Companhia Energetica De Minas Gerais Sa · BMFBOVESPA:CMIG3
Companhia Energetica De Minas Gerais Sa — Q1 2023 Earnings Presentation
23 slides from Companhia Energetica De Minas Gerais Sa's earnings presentation, May 5, 2023
Slide 1: Results
OUR ENERGY TRANSF RMS RESULTS IBRX100 B3 IEE B3 ISE B3 ICO2 B3 Classificação: Público
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: 1Q23 Results
1Q23 RESULTS Robust Cash Generation Ebitda R$ 2.1 billion (Adjusted Ebitda up +8.1% YoY) Balanced portfolio of businesses supports results growth Net Profit R$1.3 bn (Adjusted net profit up +5.7% YoY) Divestment of minority shareholdings Sale of Santo Antônio completed Sale of Retiro Baixo and Bagua
Slide 4: Divestment Strategy Success
DIVESTMENT STRATEGY SUCCESS 2019 2021 2022 2023 Corporate structure simplification 626 million 1.37 billion 60 million 55 million ✓ R$ 2.1 billion cash inflow from LIGHT LIGHT RENOVA SANTO ANTÔNIO disinvestments since 2019 Tax loss Tax loss Tax loss Cemig GT: from 7.58% ✓ R$ 1.9 billion of cash inje
Slide 5: Investment Program – Execution
INVESTMENT PROGRAM – EXECUTION R$749 million invested in first 3 months of 2023 Investment planned for 2023 Distribution R$637 million R$5,451 million Investments in maintenance and modernization of the electricity system 648 Distribution 462 Transmission R$34 million Generation Strengthening and up
Slide 6: Commitment to ESG
COMMITMENT TO ESG Cemig reaffirms its commitment to sustainability through practices of environmental conservation, social responsibility and corporate governance ▪ Issue of Renewable Energy Certificates attesting zero carbon emissions 1,795,939 Cemig REC and 109,007 I-REC 1 MWh ▪ Approximately 1.3
Slide 7: Analysis of Results
ANALYSIS OF RESULTS Classificação: Público
Slide 8: 1Q23 Results – Main Facts
1Q23 RESULTS – MAIN FACTS Cemig H • Creation of New Health Plan • R$ 57 million non-cash gain on remeasurement of post- employment liabilities • Transfer of third-party contracts to Cemig H • Ebitda of R$243 million in 1Q23 Cemig D • Market growth of 3.1% YoY, despite migration of 8.1% of total volu
Slide 9: Consolidated - 1Q23 Results
CONSOLIDATED - 1Q23 RESULTS Ebitda Net Profit -4.0% +12.8% 8.1% +5.7% 2,162 2,073 1,917 1,917 1,456 1,398 1,201 1,270 1Q22 1Q23 1Q22 1Q23 1Q22 1Q23 1Q22 1Q23 IFRS IFRS Recurring Recurring IFRS IFRS Recurring Recurring EBITDA NET PROFIT ADJUSTMENTS 1Q22 1Q23 1Q22 1Q23 Contracts representing Ebitda of
Slide 10: 1Q23: Consolidated Operational Costs and Expenses
1Q23: CONSOLIDATED OPERATIONAL COSTS AND EXPENSES Operational costs and expenses PMSO costs - from 1Q22 to Energy purchases, provisions and other 1Q23: +12.3% costs +8.5% 35 1,039 6,941 79 6,399 1,039 PMSO 925 50 925 30 1 19 Energy purchases, 5,474 5,902 provisions and other costs 1Q22 1Q23 1Q22 Pos
Slide 11: Consolidated Cash Flow
CONSOLIDATED CASH FLOW • Consistent cash generation, contributing to execution of the investment program and the Company’s liquidity 1,637 21 659 444 738 3,319 3,094 Cash + securities Cash generated CVA Tax credits Payments of Investment activity Cash + securities 2022 reimbursed to loans, financing
Slide 12: Debt Profile – Consolidated
DEBT PROFILE – CONSOLIDATED • Debt and leverage continue to be low – ensuring sustainability of our operations. Ratings Main interest rate Maturities timetable indexors Net debt (Debt – Cash and securities): R$7.2 bn Average tenor: 3.1 years Total net debt (Net debt – Hedge): R$6.6 bn 2023 4,506 18.
