CTEEP - 2nd Quarter 2009 Results Presentation

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© Todos os direitos reservados para CTEEP São Paulo, August 17 th 2009 2Q09 Results Presentation

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2nd Quarter 2009 Results Presentation

Transcript of CTEEP - 2nd Quarter 2009 Results Presentation

Page 1: CTEEP - 2nd Quarter 2009 Results Presentation

© Todos os direitos reservados para CTEEP

São Paulo, August 17th 2009

2Q09 ResultsPresentation

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Agenda

Capital Market Performance

Subsequent Events

2Q09 Results

Company Update

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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.

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12,140 km of Transmission Lines 102 Substations

High Technology

Miguel RealeSubstation

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COT- Transmission Operating Center - Jundiaí

COR- Backup Operations Center - Cabreúva

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53.64%10.77%

35.59%

Preferred Shares – TRPL4(58% of total)

89.40%

9.85% 0.75%

Common Shares - TRPL3(42% of total)

ISA Capital do Brasil

Eletrobrás

Other

37.46%

35.29%

27.25%

Eletrobrás

Secretaria da Fazenda

Other

ISA Capital do Brasil

Eletrobrás

Other

CTEEP and its Shareholder’s Breakdown

Total Paid Up Capital

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Capital Market Performance

Subsequent Events

Company Update

2Q09 Results

Agenda

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Net Revenue

Revenue linked to uptime of the Company’s assets

(R$ million)

359.6419.9 413.1

)

2Q08 1Q09 2Q09

-1.6%

+14.9%

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2Q09/2Q08 main changes:

The increase in personnel expenses in 2Q09 against the same period in 2008 is due to the annual wage bargain agreement of 6.8% in June 2008, the increase in CESP Foundation expenses and the lower income expected from the retirement plans (CVM Decision 371);

The increase in third party IT services and outsourced transmission line maintenance;

In 2Q09, expenses relating to allowances for contingencies fell by 75.8% as compared with 2Q08;

The positive value for expenditures with materials in 2Q09 is due to a reclassification for permanent assets in progress of a expense of R$ 2,357 thousand booked in 1Q09.

Cost of Operating Expenses

(R$' 000) 2Q09 1Q09 2Q08Change %

1Q09/2Q09Change %

2Q08/2Q09

Personnel -28,373 -30,840 -23,137 -8.0% 22.6%

Material 108 -4,474 -2,745 -102.4% -103.9%

Services -22,792 -19,432 -16,201 17.3% 40.7%

Depreciation -47,012 -46,576 -44,436 0.9% 5.8%

Contingencies -2,390 -3,468 -9,870 -31.1% -75.8%

Other -6,762 -6,981 -8,320 -3.1% -18.7%

Total -107,221 -111,771 -104,709 -4.1% 2.4%

Cost of Services and General and Administrative Expenses

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Strong Cash Generation

299.4354.7 352.9

83.2%

84.5%

85.4%

2Q08 1Q09 2Q09

8

8

8

8

8

8

8

Ebitda Ebitda Margim

-0.5%

+17.9%

(R$ million)

EBITDA

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Financial Results

The principal factor impacting this item was the growth in charges on debt, most notably on commercial papers repaid in 2Q09.

Excluding interest on shareholders’ equity from financial expenses, the financial result would havereported an expense of R$ 17.2 million in the quarter.

Financial Income (R$' 000) 2Q09 2Q08Change %

2Q08/2Q09

Income from financial investments 4,383 5,063 -13.4%

Interest on assets 943 1,070 -11.9%

Net monetary variations 3,377 3,025 11.6%

Other 200 188 6.4%

Total Financial Income 8,903 9,346 -4.7%

Financial Expenses (R$' 000) 2Q09 2Q08Change %

2Q08/2Q09

Interest on own capital (63,938) (58,311) 9.6%

Interest on liabilities (15,944) (16,283) -2.1%

Charges on promissory notes (9,279) - -

Other (889) (2,342) -62.0%

Total Financial Expenses (90,050) (76,936) 17.0%

Financial result, net (R$' 000) (81,147) (67,590) 20.1%

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Net Income

(R$ million)

Earnings per share of R$ 1.47 in the second quarter of 2009.

359.6419.9 413.1

2Q08 1Q09 2Q09

-1.6%

+14.9%

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Breakdown of Debt in 2Q09

Optimization of Capital Structure

Others0.3%

CDI28.6%

TJLP71.1%

(R$' 000)

Non - Current

TJLP + 2,3% year 602,825 71.1% 625,984 73.1%

Current

120% of CDI - - 207,013 24.2%119,5% of CDI 202,622 23.9% - - 123% of CDI 20,084 2.4% 20,462 2.4%113% of CDI 20,008 2.4% - - Others 2,889 0.3% 3351 0.4%

TOTAL 848,428 100% 856,810 100%

2Q09 1Q09

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Subsequent Events

2Q09 Results

Company Update

Capital Market Performance

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Capital Market Performance

52.5 thousand trading transactions in 2Q09 (860 daily average traded). Growth of93.8% compared with 2Q08;

Present on all trade days;

27.25% Free-float ;

Component of Ibovespa;

R$ 7.4 billion market capitalization.

EVOLUTION - 1H09

IBOV x IEE x TRPL4 x TRPL3

37.06%33.66%

14.50%10.99%

IBOV IEE TRPL4 TRPL3

Trading Financial - 2Q09(R$ million)

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

abr-09 mai-09 jun-09

Total: R$ 705,86 million Daily Avarege: R$ 11,57 million

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2Q09 Shareholder Remuneration

In 2Q09, the Company authorized the payout of R$ 63.9 million in interest on shareholders’equity corresponding to R$ 0.428297 per shares and R$ 166.7 million in dividends, equivalent

to R$ 1.116876 per share.

6/30/2009 Dividend 2009 R$ 0.407557 7/21/2009 R$ 60,842,176.35

6/19/2009Interest on

stockholders' equity

2009 R$ 0.428297 7/1/2009 R$ 63,938,332.64

4/15/2009 Dividend 2008 R$ 0.709319 4/24/2009 R$ 105,890,687.96

R$ 1.545173 R$ 230,671,196.95

Date of Payment

AmountDate

ApprovedType Regarding P/ share

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2Q09 Investor Relations Events

A roadshow to launch the 3rd Commercial Papers Issue;

2 domestic non-deal roadshows;

3 Broker Conference presentations with more than 30 participants involving one on one meetings at each event;

Some 30 meetings held at the Company’s head offices and more than 200 responses by e-mail and telephone during the quarter;

An APIMEC meeting held on June 4 2009 in which the Company presented its results for 1Q09;

9 institutions provide coverage and publish investment research reports on the Company – an increase of 80% in the past nine months.

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Agenda

Capital Market Performance

2Q09 Results

Company Update

Subsequent Events

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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; andThe 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 capitalincrease proposed.

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3rd Commercial Papers Issue

The characteristics of the offering are as follows:

Issue rating: Fitch F1+(bra);

Nominal Unit Value: R$ 500 thousand;

Remuneration: 106.5% of the CDI;

Financial Settlement on July 17 2009;

Use of Resources: cash reinforcement following the payment of the Company’s 1st commercial papers issue.

Through the bookbuilding procedure of July 8, the Company was able to reduce the cost of remuneration from 115% to 106.5% of the CDI, the lowest remuneration to date for securities with the same characteristics.

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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 overallperformance of the Brazilian economy and the sector

and international markets, such estimatesare subject to changes.

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Investor Relations

Phone: +55 11 3138-7557

email: [email protected]

www.cteep.com.br/ir