PINE
Av. das Nacóes Unidas 8.501/30* andar, Sáo Paulo, SP
BMEaFBOVESPA: PINE4
www.pine.com/ir
PINE
Earnings Release – 2Q14 (BR GAAP)
PINE REGISTERS RECURRING NET INCOME OF R$67 MILLION IN THE 1H14,
REFLECTING MANAGEMENT”S ACTIONS IN LIGHT OF A MACROECONOMIC SCENARIO WITH LOW VISIBILITY
Sáo Paulo, August 11, 2014 – Pine (BMEFBOVESPA: PINE4), a wholesale bank focused on establishing and maintaining long-term relationships
with corporate clients and investors, announces today its consolidated results for the second quarter of 2014 (2Q14), presented in BR GAAP.
1H13 1H14
Treasury
0.4% Tr
Corporate
Credit Corporate
FicC 63.1% Credit
FicC
29.4% 22.0% 68.9%
Pine
Investimentos
Pine 3.0%
Investimentos
7.1%
Positive contributions from all business lines in the semester: 68.9% ETE
from Corporate Credit, 22.0% from FICC, 6.1% from Treasury, and Farnings and Profitability
. – Recurring* Net income (R$ milion) 35 33 39
3.0% from Pine Investimentos.
Net income (RS milion) 35 35 39
. Maintenance of positive liquidity gap over the past years, with 14 Recurring* Annualized ROAE 11.3% 10.7% 12.9%
months for credit versus 16 months for funding. Annualized ROAE 11.6% 11.5% 12.9%
. Liquid balance sheet, with cash position of R$1.4 billion, equivalent Recurring* Annualized ROAAw! 1.5% 1.4% 2.1%
; ; Annualized ROAAw! 1.5% 15% 2.1%
to 35% of time deposits. nualze w
o y o . Recurring* Annualized financial margin before provision 4.0% 4.5% 4.9%
. R$230 million issuance through a Financial Bill, with a two-year Amnualized financial margin before provision 4.1% 4.7% 49%
term, at the end of July. Recurring* Annualized financial margin after provision 3.4% 4.0% 3.3%
= Although many Brazilian banks were downgraded in April, SP Annualized financial margin after provision 3.5% 4.1% 3.3%
reaffirmed Pine’s ratings based on the consistency of its financial
a . . o Balance Sheet (R$ million)
profile “even after incorporating the negative impact of the
Totalassets 10,683 11,046 10,457
, : os a
economic and industrial high risks in Brazil”. Loan portfotio? 10,032 10,090 8,994
. Fitch has also reaffirmed Pine’s ratings, which “reflects the Risk weighted assets 9,337 9417 7,845
satisfactory credit profile of the Bank and its good performance over Deposits? 4,061 4,099 3,581
: . : . . Fundi 8,559 8,797 7,111
the last years amid a deteriorated and relatively volatile operational unens
– Shareholders’ equity 1,270 1,271 1,259
environment”.
= Pine executed another transaction of the Pine-DEG partnership, Credit portfolio quality
totaling US$18 million with a eight-year term, for a company in the Non performing loans – 90 days 0.2% 0.6% 0.6%
Construction Material sector. Credit coverage index 2.4% 2.9% 3.7%
. 11′ largest bank in derivative transactions and the 2″* largest in
Performance
commodity derivatives segment according to CETIP – OTC Clearing BiSratio 13.7% 137% 17.0%
House. Recurring’ Efficiency ratio 37.1% 39.8% – 37.5%
. 13″ largest bank offering credit to large companies, moving up two Efficiency ratio 36.8% 38.90% 37.5%
positions, vis-a-vis 2013, according to the Melhores e Maiores ranking Recurring? Earnings per share (RS) 0.29 0.27 0.35
iled by E . Earnings per share (RS) 0.30 0.29 0.35
compile: xame magazine.
P y £ Book value per share (RS) 10.73 10.50 11.49
Market Cap (RS milion) 890 1,030 1,315
*Risk weighted assets. Includes Standby LC, Bank Guarantees, Credit Securities to be Received and Private Securities (bonds, CRIs, eurobonds and fund shares). *Includes Agribusiness and Real Estate Letters of Credit,
*1t considers 118,372,603 shares for 2Q14, 121,047,768 shares for 1Q14 and 109,546,164 shares for 2Q13. “Reconciliation of results due to funding hedges in the gross amount of R$1.6 million and R$0.93 million net
in 2Q14, and gross amount of R$3.9 million and R$2.3 million net in 1014. Considers the reclassification of FIDC expenses pursuant to Circular Letter n*3,658 from Central Bank.
