2. Disclaimer
● This material is a presentation of general background information about Multiplus S.A. (“Multiplus") as of the date of this presentation. Information contained
herein has been summarized and does not purport to be complete. This presentation shall not be considered to be investment advice by potential investors.
This presentation is strictly confidential and may not be disclosed to any third person. There are no representations or warranties, express or implied,
regarding the accuracy, fairness, or completeness of the information presented herein, and such information shall not support any investment decision.
● This presentation contains statements and information that are forward-looking pursuant to Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements and information are only predictions and cannot assure Multiplus's
future performance. Investors have been cautioned that any such forward-looking statements and information are subject to many risks and uncertainties
relating to the operations and business of Multiplus and its subsidiaries. As a result of such risks and uncertainties, the actual results of Multiplus and its
subsidiaries may be materially different from any future result expressed or implied in the forward-looking statement or information contained herein.
● Although Multiplus believes that the expectations and assumptions reflected in the forward-looking statements and information are reasonable and have been
based on data currently available to its officers and directors, Multiplus cannot guarantee future results or events. Multiplus does not assume the commitment
of update any of the forward-looking statement or information.
● Securities may not be offered or sold in the United States unless they are registered or exempt from registration under the Securities Act of 1933, as
amended. Any offering of securities to be made in the United States will be made by means of an offering memorandum that may be obtained from the
underwriters. Such offering memorandum will contain, or incorporate by reference, detailed information about Multiplus and its subsidiaries, their business
and financial results, as well as its financial statements.
● This material is for distribution only to persons who (i) have professional experience in matters relating to investments falling within Article 19(5) of the
Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended, the "Financial Promotion Order"), (ii) are persons falling within
Article 49(2)(a) to (d) ("high net worth companies, unincorporated associations etc") of the Financial Promotion Order, (iii) are outside the United Kingdom, or
(iv) are persons to whom an invitation or inducement to engage in investment activity (within the meaning of section 21 of the Financial Services and Markets
Act 2000) in connection with the issue or sale of any securities may otherwise lawfully be communicated or caused to be communicated (all such persons
together being referred to as "relevant persons"). This material is directed only at relevant persons and must not be acted on or relied on by persons who are
not relevant persons. Any investment or investment activity to which this material relates is available only to relevant persons and will be engaged in only with
relevant persons.
● This presentation does not constitute an offer, or invitation, or solicitation of an offer, to subscribe for or purchase any securities. Neither this presentation nor
anything contained herein shall form the basis of any contract or commitment whatsoever.
2
3. Highlights
Initial public offering - IPO
• Total value: R$ 692 million • Total number of shares issue:
43,274,000
• Net value: R$ 662 million
• Use of funds:
• Price per share: R$ 16.00
Advance payment for purchase of TAM
• Free Float: 26.83%
Airlines tickets for future delivery: R$ 622
million
Variação da Ação
Volume
%
R$ (million)
125 90
MPLU
120 80
IBOV 116.81
70
115
60
110 50
40 110.07
105
30
100
20
95 10
90 0
4-feb
8-feb
10-feb
12-feb
18-feb
22-feb
24-feb
26-feb
2-mar
4-mar
8-mar
10-mar
12-mar
16-mar
18-mar
22-mar
24-mar
26-mar
