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201200901 setembro
201200901 setembro
201200901 setembro
201200901 setembro
201200901 setembro
201200901 setembro
201200901 setembro
201200901 setembro
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201200901 setembro
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201200901 setembro
201200901 setembro
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201200901 setembro
201200901 setembro
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201200901 setembro
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201200901 setembro
201200901 setembro
201200901 setembro
201200901 setembro
201200901 setembro
201200901 setembro
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201200901 setembro

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  • 1. Corporate PresentationSeptember, 2012
  • 2. DISCLAIMERThe Company makes forward looking statements that are subject to risks anduncertainties. These statements are based on the beliefs and assumptions of our management as wellas on information currently available to us. Forward-looking statements include information regarding ourcurrent intent, beliefs or expectations, in addition to those of the members of the Board of Directors andExecutive Officers of the Company.Forward-looking statements also include information regarding our possible or assumed future operatingresults, as well as statements preceded or followed by, or that include, the words believes”, may”,will”, continues”, expects”, anticipates”, intends”, plans”, estimates”, or similarexpressions.Forward-looking statements are not guarantees of performance. They involve risks, uncertainties andassumptions, for they relate to future events, thus depending on circumstances that may or may notoccur. Our future results and the creation of value to shareholder s may differ significantly from thoseexpressed in or suggested by these forward-looking statements. Many factors determining theseresults and values are beyond Cielo’s ability to control or predict. 2
  • 3. BRAZIL | CARD INDUSTRY Penetration Of Cards as Means of Payment in the Private Consumption Expenditure (PCE) 28,2% 26.9% 27,1% 24.3% 22.5% 20.7% 18.9% 17.1% 2006 2007 2008 2009 2010 2011 1Q12 2Q12* Source: ABECS e IBGE * The Q2 numbers are estimated 3
  • 4. BRAZIL | MACROECONOMIC SCENARIO GDP ( %) 7.5 Retail Trade Sales (%) 18 16 6.1 14 5.1 12 4.0 10 9.5 8 2.7 6 1.6 4 2 -0.2 0 2006 2007 2008 2009 2010 2011 2012(E) PIB: IBGE (E) Estiimates- Focus Report- BCB Source: IBGE Credit Credit Evolution Credit/GDP Unemployment (%) (R$million)10 2.500 9 2,184 50,0 2,030 2.000 8 1,704 40,0 1.500 1,414 59% 7 6.7 1,227 58% 30,0 56% 6 1.000 936 57% 54% 20,0 55% 5 500 42% 10,0 44% 41% 46% 43% 45% 4 0 0,0 2007 2008 2009 2010 2011 jul/12Source: IBGE Source: BCB Individuals Legal Entities Credit/GDP 4
  • 5. BRAZIL | ECONOMIC SCHEME MERCHANTS The brand defines the interchange fee. The acquirer negotiates the gross MDR with the merchant. Gross MDR Net MDR Interchange Fee 5
  • 6. BRAZIL | TRANSACTION FLOW Credit Transaction Debit TransactionISSUER ISSUERCARD HOLDERS MERCHANTS CARD HOLDERS MERCHANTS 6
