2010 05-17 cteep-presentation_1_q10

1Q10 Results

© Todos os direitos reservados para CTEEP

São Paulo, May 17 th 2010

1Q10 Results Presentation

Agenda

Capital Market Performance

1Q10 Results

Company Update

© Todos os direitos reservados para CTEEP1Q10 Results Presentation 2


Subsequent Events

Company Update

Leading private sector energy transmission concessionaire in

Brazil.

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

© Todos os direitos reservados para CTEEP 3

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.


CTEEP and its Shareholder’s Breakdown

Common Shares - TRPL3

(42% of the total)

Preferred Shares - TRPL4

(58% of the total)

ISA Capital89.40%

Eletrobras 9.85%

Other Shareholders

Eletrobras53.74%

Secretaria da Fazenda10.68%

Other Shareholders35.58%

© Todos os direitos reservados para CTEEP 41Q10 Results Presentation

9.85%Shareholders

0.75% 10.68%

Total Capital Stock

ISA Capital37.50%

Eletrobras35.33%

Secretaria da Fazenda6.20%Other

Shareholders20.97%


Company Update

1Q10 Results

Agenda



Subsequent Events


419.9 381.2 388.1

+1.8%

-7.6%

Net Revenue

Revenue linked to uptime of the Company’s assets

(R$ million)

© Todos os direitos reservados para CTEEP

1Q09 4Q09 1Q10


Main changes:

� The provision for a reduction in revenue of R$ 21.3 million, the result of the second periodic tariff review cycle;

� Reduction in the Adjustment Portion for the 2009/2010 cycle of R$ 22.9 million with respect to the agreement with the distributors CPFL Paulista and CPEE.

Main changes:

� Reduction of 66.9% in the actuarial gain from the pension and healthcare plans;

Due to the Company’s practice of recording an actuarial gain up to the actuarial liability limit and not recognizingeventual actuarial assets.

� Increase of 177.6% (R$ 6.1 million) in contingency expenses:

Reflects the reversal of the judicial deposit held in escrow with respect to a law suit involving the INSS – FederalSocial Security Service (explanatory note 20 (b) (iv) of 1Q10 ITR (Quarterly Information)).

Cost of Operating Expenses

Cost of Services and General and Administrative Expenses


(R$' 000) 1Q10 4Q09 1Q09Change %

1Q10/4Q09

Change %

1Q10/1Q09

Personnel (41,559) (47,852) (44,119) -13.2% -5.8%

Material (2,918) (2,852) (4,474) 2.3% -34.8%

Deliberation CVM 371/00 3,401 15,062 13,279 -77.4% -74.4%

Services (21,639) (27,954) (19,432) -22.6% 11.4%

Depreciation (50,646) (78,478) (46,576) -35.5% 8.7%

Contingencies (9,627) (1,772) (3,468) 443.3% 177.6%

Other (8,392) (16,611) (6,981) -49.5% 20.2%

Total (131,380) (160,457) (111,771) -18.1% 17.5%

Strong Cash Generation

(R$ million)

EBITDA

84.5%

78.5% 79.2%

- 13.3%


354.7 299.2 307.4

1Q09 4Q09 1Q10

Ebitda Margem Ebitda

+2.7%

Financial Results

Main changes:

� Increase in remuneration on debentures;

� Recognition in 1Q09 of monetary restatement on the Instrument and Acknowledgement of DebtPayment Agreement with the distributors;

� Excluding the effect of interest on shareholders’ equity on financial expenses, the financial result for1Q09 would have been a negative R$ 20.9 million.

Financial Income (R$' 000) 1Q10 1Q09Change %

1Q10/1Q09

Income from financial investments 8,351 2,738 205.0%

Interest on assets 2,527 959 163.5%


Interest on assets 2,527 959 163.5%

Net monetary variations 2,651 28,984 -90.9%

Other 103 188 -45.2%

Total Financial Income 13,632 32,869 -58.5%

Financial Expenses (R$' 000) 1Q10 1Q09Change %

1Q10/1Q09

Interest on own capital (61,920) (63,236) -2.1%

Interest on liabilities (16,443) (17,022) -3.4%

Charges on promissory notes 0 0 -

Other (12,143) (476) 2451.1%

Total Financial Expenses (96,447) (87,726) 9.9%

Financial Result (R$' 000) (82,815) (54,857) 51.0%

Net Income

(R$ million)

228.0

161.6 200.1

0 +23.8%

-12.2%


Earnings per share of R$ 1.3280 in the first quarter of 2010.


