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. CardSystem/MarketSystem – Operational data
CSU – Registered Cards
at the end of September (Million)
15,6
2004 to 2007
CAGR (CSU) of 31%
11,4
CAGR (Market) of 19%
10,1
7,0
6,3
2003 2004 2005 2006 2007
According to the increase of new cards, CSU ended the quarter
with 15.6 million cards in base;
In the last 12 months the business market evolved 20.2%. While,
CSU 36.8%.
4
5. CardSystem/Marketsystem – Operational Data
CSU Cardsystem – New cards entry CSU Marketsystem – Managed accounts
(Thousands) (Million)
1.860
1.640 1.96
1.417 1.90
1.306
1.84
1.033
1.77
1.70
4Q06 1Q07 2Q07 3Q07 4Q07
4Q06 1Q07 2Q07 3Q07 4Q07
New cards volume raised from 4.5 million in 2006 to 5.9 million in 2007 (+31.1%).
We celebrated and implemented a strategic cards contract with Carrefour;
Omni Financial project implementation;
Contract with an important retail financial company to be implemented by 4Q07;
We won the public tenders held by the banks Nossa Caixa and Banrisul;
HSBC/Losango continue their growing trends;
In the Marketing and Loyalty Programs, CSU has been growing continuously;
5
6. CAIXA PROJECT
Platform’s Development activities finalized in 2Q07
Caixa and CSU are running on preparatory activities to implement a
test plan
Expectation of project implementation and card base migration during
1H08
6
7. TeleSystem/Credit&Risk
TeleSystem and Credit&Risk
Financial turnaround reached in the period;
Slightly reduction in the number of Work Stations in operation in September ’07;
thousands
3,930 3,872
2Q07 3Q07
Discontinuation of unprofitable contracts;
The units maintain the portfolio diversification strategy, with focus on smaller
operations with greater stability;
Breakeven reached through substantial operational cost reduction and gains in
productivity of approximately R$2 million per month as showed below
R$ million (accumulated value) 2.0
1.5
0.6
7
August September October
11. CSU (Consolidated)
Operational Expenses EBITDA (R$ million) and EBITDA Net Results (R$ thousand)
Expenses (R$ thousands) Margin (%) 1.294
na
-0.8 %
14.3 %
-7.9 % 28.5 % (247)
15.742 (255) (247)
15.617 15.617 111.3 %
13.666 15.245
12.888
11.865 11.865 3.0 %
94.2%
5.614
15% (4.286)
14% 6.9% 14% 17.8%
3Q06 3Q07 2Q07 3Q07 3Q06** 3Q07 2Q07 3Q07 4T07* 3Q06 3Q07 2Q07 3Q07 4T07*
Operating expenses with slightly reduction in the 3Q07, despite restructuring expenses of
R$1.1 million;
Net Income: Significant expansion in the 3Q07, growth expectation in 4Q07.
* Forecast according to guidance of 11/12/07
* * Excludes IPO Expenses 11
12. CardSystem/Marketsystem
Gross Revenue Gross Profit (R$ million) and EBITDA (R$ million) and EBITDA
(R$ million) Gross Margin (%) Margin (%)
+5.5% +9.2%
+ 25.9% + 22% 17.9% + 32%
15.2 15.2
41.9 41.9
39.8 38.4 13.7 13.7
11.6
12.0 12.4 10.4
31.8% 35.1% 29.2% 35.1%
33% 38.8% 34.9% 38.8%
3Q06 3Q07 2Q07 3Q07 3Q06 3Q07 2Q07 3Q07 3Q06 3Q07 2Q07 3Q07
Revenue growth of Cardsystem/Marketsystem;
Increase of gross margin in relation to 3Q06 and 2Q07;
Gross profit and EBITDA show substantial growth in relation to previous quarters;
12
13. TeleSystem and Credit&Risk
Gross Profit (R$ million) and EBITDA (R$ million) and EBITDA
Gross Revenue Margin (%)
1.9
Gross Margin (%)
(R$ million)
- 93.5%
- 244.7%
- 7.7% 3.8%
- 0.1%
na 61.5%
52.9 48.9 0.1 0.1 1.3
48.9 48.9
0.3% 0.3% 2.6%
-4%
-5.7% -4% - 10.5%
(2.6)
(1.8) (1.8)
(4.7)
3Q06 3Q07 2Q07 3Q07 3Q06 3Q07 2Q07 3Q07 3Q06 3Q07 2Q07 3Q07
Gross profit maintained the same level as 2Q07;
Cost reduction plan resulted on positive impact reaching breakeven in gross profit. See
monthly trade:
0.6 0.5
Gross Profit 3Q07
Jul 07 Aug 07 Sep 07
R$ million
13
(1.1)
14. Indebtedness and Investments
Debt - R$ thousand
3Q07 3Q06 2Q07 Indebtedness
Short Term 48.9 42.1 40.8
Debt 24.0 17.2 23.1 Increase of R$19 million in total debt
Leasing 24.9 24.9 17.7
for investments on cards area;
Long Term 59.1 50.9 45.9
Debt 42.2 23.9 21.4
Leasing 16.9 27.0 24.5
Improved indebtedness profile for
Gross Debt 108.1 93.0 86.7
short to long term
(-) Cash 3.5 42.5 1.1
Net Cash (Debt) 104.6 50.6 85.6
CAPEX (R$MM)
CAPEX 20
15.1
14.5 14.5
Reduction of investments in Caixa’s 16
11.2
3.8 3.8
operating platform; 12
4.0
7.4
8
Investments in cards area to support 4 7.1
10.3
6.8
10.3
accelerated growth. 0
3Q06 3Q07 2Q07 3Q07
Sistems (SW e HW) Caixa Project Others
14
15. Perspectives and Recent Facts
New card projects under study by different clients, increasing the potential of
new business opportunities;
Cost and operating expenses reduction plan to be consolidated in the 4Q07;
Telesystem/Credit&Risk financially-focused management program promoting
significant improvements;
Positive perspective for growth in revenues and profitability. Anticipated
through the Company’s 4Q07 guidance:
Quarter Information – CSU (R$ million)
1Q07 2Q07 3Q07 4Q07 *
Gross Revenue 78.4 87.4 90.9 92.7
EBITDA 5.3 5.6 11.9 15.2
Net Profit (5.7) (4.3) (0.2) 1.3
* Forecast
15