Cteep presentation 2_q11

2Q11 Results
Presentation

São Paulo, August 17th 2011

© Todos os direitos reservados para CTEEP

Agenda

IFRS – Key Impacts

2Q11 Results

Capital Market Performance

2Q11 Results Presantion © Todos os direitos reservados para CTEEP 2

IFRS - Key Impacts
Assets

BR GAAP Effect of the IFRS BR GAAP Effect of the IFRS
transition to the transition to
IFRS the IFRS

Assets (R$' 000) June 30, 2011 March 31, 2011

CURRENT ASSETS
Cash and Banks 217,196 - 217,196 54,983 - 54,983
Trade Account Receivable 272,418 1,053,937 1,326,355 244,524 1,179,866 1,424,390
Inventory 47,663 - 47,663 44,791 - 44,791
Amounts Receivable from the State Finance Secretariat 24,360 - 24,360 22,938 - 22,938
Taxes and Contributions to be offset 11,224 - 11,224 11,230 - 11,230
Tax benefit - Goodwill 28,832 (28,832) - 28,832 (28,832) -
Deferred income Tax and Social Contribution 32,039 (32,039) - 32,575 (32,575) -
Prepaid Expenses 7,923 536 8,459 1,876 735 2,611
Others 56,032 - 56,032 35,848 - 46 35,802
697,687 993,602 1,691,289 477,597 1,119,148 1,596,745

NON-CURRENT ASSETS
Long-Term Assets
Trade Account Receivable - 4,804,728 4,804,728 978 4,224,331 4,225,309
Amounts Receivable from the State Finance Secretariat 730,583 - 730,583 681,129 - 681,129
Tax benefit - incorporated goodwill 104,663 28,832 133,495 119,079 28,832 147,911
Deferred income Tax and Social Contribution 62,569 - 16,567 46,002 62,171 - 34,121 28,050
Pledges and Escrow 45,298 - 45,298 42,248 - 42,248
Inventory - 178,940 178,940 - 184,264 184,264
Credits with Associates 8,874 - 8,874 6,624 - 6,624
951,987 4,995,933 5,947,920 912,229 4,403,306 5,315,535

Property, Plant and Equipment 5,676,778 (5,667,833) 8,945 5,254,978 (5,245,784) 9,194
Intangible Assets 74,655 (64,011) 10,644 70,066 (60,122) 9,944
5,751,433 (5,731,844) 19,589 5,325,044 (5,305,906) 19,138

Total Assets 7,401,107 257,691 7,658,798 6,714,870 216,548 6,931,418


Income Statement

2Q11 RESULTS
(in R$' 000) 2Q11 2Q10
Effect of the Effect of the
BR GAAP transition to IFRS BR GAAP transition to IFRS
the IFRS the IFRS

Net operating revenue 447,504 243,231 690,735 409,247 93,835 503,082
Costs of operating services (114,282) (205,837) (320,119) (102,547) (92,307) (194,854)

Gross Revenue 333,222 37,394 370,616 306,700 1,528 308,228

Operational Revenues (Expenses)
General and administrative (38,094) 824 (37,270) (21,926) (4,989) (26,915)
Management fees (1,314) (244) (1,558) (1,195) (340) (1,535)
Financial expenses (42,900) (18,853) (61,753) (35,238) (3,159) (38,397)
Financial income 6,347 1,657 8,004 12,312 293 12,605
Other expenses, net (5,711) (28,490) (34,201) (324) (4,246) (4,570)

Operating profit 251,550 (7,712) 243,838 260,329 (10,913) 249,416

Income tax and social contribuition
Current (54,638) - (54,638) (65,590) - (65,590)
Deferred 2,187 9,118 11,305 2,105 4,663 6,768

Profit before reversal of interest on own capital 199,099 1,406 200,505 196,844 (6,250) 190,594

Net income for the fiscal year 199,099 1,406 200,505 196,844 (6,250) 190,594


Cash Flow

1H11 1H10
Effect of the Effect of the
BR GAAP transition to3T09 IFRS BR GAAP transition to IFRS
the IFRS the IFRS

