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Meeting with InvestorsMeeting with Investors
AprilApril, 2007, 2007
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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.
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Company Overview
Company Profile
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Leading Technology Services Provider in Brazil
CardSystem35%
TeleSystem49%
Credit&Risk15%
MarketSystem1%
Gross Revenues in 2005**
R$ 336 mm
CardSystem36%
TeleSystem45%
Credit&Risk11%
MarketSystem8%
Gross Revenues in 2006
R$ 354 mm
The largest independent administrator of credit cards
12.1 16.2* million cards
56% of market share
Leading loyalty programs management 3.1 million managed accounts
* Data of Dec/06. Includes the cards from Caixa Econômica Federal Contract
** MarketSystem - 2005 shows figures for December only.
3,582 Workstations
Leading collection services provider 701 Collection Workstation
One of the largest independent call center services provider in Brazil
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CSU is the Backbone of the Credit Card Business of its Clients
� Authorization
� Card Issuance� Billing� Customer Support/ Call Center
� Credit analysis and processing
� Collection� Processing� Operational Control
� Data exchange� Fraud Prevention
� Purchase� Withdrawal
CREDIT CARD BRAND
ISSUERSACQUIRER – NETWORK
COMMERCIAL ESTABLISHMENT
Other
CARDHOLDER
CSU Provides its Clients a Fully Outsourced Solution to Card Administration
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Our Excellence in Credit Card Administration Fostered Other Leading Business Units
System development/ Implementation
Card Issuance
Electronic Transaction Process
Full Service
Credit and
Collection analysis
CustomerSupport
Loyalty Programs
� New business opportunities/ cross-selling
� Lower costs from scale gains
� High switching cost
Fraud Prevention
Operational Control
Diversification brought us:
Interchange
New Business Opportunities
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Company Overview
Our Businesses
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Attractive Industry Fundamentals toCredit Cards…
23.628.0
35.341.5
47.552.5
68.0
1999 2000 2001 2002 2003 2004 2005
Number of Credit Cards - BrazilNumber of Credit Cards - Brazil
Million
Most Used Credit Instruments in BrazilMost Used Credit Instruments in Brazil
78.0
2006
3%
3%
8%
15%
15%
16%
21%
37%
59%
Payroll Deductible
Real State Loans
Personal Loans
Overdraft Facility
C.C. Payment in Equal
Installments
C.C. Minimum Payment
Invoice
C.C. Interest Bearing
Purchases
Payment Book
C.C Interest Free
Purchases
Source: Abecs
Brazil is the 3rd largest card issuerBrazil is the 3rd largest card issuer
796USA
206China
192Brazil
Credit
Million cards, in 2005
UK 140
CAGR
19%
CAGR
19%
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… And the Call Center Industry Showing Consistent Growth Potential
Potential Growth – Brazilian Call Center Services Revenue**
Potential Growth – Brazilian Call Center Services Revenue**
2007 2008 2009 2010
15%13%
12%
* Source: ABRAREC
Historical Growth – Brazilian Call Center Services Revenue*
Historical Growth – Brazilian Call Center Services Revenue*
Annual Growth %
2002 2003 2004 2006
25%
60%21%
2005
** Source: IDC
CAGR
13%
CAGR
13%
CAGR
30%
CAGR
30%
20%
Annual Growth %
+15%
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Leading Competitive Position AmongIndependent Players
2006 data
Market Share: Credit Card Processing Segment *
Market Share: Credit Card Processing Segment * Leading Independent Call Center OperatorLeading Independent Call Center Operator
5 largest independent players
* Notes:- CSU’s Market Share considers credit cards from Caixa - Orbitall: 100% owned by Itaú- Fidelity (51%): 49% owned by ABN Real and Bradesco Sources: Cardnews and IDC
In Outsourcing
TeleSystem and Credit&Risk
21%
Telefutura
17%
Softway
14%
TMS
12%
Teleperformance
36%
56%
Orbitall
27%
Fidelity
17%
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CSU – Strong and Diversified Clients Portfolio
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Caixa Econômica Federal Project
� Implementation expected for second quarter of 2007;
� The largest contract in industry (~ 4.1 million of active credit cards);
� Strong growth potential;
� Contract establishes a two-year initial service rendering period
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Financial Information
Operational and Financial Information
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4,4234,283
2005 2006
2.43.1
2005 (Pro Forma) 2006
6.88.7
3.03.4
2005 2006
4,8%
Operational Performance by Business Unit
CardSystem - CardsCardSystem - Cards
23.1% 4,8%-3.2%
TeleSystem and Credit&Risk – Total Workstations
TeleSystem and Credit&Risk – Total Workstations
End of the periodIn million
MarketSystem – Loyalty AccountsMarketSystem – Loyalty Accounts
4,8%25.4%
Average of the period – in million
9.812.1
Private Label and otherCredit Card
