2. BUSINESS ENVIRONMENT
August 16, 2006
• Card Base Expansion in 2006
• CAIXA Project
21% - Base Migration (Oct./06)
CAGR
Cards - Million - Implementation of the NOSSA CAIXA
358 Multi-purpose Card
308
244
• Growth in Consumer Credit
Personal Credit Finance
177.1
185
158.1
165
2004 2005 2006 145 122.6
R$ billion
Jun 125 98.5
105 98.1
85
• Market 65
• Losango Visa Card 45
• Credit Card Light Santander 2002 2003 2004 2005 2006*
* Balance in December, except Jun. 2006
2 this presentation is subject to copyright and may not be copied or used without CSU’s express consent
3. SEASONALITY
August 16, 2006
Gross Revenue (R$ million)
98
87 90 90
83
76
68
64
56 57
48 49
46
40
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q06
2003 2004 2005
3 this presentation is subject to copyright and may not be copied or used without CSU’s express consent
4. HIGHLIGHTS
August 16, 2006
Gross Revenue x EBITDA (R$ million)
90
83
14.1
13.8*
Operating Income x Net Income
2Q05 2Q06 6.2
Gross Revenue 3.7 0,6*
EBITDA 0.3*
2Q05 2Q06
Operating Income (R$ million)
Net Income (R$ million)
* Excludig IPO expenses
4 this presentation is subject to copyright and may not be copied or used without CSU’s express consent
5. GROSS REVENUE
August 16, 2006
Gross Revenue Breakdown (R$ million)
83 90 151 180
100%
13.5 8.7 16.4
10.2 21.1 20.5
80%
60% 43.0 42.5 78.4
78.2
40%
20% 26.6 28.8 51.6 64.8
0%
2Q05 2Q06 1H05 1H06
CardSystem teleSystem Credit & Risk MarketSystem
5 this presentation is subject to copyright and may not be copied or used without CSU’s express consent
6. COST OF SERVICES
August 16, 2006
Revenue x Cost (R$ million)
8.5%
13.9%
90 Cost of Services Chg. %
Business Units
83 72 13.7%
CardSystem
63 teleSystem 7.6%
Credit&Risk -16.6%
MarketSystem
Total 13.9%
2Q05 2Q06
Gross Revenue Cost of Services
6 this presentation is subject to copyright and may not be copied or used without CSU’s express consent
7. GROSS INCOME
Gross Income (R$ million)
August 16, 2006
8.9%
25.3
18.2%
23.2
14.3
11.7
2Q05 2Q06 1H05 1H06
Main Factors Gross Income 2Q06
• Restructuring in TeleSystem and Credit&Risk Business Units R$ million
Services Rendered CardSystem 9.2
•Implementation of new services teleSystem 1.1
•Trend Margins Profitability Recoup at Credit&Risk (0.8)
Telesystem and Credi&rRisk Units 2.2
MarketSystem
Total 11.7
7 this presentation is subject to copyright and may not be copied or used without CSU’s express consent
8. OPERATING MARGIN
August 16, 2006
Gross Margin
18.5%
14.0%
Adjusted Operating Margin
8.0%
Net Financial Deferred 0.7%
G&A Expenses Expenses Amortization
-0.8% 0% -1.1%
-1.4%
-9.1%
-11.5%
2Q05 2Q06
8 this presentation is subject to copyright and may not be copied or used without CSU’s express consent
9. EBITDA
August 16, 2006
40 42.4% 23.0%
32.1*
-2.0%
30 22.6 21.0%
14.1
13.8*
20 19.2%* 19.0%
16.0%
18.2%
10 16.5%* 17.0%
0 15.0%
2Q05 2Q06 1H05 1H06
EBITDA EBITDA Margin EBITDA Trend
* Excluding IPO expenses
9 this presentation is subject to copyright and may not be copied or used without CSU’s express consent
10. CSU MAIN STRATEGIES (2006)
August 16, 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
10 this presentation is subject to copyright and may not be copied or used without CSU’s express consent
