COPEL Companhia Paranaense de Energia - Copel Brazilian Registry of Legal Entities (CNPJ/MF) 76.483.817/0001-20 State Registration 10146326-50 Public Company - CVM 1431-1 www.copel.com [email protected] Rua Coronel Dulcídio, 800, Batel - Curitiba - PR CEP 80420-170 2009 MANAGEMENT AND SUSTAINABILITY ANNUAL REPORT December/2009 TABLE OF CONTENTS 1. OVERVIEW ...................................................................................................................................................... 4 1.1. Message from the C.E.O. ..................................................................................................................4 1.2. Strategic Reference...........................................................................................................................6 1.3. Strategy and analysis: corporate management directed to sustainability ..........................................6 1.4. Subsequent Facts..............................................................................................................................8 1.4.1. Return to Corporate Sustainability Index - ISE.......................................................................8 1.4.2. Creation of Chief Environment and Corporate Citizenship Office...........................................8 1.4.3. Corporate management integrated system ERP contracting..................................................8 1.5. Contribution to Elejor .........................................................................................................................9 1.6. Corporate Sustainability Goals ..........................................................................................................9 1.6.1. Performance relative to the goals for 2009.............................................................................9 1.6.2. Corporate Goals defined for 2010 ........................................................................................10 1.7. About Management and Sustainability Annual Report.....................................................................13 1.8. Organizational Profile ......................................................................................................................14 1.8.1. Operating Performance ........................................................................................................15 1.8.2. Organization chart of interests and share composition.........................................................18 1.9. Operating Structure .........................................................................................................................18 1.9.1. Generation............................................................................................................................18 1.9.2. New generation projects.......................................................................................................21 1.9.3. Transmission........................................................................................................................21 1.9.4. Distribution ...........................................................................................................................25 1.9.5. Energy commercialization in 2009........................................................................................28 1.9.6. Telecommunications ............................................................................................................28 1.9.7. Interests................................................................................................................................28 1.10. Copel’s Products: market share.......................................................................................................29 1.11. Funding/ Indebtedness ....................................................................................................................30 1.12. Responsibility and involvement with stakeholders...........................................................................31 1.13. Main certifications and awards ........................................................................................................34 2. CORPORATE GOVERNANCE DIMENSION................................................................................................. 35 2.1. Structure and good practices of governance ...................................................................................35 2.2. General Meeting ..............................................................................................................................37 2.3. Board of Directors - CAD.................................................................................................................37 2.4. Audit Committee ..............................................................................................................................37 2.5. Fiscal Council ..................................................................................................................................38 2.6. Executive Board...............................................................................................................................38 2.7. Code of Conduct..............................................................................................................................39 2.8. Ethical Guidance Board...................................................................................................................39 2.9. Confidential Communication Channel..............................................................................................39 2.10. Permanent Committee of Disclosure of Relevant Acts and Facts ...................................................40 2.11. Relationship with shareholders and investors..................................................................................40 2.12. Distribution of Dividends and Interest on Capital (IOC) ...................................................................41 2.13. Shareholders’ Agreement................................................................................................................41 2.14. Copel’s issuance papers: Bovespa and Latibex indexes.................................................................41 2.15. Audits 42 2.16. Risks management..........................................................................................................................42 2.17. Sustainability policy and corporate citizenship.................................................................................43 2.18. Information Technology ...................................................................................................................44 3. ECONOMICAL AND FINANCIAL DIMENSION............................................................................................. 45 3.1. Net Operating Revenue...................................................................................................................45 3.2. Operating Costs and Expenses .......................................................................................................45 3.3. EBITDA or LAJIDA ..........................................................................................................................46 3.4. Financial result.................................................................................................................................46 3.5. Indebtedness ...................................................................................................................................47 3.6. Net profit ..........................................................................................................................................47 3.7. Value Added ....................................................................................................................................47 3.8. Shares Price Performance...............................................................................................................48 3.9. Economical Value Added - VEA OR EVA........................................................................................48 3.10. Investments in Concession..............................................................................................................49 1 3.11. Consumers Default..........................................................................................................................49 4. SOCIAL AND SECTOR DIMENSION ............................................................................................................ 50 4.1. Performance in social and cultural areas.........................................................................................50 4.1.1. Human Rights.......................................................................................................................50 4.1.2. Social Corporate Project and Programs ...............................................................................52 4.1.3. Government and Society......................................................................................................56 4.1.4. Customers............................................................................................................................56 4.1.5. Commercial and institutional marketing................................................................................59 4.1.6. Suppliers ..............................................................................................................................62