2 2010 results presentation

2010 Results
Presentation

São Paulo, March 28th 2011

© Todos os direitos reservados para CTEEP

Agenda

IFRS – Key Impacts

2010 Results

Capital Market Performance

2010 Results Presantion © Todos os direitos reservados para CTEEP 2

IFRS - Key Impacts
Equity

2010 2009 01.01.2009

According BR GAAP 4,440,350 4,185,346 4,103,296

Concession agreements 165,611 112,959 -
Employee Benefit - 13,601 68,503
Negative Goodwill 32,557 49,541 66,525
Deferred income Tax and Social Contribution (74,683) (66,718) (59,601)
Accounting of the proposal of dividend payment - 368,282 228,390

According IFRS 4,563,835 4,663,011 4,407,113


Income Statement

2009
BR GAAP Adjustment IFRS
Operational Revenues 1,912.8 543.1 2,455.8
Deductions from gross revenues (256.3) (50.5) (306.8)
Net Operating Revenue 1,656.5 492.5 2,149.0
Operational Costs and Expenses (289.3) (644.0) (933.3)
EBITDA 1,367.2 (151.4) 1,215.7
% EBITDA Margin 82.5% 56.6%
Depreciation (219.8) 215.1 (4.7)
EBIT 1,147.4 63.6 1,211.0
Financial Income 154.2 1.9 156.0
Finacial Expenses (424.9) (2.9) (427.7)
Other operating expenses (31.2) (16.9) (48.1)
Income before taxes/ social contribution 845.4 45.8 891.2
Taxes and social contribution (268.1) (11.7) (279.8)
Interest on own capital 250.6 - 250.6
Net Income 828.0 34.0 862.0
% Net Margin 50.0% 40.1%


IFRS - Key Impacts
Balance Sheet

2009 01.01.2009
R$ million
BR GAAP Adjustment IFRS BR GAAP Adjustment IFRS
ASSETS 6,321.0 67.0 6,388.0 5,669.5 (49.2) 5,620.3
Current Assets + Long Term 1,571.5 4,793.4 6,364.9 1,359.7 4,242.2 5,601.9
Cash and cash equivalents (ST + LT) 43.2 0.0 43.2 123.0 0.0 123.0
Clients 351.6 4,735.7 5,087.3 344.4 4,242.3 4,586.7
Deferred Taxes (ST + LT) 98.6 (70.1) 28.4 88.0 (60.8) 27.1
Inventory (LT) 0.0 126.9 126.9 0.0 70.6 70.6
Other 1,078.1 1.0 1,079.1 804.3 (9.8) 794.5
Property, Plant and Equipament (Own + Concession) 4,749.6 (4,726.4) 23.1 4,309.9 (4,291.4) 18.5

CURRENT LIABILITIES 6,321.1 67.0 6,388.1 5,669.6 (49.3) 5,620.3
Non-Current Liabilities + Long Term 2,135.8 (410.7) 1,725.1 1,566.3 (353.1) 1,213.2
Loans, Financing and Bonds (ST + LT) 1,049.4 0.0 1,049.4 856.8 0.0 856.8
Deferred Taxes (ST + LT) 0.0 3.1 3.1 0.0 0.6 0.6
Negative Goodwill 49.5 (49.5) 0.0 66.5 (66.5) 0.0
PIS and COFINS deferred 0.0 60.2 60.2 0.0 9.7 9.7
Interest on Shareholder´s Equity 374.4 (368.3) 6.1 233.3 (228.4) 4.9
Installment of Adjustment (ST + LT) 42.6 (42.6) 0.0 0.0 0.0 0.0
Amounts Payable - Fund. CESP 13.6 (13.6) 0.0 66.5 (66.5) 0.0
Other (ST + LT) 606.3 0.0 606.3 343.2 (2.0) 341.2
Shareholder´s Equity 4,185.3 477.7 4,663.0 4,103.3 303.8 4,407.1


Agenda


2010 Results



Gross Operating Revenue

(R$ milliion)

Gross Operating Revenue increased 3.9%, to R$ 2,551.5 million in 2010 against R$ 2,455.8 million in 2009
due to the growth of 22.7% in construction revenues and 2.0% in financial revenues, partially offset by the
reduction of 11.5% of operation and maintenance revenues.


Net Operating Revenue

Net operating revenue increased 5.0% totaling R$ 2,256.3 million in 2010 against
R$ 2,149.0 million in 2009 due to the factors mentioned above.


Costs of the Operating Services and
Operational Expenses

Major changes:

 Construction, operational and maintenance costs rose 32.6% to R$ 948.3 million in
2010 against R$ 715.0 million in 2009. This increase reflects the 33.1% hike in
construction costs together with the rise of 32.1% in operational and maintenance costs.

 The increase reported in construction costs was the result of the advance in work at
IEMadeira offset by a reduction in upgrading and expansion work at CTEEP and the
conclusion of work or startup of operations at the IEMG, IENNE and Pinheiros controlled
companies.

