Companhia Paranaense De Energia · BMFBOVESPA:CPLE3
Companhia Paranaense De Energia — Energy Co of Parana — Q4 2019 Earnings Presentation
45 slides from Companhia Paranaense De Energia's earnings presentation, Mar 30, 2020
Slide 1: 4Q19 Results
4Q19 Results Conference Call (03.27.2020 - 10:00 a.m. (Brazilian time) Telephone (+1 646) 843-6054 Code: Copel tz at COPEL Para Energion 4Q19 Results Copel records EBITDA above R$1.0 billion in the forth quarter Dividend proposal (JCP) of RS 643 million (+ 69.9% vs. 2018) Financial leverage reductio
Slide 2: Net operating revenue and operating costs and expenses
In 2019, net operating revenue increased 8.8%, mainly reflecting (i) the 3.9% increase in the volume of energy sold to final consumers – highlighting the 10.9% increase of the industrial free market of Copel GeT and Copel Com – and the tariff readjustment of Copel Dis, positively impacting “electric
Slide 3: Personnel and management costs
“Personnel and management” costs increased by 20.5%, due to (i) the R$ 43.5 million provision for indemnities related to the voluntary dismissal and retirement program (PDI) and (ii) the 125.1% increase in provisions for the profit sharing program (PLR) arising from the improvement in the Company’s
Slide 4: 2019 operating costs and expenses
In 2019, operating costs and expenses totaled R$13,160.3 million, up 3.8%. The main reasons for this variation are (i) the 46.0% increase in “depreciation and amortization” due to the start of operations of the Colíder, Baixo Iguaçu and Cutia, as well as the higher volume in the depreciation of tele
Slide 5: EBITDA
2.4 EBITDA In 4Q19, earnings before interest, taxes, depreciation, and amortization reached R$1,043.7 million, 56.3% higher than the amount of R$667.7 million recorded in 4Q18. This result is mainly explained by (i) the 4.5% increase in the grid market, the tariff adjustment for Copel Dis (with an i
Slide 6: Accumulated 2019 EBITDA and financial result
In the accumulated in 2019, EBITDA grew 36.3% in relation to the previous year, while, disregarding the non-recurring effects, adjusted EBITDA increased 30.0% and, finally, eliminating the equity accounting effect, EBITDA would be 30.0% than that recorded in 2018. 2.5 Financial Result In 4Q19, the f
Slide 7: Tas a Tax as naa
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Slide 8: Main Accounts and Balance Sheet Changes
<0} 3. Main Accounts and Balance Sheet Changes The main accounts and changes in the Balance Sheet in relation to December 2018 are described below. Additional information can be found in the Notes to our Quarterly Information. 3.1 Main Accounts Cash, Cash Equivalents and Bonds and Securities On Dece
Slide 9: Assets Dec-19 balance sheet
RS'000 ‘assets Dec-19 Sep-19 Deis Var% Var.% w 2 @) (4/2) (ws) CURRENT 7,909,196 | 6,748,404 | 6,677,846 172 18.4 Cash and cash equivalents 2,941,727 2,026,390 1,948,409 45.2 51.0 Bonds and securities 3,112 1,403 124,862 1218 (97.5) Collaterals and escrow accounts a7 125 203 176 (27.6) Customers 3,1
Slide 10: Loans, financing and debentures maturities
Loans, financing and debentures maturities are presented below:
Slide 11: Consolidated net debt and net debt/EBITDA
Copel’s consolidated net debt (loans, financing and debentures less cash and cash equivalents) and the net debt/EBITDA ratio are shown in the following chart:
Slide 12: Net Debt by Subsidiary
Net Debt by Subsidiary The following table shows the gross debt and net debt of the subsidiaries:
Slide 13: Provisions for Legal Claims
Provisions for Legal Claims The Company is involved in a series of lawsuits in different courts and instances. Copel’s management, based on its legal advisors’ opinion, maintains a provision for legal claims for those cases assessed as probable losses. The balances of provisions for legal claims are
Slide 14: Lawsuits classified as possible losses
The lawsuits classified as possible losses (those that are not provisioned in the balance sheet), as estimated by the Company and its controlled companies at the end of December 2019, totaled R$ 3,456.9 million, 13.2% higher than amount registered in December 2018 (R$ 3,052.7 million), distributed i
Slide 15: Performance of the Main Companies: Copel GeT
4. Performance of the Main Companies 4.1 Copel Geração e Transmissão (Consolidated Result) Copel GeT reported an EBITDA of R$ 673.6 million in 4Q19, up 56.1% versus the R$ 431.5 million in 4Q18. This performance mainly reflects (i) the positive result in the equity pickup in the period (R$ 63.9 mill
Slide 16: Copel GeT manageable costs
Also, manageable costs, except for estimated losses, provisions and reversals, decreased by 55.8%, mainly due to the effect of the revocation of the law that instituted the Control, Monitoring and Inspection Rate of Exploration Activities and the Use of Resources (TCFRH), resulting in a positive eff
Slide 17: Copel GeT 4Q19 net income
In the fourth quarter of 2019, Copel GeT posted a net income of R$ 430.4 million, up 209.2% vs. the R$ 139.2 million in 4Q18.
