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3Q11 Results: IFRS Impacts and 14.1% RAP Increase
- 1. 3Q11 Results
Presentation
São Paulo, November 16th 2011
© Todos os direitos reservados para CTEEP
- 2. Agenda
IFRS – Key Impacts
3Q11 Results
Capital Market Performance
3Q11 Results Presantion © Todos os direitos reservados para CTEEP 2
- 3. IFRS - Key Impacts: Assets
BR GAAP Effect of the IFRS BR GAAP Effect of the IFRS
transition to the transition to
IFRS the IFRS
Assets (R$' 000) September 30, 2011 December 31, 2010
CURRENT ASSETS
Cash and Banks 327,466 - 327,466 54,983 - 54,983
Trade Account Receivable 260,703 1,338,171 1,598,874 244,524 1,179,866 1,424,390
Inventory 48,181 - 48,181 44,791 - 44,791
Amounts Receivable from the State Finance Secretariat 20,798 - 20,798 22,938 - 22,938
Taxes and Contributions to be offset 13,434 - 13,434 11,230 - 11,230
Tax benefit - Goodwill 28,832 (28,832) - 28,832 (28,832) -
Deferred income Tax and Social Contribution 28,997 (28,997) - 32,575 (32,575) -
Prepaid Expenses 6,339 455 6,794 1,876 735 2,611
Financial Derivatives 5,881 - 5,881
Others 73,975 - 73,975 35,848 - 46 35,802
814,606 1,280,797 2,095,403 477,597 1,119,148 1,596,745
NON-CURRENT ASSETS
Long-Term Assets
Trade Account Receivable 316 4,986,841 4,987,157 978 4,224,331 4,225,309
Amounts Receivable from the State Finance Secretariat 771,118 - 771,118 681,129 - 681,129
Tax benefit - incorporated goodwill 97,455 28,832 126,287 119,079 28,832 147,911
Deferred income Tax and Social Contribution 75,690 - 75,690 - 62,171 - 34,121 28,050
Pledges and Escrow 54,858 - 54,858 42,248 - 42,248
Inventory - 192,125 192,125 - 184,264 184,264
Financial Derivatives 26,770 - 26,770
Credits with Associates 7,925 - 7,925 6,624 - 6,624
1,034,132 5,132,108 6,166,240 912,229 4,403,306 5,315,535
Property, Plant and Equipment 5,895,774 (5,886,988) 8,786 5,254,978 (5,245,784) 9,194
Intangible Assets 74,246 (64,450) 9,796 70,066 (60,122) 9,944
5,970,020 (5,951,438) 18,582 5,325,044 (5,305,906) 19,138
Total Assets 7,818,758 461,467 8,280,225 6,714,870 216,548 6,931,418
3Q11 Results Presantion © Todos os direitos reservados para CTEEP 3
- 4. IFRS – Key Impacts: Income Statement
3Q11 RESULTS
(in R$' 000) 3Q11 3Q10
Effect of the Effect of the
BR GAAP transition to IFRS BR GAAP transition to IFRS
the IFRS the IFRS
Net operating revenue 474,958 421,575 896,533 442,824 177,884 620,708
Costs of operating services (121,506) (236,408) (357,914) (110,233) (106,638) (216,871)
Gross Revenue 353,452 185,167 538,619 332,591 71,246 403,837
Operational Revenues (Expenses)
General and administrative (27,062) (2,052) (29,114) (35,557) (3,980) (39,537)
Management fees (1,347) (306) (1,653) (1,378) (316) (1,694)
Financial expenses (78,937) (4,743) (83,680) (33,723) (4,360) (38,083)
Financial income 33,247 9,911 43,158 11,389 970 12,359
Other expenses, net (7,433) 28,575 21,142 (2,418) (4,248) (6,666)
Operating profit 271,920 216,552 488,472 270,904 59,312 330,216
Income tax and social contribuition
Current (73,799) - (73,799) (41,729) - (41,729)
Deferred 10,091 (79,901) (69,810) (25,262) (19,215) (44,477)
Profit before reversal of interest on own capital 208,212 136,651 344,863 203,913 40,097 244,010
Net income for the fiscal year 208,212 136,651 344,863 203,913 40,097 244,010
3Q11 Results Presantion © Todos os direitos reservados para CTEEP 4
- 5. IFRS - Key Impacts: Cash Flow
9M11 CASH FLOW
(in R$' 000)
9M11 9M10
Effect of the Effect of the
BR GAAP transition to T IFRS BR GAAP transition to IFRS
the IFRS the IFRS
Cash Flow of operating activities 333,180 (301,325) 31,855 311,231 (170,914) 140,317
Cash flow of investment activities (301,776) 301,325 (451) (171,210) 170,914 (296)
-
Cash flow of financing activities 78,866 - 78,866 (152,424) - (152,424)
3Q11 Results Presantion © Todos os direitos reservados para CTEEP 5
- 6. Agenda
IFRS – Key Impacts
3Q11 Results
Capital Market Performance
3Q11 Results Presantion © Todos os direitos reservados para CTEEP 6
- 7. Readjusted Annual Allowed Revenue
Readjustment in Annual Allowed Revenue - RAP: Pursuant to
Ratifying Resolution 1171, the electric energy regulator – ANEEL has
announced the new RAP for the 2011/2012 cycle. CTEEP’s RAP will now be
R$ 2,008.3 million, equivalent to an increase of 14.1% in relation to the
2010/2011 cycle.
