4Q17 Omni Presentation Safe harbor statement The information - - PowerPoint PPT Presentation

4q17 omni presentation safe harbor statement
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4Q17 Omni Presentation Safe harbor statement The information - - PowerPoint PPT Presentation

4Q17 Omni Presentation Safe harbor statement The information contained herein has been prepared by Linx S.A. (Linxor the Company) and this material does not constitute offering material in whole or part. This material has been


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4Q17 Omni Presentation

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Safe harbor statement

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The information contained herein has been prepared by Linx S.A. (“Linx”or the “Company”) and this material does not constitute offering material in whole or part. This material has been prepared solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities and should not be treated as giving investment advice. It is not targeted to the specific investment objectives financial situation or particular needs of any recipient. No representation or warranty either express or implied is made as to the accuracy completeness or reliability of the information contained herein. It should not be regarded by recipients as a substitute for the exercise of their own judgment. Any opinions expressed in this material are subject to change without notice and Linx is not under obligation to update or keep current the information contained herein. The Company their respective affiliates, agents, directors, partners and employees accept no liability whatsoever for any loss or damage of any kind arising out of the use of all or any part of this material. This material is intended solely for the use of persons who are market counterparties of intermediate customers (as detailed in the FSA Rules) and is only available to such persons. The information contained herein does no apply to and should not be relied upon by private customers. You should consult your own legal regulatory tax business. Investment, financial and accounting advisers to the extent that you deem necessary and you must make your own investment hedging or trading decision based upon your own judgment and advice from such advisers as you deem necessary and not upon any view expressed in this material.

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LINX at a glance:

Largest and Broadest Retail Technology Platform H I G H L I G H T S

~46,000 Clients 83% Recurring Revenues ~98% Client Retention Rates 15.7% 4-Year Net Revenue CAGR 25.1% Adjusted EBITDA Margin* 40.2% Market Share

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100% Retail Focus

Car Dealers Gas Stations Drugstores Service Retail Food Service Department Stores eCommerce

Apparel

* In this quarter, there was a small non-recurring expense related to the move to new headquarters in São Paulo in the amount of R$0.3 million.

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Our progress since IPO

283% 192% 114%

12,000 45,935 Profitability Retail Business Units Number of Retail Business Units Scale Clients Acquisitions Number of Acquisitions

A T I P O T O D AY

LTM Gross Revenue R$ ‘000) LTM EBITDA (R$ ‘000)* LTM Cash Earnings (R$ ‘000)* 11 25 143,499 67,037 45% 30% 127,549 47,474 656,137 224,478

1120 bps 169% +14

Leadership % of Cloud on Recurring Revenues 5 9

+4

Cloud Market Share 40.2% 29%

1,500 bps “At IPO” adjusted for CSI earn out. “Today” adjusted for: (i) partial reversion of an earn-out of Neemu and Chaordic; (ii) an adjustment related to the acquisition of Rezende; (iii) the duplicated condominium and maintenance expenses in São Paulo and Recife due to the move to new locations in these cities.

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LINX is uniquely positioned to capture the opportunity

UNIQUELY POSITIONED ACROSS COMPETITIVE LANDSCAPE

Scale and Leadership Expertise and Focus in Brazil Retail Breadth of Retail Verticals Geographical Coverage Across Brazil Company Sizes Integrated Technology Platform New Entrants International Companies Regional Providers

1120 bps Increase Since 2011

40.2%

Market Share

LEADING MARKET SHARE 5

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LINX’s customers provide validation of leadership

TRADITIONAL RETAIL DIGITAL

Source: Euromonitor, Abras, Abrafarma, IBEVAR

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Intl.

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POS + ERP

Business as usual

Cross Sell New clients Store openings

Linx continues to have great opportunities...

Omni Channel

Apps fo for Small a and Micro Retailers

Expansion to LATAM

OMS E-commerce Mobile Analytics CRM

Partnership with REDE Synthesis Acquisition

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Transactional Portfolio

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Our vision

New opportunities to increase the

PROFITABILITY OF THE PLAYERS…

New addressable clients

CPG Industry Acquirers Loyalty Programs

New Pockets

Marketing Trade marketing Market Research

New Markets

A.I. Payments Advertising Loyalty Big Data

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…WITH A SIMILAR BUSINESS MODEL

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SLIDE 9

Customer support Sales processes R&D

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FOCUS ON THE NEW OPPORTUNITIES

AN ORGANIZATIONAL STRUCTURE PREPARED TO

HR & Marketing Finance & IR

Apparel Gas Stations Fo Food Service ce Car Dealers Service ce Retail Big Retail Omni Channel Payments / Acquiring TEF Retail Intelligence ce Pharma And more to come…

Business as usual New markets

Business Units Business Units

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NEW OPPORTUNITIES

EXPAND ADDRESSABLE MARKET

POS / ERP Cross Sell Omni Channel Latam Expansion New Markets

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Our vision

NEW SIZEABLE

ADDRESSABLE MARKETS

TEF > 300 MM ACQ CQUIRING > 2,000 MM RETAIL INTELLIGENCE > 500 MM APPS > 500 MM ADVERTISING TBD Market opportunity in Brazil (BRL), p per year

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Source: Internal survey

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Financial Highlights

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Strong and consistent revenue growth

GROSS REVENUE GROWTH

(R$ ‘000)

126,347 147,622 24,203 34,496

150,550 182,118 4Q16 4Q17

325,868 409,765 479,750 544,940 87,403 95,468 88,239 111,197 413,271 505,233 567,989 656,137

2014 2015 2016 2017

Recurring Revenues Service Revenues

RECURRING REVENUE GROWTH

(R$ ‘000) 325,868 409,765 479,750 544,940

2014 2015 2016 2017

126,347 147,622 4Q16 4Q17

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High profitability

33,630 39,308 25.5% 25.0%

4Q16* 4Q17*

104,362 121,630 126,491 143,499 28.3% 27.1% 25.6% 25.1%

2014 2015 2016* 2017*

EBITDA (R$ ‘000) AND EBITDA MARGIN

EBITDA EBITDA margin

* Adjusted EBITDA

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High cash earnings generation

21,101 15,937 5,716 7,260 12,205 3,675

39,022 26,872 29.6% 17.1%

4Q16* 4Q17*

NET INCOME AND CASH EARNINGS

(R$ ‘000) Net Income Amortization of Acquisitions Deferred Income Tax

67,583 63,818 70,500 89,092 19,963 25,445 22,504 23,758 10,004 12,496 13,803 14,699 97,550 101,759 106,807 127,549

2014 2015 2016* 2017*

*Adjusted Net income and Cash earnings.

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