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Copyright © Cielo | Todos os direitos reservados
CORPORATE PRESENTATION
July, 2015
THE COMPANY MAKES FORWARD LOOKINGSTATEMENTS THAT ARE SUBJECT TO RISKS AND UNCERTAINTIES
DISCLAIMER
These statements are based on the beliefs and assumptions of our management as well as on information currently available to us. Forward-looking statements
include information regarding our current intent, beliefs or expectations, in addition to those of the members of the Board of Directors and Executive Officers
of the Company.
Forward-looking statements also include information regarding our possible or assumed future operating 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 on
circumstances that may or may not occur. Our future results and the creation of value to shareholder s may differ significantly from those expressed in or suggested by these
forward-looking statements. Many factors determining these results and values are beyond Cielo’s ability to control or predict.
#1MERCHANT ACQUIRER AND PAYMENT PROCESSOR IN BRAZIL AND LATIN AMERICA
OF GDP CAPTURED THROUGH CIELO´S NETWORK
MARKET CAP – AMONG 10 LARGEST IN BM&FBOVESPA
BRL 80 BILLION9.4%
CIELO | LEADING MERCHANT ACQUIRER
*
*Closing date: 06/26/2015Exchange: 1USD = 3.20 BRL (06/26/2015)
3
Copyright © Cielo | Todos os direitos reservados
CIELO | SUBSTITUTION OF CASH AND CHECKS
* Excluding Private Labels
Cards Expenditure over PCE* (%)
PCE - Private Consumption Expenditure (R$ billion)
Card Expenditure (R$ billion)*
Source: IBGE,ABECS 4
* Excluding Private Labels
2007 2008 2009 2010 2011 2012 2013 2014 1Q14 1Q15
16.1%17.7%
19.1%20.8%
22.8%24.4%
26.2%27.9%
26.5% 27.4%
2007 2008 2009 2010 2011 2012 2013 2014 1Q14 1Q15
1,6291,857
2,0642,341
2,6372,908
3,2013,450
830 888
2007 2008 2009 2010 2011 2012 2013 2014 1Q14 1Q15
262329
394487
601710
837
964
219 243
CIELOPROMO
Cielo’s offering is the most comprehensive available including some unique products
• Loyalty program developed exclusively to merchants
• Largest B2B in Latin America• Accrual of points based on
merchant’s volume with Cielo
• Most flexible and the easiest to use promotional marketing tool in the market
• Can be offered to merchants, brands and issuers
CIELO| PRODUCTS
CIELO FIDELIDADE
5
Copyright © Cielo | Todos os direitos reservados
CIELO | NEW TECHNOLOGIES
Wireless POS terminals (GPRS)• Corresponds to 64% of
Cielo’s installed basis (as of 1Q15)
• Strong demand from our merchants
NFC (Near Field Communication)• More than 1.4 million
terminals installed with such technology
Mobile Chip & Pin • Perfect for professionals and merchants
that require convenience and mobility• Data protected to ensure the integrity of
transactions• Sales Receipt may be sent by email to
the cardholder
Cielo invests in new technologies for capturing devices to our merchants
6
November2010
March2012
August2010
May2011
September2012
October2012
January2010
April2014
November2014
June2014
CIELO| STRATEGIC PLANNING
Cielo has been active to be well positioned to capture new avenues of growth
Launching the new e-commerce platform
Acquisitionof M4U
Acquisitionof Braspag
Launching of Cielo Mobile
Partnership withCyberSource
Acquisition of MeS
Launching of Cielo MobileChip & Pin
MoU to participate in Stelo
MoU to createa JV betweenCielo and Linx
Association between
Cielo and Banco do
Brasil
7
Business Expansion
Data base of 1.6 million active points of sale more than 5 billion transaction a yearCIELO BIG DATA
CIELO BIG DATA RESPONDS:
How is retail performing?
What are the most accurate and updated figures of brazilian retail considering its several sectors and regions?
Considering the main performance metrics, how is my sector performing?
How are my peers performing?
Why my store located at a specific city/neighborhood is not performing? Is it the manager or the location?
What is my customer purchase profile? Why am I losing customers? What shall I do to bring them back?
Which microregion has the biggest revenue potential that I have not explored yet? Which spot should I open my next store?
