Companhia Paranaense De Energia · BMFBOVESPA:CPLE3
Companhia Paranaense De Energia — Energy Co of Parana — 4Q18 Earnings Presentation
67 slides from Companhia Paranaense De Energia's earnings presentation, Apr 1, 2019
Slide 1: 4Q18 Results
4Q18 Results Copel records EBITDA of R$757 million in the fourth quarter
Slide 2: 4Q18 Results
4018 Results Conference Call 03.29.2019 - 10:00 am (Brazilian time] Telephone (1.646) 243-6054 Code: COPEL EBITDA increased 45.0% in 4Q18 and 9.4% in 2018 (R$ 3,1 billion) Operating cash generation of R$369 million in 4018 (R$3.0 billion in 2018) Net Income of R$ 390.8 million in 4018 and R$ 1.4 bil
Slide 3: aca
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Slide 4: CPLE3 | R$29.80
CPLE3 | R$29.80 ELP | US$ 7.83 Market value | R$8.2 bi CPLE6 | R$30.55 XCOP | € 7.15 * Quotes 12.31.2018
Slide 5: PMSO costs increased 3.8%
PMSO costs, excluding estimated losses, provisions and reversals, increased 3.8%, mainly due to a provision referring to the deactivation of equipment infrastructure in Copel Telecom clients over the year, impacting the line of “other costs and operating expenses”, partially offset by the 9.9% decre
Slide 6: Operating costs and expenses in 2018
In 2018, operating costs and expenses totaled R$12,676.6 million, up 5.8%. This is mainly due to (a) the 65.3% increase in “charges of the main distribution and transmission grid”, mainly from higher expenses with charges to use the system - basic network, given the TUST adjustment in June 2018 and
Slide 7: 2.4 EBITDA
2.4 EBITDA In 4Q18, earnings before interest, taxes, depreciation and amortization reached R$756.6 million, up 45.0% over the R$521.7 million in 4Q17. This increase is mainly explained by (i) the improvement in hydrological conditions in the last quarter of 2018 vs. 2017, the average GSF was 81.9% (
Slide 8: 2.5 Financial Result
2.5 Financial Result In 4Q18, the financial result was a negative R$137.6 million vs. the negative R$230.5 million in the 4Q17. The result reflects the 10.7% improvement in financial revenues, mainly due to the updating of the Cost Variation Account (CVA) and a 20.0% reduction in financial expenses,
Slide 9: 2.6 Consolidated Net Income
2.6 Consolidated Net Income In 4Q18, Copel recorded net income of R$390.8 million, amount 3 times higher than the R$133.3 million registered in the same period of 2017. In the accumulated of 2018, the net profit increased 29.1%, closing the period in R$1,444.0 million.
Slide 10: Slide 10
Slide 11: Decis Sepa —~—«ecaT Va Va
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Slide 12: Loans, financing and debentures maturities
Loans, financing and debentures maturities are presented below:
Slide 13: Consolidated net debt and net debt/EBITDA
Copel’s consolidated net debt (loans, financing and debentures less cash and cash equivalents) and the net debt/EBITDA ratio are shown in the following chart:
Slide 14: Net Debt by Subsidiary
Net Debt by Subsidiary The following table shows the gross debt and net debt of the subsidiaries:
Slide 15: Lawsuits classified as possible losses
The lawsuits classified as possible losses (those that are not provisioned in the balance sheet), as estimated by the Company and its controlled companies at the end 4Q18, totaled R$3,066.3 million, 1.8% lower than in December 2017 (R$3,123.5 million), distributed in lawsuits of the following nature
Slide 16: oxi Seis
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Slide 17: Copel GeT EBITDA increased 14.8% in 2018
Copel GeT’s EBITDA increased by 14.8% in 2018, mainly due to the growth of 168.2% in income from equity accounting in the face of the effects of the tariff revision applied, as of June 2017, to transmission companies in which Copel GeT holds an interest, negatively impacting the equity income in 201
Slide 18: Extraordinary effects
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Slide 19: Copel Distribuição EBITDA of R$799.5 million
In 2018, Copel Distribuição recorded an EBITDA of R$799.5 million, a 39.5% bigher than 2017. This performance was mainly impacted by tariff adjustment of the distributor and the effort to reduce manageable costs. This improvement was partially offset by the 18.8% increase in provisions, as a result
Slide 20: Reported versus regulatory EBITDA
