Companhia Energetica De Minas Gerais Sa · BMFBOVESPA:CMIG3
Companhia Energetica De Minas Gerais Sa — Q2 2022 Earnings Presentation
23 slides from Companhia Energetica De Minas Gerais Sa's earnings presentation, Aug 16, 2022
Slide 1: 2Q22 Results
2Q22 RESULTS Classificação: Público
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: 2Q22 Results: Commitment to efficient financial and operational management
2Q22 RESULTS 3 COMMITMENT TO EFFICIENT FINANCIAL AND OPERATIONAL MANAGEMENT Net profit of R$ 1.1 bn (Adjusted net profit up +62.7% QoQ) ROBUST CASH GENERATION Ebitda of R$ 1.8 bn (Adjusted Ebitda +37.0% QoQ) 2022 VOLUNTARY SEVERANCE PLAN ADOPTED BY 297 EMPLOYEES Total program cost: R$ 49 million PRO
Slide 4: Investment Program – Execution
INVESTMENT PROGRAM – EXECUTION 4 Investment of R$1.196 mn in1H22 Investment planned for 2022 ✓ R$697 mn in 2Q22 R$3,973 mn DISTRIBUTION TRANSMISSION 328 174 Distribution R$990 mn R$132 mn Strengthening and upgrading – with increase in 246 Investments in maintenance and Generation modernization of th
Slide 5: ESG Practices: Alignment and Strengthening
ESG PRACTICES: ALIGNMENT AND STRENGTHENING 5 Board approved Cemig´s An inclusive Human Value, Diversity environment favors and Inclusion Policy better results Cemig joined Climate Ambition movement of the UN Global Compact Commitment to translating ESG values into our actions ✓ Focus our investment
Slide 6: Results
RESULTS Classificação: Público
Slide 7: 2Q22 Results – Main Factors
2Q22 RESULTS – MAIN FACTORS 7 Trading strategy, and 18.4% increase in energy sold (Cemig H e GT) ensure good Cemig H results in 2Q22 • Contracts providing Ebitda of R$155 mn were transferred to Cemig H Improved operational efficiency with renewal of staff • 297 employees accepted the 2022 Voluntary
Slide 8: Cemig H (Holding Company) Results 1H22
CEMIG H (HOLDING COMPANY) RESULTS 1H22 8 Ebitda Net profit -48.8% +25.7% -36.5% +47.3% 4,435 2,369 3,736 1,505 1,594 2,348 2,271 2,973 1H21 IFRS 1H22 IFRS 1H21 1H22 1H21 IFRS 1H22 IFRS 1H21 1H22 Recurring Recurring Recurring Recurring EBITDA NET PROFIT ADJUSTMENTS 1H21 1H22 1H21 1H22 IFRS 4,435 2,27
Slide 9: Cemig H (Holding Company) Results 2Q22
CEMIG H (HOLDING COMPANY) RESULTS 2Q22 9 Ebitda Net profit -86.3% -97.4% +37.0% +62.7% 2,590 1,946 1,139 1,810 354 1,321 700 50 2Q21 IFRS 2Q22 IFRS 2Q21 2Q22 2Q21 IFRS 2Q22 IFRS 2Q21 2Q22 Recurring Recurring Recurring Recurring EBITDA NET PROFIT ADJUSTMENTS 2Q21 2Q22 2Q21 2Q22 IFRS 2,590 354 1,946 5
Slide 10: 2Q22: Consolidated Operational Costs and Expenses
2Q22: CONSOLIDATED OPERATIONAL COSTS AND EXPENSES 10 +37.8% PMSO costs - from 2Q21to 2Q22 8.490 1,051 42 8 49 12 6.159 28 17 919 PMSO +14.3% 1,051 Purchase of 7,439 919 energy and 5,240 other costs 2Q21 Personnel Profit sharing Post-retirement Materials Outsourced Other 2Q22 services 2Q21 2Q22 ✓ Exp
Slide 11: Debt Profile – Consolidated
DEBT PROFILE – CONSOLIDATED 11 Debt and leverage continue to be low – ensuring sustainability of operations and execution of investment program Maturities timetable | Average tenor: 3.2 years Evolution of our Ratings Net debt (Debt – Cash and securities): R$ 7.4 bn Main interest rate 2022 2018 2009
Slide 12: Consolidated Cash Flow
CONSOLIDATED CASH FLOW 12 Robust cash generation ensures the Company’s liquidity 973 1,674 37 968 988 1,156 972 391 3,794 2,903 Cash + Securities Cash generated CVA Tax credits Payments of loans, Dividends & Interest Loans Other Investment activity Cash + Securities 2021 reimbursed to financings and
