Brazil 2012 BTG Pactual XIII CEO Conference

Institutional Presentation - CSU CardSystem S/A

CSU BUILDS ITS HISTORY BASED ON FOUR BUSINESS DIVISIONS

Processing and Management of Electronic Means of Payment

The largest and most complete independent vendor in Latin America

Solution provider and integrator of actions and programs based on data-driven direct and digital marketing for customer-engagement

Management and solutions provider for Contact Center and BPO (Business Process Outsourcing)

Business Processes Management for merchant acquirers of the international credit card brands

The 1st independent company to operate in the merchant acquiring market

2

Electronic payment chain

Issuers

(Banks and Retailers)

Cardholders

Card / Billing

Commercial Transactions

Capture of

Electronic

Transactions

Request for

Approval

Approval Approval

Money Money

Request for

Approval

Money Money

Brands

Merchants

Acquirers

3

2011 Summary

2011 closes with major achievements

Preparation/pavement of groundwork for our future, on several fronts

CSU has a broad technological arsenal

4

• Resumed growth in CSU CardSystem • Two important and successful migrations (Tribanco and Sicredi)

• Proven organizational vitality

• Record volume of new cards in 2011: 8,8 million

• Existing alliances with banks/issuers to facilitate growth in retail

• Preparation of new technological frontiers

• Direct paycheck-deductible credit card

• Prepaid and Flex Prepaid cards

• Contactless solution

• CSU Acquirer goes operational • Banrisul deployment

• The only tested platform that is independent

and fully active in the market

5

2011 Summary

• CSU MarketSystem scope was expanded • Organizational restructuring

• Development and improvement of product portfolio

• New solution for customer acquisition

• Launch of Fans Engagement solution

• Opportunities in soccer clubs segment

• Integration with credit cards

• Usage of web tools as part of the new products

• Online rewards catalog

• Online sales platform

• CSU Contact operation is improving

• Reengineer of the business

• Successful acquisition of new clients

• Termination of unprofitable contracts and operations

• Replacement by sustainable contracts

6

2011 Summary

Macro guidelines for 2012

Diversify revenue streams

Expand revenues in areas with higher profitability

Launch new products, services and more efficient technologies

Implement products with higher value added

Enhance innovation capacity

Ensure strict management of costs/expenses and investments 7

CSU in 2012: priorities

8

• Focus at retail and middle market players

• Expansion of partnerships with finance institutions

• Mid-sized banks (public/private)

• Increase number of standard loyalty programs (retailers)

• Incorporation of web solutions applied to acquisition and relationships programs

• Online rewards catalog integrated with social networks

• Expansion of the fans engagement business

• C 360º

• Focus on middle market for traditional products

• Application of technology to obtain more value-added

• Evolution from “labor intensive" to "technology intensive"

• Superior operational performance

• Achievement of full capacity in Alphaview

New products and technologies in means of payments

PAYCHECK

DEDUCTIBLE

CREDIT CARD

9

PREPAID

FLEX CARD

IT

OUTSOURCING

FREIGHT

CARD

SUB

ACQUIRER

PREPAID

CARD

RELATIONSHIP PROGRAM INTEGRATED CARD

CONTACTLESS

CARD

Management of Lead Generation Suppliers

Financial Planning per Campaign

Data Enrichment Quality Information

Strategic and Tactical Planning of the Campaigns

Results Analysis Continuous Feedback

Campaign Management Geolocation

Customer Segmentation Statistics Modeling

Database Management (per customer / household)

Integrating of Driven Communication Channels C 360º

INTEGRATED SALES AND

COLLECTIONS PLATFORM

10

Detail of C360º: lower cost and higher agility to amplify results

New concept for management of coordinated sales / collections campaigns Use of multiple and modern technologies, tools and media

Integration of different channels of contact

16,2 23,9 19,9 15,9

10,3

16,7

8,6 16,0

2008 2009 2010 9M11

CSU CardSystem CSUContact

21,6

59,5

109,1 95,0

55,5

23,8

47,1

0,4x 1,5x

3,2x

1,5x 0,7x

0,3x 0,7x

2005 2006 2007 2008 2009 2010 9M11

Continuous investments and healthy capital structure

• CSU consistently invests in its

technological platform a minimum of

6/7% of net revenues.

