2 q09 results presentation

CSU CARDSYSTEM SA

investidorescsu@csu.com.br

1

Disclaimer

This presentation may include forward-looking statements about future events or results according to
the regulations of 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 events expected by it, many of which are beyond
its control. Important factors that may lead to significant differences between actual results and the
statements of expectations about future events or results include the company’s business strategy,
economic conditions in Brazil and abroad, technology, financial strategy, client business development,
financial market conditions, uncertainty regarding the results of its future operations, plans, objectives,
expectations and intentions, among others. As a result of these factors, the actual results of the
Company may significantly differ from those mentioned 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 should be based on the veracity,
currency or completeness of this information or these opinions. No advisors to the company or parties
related to them or their representatives will be responsible for any losses that may result from the use
or the contents of this presentation.

2

Cards Market and CardSystem
Growth of the Cards Market
(million, end of May, source: ABECS)

Private Label + Credit Market CardSystem
129
112
82 Average Annual Growth - 3 years 21.0% 28.8%
71
59
157 183
91 105 128 Growth - 12 months 16.0% 22.0%

2005 2006 2007 2008 2009
Private Label Credit Base growth continues quicker than market
growth

CSU Card Base Performance Trend of replacement of private label
(million, end of June)
cards with hybrid cards

Opportunities generated by government
actions in the cards market (possible
21.6
14.2
17.7 dispersion of acquirers).
9.9 10.1

2005 2006 2007 2008 2009

Source: ABECS, CSU

3

CardSystem – Operational Data

Issue of cards in CSU's base
(million, end of june)

1.7 1.6
1.4 1.3 1.4

2Q08 3Q08 4Q08 1Q09 2Q09

6 million new cards issued in the past 12 months

Card issues resumed growth in the quarter the turbulent economic
scenario

Flex Cards with increasing share of total card issues

Seasonal growth in card issue expected in the second half.

Source: CSU

4

MarketSystem – Operational Data

MarketSystem - Processed Accounts
(million)

2.65 2.80
2.34 2.38
1.90 1.98 2.03 2.12
1.84

2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09

Hiring of executives focused on prospecting new clients and
accelerating the company’s growth

Managed accounts 30% up year-on-year;

100% organic growth in the period.

Source: CSU

5

CSU.Contact / Credit&Risk
Launch of CSU.Contact and the important Alphaview
project
New unit commences operations with the erstwhile
Telesystem’s scale but with a new concept in
providing contact center services
Alphaview will improve the quality of life of
operators, increase service levels and reduce
operating costs.
PAs in operation at CSU.Contact and Credit&Risk
3.582
4.095 3.880
3.322 3.596 3.593
2.996

3.476 3.445
2.546 2.218 3.314 3.288 3.238

776 748 619 435 282 305 344
4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09

PA's Credit&Risk PA's CSU.Contact

6

Cardsystem / MarketSystem
Gross Revenue Gross Profit and EBTIDA and EBTIDA
(R$ million) Gross Margin Margin
(R$ million, %) (R$ million, %)
24.5%
31.4% 22.4 %
62.3
18.7
21.7
50 15.3
16.5

35.5% 38.2%
32.9% 32.6%

2Q08 2Q09 2Q08 2Q09 2Q08 2Q09

Organic growth of the client portfolio;

Increase in average revenue per card due to the increased share of credit cards
over private label cards;

Economies of scale in card processing operations;

Higher gross margin;

7

CSU.Contact / Credit&Risk
Gross Revenue Gross Profit and EBTIDA and EBTIDA
(R$ million) Gross Margin Margin
(R$ million, %) (R$ million, %)

140.5%
244.6%
46.9 3.7 1.8
46.3

1.5 8.6% 0.5
4.3%
3.5% 1.2%

2Q08 2Q09 2Q08 2Q09 2Q08 2Q09

Stability of revenue levels;

Reduction of communication costs due to lower ICMS tax at the Recife
site and a decrease in active Contact Center services;

Higher gross margin and EBITDA margin.