Slide 13: Results of Cemig D 2Q22
RESULTS OF CEMIG D 2Q22 13 Ebitda NET PROFIT +1.8% -5.3% 591 591 602 348 348 329 -900 -913 2Q21 IFRS 2Q22 IFRS 2Q21 2Q22 2Q21 IFRS 2Q22 IFRS 2Q21 2Q22 Recurring Recurring Recurring Recurring EBITDA NET PROFIT ADJUSTMENTS 2Q21 2Q22 2Q21 2Q22 IFRS 591 -913 348 -900 Provision – Credits of PIS/Pasep/Cof
Slide 14: The Electricity Market – in 2Q22 (Cemig D)
THE ELECTRICITY MARKET – IN 2Q22 (CEMIG D) 14 A 1.34% increase in the volume of sold energy, especially with the recovery of the industrial activity in Cemig D’s concession area Cemig D – Captive clients + Transport (GWh) +1.34% 74 Distributed Generation – 52 Distributors +41.2% 868 11.636 11.792 84
Slide 15: Cemig D: Combating Losses – Ongoing Effort
CEMIG D: COMBATING LOSSES – ONGOING EFFORT 15 Main initiatives Total losses 15 7000 6,613 6,549 ✓ Success index in client inspections, increasing from 6,371 14 27% in 1H21 to 48% in 1H22 6500 6,135 6,189 13 6000 12.49 12.71 12.57 5500 ✓ 230,000 obsolete meters replaced 12 11.28 11.25 5000 ✓ 150,000
Slide 16: Combating Default – Cemig D
COMBATING DEFAULT – CEMIG D 16 Receivables Collection Index| (‘ARFA’) (%) Our Collection/Billing index (‘ARFA’) reached a record of 99.59% in May Collection/Billing 2022, resulting from issuing receipts via digital channels. 98.66 98.87 99.33 96.67 96.78 Change in the collection mix reduced costs by
Slide 17: The Annual Tariff Adjustment and Application of Law 14.385/22
The annual tariff adjustment – and application of Law 14.385/22 17 The annual tariff adjustment – approved by Council of Aneel on June 22, 2022, will be in effect until May 27, 2023. ✓ Average increase (across all consumer types)of 8.80% ▪ For high-voltage consumers: average14.31% ▪ For low-voltage
Slide 18: Cemig D – Debentures Issue
CEMIG D – DEBENTURES ISSUE 18 Successful issuance shows the market’s confidence in Cemig D In June 2022 Cemig D concluded its 8th issue of non-convertible debentures, maturing at 5 and 7 years, in a restricted offering in compliance with CVM regulations: Annual financial Issue Principal maturity Amo
Slide 19: Regulatory Opex, Regulatory Ebitda – 2Q22
REGULATORY OPEX, REGULATORY EBITDA – 2Q22 19 Monitoring of manageable cost OPEX - R$ mn EBITDA - R$ mn 1,406 37 141 40 81 412 56 88 103 205 3,172 1,689 1,729 1,272 1,292 1.660 -259 Regulatory Opex PMSO Post-retirement Fines/offsets Provisions Default provision Opex Adjusted PIS/COFINS provision Term
Slide 20: Results of Cemig GT 2Q22
RESULTS OF CEMIG GT 2Q22 20 Ebitda Net profit -49.2% -59.1% +87.1% +127.3% 1,699 1,444 863 804 590 198 430 450 2Q21 IFRS 2Q22 IFRS 2Q21 2Q22 2Q21 IFRS 2Q22 IFRS 2Q21 2Q22 Recurring Recurring Recurring Recurring EBITDA Net profit ADJUSTMENTS 2Q21 2Q22 2Q21 2Q22 IFRS 1,699 863 1,444 590 Cemig H Result
Slide 21: Gasmig Continues to Deliver Consistent Results in 2Q2022
21 Gasmig continues to deliver consistent results in 2Q2022 Segments served| % of Volume in m3 Ebitda Net profit 84% 1% 2% +0.6% -10.7% Industrial Residential Commercial 159 160 8% 4% 1% 93 83 Thermal Vehicle Other 2Q21 2Q22 2Q21 2Q22 plants natural gas Natural gas volume sold| Million m3 1,387 1,10
Slide 22: Fulfilling the Commitments Made
FULFILLING THE COMMITMENTS MADE 22 ✓ 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 ✓ Strengthen Cemig D’s investment program ✓ Divestments o
Slide 23: Investors Relations
Investors Relations Tel +55 31 3506-5024 ri@cemig.com.br http:/ri.cemig.com.br Classificação: Público
Companhia Energética de Minas Gerais — Q2 2022 Earnings Presentation on 6ix