other +tax expenses +personnel expenses 2 Gross Income from financial intermediation - provision for loan losses + fee income + overhedge effect Investor Relations | 1Q13 | 18/32
- 19. Loan Portfolio1 The portfolio maintained its growth to reach R$8.4 billion in March... R$ millions 8 405 781 832 102 81 64 47 36 26 Individuals: 0.3% 6,875 7,065 7,426 7,641 7,444 7,948 8,405 1 534 1,687 1,684 1,599 1,699 2,114 2,501 622 772 756 782 1,021 1,154 942 230 190 124 Trade Finance: 9.9% 6,545 6,057 1,117 853 826 251 322 367 621 683 787 670 881 912 881 883 884 822 800 1,372 1,534 Bank Guarantees: 29.8% 71 122 3,136 3,175 3,329 3,289 3,389 3,382 3,274 3,377 3,550 BNDES Onlending: 9.8% Mar - Jun- Sept - Dec- Mar - Jun- Sept - Dec- Mar - M 11 J 11 S t 11 D 11 M 12 J 12 S t 12 D 12 M 13 Private Securities + Working Capital: 50.2% 1 Includes Stand-by Letters of Credit, Bank Guarantees, Credit Securities to be Received and Private Securities (bonds, CRIs, eurobonds and fund shares) Investor Relations | 1Q13 | 19/32
- 20. Continuous Loan Portfolio Management ...with sector diversification... Construction Material 2% Financial Institutions 1Q13 1Q12 2% Other 6% Financial Meatpacking Sugar and Ethanol Telecom 2% Construction Material 2% Other 9% 15% Electric and Renewable Energy 12% Metals and Mining 2% Chemicals 2% Food Industry 3% 2% Sugar and Ethanol 20% Institutions 2% Chemicals 2% Vehicles and Parts 3% Metallurgy Construction Telecom Vehicles and Parts 3% Beverages and Tobacco 3% 3% Construction 9% 3% Beverages and Tobacco 3% Meatpacking 3% 11% Agriculture 8% Infrastructure 7% Specialized Services 6% Foreign Trade Metallurgy 4% Transportation and Logistics 4% Agriculture 8% Infrastructure 8% Electric and Renewable Energy Foreign Trade 5% Specialized Services Transportation and Logistics 5% 4% Food Industry 4% 5% 8% Reduced exposure of the Sugar and Ethanol sector, from 20% to 15%; Increased participation in other sectors such as Electric and Renewable Energy, and Construction; Reshuffle of the 20 largest clients in approximately 20%; 20 largest clients represented 29% of the total portfolio. g p p Investor Relations | 1Q13 | 20/32
- 21. Loan Portfolio Quality ... quality, collaterals, and adequate credit coverage. Loan Portfolio Quality Non Performing Loans > 90 days B 1.2% 1.2% Contracts overdue Installments overdue March 31st, 2013 AA-A 56 0% 30.4% 0.7% 0.6% 0.8% 0.2% 0.2% 0.4% 0.6% 0.6% 56.0% C 9.2% D-E 1.4% F-H Mar-12 Jun-12 Sept-12 Dec-12 Mar-13 Contracts Overdue: Total amount of the contracts overdue for more than 90 days / Loan Portfolio F excluding Bank Guarantees and Stand-by Letters of Credit. 3.0% 3.7% 3 5% Installents Overdue: Total amount of installments overdue for more than 90 days / Loan Portfolio excluding Bank Guarantees and Stand-by Letters of Credit. Credit Coverage Collaterals 3.4% 3.5% 3.3% 3.4% Products Pledge Guarantees Investments 39% 2% 1% Properties Mar-12 Jun-12 Sept-12 Dec-12 Mar-13 Credit Coverage: Provision / Loan Portfolio excluding Bank Guarantees and Stand-by Letters of Credit. Receivables 28% Pledge 30% Investor Relations | 1Q13 | 21/32
- 22. Funding Diversified sources of funding... R$ millions 42% 42% 41% 41% 34% 38% 41% 50% 42% Cash over Deposits 1 011 808 Trade Finance: 11.4% Private Placements: 2.6% 7,062 6 258 6,575 6,443 6,972 6,804 6,589 312 314 593 640 901 205 237 246 233 295 260 409 402 267 310 353 276 234 156 152 78 155 84 86 250 125 118 180 173 171 385 549 757 686 771 1,011 1,073 752 Multilateral Lines: 1.2% International Capital Markets: 6.1% 5,338 5,902 6,258 247 266 946 924 934 938 891 840 903 53 66 112 31 33 212 228 250 281 223 33 30 213 146 796 869 126 126 210 165 106 161 194 176 121 282 201 33 917 41 110 Local Capital Markets: 12.1% Onlending: 13.2% 272 1,114 1,287 1,253 1,196 1,186 1,228 1,177 1,174 972 218 Demand Deposits: 1.9% Interbank Time Deposits: 1.7% 1,720 1,845 1,965 2,130 2,128 2,153 2,056 2,245 2,186 High Net Worth Individual Time Deposits: 1.9% Corporate Time Deposits: 14.8% Mar-11 Jun-11 Sept-11 Dec-11 Mar-12 Jun-12 Sept-12 Dec-12 Mar-13 Institutional Time Deposits: 33.2% Investor Relations | 1Q13 | 22/32
