ITR - Quarterly Information - 3/31/ CTEEP-CIA TRANSM ENERGIA ELÉTR. PAULISTA Version : 1. Capital Structure 1.

Transcription

1 ITR - Quarterly Information - 3/31/ CTEEP-CIA TRANSM ENERGIA ELÉTR. PAULISTA Version : 1 Table of Contents Company Information Capital Structure 1 Cash Earnings 2 Individual Statements Asset Balance Sheet 3 Liability Balance Sheet 4 Income Statement 6 Comprehensive Income Statement 7 Cash Flow Statement 8 Statement of Changes in Shareholders' Equity DMPL - 1/1/2017 to 3/31/ DMPL - 1/1/2016 to 3/31/ Added Value Statement 11 Consolidated Statements Asset Balance Sheet 12 Liability Balance Sheet 13 Income Statement 15 Comprehensive Income Statement 16 Cash Flow Statement 17 Statement of Changes in Shareholders' Equity DMPL - 1/1/2017 to 3/31/ DMPL - 1/1/2016 to 3/31/ Added Value Statement 20 Performance Comments Other Information that the Company Believes is Relevant 81 Opinions and Comments Special Review Report - No Qualification 85 Opinion of the Supervisory Board or Equivalent Body 86 Directors' Comments on Financial Statements 87 Directors' Comments on the Independent Auditors' Report 88

2 Company Information / Capital Structure Number of Shares (Units) Current Quarter 3/31/2017 Of the Paid-in Capital Ordinary 64,484,433 Preferred 100,236,393 Total 164,720,826 In Treasury Ordinary Preferred - - Total - PAGE: 1 of 89

3 Company Information / Cash Proceeds Event Approval Proceeds Payment Start Share Type Share Class Proceeds per Share (Reais / Share) Board of Directors' Meeting 11/29/2016 Dividend 1/20/2017 Ordinary Board of Directors' Meeting 11/29/2016 Dividend 1/20/2017 Preferred PAGE: 2 of 89

4 Individual Statements / Asset Balance Sheet (Thousand Reais) Account Description Current Quarter Previous Year Account Code 3/31/ /31/ Total Assets 15,152,592 14,603, Current Assets 1,900,138 1,332, Cash and Cash Equivalents 2,787 1, Financial Investments 178, , Accounts Receivable 1,559,841 1,091, Clients 1,559,841 1,091, Inventories 36,500 35, Taxes Recoverable 26,238 8, Current Taxes Recoverable 26,238 8, Taxes and Contributions to be Compensated 26,238 8, Prepaid Expenses 41,964 10, Other Current Assets 54,060 60, Other 54,060 60, Credit With Subsidiaries 15,843 18, Other Non-current Assets 13,252,454 13,271, Long-Term Assets 10,374,804 10,469, Accounts Receivable 10,279,675 10,372, Clients 9,067,754 9,222, Other Accounts Receivable 1,211,921 1,150, Inventories 22,554 25, Other Non-Current Assets 72,575 71, Tied-up Bonds and Deposits 71,026 70, Other 1,549 1, Investments 2,836,035 2,757, Shareholdings 2,836,035 2,757, Shareholdings in Subsidiaries 950, , Shareholdings in Jointly Controlled Companies 1,885,448 1,826, Property, Plant and Equipment 24,639 25, Property, Plant and Equipment in Operation 24,639 25, Intangible Assets 16,976 18, Intangible Assets 16,976 18,219 PAGE: 3 of 89

5 Individual Statements / Liability Balance Sheet (Thousand Reais) Account Description Current Quarter Previous Year Account Code 3/31/ /31/ Total Liabilities 15,152,592 14,603, Current Liabilities 441, , Suppliers 44,639 39, National Suppliers 44,639 39, Tax Liabilities 62,604 45, Federal Tax Liabilities 62,604 45, Taxes and Social Contributions Payable 44,752 28, Taxes in installments - Law n º ,852 17, Loans and Financing 238, , Loans and Financing 32,637 32, In National Currency 32,637 32, Debentures 206, , Other Bonds 68, , Other 68, , Dividends and Interest on Own Equity Payable 2, , Amounts payable (Cesp Foundation) 6,306 5, Regulatory Charges to be Collected 15,780 12, Other 43,603 49, Provisions 27,713 32, Provisions for Social Security, Labor and Civil Taxes 27,713 32, Provisions for Employee Benefits 27,713 32, Non-Current Liabilities 4,330,529 3,933, Loans and Financing 882, , Loans and Financing 272, , In National Currency 272, , Debentures 610, , Other Bonds 172, , Other 172, , Special Obligations (Revaluation / Amortization) 24,053 24, Taxes in Installments - Law n º , , Regulatory Charges to be Collected 31,262 29, Deferred Taxes 3,118,091 3,014, Deferred Income and Social Contribution Taxes 3,118,091 3,014, Deferred PIS and COFINS Taxes 971, , Deferred Income and Social Contribution Taxes 2,146,338 2,068, Provisions 156, , Provisions for Social Security, Labor and Civil Taxes 156, , Tax Provisions 17,464 16, Social Security and Labor Provisions 122, , Civil Provisions 16,721 16, Shareholders' Equity 10,380,285 10,118, Realized Capital Stock 2,372,437 2,372, Capital Reserves 1,218,249 1,218, Special Goodwill Reserve on the Merger Advance for Future Capital Increase Investment Grants (CRC) 426, ,710 PAGE: 4 of 89

