results 1q11 and strategic framework - copel...bndes will finance part of the project. the...

11

Results 1Q11Results 1Q11

andand

Strategic FrameworkStrategic Framework

June, 2011

2

AgendaAgenda

�� Regional Data

� Corporate Structure

� Operating Performance

� Financial Results

� Capex

� Sustainability Actions

� Strategic Framework

3

Source: Central Bank of Brazil and IBGE

BrazilBrazil

Economic data

GDP – US$ 2.2 trillion

External debt – US$ 247.8 billion

International reserves – US$ 310 billion

GDP growth in 2010 – 7.5%

Economic dataEconomic data

GDP – US$ 2.2 trillion

External debt – US$ 247.8 billion

International reserves – US$ 310 billion


Geographical information

Area – 8,515 thousand km 2

Population – 190.8 million

States – 26 + Federal District

Municipalities – 5,565

Geographical informationGeographical information

Area – 8,515 thousand km 2

Population – 190.8 million

States – 26 + Federal District

Municipalities – 5,565

About BrazilAbout Brazil20102010

4

Source: IBGE and IPARDES

State of State of ParanParan áá

About About ParanParan áá20102010

Economic data

GDP – US$ 132.2 billion (6% of Brazil’s GDP)

5th biggest economy in Brazil


Economic dataEconomic data

GDP – US$ 132.2 billion (6% of Brazil’s GDP)

5th biggest economy in Brazil


Geographical information

Area – 199 thousand km 2 (2.3% of Brazilian territory)

Population – 10.4 million (5.5% of Brazil’s population)

Municipalities – 399

Geographical informationGeographical information

Area – 199 thousand km 2 (2.3% of Brazilian territory)

Population – 10.4 million (5.5% of Brazil’s population)

Municipalities – 399

5

Regional DataRegional Data

Industrial ProductionIndustrial Production

92

102

112

122

132

142

152

162

172

Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-10 Mar-10 May-10 Jul-10 Sep-10 Nov-10 Jan-11 Mar-11

Paraná Brazil

Expected Brazilian Industrial Production Growth (%)

4.354.764.633.854.60

2011 2012 2013 2014 2015

In 2010:• Brazil’s industrial production has grown 10.5%• Paraná’s industrial production raised 14.2%

Last 12 months (until March 2011):• Brazil’s industrial production has grown 6.8%• Paraná’s industrial production raised 12.1%

January 2002 = 100

Source: IBGE and Central Bank of Brazil

6

AgendaAgenda





� Capex



7

(1) Wholly-Owned Subsidiary(2) LimitedPS.: Copel also has 0.82% of Investco S/A (Lajeado Power Plant)

Other0.31%

Other0.31%

Copel Distribuição (1)100%

Copel Distribuição (1)100%Copel Geração e Transmissão

(1)

100%

Copel Geração e Transmissão (1)100%

Copel Telecom (1)100%

Copel Telecom (1)100%

Compagas51.0%

Compagas51.0%

Copel Amec (2)48.0%

Copel Amec (2)48.0%

Escoelectric (2)40.0%

Escoelectric (2)40.0%

Dona Francisca23.0%

Dona Francisca23.0%

Dominó Holdings45.0%

Dominó Holdings45.0%

Foz do Chopim (2)35.8%

Foz do Chopim (2)35.8%

UTE Araucária (2)20.0%


CEOLPAR (2)70.0%

CEOLPAR (2)70.0%

COPELCOPEL

Free Float44.09%

Free Float44.09%

State of Paraná31.08%

State of Paraná31.08%

BNDESPAR23.96%

BNDESPAR23.96%

Eletrobras0.56%

Eletrobras0.56%

CEOLPAR (2)30.0%

CEOLPAR (2)30.0%



Elejor70.0%

Elejor70.0%

Carbocampel49.0%

Carbocampel49.0%

Sercomtel Celular45.0%

Sercomtel Celular45.0%

Sercomtel Telecom45.0%

Sercomtel Telecom45.0%

Corporate StructureCorporate Structure

8

Capital StructureCapital Structure

Common

Elet ro bras1.1%

F ree F lo at ing

13.5%

State o f P araná58.6%B N D ESPA R

2 6 .4 %

Other0.4%

Preferred

Other0.2%Free

Floating78.6%

BNDESPAR21.2%

Thousand shares

State of Paraná 85,029 58.6 - - 13 - 85,042 31.1BNDESPAR 38,299 26.4 - - 27,282 21.3 65,581 24.0Eletrobras 1,531 1.1 - - - - 1,531 0.6Free Floating 19,620 13.5 130 33.4 100,903 78.7 120,653 44.1

