Companhia Energetica De Minas Gerais Sa · BMFBOVESPA:CMIG3
Companhia Energetica De Minas Gerais Sa — Q2 2023 Earnings Presentation
27 slides from Companhia Energetica De Minas Gerais Sa's earnings presentation, Aug 4, 2023
Slide 1: Earnings
OUR ENERGY TRANSF RMS EARNINGS 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: 2Q23 – Solid and Consistent Results
2Q23 – SOLID AND CONSISTENT RESULTS SOX certification – unqualified auditors’ approval Strengthening internal controls to ensures SOX compliance Cemig continues delivering robust operational cash generation 2Q23 Ebitda R$ 1.9 billion (Adjusted Ebitda up 3.8% YoY) Balanced portfolio contributes to gr
Slide 4: Investment Program Execution
INVESTMENT PROGRAM EXECUTION R$1,709 million invested in 1H23 Investment planned for 2023 Distribution R$1,429 million R$5,451 million Investments in maintenance and modernization of the electricity system 648 3,217 Distribution 462 Generation Transmition R$86 million 259 Transmission Strengthening
Slide 5: Trading: New Challenges
TRADING: NEW CHALLENGES Expansion of Free Market generates new opportunities Site Enhancement www.Energialivre.Cemig.com.br to better serve the retail market (‘Traders’) Solution for companies connected at medium voltage (‘Group A’) Companies can save up to 35% on electricity cost 1MWh Renewable Ene
Slide 6: Digital Transformation
DIGITAL TRANSFORMATION Investments of R$1 billion in 2022–27 Ambition Digitalization focused on the client, with efficiency, quality and security Strategy Increase business productivity – Increase it efficiency Focus on client Increase resilience of through process automation, of IT by adopting serv
Slide 7: ESG Action
ESG ACTION Building a Diverse and Inclusive Culture Launch of Diversity Program ✓ Diversity Census ✓ Diversity training Sustainable Bonds: Largest-ever issue in the Brazilian power industry Placed by Cemig D in June 2023 Cemig’s R$ 2 billion in investments to modernize network: social impacts 3-Phas
Slide 8: Analysis of Results
ANALYSIS OF RESULTS Classificação: Público
Slide 9: Highlights of 2Q23
HIGHLIGHTS OF 2Q23 Cemig D Cemig H Operational efficiency Another quarter of • PMSO, Ebitda and Losses compliant with limits consistent results established by regulator • Market grew by 0.7% YoY • Robust Ebitda: R$ 1,878 million • Positive results from May 2023 Tariff Review in 2Q23 • Ebitda of Trad
Slide 10: Cemig Consolidated 2Q23 Results
CEMIG CONSOLIDATED 2Q23 RESULTS Ebitda Net profit +3.8% +430.5% +2,390.0% +6.6% 1,878 1,810 1,878 1,245 1,214 1,139 354 10 50 2Q22 2Q23 2Q22 2Q23 2Q22 2Q23 2Q22 2Q23 IFRS IFRS Recurring Recurring IFRS IFRS Recurring Recurring EBITDA Net profit ADJUSTMENTS 2Q22 2Q23 2Q22 2Q23 IFRS (million) 354 1,878
Slide 11: 2Q23 Consolidated Operational Costs and Expenses
2Q23 CONSOLIDATED OPERATIONAL COSTS AND EXPENSES Operating costs and expenses PMSO costs – from 2Q22 (R$ million) +9.0% -13,8% 8,484 48 1,146 1,051 7,313 PMSO 1,146 28 1,051 6 49 62 Others: Energy 7,433 1 2 purchases, 6,167 provisions and other costs 2Q22 2Q23 2Q22 Post Personnel Profit Materials Ou
Slide 12: 1H23 Consolidated Cash Flow
1H23 CONSOLIDATED CASH FLOW Consistent cash generation, contributing to execution of the investment program and the Company’s liquidity 4,001 1,257 143 1,388 780 912 2,038 3,319 3,864 Cash + Operational CVA Restitution of Interest on Loans Settlement of Investment Cash + Securities cash PIS, Pasep a
Slide 13: Debt Profile – Consolidated
DEBT PROFILE – CONSOLIDATED Debt and leverage remain low – ensuring sustainability Maturities timetable Net debt (Debt – Cash and securities): R$7.9 billion Ratings Breakdown by type Average tenor: 2.9 years Total net debt (Net debt – Hedge): R$7.7 billion 2023 3,864 4,313 AA+ 32% 31% Dollar 2,593 2
Slide 14: Cemig D – 2Q23 Results
CEMIG D – 2Q23 RESULTS Ebitda Net profit 14.3% +10.9% 688 602 688 365 329 365 -900 -913 2Q22 2Q23 2Q22 2Q23 2Q22 2Q23 2Q22 2Q23 IFRS IFRS Recurring Recurring IFRS IFRS Recurring Recurring Cemig D’s 5th 5-year Tariff Review granted EBITDA Net profit average increase of 13.3%, in effect since May ADJU
Slide 15: Electricity Market of Cemig D
