Bradesco CEO Forum – Brazil 2013

Rômulo de Mello Dias – CEO

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.

DISCLAIMER

#1 MERCHANT ACQUIRER

AND PAYMENT

PROCESSOR IN BRAZIL

AND LATIN AMERICA PR

ES

EN

T IN

MO

RE

TH

AN

OF BRAZILIAN

MUNICIPALITIES

MARKET CAP – AMONG

15 LARGEST IN

BM&FBOVESPA

R$ 35 BILLION 99.6%

EXCHANGE RATE: 1USD = R$2.0

CIELO – LEADING MERCHANT ACQUIRER

01

1.3 million active merchants

ADR level 1 program

Most modern POS and data capture network

50% minimum dividend pay out

R$ 4,795 billion annual revenue, EBITDA of R$ 2,975 billion and net income of R$ 1,810 billion*

Free float of 42.4%

(controlling shareholders are Banco

do Brasil and Bradesco with equal

participation)

CIELO AT A GLANCE

1 OF THE WORLD’S LARGEST PAYMENT

NETWORKS

EXCHANGE RATE: 1USD = R$2.0

* 2011 figures 02

Penetration Of Cards as Means of Payment in

Personal Consumption Expenditures (PCE)

GROWTH POTENTIAL GIVEN LOW CARD

PENETRATION

0

10

20

30

40

50

60

70

80

0 5 10 15 20 25

PCE Penetration

Growth [%]

United States*

United Kingdom

Netherlands

Korea

India

Germany

France

Brazil

Volume USD bn

* 2010 figures

Source: BIS / World Bank 03

COMPETITIVE ENVIRONMENT

Source : Public information, released by the companies

Others = Redecard and Santander/GetNet

Financial Volume Breakdown (R$ Million)

Considering the 2 main

participants, Cielo has over 60%

of financial volume

Considering the 3 main

participants, Cielo has 59% of

financial volume

57.7% 57.9% 59,5% 60.2% 61.1%

42.3% 42.1% 40.5% 39.8% 38.9%

2Q11 3Q11 4Q11 1Q12 2Q12

Cielo Redecard

56.7% 56.7% 58.0% 58.5% 59.0%

43.3% 43.3% 42.0% 41.5% 41.0%

2Q11 3Q11 4Q11 1Q12 2Q12

Cielo Others

157,946 145,148 159,854 138,985 131,439 141,899 133,648 152,430 149,523 164,034

04

COMPETITIVE ADVANTAGES

Cielo is the dominant leader

Partnership with 4 of the largest Brazilian retail

banks

Working with the most relevant brands

Focus on anti-fraud and security systems

Cutting edge initiatives on mobile payment

Strong position on e-commerce

DIS

TR

IBU

TIO

N

PR

OD

UC

TS

AN

D S

ER

VIC

ES

INN

OV

AT

ION

Own sales force team

Unique products and solutions to merchants

05

NEW PRODUCTS | CREDIÁRIO

Crediário is a unique and exclusive

technology developed by Cielo

through which merchants can offer an

additional payment method that

allows cardholders to pay in up to 48

installments, accessing a pre-

approved credit line from their

checking accounts through their

bank cards.

Bradesco and Banco do Brasil made

available R$100 billion in credit to

the product. In the coming months

others banks will join (HSBC and

Caixa Ecônomica Federal).

06

NEW PRODUCTS | CREDIÁRIO

Step by step

1. Select option Crediário

07

NEW PRODUCTS | CREDIÁRIO

Step by step

2. Select option Simulation

08

NEW PRODUCTS | CREDIÁRIO

Step by step

3. Type the amount

09

NEW PRODUCTS | CREDIÁRIO

Step by step

4. Type the number of

installments

(up to 48 installments)

10

NEW PRODUCTS | CREDIÁRIO

Step by step

5. Type the date for the first

installment

(it should be between 30 to

59 days of the purchase

date)

11

NEW PRODUCTS | CREDIÁRIO

Step by step

6. Cardholder types the

password

12

NEW PRODUCTS | CREDIÁRIO

Step by step

7. Print out of the simulation:

- Number of installments

- Purchase total amount

- Interest

- Date of first installment

- Amount of each installment

13

MERCHANT • More sales volume: more than 20 million cardholders from BB

and Bradesco with pre-approved lines of credit;

• Additional payment scheme without directly financing the

cardholder;

• Better cash flow as funds are received in D+1;

• Increase in average ticket;

CARDHOLDER • Pre-approved credit line from the bank;

• Attractive interest rates;

• Additional to credit card’s limit;

• Simulation at the point of sale;

CIELO • More sales volume;

• Merchant Discount Rate similar to credit in installments.

