2013 Results Presentation
São Paulo, February, 28 2014

1
Agenda

2013 Highlights

Financial Results 2013

Capital Market Performance

Other Highlights

2
Economic and Financial

net operating revenue of R$ 981.2 million

success in lengthening the debt profile

net income of R$ 31.9 million

3
Operations

4

2010

2011

2012

622.90

980.70

2009

1057.36

2008

1208.41

2007

1285.17

2006

1229.91

1331.53

2005

ENES

1343.53

MWh

1740.84

lowest level of Unsupplied
Energy in 8 years

2013
Growth

BRL 800 million in investments.
We added 1,035 MVA of installed power.
Startup in operations of the Madeira
Complex transmission line

priority for pending compensation
for pre-May 2000 assets.

5
Agenda

2013 Highlights

Financial Results 2013

Capital Market Performance

Other Highlights

6
Gross Operating Revenue

Company

Consolidated

Gross Revenue
(R$ million)

2012

Δ%

2013

2012

Δ%

Construction

219.1

149.3

46.8%

267.9

208.1

28.7%

Operation and
Maintenance

563.1

587.2

(4.1%)

586.6

592.3

(1.0%)

Financial

140.5

1,412.6

(90.1%)

242.7

1,467.3

(83.5%)

Others

22.4

20.3

10.3%

21.2

19.5

8.7%

Total

7

2013

945.0

2,169.4

(56.4%)

1,118.3

2,287.2

(51.1%)
Net Operating Revenue

2,015.0

-51.3%

126.6

1,888.4

981.2
158.9

822.2

2012
Company

8

2013
Subsidiaries
Costs of Construction Services, O&M and
Operating Expenses
Cost and Expenses
(R$ '000)

Company

Consolidated

2013

2012

Δ%

2013

2012

Δ%

Personnel

(252.3)

(241.8)

4.3%

(260.2)

(249.1)

4.5%

Material

(95.4)

(157.5)

(39.4%)

(148.6)

(207.2)

(28.3%)

Services

(205.9)

(227.4)

(9.5%)

(213.8)

(232.7)

(8.1%)

Leases and rentals

(14.0)

(14.6)

(4.1%)

(14.4)

(14.9)

(3.4%)

Contingencies

(51.1)

(44.3)

15.3%

(51.1)

(44.3)

15.3%

Depreciation

(7.3)

(5.0)

46.0%

(7.3)

(5.0)

46.0%

Others

(26.2)

(44.2)

(40.7%)

(27.4)

(47.1)

(41.8%)

Subtotal

(652.3)

(734.8)

(11.2%)

(722.8)

(800.4)

(9.7%)

198.8

135.5

46.7%

243.8

182.8

33.4%

(453.5)

(599.3)

(24.3%)

(479.0)

(617.6)

(22.4%)

Construction costs

Total
9
Other Operating Income (Expenses)



In 2013, the other operating income (expenses) account represents an
expense of R$ 531.7 million



Main impact was the provision for losses on the realization of receivables
due from the State Government of São Paulo’s Department of Finance
(SEFAZ-SP) worth R$ 516.3 million during the third quarter of 2013

Other Operating Income (Expenses)
(R$ million)
Operating Income

2012

18.4

4,457.5

Operating Expenses

(33.8)

(4,399.6)

SEFAZ-SP Provision

(516.3)

0

(531.7)

10

2013

57.9
Financial Result

Financial Result
(R$ million)

Company

Consolidated

2013

2012

Δ%

2013

2012

Δ%

Interest Receivable

170.8

31.5

441.5%

172.7

32.9

425.6%

Monetary (net)

66.1

45.7

(44.7%)

66.1

45.7

(44.7%)

(44.6)

(50.2)

(30.3%)

(45.0)

(51.1)

(31.7%)

90.1

(123.8)

72.2

(143.9)

Financial Expenses*
Total

172.8%

(*) Includes charges, income and foreign exchange hedges on CCB International and Commercial Paper.

