Companhia Paranaense De Energia · BMFBOVESPA:CPLE3
Companhia Paranaense De Energia — Energy Co of Parana — Q4 2023 Earnings Presentation
47 slides from Companhia Paranaense De Energia's earnings presentation, Mar 1, 2024
Slide 1: Slide 1
Slide 2: Results Webcast
Results Webcast CPLE ISEB3 B3LISTEDN2 IBOVESPAB3 March, 1, 2024 | 10h BRT/ 8:00 a.m. EST Access Link IDIVERSAB3 ELP usteD Ico283 Ker RESULTS | 4923
Slide 3: Slide 3
Slide 4: Non-recurring items and adjusted EBITDA
Obs. Considers descontinued operations. The non-recurring items that were neutralized to calculate adjusted EBITDA are shown in the following table: [1] Due to the renegotiation of the hydrological risk in the ACR in 2016, which extended the validity period for plants with existing energy in the per
Slide 5: Non-recurring items recorded in 4Q23
In 4Q23, the following non-recurring items were recorded: (i) the partial reversal of impairment of generation assets in the amount of R$123.7 million, mainly explained by the reversal of R$105.1 million relating to HPP Colíder and R$24.1 million referring to HPP Baixo Iguaçu, due to the reevaluatio
Slide 6: Net operating revenue and operating costs
In 2023, net operating revenue totaled R$21,479.5 million, an increase of 4.6% compared to the R$20,535.3 million recorded in 2022, with emphasis on the following variations: (i) increase of R$1,173.4 million (+24.3%) in revenue from “Use of the main distribution and transmission grid”; (ii) increas
Slide 7: Personnel and management costs
Neutralizing the effects of provisions related to PPD and PLR, there is an increase of 1.1% in the quarterly comparison, despite the effects of ACT 2022/2024 with salary bonus in 4Q23 and salary adjustments of 7.19% in January and 4.51% in October of the current year. Considering the accumulated inf
Slide 8: Total operating costs and expenses in 2023
In 2023, total operating costs and expenses reached R$18,092.6 million, a value 4.9% higher than the R$17,254.6 million recorded in 2022, mainly justified by (i) higher expenses with personnel and management, due to (a) the provisioning of R$610.1 million in 2023 referring to the Voluntary Dismissal
Slide 9: Equity in earnings and financial results
It is worth mentioning that the company, in 2023, changed the method of accounting for the “monetary update on provisions for litigation” item, which was no longer recorded in the provisions and reversals line and began to form part of financial expenses. More information in Explanatory Note 28.1 of
Slide 10: Net income and consolidated debt
Considering the accumulated result for 2023, the net income recorded, considering discontinued operations, was R$2,327.2 million compared to R$1,149.3 million recorded in 2022. 1.7 Debt Copel's total consolidated debt, considering the results of continuing operations, totaled R$14,962.3 million on D
Slide 11: Adjusted Net Debt/EBITDA Adjusted
Adjusted Net Debt/EBITDA Adjusted
Slide 12: Debt Indexers
Debt Indexers Average cost: 8.72% RESULTS | 4Q23 7
Slide 13: Amortization schedule
Amortization - R$ million Average term to maturity: 4.0 years
Slide 14: Weighted Average Cost and Average term to maturity
Weighted Average Cost and Average term to maturity
Slide 15: Consolidated debt at end of 2023
Copel's consolidated debt at the end of 2023, considering the 4th issuance of simple debentures by Compagas in July 2023 in the amount of R$295.0 million, totaled R$15,246.5 million. RESULTS | 4Q23 8
Slide 16: Investment program notes
1 Includes "Transformation" Program composed of the Paraná Trifásico, Smart Grid and Total Reliability projects. 2 Includes the Facilities Modernization Plan - PMI. 3 Includes modernization of COGT (Generation and Transmission Operation Center), HPP GPS Parigot de Souza, SHPs Marumbi and Uirapuru, J
Slide 17: Non-recurring items for continuing operations
Regarding non-recurring items for continuing operations in 4Q23, the following were recorded: (i) the partial reversal of impairment of generation assets in the amount of R$123.7 million, mainly explained by the reversal of R$105.1 million relating to HPP Colíder and R$24.1 million referring to HPP
Slide 18: Personnel and management costs
Neutralizing the effects of provisions relating to PPD and PLR, there is an increase of 5.8% in personnel and management costs in the quarterly comparison, mainly due to the effects of ACT 2022/2024 with salary bonus (+R$ 5.2 million) in 4Q23 and salary adjustments of 7.19% in January and 4.51% in O
Slide 19: Copel GeT EBITDA and net income
In 2023, Copel GeT recorded EBITDA of R$3,466.6 with continuing operations, a decrease of 1.8% compared to 2022, mainly due to provisions for compensation from the voluntary dismissal program and compensation for the additional third of vacation, partially offset by (a) reversal of the impairment of
Slide 20: IFRS effect in the Transmission segment
3.1.1 IFRS effect in the Transmission segment For the calculation, an adjustment was made considering the effects of the application of CPC47/IFRS15 in the corporate statements in the transmission business. RESULTS | 4Q23 11
Slide 21: Operational Performance
3.2 Operacional Performance Copel is present in 10 states, operating in the generation and transmission business. In the Generation business, Copel GET operates a diversified park of hydroelectric, wind and thermal plants, totaling 6,966.7 MW of installed capacity and 3,156.6 average MW of assure en
Slide 22: Generation
3.2.1 Generation Copel's generating portfolio is made up of 94% of renewable sources, such as hydro and wind power. RESULTS | 4Q23 12
Slide 23: 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 2023 was 25,797 GWh (compared to 24,721 GWh in 2022). The increase is mainly due to the entry into commercial operation of Jandaíra Wind Farm and the acquisition of the Aventura and Santa
Slide 24: 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 25: Transmission
3.3 Transmission Copel has more than 9.6 thousand km of transmission lines in eight Brazilian states, considering its own assets and in partnership with other companies. In addition to building, maintaining and operating an extensive own energy transmission grid, Copel provides services to projects
Slide 26: RBSE revenue reprofiling notes
Note: Economic component: future values based on the 2023-2024 cycle (according to REH 3.216/2023 of 06/30/2023) Financial component: values published in REH 2847/21. Subject to review during the current cycle in view of the controversy in the methodology used to calculate these values by the regula
Slide 27: Copel Distribution manageable costs
Manageable costs, excluding provisions and reversals, increased by 17.8% compared to 4Q22, mainly as a result of: (i) the 24.3% increase in expenses with personnel and management, due to the provision of R$24,6 million for profit sharing (PLR) and performance bonus (PPD) in 4Q23, compared to the rev
Slide 28: Personnel and management account
The personnel and management account, excluding the effects of the provision of PDV, PPD and PLR, recorded a reduction of 2.7%, mainly due to the reduction of 54 employees, despite the effects of ACT 2022/2024 with bonus salary (+R$ 12.8 million) in 4Q23 and salary adjustments of 7.19% in January 20
Slide 29: In 4Q23, we also highlight
In 4Q23, we also highlight: RESULTS | 4Q23 15
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. RESULTS | 4Q23 16
Slide 31: Operational Performance: grid and captive market
4.2 Operational Performance 4.2.1 Grid Market (TUSD) Copel Distribuição's grid market, made up of the captive market, supply to concessionaires and licensees within the State of Paraná and all the free customers existing in its concession area, had a 10.0% increase in electricity consumption in the
Slide 32: 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 33: Losses
Losses 81% 2.1% a a 29% a 713% Total essay Power rds 7.6% a ogtanry Level 7.8% 73%
Slide 34: Adjustments and manageable costs
In the quarter, the adjustment in the periods was the fair value of the electricity purchase and sale contracts (mark to market) - amount determined by the difference between the contracted price and the future market price estimated by the Company - a result, mainly, of carrying out contracts that
Slide 35: Personnel and management account
The personnel and management account, excluding the PLR and PPD effects, recorded a 13.5% reduction in 4Q23, mainly due to the 12.8% reduction in the number of employees, despite the effects of ACT 2022/2024 with salary bonus (+R$ 0.2 million) in 4Q23 and salary adjustments of 7.19% in January 2023
Slide 36: Main Indicators
RS million Main Indicators 4923 4Q22,-A% 2023 2022 a% Net Operating Revenue (RS milion) 5,037.2 12793 (18.3) 4,056.9 49384 (17.8) Operating Costs and Expenses (RS milion) (1.0165) __(12174)_(165) 6.9483) (48147) (18.0) Operating Income (RS milion) 30.8 Tit (56.6) 1465 1560 (6.1) Net Income (RS milio
Slide 37: GWh sold
_ GWh sold A-9.5% 2019 2020 2021 2022 2023
Slide 38: Customers/Contracts
Costumers/Contracts 4 5 90, dect9 dec20 dec-21 dec-22 dec-23
Slide 39: Environmental Indicators
Carried Environmental Indicator aa aie Te a Renewable sources (% Installed capacity) 938 BB 941 03 Renewable sources (% Energy generated) 912 992 999 o7 153777 50,8344 81,6763 7 GHG Emission scope 1 (tC02)* GHG Emission scope 2 (tCO2)” 4513569 1637008 145.9064 (109) "Scope 1 refers to direct greerho
Slide 40: Social and safety indicators
Carried pecrshienrs 2024 2022 2023" A% Women at Copel (% Copel employees) 222 216 217 0a Women at Copel (% Contractors) 105 126 ahha 2) Frequency of occupational accidents - TF (% Company employees) 18 18 14 (22) Frequency of occupational accidents - TF (% Contractors) 14 66 49 (256) TFFR: Frequency
Slide 41: Carbon Disclosure Program (CDP)
CARBON DISCLOSURE PROGRAM (CDP) A- 2023
Slide 42: ICO2 B3
ICO2 B3 yes 2023
Slide 43: Results
RESULTS Ry 4
Slide 44: Common
Common
Slide 45: Resources (average MW)
RESOURCES (average MW) 2,718 2,714 2,675 2,634 2,622 Bo. 43 544 54a 544 544 2444 2,088 2,090 2,078 2024 2025 2026 2027 ™Own Resources GeT Own Resources SPP and Wind Farm _—sl Purchases
Slide 46: Sales (average MW)
SALES (average MW) 78 176.89 171.17 178.24 184,01 33% = - 2023 2024 2025 2026 2027 W™m—mSales (Regulated) mmmmSales(Free Market) mmm Total Available Avarege price of energy sold (R$) Comments: 1- Excluding losses and internal consumption. 2- Considering the GFs of wind SPEs constant for all periods.
Slide 47: Energy Flow Consolidated 4Q23
ENERGY FLOW CONSOLIDATED 4Q23 ENERGY FLOW CONSOLIDATED 2023 ‘Captive Market 20,173 33.6% Bectricity sales to distributor CEE 164 03% rot at Available Power| 59973 "Assiarment MCSD EN" 247 _ 0.4% CEE VEY 0 00% own ny Captive Markee J 8,087 _ 48.1% h | 5,321_ 315% 25,797 43.0% |_| 7 a J 23 0% |_| Gear