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3Q14 Institutional Presentation

Pine is a Brazilian bank specialized in providing financial solutions to corporate clients. It has a long history dating back to 1939 and focuses on establishing long-term client relationships. It operates along three primary business lines: corporate credit, fixed income currencies and commodities trading, and capital markets and financial advisory services. Pine has maintained a solid credit portfolio and asset quality over its history and has diversified its business over time. It recently received rating reaffirmations from Fitch and S&P recognizing its stable financial metrics and strategic positioning.

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Institutional PPrreesseennttaattiioonn 3Q14
Profile and History Pine History Business Strategy Competitive Landscape Focus Always on the Client Corporate Credit FICC Pine Investimentos Summary Ratings Highlights and Results Corporate Governance Organizational Structure Corporate Governance Committees Social Investment and Responsibility Investor Relations | 3Q14 | 2/29
Profile and History
Pine Specialized in providing financial solutions for corporate clients… Credit Portfolio by Annual Client Revenues September 30th, 2014 Over R$2 billion 42% Up to R$250 million 11% R$250million to R$500 million 11% R$500 million Profile to R$2 billion 36% Focused on establishing long-term relationships Profound knowledge and product penetration Business is structured along three primary business lines: • Corporate Credit: credit and financing products • FICC: instruments for hedging and risk management • Pine Investimentos: Capital Markets, Financial Advisory, Project & Structured Finance and Research Investor Relations | 3Q14 | 4/29
History ...with extensive knowledge of Brazil’s corporate credit cycle. 1939 Pinheiro Family founds Banco Central do Nordeste 1975 Noberto Pinheiro becomes one of November, 2012 Opening of the broker dealer in New York, Pine Securities USA LLC Subscription of Pine’s capital by DEG, Proparco, Controlling Shareholder and Management End of 2007 August, 2012 Focus on expanding the Corporate Banking franchise Discontinuation of the payroll-deductible loan business October, 2007 Beginning of the FICC Business May, 2007 Creation of Pine Investimentos products line and opening of the Cayman branch 2005 Noberto Pinheiro becomes Pine’s sole shareholder October, 2011 Subscription of Pine’s capital by DEG 801 827 825 867 1,015 1,220 1,272 1,273 BMC’s controlling shareholders 1997 Noberto and Nelson Pinheiro sell their stake in BMC and found Pine 18 62 Corporate Credit Portfolio (R$ Million) Shareholders' Equity (R$ Million) 121 126 140 136 152 171 209 155 184 222 341 521 620 755 663 761 Dec-99 Devaluation of the real Dec-00 Dec-01 Dec-02 Nasdaq Sept. 11 Brazilian 335 1,214 2,854 3,108 Dec-97 Dec-98 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Asian Subprime Crisis Elections (Lula) Russian Crisis 6,963 Dec-11 European Community March, 2007 IPO 9,920 9,800 Dec-13 Sept-14 May, 2014 17 years 4,195 5,763 7,911 Dec-09 Dec-10 Dec-12 Investor Relations | 3Q14 | 5/29
Business Strategy
Competitive Landscape Pine serves a niche market of companies with few options for banks. Large Multi-Services banks 100% Corporate Market Consolidation of the banking sector has decreased the supply of credit lines and financial instruments for corporate Foreign banks are in a deleveraging process PINE Full service Bank – Credit, Hedging, and Investment 100% focused on providing complete service to companies, offering customized products Corporate & SME SME & Retail Retail 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 | 3Q14 | 7/29
Focus Always on the Client Strategy of product diversity, tailored to meet the needs of each individual client. Working Capit CDIs Underwriting Working Capital Overdraft Accounts Fixed Income Currencies Commodities Equities CDBs CDs RDBs LCAs LCIs CRIs Debentures CCBs Eurobonds Private Placements Financial Letters Distribution Treasury Capital Markets Financial Advisory Local Currency Foreign Currency Pricing of Assets and Liabilities Liquidity Management Trading Local Currency Onlending Foreign Currency Trade Finance Structured Finance Bank Guarantees MA Project Finance Participation Funds Corporate Structured Finance Private Credit Funds Real Estate Funds Exclusive Funds Investment Management Portfolio Management Clients Corporate Credit FICC Pine Investimentos Fixed Income Currencies Commodities Aircraft Financing Swap NDFs Structured Swaps BNDES Onlending Bank Guarantees Compror ACC/ACE Export Finance Finimp Letters of Credit 2,770 onlending Rural Credits Syndicated and Structured Loans Options In addition to the headquarters located in the city of São Paulo, Pine has 11 branches throughout Brazil, in the States of Ceará, Mato Grosso, Minas Gerais, Paraná, Pernambuco, Rio de Janeiro, Rio Grande do Sul, and São Paulo. The origination network also counts with a Cayman Branch and a broker dealer in New York (USA). Investor Relations | 3Q14 | 8/29
Corporate Credit Strong track record and solid credit origination and approval process. Actions Credit Committee Meets once 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 and agile service, working closely with clients and keeping a low client to account officer ratio: each officer handles ~10 economic groups 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 | 3Q14 | 9/29
