Brazil Illustration: Expense Management Expense Management Market - PowerPoint PPT Presentation

Brazil Illustration: Expense Management

Expense Management Market Overview Fuel/Fleet Fuel Other car/truck related expenses Tyres, Washing All fuel types 90% 10% Maintenance Other (parking, toll, insurance) Travel & Entertainment Travel Entertainment Air Accommodation 30% 60% to to Rail Food & Beverage 40% 70% Car rental Other Parking / Toll fees ,Insurance, Taxis, Mobile phone / Internet use, Gifts, Fuel (use of a company car), Kilometer allowances (use of a private car) Edenred Brazil has experience of the Fuel/Fleet expense management market with Ticket Car 2 2

Brazilian Expense Management Market: Our Vision In 2011 Potential Market Potential Market Distribution Edenred Brazil Focus € 91B € 74B € 34B Light Fleet € 17B € 40B Heavy Fleet Expense Management Fleet Management Travel & Entertainment Potential Market Market Market Travel, Transportation, Company's own vehicle Food, and Accommodation fleet management expenses Source: DealMaker Study 2010, Anuario Denatran 2010, Anuario Fenabrave 2010, PWC Study 2011, TicketCar. Exchange rate: € 1,00 R$2,37 (31/11/2011) 3

Edenred Brazil Focus: Fleet Management Market MARKET MARKET TYPICAL SEGMENT SIZE SERVICES  Fuel Control € 34B FLEET LIGHT  Maintenance € 14B  Access Control € 1.4B (10%)  Driving Reports  Consulting Potential (1) Addressable (2) Addressed € 40B  Fuel Control HEAVY FLEET  Driving behavior reports € 16B  Toll Solution € 2.6B (16.3%)  Consulting Potential (1) Addressable (2) Addressed (1) Potential market: total fleet management expenses (2) Addressable market (internal estimates): calculated by excluding from total potential market very small companies and companies that do not intend to outsource their fleet Exchange: rate € 1,00 R$2,37 (31/11/2011) 4 4

Fleet Management Market BUSINESS VALUE CHAIN 2 3 1 PRE-TRIP ON-TRIP POST-TRIP Ordering & Behavior & Profile Fuel Fleet Management Logistics Insurance Telemetry Diesel Analysis Web Portal 24h Assist. Maintenance Gasoline Reporting Ethanol Documents      X X X COMPETITORS POSITIONING 5

A Leadership Position in Fuel & Fleet Management Market FUEL & FLEET MANAGEMENT Launched in 1998 Leader in Light Vehicle Fleet & Fuel Management market 6,000 Clients (46% cross-selling ) 14,000 Affiliates (71% gas stations) 87% of satisfied clients 6

Expense Management Change : Edenred Brazil Case Shell First Sustainable Solution Fuel Cards Web Operation Partnership (Ticket Car Carbon Control) 1998 2000 2002 2004 2006 2008 2009 2010 • Investment in new • Investment in new Other Services: Maintenance service platform technology platform Service • Invoice Collection • Expansion of • Exxon Mobil • 24h Assist. sustainable solution Partnership (Esso) • Expedited Services portfolio • Behavioral Management (Telemetry, Tachograph) From fuel cards to a complete solution 7

Focus on Client Needs Fleet usage policy Accepted on Broad Network Expense controls by vehicle Multiple drivers per vehicle and by person Cost Reduction (up to 20%) Detailed web-accessed reports Eliminates expense advance Flexibility and Security and reimbursement processes 8

Case Study With Ticket Car, Natura has What is this company? succeeded in reducing its fleet Natura Cosmeticos SA is a Brazil-based company that is engaged in management costs and its the manufacture, process engineering, distribution and sale of greenhouse gas emissions. cosmetics, fragrances and personal hygiene products . The Company operates in Chile, Peru, Argentina, Mexico, Colombia, Portugal and Venezuela. Partners since 2011 "Our partnership with Ticket Car provided us with many Fleet CO ² emission control and cost savings advantages, including in the areas of cost management and 1,500 vehicles respect for the environment, our core value”. Detailed studies to reduce CO ² emissions Reduced fossil fuel usage by 60%. Elton Baptistella 9 Natura's head of fleet management Reduced fleet spending by 15% 9

