Pursuant to Rule 13a-16 or 15d-16 of the
80420-170 Curitiba, Paraná
Federative Republic of Brazil
(5541) 3222-2027
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes _______ No ___X____
 |
2012 Results Curitiba, Brasil, March 25 2013 – Companhia Paranaense de Energia - Copel (NYSE: ELP / LATIBEX: XCOP / BOVESPA: CPLE3, CPLE5, CPLE6), a company that generates, transmits, distributes and sells power, announces its results for 2012. Copel’s consolidated balance sheet presents the figures of its wholly-owned subsidiaries (Copel Geração e Transmissão, Copel Distribuição and Copel Telecomunicações), controlled companies and investees. The consolidated financial statements were prepared in accordance with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB), and with accounting practices adopted in Brazil. Highlights > Net Operating Revenue: R$ 8,532 million. The Company’s shares and main indexes presented the following variations in the period: |
| Ticker | Price 12/31/2012 |
Var. % year |
Index | Points 12/31/2012 |
Var. % year |
| CPLE3 (common/ BM&FBovespa) | R$ 25.20 | (23.7) | Ibovespa | 60,952 | 7.4 |
| CPLE6 (preferred B/ BM&FBovespa) | R$ 31.70 | (18.5) | IEE | 28,792 | (11.7) |
| ELP (ADS/ Nyse) | US$ 15.35 | (26.8) | Dow Jones | 13,104 | 7.3 |
| XCOP (preferred B/ Latibex) | € 11.62 | (28.3) | Latibex | 2,594 | (10.7) |
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| LIST OF CONTENTS | |
| 1. General Information | 3 |
| Decision on the Extension of Concessions | 4 |
| Copel Wins Two Lots in Aneel Transmission Auction 007/2012 | 4 |
| 2. Income Statement | 5 |
| 2.1 Net Operating Revenue | 5 |
| 2.2 Operating Costs and Expenses | 6 |
| 2.3 EBITDA | 7 |
| 2.4 Equity in the Results of Investees | 7 |
| 2.5 Financial Results | 8 |
| 2.6 Consolidated Net Income | 8 |
| 3. Balance Sheet and Investment Program | 8 |
| 3.1 Assets | 8 |
| 3.1.1 Cash, Cash Equivalents and Financial Investments | 8 |
| 3.1.2 CRC Transferred to the State of Paraná | 8 |
| 3.1.3 Accounts Receivable Related to the Concession | 9 |
| 3.1.4 Accounts Receivable Related to the Extension of the Concession | 9 |
| 3.1.5 Property, Plant and Equipment | 9 |
| 3.1.6 Intangible Assets | 9 |
| 3.2 Liabilities and Shareholders’ Equity | 10 |
| 3.2.1 Debt | 10 |
| 3.2.2 Payables related to the Concession – Use of Public Property | 11 |
| 3.3 Investment Program | 12 |
| 4. Shareholding Structure | 12 |
| 5. Consolidated Financial Statements | 13 |
| 5.1 Assets | 13 |
| 5.2 Liabilities | 14 |
| 5.3 Income Statement | 15 |
| 5.4 Cash Flow | 16 |
| 6. Financial Statements – Wholly-owned Subsidiaries | 17 |
| 6.1 Assets | 17 |
| 6.2 Liabilities | 18 |
| 6.3 Income Statement | 19 |
| 7. Power Market | 20 |
| 7.1 Captive Market | 20 |
| 7.2 Grid Market (TUSD) | 20 |
| 7.3 Energy Flow | 21 |
| 8. Supplementary Information | 23 |
| 8.1 Tariffs | 23 |
| 8.2 Main Operational and Financial Indicators | 24 |
| 8.3 2012 Results Conference Call | 25 |
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1. General Information
Copel’s net income totaled R$ 726.5 million in 2012, 38.3% down from R$ 1,176.9 million in 2011, due to: (i) adjustments to the balance sheet of Copel Distribuição as determined by the electricity sector regulatory agency, Aneel, related to the 3rd Cycle of the Tariff Revision (net negative impact of R$ 236.6 million –leading to an average tariff reduction of 0.65% for customers, and compliance with Aneel Resolution 474/12 (net negative impact of R$28.1 million), extending the useful life of energy assets; (ii) the change in regulatory assets and liabilities not recognized under IFRS (net negative effect of R$ 82.6 million in 2012, versus a net positive effect of R$ 64.4 million in 2011); and (iii) the adhesion of 790 employees to the Succession and Voluntary Redundancy Program (PSDV) in 2012, which resulted in a net negative effect of R$ 111.4 million.
The table below summarizes the highlights for the period:
| Operational Data | 2012 | 2011 | Var. % |
| Energy Sold (GWh) | 41,878 | 41,038 | 2.0 |
| Copel Distribuição | 23,916 | 23,396 | 2.2 |
| Copel Geração | 17,962 | 17,642 | 1.8 |
| Average Rates (BRL / MWh) | |||
| Power Purchase Average Rate - Copel Distribuição | 115.08 | 107.22 | 7.3 |
| Retail Average Rate - Copel Distribuição | 245.80 | 246.79 | (0.4) |
| Sales to Distributors Average Rate - Copel GeT | 98.69 | 93.42 | 5.6 |
| Economic and Financial Result (R$ thousand) | 2012 | 2011 | Var. % |
| Operating Income | 972.7 | 1,583.9 | (38.6) |
| EBITDA | 1,551.1 | 1,912.3 | (18.9) |
| Adjusted EBITDA by Regulatory Assets and Liabilities | 1,676.2 | 1,814.7 | (7.6) |
| Net Income | 726.5 | 1,176.9 | (38.3) |
| Capex | 1,872.4 | 1,769.2 | 5.8 |
| Net Debt | 1,014.4 | 540.7 | 87.6 |
| Shareholders' Net Equity | 12,497.5 | 12,069.5 | 3.5 |
| Indicators | 2012 | 2011 | Var. % |
| EBITDA Margin | 18.2% | 24.6% | (26.0) |
| Adjusted EBITDA Margin | 19.6% | 23.3% | (15.7) |
| ROE | 6.0% | 10.4% | (42.4) |
| Operating Margin | 11.4% | 20.4% | (44.1) |
| Net Margin | 8.5% | 15.1% | (43.7) |
| Net Debt / EBITDA (annualized) | 0.65 | 0.28 | 132.7 |
| Book Value per Share | 45.67 | 44.10 | 3.6 |
| Netdebt / Shareholders' Net Equity | 26.1% | 18.0% | 45.0 |
| Current Liquidity | 1.7 | 1.8 | (5.6) |
| Earnings per Share (EPS) | 2.65 | 4.30 | (38.3) |
| Values subject to rounding adjustments. | |||
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Decision on the Extension of Concessions
The 184th Extraordinary Shareholders’ Meeting, supported by a recommendation made by the Board of Directors at its 109th Extraordinary Meeting, resolved (i) to reject the government agency’s proposal to anticipate the extension of the concession of the power plants Parigot de Souza, Chopim I and Mourão, which expire in 2015, and Rio dos Patos, which expires in 2014, in Aneel Concession Agreement 045/1999, and (ii) to accept the government agency’s proposal to anticipate the extension of the transmission assets in Aneel Concession Agreement 060/2001. This decision took into consideration the cash generating capacity and the strategic dimension of these assets, in both cases preserving the Company's value as much as possible. Aneel Resolution 1395/2012, of December 11, 2012, adjusted the new Annual Permitted Revenue (APR) for the assets of Transmission Concession Agreement 060/2011 from R$ 304.9 million to R$ 116.1 million.
Copel Wins Two Lots in Aneel Transmission Auction 007/2012
In the transmission auction held on December 19, 2012, the Company won the right to build and operate the following projects:
| SPC / Subsidiary | TL | State | km | Substation | Partnerships | APR* (R$ milion) |
CAPEX * (R$ milion) |
Start-Up (months)** |
| COPEL GeT | LT Assis — Paraguaçu Paulista II SE Paraguaçu Paulista II |
SP | 37 | 1 | 100% COPEL GeT | 5.9 | 57.8 | jan/15 |
| Paranaíba Transm. De Energia S.A | Barreiras II - Pirapora II | SP MG GO |
967 | - | 24,5% COPEL GeT 24,5% Furnas 51,0% State Grid |
100.5 | 960.0 | 36 |
*ANEEL reference value.