  • 7. MAIN ENTRY BARRIER | BANKINGDISTRIBUTIONBrazil has a total areaof 8,514,876 km²Banking distribution is the mainbarrier to new players70% of the affiliations are donethrough banks NUMBER OF Others Total BRANCHES NORTH 304 277 92 36 107 40 0 0 2 55 913 NORTHEAST 1,152 835 298 196 443 56 3 7 9 192 3,191 MIDWEST 468 344 297 96 202 105 1 6 6 98 1,623 SOUTHEAST 2,350 2,401 2,534 1,850 1,159 427 7 103 72 699 11,602 SOUTH 1,055 775 635 359 528 238 446 10 16 260 4,322 TOTAL 5,329 4,632 3,856 2,537 2,439 866 457 126 105 1,304 21,651 7 SOURCE: BRAZILIAN CENTRAL BANK , JULY 2012
  • 8. CIELO | TIMELINE 1995 2009 2010 4 Visa acquirers R$ 8.4 billion IPO Multi-brand acquirer June 2009 + Single Visa Acquirer 8
  • 9. CIELO | OWNERSHIP 655,096,224 common shares 0.3% 28.6% 42.4% 28.6% Banco Bradesco Banco do Brasil Free-float Treasury 9
  • 10. CIELO | PLANNING MATRIX Partnership with Cybersource 10
  • 11. CIELO | PORTFOLIO OF BRANDS UPCOMING SOONCREDIT AND DEBITVOUCHER 11
  • 12. CIELO | LOYALTY PROGRAM Cielo Fidelidade is the largest B2B loyalty program in Latin America Cielo Fidelidade Scheme: accrual of points based on the merchant’s is the only loyalty volume with Cielo and program developed redemption of points for more exclusively to merchants than 20 thousand products 12
  • 13. CIELO | ADDING VALUE TO MERCHANTS CIELO INNOVATES ONE MORE TIME AND BRINGS AN ADVANCED TECHNOLOGY CHANGING THE CULTURE OF CARRYING OUT PROMOTIONS AT THE POINT S OF SALES CIELO PREMIA IS THE MOST FLEXIBLE AND THE EASIEST TO USE PROMOTIONAL MARKETING TOOL IN THE MARKET 13
  • 14. CIELO | PREMIA’S MAIN ADVANTAGES The card owner with a differentiated SURPRISES payment experience The card owner through multiple ENGAGES gifts and discounts The promotion according to your needs SEGMENTS (Bank/Card Brand/Card type/Purchasing option: Debit or Credit) The promotion automatically MANAGES reducing operational costs strongly 14
  • 15. CIELO | FIXED DAY AND TIME IT GIVES THE CLIENT A GIFT OR A DISCOUNT ON A SPECIFIC DAY / TIME ADVANTAGES TO CIELO CLIENT IT INCREASES THE RETURN FREQUENCY ON A DAY WITH LOW MOVEMENT 15
  • 16. CIELO | FIXED DAY AND TIME *** CONGRATULATIONS!*** DISCOUNT TO YOU 10% discount At the end of the day On Mondays PRIZE BALANCE -------------------------- EXPIRING DATE: 01/31/2011 16
  • 17. CIELO | INNOVATIVE PRODUCTS  Unprecedented payment solution application in Brazil for iPhone, iPad and iPod touch as well as Android system and Blackberry  Devices used as POS terminal for mobile payment with Visa, MasterCard, American Express and Elo cards 17
  • 18. CIELO | CREDIÁRIO PRODUCT Crediário is a unique and exclusive technology developed by Cielo through which merchants can offer an additional payment method that allows cardholders to pay in up to 48 installments, accessing a pre-approved credit line from their checking accounts through their bank cards. Banco do Brasil and Bradesco made available R$100 billion in credit to the product. In the coming months others banks will join (HSBC and Caixa Ecônomica Federal). 18
  • 19. CIELO | CREDIÁRIO PRODUCT CREDIÁRIO: more advantages to participants MERCHANT • More sales volume: more than 20 million cardholders from BB and Bradesco with pre-approved lines of credit; • Additional payment scheme without directly financing the cardholder; • Better cash flow as funds are received in D+1; • Increase in average ticket; CARDHOLDER • Pre-approved credit line from the bank; • Attractive interest rates; • Additional to credit card’s limit; • Simulation at the point of sale; CIELO • More sales volume; • Merchant Discount Rate similar to credit in installments. 19
