3Q09 RESULTS 3Q09 Results 3Q09 Results Disclaimer Disclaimer - - PDF document

3Q09 RESULTS

November 4th, 2009

3Q09 Results

Disclaimer

3Q09 Results This presentation may contain forward-looking statements. Such forward-looking statements are and will be subject to many risks and uncertainties relating to factors

Disclaimer

statements are and will be subject to many risks and uncertainties relating to factors that are beyond the Tarpon’s ability to control or estimate precisely, such as future market conditions, competitive environment, currency and inflation fluctuations, changes in governmental and regulatory policies and other factors relating to the f f f ff

• perations of Tarpon, which may cause actual future results of Tarpon to differ

materially from those expressed or implied in such forward-looking statements Y ti d t t l d li th f d l ki t t t You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. Such forward-looking statements shall not be construed as guarantee of future performance. Tarpon does not undertake to publicly review or update these forward-looking statements in view of events or p y p g circumstances occurring after the date of this presentation This presentation does not constitute an offer, or invitation, or solicitation of an offer, to p subscribe for or purchase any securities. Neither this presentation nor anything contained herein shall form the basis of any contract or commitment whatsoever

2

3Q09 Results

Financial highlights

3Q09 Results

Financial highlights

Tarpon’s AuM achieved historical high R$3,389 million in the 3Q09, an increase of 21.5% when compared to 2Q09. The increase is result of net positive performance of the funds combined with net subscriptions in the amount of R$34.4 million in the quarter Assets under Management The funds and managed accounts under Tarpon’s management received R$60.4 million in new commitments mainly from foreign institutional investors New commitments Tarpon collected R$9.3 million in revenues related to management fees during in the 3Q09, a 24 7% increase when compared to the 2Q09 Fees commitments, mainly from foreign institutional investors commitments 24.7% increase when compared to the 2Q09 The Long-Only strategy presented a weighted average net performance of 36.7% and the Hybrid strategy posted a net performance of 34.8%, both in dollar terms Performance Tarpon reported an adjusted net income of R$8.1 million in the 3Q09 Net Income

3

3Q09 Results

Assets under Management (AuM)

3Q09 Results

Assets under Management (AuM)

In the 3Q09, Tarpon’s AuM achieved historical high R$3,389 million, an increase of 21.5% when compared to 2Q09. The increase is a result of the performance of the Tarpon Funds and when compared to 2Q09. The increase is a result of the performance of the Tarpon Funds and new commitments during the quarter Tarpon was able to attract R$60.4 million in new commitments, resulting in net subscriptions of R$34.4 million. In the 9M09 period, Tarpon had R$145.3 million in new commitments and net subscriptions of R$22.7 million

AuM in R$ million

146 146 146 146 146 146 497 98 0.12 143 (41) 29 34 8 44 503 142 232 479 529 175

AuM in R$ million Total R$3,389 million

802 1,304 1,449 1,276 1,446 1,279 1,487 1,796 146 146 146 146 9 (41) 29 232 1,305 1,292 1,465 1,134 965 860 1,159 1,447

4

4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 Long-Only Equity Hybrid-Equity Direct Private Equity Net Subscriptions Performance Co-Investments

3Q09 Results

Institutional investor base in expansion

3Q09 Results

Institutional investor base in expansion

Tarpon’s capital base remained stable as its

23% 17% 17% 10% 12% 13% 10% 12% 7% 5% 4% 4%

region investor base is composed of long-term sophisticated institutional investors

65% 73% 76% 81% 72% 68% 44% 23%

by ase

9% 16% 19% 45% 65% 4Q03 4Q04 4Q05 4Q06 4Q07 4Q08 3Q09 12% 26% 3% 6% 6% 7% 6% 22% 21% 17% 7% 3% 3% 15% 7% 6% 5%

Investor ba In the 3Q09 institutional investors with long-term approach such as

Americas (ex-Brazil) Brazil Europe Asia and Middle East 75% 65% 56% 26% 31% 8% 11% 14% 30% 16% 24% 26% 6% 20% 20% 24%

y type approach such as endowments, foundations, sovereign wealth funds, pension funds and TIG’s capital

