Apimec ing

1

APIMEC 2013and Presentation of Results for 2Q13

São Paulo - August 15th, 2013

2

APIMEC 12 –Year Seal

3

Agenda

CTEEP - Operating Performance

Financial Results 2Q13 and 1H13

ISA and CTEEP – Strategic Review

Annual Tariff Readjustment – 2013/2014 Cycle

Capital Markets Performance

IFRS X Regulatory

4

ISA - Profile

� More than 48 years of experience in the energy transmission sector� Assets in energy transmission, telecommunications and highways� Footprint in Brazil, Chile, Argentina, Colombia, Peru, Bolivia and Central

America � USD 890 milllion in operating revenue in the first quarter of 2013� Long-term financial investor with focus on optimizing of capital structure

CTEEP is a component of one of the largest energy t ransmission groups in Latin America

Consolidated EBITDA by businessConsolidated EBITDA by country

39%

27%

21%

11%

Colombia

Chile

Brazil

Peru 67%

27%

4%2%

Transporte deenergia

Concessões Viárias

Telecomunicação

Gestão de Sistemaem tempo Real

Electric Energy Transport

Road Concessions

Telecommunications Transport

Smart Management of Real Time System

5

MEGA Achievements

Targets for 2016 Goals reached by 2012

� Revenue of USD 3.5 billion � USD 2.434 billion (70%)

� 80% of revenue generated outside Colombia

� USD 1.664 million (68%)

� 20% of revenue from different Energy Transmission sectors

� USD 538 million (22%)

� Presence in 50% of energyinterconnections

� International interconnections

� Business diversification � Entry into the Highway Concessions business

� Largest data transmitter in the Andean Region

� Continental leadership in connectivity infrastructure

� Development of future energy markets � Energy derivatives negotiation system

6

Up to the current time ISA’s growth exceeded targets

<Progress at MEGARevenue in US$ MM

2,410

1,931

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2,200

2,400

2,600

2006 2007 2008 2009 2010 2011

CAGR1

+20%

+25%

MEGA upward path defined in 2006

ISA Revenue

CAGR- Compound Annual Growth Rate

SOURCE: 2011 Consolidated Results Statement and Consolidated Financial Plan updated in August 2012

7

ISA’s growth exceeded other benchmark companies in electric energy transmission

28

20

13 12 119 9

5

sOURCE: Financial information from ISA for August 2012; CPAT; Working team’s analysis

Average annual growth in revenue%, CAGR1 2006-11

14% average

1 CAGR- Compound Annual Growth Rate )2 CAGR 2007-20113 CAGR 2010-2011

8

Results 2006 -2012

1

Year2006

Year 2012

Geographical expansion, diversification� 16,836 km to 40,626 km of circuits (142%).� 4,267 km to 22,730 km of optic fiber cable

(433%).� 6 to 30 companies.� Entry into the Highway Concessions

business.� Transformation of Markets’ Operation and

Management business.

Financial and economic management, growth� 100% in assets.� 113% in operating revenue.� 161% in EBITDA.� 81% in profits.� 70% share appreciation (closing 2005).� About US$ 500 million in dividends.

9

Corporate Strategy - Consolidation

START

GROWTH

MATURITY

… recognize and consolidate the

capacity both in scale and jointly for preparing the

foundations for the next phase of the growth

cycle.

10

Corporate Strategy - Guidelines

Group returns as the principal strategic aspiration

� Mix of businesses and geographies: on the basis of synergy of existing assets and capacities, principally in Colombia, Brazil, Peru and Chile.

� Growth: will depend on the opportunities for achieving the desired level of return (higher).

� ISA’s vocation: creation of value through “excellence” in operation and development of the infrastructure.

Capture of growthopportunities with

higher returns

1Improvement in

returns from currentbusinesses and“core” business

2Dynamic adjustment of

businesses andgeographies portfolio

3

11

ISA is aligned around 3 strategic axes

Capture of growth opportunities with higher returns for ISA

▪ Focus on profitable opportunities in Energy Transmission (ET)–Focus on growth opportunities in higher

return ET segments

–Selective participation in new tender bids (according to the degree of synergies with current assets, expansion in sub-transmission assets)

–Opening up of new markets with opportunities for creating value through restructuring

▪ Development of highway concessions, principally in Colombia

▪ Capture of highly synergetic opportunities in other businesses such as :

