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4Q07 Results
Conference Call
March 14, 2008
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Disclaimer
This presentation may include forward-looking statements of future events orresults according to the regulations of the Brazilian and international securitiesand exchange commissions. These statements are based on certain assumptionsand analyses by the Company that reflect its experience, the economicenvironment, future market conditions and expected events by the company, manyof which are beyond the control of the Company. Important factors that may leadto significant differences between the actual results and the statements ofexpectations about future events or results include the company‟s businessstrategy, Brazilian and international economic conditions, technology, financialstrategy, financial market conditions, uncertainty regarding the results of itsfuture operations, plans, objectives, expectations and intentions, among others.Considering these factors, the actual results of the company may be significantlydifferent from those shown or implicit in the statement of expectations aboutfuture events or results.
The information and opinions contained in this presentation should not beunderstood as a recommendation to potential investors and no investmentdecision is to be based on the veracity, current events or completeness of thisinformation or these opinions. No advisors to the company or parties related tothem or their representatives should have any responsibility for any losses thatmay result from the use or contents of this presentation.
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Market for CardSystem/MarketSystem
20,1% 19,2%
18,1%
50,7%
19,8%
37,2%
2005 2006 2007 *
Market Growth ABECS x CSU
ABECS CSU
Cards Evolution
At the end of December - Million
2004 2005 20062007
Debt Private Label Credit
138171 187 201
86
99120
14253
68
79
93
436
338
277
386
6,8 6,8
10,1
12,1
16,6
4
Consequent to the increase in the number of cards, CSU closed the year with
16.6 million registered cards.
In the past12 months, the market grew 18.1% while CSU grew 37.2%.
CSU – Registered Cards in Base
at the end of December (million)
CardSystem/MarketSystem – Operational data
2003 2004 2005 2006 2007
Source: CSU
CSU Market
35.3% 19.1%CAGR 2004 - 07
4Q06 1Q07 2Q07 3Q07 4Q07
1.306
1.033
1.417
1.860
1.248
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CardSystem/MarketSystem – Operational data
We entered into a strategic agreement with Riachuelo;
We implemented the HSBC Cartão Combustível in December 2007, with
strong market penetration;
Implementation timing record of Carrefour‟s Visa Card in 45 days;
High portfolio growth;
Implementation of Porto Seguro‟s card in November 2007;
Implementation of OMNI‟s card in December 2007;
High potential contracts at MarketSystem, Sicred and Porto Seguro.
CSU CardSystem – Entry of new cards
(thousands)
CSU MarketSystem –Accounts managed
(million)
Source: CSU
4Q06 1Q07 2Q07 3Q07 4Q07
1,70
1,77
1,84
1,90
2,00
Source: CSU
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TeleSystem/Credit&Risk
TeleSystem and Credit&Risk
Financial turnaround achieved in the period due to the substantial
reduction in operational costs and gains in productivity when
compared to 4Q06;
Cancellation of unprofitable contracts;
The units maintain the strategy of portfolio diversification, with focus
on smaller operations with greater stability;
reduction in the number of workstations in operation in December
2007;
CSU Workstations in operation- thousand
3,8723,322
3Q07 4Q07
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Financial Performance
Revenue growth of 5.8% between4Q06 and 4Q07.
Significant EBTIDA growth of121.5% compared to 4Q06
Due to the Company‟s effort toreduce costs and expenses and theissue of new cards in 2007, wemore than doubled the EBITDAmargin, from 6.3% in the 4Q06 to13.1% in the 4Q07.
92.8
81.4
78.4
87.490.9
86.2
3Q06* 4Q06* 1Q07 2Q07 3Q07 4Q07
Gross Profit CSU (R$ million)
CSU EBTIDA (R$ million)
11.3
5.6
11.9
5.45.1
12.9
3Q06* 4Q06* 1Q07 2Q07 3Q07 4Q07
EBTIDA Margin (R$ million)
6.4%
13.11%
13.9%
6.3% 6.9%
13.09%
3Q06* 4Q06* 1Q07 2Q07 3Q07 4Q07
42.5
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Financial Performance
30,7%
Gross Revenue of Units (R$ million)
48.949.0
43.3
45.7
53.0
39.8 35.8
35.1
38.4
42.0
43.7
3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 *
Tele/Credit
Card/Market
EBTIDA of Units (R$ million)13.613.7
10.4
8.7
9.3
11.6
1.3
(4.2)
(3.3)
(4.8)
(1.8)
(2.3)
3Q06 4Q06 1Q07 2Q07
3Q07
4Q07
Card/Market
Tele/Credit
Positive change in the Company's revenue portfolio withCardSystem/MarketSystem responsible for over 50% of revenues in 4Q07.
