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APIMEC/SP - Presentation
 

APIMEC/SP - Presentation

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    APIMEC/SP - Presentation APIMEC/SP - Presentation Presentation Transcript

    • APIMEC - SPJuly 31, 2012
    • 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
    • CIELO | HIGHLIGHTS 2Q12 x 2Q11Net Income totaled R$ 548.9 million ,+29.6% and Net Margin of 37.3%;Adjusted EBITDA totaled R$ 914.1 million,+26.9% and Adjusted EBITDA Margin of 62.2%;Transaction financial volume , according to market criterion totaled, R$ 93.1 billion,+22.9% and Transaction financial volume, according to accounting criterion, totaled R$ 91.7billion, +22.9% Credit R$ 58.6 billion, +25.1% Debit R$ 33.1 billion, +19.2%Net Operating Revenue + prepayment of receivables totaled R$ 1.5 billion, +31.3%Equipment Rental totaled R$356.0 milhões, +34.2% OthersCielo announced an agreement for the acquisition of 100% of the capital stock of U.S. company Merchante- Solutions (MeS)Cielo launches Crediário in partnership with Banco do Brasil and BradescoCielo wins the “Best and Biggest” award from Revista Exame for the sixth consecutive year as the bestSpecialized Services company. Also chosen for the second year as “One of the Best Companies to Startyour Career” by the Você S/A magazine guide, in addition to being included for the second time amongthe 20 most valued brands in Brazil according to a ranking by BrandAnalytics/Milward Brown released by 3Istoé Dinheiro magazine
    • 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). 4
    • 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. 5
    • CIELO | MeS ACQUISITION Agreement to acquire 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 6
    • 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 $124 million* * Last twelve months ended May 31, 2012 7
    • CIELO | FINANCIAL INDICATORS 2Q12 X Financial Indicators 2Q12 2Q11 1Q12 2Q12 X 1Q12 2Q11 Financial Volume (R$ 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) 8* Including prepayment of receivables present value adjusted
    • 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 9
    • CIELO | REVENUES Commissions Revenues (R$ 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$/month)Net MDRCredit 117 118 119 119 116 Installed POS 1,351 1,402 1,484 1,524 1,586 (thousand) 10
    • CIELO | PREPAYMENT OF RECEIVABLES Revenue of Prepayment of Receivables ex Adjustments (R$ 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 11
    • CIELO | COSTS Costs of services rendered Depreciation and amortization Unit per transaction Costs Comparison 2Q12 X 2Q11 (R$ million) 407.7  Reduction of 5.3% of the unit 11.0% cost excluding the subsidiaries 73,8 334.9 301.8 and the additional brands fee 50,7 73,8 22,1 57,7  If the impact of depreciation is 333,9 261,1 eliminated in the same 244,1 analysis, the reduction would have been 8.7% 2Q12 Reported Costs related to Additional brands fee 2Q12 Adjusted 2Q11 Adjusted subsidiaries -5.3% 0.318 0.040 0.017 0.261 0.276 Costs Comparison 2Q12 X 1TQ2 (R$ million) 407.7  Increase of 2.0% of the unit 3.0% 73,8 362.8 352.3 cost excluding the subsidiaries 50,7 73,8 and the additional brands fee 5,8 71,8  If the impact of depreciation is 333,9 289,0 280,5 eliminated in the same analysis, the increase would have been 2.0% 2Q12 Reported Costs related to Additional brands fee 2Q12 Adjusted 1Q12 Adjusted subsidiaries 0.318 0.040 +0.005 0.283 2.0% 0.278 12
    • CIELO | EXPENSES Operating Expenses- 2Q12 X 2Q11 (R$ million) 55,9 33,9 In both comparisons 0,6 2,6 15,4 223,8 (2Q12 x 2Q11 and 2Q12 x 1Q12), the 115,4 main impact for the 2Q11 Depreciation and Personnel General and Other Expenses Sales and 2Q12 increase was due to Amortization Administratives Marketing sales and marketing Expenses expenses (with the realization of some Operating Expenses- 2Q12 X 1Q12 (R$ million) initiatives and campaigns that were postponed from 1Q12 and the 54,0 incentives paid to 22,4 partner banks due to 20,8 0,0 0,7 223,8 shared sales and 125,9 marketing expenses.) 1Q12 Depreciation Personnel General and Other Expenses Sales and 2Q12 and Administratives Marketing Amortization Expenses 13
    • 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 14
    • ri@cielo.com.br+ 55 11 2596 1701
    • CIELO S.A.