30-mar
3
4. Multiplus: Corporatization Movement of TAM Group
Corporatization of TAM S.A. Rational for Spin Off and IPO
● Unlocking value on TAM
● Management focus
Airlines
− Management focusing in
Passengers Loyalty Programs
Coalition drivers of business
Transportation
significantly different than the
ones from the airline
● Increase loyalty of less frequent
travelers
● Offer the loyalty program
MRO experience to the commercial
partners
Tourism
Maintenance
Operator
Cargo ● To reach the economic C class
consumers, who are beginning to
Air Cargo fly
Company
Business Line
● Increase load factor in flights with
lower demand 4
5. Investment Highlights
Flexible
Business Model
with High 1
Growth Potential
Exclusive and Broad and
Strategic Diversified
Relationship Partnership
with the Largest 5 Network with 2
Airline in Latin Leading
America Companies
Exposure to the
Consumer
High Corporate
market, Payment
Governance 4 industry and Air 3
Standards
Transportation
Sectors
5
6. Flexible Business Model Allows for Multiples Growth
Opportunities
Business Model Advantages
Higher Value Added
Accrual Coalition Outsourcing CRM
● Flexibility to reach more
● Flexibility to reach more
Partner
C
sectors and companies
sectors and companies
Partner Partner
D B
CRM
Program Program
● Increases the
● Increases the
A
Partner Partner Partner
A A A Partner
A
attractiveness of partners’
attractiveness of partners’
loyalty program by
loyalty program by
Partners buy Two-way flow: Multiplus as the Multiplus
points from exchange of loyalty program leverages the
Multiplus to points (buy and of the partner database from its
connecting it to Multiplus
connecting it to Multiplus
award its sell) between network and
customers Multiplus and offers CRM
coalition services
partners
Flexible business model that boosts growth opportunities through the creation and
connection of loyalty programs
6
7. Multiplus’ Business Model
Accrual
Cash In (sales of points to partners)
Partners with
standalone programs
Product Standalone
Buy and Earn Points Accrual Convert
Services Program
Client Partners without
program
Product
Buy and Earn
Services
Redemption
Cash Out (purchase of points, products and services from partners and suppliers)
Points of
the programs Products
Convert redeem and
from coalition services
partners
Products
or services
redeem
from coalition
partners
redeem Catalogue
7
8. Broad and Diversified Partners Network
NON
EXHAUSTIVE
Financial Institution
Financial Institution
Coalition Partners
Coalition Partners Travel partners
Travel partners Other partners
Other partners
Partners
Partners
Airlines
High penetration potential in several other industries: financial, retail,
High penetration potential in several other industries: financial, retail,
clothing, education, public sector, corporate programs, etc
clothing, education, public sector, corporate 8
9. Growth Opportunities
Increasing Consumer Market with Growing
Credit Card Usage Expansion
Income and Consumption
Final consumption (R$ billions) Credit Card Expenditures (R$ billions)
CAGR 22%
CAGR 11%
309
2,401 2,500
2,133 256
1,904 215
174
142
2006 2007 2008 2009 2006 2007 2008 2009 2010
Source: IBGE Source: ABECS
GDP per capita Passengers Domestic Market (Brazil)
000’ US$ per capita, 2009E RPK’s
46.4 56
42.1
35.7
48
44
16.4 40
7.7 8.4
Brazil Turkey South Korea UK France USA 2006 2007 2008 2009
Source: FMI Growth
(%YoY)
12% 10% 9% 17%
Source: ANAC
9
10. High Corporate Governance Standards
1 Operational Agreement Sale and Purchase Agreement of Air Tickets
Sale and Purchase Agreement of Air Tickets
Operational Agreement 2 in Advance
in Advance
● The technical reserve of its main redemption
● 15-year operational agreement with TAM Airlines,
product enhances the Multiplus’ corporate
contractually assuring the economic-financial
governance
equilibrium between the parties:
Multiplus is responsible for the exclusive
3 Incentives
Incentives
management and operation of the TAM Fidelidade
loyalty program ● Multiplus executives’ compensation is only linked
to Multiplus’ results
● Market regulation – mutual dependency between
