1 presentation 1 q11

1 presentation 1 q11

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  1Q11 Results Presentation São Paulo, May 16th 2011 © Todos os direitos reservados para CTEEP
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  Agenda IFRS – Key Impacts 1Q11 Results Capital Market Performance 1Q11 Results Presantion © Todos os direitos reservados para CTEEP 2
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  IFRS - KeyImpacts Assets BR GAAP Effect of the IFRS BR GAAP Effect of the IFRS transition to the transition to IFRS the IFRS Assets (R$' 000) March 31, 2011 December 31, 2010 CURRENT ASSETS Cash and Banks 162,998 - 162,998 54,983 - 54,983 Trade Account Receivable 265,974 1,111,027 1,377,001 244,524 1,179,866 1,424,390 Inventory 44,247 - 44,247 44,791 - 44,791 Amounts Receivable from the State Finance Secretariat 23,840 - 23,840 22,938 - 22,938 Taxes and Contributions to be offset 10,516 - 10,516 11,230 - 11,230 Tax benefit - Goodwill 28,832 (28,832) - 28,832 (28,832) - Deferred income Tax and Social Contribution 30,256 (30,256) - 32,575 (32,575) - Prepaid Expenses 13,311 642 13,953 1,876 735 2,611 Others 39,316 - 10 39,306 35,848 - 46 35,802 619,290 1,052,571 1,671,861 477,597 1,119,148 1,596,745 NON-CURRENT ASSETS Long-Term Assets Trade Account Receivable 15 4,507,511 4,507,526 978 4,224,331 4,225,309 Amounts Receivable from the State Finance Secretariat 705,847 - 705,847 681,129 - 681,129 Tax benefit - incorporated goodwill 111,871 28,832 140,703 119,079 28,832 147,911 Deferred income Tax and Social Contribution 60,786 - 31,310 29,476 62,171 (34,121) 28,050 Pledges and Escrow 43,842 - 43,842 42,248 - 42,248 Inventory - 168,401 168,401 - 184,264 184,264 Credits with Associates 8,453 - 8,453 6,624 - 6,624 930,814 4,673,434 5,604,248 912,229 4,403,306 5,315,535 Property, Plant and Equipment 5,445,285 (5,436,042) 9,243 5,254,978 (5,245,784) 9,194 Intangible Assets 71,765 (62,447) 9,318 70,066 (60,122) 9,944 5,517,050 (5,498,489) 18,561 5,325,044 (5,305,906) 19,138 Total Assets 7,067,154 227,516 7,294,670 6,714,870 216,548 6,931,418 1Q11 Results Presantion © Todos os direitos reservados para CTEEP 3
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  IFRS – KeyImpacts Income Statement 1Q11 RESULTS (in R$' 000) 1Q11 1Q10 Effect of the Effect of the BR GAAP transition to IFRS BR GAAP transition to IFRS the IFRS the 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) 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 contribuition Current (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 Presantion © Todos os direitos reservados para CTEEP 4
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  Agenda IFRS – Key Impacts 1Q11 Results Capital Market Performance 1Q11 Results Presantion © Todos os direitos reservados para CTEEP 5
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  Gross Operating Revenue (R$ milliion) Gross Operating Revenue increased 36.2% to R$ 691.5 million in 1Q11, compared with R$ 507.8 million in 1Q10 due to the increase of 118.7% in construction revenues, of 87.7% in revenues from operations and maintenance and 0.7% from financial revenues. 1Q11 Results Presantion © Todos os direitos reservados para CTEEP 6
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  Net Operating Revenue (R$ million) 700.0 +35.7% 607.0 447.4 350.0 0.0 1Q10 1T10 1Q11 1T11 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. 1Q11 Results Presantion © Todos os direitos reservados para CTEEP 7
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  Costs of theOperating 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 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. 1Q11 Results Presantion © Todos os direitos reservados para CTEEP 8
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  Ebitda and EbitdaMargin Ebitda (R$ million) and Ebitda Margin (%) 700.0 90% 61% 70% 52% 50% - 16.2% 30% 350.0 317.2 272.8 10% -10% -30% 0.0 -50% 1Q10 1Q11 Ebitda Ebitda Margin 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. 1Q11 Results Presantion © Todos os direitos reservados para CTEEP 9
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  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; 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. 1Q11 Results Presantion © Todos os direitos reservados para CTEEP 10
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  Net Income (R$ million) 350.0 -0.5% 207.0 205.8 0.0 1Q10 1Q11 Earnings per share were R$ 1.36 in 1Q11 1Q11 Results Presantion © Todos os direitos reservados para CTEEP 11
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  Capital Structure Thedebt ratio (ratio of net debt and equity), in the end of 1Q11 reached 38.6%. Funding Charges Maturity 1Q11 1Q10 BNDES TJLP + 2.3% year 6/15/2015 397,878 421,146 CTEEP TJLP + 1.8% year 6/15/2015 151,709 160,605 IEMG TJLP + 2.4% year 4/15/2023 61,469 37,630 Distribuition of debt IEMADEIRA TJLP + 2.8% year 4/15/2011 192,784 185,134 burdens IESUL TJLP + 2,4% year 5/15/2025 9,616 - PINHEIROS TJLP + 2,6% year 5/15/2026 93,350 - Distribuition of debt Comercial Papers burdens 4th Series CDI + 0,4% year 1/12/2012 204,438 - Debentures CDI st CDI + 1.3% year 12/15/2014 505,217 490,405 40.9% 1 Issuance TJLP 2sd Issuance IPCA + 8.1% year 12/15/2017 68,141 65,388 51.9% Banks CDI + 2,0% year - 3,688 1,396 IENNE 10,0% year* 5/19/2030 56,059 56,094 IESUL CDI + 1,5% year 3/11/2011 - 8,297 IPCA Others 3.9% Eletrobras - 11/15/2021 429 441 3.3% Leasing - - 1,451 1,702 Total 1,746,229 1,428,238 *With the bonus of 1.5% due performance of the cost of debt is 8.5% per year in the second line of IENNE. 1Q11 Results Presantion © Todos os direitos reservados para CTEEP 12
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  Agenda IFRS – Key Impacts 1Q11 Results Capital Market Performance 1Q11 Results Presantion © Todos os direitos reservados para CTEEP 13
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  Capital Markets Trading Financial - 1Q11 (R$ million) Total R$ 432.9 million Daily Avarege: R$ 7.1 million 16,00 14,00 12,00 10,00 8,00 6,00 4,00 2,00 0,00 January-11 February-11 March-11 115 44.6 thousand trading 110 + 9.73% transactions in 1Q11 (732 daily average traded). 105 Present on all trade 100 - 1.04% - 1.47% days; 95 - 5.52% Component of 90 TRPL4 Ibovespa; TRPL3 85 TRPL4, IBOV and IEE - January to March IBOVESPA 2011 (base 100 = 12/31/2010) R$ 8.1 billion market IEE 80 capitalization. January-11 February-11 March-11 1Q11 Results Presantion © Todos os direitos reservados para CTEEP 14
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  Capital Markets American Depositary Receipts - ADRs $100.00 $32.82 $33.19 $31.20 $31.25 $31.15 $31.74 $30.48 $90.00 $27.94 $28.83 $26.25 $26.93 $80.00 $25.83 $24.11 $68.59 $70.00 $66.50 $64.52 $65.90 $63.00 $63.69 $62.99 $56.10 $58.00 $60.00 $52.39 $53.93 $51.80 $48.54 $50.00 $40.00 $30.00 $20.00 $10.00 $0.00 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 DR's Market Capitalization (US$ millions) DR's Month end Price (US$) Increase of 20.91% in the price of ADRs against the 1Q10 Financial Volume of ADRs increase 25.78% compared with 1Q10 1Q11 Results Presantion © Todos os direitos reservados para CTEEP 15
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  Shareholder Remuneration AUTHORIZED AMOUNT R$ TIPO FISCAL YEAR 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 TOTAL OF PAYMENT - 1Q11 175,099,999.95 1.153271 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. 1Q11 Results Presantion © Todos os direitos reservados para CTEEP 16
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  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. 1Q11 Results Presantion © Todos os direitos reservados para CTEEP 17
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  Investor Relations Phone: +55 11 3138-7557 email: [email protected] www.cteep.com.br/ir Apresentação de Resultados 2010 2010 Results Presantion © Todos os direitos reservados para CTEEP 18