2Q10 Earnings ReleaseEarnings Release
August 4, 2010
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
2
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.
2Q10 Highlights
OPERATING HIGHLIGHTS 2Q10 vs 1Q10
• 7.2 mln members, an increase of 4.1% (19.7% versus 2Q09)
• 12.2 bln points issued, a growth of 16.8%
• 3.2 bln points redeemed, an increase of 143.3%
• 125 accrual partnerships, representing an net increase of 4 partnerships
• 7 coalition partnerships, including the most recent partnership with Oi (telecom company)
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• 7 coalition partnerships, including the most recent partnership with Oi (telecom company)
• Breakage ratio of 28.7%, compared to 29.5%
FINANCIAL HIGHLIGHTS 2Q10 vs 1Q10
• Gross Billings of points of R$ 264.0 mln, an increase of 14.6%
• Net Revenue of R$ 93.5 mln, representing a growth of 129.2%
• Adjusted EBITDA of R$ 90,2 mln, a growth of 11,8% (34,2% margin)
• Net Income of R$ 23,1 mln, an increase of 209,2% (24,7% margin)
7.2125
Operating Performance (1/2)
million
+4.1%
MEMBERS PARTNERSHIPS
Quantity
6.9
1Q10 2Q10
121 125
7 7
1Q10 2Q10
Accrual Coalition
4
Operating Performance (2/2)
BREAKAGE RATIO
%
-80 bps
BURN/EARN RATIO (PRO FORMA)*
%
+470 bps
63.1%67.8%
1Q10 2Q10
5
29.5% 28.7%
1Q10 2Q10
*considering 100% of the redeemed points
12.2264.0
Points Issued and Gross Billings
In billions R$ million
+14.6%
POINTS ISSUED GROSS BILLINGS OF POINTS
+16.8%
10.5
12.2
1Q10 2Q10
230.3
264.0
1Q10 2Q10
6
Financial Performance
NET REVENUE
R$ million
+129.2%
POINTS REDEEMED
In billions
1.3
3.2
+143.3%
40.8
93.5
8.1
11.1
1Q10 2Q10
21.7
51.2
1Q10 2Q10
7
OPERATING EXPENSES (SG&A)Adjusted EBITDA
R$ million R$ million
COSTS OF SERVICES RENDERED (COGS)
+135.8% +36.2%
1Q10 2Q10 1Q10 2Q10
90.2
23.1
Net Income and Adjusted EBITDA
R$ milhões R$ milhões
+209.2%
NET INCOME ADJUSTED EBITDA
+11.8%
80.7
90.2
1Q10 2Q10
7.5
1Q10 2Q10
8
18.3% 24.7%Margin 35.0% 34.2%
Cash Reconciliation (2Q10)
R$ million
63.4
31.7
64.6
9
336.3
399.7
496.0
Cash and bank
balances
Amounts
Received in Jul/10
(Related Parties)
Net cash Flow Account
Receivables
Related Parties
Receivable
Total Received
and Receivables
Promised and Delivered
CORPORATE GOVERNANCE
• New CEO
• New head office as the first stepfor Multiplus’ values and culture
• Own marketing structure focused on retail segment
SIEBEL LOYALTY
Implementation will allow:
• Simultaneous operation of different loyalty programs
• Improvement of commercial capacity through Customer Portal and Customer Service
• Agility in the inclusion of new partners and faster transaction processing
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DIVIDENDS AND INTEREST ON EQUITY
• Total amount: R$ 29.0 mln (R$ 0.18 per share)
• Dividends: R$ 13.9 mln (R$ 0.086 per share)
• Interest on Equity: R$ 15,2 mln (R$ 0.094 per share)
• Ex-date: August 5, 2010
• Payment date: August 18, 2010
95% dividend Pay-out in the 1st semester of 2010
segment
• Migration of TAM’s agreements to Multiplus
transaction processing
• Increase of data storage capacity
Investment Highlights and Growth Strategyand Growth Strategy
Flexible Business
Model1
Broad Exclusive
and
Investment Highlights
High growth potential
3
Broad Partnership
Network2
High Corporate
Governance Standards
4
and Strategic
Relationship with TAM
5
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Flexible Business Model
Partner A
Partner
Program
Partner
PartnerC
PartnerD
PartnerB
Partner
ProgramA
CRM
ACCRUAL COALITION OUTSOURCING CRM
AAPartner
A
PartnerA
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
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growthopportunities
increases the attractiveness of partners’ loyalty program by connecting them to Multiplus
reaches more sectors and companies
Broad Partnership Network
OTHER PARTNERSTRAVELFINANCIAL
INSTITUTIONSCOALITION PARTNERS
Airlines
NON EXHAUSTIVE
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High penetration potential in several other industries: financial, retail,
clothing, education, public sector, corporate programs, etc
1294 1429 15941812 1972
Growth Opportunities
Personal Consumption Expenditure (R$ billions)
CAGR +11%
INCREASING CONSUMPTION STILL LOW GDP PER CAPITA
000’ US$ per capita, 2009E
7,7 8,416,4
35,742,1
46,4
4044
48
56
2006 2007 2008 2009
142174
215
256
309
2006 2007 2008 2009 2010E
2005 2006 2007 2008 2009
15
Credit Card Transaction Value (R$ billions)
CAGR +22%
CREDIT CARD USAGE EXPANSION
Source: IBGE
Source: ABECS
INCREASING PASSENGER TRAFFIC
RPK in Brazil (billions)
Growth
(%YoY)10% 9% 17%12%
Brazil Turkey South Korea UK France USA
Source: ANAC
Source: FMI
Exclusive and Strategic Relationship with TAM Leads to Significant Competitive Advantage
● Leading airline in the Brazilian market and largest airline in Latin America
● Only Brazilian company with long haul flights
Operational Agreement Assures the Most Appealing Products to the Members = Air TicketsOperational Agreement Assures the Most Appealing Products to the Members = Air Tickets
Airlines
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● 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 (over 1,000 destinations)
● 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
Multiplus Growth Strategy
Expand our Commercial Partners Network
Expand Redemption Options, focusing on increasing margin
Attracting additional Members and broadening targeted social classes
1
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Expand our products offer with differentiated services based on increased systems capability and enhanced Partners database
Develop Multiplus’ capacity to allow
accrual and redemption at the Partners’ Point of Sales
2
3
Thank you.Thank you.
Investor Relations
+55 11 5582 9890
www.multiplusfidelidade.com.br/ir