• New investments geared at improving

technology, solutions portfolio and

growing the number of contact center

workstations.

• 2011 investments were focused in

increasing CSU s profitability

Investments

(in R$ million)

Net Debt and Net Debt/EBITDA

(in R$ million and ratio)

11

Recovery in growth and profitability

Net Revenues

(in R$ million)

46.3 45.5

73.7

106.0 114.6

-11.1 -6.3

6.7 17.0 33.1

39.3 33.9

64.4

78.9 78.1

2006 2007 2008 2009 2010

Profitability Evolution

(in R$ million)

• Revenue expansion quarter after

quarter in 2011

• Gradual improvement in EBITDA

generation

22.2

25.7

27.3

14.4 15.9

16.3

4.4 5.9 4,2

1Q11 2Q11 3Q11

Gross Profit EBITDA Net profit

3Q10 4Q10 1Q11 2Q11 3Q11

96.0

91.0

93.5

101.1 102.0

12

14.5 14.5

12.4

14.6 15.5

15.1% 15.9%

13.2% 14.4% 15.2%

SG&A Expenses

(R$ million and % of net revenue)

Management of Costs and Expenses

20,582

17,304

14,400 15,941 16,341

21.4% 19.0%

15.4% 15.8% 16.0%

3Q10 4Q10 1Q11 2Q11 3Q11

15.9%

Total Costs

(R$ million and % of net revenue)

EBITDA x EBITDA Margin

(R$ thousand and % of net revenue)

* 3Q11 SG&A disconsiders the one time effect of R$ 0.7 million referring to employees dismissals within a cost reduction program.

65.9 66.1 71.3

75.5 74.8

68.7%

72.7% 76.3% 74.6% 73.3%

96.0

91.0 93.5

101.1 102.0

15.1% 15.9%13.2% 14.4% 15.2%

3Q10 4Q10 1Q11 2Q11 3Q11

Net Revenue Operating Expenses

96.0

91.0 93.5

101.1 102.0

15.1% 15.9%13.2% 14.4% 15.2%

3Q10 4Q10 1Q11 2Q11 3Q11

Net Revenue Operating Expenses

*

13

4,010 4,728

1,167 1,883

1,027

8,805

3,931*

808**

* Migration Tribanco ** Migration Sicredi

2010 1Q11 2Q11 3Q11 4Q11 2011

Strong operating performance

Average Card base

(in million of units)

Gross Revenue

(in R$ million)

Gross Income and Gross Margin

(in R$ million and % of net revenues)

20.1

24.3

20.6

25.3

16.4

20.9

17.0

22.6

2008 2009 2010 9M11

Registered Billed Cards

59.9 54.5

49.8 55.6 55.3

3Q10 4Q10 1Q11 2Q11 3Q11

27.2 25.0

21.1

24.6 23.2

49,2% 49,6% 45,7% 48,1% 45,6%

New Cards

(in million of units)

3Q10 4Q10 1Q11 2Q11 3Q11 14

Gross Revenue

(in R$ million)

4,283 4,796

4,225

3,494 3,757 4,207

2006 2007 2008 2009 2010 9M11

Positioned for profitable growth

15

Number of Workstations

(in units)

Gross Income and Gross Margin

(in R$ million and % of net revenues)

• Investments in the organizational structure and

market repositioning accelerated growth in the

number of workstations

• Focus at growth in premium contracts in order to

gradually increase the profitability

• HR specialized professionals, goal of being the

best to attract, train and retain employees

43,6 43,5

50,7 53,5 54,5

2.851

(117)

