Companhia Energetica De Minas Gerais Sa · BMFBOVESPA:CMIG3

Companhia Energetica De Minas Gerais Sa — Q1 2020 Earnings Presentation

24 slides from Companhia Energetica De Minas Gerais Sa's earnings presentation, May 18, 2020

  1. Slide 1: Results for 1Q20

    R esults for ~ 1Q20 _ CEMIG

  2. 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 the events or results will take place as referred to in these expectations.

  3. Slide 3: Cemig in the fight against Covid-19

    Cemig in the fight against Covid-19 Cemig’s Crisis Management Committee – strategic aims Ensure Energy is essential for the population. service continuity Plans and action to maintain adequate supply. Employees’ Some of our employees are in the front line, others can work remotely. health and safety

  4. Slide 4: Covid-19 – Ensuring service continuity

    Covid-19 – Ensuring service continuity Programmed disconnections reduced. Live-wire work teams increased to reduce programmed outages. Preserve and prioritize supply to essential services and activities. Service priority: medical/hospital units, and locations that treat the public. 2020-22 distribut

  5. Slide 5: Covid-19 – Employees' health and safety

    Covid-19 – Employees’ health and safety To reduce proximity working: System Operations Center (COS) divided into 2 locations; Distribution Operations Center (COD) divided into 5 locations. Employees’ temperatures measured by laser thermometer. Multi-scenario operational contingency plan (benchmarkin

  6. Slide 6: Covid-19 – Social responsibility

    Covid-19 – Social responsibility R$5 million donated to public hospitals and charities in Minas Gerais. Low-income residential users encouraged to register for tariff exemptions – for 3 months starting April 1, 2020. Commercial, industrial clients can defer consumption of contracted volumes. Special

  7. Slide 7: Covid-19 – Financial sustainability

    Covid-19 – Financial sustainability Cash preservation measures 2020 capex reprogrammed – 13% reduction. Efforts to reduce materials and services contracts.  Approximately R$ 100 million, to date. Dividends: conservative proposal, in line with realized profit.  Interest on Equity: R$ 400mn, in 2 eq

  8. Slide 8: Covid-19 – government measures

    Covid-19 – government measures Measures already in place Legislation: Emergency Law (Medida Provisória) 950/20, on temporary measures for the industry:  Federal funds to pay electricity bills of low-income customers.  Legal framework for financing of distributors. Payments released from Reserve Fu

  9. Slide 9: Covid-19 – Revision of investment program

    Covid-19 – Revision of investment program 9 R$ 266mn of 2020 capex postponed: 13% reduction. Cemig D: Total for 2020–22 preserved. We expect this to result in improved quality of service. Up to March Market segment 2020 Postponed 2020 2020 % Planned Revised Executed Executed Distribution 1,667 168 1

  10. Slide 10: Covid-19 – Effects on Cemig D

    Covid-19 – Effects on Cemig D 10 Total power carried 5,988 Weekly averages (MWaverage) Provision for doubtful Apr. Mar. Change receivables (R$ mn) – 7.9% 2020 2020 R$ 5,456 5,515 5,322 5,319 5,357 5,247 5,253 Year to date 135.1 96.1 39.0 Preliminary April 14/03 21/03 28/03 04/04 11/04 18/04 25/04 02

  11. Slide 11: Covid-19 – Effects on Cemig GT

    11 Covid-19 – Effects on Cemig GT Consumption by Free Clients Weekly averages (MWaverage) 2,428 2,171 – 16.8% 2,103 2,041 2,035 2,052 2,021 2,020 14/03 21/03 28/03 04/04 11/04 18/04 25/04 02/05 Negotiations seeking to preserve the net present value of contracts Seeking to preserve cash in the market

  12. Slide 12: Cemig D – Continuous improvement in quality indicators

    Cemig D – Continuous improvement in quality indicators 12 8.12 11,62 11,32 7.76 11,03 10,73 10,73 7.39 10,44 7.03 7.03 11.57 6.67 11.18 10.42 10.56 2.23 5.37 5.44 2.16 5.13 4.89 1.85 1.89 0.75 0.77 0.65 0.65 3,22 3,00 9.34 9.02 8.57 8.67 4.62 4.67 1,37 1,20 4.48 4.24 0.49 0.27 0.16 0.1 2.73 2.73 1.2

