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    Multiplus apresentacao investidor_20140508_eng Multiplus apresentacao investidor_20140508_eng Presentation Transcript

    • Investor Presentation May 2014
    • 2 Disclaimer This notice may contain estimates for future events. These estimates merely reflect the expectations of the Company’s management, and involve risks and uncertainties. The Company is not responsible for investment operations or decisions taken based on information contained in this communication. These estimates are subject 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 future events and financial trends that currently affect or might affect Multiplus’ business, and are not guarantees of future performance. They are based on management’s expectations that involve a number of business risks and uncertainties, any of each could cause actual financial condition and results of operations to differ materially from those set out in Multiplus’ forward-looking statements. Multiplus undertakes no obligation to publicly 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 an offer to buy or sell any securities or related financial instruments. Likewise it does not give and should not be treated as giving investment advice. It has no regard to the specific investment objectives, financial situation or particular needs of any recipient. No representation or warranty, either express or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein. It should not be regarded by recipients as a substitute for the exercise of their own judgment.
    • First mover We are pioneers in this industry in Brazil and we already have a strong partnership network, highlighting LATAM Airlines, all local banks and the joint venture with our international peer, AIMIA Group. 2 3 Track record Multiplus has already 3 years of proven focus on shareholders return with high dividend payouts. Moreover, we are continuously improving our governance structure following the best market practices. Early stages Brazilian loyalty industry has very low penetration and presents solid growth drivers 1 4 Solid strategy Our business sustainability is based on network diversification, member engagement and value delivery to partners Four main reasons to be confident in Multiplus case
    • First mover We are pioneers in this industry in Brazil and we already have a strong partnership network, highlighting LATAM Airlines, all local banks and the joint venture with our international peer, AIMIA Group. 2 3 Track record Multiplus has already 3 years of proven focus on shareholders return with high dividend payouts. Moreover, we are continuously improving our governance structure following the best market practices. Early stages Brazilian loyalty industry has very low penetration and presents solid growth drivers 1 4 Solid strategy Our business sustainability is based on network diversification, member engagement and value delivery to partners Four main reasons to be confident in Multiplus case
    • Brazilian loyalty industry is still in early stages 53.9% 25.3% 24.2% 20.9% 20.5% 14.4% 7.3% 6.3% 6.1% 4.8% 2.4% Penetration of loyalty programs in total population (%) Sources: loyalty programs websites and each country statistic data bureau (Updated in Jan/2014) High growth potential Average (ex-Multiplus): 18% 5
    • Multiple long term growth drivers Credit Card usage Expected double digit growth for next 3 years Only 35% of customers understands that they have enrolled in a bank loyalty program (vs. 31% in 2011) Consumption Possible high single digit growth for next 3 years Loyalty culture still in the early stages Air transportation Latin America is the second fastest growing region in RPK Average trips per capita is only 0.5in Brazil vs more than 3.0 in mature markets Wealth distribution A/B classes expected to reach 15% in 2014 (vs 7% in 2003) Multiplus network focus on A, B and C+ 6
