CSU CardSystem - 2010

Disclaimer

2

This presentation may include forward-looking statements involving expectations about

future events or results in accordance with Brazilian and international securities

regulations. These statements are based on certain assumptions and analyses made by

the Company based on its experience and the economic scenario, as well as on industry

conditions and expected future events, over many of which the Company has no

control. Important factors that could lead to significant differences between actual

results and these forward-looking statements involving expectations about future

events or results include the Company’s business strategy, the Brazilian and

international economic conditions, technology, financial strategy, client developments,

financial market conditions, uncertainty regarding the results from its future activities,

plans, goals, expectations, among others. In view of these factors, the Company’s

actual results may differ significantly from the results stated or implied by these

forward-looking statements.

The information and opinions contained in this presentation should not be construed as

a recommendation to potential investors and no investment decision should be based

on the veracity, timeliness or comprehensiveness of this information or these opinions.

None of the Company’s advisors or related parties or their representatives will be

liable for any losses resulting from the use of or content of this presentation.

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• Rapid industry growth driven by stronger consumption and increased use

of financial services;

• Largest independent processor of electronic payment means in Brazil;

• The opening up of the Acquirer industry in July 2010 created an important

opportunity for CSU;

• Our Contact Center is well positioned to grow and increase profitability;

• Our strategy is supported by an operational platform developed over 20

years and adapted to the needs of the Brazilian market.

CSU is an important investment opportunity in Brazil's electronic

payment means processing industry

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Brazil's card industry has experienced

explosive growth in recent years

277336

388

453514

565628

2004 2005 2006 2007 2008 2009 2010E

210263

309369

444

509

594

2004 2005 2006 2007 2008 2009 2010E

Number of Cards

(million)

Number of Transactions

(million/month)

CAGR 04-10E

15%CAGR 04-10E

19%

Source: ABECS, Central Bank

Brazil's GDP registered a CAGR of 3.6% from 2004 to 2009,

while GDP growth of 7.55% and 4.5% is expected for 2010 and 2011, respectively

Private Label Debit Credit Private Label Debit Credit

Card growth is supported by

strong macroeconomic trends

5

8%

21%

38%42%

1999 2008 2017E* 2008

Card use in household consumption

Brazil USA

Source: ABECS, CPS/FGV based on PNAD/IBGE data * ABECS forecast

Population by consumption level

(% of total)

• The penetration of cards in spending by Brazilian households rose from 8% in 1999 to 21%

in 2008;

• Increased access to banking services in Brazil has been driven by the intense migration

from the "D" and "E" income classes to the "A", "B" and "C" income classes;

• Brazil's higher income levels and increased access to banking services represent a

powerful driver of growth in card use and transaction volume.

47.4%

50.1%

54.3%56.6%

59.6%

65.0%

52.6%

45.7%43.4%

40.4%

35.0%

2004 2005 2006 2007 2008 2009

ABC DE

• Rapid industry growth driven by stronger consumption and increased use

of financial services;

• Largest independent processor of electronic payment means in Brazil;

• The opening up of the Acquirer industry in July 2010 created an important

opportunity for CSU;

• Our Contact Center is well positioned to grow and increase profitability;

• Our strategy is supported by an operational platform developed over 20

years and adapted to the needs of the Brazilian market.

6

CSU is an important investment opportunity

in Brazil's electronic payment means processing industry

Electronic payment chain

Issuers

(Banks and Retailers)

Card Holders

Card / Billing

Commercial Transactions

Capture of

Electronic

Transactions

Request for

Approval

Approval Approval

Money Money

Request for

Approval

7

Money Money

Brands

(Visa, MasterCard, Amex)

Merchants

Acquirers

CSU offers a full range of services

to card issuers in Brazil

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CSU CardSystem

• Billing

• Invoicing

• Conflict Resolution

• Customer Support

• Authorization

• MIS

• Contact Center

• Accounting

• Processing

• Fraud Prevention

• Operational Control

Brands

(Visa, MasterCard, Amex)

Card Holders

CSU plays a central role

in Brazil’s electronic

transaction industry

• Financial Information

• Interchange

• Electronic Transaction Processing

Acquirers

Merchants

Issuers

(CSU Clients)

54.4 50.9

71.2

94.3

74.9

2006 2007 2008 2009 9M10

Gross Income and Gross Margin(R$/million)

3,014.9

1,741.9 1,688.1

182.2

First Data Fidelity Tsys CSU

Total Revenue and EBITDA Margin(US$ million/2009)

Our Business Model: multiple revenue sources,

high client loyalty and economies of scale

9

• We generate the same amount of revenue per card

as the United States, despite the lower transaction

volume;

• Gross margin of First Data is the highest due to the

royalties from Vision Plus, which represent the bulk

of its revenue;

Source: CSU and websites of companies cited.