  13. Slide 13: Analysis of 1Q20 Results

    wa _ ANALYSIS OF ~ 1Q20 _ RESULTS _ CEMIG

  14. Slide 14: Main factors in the 1Q20 results

    Main factors in the 1Q20 results 14 Cemig H Cemig GT Light: re-valuation at market Reduction of R$ 609 million. Allocation strategy generated a gain of R $ 434 million in 1Q19 and R $ 20 million in 1Q20 Centroeste: re-valuation at fair value Gain of R$ 52 million.  1.05 in 1Q20, vs. 1.49 in 1Q19 

  15. Slide 15: FX exposure: temporary effects in Company's results

    FX exposure: temporary effects in Company’s results 15 Hedges – contracted for protection of foreign-currency-denominated debt Full swap for interest: set at 142% of CDI rate. Call spread for principal: protection for range US$= R$ 3.45 to R$ 5.00 Effect on financial result Mar. Dec. Item Change 202

  16. Slide 16: Energy market in 1Q20 – GWh

    Energy market in 1Q20 – GWh 16 Cemig D: billed market + transmission 76 74 – 2.0% 924 – 2.6% 902 – 2.4% 11,289 11,063 864 777 – 10.1% 1,688 1,681 – 0.4% 4,760 4,809 +1.0% 4,993 4,844 – 3.0% 6,519 6,245 – 4.2% 2,744 2,785 + 1.5% 1Q19 1Q20 1Q19 1Q20 Residential Industrial Commercial Final consumers To

  17. Slide 17: 1Q20 – Consolidated figures

    1Q20 – Consolidated figures 17 Ebitda Net profit 1Q19–1Q20 – 44.7% 1Q19–1Q20 Adjusted: +31.0% Adjusted: +35.9% -365 -434 +537 587 797 1,461 +644 1,345 432 1,027 -57 808 1Q19 Adjustments 1Q19 Adj 1Q20 Adjustments 1Q20Adj 1Q19 Adjustments 1Q19 Adj 1Q20 Adjustments 1Q20 Adj Ebitda Profit Adjustments Co

  18. Slide 18: 1Q20 – Cemig GT figures

    1Q20 – Cemig GT figures 18 Ebitda Net profit 1Q20/1Q19 -24,2% 1Q20/1Q19 1Q20aj/1Q19aj +38,1% 1Q20aj/1Q19aj +24,8% -20 -434 -365 930 583 705 685 496 +276 272 218 -4 1Q19 Adjustments 1Q19 Adj 1Q20 Adjustments 1Q20Adj 1Q19 Adjustments 1Q19 Adj 1Q20 Adjustments 1Q20Adj Ebitda Profit Adjustments Company

  19. Slide 19: 1Q20 – Cemig D figures

    1Q20 – Cemig D figures 19 Cemig D Cemig D 1Q20/1Q19 -2,2% 1Q20/1Q19 + +4,8% 506 495 188 197 1Q19 1Q20 1Q19 1Q20

  20. Slide 20: Operating costs and expenses – consolidated

    Operating costs and expenses – consolidated 20 + 5.6% Manageable costs – Comparing 1Q19 and 1Q20 4,750 5,018 815 53 -8.2% Manageable 888 40 15 3 4 888 2 Non- 3,862 4,204 manageable 815 1T19 1Q19 Pessoal People PLR Profit Material ST Material Outsourced Outras Other Pós Post- 1T20 1Q20 shares service

  21. Slide 21: Cemig D – Regulatory Opex and Ebitda

    Cemig D – Regulatory Opex and Ebitda 21 Increased receivables provision due to pandemic prevents Cemig from reaching regulatory Opex 184 72 30 71 2 18 16 735 760 R$ 25 million Opex Regulatory PMSO Profit Pension Voluntary Fines, Provisions Doubtful Real Opex shares commitment retirement compensation

  22. Slide 22: Debt profile – consolidated

    Debt profile – consolidated 22 Maturities timetable – Average tenor: 3.9 years Main indexors Net debt (Debt – Cash and securities): R$ 13.3 billion. Total net debt (Net debt – Hedge): R$ 10.3 billion. 2% 8.282 US dollar 23% IPCA 2,441 1,913 1,816 51% CDI 1,190 809 997 24% 756 Other Cash 2020 2021 20

  23. Slide 23: Covenants of the Eurobond

    Covenants of the Eurobond 23 2,019 1Q20 R$ mn GT H GT H Consolidated debt 7,887 14,776 9,419 15,763 Debt contracts with Forluz 253 1,117 248 1,097 Liabilities under any put option 483 483 504 504 Consolidated cash and cash equivalents and consolidated securities – 584 – 1,289 – 857 – 2,441 posted as

  24. Slide 24: Investor Relations

    Investor Relações comRelations Investidores Tel: +55 (31) 3506-5024 ri@cemig.com.br http://ri.cemig.com.br

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