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 forwardlooking 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.
2
3. Four main reasons to be confident in
Multiplus case
4
3
2
First mover
1
Early stages
We are pioneers in this
industry in Brazil and we
already have a strong
partnership network,
Brazilian loyalty industry
highlighting LATAM
has very low
Airlines, all local banks
penetration and
presents solid growth
drivers
and the joint venture with
our international peer,
AIMIA Group.
Solid strategy
Track record
Our business sustainability
is based on network
Multiplus has already 3
years of proven focus on
diversification,
member engagement
shareholders return
with high dividend
payouts. Moreover, we are
continuously improving our
governance
structure following the
best market practices.
and value delivery to
partners
4. Four main reasons to be confident in
Multiplus case
4
3
2
First mover
1
Early stages
We are pioneers in this
industry in Brazil and we
already have a strong
partnership network,
Brazilian loyalty industry
highlighting LATAM
has very low
Airlines, all local banks
penetration and
presents solid growth
drivers
and the joint venture with
our international peer,
AIMIA Group.
Solid strategy
Track record
Our business sustainability
is based on network
Multiplus has already 3
years of proven focus on
diversification,
member engagement
shareholders return
with high dividend
payouts. Moreover, we are
continuously improving our
governance
structure following the
best market practices.
and value delivery to
partners
5. Brazilian loyalty industry is still in early stages
Penetration of loyalty programs in total population (%)
60,7%
43,8%
37,7%
28,9% 28,6%
24,1%
21,9%
Average (ex-Multiplus): 22.2%
19,5%
14,0% 12,9%
High growth potential
8,9%
5,2%
Sources: loyalty programs websites and each country statistic data bureau (Updated in Dec/2012)
5
4,1%
3,5%
2,5%
6. Multiple long term growth drivers
Credit Card usage
Expected double
digit growth for next 3 years
35% of customers understands that they have
enrolled in a bank loyalty program (vs. 31% in
Only
2011)
Air transportation
Latin America is the
region in RPK
trips per capita is only 0.5 in
Average
Brazil vs more than 3.0 in mature markets
Consumption
Possible
high single digit growth for next 3 years
second fastest growing
Wealth distribution
A/B classes expected to reach 15% in 2014 (vs
7% in 2003)
Loyalty culture still in the
6
early stages
Multiplus network focus on A,
B and C+
7. Coalition model: an evolution from traditional loyalty
scheme
Single Loyalty Scheme
Traditional Coalition Loyalty
Loyalty program managed by Coalition Co
Flexible Coalition Loyalty
Loyalty program managed by Coalition Co
Loyalty program managed by Partner
Commercial partners
• Limited number of partners
Members
• Low accumulation power
• Redemption option limited to airline
tickets
7
Commercial partners
• Access to a broader consumer base
• Limited capacity to attract new partners
(loyalty program managed by Coalition
Co.)
Members
• Better accumulation power
• More redemption options
Commercial partners
• Access to a broader consumer base
• More flexible structure is more
appealing for new partners (especially
those who already have an own loyalty
program)
Members
• Better accumulation power
• More redemption options
8. Sources of profit: coalition
THREE SOURCES OF PROFIT
points selling
redemption
1
unit revenue less unit cost
spread
3
# of months
0
~10
CASH IN
2
8
~10 months float
interest income
CASH OUT
point expiration
breakage
24
9. Four main reasons to be confident in
Multiplus case
4
3
2
First mover
1
Early stages
We are pioneers in this
industry in Brazil and we
already have a strong
partnership network,
Brazilian loyalty industry
highlighting LATAM
has very low
Airlines, all local banks
penetration and
presents solid growth
drivers
and the joint venture with
our international peer,
AIMIA Group.
