Companhia Paranaense de Energia - Copel

Transcription

1 January 2018

2 Disclaimer Any statements made during this event involving Copel s business outlook or financial and operating forecasts and targets constitute the beliefs and assumptions of the Company s Management, and the information currently available. Forward-looking statements are not guarantees of performance and involve risks, uncertainties and assumptions, given that they refer to future events, and thus are dependent on circumstances that may or may not occur. The general economic conditions, industry conditions and other operating factors could come to affect the future performance of Copel and lead to results that are materially different from those expressed in said forward-looking statements. 2

3 Companhia Paranaense de Energia - Copel Head office: Curitiba/PR 63 years in the industry Integrated Company - Generation, Transmission, Distribution, Energy Trading and Telecommunication Since 1994 on the B3 23 years of listing 20 years of listing on the NYSE The first of the brazilian electric sector Present in the European Union 15 years listed on Latibex 1 On B3 3

4 State of Paraná Geographic Information Area: 199,000 km 2 (2.3% of the country) Population: 11 million (5.5% of Brazil s population) Cities: 399 Economic Data GDP 2015: R$ 366 billion (6% of Brazilian GDP) GDP 2016: R$ 387 billion (6% of Brazilian GDP) GDP 9M17: R$ 313 billion (+ 2.1% vs. 9M16) Breakdown by Income Segment Services 49.2% Commerce 16.1% Construction 5.8% Utilities 3.4% Industries 15.8% Agricultural 9.7% 4

5 Companhia Paranaense de Energia - Copel GENERATION 5,675 MW of installed capacity in operation 30 Power Plants¹ and 11 Corporate partnerships Addition of 717 MW until 2019 TRANSMISSION 4,221 km of lines² and 45 Substations³ in operation Addition of 1,197 km of transmission lines until 2021 Concession renewed until 2042 (Contract 060/2001) DISTRIBUTION More than 4.5 million customers 4th largest in number of costumers 4th largest in electricity consumption (MWh) TELECOMUNICATION 31,117 km of optical fiber 401 cities with optic fiber 64 cities with broadband for retail BREAKDOWN BY OPERATING SEGMENT 9M17 ¹Considers the HPP GPS. ²Adjusted by Copel s stake. ³Participation in 9 Substations. EBITDA Net income GeT 64% Dis 20% Tel 5% Outros 4 11% GeT 68% Dis 27% Tel 5% 5

6 Organization Chart COPEL COPEL Geração e Transmissão 100.0% COPEL Distribuição 100.0% COPEL Telecom 100.0% COPEL Renováveis 100.0% COPEL Comercialização 100.0% Dominó Holding 49.0% UEG Araucária 60.0% Marumbi 80.0% Integração Maranhense 49.0% São Bento Energia 100.0% Cruzeiro do Sul 51.0% Costa Oeste 51.0% Caiuá 49.0% CUTIA 100.0% São Miguel do Gostoso I 49.0% UEG Araucária 20.0% SERCOMTEL 45.0% Baixo Iguaçu 30.0% Mata de Santa Genebra 50.1% Cantareira 49.0% Brisa Potiguar 100.0% Elejor 70.0% COMPAGAS 51.0% Paraná Gás 30.0% Matrinchã 49.0% Paranaiba 24.5% Dona Francisca 23.0% CARBOCAMPEL 49.0% Guaraciaba 49.0% Sul Brasileira 20.0% Foz do Chopim 35.8% Dois Saltos 30.0% Generation Transmission Other 6

7 Capital Structure and Shareholders Thousand shares Shareholders Common % Preferred "A" % Preferred "B" % TOTAL % State of Paraná 85, , BNDESPAR 38, , , Eletrobras 1, , Free Floating 19, , , BM&FBovespa 18, , , NYSE 1, , , LATIBEX Other TOTAL 145, , , % 0.2% Common 58.6% State of Paraná BNDESPAR Preferred 0.2% 21.2% BNDESPAR Free Floating 1.1% Eletrobras Free Floating Other 78.6% Other 26.4% As of

