1Q13 Institutional Presentation

Institutional PresentationInstitutional Presentation

1st Quarter of 2013

Summary

History and Profile

PINE

History

Business Strategy

Competitive Landscape

Focus on the Client

Corporate Credit

FICC

PINE I ti tPINE Investimentos

Rating Upgrades

Highlights and ResultsHighlights and Results

Corporate Governance and PINE4

Organizational Structure Organizational Structure

Corporate Governance

Committees

PINE4

2/32Investor Relations | 1Q13 |

Ownership Structure

Social Investment and Responsibility

History and Profile

PINESpecialized in providing financial solutions for large clients…

Credit Portfolio by Annual Client Revenues

R$250million

Up to R$250 million

7%

March 31st, 2013

Over R$2 billion39%

R$250millionto R$500

million15%

R$500 million to

Profile

Focused on establishing long term relationships Business is structured along three primary business lines:

million to R$2 billion

39%

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 Market, Financial

Advisory, Project & Structured Finance andResearch


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

1939Pinheiro Family

foundsBanco Central do

NordesteOctober 2011

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

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

1,015

1,220 1,260

End of 2007Focus on expanding the Corporate Banking franchise

Discontinuation of the payroll-deductible loan business

October, 2011Subscription of PINE’s capital by DEG

801 827 825

867

1975Noberto Pinheirobecomes one of

May, 2007Creation of PINE Investimentos products line and

opening of the Cayman branch

October, 2007Beginning of the FICC Business

6,963

7,912 8,379

335 Corporate Credit Portfolio (R$ Millions)

becomes one of BMC’s controlling

shareholders 2005Noberto Pinheiro becomes PINE’s sole

shareholder

2,854 3,104

4,191

5,746

18 62

121 126 140 136 152 171 209

Corporate Credit Portfolio (R$ Millions)

Shareholders' Equity (R$ Millions)

1997

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

Dec

-97

Dec

-98

Dec

-99

Dec

-00

Dec

-01

Dec

-02

Dec

-03

Dec

-04

Dec

-05

Dec

-06

Dec

-07

Dec

-08

Dec

-09

Dec

-10

Dec

-11

Dec

-12

Mar

-13

Noberto and Nelson Pinheiro sell their stake in BMC and

found PINE


Devaluationof the real

Nasdaq Sept. 11 Brazilian Elections

(Lula)

SubprimeAsian Crisis

Russian Crisis

European Community

March, 2007IPO

May, 201316 years

Business Strategy

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

Market

Consolidation of the banking sector has

Large Multi-Services banks

Consolidation of the banking sector hasdecreased the supply of credit lines and financialinstruments for corporate

Foreign banks are in a deleveraging process

100% Corporate

g g g p

PINE

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

Corporate & SME

Full service Bank – Credit, Hedging, andInvestment Bank products – with room forgrowth

Foreign and Investment Banks

Corporate & SME

SME & Retail

~10 clients per officer

Competitive Advantages: Focus

Retail

Fast response: Strong relationship withclients, with the credit committeemeeting twice a week and response timesto clients of no more than one week

