apresentação do powerpoint - copelir.copel.com/enu/9077/roadshow_ing.pdf · mata de santa genebra...
TRANSCRIPT
Disclaimer
2
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.
3
Agenda
About Sector
About Copel
Main Strategic Objectives
Leverage Analysis
Budget Supplementation
Startup New Assets
70
90
110
130
150
170
Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17 Jul-17
The Brazilian Electricity Sector Has Solid Foundations and attractive
4
• Brazil has a large energy market (>500 TWh in 2016);
• Expectation of a 47% increase in demand for energy between 2015-2024 (CAGR 4.37%);
• Significant structural improvements in the regulatory environment (lower perceived risk);
• Historically attractive returns for investors (IEE >100pp vs. IBOVESPA in the last 10 years/
IEE 62% vs. 49% IBOVESPA since Jan-2016);
• Focus Federal government renewed focus on attracting infrastructure investments (post-
retirement agenda);
Energy Index Performance
... And It Has A Prospect To Evolve Even More...
5
Privatization of hydroelectric palnts;
Enlargement of the free market;
Solve court issues of the sector;
Allocation of costs and rationalization;
Resumption of stability and credibility of the legal-regulatory framework;
Proposal for measures to improve the legal framework of the electricity sector - Public Consultation
Reduction of obstacles to the capture of investments in energy;
Expansion of energy commercialization;
New rules for conducting new and existing energy auctions;
Possibility of distributors negotiating with free consumers and other agents of the Free
Market contracts of sale of excess contracted energy.
Decree 9,143/2017
Agricultural 9.7% Industries
15.8%
Utilities 3.4%
Construction 5.8%
Commerce 16.1%
Services 49.2%
6
State of Paraná: Highlight in Growth
Geographic Information
Area: 199,000 km2 (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
7
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
1On 08.18.2017
One of the Largest Companies in the Sector
8
Geographical Diversification
> Present in 10 Brazilian States; > This diversification allows the company to
benefit from the dynamism of the main poles of generation, transmission and distribution of energy in Brazil;
Source: Economática
1) Updated until 08.18.2017.
Major Industry Companies in Revenue Terms
21.9 19.6
12.8 12.5 11.5 10.3 9.9 8.3
CPFL CEMIG Copel Engie Energisa Energiasdo Brasil
Light Equatorial
R$ billion – 1H17
27.5 22.8 19.5
11.9 10.8 10.3 9.0 7.1
CPFL Engie Eletrobras Equatorial TranPaulist
Cemig EDP Copel
Major Industry Companies in Market Value Terms¹
Major Industry Companies in the Enterprise Value Terms¹
58.2 46.4
24.5 22.9 15.2 15.2 14.1 12.0
Eletrobras CPFL Engie Cemig Copel Equatorial EDP TranPaulist
5,675 MW of installed capacity in operation
• 30 Power Plants¹ and 11 Corporate partnerships;
• Addition of 720 MW until 2019;
Generation
• 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);
Transmission
More than 4.5 million customers
• 4th largest in number of costumers ;
• 4th largest in electricity consumption (MWh);
Distribution
31,203 km de fibras ópticas
• 401 cities with optic fiber;
• 64 cities with broadband for retail;
Telecom
Copel has an Integrated Asset Base of High Quality ...
9
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: 1H2017.
10
Copel Distribuição – The Best Of Latam
Customers’ satisfaction;
Quality in energy supply;
Better Communication;
Excellence in customer
service;
Valuing the company image;
Image only portuguese.
Diversified matrix in operation
24 Hydroelectric Power Plant 15 Wind Power Plant 2 Thermal Power Plant 18 Transmission Lines
Ativos em construção
2 Hydroelectric Power Plant 13 Wind Power Plant 4 Transmission Lines
11
Copel Geração e Transmissão – Diversified Matrix
Copel Geração e Transmissão
1 2
3 4
1 – Wind Farm São Bento 2 – TPP Araucária 3 – HPP Foz do Areia 4 – HPP GPS
Copel has an Experienced Team and Already Adopts the Best Practices of Corporate Governance of the Sector ...
