Companhia Energetica De Minas Gerais Sa · BMFBOVESPA:CMIG3
Companhia Energetica De Minas Gerais Sa — Q1 2024 Earnings Presentation
20 slides from Companhia Energetica De Minas Gerais Sa's earnings presentation, May 14, 2024
Slide 1: 1Q24 Results: Executing on Our Strategic Plan
RESULTS 1Q Executing on Our Strategic Plan Transf rming lives with our
Slide 2: Disclaimer
2 Disclaimer Certain statements and estimates in this material may represent The information and opinions herein should not be understood as a expectations about future events or results which are subject to recommendation to potential investors, and no investment decision risks and uncertainties th
Slide 3: Strategic Plan Execution
3 Strategic Plan Execution Programa Minas Trifásico Investments: 36.0% higher than in 1Q23 (Three phase program) R$1.0 billion invested in the concession area Sale of stake in Aliança Energia- R$2.7 billion Robust cash generation - Ebitda R$2.0 billion (recurring) Effective management of Generation
Slide 4: Successful divestment of Aliança Energia's stake
4 Sucessful divestment of Aliança Energia’s stake Enhancing the efficiency of the investment portfolio and capital allocation discipline Divestment of a direct 45% stake in Aliança Energia for R$2.7 billion (as of 06/30/2023) Operation details Further gains ✓ R$2.7 billion for 45% of Aliança ✓ Right
Slide 5: Auctioning hydro plants to enhance power plant efficiency
5 Enhancing Power Plant Efficiency Cemig repeats its successful strategy again by auctioning hydro plants Commitment to operational efficiency and executing the Strategic Plan ✓ Asset: 4 Small hydro plants, adding to the 15 hydro plants auctioned before ✓ Where: São Paulo stock exchange B3 ✓ Minimum
Slide 6: Investment program – Execution
6 Investment program – Execution Realized in 1Q24: R$1,019 million Distribution Planned, 2024 Investment of R$6,216 million Investment in modernization and R$881million maintenance of the electricity system 506 Distribution R$209 million invested in Mais Energia Program (substations) R$315 million i
Slide 7: Analysis of Results 1Q
7 Transf rming lives with our energy ANALYSIS OF RESULTS 1Q
Slide 8: 1Q24 Highlights
8 1Q24 Highlights Cemig – Focus on maximizing bottom line o Ebitda: R$2.0 billion in 1Q24 (recurring) o IOC –R$ 386 million (March 2024) o Trading Ebitda of R$280 million Cemig D – Regulatory quality indicators o DEC Outage indicator – Action plan yields good results ✓ Reduction of power interruptio
Slide 9: Consolidated 1Q24 results
9 Consolidated 1Q24 results Net profit mainly impacted by FX exposure of Eurobonds EBITDA NET PROFIT -7.0% -4.0% -17.5% -9.1% 2,162 2,011 2,073 1,991 1,398 1,270 1,153 1,154 1Q23 1Q24 1Q23 1Q24 1Q23 1Q24 1Q23 1Q24 IFRS IFRS Recurring Recurring IFRS IFRS Recurring Recurring EBITDA NET PROFIT R$ milli
Slide 10: 1Q24: Consolidated operational costs and expenses
10 1Q24: Consolidated operational costs and expenses PMSO costs*: up 11.4% YoY 39 1,156 51 1Q24/1Q23 39 11 1,038 Up 5.6% when excluding 1Q23 non- recurring gain on remeasurement of post- employment liabilities 1Q23 Post-employment Personnel Outsourced Other 1Q24 services ▪ Post-employment liabilitie
Slide 11: 1Q24 – Consolidated cash flow