    • Sources of profit: coalition # of months ~100 24 3 2 points selling redemption unit revenue less unit cost spread1 CASH IN CASH OUT ~10 months float interest income point expiration breakage THREE SOURCES OF PROFIT 7
    • First mover We are pioneers in this industry in Brazil and we already have a strong partnership network, highlighting LATAM Airlines, all local banks and the joint venture with our international peer, AIMIA Group. 2 3 Track record Multiplus has already 3 years of proven focus on shareholders return with high dividend payouts. Moreover, we are continuously improving our governance structure following the best market practices. Early stages Brazilian loyalty industry has very low penetration and presents solid growth drivers 1 4 Solid strategy Our business sustainability is based on network diversification, member engagement and value delivery to partners Four main reasons to be confident in Multiplus case
    • 9 1993 Creation of TAM Fidelidade 2009 Spin-off from TAM Fidelidade Feb/2010 Multiplus’ IPO Oct/2011 Multiplus presents its new brand Nov/2011 Announcement of JV with AIMIA Dez/2012 Multiplus becomes one of TOP 100 most liquid stocks in Bovespa Aug/2010 New headquarters and IT loyalty platform Mar/2012 Multiplus reaches 200 partners Apr/2012 Multiplus reaches 10 mn members Mai/2013 launched the new‖ campaign on several media vehicles Jun/2013 Non-air redemptions reached 8% for the first time in a quarter Oct/2013 Improved corporate governance structure Created from TAM Fidelidade, Multiplus has already three years of track record Mar/2014 Multiplus mobile app for IOS and Android
    • 10 Consistent network growth 9.4 10.9 12.2 12.5 2011 2012 2013 1Q14 Partners 12.5 mn members can gather points from several programs in one single account 468 partners gain a powerful support acquiring and retaining clients Members (mn) 190 369 472 468 2011 2012 2013 1Q14 Note: based 1Q14
    • 11 Strong partnership network Accrual partners Coalition partners Redemption partners
    • 12 Strategic long-term agreement with TAM Airlines 15 years agreement automatically renewable for additional 5-year periods Exclusive relationship Points per seat vary according to flight fare with 100% availability, improving Multiplus competitive advantage up to 360 days before flight date fee exemptions, lowered points requirement, complimentary upgrades and up to 100% bonus points High recognition to premium clients High flexibility Superior frequent flyer program lower earn-to-burn ratios redemptions via TAM, LAN and their airline partners Wide redemption window
    • 13 Solid relationship with banks bonus points per each new credit card activated Targeted redemption offers 1 Activation bonus points according to the volume of points transferred segmented offers to engage an specific member group 2 Spending 3 Targeting
    • First mover We are pioneers in this industry in Brazil and we already have a strong partnership network, highlighting LATAM Airlines, all local banks and the joint venture with our international peer, AIMIA Group. 2 3 Track record Multiplus has already 3 years of proven focus on shareholders return with high dividend payouts. Moreover, we are continuously improving our governance structure following the best market practices. Early stages Brazilian loyalty industry has very low penetration and presents solid growth drivers 1 4 Solid strategy Our business sustainability is based on network diversification, member engagement and value delivery to partners Four main reasons to be confident in Multiplus case
    • 1,119 1,525 1,871 2,009 492 538 2010 2011 2012 2013 1Q13 1Q14 15 Gross Billings (BRL mn) Points issued (bn) 53.2 76.2 85.2 83.7 21.5 21.7 2010 2011 2012 2013 1Q13 1Q14 Sales growth: consistent track record
