Agenda

History

Current Portfolio of Services

Conclusion

History

Founded in 2000

Innovation-based company Born from PUC-Rio’s software engineering research lab

Finep Inovar Project Company

Operational expertise and relationship with Telco operators

Initially two business lines spun off into two companies Media and Entertaining (M&E): music, games and news

Financial Services: Prepaid airtime purchases and mobile payment

2008/9 – company spin off

August, 2010 – Cielo acquires the Financial Services

company

The company

Multidisplay

M4 Produtos

100%

19.9%

Initial

ShareholdersCIELOVALID

30% 50.1%

Organizational Structure

Rio de Janeiro

Headquarters

125 - all CLT

Employees

Agenda

History

Current Portfolio of Services

Conclusion

Mobile payment services

Payments

mPayment

Mobile

POS

Credit/Debit/Prepaid card

transactions using the

cardholder’s mobile number –

use the mobile phone as the

card

Capture solution for credit card

transactions via mobile phone

All brands processed by the

acquirer/client

Revenue model:

% of transaction

Releases:

iPhone, Android, SMS

Target segments:

Self-employed

professionals

“Door-to-door”

New project revenue model:

License to use

Customization/Maintenance

Operations

Description Status

Mobile POS – Capturing credit card transactions with mobile phones

Typed

Transaction

Any mobile

1/182

Enter credit card

number, expiration

and security code

OK BackSEND

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Send SMS to 92222

4000 1/182

Transaction Data

CREDIT

Amount: R$40.00

Card:

XXXXXX******XXXX

Auth.: XYZABC

Status: Authorized

OK Back

iPhone

Android

SMS Safe Browsing

M-Pay – Payment is made using the customer’s mobile number

Customer informs mobile number

Ex. 21-8811-8811

OK

Type the mobile

number and

amount:

21-8811-8811

R$40.00

Back

1/182

OK

Purchase initiated

successfully.

Wait, a PIN request

will be sent to your

customer’s mobile.

Back

1/182

OK

PIN required

Confirm purchase?

40.00

Back

1/182

OK Black

1/182

PIN:

4 digits (0-9,*,#)

Merchant Customer

ACQUIRER

ISSUER

M-Pay

Platform

OK

Purchase OK

Num.:

2188118811

dd/mm/yy

40.00

Auth: XYXYXY

Back

1/182

OK

Purchase OK

Merchant.: A

dd/mm/yy

40.00

Auth: XYXYXY

Back

1/182

Receipt transmission

(SMS)

Prepaid airtime purchases

Self-service

POS

Customer buys prepaid airtimes via

credit card from his or her own

mobile phone

Micro retail prepaid airtime sales using

the mobile as POS

Customer receives credit from

another mobile used by the POS

(Merchant)

Revenue model:

% of transaction

Revenue model:

Buying and selling

credits

Oi and TIM as partners

Own brand

Control

Control plan is partially prepaid,

partially billed

Recurring monthly payment system

Airtime

purchases

Description Status

Revenue model:

% of transaction

Oi as partner

Merchant

OI POS – Mobile as prepaid airtime capture equipment in small retail

Customer requires prepaid airtime

Client pays

POS Customer

POS Customer

Airtime for number (21)

86970634 in the amount

of R$1.00 successfully

concluded.

POS balance: R$30.00

NSU: 123456

Processing your (carrier)

airtime purchase of R$

1.00

Keep the NSU code:

123456

For questions, please call

(call center #)

Number: Amount

including cents:

PIN:

Customer

operator

Send message

to 9000

AIRTIME

PURCHASE

Welcome! You can

purchase prepaid

airtime and pay with

your credit card.

Browsing is free

(secure

environment).

Proceed?

Select amount

> 25.00

> 20.00

> 15.00

> Other

Security code Processing airtime

purchase of R$XX.XX

to mobile number

yyxxxxxxxx. Keep

transaction code

(NSU) and credit

authorization code

(yyyyyy). For

questions, call XXX

Self-service airtime purchase – Customer uses his or her own mobile to

buy airtime with credit card

SMS

Menu

WEB

IVR

Type card

number

OI Control – Tool for POS and recurring airtime purchases with credit

cards

Oi Control = Hybrid BILLED and PRE-

PAID

Minimum fee: R$30, billed

Extra minutes: user purchases

additional airtime

Affiliations (sales) and recurring credit

card charges

Simplify sales process in retail

Transfer credit risk to issuer

Responsible for Affiliation (Sale) -

Multichannel

IVA

WEB (Call Center Oi)

Mobile phone

Responsible for Recurring Monthly Charges

Additional Services

Change in Registered Credit Card

Migration of Minimum Fees

Synchronization with Oi Database

Chargeback Control

Agenda

History

Current Portfolio of Services

Conclusion

Conclusion

M4U is positioned to be Cielo’s innovation platform in mobile projects Innovation with Results – competitive advantages and survival

Business model aligned with Cielo’s, based on robust operations with

differentiated services and variable remuneration

New business platform Mature management – financial, technical and operational

Main growth drivers in the medium term Cielo Prepaid Airtime Purchases – cards and cash

Enabler for large scale implementation of mobile payment – prepaid card

Focus on cost discipline to guarantee results