© 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
3Q09 Results Presentation 3© Todos os direitos reservados para CTEEP
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.
3Q09 Results Presentation 4© Todos os direitos reservados para CTEEP
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
3Q09 Results Presentation 5© Todos os direitos reservados para CTEEP
Capital Market Performance
Capitalization of Goodwill
Company Update
3Q09 Results
Agenda
3Q09 Results Presentation 6© Todos os direitos reservados para CTEEP
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%
3Q09 Results Presentation 7© Todos os direitos reservados para CTEEP
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$' 000) 3Q09 2Q09 3Q08Change %
2Q09/3Q09
Change %
3Q08/3Q09
Personnel (28,686) (28,373) (27,469) 1.1% 4.4%
Material (5,654) 108 (2,144) N/A 163.7%
Services (23,013) (22,792) (18,775) 1.0% 22.6%
Depreciation (47,192) (47,012) (45,481) 0.4% 3.8%
Contingencies (17,248) (2,390) (22,902) 621.7% -24.7%
Other (7,033) (6,762) (7,854) 4.0% -10.5%
Total (128,826) (107,221) (124,625) 20.1% 3.4%
Cost of Services and General and Administrative Expenses
3Q09 Results Presentation 8© Todos os direitos reservados para CTEEP
Strong Cash Generation
(R$ 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%
3Q09 Results Presentation 9© Todos os direitos reservados para CTEEP
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$' 000) (79,666) (81,147) (71,569) -1.8% 11.3%
3Q09 Results Presentation 10© Todos os direitos reservados para CTEEP
Net Income
(R$ 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%
3Q09 Results Presentation 11© Todos os direitos reservados para CTEEP
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 Presentation 12© Todos os direitos reservados para CTEEP
Capitalization of Goodwill
3Q09 Results
Company Update
Capital Market Performance
3Q09 Results Presentation 13© Todos os direitos reservados para CTEEP
Capital Market Performance
� 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 Results Presentation 14© Todos os direitos reservados para CTEEP
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 Results Presentation 15© Todos os direitos reservados para CTEEP
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.
3Q09 Results Presentation 16© Todos os direitos reservados para CTEEP
Agenda
Capital Market Performance
3Q09 Results
Company Update
Capitalization of Goodwill
3Q09 Results Presentation 17© Todos os direitos reservados para CTEEP
Capitalization of Goodwill
� 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.
3Q09 Results Presentation 18© Todos os direitos reservados para CTEEP
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.
3Q09 Results Presentation 19© Todos os direitos reservados para CTEEP
Investor Relations
Phone: +55 11 3138-7557
email: [email protected]
www.cteep.com.br/ir
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