CTEEP - 3Q16 Results 1

Transcription

1 CTEEP - 3Q16 Results 1

2 RECOGNITION OF RBSE BASED ON THE TECHNICAL NOTE 336/2016 ANEEL São Paulo, October 28, 2016 Companhia de Transmissão de Energia Elétrica Paulista ( CTEEP or Company ) (BM&FBovespa: TRPL3 and TRPL4), announces its results for 3Q16. The following financial and operating information for the periods shown below is in accordance with generally accepted accounting practices in Brazil (IFRS), except where otherwise stated. HIGHLIGHTS RBSE: ANEEL Technical Note 336/ CTEEP recognizes R$ 8.6 billion with respect to the remuneration of the RBSE concession assets with impacts of R$ 7.1 billion on financial assets, R$ 6.3 billion on operating revenue, R$ 2.1 billion on deferred Income Tax and CSLL and R$ 4.2 billion on net income. Readjustment in Allowed Annual Revenue (RAP): The annual RAP /2017 cycle was readjusted in line with Ratifying Resolution Consolidated RAP increased from R$ million to R$ 1,035.3 million in July 2016, an increase of 7.5%, or R$ 71.9 million. Infrastructure Debentures: On July , CTEEP issued R$ million simple non-convertible debentures pursuant to ICVM 476/2009, maturing July 15, Rating Review: On August 23, 2016, Fitch Ratings increased CTEEP s Long Term National Scale Rating from AA+ (bra) to AAA (bra), with a Stable outlook. Key Indicators Consolidated (R$ million) 3Q16 RBSE 3Q16 3Q15 3Q16 3Q15 Net Revenues 6, EBITDA 6, EBITDA Margin 100.3% 105.4% 77.7% 52.4% 47.9% Net Income 4, Net Margin 67.4% 87.8% 60.4% 27.9% 30.5% Raiting - Fitch AAA(bra) IFRS REGULATORY APIMIEC and Conference Call October 31, :00 a.m. (Brasília) Telephones: Brazil: (+55 11) or (+55 11) USA: (+1 888) Others: (+1 786) Webcast: CTEEP - 3Q16 Results 2

3 CONTENTS CTEEP... 4 Operating Performance... 5 Readjustment in Annual Allowed Revenue... 7 RBSE... 8 Economic-Financial Performance - IFRS Economic-Financial Performance Regulatory RBSE... Erro! Indicador não definido. Investments Subsequent Event Capital Markets Attachments Attachment I IFRS Balance Sheet Attachment II IFRS Income Statement (R$ thousand) Attachment III IFRS Cash Flow (R$ thousand) Attachment IV - Consolidate Breakdown of Debt (R$ thousand) Attachment V - Breakdown of Debt of Jointly Controlled Subisidiaries - (R$ thousand) Attachment VI Subsidiaries Attachment VIII Regulatory Balance Sheet Attachment IX Regulatory Income Statement Attachment X Regulatory Income Statement for Jointly Controlled Subsidiaries IEMadeira and IEGaranhuns (51% CTEEP) CTEEP - 3Q16 Results 3

4 CTEEP CTEEP is one of the leading energy transmission concessionaires in the private sector in Brazil, currently CTEEP is responsible for the annual transmission of about 26% 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. With head offices in the city of São Paulo, the Company has a footprint through proprietary assets and through subsidiaries and jointly controlled subsidiaries in 16 Brazilian states: Rio Grande do Sul, Santa Catarina, Paraná, São Paulo, Minas Gerais, Espírito Santo, Rondônia, Mato Grosso, Mato Grosso do Sul, Goiás, Tocantins, Maranhão, Piauí, Paraíba, Pernambuco and Alagoas. The organization also has a stake in other companies constituted for providing a public utility service for the transmission of electric energy: IEMG (Interligação Elétrica de Minas Gerais), IEPinheiros (Interligação Elétrica Pinheiros), IESerra do Japi (Interligação Elétrica Serra do Japi), IEGaranhuns (Interligação Elétrica Garanhuns), IEMADEIRA (Interligação Elétrica do Madeira), IESUL (Interligação Elétrica Sul), and IENNE (Interligação Elétrica Norte e Nordeste) and Evrecy. CTEEP and its subsidiaries have a robust infrastructure with an installed transformation capacity of 55,837 MVA with 18,399 km of transmission lines, 25,776 km of circuits, 2,347 km of optic fiber cables and 122 high voltage substations up to 550 kv. This network is integrated with other transmission companies, permitting access to free consumers as well as connecting with generator companies and distributors, which carry electricity to the final consumer. The following chart shows CTEEP s participation, in GWh, in the National Interconnection System (SIN) for the period from 2012 to 3T16. GWh M16 CTEEP Outras Transmissoras CTEEP - 3Q16 Results 4

5 Shareholding Breakdown Controlled by ISA, an important multilatina group engaging in the supply of linear infrastructure systems, CTEEP also has among its investors, Eletrobrás, the largest electric energy group in Brazil, and more than sixty thousand individual and corporate shareholders from different countries. Those shareholders with more than 5% of the common or preferred shares are highlighted below: Common Shares TRPL3 (39% of total Capital Stock) Preferred Shares TRPL4 (61% of total Capital Stock) Total Capital Stock 89.5% 51.9% 5.2% 39.7% 35.4% 3.1% ISA Capital do Brasil Eletrobras Vinci Ltda Outros 9.8% 37.0% 24.5% 0.7% 3.2% Corporate Structure The following chart shows the corporate structure of CTEEP, including its subsidiaries and jointly owned subsidiaries: * Fully Consolidated Consolidated via Equity Income (*) 50% plus 1 (one) share. CTEEP - 3Q16 Results 5