8 Power Generation Assets Installed Capacity 3% 86% Copel 5,675 MW 7% 1% 6% 60% Brazil 157,237 MW 28% HPP TPP SHP WPP 1% 8% Main Power Plants Installed Capacity(MW) Assured Power (average MW) Concession Expires Gov. Bento Munhoz da Rocha Netto (Foz do Areia) Gov. Ney Aminthas de B. Braga (Segredo) Gov. José Richa (Salto Caxias) 1, , , Mauá (1) Gov. Pedro V. Parigot de Souza (Capivari-Cachoeira) (2) (1) Relative by Copel's stake (51% of power plant capacity of 363 MW). (2) As of January 1, 2017, 70% of the physical guarantee is allocated in the quota system and and the other 30% are available for sale by Copel GeT. 8

9 Energy Sale Copel GeT Will be sold in the spot market (CCEE) 21.6% 22.6% 35.4% 50.8% 76.4% 72.9% 72.0% R$ R$ % R$ % R$ % R$ % R$ R$ R$ 167,65 R$ 168, % 12.4% R$ 171,02 R$ 171, % R$ R$ 147,07 R$ R$ 147,07 R$ 147, R$ 152,92 R$ 152,92 R$ 152, Regulated Market Free Market Avaiable 11.2% Assured Energy (MW average) ,935¹ 2, ,160 2,156 2,155 Updated until December Prices will be adjusted by inflation. Assured energy avaiable in the cargo center, included HPP Dona Francisca, net of losses. From 2017 on, includes 30% HPP GPS assured Energy. 1 Considers the delay of Colíder HPP (start-up in May.2018). 2 Considers the new schedule of Baixo Iguaçu HPP (start-up in November-2018). 9

10 Energy Sale Copel GeT In Operation Wind Farm Auction ¹ Installed Capacity (MW) Assured Power (Average MW) Generation (GWh) Average Price ² Expiration of Authorization São Bento Energia, Invest. e Part. S.A. Copel Brisa Potiguar S.A. Copel Brisa Potiguar S.A. 2º LFA (26/08/2010) 2º LFA (26/08/2010) 4º LER (18/08/2011) April April April-46 R$ º LER Voltália - SMG I April-47 (18/08/2011) R$ R$ Total R$ ¹ LFA - Auction of Alternative Sources/ LER - Auction Reserve Energy. ² Price updated to December R$ Under Construction Cutia Wind Farm Auction ¹ Cutia Wind Complex Cutia Wind Complex 6º LER (10/31/2014) 20ª LEN (11/28/2014) R$ Installed Capacity (MW) 2, 3 R$ Assured Power (Average MW) R$ R$ 167,65 R$ 168,33 R$ R$ 171,02 R$ R$ ,74 R$ 147,07 R$ 147,07 R$ 147,07 R$ 152,92 R$ 152,92 R$ 152,92 Price 4 Start up CAPEX (R$ million) Premium Value (R$ million) june-18 1, Expiration of Authorization 56% in January-42 44% in May january August-50 Total , ¹ Types of auctions: LER - Auction Reserve Energy / LEN - New Energy Auction. ² The installed capacity of the new projects can be optimized in relation to the registered at auctions. ³ The installed capacity of the wind farms was adjusted according to Aneel 's dispatches numbers: 1,248, 1,249, 1,250, 1,251, 1,252, 1,253, 1,254, 1,255, 1,256 and 1,257 from May 8, Price updated to December

11 Growth in Generation Power Plant Installed Capacity (MW) Assured Power¹ (Average MW) Under construction Capex Project (R$ million) Start-up Energy Sold² Stake Copel GeT average MW HPP Colíder , % Copel GeT R$ average MW HPP Baixo Iguaçu 3, 4 30% Copel GeT R$ % Neoenergia Wind Farm Cutia (LER 2014 and LEN 2014) Projects in the portfolio (LER) 2019 (LEN) average MW R$ SHP³ HPP³ WPP ¹ For HPP Colíder and HPP Baixo Iguaçu, the values were adjusted according to Administrative Rule No. 258 of December 2016 and January 11, 2017 respectively. ² Price updated by IPCA until December Font CCEE. 3 Sold 70% in the regulated market. Concession Contract No. 002/2012 of Considering waiver of 756 days. 4 Adjusted by Copel s stake. Types of auctions: LFA Auction of Alternative Sources/ LER Auction Reserve Energy/ LEN New Energy Auction. Estimated values. 2, % Copel 11

