Companhia Paranaense De Energia · BMFBOVESPA:CPLE3
Companhia Paranaense De Energia — Energy Co of Parana — Q2 2017 Earnings Presentation
69 slides from Companhia Paranaense De Energia's earnings presentation, Jun 25, 2018
Slide 1: 2017 Results Conference Call
2017 Results Conference Call 08.11.2017 - 15:00 p.m (Brasilia time) Telephone (+1516) 300 1066 Code: COPEL Increase of 58.1% in the recurring EBITDA; Reduction of 54.8% in PECLD (R$25.7 million in 2Q17 vs. R$56.9 million in 2016); Reduction of 2.0% in manageable costs; Increase of R$30.0 million in
Slide 2: Share quotes and market value
CPLE3 | R$19.00 CPLE6 | R$24.53 ELP | US$ 7.34 XCOP | € 7.77 Market value | R$5.9 bi * Quotes 06.30.2017
Slide 3: Tariff adjustment and Net Remuneration Base rectification
This adjustment was fully applied to Copel Distribuição's tariffs as of June 24, 2017. In addition, on June 13, 2017, Aneel rectified the amounts of the Net Remuneration Base by R$30.0 million (from R$4,920.4 million to R$4,950.4 million), and the depreciation amount by R$1.2 million (from R$337.5 m
Slide 4: Net operating revenue in first six months of 2017
In the first six months of 2017, Copel’s net operating revenue fell by 6.1%, mainly due the non-recurring revenue of R$977.8 million related to the remeasurement of RBSE. Considering recurring items only, the Company ended the semester with a 6.3% increase in net operating revenue. * A mounts subjec
Slide 5: Noteworthy variations in costs and expenses
Also noteworthy are the following variations: (i) the 11.8% increase in the “personnel and management” line, chiefly due to the wage increase as of October 2016 and the R$12.0 million in provision for the voluntary termination and retirement of 59 employees to the Voluntary Redundancy Program (PDI);
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Slide 7: Operating costs and expenses in first half of 2017
In the first half of 2017, operating costs and expenses totaled R$5,207.1 million (1% up). This result was mostly impacted by (a) the 7.2% increase in electricity purchased for resale, caused by the higher PLD; (b) the provision of R$197.2 million, versus R$56.8 million in 1H16; and (c) the 11.5% in
Slide 8: EBITDA
2.4 EBITDA In 2Q17, earnings before interest, taxes, depreciation and amortization reached R$707.2 million, 56.3% less than the R$1,618.5 million reported in 2Q16, mainly reflecting the recognition, in 2Q16, of the nonrecurring revenue of R$977.8 million related to the remeasurement of RBSE. Excludi
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Slide 10: Consolidated Net Income
2.6 Consolidated Net Income In 2Q17, Copel recorded net income of R$151.0 million, 84.3% lower than the R$959.4 million registered in the same period of 2016. This decrease is largely explained by nonrecurring factors in 2Q16 (recognition of the remeasurement of RBSE cash flow and reversal of provis
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Slide 13: Loans, financing and debentures maturities
Loans, financing and debentures maturities are presented below:
Slide 14: Consolidated net debt and net debt/EBITDA
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 15: Net debt notes
¹EBITDA 12 months. / Considers equity in earnings of subsidiaries ² Not considered endorsements and guarantees. ³ Considered endorsements and guarantees.
Slide 16: Lawsuits classified as possible losses
The lawsuits classified as possible losses, as estimated by the Company and its controlled companies at the 2Q17, totaled R$2,572.3 million, 0.5% lower than in December 2016 (R$2,559.9 million), distributed in lawsuits of the following natures: fiscal (R$ 808.8 million), regulatory (R$788.5 million)
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Slide 18: Copel GeT results
In the first six months of 2017, Copel GeT’s operating revenue reached R$1,856.2 million, 25.9% down from the same period in the previous year, while operating costs and expenses grew by 1.6%, totaling R$844.8 million in the period. Net income reached R$489.8 million and EBITDA totaled R$1,133.1 mil
Slide 19: Copel Distribuição results
In the first six months of 2017, Copel Distribuição recorded net revenue of R$4,165.0 million, 6.0% up on the same period in 2016. Operating costs and expenses fell by 3.9%, reaching R$3,980.1 million up to June 2017. Thus, the Company recorded a net profit of R$79.2 million, versus a loss of R$103.
