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3Q12 Institutional Presentation

This document provides an overview of a Brazilian bank called PINE. It discusses PINE's history since 1939, business lines including corporate credit, treasury services, and investment banking. It also covers PINE's competitive advantages, focus on client relationships, solid financial position, and recent upgrades to its credit ratings. The document contains details on PINE's operations, strategic pillars, and financial performance in both text and graphical formats.

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3Q12 Institutional Presentation
History and Profile PINE History Business Strategy Competitive Landscape Focus on the Client Corporate Credit FICC PINE Investimentos Distribution Pillars Rating Upgrades Summary Highlights and Results Corporate Governance and PINE4 Organizational Structure Corporate Governance Committees Dividends and Interest on own Capital Appendix Investor Relations | 3Q12 | 2/33
History and Profile
PINE Specialized in providing financial solutions for wholesale clients… Credit Portfolio by Annual Client Revenues September 30th, 2012 Over R$1 billion 56% R$150 million to R$500 million 19% R$500 million to R$1 billion 18% Up to R$150 million 7% Profile Focused on establishing long-term relationships Profound knowledge and product penetration Business is structured along four primary business lines: • Corporate Credit: credit and financing products • FICC: instruments for hedging and risk management • PINE Investimentos: Investment Banking and Investment Management • Distribution of Banking Products: Funding and investment solutions for foreign and local investors Investor Relations | 3Q12 | 4/33
November, 2012 Opening of broker dealer in New York, PINE Securities USA LLC Subscription of PINE’s capital by DEG, Proparco, Controlling shareholder and management 801 827 825 867 1,015 1,216 History ...with extensive knowledge of Brazil’s corporate credit cycle. 1939 Pinheiro Family founds Banco Central do Nordeste 1975 Noberto Pinheiro End of 2007 August, 2012 Focus on expanding the Corporate Banking franchise Discontinuation of the payroll-deductible loan business October, 2007 Creation of the Hedging Desk May, 2007 Creation of PINE Investimentos product line and opening of Cayman branch 2005 October, 2011 Subscription of PINE’s capital by DEG 18 Noberto Pinheiro becomes PINE’s sole shareholder Corporate Credit Portfolio (R$ Millions) Shareholders' Equity (R$ Millions) 62 121 126 140 136 152 171 209 155 184 222 341 521 620 755 663 761 335 1,214 2,854 4,254 4,804 6,033 7,063 7,444 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 Sept-12 becomes one of BMC’s controlling shareholders 1997 Noberto and Nelson Pinheiro sell their stake in BMC and found PINE Asian Subprime Crisis March, 2007 IPO Devaluation of the real Nasdaq Sept. 11 Brazilian Elections (Lula) Russian Crisis European Community May, 2012 15 years Investor Relations | 3Q12 | 5/33
Business Strategy
Competitive Landscape PINE serves a niche market of companies that lack adequate banking options, seeking a bank that fully understands their needs. Large Multi-Services banks 100% Corporate Market Consolidation of the banking sector has decreased the supply of credit lines and financial instruments for corporates Foreign banks are in a deleveraging process PINE 100% focused on providing complete service to companies, offering customized products . Corporate & SME SME & Retail Retail Full service Bank – Credit, Hedging, and Investment Bank products – with room for growth ~10 clients per officer Competitive Advantages: Focus 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 Specialized services Tailor-made solutions Product diversity Foreign and Investment Banks Investor Relations | 3Q12 | 7/33
Focus Always on the Client The bank develops a strategy of product diversity, tailored to meet the needs of each client. Working Capital CDIs Overdraft Pricing of Assets and Liabilities Fixed Income Currencies Commodities Equities CDBs CDs RDBs LCAs LCIs CRIs Debentures CCBs Eurobonds Private Placements Financial Letters Local Currency Foreign Currency Distribution Treasury Liquidity Management Trading Underwriting Working Capital Local Currency Onlending Foreign Currency Trade Finance Structured Finance Bank Guarantees Capital Markets Financial Advisory MA Project Finance Participation Funds Corporate Structured Finance Investment Management Private Credit Funds Real Estate Funds Exclusive Funds Portfolio Management Clients Corporate Credit FICC PINE Investimentos Fixed Income Currencies Commodities Swap NDFs Structured Swaps Accounts BNDES Onlending Bank Guarantees Compror ACC/ACE Export Finance Finimp Letters of Credit 2,770 onlending Rural Credit Syndicated and Structured Loans Options Investor Relations | 3Q12 | 8/33
Corporate Credit Strong 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 Chairman is mandatory Members: Chairman of the Board CEO Chief Operating Officer Chief Administrative Officer Chief Risk Officer Personalized, agile service, working closely with clients and keeping a low client to account officer ratio: each officer handles ~10 economic groups on average. Geographic coverage of clients, providing the bank with local and extremely up-to-date credit intelligence and information. Established long term relationships with more than 600 economic groups Origination network is comprised of 11 branches divided into 14 origination platforms in Brazil’s major economic centers Participants: FICC Executive Director Credit Analysts Other members of the Corporate Banking origination team More than 30 credit analysts, assuring that analysis is fundamentally driven and based on industry-specific intelligence Efficient loan and collateral processes, documentation, and controls, which has resulted in a low NPL track record Credit Approval: Electronic Process OOrriiggiinnaattiioonn OOffffiicceerrss CCrreeddiitt AAnnaallyyssttss Credit origination Credit analysis, visit to clients, data updates, interaction with internal research team Regional Heads of Origination and Credit Analysis CRO, Executive Directors and Analysts of Credit Presentation to the Credit Committee CCRREEDDIITT CCOOMMMMIITTTTEEEE Centralized and unanimous decision making process Discussion on sizing, collateral, structure, etc. Investor Relations | 3Q12 | 9/33
