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4 q08 results presentation
 

4 q08 results presentation

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    4 q08 results presentation 4 q08 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
    • Card Market and the CardSystem Growth of the Cards Market (ABECS) Evolution of Card Base - CardSystem End of December - Million End of December - Million 124 104 82 20.1 53 68 16.6 147 173 12.1 86 97 118 9.8 6.8 2004 2005 2006 2007 2008 2004 2005 2006 2007 2008 Credit Private Label  The credit card market growth rate was higher at the second semester, although the challenging scenario;  CardSystem’s Private Label and Credit Private Label + Credit Market CardSystem card bases consistently outperformed 3 Year Average Growth 21.6% 30.7% market growth; 2008 Growth (12 months) 18.3% 20.7%  CSU’s Growth last year was 20.7%, compared to the market’s 18.3%. In the other 3 years, Average Growth was Source: Abecs, CSU 30.7% and 21.6%, respectively. 3
    • CardSystem – Operational Data Issue of Cards in CSU's Base Issue of Cards in CSU's Base (quarterly issue - million) (yearly issue - million) 1.7 1.6 5.8 1.1 1.4 4.5 5.2 1.0 4.2 2.8 4Q07 1Q08 2Q08 3Q08 4Q08 2004 2005 2006 2007 2008 Source: CSU  A total of 5.8 million cards were issued in the past 12 months;  Growth trend in card issues number every year;  New agreements performance showing the positive scenario for co-branded cards in 2008. 4
    • MarketSystem – Operational Data MarketSystem – Managed Accounts (Million) 2.3 2.4 2.0 2.1 1.9 2.0 1.8 1.8 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4T08 Source: CSU  High-growth market;  Consistent growth in the number of managed accounts;  Recently launched loyalty programs continued to grow above the portfolio average. 5
    • TeleSystem / Credit&Risk  Decree 6,523 made companies contracting call center services expand the scope of their agreements, consequently increasing the demand for these services;  TeleSystem was one of the first to offer clients all the adjustments required by the decree;  The reduction in the number of workstations and the maintenance of revenue show higher profitability per workstation. PAs in operation at TeleSystem and Credit&Risk 3,880 3,930 3,872 3,322 3,375 4,095 3,273 3,193 3,114 2,546 2,612 3,476 2218 3,445 2,991 737 758 776 763 619 435 282 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 PAs Credit&Risk PAs TeleSystem 6
    • CardSystem / MarketSystem Gross Revenue (R$ Thousand) Gross Profit (R$ thousand) and EBITDA (R$ thousand) and Gross Margin (%) EBITDA Margin(%) 40.3% 41.6% 24.7% 20.6 61.3 16.7 14.5 13.4 36.5% 43.7 33.0% 35,8% 29.6% CSU CSU 1º Tri/08 4Q07 4Q08 4Q07 4Q/08 4Q07 4Q08  Gross revenue up by 40.3% at CardSystem / MarketSystem between 4Q07 and 4Q08, driven by the higher card volumes and managed accounts in CSU’s base;  Improved gross profit, gross margin and EBITDA due to economics of scale gains;  The fall in the EBITDA margin resulted from a tax credit in 4Q07. Excluding this credit, EBITDA margin would have increased to 29,6% in 4Q08 from 28.9% in 4Q07. 7
    • TeleSystem / Credit&Risk Gross Revenue (R$ Thousand) Gross Profit (R$ million) EBITDA (R$ million) 2.6% 43.6 42.5 1.0 0.2 CSU (1.7) (2,3) 4Q07 4Q08 4Q07 4Q08 4Q07 4Q08  The units had significant improvement on its profitability, driven by the new operational structure on the call center;  In 2009, the company will maintain strict management at TeleSystem and Credit&Risk in order to optimize their operations and, consequently, improve the level of services and profitability. 8
    • Performance of Financial Indicators Gross Revenue (million) 101.16 104.88 96.90 86.20 88.40 4Q07 1Q08 2Q08 3Q08 4Q08 EBTIDA CSU (R$ million) 16.70 16.90 15.80 15.00 11.10 4Q07 1Q08 2Q08 3Q08 4Q08 EBTIDA Margin (%) 18.27% 17.70% 17.52% 17.40% 13.90% 4Q07 1Q08 2Q08 3Q08 4Q08 9