Compared EBITDA reported with regulatory EBITDA (R$1.0 billion), the performance was 23.4% down, due to manageable costs are above the tariff coverage. The following are highlighted: PECLD of R$22.9 million above the tariff coverage and accounting R$83.8 million in collective labor lawsuits and R$41
Slide 21: Copel Telecom EBITDA in 2018
Copel Telecom's EBITDA in 2018 reached R$110.4 million, down 17.4% compared to the performance recorded in 2017. While net income fell 54.8%, totaling R$24.4 million. 4.4 Accounting Information Accounting information concerning Copel’s interests in other companies in 4Q18 is shown in the following t
Slide 22: Accounting information on interests in other companies
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Slide 23: Investments by company
RS million ae Carried Caried Shedd 2018 ais 2019 Copel Geragio e Transmissio 7293 2303 7948 HPP Coliger 17.3 22 593 HPP Baixo lzuagu 7a 207 aga TL Curitiba Leste Blumanau 198,7 ea 1961 Ur Araraquara-Taubaté 55,2 as Substation Bateiss 169 78 113 Mats oa Santa Genabra Transmissic 430 aap 554 SHP Bela
Slide 24: 6.2 Grid Market (TUSD)
For more details visit the Notice to the Market - IR 05/18 ( link ). 6.2 Grid Market (TUSD) Copel Distribuição’s grid market, comprising the captive market, concessionaires and licensees in the state of Paraná, and all free consumers in the Company’s concession area , increased by 1.8% in terms of e
Slide 25: 6.4 Total Energy Sold
6.4 Total Energy Sold 1 Total energy sold by Copel in all markets, comprising sales by Copel Distribuição, Copel Geração e Transmissão, Wind Farm Complexes, and Copel Comercialização totaled 10,944 GWh in the fourth quarter of 2018, an increase of 9.4 %. The following table illustrates the total ene
Slide 26: Number of Customers / Energy Sold
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Slide 27: Energy Flow - Copel Dis
Energy Flow- Copel Dis 2018 mir Van. tip 5726 5938 5) (CLEAR ~Copel Gerapo eTransmisso 2 a 55 CEAR —Otner ross: | 3860 34 (CEE (MCP) 4 25 (242) fogs 1003/1023 (23) car 65207272 293) Proinfs 493 su (2) Eigjor SA aes | 1ass |. 9 ‘Available Power 2575126091 aa) eptivemarket ssssa_ 18743 (03) Concession
Slide 28: Energy Flow - Copel GeT
Energy Flow - Copel Get 201s 2017 Var. % Own Generation (netaf losses) yeors | 19583 | (2.6) Dons Francisc sa an - {Copel Comercializagz0 180 525 (3,4) other : 287 - Total Available Power 18350 20.638 9) Bilateral Agreements sau | 3427 | (285) Bilateral Agresmants - Copel Comerci 2422 2 - CER Agreem
Slide 29: Energy Flow – Copel Comercialização
Energy Flow – Copel Comercialização
Slide 30: Energy Flow - Copel Com
Energy Flow - Copel Com 2018 2017 Van.% Copel Get 2422 a7 : Other ai | 2688 | 55,1 CEE (MCE) 2 : : Total Avallable Power 65252671 | 1443 Free Customers 2096 mm | 1719 Bilateral Agreements 4223 1254 | 2368 Bilateral Agreements ~Copel Get 160 es 743) CCEE (MCP) 26 is | 44a
Slide 31: GWh
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Slide 32: Power Purchase Average Tariff – Copel Distribuição
Power Purchase Average Tariff – Copel Distribuição
Slide 33: Power purchase average tariff
—_ ‘Amount Decd8— Sep-18 —umed8 ——Var.% ——Var.% Average MW (1) @ @) an) a) iteipw 150 waes| zeta 2582 (a3) 3) ‘Auction ~ CCEAR 2010-30 742 p5it, 224502834 oa 26 ‘Auction ~ CCEAR 2010-T35* 550 waz, 205.55 268.87 7) a7) ‘Auction ~ CCEAR 2021 H30 555 w2is,2a2.gn 225.43 oa 25 ‘Auction ~ CCEAR 2011-7157
Slide 34: Retail distribution average rate
_ Dec Sepia Juni Var. aw 2) 8) (372) Indusval 767,87 4704841688, 632 Residential 505,08 soss7 453,86 9 commercial 527,31 5025345157 48 Rural 345,20 3634331337 o7 Other 375,99 assez 34988 a7 Retail detribution average rate 460992166 a7 “poss not consider ta Ff age NetcNS
Slide 35: Shareholders
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Slide 36: Shareholder composition
Slide 37: Share trading and market value
From January to December 2018, 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 69.0% of the Company’s capital. At the end of December 2018, the market v
Slide 38: 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 39: Dividend payments table
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Slide 40: Power Plants
Power Plants Installed Assured Power Generation Concession copacty (vw) (average mw) (Gh) eepkes Hydrosleatrierower Plants asa 1979.5 180095 HPP Gov. Bento Munhe ds Racha Netto (Fozde Arela) 1576.0 ous 4su2 opi7203 HPP Gov. Ney Aminthes de Eorros Braga (Sepredo) 1260.0 sms 57531 1115209 HPP Gov. Jor
