Companhia Energetica De Minas Gerais Sa · BMFBOVESPA:CMIG3
Companhia Energetica De Minas Gerais Sa — Q3 2022 Earnings Presentation
23 slides from Companhia Energetica De Minas Gerais Sa's earnings presentation, Nov 16, 2022
Slide 1: Consistent results in 3Q22
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Slide 2: Disclaimer
DISCLAIMER 2 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 expe
Slide 3: 3Q22 Results
3Q22 RESULTS 3 Operational efficiency – A pillar of Cemig’s strategy Net profit of R$1.0 bn (Adjusted net profit up +56.0% YoY) Portfolio of businesses maintains stability of results Ebitda of R$1.5 bn (Adjusted Ebitda was up +4.6% YoY) Cemig D: In 3Q22, full impact of the annual tariff adjustment A
Slide 4: Investment Program – Execution
INVESTMENT PROGRAM – EXECUTION 4 R$ 2.243 bn invested in 9M22, of which R$ 863 mn was in Cemig D in 3Q22 Investment planned for 2022 R$3,973 mn DISTRIBUTION R$1.853 mm Investments in maintenance and modernization of the electricity system Cemig SIM 328 174 Distribution R$74 mm 246 TRANSMISSION Gener
Slide 5: Investment in Renewables
INVESTMENT IN RENEWABLES 5 Expanding generation with renewables – in line with our strategic planning for growth focused on Minas Gerais R$824 mn investment in solar photovoltaic power plants (PVPPs) ✓ Boa esperança: 100 MWp installed capacity ✓ Jusante: 87 MWp installed capacity ( 7 plants) R$137 m
Slide 6: ESG Practices: Aligning and Strengthening
ESG PRACTICES: ALIGNING AND STRENGTHENING 6 Bringing sustainability practices into management Launch of Digital Renewable Energy Certificate: the Cemig SIM REC ✓ Issued free of charge to Cemig SIM´s client companies Operational fleet – initial adoption of electric vehicles ✓ Lower consumption and ma
Slide 7: Classificação: Público
Classificação: Público
Slide 8: 3Q22 Results – Main Factors
3Q22 RESULTS – MAIN FACTORS 8 Transfer of ~30% of energy trading contracts from Cemig GT to Cemig H Cemig H • Transfer of third-party contracts to Cemig H with an Ebitda of R$ 249mn in 3Q22, or R$ 452mn accumulated in 9M22 Default provision: R$ 131mn adjustment for adjustment of calculation method C
Slide 9: Cemig H (Holding Company) Results 9M22
CEMIG H (HOLDING COMPANY) RESULTS 9M22 9 Ebitda Net profit -22.8% -3.7% +18.7% +50.8% 6,346 2,790 5,270 2,688 3,377 4,900 4,441 2,240 9M21 IFRS 9M22 IFRS 9M21 9M22 9M21 IFRS 9M22 IFRS 9M21 9M22 Recurring Recurring Recurring Recurring EBITDA NET PROFIT Cemig H Adjustments 9M21 9M22 9M21 9M22 R$452 mm
Slide 10: Cemig H (Holding Company) Results 3Q22
CEMIG H (HOLDING COMPANY) RESULTS 3Q22 10 Ebitda Net profit -5.8% +4.6% +180.8% +56.0% 1,182 1,910 1073 1,028 1,799 1,468 1,535 764 659 421 3Q21 IFRS 3Q22 IFRS 3Q21 3Q22 3Q21 3T21 IFRS 3Q22 3T22IFRS 3Q21 3Q22 Recurring Recurring Recorrente Recorrente Recurring Recurring Cemig H EBITDA NET PROFIT R$
Slide 11: 3Q22: Consolidated Operational Costs and Expenses
3Q22: CONSOLIDATED OPERATIONAL COSTS AND EXPENSES 11 -4.0% PMSO costs - from 3Q21to 3Q22 +15.2% 8,308 7,978 3 877 1,010 31 55 47 10 55 PMSO 1,010 Energy 7,431 6,968 877 purchases, provisions 3Q21 Post Personnel Profit Materials Outsourced Other 3Q22 and other retirement sharing services costs 3Q21 3
Slide 12: Consolidated Cash Flow
CONSOLIDATED CASH FLOW 12 Relevant cash generation supports the execution of our investment plan, maintaining the Company's liquidity at appropriate levels 1,367 1,642 5,844 1,136 1,034 988 54 2,331 4,904 2,902 Cash + Securities Cash generated CVA Tax credits Payments of loans, Dividends & Interest
Slide 13: Debt Profile – Consolidated
