1. Cielo Day 2011EDUARDO CHEDID | EXECUTIVE VP PRODUCTS AND BUSINESS

2. INVESTMENT IN INNOVATIONCIELOPREMIA CIELO CIELO MOBILEMOBILE For Android For iOS (Appledevices) 3. Some figures for 2011 in the World 5B cellular phones (4.2B toothbrushes) 4B Facebook messages per day 3B people under 25 2B with access to the internet (2B bank accounts) 1B PCs (300M websites) 4. Some figures for 2011 in the WorldHigh Internet PenetrationVideo and Interactivity70 million internet users;YouTube is the worlds 3rd largest 35% penetration in middle class; search engine;Growing at 25%/year Penetration in Brazil: > 50%Internal Internet Use Growing Mobility About 200 million cell phones27 hours of use per month 105% penetration (6th highest in the world) Smartphone penetration shouldin 5 years Broadband PenetrationIncreased Use of Social NetworksGeneral: 26% (6% in 2004)85% with internet use socialIn commercial establishments: networks (2nd in the world); 72%Posts/user: highest in the worldMultichannelWord of MouthE-commerce CAGR: 40% 90% of Brazilians trust23 million e-shoppers recommendations from other users 5. CONTEXT In the next years, payment market dynamics will be deeplyimpacted by new technologies and convergence between channelsProjection of m-payments volumeUSD bn E-commerceaverage CAGR80%Above USD 500bn in 4yearsMulti-channel Offline MobileUsers increasingly interact with variouschannels when purchasingIncoming users Multichannel transactions are expected to reach sixDefinition of a technological standardtimes the e-commerce volume for 2014 in the US Ecosystem Structure 5 Fonte: anlise da equipe 6. Convergence Epicenter 7. Google wallet has already been joined by major North American retailers and is being accepted at MasterCards PayPass terminals. Visa has just joined. Google Wallet launched in 3Q11 It uses NFC technology currently available only on Nexus S cellphones Transactions captured by any POS with MasterCards PayPasstechnology It can be used with a Citibank MasterCard or Google prepaid card Googles prepaid card accepts any existing card as a source of funds Partnership with major retailers for complete offer of coupons, loyaltyprograms and single TAP payments Fusion with Google Checkout for using the wallet in e-commerce Visa announced its adhesion 2 months agoPARTNERS Some participant retailers 8. The ISIS release is expected for 1Q12, with a model open to various means of payment and focused on offering several NFC functionalities Launch slated for 1Q12 JV of the chief US carriers (ATT, Verizon, T-mobile) It will feature NFC technology carriers have already purchased NFCphones from their suppliers OPEN model. Offering several of means of payment. Visa, MasterCard,Amex, Discovery, etc..] Many NFC features: payment, gift cards, membership and loyalty cards,ticketing, coupons and discounts, ads, etc.. Influencing the standard for security elements in the chip to maintaincontrol of the channelPARTNERS 9. PayPal has been investing in several technologiesto be the first-mover and expand its model fromonline to offline scope, avoiding NFC dependence Release expected in 1Q12 Focus on raising its clients base (users and merchants) andbringing the successful e-commerce model to the physical scope(security, ease of use, P2P, etc.) Technology agnostic: Several manners to access the wallet account:by cell phone with data connection, NFC, entering ID in the POS oreven a physical PayPal card Broad product portfolio for the purchase process of theuser/merchant: payment, after deciding on the means of payment(i.e. in installments, card A or B) loyalty, coupons, price comparison,inventory verification, etc.. Focus on fast adoption without depending on NFC Cell phone solution that requires an update of the merchantsPOS (partnerships will be announced in 2012), with a physical cardthat does not require updatesACQUISITIONCONVERSIONRETENTION DemandIn-StoreLoyalty andLocal SearchPaymentgeneration Engagement Payment Flexibility 10. CIELOS VISIONCELL PHONE AS CELL PHONE ASA