Slide 41: Cutia wind farm and generation interests
Copel's largest wind farm, known as Cutia Empreendimentos Eólicos, started operations in 2018. Currently 95% of the 149 wind turbines are in operation (127 in commercial operation and 16 in tests), and the remaining 6 wind turbines will enter into operation of staggered form. The complex is formed o
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, according t
Slide 43: Under Construction
Under Construction Copel Geração e Transmissão Copel GeT is building two hydroelectric plants that will add a total of 405 MW of installed capacity to its generating plant. As of March 28, 2019, the Colíder HPP had a generating unit operating commercially, while the UHE Baixo Iguaçu had two units in
Slide 44: Colíder HPP and Baixo Iguaçu HPP
In addition of Colíder HPP and Baixo Iguaçu HPP, in August 2018 Copel conquered the right to build Bela Vista SHP (29 MW of installed capacity) predicting the start of works for the first quarter of 2019. Colíder Hydroelectric Power Plant On July 30, 2010, under Aneel New Energy Auction no. 003/2010
Slide 45: Cutia wind complexes
Currently 95% of the 149 wind turbines are in operation (127 in commercial operation and 16 in tests), and the remaining 6 wind turbines will enter in a staggered way. The Copel wind farm named Cutia and is divided into two large complexes: • Cutia Complex: composed of seven wind farms (Guajiru, Jan
Slide 46: Swap Contract of Shares with Eletrosul
On August 30, 2018, Copel GeT concluded a Swap Contract of Shares with Eletrosul in the jointly-controlled developments of Costa Oeste Transmissora de Energia SA (51% Copel GeT and 49% Eletrosul), Marumbi Transmissora de Energia SA (80% Copel GeT and 20% Eletrosul) and Transmissora Sul Brasileira de
Slide 47: SPC Mata de Santa Genebra
SPC Mata de Santa Genebra On February 25, 2019, all the stages planned for the test run period of the Santa Bárbara d’Oeste substation, belonging to the SPC Mata de Santa Genebra, allowing the operation of this substation under the Commercial Operation regime. The SPC Mata de Santa Genebra is still
Slide 48: Operating Data
Operating Data In the distribution business, Copel serves more than 4.6 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 a
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 data tr
Slide 51: Slide 51
Slide 52: 8.6 New Projects
<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 343.4 MW of installed capacity to the Company's portfolio.
Slide 53: Feasibility studies
<0} Copel, in partnership with others companies is also developing studies in the lower reaches of the Chopim river that will lead to the feasibility of another hydroelectric projects. As for wind power generation, there are studies for the feasibility of new wind farms in the State of Rio Grande do
Slide 54: Customers and employees
At the end of December, Copel Distribuição had 4,637,804 customers, representing a consumer-to-employee ratio of 865. Compagas, Elejor and UEG Araucária, companies in which Copel holds a majority interest, had 159, 07 and 17 employees, respectively.
Slide 55: Copel in numbers
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Slide 56: Cash flow statement
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Slide 57: Income Statement
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Slide 58: Income Statement
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Slide 59: Operational expenses / income
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Slide 60: Assets by subsidiary
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Slide 61: Assets by subsidiary
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Slide 62: Income Statement
Slide 63: Liabilities by subsidiary
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Slide 64: Generation and Transmission income statement
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Slide 65: Generation and Transmission income statement
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Slide 66: Income statement by subsidiary
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Slide 67: 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 March 29, 2019 COMPANHIA PARANAENSE DE ENERGIA – COPEL By: / S / Daniel Pimentel Slaviero Daniel Pi