- CTEEP is a Brazilian power transmission company that is part of ISA, one of the largest transmission groups in Latin America. It operates power lines and substations in the state of São Paulo.
- In 3Q13, CTEEP reported a net loss of R$245 million due to a R$516 million provision related to amounts receivable from the São Paulo tax authority (SEFAZ-SP). Excluding this provision, net income was R$95 million.
- Total debt as of 3Q13 was R$1.9 billion, with 70% considered short-term debt. Cash positions totaled R$1.2 billion, resulting in net debt of R$672 million
3. Company Profile
A CTEEP faz parte da ISA, um dos maiores
grupos de transmissão da América Latina:
Responsible for transmission of:
27% of all electricity produced in the
48 years experience in the electrical
country
industry
60% of the energy consumed in the
Assets
in
power
transmission,
100% in the state of São Paulo;
telecommunication and and highways
Present
in
Brasil,
Chile,
Argentina,
Colômbia, Peru, Bolívia and
financial
19,189 Km of circuits
investor
with
emphasis on optimizing capital structure
3
A network made up of:
13,724 Km of transmission lines
América Central
Long-term
Southeast Region quase
an
2,280 Km of optic fiber cables
106 substations
4. Shareholder Breakdown - 3Q13
Preferred Shares– TRPL4
(58% of the total)
Ordinary Shares- TRPL3
(42% of the total
89.5%
10.6%
6.6%
53.9%
9.8%
0,7%
ISA Capital do Brasil
Eletrobras
Others
29.0%
Eletrobras
State Government of São Paulo
Vinci Ltda
Others
0,7%
Total Capital Stock
35.2%
6.1%
3.8%
37.8%
4
17.1%
ISA Capital do Brasil
Eletrobras
State Government of São Paulo
Vinci Ltda
Others
6. Results
Consolidated
Results
(R$ million)
3Q13
3Q12
∆%
9M13
9M12
∆%
Gross Operating Revenue
323.3
660.8
(51.1%)
792.6
1,772.0
(55.3%)
Deductions from Operating Revenue
(35.3)
(74.0)
(52.3%)
(98.4)
(210.2)
(53.2%)
Net operating revenue
288.0
586.8
(50.9%)
694.2
1,561.8
(55.6%)
(183.3)
(175.5)
4.5%
(548.2)
(523.6)
4.7%
(9.3)
(8.4)
10.5%
(27.9)
(25.1)
11.0%
Other Operating (Expenses)/Income**
0.4
0.7
32.2%
17.3
(2.3)
836.3%
Equity
9.3
20.6
(55.1%)
53.8
46.6
15.3%
Financial Results
13.3
(46.2)
128.9%
64.3
(154.3)
141.6%
Operating Income
118.4
377.9
(68.7%)
253.4
903.1
(71.9%)
IR & CSLL
(23.0)
(136.6)
(83.2%)
(39.6)
(255.5)
(84.5%)
95.4
241.3
(60.4%)
213.9
647.6
(67.0%)
SEFAZ-SP Provision (***)
(340.7)
0.0
-
(340.7)
0.0
-
Net Income
(245.3)
241.3
(201.6%)
(126.9)
647.6
(119.6%)
General and Administrative Expenses*
Depreciation
Net Income ex-SEFAZ-SP provision
6
(*) ex Depreciation
(**)ex Amortization of goodwill
(***) Net worth calculated as the difference between R$ 516.3 million related to the valuation allowance for the portion of
receivables from SEFAZ-SP and R$ 175.6 million related to credit deferred IR/CS (34%).
