Companhia Paranaense De Energia · BMFBOVESPA:CPLE3
Companhia Paranaense De Energia — Energy Co of Parana — Q2 2023 Earnings Presentation
49 slides from Companhia Paranaense De Energia's earnings presentation, Aug 15, 2023
Slide 1: Results 2Q23
Slide 2: Conversion into Corporation - BRL 4.5 billion
Conversion into Corporation - BRL 4.5 billion Settlement of the offer carried out on August 11, 23 Price per share of BRL 8.25 Base Offer of BRL 4.5 billion Primary Offering of BRL 1.9 billion Supplementary Offer of up to BRL 678 million Capital stock increase to R$ 12.7 billion New Bylaws in effect
Slide 3: Listings and sustainability indices
isTeD Guarisex ISEB3 NYSE XCOP i es IBOVESPAB3 a Ais) see ia IGPTWB3 FTSE4Good “SE Be do Brasil 1CO2B3 on _CPLE | @= 'B3 LISTED N2
Slide 4: Non-recurring items neutralized in adjusted EBITDA
The non-recurring items that were neutralized for calculating the adjusted EBITDA are shown in the table below: RESULTS | 2Q23 3
Slide 5: 2Q23 non-recurring items and adjusted EBITDA
In 2Q23, the following non-recurring items were recorded: (i) impairment of generation assets in the amount of R$149.1 million, essentially related to UEGA; and (ii) R$22.1 million referring to the fair value (mark-to-market) of Copel Mercado Livre's energy purchase and sale contracts, amount determ
Slide 6: Net operating revenue and operating costs
In the first half, net operating revenue totaled BRL 10,890.4 million, an increase of 0.4% compared to the BRL 10,846.3 million recorded in the same period of 2022, with emphasis on the following variations: (i) increase in R$485.0 million (+20.5%) in “use of the main distribution and transmission g
Slide 7: Manageable costs
Manageable Costs 2923 2Q22 A% = tH23 aH22 a% Personnel and management 300713 232,880 23.1 725,883, 515205 40.9 Private pension and healthcare plans 67,235 66497 1 133,233 134582__(1.0) Material 20815 26948 (22.8) 41738 45184 (7.8) Third-party services 735,529 196.668 19.8 473086. 364598 29.8 Other c
Slide 8: Results by segment 2018 to Jun-23
2018 2019 2020 2001 2022 jun-23 = Geracio e Transmisséo sm DistribuigSo Others
Slide 9: Operating costs and PIS/COFINS credits provision
In the first six months, total operating costs and expenses reached R$9,102.0 million, 5.3% less than the R$9,609.2 million recorded in the same period of 2022. Without considering the impact of the provision for the allocation of PIS and COFINS credit in 1H22 (an increase of R$810.6 million), opera
Slide 10: Net income and debt
Considering the first half of the year, net income in 1H23 was R$943.2 million, compared to R$147.4 million in the first half of 2022. 1.7 Debt Copel's total consolidated debt amounted to R$16,307.7 million on June 30, 2023, a variation of 30.9% in relation to the amount recorded on December 31, 202
Slide 11: Adjusted Net Debt/EBITDA Adjusted
Adjusted Net Debt/EBITDA Adjusted
Slide 12: Debt Indexers
Debt Indexers Average cost: 9.52%
Slide 13: Amortization schedule
Amortization - R$ million Average term to maturity: 4.4 years
Slide 14: Weighted average cost and average term to maturity
Weighted Average Cost and Average term to maturity
Slide 15: Average term to maturity
38 38 28 33 38 zor 302i 02 soz 6021023203 mmm ace Average term to maturity (Years)
Slide 16: Investment program
1 Includes the "Transformação" program comprising the Paraná Trifásico, Rede Elétrica Inteligente and Confiabilidade Total. 2 Includes modernization of the GOC (Generation Operations Center), investments in substations/transmission lines and other projects. 3 Other Participations: includes Complexo
Slide 17: Generation and Transmission result drivers
This result mainly reflects: (i) decrease of R$ 118.5 million in electricity network availability revenue (TUST) and R$ 135.2 million in equity income, mainly explained by the reduction in remuneration on transmission assets, due to the lower variation in the IPCA in the period (0.76% in 2Q23 agains
