3Q12 Earnings Conference Call

3Q12 Earnings Releaseg

November 13th, 2012

Agenda

3Q12 Events and Highlights 3

3Q12 Financial Highlights 4

Product and Revenue Diversification 5

Loan Portfolio 6

Loan Portfolio Quality 7

Active Loan Portfolio Management 8

FICC 9

PINE Investimentos 10

Funding 11

Asset & Liability Management 12

Capital Adequacy Ratio (BIS) 13

Capital Increase 14

2/15Investor Relations | 3Q12|

3Q12 Events and Highlights

US$30 million, 7-year funding transaction with the Global Climate Partnership Fund (GCPF), fund backedby the German Government with the KFW Bankengruppe, the Government of Denmark and IFC, andmanaged 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.

P iti t ib ti f ll b i li i 9M12 60 2% f C t C dit 17 6% fPositive revenue contributions from all business lines in 9M12: 60.2% from Corporate Credit, 17.6% fromHedging Desk, 11.2% from Treasury and 11.0% from PINE Investimentos, which continues to demonstratethe 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 ofPine´s support of the energy efficiency sector.

Ranked amongst the 15 largest players in the CETIP derivatives ranking, and 2nd largest in commodityderivatives.

9th largest bank in Brazil in offering credit to large corporates, 15th in credit to companies, and 5th in


g g g p , p ,wealth generated per employee, according to the “Melhores e Maiores” ranking compiled by Examemagazine.

3Q12 Financial HighlightsThe main performance indicators continued to show positive development in the period…

R$ MillionsT t l C dit Ri k1 T t l F di Sh h ld ' E itTotal Credit Risk1

8.3%

Total Funding

7.6%

Shareholders' Equity

23.8%

6,875 7,444 6,248 6,725

982

1,216

Sept 11 Sept 12 S t 11 S t 12

982

Sept 11 Sept 12

ROAE

170 bps19 0%2

Net Income

23 7%

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

Fee Income

19.0%223.7%86.7%

17.3% 17.7%38 47

15

28


¹ Includes debentures, CRIs, eurobonds and hedge fund shares

3Q11 3Q123Q11 3Q123Q11 3Q12

2 Excluding the capital increase of R $ 139.6 million in September,

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%2.8

2.9

2.8

59% 60% 63%

Revenue MixSept-10 Sept-11 Sept-12 Sept-10 Sept-11 Sept-12

9M11 9M12

Corporate Credit65.9%

PINE Investimentos

3.9%

9M11

PINE Investimentos

11.0%

Treasury4.9%

Corporate Credit60.2%

Treasury11.2%


FICC25.3%

FICC17.6%

Loan Portfolio1

The portfolio has maintained its product distribution…R$ millions

8164 477 063

7,426 7,641 7,444

772 756

782 1,021 1,154 942

269 230190

124 10081 47

Retail

Trade finance5,613

6,033 6,0576,545

6,875 7,063

883 822 800 827

1,022 1,117 1,372

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

555

533 622 772

336

269 Trade finance

Guarantees

4 75 172

279 325 386 670 783644 846 881 912

881 883 883

BNDES Onlending

3,251 3,358 3,132 3,126 3,300 3,286 3,370 3,332 3,174 Private Securities

Sept-10 Dec-10 Mar-11 Jun-11 Sept-11 Dec-11 Mar-12 Jun-12 Sept-12

Working Capital


¹ Includes debentures, CRIs, eurobonds and hedge fund shares

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

Loan Portfolio Quality Non Performing Loans > 90 daysSeptember 30th, 2012

B40,5%

0.8%Contracts overdue

I t ll t O d

C0.5%

0.6% 0.7%0.6%

0.4%

Installments Overdue

11,7%

D-E2,5%

F-H

0.2% 0.2% 0.2% 0.2%

Credit Coverage Collaterals

P d t +80 bps

AA-A43.7%

1,6%Sept-11 Dec-11 Mar-12 Jun-12 Sept-12

Products Pledge

47%

Investments

Guarantees2%

+80 bps

Properties

Investments3%

2.7%3.7% 3.5%


Receivables26%

Properties Pledge

22%

Sept-11 Jun-12 Sept-12

Active Loan Portfolio Management

3Q12 2Q12

Sugar and Ethanol; 19%

Financial Institutions; 2%

Meatpacking; 2%

Telecom2%

Others; 9%

Sugar and Ethanol16%Financial

Institutions2%

Construction Material

2%

Others 9%

Construction10%

Beverages and

Metal and Mining; 3%

Food Industry; 3%

Chemicals; 3%

;

Construction12%

Beverages and

Food Industry3%

Telecom2%

Chemicals2%

2%

Electric and Renewable Energy;

9%Specialized Services;

4%

Vehicles and Parts; 4%

Beverages and Tobacco; 4%

Electric and Renewable Energy

10%

S i li d

Metal and Mining4%

Vehicles and Parts4%

Beverages and Tobacco

3%

Reduction of exposure to the Sugar and Ethanol sector from 19% to 16%;

Agriculture; 9%

Infrastructure; 7%Foreign Trade; 5%

Transportation and Logistics; 5%Agriculture

9%Infrastructure

6%Transportation and Logistics

6%

Foreign Trade6%

Specialized Services

4%

Reduction of exposure to the Sugar and Ethanol sector, from 19% to 16%;

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.

