This document presents the 2012 results and capital market performance of CTEEP, a Brazilian electricity transmission company. It summarizes CTEEP's key operational and financial results for 2012, including a 6.8% decrease in net operating revenue, a 3% decrease in EBITDA, and a 7.8% decrease in net income compared to 2011. It also provides details on CTEEP's capital structure, debt levels, investments, and trading activity on the stock exchange in 2012.
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CTEEP Profile
A estratégia da CTEEP é baseada no crescimento sustentável
com foco na contínua criação de valor13,723 Km of transmission lines;
18,794 Km of circuits;
2,488 Km of optic fiber cables
106 substations.
Responsible for the annual
transmission of 28.0% of all
electricity produced in the country,
60% of the energy consumed in the
Southeast Region and nearly 100%
in the state of São Paulo;
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.
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Expansion of national Territory
A estratégia da CTEEP é baseada no crescimento sustentável
com foco na contínua criação de valorLargest 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
In Operating
In Construction
EVRECY*
Acquisition of Assets
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53.86%
10.59%
7,22%
Preferred Shares– TRPL4
(58% of the total)
89.50%
9.75%
0.75%
Ordinary Shares- TRPL3
(42% of the total)
ISA Capital do Brasil
Eletrobrás
Others Shareholders
Total Capital Stock
Eletrobrás
Secretaria da Fazenda
do Estado
Others Shareholders
Shareholder Breakdown–31/12/12
Vinci
53.86%
37.81%
35.23%
16.67%
6.12%
4.17%
Eletrobrás
Secretaria da Fazenda
do Estado
Others Shareholders
Vinci
ISA Capital do Brasil
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Results
2011 2012
Var %
2011x2012
2011 2012
Var %
2011x2012
Gross Operating Revenue 2,302.7 2,169.4 -5.8% 3,268.7 3,173.9 -2.9%
Revenue from Construction Services 265.4 149.3 -43.7% 1,103.7 976.7 -11.5%
Revenue from Operational and Maintenance Services 540.6 587.2 8.6% 555.1 594.7 7.1%
Financial Revenue 1,477.0 1,412.6 -4.4% 1,590.0 1,584.8 -0.3%
Others 19.7 20.3 3.0% 19.9 17.7 -11.1%
Deductions from Operating Revenue -276.9 -281.0 1.5% -367.9 -354.9 -3.5%
Net operating revenue 2,025.8 1,888.4 -6.8% 2,900.8 2,819.0 -2.8%
Other General and Administrative Expenses -699.1 -729.7 4.4% -1,444.3 -1,433.7 -0.7%
Other Operating (Expenses) - Income - ex goodwill -2.1 84.1 -4104.8% -2.0 86.6 -4430.0%
Equity 57.6 98.1 70.3% - - 0.0%
EBITDA 1,382.3 1,340.8 -3.0% 1,454.6 1,471.9 1.2%
% Margem EBITDA 68.2% 71.0% 4.1% 50.1% 52.2% 4.1%
Depreciation -34.9 -33.8 -3.2% -34.9 -33.8 -3.2%
EBIT 1,347.4 1,307.0 -3.0% 1,419.7 1,438.1 1.3%
Financial Results -158.9 -123.8 -22.1% -200.5 -211.4 5.4%
Operating Income 1,188.4 1,183.3 -0.4% 1,219.1 1,226.7 0.6%
Income tax and social contribuition -273.1 -339.8 24.4% -303.8 -383.2 26.1%
Net Income 915.3 843.5 -7.8% 915.3 843.5 -7.8%
Results
(R$ million)
COMPANY CONSOLIDATED
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Gross Operating Revenue
A estratégia da CTEEP é baseada no crescimento sustentável
com foco na contínua criação de valor
(R$ million)
265.4 149.3
540.6 587.2
1,477.0 1,412.6
19.7
20.3
2,302.7
2,169.4
2011 2012
Construction Operation and Maintenance Financial Others
1,103.7 976.7
555.1 594.7
1,590.0 1,584.8
19.9 17.7
3,268.7 3,173.9
2011 2012
Construction Operation and Maintenance Financial Others
Company Consolidated
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Costs and Expenses
A estratégia da CTEEP é baseada no crescimento sustentável
com foco na contínua criação de valor
2011 2012
Var %
2011x2012
2011 2012
Var %
2011x2012
Personnel -204.2 -241.8 18.4% -210.8 -253.8 20.4%
Material -171.8 -157.5 -8.3% -705.3 -549.5 -22.1%
Services -264.3 -227.4 -14.0% -467.8 -520.5 11.3%
Other -64.9 -108.1 66.5% -66.5 -114.8 72.7%
Total -705.2 -734.8 4.2% -1,450.4 -1,438.7 -0.8%
Cost and Expenses
(R$ '000)
Company Consolidated
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Other Operating Income and (expenses)
(ex Goodwill)
Note: Excludes the amortization of goodwill of $ 28.8 million
2011 2012
Var %
2011x2012
2011 2012
Var %
2011x2012
Update VNR accounts receivable NI and SE - 4,444.5 - - 4,444.5 -
Lower accounts receivable Built NI and SE - -2,724.6 - - -2,724.6 -
Recognition of provision at cost - SE - -1,535.3 - - -1,535.3 -
Low values in replacement stock investments - NI SE - -87.1 - - -87.1 -
Others (2.1) -13.4 538.1% (2.0) -10.9 445.0%
Total -2.1 84.1 -4104.8% (2.0) 86.7 -4435.0%
ConsolidatedOther Operating Income and (Expenses)
(R$ million)
Company
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Ebitda and Ebitda Margin
A estratégia da CTEEP é baseada no crescimento sustentável
com foco na contínua criação de valor
(R$ million)
2011 2012
Var %
2011x2012
2011 2012
Net Income 915.3 843.5 -7.8% 915.3 843.5 -7.8%
Income tax and social contribuition 273.2 339.8 24.4% 303.8 383.2 26.1%
Financial Results 159.0 123.8 -22.1% 200.5 211.4 5.4%
Leases and rentals 34.9 33.8 -3.2% 34.9 33.8 -3.2%
EBITDA 1,382.3 1,340.8 -3.0% 1,454.6 1,471.9 1.2%
EBITDA Margin 68.2% 71.0% 2.8 p.p 50.1% 52.2% 2.10 p.p
EBITDA - ICVM 527 Var %
2011x2012
Company Consolidated
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Financial Result
(*) Includes charges, income and foreign exchange hedges on CCB International and Commercial Paper.
