2. 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.
2
4. Leading Technology Services Provider In Brazil
11.3 million cards*
The largest independent administrator of 117 million processed transactions
credit cards
44% of market share
Largest independent call center in Brazil 2,837 Workstations
Leading collection services provider 594 Collection Workstation
Leading loyalty programs
4.0 million managed accounts
management
Revenue in 2005** Gross Profit in 2005**
R$ 357 mm R$ 71 mm
TeleSystem CardSystem
45% 67%
TeleSystem
18%
CardSystem Credit&Risk
Credit&Risk
33% 15%
4%
MarketSystem MarketSystem
7% 11%
* Does not include the cards from Caixa Econômica Federal Contract 4
** Reflects MarketSystem's Pro-forma results
5. CSU Is The Backbone Of The Credit Card
Business Of Its Clients
CARDHOLDER
Card Issuance
Billing
Customer Support/
ACQUIRER – NETWORK Call Center ISSUERS
Credit analysis and
Authorization processing
Collection
Processing
Operational Control
Other
COMMERCIAL CREDIT CARD BRAND
ESTABLISHMENT
Purchase Data exchange
Withdrawal Fraud Prevention
CSU Provides its Clients a Fully Outsourced Solution to Card Administration 5
6. Our Excellence In Credit Card Administration
Fostered Other Leading Business Units
Full Service
Credit
System Customer
Card and Fraud Interchange Transaction Operational Loyalty
development/ Support
Issuance Collection Prevention Process Control Programs
Implementation
analysis
Diversification brought us:
New business opportunities/ cross-selling
Lower costs from scale gains
High switching cost
6
7. Timeline
Establishment of 3 new Business Units
CardSystem Ltda. - are created: CSU
first independent CSU is the first IPO
TeleSystem, CSU
credit cards company to work
Credit&Risk and
administrator in with the 3 major
MarketSystem Ltda.
Brazil credit card labels CardSystem becomes
Change of the largest
name to CSU independent credit
CardSystem cards administrator in
Latin America
1992 ... 1994 ... 1996 1997 1998 1999 2000 2001 ... 2004 2005 2006
CSU expands and
CardSystem starts operation in
becomes a 7 sites located in
Implementation CSU receives important cities
of card Corporation
CSU develops the the ISO 9001
embossing, electronic Voucher Certification MarketSystem Ltda.
credit analysis, using the Smartcard is incorporated to
product safety technology CSU, becoming a
and collection new business unit:
procedures CSU MarketSystem
7
8. Initial Public Offering
Registered in Brazil and United States, with international sales efforts under Reg S and rule
Offering 144A
Structure
Listed in Bovespa´s Novo Mercado (Symbol CARD3)
Total offering’s volume reached R$ 341 million with the issuance of 18.9 million common shares
Offering (price of R$ 18.00 per share)
Size Primary offering amounted to R$ 100 million (5.5 million per share)
Secondary offering amounted to R$ 241 million (13.3 million per share)
The book of orders exceeded the offer by 8 times
Demand Demand split in foreign (65%) and local investors (35%)
About 70 investors were contacted during international road shows (USA and Europe)
Shareholder Composition
Shareholder Composition
Free Float
39%
Controlling
Group
61%
8
10. Attractive Industry Fundamentals To
Credit Cards…
Credit Cards per ‘000 Inhabitants*
Credit Cards per ‘000 Inhabitants* Most Used Credit Instruments in Brazil
Most Used Credit Instruments in Brazil
In 2003
C.C Interest Free
Purchases 59%
Brazil 264
Singapore 835 Payment Book 37%
United Kingdom 1,200
C.C. Interest Bearing
USA 1,257 Purchases 21%
Japan 1,990 C.C. Minimum Payment
Invoice 16%
C.C. Payment in Equal
Number of Credit Cards -- Brazil
Number of Credit Cards Brazil Installments 15%
Million
75.0
Overdraft Facility 15%
68.0
52.5 Personal Loans 8%
47.5
41.5 %
35.3 18
28.0 GR
23.6 CA Real State Loans 3%
Payroll Deductible 3%
Credit
1999 2000 2001 2002 2003 2004 2005 Sept/06
Source: Abecs and
O Globo
10
11. … And the Call Center Industry Showing
Consistent Growth Potential
Call Center Services Revenue -- Global
Call Center Services Revenue Global Call Center Services Revenue -- Brazil
Call Center Services Revenue Brazil
In US$ bi In R$ million
92.0 7.7
83.5 6.9
74.3 6.1
65.7 5.3
58.1
51.4 4.6
4.0
2005 2006 2007 2008 2009 2010 2005 2006 2007 2008 2009 2010
Annual Annual
13% 13% 13% 12% 10% 15% 15% 15% 13% 12%
growth growth
Fonte: IDC 11
12. Leading Competitive Position Among
Independent Players
Market Share:
Market Share: Market Share:
Market Share:
Credit Card Processing Segment *
Credit Card Processing Segment * Largest Call Center Operators
Largest Call Center Operators
In Outsourcing Independents
EDS and
9% Fidelity
16%
20%
Orbitall
27%
44%
* Notes:
- CSU’s Market Share considers credit cards from Caixa
2005 data
- Orbitall: 100% owned by Itaú 12