BIG DATA PRODUCTS:
ICVA
BenchmarkCustomizedPromo
E-commerceSectorial analysis
Shoppings On Demand
8
Source: CIELO
CIELO´S BROAD RETAIL INDEX (ICVA)NOMINAL REVENUE OF SALES GROWTH (YOY)
DIFFERENTIAL
Territorial coverage of 99% of the
country
Scope sized companies: from small retailers to
large retailers
Based on actual information
and not in sample surveys
Dynamic model, based on the actual mix
of each sector in the economy
Over 20 economic sectors, including services (eg: airlines, restaurants and e-commerce)
Improved disclosure
9
May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15
12.5%
8.1%
9.6%10.2%
10.1% 10.1%10.5%
8.0%8.9%
4.5%
9.0%
7.1%
6.5%
12.0% 10.9%
9.8%
10.8%
9.5%
8.4% 8.6%8.1% 8.2% 7.3%
7.2%
5.9%
6.9%
5.5%
0.5%
3.5% 3.7%3.4% 3.7%
4.3%
1.8%2.1%
-2.4%
3.3%
1.1%
0.4%
5.1%
3.1%
3.7%4.3%
2.9%2.1%
2.6%1.8% 1.5% 0.2%
1.6%
0.0%0.7%
Nominal ICVAAdjusted Nominal ICVADeflated ICVA*Adjusted Deflated ICVA
*IPCA Deflation according to the sector set by ICVA
163,941202,084
244,960279,617
312,62498,742
118,315138,368
169,131204,986517,610 CAGR: 18.5%
AnnualEvolution(R$ million)
2012 2013
448,748
320,399
CreditDebit
The financial volume does not include Merchant E-Solutions transactions, i.e., it comprises the financial volume of the domestic market only.
CIELO| TRANSACTION FINANCIAL VOLUME
20112010
383,329
262,683
2014
10
73,120 84,952 75,484
46,454
58,97751,055
Quarterly Evolution (R$ million)
119,574 126,539
143,929
4Q14
-12.1%
1Q14 1Q15
5.8%
CIELO| NUMBER OF TRANSACTIONS
AnnualEvolution(R$ million)
2012 2013
CreditDebit
The number of transactions does not include Merchant E-Solutions transactions, i.e., it comprises the number of transactions of the domestic market only.
2010 2011
1,601 1,837 2,062 2,283 2,525
1,7161,964
2,2402,618
3,134
3,3173,801
4,3024,902
5,659
2014
CAGR: 14.3%
11
592 672 610
727
8968151,4251,318
8.1%
4Q14
1,568
-9.1%
QuarterlyEvolution(million)
1Q151Q14
CIELO| OPERATIONAL INDICATORS
1Q14 4Q14 1Q15
Quarterly Evolution(Thousand)
* Points of Sales Merchants are those that have made at least a single transaction in the last 30 days .The year is measured based on the closing
POS Terminals Points of Sales Merchants (30 days)*2010
1,2771,484
1,7271,831
2,023
1,069 1,1561,282
1,4261,619
Annual Evolution(Thousand)
2010 2011 2012
CAGR: 10.9%
CAGR 12.2%
20142013
12
1,8652,023 2,020
1,4351,619 1,637
-0.2%14.1%
1.1%
8.3%
1,817.7
2,128.72,351.8
1Q14 4Q14 1Q15
AnnualEvolution(R$ million)
CIELO| NET OPERATING REVENUE
NET OPERATING REVENUE
QuarterlyEvolution(R$ million)
29.4%
20112010
10.5%
3,992.5 4,208.7
5,385.3
6,734.27,725.6
CAGR: 17.9%
2012 201320112010 2014
13
73.1% (9,954)
68.5% (10,282) 66.2%
(9,789)
26.9% (3,663)
31.5% (4,728)
33.8% (4,998)
18.7% 17.7
%
19.6%
1Q14 4Q14 1Q15
CIELO| PREPAYMENT OF RECEIVABLES VOLUME8.6% -1.5%
14
Quarterly Evolution(R$ million)
13,61815,010 14,787
%Pre-paid Volume from
Credit Installments
% Prepayment over Total
Credit Volume
%Pre-paid Volume from
Regular Credit
10,34015,407
26,409
44,286
56,062
6.3%7.6%
10.8%
15.9%
17.9%
2012 201414
20112010
AnnualEvolution(R$ million)
2013
CAGR: 52.6%
Total Pre-paid Volume
CIELO| PREPAYMENT OF RECEIVABLES REVENUE
15
343.8
535.3
768.1
953.1
1,508.6
329.2
423.1462.9
1Q14 4Q14 1Q15
QuarterlyEvolution(R$ million)
AnnualEvolution(R$ million)
Prepayment of Receivables Net Revenue (R$ million)
2012 2014201320112010
40.6%9.4%
CAGR: 44.7%
CIELO| PREPAYMENT OF RECEIVABLES INDICATORS
16
Prepayment of Receivables 1Q15 1Q14 4Q14 1Q15 X 1Q14
1Q15 X 4Q14
*Assuming the cost of 104% of CDI in Financial Volume of Prepayment
% Prepayment over Total Credit Volume 19.6% 18.7% 17.7% 0.9 p.p. 1.9 p.pFinancial Volume of Prepayment (R$ million) 14,787.0 13,617.7 15,010.2 8.6% -1.5% % Pre-paid volume from regular credit 33.8% 26.9% 31.5% 6.9 p.p 2.2 p.p % Pre-paid volume from credit in installments 66.2% 73.1% 68.5% -6.9 p.p -2.2 p.pAverage Term (Calendar Days) 57.3 58.4 55.8 (1.1) 1.5Average Term (Business Days) 38.7 39.5 37.4 1.2 (0.8) Gross Revenue of Prepayment of Receivables (R$ million) 536.9 410.2 516.7 30.9% 3.9%Present Value Adjustment Expenses (R$ million) (12.8) (13.7) (31.2) -6.6% -59.0%Cost of Funding with Third Parties (R$ million) (61.2) (67.4) (62.3) -9.1% -1.8%Prepayment of Receivables Net Revenue (R$ million) 462.9 329.2 423.1 40.6% 9.4%
Managerial AnalysisGross Revenue of Prepayment of Receivables (R$ million) 536.9 410.2 516.7 30.9% 3.9%Cost of Funding* (R$ million) (271.8) (219.3) (247.3) 24.0% 9.9%Managerial Net Revenue (R$ million) 265.1 191.0 269.4 38.8% -1.6%
2,564 2,388
3,0973,575
3,838
64.2%
56.8% 57.5% 53.1%49.7%
CIELO| EBITDA
QuarterlyEvolution(R$ million)
1Q14 4Q14 1Q15
2012* 2013
AnnualEvolution(R$ million)
EBITDA MARGIN %EBITDA
CAGR: 10.6%
*2012 figures were only impacted by Merchant E-Solutions in 4Q12
20112010 2014
17
1,001.4924.6
1,186.6
55.1%43.4%
50.5%
28.3%18.5%
1Q14 4Q14 1Q15
QuarterlyEvolution(R$ million)
1,831 1,817
2,3322,674
3,220
2012* 2013
45.9% 43.
2%43.1% 39.
7%
41.7%
AnnualEvolution(R$ million)
NET MARGIN %NET INCOME* 2012 figures were only impacted by Merchant E-Solutions in 4Q12
CAGR: 15.2%
20112010 2014
18
CIELO| NET INCOME
802.7 803.0
911.8
13.6%
44.2%
37.7%
38.8%
13.6%
CIELO | INVESTMENT HIGHLIGHTS
Leader in a growing market
Strong balance sheet, high cash generation and low capex requirements
Minimum dividend payout of 30% of net profit* distributed twice a year
Focus on innovation, diversificationand continuous growth
* After constitution of legal reserve of 20% of the Company´s capital stock
19
CIELO | ADR
Cielo has a sponsored Level I ADR Ticker: CIOXY ADR Ratio (ADR:ORD): 1:1 Depositary bank: Deutsche Bank Trust Company Americas Depositary bank contacts:
ADR broker helpline:Tel: +1 212 250 9100 (New York) Tel: +44 207 547 6500 (London)
Email: [email protected] website: www.adr.db.com Depositary bank’s local custodian: Banco Bradesco
* Since December 2013 no IOF charged
20
Copyright © Cielo | Todos os direitos reservados
APPENDIX
1995 2009 2015
June 2009
Single Visa Acquirer
R$ 8.4 billion IPO
+
Multi-brand acquirer
CIELO | TIMELINE
4 Visa acquirers
22
1,886,677,126 Common SharesCIELO | CAPITAL OWNERSHIP
23*Tempo Serviços LTDA is a Bradesco subsidiary company which started envisaging Ciel3 on its investment portfolio
b. 28.65%
a. 28.65%
a+b= 57.3%
Tempo Serviços* 1.41%
Free Float: 40.95%
Treasury: 0.35%
BRAZIL | ECONOMIC SCHEME
Gross MDR
Net MDR Interchange Fee
The brand defines the interchange fee.
The acquirer negotiates the gross MDR with the merchant.
MERCHANTS
Issuer
Card Holder
24
2.90
2.952.98 2.98
2.84
2.79 2.78 2.77
2.84
BRAZIL | MERCHANT DISCOUNT RATES
Source: Central Bank 25
1Q073Q07
1Q083Q08
1Q093Q09
1Q103Q10
1Q113Q11
1Q123Q12
1Q133Q13
1Q143Q14
1.581.59
1.601.61
1.57
1.59 1.59
1.57
1.59
Credit Gross MDRDebit Gross MDR
Market Credit and Debit Gross MDR Evolution
BRAZIL | MARKET SHARE – TOP 4 ACQUIRERSCaptured volume [R$ Bi], market share [%]
26Source: Quartely earnings release (Cielo, Rede/Itaú, Santander and Banrisul); Cielo´s Analysis
1Q15
240
10.9%
4(1.8%)
18(7.7%)
91(37.9%)
127(52.6%)
4Q14
271
13.0%
5(1.7%)
20(7.3%)
103(38.0%)
144(53.1%)
3Q14
236
14.0%
4(1.6%)
15(6.5%)
88(37.4%)
129(54.5%)
2Q14
227
16.3%
3(1.5%)
13(6.0%)
84(37.2%)
125(55.3%)
1Q14
217
18.9%
3(1.4%)
12(5.7%)
82(37.7%)
120(55.2%)
4Q13
240
20.2%
3(1.4%)
14(5.7%)
92(38.1%)
132(54.8%)
3Q13
207
19.7%
3(1.3%)
11(5.2%)
81(38.9%)
113(54.6%)
2Q13
195
18.3%
2(1.2%)
10(5.0%)
76(39.2%)
106(54.6%)
1Q13
182
17.0%
2(1.2%)
9(4.7%)
74(40.6%)
98(53.6%)
5.8%
11.5%
47.8%
44.4%
1Q15yoy [%]
Cielo Rede Santander Banrisul Industry Growth
CIELO | eCommerce POSITION
Source: Company, Broker reports, Cybersource 27
Card
Slip
Acquirers
Gateways
Banks
Debit
Wallets/ Subacquirers
Copyright © Cielo | Todos os direitos reservados
CieloCapital
Investment of R$ 8.1 billion
30% 70%
Pro forma net income*
R$ 615 million 2014
Association
BBContributed
management of part of Arranjo
Ourocard*
*As per the due diligence performed during the negotiations
CatenoValued at
R$ 11.6 billion
*Scope of Arranjo Ourocard Association: Purchase transactions from all credit and debit cards issued by Banco do Brasil labeled by Visa, Mastercard, Elo and American Express brands, excluding the cards related to the prepaid business, payment solutions provided to government entities and private label cards issued under current partnerships with retailers .