• Low client turnover

• High-quality services and attractive prices;

• High transition cost;

• Long contracts and high penalties for

terminating contracts.

• CSU's high fixed processing costs give it competitive

costs as market leader;

• We share our competitive costs with our clients to

increase loyalty and limit competition.

16 16 1719

2 1 1 0

2006 2007 2008 2009

Client Turnover(unit)

34.8% 29.5%32.3%

36.2%

37.7% 34.4%36.0%

40.4%43.4%

Number of Clients Clients Turnover

10

• Rapid industry growth driven by stronger consumption and increased use

of financial services;

• Largest independent processor of electronic payment means in Brazil;

• The opening up of the Acquirer industry in July 2010 created an important

opportunity for CSU;

• Our Contact Center is well positioned to grow and increase profitability;

• Our strategy is supported by an operational platform developed over 20

years and adapted to the needs of the Brazilian market.

CSU is an important investment opportunity

in Brazil's electronic payment means processing industry

11

771700

101215

Cielo Redecard Fidelity Tsys

Net Income and Net Margin in 2009

(US$ million/%)

• Two acquirers dominated the

Brazilian market

• Exclusivity agreements with

Visa and MasterCard limited

competitiveness

• Acquirers generated

extraordinary profits

• Market open to competition

• Several acquirers

With the New Regulations

Antitrust authorities

forced the end

of the exclusivity

agreement

in June 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

58.116

5.3227.701

0.8011032 10 12

USA Brasil Reino Unido México

Number of POS Transactions and Number of Acquirers

Número de Transações (bilhões/2008)

Número de Adquirentes

Previous Situation

Acquirer business is undergoing significant changes in Brazil

driven by new regulatory framework

CSU is ready to offer a complete package of processing services

to Acquirers and Merchants

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CSU CardSystem

Acquirers

(CSU Clients)

New Services

• Operations management

• Authorization

• Billing

• Network

• Accounting

• Processing

• Back Office

• MIS

Issuers

(CSU Clients)

Card Holders Merchants

Brands

(Visa, MasterCard, Amex)

• Network Capture (POS)

• Contact Center

• Conflict

Resolution

• Billing

• Rapid industry growth driven by stronger consumption and increased use

of financial services;

• Largest independent processor of electronic payment means in Brazil;

• The opening up of the Acquirer industry in July 2010 created an important

opportunity for CSU;

• Our Contact Center is well positioned to grow and increase profitability;

• Our strategy is supported by an operational platform developed over 20

years and adapted to the needs of the Brazilian market.

13

CSU is an important investment opportunity

in Brazil's electronic payment means processing industry

Our Contact Center underwent major changes

and is positioned for profitable growth

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• 9th Largest Contact Center in Brazil;

• Changes concluded in February 2010

• 5 sites closed;

• 1 site opened with lower

operational costs;

• More than 10 contracts

terminated due to poor financial

performance.

• Financial results improved and

continue improving as a result of the

higher capacity utilization – current

focus is on sales efforts.

0.9

-5.4

2.4

11.69.7

8.1

2006 2007 2008 2009 9M09 9M10

Gross Income and Gross Margin(R$ million)

CAGR 06-09

135%

0.5%-3.2%

1.5%

7.7% 7.8%6.7%

-16.3%

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• Rapid industry growth driven by stronger consumption and increased use

of financial services;

• Largest independent processor of electronic payment means in Brazil;

• The opening up of the Acquirer industry in July 2010 created an important

opportunity for CSU;

• Our Contact Center is well positioned to grow and increase profitability;

• Our strategy is supported by an operational platform developed over 20

years and adapted to the needs of the Brazilian market.

CSU is an important investment opportunity

in Brazil's electronic payment means processing industry

Our strategy is supported by an operational platform developed

over 20 years and adapted to the needs of the Brazilian market

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• Our new Vision Plus software was developed over 20 years and has been extensively

customized for the Brazilian market and is the only platform in Brazil that is fully

prepared to handle multiple clients;

• Highly qualified development team and technicians;

• Alphaview Contact Center is state of the art in terms of facilities and its low operating

costs.

