2. Quarter Highlights
• Gross Revenue totaled R$ 109.8 million, a record amount, and exceeded
3Q10’s revenues by 6.0%
Results
Resultado
• Evolution of the growth indicators and profitability during the year: revenues,
net profit and EBITDA, with a highlight being the 40.4% p.a. increase in
gross profit at CSU Contact, with a net margin of 7.8% in 3Q11
• Number of cards processed reached 25.3 million, with an increase of 26.5%
YoY
Operations • A 21.3% p.a. rise in CSU Contact’s APs, ending the period with 4,207
Negócios
workstations
• Launch of the Fans Engagement loyalty program and the Pre-paid Flex card
• Creation of Board of Directors’ Advisory Committees, focused on Strategy
and Development, Marketing and Markets, and Finance and Risks
Governance
Governança
• Consistent execution of the CARD3 share buy-back programs
2
3. Strategy: profitable growth
• Commercial focus • Only platform in the • Expansion of addressable • Focused on the
aimed at diversification market that is tested markets middle market
of the client base and in operation • Fans Engagement
• New issuers and • Improved financial
current PL issuers • Search for new
• Incorporation of the Web performance
clients
universe in the solutions
• Innovation: products offered • Broader scope of
and technologies • International
partnerships solutions
• Pre-paid Flex card
3
4. Clear and consistent resumption
of expansion
Gross Revenue Business Units Gross Revenue Share
(R$ million) (% of revenues - LTM)
109.0 109.8
103.6
100.5 CSU Contact CSU
97.8 48% CardSystem
52%
3Q10 4Q10 1Q11 2Q11 3Q11
Main Indicators Evolution • In the first nine months of
(R$ million)
2011, gross revenues totaled R$
102.0
101.1 319.3 million, up 1.4% over the
101.1
101.1 102.0
102.0 same period of 2010
96.0
93.5
93.5 93.5
91.0
27.3
27.3
• Company proves its
25.7
22.2
22.2
25.7
resiliency, with an increase in
15.1% 15.9%
16.3
16.3
13.2% 14.4% growth and profitability indicators
15.2%
15.9
15.9
14.4
14.4
during the course of the year: net
1Q11
1Q11 2Q11
2Q113Q10 4Q10
3Q11
3Q11
1Q11 2Q11 revenue, gross profit and EBITDA
3Q11
Gross Prof itit
Gross Prof EBITDA
EBITDA Net Income
Net Revenue
Net Income Operating Expenses
* 2010’s numbers were adjusted to reflect the effects of full adoption of the accounting convergence effective for each quarter of 2010. 4
5. Management of Costs and Expenses
Total 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% 14.4%
76.3% 13.2%
74.6% 73.3%
15.1% 72.7%
15.9% 14.4% 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 disconsider the one time effect of R$ 0.7 million referring to employees dismissals within a cost reduction program.
5
6. The evolution can be measured month
after month
• In 12 months, CSU presented strong organic growth, of 22% in revenues and 30% in
EBITDA, comparing the months of September
• The business unit CSU CardSystem improved revenues and gross profit by 12% p.a.;
• CSU Contact, besides contributing to a significant revenue diversification for the
Company, expanded its profitability, generating positive EBITDA in the month.
Sep-11 Sep-10 ∆%
CSU
Net Revenues 33,716 27,646 22.0%
Gross Profit 9,753 7,408 31.7%
EBITDA 6,616 5,080 30.2%
CSU CardSystem
Net Revenues 17,000 15,114 12.5%
Gross Profit 7,859 7,025 11.9%
EBITDA 6,269 5,936 5.6%
CSU Contact
Net Revenues 16,716 12,531 33.4%
Gross Profit 1,894 383 394.5%
EBITDA 347 (856) n.a.