Slide 18: Manageable costs - Copel GeT
RS‘000 Manageable Costs 2923 2Q22 0% 1H23 1H22 3% Personnel and management O7AI2 75883 284 229011 164264394 Private pension and healthcare plans 20,776 19985 40 41,220 40,176 26 Material 448 4933 (68) 8,946 2,428 6.41 Third-party services 73375 52329 402 ‘138,546 101,332 367 Other costs and expenses
Slide 19: Copel GeT net income and IFRS effect
Copel GeT recorded net income of R$79.7 million in 2Q23, a decrease of 84.2% compared to 2Q23. In the accumulated, net income increased from R$967.0 million in 1H22 to R$492.7 million in 1H23. This result mainly reflects, in addition to the items already discussed, the 11.6% increase in depreciation
Slide 20: IFRS effect in the Transmission segment
R$ million IFRS effect in the Transmission segment 2923 2q22 8% AHS 1H22 88% (AVIFRS revenue! 2203 333.4139) 515.7 6593 21.8) (O&M revenue and effective interest 2127 B12 G58) 5057 647.1219) Revenue and build margin 332 214 S72 718 643 105 Cost of construction (256) (193328 19) (26 171 @) Reaulatory
Slide 21: Map of Copel's assets in Brazil
Slide 22: Hydro and Wind Generation
3.2.2 Hydro and Wind Generation The energy generation of Copel Geração e Transmissão S.A. and its wind farms in 1H23 was 10,761 GWh, against 3,626 GWh in 1H22 (9,522 GWh in 1H22). The increase is due, for hydroelectric plants, to the improvement in weather conditions in the South Region and, for win
Slide 23: Thermal Generation
3.2.3 Thermal Generation TPP Araucária It is a natural gas generation plant with an installed capacity of 484.2 MW that operates in a combined cycle (two gas turbines and one steam turbine) and operates in the modality known as "merchant" in which the plant operates without sales contracts. of elect
Slide 24: GSF - Generation Scaling Factor
GSF - Generation Scaling Factor 104.3% 98.1% 101.6% 159% 99 99 105. 83.0% 79.9% Jan Feb Mar Apr May sun Source: CCE —2022 ——2023
Slide 25: Average Monthly PLD (South Submarket)
‘Average Monthly PLD (South Submarket) - RS/MWh 69.04 69.04 69.04 9,04 69.04 69.04 62.92 55.70 55.70 S570) 55.70 55.71 Jan Feb Mar Apr May jun Source: CCEE 2022, —2023
Slide 26: Transmission RBSE revenue flow
The Concession Agreement 060/2001 represents 42.3% of the annual permitted revenue (APR) of Copel GET's transmission business, also considering its affiliates. Below, we describe the flow of receipt of the portion of revenue referring to the Basic Grid - Existing System (RBSE) for the next cycles. I
Slide 27: Manageable costs analysis
Manageable costs, excluding provisions and reversals, increased 19.9% compared to 2Q22, mainly as a result of: (i) 31.4% increase in personnel, due to the effects of the provision for PIS/COFINS in 2Q22 which significantly reduced PLR and PPD in that period; (ii) 15.0% from third-party services, due
Slide 28: Personnel and management expenses
The personnel and management account, excluding the effects of indemnities of the Collective Bargaining Agreement, provisions for profit sharing (PLR) and performance bonuses (PPD), and provision for indemnity for incentivized dismissals (PDI), recorded an increase of 0.6%, below the 7.19% salary ad
Slide 29: Main indicators
bs cadmeson Main Indicators 2923 2q22A% HB 122 2% Net Operating Revenue (RS milion) 36293 3260125 7,161.5 67480 A Operating Costs and Expenses (RS milion) G3207 771.8) (120) 6559.5) (6967.2) 69) Operating Income (RS milion) 2159 (1,586.7) 396.2 (1238.1) 2 Net income (RS milion) 1615 (1,007.8) 301.2
Slide 30: Regulatory EBITDA
Note: Regulatory EBITDA is calculated based on the WACC + QRR values published in ANEEL's Technical Notes in Tariff Revision or Adjustment events.