6 Operating Performance Operating Excellence Ministry of Mines and Energy (MME) data shows that the Brazilian electricity system is made up of a few isolated grid systems and the National Interconnected System (SIN), the national grid, serving more than 98% of the Brazilian population. The coordination and control of SIN s electric energy generation and transmission installations are the responsibility of the National Electric System Operator (ONS) under the supervision and regulation of ANEEL (National Electric Energy Agency). The sector s consolidated regulatory framework is set out under Law /2004, governing the rules for the functioning and activities of electricity generation, transmission, distribution and commercialization. Compliance with these rules is subject to ANEEL inspection. The Company s objective is to guarantee efficiency and quality in rendering a profitable transmission service. In this context, CTEEP also operates an Asset Optimization Plan (POA) and a Transmission Improvements Program (PMT), both focused on the continual upgrading of equipment and systems. CTEEP is remunerated according to the uptime of its assets through the Allowed Annual Revenue (RAP). Consequently, any downtime in its assets can result in reduced remuneration for the Company via a discount from revenue due from uptime operations. The operating indicators highlighted below summarize CTEEP s operating performance for the period from 2012 to June Asset Uptime 99,75% 99,50% 99,55% T T T16 Linhas de Transmissão Transformadores Reatores Meta Equivalent Duration of Interruption (DREQ) Time equivalent of interruption of maximum demand expressed in minutes. DREQ (min) 9,00 8,00 7,00 6,00 5,00 4,00 3,00 2,00 1,00 0,00 1,560 Jan Fev Mar Abr Mai Jun Jul Ago Set Out Nov Dez INFERIOR META SUPERIOR 8,000 6,000 4,000 2,200 1,888 1,205 Equivalent Frequency of Interruption (FREQ) - Number of times that maximum demand is interrupted in the period. FREQ (vezes) 0,40 0,35 0,30 0,25 0,20 0,15 0,10 0,05 0,00 0,0640 Jan Fev Mar Abr Mai Jun Jul Ago Set Out Nov Dez INFERIOR META SUPERIOR 0,350 0,300 0,250 0,118 0,095 0,079 As at September 30, 2016, CTEEP s DREQ ratio for the previous 12 months was The FREQ ratio for the same period was times translating into 1 disconnection of 2 minutes and 4 seconds every 12 years. CTEEP - 3Q16 Results 6

7 Readjustment in Annual Allowed Revenue Ratifying Resolution (REH) was published on June 28, 2016, establishing RAPs for CTEEP and its Subsidiaries, for the uptime operations of the transmission installations incorporated in the Basic Network and for the Other Transmission Installations for the 12-month cycle from July 1, 2016 to June 30, REH provides for a total RAP together with the amounts corresponding to the adjustment parcel (PA) and the Expansion of CTEEP (agreement 059/2001), net of PIS and COFINS, of R$ million as of July 1, 2016 against R$ million previously set on July 01, This is equivalent to an increase of 6.7% or R$ 56.8 million. The variation reflects: i. monetary restatement 1 for the 2015/2016 cycle (IPCA) of R$ 67.5 million; ii. entry into operations of new Upgrading projects and New Connections during the 2015/2016 cycle and recognition of Improvements made in 2014 and 2015, further enhancing RAP by R$ 42.4 million, about 56% of these projects energized in the Basic Network - RB and 44% in Other Transmission Installations DIT; iii. increase of R$ 1.3 million for expansion requirements and relating to investments already authorized by ANEEL and forecasted to go into operation during the course of the next cycles; and iv. negative variation of the adjustment parcel in relation to the preceding cycle of R$ 54.2 million (R$ 33.2 million representing a negative PA for the 2016/2017 cycle against a positive PA of R$ 21.0 million for the 2015/2016 cycle) due principally to the regularization of the CAIMI (Annual Cost of Facilities and Assets) payment for the 2015/2016 cycle, payment of CAIMI of R$ 71.2 million from 2013 until June 2015, and the reimbursement for the anticipation of RAP for the 2015/2016 cycle in the amount of R$ 54.8 million. Total RAP and the values corresponding to PA and Expansion at the Subsidiaries (IEMG, IEPinheiros, Serra do Japi and Evrecy), which stood at R$ million on July 01, 2015, increased to R$ million on July 01, 2016, an increase of R$ 15.3 million (+12.08%), principally a reflection of monetary restatement 1 for the 2015/2016 cycle. Total RAP and the values corresponding to PA and Expansion of the Jointly Held Subsidiaries (IEMadeira, IEGaranhus, IENNE and IESul), which stood at R$ million on July 01, 2015, increased to R$ million on July 01, 2016, an increase of R$ 40.6 million. This variation reflects principally monetary restatement 1 for the cycle of R$ 58.2 million. The IEMadeira subsidiary recorded a negative PA for the 2016/2017 cycle of R$ 79.9 million due to: (i) reimbursement of amounts received in anticipation of the 2015/2016 cycle amounting to R$ 44.0 million, R$ 25.0 million of which relates to the 013/2009 agreement and R$ 19 million to the 015/2009 agreement; and (ii) the 30 day delay between May and June 2014 in operationalizing the transmission installations. IEMadeira have lodged an administrative appeal and since the annual RAP adjustment, a legal ruling has determined that ANEEL shall not apply the PA until a final decision has been handed down with respect to the action. Total RAP for CTEEP and its Subsidiaries and Jointly Held Subsidiaries, net of PIS and COFINS charges, to be allocated in 12 equal parts in the period from July 01, 2016 to June 30, 2017, breaks down as follows: 1 The accumulated IPCA and IGPM inflation indices for the period were 9.32% and 11.08%, respectively. CTEEP - 3Q16 Results 7

8 CONTROLADORA Dealership Contract Index RAP Cycle RAP Cycle RAP RAP 2015/2016 Inflation Improvements 2016/2017 PA Expansion Future cycles* Future cycles REH REH PA Expansion CTEEP 059/2001 IPCA (33.2) CONTROLADAS (100% Cteep) Dealership Contract Index RAP Cycle RAP Cycle RAP RAP 2015/2016 Inflation Improvements 2016/2017 PA Expansion Future cycles* Future cycles REH REH PA Expansão IEMG 004/2007 IPCA (1.2) (1.7) 0.0 EVRECY 020/2008 IGP-M (0.5) / (0.3) (0.8) 0.0 IE PINHEIROS 015/ (2.6) (3.7) 1.8 IPCA 018/ (0.3) (0.6) / (0.2) (0.5) 0.0 IEJAPI 026/2009 IPCA (0.6) (0.1) /2001 IGP-M (1.6) (1.9) 0.0 Total (7.4) (8.6) 3.2 COLIGADAS Dealership Contract Index RAP Cycle RAP Cycle RAP RAP 2015/2016 Inflation Improvements 2016/2017 PA Expansion Future cycles* Future cycles REH REH PA Expansão IENNE (25% Cteep) 001/2008 IPCA (3.1) (3.8) 0.0 IESUL (50% Cteep) 013/ (0.4) (0.9) 0.0 IPCA 016/ (1.1) (0.7) 1.5 IEMADEIRA (51% 013/ (46.1) (35.1) 0.0 IPCA Cteep) 015/ (33.8) (29.4) 0.0 IEGARANHUNS (51% Cteep) 022/2011 IPCA (3.0) Total (87.6) (69.9) 1.5 CTEEP - 3Q16 Results 8