12
• Strong presence of corporate committees and councils: Committee for Disclosure of
Material Acts and Facts, Customer Council and Ethics Guidance Council;
• Risk and Integrity Management Actions: integrity program, programa de integridade,
code of conduct, risk assessment and channels of complaint;
• Sarbanes Oxley
• Strongly committed to sustainability and social programs:
– Signatory of the Global Compact since 2000;
– Participation in the Corporate Sustainability Index (ISE) of B3;
– 11 years adopting the guidelines of the GRI - Global Reporting Initiative;
– 2 years adopting Integrated Reporting Guidelines - IIRC - International Integrated
Reporting Council;
– 10 years in the Top 10 of the Abradee Social Responsibility Award;
– Participation in the Global Sustainability Index - MSCI since 2014 and FTSE4GOOD
Emerging Index;
Copel Has Some Additional Competitive Advantages ...
13
Power generation leadership in Paraná (~ 30%) with growth above the national
average (9.4 GW of unexplored market);
Greater exposure to the Spot Market among peers (22% of energy not contracted
in 2017 and 36% in 2018, reaching 78% in 2021);
Diversified energy matrix, with significant portions of its production coming from
non-hydro sources (~ 11% thermal and 7% wind);
High operational efficiency in distribution (DEC and FEC better than regulatory
limits);
Relevant long-term cash flow generation in transmission concessions (stable
long-term APR profile of the sector)
Demand in the concession area is stable and shows growth above the national
average (less importance of industrial consumption in the portfolio 23.3% vs.
35.6% in Brazil);
Copel is Currently Valued Below the Industry Average ...
14
Firm Value/ EBITDA (CY18E)
8.8
7.7
4.1
5.2 4.9
4.0
5.8
CPFL Eletrobras Cemig Energias do Brasil Copel LightCopel
4.9
Copel
7.0
Potential
Copel
+ ~43%
• Our Strategic Plan will be based on the recovery of the Company's value.
Main short-term strategic objectives ... Focus on cash flow generation ...
15
• Maintenance of cash flow generation for all current business (GeT, Dis, Telecom and
Commercialization);
• Priorization of investment plan to finalize projects in progress, in the shortest possible time,
ensuring the expected chash flow generation;
• Renegociation of short-term debt;
• Review of funding plan (BNDES, bond, monetization of CRC, etc);
• Optimization of costs (PDV, review of contracts, management of delinquency, judicial
deposits, etc);
• Sale of non-strategic assets (SPCs, land, properties, obsolete products in stock);
The Leverage Should Gradually Reduce
16
Evolution of Net Debt/EBITDA (R$ million)
Expectation of improvement in 2S17 result, driven by Copel Distribuição result;
EBITDA in 2S16 was impacted by the R $ 570 million impairment loss;
Outlook for reduction in the 2017 CAPEX;
Disbursement in 1H17 was R$ 1.2 billion;
Possibility of negociation of the 5th Issueance of Debenture of the Holding;
More restrictive contract (considers guarantees and endorsement as debt);
Reduction of CAPEX to 2018;
BNDES: extension of the debt term (up to 14 years);
R$ million
Actions to reduce leverage
3,562 2,775 3,249 2,195
EBITDA 12 months
6,200 7,284 7,446 7,543
1,282 1,373 1,510 1,492
2.1 3.1 2.8 4.1
Jun/16 Dec/16 Mar/17 Jun/17Net Debt Guarantees and endorsement
Debt should grow due
to interest and new
funding to support the
investment program.