Cash Flow of operating activities 513,906 (477,782) 36,124 710,284 (283,837) 426,447

Cash flow of investment activities (496,660) 479,957 (16,703) (285,443) 283,837 (1,606)
-
Cash flow of financing activities 144,968 (2,175) 142,793 (129,523) - (129,523)


Agenda


2Q11 Results



Gross Operating Revenue
(R$ million)

+ 38.0%

+ 12.9%
780.5
4.0
691.5
4.2
565.4 339.9
3.8
332.2

328.0
138.0

148.7

99.4
298.7
206.4
134.2

2Q10 1Q11 2Q11

Construction Operation and Maintenance Financial Other

Gross Operating Revenue increased 12.9% to R$ 780.5 million in 2Q11 and 38.0% when
compared with 2Q10 due in large part to the increase of 122.6% in construction revenues,
of 38.0% in revenues from operations and maintenance and 3.6% from financial revenues
in the past 12 months.


Net Operating Revenue

(R$ million) +37.3%
+13.8%
690.7

607.0

503.1

2Q10 1Q11 2Q11

Deductions from Operating Revenue increased 6.3% in the quarter and 43.9% in the past
12 months, reaching R$ 89.7 million in 2Q11 against R$ 84.6 million in 1Q11 and R$ 62.3
million in 2Q10, due to the increase verified in the last 12 months of 22.3% in regulatory
charges due principally to an increase in CCC –Fuel Consumption Account combined with
64.3% tax on revenue reflecting growth in operating revenue.

Costs of the Operating Services and
Operational Expenses

Major changes:

Construction together with operation and maintenance costs posted an
increase of 40.4% relative to the first quarter of 2011 and 60.7% against the
same period in 2010, totaling R$ 358.9 million in 2Q11 against R$ 255.7
million in 1Q11 and the R$ 223.3 million in 2Q10.

This variation arises largely from the increase of 174% in expenditures with
materials, reflecting the progress made in work at Serra do Japi and
IEMadeira in addition to upgrading and expansion work at CTEEP in the past
12 months.

Other operating expenses refer mainly to the loss arising from the fair
revaluation of assets when the acquisition of control of IEMG, the amount of
R$ 28.5 million and amortization of goodwill of the amount of R$ 14.4 million.


Ebitda and Ebitda Margin

Ebitda (R$ million)
and Ebitda Margin (%)

700.0 100%
56% 52%
48%
50%

+18.6% 0%

+5.1% -50%

350.0 317.2 333.4 -100%
281.2
-150%

-200%

-250%

0.0 -300%
2Q10 1Q11 2Q11

Ebitda Ebitda Margin

In 2Q11, EBITDA margin reached 48.3%, totaling R$ 333.4 million, a growth of 5.1%
compared with 1Q11 and 18.6% against the same period in 2010 when EBITDA
reached R$ 317.2 million and R$ 281,2 million, respectively.


Financial Results

Major changes:

The financial result was an expense of R$ 53.7 million in 2Q11,
corresponding to an increase of 44.2% in relation to 1Q11 and 108.4%
against the same period in 2010 when there was an expense of R$ 37.2
million and R$ 25.7 million, respectively.

Note: The impact of interest on shareholders’ equity on financial expenses is excluded for
the purposes of calculating the financial result.


Net Income

Net Income
(R$ million)

+5.2%

350.0
-2.6%

190.6 205.8 200.5

0.0
2Q10 1Q11 2Q11

Earnings per share were R$ 1.32 in 2Q11


Capital Structure
The debt ratio (ratio of net debt and equity), in the end of 2Q11 reached 41.8%.