    • Results - Units Gross Revenue (R$ million) 61.30 55.59 50.01 47.03 42.47 46.85 45.57 42.47 41.23 42.57 4Q07 1Q08 2Q08 3Q08 4Q08 CardSystem / MarketSystem TeleSystem / CreditSystem EBTIDA (R$ million) 15.42 15.26 16.91 16.72 13.41 (2.29) (0.42) 0.54 (0.21) 0.18 4Q07 1Q08 2Q08 3Q08 4Q08 CardSystem / MarketSystem TeleSystem / CreditSystem 10
    • CSU (Consolidated) Gross Revenue (R$ million) Cost of Services Rendered (R$ million) 21.69% 12.33% 75.6 104.9 86.2 67.3 CSU CSU 4Q07 4Q08 4Q07 4Q08 Gross Profit and Gross Margin (R$ million)  CardSystem and MarketSystem’s growth led the company to grow almost 22%; 69.0%  Cards issuing rate and new call center contracts contributed to the revenue 21.6 increase; 22.3% 12.8  Gross margin increase was driven by the 16.0% economics of scale gains at CardSystem CSU and strict cost management at 4Q07 4Q08 TeleSystem. 11
    • CSU (Consolidated) General and Administrative Expenses EBITDA (R$ million) and EBITDA Margin (%) Net Result (R$ million) (R$ million) 51.9% - 9.7% 16.0% 16.9 12.0 10.8 11.3 4,70 . 17.4% 3.95 , 13.9% 2º Tri/08 4Q07 4Q08 4Q07 Tri/08 1º 4Q08 4Q07 4Q08  Expenses with new contact center structure accounted approximately R$3.0 million in the quarter as restructuring expenses;  The new call center structure resulted in a significant expenses reduction. The general and administrative expenses drop 9.7% in the 4Q08.  The 51.9% growth in EBITDA is due to the Company’s growth and the higher margins. 12
    • CSU (consolidated) 2008 Gross Profit (R$ million) Gross Revenue (R$ million) 14.1% 61.9% 391.2 342.9 1 2007 2008 EBITDA (R$ million) and EBTIDA Margin (%) Net Result (R$ million) 89.8% n.a. 17.7% 10.7% 13
    • Debt and Capex Debt - R$ million 4Q08 4Q07 3Q08 Debt: Short-term 62.5 57.9 49.7 Loans and Financing 49.7 34.3 35.1  CSU reduced its net debt from Leasing 12.8 23.6 14.6 R$ 95.2 million to R$ 94.9 million Long-term 34.0 53.6 46.6 in 3 months; Loans and Financing 25,4 41.8 38.4 Leasing 8.6 11,8 8,1  The company tried to reduce Gross Debt 96.5 111.5 96.2 financial expenses by avoiding (-) Cash and Cash Equivalents 1.6 2.4 1.1 rolling over its loans and leasing; Net Det (Cash) 94.9 109.1 95.2  The company’s debt profile remains comfortable;  Cash generation and excellent working capital management are the key factors to reducing debt.  CSU neither has loans indexed to the dollar nor derivatives contracts. The company’s debt is in reais and indexed to the interbank (CDI) rate. 14
    • Debt and Capex Impact of Monetary Policy on Cost of Debt Debt: 114 114 134  The graph shows the impact of 96 98 108 107 120 the interbank rate (CDI) 103 variations in recent months on 90 86 85 the Company's financial expenses. 1Q08 2Q08 3Q08 4Q08 - Total Gross Debt Closing FINANCIAL COST - CDI - CDI (Monthly average in the period) CAPEX:  Investments focused on CardSystem and MarketSystem; Capex - R$ milion  Development and customization of 4Q08 4Q07 Chg 3Q08 Chg. Super Vision Plus; Systems (SW and HW) 5.4 5.5 -2.6% 6.6 -19.2% Caixa Project 0.1 1.5 -96.1% 0.1 -43.3%  Restructuring of Alphaville and Others 0.7 0.4 78.0% 1.7 -58.4% Recife sites to absorb call center Capex 6.1 7.4 -17.2% 8.4 -27.4% operations from the Santo André and Curitiba sites. 15
    • Social Responsibility and Sustainability CSU carries out the following Socio-Environmental Responsibility projects :  CSU Institute Provides job-oriented training.  Centro Crescer Sorrindo (Grow-up Smiling Center) Crèche in Belo Horizonte for children from low-income communities  Environmental Responsibility Selective waste collection for the recycling project, whose sale proceeds are donated to the CSU institute. 16
    • Key Strategies for 2009  Maintain investments to ensure growth of all of the Company’s units;  Finalize the new organizational structure of TeleSystem and Credit&Risk;  Increase profitability and margins of CSU as a whole. 17
    • CSU CardSystem S/A  Questions and Answers Décio Burd Phone: (0xx11) 3030-3821 Email: investidorescsu@csu.com.br Site: www.csu.com.br/ri 18