6 Individual Statements / Liability Balance Sheet (Thousand Reais) Account Description Current Quarter Previous Year Account Code 3/31/ /31/ Remuneration of Current fixed assets 633, , Donations and Grants for Investments 150, , Tax Incentives (FINAM) 6,743 6, Profit Reserves 6,527,704 6,527, Legal Reserve 474, , Statutory Reserve 237, , Profit Retention Reserve 1,491,748 1,491, Special Reserve for unrealized Profits 4,324,224 4,324, Accumulated Profit/Loss 261,895 - PAGE: 5 of 89

7 Individual Statements / Income Statements (Thousand Reais) Cumulative for the Previous Year 1/1/2016 to 3/31/2016 Account Description Cumulative for the Previous Account Code 1/1/2017 to 3/31/ Revenue from Sale of Goods and/or Services 498, , Net Operating Revenue 498, , Cost of Goods and/or Services Sold (148,177) (97,449) Cost of Infrastructure Implementation and ( ) (97.449) operation and Maintenance Services 3.03 Gross Profit 349, , Operating Expenses/Revenues 40,988 6, General and Administrative Expenses (35,285) (34,079) Management fees (3,323) (1,019) Other General and Administrative Expenses (31,962) (33,060) Other Operating Income Other Operating Expenses (632) (721) Equity Income 76,102 40, Income Before Financial Results and Taxes 390, , Financial Results (32,712) (26,219) Financial Income 4,804 12, Financial Expenses (37,516) (38,532) 3.07 Income Before Income Taxes 358, , Income Tax and Social Contributions on Profit (96,821) (23,534) Current (19,019) (17,296) Deferred (77,802) (6,238) 3.09 Net Income from Continuing Operations 261,309 94, Profit/Loss for the Period 261,309 94, Earnings per Share (Reais / Share) Basic Earnings per Share ON PN Diluted Earnings per Share ON PN PAGE: 6 of 89

8 Individual Statements / Comprehensive Income Statement (Thousand Reais) Cumulative for the Former Year 1/1/2016 to 3/31/2016 Account Description Cumulative for the Previous Account Code 1/1/2017 to 3/31/ Net Income for the Period 261,309 94, Comprehensive Income for the Period 261,309 94,411 PAGE: 7 of 89

9 Individual Statements / Cash Flow Statement - Indirect Method (Thousand Reais) Account Code Account Description Cumulative for the Former Year 1/1/2016 to 3/31/2016 Cumulative for the Previous 1/1/2017 to 3/31/ Net Cash Operating Activities (87,052) 27, Cash Generated in Transactions 317, , Net Income for the Period 261,309 94, Depreciation and Amortization 2,222 1, Deferred PIS and COFINS Taxes 26,273 2, Deferred Income and Social Security Taxes 77,802 6, Provision for Lawsuits (1,315) (169) Residual Value of Depreciated Durable Assets Tax benefit (incorporated goodwill) Amortization of Concession Assets in the acquisition of Subsidiaries Realization of Loss in subsidiaries (558) (576) Equity Income (76,102) (40,406) Interest and Indexation and Foreign Exchange var. w/o Assets 27,250 36,930 and Liabilities Variation in Assets and Liabilities (404,566) (73,722) Accounts Receivable (Concession Asset) (313,750) 1, Inventories 2,180 2, Amounts Receivable (Department of Finance) (61,563) (43,391) Taxes and Contributions to be Compensated (17,904) (16,932) Tied-up Bonds and Deposits 106 (617) Expenses paid in advance (31,860) (34,347) Others Suppliers 5,360 10, Taxes and Social Contributions to be Collected 16,379 13, Taxes in Installments - Law n º (4,439) (4,106) Regulatory Charges to be Collected 5,070 (10,925) Provisions (4,849) (3,111) Amounts Payable (CESP Foundation) Other (6.112) (976) 6.02 Net Cash Investing Activities (56,677) (13,406) Financial Investments (54,269) (40,373) Property, Plant and Equipment (130) (142) Intangible Assets (64) Investments (2.214) (941) Dividends received - 28, Net Cash Funding Activities 144,907 (14,703) Loan Additions 300, (Main) Loan Payments (7,967) (7,844) (Interest) Loan Payments (10,007) (6,858) Paid Dividends and Interest on Equity (137,119) (1) 6.05 Increase (Decrease) in Cash and Cash Equivalents 1,178 (392) Initial Cash and Equivalent Balance 1,609 3, Final Cash and Equivalent Balance 2,787 2,728 PAGE: 8 of 89

10 Individual Statements / Statement of Changes in Shareholders' Equity / DMPL - 1/1/2017 to 3/31/2017 (Thousand Reais) Account Code Account Description Paid-up Capital Capital Reserves, Granted Options and Shares in Treasury Profit Reserves Accumulated Profit or Other Comprehensive Loss Results 5.01 Opening Balances 2,372,437 1,218,249 6,527, ,118, Adjusted Opening Balances 2,372,437 1,218,249 6,527, ,118, Capital Transactions with Shareholders Interest on Shareholders' Equity Total Comprehensive Result Net Income for the Period , , , , End Balances 2,372,437 1,218,249 6,527, ,895-10,380,285 Net Worth PAGE: 9 of 89

11 Individual Statements / Statement of Changes in Shareholders' Equity / DMPL - 1/1/2016 to 3/31/2016 (Thousand Reais) Account Code Account Description Paid-up Capital Capital Reserves, Granted Options and Shares in Treasury Profit Reserves Accumulated Profit or Other Comprehensive Loss Results 5.01 Opening Balances 2,215,291 1,278,022 1,842, ,336, Adjusted Opening Balances 2,215,291 1,278,022 1,842, ,336, Total Comprehensive Result Net Income for the Period ,411 94, ,411 94, End Balances 2,215,291 1,278,022 1,842,892 94,411-5,430,616 Net Worth PAGE: 10 of 89

