110212 divulgação de resultados 4 t10 ingles
16
4Q10 Earnings Release February 14, 2011
description
Transcript of 110212 divulgação de resultados 4 t10 ingles
4Q10
Earnings Release
February 14, 2011
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.
3
4Q10 Highlights
OPERATING HIGHLIGHTS 4Q10 vs 3Q10
• 16.1 bln points issued, a growth of 11.2%
• 7.7 bln points redeemed, an increase of 68.0%
• Average Breakage ratio (12 months) remained in 22.6%
FINANCIAL HIGHLIGHTS 4Q10 vs 3Q10
• Gross Billings of points of R$ 325.2 mln, an increase of 8.4%
• Net Revenue of R$ 205.6 mln, representing an growth of 58.2%
• Adjusted EBITDA of R$ 46.2 mln, a reduction of 51.4% (15.4% margin)
• Net Income of R$ 43.3 mln, a reduction of 2.8% (21.0% margin)
4
Operating Performance (1/2)
121 125 133
151
7 7 7 12
1Q10 2Q10 3Q10 4Q10
Accrual Coalition
million
+5.3%
MEMBERS PARTNERSHIPS
Quantity
6,9 7,2
7,6 8,0
1Q10 2Q10 3Q10 4Q10
5
Coalition Partnerships Network (members can earn and redeem points)
Gas Stations Airline Travel Agency
Telecom
Hotels
Magazine Subscriptions
Pay-TV Apparel Drugstore Education
Bookstore
Stock Exchange
Entertainment
E-Commerce
2011
2009
2010
Supermarket
6
Change of Methodology
Item Previous New Advantage
Breakage Ratio
24 months average
12 months average more accurate ratio
Provision for Breakage Liability
the balance were added to the
monthly provision
the balance is reverted, recalculating the
accumulated provision considering the
percentage of the most recent Breakage
Balance of Breakage Lialibilty gets closer to
fair value
Main Impacts
• Balance Sheet: lower Breakage Liability and higher Deferred Revenue
• Income Statement: higher Breakage Revenue
• Other: higher balance of points to be redeemed (consequently lower Adjusted EBITDA)
IMPROVEMENT ON THE BREAKAGE ACCOUNTING METHODOLOGY
7
Operating Performance (2/2)
BREAKAGE RATIO (24 MONTHS AVERAGE)
%
BREAKAGE RATIO (24 MONTHS AVERAGE)
%
29,5% 28,7% 26,9% 25,7%
1Q10 2Q10 3Q10 4Q10
22,6% 23,0% 22,6% 22,6%
1Q10 2Q10 3Q10 4Q10
8
Points Issued and Gross Billings
10,5
12,2
14,4
16,1
1Q10 2Q10 3Q10 4Q10
230,3
264,0
300,0 325,2
1Q10 2Q10 3Q10 4Q10
In billions R$ million
+8.4%
POINTS ISSUED GROSS BILLINGS OF POINTS
+11.2%
2010: 53.2 billion 2010: R$ 1,119.5 millin
9
Financial Performance
OPERATING EXPENSES (SG&A)
NET REVENUE
R$ million
R$ million R$ million
COSTS OF SERVICES RENDERED (COGS)
+58.2%
POINTS REDEEMED
In billions
1,3 3,2
4,6
7,7
1Q10 2Q10 3Q10 4Q10
+68.0%
40,8
93,5 130,0
205,6
1Q10 2Q10 3Q10 4Q10
21,7
51,2 69,0
132,3
1Q10 2Q10 3Q10 4Q10
+91.6%
7,3 10,8 12,5 16,7 0,8
0,3 1,0
9,8
6,1
8,1 11,1
13,5
32,6
1Q10 2Q10 3Q10 4Q10
Recurring Marketing Extraordinary
+141.4%
+33.6%
2010: 16.8 billion 2010: R$ 469.8 million
2010: 274.3 million 2010: R$ 65.3 million
10
Net Income and Adjusted EBITDA
80,7 91,2
101,2
64,5
80,4
66,8
82,1
95,0
46,2
62,1
1Q10 2Q10 3Q10 4Q10 4Q10*
Old methodology (24 months average Breakage)
New methodology (12 months average Breakage)
7,5
23,1
44,5 43,3
1Q10 2Q10 3Q10 4Q10
R$ million R$ million
24,7% 21,0% Margin
-2,8%
NET INCOME ADJUSTED EBITDA
18,3% 34,2% 34,5% 19,8% Margin 35,0% 33,7%
-51,4%
33,8% 15,4% 31,9% 34,6%
2010: 118.4 million 2010: R$ 290.1 million
24,7% 20,7%
______
NOTE: 4Q10* shows Adjusted EBITDA indicator if extraordinary
expenses of R$ 6.1 million and marketing expenses of R$ 9.8 million
were disregarded (see slide 9).
