The economic-financial performance reflects the financial health of the organization and the degree of success obtained with the capital invested, allowing stakeholders to assess the use of resources and the factors that influenced this use, as well as guides the decision-making by senior management and the improvements needed to generate and maintain efficiency.  

The results obtained in each cycle direct the application or raising of funds; impact the capacity to maintain and expand the business; demonstrate the need for continuity or revision of strategies for efficiency of manageable costs; and influence the decisions of investors and shareholders. 

Thus, the economic-financial performance is directly related to Copel’s strategy of value generation, as well as to its perenniality, defining not only where the company wants to go, but also the means that will be used and the path to be taken to achieve the goals. Its indicators allow us to assess the degree of success obtained with the capital invested and to identify the determining factors for the economic result, guiding the decision-making process to improve the Company’s efficiency. 

Such result directly impacts management, guiding, for instance, the decision to invest resources or to raise external funds; the capacity to maintain and expand business; the need to continue or review strategies for efficiency of manageable costs; the decision of investors and shareholders; and the follow-up of financial risk, including the capacity to pay debts and obligations before financial institutions, suppliers, employees, the Union, the State, municipalities and shareholders. 

Copel’s economic-financial management, considering the statutory competence of the Board of Finance and Investor Relations, is guided by the set of internal policies and rules and laws and regulations of the financial market. The results are managed based on the constant monitoring of economic-financial indicators, among which we highlight: costs; earnings before interest, depreciation and amortization (Ebitda); net income; net debt/Ebitda; and cash balance.  

This management is done with the use of technological resources, such as SAP/ERP, Office, Strategic Management System (SGE), and external analysts’ reports. The data is compared with past and expected performance, and with benchmarking. The analyses are presented and discussed with the Board of Directors and, if necessary, action plans are defined. The implementation of the Dividend Policy and Investment Policy are examples of results of this process. 

The management of this performance aims to mitigate the risks and enhance the positive aspects, and is based on the Management Excellence Model (MEG), of the National Quality Foundation (FNQ). The financial targets are based on the Annual Corporate Budget, prepared by the wholly-owned subsidiaries and by Copel (Holding), and approved by the Board of Directors (CAD).  

In addition, the economic-financial performance is part of the Management Contract signed between Copel’s companies and the monitoring of the achievement of these goals is done monthly during Critical Analysis Meetings or their equivalents. Periodically, top management evaluates the economic-financial situation of the business and the changes in the scenario, approving action plans to enhance the positive impacts and/or mitigate the negative impacts. 

The risks related to the economic and financial performance are of credit and liquidity; consumer default; failure to meet the criteria of economic-financial efficiency of the Concession Agreement; drop in business profitability; drop in project profitability (new business); and economic instability. 

Copel is committed to providing due feedback to its stakeholders on its operational and financial performance, adequately remunerating the capital invested and conserving the financial capacity necessary to maintain its activities and sustainable growth. 

As a publicly traded company listed on the stock exchange, Copel is obliged by the regulations in force to practice open, clear and accessible communication for the internal and external publics, mainly with regard to topics of interest to the capital market. This communication is based on the principles of transparency, symmetry of information and equal treatment, in compliance with the Brazilian and North American legislation, as well as with the specific regulations of the Securities and Exchange Commission (CVM) in Brazil and the Securities and Exchange Commission (SEC) in the United States.  

The Investor Relations area is responsible for coordinating communication with the capital market by means of conference calls, public meetings, road shows and national and international events with associations and stock exchanges.  

In this sense, the company discloses its results quarterly, which can be checked in the Results Center on the Investor Relations page and in the Annual and Social-Environmental Reports.