FICC Proven trackrecord: 2nd in commodity derivatives1. Client Notional Derivatives by Market Notional Value and MtM Fixed Income Commodities 16% 6% September 30th, 2014 R$ million Currencies 78% Notional Amount MtM Stressed MtM 530 327 482 354 288 (195) (310) (243) (532) (47) 11,090 11,148 11,268 14,382 8,376 Sept-13 Dec-13 Mar-14 Jun-14 Sept-14 Market Segments Portfolio Profile 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 Scenario on September 30th: Duration : 163 days Mark-to-Market: R$288 million Efficient capital allocation: only R$72 million allocated to this portfolio Stress Scenario (Dollar: +31% and Commodities Prices: -30%): Stressed MtM : (R$47 million) 1Source: Cetip Report, September 2014 Investor Relations | 3Q14 | 10/29
PINE Investimentos Selected Transactions Capital Markets: Structuring and Distribution of Fixed Income Transactions. Financial Advisory: Project Structured Finance, MA, and hybrid capital transactions. US$58,000,000 Export Prepayment Finance Structuring Agent R$50,000,000 Debentures Lead Coordinator R$25,000,000 Long Term Loan Financial Advisor R$400,000,000 Debentures Coordinator Research: Macro, Commodities, and Corporate. August, 2014 R$230,000,000 Letras Financeiras US$135,000,000 Senior Secured Notes R$391,459,000 Project Finance R$459,300,000 MA September, 2014 August, 2014 August, 2014 R$ million Volume of Underwriting Transactions 880 - 880 3,221 1,392 1,829 1,715 506 1,209 9M12 9M13 9M14 Local Market International Market (I CVM 476) Coordinator Advisor July, 2014 Joint Bookrunner June, 2014 Financial Advisor July, 2014 June, 2014 R$300,000,000 Debentures Coordinator February, 2014 R$35,000,000 Project Finance Financial Advisor February, 2014 R$75,000,000 CRI (ICVM 476) Lead Coordinator March, 2014 R$300,000,000 Promissory Note Coordinator January, 2014 Investor Relations | 3Q14 | 11/29
Ratings Fitch and SP reaffirmed Pine’s ratings. Moodys’s attributed this upgrade to Pine’s relative stability of its financial metrics and particularly its asset quality, profitability and capitalization, which benefit from the business and earnings diversification derived from the bank’s broader franchise. The consolidation of the bank’s strategic positioning has resulted in a track record of profitability and asset quality. Fitch attributed this upgrade to Pine’s ability to preserve and to enhance its credit profile in the August 2011 SP’s Upgrade December2011 SP’s Upgrade May 2012 Fitch’s Upgrade Moody’s Perspective May 2010 Fitch’s Upgrade August 2012 Upgrade May 2013 Fitch’s Upgrade September2013 Moody’s Upgrade Abril 2014 Fitch’s Reaffirmation October 2014 SP’s Reaffirmation last several years. Also, the ratings reflect Pine’s 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 participation of its FICC Business and Pine Investimentos. 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. Long Term BB+ BB+ Ba1 - Short Term B B - - Long Term brAA AA-(bra) Aa2.br Short Term - F1+(bra) Br-1 Foreign and Local Currency National 10.47 Investor Relations | 3Q14 | 12/29
Highlights and Results
9M14 Events and Highlights 1. In October, SP reaffirmed Pine’s ratings based on its “strong risk position reflected in its strong asset quality and conservative management”, besides its “adequate liquidity, and adequate capital and earnings”. In April, the same ratings agency downgraded many Brazilian banks. 2. Fitch has also reaffirmed Pine’s ratings, which “reflects the satisfactory credit profile of the Bank and its good performance over the last years amid a deteriorated and relatively volatile operational environment”. 3. Positive contributions from all business lines in the 9M14: 71.3% from Corporate Credit, 21.1% from FICC, 4.0% from Treasury, and 3.6% from Pine Investimentos. 4. Liquid balance sheet, with cash position of R$2.1 billion, equivalent to 58% of time deposits. 5. Positive liquidity gap over the past years, with 13 months for credit versus 16 months for funding. 6. Execution of the third transaction of the Pine-DEG partnership, totaling US$25 million with a twelve-year term, for a company in the Infrastructure sector. 7. 16th largest bank in derivative transactions and the 2nd largest in commodity derivatives segment according to CETIP – OTC Clearing House. 8. 13th largest bank offering credit to large companies, moving up two positions, vis-a-vis 2013, according to the “Melhores e Maiores” ranking compiled by Exame magazine. Investor Relations | 3Q14 | 14/29
9M14 Financial Highlights R$ million The main performance indicators were within expectations in the period... Total Loan Portfolio1 +2.8% 9,537 9,800 Sept-13 Sept-14 Shareholder's Equity +0.7% 1,264 1,273 Sept-13 Sept-14 Total Funding +9.4% 7,894 8,638 Sept-13 Sept-14 Net Income -28.2% 124 89 9M13 9M14 NIM Evolution 5.1% 4.4% -70 bps 9M13 9M14 1 Includes Stand by LCs, Bank Guarantees, Credit Securities to be Received and Securities (bonds, CRIs, eurobonds and fund shares) 13.6% -420 bps 9.4% ROAE 9M13 9M14 Investor Relations | 3Q14 | 15/29