12 Individual Statements / Added Value Statement (Thousand Reais) Account Code Account Description Cumulative for the Former Year 1/1/2016 to 3/31/2016 Cumulative for the Previous 1/1/2017 to 3/31/ Revenue 565, , Sales of Goods, Products and Services 565, , Other Revenues Third-Party Acquired Supplies (95,507) (46,688) Cost of Sold Product, Goods and Services (4,777) (4,505) Materials, Energy, Third-party Services and Others (90,730) (42,183) 7.03 Gross Value Added 470, , Withholdings (2,222) (1,936) Depreciation, Amortization and Exhaustion (2,222) (1,936) 7.05 Net Added Value Produced 468, , Added Value Received on Transfer 80,906 51, Equity Income 76,102 40, Financial Income 4,804 10, Total Added Value to Distribute 549, , Distribution of Added Value 549, , Personnel 64,366 63, Direct Remuneration 42,063 45, Benefits 15,907 13, F.G.T.S. 6,396 4, Taxes, Fees and Contributions 183,723 76, Federal 174,440 68, State Municipal 9,063 7, Remuneration of Third-Party Capital 39,745 40, Interest 36,565 36, Rent 3,180 3, Remuneration of Shareholders' Equity 261,309 94, Retained Earnings / Loss for the Period 261,309 94,411 PAGE: 11 of 89

13 Consolidated Statements / Asset Balance Sheet (Thousand Reais) Account Description Current Quarter Previous Year Account Code 3/31/2017 3/31/ Total Assets 15,637,467 15,066, Current Assets 2,295,056 1,680, Cash and Cash Equivalents 5,614 4, Financial Investments 435, , Accounts Receivable 1,691,428 1,221, Clients 1,691,428 1,221, Inventories 38,427 37, Taxes Recoverable 26,452 8, Current Taxes Recoverable 26,452 8, Taxes and Contributions to be Compensated 26,452 8, Prepaid Expenses 42,185 10, Other Current Assets 55,602 62, Other 55,602 62, Other 39,780 44, Controlled Loans 15,822 18, Non-current Assets 13,342,411 13,386, Long-Term Assets 11,392,452 11,492, Financial Investments Measured at Fair Value 12,420 12, Restricted Cash 12,420 12, Accounts Receivable 11,279,193 11,376, Clients 10,067,272 10,225, Other Accounts Receivable 1,211,921 1,150, Inventories 28,254 32, Other Non-Current Assets 72,585 71, Bonds and Linked Deposits 71,035 70, Other Investments 1,885,448 1,826, Shareholdings 1,885,448 1,826, Property, Plant and Equipment 24,721 25, Property, Plant and Equipment in Operation 24,721 25, Intangible Assets 39,790 41, Intangible Assets 39,790 41,843 PAGE: 12 of 89

14 Consolidated Statements / Liability Balance Sheet (Thousand Reais) Account Description Current Quarter Previous Year Account Code 3/31/2017 3/31/ Total Liabilities 15,637,467 15,066, Current Liabilities 488, , Suppliers 46,006 41, National Suppliers 46,006 41, Tax Liabilities 64,872 47, Federal Tax Liabilities 64,872 47, Taxes and Social Contributions payable 47,020 30, Taxes in Installments - Law n º ,852 17, Loans and Financing 277, , Loans and Financing 71,435 71, In National Currency 71,435 71, Debentures 206, , Other Bonds 71, , Other 71, , Dividends and Interest on Own Equity Payable 2, , Amounts Payable (Cesp Foundation) 6,306 5, Regulatory charges to be collected 15,857 12, Other 46,619 53, Provisions 28,590 33, Provisions for Social Security, Labor and Civil Taxes 28,590 33, Provisions for Employee Benefits 28,590 33, Non-Current Liabilities 4,562,338 4,171, Loans and Financing 1,028, , Loans and Financing 418, , In National Currency 418, , Debentures 610, , Other Bonds 176, , Other 176, , Special Obligations (Revaluation / Amortization) 24,053 24, Taxes in Installments - Law n º , , Regulatory Charges to be Collected 34,605 32, Deferred Taxes 3,199,870 3,096, Deferred Income and Social Contribution Taxes 3,199,870 3,096, Deferred Income and Social Contribution Taxes 2,184,288 2,106, Deferred PIS and COFINS Taxes 1,015, , Provisions 157, , Provisions for Social Security, Labor and Civil Taxes 157, , Tax Provisions 17,464 16, Social Security and Labor Provisions 123, , Civil Provisions 16,721 16, Consolidated Shareholders' Equity 10,586,948 10,297, Realized Capital Stock 2,372,437 2,372, Capital Reserves 1,218,249 1,218, Special Goodwill Reserve on the Merger Advance for Future Capital Increase Investment Grant (CRC) 426, ,710 PAGE: 13 of 89

15 Consolidated Statements / Liability Balance Sheet (Thousand Reais) Account Description Current Quarter Previous Year Account Code 3/31/2017 3/31/ Remuneration of Current Fixed Assets 633, , Donations and Grants for Investments 150, , Tax Incentives (FINAM) 6,743 6, Profit Reserves 6,527,704 6,527, Legal Reserve 474, , Statutory Reserve 237, , Profit Retention Reserve 1,491,748 1,491, Special Reserve for unrealized profits 4,324,224 4,324, Accumulated Profit/Loss 261, Stake of Non-controlling Shareholders 206, ,733 PAGE: 14 of 89

