Investor Presentation
August 2012
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.
About Multiplus
3
R$ 457.1 mln of Gross Billings in 2Q12 (+28.9% YoY)
26,86% 73,14%
TAM S.A.
Shareholders’ Structure
Debt free
Negative working capital Scalable business
Strong cash generation Low CAPEX requirement
Dividend player
Innovative Business Model
About R$ 7.5 bln Market Cap (Aug/12)
IPO with R$ 2.6 bln Market Cap
(Feb/10)
R$ 974 mln of dividends* already distributed
(Fev/10-Dez/11)
NOTE: * Including Dividends, Interest on Capital and Capital Reduction
8,6 8,9 9,4
9,8 10,1
2Q11 3Q11 4Q11 1Q12 2Q12
4
Number of partners
Members, in R$ million
Multiplus is a growing loyalty network
10.1 mln members can gather
points from several programs in
one single account
207 partners gain a powerful
support acquiring and
retaining clients
Members, in million
161 168
190 200
207
2Q11 3Q11 4Q11 1Q12 2Q12
# of months ~10 0 24
3
2
points selling redemption
unit revenue less unit cost
spread 1
CASH IN CASH OUT ~10 months float
interest income
point expiration
breakage
outsourcing and CRM
services 4
Innovative business model
5
Sources of Profit
(Joint Venture)
Four Sources of Profit
Growing coalition network…
Apparel Education Gas Stations Bookstore Magazine
Suscriptions Pay-TV Telecom Hotels Air Travel
Note: blank slots refer to targeted segments
Drugstore
Members can collect and also redeem points
in any coalition partner.
Travel Agency
Pension Plan Furniture and
Decoration Home Centers Groceries Car Rental Group Buying
Cargo
Transportation
Beauty and
Healthy Gym Food
Universities
Real Estate
Stock Broker
Insurance
e-Commerce
Stock Exchange
6
Exclusive and Strategic
Relationship with TAM
Long term agreement (15 years
+ additional 5 year periods)
Most desired airline in Brazil
(Ibope Research) and Star
Alliance member
Air tickets: most appealing
redemption with high value
perception
… and strong accrual and growing redemption network*
Redemption Accrual
*non exhaustive
Financial Institutions
7
Hotels
Car Rental Retail and others
Magazines and Newspapers
Charity
Other
Leisure
how?
14%
3%
83%
Current
TAM Retail, Industry and Services Banks
Strategy: to diversify gross billings and redemptions
8
Note: based on 2Q12
Long term target
96%
4%
Current
Air Tickets Others
Long term target
15 to 20%
15 to 20%
Points redeemed
Points sold
• Average unit price increase
• Average unit cost reduction
• Controlled breakage decline,
favoring member experience
and volume growth
Long term margin expansion
why?
to diversify gross billings
and redemptions
what?
• Expanding partnerships
network
• Increasing marketing actions
• Improving client experience
“Non-air” redemptions surpassed
4% of total for the first time
0,2% 0,3% 0,5% 0,5% 0,6%
1,5%
2,6% 2,9%
4,0% 4,3%
1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12
9
More than R$ 457 million in
gross billings in 2Q12
“Non-air” redemptions, in % of total redemptions Gross Billings, R$ million
Strong Growth
Delivering Results
NOTE: it includes points issued before 2010 (TAM’s inventory)
355
397
434 430
457
2Q11 3Q11 4Q11 1Q12 2Q12
10
Loyalty market has multiples growth opportunities
*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.