–Telecoms1

–Real Time Systems Intelligent Management

Dynamic adjustment of business and geographies portfolio

Maintain active a constant reflection on opportunities for adjusting the portfolio based on criteria of:

–Potential for value creation at ISA in relation to the value for a third party

–Access to profitable growth opportunities

–Return in relation to other options

1Improvement in returns from current Group businesses and "core" business

▪ Improvement in Group O&M through identification and extension of best practice in a transversal manner

▪ Leveraging of the Group scale in supplies of equipment, materials and projects

▪ Ensure cost and delivery and optimization of CapEx

2 3

12

ISA’s Vision

� ISA will have a higher return than the cost of equity and long- term stability.� In the Energy Transmission business, ISA will maintain its p osition of operator with the largest

footprint in Latin America, consolidating its position in t he region and reaching high levels ofoperating efficiency aligned to best global practices.

� In the Highway Concessions business, ISA will capture oppor tunities in the region with a focuson Colombia.

� In the Telecoms Carrier Network business, ISA will consolid ate its leadership as na independentcarrier in Latin America, developing an IP (internet protoc ol) ecosystem in the region.

� ISA will expand its Real Time Systems Intelligent Managemen t with new services, accessingnew highly profitable opportunities in other sectors.

ISA 2020By 2020, ISA will have multiplied its profits 3 ti mes through

the capture of the most profitable growth opportuni ties in the existing businesses in Latin America, increase

in efficiency and portfolio optimization.

13

Strategic Directions Cycle

ISA’sStrategicUpdate


New scenáriofor the sectorNew scenáriofor the sector

CompanyProfile Post-Concession

Rollover

CompanyProfile Post-Concession

Rollover

A atualização estratégica da ISA embasa o ciclo deDirecionamento Estratégico da CTEEP

14

Strategic Guidance Cycle 2013



New scenario for the sectorNew scenario for the sector

Company Profile Post Concession

Rollover


Rollover

New scenario for the sectorNew scenario for the sector


Rollover

15

Regulatory challenges � Indemnification for the existing system (ES)� Indemnification for the improvements� Remuneration of future improvements

Capital Structure� Adjustment to the new operating reality� Reduction in debt to the new optimum financial leverage� Preference for long-term financial resources

Operating Efficiency and Growth � Optimization of costs� Efficiency in the investments in capacity upgrades and improvements� Selectivity in participating in auctions and acquisitions

Challenges

16

Strategic Focus

Atualização da Estratégia

CTEEP’s strategy implies efforts in the direction of PRODUCTIVITY AND EFFCIENCY, Responding to the requirements of an increasingly demanding and dynamic market,

with outstanding RETURNS.

For the 2013/2014 cycle, CTEEP has itemized some strategic initIatives:

Smart Grid

Optimization of Costs

Capital Structure and DebtEndividamento

Regulatory Management

Updating of Strategy

17

Agenda






IFRS X Regulatory

18

Operating performance

The indicator for first half results remained at 9 9.97% for Transformers and 99.99% for Transmission Lines, sho wing an excellent Operating Performance.

ENES – Energy Not Supplied

Uptime Indicator

1285.16

1208.42

1057.37

173.78

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

19

Parcel A Cost Variation Account

Source: ONS

0.66%

1.26%

0.20%

0.44%

0.00%

0.10%

0.20%

0.30%

0.40%

0.50%

0.60%

0.70%

0.80%

0.90%

1.00%

1.10%

1.20%

1.30%

1.40%

1.50%

JUL AGO SET OUT NOV DEZ JAN FEV MAR ABR MAI JUN

Transmissoras Ciclo 11/12 Transmissoras Ciclo 12/13 CTEEP Ciclo 11/12 CTEEP Ciclo 12/13

1.26%

0.66%

0.44%

0.20%

Transmitters 11/12 Cycle Transmitters 12/13 Cycle CTEEP Cycle 11/12 CTEEP Cycle 12/13

AUG SEP OCT NOV DEC JAN FEV MAR APR MAY JUNJUL

20

Agenda






IFRS X Regulatory

21

Results - ConsolidatedConsolidated

(*) ex Depreciation(**)ex Amortization of goodwill

Gross Operating Revenue 235.2 563.4 (58.2%) 469.3 1,111.6 (57.8%)

