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Institutional Presentation2Q122Q12
Summary
History and ProfilePINEHistory
Business StrategyCompetitive LandscapeFocus on the ClientCorporate CreditCorporate CreditFICCPINE InvestimentosPillarsRating Upgrades
Highlights and Results
Corporate Governance and PINE4Organizational Structure Organizational Structure Corporate GovernanceCommitteesDividends and Interest on own Capital
Appendix
2/34Investor Relations | 2Q12 |
History and Profile
PINESpecialized in providing financial solutions for wholesale clients…
Credit Portfolio by Annual Client RevenuesJune 30th, 2012
Up to R$ 150million
> R$ 1 billion
R$ 150 toR$500million
17%
billion56%
R$ 500 million to
R$ 1 billion
12%
Profile
Focused on establishing long-term relationships Business is structured along four primary business lines:
15%
g g p
Profound knowledge and product penetration
g p y
• Corporate Credit: credit and financing products• FICC: instruments for hedging and risk
management• PINE I ti t I t t B ki d• PINE Investimentos: Investment Banking and
Investment Management• Distribution: Funding and investment solutions
for foreign and local investors
4/34Investor Relations | 2Q12 |
History...with extensive knowledge of Brazil’s corporate credit cycle.
1939Pinheiro Family
founds End of 2007
August, 2012Subscription of PINE’s capital
by DEG ,Proparco1,Controlling shareholder and management
1
October, 2011Subscription of PINE’s capital by DEGfounds
Banco Central do Nordeste
October, 2007Creation of the Hedging Desk
Focus on expanding the Corporate Banking franchiseDiscontinuation of the payroll-deductible loan business
Subscription of PINE s capital by DEG
827 825
867
1,015 1,053
1975Noberto Pinheiro
2005Noberto Pinheiro becomes
May, 2007Creation of PINE Investimentos product line
and start up of Cayman branch
801 827 825
Noberto Pinheiro becomes one of
BMC’s controlling shareholders
PINE’s sole shareholder
Corporate Credit Portfolio (R$ Millions)
Shareholders' Equity (R$ Millions) 4 181
5,747
6,921 7,478
209
335
1997
q y ( $ )
155 184 222 341 521 620 755 663 761 1,214
2,854 3,070
4,181
18 62
121 126 140 136 152 171 209
Noberto and Nelson Pinheiro sell their stake in BMC and
found PINE
Devaluation Nasdaq Sept. 11 Brazilian SubprimeAsian Russian European
155 184 222 341 521 620 663
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
Jun-
12
5/34Investor Relations | 2Q12 |
March, 2007IPO
of the realNasdaq Sept. 11 Brazilian
Elections(Lula)
SubprimeAsian Crisis
Russian Crisis
European Community
May, 201215 years1 Subject to precedent conditions and final negotiations
Business Strategy
Competitive LandscapePINE serves a niche market of companies that lack adequate banking options, seeking a bank that fully understands their needs.understands their needs.
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 corporates
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
7/34Investor Relations | 2Q12 |
Specialized services Tailor-made solutions Product diversity
Focus Always on the ClientThe bank develops a strategy of product diversity, tailored to meet the needs of each client.
CDIsCDs
LCIs
CCBs PrivatePricing of Assets and
Liabilities
Fixed Income
Currencies
CDBs
RDBs
LCAs
Eurobonds
PrivatePlacements
Financial Letters
Local Currency
Liabilities
LiquidityManagement
Working Capital
Overdraft
Currencies
Commodities
Equities
DebenturesCRIs
TreasuryDistribution
Foreign Currency
Trading
Working CapitalUnderwriting
BNDES Onlending
Bank Guarantees
Compror
ACC/ACE
OverdraftAccounts
ClientsCorporate
Credit PINE
Investimentos
Capital Markets
Advisory
Local Currency
Onlending
Foreign Currency
Trade Finance
g
Advisory
Private Placements
Structured/ Investment
Management
BankGuarantees
Fixed Income Funds
ACC/ACE
Export Finance
Finimp
Letters of Credit
2,770 onlending
FICC
Fixed Income Currencies
Credit Funds
Structured/ProjectFinance
Structured/ ProjectFinance
StructuredFinance
Management
Funds
Portfolio Management
Swap NDFsStructured Swaps
Syndicated andStructured LoansCommodities
8/34Investor Relations | 2Q12 |
Options
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, agile service, working closely with clientsand keeping a low client to account officer ratio: eachofficer handles ~10 economic groups on average. q
Chairman is mandatory
Members:Chairman of the Board
officer handles 10 economic groups on average.