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Consolidated Financial Performance
96.7134.4
177.9229.4
313.6 329.0
2001 2002 2003 2004 2005 2006
30.637.0
42.3
55.363.7
40.1
2001 2002 2003 2004 2005 2006
17.022.9
34.2
46.3
60.350.2
2001 2002 2003 2004 2005 2006
Net RevenuesNet Revenues Gross Profit Gross Profit
EBITDAEBITDA
R$ MM
R$ MM
Net Profit (Loss)Net Profit (Loss)
R$ MM
R$ MMCAGR 28%
6.6 6.510.2
12.916.1
-11.8
2001 2002 2003 2004 2005 2006*
CAGR 6%
CAGR 24%
* Adjusted by the IPO’s expenses
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Business Units’ Gross Revenue Evolution
91.2 97.6118.0 126.5
2003 2004 2005 2006
98.7
148.4
215.1197.6
2003 2004 2005 2006
MarketSystemMarketSystem
R$ MM
* Pro-forma
CardSystemCardSystem
R$MMCAGR 12%
TeleSystem and Credit&RiskTeleSystem and Credit&Risk
R$MM
14.9
22.6 23.7
30.2
2003* 2004* 2005* 2006
CAGR 27%
CAGR 26%
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2005 2006
** MarketSystem 2005 pro-forma
Financial Performance of the Business Units
CardSystemCardSystem TeleSystem and Credit&RiskTeleSystem and Credit&Risk
R$ MM R$ MM
MarketSystem**MarketSystem**
R$ MM
* Adjusted by the IPO’s expenses
15.0
201.5
16.0
(2.8)
184.8
(11.3)
Net Revenue Gross Profit EBITDA*
22.9
4.5
8.4 6.4
9.1
28.8
Net Revenue Gross Profit EBITDA*
44.9
109.6
47.4 46.642.3
115.3
Net Revenue Gross Profit EBITDA*
43.2%36.7%
41.0% 40.4% 7.9%
(6.1%)
36.4%31.5%
7.4%
(1.5%)
22.3%19.7%
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Gross Debt* Net Debt / EBITDA
Cash and Debt Position
R$ MMR$ MM
* Bank debt + leasing
2005
103.2
0.4x
92.1
2006
0.7
20.5
37.2
2003 2004 2005 2006
1.4
0.2x
Cash at the end of the periodCash at the end of the period DebtDebt
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Capex and Dividends
Capital ExpendituresCapital Expenditures Dividend Payout*Dividend Payout*
R$ MM R$ MM
43.6
15.610.912.59.8
2001 2002 2003 2004 2005
% Net Profit
* Includes Interest on Shareholder´s Equity
2006
28.9
11.4
4.0
11.8
3.2
5.6
2001 2002 2003 2004 2005
85% 49% 116% 31% 71%2006 Capex Breakdown
Hardware e Software: R$ 15.0 MM
CAIXA Project: R$ 13.0 MM
Other: R$ 0.9 MM
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Financial Information
Value Creation Agenda
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Strategy and Growth Opportunities
OrganicMarket Growth
Cross-SellingOpportunities
Entrance inNew Markets
AcquiringNew Clients& Outsourcing
Electronic Payment through Mobile
Call Center Offshore
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� CardSystem• Implementation of Caixa Project• Focus on Co-Branded Private Label Cards• Leverage in business based on our competitive and strategic advantages• Several projects under development with important prospects
� TeleSystem and Credit&Risk• New Management in charge of the Units• Strengthening of structure, commercial processes and financial management• Strong emphasis on commercial efforts
� MarketSystem• Focus on gaining clients of the financial, telecommunication and retail industries
Main Strategic Actions - 2007
� CSU Corporate• Complete the commercial achievements and strategies of 2005 and 2006 • Expansion of volumes – growth of the businesses already conquered• Enlargement of profitability by cost management and scale gains• Entrance in new business segments and new markets
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High Level of Corporate Governance
100% common shares
Bovespa´s Novo Mercado (100% Tag Along)
Free float of 39% voting shares
Active Board of Directors, with diversified and complementary experiences and presence in the business management:
� Independent members: Mailson F. da Nóbrega, Rubens Barbosa and MárioAlberto de Almeida
Solid relationship track record with minority shareholders� Private Equity funds investment in 1997
Controlling Committee headed by a minority shareholder
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High Level of Corporate Governance and Human Resources Focus
Dedicated Investor Relations Team
Development of a Stock Option program for the executives� Alignment of interests between administration and shareholders
Code of Ethics / Disclosure and Stock Trading Policies
Human Resources Emphasis� Results Oriented Management� Special Recruiting Actions: Trainee Program and New Talents Program� Management Compensation aiming at business growth
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Social Responsibility
� 9,299 employees (Dec/06)
� CSU Institute
� CSU University
� Incentive to social and educative programs along with Abrinq and other Institutions
� Encouragement to voluntary work
� First Trainee Program launched in 2006/2007
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Conclusion: Attractive Investment Opportunity
Market Leadership
Attractive Industry Growth Fundamentals
Impressive History Growth
Premium Diverse Client Portfolio with Excellent
Relationship Track Record
Strong Growth Prospects
Superior Corporate Governance
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