CEO Conference 2012

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CEO Conference 2012

  1. 1. Brazil 2012 BTG Pactual XIII CEO ConferenceInstitutional Presentation - CSU CardSystem S/A
  2. 2. CSU BUILDS ITS HISTORY BASED ONFOUR BUSINESS DIVISIONSProcessing and Business Processes Solution provider Management andManagement of Management for and integrator of solutions providerElectronic Means of merchant acquirers of actions and programs for Contact CenterPayment the international based on data-driven and BPO (Business credit card brands direct and digital ProcessThe largest and marketing for Outsourcing)most complete The 1st independent customer-engagementindependent vendor company to operate inin Latin America the merchant acquiring market 2
  3. 3. Electronic payment chain Money Money Request for Request for Brands Approval Approval Issuers Approval Approval(Banks and Retailers) Acquirers Capture of Electronic MoneyMoney Card / Billing Transactions Commercial Transactions Cardholders Merchants 3
  4. 4. 2011 Summary 2011 closes with major achievementsPreparation/pavement of groundwork for our future, on several fronts CSU has a broad technological arsenal 4
  5. 5. 2011 Summary• Resumed growth in CSU CardSystem • Two important and successful migrations (Tribanco and Sicredi) • Proven organizational vitality • Record volume of new cards in 2011: 8,8 million • Existing alliances with banks/issuers to facilitate growth in retail • Preparation of new technological frontiers • Direct paycheck-deductible credit card • Prepaid and Flex Prepaid cards • Contactless solution• CSU Acquirer goes operational • Banrisul deployment • The only tested platform that is independent and fully active in the market 5
  6. 6. 2011 Summary• CSU MarketSystem scope was expanded • Organizational restructuring • Development and improvement of product portfolio • New solution for customer acquisition • Launch of Fans Engagement solution • Opportunities in soccer clubs segment • Integration with credit cards • Usage of web tools as part of the new products • Online rewards catalog • Online sales platform• CSU Contact operation is improving • Reengineer of the business • Successful acquisition of new clients • Termination of unprofitable contracts and operations • Replacement by sustainable contracts 6
  7. 7. Macro guidelines for 2012 Diversify revenue streams Expand revenues in areas with higher profitability Launch new products, services and more efficient technologies Implement products with higher value added Enhance innovation capacity Ensure strict management of costs/expenses and investments 7
  8. 8. CSU in 2012: priorities • Focus at retail and middle market players • Expansion of partnerships with finance institutions • Mid-sized banks (public/private) • Increase number of standard loyalty programs (retailers) • Incorporation of web solutions applied to acquisition and relationships programs • Online rewards catalog integrated with social networks • Expansion of the fans engagement business • C 360º • Focus on middle market for traditional products • Application of technology to obtain more value-added • Evolution from “labor intensive" to "technology intensive" • Superior operational performance • Achievement of full capacity in Alphaview 8
  9. 9. New products and technologiesin means of payments PREPAID PREPAID FLEX CARD CARD CONTACTLESS CARD RELATIONSHIP PROGRAM INTEGRATED CARD FREIGHT CARD PAYCHECK DEDUCTIBLE SUB CREDIT CARD ACQUIRER IT OUTSOURCING 9
