Reunião com investidores ing
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Reunião com investidores ing Presentation Transcript

  • 1. Meeting with Investors April, 2007 1
  • 2. DisclaimerThis presentation may include forward-looking statements of future events or results according to theregulations of the Brazilian and International securities and exchange commissions. These statements arebased on certain assumptions and analyses by the Company that reflect its experience, the economicenvironment, future market conditions and expected events by the company, many of which are beyondthe control of the Company. Important factors that may lead to significant differences between the actualresults and the statements of expectations about future events or results include the company’s businessstrategy, Brazilian and International economic conditions, technology, financial strategy, financial marketconditions, uncertainty regarding the results of its future operations, plans, objectives, expectations andintentions, among others. Considering these factors, the actual results of the company may be significantlydifferent from those shown 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 arecommendation to potential investors and no investment decision is to be based on the veracity, currentevents or completeness of this information or these opinions. No advisors to the company or parties relatedto them or their representatives should have any responsibility for any losses that may result from the useor contents of this presentation. 2
  • 3. Company Overview Company Profile 3
  • 4. Leading Technology Services Provider in Brazil The largest independent administrator of 12.1 16.2* million cards credit cards 56% of market share One of the largest independent call center 3,582 Workstations services provider in Brazil Leading collection services provider 701 Collection Workstation Leading loyalty programs management 3.1 million managed accounts Gross Revenues in 2005** Gross Revenues in 2006 R$ 336 mm R$ 354 mm TeleSystem TeleSystem 49% 45% CardSystem Credit&Risk 36% CardSystem Credit&Risk 35% 15% 11% MarketSystem MarketSystem 1% 8%* Data of Dec/06. Includes the cards from Caixa Econômica Federal Contract** MarketSystem - 2005 shows figures for December only. 4
  • 5. CSU is the Backbone of the Credit CardBusiness of its Clients CARDHOLDER Card Issuance Billing Customer Support/ ACQUIRER – NETWORK Call Center ISSUERS Credit analysis and Authorization processing Collection Processing Operational Control Other COMMERCIAL CREDIT CARD BRAND ESTABLISHMENT Purchase Data exchange Withdrawal Fraud Prevention CSU Provides its Clients a Fully Outsourced Solution to Card Administration 5
  • 6. Our Excellence in Credit Card AdministrationFostered Other Leading Business UnitsFull Service Credit System Customer Electronic Card and Fraud Interchange Transaction Operational Loyalty development/ Support Issuance Collection Prevention Control ProgramsImplementation Process analysis New Business Opportunities Diversification brought us: New business opportunities/ cross-selling Lower costs from scale gains High switching cost 6
  • 7. Company Overview Our Businesses 7
  • 8. Attractive Industry Fundamentals toCredit Cards… Brazil is the 3rd largest card issuer Brazil is the 3rd largest card issuer Most Used Credit Instruments in Brazil Most Used Credit Instruments in Brazil C.C Interest Free Purchases 59% UK 140 Brazil 192 Payment Book 37% China 206 C.C. Interest Bearing USA 796 Purchases 21% C.C. Minimum Payment Invoice 16% Million cards, in 2005 C.C. Payment in Equal Number of Credit Cards -- Brazil Number of Credit Cards Brazil Installments 15%Million 78.0 Overdraft Facility 15% 68.0 52.5 Personal Loans 8% 47.5 % 41.5 19 35.3 GR CA 28.0 Real State Loans 3% 23.6 Payroll Deductible 3% Credit 1999 2000 2001 2002 2003 2004 2005 2006 Source: Abecs 8
  • 9. … And the Call Center Industry Showing Consistent Growth Potential Historical Growth – Brazilian Call Historical Growth – Brazilian Call Potential Growth – Brazilian Call Potential Growth – Brazilian Call Center Services Revenue* Center Services Revenue* Center Services Revenue** Center Services Revenue** Annual Growth % Annual Growth % % 13 GR CA % 30 GR CA 12% 13% 15% 21% 60% 20% 25% 2002 2003 2004 2005 2006 2007 2008 2009 2010 +15%* Source: ABRAREC ** Source: IDC 9
  • 10. Leading Competitive Position Among Independent Players Market Share: Market Share: Leading Independent Call Center Operator Leading Independent Call Center Operator Credit Card Processing Segment * Credit Card Processing Segment * In Outsourcing 5 largest independent players TMS 12% Fidelity 17% Teleperformance Softway 36% 14% Telefutura 17% Orbitall 27% TeleSystem and 56% Credit&Risk 21%* Notes:- CSU’s Market Share considers credit cards from Caixa- Orbitall: 100% owned by Itaú 2006 data- Fidelity (51%): 49% owned by ABN Real and Bradesco Sources: Cardnews and IDC 10
  • 11. CSU – Strong and Diversified Clients Portfolio 11
  • 12. Caixa Econômica Federal ProjectImplementation expected for second quarter of 2007;The largest contract in industry(~ 4.1 million of active credit cards);Strong growth potential;Contract establishes a two-year initial service rendering period 12