S i li d i


Specialized services Tailor-made solutions Product diversity

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

CDIsCDs

LCIs

Fixed Income

CurrenciesCDBs

RDBs

LCAs

LCIsCCBs

Eurobonds

PrivatePlacements

Financial Letters

Local Currency

Pricing of Assets and Liabilities

LiquidityManagement

Working CapitOverdraftAccounts

Currencies

Commodities

Equities

DebenturesCRIs

TreasuryDistribution

Capital Financial Advisory

Foreign Currency

Trading

Local Currency

Working CapitalUnderwriting

Bank

BNDES Onlending

Bank Guarantees

Compror

ACC/ACE

Export Finance

Accounts

ClientsCorporate

Credit

FICC

PINEInvestimentos

pMarkets

Financial Advisory Local Currency

Onlending

Foreign Currency

Trade FinanceParticipation

Funds

Corporate & Structured

Finance

M&A

Project Finance

StructuredFinance

Private Credit I t t Guarantees

Exclusive Funds

Portfolio Management

FinimpLetters of Credit

2,770 onlending

Syndicated andStructured Loans

Fixed Income Currencies

Commodities

Private Credit Funds

Real Estate Funds

Rural Credit

AircraftFinancing

Investment Management

In addition to the

headquarters located in the

city of São Paulo, PINE has 12

branches throughout Brazil, in

the States of Ceará Mato

Swap NDFsStructured Swaps

Options

the States of Ceará, Mato

Grosso, Minas Gerais, Paraná,

Pernambuco, Rio de Janeiro,

Rio Grande do Sul, Santa

Catarina and São Paulo. The

origination network also


counts with a Cayman branch

and a broker dealer in New

York (USA).

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

Actions Credit Committee

Meets twice a week – reviewing 20 proposals on average

Minimum quorum: 4 members - attendance of CEO or

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

Chairman is mandatory

Members:Chairman of the Board

each officer handles 10 economic groups

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

Chairman of the BoardCEOChief Operating OfficerChief Administrative OfficerChief Risk Officer

Established long term relationships with more than 600economic groups

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

Participants:FICC Executive Director Credit Analysts

centers

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

Credit Approval: Electronic Process

Other members of the Corporate Banking origination team

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

pp

Origination OfficersOrigination Officers

Credit origination Credit analysis visit to clients data

Credit AnalystsCredit AnalystsRegional Heads of

Origination and Credit Analysis

Regional Heads of Origination and Credit

Analysis

Presentation to the Credit Committee

CRO, Executive Directors and Analysts

of Credit

CRO, Executive Directors and Analysts

of Credit

Centralized and unanimous

CREDIT COMMITTEE CREDIT COMMITTEE

Discussion on sizing collateral


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

research team

Presentation to the Credit Committee Centralized and unanimous decision making process

Discussion on sizing, collateral, structure etc.

FICCProven trackrecord: 2nd in commodity derivatives1.

R$ millions

Client Notional Derivatives Portfolio by Market Notional Value and MtM

Fixed Income Currencies

Notional valueMtMStressed MtM

March 31st, 2013

20% 60%

354

597 629

498

298

Commodities20% 4 287 4 720 4 875 5 036 5 180

126

256 238 197 174

Scenario on March 31:Fixed Income: Fixed Floating Inflation Libor

Market Segments Portfolio Profile

20% 4,287 4,720 4,875 5,036 5,180

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

Scenario on March, 31:

Duration: 149 days

Mark-To-Market : R$174 million

Fixed Income: Fixed, Floating, Inflation, Libor

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

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

Stressed MTM: R$298 million

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


1Source: Cetip Report, March 2013

PINE InvestimentosConsolidation of the investment done through the years in the franchise.

Capital Markets: Structuring and Distribution of Fixed R$50,000,000US$250,000,000 R$800,000,000

Transactions

Income Transactions.

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

and hybrid capital transactions

Capital IncreaseSenior Notes Debentures

and hybrid capital transactions.

Research: Macro, Commodities, and Corporate.

January, 2013

Advisor

April, 2013

Bookrunner

January, 2013

Coordinator

R$ millions R$ millions

Volume of Underwriting Transactions Revenues

16

910

+11.1%1,045 +553.1%

9

317

160


1Q12 4Q12 1Q131Q12 4Q12 1Q13

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

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

August 2011

December 2011UpgradeS&P

May 2012Upgradepela Fitch

August 2012UpgradePerspective Moody’s

May 2013UpgradeFitch

Moody's explained that the positive outlook reflectsPINE’s profitability through a well-executed

August 2011UpgradeS&P

S&P

May 2010UpgradeFitch

PINE s profitability through a well executedstrategy, and which has ensured earningsrecurrence. The rating action also captures thebank's improved funding diversification, wellmanaged asset quality metrics and its good liquidityand capital management.