  10. 10. Detail of C360º: lower cost and higher agility to amplify results New concept for management of coordinated sales / collections campaigns Use of multiple and modern technologies, tools and media Integration of different channels of contact Results Analysis Strategic and Tactical Planning of the Continuous Feedback Campaigns Integrating of Driven Financial Planning per Communication Channels C 360º Campaign INTEGRATED SALES AND Customer Segmentation Management of Lead Statistics Modeling COLLECTIONS Generation Suppliers PLATFORM Database Management (per Data Enrichment customer / household) Quality Information Geolocation Campaign Management 10
  11. 11. Continuous investments and healthy capital structureInvestments(in R$ million) • CSU consistently invests in its 16,7 technological platform a minimum of 8,6 16,0 10,3 6/7% of net revenues. 23,9 19,9 16,2 15,9 • New investments geared at improving 2008 2009 2010 9M11 technology, solutions portfolio and CSU CardSystem CSUContact growing the number of contact centerNet Debt and Net Debt/EBITDA workstations.(in R$ million and ratio) 109,1 95,0 • 2011 investments were focused in 59,5 3,2x 55,5 47,1 increasing CSU s profitability 21,6 0,7x 23,8 1,5x 1,5x0,4x 0,3x 0,7x 2005 2006 2007 2008 2009 2010 9M11 11
  12. 12. Recovery in growth and profitabilityNet Revenues(in R$ million) 102.0 101.1 96.0 • Revenue expansion quarter after 93.5 quarter in 2011 91.0 • Gradual improvement in EBITDA 3Q10 4Q10 1Q11 2Q11 3Q11 generationProfitability Evolution(in R$ million) 106.0 27.3 114.6 25.7 73.7 78.9 22.2 78.1 16.3 46.3 45.5 15.9 64.4 14.4 17.0 33.1 39.3 33.9 4,2 6.7 4.4 5.9 2006 2007 2008 2009 2010 1Q11 2Q11 3Q11 -11.1 -6.3 Gross Profit EBITDA Net profit 12
  13. 13. Management of Costs and ExpensesTotal Costs SG&A Expenses(R$ million and % of net revenue) (R$ million and % of net revenue) 75.5 74.8 102.0 102.0 71.3 101.1 101.1 65.9 66.1 15.5 14.5 14.5 14.6 96.0 96.0 12.4 15.9% 93.5 93.5 91.0 91.0 15.9% 15.2% 15.1% 13.2% 14.4% 76.3% 74.6%15.1% 72.7% 15.9% 14.4% 73.3% 15.2% 15.1% 15.9% 14.4% 15.2% 13.2% 13.2% 68.7% 3Q10 4Q10 1Q11 2Q11 3Q11 3Q10 4Q10 1Q11 2Q11 3Q11 * Net Revenue Operating Expenses Net Revenue Operating Expenses EBITDA x EBITDA Margin (R$ thousand and % of net revenue) 20,582 17,304 16,341 15,941 14,400 21.4% 19.0% 15.8% 16.0% 15.4% 3Q10 4Q10 1Q11 2Q11 3Q11* 3Q11 SG&A disconsiders the one time effect of R$ 0.7 million referring to employees dismissals within a cost reduction program. 13
  14. 14. Strong operating performanceAverage Card base New Cards(in million of units) (in million of units) 24.3 25.3 22.6 20.1 20.9 20.6 8,805 16.4 17.0 4,728 4,010 3,931* 1,883 1,167 1,027 808** 2008 2009 2010 9M11 2010 1Q11 2Q11 3Q11 4Q11 2011 Registered Billed Cards * Migration Tribanco ** Migration SicrediGross Revenue Gross Income and Gross Margin(in R$ million) (in R$ million and % of net revenues) 27.2 59.9 25.0 24.6 54.5 55.6 55.3 23.2 49.8 21.1 49,2% 49,6% 45,7% 48,1% 45,6% 3Q10 4Q10 1Q11 2Q11 3Q11 3Q10 4Q10 1Q11 2Q11 3Q11 14
  15. 15. Positioned for profitable growth • Investments in the organizational structure andNumber of Workstations market repositioning accelerated growth in the(in units) number of workstations 4,796 4,283 4,225 4,207 3,494 3,757 • Focus at growth in premium contracts in order to gradually increase the profitability • HR specialized professionals, goal of being the best to attract, train and retain employees 2006 2007 2008 2009 2010 9M11Gross Revenue Gross Income and Gross Margin(in R$ million) (in R$ million and % of net revenues) 53,5 54,5 50,7 102.0 4.003 43,6 43,5 101.1 2.851 96.0 93.5 91.0 7,8% 1.107 1.081 7,0% 15.1% 15.9% 14.4% 15.2% 2,34% 2,16% 13.2% 3Q10 (117) 4Q10 1Q11 2Q11 3Q11 -0,3% 3Q10 4Q10 1Q11 2Q11 3Q11 15