FUNDING CHARGES MATURITY 2Q11 1Q11
BNDES
TJLP + 2.3% year 6/15/2015 374,596 397,878
CTEEP
TJLP + 1.8% year 6/15/2015 224,767 151,709
Distribuition of
IEMG TJLP + 2.4% year 4/15/2023 60,160 61,469
debt burdens
IEMADEIRA TJLP + 2.8% year 1/15/2012 215,791 192,784
IESUL TJLP + 2.4% year 5/15/2025 9,052 9,616 CDI
TJLP 46.3%
PINHEIROS TJLP + 2.6% year 5/15/2026 122,777 93,350
48.0%
Comercial Papers
4th Series - CTEEP CDI + 0.4% year 1/12/2012 210,397 204,438
IEMadeira CDI + 0.4% year 9/15/2011 93,079 -
Serra do Japi CDI + 0.3% year 7/27/2011 71,470 -
Debentures
1st Issuance CDI + 1.3% year 12/15/2014 490,496 505,217
2sd Issuance IPCA + 8.1% year 12/15/2017 63,127 68,141
Banks
CTEEP 103.50% of CDI year 4/26/2013 102,631 -
CDI + 2.0% year - 3,317 3,688 IPCA
IENNE Others 3.0%
10.0% year* 5/19/2030 55,000 56,059 2.7%
Eletrobras - 11/15/2021 418 429
Leasing - - 974 1,451

TOTAL CONSOLIDATED 2,098,052 1,746,229

*With the bonus of 1.5% due performance of the cost of debt is 8.5% per year.


Agenda


2Q11 Results



Capital Markets
Trading Financial - 2H11
(R$ million)
Total R$ 825.9 million Daily Avarege: R$ 6.7 million
18.00
16.00
14.00
12.00
10.00
8.00
6.00
4.00
2.00
0.00
January-11 February-11 March-11 April-11 May-11 June-11

105
84.2 thousand trading
transactions in 2Q11 (685
100 daily average traded).
- 0.66%

95 - 4.94% Present on all trade
- 6.15% days;

- 9.91%
90 Component of
TRPL4 Ibovespa;
85 TRPL3
IBOVESPA R$ 7.5 billion market
IEE
Quotation from April to June 2011 (base 100 = 03/31/2011) capitalization.
80
April-11 May-11 June-11


Capital Markets

American Depositary Receipts - ADRs

$32.82 $33.19 $32.28 $32.93
$31.20 $31.25 $31.15 $31.74 $31.97
$30.48
$27.94 $28.83
$25.83
$66.50 $68.59 $67.25 $66.61 $68.71
$63.69 $64.52 $65.90
$63.00 $62.99
$56.10 $58.00
$51.80

Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11

DR's Market Capitalization (US$ millions)

DR's Month end Price (US$)

Increase of 27.5% in the price of ADRs against the 2Q10

Financial Volume of ADRs increase 32.6% compared with 2Q10


Shareholder Remuneration

In 2Q11, CTEEP paid out R$ 65.6 million in interest on shareholders’ capital
corresponding to R$ 0.43 per share of both types and R$ 181.3 million in dividends -
equivalent to R$ 1.19 per share of both types.
AUTHORIZED AMOUNT R$
DATE OF
TYPE FISCAL YEAR
PAYMENT
EVENT DATE TOTAL P/SHARE

RCA 3/31/2011 JCP 2011 65,692,755.70 0.432676 4/29/2011

RCA 3/31/2011 Dividends 2010 181,307,244.30 1.194154 4/29/2011

TOTAL OF PAYMENT - 2Q11 247,000,000.00 1.626830

In addition to the proceeds described above, CTEEP made the following payments to
shareholders as Dividends and Interest on shareholders equity.
AUTHORIZED AMOUNT R$ DATE OF
TYPE FISCAL YEAR
EVENT DATE TOTAL P/SHARE PAYMENT

RCA 12/17/2010 Dividends 2010 112,072,905.60 0.738152 1/28/2011
RCA 12/17/2010 JCP 2010 63,027,094.35 0.415119 1/28/2011
AGO/E 4/29/2011 Dividends 2010 16,714,326.45 0.110087 7/28/2011
RCA 6/30/2011 Dividends 2011 160,524,955.66 1.057275 7/28/2011
RCA 6/30/2011 JCP 2011 63,460,717.92 0.417975 7/28/2011

TOTAL OF PAYMENT - 2011 (expect those paid in the 2Q11) 415,799,999.98 2.738608


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.


Cteep presentation 2_q11

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