6
7. Performance
Gross Revenue Gross Profit and Gross Margin
(R$ thousand) (R$ thousand and % net revenue)
QoQ: -0.4%
YoY: -7.7%
YoY: -14,6%
QoQ: -5,4%
59,948 55,560
54,251 55,332 27,218
49,778 24,969 24,579 23,242
21,058
49.2% 49.6% 48.1%
45.7% 45.6%
3T10 4T10 1T11 2T11 3T11
3T10 4T10 1T11 2T11 3T11
Billed and Registered Cards
(in millions – end of period) • 26.8% increase in the number of
YoY 26.8%
24.1 23.6
25.3 cards registered, with organic
22.6
20.0 20.6
22.0
growth and migration of Sicredi
17.3
17.1 17.0
cards (808,000)
• Reduction of revenues and gross
profit due to the alteration of the
card mix, with a greater share from
3Q10 4Q10 1Q11 2Q11 3Q11 PL
Billed cards Registered Cards 7
8. Performance
Number of Workstations
• 4,207 workstations, up 21.3%
(units) 21.3% over 3Q10;
4,433
3,757 3,918
4,207 • Reduction in number of
3,468
workstations in RJ; low
profitability operation not
556
compatible with the
400 426 442 295
Company’s objectives
3Q10 4Q10 1Q11 2Q11 3Q11
Training Total
Workstations per Type of Service
BPO
Current positioning seeks to
BPO 0.7%
Infrastructure 13.8% •
12.6%
Infrastructure win over premium segments
Collection
9.3%
8.2%
of the market, for
Collection
8.4%
example, with increasing
Telemarketing
21.1% Customer
Customer
Care participation as a BPO
Telemarketing
Care 56.3% 16.2% 49.3% services provider
Dec/10 Sep/11
8
9. Performance
Gross Revenue Gross Profit and Gross Margin
(R$ thousand) (R$ thousand and % Net revenue)
QoQ: 1.9%
YoY: 24.9% YoY: 40.4%
QoQ: 270%
53,454 54,479 4,003
50,723
43,616 43,533
2,851
7.8%
7.0%
1,107 1,081
2.3% 2.2%
3Q10 4Q10 1Q11 2Q11 3Q11 3Q10 4Q10-0.3% 1Q11 2Q11 3Q11
(117)
• Revenue growth prioritizes contracting of workstations with adequate pricing focused at
profitability expansion
• Gross margin of 7.8% in 3Q11 signals correct execution of strategy
• Company continues to seek additional opportunities for productivity gains
* 2010’s numbers were adjusted to reflect the effects of full adoption of the accounting convergence effective for each quarter of 2010. 9
10. Investments
• Capex during the quarter rose 20.1% in comparison with same quarter of 2010:
• R$ 5.0 million for the CSU CardSystem business unit, used consistently to create new
products and services and software development to receive new clients
• R$ 2.7 million invested by CSU Contact, a decline of 67.2% compared to the previous
quarter, due to concentration of new implementations in 2Q11
Capex - R$ million 3Q11 3Q10 ∆% 2Q11 ∆%
CSU CardSystem 5.0 4.3 16.7% 5.5 -9.8%
CSU Contact 2.8 2.2 27.1% 8.4 -67.2%
Capex 7.8 6.5 20.2% 13.9 -44.3%
10
11. Innovation with synergy between
the business divisions
End-to-end solutions in the
client’s life-cycle
New generation of loyalty programs:
• accumulation & redemptions;
• wide range of benefits & privileges;
• discounts and exemptions for tickets;
and FANS
• differentiated credit cards program as ENGAGEMENT
an integrating element.
End-to-end solutions in the
delivery of strategic and financial
planning through execution of
promotions, delivery of awards
and measurement of the results
11
12. Pioneerism overcomes cultural barriers
Solution for cultural barriers of
paying tariffs for the pre-paid cards
Access to non-traditional segments :
teaching
institutions, drugstores, football clubs
Pre-paid card converts to a credit card and fan clubs.
automatically :
• credit analysis based on individual
behavior;
• strong sales appeal, with lower CAC;
• good profitability and scale for the issuer;
• solution for private label or branded card PRE- CREDIT
FLEX CARD CARD
PAID
12
13. Awards 2011
National Tele-services Prize
Category: Retail
Case History: Operation Carrefour Customer Service
ABT Garrido Prize
. Category: Third-Party Operations (Active)
Case History: NET Telemarketing
. Category: Third-Party Operations (Receptive)
Case History: Operation TVA
Marketing Best Prize
History: CSU Acquirer
CSU Group
Abrasca Prize for Best Annual Report
Finalist
13
14. Further Information
Mônica Hojaij Carvalho Molina
Carlos Montenegro
Thatiana Zago
Investor Relations
Phone: (+55-11) 2106-3821
E-mail: ri@csu.com.br
Site: www.csu.com.br/ir
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Company is prohibited. All rights reserved. The opinions expressed in this document may change at any time without notice.