**Related the date of signature of the concession contract
Copel’s management reiterates its commitment to financial discipline in the execution of its growth plan, as the acquired lots have expected returns above the cost of capital.
Extraordinary Tariff Revision
On January 24, 2013, Aneel published Resolution 1431 approving the Extraordinary Tariff Revision arising from Law 12783/2013, which extended the power transmission and generation concessions expiring until 2017, and Provisional Measures 591/2012 and 605/2013. The main changes leading to the tariff reduction were: (a) the allocation of energy quotas, resulting from the generation units whose concessions were renewed, at an average price of R$ 32.81/MWh, (b) the decline in transmission costs, (c) lower industry charges, and (d) removal of subsidies from the tariff structure, with a direct contribution from the National Treasury. The tariffs that reflect the Extraordinary Tariff Revision and the pertinent financial components will come into effect from January 24 to June 23, 2013. COPEL's tariff fell by 19.3% on average.
Payout
The 139th Annual Meeting of Copel’s Board of Directors, held on December 19, 2012, resolved to anticipate R$ 138.1 million as interest on own capital for 2012 as a replacement for dividends, whose amount will be offset at the time the annual dividends for 2012 are defined, as follows: R$ 0.47920 per common share, R$ 2.52507 per class “A” preferred share, and R$ 0.52720 per class “B” preferred share. Payment to shareholders registered as such on January 2, 2013 commenced on January 15, 2013.
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The payment of R$ 268.6 million in dividends and interest on own capital will be proposed to the Annual Shareholders’ Meeting to be held on April 25, 2013. This amount already includes the prepayment of R$ 138.1 million in interest on own capital on January 15, 2013.
2. Income Statement
2.1 Net Operating Revenue
In 2012, “net operating revenue” reached R$ 8,532.2 million, 9.7% up on the R$ 7,776.2 million recorded in the previous year. The most important variations were:
(i) the 12.6% increase in revenue from “electricity sales to final customers”, which reflects only actual sales revenues, excluding the distribution grid tariff (TUSD), basically due to the 3.5% upturn in captive market consumption and the tariff increase as of June 24, 2011 (positive average perceived effect of 2.99%), partially offset by the periodic tariff revision as of June 24, 2012 (negative average perceived effect of 0.65%);
(ii) the 12.8% increase in revenue from “electricity sales to distributors”, due to (a) price increases under power purchase agreements in the regulated market (CCEAR); (b) the volume increase in bilateral agreements, and (c) the increase in spot market prices (PLD), which pushed up revenue from the spot market (CCEE);
(iii) the 2.5% upturn in “use of the main transmission grid” item (TUSD and TUST revenue), due to: (a) market growth, (b) Copel Distribuição’s tariff adjustment as of June 24, 2011, partially offset by the periodic tariff revision in effect as of June 24, 2012, and (c) higher interest revenue from transmission assets;
(iv) the 6.3% decline in “construction revenue”, due to the booking of investments in construction services and improvements to electricity distribution and transmission infrastructure;
(v) the 7.2% increase in “telecommunications revenue”, basically due to new customers – the customer base increased from 1,442 at the end of 2011 to 3,141 at the end of 2012;
(vi) the 18.6% increase in “distribution of piped gas” (supplied by Compagas), following tariff adjustments (8.5% as of August 2011, 4.5% as of March 2012 and 8.0% as of August 2012); and
(vii) the 93.3% increase in “other operating revenue”, mainly caused by higher revenue from the lease of the Araucária thermal plant, following contractual adjustments with Petrobras and its dispatch between March and December 2012.
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| R$ '000 | ||||||
| Income Statement | 4Q12 (1) | 4Q11 (2) | Var.% (1/2) | 2012 (3) | 2011 (4) | Var.% (3/4) |
| Electricity sales to final customers | 801,571 | 593,965 | 35.0 | 2,625,509 | 2,330,828 | 12.6 |
| Electricity sales to distributors | 392,998 | 383,128 | 2.6 | 1,623,507 | 1,439,831 | 12.8 |
| Use of main transmission grid (TUSD/ TUST) | 628,991 | 718,884 | (12.5) | 2,831,101 | 2,762,368 | 2.5 |
| Construction revenue | 404,992 | 265,134 | 52.7 | 788,260 | 741,726 | 6.3 |
| Telecommunication revenue | 33,048 | 29,989 | 10.2 | 125,565 | 117,126 | 7.2 |
| Distribution of piped gas | 85,390 | 74,314 | 14.9 | 325,012 | 273,933 | 18.6 |
| Other operating revenue | 76,111 | 28,137 | 170.5 | 213,263 | 110,353 | 93.3 |
| Net operating revenue | 2,423,101 | 2,093,551 | 15.7 | 8,532,217 | 7,776,165 | 9.7 |
2.2 Operating Costs and Expenses
In 2012, operating costs and expenses totaled R$ 7,542.7 million, a 16.5% increase over the R$ 6,472.7 million recorded in 2011, chiefly due to: (i) the 30.4% increase in “electricity purchased for resale”, due to higher costs related to the purchase of energy from Itaipu at auctions (CCEAR) - particularly due to thermal power agreements and on the spot market;
(ii) the 22.1% upturn in “charges for the use of the main transmission grid”, due to the start-up of new assets in the system and higher charges (reserve energy – EER and systems services -ESS), partially offset by the fact that large customers left the basic network;
(iii) in 2012, the “personnel and management” line totaled R$ 1,246.6 million, 26.9% up on 2011. This was driven by: (a) the wage increase of 7.4% as of October 2011 and 5.58% as of October 2012, e (b) the revision of the career and compensation structure as of June 1, 2011. A provision of R$ 168.8 million was recorded for the adhesion of 790 employees to the Succession and Voluntary Redundancy Program (PSDV);
(iv) the balance of “private pension and healthcare plans” reflected the accrual of liabilities pursuant to the 2012 actuarial report on the Healthcare Plan, calculated according to the criteria set by CVM Resolution 600/2009, and the monthly installments of the two plans. For further details, see Note 23 “post-employment benefits" in our Standardized Financial Statements (DFP);
(v) the 18.4% decline in “material and supplies”, mainly reflecting lower purchases of material for the electrical system;
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(vi) the “raw material and supplies for energy production” line includes expenses with the acquisition of coal for the Figueira Thermal Power Plant;
(vii) the 32.5% upturn in “natural gas and supplies for the gas business", following higher prices for the natural gas acquired by Compagas to supply third parties, adjusted mainly due to the recent depreciation of the Brazilian currency, and the adjustment of the oil basket, which determines the gas acquisition price;
(viii) the 4.8% increase in “third-party services”, largely due to contractual adjustments and higher expenses with services needed to support expansion and maintenance of the Company’s assets (electrical system and building maintenance, metering, bill delivery and other services);
(ix) the variation in “provisions and reversals” was mainly caused by the restatement of the provision for legal claims involving the Company, in accordance with legal counsel’s opinion, and the R$ 54.5 million provision related to the lawsuit filed by Tradener Ltda. (for further information, see Note 28.1.4(c) in our Standardized Financial Statements), partially offset by the reversal of R$ 37.1 million related to doubtful receivables from the energy sales of Mauá HPP based on a management decision regarding Aneel Order 1611/12;
(x) the "construction cost” line was 5.5% up and reflected the investments in power distribution and transmission; and
(xi) the 17.9% decrease in “other operating costs and expenses ” was due to lower hydro power generation in the period and the decline in losses from the deactivation and sale of assets.
