20150730 webcast 2_q15

Copyright © Cielo | Todos os direitos reservados

2Q15 – EARNINGS PRESENTATION

July 30, 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.

2


2Q15 HIGHLIGHTS

3

• Net Income totaled R$869.4 million, +9.1% and Net Margin of 31.1%

• EBITDA totaled R$1,355.8 million, 41.9% and EBITDA Margin of 48.5%

• Transaction Financial Volume totaled R$129.7 billion, +3.5%

• Net Operating Revenue R$2.8 billion, +51.9%

• 1º place in Services segment according to the ranking “Biggest and Best” (Maiores e Melhores), from Exame Magazine for the ninth consecutive time;

• Cielo hold a 30% stake in Stelo;

• Issuance of loan in June 19, 2015, accounting R$630 million at an equivalent rate

of 99.4% of the CDI (Interbank Certificate Deposit);

• Cielo integrated the Euronext-Vigeo EM70 Emerging Market Sustainability Index;

• Cielo remains integrating, as the unique Latam company, the world security of information council (PCI Standard Council);

• “Entre as Melhores Empresas para Começar a Carreira” (Among the Best Companies to Start your Career), Você S/A Magazine ranking, for the fifth consecutive time;

• 11º place among the most valuable brands in Brazil, according to a research performed by Dinheiro/ BrandAnalytics;

• Among brazilian ten most innovative companies according to Brazil Innovation Ranking

(Ranking Inovação Brasil), developed by “Valor Econômico” newspaper joint to Strategy&

consulting;

• Adjusted Net Income totaled R$936.9 million, +17.6%


2Q14 2Q15

75,979 75,484 77,434

43,896 49,568 49,796

5,464 1,487 2,468

TRANSACTION FINANCIAL VOLUME

Annual and Quarterly Evolution (R$ million)

125,338 129,698

3.5%

4

Credit Debit

126,539

1Q15

*Agro: Specific product of agricultural sector The financial volume does not include subsidiaries transactions, i.e., it comprises the financial volume of the Cielo Brazil only.

2.5%

Agro*


625 610 659

734 815

836

2Q14 2Q15

1,495

1,359

10.0%

5

1Q15

1,425

4.9%

Annual and Quarterly Evolution (million)

NUMBER OF TRANSACTIONS

Credit Debit

The number of transactions does not include transactions of subsidiaries, that is, it has the number of transactions of Cielo Brazil only.


OPERATIONAL INDICATORS

6

1,892 2,020 2,071

1,473

1,637 1,674

2Q14 1Q15 2Q15

2.5%

13.6%

2.3%

POS Terminals*

Points of Sales Merchants (30 days)**

9.5%

Annual and Quarterly Evolution (Thousand)

*Does not include Cielo Mobile card reader ** Points of Sales Merchants are those that have made at least a single transaction in the last 30 days .


4) Cielo Brazil

2Q15 2Q14 1Q15 2Q15 X

2Q14

2Q15 X

1Q15

Net Revenue 1,710.9 1,535.0 1,697.9 11.5% 0.8%

Cost+Expenses (767.4) (694.4) (740.5) 10.5% 3.6%

Cost+Expenses

per transaction

R$0.51 R$0.51 R$0.52 0.0% -1.9%

Cielo Net

Income

943.6 796.4 946.2 18.5% -0.3%

5) Other Subsidiaries

2Q15 2Q14 1Q15 2Q15 X

2Q14

2Q15 X

1Q15

Net Revenue 513.2 305.7 446.5 67.9% 14.9%

Cost+Expenses (494.1) (294.6) (427.5) 67.7% 15.6%

Cielo Net

Income

13.0 0.4 9.0 3,150.0% 44.4%

3) Cateno

2Q15 1Q15 2Q15 X 1Q15

Net Revenue 571.7 207.3 175.7%

Cost+Expenses (308.1) (121.6) 153.3%

Amortization (96.4) (32.1) 200.3%

Net Contribution (87.2) (43.5)* 100.7%

7

1) Cielo Consolidated

2Q15 2Q14 1Q15 2Q15 X 2Q14 2Q15 X 1Q15

Net Revenue 2,795.8 1,840.7 2,351.8 51.9% 18.9%

Cost+Expenses (1,666.0) (989.0) (1,321.6) 68.5% 26.1%

Cielo Net Income 869.4 796.8 911.8 9.1% -4.6%

Numbers (R$ million)

2) Cielo ex Cateno and Fin. Exp.

2Q15 2Q14 1Q15 2Q15 X

2Q14

2Q15 X

1Q15

Net Revenue 2,224.1 1,840.7 2,144.4 20.8% 3.7%

Cost+Expenses (1,261.5) (989.0) (1,168.0) 27.6% 8.0%

Cielo Net Income 956.6 796.8 955.2 20.1% 0.1%

(*) In Cateno´s 2Q2015 results were added extraordinary cost + expenses with consultants, lawyers and banks related to association process with Banco do Brasil, in the amount of R$ 10MM, net of tax effect.