1.107 1.081

4.003

7,0%

-0,3%

2,34% 2,16%

7,8%

3Q10 4Q10 1Q11 2Q11 3Q11

96.0

91.0 93.5

101.1 102.0

15.1% 15.9%13.2% 14.4% 15.2%

3Q10 4Q10 1Q11 2Q11 3Q11

Net Revenue Operating Expenses

CARD3 is traded at inexpensive levels as compared to

the market

1. Current data: Last 12 months - Last balance sheet and income statement - reference date Feb 10, 2012 2. Methodology for calculating EBITDA standardized by Economática

Company name

Net revenue

(US$ million-

12M)

Gross Margin

(%)

EBITDA

Margin

(%)

Net Margin

(%) EV/EBITDA P/E

10756.3 69.0 20.1 -5.8 - -

2049.4 64.0 22.8 11.3 8.2 18.0

1776.7 - 26.6 11.7 9.2 20.2

Média do Segmento 4860.8 66.5 23.2 5.7 8.7 19.1

1533.3 13.6 8.7 1.5 7.6 32.8

Média do Segmento 1533.3 13.6 8.7 1.5 6.9 32.8

209.0 25.8 16.2 6.0 3.9 8.7

16

High level of Corporate Governance

Well structured internal controls

Stock based compensation plan for executives

Solid investor relations culture Investment by private equity funds since 1997

Fiscal Council 3 members, with 1 appointed by minority shareholders

Majority of independent board members

Novo Mercado (100% tag-along rights; no poison pills)

100% common shares and 42% free float

Active Sustainability Arm (CSU Institute)

17

Consolidated Financial Information

(in R$ million and % of

net revenues) 2006 2007 2008 2009 2010 3Q11 9M11

Net Revenue 318.8 318.6 363.7 394.8 383.3 102.038 296.603

Gross Income

Gross Margin

46.3 45.5 73.7 106 114.6 27.245 75.069

14.5% 14.3% 20.3% 26.8% 29.9% 26.7% 25.31%

Gross Margin

45.4 50.9 71.2 94.3 103.3 23.242 68.878

34.1% 34.4% 36.0% 40.4% 46.3% 45.6% 46.5%

Gross Margin

0.9 -5.4 2.4 11.6 11.3 4.003 6.191

0.5% -3.2% 1.5% 7.2% 7.0% 7.8% 4.2%

EBITDA 39.6 33.9 64.4 78.9 78.1 16.341 46.682

Net Income -16.5 -6.3 9.5 17.9 33.1 5.002 15.269

Net Debt 59.5 109.1 95.0 55.5 23.8 47.1 47.1

Capex 28.9 46.9 25.4 40.6 28.5 7.8 31.8

18

Data Processing

Credit Analysis

Fraud Prevention

Bills Remittance Follow-up Letters

Cards Embossing Cards Issuance Welcome Kits

24-hour-Customer Care

Collection Services

Operations Back Office Accounting

Information System

Systems Development &

Maintenance

Internet Customer Service

BROAD SOLUTION

19

FULL SERVICE SOLUTION

Back Office & Special Interchange

Electronic Transaction Capture Network

Fraud Prevention

Supply Management

Accounting Financial Clearing

Merchants Technical Support

Business Management

Internet Customer Service

Merchant s Call Center / Help Desk

Information Mailing to Merchants

20

21

Among the market leaders in terms of results of the collections operation

COLLECTIONS

Among the top 3 companies for telesales operations

TELESALES

Understanding the client's business in order to propose improvements in processes

CUSTOMER CARE

RESOLUTION AND CONVERSION

FLEXIBLE SOLUTION

21

22

REVAMPED SOLUTIONS

Customer Acquisition

Relationship/Fidelity

Sales/Lead Generation

Customer Activation

Recovery/Anti Attrition DATA

INTELLIGENCE

Mônica Hojaij Carvalho Molina

Carlos Montenegro

Thatiana Zago

Investor Relations

Tel: +55 (11) 2106-3821

E-mail: ri@csu.com.br

Web Site: www.csu.com.br/ri

This material is the property of CSU CardSystem S.A., and any partial or total reproduction without the Company’s written approval is prohibited. All rights reserved. Opinions expressed in this document are subject to change without prior notice.

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