Product and Revenue Diversification ... with contributions from all business lines. Credit 63.3% Treasury 1.2% PINE FICC 29.2% Investimentos 9M13 Revenue Mix Corporate Credit 71.3% Treasury 4.0% FICC 21.1% PINE Investimentos 3.6% 9M14 6.3% Clients with more than one product Penetration Ratio – Clients with more than one product 2.8 3.0 2.9 Sept-12 Sept-13 Sept-14 1 Product More than 1 product 63% 37% 53% 59% 47% 41% Sept -12 Sept -13 Sept -14 Investor Relations | 3Q14 | 16/29
Net Interest Margin Impacts in Period NIM in line with guidance. Declining funding costs Marginal improvement in origination spreads Loan recoveries Recurring - NIM Evolution 4.0% 4.5% +50 bps 2Q14 3Q14 5Reconciliation of results due to funding hedges in the gross amount of R$4.7 million and R$2.8 million net in 3Q14, gross amount of R$1.6 million and R$0.9 million net in 2Q14. Considers the reclassification of FIDC expenses pursuant to Circular Letter nº3,658 from Central Bank. NIM Breakdown R$ million 3Q14 2Q14 3Q13 9M14 9M13 Recurring Financial Margin Income from financial intermediation 92 96 112 297 300 Overhedge effect 4 (3) (1) (2) 3 Liabilities hedge effect 5 (2) - (1) - Recurring Income from financial intermediation 101 92 111 294 303 Provision for loan losses 22 (14) (34) (4) (77) Recurring Income from financial intermediation after provision 123 78 77 290 226 Investor Relations | 3Q14 | 17/29
Expenses and Efficiency Ratio Expenses Expenses also within the guidance range. 35.4% 37.1% 35.0% 24 22 22 23 20 24 60,0% 40,0% 20,0% 0,0% - 20,0% - 40,0% - 60,0% - 80,0% 50 45 40 35 30 25 20 15 10 5 Personnel Expenses Other administrative expenses Recurring Efficiency Ratio (%) 0 - 100,0% 3Q14 2Q14 3Q13 Efficiency Ratio R$ million 3Q14 2Q14 3Q13 9M14 9M13 Operating expenses 1 49 45 51 146 147 (-) Non-recurring expenses (4) (1) (1) (9) (4) Recurring Operating Expenses (A) 45 43 50 137 143 Recurring Revenues 2 (B) 127 116 143 365 395 Recurring Efficiency Ratio (A/B) 35.4% 37.1% 35.0% 37.5% 36.2% 1 Other administrative expenses + tax expenses + personnel expenses 2 Gross Income from financial intermediation - provision for loan losses + fee income + overhedge effect - hedge impact Considers the reclassification of FIDC expenses pursuant to Circular Letter number 3,658 from Central Bank. Investor Relations | 3Q14 | 18/29
R$ million Loan Portfolio The portfolio ended the period at R$9.8 billion... -2.3% 7,444 7,948 8,405 8,994 9,537 9,930 10,090 10,032 9,800 2,114 2,501 2,807 3,073 2,909 2,905 2,941 2,896 942 781 842 1.059 965 903 989 1,116 924 Trade finance1: 9.4% Bank Guarantees: 29.6% 1,699 800 853 826 844 990 4,004 4,200 4,236 4,284 4,509 1,068 1,103 1,071 1,248 5,050 5,092 4,904 4,731 Sept-12 Dec-12 Mar -13 Jun-13 Sept-13 Dec-13 Mar -14 Jun-14 Sept-14 1 Includes Stand by LC 2 Includes debentures, CRIs, Hedge Fund Shares, Eurobonds, Credit Portfolio acquired from financial institutions with recourse and Individuals Onlending : 12.7% Working Capital2: 48.3% Investor Relations | 3Q14 | 19/29
16% 14% 14% 20% 14% 12% 12% 9% 8% 9% 8% 11% 8% 10% 9% 9% 8% 6% 9% 8% 5% 6% 5% 6% Sugar and Ethanol Construction Agriculture Electric and Renewable Energy Infrastructure Continuous Loan Portfolio Management ...with increased sector diversification... Sectors Rebalance Sugar and Ethanol 14% Construction 12% Construction Material Foreign Trade 3% Meatpacking 3% Metallurgy 3% Specialized Services 3% Chemicals Retail 2% 2% Food Industry 2% Others 10% 42% 41% 41% 40% Mar-12 Sept-12 Sept-13 Sept-14 Transportation and Logistics Others Agriculture 11% Electric and Renewable Energy Infrastructure 9% 8% 4% Vehicles and Parts Telecom 4% Transportation and Logistics 6% 4% The composition of the portfolio of the 20 largest clients changed by over 25% in the past twelve months; The total portfolio share of the 20 largest clients remained below 30%. Investor Relations | 3Q14 | 20/29
September 30th, 2014 Contracts Overdue Installments Overdue Contracts Overdue: total amount of the contracts overdue for more than 90 days / Loan Portfolio excluding Bank Guarantees and Stand-by Letters of Credit. Loan Portfolio Quality ... quality, collaterals, and adequate credit coverage. Loan Portfolio Quality – Res. 2,682 Non Performing Loans 90 days 0.7% 0.1% 0.7% 0.3% 0.3% 0.1% 0.1% 0.6% 0.2% 0.1% 2,0% 1,5% 1,0% 0,5% 0,0% Sept-13 Dec-13 Mar-14 Jun-14 Sept-14 AA-A 43.3% B 36.3% C 16.2% D-E 3.4% F-H Installments Overdue: total amount of installments overdue for more than 90 days / Loan Portfolio excluding Bank Guarantees and Stand-by Letters of Credit 0.8% Credit Coverage Collaterals 308% 6.2% 679% 5.8% 2.9% 1,628% Products 2.4% 2.1% Mar-14 Jun-14 Sept-14 D-H Portifolio Coverage of Total Portfolio Coverage of D-H Overdue Portifolio D-H Portfolio: D-H Portfolio / Loan Portfolio – Res. 2,682 Coverage of Total Portfolio: Provision / Loan Portfolio – Res. 2,682 Coverage of D-H Overdue Portfolio: Provisions / D-H Overdue Portfolio 4.2% Pledge 38% Receivables 21% Investments 2% Properties Pledge 39% Investor Relations | 3Q14 | 21/29