11 1Q24 – Consolidated cash flow R$ million Strong cash generation and R$2 billion in debenture issued in March strengthens Cemig's cash position and supports the execution of the Investment Program 1,505 1,035 101 32 4,553 2,037 75 323 2,311 Cash + Cash from CVA PIS/PASEP/ Loans Investment Sale of
Slide 12: Debt profile – Consolidated
12 Debt profile – Consolidated Rating agencies recognize Cemig’s financial management and credit quality Maturities timetable Average tenor 3.6 years Main indexers Ratings 1Q24 Net debt (Debt – Cash and securities): R$7.1 billion Total net debt (Net debt – Hedge): R$6.7 billion Moody’s increases AA+
Slide 13: Cemig D – 1Q24 Results
13 CEMIG D – 1Q24 RESULTS EBITDA NET PROFIT -3.7% +0.7% -12.7% -7.2% 775 746 741 746 369 347 322 322 1Q23 1Q24 1Q23 1Q24 1Q23 1Q24 1Q23 1Q24 IFRS IFRS Recurring Recurring IFRS IFRS Recurring Recurring EBITDA NET PROFIT Cemig Agro R$ million 1Q23 1Q24 1Q23 1Q24 Direct channel to farmers IFRS 775 746
Slide 14: Cemig D – Electricity market
Cemig D – Electricity market 14 Strong market growth in 1Q24 Distributed Generation - Cemig D: Billed market + transmission for clients (GWh) GWh injected +44.2 % +4.4% 12,027 76 65 Distributors +17.8% 11,525 854 1,438 878 615 997 528 Other -2.8% +5.1% 1,657 1,612 5,802 6,097 +16.4% 1Q23 1Q24 Rural
Slide 15: Cemig D: Energy losses within regulatory limit
15 CEMIG D: Energy losses within regulatory limit Total losses - 12-month moving window 7,000 6,613 6,549 15 Actions aim to keep losses within 6,371 6,250 6,500 6,135 6,172 6,239 14 regulatory limit Total 6,000 12.49 12.71 12.57 13 Losses (GWh) 5,500 Our initiatives to combat energy losses 11.28 11.
Slide 16: Cemig D: Operational efficiency
16 CEMIG D: Operational efficiency Despite 1Q24 shortfall, Cemig aims to outperform regulatory efficiency levels in FY24 OPEX (R$ million) EBITDA (R$ million) 5.1% 78 1,136 10.1% 1,081 269 85 55 65 830 96 29 746 Regulatory PMSO Post- Fines, Provisions Defualt Opex, Regulatory OPEX Other Realized Ope
Slide 17: Cemig GT – 1Q24 results
17 Cemig GT – 1Q24 results EBITDA NET PROFIT -2.2% -1.0% -19.0% -5.2% 819 801 789 781 610 522 495 494 1Q23 1Q24 1Q23 1Q24 1Q23 1Q24 1Q23 1Q24 IFRS IFRS Recurring Recurring IFRS IFRS Recurring Recurring EBITDA NET PROFIT GT - Recurring Ebitda R$ million 1Q23 1Q24 1Q23 1Q24 Trading Cemig H - Recurring
Slide 18: Gas – 1Q24 results
18 1Q24 RESULTS Consumption by category EBITDA NET PROFIT R$ million R$ million -15.6% 92.1% 1.2% 2.4% -24.5% Industrial Residential Commercial 257 217 155 2.6% 1.7% 117 Vehicle Co- natural generation gas 1Q23 1Q24 1Q23 1Q24 Natural gas volume – million m3 1,387 Main effects in 1Q results: 1,130 1,1
Slide 19: Meeting our established commitments
19 Meeting our established commitments Achieved In progress Future challenges and opportunities Non-technical losses Opex below regulatory limit (annual Renewals of – below regulatory level basis) generation concessions Strengthening Cemig D’s Divestment of minority holdings Investment Program To be
Slide 20: Investor Relations
20 Transf rming lives with our energy Investor Relations +55 31 3506 5024 ri@cemig.com.br www.ri.cemig.com.br IBRX100 B3 IEE B3 ISEB3 IEE B3 ICO2 B3 ISE B3 ICO2 B3 HPP Irapé 1Q24 RESULTS
Companhia Energética de Minas Gerais — Q1 2024 Earnings Presentation on 6ix