FICC PINE is the 2nd player in commodity derivatives1. Client Notional Derivatives Portfolio by Market Notional Value and MtM September 30th, 2012 R$ millions Fixed Income 22% Commodities 22% Currency 56% Notional Value MtM Stressed MtM 358 354 354 178 157 126 597 629 256 238 3,709 3,712 4,287 4,720 4,875 Sept-11 Dec-11 Mar-12 Jun-12 Sept-12 Market Segments Portfolio Profile Scenario on September, 30th Duration: 210 days Mark-To-Market : R$238 million Stress Scenario (Dollar: +31% and Commodities Prices: -30%): Stressed MTM: R$629 million Fixed Income: Fixed, Floating, Inflation, Libor Currencies: Dollar, Euro, Yen, Pound, Canadian Dollar, Australian Dollar Commodities: Sugar, Soybean (Grain, Meal and Oil), Corn, Cotton, Metals, Energy 1Source: Cetip Report, September 2012 Investor Relations | 3Q12 | 10/33
PINE Investimentos Consolidation of the Investment Banking franchise. Transactions Capital Markets: Structuring and Distribution of Fixed Income Transactions. Financial Advisory: Project Structured Finance, MA, and hybrid capital transactions. Assets under Management: Fixed Income, Credit Funds, Exclusive Mandates. R$ 90,400,000 Debentures Coordinator September, 2012 R$ 36,000,000 Debentures Lead Coordinator August, 2012 R$ 90,000,000 Debentures Coordinator July, 2012 Volume of Underwriting Transactions Revenues R$ Millions R$ Millions 242 346 217 623 880 3Q11 2Q12 3Q12 9M11 9M12 2 18 18 14 52 3Q11 2Q12 3Q12 9M11 9M12 Investor Relations | 3Q12 | 11/33
Investment alternatives in local and foreign currency to domestic and foreign investors. 5,182 6,248 6,725 973 1,447 1,679 4,209 4,801 5,046 Distribution Actions Funding Responsible for serving investors, offering traditional investments and also alternatives tied to the credit origination platform, capital markets, and asset management. It counts on PINE’s expertise in structuring and intermediating fixed income transactions. Divided by type of investors to provide tailor made solutions. R$ Millions International Local Sept-10 Sept -11 Sept-12 Family Offices Individuals Corporates Asset Managers Financial Institutions Pension Funds Foreign Investors Investors Market Segments Local Currency Traditional investments (local deposits such as CDB/RDB/CDI, LCA/LCI) Senior and subordinated local notes Debt Capital Markets (CCBs, Debentures, FIDCs, CRIs, CRAs, CDCAs, among others) Foreign Currency Time Deposits and CD – Certificate of Deposit Senior and Subordinated bonds issued by PINE Debt Capital Markets (CCB, Credit Fund, Bonds) – through Credit Linked Notes Investor Relations | 3Q12 | 12/33
Pillars Strategy supported by solid fundamentals, built and achieved over the years… Strong and motivated team Meritocracy Right incentives Highly qualified team Adequate capital structure Capital Adequacy Ratio (BIS) of 17.0% Regulatory Capital: R$1.4 billion Corporate clients Strong relationship Customized service In-depth knowledge of client needs Product diversity Efficient funding structure Longer average maturities: 16 months (Sept/12) Greater diversification of funding sources USD25 million 10 year funding with Proparco Investor Relations | 3Q12 | 13/33
Rating Upgrades ...with market recognition and positive evaluation by rating agencies. On December 7th, 2011: PINE’s rating in global scale, to BB+ from BB- (two notches) PINE’s rating in national scale, to brAA from brA (three notches) On August 23rd, 2011: Local currency rating, to brA from On May 14th, 2012 Foreign and Local Currency Long- Term IDR to 'BB' from 'BB'- National Long-Term Rating to 'A+(bra)' from 'A(bra)' Viability rating upgraded to 'bb' from 'bb-' Banco Pine S.A. USD 125 million On August 23rd, 2012: PINE’s outlook upgraded to Positive brA-Reaffirmed the Rating in foreign currency in BB-Revision from PINE’s outlook to positive Subordinated notes to 'B+' from 'B' Fitch attributed this upgrade to the diversification of PINE's funding profile and its good assets and liabilities management, provided by the adequate match of the credit and funding books. In addition, the Agency considered that the positive liquidity gap allied with the good cash position evidences the Bank's overall solid financial strength. According to the Agency, the Bank’s continued increase in fee income, mainly due to higher product penetration, is a good indicator of the successful maintenance of profitability levels. The agency based its ratings on the strong asset-quality, adequate liquidity, capital, and earnings. SP also emphasizes the gradual funding diversification, through foreign issuances, securitizations, and the recent capital increase subscribed by DEG. Moody's explained that the positive outlook reflects PINE’s profitability through a well-executed 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. Investor Relations | 3Q12 | 14/33
Highlights and Results
3Q12 Events and Highlights US$30 million, 7-year funding transaction with the Global Climate Partnership Fund (GCPF), fund backed by the German Government with the KFW Bankengruppe, the Government of Denmark and IFC, and managed by Deutsche Bank. Approval by the Central Bank of the first phase of the capital increase in the amount of R$139.6 million. Amount already incorporated into shareholders´equity. Positive revenue contributions from all business lines in 9M12: 60.2% from Corporate Credit, 17.6% from Hedging Desk, 11.2% from Treasury and 11.0% from PINE Investimentos, which continues to demonstrate the recurring nature of these revenue streams. Positive liquidity gap maintained for over 10 quarters: 14 months for credit versus 16 months for funding. Highly liquid balance sheet, with a strong cash position of R$1.4 billion, or 41% of time deposits. Nominated by the International Finance Corporation (IFC), as the best issuing bank, in recognition of Pine´s support of the energy efficiency sector. Ranked amongst the 15 largest players in the CETIP derivatives ranking, and 2nd largest in commodity derivatives. 9th largest bank in Brazil in offering credit to large corporates, 15th in credit to companies, and 5th in wealth generated per employee, according to the “Melhores e Maiores” ranking compiled by Exame magazine. Investor Relations | 3Q12 | 16/33