12 Transmission Assets Consolidated financial Statement Copel GeT Subsidiary / SPC Contract Enterprise TL Substation Extension (km) Amount MVA APR ¹ (R$ million) Concession Expiration Copel GeT 060/ Several 2, , Copel GeT 075/ TL Bateias - Jaguariaiva Copel GeT 006/2008 TL Bateias - Pilarzinho Copel GeT 027/2009 TL Foz - Cascavel Oeste Copel GeT 015/2010 Cerquilho III Substation Copel GeT 022/2012 TL Foz do Chopim - Salto Osório LT Londrina - Figueira Copel GeT 002/2013 TL Assis Paraguaçu Paulista II Copel GeT 005/2014 TL Bateias - Curitiba Norte Copel GeT 021/2014 TL Foz do Chopim - Realeza Copel GeT 022/2014 TL Assis Londrina Subtotal Copel GeT 4 2, , ¹ Updated according to Aneel Resolution No. 2258/2017 of June 27, 2017, with R$ million related to RBSE. ² Renewed pursuant Law No. 12,783/13 ³ From the APR will be reduced 50%. 4 Amount not yet approved by ANEEL. 12

13 Transmission Assets Equity in Earning of Subsidiaries Subsidiary / SPC Contract Enterprise TL Substation Extension (km) Amount MVA APR ¹ (R$ million) Concession Expiration Costa Oeste Copel GeT - 51% Eletrosul - 49% 001/2012 TL Cascavel Norte - Cascavel Oeste TL Cascavel Norte - Umuarama Sul Umuarama Sul Substation Transm. Sul Brasileira Copel GeT - 20% Eletrosul - 80% 004/2012 TL Nova Sta Rita - Camaquã Caiuá Transmissora Copel GeT - 49% Elecnor - 51% 007/2012 TL Guaíra - Umuarama Sul TL Cascavel Norte - Cascavel Oeste Santa Quitéria Substation / Cascavel Norte Substation Integração Maranhense Copel GeT - 49% Elecnor - 51% 011/2012 TL Açailandia - Miranda II Marumbi Copel GeT - 80% Eletrosul - 20% 008/2012 TL Curitiba - Curitiba Leste Matrinchã Copel GeT - 49% State Grid - 51% 012/2012 TL Paranaíta - Ribeirãozinho 1, Guaraciaba Copel GeT - 49% State Grid - 51% 013/2012 LT Ribeirãozinho - Marimbondo Paranaíba Copel GeT - 24,5% Furnas - 24,5% State Grid - 51% 007/2013 TL Barreiras II - Pirapora II Subtotal SPCs 5 4, , ¹ Proportion to the participation of Copel in the venture. Updated according to Aneel Aproval Resolution No. 2,258/

14 Growth in Transmission Subsidiary / SPC Auction Signing of Contract Enterprise State km Subst APR¹ (R$ million) CAPEX² (R$ million) Start up Next Review Concession Expiration Copel GeT 001/10 Oct-10 TL Araraquara II Taubaté SP Feb TL Curitiba Leste - Blumenau Mar-21 Copel GeT 005/15 Apr-16 PR / SC TL Baixo Iguaçu - Realeza Sep-19 Subtotal Copel GeT Mata de Santa Genebra Copel GeT - 50,1% Furnas - 49,9% 007/13 May-14 TL Araraquara II - Bateias SP / PR Nov Cantareira Copel GeT - 49% Elecnor - 51% 001/14 Sep-14 TL Estreito - Fernão Dias SP / MG Mar Subtotal SPC 1, ,239.8 Total 1, ,234.9 ¹ Updated according to Aneel Ratification Resolution 2.258/2017 / Adjusted for Copel s stake. ² Adjusted for Copel s stake (considers own capital and third-party capital). 14