| R$ '000 | ||||||
| Operating Costs and Expenses | 4Q12 | 4Q11 | Var.% | 2,012 | 2,011 | Var.% |
| (1) | (2) | (1/2) | (3) | (4) | (3/4) | |
| Electricity purchased for resale | 837,010 | 541,014 | 54.7 | 2,807,735 | 2,152,545 | 30.4 |
| Charges for the use of main transmission grid | 213,187 | 158,956 | 34.1 | 772,361 | 632,518 | 22.1 |
| Personnel and management | 458,439 | 305,227 | 50.2 | 1,246,599 | 982,653 | 26.9 |
| Pension and healthcare plans | 61,286 | 53,514 | 14.5 | 182,878 | 150,845 | 21.2 |
| Material and supplies | 17,320 | 26,950 | (35.7) | 69,816 | 85,610 | (18.4) |
| Raw material and supplies for electricity generation | 6,948 | 4,882 | 42.3 | 25,511 | 25,031 | 1.9 |
| Natural gas and supplies for the gas business | 64,682 | 54,006 | 19.8 | 247,770 | 186,931 | 32.5 |
| Third-party services | 106,481 | 115,970 | (8.2) | 410,059 | 391,433 | 4.8 |
| Depreciation and amortization | 138,852 | 145,185 | (4.4) | 550,588 | 553,165 | (0.5) |
| Provisions and reversals | 105,002 | 208,235 | (49.6) | 218,796 | 289,655 | (24.5) |
| Construction cost | 392,698 | 256,215 | 53.3 | 771,912 | 731,443 | 5.5 |
| Other operating costs and expenses | 61,215 | 66,941 | (8.6) | 238,713 | 290,842 | (17.9) |
| TOTAL | 2,463,120 | 1,937,095 | 27.2 | 7,542,738 | 6,472,671 | 16.5 |
2.3 EBITDA
In 2012, EBITDA (earnings before interest, taxes, depreciation and amortization) totaled R$ 1,551.1 million, 18.9% lower than the R$ 1,912.3 million reported in the previous year.
2.4 Equity in the Results of Investees
Equity in the results of investees reflects gains and losses from investments in Copel's investees. In 2012, this figure comprised R$ 53.3 million from Dominó Holdings (Sanepar), R$ 9.4 million from Foz do Chopim Energética, R$ 8.1 million from Dona Francisca Energética and a R$ 59.8 million loss from Sercomtel Telecom, R$ 28.9 million of which related to impairment in 4Q12.
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2.5 Financial Results
Financial revenues increased by 12.4%, totaling R$ 648.9 million, due to the monetary restatement (by the IGP-M inflation index for 2012) of accounts receivable related to the concession, interest of 6.65% p.y. and monetary restatement by the IGP-DI inflation index of CRC transferred to the State of Paraná, and the increased interest for late payment on overdue electricity bills, and other financial revenues, particularly those related to the monetary restatement on the effects of the extension of concessions (adjusted by the IPCA consumer price index plus regulatory WACC of 5.59% p.y.), partially offset by the reduction in the average invested capital and the decline in the CDI rate in the period, which resulted in lower returns from financial investments.
Financial expenses totaled R$ 676.8 million, 91.8% higher year on year, chiefly due to the recognition of R$ 401.1 million as a result of the remeasurement of the fair value of Copel Distribuição’s financial assets, due to the 3rd cycle of the tariff revision (R$ 358.5 million) and the new useful life estimates, pursuant to Aneel Resolution 474/12 (R$ 42.6 million).
2.6 Consolidated Net Income
Copel recorded net income of R$ 726.5 million in 2012, 38.3% down on 2011 (R$ 1,176.9 million).
3. Balance Sheet and Investment Program
3.1 Assets
On December 31, 2012, Copel’s assets totaled R$ 21,211.6 million, 12.6% up on December 31, 2011.
3.1.1 Cash, Cash Equivalents and Financial Investments
On December 31, 2012, the cash, cash equivalents and financial investments of Copel’s wholly-owned subsidiaries and controlled companies totaled R$ 2,247.1 million and were mostly invested in Bank Deposit Certificates (CDBs) and repo transactions. The investments earned an average yield of 100.8% of the Interbank Deposit Certificate (CDI rate) variation in the period.
3.1.2 CRC Transferred to the State of Paraná
Through the fourth addendum signed on January 21, 2005, the Company renegotiated the CRC balance on December 31, 2004 with the State of Paraná at R$ 1,197.4 million, in 244 monthly installments recalculated by the price amortization system, updated by the IGP-DI inflation index plus annual interest of 6.65%. The first installment was due on January 30, 2005, with subsequent and consecutive maturities. The current CRC balance is R$ 1,384.3 million.
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The State of Paraná has been paying the renegotiated installments pursuant to the fourth addendum, whose amortizations are guaranteed by dividends.
3.1.3 Accounts Receivable Related to the Concession
Based on the characteristics established in the electricity distribution and transmission concession contracts, management understands that the conditions for the adoption of Technical Interpretation ICPC-01 – Concession Agreements are met. ICPC-01 sets forth guidelines on the recognition of public service concessions.
3.1.4 Accounts Receivable Related to the Extension of the Concession
Following Copel’s acceptance of the conditions established by the government agency for the anticipation of the extension of the transmission assets (Provisional Measure 579), on November 01, 2012, through Ordinances 578 and 579 and Interministerial Ordinance 580, the Ministry of Mines and Energy announced, in addition to the new APR, the indemnification the Company is entitled to under Transmission Concession Agreement 060, in the amount of R$ 893.9 million (considering only the assets that began operating after May 2000). The indemnification approved for these assets will be received in 30 monthly installments calculated by the Constant Amortization System, adjusted by the IPCA consumer price index plus a weighted average cost of capital (WACC) of 5.59% per year, with the first installment received in January 2013. With the enactment of Law 12783, on January 11, 2013, the government agency reconsidered the right of indemnification for the assets existing on May 31, 2000; however, the indemnification amount has not yet been set. Management assessed these assets using the new replacement value methodology, based on the regulatory prices established by Resolution 758/2009. Management expects this indemnification to come to R$ 160.2 million, which indicates the recoverability of the balances recorded at the end of fiscal year 2012. For further information, please refer to Note 10 in our financial statements.
3.1.5 Property, Plant and Equipment
The Company adopted the deemed cost method to determine the fair value of the fixed assets of generation and telecommunications activities. These fixed assets are depreciated according to the straight-line method based on the annual rates established by Aneel, which are practiced and accepted by the market as adequate, limited to the term of concession, when applicable.
The estimated useful life, residual values and depreciation are reviewed on the closing balance sheet date and the effect of any changes in the estimates is prospectively recognized.
3.1.6 Intangible Assets
This line mostly comprises the intangible assets arising from Copel Distribuição’s concession agreements, consisting of exploration rights of construction and electricity supply services, which will be recovered by billing customers.
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3.2 Liabilities and Shareholders’ Equity
Copel’s consolidated debt totaled R$ 3,261.6 million on December 31 2012, representing 26.1% of the shareholders’ equity, which closed 2012 at R$ 12,497.5 million, 3.5% higher than on December 31, 2011 and equivalent to R$ 45.67 per share (book value per share).
3.2.1 Debt
The breakdown of loans, financing and debentures is shown in the table below:
| R$'000 | ||||
| Short-term | Long-term | Total | ||
| Foreign Currency | National Treasury | 3,311 | 56,029 | 59,340 |
| Eletrobras | 6 | 5 | 11 | |
| Total | 3,317 | 56,034 | 59,351 | |
| Domestic Currency | Eletrobras - COPEL | 54,204 | 178,841 | 233,045 |
| FINEP | 2,014 | 27,511 | 29,525 | |
| BNDES/ Banco do Brasil S/A - Mauá | 33,131 | 353,967 | 387,098 | |
| Banco do Brasil S/A and other | 168,624 | 1,373,235 | 1,541,859 | |
| Debentures | 12,719 | 997,958 | 1,010,677 | |
| Total | 270,692 | 2,931,512 | 3,202,204 |
Loan, financing and debenture maturities are presented below:
| R$'000 | ||||||
| Short-Term | Long-Term | |||||
| Jan/13 - Dec/13 | Jan/14 - Dec/14 | 2015 | 2016 | 2017 | After 2017 | |
| Domestic Currency | 270,692 | 728,741 | 588,300 | 757,590 | 545,038 | 311,843 |
| Foreign Currency | 3,317 | 1,374 | - | - | - | 54,660 |
| TOTAL | 274,009 | 730,115 | 588,300 | 757,590 | 545,038 | 366,503 |
Copel’s consolidated net debt (loans, financing and debenture less cash) trends are shown below:
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3.2.2 Payables related to the Concession – Use of Public Property
It refers to the concession charges for the use of public property incurred since the execution of the project’s concession agreement until the end of the concession.
| R$'000 | ||||
| Elejor | Mauá | Colíder | Total | |
| Current liabilities | 47,593 | 884 | - | 48,477 |
| Noncurrent liabilities | 371,896 | 12,083 | 15,101 | 399,080 |
3.2.3 Provision for Legal Claims
The Company is involved in a series of lawsuits in different courts and instances. Copel’s management, based on its legal advisors’ opinion, maintains a provision for legal claims for those cases assessed as probable losses.
