Upload
csuriweb
View
108
Download
1
Embed Size (px)
Citation preview
1
2Q07 Conference
Call of Results
August 16, 2007
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.
3
Credit Card Market and CardSystem
CardSystem´s card base average growth was 37.6% in 2Q07 over the 2Q06, from 10.1 million to 13.9 million, higher variations than those in market;
In July, 2007, CSU reached the mark of more than 745 thousand issued cards;
Growth in Losango and Nossa Caixa Card Base. In May 2007, Nossa Caixa achieved the volume of 1.5 million issued Credit Cards;
In August, the Brazilian Credit Card market should have a revenue of R$ 15.4 billion (21.4% higher than in 2Q06).
Source: ABECS and other market sources
New Card Base
746
468468481339293401
0200400600800
Jan Feb Mar Apr May Jun Jul
thou
sand
s
Brazilian Market´s Cards EvolutionAt the end of the period - in million
149 176 191
87102 11670
83
56
jun-05 jun-06 jun-07
Debt Private Label Credit
292348
390
4
THE CAIXA PROJECT
The platform for processing was delivered to Caixa's operating environment in June;
The company is studying with Caixa the additional investments required;
A plan will be devised for testing the customization and functionalities. Only after this phase is complete, will testing start for card base migration.
5
TeleSystem and Credit&Risk / MarketSystem
TeleSystem and Credit&Risk
At the end of the 2Q07, 3.930 workstations (PAs) were in operation;
Improved efficiency in the 2Q07, freeing 909 work stations for new negotiations;
Improvements in TeleSystem operational results due to cost reductions and efficiency gains in June;
Renewal of CSU’s certification for its Quality Management System – ISO 9001:00 in June 2007.
MarketSystem
Average of 1.8 million relationship program accounts showing continuous growth in June.
6
CSU Gross Revenue
30.1 33.6
33.8 37.2
9.611.75.04.8
1Q07 2Q07
28.8 33.6
42.5 37.2
10.2 11.78.7 4.8
2Q06 * 2Q07
R$ million
R$ 87.4
R$ 78.4
+11.4%R$ 87.4R$ 90.2 -3.1%
CardSystem TeleSystem Credit&Risk MarketSystem
7
10.69.5
7.59.5
2Q06* 2Q07 1Q07 2Q07
10.010.9
7.0
10.9
2Q06 * 2Q07 1Q07 2Q07
33.628.8
33.6 30.1
2Q06* 2Q07 1Q07 2Q07
CardSystem
Gross Revenue (R$ million) EBITDA (R$ million) and EBITDA Margin (%)
+11.7%+16.9%
Gross Profit (R$ million) andGross Margin (%)
25.1%35.3% 35.3%38.6%
+ 57.3%+ 9.2%
27.0% 30.7%
+ 26.8%-10.4%
30.7%40.9%
Strong revenue growth compared to 1Q07 (+11.7%) and 2Q06 (+16,9%) due to card base growth in the period;
Gross Profit and EBITDA growth outpaced that of Gross Revenue in 1Q07, showing operating efficiency. When compared to 2Q06, costs rose 26% and the card base 37%.
8
TeleSystem and Credit&RiskGross Revenue (R$ million)
1.8
(4.8)(3.3)
(4.8)2Q06* 2Q07 1Q07 2Q07
3.3
(2.6)
(1.2)
(2.6)2Q06 * 2Q07 1Q07 2Q07
49.043.3
49.052.7
2Q06* 2Q07 1Q07 2Q07
EBITDA (R$ million) and Gross Margin (%)
Gross Profit (R$ million) andGross Margin (%)
TeleSystem´s commercial performance still unsatisfactory;Credit&Risk growth in Net Revenue was 15.4% when compared to 2Q06; Seasonal effect impacted operating revenue, which rose 10.2% when compared to 2Q06 in TeleSystem and 22.9% in Credit&Risk;TeleSystem´s operation still in the process of recovering profitability, reducing costs and expanding its client base to use its full installed capacity.
