11 01-2011 - 3 q11 earnings results presentation

3Q11 EARNINGS PRESENTATION November 01, 2011

DISCLAIMER

The Company makes forward looking statements that are subject to risks and uncertainties. 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

HIGHLIGHTS

3

Net Operating Revenue + prepayment of receivables totaled R$ 1.211 billion, +6.5%

Net Income totaled R$ 457.6, +8.0% and Net Margin of 37.8% Adjusted EBITDA totaled R$ 741.2, +3.4% and Adjusted EBITDA Margin of 61.2%

3Q11 X 2Q11

3Q11 X 3Q1O

Credit volume totaled R$ 50.3 billion, +21.2%

Debit volume totaled R$ 29.4 billion, +14.4%

Cielo and Credicard partner to capture Diners transactions and soon Discover transactions;

Elected the best company in the Specialized Services by economic publications Exame, Valor Econômico and IstoÉ Dinheiro Magazine , and one of the best 150 Companies to work being

the best in Strategy and Management according to Você S/A Magazine (Exame); Cielo joins the Global Compact.

Others

POS Rental revenue increases 2.7% qoq, for the first time in the last 5 quarters, with average rental of

R$64.7- the highest in the market ;

According to market criterion, transaction financial volume totaled R$80.5 billion,+20.4% and

according to accounting criterion volume totaled R$ 79.8 billion, +18.6%

BRAZIL | MACROECONOMIC SCENARIO

4

4.0

6.1

5.1

-0.2

7.5

3.3

2006 2007 2008 2009 2010 2011(E)

GDP ( %)

Source: IBGE (E) Estimates-Focus Report- BCB

5

6

7

8

9

10

11Unemployment (%)

Source: IBGE

6.2

0

2

4

6

8

10

12

14

16

18Retail Trade Sales (%)

Source: IBGE

45% 46% 43% 44% 40% 41% 55%

54%

57% 56%

60%

59%

0,0

5,0

10,0

15,0

20,0

25,0

30,0

35,0

40,0

45,0

0

200

400

600

800

1.000

1.200

1.400

1.600

2006 2007 2008 2009 2010 sep/11

Credit/GDP Credit

(R$million)

Credit Evolution

Individuals Legal Entities Credit/GDP

733

936

1,227

1,414

1,704

Source: BCB

1,929

CIELO | FAIR SHARE

5

Source: Earnings reported by the acquiring companies Others: Redecard and Santander/GetNet

Financial Volume Breakdown (in R$)

59.6% 56.9% 57.2% 57.7% 57.9%

40.4% 43.1% 42.8% 42.3% 42.1%

3Q10 4Q10 1Q11 2Q11 3Q11

Considering the 2 main participants, Cielo gained 0.2 p.p .quarter-on-quarter

Cielo Redecard

59.4% 56.3% 56.4% 56.7% 56.7%

40.6% 43.7% 43.6% 43.3% 43.3%

3Q10 4Q10 1Q11 2Q11 3Q11

Considering the top three participants our market

share remained resilient quarter-on-quarter

Cielo Others

Financial Indicators 3Q11 3Q10 3Q11 X 3Q10 2Q11 3Q11 X 2Q11

Financial Volume (R$ million)

79,775.2 67,256.8 18.6% 74,622.6 6.9%

Transactions (million)

1,167.0 1,037.7 12.5% 1,094.2 6.7%

Net Revenue* (R$ million)

1,210.9 1,137.4 6.5% 1,119.3 8.2%

Cost of Services (R$ million)

(365.6) (317.1) 15.3% (342.4) 6.8%

Operating Expenses (R$ million)

(165.8) (108.8) 52.3% (119.2) 39.1%

Adjusted EBITDA (R$ million)

741.2 760.9 -2.6% 716.5 3.4%

Net Income (R$ million)

457.5 488.1 -6.3% 423.6 8.0%

Blended Net MDR (bps) 103 121 (18) 101 2

Credit Net MDR (bps) 118 146 (28) 117 1

Debit Net MDR (bps) 77 79 (2) 74 3

CIELO | FINANCIAL INDICATORS

6 * Including prepayment of receivables present value adjusted

1,147 1,140 1,085 1,115

1,153

3Q10 4Q10 1Q11 2Q11 3Q11

Cielo - Number of Active Merchants (1 transaction in the last 60 days)

CIELO | OPERATING PERFORMANCE

7

0.5%

598 621 611 639 682

440 487 447 455 489

3Q10 4Q10 1Q11 2Q11 3Q11

Cielo - Number of transactions (millions)

Credit Debit

12.5%

1,038 1,108 1,059 1,094

1,167

41,556 44,917 44,318 46,281 50,368

25,701 29,163

25,885 27,802 29,407

3Q10 4Q10 1Q11 2Q11 3Q11

Cielo - FInancial Volumes (R$ millions)

Credit Card Debit Card

67,257 74,080 74,623

70,203

18.6%

79,775

6.7% 6.9%

3.4%

CIELO | MERCHANTS BREAKDOWN

8

36% 33% 33% 34% 33%

64% 67% 67% 66% 67%

3Q10 4Q10 1Q11 2Q11 3Q11

Revenue

Large Merchants Small and Medium Merchants

62% 61% 60% 61% 59%

38% 39% 40% 39% 41%

3Q10 4Q10 1Q11 2Q11 3Q11

Financial Volume

Large Merchants Small and Medium Merchants

CIELO | REVENUES

9

POS 3Q10 4Q10 1Q11 2Q11 3Q11

Average Rental (R$/month)

74.8 71.7 69.2 65.4 64.7

Installed POS (thousand) 1,318 1,281 1,293 1,351 1,402

MDR 3Q10 4Q10 1Q11 2Q11 3Q11

Net MDR Debit

79 76 76 74 77

Net MDR Credit

142 131 122 117 118

608,6 590,8 538,9 550,1 596,6

204,2 225,1

196,2 204,8 226,5

3Q10 4Q10 1Q11 2Q11 3Q11

Commissions Revenues (R$ million)

Credit Debit

812.8 815.9 735.1 754.9

823.1

1.3%

9.0%

295.7

275.5

268.4 265.1

272.3

3Q10 4Q10 1Q11 2Q11 3Q11

Equipment Rental (R$ million)

-7.9%

2.7%

CIELO | PREPAYMENT OF RECEIVABLES

10

41.1%

2,669.6

3,016.7 3,236.9 3,376.9

3,894.6

6.4% 6.7% 7.3% 7.2%

7.7%

0,0%

1,0%

2,0%

3,0%

4,0%

5,0%

6,0%

7,0%

8,0%

9,0%

10, 0%

-

500, 0

1.000, 0

1.500, 0

2.000, 0

2.500, 0

3.000, 0

3.500, 0

4.000, 0

4.500, 0

3Q10 4Q10 1Q11 2Q11 3Q11

Prepayment of Receivables

Financial prepayment volume

% Prepayment over Credit Financial Volume

72,0 66,1

62,9 58,5 56,0

3Q10 4Q10 1Q11 2Q11 3Q11

Average Term (days)

113.3 119.4 120.8

137.7

159.9

3Q10 4Q10 1Q11 2Q11 3Q11

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

16.1%

-0.9%

365.6

298.6 301.4

CIELO | COSTS

11

The impact of the unit cost excluding the subsidiaries and the additional brand fees was a reduction of 11.9%.

If the impact of depreciation is

eliminated in the same analysis, the reduction would have been 16.2%.

costs of services rendered

depreciation and amortization

1.6%

365.6

298.6 294.0

0.313 0.256 0.290

unit per transaction

0.036 0.021

The impact of the unit cost excluding the subsidiaries and the additional brands fee was a reduction of 4.9%.

If the impact of depreciation is

eliminated in the same analysis, the reduction would have been 5.5%.

0.313 0.256 0.269 0.036 0.021

305.2

238.2 252.8

60.4 42,2

24.7 60.4 48.6

3Q11 Reported Costs related to

subsidiaries

Additional brands fee 3Q11 Adjusted 3Q10 Adjusted

Costs Comparison 3Q11 X 3Q10 (R$ million)

305.2 238.2 236.3

60.4 42.2

24.7 60.4 57.7

3Q11 Reported Costs related tosubsidiaries

Additional brands fee 3Q11 Adjusted 2Q11 Adjusted

Costs Comparison 3Q11 X 2Q11 (R$ million)

CIELO | OPERATING EXPENSES

12

119.2 165.7

23.6 23.6 0.1 0.1 (0.8)

2Q11 Other Expenses Marketing Personnel Depreciationand

Amortization

General andAdministratives

3Q11

Operating Expenses Composition – 2Q11 to 3Q11 (R$ million)

108.8

165.7

26.7 17.4

6.5 6.0 0.3

3Q10 Other Expenses Marketing Personnel General and

Administratives

Depreciation

andAmortization

3Q11

Operating Expenses Composition – 3Q10 to 3Q11 (R$ million)

In both comparison (3Q11 X 3Q10 and 3Q11 X 2Q11) the main impact for the increase in the expenses were due to: •other expenses- provisions for tax and labor contingencies; • marketing- trade marketing , loyalty programs to clients and campaigns with partners (banks and clients)

CIELO | FINANCIAL PERFORMANCE

13

488.1

457.6 424.7 423.6

457.5

43%

39% 39% 38% 38%

25, 00%

30, 00%

35, 00%

40, 00%

45, 00%

50, 00%

55, 00%

60, 00%

0,0

100,0

200,0

300,0

400,0

500,0

600,0

3Q10 4Q10 1Q11 2Q11 3Q11

Net Income (R$ million)

Net Income Margin

760.9 715.9

684.3 716.5 741.2

67%

62% 63% 64%

61%

45, 00%

50, 00%

55, 00%

60, 00%

65, 00%

70, 00%

75, 00%

0,0

100,0

200,0

300,0

400,0

500,0

600,0

700,0

800,0

3Q10 4Q10 1Q11 2Q11 3Q11

Adjusted EBITDA (R$ million)

Adjusted EBITDA Margin

3.4%

8.0%

Cielo POS, Cielo ECR | Mobile Checkout and IP One Cielo Customized Data Capture | Shared POS, Visa Vale Pedágio (Tolls) Cielo Mobile | iPhone, iPad and iPod touch App and Androide System Cielo E-Commerce | Braspag

DATA CAPTURE SOLUTIONS

PAYMENTS SOLUTIONS

Cielo Credit Cielo Debit Cielo Parcelado / Parcelado Loja (Instalment) Cielo Vouchers | Food, Auto Cielo Financing | Agro / Store, Distribuition

Cielo Premia (Loyalty and Rewards) Cielo Saque (Cash Advance) Cielo Recarga | Top up Cielo Correspondente | Banking services

VALUE ADDED SOLUTIONS

Cielo Lynx

ANTI-FRAUD SOLUTIONS

PRODUCTIVITY SOLUTIONS

Cielo Vcorp (Corporate) Cielo Stand In Cielo MIS Cielo Renova Cielo Pre-Auth

CIELO | COMPREHENSIVE VALUE PROPOSITION

[email protected] + 55 11 2596 1701