2010 Latin America Regulated Industries Conference

Transcription

1 Companhia Paranaense de Energia COPEL 2010 Latin America Regulated Industries Conference January 19-21, 2010 Investor Relations 1 Investor Relations

2 Agenda Brazilian Data Copel s Highlights Corporate Structure Operating Performance Financial Results Capex Sustainability Actions Strengths Investor Relations 2

3 Brazilian Data 2008 Brazil Physical data Area 8,515 thousand km 2 Population million States 26 + Federal District Municipalities 5,561 Economic data GDP US$ 1.6 trillion Exports US$ billion (FOB) Imports US$ billion (FOB) External debt US$ 199 billion International reserves US$ billion Source: Central Bank of Brazil, IBGE and IPEADATA N S Investor Relations 3

4 Brazilian Data 2008 State of Paraná Physical data Area 199 thousand km 2 (2.3% of Brazilian area) Population 10.5 million (5.5% of Brazilian population) Municipalities 399 Economic data GDP US$ 92.0 billion (5,8% of Brazilian GDP) 5 th biggest Brazilian economy Exports US$ 15.2 billion (FOB) Imports US$ 14.6 billion (FOB) State of Paraná Source: IPARDES and IPEADATA Investor Relations 4

5 Brazilian Data Electric Sector Brazil - Electric Power Installed Capacity (GW) Hydro 73.9% Thermo 23.6% Nuclear 1.9% Wind 0.6% Other 39.9% Brazil - Installed Capacity Chesf 11.9% Eletronorte 10.7% Furnas 10.6% Cesp 8.1% Paraná - Electric Power Copel 4.9% Cemig 6.9% Tractebel 7.0% Installed Capacity (GW)* 17.7 (16.8% of Brazilian Installed Capacity ) 3 rd largest Installed Capacity Consumption (TWh) 23.5 (6.1% of Brazilian Consumption) *Installed capacity refers to all power plants in the State of Paraná and 50% of power plants on rivers that mark state borders. Source: ABRAGE and ANEEL Investor Relations 5

6 Brazilian Data Electric Sector Brazil - Energy Distribution Distributors 63 Clients (million) 63.8 Brazil - Market Breakdown The 7 largest companies have 51% of market-share State-owned companies: 34% Private companies: 66% Other 39.0% Bandeirante 3.1% Celpe 3.1% *2007 Distribution Market* Elektro 3.8% Eletropaulo 12.4% Coelba 4.3% Celesc 5.3% Cemig 7.9% CPFL 7.2% Light 6.9% Copel 7.0% Source: ABRADEE and ANEEL Investor Relations 6

7 Agenda Brazilian Data Copel s Highlights Corporate Structure Operating Performance Financial Results Capex Sustainability Actions Strengths Investor Relations 7

8 Financial Highlights 9M09 Net Income of R$ million (R$ 3.09 per share). EBITDA of R$ 1,368.7 million. Return on Equity of 10.7% in 9M09. Debt/Equity Ratio of 19.4%. Excluding Elejor s and Compagas debts, the debt/equity ratio would be 16.7%. Net Operating Revenue: R$ 4,131.8 million, 1.9% higher than in 9M08. Fitch announced the maintenance of Copel s rating of AA(bra) in September, Investor Relations 8

9 Operating Highlights 9M09 Energy Market 9M09 (compared to 9M08) Growth Rate Brazil* % South* % Copel Captive Market % Residential Industrial (10.3) (8.6) (3.2) Commercial Total (2.4) (1.9) 2.2 * EPE % Copel 2.2 Brazil (2.4) South Region (1.9) Copel Investor Relations 9

10 Operating Highlights 9M09 Copel won the J concession at the ANEEL auction on May 8 Foz do Iguaçu Cascavel 525 kv transmission line (115 km). An exception for the financing from BNDES was already authorized by National Monetary Council. Mauá Hydroelectric Power Plant River diversion was concluded on September 1, R$ million from BNDES s loan has already been released. Investor Relations 10

11 Agenda Brazilian Data Copel s Highlights Corporate Structure Operating Performance Financial Results Capex Sustainability Actions Strengths Investor Relations 11

12 Corporate Structure September 09 State of Paraná State of Paraná 31.08% 31.08% BNDESPAR BNDESPAR 23.96% 23.96% Free Float Free Float 44.09% 44.09% Eletrobrás Eletrobrás 0.56% 0.56% Other Other 0.31% 0.31% COPEL Copel Geração e Transmissão Copel Geração e Transmissão 100% 100% Copel Distribuição Copel Distribuição 100% 100% Copel Telecom Copel Telecom 100% 100% Eólicas do Paraná Eólicas do Paraná 70.0% 70.0% Copel Empreendimentos Copel Empreendimentos 100.0% 100.0% UEG Araucária UEG Araucária 60.0% 60.0% Elejor* Elejor* 70.0% 70.0% Carbocampel* Carbocampel* 49.0% 49.0% Sercomtel Celular* Sercomtel Celular* 45.0% 45.0% Sercomtel Telecom* Sercomtel Telecom* 45.0% 45.0% Compagas* Compagas* 51.0% 51.0% Copel Amec Copel Amec 48.0% 48.0% Escoelectric Escoelectric 40.0% 40.0% Dona Francisca* Dona Francisca* 23.0% 23.0% Dominó Holdings* Dominó Holdings* 45.0% 45.0% Eólicas do Paraná Eólicas do Paraná 30.0% 30.0% Foz do Chopim Foz do Chopim 35.8% 35.8% UEG Araucária UEG Araucária 20.0% 20.0% (*) Stake in the voting capital stock (ON shares) Investor Relations 12