3Q12 Financial Highlights The main performance indicators continued to show positive development in the period… R$ Millions Total Credit Risk1 8.3% 6,875 7,444 Sept-11 Sept-12 Total Funding 7.6% 6,248 6,725 Sept -11 Sept-12 Shareholders' Equity 982 1,216 23.8% Sept-11 Sept-12 Net Income 23.7% 38 47 3Q11 3Q12 15 28 Fee Income 86.7% 3Q11 3Q12 ¹ Includes Letters of Credit to be used, Bank Guarantees, Credit Securities to be Received, and Private Securities (bonds, DRIs, eurobond,s and fund shares) ROAE 170 bps 19.0%2 17.3% 17.7% 3Q11 3Q12 2 Excludes capital increase of R$139.6 million incorporated into shareholders´equity Investor Relations | 3Q12 | 17/33
Product and Revenue Diversification ...with contributions from all business lines, fruits of the strategy of complete service to clients. Clients with more than one Product Penetration Ratio – Clients with more than one Product More than 1 product 1 product 41% 40% 37% 59% 60% 63% 2.8 2.9 2.8 Sept-10 Sept-11 Sept-12 Sept-10 Sept-11 Sept-12 Revenue Mix Corporate Credit 65.9% PINE Investimentos 3.9% Treasury 4.9% FICC 25.3% 9M11 Corporate Credit 60.2% PINE Investimentos 11.0% Treasury 11.2% FICC 17.6% 9M12 Investor Relations | 3Q12 | 18/33
Loan Portfolio1 The portfolio has maintained its product distribution… R$ millions 827 822 800 881 883 883 1,022 1,117 1,372 1,534 1,687 1,684 1,599 1,699 555 533 622 772 756 782 1,021 1,154 942 336 269 230 190 124 100 81 64 47 Retail Trade finance Guarantees 5,613 6,033 6,057 6,545 6,875 7,063 7,426 7,641 7,444 846 881 912 644 279 325 386 670 783 4 75 172 3,251 3,358 3,132 3,126 3,300 3,286 3,370 3,332 3,174 Sept-10 Dec-10 Mar-11 Jun-11 Sept-11 Dec-11 Mar-12 Jun-12 Sept-12 ¹ Includes Letters of Credit to be used, Bank Guarantees, Credit Securities to be Received, and Private Securities (bonds, DRIs, eurobonds, and fund shares) BNDES Onlending Private Securities Working Capital Investor Relations | 3Q12 | 19/33
Loan Portfolio Quality ... with quality, collaterals, and adequate credit coverage. Loan Portfolio Quality Non Performing Loans 90 days September 30th, 2012 0.5% 0.6% 0.7% 0.6% 0.8% 0.2% 0.2% 0.2% 0.2% 0.4% Contracts overdue Installments Overdue AA-A B 40.5% C 11.7% D-E 2.5% F-H 1.6% Sept-11 Dec-11 Mar-12 Jun-12 Sept-12 Credit Coverage Collaterals Products Pledge 47% Receivables 26% Guarantees 2% Investments 3% Properties Pledge 22% 43.7% 2.7% +80 bps 3.7% 3.5% Sept-11 Jun-12 Sept-12 Investor Relations | 3Q12 | 20/33
Active Loan Portfolio Management 3Q12 2Q12 Sugar and Ethanol; 19% Construction 10% Electric and Renewable Energy; 9% Meatpacking; 2% Chemicals; 3% Food Industry; 3% Metal and Mining; 3% Beverages and Tobacco; 4% Vehicles and Parts; Specialized Services; 4% 4% Financial Institutions; 2% Telecom 2% Others; 9% Sugar and Ethanol 16% Construction 12% Electric and Renewable Energy 10% Financial Institutions Chemicals Telecom 2% Food Industry 3% 2% Beverages and Tobacco 3% Vehicles and Parts 4% Metal and Mining 4% Specialized 2% Construction Material 2% Others 9% Transportation and Logistics; 5% Foreign Trade; 5% Agriculture 9% Infrastructure 6% Foreign Trade Transportation and Logistics 6% 6% Reduction of exposure to the Sugar and Ethanol sector, from 19% to 16%; Agriculture; 9% Infrastructure; 7% Increased participation in other sectors such as Electric and Renewable Energy, Transportation and Logistics, Foreign Trade; Reshuffle of the 20 largest clients in approximately 25%; Reduced relative participation of the top 20 clients when compared to shareholders equity by 6%, or 17% when considering the capital increase; and 20 largest clients represented 27% of the total portfolio. Services 4% Investor Relations | 3Q12 | 21/33
Funding Diversified sources of funding… R$ millions 829 898 867 867 868 813 626 31 33 829 - 21 33 247 256 281 291 553 561 194 194 185 205 237 246 233 295 260 200 160 282 267 310 353 276 234 156 166 158 155 84 86 250 125 118 180 413 377 435 596 814 753 841 1,089 1,083 Trade Finance Private Placements Multilateral Lines International Capital Markets Local Capital Markets 5,437 5,322 5,182 5,902 6,248 6,544 6,421 6,933 6,725 53 66 112 210 165 106 161 194 42 33 867 46 176 224 213 320 198 214 41 272 218 1,463 1,530 1,114 212 228 250 281 223 1,287 1,253 1,196 1,186 1,228 1,177 1,654 1,592 1,720 1,845 1,965 2,130 2,128 2,153 2,056 Sept-10 Dec-10 Mar-11 Jun-11 Sept-11 Dec-11 Mar-12 Jun-12 Sept-12 BNDES Demand Deposits Interbank Time Deposits High Net Worth Individual Time Deposits Corporate Time Deposits Institutional Time Deposits Investor Relations | 3Q12 | 22/33
Asset Liability Management ... presenting a positive gap between credit and funding. Matching of Transactions CREDIT FUNDING BNDES BNDES Trade Finance Trade Finance Deposits Working Capital, Private Securities1 And Cash Financial Bills Intl. Funding Loan / Total Funding 80% 76% 81% 76% 73% 1 Includes debentures, CRIs, eurobonds, and fund shares Sept-11 Dez-11 Mar-12 Jun-12 Sept-12 ALM Deposits vs. Total Funding R$ Millions R$ Millions - 2,947 2,165 1,363 Credit Funding 494 1,739 2,155 1,679 957 33 118 162 No maturity Up to 3 months From 3 to 12 months From 1 to 3 years From 3 to 5 years More than 5 years 6,248 6,933 6,725 41% 45% 46% 59% 55% 54% Sept-11 Jun-11 Sept-12 Others Total Deposits Investor Relations | 3Q12 | 23/33
