Apimec 2013 20130711_vf_eng_rev
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Apimec 2013 20130711_vf_eng_rev Apimec 2013 20130711_vf_eng_rev Presentation Transcript

  • APIMEC CIELO 2013 July 11, 2013
  • 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. Forward-looking 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. 2
  • CLÓVIS POGGETTI JUNIOR CFO and IRO
  • #1MERCHANT ACQUIRER AND PAYMENT PROCESSOR IN BRAZIL AND LATIN AMERICA PRESENTIN MORETHAN OF BRAZILIAN MUNICIPALITIES MARKET CAP – AMONG 10 LARGEST IN IBOVESPA BRL 44 BILLION*99.6% CIELO | BRAZIL’S LEADING MERCHANT ACQUIRER (*) Closing as of 07/08/13 4
  • CIELO | AT A GLANCE Market Leader Fully Integrated Business Model Controlling Shareholders Large Scale Company Strong Growth High Margins • 49% market share1 • Acquirer, processor and clearing house • Main shareholders among the largest card issuers • R$5.6 billion net operating revenues in 2012 • Sustainable growth of financial volume in the long term • ~ 50% EBITDA Margins • ~ 38% Net Income Margins (1) Market share based on aggregated ABEC’s, regarding the companies’ financial volume in the sector (including private label) considering first half of 2012. 5
  • 1995 4 Financial Institutions 2009 2010 June 2009 Visa’s preferential merchant acquirer IPO of R$ 8.4 billion + Multi brand scenario CIELO | HISTORY 6
  • 786,115,469 common shares 7 CIELO | OWNERSHIP 28.6% 28.6% 42.4% 0.3% Banco Bradesco Banco do Brasil Free-float Treasury
  • CIELO | A DIFFERENTIATED STORY Electronic Means of Payment Penetration Leader in a growing and unique market Strong bank distribution Resilient Growth and Profitability Differentiation and Innovation Experienced Management Team 8
  • BRAZILIAN MARKET| GROWING AND UNIQUE Unique Credit Product • Credit in Installments product which represents 1/3 of our total financial volume Fully Integrated Business Model • Present in the whole value chain: affiliation, capturing, processing and settlement Prepayment of Receivables • Relevant business capturing 10%+ of total credit volume Industry Structure • Strong concentration as a consequence of the concentration in the banking business 9
  • CIELO | BANKING DISTRIBUTION Brazil has a total area of 8.514.876 km NUMBER OF BRANCHES Others Total NORTH 312 277 96 37 158 40 0 0 2 0 56 978 NORTHEAST 1,166 845 308 200 597 56 3 7 9 0 193 3,384 MIDWEST 481 344 288 100 267 104 1 6 6 67 101 1,765 SOUTHEAST 2,370 2,418 2,531 1,904 1,382 430 7 103 71 2 678 11,896 SOUTH 1,065 784 636 366 624 237 468 10 16 0 254 4,460 TOTAL 5,394 4,668 3,859 2,607 3,028 867 479 126 104 69 1,282 22,483 Banking distribution is the main barrier to new players 45% of the affiliations occur through Cielo Source: BACEN (Brazilian Central Bank), May 2013 10
  • CIELO | DIFFERENTIATION AND INNOVATION ¹¹ ¹ Currently available only through Cielo’s network SERVICES ¹¹ CREDITEDEBIT 11
  • Launching of the new e-commerce platform Acquisition of M4U Joint Venture Oi and Cielo Launching of Cielo Mobile Sistema iOS Acquisition of Braspag Launching of Cielo Mobile Android November 2010 June 2011 August 2010 May 2011 March 2012 September 2012 Partnership with CyberSource Acquisition of Me-S January 2010 September 2010 November 2012 Launch of Facebook’s solution on Cielo’s equipments 12 CIELO | FOCUS ON INNOVATION Partnership with Planet Payment
  • ROGÉRIO FERNANDES SIGNORINI PRODUCTS AND INNOVATION DIRECTOR
  • DIFFERENTIATION | CIELO’S FOCUS CIELO PREMIA Cielo’s offering is the most complete in the market including some unique products CIELO FIDELIDADE CIELO CREDIÁRIO CIELO LINKCI • Loyalty program developed exclusively to merchants • Largest B2B in Latin America • Accrual of points based on merchant’s volume with Cielo • Most flexible and the easiest to use promotional marketing tool in the market • Can be offered to merchants, brands and issuers • 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 • Allows the merchant to offer check-in solution to its customers and the possibility to develop free advertising • Allows the cardholder to recommend its favorite locals and redeem rewards 14