The balances of the provision for legal claims are as follows:
| R$ '000 | |||
| Consolidated | Dec/12 (1) |
Dec/11 (2) |
Var % (1 / 2) |
| Tax | 294,576 | 281,937 | 4.5 |
| Labor suits | 154,990 | 128,505 | 20.6 |
| Employees and Benefits | 78,670 | 58,089 | 35.4 |
| Civil | 576,354 | 484,041 | 19.1 |
| Suppliers | 68,630 | 88,003 | (22.0) |
| Civil and administrative claims | 176,811 | 112,059 | 57.8 |
| Easements | 5,964 | 4,839 | 23.2 |
| Condemnations and property | 317,472 | 273,647 | 16.0 |
| Customers | 7,477 | 5,493 | 36.1 |
| Environmental claims | 193 | 104 | 85.6 |
| Regulatory | 50,925 | 48,147 | 5.8 |
| TOTAL | 1,155,708 | 1,000,823 | 15.5 |
The cases classified as possible losses, as estimated by the Company and its controlled companies at the end of the year totaled R$ 2,356.3 million distributed in lawsuits of the following natures: tax- R$ 1,227.5 million; civil - R$ 810.8 million; labor - R$ 257.4 million; employee benefits - R$ 41.4 million; and regulatory - R$ 19.2 million.
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3.3 Investment Program
Copel’s investments in 2012 and the maximum investment forecast for 2013 are presented below:
| R$ million | |||
| Carried out | Scheduled | Scheduled | |
| 2012 | 2012 | 2013 | |
| Generation and Transmission* | 988.3 | 1,069.9 | 925.1 |
| HPP Mauá | 162.0 | 89.1 | 58.6 |
| HPP Colider | 543.5 | 562.4 | 449.0 |
| SHP Cavernoso II | 58.1 | 50.6 | 8.3 |
| TL Araraquara/ Taubaté | - | - | 132.8 |
| SE Cerquilho | - | - | 37.8 |
| Other | 224.7 | 367.8 | 238.6 |
| Distribution | 778.1 | 1,105.0 | 986.4 |
| Telecommunications | 79.8 | 82.5 | 69.9 |
| TOTAL | 1,846.2 | 2,257.4 | 1,981.4 |
* Includes project won by Copel at Auction 007/2012 (lot B), held by Aneel on 12/19/2012, after the approval of the budget by the 139th Ordinary Board of Directors Meeting.
Copel’s investments in new businesses in 2012 (São Bento Energia, Cutia Empreendimentos Eólicos, Costa Oeste Transmissora, Marumbi Transmissora, Transmissora Sul Brasileira, Caiuá Transmissora, Integração Maranhense Transmissora, Matrinchã Transmissora de Energia, Guaraciaba Transmissora de Energia and Paranaíba Transmissora) was R$ 55.1 million. Investments of R$ 647.4 million are planned for 2013.
4. Shareholding Structure
On December 31, 2012, paid-up capital stock totaled R$ 6,910.0 million. The classes of shares (with no par value) and main shareholders are presented below:
| Shareholders | Common | % | Preferred "A" | % | Preferred "B" | % | TOTAL | % |
| State of Paraná | 85,029 | 58.6 | - | - | 14 | - | 85,043 | 31.1 |
| BNDESPAR | 38,299 | 26.4 | - | - | 27,282 | 21.3 | 65,581 | 23.9 |
| Eletrobras | 1,531 | 1.1 | - | - | - | - | 1,531 | 0.6 |
| Free Floating | 19,621 | 13.5 | 129 | 33.9 | 100,906 | 78.7 | 120,656 | 44.1 |
| BM&FBovespa | 19,510 | 13.4 | 129 | 33.9 | 60,368 | 47.1 | 80,007 | 29.2 |
| NYSE | 111 | 0.1 | - | - | 40,454 | 31.6 | 40,565 | 14.8 |
| LATIBEX | - | - | - | - | 84 | 0.1 | 84 | - |
| Other | 551 | 0.4 | 252 | 66.1 | 41 | - | 844 | 0.3 |
| TOTAL | 145,031 | 100.0 | 381 | 100.0 | 128,243 | 100.0 | 273,655 | 100.0 |
12
5. Consolidated Financial Statements
5.1 Assets
| R$'000 | |||||
| Assets | Dec/12 | Sep/12 | Dec/11 | Var.% | Var.% |
| (1) | (2) | (3) | (1/2) | (1/3) | |
| CURRENT | 4,699,255 | 3,538,245 | 3,702,013 | 32.8 | 26.9 |
| Cash and cash equivalents | 1,483,137 | 749,520 | 1,049,125 | 97.9 | 41.4 |
| Bonds and securities | 635,501 | 456,785 | 582,019 | 39.1 | 9.2 |
| Collaterals and escrow accounts | 36,812 | 12,292 | 2,668 | ||
| Customers | 1,489,173 | 1,457,214 | 1,368,366 | 2.2 | 8.8 |
| Dividends receivable | 9,555 | 8,342 | 17,906 | 14.5 | (46.6) |
| CRC transferred to the State Government of Paraná | 75,930 | 73,018 | 65,862 | 4.0 | 15.3 |
| Account receivable related to concession | 5,319 | 114,631 | 80,626 | (95.4) | (93.4) |
| Account receivable to the extension of the concession | 356,085 | - | - | ||
| Other current receivables | 235,281 | 233,575 | 161,313 | 0.7 | 45.9 |
| Inventories | 124,809 | 118,952 | 103,802 | 4.9 | 20.2 |
| Income tax and social contribution | 193,158 | 215,663 | 215,381 | (10.4) | (10.3) |
| Other current recoverable taxes | 49,491 | 80,038 | 50,357 | (38.2) | (1.7) |
| Prepaid expenses | 5,004 | 18,215 | 4,588 | (72.5) | 9.1 |
| NONCURRENT | 16,512,299 | 16,370,580 | 15,140,006 | 0.9 | 9.1 |
| Long Term Assets | 6,302,904 | 6,349,341 | 5,659,868 | (0.7) | 11.4 |
| Bonds and securities | 128,515 | 99,951 | 62,589 | 28.6 | 105.3 |
| Collaterals and escrow accounts | 43,246 | 72,811 | 37,553 | ||
| Customers | 26,171 | 31,739 | 32,452 | (17.5) | (19.4) |
| CRC transferred to the State Government of Paraná | 1,308,354 | 1,319,965 | 1,280,598 | (0.9) | 2.2 |
| Judicial deposits | 574,473 | 557,859 | 430,817 | 3.0 | 33.3 |
| Account receivable related to concession | 2,684,792 | 3,571,421 | 3,236,474 | (24.8) | (17.0) |
| Account receivable to the extension of the concession | 717,805 | - | - | ||
| Other noncurrent receivables | 22,728 | 21,812 | 17,033 | 4.2 | 33.4 |
| Income tax and social contribution | 19,995 | 20,209 | 18,714 | (1.1) | 6.8 |
| Other noncurrent recoverable taxes | 120,189 | 75,415 | 77,912 | 59.4 | 54.3 |
| Deferred income tax and social contribution | 647,804 | 567,422 | 465,536 | 14.2 | 39.2 |
| Prepaid expenses | 8,832 | 10,737 | 190 | (18) | - |
| Investments | 543,036 | 590,217 | 549,158 | (8.0) | (1.1) |
| Property, plant and equipment, net | 7,871,849 | 7,621,397 | 7,209,123 | 3.3 | 9.2 |
| Intangible assets | 1,794,510 | 1,809,625 | 1,721,857 | (0.8) | 4.2 |
| TOTAL | 21,211,554 | 19,908,825 | 18,842,019 | 6.5 | 12.6 |
13
5.2 Liabilities
| R$'000 | |||||
| Liabilities | Dec/12 | Sep/12 | Dec/11 | Var.% | Var.% |
| (1) | (1) | (2) | (1/2) | (1/3) | |
| CURRENT | 2,847,818 | 2,281,889 | 2,058,821 | 24.8 | 38.3 |
| Payroll, social charges and accruals | 384,150 | 268,558 | 224,095 | 43.0 | 71.4 |
| Suppliers | 1,136,359 | 883,927 | 747,453 | 28.6 | 52.0 |
| Income tax and social contribution payable | 170,189 | 199,389 | 151,790 | (14.6) | 12.1 |
| Other taxes due | 290,896 | 245,446 | 288,457 | 18.5 | 0.8 |
| Loans and financing | 274,009 | 230,576 | 116,487 | 18.8 | 135.2 |
| Dividends payable | 204,780 | 87,283 | 135,744 | 134.6 | 50.9 |
| Post employment benefits | 25,819 | 22,281 | 36,037 | 15.9 | (28.4) |
| Customer charges due | 56,498 | 59,857 | 70,511 | (5.6) | (19.9) |
| Research and development and energy efficiency | 159,599 | 112,313 | 156,915 | 42.1 | 1.7 |
| Payables related to concession - use of public property | 48,477 | 44,769 | 44,656 | 8.3 | 8.6 |
| Other accounts payable | 97,042 | 127,490 | 86,676 | (23.9) | 12.0 |
