Ubs pactual 2007 brazil ceo conference ing
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Ubs pactual 2007 brazil ceo conference ing Ubs pactual 2007 brazil ceo conference ing Presentation Transcript

  • UBS Pactual 2007 Brazil CEO Conference March 5, 2007 1
  • 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
  • Leading Technology Services Provider In Brazil 11,3 15.4* million cards The largest independent administrator of 117 million processed transactions credit cards 44% of market share Leading independent call center in Brazil 2,837 Workstations Leading collection services provider 594 Collection Workstation Leading loyalty programs 4.0 million managed accounts management Revenue in 2005** Gross Profit in 2005** R$ 357 mm R$ 71 mm TeleSystem CardSystem 45% 67% TeleSystem 18% CardSystem Credit&Risk Credit&Risk 33% 15% 4% MarketSystem MarketSystem 7% 11%* Data of Sep./06. Includes the cards from Caixa Econômica Federal Contract 3** Reflects MarketSystems Pro-forma results
  • Our Excellence In Credit Card Administration Fostered 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 4
  • 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 5
  • … 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 6
  • 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 EDS 12% 9% Fidelity 20% Softway Teleperformance 36% 14% Telefutura Orbitall 17% 27% TeleSystem and 44% Credit&Risk 21%* Notes:- CSU’s Market Share considers credit cards from Caixa- Orbitall: 100% owned by Itaú 2005 data- Fidelity (51%): 49% owned by ABN Real and Bradesco 7 Sources: Cardnews and IDC
  • CSU – Strong and Diversified Clients Portfolio 8
  • Caixa Econômica Federal ProjectThe largest contract in industry~ 4,1 million active credit cards Strong growth potentialBeginning of monthly revenue starting on May/07Initial period of rendering services does not change (2 years) 9
  • Strong Growth Track RecordCards base* Workstations* Billing contacts**(‘000) (‘000) CAGR 17% CAGR 83% CAGR 28% 10,059 3,308 41,627 11% 8,077 2,638 7,387 2,290 2,096 25,347 2,149 23,162 19% 7,421 991 5,238 5,787 2003 2004 2005 2003 2004 2005 2003 2004 2005 Credit Cards Private Label * Annual average * Monthly average ** Active and receptive 10
  • Consolidated Financial Performance Net Revenues Net Revenues Gross Profit Gross Profit R$ MM 313.6 R$ MM 63.7 CAGR 20% CAGR 34% 55.3 229.4 42.3 177.9 37.0 30.6 134.4 96.7 2001 2002 2003 2004 2005 2001 2002 2003 2004 2005 EBITDA EBITDA Net Profit Net Profit R$ MM R$ MM 16.1 CAGR 25% CAGR 37% 60.3 12.9 46.3 10.2 34.2 6.6 6.5 22.9 17.0 2001 2002 2003 2004 2005 2001 2002 2003 2004 2005 11
  • Growth Opportunities Electronic Payment Call Center through Mobile Offshore Entrance in New Markets Organic Cross-Selling Market Growth Opportunities Acquiring New Clients & Outsourcing 12
  • 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 – April/07 • Focus on Co-Branded Private Label Cards • Leverage in business based on our competitive and strategic advantages 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 13
  • 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, Mário Alberto de Almeida and Francisco Mazzucca, who will be indicated Solid relationship track record with minority shareholders Private Equity funds investment in 1997 Controlling Committee headed by a minority shareholder 14
  • 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 15
  • Conclusion: Attractive Investment Opportunity Attractive Industry Growth Market Leadership Fundamentals Impressive History Growth Strong Growth Prospects In All Financial Metrics Premium Diverse Client Superior Corporate Portfolio with Excellent Governance Relationship Track Record 16
  • www.csu.com.br 17