The document is a presentation of CTEEP's 2Q14 financial results. It highlights that CTEEP grew revenue 9.2% in 1H14 compared to the same period in 2013. EBITDA reached R$204 million in 1H14, with a margin of 46%. Net income increased 48.4% in 1H14 versus 1H13 to R$90.1 million. The presentation also reviews the company's debt position, capital market performance, and provides disclaimers about projections.
3. 3
Highlights 2Q14
ď§ Conclusion of work on the IEMadeira substations:
ď§ Net Income
ď§ EBITDA (ICVM 527) and Ebitda Margin
ď§ Readjustment in Annual Revenue Allowance (RAP)
ď§ Recognition of Improvements Effect
4. 4
298.9
85.8
Growth of 9.2% in 1H14
84.5 469.3 63.1
406.2
334.3
81.2
83.2 498.7 55.0
443.7
Company Subsidiaries
Revenue Composition
1H13 1H14
5. 5
Costs of Construction Services, O&M and Operating
Expenses
Efficient management of costs and expenses
368.5 78.1
1H13 1H14
30.0
96.0
164.4
144.9
62.3
13.0
60.8 281.0
Costs and
Oper.
Expenses
Construction Improvements Gen. and
Adm.
Expenses
O&M O&M Gen. and
Adm.
Expenses
Improvements Construction Costs and
Oper.
Expenses
Controladora Controladas
6. 6
40.0
114.3
91.6
217.3
5.7
5.5
11.1
8.1
2Q13 2Q14 1H13 1H14
Company Subsidiaries
45.7
225.4
119.8
102.7
Ebitda ICVM 527 and Ebitda Margin
28.4%
46.9%
Ebitda Margin
(R$ million)
22.3%
54.9%
25.3%
50.8%
ď§ EBITDA (ex-Credit PIS / COFINS) reached R$ 204.0 million in 1H14, the EBITDA
margin was 46.0%.
7. 7
Equity
Startup of Lot F of IEMadeira
(R$ million) 1H13 1H14
1.0 0,1 0.4
43.0
1,0 0,1 0,4
Madeira Garanhuns IENNE IESUL
-1.1 0.2
28.9
8.1
Equity: R$ 44.3 43,0 Equity: R$ 36.0
Madeira Garanhuns IENNE IESUL
8. 8
11.9
16.4
6.7
11.3
50.9
60.0
25.4
-4.5 -4.6
-9.1 -8.8
11.9
6.7
2T13 2T14 1H13 1H14
Company Subsidiaries
16.5
Financial Result
(R$ million)
Lower interest income on the NI
-67.6%
-43.7%
9. 9
118.4
175.7
47.4
90.1
200.0
180.0
160.0
140.0
120.0
100.0
80.0
60.0
40.0
20.0
0.0
2Q14 2Q13 1H14 1H13
Net Income
(R$ million)
+90,1%
+48,4%
ď§ Whereas the exclusion of non-recurring net effect of credits of PIS and
COFINS tax, net income would be R$ 161.5 million in 1H14.
10. Net Debt
10
Funding BNDES of R $ 151.0 million
Debt
(BRLm)
1H14 2013 Î%
Debt 1,308.9 1,239.5 5.6%
Short-term Debt 388.2 377.7 2.8%
Long-term Debt 920.6 861.8 6.8%
Cash* 533.0 600.0 -11.2%
Net Debt 775.9 639.5 21.3%
(*) As from January 2013, the Companyâs 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.
11. 11
Debt amortization
(R$ million)
240.7
133.4
Future Cash (NI) 2014 2015 Total
Accounts Receivable (NI) - (projection) 332.2 332.2 664.4
197.40 197.4
179.1
13.0
59.4
29.2
19.8
33.1
26.5 26.5
26.5
85.4
15.0
260.5
166.5
223.9 223.9 205.6
39.5
2014 2015 2016 2017 2018 2019 2020 a 2024 2025 a 2029
CTEEP Subsidiaries
144.8
44.2
26.5
Interest Income on the Accounts
Receivable (projection)
33.0 12.0 45.0
Total 365.2 344.2 709.4
Cash and Financial Investments on 06/30/14: R$ 533.0 millions
14. Capital Market Performance
14
Total R$ 842 Million Daily Average / Day R$ 6.8 million
ď§ Total Trade: 139,986 mil
ď§ Daily Average/Day1,229
ď§ Market Value
06/30/2014 R$5,4billion
Trade Financial - 06/30/2014
(R$ million)
40.0
35.0
30.0
25.0
20.0
15.0
10.0
5.0
Share Performance until 06/30/2014
100.00
70.00
Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14
TRPL3 TRPL4 IBOVESPA IEE
7.17%
4.50%
3.22%
2.71%
(base 12/31/2013 = 100)
0.0
Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14
15. Disclaimer
15
All statements contained herein with regard to the Companyâs
business prospects, projected results and the potential growth
of its business aremere forecasts, based on local management
expectationsin relation to the Companyâs 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.