Slide 1: Earnings Results Presentation - 4Q20
Earnings Results Presentation - 4Q20 March 19, 2021
Slide 2: Management with extensive experience and proven track record committed to delivering results
Management with extensive experience and proven track record committed to delivering results to Light CEO Nonato Castro CFO & IRO People & Corporate Distribution Commercial Legal Regulation, Administrative and Management Energy and Trading Controlling Roberto Barroso Carla Medrado Daniel Negreiros T
Slide 3: New shareholding structure after Cemig divestment and Jan '21 follow-on
New shareholding structure after Cemig divestment and several investors engagement in Jan ’21 follow-on Before the Offering After the Offering Others Others 44.20% 63.57% Cemig Atmos Atmos 22.58% Capital Capital 5.62% 6.26% Santander Santander PB FIA 1 PB FIA 1 10.07% 10.16% Samambaia FIA Samambaia
Slide 4: Tariff readjustment approved on March 9th
Tariff readjustment approved on March 9th +1.7% +3.7% +5.2% +7.8% -9.1% +13.3% -12.4% +6.75% -3.5% = Current Energy Transmission Sector Parcel B and Previous Covid- Tax credits Average CVA/Financial purchase costs or charges Irrecoverable CVA/Financial Account (PIS/COFINS) Consumer items Basic grid
Slide 5: Selected highlights
Selected highlights Even with a challenging scenario in the quarter and in the year, we managed to advance in the DisCo’s operating improvement plan and ensure good results in the GenCo and Trading Total losses 95 GWh lower in 4Q20 QoQ. In 2020, the Recurring consolidated EBITDA of R$974 mln, an inc
Slide 6: Grid load and Billed market
Grid load and Billed market Grid load Billed Market Billed market by segment GWh GWh GWh Δ: -1.6 % Δ: -2.9 % Δ: -2.2 % Δ: -2.6% 6,832 6,654 537 296 9,490 9,335 980 9,060 6,986 1,015 6,832 6,654 1,237 1,327 1,975 1,861 2,049 2,190 4Q19 4Q20 4Q18 4Q19 4Q20 Residential Commercial Industrial 4Q18 4Q19 4
Slide 7: Losses combating | Total Losses (12 months)
Losses combating | Total Losses (12 months) Covid-19 Pandemic 26,72% 26,76% 26,60% 26,82% 26,81% 12.000 25,86% 25,97% 26,09% 26,06% 11.000 24,49% 25,76% 25,93% 26,04% 25,99% 25,92% 25,00% 23,95% 25,44% 25,29% 10,102 10,050 9,945 10.000 9,706 9,532 9,499 9,378 9,303 9,094 9.000 20,62% 20,62% 20,62% 8
Slide 8: Losses combating | Conventional Treatment Area
Losses combating | Conventional Treatment Area Total Losses in the CTA Total Losses/Grid load in CTA GWh, 12 months 12 months Reduction of 5,303 Reduction of 16.6 1,260 2.4 p.p. 4,729 GWh in 1 year in 1 year 4,218 4,160 15.3% 4,043 14.5% 14.5% 14.2% 4Q19 1Q20 2Q20 3Q20 4Q20 4Q19 1Q20 2Q20 3Q20 4Q20
Slide 9: Losses combating | Non-technical losses
Losses combating | Non-technical losses (GWh, 12 months) 7,086 6,683 6,609 6,532 6,351 55,30% 55,36% 55,01% 54,37% 54,53% 52,96% 52,92% 52,92% 3,087 2,595 2,210 2,097 52,68% 2,201 45% 44% 39% 35% 33% 51,86% 52,05% 51,54% 46,90% 51,25% 50,82% 50,25% 49,53% 45,18% 7,412 7,396 7,295 7,070 4,088 4,150 4
Slide 10: Consistent evolution of the IEN throughout the year
Consistent evolution of the IEN throughout the year IEN and REN quarterly 600 900 705 500 Sustainable increase in REN (12 months). 553 7.6% increase in 4Q20 compared to 3Q20, 400 500 363 312 312 reaching 312 GWh 269 290 300 209 235 186 186 200 100 142 127 121 Consistent development of IEN throughout