ELECTRICITY MARKET OF CEMIG D Market grew YoY in 2Q23, despite continuous growth in Distributed Generation Injected Energy - DG Cemig D: billed market + transmission for clients (GWh) 78 +56.6% +0.7% 74 Distribuidoras 873 +5.8% 868 11,792 11,880 851 806 Other 1,101 1,596 1,565 +0.5% Rural -5.2% 703
Slide 16: Cemig D: Energy Losses Within Regulatory Limit
CEMIG D: ENERGY LOSSES WITHIN REGULATORY LIMIT TOTAL LOSSES COMPLETED INITIATIVES 12-month mobile window 1H23 7,000 6,613 15 6,549 6,371 6,500 6,135 6,172 6,208 6,069 14 12.71 210,000 inspections made – 55.3% of total 12.57 6,000 12.49 13 5,500 planned for 2023 11.28 11.22 12 5,000 11.23 11.16 11.51
Slide 17: Cemig D – Combating Default
CEMIG D – COMBATING DEFAULT COLLECTION VIA PAYMENT ONLINE (%) PIX, credit card, apps, automatic direct debit, • Payment-incentive campaigns and new payment channels terminals, other media resulted in major benefits in the collection mix: Cost of collection 59.62 in 1H22 was 8.4% lower YoY (saving =
Slide 18: Cemig D: Increased Operational Efficiency
CEMIG D: INCREASED OPERATIONAL EFFICIENCY Opex and Ebitda within regulatory parameters OPEX EBITDA (R$ million) (R$ million) 2,060 562 135 117 24 1,925 57 155 1,463 1,385 179 Regulatory PMSO Post - Fines Provisions Default Realized Regulatory OPEX Other Realized Opex retirement Offsets provision Ope
Slide 19: Cemig GT – 2Q23 Results
CEMIG GT – 2Q23 RESULTS Ebitda Net profit -27.1% -2.2% -21.8% -22.2% +14.3% 959 938 -4.9% 631 552 155 203 309 102 863 804 804 590 629 629 629 459 450 428 450 428 2Q22 2Q23 2Q22 2Q23 2Q22 2Q23 IFRS IFRS Recurring Recurring Transf. Transf. 2Q22 2Q23 2Q22 2Q23 2Q22 2Q23 Cemig H Cemig H IFRS IFRS Recurr
Slide 20: Cemig GT Highlights
CEMIG GT HIGHLIGHTS ➢ RAP (Permitted Transmission Revenue) R$ 1.143 billion* for 2023–24 A 23.5% increase – incorporating the effects of – inflation in the period – strengthening and improvement of the network, and – reprofiling of Cemig GT’s National Grid contribution * Amount refers to Cemig GT, I
Slide 21: Gasmig – Growing Profit in 2Q23
GASMIG – GROWING PROFIT IN 2Q23 Segments served EBITDA NET PROFIT +59.4% 90.8% 1.4% 2.4% 255 +96.4% Industrial Residential Commercial 160 163 83 1.4% 4.0% Other Natural gas 2Q22 2Q23 2Q22 2Q23 vehicle Natural gas volume | (sold + distributed) m3 2Q23 profit reflects higher consumption and 1,387 +35.
Slide 22: Gasmig – Centro-Oeste Growing Profit in 2Q23
GASMIG – CENTRO-OESTE GROWING PROFIT IN 2Q23 Planned capex R$ 780 million ✓ R$ 73 million invested by June 2023 ✓ R$ 367 million planned by end of 2023 ✓ R$ 220 million already contracted 300 km of network to be built 8 municipalities served: Betim, Sarzedo, São Joaquim de Bicas, Igarapé, Juatuba, M
Slide 23: Distributed Generation - DG
DISTRIBUTED GENERATION - DG Manga Mato Number of generation plants Japonvar Janaúba Verde • In operation 19 Porteirinha Mirabela • In construction 51 Bonfinópolis • In development 3 (floating) Brasilândia Montes Claros Installed capacity Lagoa Grande Diamantina • In operation 52 MWp • In constructio
Slide 24: Complying with Commitments Assumed
COMPLYING WITH COMMITMENTS ASSUMED ACHIEVED IN PROGRESS FUTURE CHALLENGES AND • Divestment of non-strategic assets OPPORTUNITIES • Opex below regulatory limit • Investment in renewable floating (annual basis) • Digital transformation and Generation sources - DG investment in technology • Non-technic
Slide 25: 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
Slide 26: The Minas Three-phase Program 2022-2027
The Minas Three - phase program 2022-2027 Better Reliability and Quality in service to clients in the countryside Conversion of networks from single-phase to three-phase 3~ Interconnections for operational flexibilities and automation of protection systems Transforming subsistence agriculture into a
Slide 27: Mais Energia Program – Substations
Mais Energia’ Program – substations Structural investments: new positioning in the market 136 new substations 2023–2027 cycle In 2023 27 In 2024 30 In 2025 32 In 2026 31 In 2027 16 Investment of R$ 3 billion 27 Results Presentation 2Q23 Classificação: Público
Companhia Energética de Minas Gerais — Q2 2023 Earnings Presentation on 6ix