56% 24% 13% 8% 8% 2% 6% 6% 8% 6% 3% 3% 14% 12% 11% 4Q03 4Q04 4Q05 4Q06 4Q07 4Q08 3Q09 HNWI Family Offices Banks

by funds and TIG s capital (“permanent” capital) represented approximately 67% of the total AuM

y Funds of funds Endowments & Foundations Sovereign funds & Pension plans TIG Others

the total AuM

5

3Q09 Results

Investment performance

3Q09 Results

Investment performance

The overall positive spiral observed in the Brazilian economy contributed to Tarpon’s performances: performances: In the 3Q09, the Long-Only strategy posted a weighted average net performance of 36.7% and the Hybrid Equity strategy a 34.8% performance, both in dollar terms. In the same period, Ib d IBX I d t d t f 31 2% d 28 6% ti l (b th i US$) Ibovespa and IBX Index posted returns of 31.2% and 28.6%, respectively (both in US$)

Performance⁽⁴⁾ Annualized Returns Strategy Vehicle Inception Date AuM⁽¹⁾⁽²⁾⁽³⁾ 3Q09 9M09 LTM 3 yrs 5 yrs Tarpon FIA May 2002 R$ 447 24.3% 55.6% 36.6% 76.9% 128.6% Tarpon Fund* May 2002 R$ 1,000 35.6% 101.3% 49.5% 110.8% 215.8% (since launch) Long-Only 34.9% 36.5% Tarpon Fund May 2002 R$ 1,000 35.6% 101.3% 49.5% 110.8% 215.8% 27.6% Oct 2006 R$ 1,796 34.8% 100.2% 107.6% 48.8%

• Hybrid-Equity Tarpon All Equities Fund*

36.5%

(1) As of September 30th, 2009, in R$ million (2) Includes segregate accounts under the same mandate and commit but uncalled capital (3) Di t i t it i t t (B ilA ) t i l d d 6 (3) Direct private equity invetments (BrasilAgro) are not included (4) All performance show n are net of fees * The strategy's performance is indicated in US$

3Q09 Results

Management & performance fees financial highlights

3Q09 Results Tarpon collected R$9.3 million in management fees in 3Q09, an increase of 24.7% when compared to the 2Q09. In the 3Q09, performance fees were not collected

Management & performance fees – financial highlights

p Q Q , p The historical revenues related to management fees are presented in the chart bellow, reflecting the Company’s ability to growth its AuM base

Management fees⁽¹⁾⁽²⁾ in R$’000

8,009 9,031 9,165 8,701 8,888 7 491 9,339

24.7%

⁽¹⁾ Gross values 6,057 6,353 7,491 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09

7

(2) The financial information up to March, 2009 are reported on an unaudited pro-forma basis and assumes that the Company was conducting the asset management activities previously carried by TIG Holding Ltd. during such periods. This information is for illustrative purposes only. In the 1Q09, from the presented amount of R$8,888 thousand s of revenues, R$ 6,394 thousands were accounted to TIG holding Ltd. corresponding to revenues attributed to the company prior to the Corporate Restructuring, that consisted in the business segregation of the Company’s activities from TIG’s, approved in March 10 th , 2009 (“Corporate Restructuring).

3Q09 Results

T t l R fi i l hi hli ht

3Q09 Results In the 3Q09 total revenues (exclusively related to management fees) amounted to R$9 3

Total Revenues – financial highlights

In the 3Q09, total revenues (exclusively related to management fees) amounted to R$9.3

• million. In the 9M09 period, total revenues amounted to R$37.4 million

Total revenues⁽¹⁾⁽²⁾ in R$’000

39 840 62,171 66,045 ⁽¹⁾ Gross values 48,099 39,840 37,366

(43.4)%

6.2% 9,165 9,339 14,072 26,205 25,719 11,647 6,057

51.3% 1.9%

14,072 9M07 9M08 9M09 Management fees Performance fees 3Q07 3Q08 3Q09

8

(2) The financial information up to March, 2009, date of the Corporate Restructuring conclusion, are reported on an unaudited pro-forma basis and assumes that the Company was conducting the asset management activities previously carried by TIG Holding Ltd. during such periods. The amount of R$37,366 thousands presented is related to revenues from management and performance fees collected by Tarpon Investimentos S.A. in the accumulated 9M09 period, in addition to R$6.394 thousands related to gross management fees accounted by TIG Holding Ltd in the 1Q09.

