Investor PresentationDecember 2012
DisclaimerThis notice may contain estimates for future events. These estimates merely reflect the expectations of theCompa...
Innovative business modelMultiple growth driversDiversification goalsDriving value to members and partnersBranding, innova...
Coalition model: an evolution from traditional loyalty scheme Single loyalty scheme             Coalition loyalty scheme  ...
Strong partnership network Accrual partners     Coalition partners   Redemption partners 5
Created from TAM Fidelidade, Multiplus has alreadyexpanded its network in the last two years…                             ...
Much more than points…     Brazilian largest loyalty          Designs, builds and     network, with more than       manage...
Coalition                                           THREE SOURCES OF PROFIT           points selling                      ...
Analytics and Proprietary Loyalty                                                  50%                                   5...
A young company with great track record                                         Solid growth                              ...
Innovative business modelMultiple growth driversDiversification goalsDriving value to members and partnersBranding, innova...
Domestic consumption growth                                                                                        399    ...
Brazil’s wealth distribution improveSocial classes in Brazil (% of the population)     A and B     C                      ...
Credit card usage increase                                                                                                ...
Air transportation growth                                                                                                 ...
Brazilian loyalty industry in early stages Penetration of loyalty programs in total population (%) 60,7%         43,8%    ...
Innovative business modelMultiple growth driversDiversification goalsDriving value to members and partnersBranding, innova...
Long term goals Gross billings                         Current                          Long term target               Inc...
Breakage rate is declining slowly as expected while non-airredemptions become robust                                      ...
Innovative business modelMultiple growth driversDiversification goalsDriving value to membersand partnersBranding, innovat...
Two side market: members and partners                 10.5Members, in R$ million mn members can gather                    ...
Generate value to members and partners will sustaingrowth Adding value to partners                     Creating a good mem...
Adding value to partners: sales increase 25
Adding value to partners: vacancy management 26
Adding value to partners: new clients 27
Creating a good member experience: fair pricing               32-Inch LED TV               Multiplus       Program B     P...
Creating a good member experience: targeted offers 29
Creating a good member experience                                  redemption                                             ...
Innovative business modelMultiple growth driversDiversification goalsDriving value to members and partnersBranding, innova...
Branding a very new conceptStrategy                            Functional                                       Emotional ...
Marketing campaign (1/4) 33
Marketing campaign (2/4) 34
Marketing campaign (3/4) 35
Marketing campaign (4/4) 36
Innovation                                                                                  We are here                   ...
Knowledge: finding the next best offer Member                                                                   Portfolio ...
Innovative business modelMultiple growth driversDiversification goalsDriving value to members and partnersBranding, innova...
High corporate governance standards       Novo Mercado (New Market)           Ordinary share only                100% tag ...
Good results                   R$491,4 million in Gross Billings in the 3Q12, a 23,7% High Growth                   growth...
Contact IR Team+55 11 5105 1847invest@multiplusfidelidade.com.brwww.multiplusfidelidade.com.br/ir
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Investor Presentation - December

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Investor Presentation - December

  1. 1. Investor PresentationDecember 2012
  2. 2. DisclaimerThis notice may contain estimates for future events. These estimates merely reflect the expectations of theCompany’s management, and involve risks and uncertainties. The Company is not responsible for investmentoperations or decisions taken based on information contained in this communication. These estimates aresubject to changes without prior notice.This material has been prepared by Multiplus S.A. (“Multiplus“ or the “Company”) includes certain forward-looking statements that are based principally on Multiplus’ current expectations and on projections of futureevents and financial trends that currently affect or might affect Multiplus’ business, and are not guarantees offuture performance. They are based on management’s expectations that involve a number of business risksand uncertainties, any of each could cause actual financial condition and results of operations to differmaterially from those set out in Multiplus’ forward-looking statements. Multiplus undertakes no obligation topublicly update or revise any forward looking statements.This material is published solely for informational purposes and is not to be construed as a solicitation or anoffer to buy or sell any securities or related financial instruments. Likewise it does not give and should not betreated as giving investment advice. It has no regard to the specific investment objectives, financial situationor particular needs of any recipient. No representation or warranty, either express or implied, is provided inrelation to the accuracy, completeness or reliability of the information contained herein. It should not beregarded by recipients as a substitute for the exercise of their own judgment.
