INSTITUTIONAL PRESENTATION

Transcription

1 INSTITUTIONAL PRESENTATION

2 BUSINESS Brazil s largest coalition program, with a network of Loyalty programs, allowing the accrual and redemption of points in various partners and Loyalty programs ACTIVITIES We manage the member accrual and redemption of points We sell points to our partners to reward their customers We purchase awards (products and/or services) from the partners to offer our members as redemption offers in the network We create products to facilitate and improve the member s experience We develop information technology, explore the transactional behavior of our members and offer CRM services One single account Members accumulate points from different programs into a single account and the partners have the opportunity to increase their sales Currently, our network consists of more than 300 partners retailers, industry, and services and gathered 19 million members, who can earn Multiplus points directly or indirectly (through a partner program transfer) in more than 13 thousand commercial establishments It is possible to redeem points for more than 550 thousand options of products and services All points (including bonus) are valid for 2 years 2

3 2011 Multiplus becomes one of TOP 100 most liquid stocks in Bovespa 2013 Improved corporate governance structure Two independent members on Board Non-air redemptions reached record 8% in a quarter 2015 Multiplus implements changes to its operating model with TAM Redemption of air tickets on Multiplus marketplace 2017 Partnership with Vivo Partnerships with startups Record gross billings Record points issued New co-branded card Spin-off from TAM and Multiplus IPO 2012 Multiplus reaches 10 mln members 2014 TAM joins Oneword Launch of mobile app Multiplus launches "Points + Money and Game Multiplus 2016 Launch of Club Multiplus Multiplus launches a insurance brokerage firm New platform of hotel reservation 3

4 Points selling Redemption Expiration 1.SPREAD Unit revenue minus unit cost 3.BREAKAGE Points expired: No cost number of months CASH IN 2.FLOAT Revenue on interest CASH OUT 24 4

5 Novo Mercado (New Market) 100% tag along Dividend distribution: 100% of net income Ownership breakdown: Free float 27.16% Only ordinary shares; one share, one vote 30% of independent members on Board Special committee Committee on Finance, Audit, Governance and Related Parties TAM S.A % 5

6 Penetration of loyalty programs in total population (%) Club Premier (MEX) TudoAzul (BRA) Smiles (BRA) Multiplus (BRA) Nectar (ITA) Travel Club (ESP) Aeroplan (CAN) AirMiles (CAN) Nectar (UK) Flying Blue (FRA) Qantas (AUS) Fly Buys (AUS) Fly Buys (NZ) 3.0% 3.7% 6.0% 9.1% 10.9% 12.8% 14.0% 28.4% 29.6% 40.9% 44.1% 44.5% 53.7% Sources: loyalty programs websites and each country statistic data bureau 6

7 2016 Evolution of Multiplus platform (members, in million) Push notifications on Mobile App New Marketplace Points Purchase First version of mobile application Points Transfer ONE SINGLE ACCESS PASSWORD for Multiplus and Tam Fidelidade Points Renewal AIRLINE TICKETS REDEMPTION available on MULTIPLUS WEBSITE 7

8 Credit card usage Expected credit card usage growth for 2017 of 7% and 10% for 2018 About 30% of customers are enrolled in a bank loyalty program Source: Abecs (Brazilian Association of Credit Cards and Services Companies), Brazilian banks and Cardmonitor Consumption Online payments increased more than 45% since 2010 and keeps rising Loyalty culture still in the early stages in Brazil Air transportation Market in Latin America will grow at a high single digit pace for the next years Brazil will be on the top 10 global ranking of aviation, in number of passengers Annual Brazilian traffic can increase 3 times by 2034 Source: IATA and Airbus GMF 2015 Wealth distribution A and B classes represents 15% of total population More than 60% of Multiplus network consists of A and B classes Source: IBGE, Central Bank and internal studies Source: IBGE and internal studies 8

9 Exclusive relationship 15 years agreement automatically renewable for additional 5-year periods Superior frequent flyer program lower earn-to-burn ratios redemptions via LATAM and their airline partners High flexibility Points per seat vary according to flight fare with 100% availability, improving Multiplus competitive advantage Wide redemption window High recognition to premium clients up to 360 days before flight date fee exemptions, lowered points requirement, complimentary upgrades and up to 100% bonus points 9

