Date post: | 24-Jan-2015 |
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Cielo RÔMULO DE MELLO DIAS CEO
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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.
The Company makes forward looking statements that are subject to risks
and uncertainties. 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.
DISCLAIMER
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CIELO GROUP Cielo is a group well focused on capturing new avenues of
growth, such as eCommerce and mobile payment
E-commerce Mobile Mobile Health Care
IT Platform
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5
MISSION
Be the international benchmark solutions and transactional services network.
INNOVATION AND
DIFFERENTIATION STRATEGY
Our DNA is made of Innovation…
Dedicated team in the company
… and the results are striking!! Best e-Commerce platform
Continuous launch/improvement of producs
Resources commited to the subject
Innovation Forum with participation of several areas
Unprecedented Partnership with Facebook
First Acquirer to launch mobile payment
Development of Cielo Premia with total client’s focus
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BRAZILIAN MARKET
Source: IBGE,ABECS
1,594 1,787
1,980 2,249
2,499 2,745
723 741
2007 2008 2009 2010 2011 2012 1Q13 2Q13
Consumer Expedinture (R$ billion)
16,4% 18,4%
19,9% 21,7%
24,1% 25,9%
25,2% 26,3%
2007 2008 2009 2010 2011 2012 1Q13 2Q13
Card Expenditure over Consumer Expenditure (%)
Card Expenditure (R$ billion)*
2007 2008 2009 2010 2011 2012 1Q13 2Q13
262 329
394
487
601 710
182 195
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BRAZIL’S FUTURE POSITION Penetration of cards as a means of payment should reach levels close to (40%)
2011 2012 Source: Datamonitor analysis, BIS, World Bank, Abecs, BACEN, US Census Bureau
8,8% 9,8%
19,7%
23,7% 24,1% 25,9% 27,2%
28,8% 32,2% 31,8%
29,8%
34,9% 38%
40%
54% 54,2% 53,5% 55%
80,5% 83,6%
MEXICO CHILE BRAZIL INDIA ARGENTINA TURKEY USA UK CANADA SOUTH
KOREA
PCE%
Card Expenditure over Consumer Expenditure (%)
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Company delisting
Acquisition of controlling
interest
Incorporation of the
Acquiring operation
UNIQUE BUSINESS MODEL
ACQUIRER
Cielo acts jointly with partner banks to fight this model
BANK
Development of combined offers and
actions to customers
Joint Strategy
Greater Distribuition
Competitors adopted a position based on the bank-acquirer model
2013 STRATEGY
CIELO’S HIGHLIGHTS 1S13
POS software Update, faster transactions and modern menus
Enhancement of information available to customers
Improvement of new customer registration process
ACTIONS FOR EXCELENCE
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90% 82%
62%
48%
10% 18%
38%
52%
Wired POS
Wireless POS
Old New
ACTIONS FOR EXCELLENCE
CIELO’S HIGHLIGHTS 1S13
In June 2013, Wireless POS became more relevant than Wired POS
POS Software Update, faster transactions and modern menus
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AN EVEN MORE CHALLENGING SCENARIO FOR CIELO
EXPECTATION
GREATER COMPETITION
Challenging Scenario with competitors
Relevant hiring by both traditional players as well as new players
Competitors growing with regional action
Announcements of Partnerships between banks and new players
Entrance announcement of new local competitors on acquiring business
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26,8%
22,9% 19,5%
12,5% 11,6% 14,2%
4Q12 1Q12 3Q12 2Q12 1Q13 2Q13
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The share of cards in the PCE* consumption grows at
lower rate, despite recent acceleration in 2Q13
In inspite of the 1S13 improvement, Cielo is challenged to grow on
a historically high captured financial volume basis
“LAW OF LARGE NUMBERS”
QUARTERLY GROWTH ON FINANCIAL CAPTURED VOLUME BY CIELO
STATISTIC CHALLENGE
RECENT EVOLUTION OF REGULAMENTARY SCENARIO
Law 12.865
Defines Bacen as regulator for the electronic payment industry
EUROPA
USA European Comission debates on
taxs limitation in 0,2% for debit and
0,3% for credit New discussion of Durbin Amend, cap reduction from $0,21 to $0,12 for debit
Discussions for interchange:
MAIN MOVIMENTS AND EXPECATIONS
SOURCE: Thomson Reuters
EV and Price Multiples calculated using price as of 10/24/13 FX: BRL 2.18 (25/10/13)
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CIELO IS WELL POSITIONED AMONG THE INTERNATIONAL LISTED PLAYERS IN THE CARD BUSINESS UNIVERSE
INTERESTING NAME INTERNATIONALLY
Company Mkt Cap
(US dollars P/E EPS Growth EV/EBITDA Dividend Yield
2013 2014 2013 2014 2013 2014 2013 2014
Acquirers
Cielo 23.529,0 18.5 16.9 3.39 3.71 13.0 11.9 3.33% 4.6%
Vantiv 5.290,0 16.9 14.7 1.58 1.82 11.9 10.5 0 0
Global Payments 4.347,0 17.4 13.4 4.02 4.39 8.9 8.3 0.15% 0
Heartland Payment 1.562,0 19.8 17.4 1.96 2.23 10.1 9.0 0.72% 0.7%
Cards Associations
American Express 86.644,0 15.0 13.6 4.87 5.35 - - 1.26% 1.3%
Visa 156.625,0 24.0 20.5 7.59 8.9 18.4 16.4 0.71% 0.9%
Mastercard 87.415,0 25.0 21.3 26.16 30.72 14.8 13.0 0.36% 0.4%
Discover 24.794,0 9.9 9.8 4.9 5.0 9.0 9.7 1.61% 1.9%
Transaction Processing
Fidelity 13.869,0 16.0 14.4 2.83 3.14 9.4 8.9 1.92% 1.7%
Total System Services 5.730,0
16.7 14.1 1.7 2.02 8.7 7.1 1.38% 1.4%
Verifone 2.483,0 15.5 14.3 1.43 1.56 10.2 9.9 n.a. n.a.
