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1Q11 Results
© Todos os direitos reservados para CTEEP
São Paulo, May 16th 2011
1Q11 Results Presentation
Agenda
Capital Market Performance
1Q11 Results
IFRS – Key Impacts
© Todos os direitos reservados para CTEEP1Q11 Results Presantion 22
Capital Market Performance
IFRS - Key Impacts Assets
BR GAAP IFRS BR GAAP IFRS
Assets (R$' 000)
CURRENT ASSETSCash and Banks 162,998 - 162,998 54,983 - 54,983 Trade Account Receivable 265,974 1,111,027 1,377,001 244,524 1,179,866 1,424,390 Inventory 44,247 - 44,247 44,791 - 44,791 Amounts Receivable from the State Finance Secretariat 23,840 - 23,840 22,938 - 22,938 Taxes and Contributions to be offset 10,516 - 10,516 11,230 - 11,230 Tax benefit - Goodwill 28,832 (28,832) - 28,832 (28,832) - Deferred income Tax and Social Contribution 30,256 (30,256) - 32,575 (32,575) - Prepaid Expenses 13,311 642 13,953 1,876 735 2,611 Others 39,316 10- 39,306 35,848 46- 35,802
619,290 1,052,571 1,671,861 477,597 1,119,148 1,596,745
March 31, 2011 December 31, 2010
Effect of the
transition to the
IFRS
Effect of the
transition to
the IFRS
© Todos os direitos reservados para CTEEP1Q11 Results Presantion 3
NON-CURRENT ASSETSLong-Term AssetsTrade Account Receivable 15 4,507,511 4,507,526 978 4,224,331 4,225,309 Amounts Receivable from the State Finance Secretariat 705,847 - 705,847 681,129 - 681,129 Tax benefit - incorporated goodwill 111,871 28,832 140,703 119,079 28,832 147,911 Deferred income Tax and Social Contribution 60,786 31,310- 29,476 62,171 (34,121) 28,050 Pledges and Escrow 43,842 - 43,842 42,248 - 42,248 Inventory - 168,401 168,401 - 184,264 184,264 Credits with Associates 8,453 - 8,453 6,624 - 6,624
930,814 4,673,434 5,604,248 912,229 4,403,306 5,315,535
Property, Plant and Equipment 5,445,285 (5,436,042) 9,243 5,254,978 (5,245,784) 9,194 Intangible Assets 71,765 (62,447) 9,318 70,066 (60,122) 9,944
5,517,050 (5,498,489) 18,561 5,325,044 (5,305,906) 19,138
Total Assets 7,067,154 227,516 7,294,670 6,714,870 216,548 6,931,418
IFRS – Key ImpactsIncome Statement
1Q11 RESULTS (in R$' 000)
BR GAAPEffect of the
transition to
the IFRS
IFRS BR GAAPEffect of the
transition to
the IFRS
IFRS
Net operating revenue 452,836 154,203 607,039 388,107 59,295 447,402
Costs of operating services (108,851) (146,886) (255,737) (103,160) (41,584) (144,744)
Gross Revenue 343,985 7,317 351,302 284,947 17,711 302,658
Operational Revenues (Expenses)General and administrative (29,453) (4,615) (34,068) (26,015) (2,802) (28,817) Management fees (1,378) (208) (1,586) (2,205) (257) (2,462) Financial expenses (104,725) (5,826) (110,551) (96,447) (1,814) (98,261)
1Q101Q11
© Todos os direitos reservados para CTEEP1Q11 Results Presantion 4
Financial expenses (104,725) (5,826) (110,551) (96,447) (1,814) (98,261) Financial income 4,817 2,769 7,586 13,632 659 14,291 Other expenses, net (2,024) (4,328) (6,352) (2,076) (4,408) (6,484)
Operating profit 211,222 (4,891) 206,331 171,836 9,089 180,925
Income tax and social contribuitionCurrent (63,583) (10) (63,593) (52,639) - (52,639) Deferred (3,690) 1,103 (2,587) 18,957 (2,192) 16,765
Profit before reversal of interest on own capital 143,949 (3,798) 140,151 138,154 6,897 145,051 Reversion of Interest on Shareholders' Equity 65,693 - 65,693 61,920 - 61,920
Net income for the fiscal year 209,642 (3,798) 205,844 200,074 6,897 206,971
1Q11 Results
Agenda
Capital Market Performance
IFRS – Key Impacts
© Todos os direitos reservados para CTEEP1Q11 Results Presantion 55
Capital Market Performance
Gross Operating Revenue
(R$ milliion)
© Todos os direitos reservados para CTEEP1Q11 Results Presantion 66
Gross Operating Revenue increased 36.2% to R$ 691.5 million in 1Q11, compared with R$ 507.8 million in1Q10 due to the increase of 118.7% in construction revenues, of 87.7% in revenues from operations andmaintenance and 0.7% from financial revenues.
Net Operating Revenue
447.4
607.0
350.0
700.0
(R$ million)
+35.7%
© Todos os direitos reservados para CTEEP1Q11 Results Presantion 77
Net operating revenue increased 35.7% totaling R$ 607.0 million in 1Q11 against R$ 447.4 million in 1Q10 due to the factors mentioned above.
0.0
350.0
1T10 1T111Q10 1Q11
Costs of the Operating Services and Operational Expenses
Major changes:
� Construction, operational and maintenance costs rose 76.7% to R$ 255.7 million in 1Q11
against R$ 144.7 million in 1Q10. This increase reflects the 108.9% spike in construction costs
together with the rise of 31.5% in operational and maintenance costs;
� The increase reported in construction costs was the result of the advance in work at Serra do
Japi and IEMadeira as well as upgrading and expansion work at CTEEP itself, offset by the
conclusion of work at IENNE and the partial startup of operations at the IESUL and Pinheiros
© Todos os direitos reservados para CTEEP1Q11 Results Presantion 88
conclusion of work at IENNE and the partial startup of operations at the IESUL and Pinheiros
controlled companies;
� Growth registered in operation and maintenance costs was the result of the entry into
operation of the IESUL, IENNE and Pinheiros controlled companies.
Ebitda and Ebitda Margin
272.8 317.2
61%52%
10%
30%
50%
70%
90%
350.0
700.0
Ebitda (R$ million) and Ebitda Margin (%)
- 16.2%
© Todos os direitos reservados para CTEEP1Q11 Results Presantion 99
In 1Q11, the EBITDA margin was 52.2%, totaling R$ 317.2 million, a growth of 16.2% compared with 1Q10, when the margin reached 61.0% and EBITDA, R$ 272.8 million.
-50%
-30%
-10%
10%
0.0
1Q10 1Q11
Ebitda Ebitda Margin
Financial Results
Major changes:
�The financial result was an expense of R$ 102.9 million in 1Q10, corresponding to
an increase of 22.6% in relation to the R$ 83.9 million for 1Q10 due to the higher
leverage;
© Todos os direitos reservados para CTEEP1Q11 Results Presantion 1010
� If the impact of interest on shareholders’ equity is excluded on financial
expenses, then the financial result for 1Q11 would have reported a financial
expense of R$ 37.3 million.
Net Income
(R$ million)
207.0 205.8
350.0
-0.5%
© Todos os direitos reservados para CTEEP1Q11 Results Presantion 1111
Earnings per share were R$ 1.36 in 1Q11
0.0
1Q10 1Q11
Capital Structure
The debt ratio (ratio of net debt and equity), in the end of 1Q11 reached 38.6%.
