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UBS UBS Pactual Pactual 2007 Brazil CEO Conference2007 Brazil CEO Conference
MarchMarch 5, 20075, 2007
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Disclaimer
This presentation may include forward-looking statements of future events or results according to the regulations of the 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 expected events by the company, many of which are beyond the control of the Company. Important factors that may lead to significant differences between the actual results and the statements of expectations about future events or results include the company’s business strategy, Brazilian and International economic conditions, technology, financial strategy, financial market conditions, uncertainty regarding the results of its future operations, plans, objectives, expectations and intentions, among others. Considering these factors, the actual results of the company may be significantly different 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 a recommendation to potential investors and no investment decision is to be based on the veracity, current events or completeness of this information or these opinions. No advisors to the company or parties related to them or their representatives should have any responsibility for any losses that may result from the use or contents of this presentation.
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Leading Technology Services Provider In Brazil
CardSystem33%
TeleSystem45%
Credit&Risk15%
MarketSystem7%
Revenue in 2005**
R$ 357 mm
CardSystem67%
TeleSystem18%
Credit&Risk4%
MarketSystem11%
Gross Profit in 2005**
R$ 71 mm
** Reflects MarketSystem's Pro-forma results
The largest independent administrator of credit cards
11,3 15.4* million cards
117 million processed transactions
44% of market share
Leading independent call center in Brazil 2,837 Workstations
Leading collection services provider 594 Collection Workstation
Leading loyalty programsmanagement
4.0 million managed accounts
* Data of Sep./06. Includes the cards from Caixa Econômica Federal Contract
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Our Excellence In Credit Card Administration Fostered Other Leading Business Units
System development/ Implementation
Card Issuance
Electronic Transaction Process
Full Service
Credit and
Collection analysis
CustomerSupport
Loyalty Programs
� New business opportunities/ cross-selling
� Lower costs from scale gains
� High switching cost
Fraud Prevention
Operational Control
Diversification brought us:
Interchange
New Business Opportunities
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Attractive Industry Fundamentals ToCredit Cards…
23.628.0
35.341.5
47.552.5
68.0
1999 2000 2001 2002 2003 2004 2005
Number of Credit Cards - BrazilNumber of Credit Cards - Brazil
Million
Most Used Credit Instruments in BrazilMost Used Credit Instruments in Brazil
78.0
2006
3%
3%
8%
15%
15%
16%
21%
37%
59%
Payroll Deductible
Real State Loans
Personal Loans
Overdraft Facility
C.C. Payment in Equal
Installments
C.C. Minimum Payment
Invoice
C.C. Interest Bearing
Purchases
Payment Book
C.C Interest Free
Purchases
Source: Abecs
Brazil is the 3rd largest card issuerBrazil is the 3rd largest card issuer
796USA
206China
192Brazil
Credit
Million cards, in 2005
UK 140
CAGR
19%
CAGR
19%
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… And the Call Center Industry Showing Consistent Growth Potential
Potential Growth – Brazilian Call Center Services Revenue**
Potential Growth – Brazilian Call Center Services Revenue**
2007 2008 2009 2010
15%13%
12%
* Source: ABRAREC
Historical Growth – Brazilian Call Center Services Revenue*
Historical Growth – Brazilian Call Center Services Revenue*
Annual Growth %
2002 2003 2004 2006
25%
60%21%
2005
** Source: IDC
CAGR
13%
CAGR
13%
CAGR
30%
CAGR
30%
20%
Annual Growth %
+15%
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Leading Competitive Position AmongIndependent Players
2005 data
Market Share: Credit Card Processing Segment *
Market Share: Credit Card Processing Segment * Leading Independent Call Center OperatorLeading Independent Call Center Operator
5 largest independent players
* Notes:- CSU’s Market Share considers credit cards from Caixa - Orbitall: 100% owned by Itaú- Fidelity (51%): 49% owned by ABN Real and Bradesco Sources: Cardnews and IDC
In Outsourcing
TeleSystem and Credit&Risk
21%
Telefutura
17%
Softway
14%
TMS
12%
Teleperformance
36%
44%
Orbitall
27%
Fidelity
20%
EDS
9%
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CSU – Strong and Diversified Clients Portfolio
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Caixa Econômica Federal Project
� The largest contract in industry ~ 4,1 million active credit cards
� Strong growth potential
� Beginning of monthly revenue starting on May/07
� Initial period of rendering services does not change (2 years)
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Strong Growth Track Record
41,627
23,16225,347
2003 2004 2005
5,238 5,7877,421
2,1492,290
2,638
2003 2004 2005
Credit Cards Private Label
3,308
991
2,096
2003 2004 2005
Cards base*
(‘000)
11%
7,3878,077
10,059
Workstations* Billing contacts**
(‘000)
CAGR 17% CAGR 83% CAGR 28%
19%
* Monthly average ** Active and receptive* Annual average
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Consolidated Financial Performance
Net RevenuesNet Revenues Gross Profit Gross Profit
30.637.0
42.3
55.3
63.7
2001 2002 2003 2004 2005
60.3
46.3
34.2
22.917.0
2001 2002 2003 2004 2005
96.7
134.4
177.9
229.4
313.6
2001 2002 2003 2004 2005
EBITDAEBITDA
R$ MM
R$ MM
6.6 6.5
10.2
12.9
16.1
2001 2002 2003 2004 2005
Net ProfitNet Profit
R$ MM
R$ MM
CAGR 37%
CAGR 34%CAGR 20%
CAGR 25%
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Growth Opportunities
OrganicMarket Growth
Cross-SellingOpportunities
Entrance inNew Markets
AcquiringNew Clients
& Outsourcing
Electronic Payment through Mobile
Call Center Offshore
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� 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
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
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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
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High Level of Corporate Governance and Human Resources Focus
Dedicated Investor Relations Team
Development of a Stock Option program for the executives� Alignment of interests between administration and shareholders
Code of Ethics / Disclosure and Stock Trading Policies
Human Resources Emphasis� Results Oriented Management� Special Recruiting Actions: Trainee Program and New Talents Program� Management Compensation aiming at business growth
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Conclusion: Attractive Investment Opportunity
Attractive Industry Growth Fundamentals
Market Leadership
Superior Corporate Governance
Strong Growth Prospects
Premium Diverse Client Portfolio with Excellent
Relationship Track Record
Impressive History Growth In All Financial Metrics
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www.csu.com.www.csu.com.brbr
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