Emissão no Chile - Prospectiva (versão em inglês)

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Disclaimer

La Superintendencia de Valores y Seguros no se pronuncia sobre la calidad de los valores ofrecidos como inversión.

La información contenida en este documento es de responsabilidad exclusiva del emisor y del o los intermediarios que

han participado en su elaboración. El inversionista deberá evaluar la conveniencia de la adquisición de estos valores,

teniendo presente que él o los únicos responsables del pago de los documentos son el emisor y quiénes resulten

obligados a ello. La circunstancia que la superintendencia de valores y seguros haya registrado la emisión no significa

que garantice su pago o la solvencia del emisor

La información contenida en este documento es una síntesis del prospecto, y la información íntegra que el Emisor

proporciona al mercado acerca de la respectiva emisión está disponible en el prospectoproporciona al mercado acerca de la respectiva emisión, está disponible en el prospecto


Management presenters

Norberto Zaiet

Chief Operations Officer

Mr. Norberto Zaiet holds a bachelor's degree in Engineering and Economics from the Universidade de São Paulo and an MBA from Columbia Business School

Mr. Zaiet served in various financial institutions, as Derivatives Products Director, L ti A i M k t Di t E i M k t Di t d T Gl b lChief Operations Officer Latin America Markets Director, Emerging Markets Director and Treasury, Global Markets and Fixed Income Director

After working for eight years in New York, Mr. Zaiet returned to Brazil to serve as the Chief Financial Officer (CFO) of Pine. Nowadays, Mr. Zaiet is responsible for the Bank’s business areas

Angela Martins

Head of International Division

Mrs. Angela Martins is a Managing Director and Head of PINE’s International Division since 2011

Mrs. Martins holds a Master degree in Business Administration from Instituto Maua d T l iHead of International Division de Tecnologia

With more than 20 years of experience in the industry, Mrs. Martins is a Member of the International entity, Women Corporate Directors, the FEBRABAN International Affairs Committee, the Editorial Board Exporta Magazine and is a reference in Islamic Banking in Latin America, having written the first book to be published in Port g ese on the s bject

Fabiana Ferreira da Silva

International Division Senior Manager

Portuguese on the subject

Mrs. Fabiana Ferreira da Silva is an International Manager of PINE since 2007

Mrs. da Silva has more than 12 years of experience in developing relationships and business in the international markets with focus on Trade Finance and CapitalInternational Division Senior Manager business in the international markets, with focus on Trade Finance and Capital Markets

Mrs. da Silva holds a law degree from Faculdades Metropolitanas Unidas, graduate degree in Tax Law from PUC/SP (Pontificia Universidade Catolica), and a graduate degree in Financial and Capital Markets Taxation and International Investment from Fundação Getúlio Vargas


ç g

Offering summary

Banco Pine S.A.Issuer

Offering Senior unsecured notes

Currency UF

Issuance size UF 1.5 million

Coupon 6.000%

Denominations 3 x 500,000

Tenor 5 years

Amortization Bullet

Use of proceeds General corporate purposes

Interest payment Semi-annual

Local issue ratings A- / A- (Feller / Fitch)

p p p p

Bookrunners


Bookrunners

Agenda

Brazilian macroeconomic highlightsBusiness overview

PINE’s line of business

Funding and capital structure

Appendix: Summary of financials


Brazil macroeconomic overviewImprovements in the Brazilian social economic standards are creating an opportunity for

4 4 4 414%on

credit expansion…

International reserves (% GDP) Unemployment rate (%) Real wage YoY growth (%) 1

2.0

4.4

3.63.9

2.8

4.4

3.0

6%

8%

10%

12%

ical

ly a

ctiv

e po

pula

tio

0.5

2004 2005 2006 2007 2008 2009 2010 20110%

2%

4%

Jan-

04

Aug

-04

Mar

-05

Oct

-05

May

-06

Dec

-06

Jul-0

7

Feb-

08

Sep

-08

Apr

-09

Nov

-09

Jun-

10

Jan-

11

Aug

-11

Mar

-12

Oct

-12% o

f eco

nom

i

Sept

-08

Class A/B Class C Class D/E 28 1

Evolution of social economic classes (% population) 1 Absolute poverty (% population) 1

