2. 3Q12 summary
• Improvement in profitability margins in 3Q12 Y-o-Y: net margin of 6.0%
(+1.9 p.p.) and EBITDA margin of 17.8% (+1.8 p.p.);
• Consistent expansion of gross margin of the CSU Contact unit, reaching
9.8% in 3Q12;
• Net income in 3Q12 reaches R$ 5.4 million, an increase of 28.8% Y-o-Y.
• Commercial strategy focused on the expansion and diversification of the
revenue streams;
• CSU consolidated itself as a complete solutions provider to manage and
generate electronic transactions, enhancing the potential synergy among
its activities and the markets in which it operates.
• CSU Investors’ Day;
CARD3
• Non deal roadshow in New York and Boston, seeking to put CARD3
back on the radar screen of foreign investors.
2
3. Strategic driver
• Focus on CSU’s commercial expansion: enlarge addressable markets, operating in new
segments and leveraging existing assets
• Growth recovery: conclusion of the HSBC card processing contract in 2012 –
corresponding to about 15% of CSU’s annual sales. Its migration temporarily impacts the scale
of the electronic payment business until organic growth and the startup of new clients will
recover the level of results generation.
Launch, until the end of 2012, of products in fast growing markets
HIGH TECHNOLOGY WITH PROFITABILITY
3
4. Outlook for our markets
Traditional
means of
payment
Electronic
means of
payment
Electronic
transactions
CSU is ready to act as a complete service provider in the business of
management and generation of electronic transactions
4
5. Development of innovative services
New products with effective distinguishing characteristics are in the pilot stage, and will be
rolled out in 2012, integrating the unique expertise and capability of the various business
units of CSU, with priority to:
Value added solutions using latest generation technology
Compliant to the needs and demands of the market
New market verticals
5
6. C360: CSU’s competitive edge
Web platform composed of a database, campaign managers and online and
off-line multiple contact channels;
Turn-key solutions, combining intelligence, technology and process
automation;
Designed to increase contact efficiency and generate cost reductions.
CSU is the only company in the market to offer an integrated solution.
Intelligence Marketing Automation Contact Channels
Data Modeling/ Campaign Multiple
Treatment scoring Management Channels
Automated Workflow 6
7. C360 Market Potential
Others
Collections and Telemarketing are the 6%
major growth drivers in the contact center Collections Customer
market (19% and 13% p.a., respectively) 35% Care
43%
Addressable Market: R$ 7.5 billion Tele
marketing
16%
Opportunity: to expand the scope
of CSU services, with a differentiated
business model, in new operations
and segments.
Verticals Services
Finance Collections and
Shift towards “technology intensive” Anti-attrition
vs. “labor intensive” Convergence
Sales &
Retail
Acquisition
Insurance
Relationship
Utilities
7
8. CSU Platform: Partner Hub
PARTNERS HUB – WEBSERVICE STRUCTURE
MULTI DISCOUNT COALITION E-BUSINESS E-BILLING
CATALOGUE SHOPPING NETWORKS
Loyalty and Incentives Closed loop e-commerce
Open loop e-commerce (...)
Opportunity: expand the scope of CSU MarketSystem solutions well beyond
those of credit card loyalty programs.
• More than 25 loyalty programs managed in 10 years
• 6 million loyal clients
• + 30 billion points issued
• 200,000 awards delivered/year
• 500,000 call center calls/year
8
9. Moment for CSU
MarketSystem expansion
TWO COMPLEMENTARY REVENUE LINES
MARKETING SERVICES AWARDS
Reward & Recognition
Financial and Strategic Planning,
Implementation of Program
Management for Acquisition, Sales And
Loyalty Programs
Solutions for awards and recognition
for loyalty programs
• Processing
• Intelligence/Management
• Multi-catalogue of awards
• Data Management
• Complete solution for Loyalty
• Data Analysis
Travel
• Multichannel Communication
• Digital Solutions (Collective
• Presence in Social Networks
Buying, On-Line Auctions)
• Advantage Networks
Technology Platforms: Loyalty System
• Vouchers
III, BI (Cognos), Statistical Modeling
• Social Networks
(SPSS), Campaign Management (Unica),
Relationship Portals, E-mail Marketing, SMS,
Voicer
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10. State-of-the-art technology:
Datacenter Tier III
• Designed to fully attend the clients that need Servers, IT Infrastructure,
HOSTING Telecommunications and Internet;
• The vendor assumes responsibility for IT operations.
• A kind of service through which the client migrates all of his servers and
COLOCATION services to make use of the data center infrastructure;
• The client continues to be responsible for IT.
• Hardware resources can be virtualized, divided and shared among
CLOUD various environments and operating systems and executed
COMPUTING simultaneously;
• This service type offers scalability and speed to meet clients’ needs.
• A business model where the vendor assumes all of the clients’ IT
FULL services and processes;
OUTSOURCING • This service maximizes the ability of the client to focus on its core
business.
10
11. State-of-the-art technology:
Datacenter Tier III
Datacenter Market – Revenues 2011
(US$ billion)
6,0 Growth 2011-2015
5,6
5,0 0,9 CAGR %
0,9 6.3%
4,6
4,1 0,8
3,7 0,8
0,7
0,7
4,7 5,1
3,8 4,2
3,4 10.7%
3,0
2010 2011 2012 2013 2014 2015
Hosting Full Outsourcing
Opportunity: to develop new businesses based on
competences and capability of existing assets, with the
generation of new and scalable revenues.
Transfer of the current back-up datacenter to Alphaview/Barueri.
11
12. Relevant expansion of 28.8% in Net Income
Gross Revenue Gross Revenue Share
(R$ thousand) ( % of Total Revenue)
- 2.3%
58%
55%
319,326 312,099
50%
- 9.1%
50%
42% 45%
109,811 99,865
3Q10 3Q11 3Q12
3Q11 3Q12 9M11 9M12 CSU CardSystem CSU Contact
EBITDA x EBITDA Margin Net Profit and Net Margin
(R$ thousand and % of Net Revenue) (R$ thousand and % of Net Revenue)
+ 21.6% + 31.4%
56,760 20,000
19,036 40
0 100.0%
18,000 35
0 46,683 90.0%
16,000 14,485
- 0.6% 80.0% + 28.8% 30
70.0% 14,000
0 25
60.0% 12,000
0 50.0% 10,000 20
16,341 16,242 40.0% 8,000 5,435 15
0 19.8% 30.0% 6,000 4,220
15.7% 6.6% 10
0 20.0% 4,000 4.9%
10.0% 5.
16.0% 17.8% 2,000
4.1% 6.0%
0.0% - 0.
3Q11 3Q12 9M11 9M12 3Q11 3Q12 9M11 9M12 12
13. Performance in electronic payments
Billed and Registered Cards
(in millions of units)
• The CSU CardSystem business unit is
25.3 23.8 implementing 2 new projects: Banco do
22.6 22.9 20.7 20.5 20.5
19.4 19.2 19.0 Nordeste and Banpará;
• During 3Q12, 803 thousand new cards
were issued by CSU existing clients;
3Q11 4Q11 1Q12 2Q12 3Q12 • Gross profit contraction is explained by
revenue mix changes.
Billed cards Registered Cards
Gross Revenue Gross Profit and Gross Margin
(R$ thousand) (R$ thousand and % of Net Revenue)
+ 7.2%
- 7.2%
+ 6.4%
80,000 68,878 180
70,000 - 16.8% 63,934 160
- 0.9% 160,670 170,894 140
60,000
50,000 120
100
40,000
46.5% 80.0
30,000 23,242 19,336 41.1%
55,332 54,810 60.0
20,000 40.0
10,000 45.6% 20.0
39.1%
- 0.0%
3Q11 3Q12 9M11 9M12 3Q11 3Q12 9M11 9M12 13
14. Performance in contact center
Number of Workstations
(units)
• Focus on profitability drives sales efforts for
selective growth;
4,207 4,090 4,163 4,016 4,050
• Strict cost management, orientation for
operating efficiency and payroll tax exemption
295 340 409 272 306
provided a record gross margin of 9.8% in
3Q11 4Q11 1Q12 2Q12 3Q12 3Q12.
Training Total
Gross Revenue Gross Profit and Gross Margin
(R$ thousand) (R$ thousand and % of Net Revenue)
9.8% 8.9% 12
- 11.0% 7.8%
28,000 7.
40.0
23,000
- 17.3% 158,656 4.2% + 88.1% 20.0
2.
141,205 18,000
+ 1.7% 0.0%
13,000
11,644 -3
-20.
54,479 6,191 -40.
45,054 8,000
(2,000) 4,003 4,072 -8
-60.
3,000 3Q11 3Q12 9M11 9M12 -80.
(2,000) -100
3Q11 3Q12 9M11 9M12
3Q11 3Q12 9M11 9M12 14
15. Capital Expenditures & Cash Balance
Capex
(R$ millions) • Capital expenditures of R$ 4.7 million
42.3
in 3Q12, totaling R$ 15.5 million in
9M12
28.5 18.6
8.6 15.5 •The concentration of the contact
23.6 3.4 center operation in the sites of
19.9
12.2 Alphaview and Recife contributed to
lower investments
2,010 2,011 9M12
CSU CardSystem CSU Contact
• New tools and products for the
revenue streams diversification are in
trial, which launch is set to take place
until the end of this year.
• At the end of 3Q12, the cash position of the Company amounted R$ 29.6 million,
33.8% higher than 3Q11.
15
16. Strategic positioning to maximize
return on assets
Competitive
advantages in the Expansion to new
electronic market verticals
transactions market
Innovative Solutions Maximization of
with high value added processing capacity with
integrating intelligence Datacenter Tier III
and contact channels
Consistent growth with
gains in profitability of
core business
16
17. Additional Information
Mônica Hojaij Carvalho Molina
Antonio N. Donato Filho
Investor Relations
Tel: +55 (11) 2106-3821
E-mail: ri@csu.com.br
Web Site: www.csu.com.br/ri
This material is the property of CSU CardSystem S.A., and any partial or total reproduction without the Company’s written
approval is prohibited. All rights reserved. Opinions expressed in this document are subject to change without prior notice.
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