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1 3Q07 Results Conference Call November 14 th , 2007

3 q07 results presentation

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Page 1: 3 q07 results presentation

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3Q07 ResultsConference Call

November 14th, 2007

Page 2: 3 q07 results presentation

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DisclaimerThis 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.

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Business MarketCardSystem/MarketSystem

131 166 184 198

94 112 1375164

7689

82

2004 2005 2006 2007

Debit Private Label Credit

264324

372 424

Expansion - Business Market x CSU

3.7%

12.9%

9.9%

4.2%3.4% 3.8%

9.5%

9.2%6.1%7.4%

3Q06 4Q06 1Q07 2Q07 3Q07

BUSINESS MARKET

CSU

Card Trends (Business Market)September, 30th - in million

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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%.

6,3 7,0

10,111,4

15,6

2003 2004 2005 2006 2007

CardSystem/MarketSystem – Operational data

CAGR (CSU) of 31%CAGR (Market) of 19%

2004 to 2007

CSU – Registered Cards

at the end of September (Million)

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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;

CSU Cardsystem – New cards entry

(Thousands)

4Q06 1Q07 2Q07 3Q07 4Q07

1.3061.033

1.417

1.8601.640

4Q06 1Q07 2Q07 3Q07 4Q07

1.70

1.77

1.841.90

1.96

CSU Marketsystem – Managed accounts

(Million)

CardSystem/Marketsystem – Operational Data

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CAIXA PROJECTPlatform’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

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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;

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

August September October

0.61.5

2.0

thousands

R$ million (accumulated value)

3,930 3,872

2Q07 3Q07

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CSU – Financial Trend

* Forecast

Gross Revenue (R$ million)

92.8

81.4

78.4

87.4

90.992.7

3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 *

EBTIDA (R$ million)15.3

11.9

5.65.45.1

12.9

3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 *

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Units – Financial Trend

* Forecast

Gross Revenue (R$ million)

47.648.949.0

43.345.7

53.0

39.8 35.8

35.1

38.4

42.0

45.1

3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 *

Tele/Credit

Card/Market

EBTIDA (R$ million)

14.313.7

10.48.79.3

11.6

1.3

(4.2)(3.3)

(4.8)

(1.8)1.0

3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 *

Card/Market

Tele/Credit

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CSU (Consolidated)

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90,86692,777 90,86687,394

3Q06 3Q07 2Q07 3Q07

Cost of Services Rendered (R$ thousand)Gross Revenue

(R$ thousand)-2.8 %-3.8 %

-2.1 %+4.0 %

15,2779,808

15,27713,924

Gross Profit (R$ thousand) and Gross Margin (%)

55.8 %9.7 %

69,32671,31269,32672,040

3Q06 3Q07 2Q07 3Q07

3Q06* 3Q07 2Q07 3Q07

4Q07*

92,744

+2.1 %

* Forecast according to “guidance” of 11/12/07

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CSU (Consolidated)

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.

* * Excludes IPO Expenses

* Forecast according to guidance of 11/12/07

(255)(247) (247)

(4.286)5.614

11.86511.86512.888

3Q06** 3Q07 2Q07 3Q07

15.74215.61713.666

15.617

3Q06 3Q07 2Q07 3Q07

94.2%

Net Results (R$ thousand)Operational Expenses

Expenses (R$ thousands)

-7.9 %

111.3 %

14.3 %-0.8 %

15%

14% 14%6.9%

3Q06 3Q07 2Q07 3Q07

3.0 %

4T07*

17.8%

15.245

28.5 %

1.294

4T07*

na

EBITDA (R$ million) and EBITDA Margin (%)

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CardSystem/Marketsystem

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;

41.939.8

41.938.4

3Q06 3Q07 2Q07 3Q07

11.6 13.710.4

13.7

+9.2%+5.5%

12.0

15.2

12.4

15.2

34.9%38.8% 38.8%33%

+ 22%+ 25.9%

29.2% 35.1%

+ 32%17.9%

35.1%31.8%

3Q06 3Q07 2Q07 3Q07 3Q06 3Q07 2Q07 3Q07

Gross Revenue

(R$ million)

Gross Profit (R$ million) and

Gross Margin (%)EBITDA (R$ million) and EBITDA

Margin (%)

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TeleSystem and Credit&Risk

Gross profit maintained the same level as 2Q07;Cost reduction plan resulted on positive impact reaching breakeven in gross profit. See monthly trade:

1.3

(1.8)(4.7)

(1.8)

1.9

0.1

(2.6)

0.1

Gross Revenue

(R$ million)

EBITDA (R$ million) and EBITDA Margin (%)

Gross Profit (R$ million) and

Gross Margin (%)

-5.7%

3.8%- 93.5%

na 61.5%

- 244.7%

-4% - 10.5%

2.6%

-4%

48.948.948.952.9

- 0.1%- 7.7%

3Q06 3Q07 2Q07 3Q07 3Q06 3Q07 2Q07 3Q07 3Q06 3Q07 2Q07 3Q07

0.3% 0.3%

Jul 07

(1.1)

Aug 07 Sep 07

0.6 0.5

Gross Profit 3Q07 R$ million

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Indebtedness and Investments

CAPEXReduction of investments in Caixa’soperating platform;Investments in cards area to support accelerated growth.

IndebtednessIncrease of R$19 million in total debt for investments on cards area;Improved indebtedness profile for short to long term

Debt - R$ thousand3Q07 3Q06 2Q07

Short Term 48.9 42.1 40.8Debt 24.0 17.2 23.1Leasing 24.9 24.9 17.7

Long Term 59.1 50.9 45.9Debt 42.2 23.9 21.4Leasing 16.9 27.0 24.5

Gross Debt 108.1 93.0 86.7

(-) Cash 3.5 42.5 1.1Net Cash (Debt) 104.6 50.6 85.6

CAPEX (R$MM)

7.1 10.36.8

10.3

4.03.8 7.4 3.8

0

4

8

12

16

20

3Q06 3Q07 2Q07 3Q07

Sistems (SW e HW) Caixa Project Others

11.214.5 15.1

14.5

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Perspectives and Recent FactsNew 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