3Q09 Results

SG&A financial highlights

3Q09 Results The recurring operating expenses, comprised of personnel and administrative expenses, amounted to R$2.5 million in 3Q09 and R$2.3 million in the 2Q09. The 8.5% increase is

SG&A – financial highlights

$ $ attributed to a combination of new hiring and investments in the Company’s infrastructure Total operating expenses, including non-cash stock option plan and semi-annual variable compensation (paid every 2Q and 4Q) amounted to R$2 7 million in the 3Q09 and R$9 3 million compensation (paid every 2Q and 4Q) amounted to R$2.7 million in the 3Q09 and R$9.3 million in the 2Q09

Total SG&A in R$’000

808

8.5%

2,261 9,276 2,453 1 645 732 808 6,555 2 695 1,529 1,645 2Q09 3Q09 2,261 2,453 460 242 2Q09 3Q09 2,695

9

Q09 3Q09 Personnel expenses Administrative expenses 2Q09 3Q09 Personnel & administrative expenses Stock option plan Variable compensation

3Q09 Results

Adjusted net income financial highlights

3Q09 Results Tarpon’s 3Q09 adjusted net income considering the reversion of the stock option plan

Adjusted net income – financial highlights

Tarpon s 3Q09 adjusted net income, considering the reversion of the stock option plan provision, amounted to R$8.1 million. In connection to the 9M09 period, adjusted net income amounted to R$17.8 million

Adjusted Net Income in R$’000

1,590 17,795 16,213 242 8,072 7,838

10

3Q09 9M09 Net income Stock option plan provision

3Q09 Results

Income statement consolidated

3Q09 Results

Income statement – consolidated

For the quarters ended on In thousands - R$ September 30th June 30th C ti i ti 2009 Continuing operations Net Revenues 8,853 18,164 Personnel expenses (1,645) (8,084) Stock option (242) (460) Administrative expenses (808) (732) Financial income / (expense) 1,324 1,553 Share of profit of equity accounted investees 2,810 871 Other income/(expense) 3 4 Results from operating activities 1 442 (6 848) Results from operating activities 1,442 (6,848) Profit before income tax 10,295 11,316 Income tax and social contribution (1,053) (2,081) Mi iti (1 412) (431) Minorities (1,412) (431) Net income 7,830 8,804

11

3Q09 Results

Cash Flow consolidated

3Q09 Results

Cash Flow – consolidated

For the quarter ended on In thousands - R$ September 30th June 30th Operating Activities N t i 9 242 9 235 2009 Net income 9,242 9,235 (+) Depreciation / amortization 73 12 (+) Reversion of profit from equity accounted investees (2,810) (871) (=) Adjusted net income 6,505 8,376 ( / ) W ki it l (8 046) 9 256 (+/-) Working capital (8,046) 9,256 (+/-) Trade receivables 9,764 (15,845) (-) Capex 11 (42) (=) Free cash flow to firm (FCF) 1,729 (6,631) (+/-) Change in financial assets (1,467) (2,124) (-) Dividends (6,780) 418 (=) Net cash from / (used in) financing activities (8,247) (1,706) Net increase (decrease) in cash and cash equivalents (13) 38 Cash and cash equivalents at the beginning of the period 66 28 Cash and cash equivalents at the end of the quarter 53 66

12

3Q09 Results

Balance Sheet consolidated

3Q09 Results

Balance Sheet – consolidated

For the quarter ended on In thousands - R$ September 30th June 30th Assets 2009 Assets Cash and cash equivalents 53 66 Financial assets measured at fair value through profit and loss 9,463 8,090 Trade receivables 7,917 17,681 Available for sale financial assets 88 80 Other assets 586 623 Total current assets 18 107 26 540 Total current assets 18,107 26,540 Investments in equity accounted investees 161 85 Property, plants and equipments 264 275 Total non-current assets 425 360 Total assets 18,532 26,900 , , Current liabilities Accounts payable 575 638 Current tax liabilities 1,443 3,019 Payroll accruals 873 7,317 Dividends payable

• 8,375

p y , Total current liabilities 2,891 19,349 Equity Share capital 4,004 4,004 Stock option 1,590 1,348 Capital to realize 2,018 2,018 Capital to realize 2,018 2,018 Statutory reserve 212 212 Adjustment available for sale financial assets (13) (31) Retained earnings 8,136 142 Total equity 15,947 7,693 Minority interest in equity (306) (142) 13 Total Equity and current liabilities 18,532 26,900

3Q09 Results

Contact Details

3Q09 Results

Contact Details

Tarpon Investimentos S A Tarpon Investimentos S.A. www.tarponinvest.com.br T l 55 (11) 3074 5800 Tel: +55 (11) 3074 5800 Eduardo Mufarej IR Offi IR Officer email: ri@tarponinvest.com.br Marina Barretto IR Email: ri@tarponinvest.com.br

14