2
Disclaimer
This presentation may include forward-looking statements about future events or results according to
the regulations of Brazilian and international securities and exchange commissions. These statements
are based on certain assumptions and analyses by the Company that reflect its experience, the
economic environment, future market conditions and events expected by it, many of which are beyond
its control. Important factors that may lead to significant differences between actual results and the
statements of expectations about future events or results include the company’s business strategy,
economic conditions in Brazil and abroad, technology, financial strategy, client business development,
financial market conditions, uncertainty regarding the results of its future operations, plans, objectives,
expectations and intentions, among others. As a result of these factors, the actual results of the
Company may significantly differ from those mentioned or implicit in the statement of expectations
about future events or results.
The information and opinions contained in this presentation should not be understood as a
recommendation to potential investors and no investment decision should be based on the veracity,
currency or completeness of this information or these opinions. No advisors to the company or parties
related to them or their representatives will be responsible for any losses that may result from the use
or the contents of this presentation.
3
Cards Market and CardSystem
Base growth continues quicker than market
growth
Trend of replacement of private label
cards with hybrid cards
Opportunities generated by government
actions in the cards market (possible
dispersion of acquirers).
Private Label + Credit Market CardSystem
Average Annual Growth - 3 years 21.0% 28.8%
Growth - 12 months 16.0% 22.0%
Source: ABECS, CSU
91 105 128 157 18359
7182
112129
2005 2006 2007 2008 2009
Growth of the Cards Market
Private Label Credit
(million, end of May, source: ABECS)
9.9 10.114.2
17.721.6
2005 2006 2007 2008 2009
CSU Card Base Performance(million, end of June)
4
CardSystem – Operational Data
6 million new cards issued in the past 12 months
Card issues resumed growth in the quarter the turbulent economic
scenario
Flex Cards with increasing share of total card issues
Seasonal growth in card issue expected in the second half.
Source: CSU
1.4 1.7 1.6
1.3 1.4
2Q08 3Q08 4Q08 1Q09 2Q09
Issue of cards in CSU's base (million, end of june)
5
MarketSystem – Operational Data
Hiring of executives focused on prospecting new clients and
accelerating the company’s growth
Managed accounts 30% up year-on-year;
100% organic growth in the period.
Source: CSU
1.84 1.90 1.98 2.03 2.12 2.34 2.38 2.65 2.80
2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09
MarketSystem - Processed Accounts(million)
6
CSU.Contact / Credit&Risk
Launch of CSU.Contact and the important Alphaview
project
New unit commences operations with the erstwhile
Telesystem’s scale but with a new concept in
providing contact center services
Alphaview will improve the quality of life of
operators, increase service levels and reduce
operating costs.
776 748 619 435 282 305 344
2.546 2.218 3.476 3.445
3.314 3.288 3.238
4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09
PAs in operation at CSU.Contact and Credit&Risk
PA's Credit&Risk PA's CSU.Contact
3.322 3.593 3.596 3.880 4.095
2.996
3.582
7
15.3
18.7
2Q08 2Q09
16.5
21.7
2Q08 2Q09
50
62.3
2Q08 2Q09
Cardsystem / MarketSystem
24.5%
Organic growth of the client portfolio;
Increase in average revenue per card due to the increased share of credit cards
over private label cards;
Economies of scale in card processing operations;
Higher gross margin;
31.4% 22.4 %
(R$ million)(R$ million, %) (R$ million, %)
Gross Revenue Gross Profit and Gross Margin
EBTIDA and EBTIDA Margin
38.2%35.5%32.6%32.9%
8
0.5
1.8
2Q08 2Q09
1.5
3.7
2Q08 2Q09
46.946.3
2Q08 2Q09
140.5%244.6%
(R$ million)(R$ million, %) (R$ million, %)
Gross Revenue Gross Profit and Gross Margin
EBTIDA and EBTIDA Margin
Stability of revenue levels;
Reduction of communication costs due to lower ICMS tax at the Recife
site and a decrease in active Contact Center services;
Higher gross margin and EBITDA margin.