11

150.2%
EBITDA
Company

Consolidated

EBITDA
(R$ million)

2013

2012

2013

2012

Net Income

31.9

843.5

31.9

843.5

Income tax and social contribuition

(182.0)

339.8

(169.2)

349.3

Financial Results

(90.1)

123.8

(72.2)

143.9

39.7

33.8

39.7

33.8

EBITDA ICVM 527/12

(200.4)

1,340.8

(169.8)

1,370.5

SEFAZ-SP Provision

516.3

-

516.3

-

EBITDA ex- SEFAZ Provision

315.9

1,340.8

346.5

1,370.5

Leases and rentals/Amortization

Ebitda Margin

EBITDA Margin

12

0.384212543

38.4%

0.710028214

71.0%

0.353186203

35.3%

0.68012768

68.0%
Net Debt

Debt
(BRLm)

3Q13

2012

1,239.5

2,521.0

Short-term Debt

377.7

1103.2

Long-term Debt

861.8

1,417.8

Cash*

600.0

309.6

Net Debt

639.5

2,211.4

Debt

-71.1%

(*) As from January 2013, the Company’s financial investments have been concentrated in exclusive
investment funds. These are made up of highly liquid investment fund units, readily convertible into
cash, irrespective of the maturity of the assets.

13
0.3%

Debt
Distribuition of debt contracting
0.3%

2013

40.2%
12,5%

59.5%

25,7%

40.2%

2012

59.5%

17,2%

44,6%

0.3%
6.1%
BNDES

Debentures

BNDES
Banks
Others

Debentures

BNDES
Banks

NPs
Debêntures
Others

0.3%

Bancos

40.2%

6.1%

Interest Rate

2013
12,5%

40.2%

53.4%

2,8%

53.4%

25,7%

2012
59,0%

TJLP

14

TJLP

CDI

IPCA

Others

CDI

IPCA

Others
Amortização da Dívida - Consolidado
(R$ milhões)

Future Cash (NI)

2014

2015

Total

Accounts Receivable (NI) - (projection)

569.5

332.2

901.7

69.3

12.0

81.3

638.8

344.2

983.0

Interest Income on the Accounts
Receivable (projection)
Total

Cash and Financial Investments on 12/31/13: R$ 600.0 millions

377.7
39,6
338,0

210.8
26,5

120.1
26,5

210.8
26,5

184,3

184,3

193.2
26,5
166,7

26.5

93,6

2014

15

2015

74,9

2016

2017

Company

2018

0.0
2019

Subsidiaries

25,50
2020 0.0
a 2024

2025 a 2030
Debt

Debt
Company
Controlled companies*
Total Consolidated

2013
967.0
272.5
1,239.5

(*) IEMG, IE Pinheiros, Serra do Japi

Controlled companies run jointly with
third parties
IE Madeira (51%)
IENNE (25%)
IE Garanhuns (51%)
IE SUL (50%)

16

1,423.2
1,245.1
57.9
101.2
18.9
Investments
R$ (million)

2013

Forecast
2014

Proprietary (A)

224.9

247.3

Complementary Projects and New Connections

155.2

194.6

Improvements

49.9

31.0

Corporative

5.3

8.4

Capitalization of Labor Costs

14.5

13.3

Investments - Subsidiaries (B)

590.5

366.9

IEMG

6.3

5.5

IENNE

0.4

0.5

IEPinheiros

39.4

31.1

IESul

21.9

9.4

IEMadeira

344.6

137.0

Serra do Japi

3.6

5.1

IEGaranhuns

166.1

177.1

8.3

1.3

815.4

614.2

Evrecy
TOTAL (A+B)

17
Agenda

2013 Highlights

Financial Results 2013

Capital Market Performance

Other Highlights

18
Capital Market Performance
Trade Financial - 12/31/2013
(R$ million)
Total R$ 1,922 Million

Daily Average / Day R$ 7.6 million

35.0
30.0
25.0
20.0
15.0
10.0

5.0
0.0
Jan-13

Feb-13

Mar-13

Apr-13

May-13

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Share Performance until 12/31/2013

 Total Trade: 272, 2
mil until 12/31/2013
100.00

-1.12%

 Daily Average/Day

-8.83%
-15.50%
-18.40%
(base 12/31/2012 = 100)

70.00
Jan-13

 Market Value
12/31/2013 R$ 5,2

Feb-13 Mar-13

Apr-13

May-13
TRPL3

19

1,074

Jun-13

Jul-13
TRPL4

Aug-13

Sep-13

IBOVESPA

Oct-13
IEE

Nov-13

Dec-13

billion
Agenda

2013 Highlights

Financial Results 2013

Capital Market Performance

Other Highlights

20
Principal Challenges for CTEEP in 2014

The rollover of the 059 agreement extended CTEEP’s concession for an
additional 30-year term. The initial conditions of the agreement are well
below the previous ones, with a reduction of 70% in Annual Allowed
Revenue


The recovery in growth capacity and CTEEP’s shareholder remuneration
is conditional on:

Receipt of fair
compensation

21

Increase
inoperating
efficiency

Increase of
returns from the
investments
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.

22
Investor Relations
Tel: +55 11 3138-7557
ri@cteep.com.br
www.cteep.com.br/ri

23

Cteep presentation 2013

  • 1.
    2013 Results Presentation SãoPaulo, February, 28 2014 1
  • 2.
    Agenda 2013 Highlights Financial Results2013 Capital Market Performance Other Highlights 2
  • 3.
    Economic and Financial netoperating revenue of R$ 981.2 million success in lengthening the debt profile net income of R$ 31.9 million 3
  • 4.
  • 5.
    Growth BRL 800 millionin investments. We added 1,035 MVA of installed power. Startup in operations of the Madeira Complex transmission line priority for pending compensation for pre-May 2000 assets. 5
  • 6.
    Agenda 2013 Highlights Financial Results2013 Capital Market Performance Other Highlights 6
  • 7.
    Gross Operating Revenue Company Consolidated GrossRevenue (R$ million) 2012 Δ% 2013 2012 Δ% Construction 219.1 149.3 46.8% 267.9 208.1 28.7% Operation and Maintenance 563.1 587.2 (4.1%) 586.6 592.3 (1.0%) Financial 140.5 1,412.6 (90.1%) 242.7 1,467.3 (83.5%) Others 22.4 20.3 10.3% 21.2 19.5 8.7% Total 7 2013 945.0 2,169.4 (56.4%) 1,118.3 2,287.2 (51.1%)
  • 8.
  • 9.
    Costs of ConstructionServices, O&M and Operating Expenses Cost and Expenses (R$ '000) Company Consolidated 2013 2012 Δ% 2013 2012 Δ% Personnel (252.3) (241.8) 4.3% (260.2) (249.1) 4.5% Material (95.4) (157.5) (39.4%) (148.6) (207.2) (28.3%) Services (205.9) (227.4) (9.5%) (213.8) (232.7) (8.1%) Leases and rentals (14.0) (14.6) (4.1%) (14.4) (14.9) (3.4%) Contingencies (51.1) (44.3) 15.3% (51.1) (44.3) 15.3% Depreciation (7.3) (5.0) 46.0% (7.3) (5.0) 46.0% Others (26.2) (44.2) (40.7%) (27.4) (47.1) (41.8%) Subtotal (652.3) (734.8) (11.2%) (722.8) (800.4) (9.7%) 198.8 135.5 46.7% 243.8 182.8 33.4% (453.5) (599.3) (24.3%) (479.0) (617.6) (22.4%) Construction costs Total 9
  • 10.
    Other Operating Income(Expenses)  In 2013, the other operating income (expenses) account represents an expense of R$ 531.7 million  Main impact was the provision for losses on the realization of receivables due from the State Government of São Paulo’s Department of Finance (SEFAZ-SP) worth R$ 516.3 million during the third quarter of 2013 Other Operating Income (Expenses) (R$ million) Operating Income 2012 18.4 4,457.5 Operating Expenses (33.8) (4,399.6) SEFAZ-SP Provision (516.3) 0 (531.7) 10 2013 57.9
  • 11.
    Financial Result Financial Result (R$million) Company Consolidated 2013 2012 Δ% 2013 2012 Δ% Interest Receivable 170.8 31.5 441.5% 172.7 32.9 425.6% Monetary (net) 66.1 45.7 (44.7%) 66.1 45.7 (44.7%) (44.6) (50.2) (30.3%) (45.0) (51.1) (31.7%) 90.1 (123.8) 72.2 (143.9) Financial Expenses* Total 172.8% (*) Includes charges, income and foreign exchange hedges on CCB International and Commercial Paper. 11 150.2%
  • 12.
    EBITDA Company Consolidated EBITDA (R$ million) 2013 2012 2013 2012 Net Income 31.9 843.5 31.9 843.5 Incometax and social contribuition (182.0) 339.8 (169.2) 349.3 Financial Results (90.1) 123.8 (72.2) 143.9 39.7 33.8 39.7 33.8 EBITDA ICVM 527/12 (200.4) 1,340.8 (169.8) 1,370.5 SEFAZ-SP Provision 516.3 - 516.3 - EBITDA ex- SEFAZ Provision 315.9 1,340.8 346.5 1,370.5 Leases and rentals/Amortization Ebitda Margin EBITDA Margin 12 0.384212543 38.4% 0.710028214 71.0% 0.353186203 35.3% 0.68012768 68.0%
  • 13.
    Net Debt Debt (BRLm) 3Q13 2012 1,239.5 2,521.0 Short-term Debt 377.7 1103.2 Long-termDebt 861.8 1,417.8 Cash* 600.0 309.6 Net Debt 639.5 2,211.4 Debt -71.1% (*) As from January 2013, the Company’s financial investments have been concentrated in exclusive investment funds. These are made up of highly liquid investment fund units, readily convertible into cash, irrespective of the maturity of the assets. 13
  • 14.
    0.3% Debt Distribuition of debtcontracting 0.3% 2013 40.2% 12,5% 59.5% 25,7% 40.2% 2012 59.5% 17,2% 44,6% 0.3% 6.1% BNDES Debentures BNDES Banks Others Debentures BNDES Banks NPs Debêntures Others 0.3% Bancos 40.2% 6.1% Interest Rate 2013 12,5% 40.2% 53.4% 2,8% 53.4% 25,7% 2012 59,0% TJLP 14 TJLP CDI IPCA Others CDI IPCA Others
  • 15.
    Amortização da Dívida- Consolidado (R$ milhões) Future Cash (NI) 2014 2015 Total Accounts Receivable (NI) - (projection) 569.5 332.2 901.7 69.3 12.0 81.3 638.8 344.2 983.0 Interest Income on the Accounts Receivable (projection) Total Cash and Financial Investments on 12/31/13: R$ 600.0 millions 377.7 39,6 338,0 210.8 26,5 120.1 26,5 210.8 26,5 184,3 184,3 193.2 26,5 166,7 26.5 93,6 2014 15 2015 74,9 2016 2017 Company 2018 0.0 2019 Subsidiaries 25,50 2020 0.0 a 2024 2025 a 2030
  • 16.
    Debt Debt Company Controlled companies* Total Consolidated 2013 967.0 272.5 1,239.5 (*)IEMG, IE Pinheiros, Serra do Japi Controlled companies run jointly with third parties IE Madeira (51%) IENNE (25%) IE Garanhuns (51%) IE SUL (50%) 16 1,423.2 1,245.1 57.9 101.2 18.9
  • 17.
    Investments R$ (million) 2013 Forecast 2014 Proprietary (A) 224.9 247.3 ComplementaryProjects and New Connections 155.2 194.6 Improvements 49.9 31.0 Corporative 5.3 8.4 Capitalization of Labor Costs 14.5 13.3 Investments - Subsidiaries (B) 590.5 366.9 IEMG 6.3 5.5 IENNE 0.4 0.5 IEPinheiros 39.4 31.1 IESul 21.9 9.4 IEMadeira 344.6 137.0 Serra do Japi 3.6 5.1 IEGaranhuns 166.1 177.1 8.3 1.3 815.4 614.2 Evrecy TOTAL (A+B) 17
  • 18.
    Agenda 2013 Highlights Financial Results2013 Capital Market Performance Other Highlights 18
  • 19.
    Capital Market Performance TradeFinancial - 12/31/2013 (R$ million) Total R$ 1,922 Million Daily Average / Day R$ 7.6 million 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Share Performance until 12/31/2013  Total Trade: 272, 2 mil until 12/31/2013 100.00 -1.12%  Daily Average/Day -8.83% -15.50% -18.40% (base 12/31/2012 = 100) 70.00 Jan-13  Market Value 12/31/2013 R$ 5,2 Feb-13 Mar-13 Apr-13 May-13 TRPL3 19 1,074 Jun-13 Jul-13 TRPL4 Aug-13 Sep-13 IBOVESPA Oct-13 IEE Nov-13 Dec-13 billion
  • 20.
    Agenda 2013 Highlights Financial Results2013 Capital Market Performance Other Highlights 20
  • 21.
    Principal Challenges forCTEEP in 2014 The rollover of the 059 agreement extended CTEEP’s concession for an additional 30-year term. The initial conditions of the agreement are well below the previous ones, with a reduction of 70% in Annual Allowed Revenue  The recovery in growth capacity and CTEEP’s shareholder remuneration is conditional on: Receipt of fair compensation 21 Increase inoperating efficiency Increase of returns from the investments
  • 22.
    Disclaimer All statements containedherein 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. 22
  • 23.
    Investor Relations Tel: +5511 3138-7557 ri@cteep.com.br www.cteep.com.br/ri 23