11
Marketing Actions
POINT OF SALE AIRPORT AND ONBOARD
PRESS ONLINE AND MOBILE
sinalization promotion
panels videos and onboard
magazines
Adds with cases
Partners locator for
iPhone and Blackberry
Adds on websites,
sponsored links and
actions on social networks
12’
2010 Highlights
• Initial Public Offering of R$ 692 mln
• Inauguration of new head office
• Implementation and stabilization of operational systems
• New areas and structuring of the management team
• Stock Options Plan approval
• Closing with 8.0 mln members
• Reaching 151 partnerships (12 coalition partnerships)
• Gross Billings of Points of R$ 1.1 bln
• Adjusted EBITDA of R$ 290.1 mln (28,2% margin)
• Net Income of R$ 118.4 mln
• Proposal of 95% of Net Income Pay-out as Dividends and Interest on Equity
13
Main Strategic Objectives
Customer Experience
Shareholder Return
Branding new partners (and high value added partnerships)
new members
new redemptions options (coalition)
friendly interface (new website, new tools, etc)
operational efficiency
actions at the point of sale
sharing costs with partners
marketing the new concept
new services (CRM and outsourcing)
Breakage management
cash management
Appendix
Appendix: Ajusted EBITDA Reconciliation
Note: A spreadsheet with a calculation log of the cost of future redemptions is available on the Company’s IR website (www.multiplusfidelidade.com.br/ri). Below is a short description of the main lines: • Change in the breakage ratio: represents the impact of the breakage ratio on total number of points issued in the previous 24 months
(Multiplus points mature in 2 years). • Change in the balance of points to be redeemed: the impact of the change in the balance of points to be redeemed (excluding points
already redeemed and breakage points) considering the average cost in the last 12 months. • Average cost per 1,000 points variation: the impact of variation of average cost on the balance of points to be redeemed in the previous
period.
(R$ thousand)
Adjusted EBITDA
Operating Income 40,711 40,711
Depreciation and Amortization 1,026 1,026
EBITDA 41,737 41,737
Margin 20.3% 20.3%
Gross Billings of points 325,247 325,247
Other Revenues in the period N/A 5,872 included to have total billings (not only points)
Tax on Gross Billings -30,085 -30,629 9,5% applied to the two lines above
Net Billings 295,162 300,491
Revenue from the sale of points -220,122 -220,122
Other Revenues in the period N/A -5,872 included to have total revenue (not only points)
Tax on Revenue 20,361 20,905 9,5% applied to the two lines above
Net Revenue -205,09 -205,09
Future redemptions costs:
Breakage ratio variation N/A 62 new breakage var. impact (note below)
Balance of points to be redeemed variation -72,637 -77,254 difference mainly due the new breakage method
Average cost per 1,000 points variation N/A -13,784 new average unit price var. impact (note below)
Total future redemption costs -72,637 -90,976
Adjusted EBITDA 64,501 46,161
Margin 19.8% 15.4% Aj EBITDA as % of Net Billings (not Gross)
OLD NEW COMMENTS
