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
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
3. 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
4. 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
5. 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
6. 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
7. 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
8. 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
11. 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
12. 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$3.0 million in the quarter as restructuring expenses;
The new call center structure resulted in a significant expenses
reduction. The general and administrative expenses drop 9.7% in the
4Q08.
The 51.9% growth in EBITDA is due to the Company’s growth and the
higher margins.
12
14. Debt and Capex
Debt - R$ 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
15. 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
16. 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
17. 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