Capital Adequacy Ratio (BIS) BIS ratio reached 17.0%. Tier II Tier I Minimum Capital Requirement (11%) 3.6% 3.6% 3.7% 3.4% 4.5% 4.2% 3.1% 3.3% 3.0% 18.4% 17.4% 17.1% 16.6% 19.6% 18.5% 16.4% 15.9% 17.0% 14.8% 13.8% 13.4% 13.2% 15.1% 14.3% 13.3% 12.6% 14.0% Sept -10 Dec -10 Mar -11 Jun -11 Sept -11 Dec -11 Mar -12 Jun -12 Sept -12 R$ million BIS Ratio(%) 1,210 Tier I 14.0% Tier II 256 3.0% Total 1,466 17.0% Investor Relations | 3Q12 | 24/33
Capital Increase Central Bank approved the capital increase announced in August 2012. The capital increase resulted in the issuance of 6,558,123 common shares in the amount of R$93,649,996.44, and 3,220,203 preferred shares, totaling R$45,984,498.84, at a unit price of R$14.28. Summary Total of R$139.6 million Total Shares Subscribed: 6,558,123 common shares and 3,220,203 preferred shares: 2,100,839 by DEG; 519,577 by Management; 587,732 by minorities; and 12,055 left overs subscribed by minority shareholders. With the aproval of the Central Bank, the shareholders´ structure is as follows: Common Preferred Total % Controlling Shareholder 58,444,889 15,595,863 74,040,752 68.2% Management - 5,923,784 5,923,784 5.5% Free Float - 28,271,724 28,271,724 26.0% Individuals - 2,734,411 2,734,411 2.5% Institutional Investors - 11,330,025 11,330,025 10.4% DEG - 5,005,067 5,005,067 4.6% Foreign Investors - 9,202,221 9,202,221 8.5% Treasury - 394,840 394,840 0.4% Total 58,444,889 50,186,211 108,631,100 100.0% For managerial purposes, minority shareholders were considered individuals. Investor Relations | 3Q12 | 25/33
Corporate Governance and PINE4
Management Structure Non-bureaucratic, entrepreneurial, and meritocratic culture with a flat hierarchy, speeding the decision making process. Noberto Pinheiro Noberto Pinheiro Jr Maurizio Mauro Gustavo Junqueira Mailson da Nóbrega Antonio Hermann CEO Chairman Vice Chairman Independent INTERNAL AUDIT Tikara Yoneya COMPENSATION COMMITTEE Noberto N. Pinheiro Junior AUDIT COMMITTEE EXTERNAL AUDIT PWC Director External Director Independent Director Independent Director BOARD COO Norberto Zaiet CRO Gabriela Chiste HUMAN RESOURCES Sidney Vilhena CAO Ulisses Alcantarilla CFO Susana Waldeck Origination Investment Banking Sales Trading Research Macro / Commodities International Asset Liabilities Back Office Legal Collaterals Management Special Situations Middle Office Controlling Accounting Tax Planning IT Accounts Payable Office Management Marketing Investor Relations Credit and F.I. Research Compliance Internal Controls Credit, Market ,and Liquidity Risks Investor Relations | 3Q12 | 27/33
Corporate Governance PINE commits to best corporate governance practices… Three 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 Antonio Hermann: Former CEO of Banco Itamarati, Director at FEBRABAN and elected Director of Brazilian Banking Association 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 (BMFBovespa) 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 | 3Q12 | 28/33
Committees …favoring collective decision making. Main decisions are taken by committees: Board of Directors and a structure of specific committees Non-stop exchange of knowledge, ideas, and information Transparency 45 days RISK COMMITTEE AUDIT COMMITTEE BOARD OF DIRECTORS COMPENSATION COMMITTEE 45 days Bi-annually Monthly CEO COMMITTEES INVESTMENT EXECUTIVE CREDIT LITIGATION ASSET LIABILITY COMMITTEE ALCO HUMAN RESOURCES BANK INTERNAL PERFORMANCE EVALUATION CONTROLS AND IT ETHICS COMPLIANCE Monthly Twice a week Weekly Weekly Bi-monthly Every 2 months Monthly Bi-monthly Quarterly On demand Investor Relations | 3Q12 | 29/33
Dividends and Interest on Own Capital PINE has delivered an attractive dividend yield paying dividends/interest on own capital on a quarterly basis. 25 25 33 45 30 35 40 35 55 40 30 R$ millions 2H07 1H08 2H08 1H09 2H09 1H10 2H10 1H11 2H11 1H12 3Q12 Investor Relations | 3Q12 | 30/33
Appendix
Social Investment and Responsibility PINE supports and promotes the Brazilian culture and sports Social Instituto Alfabetização Solidária Instituto Casa da Providência Sports Minas Tênis Clube: training program for athletes Most Green Bank Recognized by the International Finance Corporation (IFC), private agency programs of the World Bank as the most green bank as a Culture Paulo von Poser: exhibit of the painter Paulo von Poser, who is one of Brazil’s most prominent artists Quebrando o Tabu: documentary based on the analysis from the former President of Brazil, Fernando Henrique Cardoso, on the fight against drugs Além da Estrada: motion picture, which received the award for best director in the 2010 Rio Festival Responsible Credit “Lists of Exceptions”: the Bank does not finance result of its transactions under the Global Trade Finance Program (GTFP) and its on lending to companies focused on renewable energy and ethanol Global Compact PINE joined the Global Compact initiative in October 2012. The UN initiative mobilizes the international business community to adopt fundamental and internationally accepted values in their business practices in the areas of human rights, labor relations, environment and combating corruption, which are reflected in ten principles. projects or those organizations that damage the environment, are involved in illegal 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. Investor Relations | 3Q12 | 32/33
Investor Relations Noberto N. Pinheiro Júnior 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 Fone: +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. Given that PINE is in quiet period because of the issuance of Financial Bills of its 2nd public issuance, we recommend that any potential investor read in conjunction with this Press Release, the Final Prospectus (in particular the section Risk Factors) and the documents incorporated by reference to it, such as PINE's Reference Form, available on its website (www.pine.com/ir). Investor Relations | 3Q12 | 33/33

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3Q12 Institutional Presentation

  • 1.
