Companhia Paranaense de Energia - Copel

Transcription

1 August 2017

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 62 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

4 One of the Largest Companies in the Sector Major Industry Companies in Revenue Terms R$ billion 1H CPFL CEMIG Copel Engie Energisa Energias do Brasil Light Equatorial Major Industry Companies in Market Value Terms¹ CPFL Engie Eletrobras Equatorial Tran Paulist Cemig EDP Copel Major Industry Companies in the Enterprise Value Terms¹ Geographical Diversification > Present in 10 Brazilian States; Source: Economática 1) Updated until Eletrobras CPFL Engie Cemig Copel Equatorial EDP Tran Paulist 4

5 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 1Q17: R$ 107 billion (+ 2.5% vs. 1Q16) Breakdown by Income Segment Services 49.2% Commerce 16.1% Construction 5.8% Utilities 3.4% Industries 15.8% Agricultural 9.7% 5

6 Historical Copel was the first company in the Brasilian electric setor with shares listed on the NYSE Start-up HPP Salto Caxias (1,240 MW) 2005 Start-up HPP Santa Clara and Fundão (180 MW) 2007 Copel Tramsmissão spin-off 2012 Start-up HPP Mauá¹ (363 MW) 2013 Star-tup SPP Cavernoso II (19 MW) 2016 Start-up of the first Transmission Line outside the State of Paraná Operational Data: Operational Data : Operational Data : Operational Data : Operational Data : Generation: 3,340 MW of installed capacity; Generation: 4,545 MW of installed capacity; Geração: 4,771 MW of installed capacity; Generation: 5,160 MW of installed capacity; Generation: 5,624 MW of installed capacity; Transmission: 6,282 km of lines; Transmission: 6,638 km of lines; Transmissão: 6,996 km of lines; Transmission: 1,193 km of lines; Transmission: 4,092 km of lines; Distribution: 2,630,471 of customers; Distribution: 2,821,515 of customers; Distribuição: 3,256,584 of customers; Distribution: 3,759,399 customers; Distribution: 4,478,767 customers; Telecom: 33 customers and 2,400 km of optical cables; Telecom: 242 of customers and 8,164 km of optical cables; Telecom: 980 of customers and 17,630 km of optical cables; Telecom: 87,840 customers and 31,117 km of optical cables; 6

7 Companhia Integrada Generation Transmission Distribution Other 5,675 MW of installed capacity in operation 30 Power Plants¹ and 11 Corporate partnerships; Addition of 720 MW until 2019; 4,221 km of lines² and 45 Subestation³ in operation Addition of 1,197 km of transmission lines until 2021; Concession renewed until 2042 (Contract 060/2001); More than 4.5 million customers 4th largest in number of costumers ; 4th largest in electricity consumption (MWh); 31,203 km de fibras ópticas 401 cities with optic fiber; 64 cities with broadband for retail; 52% of Ebitda LTM 7% of Ebitda LTM 23% of Ebitda LTM 18% of Ebitda LTM Note: ¹Considers the HPP GPS. ²Adjusted by Copel s stake. ³Participation in 9 Substations. Source: 1H

8 Organization Chart Corporate Structure Operating Performance Financial Highlights Capex 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 8

9 Capital Structure and Shareholders Corporate Structure Operating Performance Financial Highlights Capex 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, , , Common Preferred 0.2% 58.6% 0.2% 13.7% 1.1% State of Paraná BNDESPAR Eletrobras Free Floating Other 78.6% 21.2% BNDESPAR Free Floating Other 26.4% As of

10 Power Generation Assets Installed Capacity 86% Corporate Structure Operating Performance Financial Highlights Capex Copel 5,675 MW 7% 1% 6% 61% 4% Brazil 152,356 MW 28% 7% HPP TPP SHP WPP 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) Mauá (1) 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) From 1 January 2017, 70% of the plant's physical guarantee is allocated to the quota system and the remaining 30% is available for sale by Copel GeT. 10

