CSU CardSystem – 3Q10

CSU: leader in technology and BPO services in Brazil

The largest independent electronic payment processor in Latin America

Business model: Full BPO (Business Process Outsourcing) for issuers and acquirers of electronic payment transactions

Relaunching of contact center infrastructure, management and BPO services

The best and most efficient site (Alphaview) in Latin America

Card base of more than 20 million

55% market share among independent vendors

20 years of customization focused on

the Brazilian market

Market intelligence team to maximize clients’ cardholders base profitability

3,500 workstations providing inbound (Customer Care and HelpDesk) and outbound (Telemarketing and Collection) services

R$ 419.3 million

60%

40%

Gross Revenues (last 12 months)

(in % of total revenues)

2

R$ 96

R$ 314

R$ 395

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

IPO

EBITDA

Net Revenue (in R$ million)

Consistent track record of profitable growth

First company to operate with 3 brands

Entry ofPrivate Equity professional investor

Launch of the first Private Label cards CSU develops

electronic voucher

Best of the Century marketing award

Creation of the CSU Institute

15 years with 15 million cards under management

50%+ market share in Brazil

Relaunch of CSU Contact Center: new site

Launch of solution for the acquirer´s market

Innovation and consolidation of the business model

Business and client diversification

Sustainable growth

5x EBITDA and 4x Net Revenue

3

CSU: first independent card processor in Brazil

Start of Contact Center operations

Credit Institutions

ConvergenceInsurance & Healthcare

Retail & Manufacturing

Banking

Renowned customers in each market segment

Net Revenues (last 12 months)

(in % of total revenues)

Banking35%

Credit Institutions

11%

Insurance & Healthcare

9%

Convergence33%

Retail & Manufacturing

12%

4

25%

31%

38%

45%

55%

2010 2013 2017 2020 2025

5

Participation of cards in household consumption

(% of total)

• Brazil's electronic payment industry has experienced significant growth in recent years (CAGR 17%+)

• The penetration of cards in total spending made by Brazilian households rose from 8% in 1999 to 25% in 2010. It is expected to reach 55% by 2025.

Number of Cards (in million of units)

& Number of Transactions (in billion of units)

CAGR 04-10E

17%

CAGR 04-10E

20%

151

183

222

277

336

388

453

514

565

628

1.37

1.63

1.94

2.52

3.16

3.70

4.43

5.32

6.11

7.13

0,00

1,00

2,00

3,00

4,00

5,00

6,00

7,00

8,00

0

100

200

300

400

500

600

700

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010*

* Source: ABECS

Electronic payment chain

Issuers(Banks and Retailers)

Cardholders

Card / Billing

Commercial Transactions

Capture of Electronic

Transactions

Request for Approval

Approval Approval

Money Money

Request for Approval

6

Money Money

Brands

Merchants

Acquirers

CSU offers a full range of services to card issuers

7

CSU CardSystem

• Billing• Invoicing• Conflict Resolution• Customer Support

• Authorization • Information System• Contact Center• Accounting• Processing• Fraud Prevention• Operational Control

Brands

Cardholders

CSU plays a central role in Brazil’s electronic transaction industry

• Financial Information• Interchange• Electronic Transaction Processing

Acquirers

Merchants

Issuers (CSU Clients)

Opportunity

Current situationPrevious situation

771700

101215

Cielo Redecard Fidelity Tsys

• Two acquirers dominated the Brazilian market

• Exclusivity agreements with Visa and MasterCard limited competitiveness

• Acquirers generated extraordinary profits

• Market is open to competition

Antitrust authorities forced the end

of the exclusivity agreement

as of July’2010• New operators in Brazil's acquirer market

Source: Companies’ Annual Reports

42.4%45.4%

2.7%12.7%

Source: BIS, Central Banks and ABECS

62.713

6.1108.185

0.851105

210

12

USA Brazil UK Mexico

8

Number of Acquirers (in units)

and of Transactions (in billion of units)Net Income and Net Margin

(in USD million and % of revenues)

• Brazilian acquirer market is under a new regulatory framework:

CSU offers a complete solution for acquirers and merchants

9

CSU CardSystem

Acquirers(CSU Clients)

New Services• Operation management• Authorization• Billing• Network• Accounting• Processing• Back Office• Information System

Issuers (CSU Clients)

Cardholders Merchants

Brands

• Network Capture (POS)• Contact Center• Conflict

Resolution• Billing

• Brazilian market estimated at R$ 12 billion in 2011,with a CAGR of 12/13% p.a. in the upcoming years;

• Growth in demand for customer service;

• Recognition of those providers best able to meetcontracted SLAs;

• Continuous growth in collection, telemarketing andon-site customer services;

• Merger of Dedic into Contax. 34

117

165

208

239

355

424

3.980

6.430

0 2000 4000 6000 8000

10

Market Share

(in % of sales)

