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 expected events, 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 differ significantly 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
3. 3Q10 Highlights
Gross Revenue of R$103.6 million. Reduction of 2.5% from 3Q09;
Gross Profit of R$28.3 million. Increase of 1.8% from 3Q09;
Net Income of R$7.2 million. Growth of 36.8% from the same period of 2009.
Main Indicators (R$ thousand) 3Q10 3Q09 ∆%
Gross Revenue 103,564 106,225 -2.5%
CSU CardSystem 59,948 64,863 -7.6%
CSU.Contact 43,616 41,362 5.4%
Net Revenue 95,992 98,529 -2.6%
Gross Income 28,311 27,824 1.8%
Gross Margin 29.5% 28.2% 1.3 p.p.
EBITDA 20,570 21,320 -3.5%
Net Income (Loss) 7,204 5,264 36.8%
3
4. Operational Data – CardSystem
Cards in CSU's Base
(million)
24.9
Banco
4.9 Nossa Caixa
23.2
19.0 20.0 CSU Card Base
15.6
11.3
3Q06 3Q07 3Q08 3Q09 3Q10
CSU's card base ends 3Q10 with 20.0 million units;
Increase of 8.8 p.p. in the share of Flex Cards in CSU's base in relation to September last year;
Issuance of over 0.9 million new cards during the quarter;
This reduction is due to the loss of Banco Nossa Caixa resulting from the consolidation of the banking
market
New contract signed with Tribanco in the card issuing segment will increase the participation of CSU in
the market;
CSU signed a processing agreement with Banco do Estado do Rio Grande do Sul (Banrisul), which
represents its first processing agreement in the acquirer segment. 4
5. Operational Data – CSU.Contact
Workstations in Operation
(thousand - Source: CSU)
4.002 3.972
3.934
3.494 3.268 3.248 3.468
1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10
Recovery of growth in the number of workstations, which increased by 6.8% from 2Q10;
CSU aims to resume growth in the number of workstations and consequently reduce idle
capacity at the Alphaview site.
5
6. Financial Information – CardSystem
Gross Revenue Cost of Services Rendered Gross Profit / Gross Margin
(R$ million) (R$ million) (R$ million, %)
-7.6% 35,1 -17.1% 5.7%
64,9
59,9 26,2
24,8
29,1
47.4%
41.4%
3Q09 3Q10 3Q09 3Q10
3Q09 3Q10
EBITDA / EBITDA Margin
(R$ million, %)
The lower Revenue and Cost of Services Rendered is due
7,9%
22,2
to the contraction in the client base mentioned earlier;
20,6
Gross Income and Gross Margin increased, reflecting the
greater reduction in costs vis-à-vis the reduction in
40.1% revenue;
34.3%
3Q09 3Q10
6
7. Financial Information – CSU.Contact
Gross Revenue Cost of Services Rendered Gross Profit / Gross Margin
(R$ million) (R$ million) (R$ million, %)
5.4% 38,6
-30.7%
8.4%
43,6 3,0
2,1
41,4
35,6
7.8%
5.2%
3Q09 3Q10 3Q09 3Q10 3Q09 3Q10
EBITDA / EBITDA Margin
(R$ million, %) Gross Revenue grew 5.4%, explained by the higher
volume of services rendered at passive call centers;
0,8 Costs increased 8.4%, reflecting the new hires made to
meet the demands of new contracts in the Contact Center;
1.9%
EBITDA decreased in relation to 3Q09, due to the higher
3Q09 3Q10
costs at the unit.
-4.0%
(1,6) 7
8. Consolidated Financial Information
Gross Profit/ Gross Margin General and Administrative Net Profit
(R$ million, %) Expenses (R$ million)
(R$ million)
1.8% 36.8%
1.8% 7,2
27,8 28,3
14,1 14,3 5.3
29,5%
28,2%
3Q09 3Q10 3Q09 3Q10 3Q09 3Q10
EBITDA / EBITDA Margin
(R$ million, %) Growth of 1.8% in Gross Income due to Cost reductions at
-3.5%
the Company;
21,3
20,6 Increase of 1.8% in General and Administrative Expenses
basically reflects the reorganization of the administrative
areas;
Net Profit grew 36.8%, due to the better management of
21.6% 21.4%
costs, lower financial expenses and the restructuring
expenses.
3Q09 3Q10
8
9. Net Debt vs. Current EBITDA
Net-debt-to-current-EBITDA* ratio of approximately 20%;
Reduction of 76.2% in Net Debit which closed the quarter at R$16.0 million;
Lower Net Debt explained by the Company's higher cash balance;
Long-term debt represents 55.9% of the gross amount, while short-term debt accounts
for 44.1%.
Debit – R$ thousand 3Q10 3Q09 ∆%
Short Term Debit 25.3 35.7 -29.1%
Financing and Debt Loan 14.4 24.2 -40.4%
Leasing 10.9 11.5 -5.3%
Long Term Debit 32.1 40.1 -19.9%
Financing and Debt Loan 16.5 25.6 -35.6%
Leasing 15.6 14.5 8.1%
Gross Debt 57.4 75.8 -24.2%
(-) Cash 41.4 8.6 383.8%
Net Cash (Debt) 16.0 67.2 -76.2%
9
*Current EBITDA being understood as a simple annualized version of 9M10 EBITDA
10. Capex
Reduction of 45.0% in capex versus the same quarter of 2009, mainly due to the
conclusion of investments in the Alphaview site;
Investment allocated mainly to systems (system customizations, development,
authorization, etc.) and hardware (computer purchases and updates, no-breaks, DPC,
peripherals and other equipment);
Capex 3Q10 3Q09 ∆%
Systems 4.9 4.6 6.5%
Hardware 1.3 0.3 390.3%
Alphaview 0.2 6.3 -96.5%
Other 0.1 0.6 -87.6%
Capex 6.5 11.7 -45.0%
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11. Main Strategies for 2010
Capture new clients in all CSU business units to leverage the company's growth;
Consolidate CSU's entry into the processing for Acquirers segment;
Resume growth at the CSU.Contact unit in order to dilute fixed costs at the Alphaview
site;
Continue investments in technology, especially in the Acquirer segment and to maintain
software up-to-date and develop new products and services.
CSU Stock vs. Index
(Base=100 in December 2008)
430
380
330
280
230
180
130
80
CSU Shares IBOVESPA
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