Companhia Paranaense de Energia (CPLE6) Copel Day 2024 summary

Strategic Vision and Transformation

• Emphasis on becoming a benchmark in the Brazilian electric sector, focusing on consistent deliveries, operational excellence, disciplined capital allocation, and evolving organizational culture.

• Transformation into a corporation and multi-phase strategy (2024/25 for efficiency, 2025/26 for operational excellence, 2026/30 for expansion) have enabled greater agility, competitiveness, and investor attractiveness.

• Management and board are aligned on a long-term vision, prioritizing organic growth and value creation, with inorganic opportunities considered only after 2026.

• Strong focus on governance, integrity, and global investor relations, aiming to expand the investor base internationally.

• Execution and delivery of strategic promises, including portfolio optimization, decarbonization, and digital transformation, have simplified and de-risked the investment thesis.

Financial Discipline and Performance

• Achieved 135% TSR over five years, with 87% from capital gain and 48% from dividends, and a 48.5% CAGR in market value since 2018.

• Ongoing cost reduction initiatives targeting a 20% reduction in PMSO by 2026, with R$570 million in savings expected through workforce rebalancing and outsourcing.

• Nearly BRL 2 billion in divestments from non-strategic assets, with BRL 3 billion in new investments planned for 2025, mainly in distribution and transmission.

• R$600 million in extraordinary dividends distributed and a share buyback program of up to 10% over 18 months, with a commitment to sustainable, predictable payouts of at least 50%.

• Financial flexibility and optimal leverage maintained to support resilience and investment capacity.

Operational Excellence, Portfolio, and Innovation

• Major modernization of rural energy and smart grid deployment, with 1.7 million smart meters targeted by 2025 and a goal of 30% customer coverage by end of next year.

• Investments in automation, self-healing technology, and AI-driven grid management to improve resilience and reduce costs.

• Completed sale of 13 power plants, finalizing portfolio decarbonization and focusing on large HPPs, with expansion potential up to 6.3 GW.

• Leveraging smart metering and telecom infrastructure for new revenue streams and enhanced customer experience.

• Trading strategy leverages portfolio flexibility, hydropower advantages, and digital platforms to capture market volatility and customer migration opportunities.