FICCPINE is the 2nd player in commodity derivatives1.

Client Notional Derivatives Portfolio by Market Notional Value and MtMSeptember 30th, 2012 R$ millions

Fixed Income

22%597 629

Notional Value

MtM

Stressed MtM

Currency56% 256 238

358 354 354

Commodities22%

56%

3,709 3,712 4,287 4,720 4,875

178 157 126

256 238

Market Segments Portfolio Profile

Scenario on September 30thFixed Income: Fixed Floating Inflation Libor

22%

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

Scenario on September, 30th

Duration: 210 days

Mark-To-Market : R$238 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$629 million

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


1Source: Cetip Report, September 2012

PINE InvestimentosConsolidation of the Investment Banking franchise.

Transactions

Capital Markets: Structuring and Distribution of Fixed

Income TransactionsIncome Transactions.

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

and hybrid capital transactions.

R$ 90,400,000Debentures



y p

Assets under Management: Fixed Income, Credit Funds,

Exclusive Mandates.September 2012

Coordinator

August 2012

Lead Coordinator

July 2012

Coordinator

Volume of Underwriting Transactions RevenuesR$ Millions R$ Millions

880 52

September, 2012August, 2012July, 2012

623

880 52

242 346

217

2

18 1814


3Q11 2Q12 3Q12 9M11 9M12 3Q11 2Q12 3Q12 9M11 9M12

FundingDiversified sources of funding…

R$ millions

Trade Finance

6,933 6,725

234 250 125 118

180 596 814

753 841

1,089 1,083

Private Placements

Multilateral Lines

5,3225,437

5,9026,248

6,544 6,421,

33 829 898 867 867 868 813

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 86 125 180

413 377 435

596 International Capital Markets

Local Capital Markets

5,322,5,182

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

198 214 218

212 228 250 281 223 213 224 320

272 210 165 106 161 194

176 46 42

41 53 66 112 31 33

33 626 829

867 898 867 829

BNDES

Demand Deposits

8 1 965 2 130 2 128 2,153 2 056

1,463 1,530 1,114 1,287 1,253 ,

Interbank Time Deposits

High Net Worth Individual Time Deposits

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

p

Corporate Time Deposits

Institutional Time Deposits


p

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

Matching of Transactions

CREDIT FUNDING

Loan / Total Funding

80%76%

81%76% 73%

BNDES BNDES

Trade Finance Trade Finance

73%

DepositsWorking Capital, Private

Securities1 And Cash Financial Bills

ALM Deposits vs. Total Funding

Intl. Funding1 Includes debentures, CRIs, eurobonds, and fund shares

R$ MillionsR$ Millions

Sept-11 Dez-11 Mar-12 Jun-12 Sept-12

41% 45% 46%

Oth

6,9336,248 6,7252,947

2,165

1,739

2,155

1,679

Credit Funding

59% 55% 54%

Others

Total Deposits

-

1,363

494

118 33

,

957

162


Sept-11 Jun-11 Sept-12

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

Capital Adequacy Ratio (BIS)BIS ratio reached 17.0%.

Tier II Tier IMinimum Capital Requirement (11%)

3 6%4.5%

18.4%17.4% 17.1% 16.6%

19.6%18.5%

16.4% 15.9%17.0%

3.6% 3.6% 3.7% 3.4%

4.5%4.2%

3.1% 3.3%3.0%

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$ milion BIS Ratio(%)

Tier I 14.0%

Tier II 3.0%

1,210

256


Total 17.0%1,466

Capital IncreaseCentral 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 l ft b ib d b i it h h ld

With the aproval of the Central Bank, the shareholders´ structure is as follows:

12,055 left overs subscribed by minority shareholders.

f d lCommon 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%

T eas 394 840 394 840 0 4%


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

Noberto N. Pinheiro Júnior

CEO

Susana Waldeck Norberto Zaiet Junior

CFO / IRO COO

Raquel Varela

H d f I R l iHead of Investor Relations

Alejandra Hidalgo

Investor Relations ManagerInvestor Relations Manager

Ana Lopes

Investor Relations AnalystInvestor Relations Analyst

Fone: +55-11-3372-5343

Thi t t i f d l ki t t t i th b i t j ti f ti d fi i l lt d th tl k f PINE Th l j ti d h

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 merely projections and as suchare 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 taxlegislation) 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 potentialinvestor 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)..

3Q12 Earnings Conference Call

Economy & Finance

Transcript of 3Q12 Earnings Conference Call