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CSU (Consolidated)
Cost of Services Rendered (R$ „000)Gross Revenue (R$ „000)
Gross Profit (R$ „000) and Gross Margin (%)
81,442
4Q06
1.3 %5.8 %
12,808
8,858
44.6 %
67,29866,427
4Q07
86,179
Cost increase was lowerthan Gross Revenuegrowth, compared to4Q06.
18,1%
4Q06 4Q07
4Q06 4Q07
16%11.8%
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CSU (Consolidated)
Net Results (R$ „000)General and Administrative
Expenses (R$ „000)
EBITDA (R$ million) and EBITDA
Margin (%)
Reduction in general and administrative expenses in the 4Q07 compared to 4Q06.
Higher revenue growth versus costs and expenses compared to the 4Q06 doubled EBITDA margin in the 4Q07;
Net Result: “Turnaround” in net profitability and significant improvement compared to 4Q06;
(7,068)
389
5,180
16,180 121.5 %
-9.5 %
14%
14%
11,31514,648
18,1%
4Q06 4Q07
18,1%
4Q06 4Q07 4Q06 4Q07
7% 14%
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CardSystem/MarketSystem
Gross Revenue (R$ million) EBITDA (R$ million) and EBITDA
Margin (%)
Increase of 3 p.p. in Gross Profit of CardSystem/MarketSystem compared to the 4Q06;
EBITDA increase of 5 p.p. versus the 4Q06;
Improvement in operational efficiency.
Gross Profit (R$ million) and
Gross Margin (%)
22.2%
10.8
36%
34.3 % 46.8%
43.7
35.8
14.5
9.3
13.6
36%
4Q06 4Q07 4Q06 4Q07
36%33%
4Q06 4Q07
28% 33%
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TeleSystem and Credit&Risk
Gross Revenue (R$ million) EBITDA (R$ million) and EBITDA
Margin (%)
Gross Profit (R$ million) and
Gross Margin (%)
42.545.7
- 7.0%
4Q06 4Q07
(4.2)
(2.3)
n.a
4Q06 4Q07
3,8%
(1.9)(1.7)
n.a
4Q06 4Q07
-4.6 %
-4.4%
Gross Revenue declined by 7.0% compared to the 4Q06, due to the 20.0% reduction in
Telemarketing revenue and 42.0% growth in credit and collections.
Despite revenue decline compared to the 4Q06, we had profitability gains both in Gross
Profit (R$ 0.2 million) and EBITDA (R$1.9 million) and 4.0 p.p.
-9.8%-5.8%
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Debt and Investments
CAPEX
Conclusion of investments in
development of Caixa‟s operating
platform;
Investments in cards.
Debt R$ million
4Q07 4Q06 3Q07
Short Term 57.9 44.3 48.9
Short Term Debt 34.3 24.2 24.0
Leasing Short Term 23.6 20.1 24.9
Long Term 53.5 52.4 59.1
Long Term Debt 41.8 21.4 42.2
Leasing Long Term 11.7 31.0 16.9
Gross Debt 111.5 96.7 108.1
(-) Cash 2.4 37.2 3.5
Net Cash (Debt) 109.1 59.5 104.6
4Q06 4Q07 3Q07 4Q07
Sistemas (SW e HW) 4,7 5,5 10,3 5,5
Projeto Caixa 5,3 1,5 3,8 1,5
Outros 0,3 0,4 0,4 0,4
CAPEX (in R$MM)
4.7 5.5
10.3
5.5
5.31.5
3.8
1.5
4Q06 4Q07 3Q07 4Q07
Systems (SW and HW) Caixa Project Others
10.3
7.47.4
14.5
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Final Remarks
Record emission of 446,725 new cards in January, raising CSU's total card base to 17.1
million;
Card base: 37% growth in comparison with 18% industry expansion;
Gross Revenue Card/Market: 21.9% increase.
6.8 6.8
9.8
12.1
16.6
2003 2004 2005 2006 2007
CSU – Registered Cards in Base
at the end of December (million)
CSU - Entrada de Cartões Novos CardSystem
(Milhares)
1Q07 2Q07 3Q07 4Q07 Jan. 08
1,033
1,417
1,860
1,248
447
CSU – Registered Cards in Base
at the end of December (million)
