Companhia Paranaense de Energia (CPLE6) Copel Day 2024 summary

Strategic direction and business transformation

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

• Multi-phase strategy: 2024/25 for structuring efficiency, 2025/26 for operational excellence, and 2026/30 for expansion through organic and inorganic growth.

• Ongoing transformation post-privatization, including a new C-level team with market expertise and a culture of ownership and meritocracy.

• Divestment of non-strategic assets and focus on large-scale, high-return projects, especially in renewable energy.

• Digital transformation initiatives, including smart grids, advanced metering, and customer-centric digital platforms.

Financial performance and capital allocation

• Achieved 135% TSR over five years and a 48.5% CAGR in market value since 2018.

• Targeting a 20% reduction in PMSO by 2026, with R$570 million in savings through cost optimization and workforce rebalancing.

• Nearly BRL 2 billion in divestments and BRL 3 billion in investments for 2025, prioritizing distribution and transmission.

• Announced BRL 600 million in extraordinary dividends for 2024 and a share buyback program of up to 10% over 18 months.

• Commitment to a sustainable payout policy, aiming for at least 50% payout, with potential for further simplification post-capital structure review.

Operational excellence and innovation

• Modernization of rural energy and implementation of Brazil’s largest smart grid program, targeting 1.7 million meters by 2025.

• Automation and digitalization of grid operations, including self-healing technology and AI-driven maintenance.

• Proactive climate resilience measures, such as vegetation mapping and AI-based storm impact forecasting.

• Integration of trading, generation, and distribution for portfolio optimization and customer-focused energy solutions.

• Focus on extracting value from existing assets, such as expanding hydropower capacity and monetizing grid infrastructure for telecoms.