Corporate Presentation August / September 2012 0 Disclaimer The - PowerPoint PPT Presentation

Corporate Presentation August / September 2012 0

Disclaimer The material that follows is a presentation of general background information about T4F Entretenimento S.A (“T4F”) as of the date of the presentation. It is information in summary form and does not purport to be complete. This material contains confidential information regarding and may not be reproduced or circulated, partially or completely, without the prior written consent of the T4F. Any statements, projections, expectations, estimates and plans contained in this document that do not describe historical facts, and the factors or trends affecting financial condition, liquidity or results of operations, are forward-looking statements and involve several risks and uncertainties. Such statements are based on assumptions and analyses made by the Company based on its experience and the economic climate and on market conditions and expected future events, many of which are beyond the Company’s control. No investment decision should be based on validity, accuracy or completeness of the information or opinions contained in this presentation. Under no circumstances, neither the Company nor its subsidiaries, directors, officers, agents or employees be liable to third parties (including investors) for any investment decision based on information and statements in this presentation, or for any damages resulting therefrom, corresponding or specific. This presentation does not constitute an offer, or invitation, or solicitation of an offer, to subscribe for or purchase any securities. Neither this presentation nor anything contained herein shall form the basis of any contract or commitment whatsoever. 1 1

1. A Strategic View of our Industry 2

A strategic View of our Industry A favorable macroeconomic environment in South America and structural changes in the global media and live entertainment industry are the foundations of T4F’s sustainable growth 5 out of the 10 largest GDP growths in emerging economies are in South America Peru Brazil Global touring became essential for the world’s major artists Top live entertainment contents willing to go on tour in South America Argentina Migration of marketing budgets to sponsorships of live Chile entertainment 3

A strategic View of our Industry  Very favorable environment for the live entertainment industry Wide range of quality content for tours in South America  The region is definitely in the international route of the major artists The live entertainment industry in South America keeps its robust growth  Strong growth in the number of tickets sold not only in Brazil, Argentina and Chile, as well as in Peru and Colombia According to a study by Nielsen Institute, published in Feb/2012, out-of-home entertainment is the first choice of spending for 39% of Brazilians , ahead of payments of debts... A study made in Jun/2012 by PwC highlighted Brazil as one of the highest-growing markets in global entertainment and media industry in coming years. The projection indicates that spending in this sector in Brazil will register compound annual growth of 10.6% vs. global average of 5.7% p.y ...South America will be the region with the greatest development in the period 2011-2016, growing 60% with investments reaching US$ 134 billion... Migration of marketing budgets towards non-traditional media (sponsorships) Research by “ Jornal Valor Econômico ” in Jan/2011, a Brazilian leading newspaper, reveals that the sponsorship of shows in Brazil is becoming more expensive . The master sponsorship quotas have been at the R$10 million to R$ 15 million range. ...those amounts have suffered the greatest increases in the last 5 years... E-Marketer , a leading global media and digital marketing research company, estimates that naming rights and sponsorships should amount US$ 5 billion worldwide in 2011... 4

1. Descrição da Companhia 2. Company Overview 5

Shareholding Structure Shareholding Structure Stake Fernando Luiz FA Comércio e Shareholders Direct + Indirect CIE International Alterio Participações 49.9% 50.1% 8.4% Fernando Luiz Alterio 31.7% CIE International 9.7% 27.5% 5.5% Gávea Investimentos 6.8% Shareholders’ Agreement 48.2% 51.8% 6.8% Gávea Investimentos Free-Float Free Float 51.8%  Pricing Date - April 7 th 2011; Price - R$16.00 ; Offering Size - R$503 million (US$310 million 1 ) IPO Summary  Use of Proceeds (i) Acquisition of companies and venues, (ii) construction of venues and (iii) geographic expansion Bookrunners 1: Assuming the exchange rate of US$1 = R$1.6207 as of May 12 th , according to Bacen. 6 6 6