- Fidelity (51%): 49% owned by ABN Real and Bradesco Sources: Cardnews and IDC
13. Caixa Econômica Federal Project
The largest contract in industry
(3 million credit cards)
Strong growth potential
Beginning of monthly revenue starting on Feb/07
Initial period of rendering services does not change (2 years)
13
14. Recent Achievements and Products Launched
CardSystem TeleSystem and MarketSystem
Credit&Risk
• Carrefour / Visa • Terra • Nossa Caixa
• Panamericano • Bradesco / Finasa • Telemar
• HSBC / Losango • Banco IBI
14
15. CSU – Strong and Diversified Clients Portfolio
15
18. Operational Performance by Business Units
TeleSystem and Credit&Risk –
TeleSystem and Credit&Risk –
CardSystem -- Cards
CardSystem Cards
Workstations Under Operation
Workstations Under Operation
In thousand Average of the period
20.8%*
4,8%
3,575 -4.0%
4,8%
11,349 3,431
10,067
9M05 9M06 9M05 9M06
* Adjusted by the credit cards data base’s cleaning
MarketSystem – Loyalty Accounts
MarketSystem – Loyalty Accounts
60.8%
4,8% 4,029
2,505
9M05 (Pro Forma) 9M06 18
19. Consolidated Financial Performance
Net Revenues
Net Revenues Gross Profit
Gross Profit
R$ MM 313.6 R$ MM 63.7
CAGR 20%
CAGR 34% 55.3
229.4
42.3
177.9 37.0
30.6
134.4
96.7
2001 2002 2003 2004 2005 2001 2002 2003 2004 2005
EBITDA
EBITDA Net Profit
Net Profit
R$ MM R$ MM 16.1
CAGR 25%
CAGR 37% 60.3 12.9
46.3 10.2
34.2
6.6 6.5
22.9
17.0
2001 2002 2003 2004 2005 2001 2002 2003 2004 2005
19
21. Consolidated Financial Performance
Net Revenue
Net Revenue Gross Profit
Gross Profit
R$ MM R$ MM
11.5%
4,8% -20.3%
4,8%
253.5 43.9
227.4 35.0
9M05 9M06 9M05 9M06
EBITDA
EBITDA Net Profit
Net Profit
R$ MM R$ MM
6.0%
4,8%
42.5 45.0
10.1
-3.3
9M05 9M06* 9M05 9M06*
21
* Adjusted by the IPO’s expenses
22. Financial Performance of the Business Units
CardSystem
CardSystem TeleSystem
TeleSystem
R$ MM R$ MM
122.1 122.0
95.3
84.0
31.0 34.1 38.4
29.8
11.2 11.9 3.4
(2.7)
Gross Revenue Gross Profit EBITDA* Gross Revenue Gross Profit EBITDA*
Credit & Risk
Credit & Risk MarketSystem**
MarketSystem**
R$ MM R$ MM ** MarketSystem 2005 pro-forma
25.7
37.3
30.0
17.0
5.6 7.2
5.2
1.7 0.8 2.9
(3.7) (2.0)
Gross Revenue Gross Profit EBITDA* Gross Revenue Gross Profit EBITDA*
* Adjusted by the IPO’s expenses 9M05 9M06 22
23. Cash and Debt Position
Cash at the end of the period
Cash at the end of the period Gross Debt* // EBITDA last 12 months
Gross Debt* EBITDA last 12 months
R$ MM R$ MM
42.5
1.7x
1.5x
103.2
93.0
20.5
1.4
0.7
2003 2004 2005 Sept./06 2005 9M06
Gross Debt Gross Debt / EBITDA
* Bank debt + leasing
23
24. Capex and Dividends
Capital Expenditures
Capital Expenditures Dividend Payout*
Dividend Payout*
R$ MM R$ MM
43.6 11.8 11.4
20.7
5.6
15.6 4.0
12.5 10.9 3.2
9.8
2001 2002 2003 2004 2005 9M06 2001 2002 2003 2004 2005
% Net Profit 85% 49% 116% 31% 71%
* Includes Interest on Shareholder´s Equity 24
27. Strategy
OBJECTIVE
MAINTAIN AND EXPAND OUR LEADERSHIP AS AN INDEPENDENT COMPANY IN THE BRAZILIAN
MARKET OF CREDIT CARDS ADMINISTRATION, CALL CENTER, CREDIT PROCESSING,
COLLECTION AND LOYALTY PROGRAM SERVICES
Implementation Strategy
Focus on our
Business Model: Develop New Efficient Expand our
- Independence Business Management activities
- Diversification
Opportunities of our Operations rapidly
- Technology
- Specialization
27
28. Growth Opportunities
Entrance in
New Markets
Organic Cross-Selling
Market Growth Opportunities
Acquiring
New Clients
& Outsourcing
28
29. 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
CardSystem
• Implementation of Caixa Project– Feb/07
• Focus on Co-Branded Private Label Cards
• Leverage in business based on our competitive 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
29
30. 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 e Rubens Barbosa
Solid relationship track record with minority shareholders
Private Equity funds investment in 1997
30
31. High Level of Corporate Governance
Controlling Committee held by an Independent Member of the
Board of Directors
Code of Ethics / Disclosure and Stock Trading Policies
Dedicated Investor Relations Team
Development of a Stock Option program for the executives
Alignment of interests between administration and shareholders
31
32. Social Responsibility
10,051 employees (Sep/06)
CSU Institute
CSU University
Incentive to social and educative programs along with
Abrinq and other Institutions
Encouragement to voluntary work
First Trainee Program launched in 2006/2007
32
33. Conclusion: Attractive Investment Opportunity
Attractive Industry Growth
Market Leadership
Fundamentals
Impressive Growth In All
Strong Growth Prospects
Financial Metrics
Premium Diverse Client
Superior Corporate
Portfolio with Excellent
Governance
Relationship Track Record
33