1886 cc 1_t15_eng

1Q15 Earnings Release Conference Call

May 12th, 2015

Agenda

1Q15 Events and Highlights 3

1Q15 Financial Highlights 4

Net Interest Margin 5

Expenses and Efficiency Ratio 6

Loan Portfolio 7Loan Portfolio 7

Continuous Loan Portfolio Management 8

Main Sectors – Sugar and Ethanol | Agriculture| Real Estate 9

Main Sectors – Energy and Engineering 10

Loan Portfolio Quality 11

FICC 12

Pine Investimentos 13

Funding 14

Asset & Liability Management 15

Capital Adequacy Ratio (BIS), Basel III 16

2/17Investor Relations | 1Q15 |A parte de imagem com identificação de relação rId28 não foi encontrada no arquivo.

1Q15 Events and Highlights

1. Increase in the positive liquidity gap, with 12 months for credit versus 17 months for funding.

2. Liquid balance sheet, with a cash position of R$1.4 billion, equivalent to 48% of time deposits.

3. Active and constant liability management that led to a further reduction in the cost of funding.

4. Loan portfolio coverage ratio above 4% as a result of an important increase in provisions in the last twelve months.

5. 16% reduction of personnel and administrative expenses in the quarter, as a result of the diligence and anticipation of an adversep p q , g p

market in 2015.

6. 18th largest bank in derivative transactions and the 3rd largest in commodity derivatives segment according to CETIP – OTC Clearing

HHouse.


1Q15 Financial HighlightsThe main performance indicators were within expectations in the period.

Total Loan Portfolio1

-1.7%

R$ million

Total Funding

-1.6%

Shareholders’ Equity

-1.0%

9,826 9,657 8,500 8,367 1,256 1,244

D 14 M 15D 14 M 15

, ,

D 14 M 15Dec-14 Mar-15Dec-14 Mar-15

Net Income

Dec-14 Mar-15

NIM Evolution

-10 bps

ROAE

+160 bps+100.0%

10 bps +160 bps

5 10

4.1% 4.0%

1.7%

3.3%


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

4Q14 1Q15 4Q14 1Q15 4Q14 1Q15

Net Interest MarginNIM in line with guidance.

-10 bps

NIM Evolution Impacts in Period

Lower revenue contrinution from FICC and Treasury;

4.1% 4.0%

Mark to Market of securities; and

Increased spreads at origination.

4Q14 1Q154Q14 1Q15

NIM Breakdown

R$ million

1Q15 4Q14 1Q14 QoQ YoY

Recurring Financ ial Margin

Income from financial intermediation 54 83 109 -34.9% -50.5%

Overhedge effect 34 10 (3) 240.0% -1233.3%

Liabilities hedge effect - 1 (4) -100.0% -100.0%

Recurring Income from financial intermediation 88 94 102 -6.4% -13.7%


Expenses and Efficiency RatioCost control, better than the guidance range.

Expenses

39.8% 42.2% 39.1%4 0 . 0 %

6 0 . 0 %

4 5

5 0

2327

23

26

22- 2 0 . 0 %

0 . 0 %

2 0 . 0 %

2 5

3 0

3 5

4 0

Personnel Expenses

Other administrative expenses

18

- 8 0 . 0 %

- 6 0 . 0 %

- 4 0 . 0 %

5

1 0

1 5

2 0

expenses

Recurring Efficiency Ratio (%)

Efficiency Ratio

- 1 0 0 . 0 %0

1Q14 4Q14 1Q15

R$ million

1Q15 4Q14 1Q14 QoQ YoY

Operating expenses 1 45 52 53 -13.5% -15.1%

(-) Non-recurring expenses (1) (3) (4) -66.7% -75.0%

R i O ti E (A) 43 49 49 12 2% 12 2%Recurring Operating Expenses (A) 43 49 49 -12.2% -12.2%

Recurring Revenues 2 (B) 110 116 123 -5.2% -10.6%

Recurring Efficiency Ratio (A/B) 39.1% 42.2% 39.8% -310 bps -70 bps

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


Loan PortfolioThe portfolio ended the period at R$9.7 billion...

R$ million

-4.3%

903 989 1 116 826

9,6579,5379,930 10,090 10,032 9,800 9,826

-1.7%

3 073

2,909 2,905 2,941 2,896 2,969

3,191

842

1,059

965 903 1,116 924 826

909 Trade finance: 9.4%8,405

8,994 1

826 844 990

1,068 1,103 1,071 1,248 1,302

1,118

2,501 2,807

3,073 3,191

Bank Guarantees: 33%33.0%

4 509 5,050 5,093 4,904 4,731 4,730 4 440

826 844

BNDES Onlending : 11.6%

4,236 4,284 4,509 4,731 4,730 4,440

Working Capital: 46%246.0%


Mar-13 Jun-13 Sept-13 Dec-13 Mar-14 Jun-14 Sept-14 Dec-14 Mar-151 Includes Stand by LC2 Includes debentures, CRIs, Hedge Fund Shares, Eurobonds, Credit Portfolio acquired from financial institutions with recourse and Individuals

