presentation 3q12

Your energyINSPIRES US1

2Q12 Results PresentationSão Paulo, August 14th 2012


Capital Market Performance

2Q12 Results

CTEEP

Highlights of the Quarter


CTEEP Profile

A estratégia da CTEEP é baseada no crescimento sust entável com foco na contínua criação de valor

� 12,993 Km of transmission lines;

� 18,782 Km of circuits;

� 2,488 Km of optic fiber cables

� 106 substations.

� Responsible for the annual transmission of 28.0% of all electricity produced in the

country, 60% of the energy consumed in the Southeast Region and nearly 100% in the

state of São Paulo;

� The largest private sector concessionaire operating a public utility service for the

transmission of energy in Brazil, controlled by ISA, one of the largest energy

transmission groups in Latin America.


Expansion of national Territory


� Largest Non-stop Transmission

Lines under construction in the

world (IEMadeira)

� Starting in the continuous current

technology

� Relevant Interconnection Projects

in the North of Brazil

� Major supporting Works in the

South and Southeast of Brazil

In Operating

In Construction

EVRECY*

Acquisition of Assets


2Q12 Results


CTEEP



Rating Fitch

� In June, Fitch Ratings assigned a ‘AA+(bra)’ Long-Term National Rating to

Transmissão de Energia Elétrica Paulista S.A. (CTEEP).

� CTEEP’s ratings reflect the Company’s strong financial profile characterized by

manageable leverage, stable cash flow generation and predictable and low business risk.


Acquisition of Evrecy Participações

� Acquisition of 100% of the shares of Evrecy,

from EDP – Energias do Brasil S.A. (“EDP”) for R$

58MM. Concession expires on July 17, 2025.

States of Minas Gerais and Espírito Santo:

� TL 230 kV Governador Valadares/Conselheiro

Pena;

� TL Conselheiro Pena/Aimorés,

� TL Aimorés /Mascarenhas

� 154 km in length

� SS Mascarenhas 500 MVA

� RAP of R$ 8,205,061 (RAP Cycle 2011/2012).

� Additional RAP for complementary work on SS

Conselheiro Pena of R$ 1,196,305

(baseline: Dec/2010)


2Q12 Results


CTEEP



Highlights


� Gross Operation Revenue: R$ 758.5 million

� Net Operation Revenue: R$ 659.4 million

� EBITDA: R$ 346.8 million

�EBITDA Margin: 52.6%

� Net Income: R$ 201.2 million


Gross Operating Revenue


(R$ million)


Net Operating Revenue

(R$ million)

690.7659.4

1,297.8 1,310.8

2Q11 2Q12 1H11 1H12


Maintenance Services Costs and OperatingExpenses


(R$' 000) 2Q12 2Q11Change %

2Q12/2Q111H12 1H11

Change %

1H12/1H11

Personnel (48,509) (40,736) 19.1% (96,683) (79,536) 21.6%

Material (115,213) (209,955) -45.1% (240,807) (356,576) -32.5%

Leases and rentals (2,177) (2,346) -7.2% (4,321) (4,201) 2.9%

Services (107,879) (63,449) 70.0% (182,718) (126,691) 44.2%

Other (3,834) (3,633) 5.5% (9,996) (8,852) 12.9%

Total (277,612) (320,119) -13.3% (534,525) (575,856) -7.2%

Cost of Services


General and Administrative Expenses


(R$' 000) 2Q12 2Q11Change %

1Q12/1Q111H12 1H11

Change %

1H12/1H11

Personnel (12,407) (10,630) 16.7% (25,325) (20,406) 24.1%

Material (188) (399) -52.9% (691) (652) 6.0%

Leases and rentals (1,612) (1,209) 33.3% (3,077) (2,203) 39.7%

Services (11,788) (8,376) 40.7% (25,545) (19,828) 28.8%

Depreciation (1,025) (1,639) -37.5% (2,292) (3,152) -27.3%

Contingencies (4,434) (12,606) -64.8% (10,010) (18,188) -45.0%

Other (4,603) (3,969) -16.0% (14,156) (10,052) 40.8%

Total (36,057) (38,828) -7.1% (81,096) (74,481) 8.9%

General and Administrative Expenses


Ebitda and Ebitda Margin


(R$ million)

333.4 346.8

650.6 697.5

48.3% 52.6% 50.13% 53.21%

-1000.0%

-800.0%

-600.0%

-400.0%

-200.0%

0.0%

200.0%

1.0

351.0

701.0

1,051.0

2Q11 2Q12 1H11 1H12

Ebitda Ebitda Margin


Net Income

A estratégia da CTEEP é baseada no crescimento sust entável com foco na contínua criação de valor(R$ million)

200.5 201.2

406.3 406.3

2Q11 2Q12 1H11 1H12


Capital Structure


(*) with Swap 103,5% CDI

(**) with Swap 98,3% CDI

(***) The cost of debt is 8.5% annually, including a performance bonus of 1.5%..

BNDES

TJLP + 2.3% year 6/15/2015 281,409 328,318

TJLP + 1.8% year 6/15/2015 168,894 196,251

IEMG TJLP + 2.4% year 4/15/2023 55,077 57,631

TJLP + 2.8% year 1/15/2013 235,052 229,947

TJLP + 2.8% year 1/15/2013 144,468 71,890

5,5% year 5/15/2025 5,062 5,328

TJLP + 2.4% year 1/15/2021 4,982 4,240

5,5% year 5/15/2026 49,646 49,562

TJLP + 2.6% year 1/15/2021 78,035 75,872

TJLP + 1.9% year 5/15/2026 51,609 48,282

TJLP + 1.5% year 5/15/2026 44,726 42,217

Comercial Papers

5th Series - CTEEP CDI + 0.4% year 7/5/2012 332,115 316,885

4th Series - CTEEP CDI + 0.4% year 1/12/2012 - 223,048

6th Series - CTEEP 104,9% CDI year 1/5/2013 417,886

2nd

Series - IEMadeira 106,5% do CDI year 10/24/2012 150,260 -

Debentures

1s t Issuance - CTEEP CDI + 1.3% year 12/15/2014 490,249 490,736

2nd Issuance - CTEEP IPCA + 8.1% year 12/15/2017 66,348 67,117

Single Series - IEMadeira 106.5% CDI year 9/15/2012 229,420 221,608

Banks

USD + 4% year * 4/26/2013 131,620 122,077

USD + 2.1% year ** 10/21/2013 173,211 159,116

CDI + 2.0% year 10/21/2013 4,510 4,365

10.0% year - 55,069 55,898

Eletrobras 8% year 11/15/2021 366 391

Leasing - - 467 619

3,170,481 2,771,398TOTAL CONSOLIDATED

4Q11

CTEEP

IENNE

FUNDING CHARGES MATURITY 2Q12

IEMADEIRA

SERRA DO JAPI

CTEEP

IESUL

PINHEIROSTJLP

35.3%

CDI51.2%

IPCA2.5%

Others11.4%

Distribuition of debt burdens

BNDES35.3%

Comercial Papers28.4%

Debentures24.8%

Banks12.4%

Distribuition of debt

contracting


Breakdown of Net Debt


� As a contractual obligation under its financing

agreements, the Company must comply with

quarterly and semi-annually determined

covenants on the basis for the financial

statements for these periods and prepared in

line with generally adopted accounting practices

in Brazil. The Company’s principal covenant is

the Net Debt to Ebitda ratio that should be

equal or less than 3.5.

2,564.1

2,959.8

1.0

351.0

701.0

1,051.0

1,401.0

1,751.0

2,101.0

2,451.0

2,801.0

4T11 2T12

Net Debt

(R$ million)

1.82.0

Net Debt/EBITDA (Last 12 months)

� At the end of 2Q12, net debt was R$ 2,959.8 million, representing an increase of 15.4 % over outstanding

debt in 4Q11. The net debt to shareholders equity ratio at the end of 2Q12 was 63.8%.


2Q12 Results


CTEEP



Capital Market

80.00

90.00

100.00

110.00

120.00

130.00

January-12 February-12 March-12 April-12 May-12 June-12

TRPL3 TRPL4 IBOVESPA IEE

+8.59%

-4.23%

+10.54%

+25.93%

(base 31/12/2011 = 100)

0.0

5.0

10.0

15.0

20.0

25.0

30.0

Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12

Trading Financial 1H12(R$ million)

Total R$ 1,192 milhões Daily Avarege/ Dia R$ 9.5 milhões

� 104.444 thousand trading

transactions in 1H12 (829

daily average traded);

� Present on all trade days;

� Component of Ibovespa;

� R$ 10.0 billion market

capitalization.


Shareholder’s Remuneration


� In 2Q12, CTEEP paid out to its shareholders R$ 63.9 million as interest on shareholders’ equity, corresponding to

R$ 0.4189 per share for both types of share and R$ 81.7 million as dividends equivalent to R$ 0.5350 per share,

again for both types.

EVENT DATE TOTAL P/SHARE

Dividends 50,331,754.67 0.329695

JCP 63,949,929.58 0.4189

AGO/E 4/16/2012 Dividends 31,348,975.09 0.205349 2011

145,630,659.34 0.953944

AMOUNT R$TYPE

3/29/2012 2012

DATE OF PAYMENT FISCAL YEAR

4/30/2012

AUTHORIZED

RCA

TOTAL OF PAYMENT - 2Q12


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 protected]

www.cteep.com.br/ri

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