Copyright © Cielo | Todos os direitos reservados 8

Cateno

* Amortization of R$11.6 billion intangible assets in 30 years

** Social Contribution

Cateno 2Q15 (R$ Million)

Business

Result

Accounting

Value “Cash Basis”

(ex Cateno amortization)

Net Revenue 571.7 571.7 Net Revenue 571.7

Costs + Expenses (308.1) (308.1) Costs + Expenses (308.1)

Amortization * - (96.4) Amortization * -

Operating Income 263.6 167.1 Operating Income 263.6

Financial Income 19.6 19.6 Financial Income 19.6

Income Tax\ CSLL** (96.3) (63.5) Income Tax\ CSLL** (63.5)

Net Income 186.9 123.2 Net Income 219.7

Share Cielo – 70% 86.3 Share Cielo – 70% 153.8

Financial Expenses (173.5)

Financial Expenses (173.5)

(post taxes) (post taxes)

Net contribution (87.2) Net contribution – Cash Basis (19.7)

Accretive

from 2S16

Accretive

from 2S17

Copyright © Cielo | Todos os direitos reservados 9

“Cash Basis”

(ex Cateno

amortization)

Net Revenue 571.7

Cost+Expenses (308.1)

Net Contribution - “cash

basis” (19.7)

1) Cielo Consolidated

2Q15 2Q14 1Q15 2Q15 X 2Q14 2Q15 X 1Q15

Net Revenue 2,795.8 1,840.7 2,351.8 51.9% 18.9%

Cost+Expenses (1,666.0) (989.0) (1,321.6) 68.5% 26.1%

Cielo Net Income 869.4 796.8 911,8 9.1% -4.6%

2) Cielo ex Cateno and Fin. Exp.

2Q15 2Q14 1Q15 2Q15 X

2Q14

2Q15 X

1Q15

Net Revenue 2,224.1 1,840.7 2,144.4 20.8% 3.7%

Cost+Expenses (1,261.5) (989.0) (1,168.0) 27.6% 8.0%

Cielo Net Income 956.6 796.8 955.2 20.1% 0.1%

Net Income Adjustment composition (R$ million)

Cielo’s Net Income excluding Cateno and financial expenses 956.6

Cateno’s Net Contribution - “cash basis” (19.7)

Cielo’s Adjusted Net Income 936.9

Adjusted Income 2Q15 (R$ million)

10

PREPAYMENT OF RECEIVABLES

MANAGERIAL

ANALYSIS (R$ million)

2Q15 2Q14 1Q15 2Q15x

2Q14

2Q15x

1Q15

Gross Revenue of Prepayment

of Receivables

593.3 439.1 536.9 35.1% 10.5%

Managerial Cost of Funding* (282.3) (221.0) (271.8) 27.8% 3.9%

Managerial Net Revenue 311.0 218.1 265.1 42.6% 17.3%

*Assuming the cost of 104% of CDI in Financial Volume of Prepayment

9,279 (68.4%)

9,789 (66.2%)

10,038 (69.9%)

4,287 (31.6%)

4,998 (33.8%)

4,323 (30.1%)

17.9% 19.6%

18.5%

2Q14 1Q15 2Q15

5.9% -2.9%

13,566 14,787 14,360


%Pre-paid Volume from Credit Installments

% Prepayment over Total Credit Volume

%Pre-paid Volume from Regular Credit

Prepayment of Receivables

Result 351.6 462.9 493.6


2Q14 2Q15

EBITDA

11


EBITDA MARGIN EBITDA

1Q15

41.9%

955.5

1,186.6

1,355.8

51.9%

50.5% 48.5%

14.3%


NET INCOME

2Q14 1Q15

12

NET MARGIN NET INCOME


2Q15

796.8

911.8 869.4

9.1%

43.3% 38.8% 31.1%

- 4.6%

INDEBTEDNESS Total Indebtedness (R$ billion)

*Including Pre-payment with Issuing Banks 13

1. Public Debentures: 4.7

2. Private Debentures: 3.5

3. Bonds: 2.7

4. Finame: 0.4

5. FINEP: 0.1

6. Loan Issuance:0.6

Total: 12.0

7. Funding with issuing

banks: 2.2

Total including funding with

issuing banks: 14.2

IoE : R$0.06 gross per share

Dividends: R$0.22 per share

30% of Payout

14

REMUNERATION

AMOUNT PER SHARE

REMUNERATION

REGARDING 1H2015

PAYOUT

IoE : R$ 114.1 million

Dividends: R$ 410.7 million

IoE= Interest on Equity


INVESTOR RELATIONS

www.cielo.com.br/ir

E-mail: [email protected]

Phone: + 55 11 2596-1616

Investor Relations

20150730 webcast 2_q15