Brazilian Expense Management Market: Our Vision From 2012 Potential Market Potential Market Distribution * € 114B Edenred Brazil Focus € 91 Bi € 74B € 23B € 17B Expense Management Fleet Management T&E Carta Frete Potential Market Market Market Market Travel, Transportation, Company's own vehicle Payment of Food, and Accommodation fleet management freight services expenses Source: DealMaker Study 2010, Anuario Denatran 2010, Anuario Fenabrave 2010, PWC Study 2011, TicketCar. Exchange rate: € 1,00 R$2,37 (31/11/2011) 10 10

Fleet Expense Management: Ticket Frete Positioning Fleet expense management market is divided into four macro segments Description  Own transportation Companies with their own fleet system  Vehicles belonging to carriers Third party Heavy vehicles transportation  Available for eventual freight companies contracting  Vehicles belonging to 500,000 Heavy and Light Individual drivers individual drivers in the country vehicles Project scope  Vehicles used for specific purposes by companies, Light vehicles associations and public administration Source: DENATRAN and PwC analysis 11 11

Ticket Frete: individual drivers’ business expense management Current system: New system: New regulation from Nov. 2011 (penalties from Nov. 2012) paper-based card-based Claim refund Corporate client (1) Distribution of paper  Card system: paper replaced by pre-loaded vouchers usable in Payment of travel expenses contracted merchants card used to pay all expenses (gas, in contracted affiliates: (gas stations, hotels …) accomodation, tolls, and driver remuneration) Individual driver  Trip identification required by law: ID number for each trip declared to ANTT (2) (bar code system), to ensure tax collection Driver remuneration paid by gas station after goods delivery  Profile management: filtered usage on-trip based on pre-trip settings  Credit risk for affiliates (post-paid system)  Low traceability of individual drivers’ consumption (for corporate clients, carriers, and Brazilian State) (1) Corporate clients can contract with individual drivers for their goods transportation (directly or through an intermediate transportation company) 12 (2) Brazil National Office for Transportation

Ticket Frete, a Unique Selling Proposition Partnership with Itau Bank Partnership with STP  Edenred has signed a partnership with Itaú, the  Brazilian toll collection only by cash or automatic largest Latin American bank, with nearly 5,000 payment system (debit/credit cards not accepted) branches and 30,000 ATMs in Brazil alone  Edenred has signed a partnership with STP,  management company for toll and parking fee If some Ticket Frete clients postpay Edenred, Itaú automatic payment system Sem Parar/Via Fácil, which assumes the counterparty risk covers 89% of Brazilian concessionholder network  Itau promotes Ticket Frete among its large clientele  Interface between Ticket Frete and Sem Parar/Via Facil (fast time to market for Edenred) NFC collect system brings convenience to individual drivers Dedicated web portal Partnership with MasterCard  Simple and traceable way to comply with Brazilian  Open-loop solution giving access to a large network regulation requiring each trip to be declared to the (1.8 million merchants) National Transport Agency : Ticket Frete loaded with tokens enabling each trip to be identified (barcode system) Loyalty Programs  Simplified process to manage and control individual drivers’ expenses pre-, on-, and post-trip, offering  Loyalty programs for drivers and merchants possibility to customize authorizations according to driver’s profile (Ticket Frete is loaded pre trip with the  Additional revenue for merchants: more visibility and exact amount allowed for business generated with Ticket Frete label accommodation/gas/toll/wage) Quick roll-out from December 2011, based on same system/platform as Ticket Car 13

Business Model: Ticket Car vs. Ticket Frete Fuel/Fleet Expense Management Take-up rate (1) 4.0%-6.0% 0.5%-1.5% excl. Lost & Expired Lost & Expired - - Float & Financial - - Revenue 1.5%-2.5% 0.4%-0.7% EBIT/IV margin (2) A solution with slightly lower margins, however always accretive to FFO (1)Take-up rate : operating revenue with issue volume/ issue volume (2) At cruising speed 14

Conclusion 10- years’ experience in the Fuel A leadership position & Fleet Expense Management in this market Market Sophisticated transaction processing Particularly in Light Vehicles segment systems and platforms A new market created by the Ticket Frete, a unique selling government to improve tax proposition in the market collection A key component of Brazilian growth € 23B potential market for the next 5 years High potential of the Fuel & Fleet Management market in Brazil Ticket Frete, a significant new solution just launched 15