2009 11-16 cteep-presentation_3_q09

© Todos os direitos reservados para CTEEP

São Paulo, November 16 th 2009

3Q09 ResultsPresentation

3Q09 Results Presentation 2© Todos os direitos reservados para CTEEP

Agenda

Capital Market Performance

Capitalization of Goodwill

3Q09 Results

Company Update


Company Update

Leading private sector energy transmission concessionaire in

Brazil.

Responsible for transmission of30% of electricity produced in the country and 60% of consumption

in the Southeast.

First São Paulo electricity energy company to sign up to Bovespa’s

Level 1 Corporate Governance.

Footprint in 12 states.


Common Shares - TRPL3(42% of the total)

89,40%

9,85%0,75%

ISA Capital do Brasil

Eletrobrás

Others

CTEEP and its Shareholder’s Breakdown

Total Capital Stock

35,33%

27,17% 37,50%

ISA Capital do Brasil

Eletrobrás

Others

Preferred Shares - TRPL4(58% of the total)

35,58%

10,68%

53,74%

Eletrobrás

Finance Secretary

Others




Company Update

3Q09 Results

Agenda


Net Revenue

Revenue linked to uptime of the Company’s assets

(R$ million)

448,7413,1

440,4

3Q08 2Q09 3Q09

+6.6%

-1.9%


Main changes:

� The increase in payroll expenses in 3Q09 against the same period in 2008 is due to the annual wage bargaining agreement of 6.2% in August 2009;

� The increase in outsourced services for employee training and development, and the cost of sterilizing working environments;

� In 3Q09, expenses relating to allowances for contingencies fell by 24.7% as compared with 3Q08, principally due to the reduction in volume of new processes.

Cost of Operating Expenses

(R$' 000) 3Q09 2Q09 3Q08Change %

2Q09/3Q09

Change %

3Q08/3Q09

Personnel (28,686) (28,373) (27,469) 1.1% 4.4%

Material (5,654) 108 (2,144) N/A 163.7%

Services (23,013) (22,792) (18,775) 1.0% 22.6%

Depreciation (47,192) (47,012) (45,481) 0.4% 3.8%

Contingencies (17,248) (2,390) (22,902) 621.7% -24.7%

Other (7,033) (6,762) (7,854) 4.0% -10.5%

Total (128,826) (107,221) (124,625) 20.1% 3.4%

Cost of Services and General and Administrative Expenses


Strong Cash Generation

(R$ million)

EBITDA

369,2 352,9 358,8

82,4%

85,4%

81,5%

(50,0)

300,0

650,0

3Q08 2Q09 3Q0965,0%

70,0%

75,0%

80,0%

85,0%

Ebitda Ebitda Margim

+1.7%

-2.9%


Financial Results

� The principal factor impacting this item was the growth in charges on debt, most notably on commercial papers notes settled in 2Q09;

� Excluding interest on shareholders’ equity from financial expenses, the financial result would have

reported an expense of R$ 17.6 million in the quarter.

Financial Income (R$' 000) 3Q09 2Q09 3Q08Change %

1Q09/2Q09

Change %

2Q08/2Q09

Income from financial investments 3,541 4,383 4,951 -19.2% -28.5%

Interest on assets 888 943 997 -5.8% -10.9%

Net monetary variations 2,009 3,377 1,097 -40.5% 83.1%

Other 231 200 189 15.5% 22.2%

Total Financial Income 6,669 8,903 7,234 -25.1% -7.8%

Financial Expenses (R$' 000) 3Q09 2Q09 3Q08Change %

1Q09/2Q09

Change %

2Q08/2Q09

Interest on own capital (62,055) (63,938) (60,388) -2.9% 2.8%

Interest on liabilities (14,367) (15,944) (17,873) -9.9% -19.6%

Charges on promissory notes 0 - 0 - -

Other (1,033) (889) (542) 16.2% 90.6%

Total Financial Expenses (86,335) (90,050) (78,803) -4.1% 9.6%

Financial result, net (R$' 000) (79,666) (81,147) (71,569) -1.8% 11.3%


Net Income

(R$ million)

Earnings per share of R$ 1.45 in the second quarter of 2009.