Slide 18: Copel GeT 2019 results
In 2019, Copel GeT registered an operating revenue of R$ 4,029.1 million, up 11.1% YoY, while operating costs and expenses had a 1.9% decrease, totaling R$ 2,060.4 million in the period. Net income reached R$ 1,270.4 million and EBITDA totaled R$ 2,060.4 million, an increase of 45.9% and 30.7%, resp
Slide 19: Copel Distribuição personnel expenses
Excluding the provision for indemnities related to the PDI program, personnel expenses in 4Q19 increased by only 1.8% compared to the same period in 2018, a result that was lower than the 4.31% inflation (IPCA) for period and was essentially explained by the reduction in of 400 employees at Copel Di
Slide 20: Copel Distribuição provisions and variations
There was also a 70.7% increase in provisions, mainly due to the updated amount for collective labor claim The following variations are also noteworthy: (i) the 17.0% increase in “electricity sales to final customers” in 4Q19, which was mainly due to the energy tariff adjustment, valid since June 24
Slide 21: Copel Distribuição net income and EBITDA
Net income was of R$ 206.3 million in 4Q19, up 62.8% vs. R$ 126.7 million YoY. In 2019, Copel Distribuição reported an EBITDA of R$ 1,165.0 million, 45.7% higher than in 2018, mainly due to (i) the 17.7% increase in “use of the main distribution and transmission grid” resulting primarily from the re
Slide 22: Copel Telecomunicações
4.3 Copel Telecomunicações Copel Telecom had a negative EBITDA of R$ 12.2 million in 4Q19, versus a negative R$ 4.2 million in 4Q18, mainly due to the recognition of impairment, in the amount of R$ 6.4 million, and write-offs and remeasurement of amounts arising from the deactivation of telecommunic
Slide 23: Copel Telecom personnel and headcount
The personnel and management line totaled R$ 26.0 million in 4Q19, a 17.1% increase over 4Q18, due to a provision of R$ 2.1 million for the PDI program, while in 4Q18 this line was reversed by R$ 2.0 million, and an increase in provisions for profit-sharing (PLR). The number of employees was reduced
Slide 24: Copel Telecom net income
Net income for the quarter came in as a net loss of R$ 41.1 million, versus a net loss of R$ 12.8 million in 4Q18. The following table shows the main indicators of Copel Telecom:
Slide 25: Copel Comercialização (Copel Energia)
4.4 Copel Comercialização (Copel Energia) Copel Energia reported an EBITDA of R$ 96.6 million in 4Q19, which was significantly higher than the negative amount of R$ 8.6 million in 4Q18, mainly due to the positive result of R$ 105.7 million in the calculation of fair value on purchase and sale of ene
Slide 26: Copel Energia EBITDA excluding fair value
Excluding the effect of fair value on the purchase and sale of energy, EBITDA would have been negative by R$ 8.4 million, versus a negative amount of R$ 8.6 million in 4Q18.
Slide 27: Copel Energia 2019 EBITDA
In 2019, Copel Energia reported an EBITDA of R$ 202.4 million, versus a negative R$ 13.4 million in 2018, mainly due to the effect of R$ 204.9 million on the calculation of fair value in the purchase and sale of energy and the 30.1% increase in the volume of energy sold.
Slide 28: Investments (R$ million)
R$ million anny iaee Carried Carried Scheduled* Scheduled 2019 4qi9 2019 2020 Copel Geragio e Transmissio 8505 2504 975 865.2 HPP Colider 138.2 03 593 805 HPP Baixo Iguacu 249 149 18.1 258 TL Curitiba Leste-Blumenau 1472 365 196.1 1255 TLIbipor’-Londrina (Contract 060/2001) 13 13 00 585 Substation B
Slide 29: Energy flow (GWh)
GWh Captive Market 19,784 40.3% Concessionaires* 164 0.3% Electricity sales to distributor CCEE” 168 0.3% ‘Assignment MCSD EN* 1117 _ 2.3% ‘Total Available Power 49,068 Free Customers Purchased energy 6,861 29,960 61.1% : 12,361 ‘Supplied Energy : 5,533 17,484 35.6% 14.0% Losses and Differences 2,80
Slide 30: Shareholders
Shareholders ‘Common % Preferred "A Preferred"@” _% TOTAL % ‘State of Parand 85.029 536 - : - - 35.029 BNDESPAR 38299 264 : - 27.282 213 65.581 Eletrobras 1531 aa : : - : 1531 Free Floating 19.836 137 ” 235, 100.965 120878 83 19.187 132 7 235 69.783 29.046 NYSE 650 or . . 30973 31.623 LaTiBex - : .
Slide 31: Stock Performance (Jan - Dec/19)
‘Stock Performance (Jan - Dec/19) ‘Common (CPLES / ELPVY) Preferred "8 (CPLEG / ELP / XCOP) Total Dallysverage Total average Number of Trades 199,45] soa] 4,435,702 4499 wo Volume Traded 43,433,800) —+17536)-229434,700/ 925,140 Trading Value (RS thousand) 1973.95 7,960, 10,684077 23,081 Presencein T
Slide 32: Other Information: Human Resources
8. Other Information 8.1 Human Resources Copel’s workforce closed 2019 at 7,095 employees distributed. The table below shows employee number trends in the Company and its subsidiaries in the last four years:
Slide 33: Headcount 2016-2019
Headcount 2016 2017 2018 2019 ‘Geragao e Transmissio 1.680 1.734 1.660 1.620 Distribuigao 6.022 5.746 5.364 4.964 Telecomunicacées 660 649 47a 412 Holding 69 78 75 61 Comercializagao 30 38 34 38 Renovaveis 70 - : - TOTAL 8.531 8.245 7.611 7.095
Slide 34: os = oo
os 2 2 2 = 2 2 oo Other operating revenues 20,481 6,581 7,793 162.8 46,941 50,134 (6.4) OPERATING COSTS AND EXPENSES (655,500) (424,906) (481,608) 36.1 (2,060,360), (2,100,174), (19) INCOME TAX AND SOCIAL CONTRIBUTION ON PROFIT 16,954 (88,048) (91,974) . (333,262) (365,524) (8.8) — el eel ee es
Slide 35: es ae ae mae ees
R$'000 ee - = * >... es ae ae mae ees OPERATING COSTS AND EXPENSES (2,685,808) (2,450,193) (2,247,246) 19.5 (9,579,916) (9,474,473) 11 Electricity purchased for resale (1,498,088) (1,463,470) (1,206,814) 24.1 | (5,424,207) (5,577,719) (2.8) INCOME TAX AND SOCIAL CONTRIBUTION ON PROFIT 56523| (83,465
Slide 36: Income Statement
oom Statemen “ais 301s “ais Var 2015 Ear] Var 2 @ (ua) oO) (5) 4/5) [NET OPERATING REVENUES 102,099) 102,212) 105,948, (6)] aaii7s | aaa08 (oa) Revenues from telecommunications 101,367/ 101,641 —_104,286 (28)| 416950 399271 44 Other operating revenues 72 sr 1,662 (56.0) 4223/2237 (203) OPERATING COS
Slide 37: is var 2098 wis Vane
77 is var 2098 wis Vane senescent im ‘a (ys) a 3) cas) OPERATING REVENUES 53471) 375073 34] aaiogon|) 130162 350 Electricity sales to final customers 13275, 2308 732) 536283373037 a8 Electricity sales to distibutors 308489, 292.544 (7.7) 1068658 _967,268 os Other operating revenues 83,007 20 =| 2052
Slide 38: Assets - Dec-19 by subsidiary
RS'000 Geragioe EG . Sen oom re ‘Assets - Dec-19 Distribuicéo Telecom Compagas.—Elejor _, Comercializaco Wind Farms Marumbi SPCand Holding —_Eliminations Consolidated Transmissio nee Uirapuru SPC CURRENT 1,428,907 | 4,631,991 | 528,754 | 313,896, 80,079 80,788 229,630 541,711 55,751 | 1,018,427 | _(
Slide 39: Assets - Dec-18 by subsidiary
R$'000 Assets - Dec-18 Phares Distribuiggo Telecom Compagas.-—éElejor ne a comercializago. Wind Farms Paorvrtasret Holding _Eliminations Consolidated ‘CURRENT 1487257] 3971,915| 88239] 204,725] 80.990] 33,573 181,077 459,62 zaeis| 1170320] (1,022,830)| 6,677,846 Cash and cash equivalents 473498 | 63
Slide 40: Liabilities - Dec/19 by subsidiary
$000 Costa Oeste SPC, Liabilities - Dec/19 Saou Distribuigéo Telecom Compagas Elejor UEG Araucéria Comercializagio Wind Farms Marumbi SPC and Holding Eliminations Consolidated irapuru SPC CURRENT 1,949,980 2,469,159 88,294 236,190 85,647 91,066 168,016 266,997 23,526 958,871 (992,125) 5,345,621 Soci
Slide 41: Liabilities - Dec/18 by subsidiary
R$'000 Geracioe Costa Oeste SPC Liabilities -Dec/18 Tonia Distibuigo Telecom Compagas Elejor UG Araucéria Comercalizglo Wind Farms CoS O8S18 SPE Holaing Eliminations Consolidated ‘CURRENT 2,640,071 2,459,317 143,667 133,769 124,880 42,485 137,337 586,450 15,481 1,435,888 | (1,023,931)| 6,695,116 Soc
Slide 42: Income Statement 2019 by subsidiary
s'000 Geragao e Transmissio ure eee income Statement 2019 Distribuicdo Telecom —-Compagas. Elejor rouedria — Co™mercializago Wind Farms SP Mert Holding Eliminations Consolidated Generation Transmission Ptihciptay NET OPERATING INCOME 2,763,286 825,383 | 10,401,301) 421,173, 866,884, 218,421 52,216 1
Slide 43: Income Statement 2018 by subsidiary
Geragio e Transmisséo Income Statement 2018 Distribuicdo Telecom —--Compagas Elejor VEG Comercializagio Wind Farms SPC and Holding EM Consolidated Generation Transmission Assucsig Marumbi SPC Recassi NET OPERATING INCOME 2,567,806 897,950 | 9,972,442 | __ 421,408, 388,532 293,942 524 1,341,162 174,1
Slide 44: Income Statement 4Q19 by subsidiary
$'000 Geragioe erase TransiissBo ues Costa Oeste SPC, Income Statement 4Q19 Peas Distribuigso Telecom Compagas Elejor Arcuctia COmcializagSo. Wind Farms MarumbiSPCand Holding Eliminations Consolidated Generation Transmission Uirapuru sPc [NET OPERATING INCOME 937,479 | 696,804) 240,675 | 2,815,883]
Slide 45: Signature and Forward-Looking Statements
SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Date March 26, 2020 COMPANHIA PARANAENSE DE ENERGIA – COPEL By: / S / Daniel Pimentel Slaviero Daniel Pi