Companhia Paranaense De Energia · BMFBOVESPA:CPLE3
Companhia Paranaense De Energia — Energy Co of Parana — Q3 2017 Earnings Presentation
75 slides from Companhia Paranaense De Energia's earnings presentation, Jun 25, 2018
Slide 1: 3Q17 Results Conference Call
3017 Results Conference Call 12.01.2017 — 10:00 a.m (Brasilia time) Telephone (+1516) 300 1066 Code: COPEL Impairment reversal in RS158.1 million; Increase of 41.6% in Copel Distribuic&o’s EBITDA; Real decrease of 2.7% in manageable costs; Reduction of 35.2% in allowance for doubtful accounts; Join
Slide 2: 3Q17 key financial indicators
3017 2017 3Q16 Var.% 9mi7 oMi6 Var. % (ay (2) (@) (1/3) (a) (5) (4/5) Net Operating Revenues (R$ mi 3,643.7 3,173.2 2,914.1 25.0 10,113.9 9,804.7 3.2 Operating income (R$ million) 356.0 260.9 - 145 - 1,283.9 1,635.1 (21.5) Net Income (R$ million) 416.7 151.0 (111.8) - 985.0 982.9 0.2 Earnings per sh
Slide 3: Average Rates (R$/MWh)
Average Rates (R$/MWh) Sep-17 Jun-17 Mar-17 Dec-16 Sep-16 Power Purchase Average Rate - Copel Dis * 183.46 152.14 152.67 156.88 161.11 Retail Average Rate - Copel Dis* 404.99 379.77 384.19 380.27 379.04 Sales to Distributors Average Rate - Copel GeT® 211.03 208.36 205.10 187.18 186.66 Indicators Sep
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Slide 5: Participation in SANEPAR public offering as seller
* A mounts In addition, the Company will participate, as a seller, in the public offering of secondary distribution of deposit certificates of shares (“Units”), each representing one common share and four preferred shares, issued by Companhia de Saneamento do Paraná - SANEPAR, according to the docum
Slide 6: Net operating revenue
In the accumulated until September 2017, Copel's net operating revenue increased by 3.2%, mainly due to the result of sectorial financial assets and liabilities and the incresase of 15.1% in the revenue of electricity sales to distributors, mainly due to the registration of R$293.3 million in revenu
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Slide 8: Manageable costs
* A mounts (v) the 0.2% decrease in manageable costs, excluding estimated losses, provisions and reversals (versus an accumulated inflation of 2.5% in 12 months), mainly due to the 12.0% drop in costs with “pension and healthcare plans”, given the lower amount invested in the “post-employment plan”,
Slide 9: Operating costs and expenses, January to September 2017
From January to September 2017, operating costs and expenses totaled R$8,366.8 million (6.1% up). This result was mostly impacted by the 27.6% increase in electricity purchased for resale, caused by the higher GSF and the higher PLD and the 8.7% increase in “personnel and management”, mainly due to
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Slide 11: 2.5 Financial Result
* A mounts 2.5 Financial Result In 3Q17, financial revenues totaled R$247.8 million, 57.7% up over the R$157.1 million recorded in 3Q16, mainly due to the adherence to the Special Tax Regularization Program (PERT), which generated a financial revenue related to interest on taxes to be offset, record
Slide 12: 2.6 Consolidated Net Income
* A mounts 2.6 Consolidated Net Income In 3Q17, Copel recorded net income of R$389.8 million against a loss of R$111.8 million registered in the same period of 2016. Considering the accumulated up to September 2017, the net income was R$958.0 million, down 2.5% from R$983.0 million accumulated up to
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Slide 15: Loans, financing and debentures maturities
Loans, financing and debentures maturities are presented below:
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Slide 17: Consolidated net debt
Copel’s consolidated net debt (loans, financing, debentures, guarantees and endorsements, less cash and cash equivalents) and the net debt/EBITDA ratio are shown in the following chart:
Slide 18: Net Debt/EBITDA
Divida Liquida/LAIDA' (R$ milhdes) 40 2012 2013 2014 2015 2016 9M17 (@ Avais e Garantias fl Divida Liquida? — Divida Liquida/LAJIDA? —— Divida Liquida/LAJIDA* ‘EBITDA 12 months. / Considers equity in earnings of subsidiaries ? Not considered endorsements and guarantees. ? Considered endorsements and
Slide 19: Accounts Payables related to the Concession
Accounts Payables related to the Concession Use of Public Property It refers to the concession charges for the use of public property incurred since the execution of the project’s concession agreement until the end of the concession.
Slide 20: Lawsuits classified as possible losses
* A mounts The lawsuits classified as possible losses, as estimated by the Company and its controlled companies at the 3Q17, totaled R$2,567.7 million, 0.3% higuer than in December 2016 (R$2,559.9 million), distributed in lawsuits of the following natures: fiscal (R$846.6 million), regulatory (R$790
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Slide 22: Copel GeT recurring EBITDA 3Q17
Copel GeT's recurring EBITDA fell by 49.3% in 3Q17, totaling R$218.7 million, mainly reflecting higher costs with electricity purchased for resale (R$195.0 million in 3Q17 versus R$12.3 million in 3Q16) due to the lower GSF (62.2% in 3Q17, versus 82.8% in 3Q16) and the 5.6% increase in “charges of t
Slide 23: Copel GeT EBITDA 9M17
* A mounts In 9M17, Copel GeT’s EBITDA reached R$1,514.5 million, a 26.0% decline when compared to the same period of the previous year, mainly reflecting the non-recurring events related to the recognition of the RBSE reameasurement, which improved the result by R$771.3 million in 9M16, and the rec
Slide 24: Copel Distribuição and Copel Telecom results
In 9M17, Copel Distribuição recorded EBITDA of R$462.2 million, over the R$18.7 million recorded in the same period in 2016, mainly due to the 2.9% increase in the grid market and the reduction in the “provisions and reversals” line, mainly resulting from labor lawsuits and allowance for doubtful ac
Slide 25: Copel Telecom EBITDA until September 2017
* A mounts Until September 2017, Copel Telecom recorded a 17.6% increase in EBITDA compared to the same period of 2016, totaling R$109.8 million. Net income was R$45.9 million, 17.6% higher than the 9M16 (R$38.6 million). subject to rounding.