BM&FBOVESPA 19,492 13.4 130 33.4 59,916 46.7 79,538 29.1NYSE 128 0.1 - - 40,843 31.9 40,971 14.9LATIBEX - - - - 144 0.1 144 0.1

Other 552 0.4 259 66.6 37 - 848 0.2TOTAL 145,031 100.0 389 100.0 128,235 100.0 273,655 100.0

Shareholders ON % PNA % % PNB % TOTAL

Corporate StructureCorporate Structure

9

AgendaAgenda





� Capex



10

Operating PerformanceOperating Performance

Generation AssetsGeneration Assets

Power Plants Installed Capacity (MW)

Assured Energy(Average MW)

Generation

Hydroelectric 4,530 1,952

Thermoelectric 20 10

Total 4,550 1,962

Stake

Hydroelectric 219 128

Thermoelectric 387 312

Wind Power 2 1

Total 608 441

Total 5,158 2,403

11


Mauá Hydroelectric Plant

The facility is located in Tibagi Riverin the State of Paraná, and will comprise a main power plant rated350 MW and an additional smallhydropower unit rated 11 MW, for a total of 361 MW of installed capacity.

Mauá is a partnership betweenCopel (51%) and Eletrosul (49%).

Generation GrowthGeneration Growth

The project is included in Growth Acceleration Program (PAC), and total estimatedexpenditures amount to R$ 1.1 billion. Copel, Eletrosul, BNDES, and Banco do Brasil have signed a financing agreement for the Mauá Power Plant in the amountof R$ 703 million.

12

Colíder

� Construction started on March 1st, 2011 and commercial operation is

scheduled to begin in the end of 2014. Total expenditures are estimated at

R$ 1.6 billion. BNDES will finance part of the project.

� The concession to build and

operate the power plant was

signed on January 17, 2011. The

power plant will be built at the

Teles Pires River (State of Mato

Grosso) with 300 MW of installed

capacity and 179,6 MW of assured

power.



13


Tapajós River Basin (1,375 MW):Teles Pires River:

São Manoel: 700 MWSinop: 400 MW

Apiacás River:Foz do Apiacás: 275 MW

Parnaíba River Basin:

5 projects: 430 MW

Canoas River:São Roque 146.6 MW

São Francisco River:

Riacho Seco 276 MW


14

GenerationGeneration(assured power)(assured power)

11% 11% 35% 31% 28%

41%89% 89% 24% 26%

46%24%

45%

0%

100%

2011 2012 2013 2014 2015

Free Market Regulated Market To be Contracted


15

DistributionDistribution

182,499

3,792,243

352


Distribution lines (Km)

Customers

Automated substations

16

Energy Sales (Energy Sales ( GWhGWh))

Segment 1Q11 1Q10 %

Residential 1,553 1,499 3.6

Industrial 1,765 1,710 3.2

Commercial 1,234 1,172 5.3

Rural 505 489 3.2

Other 520 508 2.4

Captive Market 5,577 5,378 3.7

Free Customers * 804 762 5.5

Concessionaires and Licensees 146 137 6.3

Grid Market 6,527 6,277 4.0

* All free customers served by Copel GET and other suppliers at the Copel DIS concession area.


17

Industrial Industrial ConsumptionConsumption byby SectorSector

Chemicals5.2%

Food & Beverage

32.5%

Lumber 7.9%

Pulp and Paper5.9%

Other35.2%

Rubber and

Plastics8.2%

Automotive5.1%


18

TransmissionTransmission

1,913

31

Permitted annual revenue (Jul/10 – Jun/11)

Transmission lines (Km)

Automated substations


52% new assets48% existing assets

R$ 250 million

19

TransmissionTransmission

Copel was awarded the concessionto build the Transmission LineAraraquara – Taubaté in the Stateof São Paulo, at a lenght of 356 km and the 230/138 kV SubstationCerquilho III.

