Companhia Paranaense De Energia · BMFBOVESPA:CPLE3
Companhia Paranaense De Energia — Energy Co of Parana — Q1 2017 Earnings Presentation
65 slides from Companhia Paranaense De Energia's earnings presentation, Jun 25, 2018
Slide 1: 1Q17 Results
1Q17 Results
Slide 2: Copel records EBITDA of R$1,006.1 million in the 1Q17
Copel records EBITDA of R$1,006.1 million in the 1Q17 Y" Net income of R$417.3 million in 1017; 1017 Results Conference Call Y Dividends of R$506.2 million referring to 2016 - 50% of payout; VY Grid Market grows 3.5% in 1017; Jephone 16) 300 1 ¥ R$587.6 million of capex carried in 1Q17; PEL v New cr
Slide 3: way agae
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Slide 4: Fiscal Council composition
The Fiscal Council, which is composed of five sitting members and five alternate members, is now composed as follows:
Slide 5: 2.2 Operating Costs and Expenses
2.2 Operating Costs and Expenses In 1Q17, operating costs and expenses totaled R$2,507.7 million, 9.5% down, reflecting the (a) reduction of 10.3% in "electricity purchased for resale", mainly due Itaipu, due to the lower dollar exchange in the period (R$3.15/US$1.00 in the 1Q17 versus R$3.90/US$1.0
Slide 6: Operating costs and expenses reduction in grid charges
Operating costs and expenses were also impacted by a 36.1% the reduction in "charges of the main distribution and transmission grid" due to the lower costs with system service charges (ESS), given the lower thermal dispatch outside the merit order.
Slide 7: System Service Charges ESS
"system Service Charges ESS [FIPS / Pasep and Cofins taxes on charges for use of power grid _07731) (20882), (35.1) TOTAL 69914 184689 264,681 86.1)
Slide 8: Operating Costs and Expenses
Som ary agie—~—~«GIe (Va Operating Costs and Expenses =~ =“ a 2 @ (4/3) ‘learicity purchased for resale 14076,508 | 1255227 | 3,193,871] (103) ‘Charge ofthe main distribution and transmission grid 368,013 | @62) Personnel and management 113 ‘Pension and hesitheare plans 50863) Materas and supplies 2
Slide 9: Sanepar investment reclassification
Due to the conversion of common shares into preferred shares issued by Sanepar and held by Dominó Holdings, the Shareholders' Agreement, signed between the state of Paraná and Dominó Holdings, was automatically terminated. As a result, Copel no longer classifies its investment in Sanepar as an affil
Slide 10: 2.5 Financial Result
2.5 Financial Result In the 1Q17, the financial income totaled R$163.6 million over the R$206.2 million in the 1Q16, mainly reflecting the lower income from financial investments, resulting from the drop in the Selic rate (average of 12.7% in the 1Q17 vs. 14.15% in the 1Q16), the lower income and mo
Slide 11: 2.6 Consolidated Net Income
2.6 Consolidated Net Income In 1Q17, Copel recorded net income of R$417.3 million, 208.5% higher than the R$135.2 million registered in the same period of 2016.
Slide 12: Consolidated Income Statement
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Slide 13: Assets
Assets Bonds and securities Dividends receivable {CRC transferred to the State of Parand ‘Account receivable related to concession (Other current receivables Income fax nd socal contribution Other current recoverable taxes Prepaid expenses Related parties NON-CURRENT tong Term Asses, Bonds and secur
Slide 14: Loans, financing and debentures maturities
Loans, financing and debentures maturities are presented below:
Slide 15: Transmission companies table
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Slide 16: EBITDA and leverage notes
¹EBITDA 12 months. / Considers equity in earnings of subsidiaries ² Not considered endorsements and guarantees. ³ Considered endorsements and guarantees.
Slide 17: Lawsuits classified as possible losses
The lawsuits classified as possible losses, as estimated by the Company and its controlled companies at the 1Q17, totaled R$2,540.9 million, 0.8% lower than in December 2016 (R$2,559.9 million), distributed in lawsuits of the following natures: fiscal (R$ 788.0 million), regulatory (R$787.0 million)
Slide 18: 4.1 Copel Geração e Transmissão
4. Performance of the Main Companies 4.1 Copel Geração e Transmissão In the 1Q17, Copel GeT's operating income increased 42.8% to R$1,073.5 million and mainly reflects the recognition of R$224.6 million in the revenue "use of the main transmission grid (TUST)" as a result of Aneel's approval of the
Slide 19: Copel GeT's Adjusted EBITDA
Copel GeT’s - Adjusted EBITDA Excluding non-recurring effects of the period, EBITDA Copel GeT would be R$519.3 million, 14.0% higher than recorded in same period in 2016.