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Slide 27: 6. Power Market and Tariffs
6. Power Market and Tariffs 6.1 Captive Market – Copel Distribuição Copel Distribuição’s captive market energy sales totaled 4.729 GWh in the 3Q17, which represents a reduction of 10.6%. This decrease was influenced by the reduction in consumption of industrial and commercial classes, mainly due to
Slide 28: Notice to the Market IR 23/17
* A mounts For more details visit the Notice to the Market - IR 23/17 ( link ). subject to rounding.
Slide 29: Free market consumption and electricity sales
The result was mainly due to the 5.6% increase in industrial consumption in the free market in 3Q17, as a result of the improvement in industrial production in the state of Paraná - which in the last 12 months until September, 2017 showed a growth of 4.6%. The sectors that contributed most to the in
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Slide 32: Energy Flow - Copel Distribuição
GWh Energy Flow - Copel Dis 917 omi6 Var. % Itaipu 4,441 4461 (0.4) CCEAR - Copel Geracdo e Transmissao 63 116 (45.7) CCEAR — Other 7,873 9,988 (21.2) Angra 765 768 (0.4) ccGF 5,276 5,622 (6.2) Proinfa 377 435 (13.3) Elejor S.A 887 891 (0.4) Available Power 19,682 22,281 (11.7) Captive market 14,878
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Slide 34: Energy Flow – Copel Comercialização
Energy Flow – Copel Comercialização
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Slide 36: 6.6 Tariffs
6.6 Tariffs Sales to Distributors Average Tariff (CCEARs) – Copel Geração e Transmissão
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Slide 38: Sales to Final Customers Average Tariff Copel Distribuição
Sales to Final Customers Average Tariff Copel Distribuição
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Slide 40: Shareholders by share class
Thousand shares Shareholders Common % Preferred "A" % Preferred "B" % TOTAL % State of Parana 85,029 58.6 : : - : 85,029 31.0 BNDESPAR 38,299 26.4 : : 27,282 213 65,581 24.0 Eletrobras 1,531 1a : - : : 1,531 0.6 Free Floating 19,837 137 7 234 100,965 78.7 120,879 442 B3 18,639 129 7 23.4 70,090 54.6
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Slide 42: Stock performance January to September 2017
* A mounts From January to September 2017, Copel’s common shares (ON - CPLE3) and class B preferred shares (PNB - CPLE6) were traded in 100% 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 September 2017,
Slide 43: 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:
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Slide 45: Copel GeT concession extension for TPP Figueira
* A mounts 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 accepting the contractual terms and the rules that will govern any pr
Slide 46: Rio dos Patos plant and wind farms complex
Copel was designated as the interim operator of the Rio dos Patos plant (1.7 average MW of installed capacity and 1 average MW of assured power) after the final term of the concession, awaiting the MME's decision on ANEEL's recommendation for the extinction of the plant without the reversal of the a
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Slide 48: 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, according t
Slide 49: São Miguel do Gostoso I wind complex connection
* A mounts On June 17, 2017, the four wind farms comprising the São Miguel do Gostoso I Wind Complex were connected to the National Interconnected System (SIN). The Complex was able to start its operations in June 2015, when the construction of the complex was completed. Since then, the complex has
Slide 50: Colíder Hydroelectric Power Plant
* A mounts Colíder Hydroelectric Power Plant On July 30, 2010, under Aneel New Energy Auction no. 003/2010, Copel GeT was awarded the concession to explore the Colíder HPP for a term of 35 years, commencing January 17, 2011, the signing date of MME - Colíder HPP Concession Agreement no. 001/11. The
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Slide 52: Assets under Construction
* A mounts 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 1,813 km of transmission lines and 4 substations and will generate APR of R$298.9 million of which ref
Slide 53: 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
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Slide 55: Compact-Design Distribution Lines
* A mounts 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
Slide 56: 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
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Slide 58: 8.6 New Projects
8.6 New Projects Project Portfolio Copel holds interests in different power generation projects. When these projects go into commercial operation, they will add 327.3 MW of installed capacity to the Company's portfolio.
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Slide 60: Oil and Gas Exploration and Production
Oil and Gas Exploration and Production (Paraná Gás Exploração e Produção S.A) On November 28, 2013, in the 12th round of Bids of the National Petroleum Agency (ANP), the consortium formed by Copel (30%), Bayar Participações (30%), Tucumann Engenharia (10%) and Petra Energia (30%) (the latter acting
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Slide 62: Copel Distribuição customers and employees
* A mounts At the end of September, Copel Distribuição had 4,539,406 customers, representing a consumer-to-employee ratio of 773. Compagas, Elejor and UEG Araucária, companies in which Copel holds a majority interest, had 163, 7 and 17 employees, respectively. subject to rounding.
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Slide 75: Signature and forward-looking statements
A mounts s ubject to rounding. 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 / Jone