Companhia Energetica De Minas Gerais Sa · BMFBOVESPA:CMIG3
Companhia Energetica De Minas Gerais Sa — Q4 2021 Earnings Presentation
29 slides from Companhia Energetica De Minas Gerais Sa's earnings presentation, Mar 31, 2022
Slide 1: A year of great achievements
2021 A year of great achievements ESSA É A FONTE DA NOSSA ENERGIA Classificação: Público
Slide 2: Disclaimer
2 DISCLAIMER Certain statements and estimates in this material may represent expectations about future events or results, which are subject to risks and uncertainties that may be known or unknown. There is no guarantee that events or results will occur as referred to in these expectations. These exp
Slide 3: Management focused on results
3 Management focused on results SOME OF OUR ACHIEVEMENTS ✓ OPEX and EBITDA within regulatory parameters • OPEX 14.2% below regulatory parameters and EBITDA 18.3% above regulatory parameters ✓ Losses within regulatory parameters (11.23 p.p. against a target of 11.28 p.p.) • The integrated actions imp
Slide 4: Management focused on results
4 Management focused on results ✓ Strong liquidity, with leverage close to 1x EBITDA • Recurring reduction in net debt • The rating agencies increasingly upgraded our ratings ✓ Best rating in the Company’s history ✓ Liability management ✓ Structural solution for post-employment liabilities • Adjustm
Slide 5: Management focused on results
5 Management focused on results ✓ Concluded the sale of stake in Light • R$1,372 mn referring to a 22.6% stake ✓ Sale of our stake in Renova is almost completed ✓ We began to transfer commercialization contracts to the Holding company • Greater visibility for the commercialization business • Greater
Slide 6: Execution of the investment program
6 Execution of the investment program Investments of R$2,123 mn in 2021 ✓ A 29.5% growth over 2020 Planned for 2022 ✓ Investments of R$714 million in 4Q21 indicates a supply chain recovery for the energy sector 174 328 Generation 246 R$165 mn Total Expansion and modernization of generation R$3.97 Bn
Slide 7: Sale of non-strategic assets
Sale of non-strategic assets ✓ Completed sales: ✓ . • Remaining stake sold for R$1.372 billion (R$ 20.00 per share) ✓ .– • Total amount R$60 mn (shares + receivables) • Earn-out subject to liquidity events specified in the contract • Transaction is subject to approval of conditions precedent In line
Slide 8: Positive results achieved in combating losses
8 Positive results achieved in combating losses 2021 was a year of achievement for Cemig D, especially in combating losses ✓ Total loss rate within the parameters established by Aneel ✓ Estimated savings of R$160 mm (~600 GWh) Energy recovery plan focusing on . Total Losses ✓ Approximately 60% of bi
Slide 9: Quality indicator in customer service
9 Quality indicator in customer service Cemig D achieved historic results in quality indicators • The increase in investments in the distribution concession has already impacted the quality of services to our customers through more agility and reliability 10.63 10.51 10.31 10.08 10.61 7.29 7.24 10.5
Slide 10: CEMIG D - Combating default
10 CEMIG D - Combating default 2021 was a year with exceptional results in combating default, even with the challenges imposed by the macroeconomic Receivables Collection Index - ARFA ( % ) environment (Collection/Billing) 98.66 Effective contingency program: 96.67 96.78 ✓ Daily monitoring of billin
Slide 11: Cemig is aligned with the best ESG practices
11 Cemig is aligned with the best ESG practices Sustainability increased the Company's results I-REC Renewable Energy Certificate Permission for customers to prove the origin of their renewable energy, enabling additional commercialization values Energy efficiency program Investment of over R$138 mi
Slide 12: Proposal for allocation of 2021 net income
12 Proposal for allocation of 2021 net income Strong results offer attractive remuneration for our shareholders and support the execution of the largest investment plan in the Company's history R$1,966 mn destined for the payment1 of mandatory dividends, corresponding to R$1.16 per share • R$955 mn
Slide 13: Results Analysis
RESULTS ANALYSIS ESSA É A FONTE DA NOSSA ENERGIA Classificação: Público
Slide 14: 2021 Earnings Results Highlights
14 2021 Earnings Results Highlights ✓ We began to transfer Cemig GT’s commercialization contracts Cemig H • R$233 mn in Ebitda and R$154 mn in Net Income ✓ Gasmig had a prominent participation, contributing an EBITDA of R$681 mn ✓ Adjustment to post-employment benefits - Life Insurance, in the amoun
Slide 15: Cemig - Results 4Q21
15 Cemig - Results 4Q21 Cemig reports solid and consistent results in the 4th quarter Ebitda Net Income +5.9% +30,3% -24.2% +68.3% 1,562 1,654 1,492 1,145 1,271 963 993 590 4Q20 IFRS 4Q21 IFRS 4Q20 4Q21 4Q20 4Q21 4Q20 IFRS 4Q21 IFRS Recurring Recurring Recurring Recurring Ebitda Net Income Adjustmen
