Investor Presentation - December

Investor Presentation December 2012

Disclaimer

This notice may contain estimates for future events. These estimates merely reflect the expectations of the Company’s management, and involve risks and uncertainties. The Company is not responsible for investment operations or decisions taken based on information contained in this communication. These estimates are subject to changes without prior notice. This material has been prepared by Multiplus S.A. (“Multiplus“ or the “Company”) includes certain forward-looking statements that are based principally on Multiplus’ current expectations and on projections of future events and financial trends that currently affect or might affect Multiplus’ business, and are not guarantees of future performance. They are based on management’s expectations that involve a number of business risks and uncertainties, any of each could cause actual financial condition and results of operations to differ materially from those set out in Multiplus’ forward-looking statements. Multiplus undertakes no obligation to publicly update or revise any forward looking statements. This material is published solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. Likewise it does not give and should not be treated as giving investment advice. It has no regard to the specific investment objectives, financial situation or particular needs of any recipient. No representation or warranty, either express or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein. It should not be regarded by recipients as a substitute for the exercise of their own judgment.

Innovative business model

Multiple growth drivers

Diversification goals

Driving value to members and partners

Branding, innovation and knowledge

Investment case

Coalition model: an evolution from traditional loyalty scheme

Single loyalty scheme Coalition loyalty scheme

Commercial partners • access to consumer bases from other segments • possibility of promotional actions with other partners

Members • better accumulation power • more redemption options

4

Strong partnership network

Accrual partners Coalition partners Redemption partners

5

Created from TAM Fidelidade, Multiplus has already

expanded its network in the last two years…

1993 Creation of TAM Fidelidade

2009 Spin-off from TAM Fidelidade

Feb/2010 Multiplus’ IPO

Out/2011 Multiplus present its new brand

Nov/2011 Announcement of JV with AIMIA

Dez/2012 Multiplus becomes one of TOP 100 most liquid stocks in Bovespa

Aug/2010 New headquarters and IT loyalty platform

Mar/2012 Multiplus reaches 200 partners

Apr/2012 Multiplus reaches 10 mn members

8

Sep/2012 Non-air redemptions surpasses 6% for the first time in a quarter

Much more than points…

Brazilian largest loyalty network, with more than 10.5 million members and over 200 partners

Designs, builds and manages customer and

employee loyalty programs for individual clients

9

Coalition

# of months ~10 0 24

3

2

points selling redemption

unit revenue less unit cost

spread 1

CASH IN CASH OUT ~10 months float

interest income

point expiration

breakage

THREE SOURCES OF PROFIT

10

Analytics and Proprietary Loyalty

The consolidation of Prismah’s results is being done by the accounting process called equity method

50% 50%

Design and develop loyalty scheme for third-party

Manage and perform on data analytics services

Create incentive campaigns for third-party

11

A young company with great track record

230,3 264,0

300,0 325,2

339,9 354,6

397,3

433,6 430,4 457,1

491,4

1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12

More than R$650 million in FCF* Almost 100% dividend payout

Gross Billings (BRL mn)

Solid growth

12

*Sep/2012 LTM






Investment case

132

163

202

240 241

312

365

328 352

377 399

2005 2006 2007 2008 2009 2010 2011 2012e 2013e 2014e 2015e

Domestic consumption growth

Source: Brazilian Central Bank

14

Estimates point to 7.3% growth in net sales for 2013

Retail Net Sales in Brazil (USD bn)

Source: Euromonitor

A and B social classes will reach 15% of Brazilian population by 2014

Brazil’s wealth distribution improve

Social classes in Brazil (% of the population)

7%

38%

55%

2003

A and B

C

D and E

29%

2014

15%

56%

15

Multiplus’ focus

Source: Social Policies Center of FGV-Rio

Note: Average income of classes D and E - R$ 6,126/year; class C - R$13,944/year; and classes A and B - R$ 75,942 /year.

95 115

142 174

215 256

314

386 426

485

550

622

2004 2005 2006 2007 2008 2009 2010 2011 2012e 2013e 2014e 2015e

Credit card usage increase

Credit Card Transaction Value in Brazil (BRL bn)

In 2015, credit card transaction value may exceed R$600 bilion

16

Sources: ABECS and LCA Consultores/Valor

29 36

41 46

50 57

70

81 85

89 92

96

2004 2005 2006 2007 2008 2009 2010 2011 2012e 2013e 2014e 2015e

Air transportation growth

17

Board pax in domestic flights (mn)

Argentina

Peru

Brazil

Colombia

Ecuador

Chile

UK

Mexico

USA

2,74

2,56

0,76

0,49

0,47

0,46

0,46

0,40

0,39

Trips per capta (as of 2011)