SALES TOOLA PURCHASINGTOOL 11. CIELO - Cell phone as a sales tool 12. CIELO - Cell phone as a sales tool It serves 3 basic needs: Mobility Spot sales Backup It expands the acceptance of electronic means to small enterprises andsegments to yet fully penetrated Currently available in 2 versions Smartphone: iOS (iPhone, iPad and iTouch) and Android All cell phones by SMS: Oi and Claro M4U Platform 13. CIELO - Cell phone as a purchasing toolDEPENDENCE ON HOW IT WORKS TECHNOLOGY EXAMPLES TECHNOLOGICAL CHANGESCELL PHONE as amobile wallet that SMS LOWuses the network USSDto authenticate aM-PESAEtc. transaction Fundamo ObopayCELL PHONE as a mobile wallet thatCELL PHONE AS A purchases by NFC HIGHPURCHASINGapproximation to a TOOLpoint of sale/capture 14. PAGGO: created to be multi-issuer, multi-provider and multibrand 15. PAGGO LAUNCHCo-branded Credit card that offers correspondence between the card number and the cell phone number. To make payment, the holder may type the cell phone number in Cielos POS, without having to present the plastic card. This to-from relationship between card and mobile can be expanded to other issuers and brands.Welcome KitMala direta para clientes Oi Paggo legada 16. PAGGO RELEASEPOS NetworkROLL OUT OF CIELOS POS BASEThe 1st stage will include the following cities:Salvador, Recife, Fortaleza, Natal and JooPessoa.Starting in 1Q12, the whole base of morethan 1.6 million Cielo POS devices will beable to perform mobile sales with the co-branded cards.COMMUNICATION AND SIGNAGEDescription: Booklet with institutionalcommunication and sticker.Model: Booklet + sticker by direct mail. Thepacket will be included the Cielo Informabulletin. 17. WHAT IS THIS? 18. CIELO INNOVATES ONE MORE TIMEAND BRINGS AN ADVANCED TECHNOLOGYCHANGING THE CULTURE OF CARRYING OUTPROMOTIONS AT THE POINT S OF SALESCIELO PREMIA IS THE MOSTFLEXIBLE AND THE EASIEST TO USEPROMOTIONAL MARKETING TOOLIN THE MARKET 19. THE MAIN ADVANTAGESThe card owner with a differentiated SURPRISESpayment experienceThe card owner through multipleENGAGES gifts and discountsThe promotion according to your needsSEGMENTS(Bank/Card Brand/Card type/Purchasing option: Debit or Credit)The promotion automaticallyMANAGES reducing operational costs strongly 20. HOW DOES IT WORK? 21. The promotional messageis printedin the receipt Cardowner Cielo 22. A DISCOUNT OR A GIFTAT THE PURCHASING MOMENTIT SURPRISES THE CARDOWNER WITH ADISCOUNT OR A GIFTAT THE PURCHASING MOMENTADVANTAGES TOCIELO CLIENTINCREASING OF THEPURCHASING AVERAGE TICKETAT THE POINT OF SALES 23. GIFT AT THE PURCHASING MOMENT*** CONGRATULATIONS ***GIFT TO YOU You have justreceiveda collection mug 24. ACCUMULATIVE PURCHASING VALUEIT GIVES THE CLIENTA GIFT OR A DISCOUNTBASED ON THEPURCHASING VALUEADVANTAGES TOCIELO CLIENTIT INCREASES THERETURN FREQUENCYIT INCREASES THE PURCHASINGAVERAGE TICKET 25. ACCUMULATIVE PURCHASING VALUE ACCUMULATING R$85,00 THE MESSAGE INFORMS THE CLIENT ABOUT THE GIFT ***PROMOTION******PROMOTION******PROMOTION***LYMPHATIC DRAINAGE LYMPHATIC DRAINAGELYMPHATIC DRAINAGEACCUMULATING R$85,00ACCUMULATING R$85,00 YOU WON A LYMPHATIC IN THIS BEAUTY SALON WITH IN THIS BEAUTY SALON WITHYOUR CARD YOUR CARD DRAINAGEYOU WILL WIN A LYMPHATICYOU WILL WIN A LYMPHATIC OF YOUR CARD X DRAINAGEDRAINAGE ENJOY IT!JOIN IT!JOIN IT!ACCUMULATED VALUE: ACCUMULATED VALUE:ACCUMULATED VALUE: R$ 25,00 R$ 65,00R$ 85,00 **** 26. CROSS-CAMPAIGN IT GIVES A DISCOUNT OR A GIFT IN ANOTHER STORE ADVANTAGES TO CIELO CLIENT CONSUMER LOYALTY POSSIBILITIES OF PARTNERSHIPS WITH OTHER STORES INCREASING OF THE AVERAGE TICKET 27. CROSS-CAMPAIGN*** GIFT TO YOU ** Buy R$ 100WIN A CUPOF COFFEE AT CIA. DO CAF 28. PREDETERMINED DAY AND TIME IT GIVES THE CLIENT A GIFT OR A DISCOUNT ON A SPECIFIC DAY / TIME ADVANTAGES TO CIELO CLIENT IT INCREASES THE RETURN FREQUENCY ON A DAY WITH LOW MOVEMENT 29. PREDETERMINED DAY AND TIME*** CONGRATULATIONS!*** DISCOUNT TO YOU10% discountAt the end of the day On Mondays PRIZE BALANCE--------------------------EXPIRING DATE: 01/31/2011