9 RBSE On October 11, 2016, ANEEL s Management Board approved Public Hearing 68/2016 to be held from October 14 to November 14, 2016 for obtaining additional suggestions and data for improving the calculation of the cost of capital to be incorporated in the RAP for those transmission concessionaires covered by Law /2013 and pursuant to the Ministry of Mines and Energy s Ordinance 120/2016. The basis for holding the Public Hearing is Technical Note 336/2016, published on October 13, 2016, proposing procedures and criteria to be used for the calculation. Ordinance 120 determined that amounts ratified by ANEEL through Dispatch 4036/2015 with respect to reimbursement for nondepreciated assets as of May 31, 2000 (RBSE), should be incorporated in the Regulatory Remuneration Base (BRR) of the electricity transmission concessionaires and that the cost of capital should be added to the RAP. The Ordinance also determined that the cost of capital is to be made up of remuneration and depreciation installments, plus the relative tax due, and recognized as from the tariff review process for 2017, readjustment and review being subject to the rules in the agreements. The Ordinance also mentions that the cost of capital not incorporated as from the extension of the concessions until the tariff review process in 2017, should be restated at the real cost of proprietary capital (Ke) for the transmission segment. Following the tariff review process, remuneration will be at the Weighted Average Cost of Capital (WACC) for an 8-year period. The publication of Technical Note 336/2016 has permitted the Company to remeasure the right with respect to the Existing Service - SE installations as at September 30, 2016, in the light of the conditions established in Ordinance 120/16 and the amounts regulated by ANEEL Technical Note 336/2016 pursuant to CPC 38 Financial Instruments Recognition and Measurement and CPC 23 Accounting Policies, Changes in Accounting Estimates. The NT 336/2016, considers the updated values until July For the RBSE accounting purposes on September 30, 2016, the Company considered, from the NT that established methodology, corrected values to the period ended in 3T16. On the basis of the amounts and terms published in ANEEL Technical Note 336/2016, CTEEP has prepared a best estimate considering the following assumptions: Assumptions (R$ mil) Technical Note nº 336/16 base Jul/2017 Estimation CTEEP base Set/2016 Net asset base on December 31st, ,896,328 3,896,328 Incorporation of the Regulatory Asset Base (RAB) Julho de 2017 Julho de 2017 Deadline for payment of the installment January revenue from 2013 to June anos 08 anos Remaining portion of the payment deadline 6,3 anos 6,3 anos CAAE + cost of capital from January 2013 to June ,711,454 4,457,994 CAAE * remaining depreciation 3,114,951 3,348,965 RAP January 2013 to June Financial Component 943, ,503 RAP concerning remainder - Economic Component 811, ,887 PIS and COFINS increased to 9.25%, according to current legislation % *CAAE - Custo Anual dos Ativos Elétricos CTEEP - 3Q16 Results 9

10 The restated RBSE amount to September 30, 2016 was R$ 8,602.7 million, pursuant to the following table with an impact of R$ 7,111.7 million on the financial asset, R$ 6,316.0 million on net operating revenue and R$ 2,147.5 million on provisions for deferred income tax and social contribution and R$ 4,168.5 million on net income. Accounts Receivable (concession assets) Company Consolidated 3Q Q O&M Receivables from O&M services (a) Financial Asset 1, , , ,197.3 Receivables from Construction services (b) 1, , , ,111.2 Accounts Receivable by reversal (c ) Asset - Law , , , ,491.0 Accounts Receivable (SE) (d) 8, , , ,491.0 Total 10, , , ,847.0 CTEEP - 3Q16 Results 10

11 Economic-Financial Performance - IFRS Gross Operating Revenue In 3Q16, Consolidated Gross Operating Revenue was R$ 7,581.5 million largely due to the restatement of the financial assets for RBSE accounts receivable, amounting to R$ 7,111.7 million as described above. Gross Revenue (R$ million) Company Consolidated 3Q16 3Q15 % 9M16 9M15 % 3Q16 3Q15 % 9M16 9M15 % Infrastructure (42.5%) (45.0%) (48.2%) (49.2%) Operation and Maintenance Compensation Asset Concession (20.9%) % (21.9%) % % % % % Others % % % % Sub-Total (11.6%) (2.4%) (6.8%) 1, , % Remuneration RBSE Concession Assets 7, , , , Total 7, % 8, % 7, % 8, , % Revenue from Infrastructure Services - Revenue from the implementation of infrastructure for electricity transmission services under concession services agreements is recognized as and when expenditures are incurred. Consolidated Infrastructure Revenue amounted to R$ 51.3 million in 3Q16, a decrease of 48.2% from the R$ 98.9 million reported in 3Q15, principally due to the conclusion of upgrading projects, the implementation of new infrastructure installations at the substations and the repowering of the Controlling Company s transmission lines. Infrastructure revenue at the subsidiaries declined due to the implementation phase of the work on the installation of a transformer bank, capacitators and reactors at IEPinheiros and Serra do Japi. Revenues from Operations and Maintenance Services In 3Q16, consolidated Revenue from Operations and Maintenance amounted to R$ million, a decrease of 21.9% compared to the R$ million in 2Q15. This decline is due to: (i) the positive variation of R$19.9 million relative to the IGPM/IPCA for Annual Allowed Revenue (RAP) from 2015/2016 to 2016/2017; (ii) a decline in the entry into operations of new projects amounting to R$ 11.4 million; (iii) a negative variation of R$ 3.5 million in anticipations; and (iv) a negative variation in the adjustment parcel amounting to R$ 56.0 million. Revenue from the Remuneration of Concession Assets - Interest revenue is recognized at the effective rate of interest on the balance of investments, the effective rate being that which equals the rate for future cash receipts, calculated over the estimated life of the financial asset in relation to its initial book value. Excluding the restatement of the amount for RBSE accounts receivable, which resulted in an adjustment in assets of R$ 7,111.7 million, consolidated Revenue from the Remuneration of Concession Assets amounted to R$ million in 3Q16, an increase of 38.0% compared to the same period in 2015 when this same item amounted to R$ million, reflecting principally: (i) the adjustment in the RAP 2016/2017 cycle for R$ million in 3Q16 compared with R$ million in 3Q15; and (ii) the restatement of the financial asset calculated according to the effective rate of interest for each project. Other Revenues - Revenues relate to leasing income from telecoms companies and from maintenance and technical analysis services contracted by third parties. In 3Q16, these revenues totaled R$ 6.0 million, an increase of 5.7% over the R$ 5.7 million generated in 3Q15, principally due to a rise of 7.5% in leasing income from telecommunications companies. CTEEP - 3Q16 Results 11