Fitch attributed this upgrade to PINE’s ability topreserve and to enhance its credit profile in thelast several years. Also, the ratings reflect PINE’s Long Term BB+ BB+ Ba2 -

n an

d al

en

cy

consistent performance, higher fundingdiversification and sound asset quality, liquidity andcapitalization. According to Fitch, PINE hasmanaged carefully its growth in the corporatesegment with a strategy of revenue diversificationand cross-selling aiming to reduce the dependenceof revenues from lending and to increase the

Short Term B B - -

Long Term brAA AA-(bra) A1.br

Fore

ign

Loca

Curr

e

iona

l

10.74


of revenues from lending and to increase theparticipation of its FICC Business and PINEInvestimentos.

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

i 10.74

Highlights and Results

Recurring results.

1Q13 Events and Highlights

Positive revenue contributions from all business lines in the quarter: 56.6% from Corporate Credit, 34.1% fromFICC, 7.6% from PINE Investimentos, and 1.7% from Treasury.

1, , y

Positive liquidity gap maintained for over 11 quarters: 15 months for credit, versus 17 months for funding.2

Liquid balance sheet, with cash position of R$1.4 billion, equivalent to 42% of time deposits.

PINE continues to be ranked among the 15 largest players in derivative transactions and the 2nd largest indi d i i di CETIP (OTC Cl i H )

3

4commodity derivatives according to CETIP (OTC Clearing House).

On April 19, the Central Bank of Brazil approved the capital increase made by Proparco in the Bank. Thetransaction resulted in the issuance of 2,211,213 preferred shares, totaling approximately R$32 million, with the

5, , p , g pp y ,

participation of other shareholders who exercised their preemptive rights at the price of R$14.28 per share. Thetransaction resulted in a BIS ratio improvement of 40 bps.

On April 25, DEG disbursed the first transaction of the PINE-DEG partnership, totaling US$16 million with an eight-year term for a company in the autoparts sector

6year term for a company in the autoparts sector.

On April 30, we concluded our first DCM transaction through our New York broker dealer. The deal amounted toUS$250 million for a Sugar and Ethanol company in the State of São Paulo.

7


1Q13 Financial HighlightsThe main performance indicators were within expectations in the quarter...

R$ millionsLoan Portfolio1

13.2%

Shareholders' Equity22.4%

Funding

2.3%

7 426 8 405

13.2%

1 029 1 260 6 589

2.3%

7,426 8,405 1,029 1,260 6,443 6,589

Mar-12 Mar-13 Mar-12 Mar-13

Fee Income

-3.2%

Net Income

-2.1%

ROAE

-400 bps

Mar-12 Mar-13

31 30 47 46 19 5% 15 5%

-400 bps

31 30

1Q12 1Q13

47 46

1Q12 1Q13

19.5% 15.5%

1Q12 1Q13


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

1Q12 1Q13 1Q12 1Q13 1Q12 1Q13

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

More than 1 product 1 product

3 0

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

56% 42% 42%2.7

3.02.8

44% 58% 58%

M 11 M 12 M 13 M 11 M 12 M 13Mar -11 Mar -12 Mar -13 Mar -11 Mar -12 Mar -13

Revenue Mix

1Q12 1Q13

Corporate Credit57.3%

PINE Investimentos

Corporate Credit56.6%

Treasury1.7%

PINE Investimentos

7.6%

Treasury8.2%

10.2%

FICC34.1%


FICC24.3%

Net Interest MarginNIM is within the guidance range.

+50 bps

NIM Evolution Impacts in the Period

5.0% 5.5%

Increased activity in the FICC business

Loan portfolio growth

4Q12 1Q13

Cash reserves returned to approximately 40% of deposits

4Q12 1Q13

NIM Composition

R$ millions

1Q13 4Q12 1Q12 QoQ YoY

Income from financial intermediation 102 93 122 9.7% -16.4%

O h d ff t (2) (1) (1) 100 0% 100 0%Overhedge effect (2) (1) (1) 100.0% 100.0%

Income from financial intermediation ex-overhedge 100 92 121 8.7% -17.4%

Provision for loan losses (13) (19) (11) -31.6% 18.2%

Income from financial intermediation after provision 87 73 110 19.2% -20.9%


Expenses and Efficiency RatioRigorous management and control of expenses.