CREDIÁRIO: more advantages to participants

CIELO | CREDIÁRIO PRODUCT

14

Rationale

• Enhancement of Technology Platform

– Opportunity to leverage MeS’ technology to the Brazilian market and Rest of World

– MeS platform designed to achieve maximum scalability, efficiency and reliability at a low cost

• E-Commerce Improvement

– E- Commerce is fastest growth merchant category in payments

– MeS has expertise and proprietary technology tailored to serving e-commerce merchants

• Strong MeS Financial Performance

– High organic growth and attractive margins (LTM ended May 31, 2012 Net Revenues of USD 124 million)

MeS Highlights • Leading e-Commerce payment services

provider with full range of merchant acquiring, e-Commerce & fraud management solutions

• Proprietary, internet-based, next-generation technology platform with best-in-class scalability, analytical capabilities, delivery speeds and cost of services

• In-house development of products and services provides superior transaction economics across the value chain

• Portable platform with upside for expansion

• Good organic revenue growth, margins and free cash flow

• Seasoned management team

Cielo acquired 100% of Merchant e-Solutions for $670 million

INNOVATION – BEST IN CLASS PLATFORM

15

OPERATING PERFORMANCE

* Merchants that have conducted at least one electronic payment transaction with us within the preceding 60 days

1,133 1,140

1,199

1,153

1,291

2009 2010 2011 9M2011 9M2012

Number of Active* Merchants (thousands)

12.0%

2,003 2,322 2,658 1,928 2,263

1,424

1,716

1,964

1,391

1,622

2009 2010 2011 9M2011 9M2012

Number of Transactions (million)

Credit Debit

3,319

17.1%

3,427

4,038

4,622

3,885

134,792 162,933

197,541

141,400 176,400

79,165

98,742

118,315

83,100

99,100

2009 2010 2011 9M2011 9M2012

Transaction Financial Volume (R$ million)

Credit Debit

22.7%

213,957

261,675

315,856

224,500

275,500

CAGR 16.1% CAGR 21.5%

CAGR 2.9%

16

REVENUE BREAKDOWN

3.5% 4.2% 7.1% 7.1% 8.0%

27.7% 26.2% 23.4% 24.0% 25.1%

16.6% 17.6% 19.4% 18.7% 18.5%

52.2% 52.0% 50.0% 50.2% 48.4%

2009 2010 2011 9M2011 9M2012

Revenue - Activity (%)

Credit Cards

Debit Cards

POS Rental

Other Services

17

PREPAYMENT OF RECEIVABLES

218,2

403

611,5

418,4

610,4

2009 2010 2011 9M2011 9M2012

Revenue from Prepayment of Receivables ex Adjustment1 (R$ million)

54,0

68,5

58,3 59,1 57,3

2009 2010 2011 9M2011 9M2012

Average Term (days)

6,781

10,340

15,408

10,508

17,866

5.0 6.3

7.8 7.4

10.1

2009 2010 2011 9M2011 9M2012

Volume of Prepayment (R$ million)

Financial prepayment volume

% Prepayment over Credit Financial Volume

45.9% CAGR 67.4%

1 Adjusted to Net Present Value

18

OPERATING REVENUES AND COSTS

3,628

4,354 4,795

3,412

4,421

2009 2010 2011 9M2011 9M2012

Adjusted Net Operating Revenue (R$ million)

CAGR 15.0%

1,331

1,548

1,894

1,324

1,624

0.39 0.38 0.41 0.40 0.42

2009 2010 2011 9M2011 9M2012

Costs + expenses ex Subsidiaries (R$ million)

Costs + expenses ex Subsidiaries Unit Costs + expenses ex Subsidiaries

CAGR 19.3%

29.6%

22.7%

19

1,534

1,831 1,817

1,309

1,709

44.5% 45.9% 43.2% 43.6% 44.7%

2009 2010 2011 9M2011 9M2012

Net income (R$ million)

Net income Net margin

FINANCIAL PERFORMANCE

* EBITDA consists of net income (1) plus income tax and social contribution, (2) plus depreciation and amortization and (3) less financial income, net.

30.6%

2,263 2,564 2,389 1,746 2,257

65.7% 64.2% 56.8% 58.1% 59.1%

2009 2010 2011 9M2011 9M2012

EBITDA* (R$ million)

EBITDA EBITDA Margin

29.3% CAGR 2.7%

CAGR 8.8%

,

20

* 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 INVESTMENT CASE

21

INVESTOR RELATIONS CONTACTS

www.cielo.com.br/ri

E-mail: ri@cielo.com.br | Phone: + 55 11 2596 1701