7. SEFAZ-SP Provision – Law 4.819
In 3Q13, CTEEP reviewed amounts receivable under Law 4.819/58 and in the
light of events in 2013, set aside a provision for losses on the realization of
credits for part of the total receivable amount corresponding to the
installments not recognized as the exclusive responsibility of SEFAZ-SP, of
these events most notablybeing:
(i)
a change in the time horizon for realizing a part of the assets due to
extinguishment without a ruling on merit of the legal action for collecting
amounts due from the Government of the State of São Paulo and other
procedural events;
(ii) recognition that the law courts are the correct jurisdictional forum to
handle the question based on STF precedent; and
(iii) the current legal status of the other actions in relation to Law 4.819/58,
such as the recognition of the legitimacy of SEFAZ-SP’s pass-throughs to
CTEEP of amounts which had been disallowed up to April 2013
7
13. Perfil da Dívida - Consolidado
FUNDING
CHARGES
MATURITY
3Q13
2012
TJLP + 2,3% year
15/06/15
164,574
234,681
TJLP + 1,8% year
15/06/15
98,574
140,798
Distribuition of
debt contracting
BNDES
CTEEP
0.2%
10.1%
Comercial Papers
6th Series - CTEEP
29.4%
104,9% CDI yera
05/01/13
0
433,873
1st Issuance - CTEEP
CDI + 1,3% year
15/12/14
334,233
325,959
2nd Issuance - CTEEP
IPCA + 8,1% year
15/12/17
72,834
70,915
Single Series - CTEEP
105,5% do CDI year
02/07/14
769,705
726,476
USD + 4% year
26/04/13
0
132,309
USD + 2,1% year
21/10/13
195,368
177,318
8% year
15/11/21
302
340
-
-
3,784
5,048
1,639,374
2,247,717
Debêntures
60.2%
Banks
CTEEP
Eletrobras
Leasing
TOTAL CTEEP:
BNDES
Debentures
Banks
Interest Rate
3.7%
10.3%
BNDES
IEMG
29.4%
13
52,513
15/05/26
45,381
47,758
TJLP + 2,6% year
15/04/21
73,720
80,152
15/04/23
14,413
15/02/28
7,166
TJLP + 1,9% year
15/05/26
47,003
49,801
TJLP + 1,5% year
Total Consolidated (R$ mil)
48,692
TJLP + 2,06% year
TOTAL SUBSIDIARIES
15/04/23
3,5 year
SERRA DO JAPI
TJLP + 2,4% year
5,5% year
PINHEIROS
Others
15/05/26
40,624
43,038
276,999
273,262
1,916,373
2,520,979
56.5%
TJLP
CDI
IPCA
Others
14. Perfil da Dívida - Consolidado
Debt
(BRLm)
3Q13
2012
Debt
1,916.4
%
2,521.0
%
Short-term Debt
1349.4
70.4%
1103.2
43.8%
Long-term Debt
567.0
29.6%
1,417.8
56.2%
Cash*
Net Debt
1244.2
309.6
672.2
2,211.4
(*) 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.
14
15. Debt Repayment - Consolidated
(R$ millions)
Future Cash (NI)
2013
2014
2015
Total
Accounts Receivable (NI) - (projection)
143.0
572.1
333.7
1,048.8
27.0
69.3
12.0
108.2
170.0
641.4
345.7
1,157.1
Interest Income on the Accounts
Receivable (projection)
Total
Position of the Fund on 09/30/13: R$ 1.239,4 millions
1,137.6
418.2
152.3
120.1
44.1
2013
2014
2015
CTEEP
15
44.1
2016
2017
Subsidiaries
After 2017
16. Dívida Controladas em conjunto
Debt CTEEP (Equity Income) - 09/30/2013
Cost
Final
Maturity
Value (R$ MM)
IPCA + 5,5% a.a.
3/18/2025
186.0
IE MADEIRA BNDES
TJLP + 2,42% a.a.
2/15/2030
776.9
IE MADEIRA BNDES
2,5% a.a
10/15/2022
120.1
8,50% a.a.*
10/10/2032
142.1
Company
Bank
IE MADEIRA ITAÚ BBA
IE MADEIRA BASA
Total IE Madeira (51% CTEEP)
IENNE
BB
IENNE
BNB
1,225.0
CDI + 1,35% a.a
11/5/2013
4.1
8,50% a.a.*
5/19/2030
53.9
4/30/2014
58.0
0.0
98.8
Total IENNE (25% CTEEP)
IEGARANHUNS HSBC
106,50% CDI
Total IE GARANHUNS (51% CTEEP)
98.8
IE SUL
BNDES
5,50% a.a.
1/15/2021
4.0
IE SUL
BNDES
3,00% a.a
4/15/2023
4.4
IE SUL
BNDES
TJLP + 2,58% a.a.
5/15/2025
10.8
Total IE SUL (50% CTEEP)
TOTAL (R$ million)
16
19.3
1,401.1
22. Other Outstandings
REH 1.595 established the new RAP for the 2013/2014 cycle at R$ 630.2
million
The IEMadeira Transmissin Line (Lot D) went into operation on August 1,
2013 – Total RAP: R$ 233.2 million.
The IEPinheiros Itapeti (Lot K) Substation went into operation on August 9,
2013 – RAP: R$ 4.9 million
Public Hearing 101/2013 held on October 10, 2013 to establish criteria and
procedures for assessing the value of electricity energy transmission
company assets not fully depreciated
Authorizing resolutions with new Upgrades and New Connections (RBNI)
and discussion as to the methodology for remunerating Improvements
22
23. 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.
23