    • 16 Cash generation and shareholders’ return FCF* (BRL mn) Dividends and Interest on own capital (BRL mn) 589.0 460.6 418.1 452.6 84.0 99.7 2010 2011 2012 2013 1Q13 1Q14 112.3 861.3 222.4 232.0 44.5 70.9 2010 2011 2012 2013 1Q13 1Q14 *Excluding Dividends, Interest on Capital and variations of Prepaid Expenses and Capital (2012 and 2013 are adjusted with R$ 71.3 of anticipated settlement in Accounts Payable) More than BRL 1.4 billion already distributed since the IPO *Including a BRL 600 million capital reduction *
    • 17 High corporate governance standards If rejected The proposal needs unanimity Board approval Special Committee Independent members Related Parties Subjects If approved The proposal needs majority Board approval Novo Mercado (New Market)1 100% tag along rights2 Ordinary share only3 30% of independent board members4 Special Committee5 Special Committee: Audit, Finance, Governance and Related Parties Committee
    • First mover We are pioneers in this industry in Brazil and we already have a strong partnership network, highlighting LATAM Airlines, all local banks and the joint venture with our international peer, AIMIA Group. 2 3 Track record Multiplus has already 3 years of proven focus on shareholders return with high dividend payouts. Moreover, we are continuously improving our governance structure following the best market practices. Early stages Brazilian loyalty industry has very low penetration and presents solid growth drivers 1 4 Solid strategy Our business sustainability is based on network diversification, member engagement and value delivery to partners Four main reasons to be confident in Multiplus case
    • 19 Diversification goals 90% 10% Current Air Tickets Others 20% 4% 76% Current TAM Retail, Industry and Services Banks Note: LTM based on 1Q14 Long term target Long term target 10 to 15% 20 to 25% Points redeemed Points sold Increased retail share will help to sustain margins and improve members engagement Non-air redemptions growth supports unit cost control and member experience improvement
    • 20 Breakage rate (%) 22.6% 24.1% 21.0% 18.5% 19.9% 18.2% 2010 2011 2012 2013 1Q13 1Q14 Non-air redemptions (%) Breakage rate: gradual decline as expected while non-air redemptions becomes robust 0.4% 2.1% 5.4% 9.2% 5.3% 7.7% 2010 2011 2012 2013 1Q13 1Q14
    • 21 Generate value to members and partners will sustain growth Branding, Innovation and Knowledge Sustainable Growth Adding value to partners • sales increase • lower retention costs • vacancy management • new business insights based on client data and behavior • develop loyalty schemes • data analytics services • Incentive campaigns Creating a good member experience • broad network • targeted offers • fair pricing • recognition • user friendly e-commerce platform • mobile applications
    • 22 Adding value to partners: sales increase
    • 23 Adding value to partners: vacancy management
    • 24 Adding value to partners: vacancy management
    • 25 Creating a good member experience: fair pricing Multiplus 69,400 Program B 75,647 Program C 81,800 Program D 98,400 Program E 115,800 32-Inch LED TV Dec/2012 Program C 71,700 Program B 48,600 Multiplus 35,900 Wine cellar Dec/2012
    • 26 Segmented offers by a balance of points generates attractiveness sending offers increases in approximately 30%the amount of points redeemed within 3 days following the sending (vs. average) And contributes to the activation rate of members
    • 27 Communication from the amount of points to expire generates engagement 35% increase in the number of members who joined the offers vs control group
    • 1 28 Branding a new concept Emotional as of Oct/2012 Functional Jan/2010 ~ Oct/2012 Strategy You don't know what you're winning
    • Appendix
