2Q14 Institutional Presentation

Institutional PresentationInstitutional Presentation 2Q14

Profile and History

Pine

History

Business Strategy

Competitive Landscape

Focus Always on the Client

Corporate Credit

FICC

Pine Investimentos

Summary

2/31Investor Relations | 2Q14 |

Pine Investimentos

Rating Upgrades

Highlights and Results

Corporate Governance and PINE4

Organizational Structure

Corporate Governance

Committees

PINE4

Social Investment and Responsibility

Profile and History

PineSpecialized in providing financial solutions for large clients

Credit Portfolio by Annual Client Revenues

June 30th, 2014

Over R$2 billion44%

R$500 million to R$2 billion

R$250million to R$500 million

12%

Up to R$250 million

6%

4/31Investor Relations | 2Q14 |

Profile

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, FinancialAdvisory, Project & Structured Finance andResearch

R$2 billion38%

801 827 825

867

1,015

1,220 1,272 1,270

...with extensive knowledge of Brazils corporate credit cycle.

History

1939Pinheiro Family

foundsBanco Central do

Nordeste

1975Noberto Pinheiro becomes one of

End of 2007Focus on expanding the Corporate Banking franchise

Discontinuation of the payroll-deductible loan business

May, 2007Creation of Pine Investimentos products line and

opening of the Cayman branch

2005Noberto Pinheiro becomes Pines sole

shareholder

October, 2007Beginning of the FICC Business

October, 2011Subscription of Pines capital by DEG

August, 2012 Subscription of Pines capital by DEG, Proparco, Controlling Shareholder and Management

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

5/31Investor Relations | 2Q14 |

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

2,854 3,108

4,195

5,763

6,963

7,911

9,920 10,032

18 62

121 126 140 136 152 171

209

335

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

Dec-

13

Jun-1

4

Corporate Credit Portfolio (R$ Million)

Shareholders' Equity (R$ Million)

1997Noberto and Nelson Pinheiro sell their stake in BMC and

found Pine

becomes one of BMCs controlling

shareholders

Devaluationof the real

Nasdaq Sept. 11 Brazilian Elections

(Lula)

SubprimeAsian Crisis

Russian Crisis

European Community

shareholder

March, 2007

IPO

May, 2014

17 years

Business Strategy

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

100% Corporate

Large Multi-Services banks

Market

Consolidation of the banking sector has decreasedthe supply of credit lines and financial instrumentsfor corporate

Foreign banks are in a deleveraging process

PINE

Full service Bank Credit, Hedging, and Investment

7/31Investor Relations | 2Q14 |

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

Corporate & SME

SME & Retail

Retail

Full service Bank Credit, Hedging, and InvestmentBank products with room for growth

~10 clients per officer

Competitive Advantages:

Focus

Fast response: Strong relationship withclients, with the credit committee meetingtwice a week and response times to clients ofno more than one week

Specialized services

Tailor-made solutions

Product diversity

Foreign and Investment Banks

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

Working Capit

CDIs

OverdraftAccounts

Fixed Income

Currencies

Commodities

Equities

CDBs

CDs

RDBs

LCAs

LCIs

DebenturesCRIs

CCBs

Eurobonds

PrivatePlacements

Financial Letters

TreasuryDistribution

Capital Markets

Financial Advisory

Local Currency

Foreign Currency

Pricing of Assets and Liabilities

LiquidityManagement

Trading

Local Currency

Working CapitalUnderwriting

8/31Investor Relations | 2Q14 |

BankGuarantees

Exclusive Funds

Portfolio Management

Swap NDFsStructured Swaps

BNDES Onlending

Bank Guarantees

Compror

ACC/ACE

Export Finance

Finimp

Lettersof Credit

2,770 onlending

Accounts

Syndicated andStructured Loans

ClientsCorporate

Credit

FICC

PineInvestimentos

Capital Markets

Financial Advisory

Fixed Income Currencies

Commodities

Local Currency

Onlending

Foreign Currency

Trade FinanceParticipation

Funds

Options

Corporate & Structured

Finance

M&A

Project Finance

StructuredFinance

Private Credit Funds

Real Estate Funds

Rural Credits

AircraftFinancing

Investment Management

In addition to the

headquarters located in the

city of So Paulo, Pine has 11

branches throughout Brazil, in

the States of Cear, Mato

Grosso, Minas Gerais, Paran,

Pernambuco, Rio de Janeiro,

Rio Grande do Sul, and

So Paulo. The origination

network Also counts with a

Cayman Branch and a broker

dealer in New York (USA).

Corporate Credit

Actions Credit Committee

Strong track record and solid credit origination and approval process.

Meets twice a week reviewing 20 proposals on average

Minimum quorum: 4 members - attendance of CEO orChairman is mandatory

Members:

Chairman of the Board

CEO

Chief Operating Officer

Chief Administrative Officer

Chief Risk Officer

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

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

Established long term relationships with more than 600economic groups

Origination network is comprised of 11 branches dividedinto 14 origination platforms in Brazils major economiccenters

9/31Investor Relations | 2Q14 |

Credit Approval: Electronic Process

Origination OfficersOrigination Officers

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

research team

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 decision making process

CREDIT COMMITTEE CREDIT COMMITTEE

Chief Risk Officer

Participants:

FICC Executive Director

Credit Analysts

Other members of the Corporate Banking origination team

centers

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

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

Discussion on sizing, collateral, structure etc.

Commodities

Fixed Income4%

Currencies90%

5,891 11,090 11,148 11,268 14,382

248

530

327

482

354

298

(195)(310)

(243)

(532)

Notional value

MtM

Stressed MtM

June 30th, 2014 R$ million

FICCProven trackrecord: 2nd in commodity derivatives1.

Client Notional Derivatives by Market Notional Value and MtM

10/31Investor Relations | 2Q14 |

Commodities6%

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

Market Segments Portfolio Profile

1Source: Cetip Report, June 2014

Scenario on June, 30:

Duration: 149 days

Mark-to-Market : R$354 million

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

Stressed MtM: (R$532 million)

Fixed Income: Fixed, Floating, Inflation, Libor

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

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

R$300,000,000

January, 2014

Coordinator

Pine Investimentos

Selected Transactions

Consolidation, result of the focused effort through the years despite the capital market cycles.

Promissory Note

R$300,000,000

February, 2014

Debentures

Coordinator

R$25,000,000

May, 2014

Debentures

Coordinator

Capital Markets: Structuring and Distribution of Fixed

Income Transactions.

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

and hybrid capital transactions.

Research: Macro, Commodities, and Corporate.

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