Latin America is the second fastest growing region in RPK

Sources: ANAC, Bain & Company and LCA Consultores

Brazilian loyalty industry in early stages

18

60,7%

43,8%

37,7%

28,9% 28,6%

24,1% 21,9%

19,5%

14,0% 12,9% 8,9%

5,2% 4,1% 3,5% 2,5%

Penetration of loyalty programs in total population (%)

Sources: loyalty programs websites and each country statistic data bureau (Updated in Dec/2012)






Investment case

Long term goals

12%

3%

85%

Current

TAM Retail, Industry and Services Banks

Note: based 3Q12

Long term target

Long term target

15 to 20%

15 to 20%

Costs of redemptions

Gross billings

95%

5%

Current

Air Tickets Others

20

Increased retail share will help to sustain margins and make members to better understand the concept

Non-air redemptions growth supports unit cost control and member experience improvement

0,03 0,06 0,07 0,09 0,10

0,25

0,43

0,56 0,61 0,62

1,06

22,6% 23,0% 22,6% 22,6% 23,0% 23,3% 24,0% 24,1% 23,4% 22,5% 22,0%

1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12

Breakage rate is declining slowly as expected while non-air

redemptions become robust

Non-air redemptions x breakage rate (bn & %)

21

Non-air redemptions surpassed 6% of total for the first time in 3Q12




Driving value to members

and partners


Investment case

Two side market: members and partners

23

168

190 200 207

230

3Q11 4Q11 1Q12 2Q12 3Q12

8,9 9,4

9,8 10,1 10,5

3Q11 4Q11 1Q12 2Q12 3Q12

Partners

Members, in R$ million 10.5 mn members can gather

points from several programs in

one single account

230 partners gain a powerful

support acquiring and retaining

clients

Members (mn)

Generate value to members and partners will sustain

growth

24

Branding, Innovation and Knowledge

Sustainable Growth

Adding value to partners

• sales increase • lower retention costs • vacancy management • new business insights based on client

data and behavior

Creating a good member experience

• broad network • targeted offers • fair pricing • recognition

Adding value to partners: sales increase

25

Adding value to partners: vacancy management

26

Adding value to partners: new clients

27

Creating a good member experience: fair pricing

28

Multiplus 69,400

Program B 75,647

Program C 81,800

Program D 98,400

Program E 115,800

32-Inch LED TV

Dec/2012

Program C 71,700

Program B 48,600

Multiplus 35,900

Wine cellar

Dec/2012

Creating a good member experience: targeted offers

29

Creating a good member experience

30

Sample A members collect

about 60% more points

than Sample B members during 12 months following

redemption date

Sample A

Sample B

redemption

no redemption

Sample A and B members with same accrual behavior

Measuring accrual gap after redemption date

Note: CRM analysis based on Multiplus‘ 2011-2012 data





Branding, innovation and

knowledge

Investment case

Using Multiplus you can accumulate points from different loyalty programs

in a single account

Branding a very new concept

32

Redeem your points to have moments you would never put on sale

Emotional as of Oct/2012

Functional Jan/2010 ~ Oct/2012

Online media

Channels

Strategy

Radio spots Partner channels Press media

Marketing campaign (1/4)

33


34


35


36

Innovation

37

Evo

luti

on

Points based loyalty

program

Free tickets issuance

IT F

ocu

s

Integration with alliances and banks

Multi-partners platform

Point of sales features

Multi-channel e-commerce

platforms

Advanced analytics tools

Loyalty program based on # of

flights

Coaliton expansion

Coalition network

Best next offer to partner,

member and Multiplus

Strong increase in # of offers

We are here

Knowledge: finding the next best offer

38

Portfolio map Member segmentation

Breakage rate

Profitabi-lity

Transac-tion

behavior

Engage-ment

Accrual volume

Profile data

Member behavior

Expected breakage

impact

Product category

Partner needs

Product cost

Product seasona-

lity

Next best offer

maximizes member experience, value

added to partner and Multiplus profitability






Investment case

High corporate governance standards

40

Novo Mercado (New Market)

100% tag along rights

Audit committee and Fiscal Counsel

Independent board member

Ordinary share only

Good results

41

High Growth R$491,4 million in Gross Billings in the 3Q12, a 23,7% growth vs same quarter of 2011

More than R$650 million in FCF

(Sep 12, last 12 months)

More than R$1 billion in dividends and interest on

capital since IPO

Strong cash generation

MPLU3 is one of top 100 most liquid Brazilian

stocks (average of R$15 million per trading session)

Attractive dividend payout

Improving stock liquidity

Contact IR Team +55 11 5105 1847 [email protected] www.multiplusfidelidade.com.br/ir

Documents

Investor Presentation - December