Credit Card Transaction Value (R$ billions)
CAGR +22%
Expanding credit card usage in Brazil
Source: ABECS
Personal Consumption Expenditure (R$ billions)
CAGR +12%
Increasing domestic consumption
Source: IBGE
Growing passenger traffic (Airline Segment)
RPK in Brazil (billions)
Source: ANAC
Improving wealth distribution
Social classes in Brazil* (% of the population)
Values updated for 2010 Source: Social Policies Center of FGV-Rio
142174
215256
314
386
2006 2007 2008 2009 2010 2011
1.4291.595
1.7871.980
2.2492.499
2006 2007 2008 2009 2010 2011
40 44 4857
70
81
2006 2007 2008 2009 2010 2011
Multiplus’
target
2014 2003
CAGR +15%
Melhores e Maiores (Best and Largest Companies) Exame Ranking
1st place in Wealth generation per
Employee Ranking
363th place in General Ranking:
climbed 352 positions Page 536 – Exame Magazine, Special Edition Jul/12
21% of members became active through an
coalition partner in 2Q12 vs 8% in 2Q11 and 2% in 2Q10
Almost 300,000 redemptions per month
Achievments and acknowledgments
12
Appendix
Currency Hedge
Income Statement
Balance Sheet and Cash Flow
13
3,1 4,4
7,4 7,4 7,9 7,5
4,4
(3,1)
(1,1)
1,0 1,1 1,7 1,9 2,7
-7,9
-5,0 -3,3 -3,1
-2,1 -0,9
1,2
-15,2
-11,7
-8,9 -8,6 -7,0
-4,7
-0,2
3T12 4T12 1T13 2T13 3T13 4T13 1T14
R$1,80/USD R$1,90/USD R$2,00/USD R$2,10/USD
SENSITIVITY ANALYSIS
Impact on company’s cash flow (Notional: USD 519.0 mln)
R$ million
2012 2013 2014 Total
NOTIONAL 150.0 283.0 18 519.0
PUT* 1.81 1.89 1.97 1.89
CALL* 1.92 2.00 2.07 2.00
* average strike prices (BRL/USD)
Position in June 2012 (USD mln)
Appendix I:
Currency Hedge
14
Appendix II:
Income Statement
(R$ thousand)
Income Statement
Gross revenue 314,568 352,226 12.0% 382,586 -7.9%
Sale of points 224,200 309,715 38.1% 319,572 -3.1%
TAM Airlines 44,821 47,138 5.2% 54,918 -14.2%
Banks, Retail, Industry and Services 179,379 262,577 46.4% 264,655 -0.8%
Breakage 83,621 42,664 -49.0% 62,248 -31.5%
Hedge 3,448 -963 -127.9% -72 1236.9%
Other revenues 3,299 810 -75.4% 837 -3.2%
Taxes on sales -29,505 -32,710 10.9% -35,461 -7.8%
Net Revenue 285,063 319,515 12.1% 347,124 -8.0%
Cost of the points redeemed -174,085 -236,592 35.9% -252,591 -6.3%
Air tickets -171,880 -228,154 32.7% -244,614 -6.7%
Other products / services -2,205 -8,438 282.7% -7,977 5.8%
Total cost of services rendered -174,085 -236,592 35.9% -252,591 -6.3%
Gross Profit 110,978 82,923 -25.3% 94,534 -12.3%
Gross Margin 38.9% 26.0% -13.0p.p. 27.2% -1.3p.p.
Shared services -1,907 -1,907 0.0% -1,907 0.0%
Personnel expenses -6,991 -11,467 64.0% -8,559 34.0%
Marketing -4,175 -3,406 -18.4% -1,943 75.3%
Depreciation -1173 -2,203 87.7% -2,109 4.5%
Other -6,399 -17,089 167.1% -19,152 -10.8%
Total Operating Expenses -20,645 -36,071 74.7% -33,669 7.1%
Total Costs and Operating Expenses -194,730 -272,663 40.0% -286,260 -4.7%
Operating Income 90,333 46,852 -48.1% 60,865 -23.0%
Operating Margin 31.7% 14.7% -17.0p.p. 17.5% -2.9p.p.
Financial Income/Expenses 33,825 21,032 -37.8% 25,561 -17.7%
Hedge 0 -1,004 N.A. 8,504 -111.8%
Income before income tax and social 124,158 66,881 -46.1% 94,929 -29.5%
Income tax and social contribution -42,990 -23,614 -45.1% -33,344 -29.2%
Net Income 81,168 43,267 -46.7% 61,585 -29.7%
Net Margin 28.5% 13.5% -14.9p.p. 17.7% -4.2p.p.