16 Consolidated Statements / Income Statement (Thousand Reais) Account Code Account Description Cumulative for the Former Year 1/1/2016 to 3/31/2016 Cumulative for the Previous 1/1/2017 to 3/31/ Revenue from Sale of Goods and/or Services 530, , Net Operating Revenue 530, , Cost of Goods and/or Services Sold (155,118) (103,678) Cost of Infrastructure Implementation and ( ) ( ) Operation and Maintenance 3.03 Gross Profit 375, , Operating Expenses/Revenues 19,386 (16,241) General and Administrative Expenses (37,036) (35,136) Management fees (3,564) (1,122) Other General and Administrative Expenses (33,472) (34,014) Other Operating Income Other Operating Expenses (689) (721) Equity Income 56,305 19, Income Before Financial Results and Taxes 394, , Financial Results (29,269) (25,157) Financial Income 12,222 17, Financial Expenses (41,491) (43,039) 3.07 Income Before Income Taxes 365, , Income Tax and Social Contributions on Profit (98,432) (25,350) Current (20,747) (19,055) Deferred (77,685) (6,295) 3.09 Net Income from Continuing Operations 267,158 98, Consolidated Profit/Loss for the Period 267,158 98, Assigned to Shareholders of the Parent Company Assigned to Non-controlling Shareholders 5,849 3, Earnings per Share (Reais / Share) Basic Earnings per Share ON PN Diluted Earnings per Share ON PN PAGE: 15 of 89

17 Consolidated Statements / Comprehensive Income Statement (Thousand Reais) Account Code Account Description Cumulative for the Former Year 1/1/2016 to 3/31/2016 Cumulative for the Previous 1/1/2017 to 3/31/ Consolidated Net Profit for the Period 267,158 98, Comprehensive Consolidated Income for the Period 267,158 98, Assigned to Shareholders of the Parent Company Assigned to Non-controlling Shareholders 5,849 3,828 PAGE: 16 of 89

18 Consolidated Statements / Cash Flow Statement - Indirect Method (Thousand Reais) Account Code Account Description Cumulative for the Former Year 1/1/2016 to 3/31/2016 Cumulative for the Previous 1/1/2017 to 3/31/ Net Cash Operating Activities (53,788) 44, Cash Generated in Transactions 347, , Net Income for the Period 267,158 98, Depreciation and Amortization 2,412 2, Deferred PIS and COFINS Taxes 26,137 2, Deferred Income and Social Security Taxes 77,685 6, Provision for Lawsuits (817) (384) Residual Value of Depreciated Durable Assets Tax benefit (incorporated goodwill) Amortization of concession assets in the acquisition of subsidiaries Realization of Loss in Subsidiaries (558) (576) Equity Income (56,305) (19,021) Interest and indexation and Foreign Exchange var. w/o Assets 31,147 37,502 and Liabilities Variation in Assets and Liabilities (401,280) (82,692) Restricted Cash (418) (377) Accounts Receivable (Concession Asset) (311,318) (2,212) Inventories 3,554 1, Amounts receivable (Dep. of Finance) (61,563) (43,391) Taxes and Contributions to be Compensated (17,804) (16,364) Tied-up Bonds and Deposits 106 (617) Expenses Paid in advance (31,882) (34,513) Other 6,485 12, Suppliers 4,524 11, Taxes and Social Contributions to be Collected 16,967 13, Taxes in Installments - Law n º (4,439) (4,106) Regulatory Charges to be Collected 5,145 (10,999) Provisions (5,020) (3,317) Amounts Payable (CESP Foundation) Other (6,428) (6,067) 6.02 Net Cash Investing Activities (79,588) (19,898) Financial Investments (99,210) 35, Transactions with Non-controlling Shareholders 22,081 (82,379) Property, Plant and Equipment (182) (142) Intangible Assets (64) (3) Investments (2,213) (941) Dividends received - 28, Net Cash Funding Activities 134,466 (25,559) Loan Additions 300, (Main) Loan Payments (14,591) (14,468) (Interest) Loan Payments (13,824) (11,090) Paid Dividends and Interest on Equity (137,119) (1) 6.05 Increase (Decrease) in Cash and Cash Equivalents 1,090 (827) Initial Cash and Equivalent Balance 4,524 6, Final Cash and Equivalent Balance 5,614 5,308 PAGE: 17 of 89

19 Consolidated Statements / Statement of Changes in Shareholders' Equity / DMPL - 1/1/2017 to 3/31/2017 (Thousand Reais) Account Code Account Description Paid-up Capital Capital Reserves, Granted Options and Shares in Treasury Profit ReservesAccumulated Profit or Loss Other Comprehensive Results Net Worth Non-Controlling Shareholding Consolidated Shareholders' Equity 5.01 Opening Balances 2,372,437 1,218,249 6,527, ,118, ,733 10,297, Adjusted Opening Balances 2,372,437 1,218,249 6,527, ,118, ,733 10,297, Capital Transactions with Shareholders ,081 22, Interest on Shareholders' Equity Acquisition of additional shareholding with noncontrolling ,081 22,081 shareholders Total Comprehensive Result Net Income for the Period , , , ,309 5,849 5, , , End Balances 2,372,437 1,218,249 6,527, ,895-10,380, ,663 10,586,948 PAGE: 18 of 89