12 Deductions from Operating Revenue Deductions from consolidated operating revenue were R$ million in 3Q16 against R$ 47.5 million in 3Q15, reflecting the impact of the PIS and CONFINS provision of R$ million on the remuneration of the RBSE concession asset. Net Operating Revenue The Company reported Net Operating Revenue in 3Q16 of R$ 6,734.9 million due largely to the recognition of remuneration from the RBSE concession asset of R$ 6,316.0 million. R$ million 7, , , , Q15 3Q16 3Q16 including RBSE 9M15 9M16 9M16 including RBSE RBSE Company Subsidiaries CTEEP - 3Q16 Results 12

13 O&M and Infrastructure Costs and Expenses Total O&M costs and expenses in 3Q16 were R$ million, an increase of 10.4% compared with 3Q15 when this item was R$ million. The variation in costs and expenses reflects, principally :(i) growth of 4.0% in payroll costs and expenses due to the collective wage bargaining agreement of 9.32% awarded in August 2016, retroactive to June; and (ii) the increase of 32.9% in third party services, due in large part to the maintenance and conservation of transmission lines and substations, notably the substitution of spacers, erosion containment and anti-corrosion treatment. There was also an increase in expenses with outside management, legal and IT consultancies. The following shows a breakdown in O&M costs and expenses for the period: Costs and expenses O&M (R$ millions) Company Consolidated 3Q16 3Q15 % 9M16 9M15 % 3Q16 3Q15 % 9M16 9M15 % Perssonel (71.0) (67.6) 5.0% (197.1) (184.0) 7.1% (73.7) (70.9) 4.0% (204.7) (192.9) 6.1% Services (31.2) (23.6) 31.9% (79.4) (63.0) 26.1% (33.7) (25.4) 32.9% (84.3) (68.4) 23.2% Material (2.6) (2.8) (8.8%) (5.4) (5.9) (8.9%) (2.2) (2.9) (24.8%) (5.3) (6.8) (22.6%) Depreciation (2.1) (1.9) 10.4% (6.1) (5.8) 5.3% (2.3) (2.1) 11.1% (6.7) (6.4) 4.8% Contingencies (1.2) (0.2) 669.9% (8.8) (35.6) (75.3%) (1.1) (0.2) 546.7% (8.6) (35.5) (75.9%) Others (14.3) (12.1) 18.4% (44.2) (36.2) 22.1% (13.9) (13.5) 2.8% (44.4) (38.8) 14.6% Total (122.4) (108.3) 13.1% (341.0) (330.4) 3.2% (127.0) (115.0) 10.4% (353.9) (348.7) 1.5% Consolidated infrastructure costs amounted to R$ 46.7 million in 3Q16, a year-on-year reduction of 47.8%. This variation is in line with the fall in infrastructure revenue following the conclusion of upgrading projects. Costs and expenses infrastructure (R$ millions) Company Consolidated 3Q16 3Q15 % 9M16 9M15 % 3Q16 3Q15 % 9M16 9M15 % Total (45.0) (78.3) (42.5%) (94.1) (171.3) (45.0%) (46.7) (89.6) (47.8%) (101.1) (199.0) (49.1%) CTEEP - 3Q16 Results 13

14 Equity Income The equity income account for 3Q16 reported revenue of R$ million, an increase of 88.4% in relation to revenue of R$ million in 3Q15. The positive variation stems largely from the results from the IEMadeira subsidiary due to the increase in net revenue amounting to R$ million, principally a reflection of the adjustment for the 2016/2017 RAP cycle, with adjustments of R$ million in July 2015 and R$ million in July Growth in results from the IEGaranhuns subsidiary represents an increase in net revenue of R$ 43.7 million principally due to the increase in remuneration of the concession assets following the adjustment for the 2016/2017 RAP cycle together with O&M revenue with the startup of commercial operations at the end of (R$ million) -1, , Q15 3Q16 9M15 9M16 IEMadeira IEGaranhuns IENNE and IESUL CTEEP - 3Q16 Results 14

15 Financial Result The consolidated financial result reported an expense of R$ 25.4 million in 3Q16, a decline of 30% against an expenses of R$ 19.5 million recorded for the same period in The variation reflects the termination of revenues from monetary restatement and active interest with respect to the restatement at the IPCA % of accounts receivable by reversal under Law Financial Result (R$'million) Company Consolidated 3Q16 3Q15 % 9M16 9M15 % 3Q16 3Q15 % 9M16 9M15 % Interest Receivable (34.4%) (40.4%) (19.4%) (25.6%) Monetary (net) (5.4) (8.3) (34.5%) (21.6) 15.6 (238.6%) (5.5) (8.3) (33.9%) (21.4) 15.5 (238.1%) Interest and expenses on loans (32.6) (30.9) 5.4% (94.2) (91.9) 2.4% (36.8) (35.2) 2.5% (107.0) (105.3) 1.8% Others (0.7) 2.1 (133.3%) (0.7) 2.0 (138.1%) (0.8) 2.1 (138.7%) (0.9) 1.9 (147.3%) Total (28.0) (20.8) (34.5%) (84.2) (20.2) 316.6% (25.4) (19.5) 30.3% (79.4) (20.6) 285.1% CTEEP - 3Q16 Results 15

16 Income Tax and Social Contribution The Company makes a monthly provision for income tax and social contribution payments against net income on an accrual basis. The Controlling Company is taxed according to the real profit regime while all the subsidiaries are taxed according to their presumed profit. With the enactment of Law /14 repealing the Transitional Tax Regime RTT, the Company adjusted the base for calculation of corporate Income Tax and Social Contribution charged against Net Income. The results of the operation for implementing electricity transmission infrastructure and compensation of the concession asset (ICPC 01) are recognized on an accrual basis and taxed on a cash basis (effective receipt) in accordance with the tax legislation. Building in recognition of remuneration of the RBSE asset concession, consolidated income tax and social contribution shows an expense of R$ 2,192.8 billion for 3Q16, due to the constitution of a deferred IT/CSLL provision for R$ 2,147.4 billion. The effective IT/CSLL rate was 32.2% in 3Q16 compared with 15.2% in 3Q15. Excluding the RBSE effect, the Company would have reported a consolidated income tax and social contribution expense of R$ 45.3 million in 3Q16, 22.4% less than the same item of R$ 49.4 million in 3Q15. Net Income Net Income in 3Q16 was R$ 4,536.3 million compared to R$ million in 3Q15 due to the R$ 4,168.5 million impact from the recognition of the remuneration of RBSE concession assets. If this effect is excluded, net income would have been R$ million in 3Q16, an increase of 33.1%. 4, , % % Q15 3Q16 3Q16 RBSE 9M15 9M16 9M16 RBSE CTEEP - 3Q16 Results 16

