Apimec 2014 Ingles

1. 1
PUBLIC MEETING
CTEEP 2014

2. 2
A CTEEP
 Principal Challenges
 Growth Opportunities
 3Q14 Financial Results
 Questions and Answers Session
 Monitored Visit

3. 3
APIMEC 13 Year Seal

4. 4
História CTEEP
1999
CTEEP is incorporated
with the transmission
assets of CESP
Incorporation of EPTE –
Empresa Paulista de
Transmissão de Energia
Elétrica
Rollover of Concession
Agreement 059/2001 with
ANEEL, beginning a new
cycle for its businesses.
Expansion to 16 Brazilian states result
from participation in auctions and
acquisitions
Business portfolio with 8 subsidiaries,
investments of R $ 6.2 billion and RAP of
R $ 670.2 MM
The IEMadeira transmission line becomes
operational and conclusion of work on
IEMadeira
ISA sets out a new business vision for the long
term
Adheres to Level 1 of
Bovespa’s Corporate
Governance
CTEEP is privatized.
ISA becomes the new
controller
2001
2002 2006
2012 2013 2014

5. 5
Breakdown of Shareholding - CTEEP
Preferred Shares – TRPL4
(60% do total)
Common Shares - TRPL3
(40% do total)
Capital Total
89.5%
9.8%
0.7%
ISA Capital do Brasil
Eletrobras
Others
3.6%
52.4%
9.6%
7.0%
27.4%
ISA Capital do Brasil
Eletrobras
State Government of São Paulo
Vinci Ltda
Others
38.0%
35.4%
ISA Capital do Eletrobras
State Government Vinci Ltda
Others
89.5%
9.8%
0.7%
ISA Capital do Brasil
Eletrobras
Others
3.6%
52.4%
9.6%
7.0%
27.4%
ISA Capital do Brasil
Eletrobras
State Government of São Paulo
Vinci Ltda
Others
38.0%
ISA Capital Eletrobras
State Vinci Others
3.6%
52.4%
9.6%
7.0%
27.4%
ISA Capital do Brasil
38.0%
35.4%
5.8%
4.2%
16.7%
ISA Capital do Brasil
89.5%
9.8%
0.7%
ISA Capital do Brasil
Eletrobras
Others
3.6%
52.4%
9.6%
7.0%
27.4%
ISA Capital do Brasil
Eletrobras
State Government of São Paulo
Vinci Ltda
Others
38.0%
ISA Capital Eletrobras
State Vinci Others
89.5%
9.8%
0.7%
ISA Capital do Brasil
Eletrobras
Others
3.6%
52.4%
9.6%
7.0%
27.4%
ISA Capital do Brasil
Eletrobras
State Government of São Paulo
Vinci Ltda
Others
89.5%
9.8%
0.7%
do Brasil
3.6%
52.4%
9.6%
7.0%
27.4%
ISA Capital do Brasil
Eletrobras
State Government of São Paulo
Vinci Ltda
Others
38.0%
35.4%
5.8%
4.2%
16.7%
ISA Capital do Brasil
Eletrobras
State Government of São Paulo
Vinci Ltda
Others

6. 6
Perfil da ISA
 49-year track record in the energy transmission sector
 Assets in energy transmission, telecoms and highways
 Footprint in Brazil, Chile, Argentina, Colombia, Peru, Bolivia
and Central America
 USD 946 million in operating revenue in the first half of
2014
Multilatina works
with 33
companies in 8
countries and 4
busin
EBITDA by country EBITDA by business
2,8% 0,8%
Fonte: 2ºITR 2014 ISA
Colômbia
Chile
Peru
Brasil
Outros
41,1%
28,2%
15,6%
1,4%
13,6%
Transporte de Energia
Concessões Viárias
Telecomunicações
Gestão Inteligente de Tempo
Real
68%
28,4%

7. 7
Perfil da CTEEP
 13,726 Km in transmission
lines
 19,189 Km of circuits
 107 substations
 45.737 MVA of installed
transformation capacity
Data: 30/set/14
Responsible for transmission of about 25% of all the energy produced in
Brazil and 60% of the energy consumed in the southeast region and
approximately 100% in the state of São Paulo.

