Presentation of 3 q06 results

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Presentation of 3 q06 results

  1. 1. Presentation of 3Q06 Results November 16, 2006 This presentation is subject to copyright and may not be copied or used without CSU’s express consent
  2. 2. CREDIT CARD MARKETS November 16, 2006 Cards (million) Means of Payment (%) (sep06/ CC Interest-free purchases 59% sep05) 368 Retailer Financing 37% 324 13.6% 264 75 CC interest-bearing purchases 21% 64 17.2% CC minimum payment invoice 16% 51 109 94 CC payment in equal installments 15% 82 16.0% 166 185 Banking overdraft facility 15% 131 11.4% Financial Cos. personal loans 8% Sep 04 Sep 05 Sep 06 Housing Loans 3% Debt Store Credit Payroll deductible credit 3% Source: ABECS (Brazilian Association of Credit Card and Related Services Company) 0% 10% 20% 30% 40% 50% 60% Source: O Globo, 11/08/06 Edition RELEVANT ASPECTS: Credit Card Markets • 80 MM expected until year end • Private Labels: migration to branded cards • R$ 20,1 bn revenue in 9M06 (22% higher than 9M05) • New technologies, such as smart card, to support card increase 2 This presentation is subject to copyright and may not be copied or used without CSU’s express consent
  3. 3. CARDSYSTEM November 16, 2006 Cards (million) • Carrefour-Visa – new customer 11.4 9.8 10.4 10.1 • Panamericano – new client co-branded card 4.0 Cards million 3.0 3.3 3.6 • Caixa Project – base migration expected to Feb/07 6.8 7.1 6.5 7.4 • Nossa Caixa – growth potential (4.9 million customers) • Losango – 2.7 million private label card 4Q05 1Q06 2Q06 3Q06 • HSBC – launch of new products Credit Cards Private Label Cards 3 This presentation is subject to copyright and may not be copied or used without CSU’s express consent
  4. 4. TELESYSTEM AND November 16, 2006 CREDIT&RISK MARKETSYSTEM Brazil’s Call Center Revenues (R$ Bn) 7.68 TeleSystem and Credit&Risk 6.91 6.14 5.34 • Banco do Brasil and FINASA – new customers – 4.64 colection area 3.96 • Banco IBI – new customer – credit area • Natura – contract termination 2005 2006 2007 2008 2009 2010 Actual Forecast Source: IDC Brazil MarketSystem RELEVANT ASPECTS: • Nossa Caixa – new program Call Center Markets • HSBC – launch of new products • Customer care and outsourcing – • Santander – discontinued services growth drivers • Fierce competition –reductions of margins 4 This presentation is subject to copyright and may not be copied or used without CSU’s express consent
  5. 5. GROSS REVENUE November 16, 2006 Gross Revenue Breakdown (R$ million) 272.9 243.4 9.4% 87.1 92.8 15.3% 11.0% 10.1% 18.7% 10.2% 50.1% 44.7% 50.3% 47.0% 32.8% 34.5% 34.9% 31.0% 3Q05* 3Q06 9M05 9M06 CardSystem TeleSystem Credit & Risk MarketSystem * Recurring revenue CardSystem RELEVANT ASPECTS: TeleSystem and Credit&Risk • Non-recurring 3Q05 impact RELEVANT ASPECTS: • Private labels expansion • TeleSystem and Credit&Risk: reduced commercial performance in 2006 • Significant growth: adjusted 12.5% on 3Q06 and 13.4% on 9M06 5 This presentation is subject to copyright and may not be copied or used without CSU’s express consent
  6. 6. COSTS November 16, 2006 Costs of Rendered Services (R$ million) 218.6 183.5 76.3 7.9% 65.4 18.2% 14.6% 7.4% 20.2% 13.6% 53.5% 56.1% 55.5% 53.3% 24.3% 25.8% 25.7% 24.0% 3Q05 3Q06 9M05 9M06 CardSystem TeleSystem Credit & Risk MarketSystem RELEVANT ASPECTS: Costs of Rendered Services • Increase in personal expenses • Increase in Mailing Costs due to card base expansion • Leasing and Building: increase as a response to installed capacity (TeleSystem and Credit&Risk) • Caixa Project: Temporary impact • Collective pay rises 6 This presentation is subject to copyright and may not be copied or used without CSU’s express consent
  7. 7. GROSS PROFIT November 16, 2006 43.9 35.0 Gross Profit (R$ million) and Margin 20.7 • Non-recurring effect as previously mentioned 9.7 • TeleSystem and Credit&Risk 19.3% 13.8% reduced commercial performance in 24.0 % 2006 11.3% 27.0 3Q05 3Q06 9M05 9M06 23.1 FG&A Expenses (R$ million) 9.1 9.1 • Stability between 3Q05 and 3Q06 • Project to reduce operating costs and expenses, aiming to improve the operating result by R$4 million per quarter as of 1Q07 3Q05 3Q06 9M05 9M06 7 This presentation is subject to copyright and may not be copied or used without CSU’s express consent
  8. 8. EBITDA (R$ milion) November 16, 2006 and EBITDA Margins (%) Consolidated* 45.0 42.5 19.9 12.9 17.8% 18.7% 23.2% 15.0% 3Q05 3Q06 9M05 9M06 * Adjusted, excluding IPO expenses 8 This presentation is subject to copyright and may not be copied or used without CSU’s express consent
  9. 9. EBITDA Business Unit November 16, 2006 (R$ million) CardSystem 38.4 Credit&Risk 29.8 13.4* 1.6 9.1 0.8 (2.0) (0.8) 3Q05 3Q06 9M05 9M06 3Q05 3Q06 9M05 9M06 * R$ 8,5 million after non-recurring revenue adjustment TeleSystem MarketSystem 11.9 4.8 5.2 3.4 2.1 2.5 3Q05 3Q06 9M05 9M06 3Q06 9M06 9 This presentation is subject to copyright and may not be copied or used without CSU’s express consent
  10. 10. NET RESULTS November 16, 2006 Consolidated Net Results (R$ million) 10.1 6.1 (1.4) (3.3) 3Q05 3Q06* 9M05 9M06* * Excluding IPO expenses 10 This presentation is subject to copyright and may not be copied or used without CSU’s express consent
  11. 11. DEBT AND INVESTMENTS November 16, 2006 R$ thousand 1Q06 2Q06 3Q06 Short Term Debt 36,914 36,407 17,197 Long Term Debt 32,532 30,604 23,938 Gross Debt 69,446 67,011 41,135 (-) Cash 1,891 85,569 42,471 Net Cash (Debt) 67,555 (18,558) (1,336) 20.7 • Cash balance in 2Q and 3Q reduced by debt Capex (R$ million) amortization and Capex • Adjustments in financial expenses already mentioned 12.1 8.3 4.3 7.8 CardSystem Plataform Caixa Project 4.0 Others 0.8 3Q06 9M06 11 This presentation is subject to copyright and may not be copied or used without CSU’s express consent
  12. 12. VALUE CREATION November 16, 2006 • CardSystem • Caixa Project implementation – Feb/07 • Focus in Private Label co-branded cards • New customers prospection • TeleSystem and Credit&Risk • Management restructuring implemented • Strengthening of commercial and structural processes • MarketSystem • Focus in adding new financial, telecommunications and retail customers 12 This presentation is subject to copyright and may not be copied or used without CSU’s express consent

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