Business EnvironmentBusiness Environment
•• Card base expansion in 2006Card base expansion in 2006
CAGR 23%
•• Growth in consumer creditGrowth in consumer credit
•• CompetitionCompetition
Diferentiation through independency Diferentiation through independency
•• Caixa ProjectCaixa Project
Implementation according to scheduleImplementation according to schedulePersonal Credit Finance
75.6
49.4
45
55
65
75
85
D04 J05 N05 M06
R$ billions
Cards (Millions)
Feb
SeasonalitySeasonality
Gross Revenue
9098
8783
6876
6457
4956
48 4640
1Q06 4Q05 3Q052Q05 1Q054Q04 3Q04 2Q041Q04 4Q033Q03 2Q03 1Q03
R$ Million
1Q06 Highlights1Q06 Highlights
Gross Revenue x EBITDA
68
90
18
8
1Q05 1Q06
R$ Million
Gross Revenue EBITDA
Operating Profit
x Net Profit
755
2.440
371885
1Q05 1Q06
R$000
Operating Profit Net Profit
Gross RevenueGross Revenue
Gross Revenue Breakdown
24,978 36,031
35,191
35,883
7,547
10,369
7,668
1Q05 1Q06
R$000
MarketSystem
Credit & Risk
TeleSystem
CardSystem
67,716
89,951
6855
90
70
1T05 1T06Gross Sales Cost of services
Production CostsProduction Costs
Revenue x Cost
R$ Million
33%
28%
Var. %
CardSystem -2,40%
TeleSystem 22,30%
Credit&Risk 43,90%
MarketSystem
Total 28,00%
Cost of services
Business Units
Gross ProfitGross Profit
8.913.6
0.0
5.0
10.0
15.0
1Q05 1Q06
Gross Profit (R$ million)
52.6%
Gross Profit 1Q06
CardSystem 16.9
TeleSystem (3.8)
Credit&Risk (1.3)
MarketSystem 1.8
Total 13.6
Business Units
Main factors
• Increased share of CardSystem and MarketSystem business units;
• Strong productivity gains in CardSystem;
• Re-structuring in the service base of TeleSystem and Credit&Risk, causing negative result
Operating MarginOperating Margin
-3.2%-1.9%
-10.1%-10.8%
16.2%13.9%
1.2%2.9%
05 06 05 06 05 06 05 06
Gross Profit
Operating Expenses
Financial Expenses
Operating Profit
EBITDAEBITDA
EBITDA
18.3
8.521.9%
13.3%
-
5
10
15
20
1Q05 1Q06
R$ Million
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
EBITDA EBITDA Margin
116.2%
CSU Main Strategies for 2006CSU Main Strategies for 2006
• Expansion of CardSystem and MarketSystem units market share
• Implementation of Caixa Project
• Capturing Clients from Competition
• Focus on transforming private-label into branded cards
• Boosting the profits of TeleSystem and Credit&Risk units• Various actions aiming at improving earnings in both units,
laying the foundation for a period of more accentuated growth
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