2Q11 2Q12 2Q12 vs 2Q112Q12 vs
1Q121Q12
15
Appendix III:
Balance Sheet and Cash Flow
(R$ thousand)
Cash Flow 2Q11 2Q12 1Q12
Net Income 81,169 43,267 61,585
Depreciation/Amortization 1,173 2,203 2,109
Accounts Receivable -10,208 2,827 313
Accounts Payable -14,712 -8,021 10,093
Taxes 4,882 -8,293 13,023
Deferred Taxes 530 -20,645 15,060
Related Parties 45,822 114 17,383
Prepaid Expenses 0 0 0
Prepaid Expenses Consumption 179,699 30 -355
Deferred Revenue and Breakage liabilities 46,301 104,699 48,612
Derivative Instruments -2,877 55,895 -37,727
Other assets and liabilities -2,714 2,676 599
Operating Cash Flow 329,063 174,752 130,696
Capex -3,672 -8,104 -1,971
Cash Flow from Investing Activities -3,672 -8,104 -1,971
Net proceeds from public offer 0 0 0
Capital -600,014 0 0
Dividendos / Juros sobre Capital Próprio 0 0 -261,420
Capital Reserve 2,300 -35,284 24,830
Legal Reserve 0 0 0
Remuneration Plan 2,300 2,994 2,243
Hedge 0 -38,278 22,587
0 0 0 0
Cash Flow from Financing Activities -597,714 -35,284 -236,589
Increase (Decrease) in Cash -272,323 131,364 -107,865
Cash at beginning of period* 1,096,614 919,865 1,027,730
Cash at end of period* 824,292 1,051,229 919,865
(R$ thousands)
Balance Sheets
Assets 1,013,420 1,324,454 30.7% 1,181,671 12.1%
Current assets 830,818 1,224,355 47.4% 1,031,114 18.7%
Cash and cash equivalentes 23,820 1,188 -95.0% 21,505 -94.5%
Investments 644,884 1,038,175 61.0% 813,250 27.7%
Accounts Receivable 131,529 144,308 9.7% 147,135 -1.9%
Related Parties 22,320 21,928 -1.8% 22,042 -0.5%
Current account 22,320 21,928 -1.8% 22,042 -0.5%
Prepaid expenses 0 0 N.A. 0 N.A.
Deferred income tax and social contribution 1,823 3,388 85.8% 2,725 24.3%
Instrumentos Derivativos 5,540 0 N.A. 8,271 N.A.
Other receivables 901 15,368 1606.6% 16,186 -5.1%
Non-current assets 182,602 100,098 -45.2% 150,556 -33.5%
Prepaid expenses 0 0 N.A. 15,309 N.A.
Long term investments 155,588 11,866 -92.4% 85,110 -86.1%
Deferred income tax and social contribution 268 25,959 9577.8% 5,976 334.4%
Instrumentos Derivativos 0 66 N.A. 2,110 -96.9%
Demais Contas a Receber 0 14,256 N.A. 0 N.A.
Property, plant and equipment 1,127 2,312 105.2% 1,340 72.6%
Intangible 17,900 34,482 92.6% 29,204 18.1%
Intangible assets 7,720 11,158 44.5% 11,507 -3.0%
Liabilities and shareholder’s equity 1,013,420 1,324,454 30.7% 1,181,671 12.1%
Current liabilities 779,941 1,137,577 45.9% 1,019,374 11.6%
Suppliers 3,151 116,956 3611.6% 124,977 -6.4%
Taxes and fees payable 15,465 18,153 17.4% 26,446 -31.4%
Interest on Equity and Payable Dividends 0 0 N.A. 0 N.A.
Deferred revenue 604,173 813,535 34.7% 725,580 12.1%
Breakage liabilities 133,683 134,073 0.3% 117,329 14.3%
Instrumentos Derivativos 2,663 38,498 1345.5% 9,515 304.6%
Other liabilities 20,806 16,362 -21.4% 15,526 5.4%
Non-current liabilities 0 26,091 N.A. 9,494 174.8%
Related Parties 0 0 N.A. 0 N.A.
Derivative Instruments 0 26,091 N.A. 9,494 174.8%
Equity 233,479 160,786 -31.1% 152,803 5.2%
Capital 69,049 70,401 2.0% 70,401 0.0%
Hedge 0 -49,902 N.A. -11,624 329.3%
Remuneration Plan 6,455 16,690 158.6% 13,696 21.9%
Reserves 5,919 18,745 216.7% 18,745 0.0%
Retained Earnings (loss) 152,056 104,852 -31.0% 61,585 70.3%
2Q12 vs
2Q11
2Q12 vs
1Q122Q11 2Q12 1Q12
Contact IR team
+55 11 5105 1847
www.multiplusfidelidade.com.br/ir Debit free
Negative working capital Scalable business
Strong cash generation Low CAPEX requirement
Dividend player