  3. 3. Innovative business modelMultiple growth driversDiversification goalsDriving value to members and partnersBranding, innovation and knowledgeInvestment case
  4. 4. Coalition model: an evolution from traditional loyalty scheme Single loyalty scheme Coalition loyalty scheme Commercial partners • access to consumer bases from other segments • possibility of promotional actions with other partners Members • better accumulation power • more redemption options 4
  5. 5. Strong partnership network Accrual partners Coalition partners Redemption partners 5
  6. 6. Created from TAM Fidelidade, Multiplus has alreadyexpanded its network in the last two years… Apr/2012 Dez/2012 Multiplus Multiplus reaches 10 mn becomes one of members Out/2011 TOP 100 most Multiplus liquid stocks present its in Bovespa new brand Feb/2010 Multiplus’ IPO1993Creation of Sep/2012TAM Fidelidade Non-air redemptions Mar/2012 surpasses 6% for the Multiplus first time in a quarter Nov/2011 reaches 200 Announcement partners of JV with AIMIA Aug/2010 New headquarters 2009 and IT loyalty platform Spin-off from TAM Fidelidade 8
  7. 7. Much more than points… Brazilian largest loyalty Designs, builds and network, with more than manages customer and 10.5 million members and employee loyalty programs over 200 partners for individual clients 9
  8. 8. Coalition THREE SOURCES OF PROFIT points selling redemption unit revenue less unit cost 1 spread point expiration 3 breakage # of months 0 ~10 24 CASH IN CASH OUT ~10 months float 2 interest income 10
  9. 9. Analytics and Proprietary Loyalty 50% 50% Design and develop loyalty scheme for third-party Manage and perform on data analytics services Create incentive campaigns for third-party The consolidation of Prismah’s results is being done by the accounting process called equity method 11
  10. 10. A young company with great track record Solid growth 491,4Gross Billings (BRL mn) 457,1 433,6 430,4 397,3 354,6 339,9 325,2 300,0 264,0 230,3 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 More than R$650 million in FCF* Almost 100% dividend payout *Sep/2012 LTM 12
  11. 11. Innovative business modelMultiple growth driversDiversification goalsDriving value to members and partnersBranding, innovation and knowledgeInvestment case
  12. 12. Domestic consumption growth 399 377 365Retail Net Sales in Brazil (USD bn) 352 328 312 240 241 202 163 132 2005 2006 2007 2008 2009 2010 2011 2012e 2013e 2014e 2015e Estimates point to 7.3% growth in net sales for 2013 Source: Euromonitor 14
  13. 13. Brazil’s wealth distribution improveSocial classes in Brazil (% of the population) A and B C 7% 15% Multiplus’ D and E focus 38% 56% 55% 29% 2003 2014 Note: Average income of classes D and E - R$ 6,126/year; class C - R$13,944/year; and classes A and B - R$ 75,942 /year. A and B social classes will reach 15% of Brazilian population by 2014 Source: Social Policies Center of FGV-Rio 15
  14. 14. Credit card usage increase 622Credit Card Transaction Value in Brazil (BRL bn) 550 485 426 386 314 256 215 174 142 115 952004 2005 2006 2007 2008 2009 2010 2011 2012e 2013e 2014e 2015e In 2015, credit card transaction value may exceed R$600 bilion Sources: ABECS and LCA Consultores/Valor 16
  15. 15. Air transportation growth Trips per capta (as of 2011)Board pax in domestic flights (mn) 96 Argentina 0,39 92 89 85 81 Peru 0,40 70 Mexico 0,46 57 Brazil 0,46 50 46 Colombia 0,47 41 3629 Ecuador 0,49 Chile 0,76 USA 2,56 UK 2,742004 2005 2006 2007 2008 2009 2010 2011 2012e 2013e 2014e 2015e Latin America is the second fastest growing region in RPK Sources: ANAC, Bain & Company and LCA Consultores 17
  16. 16. Brazilian loyalty industry in early stages Penetration of loyalty programs in total population (%) 60,7% 43,8% 37,7% 28,9% 28,6% 24,1% 21,9% 19,5% 14,0% 12,9% 8,9% 5,2% 4,1% 3,5% 2,5% Sources: loyalty programs websites and each country statistic data bureau (Updated in Dec/2012) 18
  17. 17. Innovative business modelMultiple growth driversDiversification goalsDriving value to members and partnersBranding, innovation and knowledgeInvestment case
  18. 18. Long term goals Gross billings Current Long term target Increased retail 12% share will help to sustain margins and 3% make members to 15 to 20% better understand 85% the concept TAM Retail, Industry and Services Banks Costs of redemptions Current Non-air Long term target redemptions growth 95% supports unit cost control and member 5% 15 to 20% experience improvement Air Tickets Others Note: based 3Q12 20