231,1 219,7 218,7

(50,0)

300,0

3Q08 2Q09 3Q09

-0.4%

-5.4%


Breakdown of Debt in 3Q09

Optimization of Capital Structure

Others

0.29%

CDI

44.20%

TJLP

55.52%

Funding Charges Maturity 3Q09 2Q09

BNDESCTEEP TJLP + 2.3% ano 6/15/2015 537,325 560,628IEMG TJLP + 2.3% ano 6/15/2023 41,434 42,197

Commercial Papers

2sd Issue 119.5% do CDI 4/19/2010 208,322 202,622

3th Issue 106.5% do CDI 1/13/2010 202,960 -

123% do CDI 7/17/2009 - 20,084113% do CDI 7/30/2009 - 20,0082.5% do CDI 2/14/2010 37,720 - 3% do CDI 4/15/2010 11,752 -

Eletrobrás 8% ao ano 11/15/2021 503 516Leasing - 2,332 2,373

Total 848,428

Banks

1,042,348



3Q09 Results

Company Update




� 44.8 thousand trading transactions in 3Q09 (701 daily average traded). Growth of84.6% compared with 3Q08;

� Present on all trade days;

� 27.17% Free-float ;

� Component of Ibovespa;

� R$ 7.6 billion market capitalization.

Trading Financial - 3Q09(R$ million)

0.002.004.00

6.008.00

10.0012.0014.00

16.0018.0020.00

Jul-09 Aug-09 Sep-09

Total R$ 521.59 million Daily Avarege: R$ 8.15 million

EVOLUTION - 9M09IBOV x IEE x TRPL4 x TRPL3

63,83%

46,03%

18,45%15,36%

IBOVIEETRPL4TRPL3


3Q09 Shareholder Remuneration

In 3Q09, the Company authorized the payout of R$ 62.0 million in interest on shareholders’equity corresponding to R$ 0.411900 per shares and R$ 103.4 million in dividends, equivalent

to R$ 0.688825 per share.

Date Type Ex-date Fiscal Year Amount (R$) Per ShareDate of

Payment

3/31/2009 Juros 4/14/2009 2009 63,235,647.08 0.423590 4/24/2009

6/19/2009 Juros 6/23/2009 2009 63,938,332.64 0.428297 7/1/2009

6/30/2009 Dividendos 7/7/2009 2009 60,842,175.35 0.407557 7/21/2009

9/30/2009 Juros 10/7/2009 2009 62,055,436.65 0.411900 10/21/2009

9/30/2009 Dividendos 10/7/2009 2009 103,444,563.35 0.686625 10/21/2009

R$ 353,516,155.07 R$ 2.35797TOTAL OF PAYMENT - 2009


3Q09 Investor Relations Events

� The Abrasca Award for the Creation of Shareholder Value – SectoralHighlight in the Electric Energy Segment: CTEEP received the award on October 28 2010 in recognition of creation of shareholder value;

� Holding of the 1st Analysts Meeting at the Company’s head office providing the opportunity for CTEEP to discuss the details of ANEEL’s recently published Ratifying Resolution 843 setting the RAP for the 2009/2010 cycle;

� 1 non-deal national roadshow (São Paulo);

� 35 meetings held at the Company’s head office and more than 250 responses by e-mail and telephone during the quarter;

� At the end of 3QO9, 9 institutions were providing Company coverage – an increase of 80% over the past twelve months.


Agenda


3Q09 Results

Company Update




� R$ 26.4 million in favor of the controlling shareholder, ISA Capital do Brasil, paid from the special reserve for goodwill as registered in CTEEP’sshareholders’ equity;

� The right to subscribe up to R$ 44.1 million was granted to the other shareholders in such a way as not to dilute their stakes in the Company’s capital stock;

� The average price established at R$ 45.97 per share for both classes of share considering the average trading price for preferred shares in the two months prior to the last trading day before the EGM;

� The maximum quantity of new shares to be issued is 1,534,717, which would represent an increase in capital stock of 1.03% in the number of shares; and

� The subscription period was from June 17 2009 to July 17 2009.

The Extraordinary General Meeting of June 16 approved the increase

in the capital stock of up to R$ 70.5 million with the following characteristics:

Following the termination of the subscription period on July 17 the total amount

subscribed was R$ 63,049,004.25, corresponding to 89.4% of the total capital

increase proposed.


Disclaimer

All statements contained herein with regard to the Company’sbusiness prospects, projected results and the potential growthof its business aremere forecasts, based on local managementexpectationsin relation to the Company’s future performance. Dependent as they are on market shifts and on the overall

performance of the Brazilian economy and the sector and international markets, such estimates

are subject to changes.


Investor Relations

Phone: +55 11 3138-7557

email: [email protected]

www.cteep.com.br/ir

2009 11-16 cteep-presentation_3_q09

Business

Transcript of 2009 11-16 cteep-presentation_3_q09