2. 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.
3. What is Multiplus?
3
Market Cap of R$ 5.6 billion
• Free float of R$ 1.5 billion
• Controlled by TAM S.A. (73.2% stake)
• BM&FBovespa “Novo Mercado” listed
3
The Leading Loyalty Coalition Network in Brazil
• Originated from TAM Fidelidade Program
• 7.6 million members
• 133 partnerships
1
Unique Business Model
• Scalable business with low CAPEX requirement
• Recurring and solid Free Cash Flow
• High margins and high returns
2
Note: based on Nov 19 2010 data
4. Flexible Business Model
Partner
A
Partner
A
Program
Partner
A
Partner
C
Partner
D
Partner
B
Partner
A
Program
A
Partners buy points
from Multiplus to
award its customers
Two-way flow:
exchange of points
(buy and sell) between
Multiplus and coalition
partners
Multiplus as the loyalty
program of the partner
Multiplus leverages
the database from its
network and offers
CRM services
CRM
4
Accrual Coalition Outsourcing CRM
growth
opportunities
increases the attractiveness of
partners’ loyalty program by
connecting them to Multiplus
reaches more sectors and
companies
5. 5
Broad Partnership Network*
Retail, Industries and Services
Travel and Entertainment
Financial Institutions
High penetration potential in several other industries: financial, retail,
clothing, education, public sector, corporate programs, etc.
*non exhaustive
7. Gross Billings and Redemption breakdown
7
Note: based on Sep10 YTD
Gross Billings Redemption Costs
Airline Tickets
99%
Other products
and services
1%
TAM
27%
Banks, Retail,
Industry and
Services
73%
Spread
(Margin between point price and
redemption cost)
Breakage revenue
(points expiring before being
redeemed)
Interest income
on the float
(gap between sales points and the
redemptions of products and services)
Cross-selling
of services
(outsourcing and CRM)
Sources of Profit
8. 8
Growth Opportunities
142
174
215
256
2006 2007 2008 2009
Credit Card Transaction Value (R$ billions)
CAGR +22%
Credit Card Usage
Source: ABECS
1,429 1,594 1,812 1,972
2006 2007 2008 2009
Personal Consumption Expenditure (R$ billions)
CAGR +11%
Consumption
Source: IBGE
40
44
48
56
2006 2007 2008 2009
Passenger Traffic
RPK in Brazil (billions)
17%
Source: ANAC
Wealth Distribution
Social classes* (% of the population)
Source: Ministry of Finance and FVG
36.0% 33.2% 30.9% 30.8%
50.0% 52.0% 53.8% 53.6%
14.0% 14.7% 15.3% 15.6%
2006 2007 2008 2009
A and B
C
D and E
*Note: classes D and E - less than R$13,380/year; class C - from R$13,380/year to R$57,684/year; and classes A and B - above R$ 57,684/year.
9. 9
Strategy
Growth
Partnerships
Expansion of the loyalty concept to new
segments
New business with current partners
Members
Higher penetration in the partners’ client base
Increasing activation
New markets
Structure
People
Corporate Governance
Systems
Branding
New Concept Creation
Actions at the Point of Sale
Sharing costs with partners
Margins
Revenue
Targeting high value added partnerships
New services (outsourcing and CRM)
Costs
New reward options with lower cost
Breakage management
11. 11
Appendix I:
Exclusive and Strategic Relationship with TAM
● 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
● 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
Operational Agreement Assures the Most Appealing Products to the Members = Air Tickets
Airlines
12. Appendix II:
Typical Accrual and Redemption Flows
12
MEMBER
(consumer)
Points
earns Partner’s
Program
accumulates converts to
PARTNER WITH STANDALONE PROGRAM
PARTNER WITH NO STANDALONE PROGRAM
Accrual flow: cash in due to sales of points to partners
Redemption flow: cash out due to purchase of points, products and services from partners and suppliers
earns
MEMBER
(consumer)
Points
redeems
converts to Partner’s
Program
accumulates earns
COALITION PARTNER
earns
Products
and
Services
Products
and
Services
earns Multiplus
Catalogue
buys
POINTS
POINTS
A
B
C
D
E
13. 13
Appendix III:
3Q10 Highlights
OPERATING HIGHLIGHTS 3Q10 vs 2Q10
• 7.6 mln members, an increase of 6.0% (20.8% versus 3Q09)
• 14.4 bln points issued, a growth of 17.9%
• 4.6 bln points redeemed, an increase of 44.2%
• Breakage ratio (24 months average) of 26.9%, compared to 28.7%
FINANCIAL HIGHLIGHTS 3Q10 vs 2Q10
• Gross Billings of points of R$ 300.0 mln, an increase of 13.6%
• Net Revenue of R$ 130.0 mln, representing a growth of 39.1%
• Adjusted EBITDA of R$ 101.2 mln, a growth of 12.2% (33.7% margin)
• Net Income of R$ 44.5 mln, an increase of 92.4% (34.2% margin)
14. 14
Appendix IV:
Balance Sheet
(R$ thousands)
Balance Sheet
Assets 1.062.523 1.257.006 18,3%
Current assets 789.208 1.102.918 39,8%
Cash, cash equivalents and Investments 336.265 633.813 88,5%
Other receivables 64.638 91.647 41,8%
Related parties 382.919 363.136 -5,2%
Current account 95.126 30.157 -68,3%
Prepaid expenses 287.793 332.979 15,7%
Deferred income tax and social contribution 5.025 14.115 180,9%
Other assets 361 207 -42,7%
Non-current assets 273.315 154.088 -43,6%
Prepaid expenses 265.610 142.377 -46,4%
Deferred income tax and social contribution 568 755 32,9%
PP&E and Intangible assets 7.137 10.956 53,5%
Liabilities and shareholders' equity 1.062.523 1.257.006 18,3%
Current liabilities 362.979 541.993 49,3%
Suppliers 3.107 5.139 65,4%
Taxes and fees payable 6.002 20.780 246,2%
Deferred revenue 239.671 354.302 47,8%
Breakage liabilities 110.938 155.162 39,9%
Other liabilities 3.261 6.610 102,7%
Equity 699.544 715.012 2,20%
2Q10 3Q10 3Q10 vs 2Q10