Slide 20: 4.2 Copel Distribuição
4.2 Copel Distribuição In the first quarter of 2017, the operating revenue of Copel Distribuição decreased by 3.9%, reaching R$2,004.3 million. This result was mostly due to the 31.8% decrease in the electricity sales to final customers, from the 11.3% drop in Copel Distribuição's captive market in
Slide 21: 4.3 Copel Telecomunicações
4.3 Copel Telecomunicações The operating revenue of Copel Telecomunicações reached R$87.7 million in the 1Q17, a 12.3% growth, and mainly reflects the expansion of the area of operation and the service to new customers. The operating costs and expenses increased 14.1%, reaching R$65.5 million. This
Slide 22: Copel Telecom financial indicators
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Slide 23: Partnerships
R000 Partnerships - Mar-t7 Total Assats “Starsholders’ —NEEOPF Net income Equity Revenues Parent Company (Consoldated) ‘Companhia Paranaense de Gés -Compagés 528,178 311,425 123,704 14,797 Elejor ~ Contras Eltrcas do Rio Jordo SA. 702,970 62,704 68.757 19845 UEG Araucéria Lida 487,873 422,541 = (240
Slide 24: 6. Power Market and Tariffs
6. Power Market and Tariffs 6.1 Captive Market – Copel Distribuição Copel Distribuição’s captive market energy sales totaled 5,336 GWh in the 1Q17, which represents a reduction of 11.3% in compared 1Q16. This decrease was influenced by the reduction in consumption of industrial and commercial classe
Slide 25: Notice to the Market reference
For more details visit the Notice to the Market - IR 11/17 ( http://ri.copel.com/enu/8713/bri11_17ing.pdf).
Slide 26: 6.3 Electricity Sales
6.3 Electricity Sales Electricity sales to final customers, comprising Copel Distribuição’s sales in the captive market and Copel Geração e Transmissão and Copel Comercialização sales in the free market, fell by 5.6% in the 1Q17. The table below breaks down energy sales by consumption segment:
Slide 27: Energy Sold (GWh)
Energy Sold (GWh) Segment Market 1017 1ai6 Var. % Residential 1,898 1781 6.6 Total 2,038 2,485 (18.0) Industrial Captive 397 1,607 (44.2) Free 1141 878 30.0 Total 1,336 1419 (5.8) Commercial Captive 1,300 1417 (3) Free 36.00 2 - Rural 630 614 2.6 Other 611 597 23 Energy Supply 6,513 6,896 (5.6)
Slide 28: Number of Customers / Energy Sold
Number of Customers / Agreements Energy Sold (@Wh) Mori? Mar-l6Var.% | -‘1Q17_—*1Q16 _Var.% Copel DS “Coptive Market 4501853 4,498,716 5336 6016 ‘Concessionaries andLicensees 4 4 - CEE (MCP) : : : 591358 65.1 Total Copel DIS 4501857 4438720 14 6053 6536 (7.4) 16692031 (17.8) Bilateral Agreements * ‘
Slide 29: Energy Flow - Copel Dis
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Slide 30: Energy Flow - Copel GeT
Energy Flow - Copel GeT 1017116 var. 96 | 3 1803 3086 27.6) as7_| (a7)
Slide 31: Energy Flow - Copel Comercialização
Energy Flow – Copel Comercialização
Slide 32: 6.6 Tariffs
6.6 Tariffs Sales to Distributors Average Tariff (CCEARs) – Copel Geração e Transmissão
Slide 33: Average tariff R$/MWh
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Slide 34: Retail distribution average rate
Retail distribution average rate ‘Does nat consider tanfffage. NetoficMs.
Slide 35: Shareholder structure
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Slide 36: Copel share performance
From January to March 2017, Copel’s common shares (ON - CPLE3) and class B preferred shares (PNB - CPLE6) were traded in 95% of the trading sessions of the B3 S.A. - Brasil, Bolsa, Balcão (B3). The free float accounted for 45.0% of the Company’s capital. At the end of March 2017, the market value of
Slide 37: 7.3 Dividends and Interest on Own Capital
7.3 Dividends and Interest on Own Capital The table below presents the payments of dividends and interest on own capital as of 2011:
Slide 38: Dividends payment table
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Slide 39: Copel GeT agreement with Aneel on TPP Figueira
On March 24, 2017 Copel GeT filed an agreement with Aneel with its intention to extend the granting of the TPP Figueira, noting, however, that it will sign the necessary contracts and/or additives only after knowing and
Slide 40: Rio dos Patos facility and wind farms
With respect to the Rio dos Patos facility, we are currently in charge of the facility on a temporary basis awaiting the decision of the MME on Aneel's recommendation for the extinction of the Rio dos Patos. The operation has been suspended since September 2014 as a result of a flood damage occured
Slide 41: Wind farms generation data
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Slide 42: Interest in Wind Farms
Interest in Wind Farms Copel has 49% interest in the Voltalia São Miguel do Gostoso I Participações S.A. wind farm complex, in the State of Rio Grande do Norte. Whose energy was sold in the Fourth Reserve Energy Auction by under twenty-year contracts, with supply beginning in July, 2015.
