Companhia Paranaense de Energia – COPEL (NYSE:ELP) Q4 2022 Earnings Call Transcript

Daniel Slaviero: Hello, Andre. All shareholders can vote in this process according to their share, to their capital. We don’t see and our advisors don’t see any restriction for any of the shareholders in terms of voting within the share that they have in the company’s capital.

Operator: Next question, Marcelo .

Unidentified Analyst: Good morning everyone. Congratulations on the excellent results. I would like to know how the company sees the transition process into corporation and the strengthening of corporate governance guaranteeing value generation to investors. Thank you.

Daniel Slaviero: A process of this magnitude, Marcelo, has a number of steps. The first step is the source and the decision, and that is up to the controlling shareholders, not all shareholders in general. So I think this step has already been completed. Second is the legislative approval in the state of State of Paraná, which is already behind us. After that, now I think it’s the point where we are at, and I don’t want to repeat myself, but it’s the process to build or do the due diligence, at least two valuations and this is then submitted to the Court of Accounts of State of Paraná, who is the body that has the prerogative to supervise this type of analysis done by the company. With this process concluded, we will, or this operation concluded, the company then will enter a new phase at a new level.

So we already have part of our time dedicated to think and look at this and the collective work agreement already brings some of the lines and guidelines. But for now, and the next moment, will only come after the current moment is executed well, transparently, with the approval of all agencies, and that’s what we’re focused on. But just to conclude the answer and address this, I believe the company already has at its origin and the ESG area, a strong focus on the G, on Governance. We already advanced from Level 1 to Level 2, improved our bylaws, created committees to oversee statutes and bylaws. And it’s in the process moving forward of evolving and governance and we believe that this is a process that still has many steps to be taken. But I’d say, this is the main legacy of the work of this administration, which is to have a stronger and stronger governance and more and more transparent governance.

Operator: Next question, Eduardo Grangeiro .

Unidentified Analyst: What should be the destination of capital coming from the divestments at UEGA and Compagas this year? Thank you.

Daniel Slaviero: Grangeiro, good morning. Our priority here is within that focus of divesting on assets that are not our core business and decarbonize the matrix. Our intention is to use the funds coming from that to continue with our focus on energy, and COPEL and Distribuição investment plan and to continue looking actively at the vast opportunities for M&A. Greenfield at this time, we see at first conditions right. But for an investment, I mean wind and solar generation, I believe there are good opportunities in the transmission auctions not only this year, even though the volume of 2023 is quite relevant, but 2024, we’ll have more, and Vitol and GeT’s team and new business are keeping an eye on all of these opportunities. So in short, Grangeiro, everyone the objective is for these funds to continue reinforcing our strategy and our priority to grow as an integrated company, strengthening all of our branches, but always focusing on electricity.

Operator: Next question, Andre Figueiredo.

Unidentified Analyst: Is there an expectation of plan to mitigate recurring judicial liabilities? Thank you.