Deductions from Operating Revenue (29.9) (81.6) (63.3%) (63.1) (136.1) (53.6%)

Net operating revenue 205.3 481.9 (57.4%) 406.2 975.4 (58.4%)

General and Administrative Expenses* (185.7) (172.8) 7.4% (364.8) (348.5) 4.7%

Other Operating (Expenses)/Income** 2.3 (3.6) 164.2% 16.8 (3.0) 660.6%

Equity 23.7 14.5 63.7% 44.5 26.0 71.1%

EBITDA 45.7 319.9 (85.7%) 102.7 649.9 (84.2%)

% Margem EBITDA 22.3% 66.4% -66.5% 25.3% 66.6% -62.1%

Depreciation (9.3) (8.2) 12.9% (18.6) (16.7) 11.3%

EBIT 36.4 311.7 (88.3%) 84.1 633.2 (86.7%)

Financial Results 11.9 (52.2) 122.8% 50.9 (108.1) 147.1%

Operating Income 48.3 259.5 (81.4%) 135.0 525.1 (74.3%)

IR & CSLL (0.9) (58.4) (98.4%) (16.6) (118.9) (86.0%)

Net Income 47.4 201.2 (76.4%) 118.4 406.3 (70.9%)

Results (R$ million)

∆%2Q13 2Q12 ∆% 1S13 1S12

22

Results - Company

(*) ex Depreciation(**)ex Amortization of goodwill

Gross Operating Revenue 206.3 532.7 (61.3%) 402.2 1,047.1 (61.6%)

Deductions from Operating Revenue (27.4) (78.7) (65.2%) (56.9) (150.5) (62.2%)

Net operating revenue 179.0 454.0 (60.6%) 345.3 896.6 (61.5%)

General and Administrative Expenses* (170.8) (153.3) 11.4% (324.1) (307.0) 5.6%

Other Operating (Expenses)/Income** 2.3 (6.1) (137.8%) 16.8 (5.5) (405.5%)

Equity 29.5 18.9 56.5% 53.6 52.3 0.0%

EBITDA 40.0 313.4 (87.2%) 91.6 636.4 (85.6%)

% Margem EBITDA 22.4% 69.0% -67.6% 26.5% 71.0% -62.6%

Depreciation (9.3) (8.2) 12.9% (18.6) (16.7) 11.3%

EBIT 30.8 305.2 (89.9%) 73.0 619.7 (88.2%)

Financial Results 16.4 (46.5) (135.3%) 60.0 (97.8) (161.4%)

Operating Income 47.2 258.7 (81.8%) 133.0 521.9 (74.5%)

IR & CSLL 0.2 (57.6) (100.4%) (14.6) (115.6) (87.3%)

Net Income 47.4 201.2 (76.4%) 118.4 406.3 (70.9%)

1S12 ∆%Results (R$ million)

2Q13 2Q12 Δ% 1S13

23

Gross Revenue

2Q13 2Q12 Change 1S13 1S12 Change 2Q13 2Q12 Change 1S13 1S12 Change

Construction 30.5 41.1 -25.8% 55.1 79.5 -30.7% 39.3 59.8 -34.2% 85.8 121.1 -29.1%

Operation and Maintenance 149.1 162.7 -8.3% 288.2 319.3 -9.8% 155.2 166.6 -6.8% 298.9 324.1 -7.8%

Financial 21.5 324.3 -93.4% 48.5 638.5 -92.4% 35.7 332.5 -89.3% 74.5 656.5 -88.7%

Others 5.3 4.6 15.3% 10.5 9.9 6.8% 5.0 4.6 9.5% 10.0 9.9 1.8%

Total 206.3 532.7 (61.3%) 402.2 1,047.1 (61.6%) 235.2 563.4 (58.2%) 469.3 1,111.6 (57.8%)

Gross Revenue (R$ '000)

Company Consolidated

24

Costs and Expenses

(*) ex depreciation

2Q13 2Q12 ∆% 1S13 1S12 ∆% 2Q13 2Q12 ∆% 1S13 1S12 ∆%

Personnel (59.5) (57.8) 3.0% (128.6) (116.7) 10.2% (61.2) (59.8) 2.5% (132.2) (119.9) 10.3%

Material (21.4) (21.1) 1.6% (41.4) (46.6) -11.1% (32.3) (43.3) -25.4% (74.0) (81.9) -9.7%