  • 2.
    History and Profile PINE History Business Strategy Competitive Landscape Focus on the Client Corporate Credit FICC PINE Investimentos Distribution Pillars Rating Upgrades Summary Highlights and Results Corporate Governance and PINE4 Organizational Structure Corporate Governance Committees Dividends and Interest on own Capital Appendix Investor Relations | 3Q12 | 2/33
  • 3.
  • 4.
    PINE Specialized inproviding financial solutions for wholesale clients… Credit Portfolio by Annual Client Revenues September 30th, 2012 Over R$1 billion 56% R$150 million to R$500 million 19% R$500 million to R$1 billion 18% Up to R$150 million 7% Profile Focused on establishing long-term relationships Profound knowledge and product penetration Business is structured along four primary business lines: • Corporate Credit: credit and financing products • FICC: instruments for hedging and risk management • PINE Investimentos: Investment Banking and Investment Management • Distribution of Banking Products: Funding and investment solutions for foreign and local investors Investor Relations | 3Q12 | 4/33
  • 5.
    November, 2012 Openingof broker dealer in New York, PINE Securities USA LLC Subscription of PINE’s capital by DEG, Proparco, Controlling shareholder and management 801 827 825 867 1,015 1,216 History ...with extensive knowledge of Brazil’s corporate credit cycle. 1939 Pinheiro Family founds Banco Central do Nordeste 1975 Noberto Pinheiro End of 2007 August, 2012 Focus on expanding the Corporate Banking franchise Discontinuation of the payroll-deductible loan business October, 2007 Creation of the Hedging Desk May, 2007 Creation of PINE Investimentos product line and opening of Cayman branch 2005 October, 2011 Subscription of PINE’s capital by DEG 18 Noberto Pinheiro becomes PINE’s sole shareholder Corporate Credit Portfolio (R$ Millions) Shareholders' Equity (R$ Millions) 62 121 126 140 136 152 171 209 155 184 222 341 521 620 755 663 761 335 1,214 2,854 4,254 4,804 6,033 7,063 7,444 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 Sept-12 becomes one of BMC’s controlling shareholders 1997 Noberto and Nelson Pinheiro sell their stake in BMC and found PINE Asian Subprime Crisis March, 2007 IPO Devaluation of the real Nasdaq Sept. 11 Brazilian Elections (Lula) Russian Crisis European Community May, 2012 15 years Investor Relations | 3Q12 | 5/33
  • 6.
  • 7.
    Competitive Landscape PINEserves a niche market of companies that lack adequate banking options, seeking a bank that fully understands their needs. Large Multi-Services banks 100% Corporate Market Consolidation of the banking sector has decreased the supply of credit lines and financial instruments for corporates Foreign banks are in a deleveraging process PINE 100% focused on providing complete service to companies, offering customized products . Corporate & SME SME & Retail Retail Full service Bank – Credit, Hedging, and Investment Bank products – with room for growth ~10 clients per officer Competitive Advantages: Focus 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 Specialized services Tailor-made solutions Product diversity Foreign and Investment Banks Investor Relations | 3Q12 | 7/33
  • 8.
    Focus Always onthe Client The bank develops a strategy of product diversity, tailored to meet the needs of each client. Working Capital CDIs Overdraft Pricing of Assets and Liabilities Fixed Income Currencies Commodities Equities CDBs CDs RDBs LCAs LCIs CRIs Debentures CCBs Eurobonds Private Placements Financial Letters Local Currency Foreign Currency Distribution Treasury Liquidity Management Trading Underwriting Working Capital Local Currency Onlending Foreign Currency Trade Finance Structured Finance Bank Guarantees Capital Markets Financial Advisory MA Project Finance Participation Funds Corporate Structured Finance Investment Management Private Credit Funds Real Estate Funds Exclusive Funds Portfolio Management Clients Corporate Credit FICC PINE Investimentos Fixed Income Currencies Commodities Swap NDFs Structured Swaps Accounts BNDES Onlending Bank Guarantees Compror ACC/ACE Export Finance Finimp Letters of Credit 2,770 onlending Rural Credit Syndicated and Structured Loans Options Investor Relations | 3Q12 | 8/33
  • 9.
    Corporate Credit Strongtrack 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 Chairman is mandatory Members: Chairman of the Board CEO Chief Operating Officer Chief Administrative Officer Chief Risk Officer Personalized, agile service, working closely with clients and keeping a low client to account officer ratio: each officer handles ~10 economic groups on average. Geographic coverage of clients, providing the bank with local and extremely up-to-date credit intelligence and information. Established long term relationships with more than 600 economic groups Origination network is comprised of 11 branches divided into 14 origination platforms in Brazil’s major economic centers Participants: FICC Executive Director Credit Analysts Other members of the Corporate Banking origination team More than 30 credit analysts, assuring that analysis is fundamentally driven and based on industry-specific intelligence Efficient loan and collateral processes, documentation, and controls, which has resulted in a low NPL track record Credit Approval: Electronic Process OOrriiggiinnaattiioonn OOffffiicceerrss CCrreeddiitt AAnnaallyyssttss Credit origination Credit analysis, visit to clients, data updates, interaction with internal research team Regional Heads of Origination and Credit Analysis CRO, Executive Directors and Analysts of Credit Presentation to the Credit Committee CCRREEDDIITT CCOOMMMMIITTTTEEEE Centralized and unanimous decision making process Discussion on sizing, collateral, structure, etc. Investor Relations | 3Q12 | 9/33
  • 10.
    FICC PINE isthe 2nd player in commodity derivatives1. Client Notional Derivatives Portfolio by Market Notional Value and MtM September 30th, 2012 R$ millions Fixed Income 22% Commodities 22% Currency 56% Notional Value MtM Stressed MtM 358 354 354 178 157 126 597 629 256 238 3,709 3,712 4,287 4,720 4,875 Sept-11 Dec-11 Mar-12 Jun-12 Sept-12 Market Segments Portfolio Profile Scenario on September, 30th Duration: 210 days Mark-To-Market : R$238 million Stress Scenario (Dollar: +31% and Commodities Prices: -30%): Stressed MTM: R$629 million Fixed Income: Fixed, Floating, Inflation, Libor Currencies: Dollar, Euro, Yen, Pound, Canadian Dollar, Australian Dollar Commodities: Sugar, Soybean (Grain, Meal and Oil), Corn, Cotton, Metals, Energy 1Source: Cetip Report, September 2012 Investor Relations | 3Q12 | 10/33
  • 11.
