Companhia Energetica De Minas Gerais Sa · BMFBOVESPA:CMIG3
Companhia Energetica De Minas Gerais Sa — Q1 2022 Earnings Presentation
23 slides from Companhia Energetica De Minas Gerais Sa's earnings presentation, May 17, 2022
Slide 1: Transforming lives with our energy
Trasnsforming lives with our energy. Classificação: Confidencial
Slide 2: Disclaimer
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 expect
Slide 3: 1Q22 Results
1Q22 RESULTS OUR ENERGY, TRANSFORMING LIVES Continuous improvement in our quality indicator – DEC at 9.26 over the last 12 months FOCUS ON COMBAT OF ENERGY LOSSES: AIMING TO REMAIN BELOW THE REGULATORY LIMIT Robust program to combat power losses with assertive actions will enable Cemig D to reach ou
Slide 4: Investment Program – Execution
INVESTMENT PROGRAM – EXECUTION Investment planned for 2022 Investment of R$ 499 mn in 1Q22 R$ 3.973 billion 174 DISTRIBUTION TRANSMISSION 328 R$423 mn R$51 mn 246 Investments in maintenance and Strengthening and upgrading modernization of the electricity system – with increase in RAP GENERATION INVE
Slide 5: Quality Indicators
QUALITY INDICATORS Our energy transforming quality of life for the people of Minas Gerais By focusing on investments in Minas Gerais State, we win our clients’ trust through the quality and agility of services provided by Cemig D: 10.63 10.51 10.31 10.08 9.98 7.29 7.24 6.98 10.58 10.61 6.56 6.43 9.7
Slide 6: Combating Default
COMBATING DEFAULT Positive results in 1Q22, highlight in relation to ARFA Receivables Collection Index (‘ARFA’) % Collection/Billing even in the context of the population's income drop 99.18 98.66 97.37 96.67 96.78 Implemented actions have proven to be effective: 2019 2020 2021 1Q21 1Q22 ▪ Daily mon
Slide 7: Voluntary Retirement Plan
VOLUNTARY RETIREMENT PLAN The Programmed Voluntary Retirement Plan (PDVP) • Aim is adjustment of costs and operational efficiency. Cemig’s offer: ▪ All employees of Cemig, Cemig D and Cemig GT can join between May 2 and May 20, 2022, (with some exceptions, specified in the program). ▪ Program will p
Slide 8: Sale of Renova
SALE OF RENOVA Disposal of Renova is in line with Cemig’s strategic planning and disinvestment program • Sale to Angra Partners ▪ Total amount paid: R$ 60 mn (Angra receives the shares, plus all receivables) ▪ Earn-out subject to events specified in the contract • In addition to the payment received
Slide 9: Sustainability - Highlights from 1Q22
SUSTAINABILITY - HIGHLIGHTS FROM 1Q22 Publication of the Annual Sustainability Report Compilation of initiatives that impact Cemig's ESG performance Follows international standards for GRI reports Independently audited by Bureau Veritas Certification Renewable Energy Certificate - RECs Guarantee tha
Slide 10: Classificação: Confidencial
Classificação: Confidencial
Slide 11: 1Q22 Results – Main Factors
1Q22 RESULTS – MAIN FACTORS Trading strategy strengthened the result Cemig H • Of the Ebitda of R$ 262 mn, R$49 mn comes from transfer of contracts to Cemig H. Workforce renewal • The 2022 voluntary dismissal program results in improved operational efficiency. • A public competition is being held to
Slide 12: Cemig H (Holding Company) Results
CEMIG H (HOLDING COMPANY) RESULTS Ebitda Net profit +3.9% +15.6% +245.0% +49.4% 1,845 1,917 1,456 1,201 1,658 1,917 804 422 1Q21 – IFRS 1Q22 – IFRS 1Q21 1Q22 1Q21 – IFRS 1Q22 – IFRS 1Q21 1Q22 recurring recurring recurring recurring EBITDA NET PROFIT ADJUSTMENTS 1Q21 1Q22 1Q21 1Q22 Cemig H IFRS 1,845
Slide 13: Results of Cemig GT