10 Pricing with LATAM Transfer price Our cost with airline tickets redemption differs base on: class tariff, demand, distance/region, season, etc. e.g.weaker flights = lower cost Greater alignment of interests "win-win relationship Directed flights to member, using CRM intelligence and analytics platforms Better price for client = lower costs for Multiplus LATAM maximizes its revenue More value to shareholders 10

11 Pioneering MARKETPLACE It strengthens ourbrand Options It improves members awareness It increases the number of visits over 550,000 products Unified portfolio of awards Redemption of airline tickets Booking hotels Car rental 11

12 APP More than 2.9 million downloads PUSH Redemptions in only 3 clicks Catalogs with exclusive discounts An increase of 125% in 2016 in the number of point redeemed through app Segmented, PUSH notification About 15 campaigns per month 12

13 / MARKETING APP Customized pages Advanced search Flexibility in offers and communication with customers and partners Increasing knowledge about our members allows us to contribute in various ways with partners Targeted offers using statistical models It provides partners with new and efficient ways to reach their customers Games and challenges Alignment with specific objectives of the partner Redemptions available Exclusive offers Tracking accrual of points Geolocalization 13

14 MEMBERS BEHAVIOR Results of some of our models Propensity model for air tickets in specific routes: 4 times higher in volume of points and members. 7% of the base bringing 94% of the result on a Points + Money campaign Propensity model for accrual in TAM Itaucard card: 6 times higher in number members and 15 times higher in number of points Clustering of the base according to propensity models Propensity model for redemption in retail partnerships: the combined use of various models brought a result 100% higher in number of points and members 14

15 First player to turn FFP in coalition network in Brazil Only Company that develops statistical propensity models and targeted offers First mobile app in the industry with 2.9 million downloads Only Company that offers a cobranded credit card with accrual of up to 2.5 points per dollar spent Only Company that offers challenges with Game Multiplus First insurance broker with online accrual of points First platform of points accrual through hotel booking in partnership with Expedia First Company to create a marketplace in points Only Company that develops differentiated partnership model with startups 15

16 Members (million) Gross billings (BRL million) CAGR: + 14% CAGR: + 5% , , , , , M M17 Data available on Company s releases 16

17 Non-air redemptions (% of the total) Breakage rate (%) 11.6% 14.3% 15.1% 15.1% 18.5% 17.8% 18.2% 17.0% 18.0% 9.2% M M17 Data available on Company s releases 17

18 Net income (BRL million) Net margin (%) EBITDA(BRL million) EBITDA margin(%) CAGR: + 30% CAGR: + 27% % % % 23.6% 26.6% 26.3% 14.1% 17.9% 21.2% 23.4% 24.3% M M17 Net income Net margin EBITDA EBITDA margin Data available on Company s releases 18

19 APPENDIX

20 Income Statement (R$ thousand) 3Q17 2Q17 Var % 3Q16 Var % 9M17 9M16 Var % Gross revenue 613, , % 597, % 1,924,525 1,820, % Sale of points 512, , % 508, % 1,628,030 1,525, % LATAM Brazil 37,755 43, % 36, % 123, , % Banks, Retail, Industry and Services 474, , % 471, % 1,504,421 1,416, % Breakage 101,274 97, % 88, % 296, , % Taxes on sales (62,704) (62,132) 0.9% (55,309) 13.4% (186,320) (168,603) 10.5% Net Revenue 550, , % 542, % 1,738,205 1,651, % Cost of the points redeemed (367,004) (394,203) -6.9% (346,569) 5.9% (1,154,491) (1,076,255) 7.3% Air tickets (314,865) (330,784) -4.8% (301,152) 4.6% (985,562) (937,802) 5.1% Other products / services (52,139) (63,419) -17.8% (45,417) 14.8% (168,928) (138,453) 22.0% Total cost of services rendered (367,004) (394,203) -6.9% (346,569) 5.9% (1,154,491) (1,076,255) 7.3% Gross Profit 183, , % 195, % 583, , % Gross Margin % 33.4% 33.1% 0.2p.p. 36.1% -2.7p.p. 33.6% 34.8% -1.3p.p. Shared services (175) (175) 0.0% (175) 0.0% (525) (525) 0.0% Personnel expenses (19,350) (16,728) 15.7% (19,069) 1.5% (55,582) (53,166) 4.5% Marketing (5,831) (4,619) 26.2% (6,624) -12.0% (14,088) (12,645) 11.4% 20