Services (48.6) (57.2) -15.1% (91.6) (102.9) -10.9% (50.4) (53.3) -5.3% (95.5) (105.2) -9.3%

Others (16.8) (12.9) 30.4% (30.5) (30.8) -1.0% (17.2) (12.1) 41.6% (31.2) (31.4) -0.7%

Contingencies (24.6) (4.4) 454.0% (31.9) (10.0) 219.2% (24.6) (4.4) 454.0% (31.9) (10.0) 219.2%

Total (170.8) (153.3) 11.4% (324.1) (307.0) 5.6% (185.7) (172.8) 7.4% (364.8) (348.5) 4.7%

Cost and Expenses* (R$ million)


25

Ebitda and Ebitda Margin

2Q13 2Q12 Δ% 1S13 1S12 ∆% 2Q13 2Q12 ∆% 1S13 1S12 ∆%

Net Income 47.4 201.2 (76.4%) 118.4 406.3 (70.9%) 47.4 201.2 (76.4%) 118.4 406.3 (70.9%)

Income tax and social contribuition

(0.2) 57.6 (100.4%) 14.6 115.6 (87.3%) 0.9 58.4 (98.4%) 16.6 118.9 (86.0%)

Financial Results (16.4) 46.5 (135.3%) (60.0) 97.8 (161.4%) (11.9) 52.2 (122.8%) (50.9) 108.1 (147.1%)

Leases and rentals/Amortization

9.3 8.2 12.9% 18.6 16.7 11.3% 9.3 8.2 12.9% 18.6 16.7 11.3%

EBITDA 40.0 313.4 (87.2%) 91.6 636.4 (85.6%) 45.7 319.9 (85.7%) 102.7 649.9 (84.2%)

EBITDA Margin 22.4% 69.0% (46.7) 26.5% 71.0% (44.4) 22.3% 66.4% (44.1) 25.3% 66.6% (41.4)

EBITDA - ICVM 527 (R$ million)

ConsolidatedCompany

26

Financial Result

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

2Q13 2Q12 ∆% 1S13 1S12 ∆% 2Q13 2Q12 ∆% 1S13 1S12 ∆%

Interest Receivable 38.0 3.1 1140.8% 83.8 8.2 923.9% 38.4 3.3 1066.9% 84.5 8.9 851.9%

Monetary (net) 16.7 (1.4) 1310.3% 47.3 (3.1) 1644.8% 16.7 (1.4) 1310.3% 47.3 (3.1) 1644.8%

Financial Expenses* (38.3) (48.1) 57.1% (71.1) (102.9) (20.4%) (43.2) (54.1) 53.1% (80.8) (113.9) (23.0%)

Total 16.4 (46.5) 135.3% 60.0 (97.8) 161.4% 11.9 (52.2) 122.8% 50.9 (108.1) 147.1%

Financial Result (R$ million)


27

201.2

47.4

406.3

118.4

2Q12 2Q13 1S12 1S13

Net Income

(R$ million)