Geographic coverage of clients, providing the bank withlocal and extremely up-to-date credit intelligence andinformation.
Chairman of the BoardCEOChief Operations OfficerChief Administrative OfficerChief Risk Officer
Established long term relationships with more than 600economic groups
Origination network is comprised of 11 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
9/34Investor Relations | 2Q12 |
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.
FICCPINE is the 1st player in terms of OTC commodities NDF for clients¹…
Client Notional Derivatives Portfolio by Market Notional Value and MtMJune 30th, 2012
597
Notional Value MtM Stressed MtM
R$ millions
Fixed Income24% Currency
60%
256
224
358 354 354
Commodities16% 3,457 3,709 3,712 4,287 4,720
84 178 157 126
16%
Market Segments Portfolio Profile
Scenario on June 30th:Fixed Income: Fixed Floating Inflation Libor
, , , , ,
Jun-11 Sept-11 Dec-11 Mar-12 Jun-12
Scenario on June, 30th:
Duration: 249 days
Mark-To-Market: R$256 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$597 million
Commodities: Sugar, Soybean (Grain, Meal and Oil), Corn,Cotton, Metals, Energy
10/34Investor Relations | 2Q12 |
1Source: Cetip Report, June 2012
PINE Investimentos… and #10th in Debt Capital Markets1 in Brazil.
Volume of Underwriting Transactions RevenuesR$ Millions R$ Millions
381
317 346 16
18
317
12
Selected Transactions
2Q11 1Q12 2Q12 2Q11 1Q12 2Q12
R$540,000,000M&A
R$115,000,000Project Finance
R$25,000,000
Certificate of Real EstateReceivables
R$100,000,000Promissory Notes (ICVM 476)
R$67,000,000Promissory Notes (ICVM 476)
Exclusive Advisor Exclusive Advisor Coordinator Coordinator Coordinator
11/34Investor Relations | 2Q12 |
March, 2012 May, 2012 May, 2012 May, 2012 June, 20121Source: Anbima
DistributionInvestment alternatives in local and foreign currency to domestic and foreign investors.
Actions Funding
Responsible for serving investors, offering traditionalinvestments and also alternatives tied to the creditorigination platform capital markets and asset 5 902
6,933+50%
+17%
R$ Millions
origination platform, capital markets, and assetmanagement.
It counts on PINE’s expertise in structuring andintermediating fixed income transactions.
986
1,152
1,736
4,622
5,902 International
g
Divided by type of investors to provide tailor madesolutions.
3,636 4,750 5,197 Local
Family Offices
Market SegmentsInvestors
Jun-10 Jun-11 Jun-12
Local CurrencyT diti l i t t (l l d it h CDB/RDB/CDI
Individuals
Corporates
Asset Managers
Traditional investments (local deposits such as CDB/RDB/CDI,LCA/LCI)Senior and subordinated local notesDebt Capital Markets (CCBs, Debentures, FIDCs, CRIs, CRAs,CDCAs, among others)
Financial Institutions
Pension Funds
Foreign InvestorsForeign Currency
Time Deposits and CD – Certificate of DepositSenior and Subordinated bonds issued by PINE
12/34Investor Relations | 2Q12 |
Senior and Subordinated bonds issued by PINEDebt Capital Markets (CCB, Credit Fund, Bonds) – through CreditLinked Notes
PillarsStrategy supported by solid fundamentals, built and achieved over the years…
Strong and motivated teamAdequate capital structure
MeritocracyRight incentivesHighly qualified team
Capital Adequacy Ratio (BIS) of 15.9%Regulatory Capital: R$1.3 billionCapital increase announced and closer partnerships with DEG and Proparco will raise BIS to 17 5%with DEG and Proparco will raise BIS to 17.5%
Corporate clients
Strong relationship
Efficient funding structure
Longer average maturities: 16 months (Jun/12)g pCustomized serviceIn-depth knowledge of client needsProduct diversity
g g ( )Greater diversification of funding sourcesUSD25 million 10 year funding with ProparcoUSD106 million A/B Loan (Jan/11) with the IIC
13/34Investor Relations | 2Q12 |
Rating Upgrades...with market recognition and positive evaluation by rating agencies.