Solid strategy
Track record
Our business sustainability
is based on network
Multiplus has already 3
years of proven focus on
diversification,
member engagement
shareholders return
with high dividend
payouts. Moreover, we are
continuously improving our
governance
structure following the
best market practices.
and value delivery to
partners
10. Created from TAM Fidelidade, Multiplus has already
three years of track record
Dez/2012
Multiplus
becomes one of
TOP 100 most
liquid stocks
in Bovespa
Oct/2011
Multiplus
presents its
new brand
Apr/2012
Multiplus
reaches 10 mn
members
Feb/2010
Multiplus’ IPO
1993
Creation of
TAM Fidelidade
Nov/2011
Announcement
of JV with AIMIA
2009
Spin-off from
TAM Fidelidade
10
Aug/2010
New headquarters
and IT loyalty platform
Mar/2012
Multiplus
reaches 200
partners
Mai/2013
launched the
new‖ campaign
on several
media vehicles
Oct/2013
Improved corporate
governance
structure
Jun/2013
Non-air redemptions
reached 8% for the
first time in a quarter
11. Consistent network growth
466 partners gain a powerful
support acquiring and retaining
clients
11.9
Members, in R$ million
mn members can gather
points from several programs in
one single account
11,9
Members (mn)
10,9
466
Partners
SMEs
369
Main partners
Total
9,4
190
8,0
151
2010
Note: based 3Q13
11
2011
2012
2013
2010
2011
2012
2013
13. Strategic long-term agreement with TAM Airlines
Exclusive relationship
Superior frequent
flyer program
High flexibility
Wide redemption
window
High recognition
to premium clients
13
15 years agreement
automatically renewable for additional 5-year periods
lower earn-to-burn ratios
redemptions via TAM, LAN and their airline partners
Points per seat vary according to flight fare with 100% availability,
improving Multiplus competitive advantage
up to 360 days
before flight date
fee exemptions, lowered points requirement, complimentary
upgrades and up to 100% bonus points
14. Solid relationship with banks
1 Activation
bonus points per each new credit card activated
2 Spending
bonus points according to the volume of points transferred
3 Targeting
segmented offers to engage an specific member group
Targeted redemption
offers
14
15. Four main reasons to be confident in
Multiplus case
4
3
2
First mover
1
Early stages
We are pioneers in this
industry in Brazil and we
already have a strong
partnership network,
Brazilian loyalty industry
highlighting LATAM
has very low
Airlines, all local banks
penetration and
presents solid growth
drivers
and the joint venture with
our international peer,
AIMIA Group.
Solid strategy
Track record
Our business sustainability
is based on network
Multiplus has already 3
years of proven focus on
diversification,
member engagement
shareholders return
with high dividend
payouts. Moreover, we are
continuously improving our
governance
structure following the
best market practices.
and value delivery to
partners
17. Cash generation and shareholders’ return
FCF* (BRL mn)
Dividends and Interest
on own capital (BRL mn)
589,0
861,3
460,6
489,4
387,8
222,4
225,2
2012
LTM Sep 13
112,3
2010
2011
2012
LTM Sep 13
*Excluding Dividends, Interest on Capital and variations of
Prepaid Expenses and Capital (2012 and 2013 are adjusted
with R$ 71.3 of anticipated settlement in Accounts Payable)
17
2010
2011*
*Including a BRL 600 million capital reduction
More than BRL 1.4 billion already distributed since the IPO
18. High corporate governance standards
1
2
Novo Mercado (New Market)
Related Parties Subjects
Special Committee
100% tag along rights
Independent members
3
Ordinary share only
4
30% of independent board
members
If rejected
The proposal needs
majority Board approval
5
If approved
The proposal needs
unanimity Board approval
Special Committee
Special Committee: Audit, Finance, Governance and Related Parties Committee
18
19. Four main reasons to be confident in
Multiplus case
4
3
2
First mover
1
Early stages
We are pioneers in this
industry in Brazil and we
already have a strong
partnership network,
Brazilian loyalty industry
highlighting LATAM
has very low
Airlines, all local banks
penetration and
presents solid growth
drivers
and the joint venture with
our international peer,
AIMIA Group.