20 Consolidated Statements / Statement of Changes in Shareholders' Equity / DMPL - 1/1/2016 to 3/31/2016 (Thousand Reais) Account Code Account Description Paid-up Capital Capital Reserves, Granted Options and Shares in Treasury Profit ReservesAccumulated Profit or Loss Other Comprehensive Results Net Worth Non-Controlling Shareholding Consolidated Shareholders' Equity 5.01 Opening Balances 2,215,291 1,278,022 1,842, ,336, ,796 5,515, Adjusted Opening Balances 2,215,291 1,278,022 1,842, ,336, ,796 5,515, Capital Transactions with Shareholders (86,207) (86,207) Acquisition of additional shareholding with noncontrolling (86,207) (86,207) shareholders Total Comprehensive Result Net Income for the Period ,411 94, ,411 94,411 3,828 3,828 98,239 98, End Balances 2,215,291 1,278,022 1,842,892 94,411-5,430,616 96,417 5,527,033 PAGE: 19 of 89

21 Consolidated Statements / Added Value Statement (Thousand Reais) Account Code Account Description Cumulative for the Former Year 1/1/2016 to 3/31/2016 Cumulative for the Previous 1/1/2017 to 3/31/ Revenue 601, , Sales of Goods, Products and Services 600, , Other Revenues Third-Party Acquired Supplies (100,764) (50,860) Cost of Sold Product, Goods and Services (6,658) (4,856) Materials, Energy, Third-party Services and Others (94,106) (46,004) 7.03 Gross Value Added 500, , Withholdings (2,412) (2,124) Depreciation, Amortization and Exhaustion (2,412) (2,124) 7.05 Net Value Added Produced 498, , Added Value Received on Transfer 68,527 34, Equity Income 56,305 19, Financial Income 12,222 15, Total Added Value to Distribute 566, , Distribution of Added Value 566, , Personnel 66,890 65, Direct Remuneration 44,020 47, Benefits 16,365 13, F.G.T.S. 6,505 4, Taxes, Fees and Contributions 188,740 80, Federal 179,453 73, State Municipal 9,065 7, Remuneration of Third-Party Capital 43,966 44, Interest 40,517 41, Rent 3,449 3, Remuneration of Shareholders' Equity 267,158 98, Retained Earnings / Loss for the Period 261,309 94, Non-Controlling Shareholding on Retained Earnings 5,849 3,828 PAGE: 20 of 89

22 Performance Comments Analysis of consolidated income for the quarter ended March 31, 2017 (unaudited): % % 2017/2016 Variation (%) Net operating revenue Infrastructure revenue 77, , Operation and Maintenance 236, , Remuneration from RBSE concession assets 211, Remuneration from concession assets 67, , Rent and service provision 7, , Taxes on revenue (51,948) (9.8) (26,339) (9.8) 97.2 Regulatory Charges (18,058) (3.4) (11,980) (4.5) , , Cost of Infrastructure Implementation and Operation and Maintenance Services (155,118) (29.2) (103,678) (38.6) 49.6 Gross Profit 375, , General administrative expenses (37,036) (7.0) (35,136) (13.1) 5.4 Other net operating revenues (expenses) (126) - (192.9) Equity Income 56, , Financial results (29,269) (5.5) (25,157) (9.4) 16.3 Profit before income tax and social contribution 365, , Income tax and social contribution (98,432) (18.6) (25,350) (9.4) Net profit for the period 267, , Assigned to parent company shareholders 261, , Assigned to non-controlling shareholders 5, , Consolidated gross profit increased by 127.6% in 1Q17 compared to 1Q16, as detailed below: Net operating revenue, which increased by 97.5% in 1Q17, has its change comprised of: (i) a 216.8% increase in infrastructure revenue; (ii) an 8.1% increase in operating and maintenance revenue; (iii) a 16.5% increase in remuneration from concession assets, (iv) remuneration from RBSE concession assets, and (v) a 82.7% increase in operating income deductions. (i) Infrastructure revenue totaled BRL 77, in 1Q17 compared to BRL 24, in 1Q16, mainly due to the evolution of enhancement projects for the replacement of transformer banks, implementation of a branch structure and installation of grounding transformers. (ii) Operating and maintenance revenue totaled BRL 236, in 1Q17 compared to BRL 219, in 1Q16, the main factors being: (i) a positive change of BRL 16, related to the IGPM/IPCA for the Allowed Annual Revenue ("RAP") from 2015/2016 to 2016/2017; (ii) reduction of the apportionment of the system's surplus by BRL 4,104.00; (iii) offset by an increase in the CDE rate for free consumers of BRL 5, (iii) The remuneration from concession assets relates to the updating of the financial assets calculated according to the individual effective interest rate of each project, totaling BRL 67, in 1Q17, compared to BRL 57, in 1Q16. This balance varies according to the financial flow expected to realize the values of infrastructure and indemnity implementation, of which the average balance of financial assets in 1Q17 is BRL 2,615,443.00, and BRL 2,253, in 1Q16. PAGE: 21 of 89

23 Performance Comments The weighted average effective interest rate that remunerates the financial assets, excluding the balance of accounts receivable (Law n º ) in 1Q17 is 13.0% p.a. (1Q16 is 13.7% p.a.). (iv) Remuneration from RBSE's concession assets includes the updating of the portion of the financial assets referring to Law n º , which was remeasured in September 2016, and presents an effective interest rate of 9.5% p.a., totaling, in 1Q17, a BRL 211, revenue. (v) Deductions from operating revenue reached BRL 70, in 1Q17 and BRL 38, in 1Q16, due to (i) a 97.2% increase in taxes on revenue, which accompanies changes in gross revenue; and (ii) a 50.7% increase in regulatory charges, mainly due to the CDE related to free consumers. Costs of infrastructure implementation and operation and maintenance services, which in 1Q17 is comprised of 45.0% cost of infrastructure implementation (21.5% in 2015) and 55.0% operation and maintenance costs (78.5% in 1Q16), increased by 49.6%, to BRL 155, in 1Q17, compared to BRL 103, in 1Q16. Costs of infrastructure implementation services are in line with the variation in infrastructure revenue, with a concentration on the application of materials, as follows: Infrastructure Implementation costs Personnel (5,240) (5,800) Third-party services (5,250) (10,029) Materials (59,264) (4,487) Other - (1,990) (69,754) (22,306) The change in operating and maintenance costs is focused in: (i) personnel, due to a 9.3% increase in wages in July 2016, (ii) services, due to expenses with general maintenance equipment; and (iii) other costs, mainly due to the correction of IPTU property tax values. O&M Costs Personnel (55,998) (53,621) Third-party services (15,466) (14,630) Materials (1,439) (2,984) Rent and lease (2,203) (2,646) Other (10,258) (7,491) (85,364) (81,372) General administrative expenses increased by 5.4% to BRL 37, in 1Q17, compared to BRL 35, in 1Q16, and is focused in: (i) personnel, an increase due to the 9.3% increase in wages in July 2016 added to the increase in personnel due to transfers between technical and administrative departments; (ii) offset by a reduction in lawsuits, a higher volume of agreements relating to labor claims and establishment of civil provisions in 1Q16. PAGE: 22 of 89