11 Energy Sale Copel GeT Corporate Structure Operating Performance Financial Highlights Capex Will be sold in the spot market (CCEE) 21.6% 31.3% 45.0% 53.4% 76.9% 5.5% 72.9% R$ R$ % 42.6% R$ R$ % 11.6% 12.4% 12.4%.12,4% R$ R$ R$ R$ R$ 167,65 R$ 168,33 R$ R$ ,02 R$ R$ 171, R$ 147,07 R$ 147,07 R$ 147, R$ 152,92 R$ 152,92 R$ 152,92 Regulated Market Free Market Avaiable 10.7% Assured Energy (MW average) ,935¹ 2, ,156 2,151 2,150 Updated until July 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 April.2018). 2 Considers the new schedule of Baixo Iguaçu HPP (start-up in November-2018). 11

12 Energy Sale Copel GeT In Operation Corporate Structure Operating Performance Financial Highlights Capex 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 (08/26/2010) 2º LFA (08/26/2010) 4º LER (08/18/2011) April April April-46 Voltália - SMG I (49% Copel / 51% Voltalia) R$ R$ º LER (08/18/2011) R$ R$ April-47 R$ Total R$ ¹ LFA - Auction of Alternative Sources/ LER - Auction Reserve Energy. ² Price updated to June ³ Equity in the earnings. Under Construction Cutia Wind Farm Auction ¹ Cutia Wind Complex Cutia Wind Complex 6º LER (10/31/2014) 20ª LEN (11/28/2014) 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) Under review 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 june

13 Growth in Generation Corporate Structure Operating Performance Financial Highlights Capex 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 Copel Renováveis Cutia (LER 2014 and LEN 2014) Projects in the portfolio (LER) 2019 (LEN) average MW R$ SHP³ HPP³ WPP , % Copel 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 Jun/ 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. 13

14 Transmission Assets Corporate Structure Operating Performance Financial Highlights Capex 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 Aproval Resolution No / ² Renewed pursuant Law No. 12,783/13 ³ From the APR will be reduced 50%. 4 Amount approved by ANEEL. 14

15 Transmission Assets Equity in Earning of Subsidiaries Corporate Structure Operating Performance Financial Highlights Capex 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 Adjusted for Copel s stake.updated according to Aneel Aproval Resolution No /

16 Growth in Transmission Corporate Structure Operating Performance Financial Highlights Capex Subsidiary / SPC Auction Signing of Contract Enterprise State km Subst APR¹ (R$ million) CAPEX² (R$ million) Start up Concession Expiration Copel GeT 001/10 Oct-10 TL Araraquara II Taubaté SP Jan TL Curitiba Leste - Blumenau Mar-21 Copel GeT 005/15 Apr-16 PR / SC TL Baixo Iguaçu - Realeza Mar-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 1918/2015 / Adjusted for Copel s stake. ² Adjusted for Copel s stake. 16

17 Distribution Corporate Structure Operating Performance Financial Highlights Capex Concession Area Distribution Lines Customers Substations Average Consumption 194,854 km² 196,176 km 4,515, kwh/month Market Growth Copel Distribuição Source: EPE Monthly Market Review 1.51% Brasil 1.97% Sul Copel Grid Market 1H % +2.2% +2.0% 2Q17-1.1% -1.2% +0.5% Default Rates - Copel Distribuição % Rural 11.7% Commercial 23.7% Tariff adjustment Copel Distribuição Average effect of 5.85% Net RAB R$ 4,950.4 million Parcel B Breakdown by Segment Other 12.0% Industrial 17.0% Residential 35.6% Default Coverage 1 R$ 50.1 million 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 17