    PINE Investimentos Consolidationof the Investment Banking franchise. Transactions Capital Markets: Structuring and Distribution of Fixed Income Transactions. Financial Advisory: Project Structured Finance, MA, and hybrid capital transactions. Assets under Management: Fixed Income, Credit Funds, Exclusive Mandates. R$ 90,400,000 Debentures Coordinator September, 2012 R$ 36,000,000 Debentures Lead Coordinator August, 2012 R$ 90,000,000 Debentures Coordinator July, 2012 Volume of Underwriting Transactions Revenues R$ Millions R$ Millions 242 346 217 623 880 3Q11 2Q12 3Q12 9M11 9M12 2 18 18 14 52 3Q11 2Q12 3Q12 9M11 9M12 Investor Relations | 3Q12 | 11/33
  • 12.
    Investment alternatives inlocal and foreign currency to domestic and foreign investors. 5,182 6,248 6,725 973 1,447 1,679 4,209 4,801 5,046 Distribution Actions Funding Responsible for serving investors, offering traditional investments and also alternatives tied to the credit origination platform, capital markets, and asset management. It counts on PINE’s expertise in structuring and intermediating fixed income transactions. Divided by type of investors to provide tailor made solutions. R$ Millions International Local Sept-10 Sept -11 Sept-12 Family Offices Individuals Corporates Asset Managers Financial Institutions Pension Funds Foreign Investors Investors Market Segments Local Currency Traditional investments (local deposits such as CDB/RDB/CDI, LCA/LCI) Senior and subordinated local notes Debt Capital Markets (CCBs, Debentures, FIDCs, CRIs, CRAs, CDCAs, among others) Foreign Currency Time Deposits and CD – Certificate of Deposit Senior and Subordinated bonds issued by PINE Debt Capital Markets (CCB, Credit Fund, Bonds) – through Credit Linked Notes Investor Relations | 3Q12 | 12/33
  • 13.
    Pillars Strategy supportedby solid fundamentals, built and achieved over the years… Strong and motivated team Meritocracy Right incentives Highly qualified team Adequate capital structure Capital Adequacy Ratio (BIS) of 17.0% Regulatory Capital: R$1.4 billion Corporate clients Strong relationship Customized service In-depth knowledge of client needs Product diversity Efficient funding structure Longer average maturities: 16 months (Sept/12) Greater diversification of funding sources USD25 million 10 year funding with Proparco Investor Relations | 3Q12 | 13/33
  • 14.
    Rating Upgrades ...withmarket recognition and positive evaluation by rating agencies. On December 7th, 2011: PINE’s rating in global scale, to BB+ from BB- (two notches) PINE’s rating in national scale, to brAA from brA (three notches) On August 23rd, 2011: Local currency rating, to brA from On May 14th, 2012 Foreign and Local Currency Long- Term IDR to 'BB' from 'BB'- National Long-Term Rating to 'A+(bra)' from 'A(bra)' Viability rating upgraded to 'bb' from 'bb-' Banco Pine S.A. USD 125 million On August 23rd, 2012: PINE’s outlook upgraded to Positive brA-Reaffirmed the Rating in foreign currency in BB-Revision from PINE’s outlook to positive Subordinated notes to 'B+' from 'B' Fitch attributed this upgrade to the diversification of PINE's funding profile and its good assets and liabilities management, provided by the adequate match of the credit and funding books. In addition, the Agency considered that the positive liquidity gap allied with the good cash position evidences the Bank's overall solid financial strength. According to the Agency, the Bank’s continued increase in fee income, mainly due to higher product penetration, is a good indicator of the successful maintenance of profitability levels. The agency based its ratings on the strong asset-quality, adequate liquidity, capital, and earnings. SP also emphasizes the gradual funding diversification, through foreign issuances, securitizations, and the recent capital increase subscribed by DEG. Moody's explained that the positive outlook reflects PINE’s profitability through a well-executed 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. Investor Relations | 3Q12 | 14/33
  • 15.
  • 16.
    3Q12 Events andHighlights US$30 million, 7-year funding transaction with the Global Climate Partnership Fund (GCPF), fund backed by the German Government with the KFW Bankengruppe, the Government of Denmark and IFC, and managed by Deutsche Bank. Approval by the Central Bank of the first phase of the capital increase in the amount of R$139.6 million. Amount already incorporated into shareholders´equity. Positive revenue contributions from all business lines in 9M12: 60.2% from Corporate Credit, 17.6% from Hedging Desk, 11.2% from Treasury and 11.0% from PINE Investimentos, which continues to demonstrate the recurring nature of these revenue streams. Positive liquidity gap maintained for over 10 quarters: 14 months for credit versus 16 months for funding. Highly liquid balance sheet, with a strong cash position of R$1.4 billion, or 41% of time deposits. Nominated by the International Finance Corporation (IFC), as the best issuing bank, in recognition of Pine´s support of the energy efficiency sector. Ranked amongst the 15 largest players in the CETIP derivatives ranking, and 2nd largest in commodity derivatives. 9th largest bank in Brazil in offering credit to large corporates, 15th in credit to companies, and 5th in wealth generated per employee, according to the “Melhores e Maiores” ranking compiled by Exame magazine. Investor Relations | 3Q12 | 16/33
  • 17.
    3Q12 Financial Highlights The main performance indicators continued to show positive development in the period… R$ Millions Total Credit Risk1 8.3% 6,875 7,444 Sept-11 Sept-12 Total Funding 7.6% 6,248 6,725 Sept -11 Sept-12 Shareholders' Equity 982 1,216 23.8% Sept-11 Sept-12 Net Income 23.7% 38 47 3Q11 3Q12 15 28 Fee Income 86.7% 3Q11 3Q12 ¹ Includes Letters of Credit to be used, Bank Guarantees, Credit Securities to be Received, and Private Securities (bonds, DRIs, eurobond,s and fund shares) ROAE 170 bps 19.0%2 17.3% 17.7% 3Q11 3Q12 2 Excludes capital increase of R$139.6 million incorporated into shareholders´equity Investor Relations | 3Q12 | 17/33
  • 18.