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

13%14%12%15%20% Sugar and

Sectors Rebalance

Sugar and Ethanol13%Food Industry

Construction Material

1%

Other9%

10%10%10%8%8%

12%10%12%12%8%

12%12%13%11%9%

20%Ethanol

Real Estate

Energy

Real Estate12%

S i li d

Vehicles and Parts2%

Retail2%

Meatpacking2%

2% 1%

7%6%5%5%5%8%8%8%7%8%

0%Agriculture

Engineering

Transportation

Energy12%

Chemicals4%

Metallurgy4%

Specialized Services

3%

38%40%40%43%42%

Mar‐15Dec‐14Mar‐14Mar‐13Mar‐12

pand Logistics

OthersAgriculture10%

Engineering8%

Transportation and Logistics

7%

Telecom5%

Foreign Trade4%

4%

7%

The composition of the portfolio of the 20 largest clients changed by over 15% in the past twelve months;

The total portfolio share of the 20 largest clients remained below 30%, in line with market peers.


Main SectorsSugar and Ethanol | Real Estate | Agriculture

MallCommercial

3%MSOnlending Trade Finance

Sugar and Ethanol Real Estate

Exposure by Product Exposure by State Exposure by Product Exposure by Segment

Guarantees23%

Warehouse14%

Mall7%

SP75%

PR6%

GO2%

AL0%

MS0%

Guarantees34%

g9% Finance

7%

Working Capital

77%

Residential Lots40%

Residential36%

MG17%

Working Capital

50%

Agriculture

Exposure by Product Exposure by State

Trade Finance

14% Onlending12%

Guarantees1%

Exposure by Product Exposure by State

MT32%

MS

Others8%

Working

SP30%BA

9%

ES5%

CE4%

MS2%


Working Capital

73%PR10%

Main SectorsEnergy | Engineering

Energy Engineering

Exposure by Product Exposure by Product

Guarantees11%

Onlending3%

Working Capital

18%

Onlending8%

Working Capital

Guarantees74%

p86%

Exposure by SegmentExposure by Segment

Transporta-tion34%

Concession31%

UTE13%

Distributors10%

Transmitting 34% 31%

I d t i lEnergy

1%

Wind Energy

g8%

Equipment Supplier

6%

SHPs UHEs3%

T d


Industrial22%

Oil and Gas7%

Sanitation5%

1%gy

59% Trader1%

Loan Portfolio Quality94% of loan portfolio classified between AA-C ratings.

March 31st, 2015

Loan Portfolio Quality – Res. 2,682 Non Performing Loans > 90 days (Total Contract)

B39.0%

1.2% 1.1% 0.7%0.1%

0.7% 0.3% 0.3%1.1%

2.1%

C14.3%

Contracts Overdue: total amount of the contracts overdue for more than 90 days / Loan Portfolio

Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15

AA-A40.2%

D-E3.0%

F-H3.4%

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

Credit Coverage Collaterals

Products

6.2%

5.0%

6.4%

2.9% 2.9%4.1%

Products Pledge

40%Investments3%

Mar-14 Dec-14 Mar-15

D-H Portfolio Coverage of Total Portfolio Receivables19%

Properties Pledge

38%1 2


1D-H Portfolio: D-H Portfolio / Loan Portfolio Res. 2,6822Coverage of Total Portfolio: Provisions / Loan Portfolio Res. 2,682

g19%38%

FICCProven trackrecord: 3rd in commodity derivatives1.

March 31st, 2015 R$ million

Client Notional Derivatives by Market Notional Value and MtM

Notional Amount

MtM

Stressed MtM

Fixed Income7%

Currencies80% 482

354 288 221

349

(47)

Stressed MtM

Commodities13%

7%

11,268 14,382 8,376 7,703 7,482

(243)

(532)

(47)

(365)

(103)

Scenario on March 31st 2015:

Market Segments Portfolio Profile

Mar-14 Jun-14 Sept-14 Dec-14 Mar-15

Scenario on March 31st,2015:

Duration: 149 days

Mark-to-Market: R$349 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$103 million)

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


1Source: Reporte Cetip, March 2015

Pine Investimentos

R$630,000,000R$30,000,000R$24,000,000

Selected Transactions

Capital Markets: Structuring and Distribution of Fixed

Income TransactionsBNDES Onlending

Coordinator

Project Finance

Lead Coordinator

Structuring CRP

Lead Coordinator

Income Transactions.

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

and hybrid capital transactions.

Long Term Loan

US$25,000,000

Debentures

R$50,000,000R$45,200,000

Debentures

December, 2014

Coordinator

February, 2015March, 2015

Lead CoordinatorLead Coordinatory p

Research: Macro, Commodities, and Corporate.