| NONCURRENT | 5,866,238 | 4,826,759 | 4,713,670 | 21.5 | 24.5 |
| Suppliers | 100,996 | 72,091 | 108,462 | 40.1 | (6.9) |
| Tax liabilities | - | - | 152 | - | - |
| Deferred income tax and social contribution | 615,924 | 656,597 | 648,266 | (6.2) | (5.0) |
| Loans and financing | 2,987,546 | 1,994,685 | 2,057,985 | 49.8 | 45.2 |
| Post-employment benefits | 502,423 | 470,045 | 432,838 | 6.9 | 16.1 |
| Research and development and energy efficiency | 104,561 | 139,065 | 94,649 | (24.8) | 10.5 |
| Payables related to the concession - use of public property | 399,080 | 400,053 | 370,442 | (0.2) | 7.7 |
| Other accounts payable | - | 15 | 53 | - | - |
| Tax, social security, labor and civil provisions | 1,155,708 | 1,094,208 | 1,000,823 | 5.6 | 15.5 |
| SHAREHOLDERS' EQUITY | 12,497,498 | 12,800,177 | 12,069,528 | (2.4) | 3.5 |
| Attributed to controlling shareholders | 12,232,992 | 12,540,889 | 11,826,694 | (2.5) | 3.4 |
| Stock capital | 6,910,000 | 6,910,000 | 6,910,000 | - | - |
| Equity valuation adjustments | 1,350,002 | 1,372,707 | 1,457,081 | (1.7) | (7.3) |
| Legal reserves | 571,221 | 536,187 | 536,187 | 6.5 | 6.5 |
| Retained earnings | 3,337,295 | 2,838,551 | 2,838,551 | 17.6 | 17.6 |
| Additional proposed dividends | 64,474 | - | 84,875 | - | (24.0) |
| Accrued earnings | - | 883,444 | - | - | - |
| Attributed to minority shareholders | 264,506 | 259,288 | 242,834 | 2.0 | 8.9 |
| TOTAL | 21,211,554 | 19,908,825 | 18,842,019 | 6.5 | 12.6 |
14
5.3 Income Statement
| R$'000 | |||
| Income Statement | 2012 | 2011 | var % |
| (1) | (2) | (1/2) | |
| OPERATING REVENUES | 8,532,217 | 7,776,165 | 9.7 |
| Electricity sales to final customers | 2,625,509 | 2,330,828 | 12.6 |
| Electricity sales to distributors | 1,623,507 | 1,439,831 | 12.8 |
| Use of main transmission grid (TUSD and TUST) | 2,831,101 | 2,762,368 | 2.5 |
| Construction revenue | 788,260 | 741,726 | 6.3 |
| Telecommunications revenues | 125,565 | 117,126 | 7.2 |
| Distribution of piped gas | 325,012 | 273,933 | 18.6 |
| Other operating revenues | 213,263 | 110,353 | 93.3 |
| Operating costs and expenses | (7,542,738) | (6,472,671) | 16.5 |
| Electricity purchased for resale | (2,807,735) | (2,152,545) | 30.4 |
| Charges for the use the main transmission grid | (772,361) | (632,518) | 22.1 |
| Personnel and management | (1,246,599) | (982,653) | 26.9 |
| Pension and health plans | (182,878) | (150,845) | 21.2 |
| Material | (69,816) | (85,610) | (18.4) |
| Material and supplies for energy production | (25,511) | (25,031) | 1.9 |
| Natural gas and supplies for the gas operations | (247,770) | (186,931) | 32.5 |
| Third party services | (410,059) | (391,433) | 4.8 |
| Depreciation and amortization | (550,588) | (553,165) | (0.5) |
| Provisions and reversals | (218,796) | (289,655) | (24.5) |
| Construction cost | (771,912) | (731,443) | 5.5 |
| Other operating costs and expenses | (238,713) | (290,842) | (17.9) |
| EQUITY IN RESULTS OF INVESTEES | 11,040 | 55,654 | (80.2) |
| INCOME BEFORE FINANCIAL RESULTS AND TAXES | 1,000,519 | 1,359,148 | (26.4) |
| FINANCIAL RESULTS | (27,821) | 224,768 | - |
| Financial income | 648,938 | 577,532 | 12.4 |
| Financial expenses | (676,759) | (352,764) | 91.8 |
| OPERATING INCOME (EXPENSES) | 972,698 | 1,583,916 | (38.6) |
| INCOME TAX AND SOCIAL CONTRIBUTION | (246,178) | (407,062) | (39.5) |
| Income tax and social contribution | (458,312) | (611,601) | (25.1) |
| Deferred income tax and social contribution | 212,134 | 204,539 | 3.7 |
| NET INCOME (LOSS) | 726,520 | 1,176,854 | (38.3) |
| Attributed to controlling shareholders | 700,688 | 1,157,690 | (39.5) |
| Attributed to non-controlling interest | 25,832 | 19,164 | 34.8 |
| EBITDA | 1,551,107 | 1,912,313 | (18.9) |
15
5.4 Cash Flow
| R$'000 | ||
| Consolidated Cash Flow | 2012 | 2011 |
| Cash flow from operating activities | ||
| Net income for the period | 726,520 | 1,176,854 |
| Adjustments to reconcile net income with the cash provided by operating activities | 1,225,703 | 1,227,912 |
| Depreciation | 331,333 | 336,033 |
| Amortization of intangible assets - concession | 214,022 | 214,515 |
| Amortization of intangible assets - other | 4,503 | 1,887 |
| Amortization of investiments - concession rigths | 730 | 730 |
| Unrealized monetary and exchange variations, net | (90,346) | 75,630 |
| Accounts receivable tied to the concession fair value´s update | 401,104 | |
| Remuneration of accounts receivable related to the concession | (396,636) | (330,217) |
| Equity in earnings of subsidiaries | (11,040) | (55,654) |
| Income Tax and Social Contribution | 458,312 | 611,601 |
| Deferred Income Tax and Social Contribution | (212,134) | (204,539) |
| Provision for loss with receivable accounts related to concession | - | - |
| Provision for doubtful accounts | 22,826 | 75,556 |
| Provision for losses from devaluation of investments | - | 398 |
| Provision for tax credit losses | (3,135) | 46,802 |
| Provision (reversal) for legal claims | 199,105 | 166,899 |
| Provisions for post employment benefits | 196,087 | 158,251 |
| Provision for research and development and energy efficiency | 74,464 | 68,048 |
| Write off of intangible assets related to concession - goodwill | 24,313 | 25,895 |
| Loss on disposal of investments | - | 224 |
| Write off of property, plant, and equipment | 3,873 | 23,091 |
| Write off of intangible assets | 8,322 | 12,762 |
| Loss on disposal of intangible related to concession | - | - |
| Decrese (increase) in assets | 39,146 | (28,085) |
| Increase (reduction) of liabilities | (596,153) | (1,228,785) |
| Net cash generated by operating activities | 1,395,216 | 1,147,896 |
| Cash flow from investing activities | ||
| Bonds and securities | (151,287) | (38,332) |
| Investment additions to Costa Oeste – net effect of the cash acquired | - | (12) |
| Investment additions to Cutia – net effect of the cash acquired | - | (4,310) |
| Investment additions to Cauiá – net effect of the cash acquired | (30) | - |
| Investment additions to Integração Maranhense - net effect of the cash acquired | (53) | - |
| Investment additions to Matrinchã - net effect of the cash acquired | (313) | - |
| Investment additions to Guaraciaba - net effect of the cash acquired | (169) | - |
| Additions in investments | (7,889) | (39,157) |
| Additions to property, plant, and equipment | (875,604) | (821,919) |
| Additions to intangible assets related to the concessions | (840,119) | (808,687) |
| Additions to other intangible assets | (13,076) | (11,033) |
| Sale of intangible assets | 191 | |
| Customer contributions | 107,995 | 94,396 |
| Net cash generated (used) by investing activities | (1,780,354) | (1,629,054) |