28

Debt

29.4%

60.2%

10.1%

0.2%

Distribuition ofdebt contracting

BNDES Comercial Papers Debêntures Banks Others

29.4%

56.5%

3.7% 10.3%

Interest Rate

TJLP CDI IPCA Others

FUNDING CHARGES MATURITY 2Q13 2012

BNDES

TJLP + 2,3% year 15/06/15 187,884 234,681

TJLP + 1,8% year 15/06/15 112,627 140,798

Comercial Papers

6th Series - CTEEP 104,9% CDI yera 05/01/13 0 433,873

Debêntures

1st Issuance - CTEEP CDI + 1,3% year 15/12/14 326,282 3 25,959

2nd Issuance - CTEEP IPCA + 8,1% year 15/12/17 70,747 7 0,915

Single Series - CTEEP 105,5% do CDI year 02/07/14 752, 858 726,476

Banks

USD + 4% year 26/04/13 0 132,309

USD + 2,1% year 21/10/13 192,809 177,318

Eletrobras 8% year 15/11/21 315 340

Leasing - - 4,207 5,048

TOTAL CTEEP: 1,647,729 2,247,717

BNDES

IEMG TJLP + 2,4% year 15/04/23 49,953 52,513

TJLP + 2,6% year 15/05/26 45,912 47,758

5,5% year 15/01/21 76,274 80,152

TJLP + 1,9% year 15/05/26 47,933 49,801

TJLP + 1,5% year 15/05/26 41,412 43,038

TOTAL SUBSIDIARIES 261,484 273,262

Total Consolidated (R$ mil) 1,909,213 2,520,979

SERRA DO JAPI

CTEEP

CTEEP

PINHEIROS

29

Breakdown of Net Debt

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

Debt 1,909.2 2,521.0

Short-term Debt 549.6 28.8% 1103.2 43.8%

Long-term Debt 1,359.6 71.2% 1,417.8 56.2%

Cash* 1233.6 309.6

Net Debt 675.6 2,211.4

EBITDA 12 months 823.2 1,370.5

Net Debt/Ebitda (Last 12 months) 0.8 1.6

Debt(BRLm)

Consolidated

20122Q13

30

Debt Repayment

(R$ millions)

Future Cash (NI) 2013 2014 2015 Total

Accounts Receivable (NI) - (projection) 286.0 572.1 333.7 1,191.8

Interest Income on the Accounts Receivable (projection)

55.5 69.3 12.0 136.8

Total 341.6 641.4 345.7 1,328.7

Position of the Fund on 06/30/13: R$ 1.221.8

454.7

1,097.6

124.148.1 48.1

136.7

2013 2014 2015 2016 2017 After 2017

CTEEP Subsidiaries

31

Debt Joint Ventures

IE MADEIRA ITAÚ BBA IPCA + 5,5% a.a. 3/18/2025 183.1

IE MADEIRA BNDES TJLP + 2,42% a.a. 2/15/2030 736.9

IE MADEIRA BNDES 2,5% a.a 10/15/2022 119.6

IE MADEIRA BASA 8,50% a.a.* 10/10/2032 140.5

Total IE Madeira (51% CTEEP) 1,180.1

IENNE BB CDI + 1,35% a.a 7/18/2013 4.4

IENNE BNB 8,50% a.a.* 5/19/2030 53.8

Total IENNE (25% CTEEP) 58.2

IEGARANHUNS HSBC 106,50% CDI 4/30/2014 96.6

Total IE GARANHUNS (51% CTEEP) 96.6

IE SUL BNDES 5,50% a.a. 1/15/2021 4.3

IE SUL BNDES TJLP + 2,58% a.a. 5/15/2025 4.4

8.7

1,343.5

Value (R$ MM)

Total IE SUL (50% CTEEP)

TOTAL (R$ milhões)

Subsidiarie Bank Charges Maturity

32

Agenda






IFRS X Regulatory

33

Capital Market

� Total Trade: 126,096

� Daily Average/Day: 985

� Market value 06/30/13

R$6,2 billion 70.00

100.00

Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13

TRPL3 TRPL4 IBOVESPA IEE

-11.76%

-22.14%

1.55%

12.25%

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13

Trade Financial - 06/30/2013(R$ million )

Total R$ 936 Million Daily Average / Day R$ 7.3 million

34

� On July 18, 2013, CTEEP engaged Credit Suisse to be the Market Maker for TRPL4

to enhance the liquidity of its preferred shares, thereby increasing the number of

transactions and trading volume.

� In addition to offering greater secondary market liquidity, this initiative (which complies

with the regulations established in CVM Instruction 384/2003) seeks to ensure that

TRPL4 remains a component of BM&FBOVESPA’s IBrX-100 and Ibovespa stock

indices (sharply impacted since the publication of MP-579/2012)

Market Maker

� First results: � Principal Characteristics

Maximum spread

1.50%

Minimum lot available

2.000 shares

35

Agenda






IFRS X Regulatory

36

Tariff Readjustment

� Ratifying Resolution 1.595 of June 27, 2013

� Cycle: July 1, 2013 to June 30, 2014.

