Institutional Presentation December, 2018 18 ACTIVITIES BUSINESS - PowerPoint PPT Presentation

Institutional Presentation December, 2018 18

ACTIVITIES BUSINESS We manage the member ’ accrual and redemption of points Brazil’s largest coalition program, We sell points to our partners to reward their customers with a network of Loyalty programs, allowing the accrual One We purchase awards (products and/or services) from the partners single and redemption of points in to offer our members as redemption offers in the network account various partners and Loyalty We create products to facilitate and improve the member’s programs experience We develop information technology, explore the transactional behavior of our members and offer CRM services • Members accumulate points from different programs into a single account and the partners have the opportunity to increase their sales • Currently, our network consists of more than 295 partners – retailers, industry, and services – and gathered 22.2 million members , who can earn Multiplus points directly or indirectly (through a partner program transfer) in more than 13 thousand commercial establishments • It is possible to redeem points for more than 550 thousand options of products and services • All points (including bonus) are valid for 2 years (including bonus points) and non-expiration for Multiplus Itaucard Black customers and members of 10,000 club 2

2013 • Improved corporate 2015 2017 governance structure • Multiplus implements 2011 • Partnership with Vivo • Two independent • Partnerships with startups Multiplus becomes changes to its operating members on Board • Record gross billings model with TAM one of TOP 100 most • Non-air redemptions • Redemption of air tickets on • Record points issued liquid stocks in reached record 8% in a • New co-branded card Multiplus marketplace Bovespa quarter 2009 2018 2011 2012 2013 2014 2015 2016 2017 2010 2014 2016 2018 2009 2012 • TAM joins Oneword • Launch of Club Multiplus • International Expansion Spin-off from Multiplus • Launch of mobile app • Multiplus launches a • New Entertainment TAM and reaches 10 • Multiplus launches "Points + insurance brokerage firm Platform Multiplus’ IPO mln members • New platform of hotel Money“ and Game • Launch Members´ Council Multiplus reservation • New Incentive platform 3

Points selling Redemption Expiration 1.SPREAD 3.BREAKAGE Unit revenue Points expired: minus unit cost No cost number of 24 CASH IN CASH OUT 2.FLOAT months Revenue on interest 4

Novo Mercado (New Market) Ownership breakdown: 100% tag along Free float 27.16% Dividend distribution: 100% of net income Only ordinary shares; “ one share, one vote” 30% of independent members on Board TAM S.A. 72.74% Committee on Finance, Audit, Governance and Special committee Related Parties 5

22.2 million HIGHLIGHTS 4Q18 Members R$ 119.5 M Net Income 24.8% of points Issued by n non-airl irline ine and non-fin financia cial partners rs 17.5 billion Points s Redeemed ed 6

/ E-MAIL MARKETING APP • • Increasing knowledge about It provides partners with • Customized pages • our members allows us to new and efficient ways to Redemptions available • Advanced search • contribute in various ways reach their customers Exclusive offers • Flexibility in offers and • • with partners Games and challenges Tracking accrual of points communication with customers • • • Targeted offers using Alignment with specific Geolocalization and partners statistical models objectives of the partner 14 14

MEMBERS BEHAVIOR Results of some of our models Propensity model for air tickets in specific routes: 4 times higher in volume of points and members. 7% of the base bringing 94% of the result on a Points + Money campaign Propensity model for accrual in TAM Itaucard card : 6 times higher in number members and 15 times higher in number of points Clustering Propensity model for redemption in retail partnerships : the of the base combined use of various models brought a result 100% higher in number of points and members according to propensity models 15

NEW ROUTE CAMPAIGNS CAMPAIGNS 16

Incentive HIGHLIGHTS New platform orm Resgate Fácil Options starting ing from 200 points. s. Extra Points Itaú and Santander er Bank Insurance Broker 17

VALOR MARKET RECOGNITIONS ECONÔMICO CONSUMIDOR MODERNO ÉPOCA NEGÓCIOS 360 ASSIST CARD 18

FINANCIAL VOLUME OF ISSUED POINTS FINANCIALS POIN INTS TS ISSUED ED (bil illi lion) on) FINANCI ANCIAL AL VOLUME UME OF ISSUED UED POINT INTS S (R$ million ion) + 0.3% -2.1% 92,0 90,0 2462,0 2453,7 + 7.15 % + 4.06% 21,6 21,4 20,5 625,3 618,7 577,4 (*)Unit price 310 310 312 312 306 306 BRL/10 k points 2Q18 3Q18 4Q18 2017 2018 2Q18 3Q18 4Q18 2017 2018 19 (*)Unit price of banks, retail, industry and services