| Cash flow from financing activities | ||
| Payment of capital in affiliates by noncontrolling shareholders | - | (30,813) |
| Loans and financing obtained | 81,723 | 816,431 |
| Debentures Issued | 1,000,000 | - |
| Amortization of principal amounts of loans and financing | (37,868) | (48,646) |
| Amortization of principal amounts of debentures | - | (600,000) |
| Dividends and interest on own capital paid | (224,705) | (401,105) |
| Net cash used by financing activities | 819,150 | (264,133) |
| Increase (decrease) in cash and cash equivalents | 434,012 | (745,291) |
| Cash and cash equivalents at the beginning of the year | 1,049,125 | 1,794,416 |
| Cash and cash equivalents at the end of the year | 1,483,137 | 1,049,125 |
| Variation in cash and cash equivalents | 434,012 | (745,291) |
16
6. Financial Statements – Wholly-owned Subsidiaries
6.1 Assets
| R$'000 | |||
| Assets | GeT | DIS | TEL |
| CURRENT | 1,248,335 | 2,876,268 | 64,848 |
| Cash and cash equivalents | 197,209 | 1,126,361 | 26,689 |
| Bonds and securities | 291,709 | 158,837 | - |
| Collaterals and escrow accounts | 1,429 | 34,293 | - |
| Customers | 265,623 | 1,200,251 | 18,649 |
| Dividends receivable | - | - | - |
| CRC transferred to the State Government of Paraná | - | 75,930 | - |
| Accounts receivable related to the concession | 5,319 | - | - |
| Account receivable to the extension of the concession | 356,085 | - | - |
| Other current receivables | 92,661 | 126,686 | 2,437 |
| Inventories | 28,299 | 84,995 | 10,645 |
| Income Tax and Social Contribution | 809 | 35,868 | 3,413 |
| Other current recoverable taxes | 6,871 | 31,460 | 2,671 |
| Prepaid expenses | 2,321 | 1,587 | 344 |
| NONCURRENT | 8,283,035 | 5,936,535 | 363,368 |
| Long Term Assets | 1,154,718 | 4,626,774 | 23,253 |
| Bonds and securities | 92,827 | 35,688 | - |
| Collaterals and escrow accounts | - | 43,246 | - |
| Customers | - | 26,172 | - |
| CRC transferred to the State Government of Paraná | - | 1,308,354 | - |
| Judicial deposits | 24,315 | 276,541 | 1,036 |
| Accounts receivable related to the concession | 262,564 | 2,383,262 | - |
| Contas a receber vinculadas à prorrogação da concessão | 717,805 | - | - |
| Advance payments to suppliers | - | - | - |
| Other noncurrent receivables | 6,413 | 4,036 | - |
| Other current recoverable taxes | 50,794 | 60,663 | 8,732 |
| Deferred Income tax and social contribution | - | 488,812 | 13,485 |
| Investments | 448,130 | 4,012 | - |
| Property, Plant and Equipment, net | 6,635,206 | - | 319,141 |
| Intangible Assets | 44,981 | 1,305,749 | 20,974 |
| TOTAL | 9,531,370 | 8,812,803 | 428,216 |
GeT: Copel Geração e Transmissão, DIS: Copel Distribuição, TEL: Copel Telecomunicações
17
6.2 Liabilities
| R$'000 | |||
| Liabilities | GeT | DIS | TEL |
| CURRENT | 1,482,223 | 1,987,053 | 54,748 |
| Payroll, social charges and accruals | 114,523 | 259,725 | 26,529 |
| Suppliers | 419,896 | 694,903 | 14,481 |
| Income Tax and Social Contribution payable | 139,614 | - | - |
| Other taxes due | 50,760 | 205,330 | 4,492 |
| Loans and financing | 71,654 | 164,788 | 53 |
| Debentures | - | 12,719 | - |
| Dividends payable | 635,489 | 371,863 | 7,982 |
| Post employment benefits | 6,908 | 18,004 | 903 |
| Customer charges due | 7,236 | 49,262 | - |
| Research and development and energy efficiency | 14,831 | 142,936 | - |
| Payables related to concession - use of public property | 884 | - | - |
| Other accounts payable | 20,428 | 67,523 | 308 |
| NONCURRENT | 1,832,705 | 3,224,230 | 46,462 |
| Intercompany receivables | - | 851,237 | - |
| Suppliers | 106,175 | - | - |
| Deferred income tax and social contribution | 612,870 | - | - |
| Loans, and financing | 438,396 | 609,941 | 25,559 |
| Debentures | - | 997,958 | - |
| Post-employment benefits | 130,621 | 326,987 | 19,934 |
| Research and development and energy efficiency | 43,350 | 61,211 | - |
| Payables related to the concession - use of public property | 27,184 | - | - |
| Tax,social security, labor and civil provisions | 474,109 | 376,896 | 969 |
| SHAREHOLDERS' EQUITY | 6,216,442 | 3,601,520 | 327,006 |
| Attributed to controlling shareholders | - | - | - |
| Capital stock | 3,505,994 | 2,624,841 | 240,398 |
| Valuation adjustments | 1,339,999 | 1,230 | - |
| Legal Reserves | 247,134 | 135,294 | 6,706 |
| Retained earnigs | 1,123,315 | 883,575 | 79,902 |
| Accrued earnings (losses) | - | (43,420) | - |
| TOTAL | 9,531,370 | 8,812,803 | 428,216 |
GeT: Copel Geração e Transmissão, DIS: Copel Distribuição, TEL: Copel Telecomunicações
18
6.3 Income Statement
| R$'000 | |||
| Income Statement | GeT | DIS | TEL |
| Operating revenues | 2,242,665 | 5,892,171 | 172,445 |
| Electricity sales to final customers | 137,990 | 2,490,639 | - |
| Electricity sales to distributors | 1,559,997 | 155,463 | - |
| Use of main transmission grid (TUSD/ TUST) | 444,653 | 2,500,075 | - |
| Construction revenue | 59,977 | 665,601 | - |
| Telecommunications | - | - | 166,713 |
| Other operating revenues | 40,048 | 80,394 | 5,732 |
| Operating costs and expenses | (1,374,149) | (5,968,827) | (139,403) |
| Electricity purchase for resale | (164,607) | (2,939,447) | - |
| Use of main transmission grid | (210,118) | (648,501) | - |
| Personnel and management | (317,712) | (824,102) | (70,253) |
| Pension and healthcare plans | (44,315) | (126,187) | (8,591) |
| Material and supplies | (17,934) | (48,296) | (1,800) |
| Raw material and supplies for electricity generation | (22,641) | - | - |
| Third-party services | (93,560) | (320,135) | (17,280) |
| Depreciation and amortization | (254,324) | (192,344) | (28,019) |
| Provisions and reversals | (80,212) | (118,986) | (4,316) |
| Construction cost | (43,791) | (665,601) | - |
| Other operating costs and expenses | (124,935) | (85,228) | (9,144) |
| Equity in results of investees | 16,041 | - | - |
| Income before financial results and taxes | 884,557 | (76,656) | 33,042 |
| Financial Income (expenses) | 48,624 | 5,644 | 3,444 |
| Earnings before income taxes | 933,181 | (71,012) | 36,486 |
| Operating income | (263,071) | (124,691) | (13,653) |
| Deferred income tax and social contribution | 30,414 | 152,283 | 5,174 |
| Net Income | 700,524 | (43,420) | 28,007 |
| EBITDA | 1,138,881 | 115,688 | 61,061 |
GeT: Copel Geração e Transmissão, DIS: Copel Distribuição, TEL: Copel Telecomunicações
19
7. Power Market
Copel’s electricity sales to final customers, composed by sales from Copel Distribuição captive market and Copel Geração e Transmissão free market increased 5.5% in 2012.The captive market consumed 23,248 GWh, growing by 3.5%, while Copel Geração e Transmissão’s free market has grown 52.8%, reaching 1,404 GWh in the same period.