24 Performance Comments Financial results increased by 16.3%, totaling an expense of BRL 29, in 1Q17, compared to an expense of BRL 25, in 1Q16, due to a reduction in financial investment balances. Income and social contribution taxes increased to a total of BRL 98, in 1Q17, compared to BRL 25,350 in 1Q16, which accompanies the change in income. The effective rate of income and social contribution taxes, which was 26.9% in 1Q17, compared to 20.5% in 1Q16, increased as a result of the RBSE remuneration figures. As a result of the factors mentioned above, net income in 1Q17 totaled BRL 267,158.00, compared to BRL 98, in 1Q16. PAGE: 23 of 89

25 1. Operational Context 1.1 Corporate Purpose CTEEP - Companhia de Transmissão de Energia Elétrica Paulista ("CTEEP" or "Company") is a publicly-held company authorized to operate as a public electricity utility, having as its main activity the transmission of electric energy, which requires the planning, infrastructure implementation and operation and maintenance of transmission systems. Foreseen for the fulfillment of its functions are the application of resources and management of research and development programs regarding transmission of electricity and other activities related to the available technology. These activities are regulated and supervised by Brazil's National Electric Power Agency ("ANEEL"). The Company came from the partial spin-off of Companhia Energética de São Paulo ("CESP") and started its commercial operations on April 1, On November 10, 2001, it incorporated EPTE (Empresa Paulista de Transmissão de Energia Elétrica S.A., "EPTE"), a company arising from the partial spin-off of Eletropaulo (Eletricidade de São Paulo S.A.) In a privatization auction held on June 28, 2006 at the São Paulo Stock Exchange (BOVESPA), pursuant to Publication SF/001/2006, the São Paulo state government, until then a majority shareholder, sold 31,341,890,064 ordinary shares under its ownership, corresponding to 50.10% of the ordinary shares issued by CTEEP. The company who won the auction was Interconexión Eléctrica S.A. E.S.P. The Company's shares are traded on the Stock, Commodities and Futures Exchange (BM&FBovespa). In addition, CTEEP has an "American Depositary Receipts (ADRs)" program (Rule 144 A in the United States). The depositary of the ADRs is JPMorgan Chase Bank, and Banco Itaú S.A. is the custodian. In September 2002, the Company adhered to BM&FBovespa's differentiated Corporate Governance (Level 1) practices. The commitments assumed as a result of this adhesion ensure greater transparency from the Company towards the market, investors and shareholders, thus facilitating the monitoring of the Management's actions. The Company is a member of the Brazil 100 Index (IBrX 100), Mid Large Cap Index (MLCX), BM&FBOVESPA Value Index (IVBX2), Brasil Amplo Index (IBRA), Index of Shares with Differentiated Corporate Governance (IGCX), Trade Corporate Governance Index (IGCT), Electric Power Index (IEE) and BM&FBOVESPA Public Utility Index (UTIL). PAGE: 24 of 82

26 1.2 Concessions The Company and its subsidiaries have the right to directly or indirectly exploit the following Public Power Transmission Service concession contracts: Periodic Rate Revision Allowed Annual Revenue ("RAP") Utility Contract Stake (%) Term (years) Maturity Deadline Next Correction index BRL thousand Base Month CTEEP 059/ years 2018 IPCA 893,452 06/16 Subsidiaries Serra do Japi 026/ years 2020 IPCA 37,506 06/16 Pinheiros 015/ years 2019 IPCA 31,800 06/16 Serra do Japi 143/ n/a n/a IGPM 20,384 06/16 IEMG 004/ years 2017 IPCA 16,861 06/16 Evrecy 020/ years 2017 IGPM 13,367 06/16 Pinheiros 012/ years 2019 IPCA 10,410 06/16 Pinheiros 021/ years 2017 IPCA 5,971 06/16 Pinheiros 018/ years 2019 IPCA 5,577 06/16 Itaúnas 018/ years 2022 IPCA 47,200 06/16 Jointly controlled companies IEMadeira 013/ years 2019 IPCA 235,847 06/16 IEMadeira (**) 015/ years 2019 IPCA 209,821 06/16 IEGaranhuns 022/ years 2017 IPCA 93,505 06/16 IENNE 001/ years 2018 IPCA 40,907 06/16 IESul 016/ years 2019 IPCA 11,306 06/16 IESul 013/ years 2019 IPCA 5,564 06/16 Paraguaçu 03/ years 2022 IPCA 106,613 06/16 Aimorés 04/ years 2022 IPCA 71,424 06/16 (**) In May 2014, the 015/2009 concession contract facilities for the jointly-owned subsidiary IEMadeira were completed and delivered to the National Electrical System Operator (ONS) for testing. In June 2014, considering the existence of systemic and third-party restrictions, ONS issued the Partial Release Agreement (TLP) for provisional commercial operation. Due to the existence of impediments due to other agents (regarding the failure to complete joint studies of integrators in the ONS electrical study simulator), a reduction factor equivalent to 10% of the revenue associated to the contract has been applied. All of the above concession agreements provide for the right to indemnification on the assets linked to the concession at the end of its term. For contracts with periodic rate revision, the right to remuneration of investments in expansion, enhancements and improvements is provided for. PAGE: 25 of 89