Investor Relations +55 11 3372-5343 |Raquel Varela
Alejandra Hidalgo
Luiz Maximo
Ana Carolina Lopes
PINE
Business Performance
Pine is a wholesale bank focused on establishing and maintaining long-term relationships with corporate clients and
investors. lts strategy is based on knowing its clients well and understanding their businesses and potential in order to build
customized and alternatives financial solutions. This strategy requires a diverse range of products, highly qualified human
capital and efficient and agile risk management, areas in which the Bank is consistently evolving.
The first half of 2014 was another period of positive revenue contributions in all business lines. The main indicators
presented adequate performance in the period, reflecting the bank’s less aggressive risk appetite and the further
strengthening of its fundamentals.
This approach reflects management’s actions in light of a macroeconomic scenario with low visibility, and temporarily
affects profitability indicators. In the short term, management is taking initiatives to bring more efficiency to the balance
sheet, while keeping the bank prepared for a clearer scenario in the medium and long terms.
Financial Margin
In 2014, recurring income from financial intermediation before provisions for loan losses totaled R$92 million. The recurring
net interest margin (NIM) before provisions stood at 4.0% in the quarter.
The change in recurring financial margin when compared to the previous quarter is mainly due to the increase in average
earning assets, which occurred at the end of the quarter, and also by the mark to market of private securities that compose
the expanded loan portfolio. The mark to market impact is due to the increase in spreads, as a result of the re-pricing of the
credit portfolio.
RS milion
2014 7 2013 A E
Recurring Financial Margin
Income from financial intermediation 9% 109 85 205 188
Overhedge effect 6) 0) 6 (6) 4
Liabilities hedge effect 0) (4) – 6)
Recurring Income from financial intermediation (A) 92 102 91 194 192
Provision for loan losses (14) (12) (29) (26) (42)
Recurring Income from financial intermediation after provision (B) 78 90 61 168 150
Average earning assets (C ) 9,336 9,189 7,438 9,012 7,691
Interbank investments 1,247 1,008 640 907 537
Securities and derivatives’ 1,543 1,727 1,499 1,631 1,893
Credit transactions 6,546 6,454 5,299 6,474 5,261
Recurring Annualized Financial Margin before provision (%) (A/C) 4.0% 4.5% 4.9% 4.4% 5.1%
Recurring Annualized Financial Margin after provision (%) (B/C) 3.4% 4.0% 3.3% 3.8% 3.9%
Financial Margin?
Annualized Financial Margin before provision (%) 4.1% 4.7% 4.9% 4.5% 5.1%
Annualized Financial Margin after provision (%) 3.5% 4.1% 3.3% 3.9% 3.9%
* Excludes repo transactions and the liability portion of derivatives.
2 Considers the impact of PINE17 and Huaso Bond hedge transactions.
Considers the reclassification of FIDC expenses pursuant to Circular Letter n%3,658 from Central Bank.
Fee Income
Fee income reached R$24 million in 2014, growth of 14.3% when compared to 1014. Pine Investimentos revenues increased
marginally, even in a low active capital markets. The bank continues with a robust pipeline of mandates.
RS million
ED EPA 2013 Er! 1H13
Bank 19 19 22 38 42
PINE Investimentos 4 2 8 6 18
Total 24 21 30 44 60
Personnel and Administrative Expenses
PINE
In 2014, the total of personnel and administrative expenses reached R$42 million, 14.3% lower when compared to 1Q14. As
of June 2014, Pine had 437 employees, including the outsourced ones.
yo YES
Personnel expenses 22
Other administrative expenses 20
Subtotal 42
Alo YES
RS milion
2013 ES 1413
22 46 44
21 46 45
43 92 89
Efficiency Ratio
The recurring efficiency ratio ended the 2Q14 at 37.1%, improvement of 270 bps over 1014, in view of rigorous and steady
cost control.
yo YES
Operating expenses! 45
(-) Non-recurring expenses 1
Recurring Operating Expenses (A) 43
Recurring Revenues? (B) 116
Recurring Efficiency Ratio (A/B) 37.1%
1014
53
4
49
123
39.8%
R$ milion
2013 1414 1413
47 97 96
2 5 3
45 92 93
120 238 252
37.5% 38.7% 36.9%
1 Other administrative expenses +tax expenses +personnel expenses
? Gross Income from financial intermediation – provision for loan losses +fee income +overhedge effect – hedge impact
Considers the reclassificatio n of FIDC expenses pursuant to Circular Letter n*3,658 from Central Bank.