8. 8
Expansion in Brazil
Present in 16
Brazilian states
Subsidiarie State(s)
CTEEP
Participation
RAP
Total
(R$)
Pinheiros SP 100% 34.8 MM
Serra do
Japi
SP 100% 32.6 MM
IEMG MG 100% 14.3 MM
Evrecy MG e ES 100% 10 MM
Madeira
RO, MT, GO,
MG e SP
51% 445.4 MM
Garanhuns PB, PE, AL 51% 81.4 MM
IESUL PR, SC e RS 50% 14.1 MM
IENNE MA, PI e TO 25% 37.9 MM

9. 9
 CTEEP
Principal Challenges
 Growth Opportunities
 3Q14 Financial Results
 Questions and Answers Session
 Monitored Visit

10. 10
Vision 2020

11. 11
Value Drivers
O&M
EFFICIENCY
Investments
PROFITABILITY
Subsidiaries
GOVERNANCE
Indemnification
FAIR VALUE
Contingencies
REDUCTION
 Optimization
of Costs
 Tax
Optimization
 Optimization
O&M Model
 Optimization of
CapEx
 Utilization of
Inventory
 Centralization
of FIN/ADM
100% in
CTEEP
 Controls of
IEMG and
Evrecy via COT
 RBSE Report
 Área de
Assuntos
Regulatórios
 Strategic
Project for
Liability
Management

12. 12
Operation and Maintenance
Costs/Tax Optimization
Actions already adopted
 Review of support and operational processes
 Contract renegotiation
 Adequacy of scope
 Review of assumptions anticorrosive treatmen
 Adjustment of investments in R&D
 PIS/COFINS credit for Inputs and Fixed Assets
Studies in Progress
 Optimization of the O&M model, capture of efficiency 2015- 2020
 Other support processes (services agreements)
 Logistics and Supplies
R$ MM
(*) exclui custos de construção e despesa de depreciação

13. 13
Investments
Principal Initiatives
Optimization of CapEx
 Equilibrium of Profitability from Projects
 Analysis of insourcing of inspection and commissioning activities
 CTEEP Prices Bank vs Aneel
 Optimization of Inventory
 Review of investments governance

14. 14
Subsidiaries
Governance and Efficiency
Stakes in 8 subsidiaries
 Total investment of R$ 6.2 bi
 Capital injections by CTEEP of
R$ 1.6 bi
 RAP 14/15 of R$ 670.6 million
 Portfolio totally operational in
2015
Wholly-owned Subsidiaries
 Evrecy and IEMG controlled by
COT
 Coordination and centralization
of the financial/administrative
functions
IEMadeira
 Conclusion of work in May 2014
 Economic and financial rebalancing of Lote D requested of ANEEL
 Cost overrun: R$ 342 million / Loss of RAP R$ 251million / Readjustment
of 26.8% in RAP
E
S
P
BP
EA
L

15. 15
Indemnification
Status
Indemnification as offset for reduction in RAP for the anticipated return of capital
RBNI (Upgrades and Improvements): R$ 2,891 million
 50% cash paid in January 2013 and
 50% in monthly installments for January 2013 through July 2015, Interest at IPCA +
5.59% p.a
RBSE (Basic Network – Existing System): pending since December 2012
 Absolute priority of Management
 Independent report delivered to ANEEL on August 14 with a value of R$ 5,186 million

16. 16
Indemnification
Physical Inventory of 140 ESs, 85 locations isolated from Telecom and 2,000
km of transmission lines (sample), distributed throughout the state of São
Paulo in 4 months;
 Transformers: 600 units
 Circuit breakers: 1,600 units
 Load break switch disconnectors: 7,000 units
 CT’s/PT’s: 9,000 units
 Towers: 31,000 towers, totaling 44,000 tons.
 Conductors: 14,000 km length of line totaling 150,000 tons.
Permanent mobilization of 110 employees to assist the valuation company in its
work;
 Reconciling Physical-Book of 171 thousand registrations;
 Analysis of 5 thousand acquisitions of machines/equipment to make up the Prices Bank;
 Analysis of 700 ES and TL projects and the classification of 157 thousand registrations
for determining the percentages of COM and CA,
 Verification of eligibility in the case of 2 thousand land deed registers and 19 thousand
rights of way;
 Analysis and classification of 110 thousand assets either in the from of Existing Systems
or Upgrades and Improvements