21 Air tickets (314,865) (330,784) -4.8% (301,152) 4.6% (985,562) (937,802) 5.1% Other products / services (52,139) (63,419) -17.8% (45,417) 14.8% (168,928) (138,453) 22.0% Total cost of services rendered (367,004) (394,203) -6.9% (346,569) 5.9% (1,154,491) (1,076,255) 7.3% Gross Profit 183, , % 195, % 583, , % Income Statement (R$ thousand) 3Q17 2Q17 Var % 3Q16 Var % 9M17 9M16 Var % Gross Margin % 33.4% 33.1% 0.2p.p. 36.1% -2.7p.p. 33.6% 34.8% -1.3p.p. Gross Shared revenue services 613,538 (175) 651,581 (175) -5.8% 0.0% 597,554 (175) 0.0% 2.7% 1,924,525 (525) 1,820,461 (525) 0.0% 5.7% Sale Personnel of points expenses 512,250 (19,350) 554,097 (16,728) 15.7% -7.6% 508,959 (19,069) 1.5% 0.6% 1,628,030 (55,582) 1,525,683 (53,166) 4.5% 6.7% Marketing LATAM Brazil 37,755 (5,831) 43,390 (4,619) -13.0% 26.2% 36,970 (6,624) -12.0% 2.1% 123,609 (14,088) 109,608 (12,645) 11.4% 12.8% Depreciation Banks, Retail, Industry and Services 474,495 (9,267) 510,707 (6,434) 44.0% -7.1% 471,989 (6,474) 43.1% 0.5% 1,504,421 (22,076) 1,416,075 (18,723) 17.9% 6.2% Breakage Results on equity share 101,274 (42) 97,484 (584) -92.8% 3.9% 88, % - 296,481 (1,437) 294, % - Taxes Other on sales (18,465) (62,704) (18,788) (62,132) -1.7% 0.9% (18,127) (55,309) 13.4% 1.9% (186,320) (54,774) (168,603) (53,295) 10.5% 2.8% Total Net Revenue Operating Expenses 550,834 (53,130) 589,449 (47,328) 12.3% -6.6% 542,245 (50,469) 5.3% 1.6% 1,738,205 (148,483) 1,651,858 (138,355) 7.3% 5.2% Total Cost of Costs the and points Operating redeemed Expenses (420,134) (367,004) (441,531) (394,203) -4.8% -6.9% (397,038) (346,569) 5.8% 5.9% (1,302,973) (1,154,491) (1,214,610) (1,076,255) 7.3% Operating Air tickets Income (314,865) 130,700 (330,784) 147, % -4.8% (301,152) 145, % 4.6% (985,562) 435,232 (937,802) 437, % 5.1% Other products / services Operating Margin % (52,139) 23.7% (63,419) 25.1% -1.4p.p % (45,417) 26.8% -3.1p.p. 14.8% (168,928) 25.0% (138,453) 26.5% -1.4p.p. 22.0% Financial Total cost Income/Expenses of services rendered (367,004) 54,990 (394,203) 38, % -6.9% (346,569) 54, % 5.9% (1,154,491) 137,197 (1,076,255) 149, % 7.3% Gross Profit 183, , % 195, % 583, , % Net income before tax and social 185, , % 199, % 572, , % contribution Gross Margin % 33.4% 33.1% 0.2p.p. 36.1% -2.7p.p. 33.6% 34.8% -1.3p.p. Income tax and social contribution Shared services (23,333) (175) (60,833) (175) -61.6% 0.0% (65,373) (175) -64.3% 0.0% (149,692) (525) (189,569) (525) -21.0% 0.0% Net Income Personnel expenses 162,357 (19,350) 125,960 (16,728) 28.9% 15.7% 134,081 (19,069) 21.1% 1.5% 422,737 (55,582) 397,581 (53,166) 6.3% 4.5% Marketing Net Margin % 29.5% (5,831) 21.4% (4,619) 8.1p.p. 26.2% 24.7% (6,624) 4.7p.p % 24.3% (14,088) 24.1% (12,645) 0.3p.p. 11.4% 21