Solid strategy
Track record
Our business sustainability
is based on network
Multiplus has already 3
years of proven focus on
diversification,
member engagement
shareholders return
with high dividend
payouts. Moreover, we are
continuously improving our
governance
structure following the
best market practices.
and value delivery to
partners
20. Diversification goals
Points sold
Current
Long term target
19%
78%
10 to 15%
3%
TAM
Retail, Industry and Services
Increased retail
share will help to
sustain margins and
improve members
engagement
Banks
Points redeemed
Long term target
Current
92%
8%
Air Tickets
Others
Note: based on LTM Sep/13
20
20 to 25%
Non-air
redemptions growth
supports unit cost
control and member
experience
improvement
22. Generate value to members and partners will sustain
growth
Adding value to partners
Creating a good member experience
•
•
•
•
•
•
•
•
•
•
•
•
•
sales increase
lower retention costs
vacancy management
new business insights based on client
data and behavior
develop loyalty schemes
data analytics services
Incentive campaigns
broad network
targeted offers
fair pricing
recognition
user friendly e-commerce platform
mobile applications
Branding, Innovation and Knowledge
Sustainable
Growth
22
26. Redemptions turn people more interested in
collecting points
redemption
Sample A members collect
Sample A
Sample B
no redemption
Sample A and B members
with same accrual behavior
Measuring accrual gap after
redemption date
Note: CRM analysis based on Multiplus‘ 2011-2012 data
26
about 60% more points
than Sample B members
during 12 months following
redemption date
27. Creating a good member experience: fair pricing
32-Inch LED TV
Multiplus
69,400
Program B
75,647
Program C
81,800
Program D
98,400
Program E
115,800
Dec/2012
Wine cellar
Program C
71,700
Dec/2012
27
Program B
48,600
Multiplus
35,900
28. Segmented offers by a balance of points generates
attractiveness
increases in
approximately 30% the amount of
sending offers
points redeemed within 3 days following
the sending (vs. average)
And contributes to the
activation rate
of members
28
29. Communication from the amount of points to expire
generates engagement
35% increase in the
number of members
who joined the
offers vs control group
29
30. Branding the emotional concept
Strategy
Functional
Emotional
Jan/2010 ~ Oct/2012
as of Oct/2012
Using Multiplus you can accumulate
points from different loyalty programs
in a single account
Redeem your points to have moments
you would never put on sale
Channels
Online media
30
Radio spots
Press media
Partner channels
33. New air-ticket redemption model:
Member experience and business sustainability
1 Stability of unit cost
The cap and floor ensure a maximum variation of 5% in unit cost
2
Alignment of
interests with the airline
Number of points per seat based on classes
3
Natural hedge
The international airline tickets are denominated in U.S. dollars
4 Attractiveness of the redemption offers
360 days window and more promotional offers
Effective since June 2013
33
34. New pricing model methodology
ILLUSTRATIVE
Previous model
Setup period
New pricing model
Multiplus` implicit discount
Unit cost (R$)
Discounted market price
Air tickets market price
Cap
Average
Floor
Today
12 months data gathering
Jun/2013
~Aug/2014
• Unit cost set according to a
combination of TAM’s
marginal cost and revenue
displacement
• Data gathering of
fares available
at redemption
moment
• Short term fluctuations due to
TAM’s promotional activity
• Discount
measurement
• Multiplus pays discounted
market price per seat
• 5% cap and floor protect margin
and guarantee business
sustainability
Long haul and South America flights priced in USD
34
35. Income statement (1/2)
3Q13
vs
3Q12
(R$ thousand)
Income Statement
Gross revenue
3Q12
3Q13
3Q13
vs
2Q13
2Q13
417,668
520,027
24.5%
439,332
18.4%
Sale of points
364,984
469,120
28.5%
379,447
23.6%
TAM Airlines
52,619
43,456
-17.4%
40,838
Banks, Retail, Industry and Services
6.4%
312,365
425,664
36.3%
338,609
Breakage
57,829
60,893
5.3%
64,532
-5.6%
Hedge
(5,956)
(10,661)
79.0%
(5,457)
95.4%
Other revenues
Taxes on sales
810
(39,226)
675
(49,155)
-16.7%
25.3%
810
(40,767)
25.7%
-16.7%
20.6%
Net Revenue
378,442
470,872
24.4%
398,565
18.1%
C ost of the points redeemed
(274,669)
(356,697)
29.9%
(286,634)
24.4%
(261,853)
(321,120)
22.6%
(270,388)
18.8%
Air tickets
Other products / services
Total cost of services rendered
Equity Share on Results from Investments
in JV
Gross Profit
Gross Margin
35
(12,816)
(35,577)
177.6%
(16,246)
119.0%
(274,669)
(356,697)
29.9%
(286,634)
24.4%
(1,081)
(2,082)
92.6%
(1,703)
22.2%
102,692
27.1%
112,093
23.8%
9.2%
-3.3p.p.
