results 1q11 and strategic framework - copel.com · strategic framework. 36 sustainability actions...
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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
GDP growth in 2010 – 7.5%
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
GDP growth in 2010 – 8.3%
Economic dataEconomic data
GDP – US$ 132.2 billion (6% of Brazil’s GDP)
5th biggest economy in Brazil
GDP growth in 2010 – 8.3%
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
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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 (%)
4.354.764.633.85
4.60
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
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AgendaAgenda
�� Regional Data
� Corporate Structure
� Operating Performance
� Financial Results
� Capex
� Sustainability Actions
� Strategic Framework
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%
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%UTE Araucária (2)
60.0%
UTE Araucária (2)
60.0%
Elejor70.0%
Elejor70.0%
Carbocampel49.0%
Carbocampel49.0%
Sercomtel Celular45.0%
Sercomtel Celular45.0%
Sercomtel Telecom45.0%
Sercomtel Telecom45.0%
Corporate StructureCorporate Structure
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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
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AgendaAgenda
�� Regional Data
� Corporate Structure
� Operating Performance
� Financial Results
� Capex
� Sustainability Actions
� Strategic Framework
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
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Operating PerformanceOperating Performance
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.
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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.
Generation GrowthGeneration Growth
Operating PerformanceOperating Performance
13
Generation GrowthGeneration Growth
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
Operating PerformanceOperating Performance
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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
Operating PerformanceOperating Performance
15
DistributionDistribution
182,499
3,792,243
352
Operating PerformanceOperating Performance
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.
Operating PerformanceOperating Performance
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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%
Operating PerformanceOperating Performance
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TransmissionTransmission
1,913
31
Permitted annual revenue (Jul/10 – Jun/11)
Transmission lines (Km)
Automated substations
Operating PerformanceOperating Performance
52% new assets48% existing assets
R$ 250 million
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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
Operating PerformanceOperating Performance
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
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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.
Operating PerformanceOperating Performance
� 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
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TelecommunicationsTelecommunications
Operating PerformanceOperating Performance
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AgendaAgenda
�� Regional Data
� Corporate Structure
� Operating Performance
� Financial Results
� Capex
� Sustainability Actions
� Strategic Framework
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)
Financial ResultsFinancial Results1Q111Q11
25
Operating RevenuesOperating RevenuesR
$ m
illio
n
6.7%
3.2%30.7%
Operating revenues 11.3%
Financial ResultsFinancial Results1Q111Q11
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%
Financial ResultsFinancial Results1Q111Q11
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
Financial ResultsFinancial Results1Q111Q11
28
Financial ResultsFinancial Results1Q111Q11
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
Financial ResultsFinancial Results1Q111Q11
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
�� Regional Data
� Corporate Structure
� Operating Performance
� Financial Results
� Capex
� Sustainability Actions
� Strategic Framework
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
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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
�� Regional Data
� Corporate Structure
� Operating Performance
� Financial Results
� Capex
� Sustainability Actions
� Strategic Framework
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.
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� 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
�� Regional Data
� Corporate Structure
� Operating Performance
� Financial Results
� Capex
� Sustainability Actions
� Strategic Framework
39
Strategic FrameworkStrategic Framework
� 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
Strategic FrameworkStrategic Framework
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
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NotesNotes