17 EBITDA and EBITDA Margin Pursuant to ICVM 527/12, consolidated EBITDA was R$ 6,757.5 million. Excluding the effect of recognizing the remuneration on the RBSE concession asset, EBITDA would have been R$ million in 3Q16, an increase of R$ 86.1 million compared to EBTIDA of R$ million reported in 3Q15. EBITDA (R$ million) Company Consolidated 3Q16 3Q15 9M16 9M15 3Q16 3Q15 9M16 9M15 Net Income 4, , , , Income tax and social contribuition 2, , , , Financial Results Depreciation and Amortization EBITDA ICVM 527/12 6, , , , EBITDA Margin 101.9% 96.9% 99.3% 68.5% 100.3% 77.7% 97.1% 58.9% Effects recognition RBSE 6, , , , EBITDA ex recognition RBSE CTEEP - 3Q16 Results 17

18 Economic-Financial Performance Regulatory 2 Recognition of the amounts relating to the RBSE in the regulatory balance sheet are conditional on notice from the regulator ANEEL through the annual Termination Order establishing the necessary accounting rules. The Company understands that the booking of the RBSE will have an effect on the regulatory result as from the new RAP in July 2017, pursuant to TN 336/2016. Gross Operating Revenue Regulatory In 3Q16, Consolidated Gross Operating Revenue reached R$ million, a 9.2% in relation to 3Q15, when this item amounted to R$ million. This reduction reflects, principally the booking of the negative variation in the Controlling Company s Adjustment Parcel (PA) relative to the preceding cycle of R$ 54.2 million (a negative PA of R$ 33.2 million for the 2016/2017 cycle against a positive PA of R$ 21.0 million for the 2015/2016 cycle), the regularization of the 2015/2016 cycle, the CAIMI payment of R$ 71.2 million and the anticipated reimbursement of RAP for the 2015/2016 cycle of R$ 27.6 million. Gross Revenue (R$ million) The electrical Interconnection Revenues Company Consolidated 3Q16 3Q15 % 9M16 9M15 % 3Q16 3Q15 % 9M16 9M15 % (12.7%) % (9.5%) % Others % % % % Total (12.2%) % (9.2%) % Deductions from Operating Revenue Regulatory Deductions from operating revenues amounted to R$ 36.5 million in 3Q16, an increase of 12.8% compared to R$ 32.4 million in 3Q15, due to the increase in the tariff for the Energy Development Account - CDE. Net Operating Revenue Regulatory Consolidated Net Operating Revenue in 3Q16 reached R$ million, a year-on-year decline of 12.0% from R$ million. 2 Regulatory Results: Refers to the numbers raised from the regulatory account statements for CTEEP and its Subsidiaries which are only audited at the end of each fiscal year by the independent auditors (the regulatory results for 3Q16 have still not been revised by the auditors). The principal difference with IFRS figures being that the New Accounting Standards ICPC 01 (IFRIC 12) is not applied. The ICPC 01 has a material impact on the Income Statements of the Company and its Subsidiaries -.noticeably in the recording of investments in transmission assets and reflected in the equity accounts of Financial Assets and Fixed Assets and alterations in the structure and presentation of the Income Statements. For this reason, our purpose in disclosing this information is solely to assist in the understanding of CTEEP s business. CTEEP - 3Q16 Results 18

19 O&M Costs and Expenses Regulatory Total O&M costs and expenses in 3Q16 were R$ million, an increase of 15.0% compared with 3Q15. The variation in costs and expenses reflects, principally: (i) growth of 4.3% in payroll costs and expenses due to the collective wage bargaining agreement of 9.32% awarded in August 2016, retroactive to June; and (ii) the increase of 38.1% in materials and 37.0% in third party services, due in large part to the maintenance and conservation of transmission lines and substations, notably the substitution of spacers, erosion containment and anti-corrosion treatment. There was also an increase of expenses with outside management, legal and IT consultancies. The following shows a breakdown in O&M costs and expenses for the period: Cost and Expenses (R$ millions) Company Consolidated 3Q16 3Q15 % 9M16 9M15 % 3Q16 3Q15 % 9M16 9M15 % Personnel (71.1) (67.5) 5.3% (196.4) (184.0) 6.7% (73.8) (70.8) 4.3% (203.9) (192.9) 5.7% Material (3.1) (2.3) 37.8% (9.1) (6.0) 51.0% (3.2) (2.3) 38.1% (9.4) (6.3) 49.1% Services (31.5) (23.0) 36.9% (78.4) (63.1) 24.4% (33.6) (24.5) 37.0% (82.8) (67.7) 22.2% Depreciation (8.6) (6.4) 32.8% (24.0) (18.2) 32.1% (15.4) (12.9) 19.3% (43.9) (37.3) 17.5% Contingencies (1.2) (0.2) 634.2% (8.7) (35.6) -75.5% (1.0) (0.2) 513.6% (8.5) (35.5) -76.1% Others (14.4) (12.1) 18.8% (44.2) (36.2) 22.2% (14.8) (12.7) 17.0% (46.0) (37.9) 21.5% Total (129.9) (111.4) 16.5% (360.9) (343.0) 5.2% (141.9) (123.4) 15.0% (394.3) (377.7) 4.4% CTEEP - 3Q16 Results 19

20 Equity Income Regulatory The equity income result in 3Q16 was a revenue of R$ 8.0 million. The variation is largely explained by the result for the IEGaranhuns subsidiary of R$ 4.6 million due to its entry into commercial operations at the end of 2015, in addition to the adjustment of the 2016/2017 RAP cycle. The reduction in the result for IEMadeira, reflects principally, (i) the reduction in net revenue, due to the negative PA for the 2016/2017 RAP cycle; and (ii) the increase in debt service charges on BNDES and debenture credit lines. (R$ million) Net Income Regulatory 3Q16 net income was R$ 46.4 million, a decline of 16.8% in relation to the same period in 2015, when the Company recorded a net income of R$ 55.8 million. EBITDA and EBITDA Margin ICVM 527/12 Regulatory CTEEP - 3Q16 Results 20