R$ million +9.4% Funding Diversified sources of funding... 41% 50% 42% 44% 39% 41% 41% 35% 58% Cash over Deposits +0.9% 459 434 437 833 427 323 69 113 364 346 388 429 500 478 473 531 1,073 808 762 997 973 871 834 1,064 819 6,804 7,062 6,589 7,111 7,894 8,383 8,797 8,559 8,638 Trade Finance: 9.5% Private Placements: 6.1% Multilateral Lines: 4.5% International Capital Markets: 3.7% 792 632 1,141 508 892 582 594 709 1,174 1,086 1,292 180 156 260 409 173 152 409 624 231 277 171 78 402 642 181 80 435 689 154 286 762 649 840 30 903 33 30 176 121 276 224 1,177 1,174 859 862 1,099 126 19 20 110 225 110 93 254 972 1,013 372 1,048 23 90 27 41 76 80 478 659 1,185 1,022 908 761 1,993 2,167 2,087 2,185 1,944 2,099 2,314 2,271 98 920 731 1,905 Sept-12 Dec-12 Mar-13 Jun-13 Sept-13 Dec-13 Mar-14 Jun-14 Sept-14 Financial Bill: 10.3% Local Capital Markets: 8.2% Onlending: 15% Demand Deposits: 0.3% Interbank Time Deposits: 1.1% High Net Worth Individual Time Deposits: 10.7% Corporate Time Deposits: 8.5% Institutional Time Deposits: 22.1% Investor Relations | 3Q14 | 22/29
Asset Liability Management ... keeping a positive gap between credit and funding. Leverage Credit over Funding Ratio Expanded Loan Portfolio Loan Portfolio excluding Bank Guarantees 81% 7.5x 7.8x 7.9x 7.9x 7.8x 5.1x 5.5x 5.6x 5.6x 5.5x 10,0 9,0 8,0 7,0 6,0 5,0 4,0 3,0 2,0 1,0 - Sept-13 Dec-13 Mar-14 Jun-14 Sept-14 83% 82% 83% 80% Sept -13 Dec -13 Mar -14 Jun -14 Sept -14 Leverage: Expanded Loan Portfolio / Shareholders’ Equity Expanded Loan Portfolio excluding Bank Guarantees and Stand-by Letters of Credit / Shareholders’ Equity Credit over Funding ratio: Loan Portfolio excluding Bank Guarantees and Stand-by Letters of Credit / Total Funding ALM – Average Maturity Total Deposits over Total Funding Total Deposits Others Months R$ million 7,894 8,383 8,797 8,559 8,638 56% 54% 53% 53% 57% 44% 46% 47% 47% 43% Sept-13 Dec-13 Mar-14 Jun-14 Sept-14 18 17 16 16 16 16 15 14 14 13 Funding Credit Sept-13 Dec-13 Mar-14 Jun-14 Sept-14 Investor Relations | 3Q14 | 23/29
Capital Adequacy Ratio (BIS), Basel III BIS ratio reached 13.8%. 3.0% 2.8% 2.1% 2.3% 2.2% Tier II Tier I Minimum Regulatory Capital (11%) 2.1% 1.5% 1.5% 1.4% 17.0% 16.2% 17.1% 17.0% 15.9% 14.1% 13.7% 13.7% 13.8% 12.0% 12.2% 12.2% 12.4% Sept-12 Dec-12 Mar-13 Jun-13 Sept-13 Dec-13 Mar-14 Jun-14 Sept-14 R$ Million Bis Ratio(%) 15.0% 14.7% 13.7% Tier I 1,273 12.4% Tier II 140 1.4% Total 1,413 13.8% 14.0% 13.4% Investor Relations | 3Q14 | 24/29
Corporate Governance
Organizational Structure Non-bureaucratic, entrepreneurial, and meritocratic culture with a flat hierarchy. Noberto N. Pinheiro Noberto N. Pinheiro Jr. Mailson da Nóbrega Maurizio Mauro Gustavo Junqueira Susana Waldeck* CEO INTERNAL AUDIT Tikara Yoneya COMPENSATION COMMITTEE Noberto N. Pinheiro Jr. AUDIT COMMITTEE Chairman Vice Chairman EXTERNAL AUDIT PWC Independent Director Independent Director External Director External Director BOARD COO Alexandre Aoude CRO Gabriela Chiste HUMAN RESOURCES IT Ivan Farber CAO Ulisses Alcantarilla CFO Norberto Zaiet Origination Investment Banking Sales Trading Research Macro/ Commodities/Corporate *Pending approval of Brazilian Central Bank Credit Corporate Research Compliance, Internal Controls and IT Security Credit, Market, Operational and Liquidity Risks Financial Modeling Asset Liabilities Back Office Legal Collaterals Management Special Situations Middle Office Office Management Controlling Accounting Tax Planning Accounts Payable Marketing Investor Relations International Division Investor Relations | 3Q14 | 26/29
Corporate Governance Pine is committed to best corporate governance practices… Two Independent Members and Two External Members 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 Harumi Susana Ueta Waldeck*: Former CFO of Pine, with over 17 years of experience at the company. She brings the day-to-day experience to the Board. 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 *Pending approval of Brazilian Central Bank Investor Relations | 3Q14 | 27/29
Social Investment and Responsibility Focus on the short, medium and long term. Partnerships 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. Since October 2012 Responsible Credit “Lists of Exceptions”: the Bank does not finance 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 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, Health, and Safety Guidelines (EHS Guidelines). Since December/2012 Protocolo Verde – “Green Protocol”, an agreement between FEBRABAN and the Ministry of the Environment to support development that does not compromise future generations. 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 Efficiency Energy Recognition by World Bank for support in the Energy Efficiency sector. Exhibition and sponsorship of Brazilian artists, for instance Paulo von Poser and Miguel Rio Branco, in addition to sponsoring and supporting films and documentaries such as Quebrando o Tabu (Fernando Henrique Cardoso on the drug war), O Brasil deu certo, e agora? (idealized by Mailson da Nóbrega), Além da Estrada (Charly Braun) and others. Investor Relations | 3Q14 | 28/29
Noberto N. Pinheiro Junior CEO Norberto Zaiet Junior CFO/IRO Raquel Varela Head of Investor Relations Alejandra Hidalgo Investor Relations Manager Investor Relations Luiz Maximo Investor Relations Specialist Ana Lopes Investor Relations Analyst Gabriel Netto Investor Relations Assistant Fone: (55 11) 3372-5343 www.pine.com/ir ri@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 | 3Q14 | 29/29

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3Q14 Institutional Presentation

  • 1.