    • 30 Income statement (1/2) (R$ thousand) Income Statement Gross revenue 411,951 486,698 18.1% 450,677 8.0% Sale of points 360,369 426,042 18.2% 398,930 6.8% TAM Airlines 40,808 36,906 -9.6% 35,980 2.6% Banks, Retail, Industry and Services 319,561 389,136 21.8% 362,950 7.2% Breakage 54,983 70,333 27.9% 61,987 13.5% Hedge (4,211) (9,677) 129.8% (10,240) -5.5% Other revenues 810 - -100.0% - - Taxes on sales (38,538) (46,014) 19.4% (42,717) 7.7% Net Revenue 373,413 440,684 18.0% 407,961 8.0% Cost of the points redeemed (274,619) (317,080) 15.5% (300,287) 5.6% Air tickets (264,076) (296,710) 12.4% (277,387) 7.0% Other products / services (10,544) (20,370) 93.2% (22,900) -11.0% Total cost of services rendered (274,619) (317,080) 15.5% (300,287) 5.6% Equity Share on Results from Investments in JV (2,431) (2,025) -16.7% (2,098) -3.5% Gross Profit 96,363 121,578 26.2% 105,575 15.2% Gross Margin 25.8% 27.6% 1.8p.p. 25.9% 1.7p.p. 1Q13 1Q14 1Q14 vs 1Q13 4Q13 1Q14 vs 4Q13
    • 31 Income statement (2/2) (R$ thousand) Income Statement Gross revenue 411,951 486,698 18.1% 450,677 8.0% Sale of points 360,369 426,042 18.2% 398,930 6.8% TAM Airlines 40,808 36,906 -9.6% 35,980 2.6% Banks, Retail, Industry and Services 319,561 385,769 20.7% 362,768 6.3% Other products - 3,367 - 182 1745.5% Breakage 54,983 70,333 27.9% 61,987 13.5% Hedge (4,211) (9,677) 129.8% (10,240) -5.5% Other revenues 810 - -100.0% - - Taxes on sales (38,538) (46,014) 19.4% (42,717) 7.7% Net Revenue 373,413 440,684 18.0% 407,961 8.0% Cost of the points redeemed (274,619) (317,080) 15.5% (300,287) 5.6% Air tickets (264,076) (296,710) 12.4% (277,387) 7.0% Other products / services (10,544) (20,370) 93.2% (22,900) -11.0% Total cost of services rendered (274,619) (317,080) 15.5% (300,287) 5.6% Equity Share on Results from Investments in JV (2,431) (2,025) -16.7% (2,098) -3.5% Gross Profit 96,363 121,578 26.2% 105,575 15.2% Gross Margin 25.8% 27.6% 1.8p.p. 25.9% 1.7p.p. 1Q13 1Q14 1Q14 vs 1Q13 4Q13 1Q14 vs 4Q13 Shared services (1,907) (811) -57.5% (843) -3.8% Personnel expenses (10,806) (12,415) 14.9% (10,245) 21.2% Marketing (1,943) (5,172) 166.2% (6,676) -22.5% Depreciation (1,861) (3,416) 83.6% (2,457) 39.1% Other (17,836) (14,854) -16.7% (15,449) -3.9% Total Operating Expenses (34,353) (36,668) 6.7% (35,670) 2.8% Total Costs and Operating Expenses (311,403) (355,773) 14.2% (338,055) 5.2% Operating Income 62,010 84,911 36.9% 69,905 21.5% Operating Margin 16.6% 19.3% 2.7p.p. 17.1% 2.1p.p. Financial Income/Expenses 11,788 32,130 172.6% 32,536 -1.2% Hedge (2,939) (2,113) -28.1% (4,448) -52.5% Income before income tax and social contribution 70,859 114,928 62.2% 97,993 17.3% Income tax and social contribution (24,009) (40,326) 68.0% (32,185) 25.3% Net Income 46,850 74,602 59.2% 65,807 13.4% Net Margin 12.5% 16.9% 4.4p.p. 16.1% 0.8p.p.
    • (R$ thousand) Balance Sheet Assets 1,426,657 1,615,511 13.2% 1,538,909 5.0% Current assets 1,349,757 1,511,757 12.0% 1,441,476 4.9% Cash and cash equivalentes 3,492 3,112 -10.9% 10,577 -70.6% Financial assets at fair value through profit and loss 709,964 1,288,944 81.6% 1,253,899 2.8% Financial assets held-to-maturity - (0) - (0) 0.0% Accounts receivable 170,073 172,666 1.5% 131,081 31.7% Deferred income tax and social contribution - 10,612 - 8,227 29.0% Related Parties 433,071 17,662 -95.9% 19,176 -7.9% Derivative instruments - (0) - (0) 0.0% Prepaid expenses - 6,376 - 6,409 -0.5% Other receivables 33,156 12,385 -62.6% 12,107 2.3% Non-current assets 76,900 103,754 34.9% 97,433 6.5% Financial assets - bank deposits - - - - - Financial assets held-to-maturity - - - - - Deferred income tax 8,625 1,852 -78.5% 5,974 -69.0% Derivative financial instruments 550 - -100.0% - - Other accounts receivable 6,821 24 -99.6% 23 6.6% Investments 1,937 5,058 161.1% 7,083 -28.6% Property, plant and