2Q10 Results Presentation

Disclaimer

This presentation may include forward-looking statements about future events or results

according to the regulations of 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 events expected by it, many of which are beyond its control. Important factors that

may lead to significant differences between actual results and the statements of

expectations about future events or results include the company’s business strategy,

economic conditions in Brazil and abroad, technology, financial strategy, client business

development, financial market conditions, uncertainty regarding the results of its future

operations, plans, objectives, expectations and intentions, among others. As a result of

these factors, the actual results of the Company may significantly differ from those

mentioned 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 should be based on

the veracity, currency or completeness of this information or these opinions. No advisors

to the company or parties related to them or their representatives will be responsible for

any losses that may result from the use or the contents of this presentation.

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2Q10 Highlights

Main Indicators (R$ thousand) 2Q10 2Q09 ∆%

Gross Revenue 106,474 108,612 -2.0%

CSU CardSystem 62,427 62,274 0.2%

CSU.Contact 44,047 46,338 -4.9%

Net Revenue 99,013 100,495 -1.5%

Gross Income 26,211 25,434 3.1%

Gross Margin 26.5% 25.3% 1.2 p.p.

EBITDA 19,433 20,534 -5.4%

Net Income (Loss) 6,184 4,772 29.6%

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Gross Revenue of R$106.5 million. Reduction of 2.0% from 2Q09;

Gross Profit of R$26.2 million. Increase of 3.1% from 2Q09;

Net Income of R$6.2 million. Growth of 29.6% from the same period of 2009.

Operational Data – CardSystem

CSU's card base ends 2Q10 with 25.1

million units;

Increase of 4 p.p. in the share of Flex

Cards in CSU's base in relation to June

last year;

Issuance of over 1.1 million new cards

during the quarter.

Increase of 4.1% in the accounts

managed by MarketSystem in relation

to the prior quarter;

Expansion in card base driven by new

clients in the first quarter of the year;

Negative change by 8.8% in one year.

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9,7 10,1

14,2

17,7

21,6

25,1

2Q05 2Q06 2Q07 2Q08 2Q09 2Q10

Cards in CSU's Base (million) 16.4%

2,8

3,1

2,42,5

2,6

2Q09 3Q09 4Q09 1Q10 2Q10

MarketSystem - Processed Accounts(million)

4.1%

Operational Data – CSU.Contact

5

No significant change in the number of workstations during the quarter;

In view of the sales performance of CSU.Contact, the executive board decided to

change the management of this area of the Company;

The Company aims to resume growth in the number of workstations in order to dilute the

unit's fixed costs.

4.520 4.5064.225

4.002 3.972 3.934

3.4943.268 3.248

2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10

Work Stations(thousand - Source: CSU)

18,6 19,7

2Q09 2Q10

EBITDA / EBITDA Margin(R$ million, %)

5.6%

21,7 23,3

2Q09 2Q10

Gross Profit / Gross Margin(R$ million, %)

7.8%

62,3 62,4

2Q09 2Q10

Gross Revenue(R$ million)

0.2%

Financial Information – CardSystem

Revenue remained stable due to the organic growth in the

base, which offset the move by one client to perform in-

house their printing and billing operations;

The drop of 3.2% in costs is explained by the internalization

of printing services and the renegotiation of fees with

suppliers of telecom services;

The stability in Revenue combined with the drop in Costs led

to growth of 7.8% in Gross Income.

37.8%

41.3%

6

34.0%

32.5%

35,7

34,5

2Q09 2Q10

Services Rendered Costs(R$ million)

-3.2%

3,8

2,9

2Q09 2Q10

Gross Profit / Gross Margin(R$ million, %)

-23.9%

Financial Information – CSU.Contact

8.8%

7.0%

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Drop of 4.9% in Gross Revenue was due to the lower

volume of services at inbound call center services;

Reduction of 2.8% in Costs is explained by the lower labor

costs due to the lower volume of services, the

renegotiation of telecom contracts and the consolidation of

call center sites;

Decrease in EBITDA, reflecting the drop in Revenue

without a proportional drop in Costs and Expenses.

46,3

44,0

2Q09 2Q10

Gross Revenue(R$ million)

-4.9%

39,4

38,3

2Q09 2Q10

Services Rendered Costs(R$ million)

-2.8%

-112.7%

1,9

(0,2)

2Q09

EBITDA / EBITDA Margin(R$ million, %)

2Q10

4.4%

-0.6%

25,4 26,2

2Q09 2Q10

Gross Profit / Gross Margin

(R$ million, %)

3.1%

Consolidated Financial Information

25.3%26.5%

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Growth of 3.1% in Gross Income due to Cost reductions at

the Company;

Increase of 4.0% in General and Administrative Expenses

basically reflects the reorganization of the administrative

areas and the wage increase under the collective

bargaining agreement;

Growth in Net Income of 29.6% Income, due to the lower

expenses due to nonrecurring impacts.

4,8

6,2

2Q09 2Q10

Net Income(R$ million)

29.6%

13,6 14,1

2Q09 2Q10

General and AdministrativeExpenses

(R$ million)

4.0%

20,5 19,4

2Q09 2Q10

EBITDA / EBITDA Margin(R$ million, %)

- 5.4%

20.4%

19.6%

Debt

Debit - R$ thousand 2Q10 2Q09 ∆%

Short Term Debit 23.4 46.4 -49.5%

Financing and Debt Loan 13.6 36.5 -62.7%

Leasing 9.8 9.9 -0.6%

Long Term Debit 37.3 31.6 17.9%

Financing and Debt Loan 20.3 20.0 1.4%

Leasing 16.9 11.6 46.4%

Gross Debt 60.7 78.0 -22.2%

(-) Cash 28.3 0.5 5628.2%

Net Cash (Debt) 32.4 77.5 -58.2%

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Net-debt-to-current-EBITDA* ratio of approximately 40%;

Reduction of 58.2% in Net Debit which closed the quarter at R$32.4 million;

Lower Net Debt explained by the Company's higher cash balance;

Long-term debt represents 61.4% of the gross amount, while short-term debt accounts

for 38.6%.

*Current EBITDA being understood as a simple annualized version of 1H10 EBITDA

Capex

Capex 2Q10 2Q09 ∆%

Systems 5.3 4.6 14.3%

Hardware 1.4 0.6 126.8%

Alphaview 0.2 1.5 -85.9%

Other 0.1 0.0 591.6%

Capex 7.0 6.8 3.8%

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Increase of 3.8% in capital expenditure from the same quarter in 2009, in line with the

annual plan;

Investment allocated mainly to systems (system customizations, development,

authorization, etc.) and hardware (computer purchases and updates, no-breaks, DPC,

peripherals and other equipment);

Investment of R$0.5 million in customizations exclusively for the Acquirer segment.

Main Strategies for 2010

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Capture new clients in all CSU business units to leverage the company's growth;

Consolidate CSU's entry into the processing for Acquirers segment;

Resume growth at the CSU.Contact unit in order to dilute fixed costs at the Alphaview

site;

Continue investments in technology, especially in the Acquirer segment and to maintain

software up-to-date and develop new products and services.

80

130

180

230

280

330

380

430

CSU' Shares x Indicators(100 basis on December, 2008)

CSU Shares IBOVESPA

Questions & Answers

Questions & Answers

Décio Burd

Phone: (55 11) 3030-3821

E-mail: ri@csu.com.br

Site: www.csu.com.br/ir