Slide 16: Cemig - Results 2021
16 Cemig - Results 2021 Financial discipline and focus on operational management increased Cemig's results Ebitda Net Income +40.5% +21.7% +31.0% +49.8% 8,000 5,933 3,753 5,695 4,875 2,865 3,496 2,334 2020 IFRS 2021 FRS 2020 2021 2020 IFRS 2021 IFRS 2020 2021 Recurring Recurring Recurring Recurring
Slide 17: Cemig GT - Results 4Q21
17 Cemig GT - Results 4Q21 Highlight to the transfer of part of the commercialization contracts to Cemig H in 4Q21, impacting EBITDA by R$108 mn and Net Income by R$71 mn Ebitda Net Income -41.5% +27.8% +56.0% 509 628 464 298 363 -51 195 125 4Q20 IFRS 4Q21 IFRS 4Q20 4Q21 Recurring Recurring 4Q20 4Q2
Slide 18: Cemig GT - Results 2021
18 Cemig GT - Results 2021 Commercialization strategy mitigates business risks ▪ We highlight the transfer of part of the commercialization contracts to Cemig H in 2021, impacting EBITDA by R$233 mn and Net Income by R$154 mn Ebitda Net Income +36.9% +2.2% -17.5% +30.7% 3,541 2,586 1,960 2,003 1,056
Slide 19: Cemig D - Energy market - 4Q21
19 Cemig D - Energy market – 4Q21 MWh The Cemig D energy market increased in 4Q21, even with mild climate and higher rainfalls Injected energy DG - MWh Cemig D: billed market + transmission +79.4% 79 67 558 +0.6% 779 866 Distributors -15.2% 311 961 894 1,503 1,496 Others +11.2% 11,621 11,690 4Q20 4Q
Slide 20: Cemig D - Results - 4Q21
20 Cemig D - Results – 4Q21 Cemig excluded the obligation to pay post-employment life insurance benefits from the 2021/2023 Collective Bargaining Agreement, positively impacting results by R$309 million Ebitda Net Income +113.6% +46.8% +112.5% +35.2% 988 561 679 357 463 463 264 264 4Q20 IFRS 4Q21 IF
Slide 21: Cemig D - Results 2021
21 Cemig D - Results2021 Strong cash generation will guarantee a robust investment plan to offer excellent services to the consumers in Minas Gerais Ebitda Net Income +33,0% +25,4% +41,5% +32,6% 3,047 1,701 2,291 2,649 1,202 1,438 2,113 1,085 2020 IFRS 2021 IFRS 2020 2021 2020 IFRS 2021 IFRS 2020 20
Slide 22: Cemig D - regulatory OPEX and EBITDA - 2021
22 Cemig D – regulatory OPEX and EBITDA – 2021 Commitment to operational efficiency-maintained indicators within regulatory parameters 666 19 90 47 68 32 OPEX R$448 mn 3,163 2,715 Opex: Real/Regulatory 2018 2019 2020 2021 105.4% 128.3% 99.5% 85.8% Reg PMSO Pós-Emprego PDVP Multas Provisões PECLD Rea
Slide 23: Consolidated operating costs and expenses - 4Q21
23 Consolidated operating costs and expenses - 4Q21 Reduction in post-employment expenses in line with our strategic planning +26.6% 8,032 PMSO costs – 4Q21 vs. 4Q20 6,344 644 -32.6% PMSO 955 7 3 2 48 Purchase 7,388 of energy 415 64 and other 5,389 955 costs 644 4Q20 Personnel Profit Share Materials
Slide 24: Consolidated operating costs and expenses - 2021
24 Consolidated operating costs and expenses - 2021 The reduction in post-employment expenses is in line with our strategic planning +31.7% 28.236 PMSO costs – 2021 vs. 2020 21,432 3,327 -4.8% PMSO 3,496 36 7 14 185 Purchase 24,909 423 98 of energy 17,936 and other 3,496 3,327 costs 2020 2021 2020 P
Slide 25: Focus on expanding Gasmig's presence in Minas Gerais
25 Focus on expanding Gasmig's presence in Minas Gerais through network expansion • Growth of 19.5% in volume of gas sold to the industrial category and 205.3% to thermal plants Business Segments - Volume m³ Ebitda 2021 Net Income 2021 +57.6% +57.8% 63.3% 0.8% 1.5% Industrial Residential Commercial
Slide 26: Debt profile - consolidated
26 Debt profile – consolidated Bond buyback reduced our exposure to foreign currency and concentrated our debt maturity to 2024 Maturities timetable –Average tenor: 3.3 years Main indexors Net debt (= Debt –{Cash + securities}): R$8.4 Bi Total net debt = {Net debt –Hedge}: R$7.2 Bi 13% DÓLAR (CDI) 6
Slide 27: Consolidated cash flow
27 Consolidated cash flow Strong cash generation allows us to meet our investment plan and debt management goals 2,236 1,021 1,316 6,215 4,436 1,416 13 1,366 2,087 5,805 2,903 Caixa Cash ++ TVM Caixa Cash CVA CVA Liquidação PIS/Pasep Settlement Restituição & Pagamentos Payments of JCP Dividends Outr
Slide 28: Fulfilling the commitments we made
28 Fulfilling the commitments we made OPEX in line with regulatory parameters Fulfilled Strengthening of Cemig D's Investment Program Fulfilled DEC within regulatory parameters Fulfilled Liability management of bonds Fulfilled Non-technical losses - Within regulatory parameters Fulfilled Sale of non
Slide 29: Investor Relations
Investor Relations Fone:+55 31 3506-5024 ri@cemig.com.br http:/ri.cemig.com.br ESSA É A FONTE DA NOSSA ENERGIA Classificação: Público
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