Innovation| Strategic Pillars of Innovation

November, 2012

OUR VISION

Launching of the new e-commerce platform

Acquisition of M4U

JV between Oi and Cielo Acquisition ofBraspag

Partnership withCybersource

Launching of Cielo MobileiOS System

Launching ofCielo Mobile Android

Launching ofCielo MobileBlackberry SMS

INNOVATION STRATEGY

Searching to add more value to Cielo in the short and long term, leveraging assets and current capabilities and developing new

• Cielo as the mainpartner ofCustomers

• Increase “share ofwallet”

• Increase the offerdifferentiation

Value-Added to Merchants

• Cielo as natural aggregator ofinformation

• Communication channels withconsumers

• Offers/business generation

Big Data + Personalized

Communication

• Payment totallyintegrated in theproduct “trackrecord”

• Solutions focusedin segments

Seamless Shopping

• Reach segmentsunderpenetrated

• Requiresinnovative andflexible solutions

Substitution of cash and check

Creating tools and methods for generating ideas and implement innovative projects

E-C

om

merc

eM

obile

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INNOVATION STRATEGY

Searching to add more value to Cielo in the short and long term, leveraging assets and current capabilities and developing new

Value- Added to Merchants

Projects on going

Big Data + Personalized

CommunicationSeamless Shopping

Substitution of cash and check

1 2 3 4

4

Launching planned

Q1 Q2 Q3 Q4

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2012

Q1 Q2 Q3 Q4

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2013

Projects on going

4

Launching planned

Q1 Q2 Q3 Q4

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2012

Q1 Q2 Q3 Q4

01 02 01 -

2013

Projects on going

0

Launching planned

Q1 Q2 Q3 Q4

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2012

Projects on going

0

Launching planned

Q1 Q2 Q3 Q4

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2012

ePayment

CIELO E-COMMERCE

79%

FINANCIAL VOLUME GROWTH

PARTICIPATION OF E-COMMERCE IN OUR VOLUME

OUR VIEW IN THE E-COMMERCE WORLD

EVOLUTION OF CIELO E-COMMERCE PLATFORMEvolution

THE VALUE CHAIN OF E-COMMERCE FOR CIELOValue-Chain

Business Generation Technological Platform Payments Back-office Logistic Solutions Support solutions

Advertising (showcase) Design Checkout Management Systems Storage solutions Support solutions

Advertising (management) Platform Acceptance Registration Delivery solutions

CRM ERP Integration Gateway Operational control

Anti-fraud Reports

Transaction Management

Criterion

THE PARTNERSHIP

Over a year and a half of analysis of the largest players around the World

Quality and efficiency of the tool

Company with global expertise and over 15 years of experience in fraud prevention in e-commerce

Ease of Use

Ease of Integration

Flexibility for customization

Specific anti fraud model by segment andunique to Brazil

Local support

Comprehensive solution to all customers of e-commerce, regardless of size

Features (+ 200 tests per transaction in real time)

Multilanguage tool

PRODUCT FEATURES

Access over 260 testing and validation services overall

Digital printing device

Geolocation of IP

Custom fields for your own data

Positive and Negative lists

Speed Monitoring

Detection of risk through neuralmodels

Change of ID

And more....

Innovation and Emerging Products

ACCEPTANCE of NFC

300,000

Step by Step sales process

POS ready for contactless payment

NFC AND CONTACTLESS

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Nontraditional players using NFC technology are already accepted in our terminals

Source: Team analysis

OperatorsSearch / Advertising

Launched 3Q11 Launched 1Q12

CIELO MOBILE

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CIELO MOBILE

First App that turns your smartphone or

tablet into a Cielo POS

Perfect for doctors, dentists, lawyers, other professionals and merchants

that require convenience and mobility

Data protected to ensure the integrity of

transactions

Sales Receipt may be sent by email to the cardholder

DATA CAPTURE SOLUTION

BrandsAccepted

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FeaturesPlatform

Mobile 2006

Platform

Cielo Mobile 2012

Commercial Approach Technical Solution Sale and maintenance of equipment

Cielo Mobile Platform

Security = Authentication Service

Cardholder Authentication

Pay by Phone

Multibrand

Multiplatform

Connection

Telecom Operators

Products and ServicesRegular credit, Parcelado Emissor e

Parcelado LojaRegular Credit, Credit in Installments, and Auto Recarga

FunctionalitiesCancellation and Consultation within 90 days and sending

the sales receipt via e-mail

Partner Companies

3G GPRSEDGE

Secutiy Mobility Cost-Benefit Practicality

≥ 4.0 ≥ 1.6 ≥ 4.6 SMS

PLATFORM EVOLUTION

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CIELO MOBILEIN FIGURES*

* Data of May 2012

MORE THAN 91 THOUSAND DOWNLOADS

ACCORDING TO SEGMENTS (NUMBER OF MERCHANTS)

33%

20,5%18,3%

10,6%

6%

SERVICES HEALTH

CARE

RETAIL CLOTHING ELECTRONICS

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MOBILE TRANSACTION STEP BY STEP FIRST MENU

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The mobile number is linked to the credit card number

It was born from a joint-venture between Cielo and Oi

First company of e-commerce in Brazil

Unique means of payment which allows purchase and

services through mobile

PRESENTING PAGGO

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Do not add screens to flow closure request

Merchant protection against chargeback

Card data and password are protected

Do not require changes in the back-office of store

PAGGO ADVANTAGES

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What is next?

in e-commerce

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