On December 7th, 2011:PINE’s rating in global scale, toBB+ from BB- (two notches)
On May 14th, 2012Foreign and Local Currency Long-Term IDR to 'BB' from 'BB'-
On August 23rd, 2012:PINE’s outlook upgraded to Positive
PINE’s rating in national scale, tobrAA from brA (three notches)
On August 23rd, 2011:Local currency rating, to brA from
National Long-Term Rating to'A+(bra)' from 'A(bra)'Viability rating upgraded to 'bb'from 'bb-'Banco Pine S.A. USD 125 millionLocal currency rating, to brA from
brA-Reaffirmed the Rating in foreigncurrency in BB-Revision from PINE’s outlook topositive
Subordinated notes to 'B+' from 'B'
positive
Fitch attributed this upgrade to thediversification of PINE's funding profile and itsgood assets and liabilities management,provided by the adequate match of the creditand funding books In addition the Agency
The agency based its ratings on the strongasset-quality, adequate liquidity, capital, andearnings. S&P also emphasizes the gradualfunding diversification, through foreignissuances securitizations and the recent
Moody's explained that the positive outlookreflects PINE’s profitability through a well-executed strategy, and which has ensuredearnings recurrence. The rating action alsocaptures the bank's improved fundingand funding books. In addition, the Agency
considered that the positive liquidity gapallied with the good cash position evidencesthe Bank's overall solid financial strength.According to the Agency, the Bank’s continuedincrease in fee income, mainly due to higher
issuances, securitizations, and the recentcapital increase subscribed by DEG.
captures the bank s improved fundingdiversification, well managed asset qualitymetrics and its good liquidity and capitalmanagement.
14/34Investor Relations | 2Q12 |
product penetration, is a good indicator of thesuccessful maintenance of profitability levels.
Highlights and Results
2Q12 Events and Highlights
Capital increase of approximately R$155 0 million The increase will take place starting with theCapital increase of approximately R$155.0 million. The increase will take place starting with theexecution, on this date, of a subscription agreement with DEG in the amount of R$30.0 million coupledwith an investment of R$93.7 million by the controlling shareholder and R$7.2 million by PINE’smanagement. In addition, the French agency Proparco approved the principle of an investmentamounting up to €10 million. These transactions will increase the BIS Ratio to 17.5%, an improvement of
i t l 160 b All t ti bj t t l t l d th d tapproximately 160 bps. All transactions are subject to regulatory approvals and other precedentconditions as announced in the Material Fact released today.
In April, PINE carried out its first offering of financial bills known as Letras Financeiras, issuing R$313.2million in two-year notes.
Highly liquid balance sheet with a strong cash position of R$1.4 billion, which corresponds to 38% of timedeposits.p
Positive liquid gap between the credit and funding portfolios of 3 months: 13 months for credit and 16months for funding. PINE has maintained this positive gap for over 2 years.
Positive contributions from all business lines in the quarter: 58.4% from Corporate Credit, 19.8% fromFICC, 11.5% from the Treasury, and PINE Investimentos contributed 10.3%, demonstrating recurrence in itsresults.
Ranked amongst the 15 largest banks in the Cetip derivatives ranking and 1st in terms of OTC commoditiesNDF for clients.
16/34Investor Relations | 2Q12 |
9th largest bank in Brazil offering credit to large corporates, 15th in credit to companies, and 5th in wealth generated per employee, according to the “Melhores e Maiores” ranking compiled by Exame magazine.
Capital IncreasePINE is honored with DEG’s trust and partnership with the announcement of another transaction and welcomes Proparco.welcomes Proparco.
The second equity investment by DEG in a Brazilian financial institution, both with PINE, and the first by Proparco in aLatin America financial institution.
Summary
In addition to the subscription made by DEG, of R$30.0 million, and by Proparco, of R$25.0 million, the capital increasealso includes the participation of the controlling shareholder and the senior management, for a total of R$100.8million.
Total of ~R$155 million
Premium on Shares: 15% over the average price of the last 60 days
Total Shares: 6,558,123 common shares and 4,352,590 preferred shares
BIS Ratio: to 17 5% 14 5% for Tier I and 3 0% for Tier II
The aforementioned transactions further strengthen the capital structure of PINE as well as the relationships with DEGand Proparco, and will allow the Bank to continue to expand its activities in a sustainable manner.