110,228
27.7%
1.7%
-3.9p.p.
36. Income statement (2/2)
3Q13
vs
3Q12
(R$ thousand)
Income Statement
Gross services
Sharedrevenue
Sale of points
Personnel expenses
TAM Airlines
Marketing
3Q12
3Q13
3Q13
vs
2Q13
2Q13
417,668
(1,907)
520,027
(882)
24.5%
-53.7%
439,332
(473)
18.4%
86.4%
364,984
(10,367)
469,120
(11,806)
28.5%
13.9%
379,447
(11,964)
23.6%
-1.3%
52,619
(4,394)
43,456
(8,027)
-17.4%
82.7%
40,838
(6,404)
6.4%
25.3%
25.7%
16.7%
Banks, Retail, Industry and Services
Depreciation
312,365
119
425,664
(2,308)
36.3%
-2036.6%
338,609
(1,978)
Breakage
Other
57,829
(14,955)
60,893
(17,047)
5.3%
14.0%
64,532
(16,539)
-5.6%
3.1%
(5,956)
(31,503)
(10,661)
(40,070)
79.0%
27.2%
(5,457)
(37,359)
95.4%
7.3%
Hedge
Total Operating Expenses
Other revenues
Taxes on sales
Total Costs and Operating Expenses
Net Revenue
Operating Income
C ost of the points
Operating Margin redeemed
Air tickets
Other products / services
Financial Income/Expenses
Total cost of services rendered
Hedge
Equity
IncomeShare on Results from Investments
before income tax and social
in JV
contribution
Gross Profit
Income tax and social contribution
Gross Margin
Net Income
Net Margin
36
810
675
(39,226)
(307,253)
(49,155)
(398,849)
378,442
-16.7%
810
-16.7%
(40,767)
(325,695)
470,872
25.3%
29.8%
24.4%
71,189
(274,669)
18.8%
(261,853)
72,023
(356,697)
15.3%
(321,120)
1.2%
29.9%
-3.5p.p.
22.6%
72,869
(286,634)
18.3%
(270,388)
-1.2%
24.4%
-3.0p.p.
(12,816)
20,972
(274,669)
9,691
(35,577)
25,977
(356,697)
(4,142)
177.6%
23.9%
29.9%
-142.7%
(16,246)
17,880
(286,634)
(7,972)
119.0%
45.3%
24.4%
-48.0%
(1,081)
101,852
(2,082)
93,858
92.6%
-7.8%
(1,703)
82,777
22.2%
13.4%
102,692
(35,274)
112,093
(31,662)
110,228
(25,342)
27.1%
23.8%
9.2%
-10.2%
-3.3p.p.
1.7%
24.9%
-3.9p.p.
-6.6%
57,434
66,578
17.6%
62,196
13.2%
-4.4p.p.
398,565
27.7%
14.4%
20.6%
22.5%
18.1%
18.8%
8.3%
-1.2p.p.
37. Balance sheet: assets
(R$ thousand)
Balance Sheet
3Q12
3Q13
vs
3Q12
3Q13
3Q13
vs
2Q13
2Q13
Assets
1,470,506
1,533,838
4.3%
1,529,342
0.3%
Current assets
1,367,809
1,452,130
6.2%
1,437,166
1.0%
3,410
58.3%
747,623
27.7%
C ash and cash equivalentes
791
5,399
1,004,160
954,572
Financial assets held-to-maturity
164,700
13,072
Accounts receivable
157,084
162,310
3.3%
3,302
4,264
29.1%
20,592
299,676
Financial assets at fair value through profit and loss
Deferred income tax and social contribution
Related Parties
Derivative instruments
582.6%
-4.9%
-92.1%
1355.3%
12,782
2.3%
215,802
-24.8%
5,269
-19.1%
429,630
-30.2%
-
-
N.A.
-
N.A.
Prepaid expenses
5,089
-
-100.0%
-
N.A.
Other receivables
12,091
12,837
6.2%
22,650
-43.3%
102,697
81,708
92,176
-11.4%
Non-current assets
Financial assets - bank deposits
-
Financial assets held-to-maturity
Deferred income tax
Derivative financial instruments
Other accounts receivable
-20.4%
-
N.A.