Main Risks and Oportunities
17
Lower pace of economic recovery (delayed further reforms);
Sectorial issues (GSF and PLD);
Performance of energy consumption;
Possible impacts of impairment of generation assets (final adjustments of works);
Oportunities
Cut of costs;
81 identified actions; Review of third-party service contracts; Redundancy plan without the replacement of vacancies; Overtime cut; Review of provisions for litigation;
Sale of non-strategic assets;
Sanepar; Others;
Focus on reducing delinquency;
Risks
R$'000
Short Term
jul/17 - jun/18 jul/18 - dec/18 2019 2020 2021 2022 From 2023
Domestic Currency 2,947,116 1,405,283 2,823,952 560,757 182,811 204,608 1,258,279 9,382,806
Foreign Currency 783 - - - - - 88,148 88,931
TOTAL 2,947,899 1,405,283 2,823,952 560,757 182,811 204,608 1,346,427 9,471,737
Long TermTotal
Equating of Debt Focused on Cash Flow Generation and Greater Financial Discipline
18
Debt Maturity
1,253 133 829 1,077 363 699
1,951 2,084 2,913
3,990 4,353
3Q17 4Q17 1Q18 2Q18 3Q18 4Q18
Payment Schedule R$ million
maturity accumulated
Cash flow generation of current assets;
Cash flow generation of new assets;
Sale of assets;
Reduction of costs;
Debt rollover (principal);
Budget Supplementation
19
Investment Program 2017
Efforts in the works in progress to start up assets under construction
R$ million
Original Revised
Copel Geração e Transmissão 230.3 503.3 570.3 1,024.5
HPP Colíder2 44.5 50.9 24.1 125.3
HPP Baixo Iguaçu2 50.9 98.7 20.5 253.1
TL Araraquara / Taubaté 34.0 111.3 137.9 137.9
TL Foz do Chopim - Realeza 0.5 2.9 9.5 9.5
TL Assis - Londrina 11.9 24.6 20.4 20.4
TL Curitiba Leste / Blumenau 6.4 9.8 32.1 32.1
Mata de Santa Genebra Transmissão3 48.1 151.8 101.1 176.9
Cantareira Transmissora2 23.0 23.0 - 42.6
Paranaíba Transmissora2 - 2.1 - 2.1
Others 11.0 28.3 224.7 224.6
Copel Distribuição 148.7 283.0 629.6 649.2
Copel Telecomunicações 62.8 103.0 164.3 214.3
Copel Comercialização - - 0.2 0.2
Copel Renováveis - - 1.5 1.5
Holding - - 1.6 1.6
Cutia Wind Farm Complex 200.0 340.0 638.6 967.5
Other Invesment4 - - 28.8 18.7
TOTAL 641.8 1,229.3 2,034.9 2,877.5
2 Planned CAPEX under review.3 Regarding the participation of Copel in Enterprises.4 Includes Voltalia São Miguel do Gostoso I Participações among others.
1 Capital budget originally approved by the Board of Directors. These values do not consider appropriation due to own
labor, interest and others.
Scheduled 20171
Subsidiary / SPCCarried
1H17
Carried
2Q17
Expansion od Cash Flow Generation With the Start up of New Assets
20
Generation Assets
Power PlantInstalled Capacity
(MW)
Assured
Power¹
(Average MW)
Capex Project
(R$ million)Start-up Energy Sold² Stake
Under construction 588.3 301.0 4,156.8
125 average MW
R$ 160.61
121 average MW 30% Copel GeT
R$ 167.15 70% Noeenergia
71,5 average MW
R$ 173.61100% Copel GeTWind Farm Complex Cutia 183.3 71.5 1,318 2018
HPP Baixo Iguaçu3,4 2018105.0 51.4
HPP Colíder 300.0 178.1 100% Copel GeT20182,153
686
Transmission Assets
Subsidiarie / SPC AuctionSigning of
ContractEnterprise State km Subst
APR¹
(R$ million)
CAPEX²
(R$ million)Start up
Concession
Expiration
Copel GeT 001/10 oct/10 TL Araraquara II — Taubaté SP 356 - 29.0 434.3 Jan-18 10/5/2040
Subtotal Copel GeT 356 29.0 434.3
Mata de Santa GenebraCopel GeT - 50,1%
Furnas - 49,9%
007/13 may/14 TL Araraquara II - Bateias SP / PR 885 1 113.9 817.6 Nov-17 5/13/2044
CantareiraCopel GeT - 49%
Elecnor - 51%
001/14 set/14 TL Estreito - Fernão Dias SP / MG 342 - 47.6 422.2 Mar-18 9/4/2044
Subtotal SPCs 1,227 1 161.4 1,239.8
Total 1,583 1 190.4 1,674.1
¹ Updated according to Aneel Ratification Resolution 1918/2015 / Adjusted for Copel’s stake.
² Adjusted for Copel’s stake (considers own capital and third-party capital).
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/ 2017. Font CCEE. 3 Sold 70% in the regulated market. Concession Contract No. 002/2012 of 08.20.2012. Considering waiver of 756 days. 4 Adjusted by Copel’s stake.