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Raymond James 2012 Global Airline Conference
February 2nd 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.
points from several programs in
one single account
Multiplus is a growing loyalty network
3
around 9 mln members
almost170 partnerships
+17.0% YoY +26.3% YoY
powerful support for partners to
acquire and retain clients
positive network effect
generating strong growth
20.0 bln points sold in 3Q11
+38.5% YoY
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
Multiplus
2009: spin-off from TAM’s loyalty program
2010: launched as separated business unit and IPO
TAM SA holds 73,2% stake
Note: based on 3Q11
Network connecting people and companies
# of months ~10 0 24
$
$
points selling redemption
unit revenue less unit cost
spread $
CASH IN CASH OUT ~10 months float
interest income
point expiration
breakage
outsourcing and CRM
services $
Innovative business model
4
Debt free
Negative working capital Scalable business
Strong cash generation Low CAPEX requirement
Dividend player
Sources of Profit
(Joint Venture)
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
Beauty and
Healthy Home Centers Car Rental Group Buying Cargo Groceries Gym Food
Universities
Real Estate
Stock Broker
Insurance
e-Commerce
Stock Exchange
5
… and strong accrual and growing redemption network*
Redemption Accrual
*non exhaustive
Financial Institutions
6
Hotels
Car Rental Retail and others
Magazines and Newspapers
Charity
Other
Leisure
how?
24%
3%
73%
Current
TAM Retail, Industry and Services Banks
Strategy: to diversify gross billings and redemptions
7
Note: based on 3Q11
Long term target
98%
2%
Current
Air Tickets Others
Long term target
15 to 20%
15 to 20%
Costs of rewards
Gross billings of points
• 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
133 151
166 161 168
7 12 15 19 20
3Q10 4Q10 1Q11 2Q11 3Q11Total Coalition
Expanding partnerships network
8
Groceries, entertainment, restaurants,
beauty, others.
Drugstore Group buying
Pension Plan Car Rental
NOTE: Some partnerships with bad performance were canceled in 2Q11.
Increasing non-airline redemptions
Expanding partnership network
#
+4.3% +26.3%
As % of total points redeemed
NOTE: it includes points issued before 2010 (TAM’s inventory)
0,8% 0,8% 0,9%
2,0%
3,2%
3Q10 4Q10 1Q11 2Q11 3Q11
New partnerships
Roadmap
Tickets Charity
Increasing marketing actions
9
TV commercial On board videos
(collect points here)
Radio spots, etc
Expanding member base
In millions
7,6 8,0 8,3 8,6 8,9
3Q10 4Q10 1Q11 2Q11 3Q11
+3.7% +17.4%
R$ millions
Growing gross billings
300,0 325,2 339,9 354,6 397,3
3Q10 4Q10 1Q11 2Q11 3Q11
+12.1% 32.4%
Press media
Point-of-sale materials
Media investments Together is so much better. Together is Multiplus.
Improving client experience
10
Accrual and balance checking at the point-of-sale
• spread the loyalty concept
• speed up the capillarity strategy penetrating new market segments
• increase sales in retail market
Standard rule: 1 Real ($) = 1 Multiplus point
Special rules allowed (such as minimum ticket) adding more value to the partner
Multiplus as one product of Redecard’s sales team
Call Center improvements
Educational mailings
Systems improvements
Point of Sale
New website coming soon Other actions
11
Loyalty market has multiples growth opportunities
*Note: Average income of classes D and E - R$ 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) 23%
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
2006 2007 2008 2009 2010
1,4291,594
1,7871,966
2,226
2006 2007 2008 2009 2010
4044
48
57
70
2006 2007 2008 2009 2010
Multiplus’
target
2014 2003
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
Thank you.