� Indices used for readjustment:IPCA/ IBGE

Jun/12 to May/13 = 6.50% (NI authorized after June/2012)Out/12 to May/13 = 4.93% (O&M in the agreement addendum)Dec/12 to May/13 = 3.69% (AI – Adjustment Installment) after

December/2012)

IGP-M / FGVJun/12 to May/13 = 6.22% (NI prior to June/2012) Jun/12 to Nov/12 = 4.46% (AI prior to December/2012)

Analysis of RAP Cycle 2013-2014

37

RAP (whithout PIS/COFINS)(R$ ‘000)

Subsidiaries % CTEEP RAP PA TOTAL RAP PA TOTAL

CTEEP* - 540,760.0 (35,142.4) 505,617.6 590,949.0 (39,828.0) 551,121.0 9.0%

IEMG 100% 14,161.0 (594.0) 13,567.0 15,082.0 (446.0) 14,636.0 7.9%

IE Pinheiros 100% 33,491.0 1,697.0 35,188.0 36,305.0 (999.0) 35,306.0 0.3%

Serra do Japi 100% 26,457.0 (1,355.0) 25,102.0 28,178.0 1,162.0 29,340.0 16.9%

IENNE 25% 38,253.0 3,640.0 41,893.0 34,852.5 (1,198.3) 33,654.2 -19.7%

IESUL 50% 13,075.0 (645.0) 12,430.0 13,925.1 (2,700.4) 11,224.7 -9.7%

IE Madeira 51% 407,482.0 0.0 407,482.0 433,985.1 0.0 433,985.1 6.5%

IE Garanhuns 51% 71,848.0 0.0 71,848.0 76,521.0 0.0 76,521.0 6.5%

Evrecy 100% 10,735.0 (891.0) 9,844.0 9,957.0 (1,136.0) 8,821.0 -10.4%

1,156,262.0 (33,290.4) 1,122,971.6 1,239,754.7 (45,145.8) 1,194,608.9 6.4%

REH. nº 1.313 - Cycle 2012/2013 REH. nº 1.595 - Cycl e 2013/2014 Change% RAP + PA

Total

(*) CTEEP’s 2012/2013 cycle corresponds to REH 1.395 of December 11, 2012

38

Agenda






IFRS X Regulatory

39

IFRS X Regulatory - Company

(R$ million) IFRSRegulatory

(not audited)1S13 1S13

Net operating revenue 402.2 340.4 61.8

Receita de uso da rede elétrica 329.9 (329.9)

Revenue from Construction Services 55.1 0 55.1Revenue from Operational and Maintenance Services

288.2 0 288.2

Financial Revenue 48.5 0 48.5

Other Revenue 10.5 10.5 0.0

Deductions from Operating Revenue (56.9) (51.2) (5.7)

Net Operating Revenue 345.3 289.2 56.1Costs and Operating Expenses (324.1) (244.0) (80.1)

Personnel (122.9) (122.9) 0.0

MSO (90.1) (89.2) (0.9)

Contingencies (31.9) (31.9) 0.0

Construction costs (50.0) 0 (50.0)

Improvements (29.2) 0 (29.2)

Depreciation/Amortization (3.6) (6.6) 2.9

Financial Result 60.0 60.0 0.0

Equity 53.6 6.9 46.6

Amortization of goodwill (14.9) (14.9) 0.0

Other Operating (expenses/income) 16.8 15.8 1.0

Operating Income 133.1 106.4 26.6

IR & CSLL (14.6) (21.5) 6.8

Net Income 118.4 85.0 33.4

ResultsAdjustments/

Reclassification

40

IFRS X Regulatory - Consolidated

(R$ million) IFRSRegulatory

(not audited)1S13 1S13

Net operating revenue 469.2 381.1 88.1

Receita de uso da rede elétrica 371.1 (371.1)

Revenue from Construction Services 85.8 0 85.8Revenue from Operational and Maintenance Services

298.9 0 298.9

Financial Revenue 74.5 0 74.5

Other Revenue 10.0 10.0 (0.0)

Deductions from Operating Revenue (63.1) (55.1) (8.0)

Net Operating Revenue 406.1 326.0 80.1Costs and Operating Expenses (364.6) (252.5) (112.1)

Personnel (126.6) (126.6) 0.0

MSO (98.0) (94.0) (4.0)

Contingencies (31.9) (31.9) 0.0

Construction costs (78.1) 0 (78.1)

Improvements (30.0) 0 (30.0)

Depreciation/Amortization (3.6) (17.2) 13.6

Financial Result 50.9 50.9 (0.0)

Equity 44.5 (0.3) 44.8

Amortization of goodwill (14.9) (14.9) 0.0

Other Operating (expenses/income) 16.7 15.8 0.9

Operating Income 135.0 107.8 27.2

IR & CSLL (16.6) (22.9) 6.3

Net Income 118.4 85.0 33.5

ResultsAdjustments/

Reclassification

41

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.

42

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