Corporate Credit
The expanded loan portfolio totaled R$10,032 million on June 30, 2014, practically stable when compared to March 2014,
and up 11.5% over the last twelve months. The average term of the credit portfolio remained at 14 months in June 2014.
RS million
Jun-14 Mar-14 Jun-13 Q00Q YoY
Working capital! 4,904 5,093 4,284 -3.7% 14.5%
BNDES Onlending 1,071 1,103 844 -2.9% 26.9%
Trade finance ? 1,116 989 1,059 12.8% 5.4%
Bank guarantees 2,941 2,905 2,807 1.2% 4.8%
Expanded Loan Portfolio 10,032 10,090 8,994 -0.6% 11.5%
Includes debentures, CRIs, Hedge Fund Shares, Euro bonds, Credit Portfolio acquired from financial institutions with recourse and Individuals
2 Includes Stand by LC
Loan Portfolio Breakdown
Jun-14 Jun-13
Working ás
Capital Works +
48.9% apta
47.6%
Trade Trade
finance finance
11.1% 11.8%
Onlendings
10 7% S Bank Onlendings
: Guarantees 9.4% Bank
29.3% Guarantees
31.2%
PINE
Active Management of the Loan Portfolio
Pine continued to actively manage the allocation of capital in sectors that offer greater comparative advantage.
Noteworthy the Sugar and Ethanol exposure reduction in relation to the total portfolio. The Construction sector has shown
allocation opportunities in the best players with appropriate profile transactions, although the sector is not uniform.
The composition of the portfolio of the 20 largest clients changed by approximately 25%, over the past twelve months. This
demonstrates the liquidity and flexibility of the Bank’s operation. The total portfolio share of the 20 largest clients remained
below 30%.
Sectors
Other
10%
O Rebalance
Foodindusuy ES
>
y Sugar and Ethanol
Meatpacking 19% EVA 12%
2% Ss
Retail a Construction
ES Sugarand Ethanol 12% EE
Foreign Trade. ud
E Electric and Renewable
chemical Energy
> Agriculture
n
felecom. 7
Tot 1% E 8%
5% 5% Infrastructure
Specalmessenicos – e Transportation and
Vehiciesand Parts 41% e 40% Logistics
Others
inrasucture
Jun-12 Jun-13 Jun-14
Loan Portfolio Profile and Quality
Loan Quality and Provision for Loan Losses – Resolution 2,682
Jun-14 Mar-14
A A Pi an Rating Overdue To Expire A an
AA 1,061 1,061 16.2% – AA 1,130 1,130 17.3% –
A 1,991 1,991 30.3% 10 A 2,063 2,063 31.6% 10
B 0 2,284 2,284 34.8% 23 B 0 2,223 2,223 34.1% 2
Cc 1 850 851 13.0% 26 Cc 697 706 10.8% 21
D 10 236 246 3.7% 25 D 16 224 241 3.7% 24
E 36 36 0.6% 1 E 35 35 0.5% 11
F 0 27 27 0.4% 13 F 0 25 25 0.4% 13
G 11 52 63 1.0% 44 G 2 50 52 0.8% 36
H 3 5 8 0.1% 8 H 43 7 51 0.8% 51
Total 25 6,542 6,567 100.0% 159 Total 70 6,456 6,526 100.0% 188
Required provision according to the transaction rating: AA: 0%, A: 0.5%, B: 1%, C: 3%, D: 10%, E: 30%, F: 50%, G: 70%, H: 100%
Loan Portfolio by Risk – Resolution 2,682
Jun-14 Mar-14
D-H D-H
5.8% 6.2%
AA-C AA-C
94.2% 93.8%
PINE
Loan Portfolio Coverage Ratios
2.9% 2.9% 640%
532% TE 2.4%
270%
Dec-13 Mar-14 Jun-14
Coverage of Overdue Portfolio –=Coverage of Total Portfolio
Coverage of Overdue Portfolio: Provision/Overdue Portfolio
Coverage of Total Portfolio: Provision/Loan Portfolio – Resolution 2,682
Non-Performing Loans (Overdue Installments)
% of loan portfolio
The NPL ratio of installments overdue more than 90 days ended the period at 0.2%, compared to 0.6% in March 2014.
0.6% 0.6% 0.6% 0.6%
0.4%
0.2% 0.1% 0.1% 0.2%
Jun-12 Sept-12 Dec-12 Mar-13 Jun-13 Sept-13 Dec-13 Mar-14 Jun-14
Non-Performing Loans (Total Contract)
% of loan portfolio
Considering the total contract, the ratio of more than 90 days reached 0.3% in the period, compared to 0.7% in March 2014.
1.2% 1.2%
Jun-12 Sept-12 Dec-12 Mar-13 Jun-13 Sept-13 Dec-13 Mar-14 Jun-14
Includes debentures, CRIs, Hedge Fund, and Eurobonds and excludes Bank Guarantees and Stand by Letters of Credit.
PINE
FICC
Pine*s FICC business provides risk management products and hedging solutions to help clients manage the risks on their
balance sheets. The key markets in this business line are Fixed Income, Currencies, and Commodities. Pine offers its clients
the main derivative instruments, which include non-deliverable forwards (NDFs), swaps and some options-based structures.
The total notional value of the derivatives portfolio for clients totaled R$14.4 billion, with an average duration of 149 days at
the end of the second quarter.
Client Notional Derivatives by Market Notional Amount and Counterparty Credit Risk (MtM)
Notional value
— nen
Currencies
90%
– – StressedMIM
298 530 482
327 354
248%
N195) (243)
Sm _E
Fixed Income
532)
4% a EEZ)
Commodities 5,891 11,090 11,148 11,268 14,382
6%
Jun-13 Sept-13- Dec-13 Mar-14 Jun-14
The RS354 million of counterparty risk exposure (Mark to Market) considers the net value of Pine”s payables and receivables.
Thus, in June 2014, Pine would receive R$430 million from its counterparties and pay R$76 million. It is worth emphasizing
that more than 75% of amounts receivable are rated between AA and B.
Based on the stress test performed on the derivatives portfolio with clients, under an extremely negative scenario consisting
of the U.S. dollar strengthening by 31% against the Brazilian Real to reach R$2.90/USD, and commodity prices falling by 30%,
the potential Mark to Market in the portfolio would have been R$532 million payable.
Additionally, Pine hedges the portfolio in Exchanges and with Bank counterparties, with daily MtM settlement. This, coupled
with the portfolios” short duration, assures the maintenance of liquidity levels according to policy.
According to the ranking compiled by CETIP – OTC Clearing House in June 2014, Pine is the 11* largest bank in derivatives
transactions for clients, and maintained the 2″ position in the commodity derivatives segment.
Pine Investimentos
Pine Investimentos, the Bank’s Investment Banking unit, works closely with its clients to offer customized and unique
solutions in the Capital Market, Financial Advisory, and Project €: Structured Finance areas.
During the 1H14, Pine Investimentos participated in the underwriting of approximately RS$1 billion in fixed income, in both
local and international markets.
Funding
Total funding reached R$8,559 million in June 2014, reduction of 2.7% Qo0Q and up 20.4% YoY. In turn, the volume of time
deposits and onlendings increased 14.1% and 26.0%, respectively, in the past twelve months. The weighted average term of
funding transactions remained at 16 months.
Aligned with the constant and active liability management, and considering the high liquidity and stability of the balance
sheet, Pine has taken the following initiatives:
Payment of the Financial Bill issued in April, 2012, in the amount of R$373 million;
Partial pre-payment of the Huaso Bond of around US$32 million, or approximately 54% of the issuance;
RS230 million Financial Bill issuance, with a two-year term, at the end of July;
Increase in deposits of individuals through the distribution of Agribusiness and Real Estate Letters of Credit
for the private banking market with attractive cost and term.
PINE
In twelve months, external funding growth resulted from several transactions: US$100 million syndicated loan, with a two-
year term, US$20 million through a Senior Unsecured Term Loan, with a ten-year term, and US$50 million through Pine”s
third Islamic format issuance, with a one-year term, which were structured during 2013.
In the international market, Pine has around 70 correspondent banks in various countries, including development banks such
as DEG and Proparco, and multilateral agencies, including the IFC, IDB, and FMO.