● A stock option plan to employees will be
Multiplus and TAM Airlines
established according to market practices
Multiplus is the largest client of TAM Airlines,
whereas TAM Airlines is the Multiplus’ largest
supplier 4 Highest Corporate Governance Standards
Highest Corporate Governance Standards
Shared services agreement
● Novo Mercado listed in Bovespa
● Exchange ratio between points and TAM’s Airlines air Regulates minority rights
tickets ● 100% tag along to all shareholders
10
11. Exclusive and Strategic Relationship with TAM Leads
to Significant Competitive Advantage
Operational Agreement Assures the Most Appealing Products to the Members = Air Tickets
Operational Agreement Assures the Most Appealing Products to the Members = Air Tickets
Airlines
● Leading airline in the Brazilian market and largest airline in Latin America
● Only Brazilian company with long haul flights
● Most Desired Airline in Brazil – Ibope Research
● High penetration in South American flights
● There is no restriction to redeem points in domestic and within South America flights
● Access to Star Alliance benefits (over 1,000 destinations)
● 15 years tenor Operational Agreement (automatically extended for additional five-year periods )
Detachment from cost and perceived value with the most appealing product to the public
Detachment from cost and perceived value with the most appealing product to the public
11
12. Income Statement
1st Quarter 2010
R$ thousand
Gross revenue 44,989
Taxes on sales (4,202)
Net revenue 40,787
Cost of the points redemptions (21,719)
Operating Expenses (8,126)
Total Operating Expenses (29,846)
Operating Income 10,942
Operating Margin 26.8%
Financial Income/Expenses 326
Income before Income tax and social 11,268
contribution
Income tax and social contribution (3,788)
Net Income 7,480
Net Margin 18.3%
12
13. Adjusted EBITDA
1st Quarter 2010
R$ thousand
Income before Income tax and social 10,942
contribution
Depreciation and Amortization 0
Change in deferred revenue:
Gross billings from the sale of points 230,276
Taxes Sales Discount (17,214)
Revenue from the sale of Points (44,179)
Change in Future Redemption Costs (99,126)
Adjusted EBITDA 80,699
Adjusted EBITDA Margin 35.0%
13
14. Operational and Financial Highlights Pro Forma (1/3)
Number of Points Issued Number of Points Redeemed
In billions In billions
15%
6.6 6.6
10.5
9.1
1Q09 1Q10 1Q09 1Q10
Quantity of Participants Breakage Rate
Multiplus Participants (mm) %
20% 1 p.p.
31%
30%
6.9
5.8
1Q09 1Q10 1Q09 1Q10
14
15. Operational and Financial Highlights Pro Forma (2/3)
Gross Billings Net Revenues
R$ million R$ million
2%
-8%
250.9 208.3 212.1
230.3
1Q09 1Q10 1Q09 1Q10
Redemptions costs
Adjusted EBITDA Total Costs and Operating Expenses
R$ million R$ million
-6% -8%
122.2
0.4 134.1
115.0 123.5
1Q09 1Q10 1Q09 1Q10
Air tickets Other partners
15
16. Operational and Financial Highlights Pro Forma (3/3)
Adjusted EBITDA and Adjusted EBITDA
Net Income
Margin
R$ milhões R$ milhões
20% -27%
58.7
100
48.9
73.1
Margin 24% 28% 38% 31%
1Q09 1Q10 1T09 1T10
16
17. Cash Reconciliation
Cash Reconciliation R$ million
69
62
249
86
118
2 30
Cash and Investments Amounts Net Cash Flow Account Related Total Received
cash Received in Receivables Parties and
equivalents April 2010 receivable Receivable
1Q10
18. Multiplus Growth Strategy
Expand Our Commercial Partners Network, Attracting Additional Members and Broadening
Expand Our Commercial Partners Network, Attracting Additional Members and Broadening
1 Targeted Social Classes
Targeted Social Classes
2 Expand Redemption Options, Focusing on Higher Margin Goods
Expand Redemption Options, Focusing on Higher Margin Goods
Enhance Partners Database and Expand Our Products Offer with
Enhance Partners Database and Expand Our Products Offer with
3 Differentiated Services
Differentiated Services
Develop Multiplus’ Capacity to Award and Allow Redemption at the
Develop Multiplus’ Capacity to Award and Allow Redemption at the
4 Partners’ Point of Sales, Creating an “Alternative Payment
Partners’ Point of Sales, Creating an “Alternative Payment
Solution”
Solution”
18