  19. 19. Breakage rate is declining slowly as expected while non-airredemptions become robust 1,06 24,0% 24,1% 23,4% 23,0% 23,0% 23,3%22,6% 22,6% 22,6% 22,5% 22,0%Non-air redemptions x breakage rate (bn & %) 0,61 0,62 0,56 0,43 0,25 0,07 0,09 0,10 0,03 0,061Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 Non-air redemptions surpassed 6% of total for the first time in 3Q12 21
  20. 20. Innovative business modelMultiple growth driversDiversification goalsDriving value to membersand partnersBranding, innovation and knowledgeInvestment case
  21. 21. Two side market: members and partners 10.5Members, in R$ million mn members can gather 230 partners gain a powerful points from several programs in support acquiring and retaining one single account clients Members (mn) 10,5 230 9,8 10,1 Partners 9,4 200 207 8,9 190 168 3Q11 4Q11 1Q12 2Q12 3Q12 3Q11 4Q11 1Q12 2Q12 3Q12 23
  22. 22. Generate value to members and partners will sustaingrowth Adding value to partners Creating a good member experience • sales increase • broad network • lower retention costs • targeted offers • vacancy management • fair pricing • new business insights based on client • recognition data and behavior Branding, Innovation and Knowledge Sustainable Growth 24
  23. 23. Adding value to partners: sales increase 25
  24. 24. Adding value to partners: vacancy management 26
  25. 25. Adding value to partners: new clients 27
  26. 26. Creating a good member experience: fair pricing 32-Inch LED TV Multiplus Program B Program C Program D Program E 69,400 75,647 81,800 98,400 115,800 Dec/2012 Wine cellar Program C Program B Multiplus 71,700 48,600 35,900 Dec/2012 28
  27. 27. Creating a good member experience: targeted offers 29
  28. 28. Creating a good member experience redemption Sample A members collect Sample A about 60% more points Sample B than Sample B members no redemption during 12 months following redemption date Sample A and B members Measuring accrual gap after with same accrual behavior redemption date Note: CRM analysis based on Multiplus‘ 2011-2012 data 30
  29. 29. Innovative business modelMultiple growth driversDiversification goalsDriving value to members and partnersBranding, innovation andknowledgeInvestment case
  30. 30. Branding a very new conceptStrategy Functional Emotional Jan/2010 ~ Oct/2012 as of Oct/2012 Using Multiplus you can accumulate Redeem your points to have moments points from different loyalty programs you would never put on sale in a single accountChannels Online media Radio spots Press media Partner channels 32
  31. 31. Marketing campaign (1/4) 33
  32. 32. Marketing campaign (2/4) 34
  33. 33. Marketing campaign (3/4) 35
  34. 34. Marketing campaign (4/4) 36
  35. 35. Innovation We are here Best next offerEvolution Loyalty program Points based Strong Coalition Coaliton to partner, based on # of loyalty increase in network expansion member and flights program # of offers MultiplusIT Focus Free tickets Multi-partners Multi-channel issuance platform e-commerce platforms Integration with Point of sales Advanced alliances and banks features analytics tools 37
  36. 36. Knowledge: finding the next best offer Member Portfolio map segmentation Profile Product data category Transac- tion Product behavior cost Next best offer Engage- Partner ment maximizes needs member experience, value added to partner and Multiplus profitability Accrual Member volume behavior Product Breakage seasona- rate lity Expected Profitabi- breakage lity impact 38
  37. 37. Innovative business modelMultiple growth driversDiversification goalsDriving value to members and partnersBranding, innovation and knowledgeInvestment case
  38. 38. High corporate governance standards Novo Mercado (New Market) Ordinary share only 100% tag along rights Audit committee and Fiscal Counsel Independent board member 40
  39. 39. Good results R$491,4 million in Gross Billings in the 3Q12, a 23,7% High Growth growth vs same quarter of 2011 Strong cash More than R$650 million in FCF generation (Sep 12, last 12 months) Attractive More than R$1 billion in dividends and interest on dividend payout capital since IPO Improving MPLU3 is one of top 100 most liquid Brazilian stock liquidity stocks (average of R$15 million per trading session) 41
  40. 40. Contact IR Team+55 11 5105 1847invest@multiplusfidelidade.com.brwww.multiplusfidelidade.com.br/ir

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