RS milion
MEN Jun-13 0] M3
Local Funding 5,163 5,514 4,556 -6.4% 13.3%
Demand deposit 41 27 19 51.9% 115.8%
Interbank deposits 80 76 110 5.3% -27.3%
Time deposits + LCA + LCI 3,940 3,995 3,452 1.4% 14.1%
Individuals * 908 659 254 37.8% 257.5%
Companies 761 1,022 1,013 -25.5% -24.9%
Institutionals 2,271 2,314 2,185 1.9% 3.9%
Capital Markets 1,102 1,415 975 22.1% 13.0%
Onlendings + Trade Finance 2,150 2,008 1,859 7.1% 15.7%
Onlendings 1,086 1,174 862 -7.5% 26.0%
Trade finance 1,064 834 997 27.6% 6.7%
International Funding 1,246 1,275 696 -2.3% 79.0%
Capital Markets 427 434 435 1.6% 1.8%
Multilaterals 346 364 80 -4.9% 332.5%
Other private placements and syndicated
bas 473 478 181 1.0% 161.3%
Total 8,559 8,797 7,111 -2.7% 20.4%
* Includes securities distributed to individuals through otherinstitutions.
Asset and Liability Management
In accordance with Pine’s asset and liability management, funding sources are aligned in terms of maturity and cost with
their respective credit transactions. While the weighted average maturity of the loan portfolio is 14 months, the funding
period is 16 months, ensuring a comfortable situation for the Bank.
Matching of Credit and Funding Breakdown
RS Million RS Biltion
8,306 8,465 8,559
7,869 7,746 8,224
Credit aDeposits
Funding 6.086 Cash
5,417 4.1
Working Capital Domestic Capital Markets
3,233 vis
Mindividuals External Funding
2,344
mOnlendings 12
mOnlendings
41 UN]
MTrade finance
No maturity Upto 3 Upto12 Upto3 years Upto 5 years Total 1.1 mTrade finance
months months
(includes
Cash) Credit + Cash Funding
A PINE
Capital Structure
In the quarter, the capital adequacy ratio (BIS) remained at 13.7%, above the regulatory minimum level of 11%. The Tier |
capital represented 12.2% while Tier Il represented 1.5%. During the last twelve months, the ratio change is mainly due to
the 20% reduction in the amount of subordinated debt allowed for Tier Il capital composition.
RS milion
ES Mar-14 E
Reference Equity 1,408 1,386 1,472
Tier 1 1,256 1,234 1,273
Tier | – BIS Ratio % 12.2% 12.2% 14.7%
Tier Il 152 152 199
Tier 11 – BIS Ratio % 1.5% 1.5% 2.3%
Required Reference Equity 937 922 954
Credit Risk 849 856 863
Market Risk 71 49 84
Operational Risk 17 17 8
Excess of Reference Equity 471 464 518
BIS Ratio – % 13.7% 13.7% 17.0%
Guidance
Given the decreasing reviews of the Brazilian GDP, considering Pine*s adjusted projection of 0.8%, and the intensification of
conservativism in the business management in the first semester, the guidance announced in February 2014 is amended as
following:
ISS
Expanded Loan Portfolio 8%-12% 0%-5%
NIM 4%-5% 4%-5%
Personnel and Administrative Expenses 4%-6% 3%-5%
ROAE 13%-15% 10%-13%
PINE
About Pine
Pine is a wholesale bank focused on long-term relationships with corporate clients and investors. The bank offers Credit,
including Working Capital, Onlending lines from BNDES and Multilateral Organizations, Trade Finance, Bank Guarantees, as
well as hedging products (Fixed Income, Currencies, and Commodities), Capital Markets, Financial Advisory Services, Project
€: Structured Finance.
Corporate Governance
Pine has active corporate governance policies, given its permanent commitment to shareholders and other stakeholders. In
addition to integrating Level 2 of Corporate Governance of the BMEFBOVESPA, Pine”s practices include:
+ Two independent members and two external members to the Board of Directors;
+ 100% tag-along rights for all shares, including preferred shares;
+ Adoption of arbitration procedures for rapid settlement of disputes;
+ Quarterly disclosure of earnings results in two accounting standards: BR GAAP and IFRS; and
+ Compensation and Audit Committees, which report directly to the Board of Directors.
PINE4
In 2Q14, Pine repurchased 2,675,165 of its own shares. These shares are currently held in treasury.
