4 q09 results presentation
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4 q09 results presentation
- 1. CSU CARDSYSTEM S.A. investidorescsu@csu.com.br
- 2. 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
- 3. Cards Markets and CardSystem Growth of the Cards Market (millions - source: ABECS) 12.0% Private Label + Credit Market CardSystem 333 297 Average Annual Growth (3 years) 19.2% 26.5% 237 136 197 124 165 93 Growth (12 months) 12.0% 21.2% 79 68 173 196 118 144 97 2005 2006 2007 2008 2009 Private Label Credit Base growth continues quicker than market growth ; Cards in CSU´s Base (million) 21.2% Trend of replacing private label cards with 24.3 hybrid cards. 20.1 16.6 Opportunities from the opening of the 12.1 9.0 Acquirer market. 4Q05 4Q06 4Q07 4Q08 4Q09 3
- 4. CardSystem – Operational Data Issue of Cards in CSU´s Base (millions) 2.4 1.7 1.6 1.4 1.5 1.3 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 Issue of more than 6.5 million new cards in the last 12 months; Flex Cards with increasing share of total card issues; Room still exists for growth in the coming months. 4
- 5. MarketSystem – Operational Data MarketSystem - Processed Accounts (millions) 3.1 2.8 2.7 2.3 2.4 2.4 20 2.0 2.1 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 Removal of 840 thousand accounts due to the end of the Oi program; 100% organic growth in the period. 5
- 6. CSU.Contact Alphaview project, a new Contact Center concept; CSU is already reaping the rewards from the new Contact Center; Alphaview will improve operators’ quality of life, improve service standards and reduce operating costs. Work Stations in Operation (Source: CSU) 3,934 3,476 3,445 3,494 3,314 3,288 3,238 2,546 2,218 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 6
- 7. CardSystem Gross Revenue Gross Profit and EBTIDA and EBTIDA (millions) Gross Margin Margin (millions, %) (millions, %) 4.7% 64.2 17.8 31.1% 27.0 6.4% 20.6 61.3 16.7 42.1% 27.7% 33.6% 27.3% 4Q08 4Q09 4Q08 4Q09 4Q08 4Q09 Economies of scale in card processing operations; Maintenance of the policies to control costs; Development of higher added-value agreements improves gross margin. 7
- 8. CSU.Contact Gross Revenue Gross Profit and EBTIDA (millions) Gross Margin (millions) -8.0% (millions, %) N/A 43.6 0.2 88.8% 2.0 40.1 4Q08 4Q09 1.0 4.9% 2.4% (1.2) 4Q08 4Q09 4Q08 4Q09 Contraction in revenue due to the lower volume of services in customer service centers; Reduction of 10.8% in unit costs, due to lower services volume, renegotiation of agreements with suppliers and the consolidation of the call center sites; The higher operating expenses led to a decline in EBITDA. 8
- 9. Performance of Financial Indicators Gross Revenue CSU (million) 104.9 107.3 108.6 106.2 104.3 101.2 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 EBITDA CSU (million) 20.5 20.5 21.3 16.7 16.9 16.6 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 EBITDA Margin (%) 20.6% 20.4% 21.6% 17.7% 17.4% 17.2% 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 9
- 10. Results - Units Gross Revenue (million) 62.39 62.27 64.86 64.2 61.31 55.59 45.57 44.92 46.34 43.57 41.36 40.1 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 CardSystem CSU.Contact EBITDA (million) 18.7 20.5 16.9 16.7 18.4 17.8 0.2 2.0 1.9 0.7 (0.2) (1.2) 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 CardSystem CSU.Contact 10
- 11. CSU (Consolidated) Gross Revenue Gross Profit and Gross Cost of Services (millions) Margin Rendered -0.6% (millions, %) (millions, %) 104.9 -10.7% 33.9% 29.0 75.6 104.3 21.6 67.5 27.8% 20.6% 4Q08 4Q09 4Q08 4Q09 4Q08 4Q09 Higher share of electronic payment methods in revenue; The group’s operating margins improved thanks to: (i) result-oriented management, (ii) new controls, (iii) new policies, (iv) scale gains. 11
- 12. CSU (Consolidated) Operational EBTIDA and EBTIDA Net Financial Result Expenses Margin (million) (million) (million, %) -7.2% -2.0% 89.5% 3.6 20.8 16,9 16.6 1.9 19.3 16.1% 15.9% 4Q08 4Q09 4Q08 4Q09 4Q08 4Q09 EBITDA and Net Income were impacted by a provision for doubtful accounts of R$3.68 million for accounts receivable of R$11.0 million related to the first phase of the CEF project, with the aim of mitigating risks; Excluding the effects of the provision for doubtful accounts, EBITDA and Net Income were R$20.2 million and R$7.3 million, respectively; EPS: R$0.37* in 2009 (excluding reserves); 12
- 13. Debt and Capex Debt - R$ thousand 4Q09 4Q08 3Q09 Short Term Debt 29.9 62.5 35.7 Financing and Debt loan 19.3 49.7 24.2 Leasing 10.6 12.8 11.5 Long Term Debt 36.6 34.0 40.1 Financing and Debt loan 19.9 25.4 25.6 Leasing 16.7 8.6 14.5 Gross Debt 66.5 96.5 75.8 (-) Cash 11.0 1.6 8.6 Net Cash (Debt) 55.5 95.0 67.2 Debt: Period cash flow enabled a reduction in net debt from R$ 95.0 million to R$ 55.5 million; CSU has no dollar-indexed debt nor does it make use of derivatives contracts. All debt is in Brazilian reais and indexed to the interbank (CDI) rate. The decline in money market rates (CDI) combined with the lower debt balance led to lower financial expenses; 13
- 14. Debt and Capex Capex - R$ million 4Q09 4Q08 Chg. % 3Q09 % Chg. Systems (SW and HW) 5.6 3.2 74.9% 4.6 21.8% Hardware 0.6 2.2 -73.9% 0.3 116.5% Alphaview 2.7 - n.a 6.3 -56.7% Other 0.3 0.7 -61.1% 0.6 -55.1% Capex 9.1 6.1 50.6% 11.7 -22.1% CAPEX: Investments 50.6% higher in the period. Customization of the payment means platform (Vision Plus); Development of the Acquirer processing module; Maintenance of Investments in the Alphaview project. 14
- 15. Main Strategies for next quarter Maintenance of investments to ensure growth in all the Company’s units; Consolidation of the recent changes in the commercial and relationship areas at CSU; Resumption of growth in CSU.Contact; Maintenance of the new levels of costs and quality. 15
- 16. Questions & Answers Décio Burd Phones: (0xx11) 3030-3821 E-mail: investidorescsu@csu.com.br Site: www.csu.com.br/ri