RESULTS OF CEMIG GT Ebitda Net profit +26.5% +82.1% 944 746 814 559 307 1Q21 – IFRS 1Q22 – IFRS -311 1Q21 1Q22 recurring recurring 1Q21 – IFRS 1Q22 – IFRS Ebitda Net profit ADJUSTMENTS 1Q21 1Q22 1Q21 1Q22 ROBUST RESULTS IFRS 746 944 –311 814 Trading strategy: FX exposure – Eurobond hedge – – 619 –25
Slide 14: Results of Cemig D
RESULTS OF CEMIG D Ebitda Net profit –12.1% –4.1% –1.7% +10.6% 745 655 666 655 392 376 340 376 1Q21 – IFRS 1Q22 – IFRS 1Q21 1Q22 1Q21 – IFRS 1Q22 – IFRS 1Q21 1Q22 recurring recurring recurring recurring CLIMATE FACTOR Ebitda Net profit Volume of rainfall ADJUSTMENTS 1Q21 1Q22 1Q21 1Q22 in the quarte
Slide 15: The Electricity Market – in 1Q22
THE ELECTRICITY MARKET – IN 1Q22 Lower consumption in 1Q22 mainly reflects climate factors: – lower temperatures, and higher volume of rainfall, in the quarter. Rural consumers: Cemig D: Billed market + transmission (GWh) 176,700 clients removed from this 73 category by Aneel Resolution –3.4% 63 Dis
Slide 16: Regulatory Opex, Regulatory Ebitda – 1Q22
REGULATORY OPEX, REGULATORY EBITDA – 1Q22 Commitment to operational efficiency-maintained indicators within regulatory parameters 202 23 34 52 104 = R$ 8 mn 818 829 Opex: Realized / Regulatory, % OPEX 2019 2020 2021 1Q22 128.30% 99.50% 85.80% 99.04% Regulatory Opex PMSO Post-retirement Fines/ Provis
Slide 17: 1Q22: Consolidated Operational Costs and Expenses
1Q22: CONSOLIDATED OPERATIONAL COSTS AND EXPENSES PMSO costs 4.5% higher – less than the inflation of 11.3% in the period +11.5% PMSOcosts PMSO costs––from from11Q21 Q21 to 1Q22 +4.5% 6,399 5,737 924 1 39 46 50 PMSO 884 3 7 Purchase of energy and 4,853 5,475 884 924 other costs 1Q21 1Q22 1Q21 People
Slide 18: Gasmig continues to deliver consistent results in 2022
Gasmig continues to deliver consistent results in 2022: FOCUS – expanding presence of Gasmig in Minas 'Gerais by Segments served – % of volume in m3 expanding the gas distribution network 77.2% 0.9% 2.0% Ebitda Net profit Industrial Residential Commercial 10.9% 20.3% 14.5% 4.1% 1.3% 164 182 Thermoel
Slide 19: Tariff Review
TARIFF REVIEW The results of Gasmig’s second 5-year Tariff Review, decided by the Minas Gerais Economic Development Department (SEDE), were published in April 2022: In spite of the reduction averaging 10.05% across all the consumer categories, we highlight: ✓ WACC reduced from 10.02% p.a. to 8.71% p
Slide 20: Debt Profile – Consolidated
DEBT PROFILE – CONSOLIDATED Debt and leverage continue to be low – ensuring sustainability of our operations. Maturities timetable | Average tenor: 3.2 years Main interest rate indexors Net debt (Debt – Cash and securities): R$ 7.3 bn Total net debt (Net debt – Hedge): R$ 6.2 bn • The debt in USD is
Slide 21: Consolidated Cash Flow
CONSOLIDATED CASH FLOW Robust cash generation – from continuous efforts to achieve efficient management with focus on results 1,039 2,011 269 258 830 20 5 455 2,903 2,576 Caixa + TVM Cash + Caixa Cash CVA CVA Liquidação Settlement Restituição Tax credits Pagamentos Payments JCP Dividends Outros Othe
Slide 22: Fulfilling the Commitments Made
CUMPRINDO OS COMPROMISSOS ASSUMIDOS ✓ Opex within regulatory limit ✓ Non-technical losses – reduction to regulatory level Achieved ✓ DEC within regulatory limit ✓ Liability management of Eurobonds ✓ Definitive solution for Renova ✓ Strengthen Cemig D’s investment program ✓ Divestments of non-strateg
Slide 23: Investor Relations
Investor Relations Tel: +55 31 3506-5024 ri@cemig.com.br http:/ri.cemig.com.br Trasnsforming lives with our energy. Classificação: Confidencial
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