21 Pursuant to ICVM 527/12, Consolidated EBITDA was R$ million in 3Q16, an increase of R$ 43.4 million compared to the EBITDA reported in 3Q15 of R$ million. The EBITDA margin in 3Q16 was 45.8%. EBITDA Company Consolidated (R$ million) 3Q16 3Q15 9M16 9M15 3Q16 3Q15 1S16 1S15 Net Income Income tax and social contribuition Financial Results Depreciation and Amortization EBITDA ICVM 527/ EBITDA Margin 47.0% 59.2% 55.2% 53.0% 45.8% 57.7% 52.4% 51.7% IFRS vs Regulatory Net Income Comparison The principal year-on-year variations between consolidated results based on IFRS and Regulatory principles in 3Q16 are as follows: 1.233,1 Net Income IFRS Net Revenue Cost and Expenses Depreciation Equity Income tax and social contribuition Net Income Regulatory ,3 (R$ MM) % Net Operating Revenue: Recognition of Infrastructure Revenue of R$ 51.3 million and Revenue from Concession Assets in the amount of R$ million, combined with the reclassification of Revenues from O&M of R$ 67.4 million and PIS and COFINS charges of R$ million, totaling R$ million. O&M and Infrastructure Costs: Recognition of Implementation Costs of Infrastructure and O&M totaling an adjustment of R$ 43.8 million. Depreciation and Amortization: Total reversal of Concession Financial Assets of R$ 13.1 million. Equity Income: Adoption of the IFRIC 12 at the subsidiaries, affecting principally the booking of Infrastructure revenue and Concession Assets. Income Tax & Social Contribution (IT & CSLL): as from 2015, the IFRS is now the base for assessing the IR & CSLL take with recognition of deferred tax on infrastructure results and remuneration of concession assets on an accrual basis and taxed according to effective receipt. Capital Structure CTEEP - 3Q16 Results 21

22 Debt* Consolidated gross debt on September 30, 2016 was R$ 1,229.4 million, an increase of 12.1% in relation to the end of 2015 when this item posted R$ 1,096.7 million, principally reflecting the issue of R$ million in infrastructure debentures to be used exclusively for reimbursement of costs incurred or for investment in the IEGaranhuns and IEMadeira subsidiaries. CTEEP s consolidated cash and cash equivalents amounted to R$ million as at September 30, 2016, an increase of 28.8% compared with December 31, 2015, when this same item amounted to R$ million, principally due largely to the increase in final investments, fruit of the debenture infrastructure line drawn in August Consequently, net consolidated debt totaled R$ million, an increase of 0.6% in relation to net debt at the end of Debt (R$ million) Q16 % Debt 1, , % Short-term Debt % Long-term Debt % Cash CTEEP and 100%* % Net Debt % Cash* % Net Debt Consolidated % (*)The Company s financial investments are concentrated in exclusive investment funds, also used as investment vehicles by subsidiaries and jointly controlled subsidiaries. The investment funds comprise highly liquid units readily convertible into cash irrespective of the maturity of the assets. The principal covenants to which CTEEP is a party, are enshrined in the 1 st simple debenture issue and the financing agreements with the BNDES: i. Debentures: the financial covenants in the indenture agreement are: Net Debt/Adjusted EBITDA Debentures 3.5 and Adjusted EBITDA Debentures/Financial Result 3.0, calculated on a quarterly basis. The Company is currently in full compliance with the requirements and covenants established in the 1 st Simple Debenture. ii. BNDES financing agreements (Valid for 2016): maximum financial covenants are: Net Debt/Adjusted EBITDA BNDES 3.5 and Net Debt/(Net Debt + Shareholders Equity) 0.6, both calculated annually at the end of the fiscal year. The Company is required to consolidate all the wholly owned and the jointly owned subsidiaries (proportional to the stake held), contingent on its shareholding stake being equal or more than 10%, for the purposes of calculation and substantiation of the ratios. CTEEP - 3Q16 Results 22

23 The 3 rd Debenture Issue requires full compliance with the financial indicators contained in the BNDES financing agreements. The Company is in compliance with the covenants and requirements established in the 3 rd Debentures Issue. The 4 th Debenture Issue must adhere to the financial indicators in the indenture as follows: Net Debt/Adjusted EBITDA < 3.5 and Adjusted EBITDA/Financial Result > 1.5 until verification on the baseline date of June 30, 2017 and as from verification on the baseline date of September 30, The average cost of consolidated debt increased from 12.5% p.a. on December 31, 2015 to 12.8% p.a. on September 30, The accumulated IPCA for the last 12 months was 8.97% and the annualized CDI (Interbank Deposit Interest Rate) for September 2016 was 14.14%. The average consolidated debt maturity as at September 30, 2016 was 2.9 years and more than the average of 2.7 years at the end of The following chart shows the schedule for amortization of consolidated debt (Controlling Company and Subsidiaries) and breakdown of funding agreements and respective indexers.. R$ million Breakdown of Debt and Indexation 3Q16 Breakdown of Debt and Indexation ,3% 50,7% BNDES - TJLP Debêntures - CDI/IPCA 49,3% 50,7% (*)The detailed breakdown of the debt of CTEEP, its subsidiaries and jointly controlled subsidiaries can be found in the attachments to this document. CTEEP - 3Q16 Results 23

24 Investments As at September 30, 2016, CTEEP had invested a total of R$ million, being: (i) R$ 73.5 million in upgrading, new connections, modernization and improvements which generated additional revenue for the Company as from the energization of each investment project; (ii) R$ 33.1 million of investments via subsidiaries for finalizing of work on the original project as well as eventual improvements, upgrading and new connections which will contribute to the generation of additional revenue for the Company; and (iii) R$ 24.2 million in capitalization of personnel, corporate projects and telecommunications. As at September 30, 2016, the Company s investments were lower than planned due to delays in the issue of environmental licenses and projects temporarily suspended by CTEEP pending detailed analysis of scope, feasibility of execution and adequacy of return. Consequently, CTEEP has revised its investment program to R$ million in 2016, with projected investments for the final quarter of the year set at R$ million. Review Investment Plan Forecast Forecast R$ (million) Var % CTEEP Complementary Projects and New Connections % Improvements % TELECOM Project % Corporative % Capitalization of Labor Costs % Subtotal CTEEP % SUBSIDIARIES (Total investments weighted by the participation of CTEEP) IEMG 100% % IENNE 25% % IEPinheiros 100% % IESul 50% % IEMadeira 51% % Serra do Japi 100% % IEGaranhuns 51% % Evrecy 100% Subtotal Subsidiaries % TOTAL % CTEEP - 3Q16 Results 24

