Companhia Paranaense De Energia · BMFBOVESPA:CPLE3
Companhia Paranaense De Energia — Energy Co of Parana — Q1 2023 Earnings Presentation
43 slides from Companhia Paranaense De Energia's earnings presentation, Jun 8, 2023
Slide 1: Results 1Q23
RESULTS pre | % COPEL af aN co De Som
Slide 2: Listed indexes and exchanges
juisTED Guamaex ISEB3 NYSE XCOP ji sree IBOVESPAB3 a 4 (is Sree, IGPTWB3 FISEAGood =e ote = ICO2 BS _CPLE_ = BS LISTED N2
Slide 3: EBITDA adjusted
22 os EGA commer 1618 EBITDA adustes 1023
Slide 4: Non-recurring items highlights
We highlight the non-recurring items referring to (i) indemnity of R$138.2 million related to the additional third of vacation bonus, paid in January 2023, after a collective agreement signed with employees. Such indemnity, of a compensatory nature, ceases the payment of additional benefit related t
Slide 5: 1.3 Operational costs and expenses
1.3 Operational Costs and Expenses In 1Q23, operating costs and expenses totaled R$4,420.5 million, a decrease of R$2.4% compared to the R$4,530.0 million recorded in the same period of 2022, mainly due to: (i) the decrease of R$126.7 million in the “provisions and reversals” line (reversal of R$10.
Slide 6: Personnel and management expenses
(i) the 50.6% increase (+R$142.8 million) in expenses with “personnel and management”, mainly due to the indemnity related to the additional third of vacation bonus, paid in January 2023, after a collective agreement signed with employees. This indemnity, of a compensatory nature, replaced the benef
Slide 7: Third-party services and other costs
(ii) the 41.5% growth (+R$69.6 million) in third-party services, mainly due to higher expenses with maintenance of the electrical system and installations, consulting services and customer service and call center. It is worth noting that third-party services were also impacted by the acquisition and
Slide 8: Headcount evolution
2018 2019 2020 2004 2022 Mar-23 1 Geracio ¢ Transmisséo mothers
Slide 9: 1.4 Equity in Earnings and Financial Results
1.4 Equity in Earnings of Subsidiaries The equity result of joint ventures and other Copel affiliates was 7.7% lower than that recorded in the same period of the previous year (R$104.1 million, compared to R$112.8 million recorded in 1Q22), in due to the lower remuneration on transmission assets, ba
Slide 10: 1.7 Debt
1.7 Debt Copel's total consolidated debt amounted to R$14,726.7 million on March 31, 2023, a variation of 18.2% in relation to the amount recorded on December 31, 2022, of R$12,454.2 million. At the end of 1Q23, the Company's gross debt represented 67.6% of consolidated shareholders' equity, which w
Slide 11: Debt by subsidiary
RS'000 RS mil GeT Dis Others Total Total debt 6905486 4895073 2,926,144 14,726,703 Availability 859,172 314461 2,083,011 3,256,644 Adjusted Net Debt 6,046,314 4,580,612 843,133 11,470,059 ‘Average Cost 10.74% 11.45% 9.71% 10.47% Duration (years) 28 25 39 3A
Slide 12: Debt indexers average cost
Debt Indexers Average cost: 10.47%
Slide 13: Amortization schedule
Amortization - R$ 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
tort naz saatS nantes sa tana mmmmwace Average term to maturity (Yeas)
Slide 16: Investments by subsidiary
R$ million Subsidiary / SPC Carried 1Q23 _ Scheduled 2023 Copel Distribuicao ' 477.1 1,878.9 Copel Geracao e Transmissao 67.8 274.9 Generation 14.4 117.7 Jandaira Wind Complex 0.1 7.0 Hydroelectric Power Plants 54 42.3 Wind Farms 0.4 45.9 Small Hydroelectric Plants 46 15.4 Plant Modernization Projec
Slide 17: Result drivers
This result mainly reflects: (i) the addition of results from new wind farms, with the entry into commercial operation of the Jandaíra Wind Complex in October 2022 (+R$11.7 million) and; the conclusion of the acquisition of the Aventura and Santa Rosa & Mundo Novo Wind Complexes on January 30, 2023
Slide 18: Personnel expenses neutralizing indemnity
Neutralizing the effects of the indemnity of adittional third of vacation bonus, the provisions related to profit sharing (PLR) and performance bonus (PPD) and the provisions and reversals associated with the incentive dismissal program (PDI), there is a reduction of 1.9% in the quarterly comparison
Slide 19: Copel GeT net income
In 1Q23, Copel GeT recorded net income of R$413.0 million, a decrease of 10.9% compared to 1Q23. This result mainly reflects, in addition to the items already discussed, the increase in financial expenses, due to the higher amount financed and the increase in the CDI rate (3.22% in 1Q23 against 2.41
Slide 20: IFRS effect in Transmission
R$ million 1923 192% (A) IFRS revenue" 295.8 3262.4) ‘O&M revenue and effective interest 2330 315972) Revenue and build margin 384 a7 (20) Cost of construction G60) G33) 80 (8) Regulatory revenue! 2261 2017 105 (BA) Revenue Adjustment TRA IFRS/Regulato @ ais) ao “(47> Effects on Equity in Earnings i