  • 20. CIELO | MeS ACQUISITION Cielo acquired 100% of MeS for $670 millionMeS Highlights Rationale• Leading e-Commerce payment services • Enhancement of Technology Platform provider with full range of merchant – Opportunity to leverage MeS’ technology to acquiring, e-Commerce & fraud the Brazilian market and Rest of World management solutions – MeS platform designed to achieve maximum• Proprietary, internet-based, next- scalability, efficiency and reliability at a low generation technology platform with best- cost in-class scalability, analytical capabilities, • E-Commerce Improvement delivery speeds and cost of services – E- Commerce is fastest growth merchant• In-house development of products and category in payments services provides superior transaction – MeS has expertise and proprietary economics across the value chain technology tailored to serving e-commerce merchants• Portable platform with upside for expansion • Strong MeS Financial Performance• Good organic revenue growth, margins and – High organic growth and attractive margins free cash flow• Seasoned management team 20
  • 21. MERCHANT e-SOLUTIONS AT A GLANCE WEB-BASED DELIVERY FULL RANGE OF ACQUIRING, E-COMMERCE & MOBILE PAYMENT SERVICES MERCHANTS AGENT BANKSYear Founded 2000 • End-to-end payment processing • A white-label and fully customizable functionality: business solution:Number of 70,000+ – e-Commerce – Transaction Processing & ReportingMerchants – Business-to-Business – E-Commerce & MobileProcessing $14bn+ – Mobile Commerce – Risk ManagementVolume – Card present and card not – Product & Pricing# of Settled 130mm+ present merchants – Compliance AdministrationTransactions – Recurring Billing – Sales Training and Marketing LTM Net Revenue of – Risk Management – Business Analytics $124 million* * Last twelve months ended May 31, 2012 21
  • 22. CIELO | ORIZON AQUISITION  Founded in 2006  Ownership interest of 40.95%;  Interconnection between healthcare and dental operators and services providers 22
  • 23. CIELO | M4U AQUISITION  Founded in 2000  innovation in the development of technological mobility platforms  largest mobile top up and mobile payment platforms in the country  developed several applications under the most diverse cell phone standards for a wide range of clients in the financial and telecom markets  Founders will continue to head the businessDeal  Announced August 2010  Total amount of R$ 50.1 million  R$ 25.05 million already paid and the other half will be payable after 37 months from the closing date (as long as the contractual targets are met) 23
  • 24. CIELO | Paggo Soluções JV  Combine Oi’s mobile payment experience with Cielo’s coverage and experience with electronic payment networks, in order to create a joint venture to offer acquiring and transaction capture services using mobile devices  Creation of a new company controlled by both Oi and Cielo  Announced September 2010 24