13 Corporate Structure September 09 Company s s Stock Capital ON/COMMON ELETROBRÁS 1.1% BNDESPAR 26.4% Free Floating 13.5% Other 0.4% State of Paraná 58.6% PREFERRED Other 0.2% BNDESPAR 21.2% Free Floating 78.5% Investor Relations 13

14 Agenda Brazilian Data Copel s Highlights Corporate Structure Operating Performance Financial Results Capex Sustainability Actions Strengths Investor Relations 14

15 Operating Performance September 09 Generation Assets Copel s installed capacity represents 5% of Brazil s total capacity GENERATION Power Plants Installed Capacity (MW) Assured Energy (Average MW) Hydroelectric 4, ,946.6 Thermoelectric Total 4, ,956.9 PARTNERSHIPS Hydroelectric Thermoelectric Wind power Total Total 5, ,398.8 Investor Relations 15

16 Operating Performance September 09 Mauá Power Plant 361 MW Copel has withdrawn the first installment from the BNDES and Banco do Brasil financing for the Mauá project in the amount of R$ million. The total approved loan to Copel to finance the construction was R$ million. Excavation of the diversion tunnels has been concluded and they are being concreted. The Tibagi River diversion to begin dam construction was concluded on September 1, Investor Relations 16

17 Operating Performance September 09 Assured Energy Level of contracted energy 85% 88% 89% 89% 43% 25% 22% 14% 12% 11% 11% 30% 28% 29% Free Market Regulated Market Electricity from Copel Geração e Transmissão is contracted at auctions, through bilateral agreements and by free customers. Investor Relations 17

18 Operating Performance 9M09 Energy Sales (GWh( GWh) Segment 9M09 9M08 % Residential 4,220 4, Industrial 4,915 5,077 (3.2) Commercial 3,097 2, Rural 1,259 1, Other 1,479 1, Total Captive Customers 14,970 14, Free Customers 2,200 2,554 (13.9) Concessionaires Grid Market 17,559 17,573 (0.1) Investor Relations 18

19 Operating Performance 9M09 Industrial Consumption by Sector Food & Beverage 32.7% Lumber 8.2% Rubber and Plastics 8.1% Paper and Pulp 6.5% Chemicals 5.4% Other 28.1% Furniture 3.1% Metallurgy 3.1% Textiles 4.8% The food & beverage industry is our chief industrial customer, making Copel less vulnerable to the crisis. Investor Relations 19

20 Operating Performance September 09 Power Transmission Copel s transmission lines (basic network) represents 2% of the total Brazilian transmission network. Km of transmission Lines 1,883 Number of automated substations 31 Copel was the first Brazilian energy company to reach an automation ratio of 100%. Investor Relations 20

21 Operating Performance September 09 Power Distribution Third-largest distribution network in Brazil. km network customers 178,985 3,592,913 substations Automated substations Municipalities served Locations served 393 1,108 Investor Relations 21

22 Operating Performance September 09 Telecommunications First power concession holder to provide corporate telecommunication services, covering an area that serves 80% of the State of Paraná s population. 5,633 km of optical cables on the main ring 8,095 km of self-sustained optical cables 202 cities served 680 corporate customers BEL: Copel has begun installing and testing the equipment that will provide super-broadband internet access services. PLC: Copel is investing in Powerline Communications Technology (PLC). The pilot project, comprising telephony and super-broadband internet services, will involve 300 users in the town of Santo Antônio da Platina. Investor Relations 22

23 Agenda Brazilian Data Copel s Highlights Corporate Structure Operating Performance Financial Results Capex Sustainability Actions Strengths Investor Relations 23

24 Financial Results 9M09 Operating Revenue 4.8% 1.9% Gross Operating Revenue grew 4.8% 2,090 2,311 Line R$ million % Retail Revenue and TUSD R$ miilion 6,146 4,056 6,443 4,132 Energy Supply Telecom revenues Other M08 9M09 Net Operating Revenue grew 1.9% Gross Op. Rev Deductions Net Op. Rev. Investor Relations 24

25 Financial Results 9M09 Operating Costs and Expenses 5.8% Line R$ million % Charge for the use of transmission grid Payroll R$ million ,889 3, Energy purchased for resale Material Natural Gas Pension and healthcare plan (7.4) (76.4) (6.7) - 9M08 9M09 Investor Relations 25

26 Financial Results 9M09 ROE* (%) equity- net income net income shareholders' Net Income* (R$ million) EBITDA* (R$ million) 1, , , , *Not reclassified Investor Relations 26