Paychex 15.649,0 23.4 21.8 1.69 1.81 9.2 8.7 3.53% n.a.
Software
Linx 1.816,0 20.7 17.8 1.73 2.01 13.9 12.2 1.9% 2.4%
Totvs 6.039,0 25.8 21.2 1.5 1.83 19.1 15.8 0.33% 2.0%
Source: Reuters, Ibovespa Base 100: 06/29/09 (Incluing dividends)
MARKET PRICE
(FROM June/29/09 up to Oct/24/13)
50
100
150
200
250
300
jun/1
2
mar/
13
jul/12
mai/12
abr/
12
out/
12
jan/1
3
nov/1
2
fev/1
3
jul/13
jun/1
3
set/
11
nov/1
1
out/
11
set/
12
dez/1
1
ago/1
2
dez/1
2
abr/
13
jun/0
9
set/
13
out/
13
set/
10
ago/1
0
jul/10
jun/1
0
mai/10
mai/13
nov/0
9
out/
09
jan/1
2
mar/
11
fev/1
1
ago/1
3
ago/1
1
jul/11
jan/1
1
dez/1
0
mar/
12
fev/1
2
set/
09
ago/0
9
jul/09
nov/1
0
out/
10
abr/
10
mar/
10
fev/1
0
jan/1
0
dez/0
9
jun/1
1
mai/11
abr/
11
% variation
+183.9%
+9.2%
+98.6% Até 12/28
+28.8% Até 12/28
Up to 12/28/12 Up to 10/24/13 Up to 10/17/12
+31.9% Até10/17
+26.8% Até 10/17
+80.9% Até 10/17
CIELO REDE BOVESPA
EVOLUTION OF MARKET SHARE PRICE SINCE THE IPO (INCLUDING DIVIDENDS
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INVESTIMENT CASE
Leader in a growing market
* After constitution of legal reserve of 20% of the
Company´s capital stock
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
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2013 ARWARDS
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The Company was chosen among the "Best Places to Start a
Career" by the guide in Você S/A Magazine for the 3rd
consecutive year
1st place in the Services category in the ranking “Best and Biggest”, awarded by Exame
Magazine for the 7th consecutive year
Best company in the Financial Services category in the year book “Época Negócios 360º”,
awarded by Época Negócios Magazine – awarded for the 2nd consecutive year
Best company in the Financial Services category in the ranking “The Best From
Dinheiro 2013”, awarded by Istoé Dinheiro Magazine - awarded for the 3rd
consecutive year
1st place in the Financial Services category among the most innovative
companies in the customer relationship, according to ranking in the Consumidor
Moderno Magazine / Dom Strategy Partners
Included among the 20 most valuable brands in Brazil in the ranking from
Istoé Dinheiro Magazine in partnership with BrandAnalytics/Millward Brown
Elected one of the 150 Best Companies to Work, in the ranking of
Você S/A Magazine (by Great Place to Work Insitute) - awarded for
the 13th consecutive year
2nd place in the ranking “The Best in People Management”,
in the category from 1.001 up to 2.000 employees, in the
ranking of Valor Econômico and Aon Hewitt
1st place in the Financial Instituitions category
(except for banks) in the ranking 2013 Latin
America Executive Team, in the Institutional
Investor magazine: Best Investor Relations team,
Best CEO and Best CFO, chosen by both the sell
side and the buy side, and best IR Prodessional,
by the buy side
Cielo ROMULO DIAS CEO
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INVESTOR RELATIONS
www.cielo.com.br/ri E-mail: [email protected]
Phone: + 55 11 2184 7722