1 presentation 1 q11

1Q11 Results

© Todos os direitos reservados para CTEEP

São Paulo, May 16th 2011

1Q11 Results Presentation

Agenda

Capital Market Performance

1Q11 Results

IFRS – Key Impacts

© Todos os direitos reservados para CTEEP1Q11 Results Presantion 22


IFRS - Key Impacts Assets

BR GAAP IFRS BR GAAP IFRS

Assets (R$' 000)

CURRENT ASSETSCash 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

March 31, 2011 December 31, 2010

Effect of the

transition to the

IFRS

Effect of the

transition to

the IFRS


NON-CURRENT ASSETSLong-Term AssetsTrade 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

IFRS – Key ImpactsIncome Statement

1Q11 RESULTS (in R$' 000)

BR GAAPEffect of the

transition to

the IFRS

IFRS BR GAAPEffect of the

transition to

the IFRS

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)

1Q101Q11


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 contribuitionCurrent (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

Agenda





Gross Operating Revenue

(R$ milliion)


Gross Operating Revenue increased 36.2% to R$ 691.5 million in 1Q11, compared with R$ 507.8 million in1Q10 due to the increase of 118.7% in construction revenues, of 87.7% in revenues from operations andmaintenance and 0.7% from financial revenues.

Net Operating Revenue

447.4

607.0

350.0

700.0

(R$ million)

+35.7%


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.

0.0

350.0

1T10 1T111Q10 1Q11

Costs of the Operating 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


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.

Ebitda and Ebitda Margin

272.8 317.2

61%52%

10%

30%

50%

70%

90%

350.0

700.0

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

- 16.2%


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.

-50%

-30%

-10%

10%

0.0

1Q10 1Q11

Ebitda Ebitda Margin

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.

Net Income

(R$ million)

207.0 205.8

350.0

-0.5%


Earnings per share were R$ 1.36 in 1Q11

0.0

1Q10 1Q11

Capital Structure

The debt ratio (ratio of net debt and equity), in the end of 1Q11 reached 38.6%.

BNDES

TJLP + 2.3% year 6/15/2015 397,878 421,146

TJLP + 1.8% year 6/15/2015 151,709 160,605

IEMG TJLP + 2.4% year 4/15/2023 61,469 37,630

IEMADEIRA TJLP + 2.8% year 4/15/2011 192,784 185,134

IESUL TJLP + 2,4% year 5/15/2025 9,616 -

PINHEIROS TJLP + 2,6% year 5/15/2026 93,350 -

Comercial Papers

4th Series CDI + 0,4% year 1/12/2012 204,438 -

Debentures

1Q10

CTEEP

Funding Charges Maturity 1Q11

CDI

Distribuition of debt

burdens

Distribuition of debt

burdens


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

Debentures

1st Issuance CDI + 1.3% year 12/15/2014 505,217 490,405

2sd Issuance IPCA + 8.1% year 12/15/2017 68,141 65,388

Banks

CDI + 2,0% year - 3,688 1,396

10,0% year* 5/19/2030 56,059 56,094

IESUL CDI + 1,5% year 3/11/2011 - 8,297

Eletrobras - 11/15/2021 429 441

Leasing - - 1,451 1,702

Total 1,428,238

IENNE

1,746,229

TJLP51.9%

CDI40.9%

IPCA3.9%

Others3.3%

1Q11 Results



Agenda



Capital Markets

0,00

2,00

4,00

6,00

8,00

10,00

12,00

14,00

16,00

January-11 February-11 March-11

Trading Financial - 1Q11(R$ million)

Total R$ 432.9 million Daily Avarege: R$ 7.1 million


� 44.6 thousand trading transactions in 1Q11 (732 daily average traded).

� Present on all trade days;

� Component of Ibovespa;

� R$ 8.1 billion market capitalization.80

85

90

95

100

105

110

115

January-11 February-11 March-11

TRPL4

TRPL3

IBOVESPA

IEE

- 5.52%

+ 9.73%

- 1.04%

TRPL4, IBOV and IEE - January to March

2011 (base 100 = 12/31/2010)

- 1.47%

American Depositary Receipts - ADRs

Capital Markets

$52.39 $53.93$48.54

$51.80$56.10 $58.00

$63.00$66.50

$63.69$68.59

$62.99 $64.52 $65.90

$26.25 $26.93

$24.11$25.83

$27.94 $28.83

$31.20$32.82

$31.25$33.19

$30.48 $31.15 $31.74

$30.00

$40.00

$50.00

$60.00

$70.00

$80.00

$90.00

$100.00


Increase of 20.91% in the price of ADRs against the 1Q10

Financial Volume of ADRs increase 25.78% compared with 1Q10

$0.00

$10.00

$20.00

$30.00

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$)

Shareholder Remuneration

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

TIPO FISCAL YEARAUTHORIZED AMOUNT R$


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.

175,099,999.95 1.153271TOTAL OF PAYMENT - 1Q11

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.


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.

1 presentation 1 q11

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