presentation 1q12

1Q12 Results PresentationSão Paulo, May 15th 2012

Your energyINSPIRES US1

Capital Market Performance

1Q12 Results

CTEEP

Operating Performance



CTEEP Profile

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

� 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

� 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.


� 12,993 Km of transmission lines;

� 18,782 Km of circuits;

� 2,488 Km of optic fiber cables

� 106 substations.

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

state of São Paulo;

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.


100% 25% 100% 51% 51%50% 100%

Expansion of national Territory


� 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


transmission

RAP Total: 15.247

BidNot Bid

407

302

422

2.537

2.324 2.281

1.710

1.481 CTEEP holds 16% of the market

RAP trasmission.


RAP trasmission.

RAP Total: 15.247

BidNot Bid


transmissiontransmission

2.129 2.022

462

1.288

1.010

858

- -

465

279

-

265

- - - -85

1.819

471

370

627 546

26

191

268

-

231 221 192

76

216

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

RAP trasmission.RAP trasmission.

1Q12 Results


CTEEP




Uptime of Assets


CTEEP’s operating revenue is directly related to th e uptime of its assets: transmission lines, reactors and transforme rs.

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


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)


GWh448,090 443,585 475,090 491,271 CTEEP Others

313,823 335,090 350,144317,464


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

37,250

129,425

2008 2009 2010 2011 1Q12

92,175

1Q12 Results


CTEEP




Highlights


� Gross Operation Revenue: R$ 722.1 million

� Net Operation Revenue: R$ 651.4 million

� EBITDA: R$ 350.7 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 sust entável com foco na contínua criação de valor(R$ million)

332.2

356.4

345.5

4.2

7.6

5.3

794.5

691.5 722.1


206.4300.4

213.4

148.7

130.1

157.9

1Q11 4Q11 1Q12

Construction Operation and Maintenance Financial Others

Net Operating Revenue


(R$ million)

607.0

706.5

651.4

.0

.0

.0


.0

.0

300.0

.0

.0

1Q11 4Q11 1Q12

Maintenance Services Costs and OperatingExpenses


(R$' 000) 1Q12 4Q11 1Q11Change %

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%

Cost of Services


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%

General and Administrative Expenses


(R$' 000) 1Q12 4Q11 1Q11Change %

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%

General and Administrative Expenses


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%

Ebitda and Ebitda Margin


(R$ million)

317.2 296.5

350.7 0

0 52.2%

42.0%

53.8%


296.5

0

1Q11 4Q11 1Q12

EbitdaEBITDA Margin

Net Income


(R$ million)

205.8 205.1

351.0


205.8

164.0

205.1

1.0

1Q11 4Q11 1Q12

Capital Structure


BNDES

TJLP + 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 Papers

5th 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

Debentures

1st 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

4Q11

CTEEP

FUNDING CHARGES MATURITY 1Q12

IEMADEIRA

SERRA DO JAPI BNDES38.1%

Comercial Papers24.3%

Debentures26.4%

Banks12.4%

Distribuition of

debtcontracting


(*) 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%..

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

Banks

USD + 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

IENNE

CTEEP

TJLP38.1%

CDI48.6%

IPCA2.5%

Others11.1%

Distribuition of debt burdens

12.4%

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 1Q12

Debt

Short-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

1,583.2

2,564.1

2,811.7

401.0

751.0

101.0

451.0

801.0 (R$ million)


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.

1.0

351.0

701.0

051.0

1Q11 4Q11 1Q12

Ebitda

1.3

1.8 1.9

Net Debt/EBITDA (Last 12 months)

1Q12 Results


CTEEP




Capital Market


105

110

115

120

125

TRPL4

Retorno Total - TRPL4

IBOVESPA

IEE+8,18%

+13,67%

+7,76%

+10,63%

+15,74%

TRPL3

Total Return - TRPL4


90

95

100

Jan-12 Feb-12 Mar-12

(base 100 = 31/12/2011)

Capital Market


5.0

10.0

15.0

20.0

25.0

Trading Financial 1T12(R$ million)

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


� 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

Jan-12 Feb-12 Mar-12

Shareholder’s Remuneration


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


� 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.

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


presentation 1q12

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