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  • 1. 1
  • 2. Cielo RÔMULO DE MELLO DIAS CEO 2
  • 3. DISCLAIMER The Company makes forward looking statements that are subject to risks and uncertainties. These statements are based on the beliefs and assumptions of our management as well as on information currently available to us. Forwardlooking statements include information regarding our current intent, beliefs or expectations, in addition to those of the members of the Board of Directors and Executive Officers of the Company. Forward-looking statements also include information regarding our possible or assumed future 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 on circumstances that may or may not occur. Our future results and the creation of value to shareholder s may differ significantly from those expressed in or suggested by these forward-looking statements. Many factors determining these results and values are beyond Cielo’s ability to control or predict. 3
  • 4. CIELO GROUP Cielo is a group well focused on capturing new avenues of growth, such as eCommerce and mobile payment E-commerce Mobile Mobile Health Care IT Platform 4
  • 5. MISSION Be the international benchmark solutions and transactional services network. 5
  • 6. INNOVATION AND DIFFERENTIATION STRATEGY Our DNA is made of Innovation… Dedicated team in the company Resources commited to the subject Innovation Forum with participation of several areas Continuous launch/improvement of producs … and the results are striking!! Best e-Commerce platform First Acquirer to launch mobile payment Development of Cielo Premia with total client’s focus Unprecedented Partnership with Facebook 6
  • 7. BRAZILIAN MARKET Consumer Expedinture (R$ billion) 2,249 1,594 1,787 Card Expenditure over Consumer Expenditure (%) 2,499 2,745 1,980 16,4% 723 2007 2008 2009 2010 2011 2012 2Q13 19,9% 25,9% 25,2% 26,3% 2012 1Q13 741 1Q13 18,4% 21,7% 24,1% 2007 2008 2009 2010 2011 2Q13 Card Expenditure (R$ billion)* 710 601 487 262 2007 Source: IBGE,ABECS 329 394 182 2008 2009 2010 2011 2012 1Q13 195 2Q13 7
  • 8. BRAZIL’S FUTURE POSITION PCE% Penetration of cards as a means of payment should reach levels close to (40%) Card Expenditure over Consumer Expenditure (%) MEXICO CHILE BRAZIL INDIA ARGENTINA TURKEY USA UK CANADA SOUTH KOREA 83,6% 80,5% 54% 54,2% 53,5% 38% 23,7% 24,1% 25,9% 27,2% 28,8% 32,2% 31,8% 55% 40% 34,9% 29,8% 19,7% 8,8% 9,8% Source: Datamonitor analysis, BIS, World Bank, Abecs, BACEN, US Census Bureau 2011 2012 8
  • 9. UNIQUE BUSINESS MODEL Competitors adopted a position based on the bank-acquirer model BANK ACQUIRER Company delisting Cielo acts jointly with partner banks to fight this model Joint Strategy Acquisition of controlling interest Development of combined offers and actions to customers Greater Distribuition Incorporation of the Acquiring operation
  • 10. CIELO’S HIGHLIGHTS 1S13 2013 STRATEGY ACTIONS FOR EXCELENCE POS software Update, faster transactions and modern menus Enhancement of information available to customers Improvement of new customer registration process 10
  • 11. CIELO’S HIGHLIGHTS 1S13 ACTIONS FOR EXCELLENCE POS Software Update, faster transactions and modern menus Old New In June 2013, Wireless POS became more relevant than Wired POS Wired POS 90% 82% 62% 38% Wireless 10% POS 52% 48% 18% 11
  • 12. EXPECTATION AN EVEN MORE CHALLENGING SCENARIO FOR CIELO GREATER COMPETITION Challenging Scenario with competitors Relevant hiring by both traditional players as well as new players Competitors growing with regional action Entrance announcement of new local competitors on acquiring business Announcements of Partnerships between banks and new players 12
  • 13. STATISTIC CHALLENGE QUARTERLY GROWTH ON FINANCIAL CAPTURED VOLUME BY CIELO 26,8% 22,9% 19,5% “LAW OF LARGE NUMBERS” 12,5% 1Q12 2Q12 3Q12 4Q12 14,2% 11,6% 1Q13 2Q13 In inspite of the 1S13 improvement, Cielo is challenged to grow on a historically high captured financial volume basis The share of cards in the PCE* consumption grows at lower rate, despite recent acceleration in 2Q13 13