  • CIELO | CIELO MOBILE INITIATIVES 15 33% 20.5% 18.3% 10.6% 6% SERVICES HEALTH RETAIL CLOTHING ELECTRONICS 203 MIL DOWNLOADS203 THOUSAND DOWNLOADS Mobile 2011 2012 yoy 29,766.7 94,298.5 2,167 Financial Volume (thousands of R$) May/12 May/13 yoy Number of Accredited POS 13,000 72,076 454.4%
  • CIELO | CIELO ECOMMERCE INITIATIVES 16 9% 91% 2012 21% 79% 2020 e-commerce Cielo CIELO’S ECOMMERCE SHARE Revenue Increase
  • CIELO| NEW TECHNOLOGIES Cielo invests in new technologies for capturing devices we make available to our merchants • Wireless POS terminals (GPRS)  Corresponds to 49% of Cielo’s installed basis;  Strong demand from our merchants. • NFC (Near Field Communication)  Up to now, 650 thousand terminals installed with this new technology. 17
  • FINAL CONSIDERATIONS
  • CIELO | RESILIENT GROWTH AND PROFITABILITY * Numbers impacted by the consolidation of Me-S numbers (Merchant-e Solutions) starting on 4Q12 19 Costs + Expenses
  • OUTLOOK | SOME KEY CONSIDERATIONS • Brazilian Central Bank as the official regulator should issue rules for the sector. Regulatory Environment • New business model (mono-line) adopted by second largest player; • New players gaining market share. Competitive Scenario • Economic activity remains uncertain; • Inflation impacts. Macroeconomic Scenery 20
  • CIELO | 2013 PERSPECTIVES 21 CHALLENGING SCENARIO FOR CIELO STATISTICAL CHALLENGES AND INCREASED COMPETITION Cielo has the challenge to grow in relation to a historically high revenue basis Challenging scenario with existing competitors Usage of cards in household consumption grows at a slower pace Redecard restructuring Santander aggressiveness Elavon: start of operations and gaining new clients First Data: hiring news Global Payments: hiring of accrediting professionals Statistical challenges Increased competition Banrisul’s strong regional presence
  • CIELO | 2012/2013 AWARDS 22 Melhores & Maiores Awarded by: Exame Magazine Awarded for the seventh consecutive time as the best business in the Specialized Services segment Anuário Época Negócios 360º Awarded by: Época Negócios Magazine Awarded as the best business in the Financial Services segment 150 best companies to work for Awarded by: Você S.A. Magazine and Exame Magazine Cielo was elected for the 12th consecutive time and also highlighted in the Best Practices - Strategy and Management category The Best in People Management Awarded by: Valor Econômico Newspaper and Aon Hewitt Cielo ranked second place in the 1001 to 2000 employees group Best Companies to start career Awarded by: Você S.A. Magazine Brazil's Most Valuable Brands – 19º place Awarded by: IstoÉ Dinheiro Magazine, BrandAnalytics/Millward Brown Most profitable Company Awarded by: Exame Magazine Awarded as the most profitable Company in Brazil In the last 5 years As Melhores da Dinheiro Awarded by: IstoÉ Dinheiro Magazine Awarded for the second consecutive time as the best business in the Financial Services segment
  • CIELO | 2012/2013 AWARDS 23 1st place – 2012 Latin America Executive Team Awarded by: Investidor Institucional Magazine Best Investor Relations by a Latin American company in the US market Awarded by: IR Magazine Brazil‘s most admired HR Awarded by: Gestão RH Editora Ponto Extra Trophy Awarded by: APAS - São Paulo’s Association of Supermarkets The first place was achieved by Cielo executives (CFO, IR and CEO) considered highlights in their respective positions for Sell Side and Buy Side analysts.
  • CIELO | INVESTMENT HIGHLIGHTS Leader in a growing market 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 * 5% for legal reserve constitution , up to 20% of the Company´s capital stock. 24
  • CIELO 25APIMEC’S 5 year assiduity Silver Seal - 2013
  • INVESTOR RELATIONS www.cielo.com.br/ri E-mail: ri@cielo.com.br | PHONE: + 55 11 2184 3739/40/41