17. 17
Indemnification
Valuation Report
 Prices Bank
 CTEEP average
 Aneel average
 Corrected booking
 Baseline date: December 31, 2012
 NRV R$ 20.212 million
 RBV : R$ 5,186 million
 Baseline date: December 31, 2012
 ANEEL Inspection - October 14 to 31, 2014
 Inspection Monitoring Report – scheduled for the first
half of January 2015
 Ratification of the Report by ANEEL’s Executive Board
Critérios
Resultado
Etapas Futuras

18. 18
O&M | Investments | Indemnification
Institutional Relations
Creation of a Regulatory Unit underscores Management priorities and
focus on themes critical to the Company
Public Hearing 021/2014 – Review of Resolution REN 443/2011
 Inclusion of revenues for Improvements for the period 2013/18
 Treatment of Assets at the end of their useful regulatory life
 Treatment of revenue for emergency investments (accidents and claims)
Public Hearing 022/2014 – Creation of a Minimum Maintenance Plan
 To establish the Minimum Maintenance Plan for Transmitters
 To establish exemption from the Variable Parcel for scheduled downtime
REN589/2013
 Regulatory Annuity Baseline – BAR: remuneration, amortization and depreciation in the
form of annuities,
 To define the cost of the BAR, 5% of AOM costs since Jan/2013
Public Hearing 027/2014 – Revision of REN 270/2007
 Equilibrium in the application of the Variable Parcel
 Revise the Permitted Outage Times for the Resumption of Transmission Line Operations

19. 19
 CTEEP
 Principal Challenges
Growth Opportunities
 3Q14 Financial Results
 Questions and Answers Session
 Monitored Visit

20. 20
Ten Year Energy Expansion Plan to 2022
Electricity consumption in the network
by subsytem
 Increase of 205.5 TWh in Brazilian electric energy consumption from 2013 to 2022
 59.2% of the increase in Brazilian consumption will be in the Southeast. Center –
West where CTEEP is the leading transmission company for energy transportation
 Need for expansion via auctions or authorizations

21. 21
 CTEEP
 Principal Challenges
 Growth Opportunities
3Q14 Financial Results
 Questions and Answers Session
 Monitored Visit

22. 22
Highlights 3Q14
 Increase in Net Income for 9M14
 Increase in Ebitda and Ebitda Margin in 9M14
 Readjustment in Annual Allowed Revenue (RAP)
 Increase in Capital

23. 23
559.2
35.6 20.1 574.8 3.9
578.8
555.4
RAP 13/14 IPCA / IGPM Tariff Review RAP 13/14 Adjust.
Parcel
Total RAP
14/15
Total RAP
13/14
Annual RAP Readjustment
(R$ million)
+21,7%
+6,9%
+4,2%
CTEEP
Subsidiaries
100%
Jointly Controlled
Subsidiaries
581.8
37.3
19.6 638.8
21.1 659.9
542.0
RAP 13/14 IPCA / IGPM Reinfor. RAP 14/15 Adjust.
Parcel
Total RAP
14/15
Total RAP
13/14
6.1 -1.4 91.9 -0.1 91.7 85.8
RAP 13/14 IPCA / IGPM Tariff Review RAP 14/15 Adjust.
Parcel
Total RAP
14/15
Total RAP
13/14
87.2

24. Breakdown of Revenue
24
Growth of 13.3% in net revenue
9M13 9M14
406.4
110.0
131.1
647.5
(86.6)
560.9 530.8
138.8
122.3
791.9
(89.2)
702.7
18.0
38.7
88.4
145.1
(11.8)
133.3
19.7
19.2
61.1 100.0
(5.3)
94.7
424.4
148.8
219.5 792.6 (98.4)
694.2
550.5
158.0
183.4 891.9
(94.5)
797.4
O&M Construction Financial/
Others
Gross
Revenue
Deductions Net
Operating
Revenue
O&M Construction Financial/
Others
Gross
Revenue
Deductions Net
Operating
Revenue
Company Subsidiaries

25. 25
553.6
498.6
471.7
434.3
55.1
37.4
TOTAL
9M13 9M14
Company Subsidiaries
Operating Costs and Expenses
Efficiency in the management of costs and expenses
-14.8%
(R$ million)
O&M
General/Adm
Construction
238.3
9.4
212.2
15.2
228.8 197.0
131.7 114.5
3.1
3.1
128.6 111.4
183.7
42,5
145.0
17,5
141,2 115,4
9M13 9M14