Expenses

29.5%39.3% 37.7%

22 23 22

20

2224

Personnel Expenses

Other Administrative Expenses

Efficiency Ratio (%)

Efficiency Ratio1Q12 4Q12 1Q13

R$ millions

1Q13 4Q12 1Q12 QoQ YoY

Operating expenses 1 50 49 46 2.0% 8.7%

(-) Non-recurring expenses 1 1 1 - -( ) Non recurring expenses 1 1 1

Recurring Operating Expenses (A) 49 48 45 2.1% 8.9%

Revenues 2 (B) 130 122 152 6.6% -14.5%

Ratio (A/B) 37.7% 39.3% 29.5% -160 bps 820 bps1 Other administrative expenses +tax expenses +personnel expenses


Other administrative expenses + tax expenses + personnel expenses2 Gross Income from financial intermediation - provision for loan losses + fee income + overhedge effect

Loan Portfolio1

The portfolio maintained its growth to reach R$8.4 billion in March...

R$ millions

8 405

781

832

102 81

64 47

36 26

Individuals: 0.3%

6,875 7,065

7,426 7,641

7,444

7,948 8,405

1 534 1,687 1,684 1,599 1,699

2,114 2,501

622 772

756 782

1,021 1,154 942

230

190

124 102

Trade Finance: 9.9%

6,545

6,057

251 322 367 621 683 787 670 881

912 881 883 884

822 800 853 826 1,117

1,372 1,534 1,687

Bank Guarantees: 29.8%

3,136 3,175 3,329 3,289 3,389 3,382 3,274 3,377 3,550

71 122 251 322

BNDES Onlending: 9.8%

3,136 3,175 3,329 3,289 3,389 3,382 3,274 3,377 3,550

M 11 J 11 S t 11 D 11 M 12 J 12 S t 12 D 12 M 13

Private Securities +

Working Capital: 50.2%


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

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

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

Sugar and EthanolMeatpacking

Construction Material

2%

Financial Institutions

2% Other6% Financial

Telecom2%

Construction Material

2% Other9%

1Q13 1Q12

Sugar and Ethanol15%

Electric and Renewable Energy

12%Food Industry

3%

Chemicals2%

Metals and Mining2%

Meatpacking2%

Sugar and Ethanol20%

Metallurgy

Vehicles and Parts3%

Chemicals2%

Financial Institutions

2%

9%

12%

Construction

Beverages and Tobacco

3%

Vehicles and Parts3%

Telecom3%

3%

Construction9%

Meatpacking3%

Beverages and Tobacco

3%

Metallurgy3%

Construction11%

Agriculture8%

Infrastructure7%

Specialized Services

6%Transportation and

Logistics

Metallurgy4%

Foreign Trade4%

3%Agriculture

8%

Infrastructure8%

Electric and Renewable Energy

Foreign Trade5%

Transportation and Logistics

5%

Food Industry4%

Specialized Services

4%

7%6%Logistics5% 8%5%

Reduced exposure of the Sugar and Ethanol sector, from 20% to 15%;

Increased participation in other sectors such as Electric and Renewable Energy, and Construction;

Reshuffle of the 20 largest clients in approximately 20%;

20 largest clients represented 29% of the total portfolio.


g p p

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

B

1.2% 1.2%Contracts overdue

Installments overdue

Loan Portfolio Quality Non Performing Loans > 90 daysMarch 31st, 2013

AA-A56 0%

30.4%

0.7%0.6%

0.8%

0.2% 0.2%

0.4%

0.6% 0.6%

56.0%

C9.2%

D-E1.4%

F-H


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

3.0%

3.7% 3 5%

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

Credit Coverage Collaterals

3.4%3.7% 3.5%

3.3% 3.4% Products Pledge

39%Investments2%

Guarantees1%

Properties



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

Receivables28%

Properties Pledge

30%

FundingDiversified sources of funding...