15 Distribution Concession Area Distribution Lines Customers Substations Average Consumption 194,854 km² 196,610 km 4,539, kwh/month Market Growth Copel Distribuição Brazil Sul Copel Grid 9M % +2.7% +2.9% Breakdown by Segment Rural 11.4% Others 12.3% Residential 35.9% 3Q % +3.7% +4.7% Source: EPE Monthly Market Review Commercial 23.6% Industrial 16.8% % Default Rates - Copel Distribuição 1.97% 1.58% % % 1.50% 1.00% Tariff adjustment Copel Distribuição Average effect of 5.85% Net RAB R$ 4,950.4 million Default Coverage 1 R$ 50.1 million % Parcel B Parcel A % R$ 2,297.6 million R$ 7,387.8 million R$ million % 1 It began to integrate Parcel A from the 2017/18 cycle 15

16 Distribution Extension of Distribution Concessions Year Economic and Financial Management Quality (Limit Established) 1 Quality Performed DEC i² ² FEC i DEC i² ² FEC i EBITDA EBITDA 4 (-) QRR³ {Net Debt / [EBITDA 4 (-) QRR³]} 1 / (0.8 * SELIC 5 ) {Net Debt / [EBITDA 4 (-) QRR³]} 1 / (1.11 * SELIC 5 ) Measured DEC Measured FEC 9M Measured DEC 9M Measured FEC DEC Annual Aneel Limit FEC Annual Aneel Limit 1 According to Aneel s Technical Note No. 0335/ DECi Equivalent Time of Interruption Caused by Internal Source per Consumer Unit; and FECi Equivalent Frequency of Interruption Caused by Internal Source per Consumer Unit. 3 QRR: Regulatory Reintegration Quota or Regulatory Depreciation Expense. It will be the value set in the last Periodic Tariff Review - RTP, plus the IGP-M between the month prior to the RTP and the month prior to the period of twelve (12) months of the determination of economic and financial sustainability. In June/2016 set value was R$333.8 million. 4 EBITDA adjusted for the effects of post-employment benefits, provisions and PDV. 5 Selic: limited to 12.87% p.y. 16

17 Telecommunications and Other Sectors > Telecommunications > Gas > Water and Sewage 1 Copel s stake 100.0% Optical cables network 31,203 km EBITDA 9M17 R$ million Copel s stake 51.0% Amount of sales in 1Q million m³/day EBITDA 9M17 1 R$ 6.6 million Copel s stake - Settled Position (Dec/2017) R$ million Financial Assets (Sep/2017) R$ million ¹ Adjusted by Copel s stake 17

18 EBITDA Breakdown EBITDA R$ million Subsidiary 3Q17 3Q16 Var.% 9M17 9M16 Var.% Copel GeT ,515 2,077 (27.1) Copel Dis ,367.9 Copel Telecom Other/Elimination (4.6) (38.2) Consolidated ,357 2,627 (10.3) EBITDA Margin 18% 15% % 27% (13.0) Key Factors EBITDA of R$381 million in GeT, result positively impacted by the impairment reversal of R$163 million, partially offset by the effects of GSF and PLD; Copel Distribuição recorded EBITDA of R$134 million in 3Q17, 41.6% higher than reported in 3Q16, due to the increase of 4.7% in the grid market and the reduction of manageable costs and provisions; Copel Telecom's EBITDA increased by 32%, reflecting the increase in the customer base; 18

19 Operating Revenues Recurrent operating revenue increased by 17% in the quarter R$ million +12% +17% % % % -33% % 3,644 3,120 3Q16¹ Electricity sales to final customers Electricity sales to distributors Use of the main distribution and transmission grid¹ Revenues from telecommunications CVA Other operating² 3Q17 Growth of 0.8% in the volume of energy sold to final customers; Adjustment of the energy tariff (TE) by 10%; Sale of energy by Copel Comercialização; Grouth of 4.7% in the grid market; Expansion of services to new customers of Copel Telecom; Increase in PLD and GSF; * Amounts subject to rounding. ¹ Recurrent revenue adjusted by negative impact of R$206 million referring to RBSE remeasurement; Composed of construction revenue, fair value of assets from the indemnity for the concession, gas distribution and other revenue. 19