- 23. Asset & Liability Management ... keeping a positive gap between credit and funding. 7.2x 7.3x Leverage Credit over Funding Ratio 6.1x 6.5x 6.7x 86% 84% 83% 82% 87% Mar-12 Jun-12 Sept-12 Dec-12 Mar-13 Mar-12 Jun-12 Sept-12 Dec-12 Mar-13 Leverage: Total Loan Portfolio / Shareholders’ Equity Credit over Funding ratio: Loan Portfolio excluding Bank Guarantees and Stand-by Letters of R$ millions Credit / Total Funding ALM – Average Maturity Total Deposits over Total Funding months Total Deposits Others 6,443 6,972 6,804 7,062 6,589 41% 45% 46% 47% 47% 17 16 16 17 17 59% 55% 54% 53% 53% 14 13 14 14 15 Funding L P tfli Loan Portfolio Mar-12 Jun-12 Sept-12 Dec-12 Mar-13 Mar -12 Jun -12 Sept -12 Dec-12 Mar -13 Investor Relations | 1Q13 | 23/32
- 24. Capital Adequacy Ratio (BIS) BIS ratio reached 17.1%. Tier I Tier II 4.5% 4.2% Minimum Regulatory Capital (11%) 3 0% 2.1% 17.1% 16.6% 19.6% 18.5% 16.4% 15.9% 17.0% 16.2% 17.1% 3.7% 3.4% 3.1% 3.3% 3.0% 2.8% 13.4% 13.2% 15.1% 14.3% 13.3% 12.6% 14.0% 13.4% 15.0% Mar-11 Jun-11 Sept-11 Dec-11 Mar-12 Jun-12 Sept-12 Dec-12 Mar-13 R$ millions Basel (%) Tier I 15.0% Tier II 2.1% Total 17.1% 1,268 185 1,454 Investor Relations | 1Q13 | 24/32
- 25. Corporate Governance and PINE4
- 26. Organizational Structure Non-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 Independent Director External Director Independent Director CEO INTERNAL AUDIT Tikara Yoneya COMPENSATION COMMITTEE Noberto Pinheiro Jr. AUDIT COMMITTEE EXTERNAL AUDIT PWC HUMAN RESOURCES COO Norberto Zaiet CRO Gabriela Chiste CAO Ulisses Alcantarilla CFO Susana Waldeck Origination Investment Banking Asset & Liabilities Back Office Controlling Accounting Credit g Corporate Research Sales & Trading Research Macro/ Commodities/Corporate International Legal Collaterals Management Special Situations Middle Office g Tax Planning IT Accounts Payable Office Management Marketing Investor Relations p Compliance , Internal Controls and IT Security Credit, Market, Operational and Liquidity Risks Financial Modeling Investor Relations | 1Q13 | 26/32
- 27. Corporate Governance PINE commits to best corporate governance practices… Two Independent Members and one 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 at EZTEC, 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 Investor Relations | 1Q13 | 27/32
- 28. Committees …favoring collective decision making. Main decisions are taken by committees. Non-stop exchange of knowledge, ideas, and information. Transparency. 45 days BOARD OF DIRECTORS AUDIT COMMITTEE COMPENSATION COMMITTEE Monthly Bi-annually CEO COMMITTEES EXECUTIVE CREDIT HUMAN ASSET & LIABILITY COMMITTEE ALCO RESOURCES INVESTMENT BANK INTERNAL PERFORMANCE EVALUATION IT ETHICS CONTROLS AND COMPLIANCE RISK Monthly Twice a week Weekly Weekly Every 2 months Monthly Every 2 months Quarterly On demand 45 days Investor Relations | 1Q13 | 28/32
- 29. PINE4 R$ thousands PINE4 Evolution (since 2012) Average Daily Traded Volume 125 120 524 +90.5% 115 110 105 100 95 PINE4: +12.0% IBOV: -2.6% 272 266 275 90 85 80 75 162 1Q12 2Q12 3Q12 4Q12 1Q13 Multiples Dividend Yield 7.8% PINE4 Price (R$) 14.44 P/BV 1 3 6.6% 6.5% 4.5% 4.3% Average: 4.7% 1.3x P/E(1) 7.6x 1.5% PINE4 Bank 1 Bank 2 Bank 3 Bank 4 Bank 5 Dividend Yield: Average daily closing prices of the stocks in 1Q13 / Dividends and Interest on Own Capital of the last twelve months (1) Considers the market consensus for the 2013 net income; source: Bloomberg Investor Relations | 1Q13 | 29/32
