CSU completed 20 years of operations in 2012 and evolved into a full service provider of electronic transaction processing and administration. The company expanded into new fast-growing markets with profitable products and services. CSU achieved similar financial results in 2012 as in 2011, with margin expansion, generating R$64.8 million in EBITDA and R$22.2 million in net income for the year. Key business units grew customer bases, transactions and service offerings despite losing a large contract. The company maintained investments in innovative solutions and infrastructure while reducing expenses.
1. Resultados Release
Earnings
4T12 e ano de and year 2012
4Q12 2012
March 08, 2013
8 de março de 2013
2. Looking back at 2012
• CSU completes 20 years since its
establishment;
Strategic Guidelines • Evolved to be a complete service
Diversification of revenue sources provider for administration and
generation of electronic
transactions;
Expansion to higher margin
businesses • Expansion into fast-growing
Launch of new, more efficient markets: HIGH TECHNOLOGY with
products and services PROFITABILITY;
Strict management of investments • New products with effective
and expenses competitive advantages are part of
unique capacities and expertise
among CSU’s various business units.
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3. Looking back at 2012
CSU CardSystem
• New contracts in middle market:
retail and banks;
Strategic Guidelines
Diversification of revenue
CSU Acquirer
sources
• Growth in the number of
Expansion to higher margin international brands’ transactions;
businesses
Launch of new, more efficient
products and services
CSU MarketSystem
Strict management of investments • Incorporation of web solutions
and expenses applied to customer acquisition and
relationship programs.
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4. Looking back at 2012
CSU CardSystem
• New scope on client
Strategic Guidelines management area:
Diversification of revenue sources greater strategic proximity and new
services development;
Expansion to higher margin
CSU MarketSystem
businesses
• Fans Engagement
Launch of new, more efficient implementation;
products and services
Strict management of investments CSU Contact
and expenses • Increase of collections and
telemarketing representation in
the contact center operations;
• Back-office /BPO Services.
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5. Looking back at 2012
Strategic Guidelines
Diversification of revenue sources
Expansion to higher margin
businesses
Launch of new, more efficient CSU Contact
products and services • C360
Strict management of investments CSU MarketSystem
and expenses • OPTe+
CSU Host
• IT infrastructure outsourcing
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6. Looking back at 2012
• Operational reformulation of
CSU Contact business unit;
Strategic Guidelines
Diversification of revenue sources • Prioritizing higher return
potential investments;
Expansion to higher margin • Contract renegotiations with
businesses suppliers;
Launch of new, more efficient
products and services • Reduction of 5% in Selling,
General and Administrative
Strict management of expenses, year-over-year.
investments and expenses
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7. Summary of the period
• EBITDA generated by the Company in the year was R$ 64.8 million and net
income R$ 22.2 million, both very similar to what was delivered in 2011, with
year over year margin expansion;
• Gross revenue for the quarter totaled R$ 93.6 million, generating R$ 17.0
million in gross profit and R$ 3.2 million in net income.
• In 2012, the average number of registered cards in CSU CardSystem
business unit was 19.9 million plastics;
• CSU Contact’s gross margin consistent expansion, reaching 12.4% in
4Q12, operating 3,900 workstations.
• Distribution of R$ 7.5 million to shareholders in interest on equity
CARD3 and investment of R$ 4.5 million in CARD3 buyback;
• This year, the Company had over 600 contacts with investors and
analysts, whether in Brazil or abroad.