Source: IBGESource: IBGE

38.1 38.6 37.6 39.741.8 44.9

46.949.2 50.5 53.6 55.153.6 53.1 54.9 52.6 49.9 45.7

43.440.4 38.9

34.4 33.2

C ass / C ass C C ass /

hepo

pula

tion

28.1

22.8

19.3219.3

18.3 16.0of p

opul

atio

n9.9 10.0 9.3 7.9 8.1 6.7 6.1 10.4 10.6 12.0 11.8

33.2

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

In %

of t 15.3 13.7

2004 2005 2006 2007 2008 2009 2010 2011

In %

o

Source: FGV/CPS Source: FGV/CPS


Source: FGV/CPS1 Dec 2011

Source: FGV/CPS

Brazil macroeconomic overview… that has not yet been fully explored

Interest rate (Selic) Inflation (IPCA)

Inflation¹ and interest rate² evolutionReal GDP growth (%)

(%)U S A EU Brazil

13.25

11.25

13.75

8.7510.75 11.00

7.25

Interest rate (Selic) Inflation (IPCA)

2.0%1.8%

2.4%3.0%

0 3% 0 5%

6.1% 5.2%

0 3%

7.6%

2.7%

U.S.A. EU Brazil

5.206.505.915.90

4.503.10

4.31

2006 2007 2008 2009 2010 2011 3Q2012

0.1%1.9%

-0.3%

-3.1%

-0.2%0.2%

-4.4%

1.9% 1.5%0.3% 0.8% 0.5%-0.3%

2007 2008 2009 2010 2011 1Q2012 2Q2012

Inflation ¹ and Interest Rate²Loan / GDP (%) 3

Source: Bloomberg Source: Brazilian Central Bank as of August 31st, 2012

Loans / GDP (%) and Portfolio Evolution (R$ trillion)

28 3% 30 9% 35.2%40.5% 43.7% 45.2% 49.1% 50.6%0.61 0.73 0.94 1.23 1.41 1.71

2.03 2.17

28.3% 30.9%

2005 2006 2007 2008 2009 2010 2011 1H'12 Arg

entin

a

Mex

ico

Turk

ey

Col

ombi

a

Rus

sia

Braz

il

Pol

and

Bul

gary

Indi

a

Chi

le

Sou

th A

fric

a

Thai

land

Ital

y

Japa

n

Mal

aysi

a

Ger

man

y

Fran

ce

Swed

en

Chi

na

New

Zea

land

Por

tuga

l

ited

Kin

gdom

Sou

th K

orea

Spai

n

USA

Loans/GDP (%) Portfolio Evolution (R$ trillion)


Un

Source: Brazilian Central Bank as of August 30, 2012 1 12 month period2 Selic interest rate target – End of period

Source: Brazilian Central Bank, Ecowin3 Dec 2011

Loans/GDP (%) Portfolio Evolution (R$ trillion)

Agenda

Brazilian macroeconomic highlights

Business overviewPINE’s line of business


Appendix


History of PINEBanco PINE has an extensive knowledge of Brazil’s corporate credit cycleBanco PINE has an extensive knowledge of Brazil s corporate credit cycle

1939Pinheiro Family

August, 2012 Subscription of PINE’s capital by DEG, Proparco,

controlling shareholder and management

November, 2012Opening of broker dealer in New York, PINE

Securities USA LLC

867

1,015

1,216 founds

Banco Central do Nordeste

End of 2007Focus on expanding the Corporate Banking franchiseDiscontinuation of the payroll-deductible loan business

October, 2011Subscription of PINE’s capital by DEG

801 827 825

867

1975Noberto Pinheiro

May, 2007Creation of PINE Investimentos product line and

opening of Cayman branch

October, 2007Creation of the Hedging Desk

6,033

7,063 7,444

335

Noberto Pinheiro becomes one of

BMC’s controlling shareholders

Corporate Credit Portfolio (R$ Millions)

opening of Cayman branch

2005Noberto Pinheiro becomes PINE’s sole

shareholder

2,854

4,254 4,804

18 62

121 126 140 136 152 171 209

1997N b t d

Corporate Credit Portfolio (R$ Millions)

Shareholders' Equity (R$ Millions)

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

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

Sept

-12

Noberto and Nelson Pinheiro sell their stake in BMC and found

PINE


Devaluationof the real

Nasdaq Sep. 11 Brazilian Elections

(Lula)

SubprimeAsian Crisis

Russian Crisis

European Community

May, 201215 years

March, 2007IPO

Capital increaseBrazilian Central Bank approved the capital increase announced in August 2012Brazilian Central 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 preferredshares, in the amount of R$45,984,498.84, at a unit price of R$14.28

SSummary

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 left overs subscribed by minority shareholders.

With the approval of the Central Bank, the shareholders’ structure is as follows:

Common 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%

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.