After approval by the Brazilian Central Bank the ownership structure will have the following composition:
BIS Ratio: to 17.5%, 14.5% for Tier I and 3.0% for Tier II
After approval by the Brazilian Central Bank, the ownership structure will have the following composition:
With Capital increase Common Preferred Total %Controlling Shareholder 58,444,889 15,595,863 74,040,752 67.5%Management - 5,591,947 5,591,947 5.1%Free Float - 30 005 788 30 005 788 27 3%Free Float - 30,005,788 30,005,788 27.3%
DEG - 5,005,068 5,005,068 4.6%Proparco - 1,750,700 1,750,700 1.6%Individuals - 3,382,393 3,382,393 3.1%Local Institutional Investors - 11,054,997 11,054,997 10.1%F i I t 8 812 630 8 812 630 8 0%
17/34Investor Relations | 2Q12 |
Foreign Investors - 8,812,630 8,812,630 8.0%Treasury - 125,000 125,000 0.1%Total 58,444,889 51,318,598 109,763,487 100%
2Q12 Financial HighlightsThe main performance indicators continued to show positive development in the period…
R$ Millions
Loan Portfolio¹
18.6%
Total Funding
17.5%
Shareholders’ Equity
17.9%
6,305 7,478 5,902 6,933 893 1,053 , ,
Jun 11 12
, ,
Jun 11 Jun 12Jun JunJun -11 -12Jun -11 -12 Jun -11 Jun -12
Net Income
Jun JunJun -11 -12
ROAE
140 bps
Credit Coverage
27.8%140 bps
130 bps
36 46 17.3% 18.7%2.7% 4.0%
18/34Investor Relations | 2Q12 |
2Q11 2Q12 2Q11 2Q12Jun-11 Jun-12¹ Includes debentures, CRIs, eurobonds and hedge fund shares
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
2.9
More than 1 product 1 product
2.860%44% 38%
2.6
40%56% 62%
Revenue MixJun-10 Jun-11 Jun -12
1H11 1H12
Jun-10 Jun-11 Jun-12
CorporateCredit63 5%
PINE Investimentos
5.5%
PINE Investimentos
10.3%
63.5%Treasury
3.3%
CorporateCredit58.4%
Treasury11.5%
19/34Investor Relations | 2Q12 |
FICC
27.7%
FICC
19.8%
Loan Portfolio1
The portfolio continued to grow, +2.4% QoQ and +18.6% YoY…R$ millions
T d fi6,732 6,935
7,300 7,478
1 684 1 599 533 622
772
756 782
1,021 1,154 Trade finance
Guarantes5,277
5,760 5,8236,305
,
881 883 883 821 827
1,022 1,117 1,372
1,534 1,687 1,684 1,599
704
555
533 622 Guarantes
Onlending BNDES
4,811
-
- -71 122
251 297 342 572
472
644 846 881 912
881 883 842
Onlending BNDES
Private Securities
2,792 3,251 3,358 3,132 3,126 3,300 3,286 3,370 3,332
Private Securities
Working Capital
Jun-10 Set-10 Dez-10 Mar-11 Jun-11 Set-11 Dez-11 Mar-12 Jun-12
Working Capital
20/34Investor Relations | 2Q12 |
¹ Includes debentures, CRIs, eurobonds and hedge fund shares
Loan Portfolio Profile... in a diversified manner...
Loan Portfolio by Industry Segments Geographic Distribution
Midwest11%
North1 %
Sugar and Ethanol; 19%
Financial Institutions; 2%
Meatpacking; 2%
Telecom2%
Others; 9%
Northeast7%
ConstructionMetal and Mining; 3%
Food Industry; 3%
Chemicals; 3%
Institutions; 2%
Southeast73%
South8%
Construction10%
Electric and S i li d S i
Vehicles and Parts; 4%
Beverages and Tobacco; 4%
g
Renewable Energy; 9%
Agriculture; 9%
Infrastructure; 7%Foreign Trade; 5%
Transportation and Logistics; 5%
Specialized Services; 4%
21/34Investor Relations | 2Q12 |
Loan Portfolio Quality... with quality, collaterals, and adequate credit coverage.
Loan Portfolio Quality Non Performing Loans > 90 days
0.7% 0.7%Contracts Overdue
Installments Overdue
B36.9%
June 30th, 2012
0.5% 0.5%
0.6%
0 3% 0 3% 0 3%C
0.2%
0.3% 0.3%
0.2%
0.3%10.9%
D-E1.8%
F-H
Credit Coverage Collaterals
Jun-11 Sept-11 Dec-11 Mar-12 Jun-12
AA-A48.1%
2.3%
Products Pledge
46%Guarantees2%
+40 bps
+130 bps
Investments3%
2.7%3.6% 4.0%
22/34Investor Relations | 2Q12 |
Receivables26%
Properties Pledge
23%Jun -11 Mar-12 Jun-12
FundingDiverse sources of funding…
R$ millions
Trade Finance
234 250 118 596
814 753
841 1,089
Private Placements
Multilateral Lines
5 4375,902
6,2486,544 6,421
6,933
829 898 867 867 868 813 -21
33 247 256 281 291 553
194 194
185
205 237 246 233 295
227
200 160
282
267 310 353 276
234
151
166 158
155
84 86 250 125
118
405
413 377 435
596 International Capital Markets
Local Capital Markets
5,4375,182
4,622
5,322
1 463 1 530 1 114 1,287 1,253 1,196 1,186 1,228 175
198 214 218
212 228 250 281 223
201 224 320
272 210 165 106 161 194
36 46 42
41 53 66 112 31 33
453
626 829
867 898 867
-203 227 BNDES
Demand Deposits
b k i D i
1,646 1,654 1,592 1,720 1,845 1,965 2,130 2,128 2,153
1,124 1,463 1,530 1,114
,Interbank Time Deposits
High Net Worth Individual Time Deposits
Corporate Time Deposits, , 1,592
Jun-10 Sept-10 xDec-10 Mar-11 Jun-11 Sept-11 xDec-11 Mar-12 Jun-12
Corporate Time Deposits
Institutional Time Deposits
23/34Investor Relations | 2Q12 |
Asset & Liability Management... presenting a positive gap of 3 months between the credit and funding portfolios.
Matching of Transactions
CREDIT FUNDING 82% 80%76%
81%76%
Loan / Total Funding
BNDES BNDES
Trade Finance Trade Finance
Deposits
Working Capital, PrivateSecurities1 And Cash
Local & International Capital Markets
Private Placements/ Multilateral
6,4215,902 6,933ALM Deposits vs. Total Funding
/Lines
1 Includes debentures, CRIs, eurobonds, and hedge fund shares
R$ Millions
Jun-11 Sept-11 Dec-11 Mar-12 Jun-12
R$ Millions
39% 41% 45%
Others
,3,124
1,921 1,642 1,590
2,344
1,775
Credit Funding
61% 59% 55%
TotalDeposits
-
402 94 33
1,590
1,056
135
24/34Investor Relations | 2Q12 |
Jun-11 Mar-12 Jun-12
No maturity Up to 3 months
(includes Cash)
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 15.9%.
Tier II Tier IMinimum Capital Requirement (11%)
3.9% 3.6%3 6%
4.5%4.2%
18.5% 18.4%17.4% 17.1%
18.5%19.6%
16.4% 15.9% 17.5%16.6%3.6% 3.7% 3.4%
4.2%3.1% 3.3% 3.0%
14.6% 14.8% 13.8% 13.4% 13.2% 15.1% 14.3% 13.3% 12.6% 14.5%
Jun -10 Sept-10 Dec -10 Mar-11 Jun -11 Sept-11 Dec -11 Mar-12 Jun -12 With Capital
Increase
R$ million BIS Ratio (%)
Tier I 1,055 12.6%
Tier II 277 3.3%
Total 1,331 15.9%
25/34Investor Relations | 2Q12 |
Total 1,331 15.9%
Guidance for 2012PINE is ready to continue growing with its clients, and reaffirms its guidance for 2012.
Guidance
Expanded Corporate Credit Portfolio 17% - 22%
P l d Ad i i i 8% 2%Personnel and Administrative Expenses 8% - 12%
NIM 5.5% - 7.5%
ROAE 17% - 20%
26/34Investor Relations | 2Q12 |
Corporate Governance and PINE4
Management StructureNon-bureaucratic, entrepreneurial, and meritocratic culture with a flat hierarchy, speeding the decision making process.making process.