Slide 43: Wind farm construction completion
The construction works of these wind farms were concluded in April 2015 and they have been prepared to operate since then. However, commercial operations will only begin after completion of the works in the
Slide 44: Colíder Hydroelectric Power Plant
Colíder Hydroelectric Power Plant In July 2010, Copel won the Aneel auction for the 35-year concession to build and operate the Colíder Hydroelectric Power Plant, in the Teles Pires river, in the state of Mato Grosso. The Colíder HPP will have an installed capacity of 300.0 MW and is located between
Slide 45: 8.2 Transmission
8.2 Transmission Assets in Operation The chart below shows the transmission concession agreements and the design of the substations park and the transmission lines in operation:
Slide 46: Assets under Construction
Assets under Construction Copel GeT is substantially increasing its share of the transmission segment through own investments and partnerships in SPCs. The projects have a joint total of 1,881 km of transmission lines and 4 substations and will generate APR of R$306.3 million of which refers to Cope
Slide 47: 8.3 Distribution
8.3 Distribution Concession agreement In December 2015, the Company signed the fifth amendment to the Public Electricity Distribution Concession Agreement no. 46/1999 of Copel Distribuição S.A., extending the concession term to July 7, 2045. The concession agreement imposes economic and financial ef
Slide 48: Operating Data
Operating Data In the distribution business, Copel serves more than 4.5 million energy customers in 1,113 locations, belonging to 394 municipalities in State of Paraná and one in the State of Santa Catarina. Copel Distribuição operates and maintains the installations in the 13.8 kV, 34.5 kV, 69 kV,
Slide 49: Compact-Design Distribution Lines
Compact-Design Distribution Lines Copel Distribuição has continued to implement compact-design distribution lines in urban areas with a high concentration of trees surrounding the distribution grids. This technology reduces the number of trees cut down or trimmed, and improves the quality of power s
Slide 50: 8.4 Telecommunications
8.4 Telecommunications Copel Telecomunicações has an optical backbone, a high capacity intermunicipal transmission network, and the access, a customer service network. The access network can be multi-point (GPON) or point-to-point (conventional), thus connecting the customer to the network's transmi
Slide 51: Copel Telecomunicações Fiber Optic Network
Copel Telecomunicagées Fiber Optic Network
Slide 52: 8.6 New Projects
<0 <0} 8.6 New Projects Project Portfolio Copel holds interests in different power generation projects. When these projects go into commercial operation, they will add 692.5 MW of installed capacity to the Company's portfolio.
Slide 53: Estimated installed capacity and Copel stake
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Slide 54: Customers and employees
At the end of March, Copel Distribuição had 4,501,853 customers, representing a consumer-to-employee ratio of 754. Compagas, Elejor and UEG Araucária, companies in which Copel holds a majority interest, had 162, 7 and 16 employees, respectively.
Slide 55: Operating indicators
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Slide 56: Consolidated Cash Flow
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Slide 57: Income Statement - Copel GeT
Income Statement ey _ os o ‘OPERATING REVENUES 107358 876,089 751.715 28 Electricity salesto final customers wae 15748518756 1s "Electricity salesto distributors _ - _ 7 Use of themain transmission gid 2865 Construction revenue (Other operating revenues ‘OPERATING COSTS AND EXPENSES Electricity purc
Slide 58: Income Statement
Income Statement (OPERATING REVENUES Elearcity sales to final customers "Becricty sales to distributors "Use of the main lstribution gid ~ constructionrevenue "_Fairvalue of assets fromthe indemnity forthe concession 4.951 3,361, 2.660 a ‘Sectorial assets and liabilities result (ars7, 0am, (527200)
Slide 59: Income Statement - Copel Telecom
Slide 60: Liabilities - Dec-16
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Slide 63: Income Statement 1Q17 by segment
Slide 64: Slide 64
Slide 65: Signature
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 June 18, 2018 COMPANHIA PARANAENSE DE ENERGIA – COPEL By: / S / Jonel Nazareno Iurk Jonel Nazareno