Ownership structure and management structureFlat organizational structure allows PINE to react quickly to market changes

Management structure

Flat organizational structure allows PINE to react quickly to market changes

Ownership structureSeptember 30th, 2012

Treasury0.4%

Noberto Pinheiro Chairman

Noberto N. Pinheiro JuniorVice-Chairman

Maurizio MauroIndependent Director

Mailson da NóbregaIndependent Director

Sep e be 30 , 0BOARD

Free float26.0%

Gustavo JunqueiraExternal Director

Internal AuditorsTikara Yoneya

Internal AuditorsTikara Yoneya

External AuditorsPwC

External AuditorsPwC Audit CommitteeAudit CommitteeCompensation CommitteeCompensation Committee

Controlling shareholder

Management5.5%

CEONoberto N. Pinheiro Junior

CEONoberto N. Pinheiro Junior

Human ResourcesSidney Vilhena

Human ResourcesSidney Vilhenashareholder

68.2%

CROGabriela Chiste

CROGabriela Chiste

COONorberto Zaiet

COONorberto Zaiet

CFOSusana Waldeck

CFOSusana Waldeck

CAOUlisses Alcantarilla

CAOUlisses Alcantarilla

Sidney VilhenaSidney Vilhena

OriginationInvestment BankingSales & TradingResearch Macro / CommoditiesInternational

Asset & Liabilities Back OfficeLegalCollaterals ManagementSpecial SituationMiddle Office

ControllingAccountingTax PlanningITAccounts PayableOffice Management

Credit and F.I. ResearchCompliance & InternalControlsCredit, Market and Liquidity Risks


gMarketingInvestor Relations

3Q12 financial highlightsThe main performance indicators continued to show positive development in the periodThe main performance indicators continued to show positive development in the period…

R$(mm)Total Credit Risk¹ Total Funding Shareholders’ Equity

R$(mm)R$(mm)

6,875 7,4446,248 6,725

9821,216

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

Net Income ROAE Fee IncomeR$(mm)

19.0%2

15

28 38

47 17.3% 17.7%


3Q11 3Q12 3Q11 3Q12 3Q11 3Q121 Includes Letters of credit to be used, Bank Guarantees, Credit Securities to be Received and Private Securities (bonds, DRIs, eurobonds and fund shares)2 Excludes the capital increase of R$139.6 million incorporated into shareholders’ equity

Product and revenue diversification … with contributions from all business lines, fruits of the strategy of complete service to clients

Revenue mix9M11 9M12

Treasury4 9%

PINE Investimentos

3.9%

PINE Investimentos

11 0%

FICC25.3%

4.9%

Treasury11.2%

11.0%

1

Corporate Credit65.9%

25.3%

Corporate Credit60.2%FICC

17.6%1

2 9More than 1 product 1 product

Clients with more than one product Penetration Ratio – clients with more then one product

2.8

2.9

2.8

41% 40% 37%

59% 60% 63%


Sept-10 Sept-11 Sept-12Sept-10 Sept-11 Sept-121 FICC stands for Fixed Income, Commodities and Currencies

Rating upgradesMarket recognition and positive evaluation by rating agenciesMarket recognition and positive evaluation by rating agencies

On December 7th, 2011:PINE’s rating in global scale, to BB+

from BB- (two notches)PINE’ ti i ti l l t b AA

On May 14th, 2012Foreign and Local Currency Long-Term IDR to 'BB' from 'BB'-N ti l L T R ti t

On August 23rd, 2012:PINE’s outlook upgraded to Positive

PINE’s rating in national scale, to brAAfrom brA (three notches)

On August 23rd, 2011:Local currency rating, to brA from brA-

National Long-Term Rating to'A+(bra)' from 'A(bra)'Viability rating upgraded to 'bb' from'bb-'Banco Pine S.A. USD 125 millionSubordinated notes to 'B+' from 'B'Reaffirmed the Rating in foreign

currency in BB-Revision from PINE’s outlook to positive

Subordinated notes to B+ from B

Fitch attributed this upgrade to the diversification

of PINE's funding profile and its good assets and

liabilities management, provided by the adequate

match of the credit and funding books. In

addition, the Agency considered that the positive

li idit lli d ith th d h iti

The agency based its ratings on the strong asset-

quality, adequate liquidity, capital, and earnings.

S&P also emphasizes the gradual funding

di ifi ti th h f i i

Moody's explained that the positive outlook

reflects PINE’s profitability through a well-

executed strategy, and which has ensured

i Th ti ti lliquidity gap allied with the good cash position

evidences the Bank's overall solid financial

strength. According to the Agency, the Bank’s

continued increase in fee income, mainly due to

higher product penetration is a good indicator of

diversification, through foreign issuances,

securitizations, and the recent capital increase

subscribed by DEG.

earnings recurrence. The rating action also

captures the bank's improved funding

diversification, well managed asset quality

metrics and its good liquidity and capital

management


higher product penetration, is a good indicator of

the successful maintenance of profitability levels.

management.