Slide 21: 3.2.1 Generation
3.2.1 Generation Copel's generating portfolio is made up of 94% of renewable sources, such as hydro and wind power.
Slide 22: Installed capacity by source
Installed Capacity by Source Hydro Wind
Slide 23: 3.2.3 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 1A 98.1% 102.0% 95.0% 94.8% Jan Feb Mar Source: CCEE ——$022 023
Slide 25: 3.3 Transmission
3.3 Transmission Copel has more than 9.6 thousand km of transmission lines in nine 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 o
Slide 26: RAP notes and RBSE reprofiling
Note: Economic component: future values based on the 2022-2023 cycle (last ANEEL Resolution REH published) 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 regulatory a
Slide 27: Personnel and management account
The personnel and management account, excluding the effects of , provisions for profit sharing (PLR) and performance bonus (PPD), and provision for indemnification for incentive dismissals (PDI), recorded an increase of 0.7% in 1Q23. the indemnity of additional third of vacation bonus
Slide 28: Distribution highlights 1Q23
In 1Q23, we also highlight: (i) the 25.0% growth in revenue from use of the main distribution grid, mainly due to the June 2022 tariff readjustment, with an average effect of a 16.5% increase on tariffs for the use of the distribution system (TUSD), partially offset by the reduction in the billed gr
Slide 29: 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 | 1Q23
Slide 30: 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 31: mafia ma/20 mar. smatfa2 malts
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Slide 32: Personnel account excluding profit sharing effects
Excluding the effects of profit sharing (PLR), performance bonuses and the indemnity of additional third of vacation bonus, the personal and management account recorded an increase of 12.3% compared to the amounts recorded in 1Q22, under the effect of the salary readjustment of 7.19%.
Slide 33: Main indicators
RS milion ‘Main indicators 1923 192 8% ‘Net Operating Revenue (&S milion) THe? 4184087) Operating Costs and Expenses (RS millon) (1.0182) (1,183.3) (140) ‘Operating income (RS milion) 1070 7 [Net income (R$ milion) 705 46 EBITDA (R$ milion) oat os Operating Margin 36% 06% Net Margin 63% ae EBITDA Ma
Slide 34: GWh sold
GWhsold mf fem ue —_ i Costumers/Contracts a1s% _ - 1.59
Slide 35: 6.4 Ratings, Rankings and Indexes
6.4 Ratings, Rankings, and Indexes Index Ranking Reference Year:
Slide 36: WCPP
Wcpp DISCLOSURE INSIGHT ACTION
Slide 37: ICO2 B3
ICO2B3
Slide 38: Granting bonuses for Foz do Areia, Salto Caxias and Segredo HPPs
Definition of Granting Bonuses for Foz do Areia, Salto Caxias and Segredo HPPs The Interministerial Ordinance of the Ministries of Mines and Energy and Finance – MME/MF No. 01, of March 30, 2023, established the value of the granting of electric power generation concession for the set of Hydroelectr
Slide 39: List of Exhibits
RESULTS » __List of Exhibit 0 m CONSOLIDATED RESULT BY ENERGY OPERATIONAL RESULTS SUBSIDIARY MARKET DATA
Slide 40: Common shares ownership
Common State of Parand 70% BNDESPAR 12%
Slide 41: Total shareholder structure
TOTAL Free Floating State of Parana 44% 31% 20%
Slide 42: 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 43: 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: