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btg_conf2011_BANCO_PINE - PowerPoint


									                XII Annual CEO

3Q10 Presentation
PINE at a Glance
PINE excels at providing corporate banking and risk management services to mid and large
              PINE is an agile service-oriented bank that thoroughly
                                                                                                                              Solid Credit Ratings
              understands the needs and strategies of its clients,
              offering a broad range of financial instruments and risk                             International Rating Companies Brazil national scale
              management tools in local and foreign currency
                                                                                                                                    Ba2     Long term foreign and
              Positive contribution of all business lines: Corporate                                                                        local-currency deposit
              Credit, Sales & Distribution and PINE Investimentos
                                                                                                                                    Br A-   Brazil national scale
              Cross-sell - More than 80% of the client base is served by                                                            BB-     Long term foreign and
              more than one financial product offered                                                                                       local-currency deposit

              Strong management team                                                                                                A(bra) Brazil national scale
                                                                                                                                    BB-     Long term foreign and
              PINE is one of the 15 largest banks in the country in                                                                         local-currency deposit
              Corporate credit*

              PINE was considered the Best Commercial Bank in Brazil
              by 2010 World Finance Banking Awards

                                     Client Base Profile                                                  Credit Portfolio by Clients’ Annual Revenues
                                                                                                   As of September 30, 2010
              PINE’s clients are among market leaders in their

              PINE’s clients have experienced strong growth in the last
              few years

              PINE targets the Upper Middle and Low                                    Corporate

* According to the 2010 edition of “Best and Biggest” (Melhores e Maiores), from Exame magazine

PINE has been showing a track record of resilient development

              1939                1975                 1997                  2005              2007          ….
           Foundation of     Noberto Pinheiro    Foundation of Banco     Noberto Pinheiro       IPO    Consolidation of
          Banco Central do    becomes one of            PINE           becomes Banco PINE’s           PINE’s strategy of
             Nordeste        BMC’s controlling      Sole focus on        sole shareholder             corporate banking
                                shareholder       Corporate Lending

          1939 – Pinheiro Family founds its first bank in Brazil – Banco Central do Nordeste

          1975 - Noberto Pinheiro becomes one of the controlling shareholders of Banco BMC

          1997 - Noberto and Nelson Pinheiro sell their stake at BMC and found Banco PINE

          2005 - Noberto Pinheiro becomes Banco PINE’s sole shareholder

          2007 – IPO

Corporate Governance
PINE adopts the best corporate governance practices with a flat organizational structure
            Two independent members and one external member in the Board of Directors
                   Mailson Ferreira da Nóbrega: Brazil’s Finance Minister from 1988 to 1990
                   Maurizio Mauro: Ex-CEO of Booz Allen Hamilton and Grupo Abril
                    Fernando Albino de Oliveira: CVM’s ex-director and partner of Albino Advogados Associados
            São Paulo Stock Exchange Level 1 of Corporate Governance
            100% tag along rights for all shareholders, including non-voting shares
            Arbitration procedures for fast settlement of litigation

                                                                                        Board of Directors
                        Noberto Pinheiro               Noberto N. Pinheiro Jr.          Maurizio Mauro                 Fernando Albino                 Mailson da Nóbrega
                           Chairman                       Vice-Chairman              Independent Member                External Member                Independent Member

                                                                    Internal Auditors                    External Auditors
                                                                      Tikara Yoneya                          Deloitte                                        Fiscal Council
                                                                                                                                                             Sidney Veneziani
                                                                                             CEO                                                              Sérgio Machado
                                                                                    Noberto N. Pinheiro Jr.                                                   Alcindo Itikawa

                                                                                                             Operational Risk
                                                                                                              & Compliance

         Origination                  Sales & Distribution              Pine Investimentos               Operations             Credit Risk & Analysis              Planning and Control
        Clive Bo telho                 Norberto Zaiet Jr.               Gustavo Junqueira            Ulisses Alcantarilla          Gabriela Chiste                     Susana Waldeck

   Corporate Credit                  Trading                            Debt Capital                   Processing and               Corporate Credit                Market and
   •   Loan Portfolio                Sales & Distribution               Markets                        Formalization                •   Analysis and granting       Liquidity Risk
       R$5.3 billion                 (Funding & DCM)                    Structuring                                                     of credit
                                                                                                       Legal                                                        Human Resources
   •   Around 900 Clients            •   Local                                                                                      •   Credit risk monitoring
                                                                        Asset Management                                                                            Accounting
   •   São Paulo                     •   International                                                                                  and analysis by
   •   Campinas                      Risk Management                    Advisory                                                        sector
   •   Ribeirão Preto                •   FX
   •   São José do Rio Preto
                                     •   Rates
   •   Rio de Janeiro                •   Commodities
   •   Curitiba                      •   Equities
   •   Porto Alegre
   •   Belo Horizonte
   •   Recife                        Products
   •   Fortaleza                     Investor Relations
Strong Management
Correctly incentivized and experienced management. Senior officers have an average of 20 years of
experience in financial institutions in Brazil
                      Senior management profiles                                              Best practices

  Position                      Experience in the Industry                Incentives

  Noberto Pinheiro Jr.          12 years of experience in several
  CEO                           financial institutions. Acted as PINE’s       Meritocracy
                                CFO & IRO and previously as COO

  Norberto Zaiet Jr.            15 years of experience in strategic
  Executive Officer             positions in Treasury, Global Emerging        100% eligible for a profit sharing
  IR and Sales & Distribution   Markets and Financial Products

  Clive Botelho                 25 years of experience in strategic           Compensation based on semi-annual            performance
  Executive Officer             positions in Treasury, Capital Markets,
  Origination                   Financial Products and Origination

  Ulisses Alcantarilla          30 years of experience in operations,
  Executive Officer             with PINE since it’s foundation               Long term incentive         plan     based    on   stock
  Corporate Operations                                                        appreciation
  Susana Waldeck                19 years of experience in planning,
  Executive Officer             control and risk management, with
  Planning and Control          PINE since it’s foundation                    Management owns 3.2% of the banks equity

  Gabriela Redona Chiste        15 years of experience in Credit
  Executive Officer             Research and Analysis
  Credit Research & Analysis

  Gustavo Diniz Junqueira       15 years of experience in Corporate
  Executive Officer             Finance, Treasury and M&A
  Pine Investimentos

Brazilian Competitive Landscape
Financial sector concentration reduced the offer of credit and financial instruments to PINE’s target
client segment

                                                                  Focus on the upper middle and low corporate
                                   Large Mutiple
                                                                  Consolidation in the banking sector caused
                                                                  reduction in the availability of credit lines and
                                                                  financial instruments to the bank’s segment

                         Corporate sector mid-size banks
                        Opportunity to expand operations          Unique approach: offering diversity of products to
                                                                  a market segment poorly serviced by the banking
        IB and           PINE: focused on complete service to
       Foreign         companies, offering tailor-made products
        Banks                with transparency and agility.       PINE is the generally the client’s first call for
                                                                  structured solutions
                                                                     Fast response
                                                                     Dedicated team of specialists with deep
                                                                         knowledge of the clients business, balance
                                                                         sheet and market positioning
                                                                     Tailor-made solutions based on a diverse
                                                                         product base
                                  Mid-sized banks                    Relative importance of PINE to the client is
                                                                         larger than its balance sheet usage

                                                                  PINE is the client’s banker of choice

Diverse financial instruments for the diverse needs of our clients

          Corporate Credit                     Sales & Distribution              PINE Investimentos
   Credit products in local and          Risk Management                    Capital Markets
   foreign currency                           NDFs, Options, Swaps,              Syndicated Loans
        Loans                                 Structured Options:                FI Underwriting
        Overdraft accounts                           Currencies
        Discounts                                    Commodities            Asset Management
        BNDES onlending                              Rates                       Fixed Income / Credit
        Guarantees                            FX
        Compror/Vendor                                                      Advisory
        ACC/ACE                          Investment products in local            Mergers & Acquisitions
        Pre-payment                      and foreign currency                    Restructuring
        Finimp                                Local deposits                     Private Placements
        Letter of Credit                      Double index CDB
        2,770 onlending                       LCA /LCI
        Syndicated Loans                      BNDES lines
                                              Senior and subordinated
                                              local notes
                                              Time Deposits
                                              CD – Certificate of Deposit
                                              Subordinated notes
                                              2,770 lines
                                              Multilateral lines
                                              DCM (CCB, Credit Funds,

Well-diversified Loan Portfolio
Presence in the most attractive sectors and regions of the country

                 Credit portfolio by industry                                         Credit portfolio by product

                 Credit portfolio by region                                                 Local presence

                                                                                                       Pernambuco 2%     Total: 71%
                                                                                                                       Ceará 2%

                                                                                                                          Minas Gerais 9%

                                                                                                                          Rio de Janeiro 11%
                                                          Participation in Brazil’s
                                                          GDP by state (%)

                                                                                                                          São Paulo 34%
                                                          Source: IBGE (Brazilian
                                                          Institute of Geography and
                                                          Statistics)                                                     Paraná 6%

                                                                                                                          Rio Grande do Sul 7%

Loan Portfolio Growth
9.8% growth in 3Q10 and 54.1% over the last 12 months

                                                     Corporate loan portfolio
                         (R$ Million)

                                                        Portfolio maturities
                         As of September 30, 2010 (R$ Million)

Credit Process
Substantial analysis and experience on responding with agility to clients

                                                                                                                              6 Members
        Strong origination team                                                                                               Centralized and
                                                                                                   CREDIT COMMITTEE
                                                                                                                              unanimous decision
                                                                                                                              making process
        Deep knowledge of our client base

                                                                Proprietary System Based Process
        Cross-selling of corporate banking products and                                                                   Presentation to the
                                                                                                   Chief Credit Officer
        risk management tools                                                                                             Credit Committee
                                                                                                   and Credit Analysts

        Diligent and complete credit analysis

        Expertise and flexibility in credit structuring                                             Regional Heads of
                                                                                                     Origination and      Discussion around sizing,
                                                                                                                          collateral, structure,
                                                                                                     Credit Analysis      tendency etc.
        Close monitoring of clients’ financial performance
                                                                                                                          Credit analysis, visit to
        Agile credit decision-making process                                                                              clients, data update,
                                                                                                     Credit Analysts      interaction with
                                                                                                                          internal research and
        Management of collateral quality and performance                                                                  structuring and issue of
                                                                                                                          a credit view

        Efficient   loan   process,    documentation      and
        controls                                                                                   Origination Officers   Credit origination

Increasingly Diversified Funding Sources
Comfortable funding situation

                                                        Total Deposits
             Foreign Funding – Multilateral Agencies

                           AB Loan   (January, 2011)
         Coodinator                      Co-Leaders

                                         Book Runners
                      US$106.0 Million

Risk Management
Expertise acquired over the years qualifies the Bank to quickly respond to market conditions

                             Portfolio Breakdown                                                       Business
  As of September 30, 2010                                            DERIVATIVE SEGMENTS
  (R$ Thousand)
                                                                           Currency: Dollar, Euro, Yen, Pound, Canadian Dollar,
                                                                           Australian Dollar
                                                                           Commodities: Sugar, Soybean (Grain, Meal and Oil), Corn,
                                                                           Cotton, Metals, Energy
                                                                            Rates: Fixed, Floating, Inflation, Libor
                                                                            FX spot

                                                                      EXPECTED TRENDS
                                                                           Increased participation of Commodities hedging in the total
                                                                            Continued high velocity and turnover of the portfolio
                                                                            (average tenor of transactions under 6 months)
                                                                            Increased usage of risk mitigation tools such as initial marg in
                                                                            and threshold.

                                  Purpose                                                  Derivatives Market Share
                                                                   Source: 3Q10 Financials Statements (Notional)
        To bring predictability to clients’ balance sheet

        Executed with clients that have an ongoing credit
        relationship with Banco PINE, rated between AA and C

        High velocity and turnover of the portfolio: duration of
        120 days as of September 30, 2010

        8 professionals assigned to the desk, dedicated to serve
        clients on their daily needs

                                                                        * Peer Group: ABC, Indusval, Sofisa, Daycoval and Paraná

 Efficient Risk Management
 Permanent monitoring of the loan portfolio and balance sheet

                      Asset quality*             Guarantees*

(*) As of September 30, 2010
3Q10 Highlights
All main indicators showed consistent performance in 12 months

Capital Adequacy Ratio (BIS)
BIS ratio at a comfortable levels

                                     Public Offering
                                     February / 2010
                                    Subordinated Notes
                                     Joint Bookrunners

                                     US$125 Million

The Current Scenario and Future Prospects
PINE has the key resources to continue developing its strategy: adequate capitalization, efficient
funding and strong management

               Adequate capital structure                          Efficient funding structure
                Issuance of a US$125 million                      Lengthening of maturities: 18
            subordinated debt, approved by the                   months average (September/2010)
           Brazilian Central Bank as Tier II capital
                                                                      Greater diversification
                           in June
                Still room for Tier II capital
           Capital Adequacy Ratio (BIS) of 18.4%

                     Corporate clients                            Strong and motivated team
              Customized service, thoroughly
              understanding the clients’ needs
            Product diversity built over the years
                                                                            Incentives
       More than 80% of the client base is served by
                 more than one product
           Macro is driving corporate investment

Banco PINE pays dividends/interest on own capital on a quarterly-basis

                                       Dividends and Interest on Own Capital

Shareholders’ Structure
25% of free float

   As of February 2, 2011

Shareholders’ Structure
Change in the shareholders’ profile




Performance of PINE4 in 2010

Key Performance Indicators

Income Statements Highlights
Operating Income grew 20.7% in 3Q10

                                      R$ Thousand

Balance Sheet Highlights
Total assets posted a 14.5% increase in the quarter

                                                      R$ Million

                                                                        Investor Relations
                                                                         Phone: +55-11-3372-5553 / 5552

This presentation contains forward-looking statements relating to the prospects of the business, estimates for operating and financial results, and those related to growth prospects of Banco Pine. These are
merely 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’s
business plan. Such forward-looking statements depend, substantially, on changes in market conditions, government regulations, competitive pressures, the performance of the Brazilian economy and the
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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