25 Subsequent Event ANEEL Technical Note 336/2016 On October 14, 2016, ANEEL published Technical Note 336/ the subject of a material fact - for presenting a proposal establishing the calculation of the RAP for the electricity transmission concessionaires pursuant to Law /2013 and in line with the MME Order 120/2016. As from October 14, 2016, the Technical Note was submitted to the consideration of a Public Hearing. With the publication of TN 336/2016 and based on the amounts and terms therein, CTEEP s Management has prepared its best estimates, the re-measuring and booking of the right with respect to the RBSE installations in accordance with IFRS methodology, being possible on September 30, CTEEP - 3Q16 Results 25

26 Capital Markets Closing prices of CTEEP s common and preferred shares (BM&FBovespa: TRPL3 and TRPL4) as at September 30, 2016 were R$ and R$ 66.00, respectively, corresponding to a variation of 34.92% and 44.42%, respectively, in relation to December 31, During the same period, the Ibovespa reported an appreciation of 34.92% in relation to December 31, 2015 and the Electric Power Stock Index (IEE) rose %. 60% 50% 40% 30% 20% 10% 0% -10% -20% -30% -40% Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 TRPL3 TRPL4 IBOVESPA IEE 46.38% 44.42% 34.92% 34.64% During the first half of 2016, CTEEP s preferred shares reported an average daily trading volume on the BM&FBovespa of R$ 25.9 million. Trade Financial - 09/30/2016 (R$ million) Total R$ 4,894 Million Daily Average / Day R$ 25.9 million 0 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 With a daily average of 2,482 trades, CTEEP s preferred shares recorded a total of 469 thousand transactions in 9M16. Trade Volume - 09/30/2016 (units) 8, Total Trade: 469,036 Daily Average/ Day: 2,482 6, , , Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 CTEEP - 3Q16 Results 26

27 Attachments Attachment I IFRS Balance Sheet COMPANY CONSOLIDATED Assets (R$' 000) 09/30/ /31/ /30/ /31/2015 CURRENT ASSETS Cash and Banks 1,587 3,120 4,503 6,135 Financial Investments 347, , , ,054 Trade Account Receivable 601, , , ,961 Inventory 35,540 38,787 37,205 40,476 Recoverable taxes and conbtributions 57,080 4,928 57,350 5,763 Prepaid Expenses 9,592 6,037 9,631 6,057 Others 46,670 79,366 47,778 80,380 1,099, ,659 1,450, ,826 NON-CURRENT ASSETS Long-Term Assets Trade Account Receivable 9,444,300 2,569,403 10,462,117 3,526,968 Amounts Receivable from the State Finance Secretariat 1,091, ,920 1,091, ,920 Tax benefit - incorporated goodwill Pledges and Escrow 75,108 66,252 75,117 66,268 Inventory 25,891 27,948 31,922 29,675 Deferred taxes 0 183, ,809 Others 8,491 9,249 21,367 21,308 10,644,864 3,823,167 11,681,597 4,794,534 Investments 2,773,596 2,394,590 1,813,567 1,572,640 Property, Plant and Equipment 24,759 23,163 24,795 23,194 Intangible Assets 15,576 22,649 40,009 49,509 2,813,931 2,440,402 1,878,371 1,645,343 Total Assets 14,558,744 6,847,228 15,010,254 7,338,703 CTEEP - 3Q16 Results 27

28 COMPANY CONSOLIDATED Liabilities and Shareholders' Equity 09/30/ /31/ /30/ /31/2015 CURRENT LIABILITIES Loans and Financing 32,535 32,530 71,275 71,070 Bonds 205, , , ,782 Suppliers 31,696 31,824 34,385 34,950 Taxes, Fees and Contributions 78,291 26,825 80,867 28,417 Taxes installments - Law 11,941 17,216 16,200 17,216 16,200 Regulatory Charges 11,838 21,442 11,908 21,821 Interest on Shareholders' Equity 2,457 2,156 2,457 2,156 Provisions 37,913 28,828 39,166 29,757 Amounts Payable - Fundação CESP 6,086 6,144 6,086 6,144 Others 17,166 21,849 21,129 31, , , , ,311 NON-CURRENT LIABILITIES Long-Term Liabilities Loans and Financing 285, , , ,239 Bonds 508, , , ,573 Taxes installments - Law 11, , , , ,897 PIS and COFINS 921, , , ,022 Advance for future capital increases 2,006, ,045,108 35,801 Regulatory Charges 34,010 28,783 36,944 31,194 Provisions for Contingencies 162, , , ,612 Especial Liabilities - Reversal/Amortization 24,053 24,053 24,053 24,053 Monority Interest , ,796 4,064,364 1,142,443 4,466,583 1,580,187 SHAREHOLDERS' EQUITY Paid-up Capital 2,372,437 2,215,291 2,372,437 2,215,291 Capital Reserves 1,217,583 1,277,356 1,217,583 1,277,356 Revenue Reserves 1,842,892 1,842,892 1,842,892 1,842,892 Profits / Losses 4,620, ,620,436 0 Advance for future capital increases ,054,014 5,336,205 10,054,014 5,336,205 Total Liabilities and Shareholders' Equity 14,558,744 6,847,228 15,010,254 7,338,703 CTEEP - 3Q16 Results 28