Noberto Pinheiro Noberto Pinheiro Jr Maurizio Mauro Gustavo Junqueira Mailson da Nóbrega Antonio Hermann
BOARD
INTERNAL AUDIT COMPENSATION AUDIT COMMITTEEEXTERNAL AUDIT
Noberto Pinheiro Noberto Pinheiro Jr Maurizio Mauro Gustavo Junqueira Mailson da Nóbrega Antonio Hermann
Chairman Vice Chairman IndependentMember
External Member IndependentMember
IndependentMember
CEONoberto Pinheiro Jr
Tikara Yoneya COMMITTEE AUDIT COMMITTEEPWC
HUMAN RESOURCESSidney Vilhena
COO Norberto Zaiet
CROGabriela Chiste
CAOUlisses Alcantarilla
CFOSusana Waldeck
OriginationInvestment BankingSales & Trading
Asset & Liabilities Back OfficeLegal
ControllingAccountingTax Planning
Credit and F.I. ResearchCompliance & InternalControlsg
Research Macro / CommoditiesInternational
Collaterals ManagementSpecial SituationsMiddle Office
gITAccounts PayableOffice ManagementMarketingInvestor Relations
Market and Liquidity Risks
28/34Investor Relations | 2Q12 |
Corporate GovernancePINE commits to best corporate governance practices…
Three independent members and one external member on the Board of DirectorsThree 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 AbrilAntonio Hermann: Former CEO of Banco Itamarati, Director at FEBRABAN and elected Director ofBrazilian Banking AssociationBrazilian Banking AssociationGustavo 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 GovernanceSão 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 shares100% 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 quarterlyFirst Brazilian bank to release BR GAAP and IFRS quarterly
29/34Investor Relations | 2Q12 |
Committees…favoring collective decision making.
Main decisions are taken by committees: Board of Directors and a structure of specific committeesNon-stop exchange of knowledge, ideas, and informationTransparencyp y
45 days BOARD OF DIRECTORS
RISK COMMITTEE
AUDIT COMMITTEE
COMPENSATION COMMITTEE
CEO
Bi-annually Monthly45 days
COMMITTEES
Twice a week WeeklyMonthly Bi-monthly Every 2 monthsWeekly Monthly Quarterly On demand45 days
CREDITTREASURY
COMMITTEE ALCO
EXECUTIVE LITIGATIONHUMAN
RESOURCESINVESTMENT
BANKPERFORMANCE EVALUATION IT ETHICS
INTERNAL CONTROLS AND
COMPLIANCE
30/34Investor Relations | 2Q12 |
Dividends and Interest on Own CapitalPINE has delivered an attractive dividend yield paying dividends/interest on own capital on a quarterly basis.basis.
55
45
40
55
40
25 25
33 30
35
40
35
40
16
25 25
1H07 2H07 1H08 2H08 1H09 2H09 1H10 2H10 1H11 2H11 1H121H07 2H07 1H08 2H08 1H09 2H09 1H10 2H10 1H11 2H11 1H12
31/34Investor Relations | 2Q12 |
Appendix
Social Investment and ResponsibilityPINE supports and promotes the Brazilian culture and sports
Social
Instituto Alfabetização Solidária
CulturePaulo von Poser: exhibit of the painter Paulovon Poser, who is one of Brazil’s most prominentartists
Instituto Casa da Providência Quebrando o Tabu: documentary based on theanalysis from the former President of Brazil,Fernando Henrique Cardoso, on the fight againstdrugsAlém da Estrada: motion picture, whichreceived the award for best director in the 2010
SportsMinas Tênis Clube: training program forathletes
received the award for best director in the 2010Rio Festival
Responsible Credit
“Li f E i ” h B k d fi
Most Green Bank
“Lists of Exceptions”: the Bank does not financeprojects or those organizations that damage theenvironment, are involved in illegal laborpractices or produce, sell or use products,substances or activities considered prejudicial tosociety.y
System of environmental monitoring, financed bythe IADB and coordinated by FGV, and internally-produced sustainability reports for corporateloans.
Recognized by the International Finance Corporation(IFC), private agency programs of the World Bank as themost "green" bank as a result of its transactions underthe Global Trade Finance Program (GTFP) and its on
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the Global Trade Finance Program (GTFP) and its onlending to companies focused on renewable energy andethanol.
Investor Relations
Noberto Pinheiro Jr.
CEOCEO
Susana Waldeck Norberto Zaiet Jr.
CFO COO
Raquel Varela
Head of Investor Relations
Alejandra Hidalgo
Investor Relations Manager
Phone: +55-11-3372-5343
ir.pine.com.br
ir@pine.com.br
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This presentation contains forward-looking statements related to business prospects, estimates for operating and financial results, and estimates related to prospects for growth at Banco Pine. These aremerely projections and as such are based exclusively on the expectations of Banco Pine’s management concerning the future of the business and its continued access to capital to fund the Company’sbusiness plan. Such forward-looking statements depend, substantially, on changes in market conditions, government regulations, competitive pressures, and the performance of the Brazilian economy andthe industry, among other factors and risks disclosed in Banco Pine’s filed disclosure documents, and are, therefore, subject to change without prior notice.
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