) 1Q09 4Q09 1Q10

Breakdown of Debt in 1Q10

BNDES (R$ millions)

TJLP + 2.3% year 06/15/15 491,209 514,117

TJLP + 1.8% year 06/15/15 160,541 -

IEMG TJLP + 2.4% year 04/15/23 39,918 40,680

Commercial Papers

2sd

Issue 119.5% CDI 04/19/10 218,901 213,696

3th Issue 106.5% CDI 01/13/10 - 208,029

Fuding Charges Maturity 1Q10 4Q09

CTEEP

TJLP

70.2%

CDI

29.5%


Debentures

1st Issue CDI + 1.3% year 12/15/14 499,659 -

2sd

Issue IPCA + 8.1% year 12/15/17 59,216 -

Banks

IENNE CDI + 2.5% year 14/2/10* 54,760 45,700

IESUL CDI + 3.0% year 04/15/10 18,953 23,538

Eletrobras 8% per year 11/15/21 478 491

Leasing - 1,815 2,143

Total 1,048,3941,545,450

70.2%

Outros

0.3%

* On February 17 2010, maturities of bank credit certificates were rolled over until July 30 2010

1Q10 Results

Company Update



Subsequents Events




0

2

4

6

8

10

12

14

16

18

20

January-10 February-10 March-10

Trading Financial - 1Q10(R$ million)

Total R$ 478.9 million Daily Avarege: R$ 8.0 million


� 44.3 thousand trading transactions in 1Q10 (738 daily average traded). Growth of 76% compared with 1Q09;

� Present on all trade days;

� 27.17% Free-float ;

� Component of Ibovespa;

� R$ 7.0 billion market capitalization.


80

85

90

95

100

105

January-10 February-10 March-10 April-10

TRPL4 Adjusted

TRPL4 Unadjusted

IBOVESPA

IEE

- 9.47%

- 7.51%

- 0.44%

+ 2.60%

TRPL4, IBOV and IEE - January

to March 2010 (base 100 =

12/31/2009)


$30

$40

$50

$60

$70

1000

1500

2000

2500 Volume of ADRs (thousands)

Financial Volume of ADRs (US$ millions)

tho

usa

nd

s

mil

lio

ns

US$ 54.0

millions

American Depositary Receipts


$0

$10

$20

0

500

Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10

mil

lio

ns

US$ 4.0

millions

Financial Volume of ADRs increase 1,272% compared with 1Q09

1Q10 Shareholder Remuneration

EVENT DATE TOTAL P/SHARE

RCA 3/30/2010 JCP 2010 61,920,147.06 0.411002 20/04/2010 150,656,559

RCA 3/30/2010 Dividendos 2009 129,979,852.90 0.862756 20/04/2010 150,656,559

RCA 1/11/2010 Dividendos 2009 161,000,000.00 1.068656 22/01/2010 150,656,559

352,899,999.96 2.342414

DATE OF

PAYMENTCAPITAL STOCK

TOTAL OF PAYMENT - 1T10

TIPO FISCAL YEARAUTHORIZED AMOUNT R$


In 1Q10, the Company authorized the payout of R$ 61.9 million in interest on shareholders’ equity corresponding to R$ 0.411002 per shares and R$ 290.9 million in dividends, equivalent

to R$ 1.931412 per share.


352,899,999.96 2.342414TOTAL OF PAYMENT - 1T10

Agenda

1Q10 Results

Company Update



Subsequents Events


Subsequent Events

O/EGM resolution on dividend distribution

� At the Ordinary/Extraordinary Shareholders’ Meeting held on April 29 2010, CTEEP’sshareholders approved the allocation of the remaining outstanding net income for 2009 to thepayout of dividends amounting to R$ 77,302,605.60, corresponding to R$ 0.509143 per share ofboth types with the ex-dividend date as of May 5 2010.

� Including the distribution of the remaining balance of net income for fiscal year 2009, theCompany allocated R$ 783.2 million to its shareholders as dividends and interest on shareholders’


Company allocated R$ 783.2 million to its shareholders as dividends and interest on shareholders’equity, corresponding to a dividend payout of 94.6%.

Ratification of the Increase in the Capital Stock

� On April 23 2010, CTEEP’s Board of Directors ratified a capital increase of R$ 56,862.4 thousandthrough the issue of 661,263 common and 511,158 preferred shares, totaling 1,172,421 new shares.

�The value subscribed by the controlling company, via the paying in of the fiscal benefit from theamortization of the goodwill premium on the acquisition of CTEEP was R$ 28,832.1 thousand and theremainder subscribed by the minority shareholders corresponded to R$ 28,030.3 thousand.

�The following graph shows the breakdown in capital stock:

Subsequent Events


Common Shares - TRPL3

(42% of the total)

ISA Capital89.40%

Eletrobras 9.85%

Other Shareholders

0.75%

Preferred Shares - TRPL4

(58% of the total)

Eletrobras53.98%

Secretaria da Fazenda10.62%

Other Shareholders35.40%

Total Capital Stock

ISA Capital37.60%

Eletrobras35.42%

Secretaria da Fazenda6.15%Other

Shareholders20.82%

Disclaimer

All statements contained herein with regard to the Company’s business prospects, projected results and the potential growth of 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


Dependent as they are on market shifts and on the overallperformance 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

2010 05-17 cteep-presentation_1_q10

Economy & Finance

Transcript of 2010 05-17 cteep-presentation_1_q10