Belo Horizonte Back-up site (São Paulo) Alphaview site

Our strategy seeks growth with strong profitability

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Continue expanding

in the card

processing segment

for issuers

Consolidate our entry

into the card

processing segment

for acquirers

Expand the Contact

Center segment while

increasing

profitability

Continue investing in

technology and

software

development

Financial Information

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54.4 50.9

71.2

94.3

67.374.9

2006 2007 2008 2009 9M09 9M10

Gross Income and Gross Margin(R$ million)

156.7 159.2

213.9253.7

189.5 186.6

2006 2007 2008 2009 9M09 9M10

Gross Revenue(R$ million)

Payment transaction services: strong operational performance

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• Rapid industry growth and new clients support

expansion in the company's card base;

• Growth above industry average in past 4 years;

• Our complete range of financial services assures

higher profitability per card;

• Negative variation in 12 months is due to loss of

Banco Nossa Caixa after its acquisition by Banco do

Brasil, which processes internally;

• Competitive costs due to constant investment in

technology and the large card base;

• Scale gains shared with clients to increase loyalty

and discourage competition.

CAGR 06-09

20%

CAGR 06-09

17%

Source: CSU

CAGR 06-09

26%

37.7%34.4%

36.0%40.4%

38.6%

43.4%

11.2%

-1.5%

11.315.6

19.023.2

20.0

4.9

24.9

3T06 3T07 3T08 3T09 3T10

CSU Card Base(million)

Banco

Nossa Caixa

CSU Base

0.9

-5.4

2.4

11.69.7

8.1

2006 2007 2008 2009 9M09 9M10

Gross Income and Gross Margin(R$ million)

197.6174.3 177.2 172.7

132.6 128.4

2006 2007 2008 2009 9M09 9M10

Gross Revenue(R$ million)

4,2834,796

4,2253,494 3,468

2006 2007 2008 2009 3T10

Number of Workstations(thousands)

Contact Center: positioned for profitable growth

20

• Changes concluded in February 2010;

• Number of workstations begins to grow once

again;

• Management focused on margin expansion;

• Profitability should increase as capacity

utilization recovers.

• Higher revenue per workstation keeps the unit's

revenue stable, despite the lower number of

workstations;

• Expectations of revenue growth due to focus on

sales efforts;

Source: CSU

-3.2%

0.5%-3.2%

1.5%

7.7% 7.8%6.7%

-16.3%

21.6

59.5

109.195.0

55.5

16.0

2005 2006 2007 2008 2009 9M10

Net Debt and Net Debt/EBITDA(R$ million)

Continuous investment in our software and

substantial improvement in net debt

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• Strong cash generation:

CSU generates sufficient

cash to support its

investment plan (CAPEX),

reduce net debt and make

shareholder payments.

0.5x1.5x

3.2x

1.5x0.7x 0.2x

Source: CSU

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

CAPEX(R$ million)

Software Outros

Consolidated Financial Information

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(R$ million) 2006 2007 2008 2009 9M10

Net Revenue 317.9 318.6 363.7 394.8 292.4

Gross Income

Gross Margin

46.3 45.5 73.7 106 82.9

14.6% 14.3% 20.3% 26.8% 28.4%

Processing Services

Gross Margin

54.4 50.9 71.2 94.3 74.9

37.7% 34.4% 36.0% 40.4% 43.4%

Contact Center

Gross Margin

-8.1 -5.4 2.4 11.6 8.1

0.5% -3.2% 1.5% 7.2% 6.7%

EBITDA 39.2 33.9 64.4 78.9 61.3

Net Income -16.9 -6.3 9.5 17.9 19.6

Net Debt 59.5 109.1 95.0 55.5 16.0

Capex 28.9 46.9 25.4 40.6 21.0

Source: CSU

High level of Corporate Governance

Well structured internal controls

Stock option plan for executives Alignment of management's and shareholders' interests

Solid investor relations cultureInvestment by private equity funds since 1997

Fiscal Council3 members, with 1 appointed by minority shareholders

6 independent board members

Novo Mercado (100% tag-along rights)

100% common shares and 44% free float

No poison pills

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Questions?

Investor Relations

Tel: +55 (11) 3030-3821

E-mail: ri@csu.com.br

Web site: www.csu.com.br/ir