Companhia Energetica De Minas Gerais Sa · BMFBOVESPA:CMIG3
Companhia Energetica De Minas Gerais Sa — Energy Co of Minas Gerais — 1Q20 Earnings Presentation
32 slides from Companhia Energetica De Minas Gerais Sa's earnings presentation, Aug 6, 2020
Slide 1: Cemig's long-term ratings
Agency Cemig Cemig D Cemig GT Agency Cemig Cemig D Cemig GT Agency Cemig Cemig GT Cemig’s long-term ratings This table shows long-term credit risk ratings and outlook for the Company as provided by the principal rating agencies: Brazilian rating: Rating Outlook Rating Outlook Rating Outlook Fitch A+
Slide 2: Final Consumers
1Q20 1Q19 Final Consumers w Residential 27% wiodusteat 1 Commercial, Services, others, shusal other
Slide 3: The electricity market of Cemig D
Captive clients + Transmission service ( MWh) 1Q20 1Q19 % The electricity market of Cemig D Electricity billed to captive clients and electricity transported for Free Clients and distributors with access to Cemig D’s networks in 2020 totaled 11,063,258 MWh, or 2.0% less than in 1Q19. This result is
Slide 4: Consolidated operational revenue
Consolidated operational revenue Revenue from supply of electricity: Total revenue from supply of electricity in 1Q20 was R$ 6,767,438, 2.51% higher than in 1Q19 (R$ 6,601,417).
Slide 5: Final consumers and TUSD revenue
(1) Includes Regulated Market Electricity Sale Contracts (CCEARs) and ‘bilateral contracts’ with other agents. Final consumers Revenue from energy sold to final consumers was R$ 5,855,898 in 1Q20, compared to R$ 5,841,016 in 1Q19, or 0.25% lower year-on-year. The main factors in this revenue were: §
Slide 6: Operating expenses breakdown
2% cn 3% 6% 8% 5% 56% Personnel Post-emplyment expenses outsourced services, MEletricity bought for resale Depreciation Charges for use of grid operational provisions Gas purchased for resale infrastructure construction costs Other operational expenses
Slide 7: Employees' profit shares and electricity purchased for resale
Employees’ and managers’ profit shares The expense on employees’ and managers’ profit share in 1Q20 was R$ 25,840, compared to R$ 66,037 in 1Q19, reflecting the lower profit in the period and the change in the criteria for profit shares. Electricity purchased for resale The expense on electricity bo
Slide 8: Provision for doubtful receivables and equity in earnings of investees
Consolidated Mar. 31, 2020 Dec. 31, 2019 860,170 809,725 Equity in earnings of unconsolidated investees, net 1Q20 1Q19 Taesa 77,152 32,861 Baguari Energia 5,943 4,815 Hidrelétrica Cachoeirão 1,546 2,580 LightGer 1,234 0 Companhia de Transmissão Centroeste de Minas 0 1,450 Axxiom Soluções Tecnológica
Slide 9: Cemig, Consolidated EBITDA
Cemig, Consolidated 1,461 808 30% 25% 1019 1020 EEEEERTOA -RS itn —nentngn EITOA.
Slide 10: Cemig GT and Cemig D EBITDA
Slide 11: Consolidated debt
The Company’s total consolidated debt at March 31, 2020 was R$ 15,762,574, or R$ 986,543 more than its balance of R$ 14,776,031 at the end of 2019. It is important to note that the Company also records a net positive balance on hedge transactions for the Eurobond issue, in the total amount of R$ 3,0
Slide 12: Debt amortization (R$ mn)
Debt amortization (R$ mn) 8282 2022 2023 2028
Slide 13: Sources and uses of electricity - 1Q20 Cemig Group
SOURCES AND USES OF ELECTRICITY ~ 1020 CCEMIG GROUP (Wiholly-owned companies) SOURCES, TOTAL 20,313 GWh Electricity produced _4,603 ‘Own generation 4,107 Selt producers 0 Altiiated companies 529 Losses in national grid 33 Bought in MRE ® 1687 Bought on CCE 4.483, ‘Bilateral contracts 4ate CcEN 2 coo
Slide 14: Sources and uses of electricity - Cemig GT
SOURCES AND USES OF ELECTRICITY - 1020 Cemig GT (Generation) SOURCES, TOTAL 8,183 GWh USES, TOTAL 8,183 GWh Sales in Regulates operating aprement Total energy transacted ~ 8,183 Sales in MRE
Slide 15: Sources and uses of electricity - Cemig D
SOURCES AND USES OF ELECTRICITY — 1Q 2020 Cemig D — Distribution ‘SOURCES, TOTAL USES, TOTAL 114,466 GWh 11,468 GWh
Slide 16: Total losses
Slide 17: Power plants
Power Plant Belo Monte Emborcagio Santo AntBnio Nova Ponte trap 78s Marias Aimor salto Grande Capim Branco! Queimado Nilo Pecanha Capim Branco tl Fonil S Carvalho Rosal itutinga Igarapave Baguari Camargos ilha dos Pombos Volta do Rio Retiro Baio Porto Est Fontes Nova Praias de Parajuru Pal Joaquim P
Slide 18: RAP (Permitted Annual Revenue)