Slide 20: Copel Telecom results and accounting information
Until June 2017, Copel Telecom had posted a 15.6% increase in operating revenue in relation to the same period of 2016, totaling R$180.8 million, while operating costs and expenses reached R$131.5 million, a 17.9% increase in the period. Copel Telecom reported net income of R$27.2 million in the fir
Slide 21: Investment Program
5. Investment Program The following chart shows the investment program carried out in 1H17: * A mounts subject to rounding.
Slide 22: Power Market and Tariffs
6. Power Market and Tariffs 6.1 Captive Market – Copel Distribuição Copel Distribuição’s captive market energy sales totaled 4.813 GWh in the 2Q17, which represents a reduction of 17.3%. This decrease was influenced by the reduction in consumption of industrial and commercial classes, mainly due to
Slide 23: Notice to the Market IR 19/17
For more details visit the Notice to the Market - IR 19/17 (link). * A mounts subject to rounding.
Slide 24: 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 8.0% between April and June 2017. The table below breaks down energy sales by consumptio
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Slide 27: Energy Flow - Copel Dis
Energy Flow - Copel Dis 1H17 1H16 Var. % Itaipu 2,945 2,963 (0.6) CCEAR ~Copel Gera¢ao e Transmissio 42 78 (46.2) CCEAR - Other 5,614 6,667 (15.8) Angra 508 510 (0.4) ccGF 3,608 3,732 (3.3) Proinfa 245 280 (12.5) Elejor S.A 588 592 (0.7) Available Power 13,550 14,822 (8.6) Captive market 10,149 11,8
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Slide 29: Energy Flow – Copel Comercialização
Energy Flow – Copel Comercialização
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Slide 31: Tariffs: Sales to Distributors Average Tariff
6.6 Tariffs Sales to Distributors Average Tariff (CCEARs) – Copel Geração e Transmissão
Slide 32: Power Purchase Average Tariff – Copel Distribuição
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Slide 33: Sales to Final Customers Average Tariff
Sales to Final Customers Average Tariff Copel Distribuição – without ICMS
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Slide 35: Shareholders by share class
Thousand shares Shareholders Common % Preferred % Preferred"B" % TOTAL % State of Parand 85,029 586 : z z : 85,029 31.0 BNDESPAR 38,299 264 : : 27,282 213 65,581 24.0 Eletrobras, 1,531 1a 5 : : : 1531 06 Free Floating 19,874 137 7 234 100,964 787 120,915 aa 83 18,610 128 7 234 64,949 506 83,636 30.6
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Slide 37: Share trading and performance
From January to June 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 June 2017, the market value of
Slide 38: 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 40: TPP Figueira concession extension
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 process relat
Slide 41: Rio dos Patos facility and wind farms complex
With respect to the Rio dos Patos facility, its operation has been suspended since September 2014 as a result of a flood damage occured in July of that same year. We are currently in charge of the facility on a temporary basis, awaiting the decision of the MME on Aneel's recommendation for the extin
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Slide 43: 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 44: São Miguel do Gostoso I Wind Complex connection
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 received th
Slide 45: 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
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Slide 47: 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 1,813 km of transmission lines and 4 substations and will generate APR of R$298.9 million of which refers to Cope
Slide 48: Distribution concession agreement
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 50: 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 51: 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 54: Feasibility studies for new hydro and wind projects
<0} Copel, in partnership with the companies Brennand, Minas PCH and Silea, is also developing studies in the lower reaches of the Rio Chopim that will lead to the feasibility of another four (4) hydroelectric projects. As for wind power generation, there are studies for the feasibility of new wind
Slide 55: Other Information: Human Resources
9 . Other Information 9.1 Human Resources Copel’s workforce closed 2Q17 at 8,453 employees distributed. The table below shows employee number trends in the Company and its subsidiaries in the last four years:
Slide 56: Copel Distribuição customers and employees
At the end of June, Copel Distribuição had 4,515,938 customers, representing a consumer-to-employee ratio of 763. Compagas, Elejor and UEG Araucária, companies in which Copel holds a majority interest, had 162, 7 and 17 employees, respectively. * A mounts subject to rounding.
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Slide 69: Signature and forward-looking statements
A mounts subject 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 / Jonel