18 Distribution Corporate Structure Operating Performance Financial Highlights Capex Extension of Distribution Concessions Year Economic and Financial Management Quality (Limit Established) 1 Quality Performed DEC i ² ² FEC i DEC i ² 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 1H Measured DEC 1H Measured FEC DEC Annual Aneel Limit FEC Annual Aneel Limit 1 According to Aneel s Technical Note No. 0335/ DECi Duration of outages per customer per year (in hours), caused by Internal Source; and FECi Frequency of outages per customer per year, caused by Internal Source. 3 EBITDA adjusted for the effects of post-employment benefits, provisions and PDV. 4 QRR: Regulatory Reintegration Quota or Regulatory Depreciation Expense. This is the value defined in the most recent Periodical Tariff Review (RTP), plus the General Market Price Index (IGP-M) between the month preceding the RTP and the month preceding the twelve-month period of the economic and financial sustainability measurement. 18

19 Telecommunications and Other Sectors Corporate Structure Operating Performance Financial Highlights Capex > Telecommunications > Gas > Water and Sewage 1 Copel s stake 100.0% Optical cables network 31,203 km EBITDA 2Q17 R$ 36.9 million Copel s stake 51.0% Amount of sales in 1Q million m³/day EBITDA 2Q17 1 R$ 24.9 million Copel s stake 8.8% Net Income R$ million Financial Assets R$ million ¹ Adjusted by Copel s stake 19

20 EBITDA 2Q17 1,656 Recurrent EBITDA growth of 46% (2Q17x2Q16) 2,193 1, % ,713 1, % 183 1,530 1,022 2Q16 2Q17 1H16 1H17 Recurring EBITDA Non-recurring Recurring EBITDA Non-recurring Result of the 4th Cycle of Tariff Review; Highest WACC Regulatory - from 7.5% to 8.09% Increase in BRR - from R$2.5 billion to R$5.0 billion; Increase in PLD by 370%; 2% reduction in manageable costs; 0.5% growth in the gride market; 55% reduction in PECLD; Registration of R$31 million in impairment; 2016 Non-recurring: Considers the initial recognition of the RBSE indemnity (R $ 978 million) and reversal of R$ 173 referring to litigation related to COFINS Non-recurring: Considers the adjustment in the recognition of the RBSE indemnity (R $ 224 million) after approval by Aneel. 20

21 Operating Revenues R$ million Operating Revenues 6,891 6,470-17% Copel Dis 68% 2Q17 Telecom 3% Other 4% Result of Sectorial financial assets and liabilities 2Q17 2Q16 1H17 1H16 3,808 3, H 2Q Copel GeT 32% 67.8 (727.3) (80.2) (1,254.5) Electricity Sales to Eletricity Sales to Final Customers Distributors 3,060 1,498-26% 1, % 2,225 Use of Transmission and Distribution Grid 2,646-54% 1,968 Other Operating¹ % 1,480 1, , H 2Q * Amounts subject to rounding. ¹ Composed of telecommunications, gas distribution and other revenue. 21

22 Operating Costs and Expenses R$ million Operating Costs and Expenses 5,155 5,207 13% 2Q17 TEL 2% Outros 5% 2,383 2,699 Copel Dis 78% Copel GeT 15% H 2Q Eletricity Charges For The Use of Main Transmission Grid Provision and Reversal Manageable Costs¹ 2,254 27% 2, % ,243 1,218-2% 1,054 1, * Amounts subject to rounding ¹ Considers the cost of staff, managers, pension plan and health care, material, third party services and other H 2Q 22

23 EBITDA Breakdown R$ million Copel GeT 2Q17 2Q16 Var.% EBITDA ,404.6 (70.2) (-) RBSE EBITDA Adjusted (1.8) Copel Hol & Others 2Q17 2Q16 Var.% EBITDA (57.6) (-) Reversals EBITDA Adjusted Copel DIS 2Q17 2Q16 Var.% EBITDA (56.0) - EBITDA Margin per Subsidiaries (%) Copel Telecom 2Q17 2Q16 Var.% EBITDA Breakdown EBITDA 2Q17 2Q17 GeT Distribuição Telecom Copel GeT 59% Copel DIS 19% Others 16% Telecom 5% 23

