CTEEP - 2nd Quarter 2009 Results Presentation

2Q09 Results
Presentation

São Paulo, August 17th 2009

© Todos os direitos reservados para CTEEP

Agenda

Company Update

2Q09 Results

Capital Market Performance

Subsequent Events

2Q09 Results Presentation © Todos os direitos reservados para CTEEP 2

Company Update

Leading private sector energy
transmission concessionaire in
Brazil.

Responsible for transmission of
30% of electricity produced in the
country and 60% of consumption
in the Southeast.

First São Paulo electricity energy
company to sign up to Bovespa’s
Level 1 Corporate Governance.

Footprint in 12 states.


12,140 km of Transmission Lines 102 Substations

High Technology

Miguel Reale
Substation

COT- Transmission Operating Center - Jundiaí

COR- Backup Operations
Center - Cabreúva


CTEEP and its Shareholder’s Breakdown

Common Shares - TRPL3 Preferred Shares – TRPL4
(42% of total) (58% of total)

9.85% 0.75% 35.59%
ISA Capital do Brasil Eletrobrás

Eletrobrás Secretaria da Fazenda

Other Other

89.40% 10.77% 53.64%

Total Paid Up Capital

ISA Capital do Brasil
27.25%
37.46% Eletrobrás

Other
35.29%


Agenda

Company Update

2Q09 Results


Subsequent Events


Net Revenue

Revenue linked to uptime of the Company’s assets
(R$ million)

+14.9%

-1.6%

419.9 413.1
359.6

2Q08 1Q09 2Q09

)


Cost of Operating Expenses

2Q09/2Q08 main changes:

The increase in personnel expenses in 2Q09 against the same period in 2008 is due to the annual wage
bargain agreement of 6.8% in June 2008, the increase in CESP Foundation expenses and the lower income
expected from the retirement plans (CVM Decision 371);

The increase in third party IT services and outsourced transmission line maintenance;

In 2Q09, expenses relating to allowances for contingencies fell by 75.8% as compared with 2Q08;

The positive value for expenditures with materials in 2Q09 is due to a reclassification for permanent
assets in progress of a expense of R$ 2,357 thousand booked in 1Q09.

Cost of Services and General and Administrative Expenses
Change % Change %
(R$' 000) 2Q09 1Q09 2Q08
1Q09/2Q09 2Q08/2Q09

Personnel -28,373 -30,840 -23,137 -8.0% 22.6%

Material 108 -4,474 -2,745 -102.4% -103.9%

Services -22,792 -19,432 -16,201 17.3% 40.7%

Depreciation -47,012 -46,576 -44,436 0.9% 5.8%
Contingencies -2,390 -3,468 -9,870 -31.1% -75.8%
Other -6,762 -6,981 -8,320 -3.1% -18.7%

Total -107,221 -111,771 -104,709 -4.1% 2.4%


EBITDA

Strong Cash Generation

(R$ million)

85.4% 8

84.5% 8

83.2% 8
+17.9%
8
-0.5%

354.7 352.9 8
299.4
8

8

2Q08 1Q09 2Q09

Ebitda Ebitda Margim


Financial Results

The principal factor impacting this item was the growth in charges on debt, most notably on
commercial papers repaid in 2Q09.

Excluding interest on shareholders’ equity from financial expenses, the financial result would have
reported an expense of R$ 17.2 million in the quarter.

Change %
Financial Income (R$' 000) 2Q09 2Q08
2Q08/2Q09

Income from financial investments 4,383 5,063 -13.4%
Interest on assets 943 1,070 -11.9%
Net monetary variations 3,377 3,025 11.6%
Other 200 188 6.4%
Total Financial Income 8,903 9,346 -4.7%

Change %
Financial Expenses (R$' 000) 2Q09 2Q08
2Q08/2Q09

Interest on own capital (63,938) (58,311) 9.6%
Interest on liabilities (15,944) (16,283) -2.1%
Charges on promissory notes (9,279) - -
Other (889) (2,342) -62.0%
Total Financial Expenses (90,050) (76,936) 17.0%

Financial result, net (R$' 000) (81,147) (67,590) 20.1%


Net Income

(R$ million)

+14.9%

-1.6%

419.9 413.1
359.6

2Q08 1Q09 2Q09

Earnings per share of R$ 1.47 in the second quarter of 2009.