Brazilian demand per type of client

(in R$ million)

Contax

21,5%

Atento

18,0%

Tivit

4,5%Dedic

4,0%Algar

2,7%

Teleperfor

mance2.5%

CSU

1,6%

Other Call

Centers

22%

Collection

Agencies

23,0%

Customer

Care

40%

Telemarketing

15%

Other players

7%

Collection

38%

Brazilian demand per type of service

(in % of sales)

Financial Institutions

Convergence

Retail

Manufacturing

Services

Insurance

Utilities

Government

Healthcare

Growth strategy is supported by a differentiated platform

11

• Accelerated time to market to new clients

• Lower operating costs leveraged by scale gains

• Excellent infrastructure and superior operations facilities

TECHNOLOGY

INDEPENDENCE

PERFORMANCE• Flexible, secure and robust infrastructure (mainframe)

• World-class systems and applications, extensively customized for the Brazilian market

• Highly qualified team of professionals

• Innovation and new products, among a complete range of solutions

• Independent shareholding structure with no commercial activity competing with prospects and clients

• Dedicated commercial teams to each business lines

• First vendor to receive MasterCard certification to provide services for acquirers

• Opportunity for various partnerships and M&A

Our strategy prioritizes growth with sustainable profitability

12

Improve and expand contact center/BPO and

increase profitability: self sustainable

Consolidate entry as a vendor into the

acquiring segment: greenfield growth

Keep expanding in the card issuers

segment: organic + inorganic

Continue investing in technology and software

development: competitive advantage

Relaunch market intelligence & CRM

solutions and expand commercial approach: value added service

• Successful launch the first project

• Second flight in commercial expansion

• Serve as strategic partners to global players

• Tap new market segments, beyond financial institutions

• Attract mid-sized banks as funding partners to specific projects

• Serve as strategic partners to global players

• Market repositioning with broader range of services

• Commercial approach outside CSU´s clients base

• Effective turn around of the business unit

• Focus on reaching full capacity

• New offerings in Collections and Telemarketing

Main focus in the short term

13

21.6

59.5

109.195.0

55.5

16.0

2005 2006 2007 2008 2009 9M10

Continuous investments and substantial improvement in net debt

14

• CSU continuously invests in its

technological platform a minimum

of 6/7% of net revenues.

• Significant reduction in

indebtedness over the last 2 years.0.5x

1.5x

3.2x

1.5x0.7x 0.2x

19.3 15.0 25.9 21.1 29.2 18.8

24.4 13.9

21.0

4.3

11.4

2.2

43.7

28.9

46.9

25.4

40.6

21.0

2005 2006 2007 2008 2009 9M10

Software Outros

Investments

(in R$ million)

Net Debt and Net Debt/EBITDA

(in R$ million and ratio)

Consistent recovery in profitability

Recent commercial achievements will present major contribution to revenues as of 2Q11.

Strong cash generation as measured by EBITDA.

Second year of record net income generation:

• Dividend distribution

• Share buy back program

• Consistent investments

• Reduction in indebtedness

15

7 710

13 16

-17-12

7

18 20

6.8%

4,8%

5.7% 5.6%5.1%

-5.0%-3.9%

1.8% .4.5%

6.7%

-8,0%

-4,0%

0,0%

4,0%

8,0%

20,0

10,0

0,0

10,0

20,0

30,0

2001 2002 2003 2004 2005 2006 2007 2008 2009 9M10

Net Revenues

(in R$ million)

Net Income and Net Margin

(in R$ million and % of net revenues)

EBITDA

(in R$ million)

96134

178229

314 318 319364

395

292

2001 2002 2003 2004 2005 2006 2007 2008 2009 9M10

1723

3446

6050

34

64

79

61

2001 2002 2003 2004 2005 2006 2007 2008 2009 9M10

54.4 50.9

71.2

94.3

67.374.9

2006 2007 2008 2009 9M09 9M10

156.7 159.2

213.9253.7

189.5 186.6

2006 2007 2008 2009 9M09 9M10

-> strong and consistent operating performance

16

• Track record of cardbase growth, despite punctual clients leave;

• Constant investment in technology and scale lead to higher margins;

• Operational leverage gains of scale are shared with clients to increase loyalty and discourage competition.

CAGR 06-0920%

CAGR 06-0917%

CAGR 06-0926%

37.7%34.4%

36.0%40.4%

38.6%

43.4%

11

1619

2320

2006 2007 2008 2009 9M10

Cardbase

(in million of units)

Gross Revenue

(in R$ million)

Gross Income and Gross Margin

(in R$ million and % of net revenues)

0.9

-5.4

2.4

11.69.7

8.1

2006 2007 2008 2009 9M09 9M10

197.6174.3 177.2 172.7

132.6 128.4

2006 2007 2008 2009 9M09 9M10

-> positioned for profitable growth

17

• Top 10 among Brazilian contact centers;

• Important structural changes concluded in 2010 to

strengthen repositioning;

• Effective creation of a business unit;

• Dedicated sales team: new offerings and expanded

prospects base;

• Specialized HR professionals: labor intensive activity.