Slide 11: Operational quality continues with good results
Operational quality continues with good results 19 DEC 12 months (hours) 17 15 13 9,8 11 8,99 8,88 8,73 8,54 8,23 8,14 8,14 8,14 8,14 9 20% reduction compared to 2019, 7 demonstrating the assertiveness of 5 3 investments and the field teams’ good 1 13,74 13,97 12,69 10,13 8,85 8,84 7,78 7,03 6,66 7,
Slide 12: Consolidated EBITDA of R$974 mln due to better results of GenCo (GSF) and DisCo
Consolidated EBITDA of R$974 mln due to the better results of GenCo (GSF) and DisCo Amounts in R$ mln + R$510 mln -71 394 -116 30 25 572 1296 21 974 525 464 -82 Adjusted EBITDA Extraordinary Provision VDP Recurring Net Revenue 1 Non Manageable Manageable Provisions 2 Recurring Furnas State VAT on Ad
Slide 13: 4Q20 EBITDA growth driven by DisCo's and GenCo's results
4Q20 EBITDA growth driven by DisCo’s and GenCo’s results Amounts in R$ mln + R$510 mln -19 498 30 974 464 Recurring EBITDA 4Q191 EBITDA Light SESA EBITDA Light Energia EBITDA LightCom Recurring EBITDA 4Q20 2 Improvement of DisCo’s EBITDA due to lower legal contingencies provision and PMS Increase in
Slide 14: Positive development of judicial contingencies
Positive development of judicial contingencies Provisions – Legal contingencies (R$ mln) Number of JEC processes (thousand) 4Q20 4Q19 2020 2019 21,3 22,4 19,4 18,8 JEC (21) (44) (100) (191) 16,3 16,3 13,3 Civil (54) (53) (118) (143) 12,7 11,6 11,9 9,6 8,9 Others (96) (43) (75) (78) 7,8 8,1 4,8 Adjus
Slide 15: Increase in net income reflecting better operating results
Increase in net income reflecting better operating results, even with lower financial results Amounts in R$ mln + R$283 mln -65 -127 199 510 -51 16 434 235 -48 366 319 4Q19 Result Non-recurring 4Q19 Recurring Recurring Financial Results Taxes Depreciation Equity Income 4Q20 Recurring Non-recurring 4
Slide 16: Despite turnaround effects, pandemic continues to hurt DisCo's results
Despite the turnaround positive effects, the effects of the pandemic continue to hurt DisCo’s results Amounts in R$ mln DisCo’s turnaround result (2020 vs. 2019) Pandemic estimated impacts -168 +195 Results Impacts +R$264 -R$331 mln mln +60 -163 9 +9 Reduction of losses PMS Reduction Contingencias P
Slide 17: Robust cash position to meet debt maturities
Robust cash position to meet debt maturities Amortization of Consolidated Debt (R$ mln) Debt (R$ mln) and Net Debt/EBITDA (x) 18.000 4,00 3,090 Average 3.50 3.50 3.50 3.50 3.50 2,906 maturity 2.4 years 16.000 14.000 3,50 3,00 2,285 2.98 3.06 3.07 12.000 2.40 1,965 2,50 10.000 8,724 1,652 8,428 8,255
Slide 18: Final takeaways: Building the Light of the Future
Final takeaways Management committed to generating results for Light Processes review to leverage operating improvement Consumer centric in all business lines Building the Light of the Future 18
Slide 19: Legal disclaimer
Legal disclaimer This presentation may include declarations that represent forward-looking statements according to Brazilian regulations and international movable values. These declarations are based on certain assumptions and analyses made by the Company in accordance with its experience. the econo
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