Slide 13: Cemig D - 1Q23 Results
CEMIG D - 1Q23 RESULTS Ebitda Net Profit +18.3% +13.1% -1.6% -7.4% 775 741 655 655 376 370 376 348 1Q22 1Q23 1Q22 1Q23 IFRS IFRS Recurring Recurring 1Q22 1Q23 1Q22 1Q23 IFRS IFRS Recurring Recurring EBITDA NET PROFIT ADJUSTMENTS 1Q22 1Q23 1Q22 1Q23 Despite losing 8.1% of the volume to Distributed Ge
Slide 14: Cemig D: Energy Losses Within Regulatory Limit
CEMIG D: ENERGY LOSSES WITHIN REGULATORY LIMIT Significant growth in total distribution in 1Q23, despite the fast development of Distributed Generation CEMIG D: BILLED MARKET + TRANSMISSION (GWh) Distributed Generation - DG +3.1% 65 +52.7% 64 878 Disco -1.6% 11,184 11,525 839 528 553 1,612 1,020 1,5
Slide 15: Energy Losses Below the Regulatory Limits - Cemig D
Energy losses below the regulatory limits - Cemig D TOTAL LOSSES 12-month mobile window 7,000 6,613 15 6,549 6,371 6,500 6,135 6,172 6,208 14 6,000 12.49 12.71 12.57 13 5,500 • 119,000 client inspections, reaching 31.3% of the 11.28 11.22 12 11.23 2023 forecast 5,000 11.51 11.43 11 4,500 11.22 11.23
Slide 16: Combating Default – Cemig D
COMBATING DEFAULT – CEMIG D COLLECTION VIA PAYMENT ONLINE (%) ▪ Payment incentive campaigns, and new payment PIX, credit card, apps, automatic direct debit, channels, resulted in major benefits in the collection mix: terminals, other media Accumulated cost of collection 10% lower year-on-year 50.28
Slide 17: Combating Default – Cemig D
COMBATING DEFAULT – CEMIG D DEFAULT PROVISIONS (R$ million) Supply of energy and use of network ▪ Default provision reduced – as a result of: ✓ Strengthening of collection activities; 135 130 ✓ Improvement in accounting rules for default (good 108 market practices, evolution of collection criteria v
Slide 18: Greater Operational Efficiency - Cemig D
GREATER OPERATIONAL EFFICIENCY - CEMIG D Opex and Ebitda within regulatory parameters OPEX EBITDA (R$ million) (R$ million) 281 22 76 40 114 59 34 73 1,045 931 741 775 686 Regulatory PMSO Post- Fines/offsets Provisions Default Opex Regulatory OPEX Others Ebitda Pos-retirement Ebitda Opex retirement
Slide 19: Cemig GT - 1Q23 Results
CEMIG GT - 1Q23 RESULTS Ebitda Net Profit -13.3% -16.5% -25.1% -6.6% 243 160 1,032 814 945 819 945 610 559 522 682 789 1Q22 1Q23 1Q22 1Q23 Transf. Ebitda 1Q22 1Q23 1Q22 1Q23 Transf. Total IFRS IFRS Recurring Recurring Cemig H Total IFRS IFRS Recurring Recurring Cemig H EBITDA NET PROFIT Transfer of
Slide 20: Cemig GT Highlights
CEMIG GT HIGHLIGHTS Cemig launches an auction notice for the sale of 15 PCHs - minimum value of R$48.2 million ▪ Divestments aligned with Strategic Planning ✓ Asset portfolio optimization, seeking to improve operational efficiency ✓ Best capital allocation “FOCUS ON MINAS” - Cemig GT remains focused
Slide 21: Gasmig – Higher Result in 1Q23
GASMIG – HIGHER RESULT IN 1Q23 Segments served EBITDA NET PROFIT +41.2% 93.0% 1.1% 1.9% 257 Industrial Residential Commercial +76.4% 182 157 3.0% 1.0% 89 Natural gas Other vehicle 1Q22 1Q23 1Q22 1Q23 Natural gas sales volume – million of m3 1,105 1,130 1,387 2.8 million m³ 946 1,011 average daily vo
Slide 22: Complying with Commitments Assumed
COMPLYING WITH COMMITMENTS ASSUMED ACHIEVED IN PROGRESS FUTURE CHALLENGES AND ✓ Opex below regulatory limit ✓ Divestment of non-strategic assets OPPORTUNITIES (annual basis) ✓ Renewals of concessions ✓ Restructuring of post-retirement ✓ Non-technical losses – below benefit plan ✓ Growth in retail el
Slide 23: Cemig Investor Relations
CEMIG INVESTOR RELATIONS +55 31 3506 5024 ri@cemig.com.br www.ri.cemig.com.br IBRX100 B3 IEE B3 ISE B3 ICO2 B3 Classificação: Público
Companhia Energética de Minas Gerais — Q1 2023 Earnings Presentation on 6ix