- 30. Ownership Structure As of April 30, 2013 Common Preferred Total % Controlling Shareholder 58,444,889 1 5,410,863 7 3,855,752 66.6% Management - 6 ,034,158 6 ,034,158 5.4% Free Float - 2 9,935,154 2 9,935,154 27.0% Individuals - 3,109,773 3,109,773 2.8% Local Institutional Investors - 11,839,327 11,839,327 10.7% Foreign Investors - 8,093,382 8,093,382 7.3% DEG - 5,005,067 5,005,067 4.5% Proparco - 1,887,605 1,887,605 1.7% SubTotal 58,444,889 5 1,380,175 1 09,825,064 99.1% Treasury - 1,017,249 1,017,249 0.9% easu y ,0 , 9 ,0 , 9 Total 116,889,778 52,397,424 1 10,842,313 100% Highlights Issuance of 2,211,213 new shares for the capital increase made by Proparco and minority shareholders on April 30, 2013. PINE hired Itau to serve as Market Maker in order to increase PINE4’s liquidity. The activities of the Market Maker began on May 13, 2013. Investor Relations | 1Q13 | 30/32
- 31. Social Investment and Responsibility Focus on the short, medium and long term. Partnership The UN initiative mobilizes the international business community to adopt fundamental and internationally accepted values in their business practices in the areas Responsible Credit “Lists of Exceptions”: the Bank does not finance projects or those organizations that damage the environment are involved in illegal of human rights, labor relations, environment and combating corruption, which are reflected in ten principles. Since October 2012 environment, labor practices or produce, sell or use products, substances or activities considered prejudicial to society. System of environmental monitoring, financed by the IADB and coordinated by FGV, and internally-produced sustainability reports for corporate loans Principles applied to Project Finance transactions where total project capital costs exceed US$10 million and are based on International Finance Corporation Performance Standards on social and environmental sustainability and on the World Bank Group Environmental Environmental, Health Health, and Safety Guidelines (EHS Guidelines). Since December/2012 Social Investment Recognition Most Green Bank Recognized by the International Finance Corporation (IFC), private agency programs of the World Bank as the most "green" bank as a result of its transactions under the Global Trade Finance Program (GTFP) and its 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), Além da Estrada (Charly Braun) and others. g y pp gy y Investor Relations | 1Q13 | 31/32
- 32. Investor Relations Noberto Pinheiro Jr. CEO Susana Waldeck Norberto Zaiet Junior CFO / IRO COO Raquel Varela Head of Investor Relations Alejandra Hidalgo Investor Relations Manager Ana Lopes Investor Relations Analyst Phone: +55-11-3372-5343 www.pine.com/ir ir@pine.com This report may contain forward-looking statements concerning the business prospects, projections of operating and financial results and growth outlook of PINE. These are merely projections and as such are based solely on management’s expectations regarding the future of the business. These statements depend substantially on market conditions, the performance of the sector and the Brazilian economy (political and economic changes, volatility in interest and exchange rates, technological changes, inflation, financial disintermediation, competitive pressures on products and prices and changes in tax legislation) and therefore are subject to change without prior notice. . Investor Relations | 1Q13 | 32/32