  • 14. RECENT EVOLUTION OF REGULAMENTARY SCENARIO MAIN MOVIMENTS AND EXPECATIONS Discussions for interchange: USA New discussion of Durbin Amend, cap reduction from $0,21 to $0,12 for debit EUROPA European Comission debates on taxs limitation in 0,2% for debit and 0,3% for credit Law 12.865 Defines Bacen as regulator for the electronic payment industry
  • 15. INTERESTING NAME INTERNATIONALLY CIELO IS WELL POSITIONED AMONG THE INTERNATIONAL LISTED PLAYERS IN THE CARD BUSINESS UNIVERSE Company Mkt Cap (US dollars P/E EPS Growth EV/EBITDA Dividend Yield 2013 2014 2013 2014 2013 2014 2013 2014 Acquirers Cielo 23.529,0 18.5 16.9 3.39 3.71 13.0 11.9 3.33% 4.6% Vantiv 5.290,0 16.9 14.7 1.58 1.82 11.9 10.5 0 0 Global Payments 4.347,0 17.4 13.4 4.02 4.39 8.9 8.3 0.15% 0 1.562,0 19.8 17.4 1.96 2.23 10.1 9.0 0.72% 0.7% American Express 86.644,0 15.0 13.6 4.87 5.35 - - 1.26% 1.3% Visa 156.625,0 24.0 20.5 7.59 8.9 18.4 16.4 0.71% 0.9% Mastercard 87.415,0 25.0 21.3 26.16 30.72 14.8 13.0 0.36% 0.4% Discover 24.794,0 9.9 9.8 4.9 5.0 9.0 9.7 1.61% 1.9% Fidelity 13.869,0 16.0 14.4 2.83 3.14 9.4 8.9 1.92% 1.7% Total System Services 16.7 14.1 1.7 2.02 8.7 7.1 1.38% 1.4% 5.730,0 Verifone 2.483,0 15.5 14.3 1.43 1.56 10.2 9.9 n.a. n.a. Paychex 15.649,0 23.4 21.8 1.69 1.81 9.2 8.7 3.53% n.a. Linx 1.816,0 20.7 17.8 1.73 2.01 13.9 12.2 1.9% 2.4% Totvs 6.039,0 25.8 21.2 1.5 1.83 19.1 15.8 0.33% 2.0% Heartland Payment Cards Associations Transaction Processing Software EV and Price Multiples calculated using price as of 10/24/13 FX: BRL 2.18 (25/10/13) SOURCE: Thomson Reuters 15
  • 16. EVOLUTION OF MARKET SHARE PRICE SINCE THE IPO (INCLUDING DIVIDENDS MARKET PRICE (FROM June/29/09 up to Oct/24/13) % variation Up to 10/17/12 Up to 10/24/13 Up to 12/28/12 300 +183.9% +80.9% 250 Até 10/17 +98.6% Até 12/28 200 +31.9% Até10/17 150 +9.2% 100 +26.8% +28.8% Até 10/17 Até 12/28 CIELO REDE BOVESPA Base 100: 06/29/09 (Incluing dividends) out/13 jun/09 jul/09 ago/09 set/09 out/09 nov/09 dez/09 jan/10 fev/10 mar/10 abr/10 mai/10 jun/10 jul/10 ago/10 set/10 out/10 nov/10 dez/10 jan/11 fev/11 mar/11 abr/11 mai/11 jun/11 jul/11 ago/11 set/11 out/11 nov/11 dez/11 jan/12 fev/12 mar/12 abr/12 mai/12 jun/12 jul/12 ago/12 set/12 out/12 nov/12 dez/12 jan/13 fev/13 mar/13 abr/13 mai/13 jun/13 jul/13 ago/13 set/13 50 Source: Reuters, Ibovespa 16
  • 17. INVESTIMENT CASE Leader in a growing market Strong balance sheet, high cash generation and low capex requirements Minimum dividend pay out of 50% of net profit* distributed twice a year Focus on innovation and continuous growth * After constitution of legal reserve of 20% of the Company´s capital stock 17
  • 18. 2013 ARWARDS 1st place in the Services category in the ranking “Best and Biggest”, awarded by Exame Magazine for the 7th consecutive year Best company in the Financial Services category in the year book “Época Negócios 360º”, awarded by Época Negócios Magazine – awarded for the 2nd consecutive year Best company in the Financial Services category in the ranking “The Best From Dinheiro 2013”, awarded by Istoé Dinheiro Magazine - awarded for the 3rd consecutive year 1st place in the Financial Services category among the most innovative companies in the customer relationship, according to ranking in the Consumidor Moderno Magazine / Dom Strategy Partners Included among the 20 most valuable brands in Brazil in the ranking from Istoé Dinheiro Magazine in partnership with BrandAnalytics/Millward Brown Elected one of the 150 Best Companies to Work, in the ranking of Você S/A Magazine (by Great Place to Work Insitute) - awarded for the 13th consecutive year The Company was chosen among the "Best Places to Start a Career" by the guide in Você S/A Magazine for the 3rd consecutive year 2nd place in the ranking “The Best in People Management”, in the category from 1.001 up to 2.000 employees, in the ranking of Valor Econômico and Aon Hewitt 1st place in the Financial Instituitions category (except for banks) in the ranking 2013 Latin America Executive Team, in the Institutional Investor magazine: Best Investor Relations team, Best CEO and Best CFO, chosen by both the sell side and the buy side, and best IR Prodessional, by the buy side 18
  • 19. Cielo ROMULO DIAS CEO INVESTOR RELATIONS www.cielo.com.br/ri E-mail: ri@cielo.com.br Phone: + 55 11 2184 7722 19