CSU.Contact / Credit&Risk
8.6%4.3%
1.2%3.5%
9
Performance of Financial Indicators
17.5 17.7 17.4
20.6 20.4
2Q08 3Q08 4Q08 1Q09 2Q09
EBITDA Margin (%)
96.9101.2
104.9 107.3 108.6
2Q08 3Q08 4Q08 1Q09 2Q09
Gross Revenue CSU (R$ million)
15.8 16.7 16.9
20.5 20.5
2Q08 3Q08 4Q08 1Q09 2Q09
EBITDA CSU (R$ million)
10
15.3 16.9 16.7 18.4 18.7
0.5 (0.2) 0.2 2.0 1.9
2Q08 3Q08 4Q08 1Q09 2Q09
CardSystem / MarketSystem CSU.Contact / Credit&Risk
5055.6
61.3 62.4 62.3
46.9 45.642.6 44.9 46.3
2Q08 3Q08 4Q08 1Q09 2Q09
CardSystem / MarketSystem CSU.Contact / Credit&Risk
Results - Units
(R$ million)
(R$ million)EBTIDA
GROSS REVENUE
11
18.1
25.4
2Q08 2Q09
96.9
108.6
2Q08 2Q09
72.175.1
2Q08 2Q09
12.1%
(R$ million)
(R$ million, %)
Gross Revenue
4.0%
(R$ million, %)
Cost of Services Rendered
CSU (Consolidated)
40.8%
Gross Profit and Gross Margin
Organic growth of units drove company growth by over 12%;
Economies of scale led to improved margins;
Strict cost control, tax incentives and new controls and policies for internal
spending.
25.3%20.0%
12
15.8
20.5
2Q08 2Q09
2.1
4.8
2Q08 2Q09
CSU (Consolidated)
14.8
16.8
2Q08 2Q09
13.6% 30.0%
(R$ million)(R$ million, %)
Operational Expenses EBTIDA and EBTIDA Margin
Expenses with the launch of new brand and staff increase led to higher
expenses in the quarter;
Higher revenue combined with appropriate management of costs and
expenses helped increase EBITDA by 30%;
CSU’s earnings per share was R$0.20 in 1H09.
125.3%
(R$ million, %)Net Result
20.4%17.5%
13
Debt and Capex
Debt:
Cash flow in the period enabled net debt
decrease from R$ 86.3 million to R$ 77.5
million;
Extension of average debt term. Sum of
R$23 million renegotiated at CDI rate +
3.4%;
CSU neither has loans indexed to the US
dollar nor derivatives contracts. Its debt
is in Brazilian reais and indexed to the
interbank (CDI) rate.
68.5 70.8 60.3 49.8
4,8 4.0 4.6
6.5
22.7 17.9 22.8
15.9
3Q08 4Q08 1Q09 2Q09
Debt Composition
Leasing Overdraft W. Capital
(R$ million, end of the period)
Debt - R$ million
2Q09 2Q08 1Q09
Short term Debt 46.4 47.4 58.0
Financing and Debt loan 36.5 29.7 47.4
Leasing 9.9 17.6 10.7
Long term debt 31.6 53.3 29.7
Financing and Debt loan 20.0 4.7 17.9
Leasing 11.6 8.6 11.8
Gross Debt 78.0 100.6 87.7
(-) Cash 0.5 2.7 1.5
Net Cash (Debt) 77.5 98.0 86.3
14
Debt and Capex
Debt:
The graph shows the impact of
the interbank rate (CDI)
variations in recent months on
the Company's financial
expenses;
Drop in the CDI rate, combined
with the debt reduction, helped
to reduce financial expenses;
Capex - R$ million
2Q09 2Q08 Chg. 1Q09 Chg.
Systems (SW and HW) 6.8 4.4 53.9% 12.4 -45.5%
Other 0.0 0.8 -97.6% 0.5 -96.3%
Capex 6.8 5.3 28.2% 12.9 -47.5%
CAPEX:
Recurring investment in the
development and customization of the
Super VisionPlus software;
Investments in the Alphaview project.
96 91 89 75
112 125 10272
117137
115
100
3Q08 4Q08 1Q09 2Q09
Impact of Monetary Policy on Cost of Debt
Total Gross Debt - Closing Financial Cost - CDI
CDI - Period Monthly Average
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Key Strategies for 2H09
Maintain investments to ensure growth of all of the Company’s
units;
Consolidate recent changes in CSU’s sales and relationship
areas;
Finish the new organizational structure of CSU.Contact and
Credit&Risk, migrating the workstations from the old site to
Alphaview;
Maintain cost and quality levels.
16
CSU CardSystem S/A
Questions and
AnswersDécio Burd
Telephone: (0xx55 11) 3030-3821
Email: [email protected]
Site: www.csu.com.br/ri