equipment 3,208 9,231 187.8% 8,289 11.4% Intangible assets 55,758 87,589 57.1% 76,064 15.2% Related Parties - - - - - 1Q14 vs 4Q13 1Q14 vs 1Q13 1Q13 1Q14 4Q13 32 Balance sheet: assets (R$ thousand) Balance Sheet Assets 1,426,657 1,615,511 13.2% 1,538,909 5.0% Current assets 1,349,757 1,511,757 12.0% 1,441,476 4.9% Cash and cash equivalentes 3,492 3,112 -10.9% 10,577 -70.6% Financial assets at fair value through profit and loss 709,964 1,288,944 81.6% 1,253,899 2.8% Financial assets held-to-maturity - (0) - (0) 0.0% Accounts receivable 170,073 172,666 1.5% 131,081 31.7% Deferred income tax and social contribution - 10,612 - 8,227 29.0% Related Parties 433,071 17,662 -95.9% 19,176 -7.9% Derivative instruments - (0) - (0) 0.0% Prepaid expenses - 6,376 - 6,409 -0.5% Other receivables 33,156 12,385 -62.6% 12,107 2.3% Non-current assets 76,900 103,754 34.9% 97,433 6.5% Financial assets - bank deposits - - - - - Financial assets held-to-maturity - - - - - Deferred income tax 8,625 1,852 -78.5% 5,974 -69.0% Derivative financial instruments 550 - -100.0% - - Other accounts receivable 6,821 24 -99.6% 23 6.6% Investments 1,937 5,058 161.1% 7,083 -28.6% Property, plant and equipment 3,208 9,231 187.8% 8,289 11.4% Intangible assets 55,758 87,589 57.1% 76,064 15.2% Related Parties - - - - - 1Q14 vs 4Q13 1Q14 vs 1Q13 1Q13 1Q14 4Q13
    • 33 Balance sheet: liabilities and shareholders' equity Liabilities and shareholders' equity 1,426,657 1,615,511 13.2% 1,538,909 5.0% Current liabilities 1,282,334 1,418,313 10.6% 1,352,935 4.8% Suppliers 122,751 160,053 30.4% 129,887 23.2% Salaries and payroll taxes 7,979 10,345 29.7% 12,841 -19.4% Tax, charges and contributions 610 5,423 789.3% 4,243 27.8% Income and social contribution tax 23,921 14,848 -37.9% 8,309 78.7% Interest on own capital and dividends - - - - - Derivative financial instruments 14,823 - -100.0% 3,870 -100.0% Deferred revenue 964,864 1,072,284 11.1% 1,050,438 2.1% Breakage liabilities 137,748 152,329 10.6% 132,891 14.6% Other liabilities 9,639 3,030 -68.6% 10,456 -71.0% Dividends payable - - - - - Non-current liabilities - 83 - 91 -8.8% Related parties - - - - - Derivative financial instruments - - - (0) -100.0% Deferred revenue - 83 - 91 -8.8% Equity 144,323 197,115 36.6% 185,883 6.0% Share capital 102,887 105,334 2.4% 103,493 1.8% Capital reserve (2,520) 1,948 -177.3% 1,149 69.5% Earnings reserve 20,577 95,300 363.1% 94,699 0.6% Carrying value adjustments (23,472) (5,467) -76.7% (13,458) -59.4% Retained Earnings (loss) 46,850 - -100.0% - - (R$ thousand) Balance Sheet Assets 1,426,657 1,615,511 13.2% 1,538,909 5.0% Current assets 1,349,757 1,511,757 12.0% 1,441,476 4.9% Cash and cash equivalentes 3,492 3,112 -10.9% 10,577 -70.6% Financial assets at fair value through profit and loss 709,964 1,288,944 81.6% 1,253,899 2.8% Financial assets held-to-maturity - (0) - (0) 0.0% Accounts receivable 170,073 172,666 1.5% 131,081 31.7% Deferred income tax and social contribution - 10,612 - 8,227 29.0% Related Parties 433,071 17,662 -95.9% 19,176 -7.9% Derivative instruments - (0) - (0) 0.0% Prepaid expenses - 6,376 - 6,409 -0.5% Other receivables 33,156 12,385 -62.6% 12,107 2.3% Non-current assets 76,900 103,754 34.9% 97,433 6.5% Financial assets - bank deposits - - - - - Financial assets held-to-maturity - - - - - Deferred income tax 8,625 1,852 -78.5% 5,974 -69.0% Derivative financial instruments 550 - -100.0% - - Other accounts receivable 6,821 24 -99.6% 23 6.6% Investments 1,937 5,058 161.1% 7,083 -28.6% Property, plant and equipment 3,208 9,231 187.8% 8,289 11.4% Intangible assets 55,758 87,589 57.1% 76,064 15.2% Related Parties - - - - - 1Q14 vs 4Q13 1Q14 vs 1Q13 1Q13 1Q14 4Q13
    • Thank you! Contact IR Team +55 11 5105-1847 invest@pontosmultiplus.com.br www.pontosmultiplus.com.br/ir Ronald Domingues Filipe Scalco Fernanda Camiña