7.1 Captive Market
The industrial segment consumed 7,405 GWh, 0.8% down, due to the decline in industrial production as a result of the global economic crisis and the migration of large clients to the free market. At the end of 2012, this segment represented 31.8% of Copel’s captive market, with the company supplying power to 86,717 industrial customers.
The residential segment consumed 6,559 GWh, an increase of 5.4%, led by the higher credit and income growth, as well as above average temperatures, especially in the fourth quarter, which stimulated consumption. At the end of 2012, this segment represented 28.2% of Copel’s captive market consumption, with the company supplying 3,196,457 residential customers.
The commercial segment consumed 5,048 GWh, an increase of 5.9%, due to increasing sales from retailers in the concession area. At the end of the period, this segment represented 21.7% of Copel’s captive market consumption, with the company supplying power to 327,244 customers.
The rural segment consumed 2,025 GWh, growing by 8.2%, mainly due to the excellent performance of agribusiness in the State of Paraná. This segment represented 8.7% of Copel’s captive market consumption at the end of the year, with the company supplying power to 372,640 rural customers.
Other segments (public agencies, public lighting, public services and own consumption) consumed 2,211 GWh, 4.2% up in the period. These segments represented 9.6% of Copel’s captive market consumption, totaling 54,512 customers at the end of the period.
The following table shows the captive market for each consumption segment:
| GWh | ||||||
| Segment | 4Q12 | 4Q11 | Var. % | 2012 | 2011 | Var. % |
| (1) | (2) | (1/2) | (3) | (4) | (3/4) | |
| Industrial | 1,871 | 1,863 | 0.4 | 7,405 | 7,467 | (0.8) |
| Residential | 1,692 | 1,534 | 10.3 | 6,559 | 6,224 | 5.4 |
| Commercial | 1,299 | 1,191 | 9.1 | 5,048 | 4,769 | 5.9 |
| Rural | 513 | 472 | 8.6 | 2,025 | 1,872 | 8.2 |
| Other | 575 | 537 | 7.1 | 2,211 | 2,122 | 4.2 |
| Captive Segment Total | 5,950 | 5,597 | 6.3 | 23,248 | 22,454 | 3.5 |
7.2 Grid Market (TUSD)
Copel Distribuição’s grid market, comprising the captive market, concessionaries and licensees in the State of Paraná, and all free customers within the Company’s concession area, grew by 2.7%, as shown by the following table:
20
| GWh | ||||||
| 4Q12 | 4Q11 | Var. % | 2012 | 2011 | Var. % | |
| (2) | (2) | (1/2) | (3) | (4) | (1/4) | |
| Captive Market | 5,950 | 5,596 | 6.3 | 23,248 | 22,454 | 3.5 |
| Concession and permission holders | 163 | 154 | 5.8 | 635 | 601 | 5.7 |
| Free Customers (*) | 815 | 730 | 11.6 | 3,020 | 3,139 | (3.8) |
| Grid Market | 6,928 | 6,480 | 6.9 | 26,903 | 26,194 | 2.7 |
* Total free customers supplied by COPEL GeT and other suppliers within COPEL DIS’ concession area.
Note that the upturn in Copel Distribuição’s grid market was affected by the migration of large free industrial customers to the basic network at the end of 2011. Excluding the effects of this migration, the grid market grew by 4.7% in 2012.
7.3 Energy Flow
Copel Consolidated
| GWh | |||
| 2012 | 2011 | Var.% | |
| Own Generation | 18,181 | 25,789 | (29.5) |
| Purchased energy | 31,244 | 27,434 | 13.9 |
| Itaipu | 5,256 | 5,278 | (0.4) |
| Auction – CCEAR | 19,003 | 18,342 | 3.6 |
| Itiquira | 914 | 912 | 0.2 |
| Dona Francisca | 613 | 617 | (0.6) |
| CCEE (MCP) | 942 | 514 | 83.3 |
| MRE | 2,703 | - | - |
| Proinfa | 624 | 585 | 6.7 |
| Elejor | 1,189 | 1,186 | 0.3 |
| Total Available Power | 49,425 | 53,223 | (7.1) |
| Captive Market | 23,248 | 22,454 | 3.5 |
| Concessionaires | 635 | 600 | 5.8 |
| Free Customers | 1,404 | 919 | 52.8 |
| Bilateral Agreements | 1,367 | 1,051 | 30.1 |
| Auction – CCEAR | 15,096 | 15,466 | (2.4) |
| CCEE (MCP) | 128 | 547 | (76.6) |
| MRE | 3,761 | 8,419 | (55.3) |
| Losses and Differences | 3,786 | 3,768 | 0.5 |
| Basic network losses | 968 | 1,196 | (19.1) |
| Distribution losses | 2,556 | 2,319 | 10.2 |
| CG contract allocation | 262 | 253 | 3.6 |
Amounts subject to changes after settlement by CCEE
CCEAR: Energy Purchase Agreements in the Regulated Market
MRE: Energy Reallocation Mechanism
CCEE (MCP): Electric Power Trade Chamber (Short-term market)
CG: Center of gravity of the Submarket (difference between billed and energy received from CG)
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Copel Geração e Transmissão
| GWh | |||
| 2012 | 2011 | Var. % | |
| Own Generation | 18,181 | 25,789 | (29.5) |
| CCEE (MCP) | 665 | 335 | 98.5 |
| MRE | 2,703 | - | - |
| Dona Francisca | 613 | 617 | (0.6) |
| Total Available Power | 22,162 | 26,741 | (17.1) |
| Bilateral Agreements | 1,367 | 1,051 | 30.0 |
| CCEAR – COPEL Distribuição | 1,316 | 1,327 | (0.8) |
| CCEAR – Other | 13,780 | 14,139 | (2.5) |
| Free Customers | 1,404 | 919 | 52.8 |
| CCEE (MCP) | 96 | 206 | (53.4) |
| MRE | 3,761 | 8,419 | (55.3) |
| Losses and differences | 438 | 680 | (35.7) |
Values subject to rounding adjustments.