A t 2014

Financial Advisor

S b 2014

Lead Coordinator

N b 2014

Lead CoordinatorR$ million

Fee Generation

Export Prepayment Finance

August, 2014

US$58,000,000 R$459,300,000

M&A

September, 2014November, 2014

Project Finance

R$391,459,000

August, 2014

Structuring Agent

June, 2014

Advisor

July, 2014

Financial Advisor

2 3


4Q14 1Q15

FundingDiversified sources of funding...

R$ million

58% 48%42% 44% 41%39% 41% 35% 48% Cash over Deposits

8 797 Trade Finance: 11 1%

-4.9%

434 113 364

346 388

687 500

478

473 531 430

773 973

871 834

1,064 819 839

929

8,367

6 589

7,111

7,8948,383

8,7978,559 8,638 8,500

Trade Finance: 11.1%

Private Placements: 9.2%

Multilateral Lines: 10%

I i l C i l M k

10.0%

1,174 1 086 286 649

632 582 594 709

635 642

689

762 792

833 508 892

747

796 402

435

437

459 434

427 323

347

338 78 80

69

113 346 687

837

171 181

429

762 997

6,589 International Capital Markets: 4%

Financial Letter : 9.5%

Local Capital Markets: 6.1%

4.0%

972 1,013 1,048

1,112 1,022 761 731

225 254 372 475 659

908 920

1,122

110 110 93 90

76 80 98

69

157

126 19 20 23

27 41 30 27

24

859 862 1,099 1,141

1,174 1,086 1,292

1,333

1,161

154 286 509 Onlending: 13.9%

Demand Deposits: 0.3%

Interbank Time Deposits: 1.9%

2,087 2,185 1,944 2,175 2,314 2,271 1,905 1,720

1,209

,731

545

361

1,273 High Net Worth Individual Time Deposits: 15.2%

Corporate Time Deposits: 4.3%

Institutional Time Deposits: 14.5%


Mar-13 Jun-13 Sept-13 Dec-13 Mar-14 Jun-14 Sept-14 Dec-14 Mar-15

14.5%

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

Leverage Credit over Funding Ratio

82% 83%80% 80%7 9 7 9

9 . 0

1 0 . 0

Expanded loan Porfolio

Loan Portfolio excluding Bank Guarantees

80% 80%77%7.9x 7.9x 7.7x 7.8x 7.8x

5.6x 5.6x 5.4x 5.4x 5.2x

4 . 0

5 . 0

6 . 0

7 . 0

8 . 0

Mar-14 Jun-14 Sept-14 Dec-14 Mar-15‐

1 . 0

2 . 0

3 . 0

Mar-14 Jun-14 Sept-14 Dec-14 Mar-15

Total Deposits Others

Leverage: Expanded Loan Portfolio / Shareholders’ EquityExpanded 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 ofCredit / Total Funding

ALM – Average Maturity Total Deposits over Total FundingR$ millionmonths

53% 53% 57% 59% 64%

Total Deposits Others

8,638 8,3678,797 8,559 8,500

16 16 16

16 17

47% 47% 43% 41% 36%

59% 64%14 14

13 12 12

Funding


43% 41% 36%

Mar-14 Jun-14 Sept-14 Dec-14 Mar-15Mar-14 Jun-14 Sept-14 Dec-14 Mar-15

Credit

Capital Adequacy Ratio (BIS), Basel III BIS ratio reached 13.0%.

Tier II Tier I

2.1% 2.3%2.2%

1 4% 13 0%

17.1% 17.0%15.9%

14.1% 13.7% 13.7% 13.8% 13.9%

Minimum Regulatory Capital (11%)

15.0% 14 7% 13 7%

2.1% 1.5% 1.5% 1.4% 1.4%0.8%13.0%

15.0% 14.7% 13.7%12.0% 12.2% 12.2% 12.4% 12.4% 12.2%

Mar-13 Jun-13 Sept-13 Dec-13 Mar-14 Jun-14 Sept-14 Dec-14 Mar-15

R$ Million BIS (%)

Tier I 1,232 12.2%

Tier II 85 0.8%

Total 1 317 13.0%


Total 1,317 13.0%

Investor Relations

Noberto N. Pinheiro Junior

CEO/IRO

Raquel Varela BastosHead of Investor Relations, Marketing & Press

Luiz MaximoInvestor Relations SpecialistInvestor Relations Specialist

Ana LopesInvestor Relations Analyst

Gabriel NettoInvestor Relations Analyst

Phone: (55 11) 3372-5343

www.pine.com/[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.

1886 cc 1_t15_eng

Investor Relations

1q15 financial highlights

investor relations 1q15

1q14 4q14 1q15 r

agenda 1q15 events

1q15 4q14 1q14 qoq yoy

administrative expenses

personnel expenses

loan portfolio coverage