DEBT PROFILE – CONSOLIDATED 13 Debt and leverage continue to be low – ensuring sustainability of operations and execution of investment program Maturities timetable | Average tenor: 3,1 years Ratings Main index Net debt (Debt – Cash and securities): R$6,5 Bi 2022 Total net debt (Net debt – Hedge): R
Slide 14: Results of Cemig D 3Q22
RESULTS OF CEMIG D 3Q22 14 Ebitda Net profit +18.8% +9.8% 859 +26.8% +16.0% 723 712 782 507 456 400 393 3Q21 IFRS 3Q22 IFRS 3Q21 3Q22 3Q21 IFRS 3Q22 IFRS 3Q21 3Q22 Recurring Recurring Recurring Recurring EBITDA NET PROFIT “ Cemig D continued delivering consistent results in 3Q22 even with market los
Slide 15: Cemig D: Power Market
CEMIG D: POWER MARKET 15 Lower volume of energy reflects strong migration of captive clients to Distributed Generation Cemig D – Captive clientes + Transport (GWh) Distributed Generation – Energy injected -0.6% 89 119 Disco -24.9% 797 856 +53.1% 11,809 11,734 1,175 933 Other +7.4% 1,357 1,484 Rural
Slide 16: Energy Losses: Kept Within Regulatory Limit – Cemig D
ENERGY LOSSES: KEPT WITHIN REGULATORY LIMIT – CEMIG D 16 Main initiatives TOTAL LOSSES (acumulated until Sep/22) 12-month mobile window 7000 6,613 6,549 15 ✓ 303,000 cliente inspections 6,371 6,202 6500 6,135 14 12.71 ✓ Increase in the inspection index, up from 37% in 6000 12.49 12.57 13 5500 12 Sep
Slide 17: Combating Default – Cemig D
COMBATING DEFAULT – CEMIG D 17 ▪ Our receivables collection index (‘ARFA´) reached new record of 99.73% in September 2022 – boosted by higher proportion of client payments via digital methods ▪ Change in collection mix reduced costs by 8.8% (R$ 5.7mn) in 9M22 ✓ Payments by PIX – Brazil´s instant mon
Slide 18: Regulatory Opex, Regulatory Ebitda – 3Q22
REGULATORY OPEX, REGULATORY EBITDA – 3Q22 18 Continuous operational efficiency efforts maintain Opex and Ebitda within the regulatory framework ✓ In 9M22, expenses totaled 4.9% below the regulatory Opex and were 0.7% above Ebitda OPEX R$ million EBITDA R$ million 706 161 15 36 79 163 130 279 315 830
Slide 19: Results of Cemig GT 3Q22
RESULTS OF CEMIG GT 3Q22 19 Ebitda Net profit -37.3% -9.2% +373.5% 799 251 161 501 369 335 -211 34 3Q21 3Q22 3Q21 IFRS 3Q22 IFRS 3Q21 3Q22 Recurring Recurring Recurring Recurring 3Q21 IFRS 3Q22 IFRS EBITDA NET PROFIT Adjustments 3Q21 3Q22 3Q21 3Q22 Cemig H IFRS 799 501 -211 251 Offsetting of hydrolo
Slide 20: 2.8 million m³ average daily volume supplied
20 Even with a lower thermal dispatch, Gasmig continues to deliver consistent results in 3Q22 Segments served| % of Volume in m3 Ebitda Net profit 86.1% 1.1% 2.2% -11.4% +13.6% Industrial Residential Commercial 184 163 99 113 4.9% 4.3% 1.4% 3Q21 3Q22 3Q21 3Q22 Thermal Vehicle Other plants natural ga
Slide 21: Fulfilling the Commitments Made
FULFILLING THE COMMITMENTS MADE 21 ✓ Opex within regulatory limit (annual base) ✓ Non-technical losses – reduction to regulatory level Achieved ✓ DEC within regulatory limit ✓ Liability management of Eurobonds ✓ Definitive solution for Renova ✓ Strengthening of Cemig D’s investment program ✓ Divestm
Slide 22: Relações com Investidores
Relações com Investidores Tel +55 31 3506-5024 ri@cemig.com.br http:/ri.cemig.com.br Classificação: Público
Slide 23: Table of Non Recurring Adjustments 9M22
TABLE OF NON RECURRING ADJUSTMENTS 9M22 EBITDA NET PROFIT ADJUSMENTS 9M21 9M22 9M21 9M22 IFRS 6,346 4,900 2,790 2,688 Provision – Credits of PIS/Pasep/Cofins taxes on ICMS - VAT - 830 - 1,331 Offsetting of hydrological risk costs -1,340 - -989 - FX exposure – Eurobond hedge - - 845 85 Gains on dispo
Companhia Energética de Minas Gerais — Q3 2022 Earnings Presentation on 6ix