Network Basic Other Transmission Facilities
Concessionay / New
Existing New Share Existing Share
Bid Investiment TOTAL
Contract Assets Investiments Adjustment Assets Adjustment
s
59/2001 1,241,581 314,290 ‐ ‐17,795 360,076 106,099 ‐11,767 1,992,484
CTEEP
143/2001 ‐ ‐ 15,925 ‐132 ‐ ‐ ‐ 15,793
IEMG 004/2007 14,193 ‐ ‐ ‐ ‐ ‐ ‐ 14,193
012/2008 ‐ ‐ 7,386 ‐ ‐ ‐ ‐ 7,386
PINHEIROS 015/2008 12,491 ‐ ‐ ‐ ‐ ‐ ‐ 12,491
018/2008 ‐ ‐ 3,174 ‐ ‐ ‐ ‐ 3,174
SERRA DO
026/2009 ‐ ‐ 25,200 ‐ ‐ ‐ ‐ 25,200
JAPI
IENNE 001/2008 36,435 ‐ ‐ ‐ ‐ ‐ ‐ 36,435
013/2008 4,447 ‐ ‐ ‐ ‐ ‐ ‐ 4,447
IESUL
016/2008 8,006 ‐ ‐ ‐ ‐ ‐ ‐ 8,006
013/2009 ‐ ‐ 176,249 ‐ ‐ ‐ ‐ 176,249
IEMADEIRA
15/2009 ‐ ‐ 151,788 ‐ ‐ ‐ ‐ 151,788
(R$ million) 1,317,153 314,290 379,722 ‐17,927 360,076 106,099 ‐11,767 2,447,646
3Q11 Results Presantion © Todos os direitos reservados para CTEEP 7
- 8. Gross Operating Revenue
Gross Operating Revenue reported a quarter-on-quarter increase of 28.4% to R$ 1,002.2
million in 3Q11 and 43.2% when compared with 3Q10 due in large part to the increase of
104.1% in construction revenues and 35.8% in financial revenues in the past 12 months.
3Q11 Results Presantion © Todos os direitos reservados para CTEEP 8
- 9. Net Operating Revenue
Net Operating Revenue
(R$ million)
+44.4%
896.5
+29.8%
690.7
620.7
3Q10 2Q11 3Q11
Deductions from Operating Revenue increased 17.8% in the quarter and 33.1% in
the past 12 months, reaching R$ 105.7 million in 3Q11 against R$ 89.7 million in
2Q11 and R$ 79.4 million in 3Q10, due to the increase, verified in the last 12
months, of 53.2% in taxes on revenue - reflecting growth in operating revenue.
3Q11 Results Presantion © Todos os direitos reservados para CTEEP 9
- 10. Costs of the Operating Services and
Operating Expenses
Major Changes:
Construction together with operation and maintenance costs posted an increase
of 11.8% relative to the second quarter of 2011 and 65.0% against the same
period in 2010, totaling R$ 357.9 million in 3Q11 against R$ 320.1 million in 2Q11
and the R$ 216.9 million in 3Q10. This variation arises largely from the increase of
176.3% in expenditures with materials, reflecting the progress made in work at
Serra do Japi and IEMadeira in addition to upgrading and expansion work at CTEEP
in the past 12 months.
General and Administrative Expenses reported a reduction of 20.8% in relation
to 2Q11 also declining by 25.4% compared with 3Q10, largely due to the
reduction in contingencies offset by the increase in outstanding executory actions
involving tied escrow accounts and deposits.
3Q11 Results Presantion © Todos os direitos reservados para CTEEP 10
- 11. Ebitda e Ebitda Margin
Ebitda (R$ million)
and Ebitda Margin (%)
700.0 100.0%
58.7% 48.3% 56.8%
50.0%
+39.9% 509.4 0.0%
+52.8%
-50.0%
364.1
350.0
333.4 -100.0%
-150.0%
-200.0%
-250.0%
0.0 -300.0%
3Q10 2Q11 3Q11
Ebitda Ebitda Margin
In 3Q11, EBITDA margin was 56.8%, amounting to R$ 509.4 million, a growth of
52.8% compared with 2Q11 (R$ 333.4 million) and 39.9% against the same
period for 2010 when EBITDA totaled R$ 364.1 million.
3Q11 Results Presantion © Todos os direitos reservados para CTEEP 11
- 12. Financial Results
Major Changes:
The financial result was an expense of R$ 40.5 million in 3Q11, corresponding to
a reduction of 24.6% (R$ 53,7 million) in relation to 2Q11 and an increase of
57.5% (R$ 25.7 million) for the same period in 2010.
The decline in financial expenses in the quarter is mainly due to the recognition
of financial revenue in the form of Interest on Assets with respect to a legal ruling
in favor of the Company*, as well as an increase in the average outstanding
balance of Interest on Assets and Liabilities of R$ 6.7 million, a result of the
positive accumulated currency translation effect at the IEMadeira subsidiary of
R$ 9.9 million offset against a negative accumulated currency translation effect of
R$ 3.2 million.
Note: The impact of interest on shareholders’ equity on financial expenses is
excluded for the purposes of calculating the financial result.
* Note 9 (b) of the ITR
3Q11 Results Presantion © Todos os direitos reservados para CTEEP 12
- 13. Net Income
Net
700.0 Income
(R$ million)
+41.3%
+72.0% 344.9
350.0
244.0
200.5
0.0
3Q10 2Q11 3Q11
Earnings per share were R$ 2.27 in 3Q11
3Q11 Results Presantion © Todos os direitos reservados para CTEEP 13
- 14. Capital Structure
At the end of 3Q11, net debt was R$ 2,166.6 million.
The net debt to net equity ratio at the end of 3Q11 was 47.0%.
FUNDING CHARGES MATURITY 3Q11 12/31/2010 Distribuition of debt
burdens
CDI
BNDES 51.4%
TJLP + 2.3% year 6/15/2015 351,410 421,146
CTEEP
TJLP + 1.8% year 6/15/2015 210,417 160,605
IEMG TJLP + 2.4% year 4/15/2023 58,889 37,630 TJLP
IEMADEIRA TJLP + 2.8% year 1/15/2012 217,147 185,134 39.0%
IESUL TJLP + 2.4% year 5/15/2025 9,671 -
PINHEIROS TJLP + 2.6% year 5/15/2026 123,932 -
Comercial Papers
5th Series - CTEEP CDI + 0.4% year 7/5/2012 308,237 -
4th Series - CTEEP CDI + 0.4% year 1/12/2012 216,998 -
Debentures IPCA
1st Issuance CDI + 1.3% year 12/15/2014 507,100 490,405 Others
2.6%
2sd Issuance IPCA + 8.1% year 9/15/2012 64,911 65,388 7.1%
Single Series CDI + 6.5% year 9/15/2012 205,141 -
Banks
CTEEP USD + 4% year * 4/26/2013 119,754 - Distribuition of debt
CDI + 2.0% year - 2,969 1,396 contracting
IENNE
10.0% year 5/19/2030 55,748 56,094
Comercial Papers
IESUL CDI + 1.5% year 3/11/2011 - 8,297
21.1%
BNDES
Serra do Japi CDI + 0.3% year 10/20/2011 40,645 -
39.0%
Eletrobras - 11/15/2021 407 441
Leasing - - 726 1,702
TOTAL CONSOLIDATED 2,494,102 1,428,238
Debentures
31.2%
* With swap 103.5% of CDI. Bancos
8,7%
** With performance bonus of 1.5% the cost of debt is 8.5% per annum.
3Q11 Results Presantion © Todos os direitos reservados para CTEEP 14
- 15. Agenda
IFRS – Key Impacts
3Q11 Results
Capital Market Performance
3Q11 Results Presantion © Todos os direitos reservados para CTEEP 15
- 16. Capital Market
Trading Financial - 9M11
(R$ million)
Total R$ 1,327 million Daily Avarege: R$ 7.1 million
20.00
18.00
16.00
14.00
12.00
10.00
8.00
6.00
4.00
2.00
0.00
Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11
135.7 thousand
trading transactions
in 3Q11 (722 daily
average traded).
Present on all trade
days;
Component of
Ibovespa;
R$ 7.8 billion market
capitalization.
3Q11 Results Presantion © Todos os direitos reservados para CTEEP 16
- 17. Shareholder’s Remuneration
In 3Q11, CTEEP paid out R$ 63.5 million in interest on shareholders’ capital
corresponding to R$ 0.42 per share of both types and R$ 177.2 million in
dividends - equivalent to R$ 1.16 per share of both types.
AUTHORIZED AMOUNT R$
DATE OF
TYPE FISCAL YEAR
PAYMENT
EVENT DATE TOTAL P/SHARE
RCA 6/30/2011 JCP 2011 63,460,717.92 0.417975 7/28/2011
RCA 6/30/2011 Dividends 2011 160,524,955.66 1.057275 7/28/2011
RCA 4/29/2011 Dividends 2010 16,714,326.45 0.110087 7/28/2011
TOTAL OF PAYMENT - 3Q11 240,700,000.03 1.585337
3Q11 Results Presantion © Todos os direitos reservados para CTEEP 17
- 18. 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.
© Todos os direitos reservados para CTEEP 18
- 19. CTEEP – Companhia de Transmissão de Energia Elétrica Paulista
Investor Relations
Phone: 55 11 3138-7557
ri@cteep.com.br
www.cteep.com.br/ri
© Todos os direitos reservados para CTEEP 19