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8. Result partially affected by HSBC s migration
Gross Revenue Share
Gross Revenue
( % of Total Revenue)
(R$ thousand) - 5.1%
54.0%
- 13.6% 427,610 405,663
46.0%
108,285 93,564
CSU CardSystem CSU Contact
4Q11 4Q12 2,011 2,012
EBITDA x EBITDA Margin Net Profit and Net Margin
(R$ thousand and % of Net Revenue) (R$ thousand and % of Net Revenue)
- 0.9% - 2.0%
65,453 64,864 22,646 22,195
75.0%
65.0%
- 56.8% 55.0% - 61.3%
45.0%
35.0% 8,161
18,775 17.4%
16.5% 25.0%
3,159 6.0%
8,103 15.0% 5.7%
8.1%
18.6% 9.4% 5.0% 3.7%
-5.0%
4Q11 4Q12 2,011 2,012 4Q11 4Q12 2,011 2,012 8
9. Performance in electronic payments
Average Billed and Registered Cards • The CSU CardSystem business unit is
(in million units) implementing three new and simultaneous
22.1 23.4 23.3 projects: Banpará, BNB and Banco Fibra;
18.5 19.0 19.9 21.2 19.9
18.6
15.4 • In 4Q12, 732 thousand new cards were issued
by existing clients. Annual average of 19.9
million registered cards;
• Termination of HSBC’s card processing
2008 2009 2010 2011 2012
contract.
Billed cards Registered Cards
Gross Revenue Gross Profit and Gross Margin
(R$ thousand) (R$ thousand and % of Net Revenue)
- 1.0% - 19.8%
221,309 219,157 100,000
94,359
90,000 75,715
- 20.4% 80,000 - 53.8%
70,000
60,000
50,000
60,639 40,000 25,481 46.2% 37.9%
48,263 30,000
20,000 11,780
10,000 45.4%
-
26.6%
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4Q11 4Q12 2,011 2,012 4Q11 4Q12 2,011 2,012
10. Performance in contact center
Number of Workstations
• Operation concentrated at Barueri/SP
(units)
(Alphaview) and Recife/PE sites;
4,225 3,757 4,090 3,889
3,494
• Strict cost management, payroll tax exemptions
and pursuit for smaller and more complex
operations provide a gross margin of 9.7% in
2008 2009 2010 2011 2012 2012; 88.1% expansion in gross profit.
Workstations
Gross Revenue Gross Profit and Gross Margin
(R$ thousand) (R$ thousand and % of Net Revenue)
12.4%
9.7%
- 9.6% 6.2%
206,301 4.6%
- 4.9% 186,506
+ 88.1%
16,832
+ 88.0%
8,950
47,645 45,301 5,187
2,759
4Q11 4Q12 2,011 2,012 4Q11 4Q12 2,011 2,012 10
11. Investments & Cash Balance
Capex
(R$ million)
42.3 • Investments of R$ 6.8 million in
4Q12, totaling R$ 22.4 million in 2012;
28.5 18.6
22.4 • Majority of investments addressed to
8.6
4.7 CSU CardSystem business unit to
19.9 23.6 enhance and customize the processing
17.7
platform and to implement new
clients;
2,010 2,011 2,012
CSU CardSystem CSU Contact
• Development of new solutions.
• In the end of 4Q12, the Company’s cash balance totaled R$ 19,6 million;
• In addition, in January’ 2013, the Company borrowed R$ 30 million, with 5 year maturity
tenure.
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12. Strategic positioning to maximize return on assets
Competitive
advantages in the Expansion to new
electronic market verticals
transactions market
Innovative Solutions Maximization of
with high value added processing capacity with
integrating intelligence Datacenter Tier III
and contact channels
Consistent growth with
gains in profitability of
core business
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13. Marketing activities
• Example of targeted
content sent to CSU’s
customers and prospects;
• Highlights the features
and functionalities of the
solution;
• Presents the two main
revenue lines of the new
solution:
• Corporate Shopping
• Points redemption for
loyalty programs
14. Marketing activities
• Example of targeted
content sent to CSU’s
customers and prospects;
• Highlights the features
and functionalities of the
solution;
• Presents the different
applications of the tool:
• Acquisition of new
clients
• Relationship &
Activation
• Engagement
• Retention &
collections.
15. Additional Information
Mônica Hojaij Carvalho Molina
Antonio N. Donato Filho
Investor Relations
Phone: +55 (11) 2106-3821
E-mail: ri@csu.com.br
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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