2. Disclaimer
Clique para editar o estilo do título mestre
The material that follows is a presentation of general information about CSU’s antecedents on the presentation date. The information
contained in this presentation is summarized and not intended to be complete and, therefore, should not be understood as a
recommendation to potential investors. This presentation is confidential and shall not be disclosed to third parties. We do not make any
declarations, nor do we give any guarantee whatsoever regarding corrections, adjustments or the comprehensiveness of the information
presented here, which should not be used as a basis for investment decisions.
This presentation contains prospective statements and information according to Provision 27 of the Securities Act of 1933 and Provision
21E of the Securities Exchange Act of 1934. These prospective statements and information are merely projections and, therefore, do not
constitute any guarantee of future performance. We warn investors that these statements and information are and will be subject to
risks, uncertainties, and factors related to business operations and the business environment of CSU and its subsidiaries, and therefore,
the companies’ real performance may differ significantly from the future results shown or implicit in the statements and information
contained in this presentation.
Although CSU believes that the expectations and premises contained in these prospective statements and information are reasonable
and based on data that is available to its management, CSU cannot guarantee any results or future events. CSU does is not required to
update any of these prospective statements and information.
In the United States, the offer or sale of securities that are not registered or exempt from registration pursuant to the Securities Act of
1933 is not permitted. Any offer of securities in the United States must be made by means of an offering memorandum, which can be
obtained from underwriters. The offering memorandum must contain or reference detailed information about CSU, its business and
financial results, in addition to its financial statements.
This presentation does not constitute an offer, invitation or request of subscription offering or purchase of any securities, nor does this
presentation, or any information contained in it, constitute the basis of a contract or any sort of commitment.
2
3. CSU is a compelling investment opportunity in the payment
Clique para editar o estilo do título mestre
processing industry in Brazil
• Rapidly growing industry that benefits from increased usage of
financial services and growth in consumption
• Largest independent payment transaction processor in Brazil
• Acquirer processing is a substantial opportunity that will be open
to CSU in July 2010
• Our Contact Center is well-positioned for profitable growth
• Our strategy is supported by a state-of-the-art, Brazil-specific
operating platform
3
4. The Brazilian card marketo estilo do título mestre
Clique para editar has experienced explosive growth
in the last several years
Number of Cards Number of Transactions
(million) (million/month)
CAGR 04-10E CAGR 04-10E
628
15% 565 19% 594
514 509
453 444
388 369
336 309
277 263
210
2004 2005 2006 2007 2008 2009 2010E 2004 2005 2006 2007 2008 2009 2010E
Private Label Debit Credit Private Label Debit Credit
Brazilian GDP CAGR from 2004 to 2009 was 3.6% and
expected growth in 2010 is 5.5%
Source: ABECS
4
5. Growth inparaissuance is underpinned by powerful trends
Clique card editar o estilo do título mestre
• Card penetration in Brazil has increased from 8% of families’ spending in 1999 to 21%
in 2008.
• Access to banking services has been fueled by the intense migration of individuals to
consumption level (classes A, B and C).
• The increase in disposable income and accessibility to banking services constitutes a
powerful lever for the future growth in card usage and transactions.
Share of Card Usage in Family Population by Consumption Level
Spending (% of total)
42%
38%
59,6%
56,6%
54,9% 54,3%
52,6%
21% 50,1%
47,4%
45,2% 45,7%
43,4%
8% 40,4%
1999 2008 2017E* 2008 2003 2004 2005 2006 2007 2008
ABC DE
Brazil US
Source: ABECS; CPS/FGV from PNAD/IBGE data * - ABECS Projection
5
6. CSU is a compelling investment opportunity in the payment
Clique para editar o estilo do título mestre
processing industry in Brazil
• Rapidly growing industry that benefits from increased usage of
financial services and growth in consumption
• Largest independent payment transaction processor in Brazil
• Acquirer processing is a substantial opportunity that will be open
to CSU in July 2010
• Our Contact Center is well-positioned for profitable growth
• Our strategy is supported by a state-of-the-art, Brazil-specific
operating platform
6
7. The electronic payment value chain do
Clique para editar o estilo título mestre
Cash Cash
Brands
(Visa, MasterCard, Amex)
Approval Approval
request request
Approval Approval
Issuer
Acquirer
(Banks and Retailers)
Electronic
Cash Card / Invoice captures Cash
transaction
Commercial transaction
Card holder Merchant
7
8. CSU provides a full suite of services to card issuers in Brazil
Clique para editar o estilo do título mestre
• Financial Information
• Authorization
• Interchange
• MIS
• Processing of Electronic Transactions
• Contact
Center Brands
• Accounting (Visa, MasterCard, Amex)
• Processing
• Fraud
prevention
• Operational Control
Issuer
Acquirer
(CSU’s client)
CSU CardSystem
• Statement
• Billing
• Dispute Resolution CSU has a central role in
• Customer Support
the electronic
Card holder transactions business in Merchant
Brazil.
8
9. CSU is a Full BPOeditar o estilo one stop shop philosophy,
Clique para that works with a do título mestre
offering turn-key solutions for all its costumers
Issuer Merchant
Services Provided CSU
Processor Processor
Authorizations
Billing and Credit Cycle Management
Collection
Contact Center
Vis-à-vis
Disputes with Establishments
Services Card Holder
Issue and sent of cards
performed on
Loyalty Programs / CRM
behalf of
Statement
Issuer
Unblock Cards
Financial Information
Vis-à-vis Interchange
Brands Processing
Relationship with Brands
Accounting
Back-Office
Value-added services Fraud prevention
provided to the issuer MIS - System Inteligence
Operational Structure
Operation Control and Management
9
10. CSU is thepara editar o estilo do processor in Brazil
Clique largest Independent payment título mestre
Number of Credit and Private Label Cards Share of Outsourced Market
(2009) (2009)
Others;
2.0%
Fidelity;
14.7%
Processed
287,9 by third
44,8 CSU;
parties 54.3%
Processed Orbital;
in-house 29.0%
Total = 333 million* Total = 44.8 million
More than half of the total 333 million cards in the market are Private Label cards that can
potentially be converted to Visa/MasterCard brands and processed by CSU
Source: ABECS; *Does not include debit cards (233 million in 2009)
10
11. Our clientparais well diversified and composedmestre
Clique base editar o estilo do título of financial
institutions, retailers and non-traditional issuers
Banking Non-Banking
11
12. Our Business Model: multiple revenue sources, high client
Clique para editar o estilo do título mestre
loyalty and economies of scale
Revenue per Card in 2008
(US$) • We generate the same level of revenue per card than
8.5 our US peers, in an environment of lowest transaction
7.1 7.1
values
61.8% 2.8
23.5%
14.5%
36.0% • First Data higher gross margins due to Vision Plus
royalties, which represents most of its revenues
First Data Fidelity Tsys CSU
Clients Turn Over
(units)
19 • Low client turn-over
16 16 17
• High quality services at attractive prices
• High switching costs
2 1 1 0
• Multi-year contracts with high exit penalties
2006 2007 2008 2009
Number of Clients Clients Turn Over
Gross Profit and Gross Margin • High fixed processing costs gives CSU a cost advantage
(million)
94.3 as market leader
71.2
54.4
• We share our cost advantage with our clients to
50.9
increase customer loyalty and discourage competition
40.4%
37.7% 34.4% 36.0%
2006 2007 2008 2009 Source: CSU and Annual Reports of Corporations 2008
12
13. CSU is a compelling investment opportunity in the payment
Clique para editar o estilo do título mestre
processing industry in Brazil
• Rapidly growing industry that benefits from increased usage of
financial services and growth in consumption
• Largest independent payment transaction processor in Brazil
• Acquirer processing is a substantial opportunity that will be open
to CSU in July 2010
• Our Contact Center is well-positioned for profitable growth
• Our strategy is supported by a state-of-the-art, Brazil-specific
operating platform
13
14. The acquirer business is about to undergo significant change in
Clique para editar o estilo do título mestre
Brazil, prompted by new regulation
Current Situation With New Regulation
• Two merchant acquirers • Market open to competition
dominate the market • Multiple acquirers
• Exclusivity agreements with Anti-trust
authorities force
Visa and MasterCard limit
end of exclusivity
competition agreements after
• Extraordinary profits produced July/10
by acquirers New entrants in the Brazilian
acquirer market
2009 Net Income and Net
Margins Number of POS Transactions and
(million US$/%) Number of Acquirers
58.1
771
700 7.7
5.3
45.4% 103 0.8
42.4%
2 10 12
215
101
12.7% USA Brazil UK Mexico
2.7%
Number of Transactions (billions/2008)
Cielo Redecard Fidelity Tsys
Number of Acquirers
Source: Annual Reports of Companies Source: BIS, Central Banks and ABECS
14
15. CSU is ready to provide a o estiloof processingmestreto
Clique para editar full suite do título services
merchant acquirers
New Services
• Operation Management
• Authorization
Brands • Statement
(Visa, MasterCard, Amex) • Network
• Accounting
• Processing
• Back Office
• MIS
Issuer Acquirer
(CSU’s client) (CSU’s client)
CSU CardSystem • Capture Network (POS)
• Contact Center
• Disputes
Resolutions
• Statement
Card holder Merchant
15
16. CSU is a compelling investment opportunity in the payment
Clique para editar o estilo do título mestre
processing industry in Brazil
• Rapidly growing industry that benefits from increased usage of
financial services and growth in consumption
• Largest independent payment transaction processor in Brazil
• Acquirer processing is a substantial opportunity that will be open
to CSU in July 2010
• Our Contact Center is well-positioned for profitable growth
• Our strategy is supported by a state-of-the-art, Brazil-specific
operating platform
16
17. Our Contact Center has undergone ado título mestre
Clique para editar o estilo profound operating
change and is positioned for profitable growth
Contact Center Companies – Market Share
Atento 18.2%
• 9th largest Contact Center in Brazil
• Turnaround completed in February 2010 Others 36.4%
Contax 18.2%
• 5 sites closed
• 1 site opened with lower operating CSU 2.5%
Tivit 6.6%
Teleperf. 3.2%
Dedic GPTI 5.5%
costs TMKT 2.9%
AeC 3.0% Algar 3.4%
Source: callcenter.inf
• Over 10 contracts terminated due to
poor financial performance Gross Profit and Gross Margin
(R$/million)
11.6
• Financial Results have improved and will CAGR 06-09
7.2%
135%
continue to do so as occupancy rises – 0.9
2.4
-3.2%
current focus on commercial development 0.5% 1.5%
(5.4)
2006 2007 2008 2009
Source: CSU
17
18. CSU is a compelling investment opportunity in the payment
Clique para editar o estilo do título mestre
processing industry in Brazil
• Rapidly growing industry that benefits from increased usage of
financial services and growth in consumption
• Largest independent payment transaction processor in Brazil
• Acquirer processing is a substantial opportunity that will be open
to CSU in July 2010
• Our Contact Center is well-positioned for profitable growth
• Our strategy is supported by a state-of-the-art, Brazil-specific
operating platform
18
19. Our Business is supported o estilo do título Brazil-specific