  • 25. CIELO | BRASPAG AQUISITION  Deal announced May 2011  Total amount of R$ 40 million  Founded in 2005  Leader as a gateway for e-commerce in Brazil, with approximately 65% market share  Platform integrates online stores, financial institutions and acquirers, and is responsible for capturing, routing and managing payment transactions with cards, collection slips and online debit 25
  • 26. CIELO | BRASPAG POSITION Acquirers Card Gateways Slip Debit Wallets Banks 26 Source: Company, Broker reports, Cybersource
  • 27. CIELO | ADR Cielo has a sponsored Level I ADR Ticker: CIOXY ADR Ratio (ADR:ORD): 1:1 Depositary bank: Deutsche Bank Trust Company Americas Depositary bank contacts: ADR broker helpline: Tel: +1 212 250 9100 (New York) Tel: +44 207 547 6500 (London) Email: adr@db.com ADR website: www.adr.db.com Depositary bank’s local custodian: Banco Bradesco 27
  • 28. CIELO | AT GLANCE Adjusted Net Operating Revenue (R$ million) CAGR: 4.5% 1.470 1.383 1.400 1.211 1.137 1.148 1.119 1.027 1.049 1.082 1.020 924 863 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 Costs + Expenses ex Subsidiaries (R$ million) 700 1,00 CAGR: 5.0% 0,95 600 565,4 572,2 0,90 0,85 450,3 480,0 469,0 0,80 0,75 412,4 414,6 500 408,2 0,70 370,1 0,65 400 319,1 336,0 342,0 342,0 0,60 0,55 0,50 300 0,41 0,41 0,43 0,44 0,45 0,39 0,39 0,38 0,37 0,35 0,39 0,39 0,38 0,37 0,40 0,35 0,30 200 0,25 0,20 0,15 100 0,10 0,05 - - 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 Costs+ expenses ex subsidiaries Unit Costs + Expenses ex. subsidiaries 28
  • 29. CIELO | HISTORICAL TRACK 160 Multi-brand landscape 150 150 150 148 145 146 140 132 120 123 123 125 125 120 121 122 119 117 118 119 116 110 105 105 105 100 101 103 103 80 84 84 79 79 81 81 79 77 78 77 76 74 77 60 40 20 0 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 Credit Net MDR Debit Net MDR Blended MDR Multi-brand landscape 1.586 1.485 1.524 1.344 1.361 1.372 1.351 1.402 1.286 1.318 1.281 1.293 1.228 1.212 1.264 1.153 1.147 1.153 1.199 1.088 1.133 1.129 1.140 1.085 1.115 1.038 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 # Installed POS Active Merchant in 60 days 29
  • 30. CIELO | FINANCIAL INDICATORS 2Q12 X Financial Indicators 2Q12 2Q11 1Q12 2Q12 X 1Q12 2Q11 Financial Volume (R$ million) 91,720.8 74,622.6 88,081.8 22.9% 4.1% Transaction (million) 1,282.0 1,094.2 1,269.4 17.2% 1.0% Net Revenue * (R$ million) 1,470.1 1,119.3 1,399.5 31.3% 5.0% Cost of Services (R$ million) (407.7) (342.4) (399.1) 19.1% 2.1% Operating Expenses (R$ million) (223.8) (115.4) (125.9) 94.0% 77.7% Unit Costs + Expenses ex subsidiaries (0.44) (0.38) (0.37) 17.8% 20.8% Adjusted EBITDA (R$ million) 914.1 720.2 947.8 26.9% -3.6% Net Income (R$ million) 548.9 423.6 566.6 29.6% -3.1% Blended Net MDR (bps) 102.6 101.2 105.3 1.5 (2.7) Credit Net MDR (bps) 116.1 117.5 118.6 (1.4) (2.6) Debit Net MDR (bps) 78.9 73.7 81.2 5.2 (2.3) 30* Including prepayment of receivables present value adjusted
  • 31. CIELO | OPERATING PERFORMANCE Cielo- Number of Transactions (million) Transaction Financial Volume (R$ million) 17.2% 22.9% 1,302 1,269 1,282 91,721 91,253 88,082 1,1671,094 79,775 74,623 572 1.0% 531 33.150 531 35.219 31.296 4.1% 455 489 29.407 27.802 730 739 751 50.368 56.034 56.786 58.571 639 678 46.821 2Q11 3Q11 4Q11 1Q12 2Q12 2Q11 3Q11 4Q11 1Q12 2Q12 Credit cards Debit cards Credit Debit Cielo- Number of Active Merchants (1 transaction in the last 60 days) 13.4% 1.264 1.212 1.199 1.153 4.3% 1.115 2Q11 3Q11 4Q11 1Q12 2Q12 31