Breakdown of Debt in 2Q09

Optimization of Capital Structure

(R$' 000) 2Q09 1Q09
Non - Current
TJLP + 2,3% year 602,825 71.1% 625,984 73.1%
Current TJLP
120% of CDI - - 207,013 24.2% 71.1%
119,5% of CDI 202,622 23.9% - -
123% of CDI 20,084 2.4% 20,462 2.4%
113% of CDI 20,008 2.4% - -
Others 2,889 0.3% 3351 0.4%
CDI
TOTAL 848,428 100% 856,810 100% 28.6%

Others
0.3%


Company Update

2Q09 Results


Subsequent Events


Trading Financial - 2Q09
(R$ million)
Total: R$ 705,86 million Daily Avarege: R$ 11,57 million
$35.00
$30.00
$25.00
$20.00
$15.00
$10.00
$5.00
$0.00
abr-09 mai-09 jun-09

52.5 thousand trading transactions in
EVOLUTION - 1H09 2Q09 (860 daily average traded). Growth of
IBOV x IEE x TRPL4 x TRPL3 93.8% compared with 2Q08;

37.06%
33.66%
Present on all trade days;

14.50%
27.25% Free-float ;
10.99%

Component of Ibovespa;
IBOV IEE TRPL4 TRPL3
R$ 7.4 billion market capitalization.


2Q09 Shareholder Remuneration

Date Date of
Type Regarding P/ share Amount
Approved Payment

6/30/2009 Dividend 2009 R$ 0.407557 7/21/2009 R$ 60,842,176.35
Interest on
6/19/2009 stockholders' 2009 R$ 0.428297 7/1/2009 R$ 63,938,332.64
equity
4/15/2009 Dividend 2008 R$ 0.709319 4/24/2009 R$ 105,890,687.96
R$ 1.545173 R$ 230,671,196.95

In 2Q09, the Company authorized the payout of R$ 63.9 million in interest on shareholders’
equity corresponding to R$ 0.428297 per shares and R$ 166.7 million in dividends, equivalent
to R$ 1.116876 per share.


2Q09 Investor Relations Events

A roadshow to launch the 3rd Commercial Papers Issue;

2 domestic non-deal roadshows;

3 Broker Conference presentations with more than 30 participants involving
one on one meetings at each event;

Some 30 meetings held at the Company’s head offices and more than 200
responses by e-mail and telephone during the quarter;

An APIMEC meeting held on June 4 2009 in which the Company presented
its results for 1Q09;

9 institutions provide coverage and publish investment research reports on
the Company – an increase of 80% in the past nine months.


Agenda

Company Update

2Q09 Results


Subsequent Events


Capitalization of Goodwill

The Extraordinary General Meeting of June 16 approved the increase
in the capital stock of up to R$ 70.5 million with the following characteristics:

R$ 26.4 million in favor of the controlling shareholder, ISA Capital do Brasil,
paid from the special reserve for goodwill as registered in CTEEP’s
shareholders’ equity;
The right to subscribe up to R$ 44.1 million was granted to the other
shareholders in such a way as not to dilute their stakes in the Company’s
capital stock;
The average price established at R$ 45.97 per share for both classes of
share considering the average trading price for preferred shares in the two
months prior to the last trading day before the EGM;
The maximum quantity of new shares to be issued is 1,534,717, which
would represent an increase in capital stock of 1.03% in the number of
shares; and
The subscription period was from June 17 2009 to July 17 2009.

Following the termination of the subscription period on July 17 the total amount
subscribed was R$ 63,049,004.25, corresponding to 89.4% of the total capital
increase proposed.

3rd Commercial Papers Issue

Through the bookbuilding procedure of July 8, the Company was able to reduce the
cost of remuneration from 115% to 106.5% of the CDI, the lowest remuneration
to date for securities with the same characteristics.

The characteristics of the offering are as follows:

Issue rating: Fitch F1+(bra);

Nominal Unit Value: R$ 500 thousand;

Remuneration: 106.5% of the CDI;

Financial Settlement on July 17 2009;

Use of Resources: cash reinforcement following the payment of the
Company’s 1st commercial papers issue.


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


CTEEP - 2nd Quarter 2009 Results Presentation

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