  • 2.
    Profile and History Pine History Business Strategy Competitive Landscape Focus Always on the Client Corporate Credit FICC Pine Investimentos Summary Ratings Highlights and Results Corporate Governance Organizational Structure Corporate Governance Committees Social Investment and Responsibility Investor Relations | 3Q14 | 2/29
  • 3.
  • 4.
    Pine Specialized inproviding financial solutions for corporate clients… Credit Portfolio by Annual Client Revenues September 30th, 2014 Over R$2 billion 42% Up to R$250 million 11% R$250million to R$500 million 11% R$500 million Profile to R$2 billion 36% Focused on establishing long-term relationships Profound knowledge and product penetration Business is structured along three primary business lines: • Corporate Credit: credit and financing products • FICC: instruments for hedging and risk management • Pine Investimentos: Capital Markets, Financial Advisory, Project & Structured Finance and Research Investor Relations | 3Q14 | 4/29
  • 5.
    History ...with extensiveknowledge of Brazil’s corporate credit cycle. 1939 Pinheiro Family founds Banco Central do Nordeste 1975 Noberto Pinheiro becomes one of November, 2012 Opening of the broker dealer in New York, Pine Securities USA LLC Subscription of Pine’s capital by DEG, Proparco, Controlling Shareholder and Management End of 2007 August, 2012 Focus on expanding the Corporate Banking franchise Discontinuation of the payroll-deductible loan business October, 2007 Beginning of the FICC Business May, 2007 Creation of Pine Investimentos products line and opening of the Cayman branch 2005 Noberto Pinheiro becomes Pine’s sole shareholder October, 2011 Subscription of Pine’s capital by DEG 801 827 825 867 1,015 1,220 1,272 1,273 BMC’s controlling shareholders 1997 Noberto and Nelson Pinheiro sell their stake in BMC and found Pine 18 62 Corporate Credit Portfolio (R$ Million) Shareholders' Equity (R$ Million) 121 126 140 136 152 171 209 155 184 222 341 521 620 755 663 761 Dec-99 Devaluation of the real Dec-00 Dec-01 Dec-02 Nasdaq Sept. 11 Brazilian 335 1,214 2,854 3,108 Dec-97 Dec-98 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Asian Subprime Crisis Elections (Lula) Russian Crisis 6,963 Dec-11 European Community March, 2007 IPO 9,920 9,800 Dec-13 Sept-14 May, 2014 17 years 4,195 5,763 7,911 Dec-09 Dec-10 Dec-12 Investor Relations | 3Q14 | 5/29
  • 6.
  • 7.
    Competitive Landscape Pineserves a niche market of companies with few options for banks. Large Multi-Services banks 100% Corporate Market Consolidation of the banking sector has decreased the supply of credit lines and financial instruments for corporate Foreign banks are in a deleveraging process PINE Full service Bank – Credit, Hedging, and Investment 100% focused on providing complete service to companies, offering customized products Corporate & SME SME & Retail Retail 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 | 3Q14 | 7/29
  • 8.
    Focus Always onthe Client Strategy of product diversity, tailored to meet the needs of each individual client. Working Capit CDIs Underwriting Working Capital Overdraft Accounts Fixed Income Currencies Commodities Equities CDBs CDs RDBs LCAs LCIs CRIs Debentures CCBs Eurobonds Private Placements Financial Letters Distribution Treasury Capital Markets Financial Advisory Local Currency Foreign Currency Pricing of Assets and Liabilities Liquidity Management Trading Local Currency Onlending Foreign Currency Trade Finance Structured Finance Bank Guarantees MA Project Finance Participation Funds Corporate Structured Finance Private Credit Funds Real Estate Funds Exclusive Funds Investment Management Portfolio Management Clients Corporate Credit FICC Pine Investimentos Fixed Income Currencies Commodities Aircraft Financing Swap NDFs Structured Swaps BNDES Onlending Bank Guarantees Compror ACC/ACE Export Finance Finimp Letters of Credit 2,770 onlending Rural Credits Syndicated and Structured Loans Options In addition to the headquarters located in the city of São Paulo, Pine has 11 branches throughout Brazil, in the States of Ceará, Mato Grosso, Minas Gerais, Paraná, Pernambuco, Rio de Janeiro, Rio Grande do Sul, and São Paulo. The origination network also counts with a Cayman Branch and a broker dealer in New York (USA). Investor Relations | 3Q14 | 8/29
  • 9.
    Corporate Credit Strongtrack record and solid credit origination and approval process. Actions Credit Committee Meets once 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 and agile service, working closely with clients and keeping a low client to account officer ratio: each officer handles ~10 economic groups 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 | 3Q14 | 9/29
  • 10.
    FICC Proven trackrecord:2nd in commodity derivatives1. Client Notional Derivatives by Market Notional Value and MtM Fixed Income Commodities 16% 6% September 30th, 2014 R$ million Currencies 78% Notional Amount MtM Stressed MtM 530 327 482 354 288 (195) (310) (243) (532) (47) 11,090 11,148 11,268 14,382 8,376 Sept-13 Dec-13 Mar-14 Jun-14 Sept-14 Market Segments Portfolio Profile 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 Scenario on September 30th: Duration : 163 days Mark-to-Market: R$288 million Efficient capital allocation: only R$72 million allocated to this portfolio Stress Scenario (Dollar: +31% and Commodities Prices: -30%): Stressed MtM : (R$47 million) 1Source: Cetip Report, September 2014 Investor Relations | 3Q14 | 10/29
  • 11.
