Institutional Presentation - CSU CardSystem S/A1H12

CSU: leader in technology and BPO services in Brazil

Independent electronic transactions’ processing platform

Business model: Full service provider for issuers and merchant acquirers of electronic payments

Contact center infrastructure, management and BPO services

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

Card base: 20 million of processed accounts

44% market share among independent processors

20 years of systems customization focused on the Brazilian market particularities

Market intelligence & data analytics to maximize customers’ profitability

4,000 workstations providing inbound (Customer Care & Help Desk) and outbound (Telemarketing & Collection) services

Gross Revenues (LTM)

(in % of total revenues)

CSU CardSystem54%

CSU Contact46%

2

R$ 96

R$ 314

R$ 395 R$ 398

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

44% 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

4x EBITDA and 4x Net Revenue

CSU: first independent card processor in Brazil

Start of Contact Center operations

3

Important clients in diverse market segments

4

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012**

151183

222277

336388

453514

565

628687

746

1.37 1.63 1.942.52

3.163.70

4.43

5.326.11

7.13

8.33

9.55

Participation of cards in household consumption

(% of total)

• Brazil's electronic payment industry has experienced significant growth in recent years (CAGR 16%+)

• The penetration of cards in total Brazilian household spending grew from 8% in 1999 to 27% in 2011. It is expected to reach 40% by 2017.

Number of Cards (in million of units)

& Number of Transactions (in billion of units)

CAGR 08-12E10%

CAGR 08-12E16%

** Estimated * Source: ABECS

2011 2013 2017 2022 2025

27%31%

40%

52%55%

5

Electronic payment eco-system

Card / Billing

Purchase

Capture of Electronic

Transactions

Request for Authorizati

on

Authorization

Payment

Brands

Acquirers

6

Request for Authorizati

on

Authorization

Payment Payment

Payment

Merchants

Acquirers

Brands

Issuers(Banks & Retailers)

Cardholders

Brands

Acquirers

7

Merchants

Acquirers

Brands

Issuers(CSU´s clients)

Cardholders

CSU offers a full range of services to card issuers

• Billing• Invoicing• Conflict Resolution• Customer Support

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

CSU plays a central role in Brazil’s

electronic transaction industry

• Financial Information• Interchange• Electronic Transaction Processing

Brands

Acquirers

8

Merchants

Acquirers (CSU´s clients)

Brands

Issuers(Banks & Retailers)

Cardholders

CSU plays a central role in Brazil’s

electronic transaction industry

CSU offers a complete solution for acquirers and merchants

• Operation management• Information system• Authorization• Billing• Network• Accounting• Processing• Back Office

•Capture Network (POS terminals)

•Contact Center•Conflict Resolution•Billing

CSU MarketSystem is a leading customer engagement & monetization solutions provider in Brazil:

9

CSU operates in the promising marketing services arena

ACQUISITION

RELATIONSHIP

SALES

ACTIVATION

RETENTION DATA INTELLIGENCE

● More than 25 loyalty programs managed in 10 years

● 6 million loyal clients

● 11 billion loyalty points processed annually

● 200 thousand rewards/gifts delivered every year

• Brazilian market estimated at R$ 10,8 billion in 2012 and an expected growth of 10% in the next year;

• Growth in demand for customer service;

• Recognition of those providers best able to meet contracted SLAs;

• Continuous growth in collection, telemarketing and on-site customer services.

0 1000 2000 3000 4000 5000 6000 7000

34

117

165

208

239

355

424

3,980

6,430

Market Share

(in % of sales)

Brazilian demand per type of client

(in R$ million)

Customer Care40%

Telemarketing15%

Other players7%

Collection38%

Brazilian demand per type of service

(in % of sales)

Financial Institutions

Convergence

Retail

Manufacturing

Services

Insurance

Utilities

Government

Healthcare

10

Contax 30.1%

Atento 24.8%Tivit 13.2%Algar 4.5%

Almaviva 2.5%

CSU 2.1%Others 22.6%

Growth strategy is supported by a differentiated platform

• Accelerated time to market to new clients

• Lower operating costs leveraged by scale gains

• Excellent infrastructure and superior operations facilities

TECHNOLOGYTECHNOLOGY

INDEPENDENCEINDEPENDENCE

PERFORMANCEPERFORMANCE• 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 and Visa certification to provide services for merchant acquirers

• Opportunity for various partnerships and M&A

11

Strategy focusing sustainable profitability

Improve and expand contact center/BPO

and increase profitability:

self sustainable

Consolidate entry as a vendor into the

merchant acquiring segment: greenfield growth

Keep expanding in the card issuers segment:

organic + inorganic

Continue investing in technology and

software development:

competitive advantage

Market intelligence, data analytics &

CRM solutions: value added

service

12

2005 2006 2007 2008 2009 2010 2011 2012**

21.6

59.5

109.1

95.0

55.5

23.8

42.636.1

0.4x

1.5x

3.2x

1.5x

0.7x0.3x

0.7x 0.6x

Continuous investments and healthy capital structure

• Ca. 6/7% of net revenues are

invested in technology.

• Significant reduction in

indebtedness over the last 3

years;

• Debt profile is appropriate for

future expected cash flow, while

enough to take advantage of new

investment opportunities in its

market segment.

Investments

(in R$ million)

Net Debt and Net Debt/EBITDA

(in R$ million and ratio)

2009 2010 2011 1H12

23.9 19.9 23.6

8.2

16.7

8.7

18.7

2.6

40.6

28.6

42.3

10.8

CSU CardSystem CSU Contact

** rolling 12 month EBITDA 13

• Total of R$ 2.1 million invested in CARD3 stock buybacks during 1H12

• Interest on equity amounting to R$ 7.5 million paid in January´12

• Cash balance ended the 1H12 totaling R$ 24.8 million

Net operating cash

generation on

1H12:

R$ 26.4 million

14

Strong cash generation allow for dividend payments

Consistent recovery in profitability

•Recent commercial achievements will present major contribution to revenues as of 2013

•Attractive gross profit

•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

Net Revenues

(in R$ million)

Profitability Evolution

(in R$ million)

2006 2007 2008 2009 2010 2011 1H12

46.3 45.5

73.7

106.0114.6

103.3

52.1

39.3 33.9

64.4

78.9 78.1

65.4

40.5

-11.1 -6.36.7

17.0

33.122.6

13.6

Gross Profit EBITDA Net Profit

2006 2007 2008 2009 2010 2011 1H12

318 319364

395 383 398

196

15

CARD3 is traded at inexpensive levels as compared to the market

Company nameNet revenue (US$ million-

12M)

Gross Margin(%)

EBITDA Margin

(%)

Net Margin(%) EV/EBITDA P/E

10,733.4 69.9 22.2 -4.2 - -

2,203.8 64.4 18.4 8.5 7.6 17.9

1,855.8 - 27.9 13.0 8.3 18.7

Financial Services Average 4,931.0 67.2 22.8 5.8 8.0 18.3

1,690.7 13.5 9.0 0.1 7.0 N/A

Contact Center Average 1,690.7 13.5 9.0 0.1 7.0 N/A

197.3 27.0 18.1 6.5 2.9 6.9

1. Current data: Last 12 months - Last balance sheet and income statement - reference date Aug. 13, 20122. Methodology for calculating EBITDA standardized by Economática

16

2006 2007 2008 2009 2010 2011 1H12

54.4 50.9

71.2

94.3103.3

94.4

44.5

2006 2007 2008 2009 2010 2011 1H12

156.7 159.2

213.9

253.7 240.8221.3

116.1

-> strong and consistent operating performance

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

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

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

Average Cardbase

(in million of units)

Gross Revenue

(R$ million)

Gross Profit and Gross Margin

(in R$ million and % of net revenues)

2008 2009 2010 2011 1H12

20.1

24.320.6

23.820.5

16.4

20.9

17.0

22.9

19.2

Registered Cards Billed cards

37.7% 34.4% 36.0%

40.4%46.3% 46.2%

42.0%

17

2006 2007 2008 2009 2010 2011 1H12

0.9

-5.4

2.4

11.6 11.38.9

7.6

0.5%

-3.2%

1.5%

7.2% 7.0%4.6%

8.5%

2006 2007 2008 2009 2010 2011 1H12

197.6174.3 177.2 172.7 171.9

206.3

96.2

2006 2007 2008 2009 2010 2011 1H12

4,2834,796

4,225

3,4943,757

4,090 4,016

-> positioned for profitable growth

• Important structural changes concluded in 2011 to strengthen market repositioning;

• Effective creation of a business unit;

• Dedicated sales team: new offerings and expanded prospects base;

• Specialized HR professionals: labor intensive activity.

Number of Workstations

(in units)

Gross Revenue

(in R$ million)

Gross Profit and Gross Margin

(in R$ million and % of net revenues)

18

Consolidated Financial Information

(in R$ million and % of net revenues) 2006 2007 2008 2009 2010 2011 1H11 1H12

Net Revenue 318.8 318.6 363.7 394.8 383.3 397.6 194.6 195.8

Gross Profit

Gross Margin

46.3 45.5 73.7 106 114.6 103.3 47.8 52.2

14.5% 14.3% 20.3% 26.8% 29.9% 26.0% 24.6% 26.7%

Gross Margin

45.4 50.9 71.2 94.3 103.3 94.4 45.6 44.6

34.1% 34.4% 36.0% 40.4% 46.3% 46.2% 47.0% 42.0%

Gross Margin

0.9 -5.4 2.4 11.6 11.3 8.9 2.2 7.6

0.5% -3.2% 1.5% 7.2% 7.0% 4.6% 2.2% 8.5%

EBITDA 39.6 33.9 64.4 78.9 78.1 65.5 30.3 40.5

Net Profit -16.5 -6.3 9.5 17.9 33.1 22.6 10.3 13.6

Net Debt 59.5 109.1 95.0 55.5 23.8 42.6 52.9 36.1

Capex 28.9 46.9 25.4 40.6 28.5 42.3 24.1 10.8

19

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 40% free float

Active Sustainability Arm (CSU Institute)

20

CSU Executive Board Organizational Chart

Marcos Ribeiro LeiteCEO

Mônica MolinaIR and

Corporate Development

Officer

Ricardo Ribeiro LeiteCFO

Mary Mizuno

New Business & Marketing

Director

Gilson Sanches

Key Accounts Director

Card/Acquirer

Anacristina Lugli

New Products & Innovation

Director

Wanderval Alencar

Commercial Director

Card/Acquirer

Juarez Soares +

Malker Mendes

Commercial Directors

CSU Contact

Danilo EngelGeneral Manager

MarketSystem

João Carlos Matias

COO CardSystem MarketSystem & Acquirer

21

Mônica Hojaij Carvalho Molina

Investor RelationsTel: +55 (11) 2106-3821E-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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