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1Q12 Results Presentation São Paulo, May 15th 2012
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Capital Market Performance
1Q12 Results
CTEEP
Operating Performance
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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.
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Corporate Structure
A estratégia da CTEEP é baseada no crescimento sustentável com foco na contínua criação de valor
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.
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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
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CTEEP Market Share
A estratégia da CTEEP é baseada no crescimento sustentável com foco na contínua criação de valor
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
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1Q12 Results
Operating Performance
CTEEP
Capital Market Performance
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Uptime of Assets
A estratégia da CTEEP é baseada no crescimento sustentável com foco na contínua criação de valor
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% ------------ --------------------
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National Interconnection System (SIN)
A estratégia da CTEEP é baseada no crescimento sustentável com foco na contínua criação de valor
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
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1Q12 Results
Operating Performance
CTEEP
Capital Market Performance
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Highlights
A estratégia da CTEEP é baseada no crescimento sustentável com foco na contínua criação de valor
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
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Gross Operating Revenue
A estratégia da CTEEP é baseada no crescimento sustentável com foco na contínua criação de valor (R$ million)
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Net Operating Revenue
A estratégia da CTEEP é baseada no crescimento sustentável com foco na contínua criação de valor
(R$ million)
607.0
706.5 651.4
.0
.0
.0
.0
.0
.0
.0
.0
1Q11 4Q11 1Q12
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Maintenance Services Costs and Operating Expenses
A estratégia da CTEEP é baseada no crescimento sustentável com foco na contínua criação de valor
(R$' 000) 1Q12 4Q11 1Q11 Change % 1Q12/4Q11
Change % 1Q12/1Q11
Personnel (48,174) (44,319) (38,800) 8.7% 24.2%
Material (125,594) (137,144) (146,621) -8.4% -14.3%
Leases and rentals (2,145) (2,205) (1,855) -2.7% 15.6%
Services (74,838) (201,528) (63,242) -62.9% 18.3%
Other (6,162) (4,701) (5,219) 31.1% 18.1%
Total (256,913) (389,897) (255,737) -34.1% 0.5%
Cost of Services
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General and Administrative Expenses
A estratégia da CTEEP é baseada no crescimento sustentável com foco na contínua criação de valor
(R$' 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
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Ebitda and Ebitda Margin
A estratégia da CTEEP é baseada no crescimento sustentável com foco na contínua criação de valor
(R$ million)
317.2 296.5
350.7
1Q11 4Q11 1Q12
Ebitda EBITDA Margin
52.2%42.0%
53.8%
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Net Income
A estratégia da CTEEP é baseada no crescimento sustentável com foco na contínua criação de valor
(R$ million)
205.8 164.0
205.1
.0
1.0
1Q11 4Q11 1Q12
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Capital Structure
A estratégia da CTEEP é baseada no crescimento sustentável com foco na contínua criação de valor
(*) 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
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Breakdown of Net Debt
A estratégia da CTEEP é baseada no crescimento sustentável com foco na contínua criação de valor
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
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Breakdown of Net Debt
A estratégia da CTEEP é baseada no crescimento sustentável com foco na contínua criação de valor
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)
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1Q12 Results
Operating Performance
CTEEP
Capital Market Performance
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Capital Market
A estratégia da CTEEP é baseada no crescimento sustentável com foco na contínua criação de valor
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Capital Market
A estratégia da CTEEP é baseada no crescimento sustentável com foco na contínua criação de valor
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
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Shareholder’s Remuneration
A estratégia da CTEEP é baseada no crescimento sustentável com foco na contínua criação de valor
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
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Disclaimer
A estratégia da CTEEP é baseada no crescimento sustentável com foco na contínua criação de valor
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.
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Investor Relations Phone: 55 11 3138‐7557
[email protected] www.cteep.com.br/ri
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