2.9%
- 5.7%
6.6%
- 5.7%
+ 13.0%- 7.1%
- 179.7%
- 123.8%
- 42.5%
- 367.4%
10.5% - 8.3%
3.6%
10.5%
9
MarketSystem
1.4
0.91.2
0.9
2Q06* 2Q07 1Q07 2Q07
1.51.81.5
2.3
2Q06 * 2Q07 1Q07 2Q07
4.8
8.7
4.8 5.0
2Q06* 2Q07 1Q07 2Q07
32.3% 38.1% 32.3%27.0%
- 33.9% - 17.9%
EBITDA (R$ million) and EBITDA Margin (%)
Gross Profit (R$ million) andGross Margin (%)
Gross Profit (R$ million)
24,6%17,1% 18,9%18,9%
- 25.9%- 4.1%
- 44.7%
- 38.9%
The end of a contract in 3Q06 was still affecting revenue performance in 2Q07;
In comparison with 1Q07, reduction in revenue performance was basically due to the lower volume of rewards delivered.
10
CSU (Consolidated)
Gross Profit (R$ million) Cost of Service Rendered (R$ million)
9.808
7.600
9.808
15.551
2Q06 * 2Q07 1Q07 2Q07
71.312
65.211
71.31268.167
2Q06* 2Q07 1Q07 2Q07
87.39490.184 87.39478.440
2Q06* 2Q07 1Q07 2Q07
+9.4 %+4.6 %-3.1 % +11.4 %
Gross Profit (R$ million) and Gross Margin (%)
29.1 %
-36.9 %
11
(44)
(4.286) (4.286)
(5.708)2Q06 * 2Q07 1Q07 * 2Q07
5.327 5.6145.614
13.812
2Q06* 2Q07 1Q07 2Q07
15.80815.742
16.247
15.742
2Q06 * 2Q07 1Q07 2Q07
24.9 %
CSU (Consolidated)
Net Result (R$ million)General and Administrative Expenses (R$ million)
EBITDA (R$ million) and EBITDA Margin (%)
-59.4 %
5.4 %
-3.1 %
-0.4 %
Operating expenses in 2Q07 were smaller than 2Q06 and 1Q07. The highlight was the significant reduction in net financial expenses indicating an improved management performance;
EBITDA reached R$ 5.6 million during 2Q07, equivalent to 6.9% of net revenue;
Net Result: 24.9% net loss reduction in comparison with 1Q07.
16,5% 6,9% 6,9%7,3%
12
Indebtedness and Capex
CAPEX
CSU investments in CAPEX were allocated to Caixa´s Project (R$ 7.4 million) and in projects aimed at maintaining and expanding CardSystem operation.
Indebtness
The indebtedness growth in 2Q07 compared with 1Q07 due to CAPEX of R$16.3 million.
11.88.0 6.1 8.0
7.45.4
7.42.7
0.9
1.4
0.91.6
2Q06 2Q07 1Q07 2Q07
Sistems (SW e HW) Caixa Project Other
CAPEX (R$ million)
12.916.1
16.316.3 26.5 %1.4 %
Indebtedness - R$ thousand2Q07 2Q06 1Q07
Short Term 47.2 58.8 33.5 Debt 23.1 36.4 12.5 Leasing 24.1 22.4 21.0
Long Term 37.6 60.5 43.6 Debt 21.4 30.6 21.3 Leasing 16.2 29.9 22.3
Gross Debt 84.7 119.3 77.1
(-) Cash 1.1 85.6 9.8 Net Cash (Debt) 83.7 33.7 67.3
13
Recent Developments and Outlook
Tendency of replacing checkbook with credit card transactions to remain as we move forward;
Strong cost/expense reduction and investment program, impacting future results (including 2H07);
In addition to strong client card base growth, there is a high expectation of new contracts in 2H07 to CardSystem;
Décio Burd (ex-CardSystem CFO) takes over at TeleSystem and Credit&Risk to focus on cost reductions and workstation optimization;
To align its accounting practices with the norm being applied in more than a hundred countries and which is becoming the international standard (IFRS), CSU changed its standard for classifying Leasing.