0.5%-3.2%

1.5%

7.7% 7.8%6.7%

Number of Workstations

(in units)

Gross Revenue

(in R$ million)

Gross Income and Gross Margin

(in R$ million and % of net revenues)

4.2834.796

4.2253.494 3.468

2006 2007 2008 2009 3Q10

Consolidated Financial Information

18

(in R$ million and % of net revenues) 2006 2007 2008 2009 9M09 9M10

Net Revenue 317.9 318.6 363.7 394.8 298.4 292.4

Gross Income

Gross Margin

46.3 45.5 73.7 106 76.4 82.9

14.6% 14.3% 20.3% 26.8% 25.8% 28.4%

Gross Margin

54.4 50.9 71.2 94.3 67.3 74.9

37.7% 34.4% 36.0% 40.4% 38.6% 43.4%

Gross Margin

-8.1 -5.4 2.4 11.6 9.6 8.1

0.5% -3.2% 1.5% 7.2% 7.8% 6.7%

EBITDA 39.2 33.9 64.4 78.9 62.3 61.3

Net Income -16.9 -6.3 9.5 17.9 14.8 19.6

Net Debt 59.5 109.1 95.0 55.5 67.2 16.0

Capex 28.9 46.9 25.4 40.6 31.5 21.0

CARD3 is traded at inexpensive levels as compared to peers

19

Company nameNet revenue (US$ million-

12M)

Gross Margin(%)

EBITDA Margin(%)

Net Margin(%)

EV/EBITDA P/E

2,315.2 72.5% 66.3% 46.5% 6.4 9.2

10,235.7 66.7% 17.6% - - -

1,707.3 64.6% 22.3% 10.9% 9.1 19.4

1,535.2 77.6% 65.7% 55.8% 8.6 9.5

1,712.4 - 28.6% 12.1% 6.7 16.3

Financial Services Average 3,501.2 70.4% 40.1% 31.3% 7.7 13.6

1,383.8 17.1% 14.3% 5.9% 5.1 12.6

2,314.6 39.5% 8.1% 5.8% 9.4 15.6

594.6 25.0% 18.2% 7.3% 10.0 23.5

Contact Center Average 1,431.0 27.2% 13.5% 6.3% 8.2 17.2

229.5 28.8% 20.9% 6.0% 3.7 12.4

1. Current data: Last 12 months - Last balance sheet and income statement - reference date Jan. 31, 20112. Methodology for calculating EBITDA standardized by Economática

Awards and Certifications

Award Year and Seal

National Teleservices Award2009

2010

Grupo Padrão 2009

Marketing Best – 20 Years Special Edition 2007

Consumidor Moderno magazine – Quality Standard in Contact Center award

2007

ADVB – Top of Marketing

2007 2006

2005 2004

2003

2000 (2 categ.)

1999

1998 (2 categ.)

1997 1996

ABEMD – Direct Marketing Award

2006

2004

2001

Marketing Best – Social Responsibility2006

2005

2nd rank in ABRASCA Annual Report 2010

Award Year and Seal

Marketing Best

2006 2005 2004

2003 2002 1999

1998 1997 1996

1995

Ernest & Young – Entrepreneur of the Year

2002

Marketing Man of Brazil and São Paulo 2000

Gazeta Mercantil – Highlights of the 90s 2000

Computerworld magazine - 100 Largest in IT

1999

ADVB - Top of Internet 1999

Marketing Best – Best of the 20th

Century1999

Marketing Best – Best of the Decade 1998

Certification Year

PROBARE – Maximum Maturity of Management – Grade 4

Dec 2009 and Dec 2010 (Recertification)

PROBARE – Seal of Ethics 2010

ISO 9001 Certification

Jan 2001 (9001:1994 version)

Jan 2004 and Feb 2007 (9001:2000 version)

May 2010 (ISO 9001:2008 version)

PCI Certification 201020

High level of Corporate Governance

Well structured internal controls

Stock based compensation plan for executives

Solid investor relations cultureInvestment by private equity funds since 1997

Fiscal Council3 members, with 1 appointed by minority shareholders

Majority of independent board members

Novo Mercado (100% tag-along rights; no poison pills)

100% common shares and 44% free float

Active Sustainability Arm (CSU Institute)

21

CEO

Commercial Director CSU CardSystem

Operations Director

Executive Officer of CSU Contact

Chief Financial, Legal, HR Officer and Controller

IR and Corporate Development

Officer

CSU Executive Board Organizational Chart

22

Mônica Hojaij Carvalho Molina

Carlos Montenegro

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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