  • 32. CIELO | FAIR SHARE Financial Volume Breakdown (in R$)Considering the 2 main participants , Considering the 3 main participants, Cielo gained 0.9 p.p. quarter-on- Cielo gained 0.5 p.p. quarter-on- quarter quarter131.439 138.985 159.854 145.148 152.430 133.648 141.899 164.034 149.523 157.946 42,3% 42,1% 40,5% 39,8% 38,9% 43,3% 43,3% 42,0% 41,5% 41,0% 57,7% 57,9% 59,5% 60,2% 61,1% 56,7% 56,7% 58,0% 58,5% 59,0% 2Q11 3Q11 4Q11 1Q12 2Q12 2Q11 3Q11 4Q11 1Q12 2Q12 Cielo Redecard Cielo Others Source : Public information, released by the companies Others = Redecard and Santander/GetNet 32
  • 33. CIELO | REVENUE BREAKDOWN Revenue- Activity(%) Credit cards 44,6% 44,6% 43,8% 43,8% 42,0% Debit cards POS Rental 16,6% 16,9% 18,7% 16,5% 16,2% Prepayment of 21,5% 20,4% 19,4% 21,1% 22,0% Receivables 11,0% 11,6% 11,7% 11,6% 12,9% Other revenues 6,3% 6,6% 6,4% 7,0% 6,9% 2Q11 3Q11 4Q11 1Q12 2Q12 33
  • 34. CIELO | REVENUES Commissions Revenues (million) Equipment Rental (R$ million) 24.7% 34.2% 355,8 324,9 955.4 941.2 927.8 1.4% 296,1 823.1 272,3 9.5% 754.9 265,1 286,4 254,1 261,4 226,5 204,8 669,0 673,7 679,7 550,1 596,6 2Q11 3Q11 4Q11 1Q12 2Q12 2Q11 3Q11 4Q11 1Q12 2Q12 Credit DebitMDR 2Q11 3Q11 4Q11 1Q12 2Q12 POS 2Q11 3Q11 4Q11 1Q12 2Q12Net MDR AverageDebit 74 77 81 81 79 Rental 65 65 67 71 75 (R$/month)Net MDRCredit 117 118 119 119 116 Installed POS 1,351 1,402 1,484 1,524 1,586 (thousand) 34
  • 35. CIELO | PREPAYMENT OF RECEIVABLES Revenue of Prepayment of Receivables ex Adjustments (R$ million) 54.2% 212,4 193,1 190,1 159,9 11.7% 137,7 2Q11 3Q11 4Q11 1Q12 2Q1210.000,0 30,0% Prepayment of Receivables (R$ million) 29,0% Average Term (days) 28,0% 9.000,0 27,0% 26,0% 25,0% 8.000,0 24,0% 23,0% 22,0% 58,5 56,0 57,7 7.000,0 6.162,2 21,0% 20,0% 55,8 55,7 19,0% 6.000,0 5.289,9 18,0% 4.899,2 17,0% 16,0% 5.000,0 15,0% 3.894,6 14,0% 13,0% 4.000,0 3.376,9 10,5% 12,0% 9,3% 11,0% 8,7% 10,0% 3.000,0 9,0% 8,0% 7,0% 2.000,0 7,2% 7,7% 6,0% 5,0% 4,0% 1.000,0 3,0% 2,0% 1,0% - 0,0% 2Q11 3Q11 4Q11 1Q12 2Q12 Financial prepayment volume % Prepayment over Credit Financial Volume 2Q11 3Q11 4Q11 1Q12 2Q12 35
  • 36. CIELO | FINANCIAL PERFORMANCE Adjusted EBITDA (R$ million) Net Income (R$ million) 26.9% 29.6% 947,8 600,0 566,6 548,8 60,00% 914,11.000,0 75,00% 839,8 504,5 55,00% 900,0 747,0 500,0 457,5 720,2 70,00% 423,6 -3.1% 800,0 -3.6% 50,00% 400,0 700,0 68% 65,00% 45,00% 600,0 64% 300,0 500,0 62% 60,00% 40,00% 400,0 62% 61% 200,0 41% 55,00% 38% 38% 37% 35,00% 300,0 37% 100,0 30,00% 200,0 50,00% 100,0 0,0 25,00% 2Q11 3Q11 4Q11 1Q12 2Q12 0,0 45,00% 2Q11 3Q11 4Q11 1Q12 2Q12 Net Income Net Margin Adjusted EBITDA Adjusted EBITDA Margin 36
  • 37. CIELO | WHY INVEST?Leader in a fast growing marketStrong balance sheet, highcash generation and lowcapex requirementsMinimum dividend payout of 50% of net profit*distributed twice a yearFocus on innovationand continuous growth* After constitution of legal reserve of 20% of the Company´s capital stock 37
  • 38. Investor Relations Contacts:www.cielo.com.br/riEmail: ri@cielo.com.brPhone.: + 55 11 2596 1701

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