11 04-2010 - 3 q10 earnings results presentation
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11 04-2010 - 3 q10 earnings results presentation Presentation Transcript

  • 1. 3Q10 Results PresentationNovember 04, 2010
  • 2. DisclaimerThe Company makes forward looking statements that are subject to risks anduncertainties. These statements are based on the beliefs and assumptions of ourmanagement as well as on information currently available to us. Forward-lookingstatements include information regarding our current intent, beliefs or expectations, inaddition to those of the members of the Board of Directors and Executive Officers of theCompany.Forward-looking statements also include information regarding our possible or assumedfuture operating results, as well as statements preceded or followed by, or that include,the words believes”, may”, will”, continues”, expects”, anticipates”, intends”,plans”, estimates”, or similar expressions.Forward-looking statements are not guarantees of performance. They involve risks,uncertainties and assumptions, for they relate to future events, thus depending oncircumstances that may or may not occur. Our future results and the creation of value toshareholder s may differ significantly from those expressed in or suggested by theseforward-looking statements. Many factors determining these results and values arebeyond Cielo’s ability to control or predict
  • 3. 3Q10 Highlights Transaction financial volume up 24.1% over 3Q09, to R$ 67.3 billion Adjusted EBITDA up 20.9% over 3Q09 to R$ 760.6 million, and up 3.4% over 2Q10 Net income up 23.0% over 3Q09, to R$ 488.1 million, and up 6.6% over 2Q10 Cielo announces partnership with CEF and Safra Cielo announces partnership with the brands Amex, Ticket, Sorocred and Policard. Cielo announces joint-venture with Oi to offer acquiring and transaction capture services using mobile devices Cielo elected the “Company of Value 2010” by Valor Econômico; ranked first in the Valor 1000 award in the Specialized Services category for the fifth consecutive year; elected one of the five best companies in people management by Valor Carreira; chosen as one of the best places to work by Exame Magazine for the 10th consecutive year 3
  • 4. Macroeconomic Scenario - Brazil 1 Retail Trade Sales- % 2 GDP Growth ( %) 7.6 18 16 5.7 6.1 14 5.1 12 4.0 10 10.4 3.2 8 6 4 2 0 -0.2 2004 Source: IBGE 2005 2006 2007 2008 2009 2010(E) (E) Market Estimative- Focus Report - BCB (10/29/2010) Source: IBGE 3 Credit Evolution 4 Unemployment Rate- % Credit Credit/GDP (%)12 (R$million) 1,612 45,0 1.60011 1,414 40,0 1.40010 1,227 35,0 1.200 60% 30,0 9 1.000 936 56% 57% 25,0 800 733 8 607 20,0 54% 600 499 15,0 55% 7 400 56% 59% 40% 10,0 43% 44% 6 200 45% 46% 5,0 41% 44% 0 0,0 2004 2005 2006 2007 2008 2009 sep/10 Source: Individuals Legal Entities Credit/GDPSource: IBGE BCB 4
  • 5. Cards Market- Brazil Penetration of Card as means of payment in the 1 2 Volume Growth (R$ Billion) Private Consumption Expenditures (PCE) CAGR 22.0% 444 22,5% 20,7% 375 18,9% 17,1% 301 244 22.1% 136 111 2006 2007 2008 2009 2006 2007 2008 2009 3Q09 3Q10* Source: Abecs Source:ABECS e IBGE (*) ABECS Estimates Number of the Cards Issued (million) 3 4 Average Ticket (R$/Transaction) 10.8% 4.9% 81.0 612 CAGR 13.4% 565 553 514 77,5 452 77,2 388 74,9 71.9 69.0 2006 2007 2008 2009 3Q09 3Q10*Source: Abecs 2006 2007 2008 2009 3Q09 3Q10*(*) ABECS Estimates (*) Source ABECS( Considering only Credit and Debit) 5
  • 6. Cielo – Financial and Operating Highlights Financial Highlights 3Q10 3Q09 2Q10 3Q10 X 3Q09 3Q10 X 2Q10 Financial Transaction Volume (R$ million) 67,256.8 54,176.8 61,567.4 24.1% 9.2% Number of Transactions (million) 1,037.7 860.7 965.1 20.6% 7.5% Net Operating Revenue (R$ million) 1,137.4 924.4 1,048.9 23.0% 8.4% Total Cost of Services (R$ million) (317.1) (244.3) (257.5) 29.8% 23.2% Operating Expenses (R$ million) (108.8) (91.7) (102.6) 18.7% 6.1% Adjusted EBITDA (R$ million) 760.6 628.9 735.3 20.9% 3.4% Net Income (R$ million) 488.1 396.7 457.7 23.0% 6.6% Total Net MDR ( bps) 121 123 120 (2) 1 Credit Net MDR (bps) 146 150 145 (4) 1 Debit Net MDR (bps) 79 78 79 1 0 Operating Highlights 3Q10 3Q09 2Q10 3Q10 X 3Q09 3Q10 X 2Q10 Active Merchants in 60 days (thousand) 1,147 1,088 1,153 5.4% -0.5% Total POS (thousand) 1,657 1,532 1,606 8.2% 3.2% Employees 1,096 1,075 1,058 2.0% 3.6% 6