27 Law nº /2013 On September 12, 2012, Provisional Measure 579/2012 (MP 579) was published, which regulated the extension of concessions for the generation, transmission and distribution of electricity, granted prior to the publication of Law n º of 1995, and achieved by Law n º of On September 14, 2012, Decree was published, which regulated MP 579. According to MP 579, energy generation, transmission and distribution concessions currently due or due in the 60 months following the publication of said MP, had the option of having the maturity anticipated to December 2012, with an extension at the discretion of the Concession Authority only once for a term of up to 30 years; however, for the transmission activity, the extension would depend on an express acceptance of, inter alia, the following main conditions: i) fixed income according to criteria established by ANEEL; ii) amounts established by indemnification of assets; and iii) submission to ANEEL's quality of service standards. On November 1, 2012, the Ministry of Mines and Energy (MME) published Interministerial Ordinance n º 580, in which the compensation amounts attributable to the Company were defined for the facilities energized as of June 1, 2000 (NI), to the amount of BRL 2,891, related to concession agreement n º 059/2001 (the only contract reached by said MP) and Interministerial Ordinance nº579, in which the new RAP amount was defined as from January 1, On November 29, 2012, Provisional Measure n º 591 (MP 591) was published, which amended MP 579 in order to authorize the Concession Authority to pay the amount related to the non-depreciated assets existing as of May 31, 2000 (SE). MPs 579 and 591 were converted into Law n º /2013 in January At the Extraordinary General Meeting ("AGE") held on December 3, 2012, the Company's shareholders unanimously approved the extension of concession contract nº 059/2001. On December 4, 2012, an addendum was signed for concession contract n º 059/2001 with the option to receive indemnification related to NI assets, being 50% in cash and 50% in installments, settled during the year 2015, while discussions regarding how to update (note 7) remained to be held. The Company filed, on August 13, 2014, the independent appraisal report related to the assets of SE, which totaled BRL 5,186,018.00, equivalent to the investments for the New Replacement Value ("VNR") and adjusted for the accumulated depreciation until December 31, At the 47 th Ordinary Public Meeting of the Board of Directors of ANEEL held on December 15, 2015, the value of these assets was approved at BRL 3,896, and subject to Order nº4036/2015, published in the Federal Official Gazette on December 21, In order to amend the decision of ANEEL's Board of Directors, the Company filed a petition on December 30, 2015 requesting that the Agency reconsider the value of these assets, which ANEEL is analyzing and supervising, and to give continuity to this process, on February 7, 2017, a supplementary inspection report was issued, which concludes the amount of BRL 4,094,440.00, with base date December 31, This amount depends on the approval of ANEEL's Board of Directors, therefore, there was no accounting recognition for any additional adjustment of this receivable on March 31, 2017 regarding the claim under discussion with ANEEL. On April 20, 2016, Ordinance n º 120 of the MME was issued, which determined that the amounts approved by ANEEL through Order n º 4036/2015 regarding SE's facilities, become part of the Regulatory Remuneration Base for electric power transmission utilities based on the 2017 rate definition process, for an estimated eight-year period. On October 6, 2016, ANEEL Technical Note n º 336/2016 was issued, which submitted a proposal for regulation as provided for in Ordinance n º 120 of the MME, and was submitted to Public Hearing n º 068/2016 approved by ANEEL's Board of Directors on February 21, 2017 through Normative Resolution n º 762. With the result of said Public Hearing, Technical Note n º 23/2017 was issued. The Technical Notes regulate the methodology for calculating the capital cost and calculating the RAP to be added related to the value of SE's facilities and determine amounts and terms of payment by utilities, as mentioned in note 7 (d). PAGE: 26 of 82

