CORPORATE PRESENTATION
INVESTOR RELATIONS
The Company makes forward looking statements that are subject to risks anduncertainties. These statements are based on the beliefs and assumptions of ourmanagement as well as on information currently available to us. Forward-looking statementsinclude information regarding our current intent, beliefs or expectations, in addition to those ofthe members of the Board of Directors and Executive Officers of the Company.
Forward-looking statements also include information regarding our possible or assumed futureoperating results, as well as statements preceded or followed by, or that include, the words''believes”, ''may”, ''will”, ''continues”, ''expects”, ''anticipates”, ''intends”, ''plans”,''estimates”, or similar expressions.
Forward-looking statements are not guarantees of performance. They involve risks,uncertainties and assumptions, for they relate to future events, thus depending oncircumstances that may or may not occur. Our future results and the creation of value toshareholder s may differ significantly from those expressed in or suggested by these forward-looking statements. Many factors determining these results and values are beyondCielo’s ability to control or predict.
DISCLAIMER
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CIELO | BRAZIL S LEADING MERCHANT ACQUIRER
#1MERCHANT ACQUIRER
AND PAYMENT
PROCESSOR IN BRAZIL
AND LATIN AMERICA PR
ES
EN
T IN
MO
RE
TH
AN
OF BRAZILIAN
MUNICIPALITIES
MARKET CAP – AMONG
20 LARGEST IN
BM&FBOVESPA
R$ 22 BILLION98%
Exchange rate: 1USD = R$1.653
Over 1.1 million active merchants
ADR level 1 program
Most modern POS and data capture network
50 % minimum dividend pay out
R$ 4.4 billion annual revenue and EBITDA of R$ 2.9 billion
4
Free float of 42.4%
(controlling shareholders are Banco do
Brasil and Bradesco with equal
participation)
CIELO | ONE OF THE WORLD S LARGEST
PAYMENT NETWORKS
CIELO AT A GLANCE
THE CIELO STORY | AGENDA
Key Strenghts
Performance
Strategy to Grow
5
Resilient GDP growth for
2011: 3.7%
Low unemployment rate: 6.2%
in July/11
More credit availability:
R$1,854 billion in July/11 or
47.3% of GDP
Strong domestic retail sales:
7.3% in June/11 y-o-y
POSITIVE MACROECONOMIC SCENARIO
6
Penetration Of Cards as Means of Payment in the Private
Consumption Expenditure (PCE)
GROWTH POTENTIAL GIVEN LOW CARD PENETRATION
Growth [%]
15%10%5% 25%20%0
PCE Penetration
40%
30%
20%
60%
50%
10%
UK
The Netherlands
USA
Brazil
France
Card Volume [USD bn]
Other European
countries
Source: Datamonitor; Euromonitor; Press research; EIU; Roland Berger - 20087
UPCOMING SOON
VO
UC
HE
RC
RE
DIT
AN
D D
EB
IT
DIVERSIFIED PORTFOLIO OF BRANDS
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Cielo POS, Cielo ECR – Mobile Checkout and IP One
Cielo Customized Data Capture – Shared POS, Visa
Vale Pedágio (Tolls)
Cielo Mobile - iPhone, iPad and iPod touch App
Cielo E-Commerce
Cielo Credit
Cielo Debit
Cielo Parcelado/Parcelado Loja (Instalment)
Cielo Vouchers – Food, Auto
Cielo Financing - Agro / Store, Distribuition
Cielo Lynx
DATA
CAPTURE
SOLUTIONS
PAYMENTS
SOLUTIONS
ANTI-FRAUD
SOLUTIONS
Cielo Premia (Loyalty and Rewards)
Cielo Saque (Cash Advance)
Cielo Recarga - Top up
Cielo Correspondente – Banking services
VALUE ADDED
SOLUTIONS
Cielo Vcorp (Corporate)
Cielo Stand In
Cielo MIS
Cielo Renova
Cielo Pre-Auth
PRODUCTIVITY
SOLUTIONS
MOST COMPREHENSIVE VALUE
PROPOSITION
9
Source: 2011 The Nilson report
SCALE IS CRITICAL TO OUR SUCCESS
10
Cielo’s controlling shareholders*
DISTRIBUTION IS A KEY ADVANTAGE
Cielo’s partner banks
26%
19%
19%
12%
11%
5%
8%
Network of Bank distribution by the number of branches
*
Others
*
11
Total = 19,454
THE CIELO STORY | AGENDA
Key Strenghts
Strong Performance
Strategy to Grow
12
1.142 1.403
1.720 2.003
2.323
836
987
1.232
1.424
1.716
2006 2007 2008 2009 2010
Number of transactions (million)
Debit
Credit
CAGR: 19.5%
1.978
2.389
2.952
3.427
4.039
CIELO PROCESSED 4 BILLION TRANSACTIONS IN 2010
13
71.197 87.966
110.897 134.792
162.933 39.552
48.534
64.655
79.166
98.742
2006 2007 2008 2009 2010
Financial Volume (R$ million)
Debit
Credit110.749
136.500
175.552
213.958
261.675
CAGR: 24%
CIELO’S NETWORK CAPTURED 7% OF THEBRAZILIAN GDP IN 2010
14
676
824
996
1.133 1.140
2006 2007 2008 2009 2010
Number of Active Merchants (thousand)
Active merchants (transactions in the last 60 days)
MORE THAN 1,1 MILLION ACTIVE MERCHANTS
15
1.038,8
1.409,5
1.764,3
2.450,7
2.924,3
53%
59%
61%
68% 67%
50,00%
55,00%
60,00%
65,00%
70,00%
0,0
500,0
1.000,0
1.500,0
2.000,0
2.500,0
3.000,0
2006 2007 2008 2009 2010
Adjusted* EBITDA (R$ million)
STRONG CASH GENERATION
* Adjusted considering the prepayment business as operational
16
THE CIELO STORY | AGENDA
Key Strenghts
Performance
Strategy to Grow
17
* Value Added Network
Mobile /
eCommerce
Card Present Card Not Present
Payment
Transactions
Non-Payment
Transactions
VAN*
Services
MARKET POSITIONING
18
MOBILE CIELO AGROCIELO PREMIA
INVESTMENT IN INNOVATION
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CIELO | WHY INVEST?
Leader in a fast growing market
Strong balance sheet, high
cash generation and low
capex requirements
Minimum dividend pay out of
50% of net profit* distributed
twice a year
Focus on innovation and
continuous growth
* After constitution of legal reserves
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INVESTOR RELATIONS CONTACTS:
www.cielo.com.br/ri
E-mail: [email protected] | Phone: + 55 11 2596 1701