    PINE Investimentos SelectedTransactions Capital Markets: Structuring and Distribution of Fixed Income Transactions. Financial Advisory: Project Structured Finance, MA, and hybrid capital transactions. US$58,000,000 Export Prepayment Finance Structuring Agent R$50,000,000 Debentures Lead Coordinator R$25,000,000 Long Term Loan Financial Advisor R$400,000,000 Debentures Coordinator Research: Macro, Commodities, and Corporate. August, 2014 R$230,000,000 Letras Financeiras US$135,000,000 Senior Secured Notes R$391,459,000 Project Finance R$459,300,000 MA September, 2014 August, 2014 August, 2014 R$ million Volume of Underwriting Transactions 880 - 880 3,221 1,392 1,829 1,715 506 1,209 9M12 9M13 9M14 Local Market International Market (I CVM 476) Coordinator Advisor July, 2014 Joint Bookrunner June, 2014 Financial Advisor July, 2014 June, 2014 R$300,000,000 Debentures Coordinator February, 2014 R$35,000,000 Project Finance Financial Advisor February, 2014 R$75,000,000 CRI (ICVM 476) Lead Coordinator March, 2014 R$300,000,000 Promissory Note Coordinator January, 2014 Investor Relations | 3Q14 | 11/29
  • 12.
    Ratings Fitch andSP reaffirmed Pine’s ratings. Moodys’s attributed this upgrade to Pine’s relative stability of its financial metrics and particularly its asset quality, profitability and capitalization, which benefit from the business and earnings diversification derived from the bank’s broader franchise. The consolidation of the bank’s strategic positioning has resulted in a track record of profitability and asset quality. Fitch attributed this upgrade to Pine’s ability to preserve and to enhance its credit profile in the August 2011 SP’s Upgrade December2011 SP’s Upgrade May 2012 Fitch’s Upgrade Moody’s Perspective May 2010 Fitch’s Upgrade August 2012 Upgrade May 2013 Fitch’s Upgrade September2013 Moody’s Upgrade Abril 2014 Fitch’s Reaffirmation October 2014 SP’s Reaffirmation last several years. Also, the ratings reflect Pine’s 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 participation of its FICC Business and Pine Investimentos. 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. Long Term BB+ BB+ Ba1 - Short Term B B - - Long Term brAA AA-(bra) Aa2.br Short Term - F1+(bra) Br-1 Foreign and Local Currency National 10.47 Investor Relations | 3Q14 | 12/29
  • 13.
  • 14.
    9M14 Events andHighlights 1. In October, SP reaffirmed Pine’s ratings based on its “strong risk position reflected in its strong asset quality and conservative management”, besides its “adequate liquidity, and adequate capital and earnings”. In April, the same ratings agency downgraded many Brazilian banks. 2. Fitch has also reaffirmed Pine’s ratings, which “reflects the satisfactory credit profile of the Bank and its good performance over the last years amid a deteriorated and relatively volatile operational environment”. 3. Positive contributions from all business lines in the 9M14: 71.3% from Corporate Credit, 21.1% from FICC, 4.0% from Treasury, and 3.6% from Pine Investimentos. 4. Liquid balance sheet, with cash position of R$2.1 billion, equivalent to 58% of time deposits. 5. Positive liquidity gap over the past years, with 13 months for credit versus 16 months for funding. 6. Execution of the third transaction of the Pine-DEG partnership, totaling US$25 million with a twelve-year term, for a company in the Infrastructure sector. 7. 16th largest bank in derivative transactions and the 2nd largest in commodity derivatives segment according to CETIP – OTC Clearing House. 8. 13th largest bank offering credit to large companies, moving up two positions, vis-a-vis 2013, according to the “Melhores e Maiores” ranking compiled by Exame magazine. Investor Relations | 3Q14 | 14/29
  • 15.
    9M14 Financial Highlights R$ million The main performance indicators were within expectations in the period... Total Loan Portfolio1 +2.8% 9,537 9,800 Sept-13 Sept-14 Shareholder's Equity +0.7% 1,264 1,273 Sept-13 Sept-14 Total Funding +9.4% 7,894 8,638 Sept-13 Sept-14 Net Income -28.2% 124 89 9M13 9M14 NIM Evolution 5.1% 4.4% -70 bps 9M13 9M14 1 Includes Stand by LCs, Bank Guarantees, Credit Securities to be Received and Securities (bonds, CRIs, eurobonds and fund shares) 13.6% -420 bps 9.4% ROAE 9M13 9M14 Investor Relations | 3Q14 | 15/29
  • 16.
    Product and RevenueDiversification ... with contributions from all business lines. Credit 63.3% Treasury 1.2% PINE FICC 29.2% Investimentos 9M13 Revenue Mix Corporate Credit 71.3% Treasury 4.0% FICC 21.1% PINE Investimentos 3.6% 9M14 6.3% Clients with more than one product Penetration Ratio – Clients with more than one product 2.8 3.0 2.9 Sept-12 Sept-13 Sept-14 1 Product More than 1 product 63% 37% 53% 59% 47% 41% Sept -12 Sept -13 Sept -14 Investor Relations | 3Q14 | 16/29
  • 17.
    Net Interest Margin Impacts in Period NIM in line with guidance. Declining funding costs Marginal improvement in origination spreads Loan recoveries Recurring - NIM Evolution 4.0% 4.5% +50 bps 2Q14 3Q14 5Reconciliation of results due to funding hedges in the gross amount of R$4.7 million and R$2.8 million net in 3Q14, gross amount of R$1.6 million and R$0.9 million net in 2Q14. Considers the reclassification of FIDC expenses pursuant to Circular Letter nº3,658 from Central Bank. NIM Breakdown R$ million 3Q14 2Q14 3Q13 9M14 9M13 Recurring Financial Margin Income from financial intermediation 92 96 112 297 300 Overhedge effect 4 (3) (1) (2) 3 Liabilities hedge effect 5 (2) - (1) - Recurring Income from financial intermediation 101 92 111 294 303 Provision for loan losses 22 (14) (34) (4) (77) Recurring Income from financial intermediation after provision 123 78 77 290 226 Investor Relations | 3Q14 | 17/29
  • 18.