New New ProjectsProjects to to bebe auctionedauctionedTaubaté – Nova Iguaçú (TLs 500 kV)Atibaia – Araraquara (TLs 500 kV)Araraquara – Campinas (TLs 500 kV)Umuarama – Ivinhema (TLs 500kV)Cascavel – Umuarama (TLs 230kV)Umuarama Substation


TL 500 kVTaubaté – Nova Iguaçú

Auction 2011

TL 500 kV – Circuit 2Araraquara – Campinas

Auction 2012

TL 500kVAtibaia – AraraquaraAuction 2012-2013

TL 500 kV – Circuit 1 Araraquara – Taubaté

SE 230 kV Cerquilho

Cerquilho

20

TelecommunicationsTelecommunications

BEL100: New extra broadband internet service with up to 100 Mbps.

This service is already available in some regions of Curitiba and will be available in the main cities of the State of Paraná.


� 6,595 km of optical cables in the main ring

� 12,028 km of self-sustained optical cables

� 252 cities served in the State of Paraná

� 2 cities served in the State of Santa Catarina

� 1,088 corporate customers

21

TelecommunicationsTelecommunications


22

AgendaAgenda





� Capex



23

Financial ResultsFinancial Results1Q111Q11

ConsolidatedConsolidated

� Operating Revenues : R$ 1,826 million

� Operating Income: R$ 578 million

� Net Income: R$ 385 million

� EBITDA: R$ 587 million

� Return on Shareholder’s Equity: 3.4% in 1Q11

24

SubsidiariesSubsidiaries

GET DIS TEL

Operating Revenues 563 1,263 38

Operating Income 283 250 15

Net Income 187 164 10

EBITDA 359 193 21

Return on Equity - % in 1Q11 2.9 4.9 4.2

(R$ million)


25

Operating RevenuesOperating RevenuesR

$ m

illio

n

6.7%

3.2%30.7%

Operating revenues 11.3%


571571571571

660660660660

361361361361

554554554554

338338338338

505505505505

0

100

200

300

400

500

600

700

Use of transmission grid Electricity sales to finalcustomers

Electricity sales to distributors

1Q2011 1Q2010

26

185185185185

545545545545

154154154154

466466466466

176176176176142142142142

0

100

200

300

400

500

600

Electricitypurchased Charges for use of grid Personnel

1Q2011 1Q2010

Operating Costs and ExpensesOperating Costs and ExpensesR

$ m

illio

n

5.5%8.5%

16.9%

Operating costs and expenses 5.7%


27

Net IncomeNet Income

385385385385319319319319

0

100

200

300

400

1Q2011 1Q2010

20.5%R

$ m

illio

n

Return on Shareholders’ Equity: 3.4% in the quarter


28


Domestic Domestic Domestic Domestic CurrencyCurrencyCurrencyCurrency

62.8%62.8%62.8%62.8%

Domestic Domestic Domestic Domestic CurrencyCurrencyCurrencyCurrency

34.3%34.3%34.3%34.3% Foreign Foreign Foreign Foreign CurrencyCurrencyCurrencyCurrency

0.3%0.3%0.3%0.3%

Foreign Foreign Foreign Foreign CurrencyCurrencyCurrencyCurrency

2.6%2.6%2.6%2.6%

Debt/ Shareholders’ Equity: 16.7%

Debt ProfileDebt Profile

Total DebtR$ 1,949.6

Long Term R$ 1,275.6

Short Term R$ 673.7

Total Foreign CurrencyR$ 56.1

Total Domestic CurrencyR$ 1,893.2

(R$ million)

29

Leverage CapacityLeverage Capacity

912

1,193

562

51

(367)

1,312

(407)(215)(500)

(200)

100

400

700

1,000

1,300

2004 2005 2006 2007 2008 2009 2010 1Q11

R$

mill

ion

-0.5

0.0

0.5

1.0

1.5

times

Net Debt Net Debt/EBITDA


30

COPEL's preferred shares (CPLE6) included in the IBrX 50 index

Stock Performance at the BM&FBovespa12/31/10 - Base 100

90

95

100

105

110

115

31-Dec 11-Jan 25-Jan 1-Feb 15-Feb 28-Feb 8-M ar 22-M ar 31-M ar 12-Apr 26-Apr 11-M ay 24-M ay