R$ millions

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

1 011 808

Trade Finance: 11.4%

Private Placements: 2.6%

7,062

6 258 6,575 6,443

6,9726,804 6,589

312 314 593 640 901

205 237 246 233

295 260

409 402

267 310 353 276

234 156

152

78

155

84 86 250

125 118

180

173

171

385

549 757

686 771

1,011 1,073 752

Multilateral Lines: 1.2%

International Capital Markets: 6.1%

5,338

5,902 6,258

212 228 250 281 223 213 146

126 210 165

106 161 194 176 121

110 41

53 66 112 31 33 33 30

126 917

946 924 934 938 891 840 903

869 33

247 266 312 314 593 640 796

201

205 237 282 155

Local Capital Markets: 12.1%

Onlending: 13.2%

1,114 1,287 1,253 1,196 1,186 1,228 1,177

1,174 972

218 212 228 213

126 272 Demand Deposits: 1.9%

Interbank Time Deposits: 1.7%

1,720 1,845 1,965 2,130 2,128 2,153 2,056 2,245 2,186

High Net Worth Individual Time Deposits: 1.9%

Corporate Time Deposits: 14.8%


Mar-11 Jun-11 Sept-11 Dec-11 Mar-12 Jun-12 Sept-12 Dec-12 Mar-13Institutional Time Deposits: 33.2%

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

7.2x 7.3x

6.1x 6.5x 6.7x

Leverage Credit over Funding Ratio

86% 84% 83% 82%87%

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

R$ millions

ALM – Average Maturity Total Deposits over Total Funding

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

months

41% 45% 46% 47% 47%

Total Deposits Others

6,589 7,062 6,804 6,972 6,443 17

16 16 17 17

59% 55% 54% 53% 53%

14 13

14 14 15

Funding

L P tf li


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

Loan Portfolio

Capital Adequacy Ratio (BIS)BIS ratio reached 17.1%.

Tier I Tier II

4.5%4.2%

3 0% 2.1%

17.1% 16.6%

19.6%18.5%

16.4% 15.9%17.0%

16.2%17.1%

Minimum RegulatoryCapital (11%)

3.7% 3.4% 3.1% 3.3%3.0% 2.8%

2.1%

13.4% 13.2% 15.1% 14.3% 13.3% 12.6% 14.0% 13.4% 15.0%

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

R$ millions Basel (%)

Tier I 15.0%

Tier II 2.1%

Total 17.1%

1,268

185

1,454


Corporate Governance and PINE4

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

BOARD

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

Chairman Vice Chairman IndependentDirector

ExternalDirector

IndependentDirector

CEONoberto Pinheiro Jr.

INTERNAL AUDITTikara Yoneya

COMPENSATION COMMITTEE

AUDIT COMMITTEE

EXTERNAL AUDITPWC

Noberto Pinheiro Jr.

HUMAN RESOURCES

COO Norberto Zaiet

CROGabriela Chiste

CAOUlisses Alcantarilla

CFOSusana Waldeck

OriginationInvestment Banking

Asset & Liabilities Back Office

ControllingAccounting

Credit Corporate Researchg

Sales & TradingResearch Macro/ Commodities/CorporateInternational

LegalCollaterals ManagementSpecial SituationsMiddle Office

gTax PlanningITAccounts PayableOffice ManagementMarketingInvestor Relations

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


Investor Relations

Corporate GovernancePINE commits to best corporate governance practices…

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

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

Audit and Compensation Committee reporting directly to the Board of Directors

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

Arbitration procedures for fast settlement of litigation cases

First Brazilian bank to release BR GAAP and IFRS quarterly


Committees…favoring collective decision making.

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

BOARD OF DIRECTORS45 days

AUDIT COMMITTEE

COMPENSATION COMMITTEE

CEO

Bi-annuallyMonthly

COMMITTEES

CREDITASSET & LIABILITY

COMMITTEE ALCO

EXECUTIVE HUMAN RESOURCES

INVESTMENT BANK

PERFORMANCE EVALUATION IT ETHICS

INTERNAL CONTROLS AND

COMPLIANCERISK

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


PINE4

R$ thousands

PINE4 Evolution (since 2012) Average Daily Traded Volume

120

125

524 +90.5%

95

100

105

110

115PINE4: +12.0%

IBOV: -2.6%272 266 275

90.5%

75

80

85

90

95

162

7.8%

Multiples Dividend Yield

1Q12 2Q12 3Q12 4Q12 1Q13

PINE4

Price (R$) 14.44

P/BV 1 3

6.6% 6.5%

4.5% 4.3%

Average: 4.7%

P/BV 1.3x

P/E(1) 7.6x1.5%


PINE4 Bank 1 Bank 2 Bank 3 Bank 4 Bank 5

Dividend Yield: Average daily closing prices of the stocks in 1Q13 / Dividends and Interest on OwnCapital of the last twelve months

(1) Considers the market consensus for the 2013 net income; source: Bloomberg

Ownership Structure

As of April 30, 2013

Common Preferred Total %

Controlling Shareholder 58,444,889 15,410,863 73,855,752 66.6%

Management - 6,034,158 6,034,158 5.4%

Free Float - 29,935,154 29,935,154 27.0%

Individuals - 3,109,773 3,109,773 2.8%

Local Institutional Investors - 11,839,327 11,839,327 10.7%

Foreign Investors 8 093 382 8 093 382 7 3%Foreign Investors - 8,093,382 8,093,382 7.3%

DEG - 5,005,067 5,005,067 4.5%

Proparco - 1,887,605 1,887,605 1.7%

SubTotal 58,444,889 51,380,175 109,825,064 99.1%

Treasury - 1,017,249 1,017,249 0.9%

Highlights

easu y ,0 , 9 ,0 , 9 0.9%

Total 116,889,778 52,397,424 110,842,313 100%

Issuance of 2,211,213 new shares for the capital increase made by Proparco and minority shareholders on April 30, 2013.

PINE hired Itau to serve as Market Maker in order to increase PINE4’s liquidity. The activities of the Market Maker began onMay 13, 2013.


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

Partnership

The UN initiative mobilizes the international businesscommunity to adopt fundamental and internationallyaccepted values in their business practices in the areas

Responsible Credit

“Lists of Exceptions”: the Bank does not finance projects or thoseorganizations that damage the environment are involved in illegalaccepted values in their business practices in the areas

of human rights, labor relations, environment andcombating corruption, which are reflected in tenprinciples. Since October 2012

organizations that damage the environment, are involved in illegallabor practices or produce, sell or use products, substances or activitiesconsidered prejudicial to society.

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

Principles applied to Project Finance transactions wheretotal project capital costs exceed US$10 million and arebased on International Finance Corporation PerformanceStandards on social and environmental sustainability andon the World Bank Group Environmental Health and

Social Investment Recognition

on the World Bank Group Environmental, Health, andSafety Guidelines (EHS Guidelines). Since December/2012

Most Green Bank

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

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

in addition to sponsoring and supporting films and documentaries such as

Efficiency Energy

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

in addition to sponsoring and supporting films and documentaries such as

Quebrando o Tabu (Fernando Henrique Cardoso on the drug war), Além da

Estrada (Charly Braun) and others.


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Investor Relations

Noberto Pinheiro Jr.

CEO

Susana Waldeck Norberto Zaiet Junior

CFO / IRO COO

Raquel Varela

Head of Investor Relations

Alejandra Hidalgo

Investor Relations Manager

Ana Lopes

Investor Relations Analyst

Phone: +55-11-3372-5343

www.pine.com/ir

[email protected]


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

1Q13 Institutional Presentation

Economy & Finance

Transcript of 1Q13 Institutional Presentation