  • 7. Cielo – Operating Performance Cielo- Number of Transactions (million) 1 Cielo Transactions- Financial Volume (R$ million) 2 3.427 CAGR: 24.5% 213,958 CAGR: 20.1% 2.952 175,552 1.424 79.166 2.389 1.978 1.232 136,500 64.655 987 110,749 48.534 24.1% 836 20.6% 1.038 39.552 67,257 2.003 861 134.792 1.720 440 54,177 1.402 351 110.897 25.701 1.142 87.966 19.988 510 598 71.197 34.189 41.556 2006 2007 2008 2009 3Q09 3Q10 2006 2007 2008 2009 3Q09 3Q10 Credit Debit Credit Card Debit Card Cielo- Number of Active Merchants (thousand) 3 1,207 1,250 1,162 1,133 1,088 1,147 1,055 996 872 716 824 679 2006 2007 2008 2009 3Q09 3Q10 Active Merchants ( transactions in the last 180days)* Active Merchants ( transactions in the last 60 days)* 7
  • 8. Cielo – Revenues Performance5 Operating Revenue - Activity (%) 1 Net Revenue (R$ miilion),9 3.627,8% CAGR 23.1% 49,8% 49,8% 49,3% 48,4% 48,2% 2.892,9 2.402,2 1.945,1 23.0% 15,2% 17,4% 15,7% 15,4% 16,2% 1.137,4 23,4% 924,4 26,1% 24,7% 26,1% 26,2% 5,5% 5,5% 5,2% 5,9% 8,4% 3,5% 3,0% 3,0% 3,1% 3,8% 3Q09 4Q09 1Q10 2Q10 3Q10 Other revenues Prepayment of Receivables POS Rental Debit cards Credit cards 2006 2007 2008 2009 3Q09 3Q10 Credit and Debit Revenue (R$ million) 3 Equipment Rental Revenue (R$ million) 4 608,6 18.8% 30.9% 204,2 1.067,1 CAGR: 21.4% 903,1 155,9 745,9 596,0 512,3 10.3% 268,1 295,7 3Q09 3Q10 3Q09 3Q10 Credit Revenue 2006 2007 2008 2009 3Q09 3Q10 Debit Revenue 8
  • 9. Cielo – Prepayment of Receivables3.000,0 Prepayment of Receivables 2.669,6 1 10,0% 2 Average Term (days) 2.460,4 9,0% 69,7 72,02.500,0 2.193,3 8,0% 66,1 2.009,4 7,0% 61,8 54,42.000,0 1.604,7 6,4% 6,0% 6,3% 5,3% 5,8%1.500,0 5,0% 4,7% 4,0%1.000,0 3,0% 2,0% 500,0 1,0% - 0,0% 3Q09 4Q09 1Q10 2Q10 3Q10 Financial prepayment volume % Prepayment over Credit Financial Volume 3Q09 4Q09 1Q10 2Q10 3Q10 Revenue of Prepayment of Receivables ex Adjustments 3 (R$ million) 113.3 127,8% 97,1 73,3 65,5 49,7 3Q09 4Q09 1Q10 2Q10 3Q10 9
  • 10. Cielo – Financial Performance Total Costs of Services (R$ million) 1 Operating Expenses (R$ million) 2 CAGR 10,7% 936,3 427,4 851,1 401,1 771,0 351,5 353,9 690,2 29,8% 317,1 18.7% 23,4% 301.5* 108,8 244,3 91,7 2006 2007 2008 2009 3Q09 3Q10 2006 2007 2008 2009 3Q09 3Q10 * Excluding the aditional brands fee3.000,0 Adjusted EBITDA(R$ million) 80,00% 3 Net Income (R$ million) 4 1.800,0 60,00% 2.450,7 75,00% 1.600,0 1.536,7 55,00%2.500,0 1.400,0 70,00% 50,00%2.000,0 1.764,3 1.200,0 1.115,3 68% 65,00% 883,9 45,00% 1.409,5 1.000,01.500,0 68% 67% 657,9 42% 800,0 800,0 1.038,8 60,00% 40,00% 61% 65,00% 600,0 45,00% 700,0 43% 40,00% 59% 55,00%1.000,0 500,0 600,0 600,0 55,00% 39% 35,00% 43% 35,00% 37% 500,0 45,00% 400,0 30,00% 400,0 760.6 400,0 35,00% 300,0 25,00% 500,0 53% 300,0 50,00% 628.9 34% 30,00% 488.1 20,00% 396,7 25,00% 200,0 200,0 200,0 15,00% 100,0 15,00% 100,0 10,00% 0,0 0,0 25,00% 5,00% 0,0 45,00% 0,0 5,00% 2006 2007 2008 2009 3Q09 3Q10 2006 2007 2008 2009 3Q09 3Q10 Net Income Net Income Adjusted EBITDA Adjusted EBITDA Margin 10 Margin
  • 11. Cielo – Strategic Planning STRATEGIC MATRIXNon-PaymentTransactions VAN* Services Mobile / eCommercePaymentTransactions* Value Added Network Card Present Card Absent 11
  • 12. Cielo – Competitive Landscape % Volume % Revenue In Negotiation 50 – 30 - 55% 35% • mainly MDR Big Merchant s Medium Merchants 20 - 30 - • MDR and 25% 35% equipment rental Small Merchants 20 - 35 - 25% 40% • mainly POS 12
  • 13. Cielo – Our Competitive AdvantagesOur advantages: • RELIABILITY • DISTRIBUTION • INNOVATION • DIFFERENTIATED RELATIONSHIP • DIFFERENTIATED PRODUCTS 13
  • 14. Thank You!Investor Relations Contacts:ri@cielo.com.br