22 Balance Sheet (R$ thousand) 3T17 VA 2T17 VA 3T16 VA Assets 1,866, % 1,803, % 1,914, % Current assets 1,780, % 1,711, % 1,811, % Cash and cash equivalentes % % % Financial assets at fair value through profit and loss 1,463, % 1,391, % 1,255, % Financial assets held-to-maturity - 0.0% - 0.0% - 0.0% Accounts receivable 244, % 270, % 180, % Deferred income tax and social contribution 46, % 3, % - 0.0% Related Parties 22, % 40, % 28, % Current account 22, % 40, % 28, % Prepaid expenses - 0.0% - 0.0% - 0.0% Derivative instruments - 0.0% - 0.0% - 0.0% Advances to suppliers 4, % 5, % 345, % Other receivables - 0.0% % 1, % Non-current assets 85, % 91, % 102, % Financial assets - bank deposits - 0.0% - 0.0% - 0.0% Financial assets held-to-maturity - 0.0% - 0.0% - 0.0% Deferred income tax - 0.0% - 0.0% - 0.0% Derivative financial instruments - 0.0% - 0.0% - 0.0% Other accounts receivable % % % Investments % % % Property, plant and equipment 7, % 11, % 13, % Intangible assets 76, % 79, % 89, % Related Parties - 0.0% - 0.0% - 0.0% Liabilities and shareholders' equity 1,866, % 1,803, % 1,914, % Current liabilities 1,556, % 1,529, % 1,646, % Suppliers 301, % 214, % 160, % Salaries and payroll taxes 19, % 15, % 18, % 22

23 Other accounts receivable % % % Investments % % % Property, plant and equipment 7, % 11, % 13, % Intangible assets 76, % 79, % 89, % Balance Sheet (R$ thousand) 3T17 VA 2T17 VA 3T16 VA Liabilities and shareholders' equity 1,866, % 1,803, % 1,914, % Current liabilities assets 1,556,755 1,780, % 95.4% 1,529,901 1,711, % 94.9% 1,646,382 1,811, % 94.6% Related Parties - 0.0% - 0.0% - 0.0% Assets 1,866, % 1,803, % 1,914, % Suppliers Cash and cash equivalentes 301, % 0.0% 214, % 0.0% 160, % 0.0% Salaries Financial and assets payroll at fair taxes value through profit and loss 1,463,100 19, % 1.1% 1,391,496 15, % 0.9% 1,255,808 18, % 1.0% Tax, Financial charges assets and held-to-maturity contributions 1, % 0.0% % 13, % 0.0% Income Accounts and receivable social contribution tax 244, % 0.0% 270, % 0.0% 180,162 12, % 9.4% Interest Deferred on income own capital tax and and social dividends contribution 46, % 2.5% 3, % 0.2% - 0.0% Derivative Related Parties financial instruments 22, % 1.2% 40, % 2.2% 28, % 1.5% Deferred Current revenue account 1,031,070 22, % 1.2% 1,089,618 40, % 2.2% 1,151,533 28, % 1.5% Breakage Prepaid expenses liabilities 168, % 0.0% 154, % 0.0% 188, % 0.0% Advances Derivative instruments from customers 34, % 0.0% 55, % 101, % Other Advances liabilities to suppliers 4, % 0.2% 5, % 0.3% 345, % 0.0% Dividends Other receivables payable - 0.0% % 1, % 0.1% Non-current liabilities assets 10,431 85, % 4.6% 17,976 91, % 5.1% 102,953 1, % 5.4% Deferred Financial income assets tax - bank and deposits social contribution 9, % 0.0% 16, % 0.0% - 0.0% Related Financial parties assets held-to-maturity - 0.0% - 0.0% - 0.0% Contingencies Deferred income tax 1, % 0.0% 1, % 0.0% 1, % 0.0% Derivative financial instruments - 0.0% - 0.0% - 0.0% Deferred Other accounts revenue receivable % % % Investments % % % Equity 299, % 255, % 266, % Share Property, capital plant and equipment 107,300 7, % 0.4% 107,300 11, % 0.6% 107,300 13, % 0.7% Capital Intangible reserve assets 76,760 (4,096) -0.2% 4.1% 79,761 (4,096) -0.2% 4.4% 89,208 (8,060) -0.4% 4.7% Shares Related in Parties treasury (1,068) % 0.0% (1,580) % 0.0% (1,163) % 0.0% Earnings Liabilities reserve and shareholders' equity 1,866, , % 10.6% 1,803, , % 8.5% 1,914, , % 8.8% Current liabilities 1,556, % 1,529, % 1,646, % Carrying value adjustments - 0.0% - 0.0% - 0.0% Retained Suppliers Earnings (loss) 301, % 0.0% 214, % 0.0% 160, % 8.4% Salaries and payroll taxes 19, % 15, % 18, % 23

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