27 Financial Results September 09 Debt Profile (R$ million) Total Debt R$ 1,697.8 Domestic Currency 89.1% Domestic Currency Foreign 5.2% Currency 1.5% Foreign Currency 4.2% Short-Term R$ Long-Term R$ 1,584.4 Total Foreign Currency R$ 97.9 Total Domestic Currency R$ 1,599.9 Debt/Shareholders Equity: 19.4% Investor Relations 27

28 Financial Results September 09 Net Debt R$ million 2,300 1,800 1, ,014 1,611 1, , Sep times Net Debt Net Debt/ EBITDA Net debt = short and long-term debt less cash and cash equivalents Investor Relations 28

29 Financial Results 9M09 Wholly-Owned Subsidiaries Results R$ million GET DIS Telecom Consolidated Total Assets 5,304 5, ,762 Shareholders Equity 3,971 3, ,732 EBITDA ,369 EBITDA Margin (%) Net income ROE (%) Investor Relations 29

30 Agenda Brazilian Data Copel s Highlights Corporate Structure Operating Performance Financial Results Capex Sustainability Actions Strengths Investor Relations 30

31 Capex Investment Program (R$ million) Carried Scheduled Scheduled 9M Generation and Transmission UHE Mauá Distribution Telecommunications Total , ,342.9 Investor Relations 31

32 Capex Main Investments R$ 135 million in Distribution Services to Customers R$ 150 million in Distribution Maintenance and System Improvements R$ 195 million in Distribution Lines and Substations R$ 92 million in Social Programs R$ 323 million in Mauá Hydro Power Plant R$ 15 million in Cavernoso I Small Hydro Power Plant R$ 78 million in Transmission Lines and Substations R$ 75 million in new Telecommunication Lines Investor Relations 32

33 Capex Strategic Planning Goals GEN TRA DIS Telecom Increase installed capacity 857 MW by 2017 Increase transmission lines 544 km by 2015 Incorporation of 110 thousand customers and acquisition of 11 companies by 2011 Expand market 2,500 links/year by 2015 Average increase of 5% in annual revenue Investor Relations 33

34 Agenda Brazilian Data Copel s Highlights Corporate Structure Operating Performance Financial Results Capex Sustainability Actions Strengths Investor Relations 34

35 Sustainability Actions Small Thermal Plants (PCTs) fired by sugarcane pulp Copel intends to establish partnerships with ethanol and sugar mills for the construction of PCTs powered by sugarcane bagasse. The potential of this type of project in the State of Paraná can reach 600 MW. Small Hydroelectric Power Plants (PCHs) Copel intends to take part in PCHs projects, totaling 311 MW of installed capacity. The potential of PCHs in Paraná State is approximately 900 MW. Investor Relations 35

36 Sustainability Actions Wind Power Plant Wind atlas and map of Paraná has been distributed to interested entities. Wind power potential in the State: 3,000 MW for 100-meter height. Distributed Energy Generation - Biogas Participation in pilot project for generation of electricity from biogas produced by swine manure, which is expected to be concluded in the first half of Investor Relations 36

37 Sustainability Actions Biofuels An economic, technical and financial feasibility study for the implementation of a small biodiesel plant, with capacity to produce 5,000 liters per day, was initiated. Electric Vehicle Development of studies to enhance batteries, recharge outlets and the performance of electric vehicles. Other Projects Microphytes Energy Forests Vegetal Oil Fuel Efficient Ethanol Catalysts Investor Relations 37

38 Agenda Brazilian Data Copel s Highlights Corporate Structure Operating Performance Financial Results Capex Sustainability Actions Strengths Investor Relations 38

39 Strengths Main Drivers Expand the power generation, transmission and distribution systems Pursue short-term productivity and long-term sustainable growth Seek permanent customer satisfaction and a highly motivated and trained workforce Strive for excellence in costs, relationships and innovation Strive for excellence in data, video and voice transmission Search for new technologies in the electric energy sector to expand the matrix with non-polluting and renewable sources Investor Relations 39

40 Strengths High leverage potential Intensification of efforts to adopt best corporate governance practices Continuous improvement in financial results Strong brand recognition among clients (customer survey) Growing industrialization in the concession area (5 th largest economy in Brazil) Excellent potential for stock appreciation Renewal of concessions for Copel s largest plants already granted Energy released from 2012 regulated contracts is being allocated to the free market. Investor Relations 40

41 Strengths New Formal Jobs Change in the number of formal jobs 11M % 4.41% 4.40% Brazil 1,410,302 openings South 256,967 openings Paraná 105,068 openings Source: CAGED Investor Relations 41

42 Strengths GDP Growth (%) Brazil Paraná Source: IPARDES Investor Relations 42

43 Strengths Industrial Production Brazil Paraná 92 Oct 07 Dec 07 Feb 08 Apr 08 Jun 08 Aug 08 Oct 08 Dec 08 Feb 09 Apr 09 Jun 09 Aug 09 Oct 09 Source: IBGE Investor Relations 43

44 Investor Relations 44 COPEL Investor Relations (55-41)