BNDES
TJLP + 2.3% year 6/15/2015 397,878 421,146
TJLP + 1.8% year 6/15/2015 151,709 160,605
IEMG TJLP + 2.4% year 4/15/2023 61,469 37,630
IEMADEIRA TJLP + 2.8% year 4/15/2011 192,784 185,134
IESUL TJLP + 2,4% year 5/15/2025 9,616 -
PINHEIROS TJLP + 2,6% year 5/15/2026 93,350 -
Comercial Papers
4th Series CDI + 0,4% year 1/12/2012 204,438 -
Debentures
1Q10
CTEEP
Funding Charges Maturity 1Q11
CDI
Distribuition of debt
burdens
Distribuition of debt
burdens
© Todos os direitos reservados para CTEEP1Q11 Results Presantion 1212
*With the bonus of 1.5% due performance of the cost of debt is 8.5% per year in the second line of IENNE.
Debentures
1st Issuance CDI + 1.3% year 12/15/2014 505,217 490,405
2sd Issuance IPCA + 8.1% year 12/15/2017 68,141 65,388
Banks
CDI + 2,0% year - 3,688 1,396
10,0% year* 5/19/2030 56,059 56,094
IESUL CDI + 1,5% year 3/11/2011 - 8,297
Eletrobras - 11/15/2021 429 441
Leasing - - 1,451 1,702
Total 1,428,238
IENNE
1,746,229
TJLP51.9%
CDI40.9%
IPCA3.9%
Others3.3%
1Q11 Results
Capital Market Performance
IFRS – Key Impacts
Agenda
© Todos os direitos reservados para CTEEP1Q11 Results Presantion 1313
Capital Market Performance
Capital Markets
0,00
2,00
4,00
6,00
8,00
10,00
12,00
14,00
16,00
January-11 February-11 March-11
Trading Financial - 1Q11(R$ million)
Total R$ 432.9 million Daily Avarege: R$ 7.1 million
© Todos os direitos reservados para CTEEP1Q11 Results Presantion 1414
� 44.6 thousand trading transactions in 1Q11 (732 daily average traded).
� Present on all trade days;
� Component of Ibovespa;
� R$ 8.1 billion market capitalization.80
85
90
95
100
105
110
115
January-11 February-11 March-11
TRPL4
TRPL3
IBOVESPA
IEE
- 5.52%
+ 9.73%
- 1.04%
TRPL4, IBOV and IEE - January to March
2011 (base 100 = 12/31/2010)
- 1.47%
American Depositary Receipts - ADRs
Capital Markets
$52.39 $53.93$48.54
$51.80$56.10 $58.00
$63.00$66.50
$63.69$68.59
$62.99 $64.52 $65.90
$26.25 $26.93
$24.11$25.83
$27.94 $28.83
$31.20$32.82
$31.25$33.19
$30.48 $31.15 $31.74
$30.00
$40.00
$50.00
$60.00
$70.00
$80.00
$90.00
$100.00
© Todos os direitos reservados para CTEEP1Q11 Results Presantion 1515
Increase of 20.91% in the price of ADRs against the 1Q10
Financial Volume of ADRs increase 25.78% compared with 1Q10
$0.00
$10.00
$20.00
$30.00
Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11
DR's Market Capitalization (US$ millions)
DR's Month end Price (US$)
Shareholder Remuneration
EVENT DATE TOTAL P/SHARE
RCA 3/31/2011 JCP 2011 63,027,094.35 0.415119
RCA 3/31/2011 Dividendos 2010 112,072,905.60 0.738152
TIPO FISCAL YEARAUTHORIZED AMOUNT R$
© Todos os direitos reservados para CTEEP1Q11 Results Presantion 1616
In 1Q11, CTEEP paid out R$ 63.0 million in interest on shareholders’ capital corresponding to R$ 0.42 per share and R$ 112.1 million in dividends - equivalent to R$ 0.74 per share.
175,099,999.95 1.153271TOTAL OF PAYMENT - 1Q11
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.
© Todos os direitos reservados para CTEEP1Q11 Results Presantion 1717
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.
© Todos os direitos reservados para CTEEP2010 Results Presantion 18Apresentação de Resultados 2010 18
Investor Relations
Phone: +55 11 3138-7557
email: ri@cteep.com.br
www.cteep.com.br/ir