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2 q09 results presentation 2 q09 results presentation Presentation Transcript

  • CSU CARDSYSTEM SA investidorescsu@csu.com.br 1
  • 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. 2
  • Cards Market and CardSystem Growth of the Cards Market (million, end of May, source: ABECS) Private Label + Credit Market CardSystem 129 112 82 Average Annual Growth - 3 years 21.0% 28.8% 71 59 157 183 91 105 128 Growth - 12 months 16.0% 22.0% 2005 2006 2007 2008 2009 Private Label Credit Base growth continues quicker than market growth CSU Card Base Performance Trend of replacement of private label (million, end of June) cards with hybrid cards Opportunities generated by government actions in the cards market (possible 21.6 14.2 17.7 dispersion of acquirers). 9.9 10.1 2005 2006 2007 2008 2009 Source: ABECS, CSU 3
  • CardSystem – Operational Data Issue of cards in CSU's base (million, end of june) 1.7 1.6 1.4 1.3 1.4 2Q08 3Q08 4Q08 1Q09 2Q09 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 4
  • MarketSystem – Operational Data MarketSystem - Processed Accounts (million) 2.65 2.80 2.34 2.38 1.90 1.98 2.03 2.12 1.84 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 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 5
  • 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. PAs in operation at CSU.Contact and Credit&Risk 3.582 4.095 3.880 3.322 3.596 3.593 2.996 3.476 3.445 2.546 2.218 3.314 3.288 3.238 776 748 619 435 282 305 344 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 PA's Credit&Risk PA's CSU.Contact 6
  • Cardsystem / MarketSystem Gross Revenue Gross Profit and EBTIDA and EBTIDA (R$ million) Gross Margin Margin (R$ million, %) (R$ million, %) 24.5% 31.4% 22.4 % 62.3 18.7 21.7 50 15.3 16.5 35.5% 38.2% 32.9% 32.6% 2Q08 2Q09 2Q08 2Q09 2Q08 2Q09 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; 7
  • CSU.Contact / Credit&Risk Gross Revenue Gross Profit and EBTIDA and EBTIDA (R$ million) Gross Margin Margin (R$ million, %) (R$ million, %) 140.5% 244.6% 46.9 3.7 1.8 46.3 1.5 8.6% 0.5 4.3% 3.5% 1.2% 2Q08 2Q09 2Q08 2Q09 2Q08 2Q09 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. 8
  • Performance of Financial Indicators Gross Revenue CSU (R$ million) 107.3 108.6 104.9 101.2 96.9 2Q08 3Q08 4Q08 1Q09 2Q09 EBITDA CSU (R$ million) 20.5 20.5 16.7 16.9 15.8 2Q08 3Q08 4Q08 1Q09 2Q09 EBITDA Margin (%) 20.6 20.4 17.5 17.7 17.4 2Q08 3Q08 4Q08 1Q09 2Q09 9
  • Results - Units GROSS REVENUE (R$ million) 61.3 62.4 62.3 55.6 50 46.9 45.6 44.9 46.3 42.6 2Q08 3Q08 4Q08 1Q09 2Q09 CardSystem / MarketSystem CSU.Contact / Credit&Risk EBTIDA (R$ million) 16.9 18.4 18.7 15.3 16.7 0.5 0.2 2.0 1.9 (0.2) 2Q08 3Q08 4Q08 1Q09 2Q09 CardSystem / MarketSystem CSU.Contact / Credit&Risk 10
  • CSU (Consolidated) Gross Revenue Cost of Services Gross Profit and (R$ million) Rendered Gross Margin (R$ million, %) (R$ million, %) 12.1% 4.0% 108.6 75.1 40.8% 72.1 96.9 25.4 18.1 25.3% 20.0% 2Q08 2Q09 2Q08 2Q09 2Q08 2Q09 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. 11
  • CSU (Consolidated) Operational Expenses EBTIDA and EBTIDA Net Result Margin (R$ million, %) (R$ million) (R$ million, %) 13.6% 30.0% 125.3% 16.8 20.5 4.8 14.8 15.8 20.4% 2.1 17.5% 2Q08 2Q09 2Q08 2Q09 2Q08 2Q09 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$0.20 in 1H09. 12
  • Debt and Capex Debt - R$ million Debt: 2Q09 2Q08 1Q09 Short term Debt 46.4 47.4 58.0 Cash flow in the period enabled net debt Financing and Debt loan 36.5 29.7 47.4 Leasing 9.9 17.6 10.7 decrease from R$ 86.3 million to R$ 77.5 Long term debt 31.6 53.3 29.7 million; Financing and Debt loan 20.0 4.7 17.9 Leasing 11.6 8.6 11.8 Extension of average debt term. Sum of Gross Debt 78.0 100.6 87.7 R$23 million renegotiated at CDI rate + (-) Cash 0.5 2.7 1.5 3.4%; Net Cash (Debt) 77.5 98.0 86.3 Debt Composition CSU neither has loans indexed to the US (R$ million, end of the period) dollar nor derivatives contracts. Its debt is in Brazilian reais and indexed to the 22.7 17.9 22.8 interbank (CDI) rate. 4,8 4.0 4.6 15.9 6.5 68.5 70.8 60.3 49.8 3Q08 4Q08 1Q09 2Q09 Leasing Overdraft W. Capital 13
  • Debt and Capex Debt: Impact of Monetary Policy on Cost of Debt The graph shows the impact of the interbank rate (CDI) 137 117 115 variations in recent months on 100 the Company's financial 112 125 102 72 expenses; 96 91 89 75 Drop in the CDI rate, combined 3Q08 4Q08 1Q09 2Q09 with the debt reduction, helped to reduce financial expenses; Total Gross Debt - Closing Financial Cost - CDI CDI - Period Monthly Average CAPEX: Capex - R$ million Recurring investment in the 2Q09 2Q08 Chg. 1Q09 Chg. Systems (SW and HW) 6.8 4.4 53.9% 12.4 -45.5% development and customization of the Other 0.0 0.8 -97.6% 0.5 -96.3% Super VisionPlus software; Capex 6.8 5.3 28.2% 12.9 -47.5% Investments in the Alphaview project. 14
  • 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. 15
  • CSU CardSystem S/A Questions and Answers Décio Burd Telephone: (0xx55 11) 3030-3821 Email: investidorescsu@csu.com.br Site: www.csu.com.br/ri 16