28 As disclosed in a material fact dated April 11, 2017 (note 33), an injunction was issued concerning a lawsuit filed by three business associations, which provisionally determines the exclusion of the "remuneration" portion provided for in article 15 paragraph 2 of Law n º /13 and consequent recalculation of rates by ANEEL. The Company, based on the opinion of its legal advisors, believes that this is a provisional decision that does not go against the Company's right to receive the due amounts related to RBSE assets and that these are assured by the Law. ANEEL Technical Note nº 032/2015-SRD/ANEEL ANEEL, at the Ordinary Public Meeting of the Board of Directors held on June 23, 2015, approved the opening of a public hearing for the period from June 29 to August 31, 2015, with the purpose of collecting additional input and information to analyze the proposed transfer of the so-called Other Transmission Facilities ("DIT") from electric power transmission companies to distribution companies, according to ANEEL Technical Note n º 32/2015 (Administrative Proceeding n º / ). DITs are characterized by facilities with an operating voltage lower than 230 kv and, according to paragraph 46 of said Technical Note, the proposed transfer contemplates part of these facilities, which, if it occurs, will result in the payment of indemnification to the affected transmission companies. In August 2015, the Company submitted its contributions to the Public Hearing, along with legal, technical and economic-financial opinions, challenging the grounds of ANEEL Technical Note n º 32/2015, as well as pointing out the consequences of the possible transfer of part of its DIT and definition of the criteria to be considered for preservation of the economic and financial balance of its concession, including revision of the criterion for calculating indemnification. Once the agents' contributions were received on December 7, 2015, Opinion n º 786/2015/PFANEEL/PGF/AGU of ANEEL's Deputy Attorney General was issued, questioning ANEEL's competence to promote the compulsory transfer of DIT from transmission companies to distribution companies, and suggests further deepening of the technical areas on the possible compromise of the economic and financial balance that this measure could cause on the transmission utilities' revenues. In light of the contributions received in Opinion nº 786/2015/PF-ANEEL/PGF/AGU, on April 26, 2016, ANEEL's Board of Directors decided to open a second phase of the Public Hearing, with a contribution period from April 28 to July 27, In this second phase, the scope of transfer was limited only to the DIT under exclusive use of distribution companies, but was still compulsory. In the period determined by ANEEL, the Company presented its contributions, together with legal, technical and economic-financial opinions, wherein the following arguments were presented in particular: (i) the need to maintain the economic balance of the transmission concession contract; (ii) the possible transfer of these facilities should be consensual rather than compulsory, through the establishment of "incentive regulation"; (iii) preserving in the transmission companies the assets that have a systemic function, thus avoiding, in the future, a possible return to the subject by considering the possibility of transfer of DIT with electric power optimization functionality. On February 13, 2017, ANEEL published Normative Resolution n º 758/2017, with the final result of Public Hearing n º 041/2015, which established the general conditions for incorporation of Other Transmission Facilities (DIT) by the distribution companies, and listed in its annex the facilities currently under concession by the transmission companies that meet the criteria and will be incorporated by the distribution companies in the first ordinary rate revision subsequent to January 1, According to Technical Note n º 170/2016, facilities not covered by MME ordinance nº 120/2016 and exclusively used by distribution companies were considered for the purpose of transfer, thus excluding shared DIT, those used by power stations or free consumers or those located in Basic Border Network substations. The 2016/2017 RAP cycle for these facilities is of the order of BRL 6 million, having a compensable amount as estimated under the Technical Note of approximately BRL 12.0 million. Any loss of revenue from the transfer of these DIT will be equivalent to the marginal operation and maintenance costs, which will be determined by ANEEL based on the rate revision. The resolution provides that DIT not listed in the annex may be transferred at any time by an agreement between the transmission company owning the facility and a connected distribution company, in which case the transfer must be submitted for prior approval by ANEEL. PAGE: 27 of 82

29 On February 23, 2017, CTEEP filed a reconsideration request, questioning the facilities listed in the annex to the Normative Resolution, as they would not meet the criteria established for transfer of the DIT. Auction nº 008/2011 (ANEEL) On June 10, 2011, the Extremoz consortium, consisting of CTEEP (51%) and Companhia Hidro Elétrica do São Francisco (Chesf) (49%), closed lot A of ANEEL auction n º 001/2011 held at BM&FBovespa, consisting of Transmission Line ("LT") Ceará-Mirim - João Câmara II, in 500 kv, having 64 km; LT CearáMirim - Campina Grande III, in 500 kv, having 201 km; LT Ceará-Mirim - Extremoz II, in 230 kv, having 26 km; LT Campina Grande III - Campina Grande II, having 8.5 km; Substation ("SE") João Câmara II, 500 kv, SE Campina Grande III, 500/230 kv and SE Ceará-Mirim, 500/230 kv. On July 7 of the same year, Extremoz Transmissora do Nordeste (ETN S.A.) was established, observing the same shareholding, in order to exploit the service granted. This project has an estimated investment of BRL 622 million and RAP of BRL 31.9 million, based on June Extremoz formalized with ANEEL on March 20, 2015, the intention of CTEEP to withdraw from the consortium. According Authorizing Resolution n º of May 20, 2015, ANEEL approved the transfer of corporate control, establishing the deadline for implementation of the operation within 120 days from the date of publication of the resolution. On December 10, 2015, approval was obtained from the Administrative Council for Economic Defense ("CADE"). On December 6, 2016, approval was obtained from ANEEL, pending authorization from the Ministry of Planning, Development and Management (DEST). 2 Presentation of quarterly information 2.1 Basis for preparation and presentation The individual quarterly information, identified as "Parent Company" and the consolidated quarterly information, identified as "Consolidated Companies", have been prepared and are presented in accordance with the accounting practices adopted in Brazil, which include the provisions contained in Brazil's Joint stock company Act, statements, interpretations and guidelines issued by the Accounting Pronouncements Committee ("CPC") and approved by the Brazilian Securities and Exchange Commission ("CVM"), which are in compliance with the IFRS standards issued by the International Accounting Standards Board (IASB) and show all the relevant information specific to the quarterly information, and only those which are consistent with those used by management. As there is no difference between the consolidated shareholders' equity and the consolidated income attributable to the parent company's shareholders included in the consolidated quarterly information prepared in accordance with IFRS and the accounting practices adopted in Brazil and the parent company's shareholders' equity and the parent company's income included in the individual quarterly information, the Company chose to present these individual and consolidated quarterly information in a single set, side by side. The Company has no other comprehensive income, except for the income for the year. The individual and consolidated quarterly information were prepared based on historical costs, except when noted otherwise, as described in the accounting practices below. Historical costs are based on the value of the consideration paid in exchange for assets. Non-financial data included in this quarterly information, such as volume and energy capacity, contractual data, projections, insurance and the environment, were not audited. The quarterly information was approved and authorized for disclosure by the Board of Directors on April 27, PAGE: 28 of 82