  16. 16. CARD3 is traded at inexpensive levels as compared tothe market Net revenue EBITDA Gross Margin Net Margin Company name (US$ million- Margin EV/EBITDA P/E (%) (%) 12M) (%) 10756.3 69.0 20.1 -5.8 - - 2049.4 64.0 22.8 11.3 8.2 18.0 1776.7 - 26.6 11.7 9.2 20.2 Média do Segmento 4860.8 66.5 23.2 5.7 8.7 19.1 1533.3 13.6 8.7 1.5 7.6 32.8 Média do Segmento 1533.3 13.6 8.7 1.5 6.9 32.8 209.0 25.8 16.2 6.0 3.9 8.71. Current data: Last 12 months - Last balance sheet and income statement - reference date Feb 10, 20122. Methodology for calculating EBITDA standardized by Economática 16
  17. 17. High level of Corporate Governance 100% common shares and 42% free float Novo Mercado (100% tag-along rights; no poison pills) Majority of independent board members Fiscal Council 3 members, with 1 appointed by minority shareholders Solid investor relations culture Investment by private equity funds since 1997 Well structured internal controls Stock based compensation plan for executives Active Sustainability Arm (CSU Institute) 17
  18. 18. Consolidated Financial Information (in R$ million and % of 2006 2007 2008 2009 2010 3Q11 9M11 net revenues) Net Revenue 318.8 318.6 363.7 394.8 383.3 102.038 296.603 Gross Income 46.3 45.5 73.7 106 114.6 27.245 75.069 Gross Margin 14.5% 14.3% 20.3% 26.8% 29.9% 26.7% 25.31% 45.4 50.9 71.2 94.3 103.3 23.242 68.878 Gross Margin 34.1% 34.4% 36.0% 40.4% 46.3% 45.6% 46.5% 0.9 -5.4 2.4 11.6 11.3 4.003 6.191 Gross Margin 0.5% -3.2% 1.5% 7.2% 7.0% 7.8% 4.2% EBITDA 39.6 33.9 64.4 78.9 78.1 16.341 46.682 Net Income -16.5 -6.3 9.5 17.9 33.1 5.002 15.269 Net Debt 59.5 109.1 95.0 55.5 23.8 47.1 47.1 Capex 28.9 46.9 25.4 40.6 28.5 7.8 31.8 18
  19. 19. BROAD SOLUTION Internet Credit Analysis Customer Service Systems Data Processing Development & Maintenance Operations Cards Embossing Back Office Cards Issuance Accounting Welcome KitsInformation System Collection Fraud Prevention Services 24-hour- Bills Remittance Customer Care Follow-up Letters 19
  20. 20. FULL SERVICE SOLUTION Merchants Technical Supply Support ManagementInformation Mailing Electronic Transaction to Merchants Capture NetworkInternet Customer Back Office & Special Service Interchange Merchant s Call Fraud Center / Help Desk Prevention Accounting Business Financial Clearing Management 20
  21. 21. FLEXIBLE SOLUTIONRESOLUTION AND CONVERSIONCOLLECTIONSAmong the market leaders interms of results of thecollections operationTELESALESAmong the top 3 companiesfor telesales operationsCUSTOMER CAREUnderstanding the clientsbusiness in order topropose improvements inprocesses 21 21
  22. 22. REVAMPED SOLUTIONS Customer AcquisitionRecovery/Anti Attrition DATA Sales/Lead Generation INTELLIGENCE Relationship/Fidelity Customer Activation 22
  23. 23. Additional Information Mônica Hojaij Carvalho Molina Carlos Montenegro Thatiana Zago Investor Relations Tel: +55 (11) 2106-3821 E-mail: ri@csu.com.br Web Site: www.csu.com.br/ri This material is the property of CSU CardSystem S.A., and any partial or total reproduction without the Company’s written approval is prohibited. All rights reserved. Opinions expressed in this document are subject to change without prior notice.

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