RAP (Permitted Annual Revenu: Annual Permitted Revenue (RAP) CemigGT 704,516,559 100.0% 704,516,559 Cemig GT 678,468,095 10.00% 678,468,095 Cemig Itajuba 26,088,464 10.00% 26,088,464 Centroeste 19,527,260 10.00% 19,527,260 Taesa 2,735,489,644 21.68% 593,054,155 Novatrans 2 330,901,554 63,488,599 TSN
Slide 19: CEMIG D Market
CEMIG D Market (cw) neppey | res 4637 10,850 4873 71,216) 4,870) 11,173 4,506 11,313 4,760) 11,289 4,510 11,198 4,898 11,164 4,783 11,299 1@o 6,254 4,803) 11,068 1, Refers tothe quantity of electric for aleulaton ofthe regulatory charges charged to free consumer clents( 2 Total elecricty disributed
Slide 20: Operating Revenues (R$ million)
Operating Revenues (R$ million) 1920 4019 1Q19 eg vor 4.835] 5,354] 4850 everueromUse of istiniion Syatars he NSD =e PEA leva and Other financial components in tariff adustrent = 2 (Gonatraction revenge 2aa|___3i0] (others “#25269 Subtotal 2436701 Deductions 26s] 2.567 npr 3,777| 4,224]
Slide 21: Operating Expenses (R$ million)
Operating Expenses (R$ million) 1020 4019 1019 Personnel zis|ise[ 2a Employees! and managers profit sharing 16 73 “45 Forlie = Post-rtrement cblastions: 7 71 es Materials 5 13 15 Outsourced senices a ition aes| tes [tee lOperatina provisions is [52 35. Charoes for Use of Basic Transmission Network [
Slide 22: Operating Revenues
Operating Revenues 1920 4919 _1Q19 wo Sales tons consumers eq] 1.060 ey aad Supe En] 7a Ee Reverses fom Trane. Newer 17 133 wee] -seed [Gain on monetary updating of Concass on Grant Fee: 709] 74 ai] 3484 Transactions inthe CCEE E Zz ze|__-20e4 (Core trction reenae a 7A ea Transmission ceri reerwe Ee
Slide 23: Operating Expenses
Operating Expenses: 1920 4019 1019) ma vor Personnel 75 7 Employees’ and managers prof sharing | 2 Foruz ~ Post-retirement obligations z Materials 3 Outsourced senices Eg Depreciation and Amortization Ey Operating provisions 3 Charges fr Use ofBasic Transmission Network al Energy purchased br resale
Slide 24: Energy Sales (Consolidated)
Energy Sales (Consolidate d(GW h) 1920 4Q19_1Q19 = geQ vor escent! 2res| 2ess] 27 | asm] 145 industrial sae | 4061 | _a872 | isos i095 Commercial zee] 2s) ame | 2104 anos Ral 75 = 200] anes -s.ca%4 omer wz Eq ae ‘a02| oe Subtotal was | tizas | aor =2.a7 94 [Own Consumption 2 7 0 10,0084 Sueely az |
Slide 25: Energy Sales
Energy Sales 1920, 4Q19_ 1019 goQ_ vor Ras eral zes| zeal zea] ors at nc ik aoa | 4225] 140 | vasa commercial Fd SD ural a Ea aor | sae tne = BS a Electcity sold to final consumers: Goer | eaz0[ seca | se) ae ied Supply, Net =e Ee “| _sstes] sa Supply Ey =) Er TOTAL rer | 7.120| 6e01| 45 a0
Slide 26: Operating Revenues
Operating Revenues 1920 4Q19_ 1019 goo Sales to enc consumers sec] asta] cast Supe 7o5| er] TUSD. Zz eal CVA and Other francil companenis Wh taifadhsiment 73] 72 Traneries ion concersion revenue 723] 717] Taner ion hdermity Raverue 3 EJ [Gain on menaia'y updating of Gonowsion Gant Fes q ay Transacti
Slide 27: Operating expenses breakdown
1920 4Q19 1019 sa] 2 Eretyees and rans po Samra le 7% Energy purchased Breas
Slide 28: Financial Result Breakdown
Financial Result Breakdown 19204019119 QoQ Vor FINANCE INCOME Income fom cash ives ima “al Acres fens on sale fener = ‘onatary veiaions CVA 2 Monetary updating on Cou escrow depesis ‘el sep and Cofrs chetgad on finsnce income “s| Gain on Financial rstrumerts - Sup ia ish with related paris Hn d thes
Slide 29: Statement of Results
Statement of Results 1920 4Q19_ 1019 vor Nat Fe CE ETE EA BE? Operating Expenses Sore] 6.762]. 760|_taren| ses eer 04s] __€25] 4.469] e004 tas Shere ofnH (ess) SaS0OSRE Sed On STIS a =| or] _aasn0] 20805 fagusinent brimparmentofinesinents nH ql Eero 5 ES ES TET Francia Fast 10H] eae] —eraara| Frowsi
Slide 30: Cash Flow Statement
Cash Flow Statement 1920 1919 Cash at beginning of period 536 890 [Cash generated by operations 2a 5 ‘Net income for the period from going concern operations Ea 727 Gairent and deferred income tax and Social Contiibution tax a8 357 Depreciation and amortization 243 El (GVA and other financial compon
Slide 31: Balance Sheets (Consolidated) - Assets
BALANCE SHEETS (CONSOLIDATED) - ASSETS CURRENT Cash and cash equivalents 795 536 Securities 4.512 740 ‘Consumers and traders: 4,207 4.524 Financial assets of the concession 4.139 4,080 Contractual assets 186 172 Tax offsetable 402 99 Income tax and Social Contribution tax recoverable 493 621 Dividen
Slide 32: Material Announcement: Interest on Equity payment postponed
4. Material Announcement Dated June 18, 2020: 1st payment of Interest on Equity postponed to December 30.
Energy Co of Minas Gerais — 1Q20 Earnings Presentation on 6ix