29 Attachment II IFRS Income Statement (R$ thousand) Results Company Consolidated (R$ '000) 3Q16 3Q15 % 9M16 9M15 % 3Q16 3Q15 % 9M16 9M15 % Operating revenue 7,468, , % 8,032, , % 7,581, , % 8,215,713 1,104, % Construction 49,584 86,296 (42.5%) 103, ,828 (45.0%) 51,298 98,944 (48.2%) 111, ,498 (49.2%) Operation and Maintenance 182, ,290 (20.9%) 600, , % 181, ,769 (21.9%) 619, , % Financial 7,229,710 80, % 7,308, , % 7,342, , % 7,467, , % Others 6,791 6, % 20,093 18, % 6,026 5, % 17,374 16, % Deductions from Operating Revenue (841,050) (43,445) % (914,204) (106,270) 760.3% (846,623) (47,456) % (924,304) (114,563) 706.8% Net operating revenue 6,627, , % 7,118, , % 6,734, , % 7,291, , % Cost and Expenses (167,387) (186,533) (10.3%) (435,087) (501,694) (13.3%) (173,620) (204,568) (15.1%) (455,020) (547,712) (16.9%) Personnel (76,873) (74,483) 3.2% (211,560) (199,094) 6.3% (79,530) (77,885) 2.1% (219,303) (208,828) 5.0% Material (27,521) (36,656) (24.9%) (58,570) (91,760) (36.2%) (27,236) (46,354) (41.2%) (58,923) (108,337) (45.6%) Services (45,346) (61,251) (26.0%) (105,892) (133,279) (20.5%) (48,139) (64,473) (25.3%) (113,403) (149,428) (24.1%) Others (17,647) (14,143) 24.8% (59,065) (77,561) (23.8%) (18,715) (15,856) 18.0% (63,391) (81,119) (21.9%) Gross Revenue 6,459, , % 6,683, , % 6,561, , % 6,836, , % Equity 288, , % 377, , % 193, , % 239, , % Other Operating Expenses/Income (190) (10,065) (98.1%) (1,068) (26,072) (95.9%) (190) (10,065) (98.1%) (1,068) (26,999) (96.0%) Previous to the Net Financial Income and Taxes 6,748, , % 7,059, , % 6,754, , % 7,074, , % Financial Results (27,961) (20,686) 35.2% (84,215) (20,315) 314.5% (25,374) (19,471) 30.3% (79,429) (20,637) 284.9% Interest Receivable 10,711 16,319 (34.4%) 32,251 54,073 (40.4%) 17,597 21,895 (19.6%) 49,895 67,220 (25.8%) Monetary (net) (5,406) (8,254) (34.5%) (21,567) 15,563 (238.6%) (5,452) (8,278) (34.1%) (21,431) 15,493 (238.3%) Interest and expenses on loans (32,556) (30,881) 5.4% (94,151) (91,912) 2.4% (36,754) (35,173) 4.5% (106,968) (105,299) 1.6% Others (710) 2,130 (133.3%) (748) 1,961 (138.1%) (765) 2,085 (136.7%) (925) 1,949 (147.5%) Operating Income 6,720, , % 6,975, , % 6,729, , % 6,995, , % Income tax and social contribuition (2,188,342) (45,822) % (2,244,961) (83,843) % (2,192,753) (49,440) % (2,252,857) (89,372) % Current (9,721) (27,307) (64.4%) (54,274) (65,162) (16.7%) (11,744) (28,751) (59.2%) (59,741) (69,064) (13.5%) Deferred (2,178,621) (18,515) % (2,190,687) (18,681) % (2,181,009) (20,689) % (2,193,116) (20,308) % Net Income Before Minority Interest 4,531, , % 4,730, , % 4,536, , % 4,742, , % Minority interest 0 0 0% 0 0 0% (4,514) (4,275) 100% (11,962) (9,758) 0% Net Income 4,531, , % 4,730, , % 4,531, , % 4,730, , % CTEEP - 3Q16 Results 29

30 Attachment III IFRS Cash Flow (R$ thousand) Cash Flow of operating activities COMPANY CONSOLIDATED 9M16 9M15 9M16 9M15 Net Cash by operating activities 44, , , ,283 Cash provided by operating 322, , , ,352 Net Income 4,730, ,984 4,742, ,984 Atualização do Contas a Receber Lei SE (7,111,714) (7,111,714) PIS and COFINS Deferred 813,283 22, ,163 25,353 Depreciation and amortization 6,109 5,804 6,672 6,368 IR and CSLL deferred 2,190,687 18,680 2,193,116 20,307 Demandas Judiciais (49,034) 24,837 (49,326) 24,800 Residual value of permanent asset disposals and donations 4, , Tax benefit - Goodwill 24 22, ,415 Amortização ativo de concessão na aquisição da controlada 1,868 1,868 1,868 1,868 Reversal of the loss provision in a Controlled Company (1,714) (1,760) (1,714) (1,760) Equity (377,596) (236,208) (239,363) (137,597) Juros e variações monetárias e cambiais s/ ativos e passivos 116,026 96, , ,563 Changes in Assets -313, ,509-68,395 Trade accounts receivable (144,103) 101,769 (225,198) 23,732 Inventories 5,304 13,264 1,024 12,845 Amounts receivable - State Finance Department (125,154) (104,709) (125,154) (104,709) Taxes and contributions to offset (52,152) (28,578) (51,587) (28,578) Pledges and restricted deposits (80) 3,131 (73) 3,131 Other 2,410 15,499 1,479 25,184 Changes in Liabilities 35,847 24,368 31,596 11,326 Suppliers (128) (16,497) (565) (30,696) Taxes and social charges payable 51,466 57,864 52,450 58,215 Taxes installments - Law 11,941 (12,568) (11,580) (12,568) (11,580) Regulatory charges payable (7,268) (13,219) (7,187) (13,237) Provisions 9,085 6,884 9,409 7,636 Amounts payable - Cesp (58) 318 (58) 318 Other (4,682) 598 (9,885) 670 Cash flow of investment activities -95,715-91, ,169-93,450 Financial Investments (117,139) (9,496) (130,327) (56,449) Transações com acionistas não controladores 0 0 (33,241) 39,258 Purchase of property, plant and equipment (5,062) (1,097) (5,085) (1,097) Intangible assets 0 (633) (3) (857) Investments (1,564) (91,904) (1,564) (74,304) Dividends 28,050 11,682 28,050 (1) Cash flow of financing activities 49, ,798 16, ,100 News loans 148,930 30, ,930 30,000 Loan payments (including interest) (87,298) (207,370) (119,663) (240,672) Dividends paid (109,699) (141,428) (109,699) (141,428) Capital Increase 97, ,373 0 Change in Cash -1,533 2,319-1,632 1,732 Opening Balance of Cash and Cash Equivalents 3,120 1,390 6,135 4,696 Closing Balance of Cash and Cash Equivalents 1,587 3,709 4,503 6,428 CTEEP - 3Q16 Results 30