As of June 30, 2014
[el rodo] Odia EN %
Controlling Shareholder 65,178,483 17,210,589 82,389,072 68.0%
Management – 7,428,664 7,428,664 6.1%
Free Float – 28,554,867 28,554,867 23.6%
Individuals – 4,410,988 4,410,988 3.6%
Local Institutional Investors – 10,933,098 10,933,098 9.0%
Foreign Investors – 5,523,986 5,523,986 4.6%
DEG – 5,581,714 5,581,714 4.6%
Proparco – 2,105,081 2,105,081 1.7%
SubTotal 65,178,483 53,194,120 118,372,603 97.7%
Treasury – 2,799,421 2,799,421 2.3%
Total 65,178,483 55,993,541 121,172,024 100%
Interest on Own Capital and Dividends
On July 17, 2014, Pine paid a total of R$20 million as dividends and interest on own capital, which corresponds to a gross
payout per share of R$0.17. Of this total, R$16.7 million represents interest on own capital and R$3.3 million, dividends. This
amount represents a dividend yield of 11.8%. Since 2008, Pine distributes dividends/interest on own capital quarterly.
Ratings
STANDARD – FitchRatings Moodys.com RISKbank
8POOR’S o
ES
a 8 Long Term BB+ BB+ Bal
EE
25
S [5] Short Term B B
e – –
Ni] Long Term brAA AA-(bra) Aa2.br
E
El 10.30
%
54 Short Term F1+(bra) Br-1
PINE
Balance Sheet
RS million
Jun-14 ES Jun-13
Assets 10,683 11,046 10,457
Cash 93 54 120
Interbank investments 1,146 1,348 669
Securities 2,164 2,161 2,977
Interbank accounts 1 5 1
Lending operations 6,567 6,526 5,483
(-) Provisions for loan losses (159) (188) (203)
Net lending operations 6,408 6,338 5,280
Other receivables 752 1,031 1,316
Property and equipments 119 110 94
Investments 97 88 66
Property and equipment in use 20 20 27
Intangible 1 1 2
Liabilities 9,413 9,776 9,198
Deposits 3,130 3,381 3,236
Money market funding 470 379 1,245
Funds fromacceptance and securities issued 1,627 1,760 1,230
Interbank and Interbranch accounts 23 1 17
Borrowings and onlendings 2,866 2,751 2,018
Derivative financial instruments 248 143 274
Other liabilities 980 1,287 1,118
Deferred Results 69 74 60
Shareholders’ equity 1,270 1,271 1,259
Liabilities and shareholders’ equity 10,683 11,046 10,457
According to Circular Letter n* 3,658 of Central Bank, the FIDC transactions shall be accounted from Borrowings
and Onlendings to the line of Other Liabilities (R$453 million in 2Q14, R$452 million in 1Q14 and R$72 miltion in 2Q13).
10
PINE
Accounting Income Statement
RS millions
yo ES LoES 2013 1H14 1H13
Income from financial intermediation 263 263 341 526 574
Lending transactions 194 168 140 362 250
Securities transactions 76 91 71 167 129
Derivative financial instruments 8 8 48 17 111
Foreign exchange transactions (15) (4) 82 (19) 84
Expenses with financial intermediation (181) (166) (286) (347) (428)
Funding transactions (145) (136) (175) (280) (294)
Borrowings and onlendings (22) (18) (82) (40) (92)
Provision for loan losses (14) (12) (29) (26) (42)
Gross income from financial intermediation 82 97 55 179 146
Other operating (expenses) income (30) (43) (20) (73) (41)
Fee income 24 21 30 44 60
Personnel expenses (22) (23) (22) (46) (44)
Other administrative expenses (20) (26) (Q1) (46) (45)
Tax expenses (2) 3) (4) (5) (7)
Other operating income 9 7 5 17 15
Other operating expenses (19) (18) (8) (37) (20)
Operating income 52 54 35 106 105
Non-operating income 4 7 3 11 5
Income before taxes and profit sharing 57 61 38 117 110
Income tax and social contribution (11) (12) 8 (24) (11)
Profit sharing (10) (13) (7) (23) (15)
Net income 35 35 39 70 84
Considers the reclassification of FIDC expenses pursuant to Circular Letter n” 3,658 of Central Bank. FIDCs expenses shall be
accounted in other administrative expenses. Before, compounded the expenses of borrowings and onlendings transactions, in the
amount of R$16.2 million, R$15.5 million and R$1.9 million respectively in 2014, 1Q14 and 2013.
This report is a free translation from the Portuguese version. In case of any divergence, discrepancy or difference between this version and
the Portuguese version, the Portuguese version shall prevail. 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 such are 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 tax legislation)
and therefore are subject to change without prior notice.
11
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