Agenda


Business overview

PINE’s line of businessFunding and capital structure

Appendix


Loan portfolio1

The portfolio has maintained its product distributionThe portfolio has maintained its product distribution…

(R$mm)

Loan portfolio distribution

1 0211,154 942124

100 81

64 47 Retail

6 545

6,8757,063

7,4267,641 7,444

1,534 1,687 1,684 1,599 1,699533 622

772

756 782

1,021 942

336

269 230

190 124

Trade Finance5,613

6,033 6,057

6,545

4 279 325 386 670 783644846 881 912

881 883 883822 800827

1,022 1,1171,372555

Guarantees

Onlending BNDES

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

475 172

279 Onlending BNDES

Private securities

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

Working capital


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

1 Includes Letters of credit to be used, Bank Guarantees, Credit Securities to be Received and Private Securities (bonds, DRIs, eurobonds and fund shares)

Loan portfolio profilein a diversified manner

Loan portfolio by industry segments Geographic distribution

... in a diversified manner…

September 30th, 2012 September 30th, 2012

Midwest12%

North2%

Sugar & Ethanol, 16%

Financial Institutions, 2%

Construction Material, 2%

Others, 9%

Northeast7%

Beverages and Tobacco, 3%

Food Industry, 3%Telecom, 2%

Chemicals, 2%

South8%

Construction, 12%

Eletric and Specialized

Metal and Mining, 4%

Vehicles and Parts, 4%

Southeast71%

Renewable Energy, 10%

Agriculture, 9%Infrastructure, 6%

Transportation and Logistics, 6%

Foreign Trade, 6%

Specialized Services, 4%

g ,


Loan portfolio qualitywith quality collaterals and adequate credit coverage

Loan portfolio quality Non performing loans > 90 days... with quality, collaterals, and adequate credit coverage

September 30th, 2012

D-E F-H0.8%

Contracts overdue Installments overdue

AA-A 43.7%

C 11.7%

D E 2.5% 1.6%

0.5%

0.6%

0.7%

0.6%

0.4%

B 40.5%

0.2% 0.2% 0.2% 0.2%

Credit coverage Collaterals

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

September 30th, 2012

Products pledge47%

Properties pledge22%

Investments3%

Guarantees2%3.7

3.5

2.747%

Receivables26%


26% Sept-11 Jun-12 Sept-12

FICC1

PINE is the 2nd player in commodity derivatives2

4 875

Notional MtM Stressed MtMFixed Income22%

Client notional derivatives portfolio by market Notional and MtMPINE is the 2nd player in commodity derivatives

September 30th, 2012 (R$mm)

3,709 3,712

4,2874,720 4,875

358 354 354

597629

178 157126

256 238

Currencies56%

Commodities22%


Market segment Portfolio profile

Scenario on September 30thFixed Income: Fixed Floating Inflation Libor Scenario on September, 30

Duration: 210 days

Mark-to-Market : R$238 million

Fixed Income: Fixed, Floating, Inflation, Libor

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

Commodities: Sugar Soybean (Grain Meal and Oil) Corn Stress Scenario (Dollar: +31% and Commodities Prices: -30%):

Stressed MtM: R$629 million

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


1 Fixed Income, Commodities and Currencies2 Source: Cetip Report, September 2012

PINE InvestimentosConsolidation of the Investment Banking franchise

Capital Markets: Structuring and Distribution of Fixed

TransactionsConsolidation of the Investment Banking franchise

Income Transactions

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

R$ 90,400,000Debentures



and hybrid capital transactions

Assets under Management: Fixed Income, Credit Funds,

E l i M d t

CoordinatorLead CoordinatorCoordinator

Exclusive Mandates

880(R$mm) (R$mm)

Volume of underwriting transactions Revenues

September, 2012August, 2012July, 2012

52

623

880

1814

242 217


2

3Q11 3Q12 9M11 9M123Q11 3Q12 9M11 9M12

Agenda


Business overview


Funding and capital structureAppendix: Summary of financials


FundingDiversified sources of funding...