    Expenses and EfficiencyRatio Expenses Expenses also within the guidance range. 35.4% 37.1% 35.0% 24 22 22 23 20 24 60,0% 40,0% 20,0% 0,0% - 20,0% - 40,0% - 60,0% - 80,0% 50 45 40 35 30 25 20 15 10 5 Personnel Expenses Other administrative expenses Recurring Efficiency Ratio (%) 0 - 100,0% 3Q14 2Q14 3Q13 Efficiency Ratio R$ million 3Q14 2Q14 3Q13 9M14 9M13 Operating expenses 1 49 45 51 146 147 (-) Non-recurring expenses (4) (1) (1) (9) (4) Recurring Operating Expenses (A) 45 43 50 137 143 Recurring Revenues 2 (B) 127 116 143 365 395 Recurring Efficiency Ratio (A/B) 35.4% 37.1% 35.0% 37.5% 36.2% 1 Other administrative expenses + tax expenses + personnel expenses 2 Gross Income from financial intermediation - provision for loan losses + fee income + overhedge effect - hedge impact Considers the reclassification of FIDC expenses pursuant to Circular Letter number 3,658 from Central Bank. Investor Relations | 3Q14 | 18/29
  • 19.
    R$ million LoanPortfolio The portfolio ended the period at R$9.8 billion... -2.3% 7,444 7,948 8,405 8,994 9,537 9,930 10,090 10,032 9,800 2,114 2,501 2,807 3,073 2,909 2,905 2,941 2,896 942 781 842 1.059 965 903 989 1,116 924 Trade finance1: 9.4% Bank Guarantees: 29.6% 1,699 800 853 826 844 990 4,004 4,200 4,236 4,284 4,509 1,068 1,103 1,071 1,248 5,050 5,092 4,904 4,731 Sept-12 Dec-12 Mar -13 Jun-13 Sept-13 Dec-13 Mar -14 Jun-14 Sept-14 1 Includes Stand by LC 2 Includes debentures, CRIs, Hedge Fund Shares, Eurobonds, Credit Portfolio acquired from financial institutions with recourse and Individuals Onlending : 12.7% Working Capital2: 48.3% Investor Relations | 3Q14 | 19/29
  • 20.
    16% 14% 14%20% 14% 12% 12% 9% 8% 9% 8% 11% 8% 10% 9% 9% 8% 6% 9% 8% 5% 6% 5% 6% Sugar and Ethanol Construction Agriculture Electric and Renewable Energy Infrastructure Continuous Loan Portfolio Management ...with increased sector diversification... Sectors Rebalance Sugar and Ethanol 14% Construction 12% Construction Material Foreign Trade 3% Meatpacking 3% Metallurgy 3% Specialized Services 3% Chemicals Retail 2% 2% Food Industry 2% Others 10% 42% 41% 41% 40% Mar-12 Sept-12 Sept-13 Sept-14 Transportation and Logistics Others Agriculture 11% Electric and Renewable Energy Infrastructure 9% 8% 4% Vehicles and Parts Telecom 4% Transportation and Logistics 6% 4% The composition of the portfolio of the 20 largest clients changed by over 25% in the past twelve months; The total portfolio share of the 20 largest clients remained below 30%. Investor Relations | 3Q14 | 20/29
  • 21.
    September 30th, 2014 Contracts Overdue Installments Overdue Contracts Overdue: total amount of the contracts overdue for more than 90 days / Loan Portfolio excluding Bank Guarantees and Stand-by Letters of Credit. Loan Portfolio Quality ... quality, collaterals, and adequate credit coverage. Loan Portfolio Quality – Res. 2,682 Non Performing Loans 90 days 0.7% 0.1% 0.7% 0.3% 0.3% 0.1% 0.1% 0.6% 0.2% 0.1% 2,0% 1,5% 1,0% 0,5% 0,0% Sept-13 Dec-13 Mar-14 Jun-14 Sept-14 AA-A 43.3% B 36.3% C 16.2% D-E 3.4% F-H Installments Overdue: total amount of installments overdue for more than 90 days / Loan Portfolio excluding Bank Guarantees and Stand-by Letters of Credit 0.8% Credit Coverage Collaterals 308% 6.2% 679% 5.8% 2.9% 1,628% Products 2.4% 2.1% Mar-14 Jun-14 Sept-14 D-H Portifolio Coverage of Total Portfolio Coverage of D-H Overdue Portifolio D-H Portfolio: D-H Portfolio / Loan Portfolio – Res. 2,682 Coverage of Total Portfolio: Provision / Loan Portfolio – Res. 2,682 Coverage of D-H Overdue Portfolio: Provisions / D-H Overdue Portfolio 4.2% Pledge 38% Receivables 21% Investments 2% Properties Pledge 39% Investor Relations | 3Q14 | 21/29
  • 22.
    R$ million +9.4% Funding Diversified sources of funding... 41% 50% 42% 44% 39% 41% 41% 35% 58% Cash over Deposits +0.9% 459 434 437 833 427 323 69 113 364 346 388 429 500 478 473 531 1,073 808 762 997 973 871 834 1,064 819 6,804 7,062 6,589 7,111 7,894 8,383 8,797 8,559 8,638 Trade Finance: 9.5% Private Placements: 6.1% Multilateral Lines: 4.5% International Capital Markets: 3.7% 792 632 1,141 508 892 582 594 709 1,174 1,086 1,292 180 156 260 409 173 152 409 624 231 277 171 78 402 642 181 80 435 689 154 286 762 649 840 30 903 33 30 176 121 276 224 1,177 1,174 859 862 1,099 126 19 20 110 225 110 93 254 972 1,013 372 1,048 23 90 27 41 76 80 478 659 1,185 1,022 908 761 1,993 2,167 2,087 2,185 1,944 2,099 2,314 2,271 98 920 731 1,905 Sept-12 Dec-12 Mar-13 Jun-13 Sept-13 Dec-13 Mar-14 Jun-14 Sept-14 Financial Bill: 10.3% Local Capital Markets: 8.2% Onlending: 15% Demand Deposits: 0.3% Interbank Time Deposits: 1.1% High Net Worth Individual Time Deposits: 10.7% Corporate Time Deposits: 8.5% Institutional Time Deposits: 22.1% Investor Relations | 3Q14 | 22/29
  • 23.
