Cteep presentation 1 q12_may_14_2012

Your energy INSPIRES US 1

1Q12 Results Presentation São Paulo, May 15th 2012


Capital Market Performance

1Q12 Results

CTEEP

Operating Performance


CTEEP Profile

A estratégia da CTEEP é baseada no crescimento sustentável com foco na contínua criação de valor

12,993 Km of transmission lines;

18,782 Km of circuits;

2,488 Km of optic fiber cables

106 substations.

Responsible for the annual transmission of 28.8% of all electricity produced in the

country, 60% of the energy consumed in the Southeast Region and nearly 100% in the

state of São Paulo;

The largest private sector concessionaire operating a public utility service for the

transmission of energy in Brazil, controlled by ISA, one of the largest energy

transmission groups in Latin America.


Corporate Structure


CTEEP is a company which has a series of corporate participations, its results depending directly on the results

of its subsidiaries and joint ventures. Control of these companies arises when the Company has the power to

control financial and operational policies of an entity, thereby accruing benefits to its activities.


Expansion of national Territory

A estratégia da CTEEP é baseada no crescimento sustentável com foco na contínua criação de valor Largest Non-stop Transmission

Lines under construction in the

world (IEMadeira)

Starting in the continuous current

technology

Relevant Interconnection Projects

in the North of Brazil

Major supporting Works in the

South and Southeast of Brazil


CTEEP Market Share


CTEEP holds 16% of the market transmission

CTEEP holds 16% of the market transmission

RAP Total: 15.247

Bid Not Bid

2.129 2.022

462

1.288

1.010 858

- -

465 279

-

265

- - - - 85

407

302

1.819

422

471

370

627 546

26 191

268

-

231 221 192 76

216

2.537

2.324 2.281

1.710

1.481

1.229

627 546

491 470

268 265 231 221 192 76

301

Furnas CTEEP CEMIG + Taesa

Chesf Eletronorte Eletrosul State Grid Alupar CEEE Copel Isolux Cien Abengoa Elecnor Cobra CYMI OutrasOutras

CTEEP holds 16% of the market RAP trasmission.

CTEEP holds 16% of the market RAP trasmission.

RAP Total: 15.247

Bid Not Bid


1Q12 Results


CTEEP



Uptime of Assets


CTEEP’s operating revenue is directly related to the uptime of its assets: transmission lines, reactors and transformers.

Transmition lines Transformers Reactors

2008 2009 2010 2011 1Q12 2008 2009 2010 2011 1Q122008 2009 2010 2011 1Q12

Goal ------------------------------

99.75% ------------ --------------------

99.50% ------------ -------------------- 99.55% ------------ --------------------


National Interconnection System (SIN)


GWh

130,626 129,762 140,000 141,127

37,250

448,090 443,585 475,090 491,271

129,425

2008 2009 2010 2011 1Q12

CTEEP Others

313,823 335,090 350,144

92,175

317,464


1Q12 Results


CTEEP



Highlights


Gross Operation Revenue: R$ 722.1 million Net Operation Revenue: R$ 651.4 million EBITDA: R$ 350.7 million EBITDA Margin: 53.8% Net Income: R$ 205.1 million


Gross Operating Revenue

A estratégia da CTEEP é baseada no crescimento sustentável com foco na contínua criação de valor (R$ million)


Net Operating Revenue


(R$ million)

607.0

706.5 651.4

.0

.0

.0

.0

.0

.0

.0

.0

1Q11 4Q11 1Q12


Maintenance Services Costs and Operating Expenses


(R$' 000) 1Q12 4Q11 1Q11 Change % 1Q12/4Q11

Change % 1Q12/1Q11

Personnel (48,174) (44,319) (38,800) 8.7% 24.2%

Material (125,594) (137,144) (146,621) -8.4% -14.3%

Leases and rentals (2,145) (2,205) (1,855) -2.7% 15.6%

Services (74,838) (201,528) (63,242) -62.9% 18.3%

Other (6,162) (4,701) (5,219) 31.1% 18.1%

Total (256,913) (389,897) (255,737) -34.1% 0.5%

Cost of Services


General and Administrative Expenses


(R$' 000) 1Q12 4Q11 1Q11 Change % 1Q12/4Q11

Change % 1Q12/1Q11

Personnel (12,918) (10,179) (9,776) 26.9% 32.1%

Material (504) (394) (253) 27.9% 99.2%

Leases and rentals (1,464) (1,037) (995) 41.2% 47.1%

Services (13,758) (14,064) (11,452) -2.2% 20.1%

Depreciation (1,269) (1,405) (1,513) -9.7% -16.1%

Contingencies (5,576) 17,625 (5,582) 131.6% -0.1%

Other (9,549) (12,051) (6,083) -20.8% -57.0%

Total (45,038) (21,505) (35,654) 109.4% 26.3%

General and Administrative Expenses


Ebitda and Ebitda Margin


(R$ million)

317.2 296.5

350.7

1Q11 4Q11 1Q12

Ebitda EBITDA Margin

52.2%42.0%

53.8%


Net Income


(R$ million)

205.8 164.0

205.1

.0

1.0

1Q11 4Q11 1Q12


Capital Structure


(*) with Swap 103,5% CDI (**) with Swap 98,3% CDI (***) The cost of debt is 8.5% annually, including a performance bonus of 1.5%..

BNDESTJLP + 2.3% year 6/15/2015 304,747 328,318 TJLP + 1.8% year 6/15/2015 182,971 196,251

IEMG TJLP + 2.4% year 4/15/2023 56,359 57,631 TJLP + 2.8% year 7/15/2012 231,372 229,947 TJLP + 2.8% year 7/15/2012 142,397 71,890

IESUL TJLP + 2.4% year 5/15/2025 9,598 9,568 PINHEIROS TJLP + 2.6% year 5/15/2025 126,682 125,434

TJLP + 1.9% year 5/15/2026 51,292 48,282 TJLP + 1.5% year 5/15/2026 44,334 42,217

Comercial Papers5th Series - CTEEP CDI + 0.4% year 7/5/2012 325,131 316,885 4th Series - CTEEP CDI + 0.4% year 1/12/2012 ‐ 223,048 6th Series - CTEEP 104,9% CDI year 1/5/2013 408,548

Debentures1st Issuance - CTEEP CDI + 1.3% year 12/15/2014 504,617 490,736 2sd Issuance - CTEEP IPCA + 8.1% year 12/15/2017 69,468 67,117 Single Series ‐ IEMadeira 106.5% CDI year 9/15/2012 224,202 221,608

BanksUSD + 4% year * 4/26/2013 119,572 122,077

USD + 2.1% year ** 10/21/2013 157,804 159,116 CDI + 2.0% year 10/21/2013 4,348 4,365 10.0% year ‐ 55,737 55,898

Eletrobras 8% year 11/15/2021 378 391 Leasing ‐ ‐ 540 619

3,020,097 2,771,398TOTAL CONSOLIDATED

4Q11

CTEEP

IENNE

FUNDING CHARGES MATURITY 1Q12

IEMADEIRA

SERRA DO JAPI

CTEEP

TJLP38.1%

CDI48.6%

IPCA2.5%

Others11.1%

Distribuition of debt burdens

BNDES38.1%

Comercial Papers24.3%

Debentures26.4%

Banks12.4%

Distribuition of debt

contracting


Breakdown of Net Debt


At the end of 1Q12, net debt stood at R$ 2,811.7 million, representing an increase of 9.7% in relation to 4Q11.

The net debt to shareholders equity ratio at the end of 1Q12 was 60.7%.

(R$ '000) 1Q11 4Q11 1Q12DebtShort-term Debt 559,278 1,397,498 1,700,195

Long-term Debt 1,186,951 1,373,900 1,319,902

1,746,229 2,771,398 3,020,097

Cash 162,998 207,295 208,432 162,998 207,295 208,432

Net Debt 1,583,231 2,564,103 2,811,665


Breakdown of Net Debt


As a contractual obligation under its financing

agreements, the Company must comply with

quarterly and semi‐annually determined

covenants on the basis for the financial

statements for these periods and prepared in

line with generally adopted accounting practices

in Brazil. The Company’s principal covenant is

the Net Debt to Ebitda ratio that should be

equal or less than 3.5.

1,583.2

2,564.1

2,811.7

1Q11 4Q11 1Q12

Net Debt

(R$ million)

1.3

1.8 1.9

Net Debt/EBITDA (Last 12 months)


1Q12 Results


CTEEP



Capital Market



Capital Market


58.5 thousand trading transactions in 1Q12 (818 daily average traded);

Present on all trade days;

Component of Ibovespa;

R$ 9 billion market capitalization.

0.0

5.0

10.0

15.0

20.0

25.0

Jan‐12 Feb‐12 Mar‐12

Trading Financial 1T12(R$ million)

Total R$ 631 million Daily Avarege: R$ 10 million


Shareholder’s Remuneration


In 1Q12, CTEEP paid out to its shareholders R$ 64.2 million as interest on shareholders’ equity, corresponding to

R$ 0.42 per share for both types of share and R$ 169.8 million as dividends equivalent to R$ 1.1 per share, again

for both types.

EVENT DATE TOTAL P/SHARE

JPC 64,158,159.95 0.420264

Dividends 169,841,944.86 1.112539

234,000,104.81 1.532803TOTAL OF PAYMENT - 1Q12

AUTHORIZEDTYPE

AMOUNT R$DATE OF PAYMENT

2011RCA 12/21/2011

FISCAL YEAR

1/30/2012


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 management expectationsin 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 protected] www.cteep.com.br/ri

Cteep presentation 1 q12_may_14_2012

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Transcript of Cteep presentation 1 q12_may_14_2012