  • 13. Financial Information Operational and Financial Information 13
  • 14. Operational Performance by Business Unit TeleSystem and Credit&Risk – Total TeleSystem and Credit&Risk – Total CardSystem -- Cards CardSystem Cards Workstations Workstations In million End of the period 23.1% 4,8% 4,423 -3.2% 4,8% 4,283 12.1 9.8 3.4 3.0 8.7 6.8 2005 2006 2005 2006 Credit Card Private Label and other MarketSystem – Loyalty Accounts MarketSystem – Loyalty Accounts Average of the period – in million 25.4% 4,8% 3.1 2.4 2005 (Pro Forma) 2006 14
  • 15. Consolidated Financial Performance Net Revenues Net Revenues Gross Profit Gross Profit R$ MM CAGR 28% R$ MM CAGR 6% 313.6 329.0 63.7 55.3 229.4 42.3 177.9 37.0 40.1 134.4 30.6 96.7 2001 2002 2003 2004 2005 2006 2001 2002 2003 2004 2005 2006 EBITDA EBITDA Net Profit (Loss) Net Profit (Loss) R$ MM R$ MM CAGR 24% 16.1 12.9 60.3 10.2 6.6 6.5 46.3 50.2 34.2 22.9 17.0 -11.8 2001 2002 2003 2004 2005 2006* 2001 2002 2003 2004 2005 2006 * Adjusted by the IPO’s expenses 15
  • 16. Business Units’ Gross Revenue Evolution CardSystem CardSystem TeleSystem and Credit&Risk TeleSystem and Credit&RiskR$MM R$MM CAGR 12% CAGR 26% 126.5 215.1 118.0 197.6 91.2 97.6 148.4 98.7 2003 2004 2005 2006 2003 2004 2005 2006 MarketSystem MarketSystem R$ MM CAGR 27% 30.2 22.6 23.7 14.9 2003* 2004* 2005* 2006* Pro-forma 16
  • 17. Financial Performance of the Business Units CardSystem CardSystem TeleSystem and Credit&Risk TeleSystem and Credit&Risk R$ MM R$ MM 109.6115.3 201.5 184.8 43.2% 41.0% 40.4% 36.7% 7.9% 7.4% 47.4 42.3 44.9 46.6 16.0 (6.1%) 15.0 (1.5%) (11.3) (2.8) Net Revenue Gross Profit EBITDA* Net Revenue Gross Profit EBITDA* MarketSystem** MarketSystem** R$ MM ** MarketSystem 2005 pro-forma 28.8 22.9 36.4% 31.5% 22.3% 8.4 9.1 19.7% 6.4 4.5 Net Revenue Gross Profit EBITDA** Adjusted by the IPO’s expenses 2005 2006 17
  • 18. Cash and Debt Position Cash at the end of the period Cash at the end of the period Debt Debt R$ MM R$ MM 37.2 0.4x 0.2x 103.2 92.1 20.5 1.4 0.7 2003 2004 2005 2006 2005 2006 Gross Debt* Net Debt / EBITDA * Bank debt + leasing 18
  • 19. Capex and Dividends Capital Expenditures Capital Expenditures Dividend Payout* Dividend Payout*R$ MM R$ MM 43.6 11.8 11.4 28.9 5.6 15.6 3.2 4.0 9.8 12.5 10.9 2001 2002 2003 2004 2005 2006 2001 2002 2003 2004 2005 % Net Profit 85% 49% 116% 31% 71% 2006 Capex Breakdown * Includes Interest on Shareholder´s Equity Hardware e Software: R$ 15.0 MM CAIXA Project: R$ 13.0 MM Other: R$ 0.9 MM 19
  • 20. Financial Information Value Creation Agenda 20
  • 21. Strategy and Growth Opportunities Electronic Payment Call Center through Mobile Offshore Entrance in New Markets Organic Cross-Selling Market Growth Opportunities Acquiring New Clients & Outsourcing 21
  • 22. Main Strategic Actions - 2007 CSU Corporate • Complete the commercial achievements and strategies of 2005 and 2006 • Expansion of volumes – growth of the businesses already conquered • Enlargement of profitability by cost management and scale gains • Entrance in new business segments and new markets CardSystem • Implementation of Caixa Project • Focus on Co-Branded Private Label Cards • Leverage in business based on our competitive and strategic advantages • Several projects under development with important prospects TeleSystem and Credit&Risk • New Management in charge of the Units • Strengthening of structure, commercial processes and financial management • Strong emphasis on commercial efforts MarketSystem • Focus on gaining clients of the financial, telecommunication and retail industries 22
  • 23. High Level of Corporate Governance 100% common shares Bovespa´s Novo Mercado (100% Tag Along) Free float of 39% voting shares Active Board of Directors, with diversified and complementary experiences and presence in the business management: Independent members: Mailson F. da Nóbrega, Rubens Barbosa and Mário Alberto de Almeida Solid relationship track record with minority shareholders Private Equity funds investment in 1997 Controlling Committee headed by a minority shareholder 23
  • 24. High Level of Corporate Governance and HumanResources Focus Code of Ethics / Disclosure and Stock Trading Policies Dedicated Investor Relations Team Development of a Stock Option program for the executives Alignment of interests between administration and shareholders Human Resources Emphasis Results Oriented Management Special Recruiting Actions: Trainee Program and New Talents Program Management Compensation aiming at business growth 24
  • 25. Social Responsibility 9,299 employees (Dec/06) CSU Institute CSU University Incentive to social and educative programs along withAbrinq and other Institutions Encouragement to voluntary work First Trainee Program launched in 2006/2007 25
  • 26. Conclusion: Attractive Investment Opportunity Premium Diverse Client Market Leadership Portfolio with Excellent Relationship Track Record Attractive Industry Growth Strong Growth Prospects Fundamentals Superior Corporate Impressive History Growth Governance 26
  • 27. www.csu.com.br 27