Company Overview T4F is the leading live / out-of-home entertainment promoter in South America with a diversified and verticalized business model Leading company High Growth and Our Presence Unique Industry Diversified and in live entertainment Strong Cash (Net Revenue 2011) Knowledge Verticalized Model in South America Generation  Net Operation Cash   30 years of experience  Promotion of multi-  4 th largest player Brazil 76% Flow = 87% of content events worldwide by Billboard  Promotion of the most EBITDA ( ∑ 05-11)  successful events in Argentina 16%  Venues Operation  Net Revenues CAGR  1.2 thousand shows Brazil, Chile and 11% (07-11) Argentina promoted in 2011   Food & Beverage and Chile 8%  EBITDA CAGR  Pioneer in naming rights Merchandising  2.9 millions tickets sold 21% (07-11) model in 1999 in 2011  Ticketing Services  Sustainable margins going forward ONE AND ONLY INVESTMENT OPPORTUNITY IN THE ENTERTAINMENT INDUSTRY IN SOUTH AMERICA 7

A Diversified Portfolio of Entertainment Live Music Sport Events Theatrical Production Performing Arts Stomp The Addams The Phantom U2 Madonna Cirque Du Soleil Stock Car Marcas of the Opera Family Pearl Jam Roger Waters Copa Montana Mini Challenge Cats Blue Man Group Bodies The Lion King Verticalization FOOD & BEVERAGE MERCHANDISING VENUE OPERATIONS TICKETING SERVICES Revenue Sources Food & Beverage, Sponsorships and Suites and Hospitality Private Box Office Ticketing Services Merchandising, Naming Rights Centers Events and Parking 8

Leadership Position in Live Entertainment Industry U2 Madonna 3 out of the 11 largest 3 out of the 5 largest shows of 360º World Tour shows of the tour in 2008 Coldplay Bon Jovi Promoted the 1 st and 5 th Promoted the 2 largest largest shows of all tours shows of the 2010 world tour Guns N’ Roses Pearl Jam Promoted 7 out of the 10 4 out of the 5 largest shows of the tour largest shows of the world tour in 2011 9

Leadership Position in Live Entertainment Industry - More than 1,450 performances 2006 - 12 cities visited 2007-2008 - More than 2.5 million tickets sold Cirque du - Quidam in Sao Paulo was Cirque du 2009-2010 Soleil Soleil’s biggest box office and the 6 th biggest international box office in 2010 2011-2013 - Corteo will start in Mar/2013 2013-2014 Les Misérables, Chicago, 12 different contents Beauty and the Beast, Mamma Mia, Miss Saigon, The only player that ever promoted Theatrical authentic Broadway productions in the Phantom of the Opera, Plays region The Sound of Music, Cats, Sweet Charity, Cabaret, More than 3.5 million tickets sold since The Witches of Eastwick, 1999 The Addams Family 12 races per season in 10 different cities Sports Stock Car is the third largest touring car series Events worldwide and the largest in South America Broadcasted by TV Globo since 2001 10

3. Investment Highlights 2. Tese de Investimento 11

Investment Case Attractive Compelling business Macroeconomic model and Superior Live Entertainment Environment and Robust Management and Industry Growth Consumption Growth Expertise  Massive increase in  Live music:  Superior business model: disposable income and higher return with lower risk  Touring became expansion of consumer essential for artists base  Credibility with international and domestic agents and  Aggressive growth in  Expenditure of privileged access to high South America in terms entertainment is extremely quality entertainment of ticket sold and correlated to consumer providers average ticket price spending 12

Positive Trends for Expenditures with Entertainment in Emerging Markets… Expenditure with Entertainment as a % of the Disposable 2011E-2016E GDP Growth (1) Income vs GDP per Capita 12.0% China 56.6% R 2 = 0.66 Expenditure with entertaiment as a % of disposable income R 2 (ex Argentina) = 0.81 UK India 47.0% Japan Indonesia 38.9% 10.0% 33.3% Peru Spain Malaysia 28.0% USA Argentina Chile 24.7% New Zeland 8.0% Colombia 24.5% France Singapore 22.6% Portugal Greece 22.6% Argentina Italy 6.0% 22.0% Croatia Brazil Israel Russia 21.5% 19.0% Mexico 17.9% Australia 4.0% 5 out of the 10 Brazil Sweden 16.3% largest growths 15.0% United States Mexico in GDP are in 15.0% New Zealand Chile 2.0% China 13.7% South America Croatia India Colombia 12.5% United Kingdom Venezuela 12.0% Canada Peru 0.0% 12.0% Venezuela 0 10,000 20,000 30,000 40,000 50,000 9.9% France 9.5% GDP per capita in 2009 (US$ '000) Japan (1) In local currency real terms. Source: Euromonitor. Source: IMF – World Economic Outlook. Expenditures with entertainment are expected to significantly increase in emerging markets 13