1 q10 results presentation
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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.
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8.610.4
13.0
17.6
20.8
24.6
1Q05 1Q06 1Q07 1Q08 1Q09 1Q10
Cards in CSU's Base (million)
102 124 153 179 20470
87109
128141
172211
262307
345
1Q06 1Q07 1Q08 1Q09 1Q10
Growth of the Cards Market(million - source: ABECS)
Private Label CréditoCredit
Cards Markets and CardSystem
Private Label + Credit Market CardSystem
Average Annual Growth (3 years) 19.2% 26.5%
Growth (12 months) 12.4% 18.4%
Base growth continues quicker than
market growth ;
Trend of replacing private label cards
with hybrid cards.
Opportunities from the opening of the
Acquirer market.
3
12.4%
18.4%
CardSystem – Operational Data
Issue of more than 6.4
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
1.11.4
1.7 1.61.3 1.4
2.4
1.5
1.1
1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10
Issue of Cards in CSU's Base (million)
10%
90%
Flex CardsMar-2009
16%
84%
Flex CardsMar-2010
Flex Cards No Flex Cards
MarketSystem – Operational Data
100% organic growth in the period;
4.9% growth compared to 4Q09;
Capture of three new clients for provision of
Business Intelligence and Loyalty services.
5
2.72.8
3.1
2.4 2.4
1Q09 2Q09 3Q09 4Q09 1Q10
MarketSystem - Processed Accounts(million)
CSU.Contact
Conclusion of the migration of operations to the
Alphaview site in February;
The goal of Alphaview is to raise the quality of
services provided and reduce operating costs;
In addition to transferring part of the operations,
administrative areas such as purchasing, Human
Resources and treasury were also transferred.
6
4.539 4.520 4.506 4.225 4.002 3.972 3.934
3.494 3.268
1Q08 2QT08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10
Work Stations in Operation(Source: CSU)
18.4
20.8
1Q09 1Q10
EBITDA e EBITDA Margin(million, %)
20.9
25.3
1Q09 1Q10
Gross Profit and Gross Margin
(million, %)
62.4
64.2
1Q09 1Q10
Gross Revenue(million)
CardSystem
Revenue increase through organic growth of the card base;
Gross profit and margin growth by reducing the company’s costs;
Gains from economy of scale at card processing operations also helped
improve margins.
2.9%
21.3%
12.8%
7
36.3%
42.6%
32.1%
35.0%
2.0
0.5
1Q09 1Q10
EBITDA and EBITDA Margin
(million, %)
2.9
3.1
1Q09 1Q10
Gross Profit and Gross Margin
(million, %)
44.9 40.7
1Q09 1Q10
Gross Revenue(million)
CSU.Contact
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;
Gross Profit and Margin Growth;
The higher operating expenses led to a decline in EBITDA.
-9.3%
8.9%
8
-77.0%
4.9%
1.2%6.8%
8.2%
Performance of Financial Indicators
9
101.2 104.9 107.3 108.6 106.2 104.3 105.0
3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10
Gross Revenue CSU(million)
16.7 16.9 20.5 20.5 21.3 16.6 21.2
3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10
Ebitda CSU(million)
17.7% 17.4% 20.6% 20.4% 21.6% 17.2% 21.8%
3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10
Ebitda Margin CSU(%)
Results - Units
10
55.661.3 62.4 62.3 64.9 64.2 64.2
45.6 43.6 44.9 46.341.4 40.1 40.7
3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10
Gross Revenue CSU(million)
CardSystem CSU.Contact
16.9 16.7 18.4 18.7 20.617.8
20.8
-0.2 0.2 2.0 1.8 0.8 -1.2 0.5
3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10
EBITDA CSU(million)
CardSystem CSU.Contact
75.6 68.9
1Q09 1Q10
Services Rendered(million)
107.3 105.0
1Q09 1Q10
Gross Revenue(million)
23.7
28.4
1Q09 1Q10
Gross Profit and Gross Margin
(million, %)
CSU (Consolidated)
Higher share of electronic payment methods in revenue;
Gross Profit and Margin Growth;
The group’s operating margins improved thanks to: (i) result-oriented
management, (ii) new controls, (iii) new policies, (iv) scale gains.
-2.2%
19.8%-8.9%
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23.9%
29.2%
4.6
6.2
1Q09 1Q10
Net Financial Result(million)
20.5 21.2
1Q09 1Q10
EBITDA and EBITDA Margin
(million, %)
16.6 19.1
1Q09 1Q10
Operational Expenses(million)
EBITDA grew by 3.8% which was limited by increased expenses;
Significant 34.7% growth in Net Income versus 2009;
EPS: R$ 0.13* in the quarter (excluding reserves);
3.8%15.1%
34.7%
CSU (Consolidated)
12
20.6%21.8%
Debt and Capex
Debt:
Period cash flow enabled a reduction in net debt from R$ 86.3 million to
R$ 49.2 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
Short Term Debit 20.7 58.1 -64.4% 29.9 -30.8%
Financing and Debt loan 10.5 47.4 -77.8% 19.3 -45.6%
Leasing 10.2 10.7 -4.7% 10.6 -3.8%
Longo prazo 41.9 29.7 41.1% 36.6 14.5%
Financing and Debt loan 24.3 17.9 35.8% 19.9 22.1%
Leasing 17.6 11.8 49.2% 16.7 5.4%
Gross Debt 62.6 87.7 -28.6% 66.5 -5.9%
(-) Cash 13.4 1.5 793.3% 11 21.8%
Net Cash (Debt) 49.2 86.2 -42.9% 55.5 -11.4%
Debit - R$ thousand 1Q10 1Q09 Chg. % 4Q09 Chg. %
Debt and Capex
CAPEX:
Investments 41.9% 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.
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Systems (SW and HW) 4.4 7.9 -44.6% 5.6 -21.1%
Hardware 1.2 4.5 -73.2% 0.6 112.2%
Alphaview 0.9 - N/A 2.7 -66.9%
Other 1.0 0.5 99.0% 0.3 268.9%
Capex 7.5 12.9 -41.9% 9.2 -18.6%
Capex - R$ million 4Q09 4Q08 Chg. % 3Q09 % Chg.
Main Strategies for next quarter
Maintenance of investments to ensure growth in all the
Company’s units;
Entry into Acquire segment;
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.
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Questions & Answers
Décio Burd
Phones: (55 11) 3030-3821
E-mail: [email protected]
Site: www.csu.com.br/ri