6,933

g

Funding distribution(R$mm)

23425012

118180596

814

753841

1,0891,083

5,437 5 322

5,902

6,2486,544 6,421

6,725

Trade finance

Private placements

829 898 867 867 868 813829

2133

247 256281 291 553

561

194

194185

205 237246 233

295260

200

160282

267 310353 276

234156

166158

155

8486

125 180

413377

435

5965,182

5,322Multilateral lines

International capital markets

Local capital markets

1 2531,196 1,186 1,228

1,177

198 214218

212 228 250 281 223213224 320

272210 165 106 161 194

17646 42

4153 66 112 31 33

33626

829

867898 867 829

BNDES

Demand deposits

2 130 2 128 2 153 2 056

1,463 1,530 1,1141,287 1,253 1,177

Interbank time deposits

High net worth individual time deposits

Corporate time deposit

1,654 1,592 1,720 1,845 1,965 2,130 2,128 2,153 2,056


p p

Institutional time deposit


Assets and liabilities management... presenting a positive gap between credit and funding

Matching of transactions

LOAN PORTFOLIO FUNDING

Loans to total funding index

80% 81%

BNDES BNDES

Trade finance Trade finance

80%76% 76% 73%

Deposits

Working Capital, PrivateSecurities1 and Cash Financial Bills

International Funding

ALM Deposits vs. Total funding

1Includes debentures, CRIs, eurobonds and funds shares

(R$mm)(R$mm)


2,947

2,165

1 739

2,155

Loan Portfolio Funding

41% 45% 46%

Total Deposits Others

6,248 6,933 6,725

-

1,363

494

11833

1,739 1,679

957

162

59% 55% 54%


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

Sept-11 Jun-12 Sept-12

Capital adequacy ratio (BIS)BIS ratio reached 17 0%BIS ratio reached 17.0%

Tier II Tier I

Minimum capital requirement (11%)

3.6%%

4.5%4.2%

18.4%17.4% 17.1% 16.6%

19.6%18.5%

16.4%15.9%

17.0%

3.6% 3.7% 3.4% 3.1%3.3%

3.0%

14.8% 13.8% 13.4% 13.2%15.1% 14.3% 13.3% 12.6%

14.0%


R$ million BIS Ratio (%)Tier I 1,210 14.0%

Tier II 256 3.0%

Total 1,466 17.0%


ota , 66 0%

Agenda


Business overview



Appendix: Summary of financials


Financial highlights(R$ million, unless noted) 2009 2010 2011 3Q11 3Q12

Earnings and ReturnsFinancial income 1,008 1,055 1,401 561 265

Financial expenses (712) (711) (1,067) (479) (177)

Gross profit 296 344 333 82 88Gross profit 296 344 333 82 88

Net income 85 118 161 38 47

Annualized financial margin before provisions 7.8% 7.4% 6.4% 6.0% 6.0%

Annualized financial margin after provisions 6.7% 6.1% 5.1% 5.2% 4.7%

Annualized ROAE 10.3% 14.0% 17.2% 17.3% 17.7%

Annualized ROAAw1 1.9% 2.3% 2.6% 2.5% 2.5%

Balance Sheet Total assets 6,984 9,151 11,144 10,173 10,175

T l li bili i 6 1 9 8 283 10 128 9 191 8 9 9Total liabilities 6,159 8,283 10,128 9,191 8,959

Total credit2 4,804 6,033 7,063 6,875 7,444

Risk weighted assets 4,682 5,473 6,914 6,215 7,745

Total deposits3 3,029 3,698 3,794 3,677 3,655

Funding 4 112 5 437 6 544 6 248 6 725Funding 4,112 5,437 6,544 6,248 6,725

Shareholders’ equity 825 867 1,015 982 1,216

Key ratiosNon performing loans – 90 days 0.6% 0.1% 0.3% 0.2% 0.4%

Loan coverage 2.0% 2.5% 3.6% 2.7% 3.5%

BIS ratio 15.6% 17.4% 18.5% 19.6% 17.0%

Efficiency ratio 34.6% 32.4% 37.2% 37.9% 35.7%

Earnings per share (R$)4 1.02 1.41 1.87 0.44 0.43

Book value per share (R$)4 9 90 10 33 11 72 11 34 11 19


Book value per share (R$) 9.90 10.33 11.72 11.34 11.191 Risk weighted assets2 Includes Letters of credit to be used, Bank Guarantees, Credit Securities to be Received and Private Securities (bonds, DRIs, eurobonds and fund shares)3 Includes Agribusiness and Real Estate Letters of Credit4 It considers 108,631,100 stocks for 3Q12 and 9M12, 98,852,774 shares for 2Q12 and 86,577,870 shares for 3Q11

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Emissão no Chile - Prospectiva (versão em inglês)

Economy & Finance

Transcript of Emissão no Chile - Prospectiva (versão em inglês)