    Product and RevenueDiversification ...with contributions from all business lines, fruits of the strategy of complete service to clients. Clients with more than one Product Penetration Ratio – Clients with more than one Product More than 1 product 1 product 41% 40% 37% 59% 60% 63% 2.8 2.9 2.8 Sept-10 Sept-11 Sept-12 Sept-10 Sept-11 Sept-12 Revenue Mix Corporate Credit 65.9% PINE Investimentos 3.9% Treasury 4.9% FICC 25.3% 9M11 Corporate Credit 60.2% PINE Investimentos 11.0% Treasury 11.2% FICC 17.6% 9M12 Investor Relations | 3Q12 | 18/33
  • 19.
    Loan Portfolio1 Theportfolio has maintained its product distribution… R$ millions 827 822 800 881 883 883 1,022 1,117 1,372 1,534 1,687 1,684 1,599 1,699 555 533 622 772 756 782 1,021 1,154 942 336 269 230 190 124 100 81 64 47 Retail Trade finance Guarantees 5,613 6,033 6,057 6,545 6,875 7,063 7,426 7,641 7,444 846 881 912 644 279 325 386 670 783 4 75 172 3,251 3,358 3,132 3,126 3,300 3,286 3,370 3,332 3,174 Sept-10 Dec-10 Mar-11 Jun-11 Sept-11 Dec-11 Mar-12 Jun-12 Sept-12 ¹ Includes Letters of Credit to be used, Bank Guarantees, Credit Securities to be Received, and Private Securities (bonds, DRIs, eurobonds, and fund shares) BNDES Onlending Private Securities Working Capital Investor Relations | 3Q12 | 19/33
  • 20.
    Loan Portfolio Quality ... with quality, collaterals, and adequate credit coverage. Loan Portfolio Quality Non Performing Loans 90 days September 30th, 2012 0.5% 0.6% 0.7% 0.6% 0.8% 0.2% 0.2% 0.2% 0.2% 0.4% Contracts overdue Installments Overdue AA-A B 40.5% C 11.7% D-E 2.5% F-H 1.6% Sept-11 Dec-11 Mar-12 Jun-12 Sept-12 Credit Coverage Collaterals Products Pledge 47% Receivables 26% Guarantees 2% Investments 3% Properties Pledge 22% 43.7% 2.7% +80 bps 3.7% 3.5% Sept-11 Jun-12 Sept-12 Investor Relations | 3Q12 | 20/33
  • 21.
    Active Loan PortfolioManagement 3Q12 2Q12 Sugar and Ethanol; 19% Construction 10% Electric and Renewable Energy; 9% Meatpacking; 2% Chemicals; 3% Food Industry; 3% Metal and Mining; 3% Beverages and Tobacco; 4% Vehicles and Parts; Specialized Services; 4% 4% Financial Institutions; 2% Telecom 2% Others; 9% Sugar and Ethanol 16% Construction 12% Electric and Renewable Energy 10% Financial Institutions Chemicals Telecom 2% Food Industry 3% 2% Beverages and Tobacco 3% Vehicles and Parts 4% Metal and Mining 4% Specialized 2% Construction Material 2% Others 9% Transportation and Logistics; 5% Foreign Trade; 5% Agriculture 9% Infrastructure 6% Foreign Trade Transportation and Logistics 6% 6% Reduction of exposure to the Sugar and Ethanol sector, from 19% to 16%; Agriculture; 9% Infrastructure; 7% Increased participation in other sectors such as Electric and Renewable Energy, Transportation and Logistics, Foreign Trade; Reshuffle of the 20 largest clients in approximately 25%; Reduced relative participation of the top 20 clients when compared to shareholders equity by 6%, or 17% when considering the capital increase; and 20 largest clients represented 27% of the total portfolio. Services 4% Investor Relations | 3Q12 | 21/33
  • 22.
    Funding Diversified sourcesof funding… R$ millions 829 898 867 867 868 813 626 31 33 829 - 21 33 247 256 281 291 553 561 194 194 185 205 237 246 233 295 260 200 160 282 267 310 353 276 234 156 166 158 155 84 86 250 125 118 180 413 377 435 596 814 753 841 1,089 1,083 Trade Finance Private Placements Multilateral Lines International Capital Markets Local Capital Markets 5,437 5,322 5,182 5,902 6,248 6,544 6,421 6,933 6,725 53 66 112 210 165 106 161 194 42 33 867 46 176 224 213 320 198 214 41 272 218 1,463 1,530 1,114 212 228 250 281 223 1,287 1,253 1,196 1,186 1,228 1,177 1,654 1,592 1,720 1,845 1,965 2,130 2,128 2,153 2,056 Sept-10 Dec-10 Mar-11 Jun-11 Sept-11 Dec-11 Mar-12 Jun-12 Sept-12 BNDES Demand Deposits Interbank Time Deposits High Net Worth Individual Time Deposits Corporate Time Deposits Institutional Time Deposits Investor Relations | 3Q12 | 22/33
  • 23.
    Asset LiabilityManagement ... presenting a positive gap between credit and funding. Matching of Transactions CREDIT FUNDING BNDES BNDES Trade Finance Trade Finance Deposits Working Capital, Private Securities1 And Cash Financial Bills Intl. Funding Loan / Total Funding 80% 76% 81% 76% 73% 1 Includes debentures, CRIs, eurobonds, and fund shares Sept-11 Dez-11 Mar-12 Jun-12 Sept-12 ALM Deposits vs. Total Funding R$ Millions R$ Millions - 2,947 2,165 1,363 Credit Funding 494 1,739 2,155 1,679 957 33 118 162 No maturity Up to 3 months From 3 to 12 months From 1 to 3 years From 3 to 5 years More than 5 years 6,248 6,933 6,725 41% 45% 46% 59% 55% 54% Sept-11 Jun-11 Sept-12 Others Total Deposits Investor Relations | 3Q12 | 23/33
  • 24.