    Asset LiabilityManagement ... keeping a positive gap between credit and funding. Leverage Credit over Funding Ratio Expanded Loan Portfolio Loan Portfolio excluding Bank Guarantees 81% 7.5x 7.8x 7.9x 7.9x 7.8x 5.1x 5.5x 5.6x 5.6x 5.5x 10,0 9,0 8,0 7,0 6,0 5,0 4,0 3,0 2,0 1,0 - Sept-13 Dec-13 Mar-14 Jun-14 Sept-14 83% 82% 83% 80% Sept -13 Dec -13 Mar -14 Jun -14 Sept -14 Leverage: Expanded Loan Portfolio / Shareholders’ Equity Expanded Loan Portfolio excluding Bank Guarantees and Stand-by Letters of Credit / Shareholders’ Equity Credit over Funding ratio: Loan Portfolio excluding Bank Guarantees and Stand-by Letters of Credit / Total Funding ALM – Average Maturity Total Deposits over Total Funding Total Deposits Others Months R$ million 7,894 8,383 8,797 8,559 8,638 56% 54% 53% 53% 57% 44% 46% 47% 47% 43% Sept-13 Dec-13 Mar-14 Jun-14 Sept-14 18 17 16 16 16 16 15 14 14 13 Funding Credit Sept-13 Dec-13 Mar-14 Jun-14 Sept-14 Investor Relations | 3Q14 | 23/29
  • 24.
    Capital Adequacy Ratio(BIS), Basel III BIS ratio reached 13.8%. 3.0% 2.8% 2.1% 2.3% 2.2% Tier II Tier I Minimum Regulatory Capital (11%) 2.1% 1.5% 1.5% 1.4% 17.0% 16.2% 17.1% 17.0% 15.9% 14.1% 13.7% 13.7% 13.8% 12.0% 12.2% 12.2% 12.4% Sept-12 Dec-12 Mar-13 Jun-13 Sept-13 Dec-13 Mar-14 Jun-14 Sept-14 R$ Million Bis Ratio(%) 15.0% 14.7% 13.7% Tier I 1,273 12.4% Tier II 140 1.4% Total 1,413 13.8% 14.0% 13.4% Investor Relations | 3Q14 | 24/29
  • 25.
  • 26.
    Organizational Structure Non-bureaucratic,entrepreneurial, and meritocratic culture with a flat hierarchy. Noberto N. Pinheiro Noberto N. Pinheiro Jr. Mailson da Nóbrega Maurizio Mauro Gustavo Junqueira Susana Waldeck* CEO INTERNAL AUDIT Tikara Yoneya COMPENSATION COMMITTEE Noberto N. Pinheiro Jr. AUDIT COMMITTEE Chairman Vice Chairman EXTERNAL AUDIT PWC Independent Director Independent Director External Director External Director BOARD COO Alexandre Aoude CRO Gabriela Chiste HUMAN RESOURCES IT Ivan Farber CAO Ulisses Alcantarilla CFO Norberto Zaiet Origination Investment Banking Sales Trading Research Macro/ Commodities/Corporate *Pending approval of Brazilian Central Bank Credit Corporate Research Compliance, Internal Controls and IT Security Credit, Market, Operational and Liquidity Risks Financial Modeling Asset Liabilities Back Office Legal Collaterals Management Special Situations Middle Office Office Management Controlling Accounting Tax Planning Accounts Payable Marketing Investor Relations International Division Investor Relations | 3Q14 | 26/29
  • 27.
    Corporate Governance Pineis committed to best corporate governance practices… Two Independent Members and Two External Members 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 Harumi Susana Ueta Waldeck*: Former CFO of Pine, with over 17 years of experience at the company. She brings the day-to-day experience to the Board. 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 *Pending approval of Brazilian Central Bank Investor Relations | 3Q14 | 27/29
  • 28.
    Social Investment andResponsibility Focus on the short, medium and long term. Partnerships 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. Since October 2012 Responsible Credit “Lists of Exceptions”: the Bank does not finance 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 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, Health, and Safety Guidelines (EHS Guidelines). Since December/2012 Protocolo Verde – “Green Protocol”, an agreement between FEBRABAN and the Ministry of the Environment to support development that does not compromise future generations. 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 Efficiency Energy Recognition by World Bank for support in the Energy Efficiency sector. Exhibition and sponsorship of Brazilian artists, for instance Paulo von Poser and Miguel Rio Branco, in addition to sponsoring and supporting films and documentaries such as Quebrando o Tabu (Fernando Henrique Cardoso on the drug war), O Brasil deu certo, e agora? (idealized by Mailson da Nóbrega), Além da Estrada (Charly Braun) and others. Investor Relations | 3Q14 | 28/29
  • 29.
    Noberto N. PinheiroJunior CEO Norberto Zaiet Junior CFO/IRO Raquel Varela Head of Investor Relations Alejandra Hidalgo Investor Relations Manager Investor Relations Luiz Maximo Investor Relations Specialist Ana Lopes Investor Relations Analyst Gabriel Netto Investor Relations Assistant Fone: (55 11) 3372-5343 www.pine.com/ir ri@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 | 3Q14 | 29/29