8

Performance of Financial Indicators
Gross Revenue CSU (R$ million)

107.3 108.6
104.9
101.2
96.9

2Q08 3Q08 4Q08 1Q09 2Q09
EBITDA CSU (R$ million)

20.5 20.5
16.7 16.9
15.8

2Q08 3Q08 4Q08 1Q09 2Q09
EBITDA Margin (%)
20.6 20.4
17.5 17.7 17.4

2Q08 3Q08 4Q08 1Q09 2Q09
9

Results - Units
GROSS REVENUE
(R$ million)

61.3 62.4 62.3
55.6
50

46.9 45.6 44.9 46.3
42.6

2Q08 3Q08 4Q08 1Q09 2Q09

CardSystem / MarketSystem CSU.Contact / Credit&Risk

EBTIDA
(R$ million)

16.9 18.4 18.7
15.3 16.7

0.5 0.2 2.0 1.9
(0.2)

2Q08 3Q08 4Q08 1Q09 2Q09

CardSystem / MarketSystem CSU.Contact / Credit&Risk

10

CSU (Consolidated)
Gross Revenue Cost of Services Gross Profit and
(R$ million) Rendered Gross Margin
(R$ million, %)
(R$ million, %)
12.1% 4.0%
108.6 75.1
40.8%
72.1
96.9
25.4
18.1
25.3%
20.0%

2Q08 2Q09 2Q08 2Q09 2Q08 2Q09

Organic growth of units drove company growth by over 12%;

Economies of scale led to improved margins;

Strict cost control, tax incentives and new controls and policies for internal
spending.

11

CSU (Consolidated)
Operational Expenses EBTIDA and EBTIDA Net Result
Margin (R$ million, %)
(R$ million)
(R$ million, %)

13.6% 30.0% 125.3%
16.8 20.5
4.8
14.8
15.8
20.4%
2.1
17.5%

2Q08 2Q09 2Q08 2Q09 2Q08 2Q09

Expenses with the launch of new brand and staff increase led to higher
expenses in the quarter;

Higher revenue combined with appropriate management of costs and
expenses helped increase EBITDA by 30%;

CSU’s earnings per share was R$0.20 in 1H09.

12

Debt and Capex
Debt - R$ million Debt:
2Q09 2Q08 1Q09
Short term Debt 46.4 47.4 58.0 Cash flow in the period enabled net debt
Financing and Debt loan 36.5 29.7 47.4
Leasing 9.9 17.6 10.7 decrease from R$ 86.3 million to R$ 77.5
Long term debt 31.6 53.3 29.7 million;
Financing and Debt loan 20.0 4.7 17.9
Leasing 11.6 8.6 11.8 Extension of average debt term. Sum of
Gross Debt 78.0 100.6 87.7 R$23 million renegotiated at CDI rate +
(-) Cash 0.5 2.7 1.5 3.4%;
Net Cash (Debt) 77.5 98.0 86.3
Debt Composition CSU neither has loans indexed to the US
(R$ million, end of the period)
dollar nor derivatives contracts. Its debt
is in Brazilian reais and indexed to the
22.7 17.9
22.8 interbank (CDI) rate.
4,8 4.0
4.6 15.9
6.5
68.5 70.8 60.3 49.8

3Q08 4Q08 1Q09 2Q09

Leasing Overdraft W. Capital

13

Debt and Capex
Debt:
Impact of Monetary Policy on Cost of Debt
The graph shows the impact of
the interbank rate (CDI)
137
117
115 variations in recent months on
100 the Company's financial
112 125 102
72 expenses;
96 91 89 75 Drop in the CDI rate, combined
3Q08 4Q08 1Q09 2Q09
with the debt reduction, helped
to reduce financial expenses;
Total Gross Debt - Closing Financial Cost - CDI
CDI - Period Monthly Average

CAPEX:
Capex - R$ million

Recurring investment in the 2Q09 2Q08 Chg. 1Q09 Chg.
Systems (SW and HW) 6.8 4.4 53.9% 12.4 -45.5%
development and customization of the
Other 0.0 0.8 -97.6% 0.5 -96.3%
Super VisionPlus software; Capex 6.8 5.3 28.2% 12.9 -47.5%

Investments in the Alphaview project.

14

Key Strategies for 2H09

Maintain investments to ensure growth of all of the Company’s
units;

Consolidate recent changes in CSU’s sales and relationship
areas;

Finish the new organizational structure of CSU.Contact and
Credit&Risk, migrating the workstations from the old site to
Alphaview;

Maintain cost and quality levels.

15

CSU CardSystem S/A

Questions and
Answers
Décio Burd
Telephone: (0xx55 11) 3030-3821
Email: investidorescsu@csu.com.br
Site: www.csu.com.br/ri

16

2 q09 results presentation

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