3Q10 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 expected events, 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 differ significantly 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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3Q10 Highlights

Main Indicators (R$ thousand) 3Q10 3Q09 ∆%

Gross Revenue 103,564 106,225 -2.5%

CSU CardSystem 59,948 64,863 -7.6%

CSU.Contact 43,616 41,362 5.4%

Net Revenue 95,992 98,529 -2.6%

Gross Income 28,311 27,824 1.8%

Gross Margin 29.5% 28.2% 1.3 p.p.

EBITDA 20,570 21,320 -3.5%

Net Income (Loss) 7,204 5,264 36.8%

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Gross Revenue of R$103.6 million. Reduction of 2.5% from 3Q09;

Gross Profit of R$28.3 million. Increase of 1.8% from 3Q09;

Net Income of R$7.2 million. Growth of 36.8% from the same period of 2009.

Operational Data – CardSystem

CSU's card base ends 3Q10 with 20.0 million units;

Increase of 8.8 p.p. in the share of Flex Cards in CSU's base in relation to September last year;

Issuance of over 0.9 million new cards during the quarter;

This reduction is due to the loss of Banco Nossa Caixa resulting from the consolidation of the banking

market

New contract signed with Tribanco in the card issuing segment will increase the participation of CSU in

the market;

CSU signed a processing agreement with Banco do Estado do Rio Grande do Sul (Banrisul), which

represents its first processing agreement in the acquirer segment. 4

11.315.6

19.023.2

20.0

4.9

24.9

3Q06 3Q07 3Q08 3Q09 3Q10

Cards in CSU's Base (million)

BancoNossa Caixa

CSU Card Base

Operational Data – CSU.Contact

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Recovery of growth in the number of workstations, which increased by 6.8% from 2Q10;

CSU aims to resume growth in the number of workstations and consequently reduce idle

capacity at the Alphaview site.

4.002 3.9723.934

3.4943.268 3.248 3.468

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

Workstations in Operation(thousand - Source: CSU)

35,1

29,1

3Q09 3Q10

Cost of Services Rendered (R$ million)

20,6 22,2

3Q09 3Q10

EBITDA / EBITDA Margin(R$ million, %)

24,8 26,2

3Q09 3Q10

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

Financial Information – CardSystem

The lower Revenue and Cost of Services Rendered is due

to the contraction in the client base mentioned earlier;

Gross Income and Gross Margin increased, reflecting the

greater reduction in costs vis-à-vis the reduction in

revenue;

41.4%

47.4%

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40.1%

34.3%

64,9

59,9

3Q09 3Q10

Gross Revenue(R$ million)

-7.6% -17.1% 5.7%

7,9%

35,6

38,6

3Q09 3Q10

Cost of Services Rendered(R$ million)

41,4

43,6

3Q09 3Q10

Gross Revenue(R$ million)

0,8

(1,6)

3Q09 3Q10

EBITDA / EBITDA Margin(R$ million, %)

3,0

2,1

3Q09 3Q10

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

Financial Information – CSU.Contact

7.8%

5.2%

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Gross Revenue grew 5.4%, explained by the higher

volume of services rendered at passive call centers;

Costs increased 8.4%, reflecting the new hires made to

meet the demands of new contracts in the Contact Center;

EBITDA decreased in relation to 3Q09, due to the higher

costs at the unit.

1.9%

5.4%

8.4%-30.7%

-4.0%

21,3 20,6

3Q09 3Q10

EBITDA / EBITDA Margin(R$ million, %)

5.3

7,2

3Q09 3Q10

Net Profit(R$ million)

14,1 14,3

3Q09 3Q10

General and Administrative Expenses(R$ million)

27,8 28,3

3Q09 3Q10

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

Consolidated Financial Information

28,2%29,5%

21.6% 21.4%

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Growth of 1.8% in Gross Income due to Cost reductions at

the Company;

Increase of 1.8% in General and Administrative Expenses

basically reflects the reorganization of the administrative

areas;

Net Profit grew 36.8%, due to the better management of

costs, lower financial expenses and the restructuring

expenses.

-3.5%

1.8%1.8%

36.8%

Net Debt vs. Current EBITDA

Debit – R$ thousand 3Q10 3Q09 ∆%

Short Term Debit 25.3 35.7 -29.1%

Financing and Debt Loan 14.4 24.2 -40.4%

Leasing 10.9 11.5 -5.3%

Long Term Debit 32.1 40.1 -19.9%

Financing and Debt Loan 16.5 25.6 -35.6%

Leasing 15.6 14.5 8.1%

Gross Debt 57.4 75.8 -24.2%

(-) Cash 41.4 8.6 383.8%

Net Cash (Debt) 16.0 67.2 -76.2%

Net-debt-to-current-EBITDA* ratio of approximately 20%;

Reduction of 76.2% in Net Debit which closed the quarter at R$16.0 million;

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

Long-term debt represents 55.9% of the gross amount, while short-term debt accounts

for 44.1%.

*Current EBITDA being understood as a simple annualized version of 9M10 EBITDA 9

Capex

Capex 3Q10 3Q09 ∆%

Systems 4.9 4.6 6.5%

Hardware 1.3 0.3 390.3%

Alphaview 0.2 6.3 -96.5%

Other 0.1 0.6 -87.6%

Capex 6.5 11.7 -45.0%

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Reduction of 45.0% in capex versus the same quarter of 2009, mainly due to the

conclusion of investments in the Alphaview site;

Investment allocated mainly to systems (system customizations, development,

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

peripherals and other equipment);

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.

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130

180

230

280

330

380

430

CSU Stock vs. Index(Base=100 in 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