Banco do Brasil´s cards division (before the Association)
ResponsibilitiesMarketing
Credit concession and analysis
Relationship with the cardholder
Loyalty Program
Collection
Client´s activation
Payment account management
Security management and control
Payment of fees to cards brands and payment arrangements
RevenuesFee related to the issuance of cards
Annuity
Fee related to pre-paid accounts
Fee related to the legal entity relationship program
Revenues related to operations of generating cards invoice installments
Arranjo Ourocard* interchange fee
Potential additional revenues
Ass
oci
ati
on
CATENO VALUED AT R$11.6 BILLION
28
Copyright © Cielo | Todos os direitos reservados29
Numbers (R$ million)
1) Cielo Consolidated
1Q15 1Q14 4Q14 1Q15 X 1Q14 1Q15 X 4Q14
Net Revenue 2,351.8 1,817.7 2,128.7 29.4% 10.5%
Cost+Expenses (1,321.6) (919.0) (1,318.2) 43.8% 0.3%
Cielo Net Income 911.8 802.7 803.0 13.6% 13.6%
3) Cielo Brazil
1Q15 1Q14 4Q14 1Q15 X 1Q14
1Q15 X 4Q14
Net Revenue 1,697.9 1,521.1 1,756.7 11.6% -3.3%
Cost+Expenses (740.5) (635.0) (927.3) 16.6% -20.1%
Cost+Expenses per transaction
R$0.52 R$0.48 R$0.59 7.9% -12.1%
Cielo Net Income 946.2 799.7 814.8 18.3% 16.1%
4) Other Subsidiaries
1Q15 1Q14 4Q14 1Q15 X 1Q14
1Q15 X 4Q14
Net Revenue 446.5 296.6 372.0 50.5% 20.0%
Cost+ Expenses (427.5) (284.0) (353.7) 50.5% 20.9%
Cielo Net Income 9.0 3.0 12.8 200.5% -29.6%
Cateno2) Cielo exCateno1Q15 1Q14 4Q14 1Q15 X 1Q14 1Q15 X 4Q14
Net Revenue 2,144.4 1,817.7 2,128.7 18.0% 0.7%
Cost+Expenses (1,168.0) (919.0) (1,281.0) 27.1% -8.8%
Cielo Net Income 955.2 802.7 827.6 19.0% 15.4%
Copyright © Cielo | Todos os direitos reservados30
Cateno 1Q15 (R$ Million)
Business Result Accounting Value
Net Revenue 207.3 207.3
Costs + Expenses (114.0) (114.0)
Amortization* - (32.1)
Result 93.3 61.2
Income Tax\ CSLL** (31.7) (20.8)
Net Income 61.6 40,8
Share Cielo – 70% 28.6
Financial expenses (post taxes)
(61.6)
Net contribution (33.0)
* Amortization of R$11.6 billion intangible assets in 30 years
Accretive from 2S16
“Cash Basis” (ex Cateno amortization)
Net Revenue 207.3
Costs + Expenses (114.0)
Amortization* -
Result 93.3
Income Tax\ CSLL** (20.8)
Net Result 72.5
Share Cielo – 70% 50.8
Financial expenses (post taxes)
(61.6)
Net contribution - cash basis (10.8)
Accretive from 2S17
Cateno ex extraordinary
** Social Contribution
CIELO | DEBT EVOLUTION
31
Total Indebtedness (R$ billion)
*Including Pre-payment with Issuing Banks
1. Public Debentures: 4.62. Private Debentures: 3.43. Bonds: 2.84. Finame: 0.5
Total: 11.4
5. Funding with issuing banks: 3.6
Total including funding with issuing banks: 15.0
0.0
0.5
1.0
1.5
2.0
2.5
3.0
-1,000
1,000
3,000
5,000
7,000
9,000
11,000
13,000
15,000
0.4x0.4x
0.6x
1.8x
0.8x
1.2x 1.0x
2.5x
Net Debt Evolution (R$ billion)
2012 2013 2014 03/31/2015
CIELO | DEBT AMORTIZATION SCHEDULE
32
“Ten-Year Bonds”
Private Debentures*
FINAME PSI (BNDES)
Principal Amortization Schedule* (R$ billion)
Public Debentures
* Private Debentures with Banco do Brasil. Amortization in 8 years but considering put/call in year 5.
Issuance of Loan (Bank of Tokyo-Mitsubishi UFJ)
2015 2016 2017 2018 2019 2020 2021 2022
0.2 0.2 0.1
1.51.5
1.5
0.6
3.5
2.8
2.4
1.6
0.2
1.5
3.5
2.8
26-Jun-09 26-Jun-10 26-Jun-11 26-Jun-12 26-Jun-13 26-Jun-14 26-Jun-1550.00
75.00
100.00
125.00
150.00
175.00
200.00
225.00
250.00
275.00
300.00
325.00
350.00
375.00
400.00
425.00
450.00
475.00
500.00
CIEL3 IBOV
R$42,39
54.016
CIELO | CIEL3 OUTPERFORMING IBOVStock performance (IPO date* = 100)
*06/29/2009 33
Copyright © Cielo | Todos os direitos reservados
RELATIONSwww.cielo.com.br/ri
E-mail: [email protected] Phone: + 55 11 2596-8458
INVESTOR