20 Operating Costs and Expenses Operating costs and expenses increased by 22% in the quarter R$ million +67% -15% -38% -0.2% -14% % 2,714 3,318 3Q16¹ Eletricity Charges for the use of main Transmission Grid Provision and reversal² Manageable costs Other operating³ 3Q17¹ Hydrological Risk; GSF 64.2% (3Q17) vs. 82.8% (3Q16); PLD increased; Higher ESS due to thermal dispatch; Reduction of 35% in PECLD; R$436.20/MWh (3Q17) vs. R$112.05/MWh (3Q16); * Amounts subject to rounding. ¹ Recurring revenue adjusted for the negative impact of R$206 million referring to RBSE remeasurement. ² Consider the construction revenue lines, fair value of the concession's assets, distribution of piped gas, and other operating revenues. 20

21 Custos Gerenciáveis +0.2% Manageable Costs (3Q17x3Q16) -0.2% R$ million % % % % P M S O Total Pension and healthcare plans 3T16 3Q16 3T17 3Q17 Compensation - Voluntary Termination Program/Retirement Growth of 2% in Personnel and management; Salary Adjustment of 9.15% in October/16; Reduction of 145 employees in the last 12 months; Policy of not filling job vacancies; Inflation of 2.54% in the last 12 months; Salary Adjustment of 1.63% in October/17 by INPC index; Review of third-party service contracts; 21

22 Debt profile Short Term Long Term Oct/17 - Sep/18 Oct/18 - Dec/ From 2023 Total Domestic Currency 3,275, ,372 3,173, , , ,126 1,261,567 9,440,105 Foreign Currency 1, ,874 86,590 TOTAL 3,277, ,372 3,173, , , ,126 1,346,441 9,526,695 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000-1,014 2,233 Net Debt/EBITDA¹ (R$ million) 4,652 5, ,284 7, M (0.5) (1.0) Index Debt Composition by Index Value (R$ million) Part. % CDI 6, TJLP 1, IPCA Dollar Other Debt / Shareholders Equity 60.0% Dívida Net Debt Líquida² 2 Dívida Net Debt/EBITDA Líquida/LAJIDA² 2 ¹ EBITDA 12 months ² The General Meeting of Debenture Holders of the Company's 5th Issue, held on December 20, 2017, approved the exclusion of guarantees and endorsements in the definition of "Consolidated Net Financial Debt". As of

23 Financial Leverage Evolution of Net Debt/EBITDA R$ million ,740 7,284 7,446 7,543 7,742 3,688 2,531 3,014 2,195 2,374 set/16 dez/16 mar/17 jun/17 set/17 sep/16 dec/16 mar/17 jun/17 sep/17 Ebitda EBTIDA meses Dívida Net Debt Líquida Dívida Net Debt/EBTIDA Líquida/Ebitda Covenant - Limite - months EBITDA 12 months does not consider equity accounting results; Growth of 2.6% in net debt (Sep.17 vs Jun.17); Growth of R$ 381 million in EBITDA 12 months (Sep.17 vs Jun.17); The General Meeting of Debenture Holders of the Company's 5th Issue, held on December 20, 2017, approved the exclusion of guarantees and endorsements in the definition of "Consolidated Net Financial Debt". 23

24 Net Income Net Income Breakdown R$ million Subsidiary 3Q17 3Q16 Var.% 9M17 9M16 Var.% Copel GeT ,049 (37.6) Copel Dis 182 (127) (230) - Copel Telecom Other/Elimination 24 (6) - (4) Consolidated 390 (75) ,058 (9.4) Net Margin 11% -3% - 9% 11% (12.2) Net Income Performance 1, Net Margin by Subsidiary (%) 3Q GeT Distribuição Telecom M 3Q 24

25 Subsidiaries Financial Indicators Wholly Owned Subsidiaries 3Q17 Subsidiary GeT Dis Telecom Consolidated Operating Revenues (R$ million) , ,643.7 Operating Income (R$ million) Net Income (R$ million) EBITDA (R$ million) Return on Equity¹ (%) EBITDA Margin (%) Net Margin (%) ¹ 12 months. Considers the equity of the beginning of the period. 25