26. 26
Ebitda ICVM 527 and Ebitda Margin
-415.8
172.8
166.8
-324.2
384.1
13.9
6.1
25.0
14.2
114.4
100.5
192.1
13.9
25.0
3Q13 3Q13 ex
Provison
SEFAZ
3Q14 9M13 9M13 ex
Provison
SEFAZ
9M14
Company Subsidiaries
(292.2)
217.1
398.3
(401.9)
28.4%
46.9%
Ebitda Margin
(R$ million)
39.7%
50.4%
31.3%
50.6%

27. 27
Equity
(R$ million) 9M13 9M14
1,0 0,1 0,4
60.2
Total Equity Income: R$ 53.8 43,0 Total Equity Income : R$ 71.8
Madeira Garanhuns IENNE IESUL
1.8
(9.7)
1.4
54.8
12.4
3.8 0.9

28. 28
Financial Result
Remuneration of the indemnification for upgrades and improvements (NI)
(R$ million) -71,5%
18.0
-107,5%
(1.0)
3.2
64.3
78.0
15.6
28.6
-4.7 -4.2
-13.8 -13.0
Company Subsidiaries
13.3
3T13 3T14 9M13 9M14

29. 29
Net Income
(R$ million)
+46,7%
+47,5%
 Earnings per share reached R$ 1.9579 in 9M13
-245.3
95.5
140.1
-126.9
213.9
315.7
3Q13 3Q13 ex
Provision
SEFAZ
3Q14 9M13
9M13 ex
Provision
SEFAZ
9M14
3T13

30. 30
Net Debt
R$ 127.7 million increase in Capital
Debt
(BRL millions)
9M14 2013 Δ%
Debt 1,286.2 1,239.5 3.8%
Short-term Debt 375.0 377.7 -0.7%
Long-term Debt 911.2 861.8 5.7%
Cash* 777.7 600.0 29.6%
Net Debt 508.5 639.5 -20.5%
(*) As from January 2013, the Company channeled its financial investments into exclusive investment
funds. The investment fund units are highly liquid and are readily convertible into cash irrespective of
the maturity of the assets.

31. 31
Amortization of Debt
Settlement of 1st Series Debentures
(R$ million)
Future Cash (NI) 2014 2015 Total
Accounts Receivable (NI) - (projection) 142.4 332.2 474.6
Interest Income on the Accounts
Receivable (projection)
11.6 12.0 23.5
Total 153.9 344.2 498.1
Cash and Financial Investments on 09/30/14: R$ 777.7 millions
207.7
150.9
197.5 197.6
179.0
13.0
59.4
29.2
9.7
35.7
26.5 26.5
26.5
85.4
15.0
217.4
186.6
224.0 224.1 205.5
39.5
2014 2015 2016 2017 2018 2019 2020 a 2024 2025 a 2029
Company Subsidiaries
144.8
44.2
26.5

32. 32
Gross Debt of Joint Subsidiaries
2013 3T14
1.245,1
CTEEP stake
101,2
57,9 18,9
57.9 18.9
1,245.1
57.1 17.8
166.6
Madeira Garanhuns IENNE IESUL
(R$ million)
101.2
1,242.9
Total Gross Debt: R$ 1,423.2 Total Gross Debt: R$ 1,484.4

33. Trade Financial - 09/30/2014
(R$ million)
33
Performance in the Capital Markets
Total R$ 1.312 Million Daily Average / Day R$ 6.9 million
 220.6 thousand
transactions up to
09/30/2014.
 Daily Average of 1,161
transactions.
 Market cap. In
09/30/2014 R$ 6.3
billion.
40.0
35.0
30.0
25.0
20.0
15.0
10.0
5.0
Share performance up to 09/30/2014
150.00
125.00
100.00
75.00
Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14
TRPL3 TRPL4 IBOVESPA IEE
0.0
Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14

34. 34
 CTEEP
 Principal Challenges
 Growth Opportunities
 3Q14 Financial Results
Questions and Answers Session
 Visita Monitorada

35. 35
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.

36. 36
 A CTEEP
 Principais Desafios
 Oportunidades de Crescimento
 Resultados Financeiros do 3T14
 Sessão de Perguntas e Respostas
Monitored Visit

37. 37
Investor Relations
Tel: +55 11 3138-7557
ri@cteep.com.br
www.cteep.com.br/ir