12,113
-
19,562
10,067
-
68
-
N.A.
-100.0%
-
N.A.
-48.5%
16,008
-37.1%
-100.0%
-
N.A.
12,754
532
-95.8%
5,293
-89.9%
Investments
5,491
9,181
67.2%
11,263
-18.5%
Property, plant and equipment
2,370
6,942
3,951
75.7%
50,339
54,986
9.2%
55,661
-1.2%
-
-
N.A.
-
N.A.
Intangible assets
Related Parties
37
192.9%
38. Balance sheet: liabilities and shareholders' equity
(R$ thousand)
Balance Sheet
3Q12
3Q13
vs
3Q12
3Q13
3Q13
vs
2Q13
2Q13
Liabilities and shareholders' equity
Assets
1,470,506
1,533,838
4.3%
1,529,342
0.3%
Current liabilities
assets
1,219,161
1,367,809
1,365,449
1,452,130
12.0%
6.2%
1,378,760
1,437,166
-1.0%
1.0%
Suppliers cash equivalentes
C ash and
122,222
791
154,240
5,399
26.2%
582.6%
151,022
3,410
2.1%
58.3%
9,415
1,004,160
12,187
954,572
29.4%
-4.9%
9,509
747,623
28.2%
27.7%
Tax, charges and contributions
Financial assets held-to-maturity
3,767
164,700
4,113
13,072
9.2%
-92.1%
3,963
12,782
Income and social contribution tax
Accounts receivable
24,104
157,084
9,870
162,310
-59.1%
3.3%
12,523
215,802
-21.2%
-24.8%
N.A.
29.1%
5,269
N.A.
-19.1%
34,870
429,630
-53.3%
-30.2%
Salaries and payroll taxes
Financial assets at fair value through profit and loss
Interest on own capital and dividends
Deferred income tax and social contribution
3,302
4,264
32,522
20,592
16,294
299,676
Deferred revenue
Derivative instruments
875,464
-
1,031,089
-
Breakage liabilities
Prepaid expenses
140,801
5,089
134,054
-
Other liabilities
receivables
10,866
12,091
3,602
12,837
Dividends payable
-
-
Derivative financial instruments
Related Parties
Non-current assets
-49.9%
1355.3%
3.8%
2.3%
1,022,699
-
0.8%
N.A.
-4.8%
-100.0%
136,676
-
-1.9%
N.A.
-66.9%
6.2%
7,498
22,650
-52.0%
-43.3%
N.A.
-
17.8%
N.A.
N.A.
102,697
81,708
-20.4%
92,176
Non-current liabilities
Financial assets - bank deposits
9,595
-
99
-
-99.0%
N.A.
107
-
Related parties held-to-maturity
Financial assets
12,113
-
N.A.
-100.0%
-
N.A.
Derivative financial instruments
Deferred income tax
9,464
19,562
10,067
-100.0%
-48.5%
16,008
N.A.
-37.1%
Deferred revenue instruments
Derivative financial
131
68
-99
-24.4%
-100.0%
107
-
-7.5%
N.A.
12,754
532
-95.8%
5,293
-89.9%
241,750
5,491
168,290
9,181
-30.4%
67.2%
150,475
11,263
11.8%
-18.5%
100,555
2,370
102,886
6,942
2.3%
192.9%
102,886
3,951
Other accounts receivable
Equity
Investments
Share capital and equipment
Property, plant
-11.4%
-7.5%
N.A.
0.0%
75.7%
C apital reserve
Intangible assets
(4,956)
50,339
333
54,986
-106.7%
9.2%
(996)
55,661
-133.4%
-1.2%
EarningsParties
Related reserve
18,744
-
20,577
-
9.8%
N.A.
20,577
-
0.0%
N.A.
C arrying value adjustments
(44,024)
(22,718)
-48.4%
(31,570)
-28.0%
Retained Earnings (loss)
171,431
-60.8%
59,578
12.8%
38
67,212
39. Thank you!
Contact IR Team
+55 11 5105-1847
invest@pontosmultiplus.com.br
www.pontosmultiplus.com.br/ir
Ronald Domingues
Ivan Bonfanti
Filipe Scalco
Fernanda Camiña