26 Dividends Year Annual Dividend Yield¹ % % 35% 35% Dividend and IOC Historical 50% 50% 27% 50% % % % % ² Gross Value (R$ mm) Payout ¹ Source:. Economática. Initial Div.Yield in year. ² Dividend approved in the 62 nd. AGM, a meeting held on April 28, Dividends' payment will be paid in two installments. 3 Amount related to Preferred B. 26

27 Carried Capex Historical Capex Carried R$ million Capex by Business (Schedule 2017) Copel Dis 24% 3,575 Copel GeT¹ 67% Outros² 9% 1,937 2,469 2,365 2,331 Carried Capex Schedule 2017³ -35.2% 1 Considers the transfer of wind farms to Copel GeT. 2 Included Copel Telecomunicações, Copel Holding and New Business. ³ Capital budget originally approved by the board of directors. Do not consider your own labor, burdens and others. 2,728 9M16 1,767 9M17 27

28 Capex Subsidiary / SPC Investment Program Scheduled Revised Sep. 25, 2017 R$ million Copel Geração e Transmissão , HPP Colíder HPP Baixo Iguaçu TL Araraquara / Taubaté TL Foz do Chopim - Realeza TL Assis - Londrina TL Curitiba Leste / Blumenau Guaraciaba Transmissora Mata de Santa Genebra Transmissão Cantareira Transmissora Paranaíba Transmissora Others Copel Brisa Potiguar Copel Distribuição Copel Telecomunicações Copel Comercialização Copel Renováveis Holding Cutia Wind Farm Complex São Bento Energia Other Invesment TOTAL 1, , , Capital budget originally approved by the Board of Directors. These values do not consider appropriation due to own labor, interest and others. 2 Regarding the participation of Copel in Enterprise. 3 Includes Parana Gas and Dois Saltos among others. Carried 9M17 Scheduled

29 Integrity Practices In January 2017 a Governance, Risks, Compliance and Sustainability Office was created. It has been divided in two: 1. Sustainability and Governance 2. Corporate Integrity Integrity action within the company goes under 4 mechanisms: > Integrity Program The Integrity Program is a platform for disseminating the Company's commitments to transparency and the fight against corruption. Copel implemented the Distance Learning (EaD) training program in order to raise awareness of ethical behavior among all employees of Copel and its subsidiaries (90.54% employees coverage). > Code of Conduct It defines actions that promote integrity, transparency, safety, and health. The document also addresses social and environmental responsibility, respect, and the relationship with the various segments in which the Company operates. The Company s Code of Conduct is aligned with it values, the Principles of the UN Global Compact, and Corporate Governance guidelines. 29

30 Integrity Practices Integrity action within the company goes under 4 mechanisms: > Risk Assesment for Corruption As part of its Policy on Integrated Management of Corporate Risks, Copel works to ensure constant monitoring of threats of corruption within the Company, and of fraud in the internal control environment. In 2016, the Company submitted 28 transactions to risk assessments concerning corruption. This was 100% of the transactions carried out in the year, and no cases of corruption were identified in the period. > Reporting Channels In order to gather opinions, criticism, complaints, claims, and personal consultation, Copel provides a communication channel, presented below, which, in addition to fighting fraud and corruption, expands the organization's relationship with stakeholders. Examples of Reporting Channels: Confidential Communication Channel, Ombudsman's Office, Committee to Investigate Claims of Mobbing (CADAM), and Ethics Guidance Committee (COE). 30

31 Sustainability Practices Copel sustainability strategies are in line with our strategic framework and the best market practices: > Signatory of the Global Compact since 2000 > Copel s share remain in the Corporate Sustainability Index of Bovespa in > Copel has been a part of eleven of the twelve editions of the Corporate Sustainability Index (ISE), since the index was created, in > 11 years of adoption of the GRI - Global Reporting Initiative guidelines > 2 years of adoption of the International Integrated Reporting Council > 10 years in the top 10 in Abradee Social Responsibility Award > Remains in the Global Sustainability Index MSCI since 2014 > 7 years prepares and publishes Greenhouse Gas Inventory no GHG Protocol > Award Seal Paraná Climate - Gold category in the years 2015 and 2016 Principles: > Commitment > Proactive attitude before the law > Dialogue, communication and transparency > Respect to environmental dynamics > Individual responsibility > Valuing Diversity 31

32 Investor Relations