Copel Distribuição
| GWh | |||
| 2012 | 2011 | Var. % | |
| Itaipu | 5,256 | 5,278 | (0.4) |
| CCEAR – COPEL Geração e Transmissão | 1,316 | 1,327 | (0.8) |
| CCEAR – Other | 17,451 | 16,771 | 4.1 |
| CCEAR - Adjustment auction | 236 | 244 | (3.6) |
| CCEE (MCP) | 277 | 179 | 54.3 |
| Itiquira | 914 | 912 | 0.1 |
| Proinfa | 624 | 585 | 6.7 |
| Elejor S.A | 1,189 | 1,186 | 0.3 |
| Available Power | 27,263 | 26,482 | 2.9 |
| Captive market | 23,248 | 22,454 | 3.5 |
| Wholesale | 635 | 600 | 5.8 |
| CCEE (MCP) | 33 | 341 | (90.4) |
| Losses and differences | 3,347 | 3,087 | 8.4 |
| Basic network losses | 529 | 515 | 2.8 |
| Distribution losses | 2,556 | 2,319 | 10.2 |
| CG contract allocation | 262 | 253 | 3.6 |
Values subject to rounding adjustments.
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8. Supplementary Information
8.1 Tariffs
Power Purchase Average Tariff
| R$/MWh | ||||||
| Tariff | Average MW | Dec/12 | Sep/12 | Dec/11 | Var. % | Var. % |
| (1) | (2) | (3) | (1/2) | (1/3) | ||
| Itaipu* | 569 | 107.63 | 110.19 | 98.46 | (2.3) | 9.3 |
| Auction – CCEAR 2005 – 2012 | 934 | 83.43 | 83.35 | 79.42 | 0.1 | 5.0 |
| Auction – CCEAR 2006 – 2013 | 452 | 97.67 | 97.48 | 92.98 | 0.2 | 5.0 |
| Auction – CCEAR 2007 – 2014 | 157 | 139.38 | 139.38 | 132.76 | - | 5.0 |
| Auction – CCEAR 2008 – 2015 | 69 | 117.36 | 117.25 | 111.72 | 0.1 | 5.0 |
| Auction – CCEAR 2010 – H30 | 66 | 157.25 | 157.25 | 149.78 | - | 5.0 |
| Auction – CCEAR 2010 – T15** | 64 | 167.19 | 167.19 | 159.24 | - | 5.0 |
| Auction – CCEAR 2011 – H30 | 58 | 162.11 | 162.11 | 154.40 | - | 5.0 |
| Auction – CCEAR 2011 – T15** | 54 | 184.34 | 184.34 | 175.58 | - | 5.0 |
| Auction – CCEAR 2012 – T15** | 68 | 165.37 | 165.37 | - | - | - |
| Others Auctions*** | 241 | 150.87 | 150.85 | 149.95 | - | 0.6 |
| Bilaterals | 240 | 163.77 | 163.80 | 158.14 | - | 3.6 |
| Total/ Tarifa Média de Compra | 2,972 | 115.08 | 115.61 | 107.22 | (0,5) | 7.3 |
* Furnas transport charge not included.
**Average auction price restated according to the IPCA inflation index. The price comprises in fact three components: a fixed component, a variable component, and expenses at the Electric Energy Trading Chamber (CCEE). The cost of the latter two components is dependent upon the dispatch of facilities according to the schedule set by the National System Operator (ONS).
*** Products average price.
Sales to Final Customers (Retail) Average Tariff – without ICMS
| R$/MWh | |||||
| Tariff | Dec/12 | Sep/12 | Dec/11 | Var % | Var % |
| (1) | (2) | (3) | (1/3) | (1/3) | |
| Industrial* | 220.00 | 220.63 | 219.71 | (0.3) | 0.1 |
| Residential | 293.62 | 286.62 | 296.51 | 2.4 | (1.0) |
| Commercial | 265.67 | 263.87 | 267.77 | 0.7 | (0.8) |
| Rural | 178.04 | 178.69 | 177.98 | (0.4) | - |
| Other | 206.89 | 208.03 | 205.29 | (0.5) | 0.8 |
| Retail distribution average rate | 245.80 | 243.80 | 246.79 | 0.8 | (0.4) |
* Free customers not included
Sales to Distributors Average Tariff
| R$/MWh | ||||||
| Tariff | Average MW | Dec/12 | Sep/12 | Dec/11 | Var. % | Var. % |
| (1) | (2) | (3) | (1 / 2) | (1 / 3) | ||
| Auction CCEAR 2005 - 2012 | 930 | 83.58 | 82.89 | 79.28 | 0.8 | 5.4 |
| Auction CCEAR 2006 - 2013 | 356 | 98.27 | 97.23 | 93.14 | 1.1 | 5.5 |
| Auction CCEAR 2007 - 2014 | 81 | 112.82 | 108.60 | 104.24 | 3.9 | 8.2 |
| Auction CCEAR 2008 - 2015 | 80 | 116.77 | 115.40 | 110.46 | 1.2 | 5.7 |
| Auction CCEAR 2009 - 2016 | 236 | 132.92 | 132.51 | 126.37 | 0.3 | 5.2 |
| Concession holders in the State of Paraná | 72 | 147.65 | 147.51 | 135.19 | 0.1 | 9.2 |
| Total/ Tariff Average Supply | 1,755 | 98.69 | 97.70 | 93.42 | 1.0 | 5.6 |
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8.2 Main Operational and Financial Indicators
December 31. 2012
| Generation | |
| Copel GeT power plants | 20 (18 hydro, 1 thermal and 1 wind power plant) |
| Power plants in which Copel holds an interest | 06 (5 hydro and 1 thermal power plant) |
| Copel GeT’s total installed capacity | 4,737 MW |
| Installed capacity of Copel’s corporate partnerships (1) | 606 MW |
| Copel GeT’s automated and remote-controlled power plants | 13 |
| Copel’s corporate partnerships’ | |
| automated and remote-controlled power plants | 03 |
| Transmission | |
| Transmission lines | 2,023 km |
| Substations | 31 (100% automated) |
| Installed capacity of substations | 10,902 MVA |
| Distribution (up to 230 kV) | |
| Distribution networks and lines | 186,365 km |
| Substations | 359 (100% automated) |
| Installed capacity of substations | 10,058 MVA |
| Number of municipalities served | 395(2) |
| Number of localities served | 1,120 |
| Number of captive customers | 4.0 million |
| DEC (outage duration per customer, in hours and hundredths of an hour) | 10.3 |
| FEC (outage frequency per customer) | 7.8 times |
| Telecommunications | |
| Fiber optic cables – main ring (interurban) | 9,211 km |
| Self-sustained fiber optic cables (urban) | 20,262 km |
| Number of municipalities served in Paraná | 399 |
| Number of municipalities served in Santa Catarina | 2 |
| Number of customers | 3,141 |
| Administration | |
| Employees (wholly-owned subsidiaries) | 9,468 |
| Copel Geração e Transmissão | 1,841 |
| Copel Distribuição | 7,169 |
| Copel Telecomunicações | 458 |
| Customers by employee (Copel Distribuição) | 563 |
| Financial | |
| Book value per share | R$ 45.67 |
| EBITDA | R$ 1,551.1 million |
| Current liquidity ratio | 1.7 |
Note:
(1) Proportional to the interest.
(2) 3 partially served municipalities in the rural area.
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8.3 2012 Results Conference Call
Copel will hold its 2012 results conference call
> Wednesday, March 27, 2013, at 2:00 p.m. (US EST)
> Telephone: (+1 516) 300 1066Code: Copel A live webcast of the conference call will be available on: www.copel.com/ir
Please connect 15 minutes before the call.
Investor Relations – Copel
ri@copel.com
Telephone: (55 41) 3222-2027
Fax: (55 41) 3331-2849
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The information contained in this press release may contain forward-looking statements that reflect management’s current view and estimates of future economic circumstances, industry conditions, company performance, and financial results. Any statements, expectations, capabilities, plans and assumptions contained in this press release that do not describe historical facts such as statements regarding the declaration or payment of dividends, future operations, the implementation of relevant operating and financing strategies, the investment program, factors or trends affecting the Company’s financial condition, liquidity or results of operations are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties. There is no guarantee that these results will actually occur. The statements are based on many assumptions and factors including general economic and market conditions, industry conditions and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations. |
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COMPANHIA PARANAENSE DE ENERGIA – COPEL | ||
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By: |
/S/ Lindolfo Zimmer
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Lindolfo Zimmer CEO |
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This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.