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.
2
3. 3Q11 results
Operating highlights
Item 3Q11 YoY QoY
Points issued 20.0 bln +38.5% +7.9%
Points redeemed 12.5 bln +171.7% +14.7%
Breakage rate 24.0% +140bps +70bps
Financial highlights
Item 3Q11 YoY QoY
Gross Billings of points R$ 397.3 mln +32.4% +12.1%
Net Revenue R$ 321.5 mln +147.3% +12.8%
EBITDA R$ 78.1 mln +64.5% -14.6%
(margin of 24.3%)
Adjusted EBITDA R$ 82.3 mln -7.0% +1.3%
(margin of 22.2%)
Net Income R$ 51.3 mln +15.3% -36.8%
(margin of 16.0%)
3
4. Currency Hedge
Fundamentals Position in September 2011 (USD mln)
4Q11 2012 2013 Total
• Multiplus is exposed to NOTIONAL 51.0 303.0 255.0 609.0
foreign exchange risk as PUT* 1.75 1.80 1.88 1.83
most of the agreements with
CALL* 1.85 1.90 1.99 1.93
financial institutions are * average strike prices (BRL/USD)
denominated in USD.
• These partners represented SENSITIVITY ANALYSIS
approximately 70% of Impact on company’s cash flow (Notional: USD 609.0 mln)
R$ million
Multiplus’ gross billings in 15,2 15,2 15,0
13,8
11,9 12,1
3Q11. 11,2 11,2
9,0 9,0 9,0 8,5
• The Financial Risk 5,4 5,8 5,8 6,0 6,3
3,8 3,8 4,0 3,9
2,5
Policy determines coverage 1,5
0,1
limits and the list of eligible
-0,7 -0,7 -1,1 -0,5
financial instruments -1,6 -1,9 -1,8
-3,1
-6,1 -5,5
-6,6 -6,6
4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13
R$1,65/USD R$1,75/USD R$1,85/USD R$1,95/USD
4
5. Hedge Accounting in 4 steps
1 2 3 4
Hedge
HEDGE Mark-to-Market Hedge Expiration
Construction
MULTIPLUS Points Points
POINTS Sale Redemption
Zero Cost Collar Intrinsic Value Cash results of hedge Cash results of hedge
(purchase of a put recorded in Equity operations are operations are
COMMENTS option and the sale of a and Time value in assigned to some recorded in operating
call option) or other Financial results. points sold in the same results
instruments. period (based on first
Intrinsic Value out rule)
Balance Sheet
EQUITY
Operating
RESULTS Time Value Balance Sheet
Results
Financial EQUITY AND CASH
Results
NON-CASH
Item Main variables
IMPORTANT:
Option value Intrinsic value + Time value The Company does not have any CSA in place
Intrinsic value Strike price and Current exchange rate and thus cannot be called for margin in any of its
derivative contracts whichever the scenario.
Time value Maturity, Volatility and Interest Rate Differential (BRL vs USD)
5
6. Business Model
Partnerships network Outsourcing CRM
Accrual Redemption Coalition
Partners
Partners Partners Partners
Partners buy Multiplus buys Two-way flow:
points from points, products exchange of Multiplus Multiplus
Multiplus to award or services from points, products manages the leverages the
its customers partners to deliver and services (buy loyalty program of database from its
(Ex. banks, parking to its members and sell) between the partner network and
and stores) (Ex. donation and Multiplus and (systems and offers CRM
tickets) coalition partners operations) services
(Ex. air travel,
e-commerce and
gas station)
Status Status Status
Operational Planning Planning
6
7. Strategy: to diversify gross billings and redemptions
Gross billings of points what?
to diversify gross billings
Current Long term target and redemptions
24%
why?
3%
• Average unit price increase
• Average unit cost reduction
15 to 20%
73% • Controlled breakage decline,
favoring member experience
TAM Retail, Industry and Services Banks and volume growth
Costs of rewards
Long term margin expansion
Current Long term target
how?
98%
• Expanding partnerships
network
2% 15 to 20%
• Increasing marketing actions
• Improving client experience
Air Tickets Others
Note: based on 3Q11
7
8. Expanding partnerships network
New partnerships Expanding partnership network
# +26.3%
+4.3%
Drugstore Group buying
166 161 168
151
133
7 12 15 19 20
Pension Plan Car Rental
3Q10 4Q10 1Q11 2Q11 3Q11
Total Coalition
NOTE: Some partnerships with bad performance were canceled in 2Q11.
Tickets Donation
Increasing non-airline redemptions
As % of total points redeemed
3,2%
2,0%
Roadmap
0,8% 0,8% 0,9%
Groceries, entertainment, restaurants,
beauty, others.
3Q10 4Q10 1Q11 2Q11 3Q11
NOTE: it includes points issued before 2010 (TAM’s inventory)
8
9. Increasing marketing actions (1/2)
New positioning
Vision Values
Together we can do much more. Simplicity
Agility
Mission Reliability
Connecting companies and people through a relationship Fun
network in which everybody wins. Innovation
New brand
9
10. Increasing marketing actions (2/2)
Media investments Expanding member base
Together is so much better. Together is Multiplus. In millions
+17.4%
+3.7%
On board videos TV commercial
8,6 8,9
8,0 8,3
7,6
Press media 3Q10 4Q10 1Q11 2Q11 3Q11
Radio spots, etc
Growing gross billings
R$ millions
32.4%
+12.1%
Point-of-sale materials 397,3
325,2 339,9 354,6
300,0
3Q10 4Q10 1Q11 2Q11 3Q11
(collect points here)
10
11. Improving client experience
Point of Sale
Accrual and balance checking at the point-of-sale
• spread the loyalty concept
• speed up the capillarity strategy penetrating new market segments
• increase sales in retail market
Standard rule: 1 Real ($) = 1 Multiplus point
Special rules allowed (such as minimum ticket) adding more value to the partner
Multiplus as one product of Redecard’s sales team
New website coming soon Other actions
Call Center improvements
Educational mailings
Systems improvements
11