ON PNB IBOVESPA

Financial ResultsFinancial Results

31-May

31

AgendaAgenda





� Capex



32

CapexCapex

327.2441.5 437.3

930.6

515.2

776.0943.9

1,027.3

2,060.5

2003 2004 2005 2006 2007 2008 2009 2010 2011

(R$ million)

(*) Scheduled

Historical (2003 Historical (2003 ––2011)2011)

(*)

33

CapexCapex

(R$ million)

Carried out Scheduled

1Q11 2011

Generation and Transmission 119.0 1,024.8

Mauá Hydroelectric Plant 45.3 164.4

Colíder Hydroelectric Plant 30.0 492.4

Cavernoso II SHP 1.5 78.5

Other 42.2 289.5

Distribution 141.4 933.3

Telecommunications 16.6 102.4

TOTAL 277.0 2,060.5

34

Main Investments Main Investments -- 20112011

CapexCapex

� R$ 492 million in Colíder Hydroelectric Plant

� R$ 165 million in distribution services to new customers

� R$ 245 million in distribution maintenance and system improvements

� R$ 312 million in transmission lines and substations

� R$ 38 million in social programs

� R$ 164 million in Mauá Hydroelectric Plant

� R$ 78 million in Cavernoso II SHP

� R$ 83 million in new telecommunication lines

35

AgendaAgenda





� Capex



36

SustainabilitySustainability ActionsActions

� Small Hydroelectric Plants (SHPs)Copel also participates in several SHP projects. According to Aneel, the potential of SHPs in Brazil is approximately 15,000 MW of installed capacity.

�Cavernoso II

Construction of the SHP with installed capacity of 19 MW

and assured power of 10.6 average MW.

37

� Wind Power Plants

Wind atlas and map of Brazil has been distributed to interested entities.

Brazil wind power potential is approximately 150,000 MW of installed capacity.

Call for Proposals under way selecting new projects.

� Distributed Energy Generation - BiogasParticipation in pilot project for generation of biogas electricity from swine refuse.

SustainabilitySustainability ActionsActions

38

AgendaAgenda





� Capex



39


� Invest in profitable projects

� Minority interest in new partnerships

� Operations beyond the borders of the State of Paraná

� Focus on the core business

� Guarantee the non-application of tariff discount

� Progressively increase dividends

� Costs control

� Improvement in the capital structure d fund new

� Acquire assets related to core business

GuidelinesGuidelines

40

MISSIONMISSIONProviding energy and solutions for

sustainable development

VISIONVISIONSimply the best in the decade


41

TransparencyTransparency

Respect for PeopleRespect for People

ResponsibilityResponsibility

SafetySafety

InnovationInnovation

DedicationDedication

EthicsEthics

ManagemetManagemet ValuesValues

42

Core Business Non Core

� Energy � Telecommunications

� Generation � Gas Distribution

� Transmission � Sanitation

� Distribution � Engineering

� Power Trading

ManagementManagement ’’s Business Operationss Business Operations

43

�Energy Generation

�Conclusion of Mauá Power Plant – 361 MW

�Beginning of the construction of Colíder Power Plant – 300 MW

�Fulfillment, by the end of the year, of the necessary conditions to begin São JerônimoPower Plant – 331 MW

�Conclusion of the studies for sustainable interest in Baixo Iguaçu Power Plant - 350 MW

�Participation in renewable energy source auctions – adding up to 500 MW

�Beginning of Cavernoso II Small Hydroelectric Power Plant (SHP) – 19 MW

�Conclusion of the feasibility studies of SHPs on Chopim River – up to 120 MW

�Beginning of Dois Saltos SHP – 25 MW

�With five Call for Proposals, more than a hundred possibilities for acquisition of generation projects are under study

Priority Projects Priority Projects -- 20112011

44

� Energy Transmission

� Expected investments up to R$ 500 million in transmission

� Energy distribution

� Maintain the investments required for the excellence of operations

� Establish reliability islands to attract industries and to the existing complexes

� Expand distribution by attracting new customers

� Voluntary Redundancy Program

� Potential up to 1,300 employees joining the program

� Potential reduction of up to 19% in payroll

� Average amortization period is 13 months

Strategic Planning Strategic Planning -- 20112011

45

NotesNotes

46

NotesNotes

47

InvestorInvestor [email protected]

(55 41) 3222-2027www.copel.com/ir

results 1q11 and strategic framework - copel...bndes will finance part of the project. the...

Documents