24 Net Income Net Income Breakdown R$ million Subsidiary 2Q17 2Q16 Var.% 1H17 1H16 Var.% Copel GeT (82.5) ,003.8 (51.2) Copel Dis 7.9 (64.2) (103.4) Copel Telecom Other/Elimination (19.5) (28.0) Consolidated (84.9) ,132.7 (49.8) Net Margin 5% 26% (81.8) 9% 16% (46.6) Net Income Performance 1,133 Net Margin by Subsidiary (%) 2Q GeT Distribuição Telecom H 2Q

25 Subsidiaries Corporate Structure Operating Performance Financial Highlights Capex Financial Indicators Wholly Owned Subsidiaries 2Q17 Subsidiary GeT Dis Telecom Consolidated Operating Revenues (R$ million) , ,173.2 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 Debt profile Corporate Structure Operating Performance Financial Highlights Capex R$'000 Short Term Long Term jul/17 - jun/18 jul/18 - dec/ From 2023 Total Domestic Currency 2,947,116 1,405,283 2,823, , , ,608 1,258,279 9,382,806 Foreign Currency ,148 88,931 TOTAL 2,947,899 1,405,283 2,823, , , ,608 1,346,427 9,471,737 10,000 8,000 6,000 4,000 2,000 - Net Debt/EBITDA¹ (R$ million) 4,652 5,446 5,695 6,977 7,283 7,543 8,656 2,233 2,497 1, ,282 1,373 1, H ,035 (5.0) (10.0) Index Debt Composition by Index Value (R$ million) Part. % CDI 7, TJLP 1, IPCA Dollar Other Guarantees and endorsements Net Debt/EBITDA² Net Debt² Net Debt/EBITDA³ Debt / Shareholders Equity 61.1% ¹ EBITDA 12 months ² Do not considers endorsements and guarantees ³ Considers endorsements and guarantees As of

27 Leverage Evolution of Net Debt/EBITDA (R$ million) 2.1 1, ,373 1,510 1,492 6,200 7,284 7,446 7,543 3,562 2,775 3,249 2,195 Jun/16 Dec/16 Mar/17 Jun/17 Net Debt Guarantees and endorsement Net Debt/EBITDA EBITDA 12 months EBITDA 12 months does not consider equity accounting results; Growth of 1% in net debt (Jun.17 vs Mar.17); Reduction of R$ 1.0 billion in EBITDA 12 months (Jun.17 vs Mar.17). 27

28 Dividends Corporate Structure Operating Performance Financial Highlights Capex 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. 28

29 Capex Corporate Structure Operating Performance Financial Highlights Capex Historical Capex Carried R$ million Capex by Business (Schedule 2017) Copel Dis 23% Copel GeT¹ 69% Outros² 8% 3,575 1,937 2,469 2,365 2,878 Carried Capex Schedule 2017³ -32.7% 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. 1,827 1H16 1,229 1H17 29

30 Capex Corporate Structure Operating Performance Financial Highlights Capex Investment Program 2017 Subsidiary / SPC Carried 2Q17 Carried 1H17 R$ million Scheduled Original Revised Copel Geração e Transmissão ,024.5 HPP Colíder HPP Baixo Iguaçu TL Araraquara / Taubaté TL Foz do Chopim - Realeza TL Assis - Londrina TL Curitiba Leste / Blumenau Mata de Santa Genebra Transmissão Cantareira Transmissora Paranaíba Transmissora Others Copel Distribuição Copel Telecomunicações Copel Comercialização Copel Renováveis Holding Cutia Wind Farm Complex Other Invesment TOTAL , , , Capital budget originally approved by the Board of Directors. These values do not consider appropriation due to own labor, interest and others. 2 Planned CAPEX under review. 3 Regarding the participation of Copel in Enterprises. 4 Includes Voltalia São Miguel do Gostoso I Participações among others. 30

31 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. 31

32 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). 32

33 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 33

34 Investor Relations ir.copel.com