 Growth registered in operation and maintenance costs was the result of a larger
number of maintenance events at CTEEP’s installations and the entry into operation of
the IEMG, IENNE and Pinheiros controlled companies.

 General and administrative expenses posted a 38.1% reduction to R$ 137.9 million in
2010 against R$ 223.0 million in 2009 due to a fine imposed in the course of regularizing
a tax issue in 2009.


Ebitda and Ebitda Margin

In 2010, the EBITDA margin was 52.1%, totaling R$ 1,176.1 million, a reduction of 3.3% compared with
2009 when the margin reached 56.6% and EBITDA, R$ 1,215.7 million, due to an increase of 32.6% in
construction and operation costs.


Financial Results

Major changes:

 The financial result was an expense of R$ 356.3 million in 2010, corresponding to an
increase of 31.1% in relation to R$ 271.7 million in 2009 due to higher debt in 2010
compared to 2009, largely reflecting overheads with a debenture issue in January 2010.

 If the impact of interest on shareholders’ equity is excluded, then the financial result for
2010 would have reported an expense of R$ 104.7 million.


Net Income

(R$ million)

Earnings per share were R$ 5.36207 in 2010


Capital Structure
The debt ratio (ratio of net debt and equity), in the end of 2010 reached 30.1%.

Funding Charges Maturity 2010 2009 1/1/2009
BNDES
TJLP + 2.3% year 15/6/2015              421.146              514.117              606.169
CTEEP
TJLP + 1.8% year 15/6/2015              160.605
‐
‐
IEMG TJLP + 2.4% year 15/4/2023
37.630
40.680
‐
IEMADEIRA TJLP + 2.8% year 15/4/2011              185.134
‐
‐
Comercial Papers
1st Series ‐ 17/9/2009
‐ ‐ 199.068
2sd Series 119.5% year CDI 19/4/2010
‐ 213.696
‐
3rd Series 106.5% year CDI 13/1/2010
‐ 208.029
‐
Debentures
st
1 Issuance CDI + 1.3% year 15/12/2014              490.405
‐ ‐
2sd Issuance IPCA + 8.1% year 15/12/2017
65.388
‐ ‐
Banks
CDI + 2% year ‐
1.396
45.717                  51.010
IENNE
10,0% year 19/5/2030
56.094
‐ ‐
IESUL CDI + 1.5% year 11/3/2011
8.297
24.537                             ‐
Eletrobras ‐ 15/11/2021                      441                      491                      541
Leasing ‐ ‐
1.702                    2.143
‐

Total 1.428.238 1.049.410 856.788

Distribuition of debt
burdens

35.0%
56.3%
*With the bonus of 1.5% due performance of the cost
of debt is 8.5% per year in the second line of IENNE.

4.6%
4.1%

Agenda


2010 Results



Capital Markets
Trading Financial - 2010
(R$ million)
Total R$ 1,768.05 million Daily Avarege: R$ 7.2 million

25.00

20.00

15.00

10.00

5.00

0.00
J-10 F-10 M-10 A-10 M-10 J-10 J-10 A-10 S-10 O-10 N-10 D-10

120
+18.09%  170.4 thousand trading
115
transactions in 2010 (690
110
+ 11.98% daily average traded).
105 + 6.47%
 Present on all trade
100
+ 1.04% days;
95
TRPL4 Ajustad
TRPL4 Unadjusted
 Component of
90
IBOVESPA
Ibovespa;
85 TRPL4, IBOV e IEE
(base 30/12/2009 = 100) IEE
80  R$ 8.3 billion market
capitalization.


Capital Markets

American Depositary Receipts - ADRs

Increase of 19.5% in the price of ADRs against the 2009

Financial Volume of ADRs increase 20% compared with 2009


Shareholder Remuneration

AUTHORIZED AMOUNT R$ DATE OF
TYPE FISCAL YEAR
EVENT DATE TOTAL P/SHARE PAYMENT

RCA 9/30/2010 Dividends 2010
146,280,110.02
0.963453 10/25/2010
RCA 9/30/2010 Int. Equ. Cap. 2010
63,719,889.98
0.419682 10/25/2010
RCA 6/28/2010 Int. Equ. Cap. 2010
62,925,824.42
0.414452 7/23/2010
63,671,569.98
0.419364 7/23/2010
AGO/E 4/29/2010 Dividends 2009
77,302,605.60
0.509143 7/23/2010
RCA 3/30/2010 Int. Equ. Cap. 2010
61,920,147.06
0.411002 4/20/2010
129,979,852.90
0.862756 4/20/2010
161,000,000.00
1.068656 1/22/2010
TOTAL OF PAYMENT 766,799,999.96 5.068508

During 2010, CTEEP approved the payout of R$ 188.6 million in interest on shareholders
equity corresponding to R$ 1.24 per share and R$ 578.2 million in dividends equivalent to
R$ 3.83 per share.


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: ri@cteep.com.br
www.cteep.com.br/ir

Apresentação de Resultados 2010

2 2010 results presentation

More Related Content

What's hot

Viewers also liked

Similar to 2 2010 results presentation

More from Cteep

2 2010 results presentation