NET REVENUE AND NET INCOME FINANCIALS NET REVENUE VENUE (R$ million) NET INCOME OME (R$ million) GROSS SS MARGIN IN (% NET MARGIN GIN (%) 400,0 300,0% 300,0 96,2% 96,3% 96,7% 95,0% 91,7% 59,8% 57,1% 56,0% 53,2% 52,6% 1 350,0 100,0% + 26.5% 250,0 + 20.4% 0 300,0 -100,0% 200,0 - 250,0 -300,0% + 84,2% 213,5 177,4 172,1 - 200,0 -500,0% 150,0 119,5 123,3 123,3 98,2 94,5 - 150,0 -700,0% 100,0 73,8 64,9 - 100,0 -900,0% Points 50,0 redeemed 22,4 20,2 19,1 19,0 17,5 - 50,0 -1100,0% R$/ (billion) 3,28 3,24 3,69 3,96 3,82 US$ 0,0 -1300,0% 0,0 - 4Q17 1Q18 2Q18 3Q18 4Q18 4Q17 1Q18 2Q18 3Q18 4Q18 % international redemption  49% 49% 54% 56% 51%

APPENDIX

Income Statement (R$ thousand) 4Q18 3Q18 4Q17 2018 2017 Var % Var % Var % 97.7% 42.4% -24.7% Revenue with rights to awards redemption 115,570 58,453 81,139 331,995 440,626 Recognition of reward redemption's right liability 525,477 557,396 -5.7% 510,388 3.0% 2,145,725 2,138,433 0.3% LATAM Brazil 34,963 37,279 -6.2% 36,169 -3.3% 143,137 159,778 -10.4% Banks, Retail, Industry and Services 490,514 520,117 -5.7% 474,219 3.4% 2,002,588 1,978,655 1.2% Expenses with reward redemption's right (409,907) (498,944) -17.8% (429,249) -4.5% (1,813,730) (1,697,807) 6.8% -18.8% 2.3% 11.2% Air tickets (358,831) (441,940) (350,908) (1,597,647) (1,436,927) -10.4% -34.8% -17.2% Other redemptions (51,076) (57,004) (78,341) (216,083) (260,880) Breakage 120,161 74,963 60.3% 114,951 4.5% 364,727 411,432 -11.4% Taxes on sales (22,204) (10,081) 120.3% (18,680) 18.9% (64,459) (87,657) -26.5% Net Revenue 213,527 123,335 73.1% 177,410 20.4% 632,263 764,401 -17.3% Operational costs (7,016) (10,250) -31.5% (6,692) 4.8% (29,796) (21,725) 37.2% Gross Profit 206,511 113,085 82.6% 170,718 21.0% 602,467 742,676 -18.9% Gross Margin % 96.7% 91.7% 5.0p.p. 96.2% 0.5p.p. 95.3% 97.2% -1.9p.p. 22

Income Statement (R$ thousand) 4Q18 3Q18 4Q17 2018 2017 Var % Var % Var % Shared services (175) (175) 0.0% (117) 49.0% (758) (642) 18.0% Personnel expenses (21,989) (18,949) (21,664) (84,298) (77,994) 16.0% 1.5% 8.1% Marketing (3,923) (4,026) (6,889) (19,538) (20,209) -2.6% -43.1% -3.3% Amortization and Depreciation (5,209) (5,340) (5,379) (20,344) (24,038) -2.4% -3.2% -15.4% Results on equity share 287 (340) (1,612) -117.8% (1,717) (3,049) -184.5% -43.7% Other (15,256) (14,223) (21,763) (56,332) (34,051) 7.3% -29.9% 65.4% Operating Expenses (46,264) (43,053) 7.5% (57,424) -19.4% (182,989) (159,983) 14.4% Total Costs and Operating Expenses (53,281) (53,303) 0.0% (64,117) -16.9% (212,785) (181,708) 17.1% Operating Income 160,246 70,032 128.8% 113,293 41.4% 419,478 582,693 -28.0% Operating Margin % 75.0% 56.8% 18.3p.p. 63.9% 11.2p.p. 66.3% 76.2% -9.9p.p. -21.6% -29.8% -35.9% Financial Income/Expenses 17,196 21,928 24,482 103,663 161,679 Net income before tax and social contribution 177,442 91,960 93.0% 137,776 28.8% 523,141 744,372 -29.7% Income tax and social contribution (57,907) (27,053) 114.1% (43,318) 33.7% (166,743) (227,174) -26.6% Net Income 119,535 64,907 84.2% 94,458 26.5% 356,398 517,197 -31.1% Net Margin % 56.0% 52.6% 3.4p.p. 53.2% 2.7p.p. 56.4% 67.7% -11.3p.p. 23