Cielo Day 2011

RÔMULO DE MELLO DIAS | CEO

#1MERCHANT ACQUIRER

AND PAYMENT

PROCESSOR IN BRAZIL

AND LATIN AMERICA PR

ES

EN

T IN

MO

RE

TH

AN

OF BRAZILIAN

CITIES

98%

CIELO AT A GLANCE

ON

E O

F T

HE

5 LARGEST ACQUIRERS

IN THE WORLD

JULY SEPTEMBER DECEMBER JANUARY FEBRUARY APRIL AUGUST

CIELO’S EXPANSION HAS BEEN REMARKABLE

More than 18 additional brands in 13 months

The average age of the total

equipment base is 1.7 years

CIELO INVESTS MODERNIZATION AND TECHNOLOGY

Cielo invests heavily on POS acquisition to maintain a

modern base that can support our innovative products

1,158

1,344 1,2801,402

2008 2009 2010 3Q11

No. Installed POS (thousand)

10.5%

R$ millions 2008 2009 2010 Accumulated 2011

CAPEX (POS Equipment) 124.8 215.0 242.0 229.5

IMPROVING RELATIONSHIPS WITH CLIENTS IS ALSO A PRIORITY

Cielo Fidelidadeis the only loyaltyprogram developedexclusively for merchants

Scheme: accrual of pointsbased on the merchant’svolume with Cielo andredemption of points for morethan 20 thousand products

Cielo Fidelidadeis the largest B2Bloyalty program inLatin America

Cielo POS, Cielo ECR | Mobile Checkoutand IP One Cielo Customized Data Capture | Shared POS, Visa Vale Pedágio (Tolls)Cielo Mobile | iPhone, iPad and iPod touch App and Android SystemCielo E-Commerce

DATA CAPTURE SOLUTIONS PAYMENT SOLUTIONS

Cielo Credit Cielo Debit Cielo Parcelado | Parcelado Loja (Installment)Cielo Vouchers | Food, AutoCielo Financing | Agro / Store, Distribution

Cielo Premia (Loyalty and Rewards) Cielo Saque (Cash Advance)Cielo Recarga | Prepaid AirtimeCielo Correspondente | Banking services

VALUE ADDEDSOLUTIONS

Cielo Lynx

ANTI-FRAUDSOLUTIONS

PRODUCTIVITYSOLUTIONS

Cielo Vcorp (Corporate)Cielo Stand InCielo MISCielo RenovaCielo Pre-Auth

OFFERING THE MOST COMPREHENSIVEVALUE PROPOSITION

CIELO PREMIA IS THE MOST

WITH ADVANCED TECHNOLOGYCHANGING THE WAY MERCHANTS HOLDPROMOTIONS AT THE POINT OF SALE

FLEXIBLE AND EASIEST TO USE

PROMOTIONAL MARKETING TOOL

ON THE MARKET

CIELO INNOVATES AGAIN

INNOVATIONS SUCH AS CIELO PREMIA –ONLY CIELO HAS IT

PREPAYMENT OF RECEIVABLES IS CORE AND CIELO’S FOCUS IS PROFITABILITY

47.5%

* This product was included in our portfolio at the end of 2008 ( only for spot credit).In 2009 we started operating with credit in installments

Average Ticket of R$2.3 thousand (as of 3Q11)

831

6,781

10,340

7,323

10,508

0.8%

5.0%

6.4%

6.2%

7.4%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

0

2,000

4,000

6,000

8,000

10,000

12,000

2008 2009 2010 9 Months 10 9 Months 11

Financial Prepayment Volume % Prepayment over Credit Financial Volume

17

218.1

403

283.6

418.4

2008 2009 2010 9 Months 10 9 Months 11

Revenue of Prepayment of Receivables ex Adjustments (R$ million)

EVEN AT THE LOWEST COST PER TRANSACTION IN THE

INDUSTRY, DISCIPLINE ON COSTS IS THE FOCUS

Additional costsrelated to brandfee andsubsidiaries are getting more relevant.

Operatingexepensesprimarily impactedby marketing, composed of:Institutional;Trade marketing;Expenses withsales.

0.2880.273

0.292 0.2820.307

0.2850,260 0.251 0.249 0.229

2008 2009 2010 9 Months10 9 Months11

Unit cost

Unit cost ex additional of brand fee and subsidiaries

Evolution fo the Unit Cost (R$ per transaction)

0.1270.117

0.109 0.106

0.128

2008 2009 2010 9 Months10 9 Months11

Expenses (R$ per transaction)

Resilient GDP growth

for 2011: 3.2%

Low unemployment rate

6.0% in September/11

More credit availability

R$1,929 billion in September/11

or 48.4% of GDP

Strong domestic retail sales

Up 5.3% y-o-y in September/11

SOURCE: BACEN, FOCUS REPORT

POSITIVE MACROECONOMIC SCENARIOAS A DRIVER

Increased use of

electronic means of

payment

BanksNew products and

initiatives to increase card

activation/use

GovernmentFormalization of economy

Increased tax collection

BrandsEducational campaigns

and new products

AcquirerHeavy use of technology to develop new products and

ways to capture transactions

DIFFERENT INITIATIVES TO FOSTERCARD ADOPTION

CARD PRESENT CARD NOT PRESENT

Payment Transactions

Non- Payment Transactions

VAN* Services

FORWARD THINKING POSITIONINGBEYOND CORE BUSINESS

* VALUE ADDED NETWORK

MOBILE

E-COMMERCE

1

7

* AFTER CONSTITUTION OF LEGAL RESERVES

Leader in a fast growing market

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

CIELO: WHY INVEST?