Clique para editar by a state-of-the-art, mestre
operating platform
Belo Horizonte Back-Up site (São Paulo) Alphaview site
• Our version of the Vision Plus software was extensively customized for the Brazilian
market in the course of 20 years of development and is the only platform in Brazil fully
prepared to deal with multiple clients
• Highly experienced technical and development teams
• Alphaview Contact Center is a state-of-the-art facility with low operating costs
19
20. Our strategy is geared to produce growth with high
Clique para editar o estilo do título mestre
profitability
Continue to grow
Build a acquirer
issuer processing
processing business
business
Grow Contact Center
Continue to invest in business by
IT and software increasing occupancy
development with financial
discipline
20
22. Payment transaction services: strongdo título performance
Clique para editar o estilo operating mestre
Cards in CSU's Base
(million)
CAGR 06-09 24.3
26% 20.1 • Rapidly growing industry and new clients
16.6
12.1 supports company’s card base expansion
• Above-market growth in the last 4 years
2006 2007 2008 2009
Gross Revenue • Our full suite of financial services assures high
CAGR 06-09 (R$/million)
253.7
17% 213.9 revenue per card
156.7 159.2
• Continuous revenues growth also supported by
new products and low client turn over
2006 2007 2008 2009
Gross Profit and Gross Margin
CAGR 06-09 (R$/million) • Costs advantage due to constant investments in
94.3
20%
71.2 technology and large cards base
54.4 50.9
40.4%
37.7%
• Benefits of scale shared with customers to
34.4% 36.0%
2006 2007 2008 2009
increase loyalty and discourage competition
22
23. Contact Center: positioned for profitable growthmestre
Clique para editar o estilo do título
# of Workstations vs. Occupancy
(units)
4,796
4,283 4,225 • Turn around finalized in March-2010
228 1,474 629 3,494
265
4,055
• Number of workstations drop due to
3,322 3,596 3,229
termination of poor profitability contracts
2006 2007 2008 2009
Occupied Available
Gross Revenue • Revenues remained stable spite of lower
(R$/million)
197.6
number of workstations
174.3 177.2 172.7
• Revenues recover expected due to focus on
commercial development
2006 2007 2008 2009
Gross Profit and Gross Margin • Management focused on growth with margin
(R$/million) 11.6
2.4
7.2% discipline
0.9
-3.2%
0.5% 1.5%
CAGR 06-09
• Profitability should increase as occupancy
(5.4) 135%
recovers
2006 2007 2008 2009
23
24. Constant investments in our estilo do título mestre
Clique para editar o software and substantial net
debt improvement
Capex
(R$/million)
43.7 46.9
40.6
28.9 21.0 25.4 11.4
24.4
13.9 4.3
25.9 29.2
19.3 15.0 21.1
2005 2006 2007 2008 2009 • We generate enough cash
Software Others
to fund our Capex program
Net Debt and Net Debt/EBITDA and reduce our net debt
(R$/million)
109.1
95.0
3.2x
59.5 55.5
1.5x 1.5x
0.7x
21.6
0.4x
2005 2006 2007 2008 2009
24
25. Financial Summary – Consolidated
Clique para editar o estilo do título mestre
In millions (R$) 2006 2007 2008 2009
Net Revenues 317.9 318.6 363.7 394.8
Gross Profit 46.3 45.5 73.7 106
Gross Margin 14.6% 14.3% 20.3% 26.8%
Processing Services 54.4 50.9 71.2 94.3
Gross Margin 37.7% 34.4% 36,0% 40.4%
Contact Center -8.1 -5.4 2.4 11.6
Gross Margin 0.5% -3.2% 1.5% 7.2%
EBITDA 39.2 33.9 64.4 78.9
Net Income -16.9 -6.3 9.5 17.9
Net Debt 59.5 109.1 95.0 55.5
Capex 28.9 46.9 25.4 40.6
25
26. High standards of corporate estilo do
Clique para editar o governance título mestre
100% common shares and 44% free-float
Novo Mercado (100% Tag Along)
Majority of independent board members
Independent Audit Board
Three members, one of which is appointed by the minority shareholders
Solid investor relations culture
Financial Investors in the shareholder base since 1997
Internal Audit and Compliance Department
Stock option plan for executives
26
No Poison Pills
26
27. Clique para editar o estilo do título mestre
Questions?
Décio Burd
Phone: (55 11) 3030-3821
E-mail: investidorescsu@csu.com.br
Site: www.csu.com.br/ri