    Capital Adequacy Ratio(BIS) BIS ratio reached 17.0%. Tier II Tier I Minimum Capital Requirement (11%) 3.6% 3.6% 3.7% 3.4% 4.5% 4.2% 3.1% 3.3% 3.0% 18.4% 17.4% 17.1% 16.6% 19.6% 18.5% 16.4% 15.9% 17.0% 14.8% 13.8% 13.4% 13.2% 15.1% 14.3% 13.3% 12.6% 14.0% Sept -10 Dec -10 Mar -11 Jun -11 Sept -11 Dec -11 Mar -12 Jun -12 Sept -12 R$ million BIS Ratio(%) 1,210 Tier I 14.0% Tier II 256 3.0% Total 1,466 17.0% Investor Relations | 3Q12 | 24/33
  • 25.
    Capital Increase CentralBank approved the capital increase announced in August 2012. The capital increase resulted in the issuance of 6,558,123 common shares in the amount of R$93,649,996.44, and 3,220,203 preferred shares, totaling R$45,984,498.84, at a unit price of R$14.28. Summary Total of R$139.6 million Total Shares Subscribed: 6,558,123 common shares and 3,220,203 preferred shares: 2,100,839 by DEG; 519,577 by Management; 587,732 by minorities; and 12,055 left overs subscribed by minority shareholders. With the aproval of the Central Bank, the shareholders´ structure is as follows: Common Preferred Total % Controlling Shareholder 58,444,889 15,595,863 74,040,752 68.2% Management - 5,923,784 5,923,784 5.5% Free Float - 28,271,724 28,271,724 26.0% Individuals - 2,734,411 2,734,411 2.5% Institutional Investors - 11,330,025 11,330,025 10.4% DEG - 5,005,067 5,005,067 4.6% Foreign Investors - 9,202,221 9,202,221 8.5% Treasury - 394,840 394,840 0.4% Total 58,444,889 50,186,211 108,631,100 100.0% For managerial purposes, minority shareholders were considered individuals. Investor Relations | 3Q12 | 25/33
  • 26.
  • 27.
    Management Structure Non-bureaucratic,entrepreneurial, and meritocratic culture with a flat hierarchy, speeding the decision making process. Noberto Pinheiro Noberto Pinheiro Jr Maurizio Mauro Gustavo Junqueira Mailson da Nóbrega Antonio Hermann CEO Chairman Vice Chairman Independent INTERNAL AUDIT Tikara Yoneya COMPENSATION COMMITTEE Noberto N. Pinheiro Junior AUDIT COMMITTEE EXTERNAL AUDIT PWC Director External Director Independent Director Independent Director BOARD COO Norberto Zaiet CRO Gabriela Chiste HUMAN RESOURCES Sidney Vilhena CAO Ulisses Alcantarilla CFO Susana Waldeck Origination Investment Banking Sales Trading Research Macro / Commodities International Asset Liabilities Back Office Legal Collaterals Management Special Situations Middle Office Controlling Accounting Tax Planning IT Accounts Payable Office Management Marketing Investor Relations Credit and F.I. Research Compliance Internal Controls Credit, Market ,and Liquidity Risks Investor Relations | 3Q12 | 27/33
  • 28.
    Corporate Governance PINEcommits to best corporate governance practices… Three 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 Antonio Hermann: Former CEO of Banco Itamarati, Director at FEBRABAN and elected Director of Brazilian Banking Association 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 (BMFBovespa) 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 | 3Q12 | 28/33
  • 29.
    Committees …favoring collectivedecision making. Main decisions are taken by committees: Board of Directors and a structure of specific committees Non-stop exchange of knowledge, ideas, and information Transparency 45 days RISK COMMITTEE AUDIT COMMITTEE BOARD OF DIRECTORS COMPENSATION COMMITTEE 45 days Bi-annually Monthly CEO COMMITTEES INVESTMENT EXECUTIVE CREDIT LITIGATION ASSET LIABILITY COMMITTEE ALCO HUMAN RESOURCES BANK INTERNAL PERFORMANCE EVALUATION CONTROLS AND IT ETHICS COMPLIANCE Monthly Twice a week Weekly Weekly Bi-monthly Every 2 months Monthly Bi-monthly Quarterly On demand Investor Relations | 3Q12 | 29/33
  • 30.
    Dividends and Intereston Own Capital PINE has delivered an attractive dividend yield paying dividends/interest on own capital on a quarterly basis. 25 25 33 45 30 35 40 35 55 40 30 R$ millions 2H07 1H08 2H08 1H09 2H09 1H10 2H10 1H11 2H11 1H12 3Q12 Investor Relations | 3Q12 | 30/33
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    Social Investment andResponsibility PINE supports and promotes the Brazilian culture and sports Social Instituto Alfabetização Solidária Instituto Casa da Providência Sports Minas Tênis Clube: training program for athletes Most Green Bank Recognized by the International Finance Corporation (IFC), private agency programs of the World Bank as the most green bank as a Culture Paulo von Poser: exhibit of the painter Paulo von Poser, who is one of Brazil’s most prominent artists Quebrando o Tabu: documentary based on the analysis from the former President of Brazil, Fernando Henrique Cardoso, on the fight against drugs Além da Estrada: motion picture, which received the award for best director in the 2010 Rio Festival Responsible Credit “Lists of Exceptions”: the Bank does not finance result of its transactions under the Global Trade Finance Program (GTFP) and its on lending to companies focused on renewable energy and ethanol Global Compact PINE joined the Global Compact initiative in October 2012. The UN initiative mobilizes the international business community to adopt fundamental and internationally accepted values in their business practices in the areas of human rights, labor relations, environment and combating corruption, which are reflected in ten principles. projects or those organizations that damage the environment, are involved in illegal 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. Investor Relations | 3Q12 | 32/33
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    Investor Relations NobertoN. Pinheiro Júnior 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 Fone: +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. Given that PINE is in quiet period because of the issuance of Financial Bills of its 2nd public issuance, we recommend that any potential investor read in conjunction with this Press Release, the Final Prospectus (in particular the section Risk Factors) and the documents incorporated by reference to it, such as PINE's Reference Form, available on its website (www.pine.com/ir). Investor Relations | 3Q12 | 33/33