2011 2012
Var %
2011x2012
2011 2012
Var %
2011x2012
Short-term investment yield 16.7 24.1 44.5% 25.6 29.9 16.9%
Income / Expenses from financial operations (*) -183.9 -200.3 8.9% -214.4 -288.7 34.7%
Foreign exchange varations - 45.7 - - 45.7 -
Others 8.3 6.7 -19.2% -11.7 1.6 -114.1%
Total -158.9 -123.8 -22.1% -200.5 -211.4 5.5%
Financial Result
(R$'million)
Company Consolidated
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Net Income
A estratégia da CTEEP é baseada no crescimento sustentável
com foco na contínua criação de valor
(R$ million)
915.3
843.5
-
350.0
700.0
2011 2012
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Accounts Receivable (concession assets)
Receivables from Construction services 260.6 41.2 2,800.4 3,102.2 5,306.3
SE - - - - 1,949.4
NI - - - - 1,408.0
NIA 260.6 - - 260.6 -
Outros - 41.2 2,800.4 2,841.6 1,948.9
Receivables from O&M services (b) 258.3 2.0 8.9 269.2 244.1
Accounts Receivable Compensation (Existing
System - SE and New Investments - NI) - MP 579
5,975.4 - - 5,975.4 -
SE 3,026.3 - - 3,026.3 -
NI 2,949.1 - - 2,949.1 -
Accounts Receivable by reversal (d) 1.0 0.1 103.8 104.9 1,259.4
SE - - - - 175.4
NI - - - - 1,043.7
NIA 1.0 - - 1.0 -
Outros - 0.1 103.8 103.9 40.3
Allowance for Doubtful Accounts (1,535.3) - - (1,535.3) -
TOTAL 4,960.0 43.3 2,913.1 7,916.4 6,809.8
Accounts Receivable
(concession assets) (R$ million)
Contract
059/2001
Contract
143/2001
Contract
Subsidiaries
2012 2011
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Breakdown of Net Debt
A estratégia da CTEEP é baseada no crescimento sustentável
com foco na contínua criação de valor
2011 2012 2011 2012
Debt 1,904.6 2,247.7 2,771.4 3,694.5
Short-term Debt 861.7 1,064.2 1,397.5 1,302.2
Long-term Debt 1,042.9 1,183.5 1,373.9 2,392.2
Cash 151.0 296.5 207.3 429.2
Cash 151.0 296.5 207.3 429.2
Net Debt 1,753.6 1,951.2 2,564.1 3,265.2
EBITDA 1,382.3 1,340.8 1,454.6 1,471.9
Covenant (Dívida Líquida/EBITDA) - - 1.8 2.2
Debt
(R$million)
Company Consolidated
BNDES
39.1%
Comercial
Papers
16.6%
Debêntures
35,6%
Banks
12,2%
Distribuition of
debt contracting
TJLP
39.1%
CDI
45.3%
IPCA
2,0%
Others
12,0%
Distribuition of debt
burdens
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Debt Repayment
1,064.23 1,056.3
92.9 17.1 17.1 0.1
238.0
111.0
82.1
85,1 89.2
841.3
1,302.2
1,167.3
175.0
102,2 106.3
841.4
2013 2014 2015 2016 2017 Após 2017
Company Subsidiaries
(R$ million)
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Investments
In 2012, investments made by CTEEP in
upgrading, modernization and
improvements to existing assets, in the
capitalization of labor and injection in
subsidiaries totaled R$ 952.2 million, a
reduction of 14.5% when compared to
investments made in 2011 when this item
was R$ 1.114.0 million.
Investment Plan 20132012
(R$ million) 2013
Proprietary (A) 283.1
Complementary Projects and New Connections 174.2
PMT / PMIS 86.3
Corporative 9.7
Capitalization of Labor Costs 12.9
Investments - Subsidiaries (B) 674.3
IEMG 3.0
IENNE 0.6
IEPinheiros 37.9
IESul 20.2
IEMadeira 343.3
Serra do Japi 2.3
IEGaranhuns 258.4
Evrecy 8.6
TOTAL (A+B) 957.4
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Capital Market
Present on all trade days;
Component of Ibovespa;
R$ 5.8 billion market capitalization.
40.00
60.00
80.00
100.00
120.00
140.00
Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12
TRPL3 TRPL4 IBOVESPA IEE
MP579
MP591
PortariasInterministeriais579e580
-11.72%
+7.40%
-43.11%
-17.59%
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Capital Market
0.0
20.0
40.0
60.0
80.0
100.0
120.0
Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12
Trading Financial 2012
(R$ million)
Total R$ 3,589 million Daily Avarege / Day R$ 14.5 milhões
-
1,000
2,000
3,000
4,000
5,000
6,000
Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12
Trade Volume 2012
(units)
Total Trades: 309,481 Daily Avarege/ Day: 1,248
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Disclaimer
A estratégia da CTEEP é baseada no crescimento sustentável
com foco na contínua criação de valor
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.