Slide 31: Distribution market by consumer class
The 2Q23 result is due to the consumption of electricity by the following classes: i) Residential with an increase of 8.8%, mainly due to the increase of 1.9% in the number of consumers and the increase in average consumption in the period, from 158.51 kWh/month to 169.5 kWh/month, due to the increa
Slide 32: Concession Agreement
4.2.3 Concession Agreement In December 2015, the Company signed the fifth amendment to the Public Service Concession Agreement for Electricity Distribution No. 46/1999 of Copel Distribuição SA, which extends the concession until July 7, 2045. Copel Distribuição complied with the conditioning require
Slide 33: DEC quality indicator
DEC (Neasured in hour and cantesimatat hour) 8.35 zoe 20252028 mmcffective —Regulatory Target
Slide 34: Economic-financial management efficiency criterion
The economic-financial management efficiency criterion will be measured by the calculation, each calendar year, according to ANEEL Normative Resolution No. 896/2020, by the following inequation:
Slide 35: Total losses versus regulatory level
jun-19 un-20 sun:24 tun-22 jun-23 Total Losses/Power Grid -% Regulatory Level -%
Slide 36: Copel Mercado Livre results
In the quarter, the main adjustment between the periods was the fair value (mark-to-market) of energy purchase and sale contracts - amount determined by the difference between the contracted price and the future market price estimated by the Company - a result, mainly, of the execution of contracts
Slide 37: Personnel costs
Excluding the effects of PLR and PPD, the personnel account decreased by 0.5% in 2Q23 compared to 2Q22, below the 7.19% salary adjustment that took place in January/23. In the accumulated result for the year, personnel costs increased 27.9% compared to 1H22 due to the indemnity for the cessation of
Slide 38: Main indicators
arden’ Main Indicators 2023 2922 0% 1H23 sH22 a% Net Operating Revenue (RS million) 9152 wieat 214) 2.0319 23481 (13.5) Operating Costs and Expenses (RS million) (053) (0,137.9) 204) 1.9235) 2.3212) (17.1) Operating Income (RS milion) 192 33.9 (43.3) 126.2 409 = Net Income (RS milion) 173 224 @27) 8
Slide 39: Slide 39
Slide 40: Customers/Contracts
Costumers/Contracts 4, 4s, ae oi madd mar20.0 mar? mand? mare23
Slide 41: Environmental Indicator
Environmental Indicator —— 2021 2022 A% Renewable sources (% Installed capacity) 93.8 93.8 - Renewable sources (% Energy generated) 912 99.2 88 GHG Emission scope 1 (tCO2)* 153777 50,8344 2306 GHG Emission scope 2 (tcO2)* 451,356.9 163,700.8 (63.7) Scope 1 refers to direct greenhouse gas emissions f
Slide 42: Social Indicator
Social Indicator Carried 2021 2022 0% Women at Copel (% Copel employees) 222 216 28) Women at Copel (% Contractors} 105 126 204 Frequency of occupational accidents - TF (% Company employees) 18 18 - 74 66 Go.7 Frequency of occupational accidents - TF (% Contractors) TFIFR: Frequency rate of occupati
Slide 43: List of Exhibits
RESULTS List of Exhibit CONSOLIDATED RESULT BY ENERGY OPERATIONAL RESULTS SUBSIDIARY MARKET DATA
Slide 44: Shareholder structure
Common otter % < state of Parans 70% Free Floating 169% BNDESPAR 2%
Slide 45: Results 2Q23
RESULTS | 2Q23 33
Slide 46: Resources (average MW)
2,742 2125 2023 RESOURCES (average MW) 2128 2024 m Own Resources GeT 2,154 2,153 i - su 5a 1,606 1.609 2025 2026 m Own Resources SPP and Wind Farm m Purchases 1.588 2027
Slide 47: Comments
Comments: 1- Excluding losses and internal consumption. 2- Considering the GFs of wind SPEs constant for all periods. 3- Considering the Sales of wind SPEs constant for all periods. 4- Considering energy purchases in each period. 5 - Prices updated according to the contractual readjustment index, fr
Slide 48: Total Available Power
331 34.156 ‘Total Available Power 32.695 wn Free Cunomers 2,921_23.0% ‘Supplied Enerey 4.902 38.6% U Contratos Bilaterais 2,337] coer: 1,368] eR: 228) ccee (mer: 297] ae: 2 Tomerand Differences 2159 _-1.3%
Slide 49: Notes
Notes: CCEAR: Energy Purchase Agreements in the Regulated Market. CER: Reserve Energy Agreements. MRE: Energy Reallocation Mechanism. CCEE (MCP): Electric Power Trade Chamber (Short-term market). CG: Center of gravity of the Submarket (difference between billed and energy received from CG). ¹ Other: