Companhia Energetica De Minas Gerais Sa · BMFBOVESPA:CMIG3
Companhia Energetica De Minas Gerais Sa — Q4 2023 Earnings Presentation
25 slides from Companhia Energetica De Minas Gerais Sa's earnings presentation, Mar 21, 2024
Slide 1: Results: Objectives reached despite challenging scenario
RESULTS 20 Objectives reached despite challenging scenario Transf rmig lives with our energy
Slide 2: Disclaimer
2 Disclaimer Certain statements and estimates in this material may represent The information and opinions herein should not be understood as a expectations about future events or results which are subject to recommendation to potential investors, and no investment decision risks and uncertainties th
Slide 3: Focusing on meeting Guidelines
20 3 Focusing on meeting Guidelines Record investment in 2023: R$ 4.8 billion (R$ 35 bn program for 2024-28): FOCUS ON THE CLIENT, guaranteeing service of excellence Strong cash generation: Adjusted Ebitda R$ 8.1 billion – up 16.6% from 2022 Commitment to sustainable management Adjusted Net profit R
Slide 4: Shareholders Remuneration
4 Shareholders Remuneration Cemig establishes itself as one of highest dividend paying companies Dividends totaling R$ 3,124 million Interest on equity: R$ 2,591 mn Dividend yield Dividends proposed to AGM: R$ 533 mn Proposed capital increase: R$ 3,302 million Stock bonus: 660,411,207 new shares New
Slide 5: Optimizing capital allocation
5 Optimizing capital allocation Firmly executing our strategic planning – better capital allocation and portfolio optimization Sales of assets Santo Antônio Baguari Retiro Baixo 15 Small & Local R$ 795 hydroelectric plant hydroelectric plant hydroelectric plant Hydro plants million R$ 55 million R$
Slide 6: Benchmark in ESG
6 Benchmark in ESG UN Global Compact Cemig joined the “100% Transparency” “100% Transparency” movement of the UN Global Compact movement – Goals defined against corruption and for increased transparency Legal Energy Program • Regularization of energy supply for more than 13,000 families in 16 commun
Slide 7: Investment program – Execution
7 Investment program – Execution Realized in 2023: R$ 4,829 million Distribution Planned, 2024 Investment in modernization and maintenance of the electricity Investments of R$ 6,216 million R$ 3,338 million system 506 Transmission 372 Distribution Strengthening and enhancement – with 334 R$ 198 mill
Slide 8: Results 4Q23
Transf rmig lives with our energy 8 RESULTS 4Q23
Slide 9: 4Q23 highlights
9 4Q23 highlights CEMIG H:. Excellent consolidated results Adjusted Ebitda: R$ 2,163 million in 4Q23 Interest on Equity: Adjusted Ebitda of Trading R$ 1,322 million declared operation up 32.6% in December 2023 CEMIG D Operational efficiency o Assertive action kept Opex, Ebitda and Energy losses with
Slide 10: Consolidated 2023 results
10 Consolidated 2023 results EBITDA Net profit Result reinforces +23.8% 16.6% +40.9% +15,0% Cemig’s commitment 8,504 8,078 to increase value for 6,869 6,928 5,767 5,359 shareholders 4,660 4,094 2022 2023 2022 2023 2022 2023 2022 2023 IFRS IFRS Recurring Recurring IFRS IFRS Recurring Recurring EBITDA
Slide 11: Cemig – Consolidated 4Q23 results
11 Cemig – Consolidated 4Q23 results EBITDA Net profit +24.5% +34.0% +39.8% +30.5% 2,453 2,163 1,886 1,969 1684 1,658 1,406 1204 4Q22 4Q23 4Q22 4Q23 4Q22 4Q23 4Q22 4Q23 IFRS IFRS recurring recurring IFRS IFRS recurring recurring EBITDA NETPROFIT R$ million 4Q22 4Q23 4Q22 4Q23 IFRS 1,969 2,453 1,406
Slide 12: 4Q23: Consolidated operational costs and expenses
12 4Q23: Consolidated operational costs and expenses Manageable expenses rose less than inflation Operational costs and expenses PMSO costs – 4Q22–4Q23 (R$ mn) Increase of 0.9% –2.0% 8,167 8,003 20 54 10 12 PMSO 4 5 1,285 1,296 Other costs Energy purchases, 6,882 6,707 1,285 1,296 provisions and oth
Slide 13: 2023 – Consolidated cash flow
13 2023 – Consolidated cash flow R$ million Robust cash generation guarantees liquidity 8,348 213 1,909 690 1,823 4,946 3,319 669 780 2,311 90 Cash Cash from CVA PIS/Pasep/ Loans Dividends Investment Sale o f SAAG Other Cash + Securities operations Cofins taxes + Interest activity investments put op
Slide 14: Debt management
14 Debt management Demand for Cemig D’s debenture issue was 2.73X (2024 March) – reflects investor market’s confidence in Cemig management Offered: R$ 2.0 billion - Allocation: First series – demand of 8.2X Second series – demand of 1.4X ▪ R$ 400 million ▪ R$ 1,600 million ▪ Final rate: CDI+0.80% ▪
Slide 15: Consolidated debt profile
15 Consolidated debt profile Debt and leverage continue at lowest levels – ensuring financial sustainability for execution of our investment program. Maturities timetable Ratings Main indexors Net debt (Debt – Cash and securities): R$ 7.5 billion 2023 Total net debt (Net debt – Hedge): R$ 7.1 billio
Slide 16: CEMIG D – 4Q23 results
16 CEMIG D – 4Q23 RESULTS Ebitda Net profit +0.6% +34.8% –13.0% 800 805 805 +26.1% 597 461 401 401 318 4Q22 4Q23 4Q22 4Q23 4Q22 4Q23 4Q22 4Q23 IFRS IFRS Recurring Recurring IFRS IFRS Recurring Recurring Ebitda NET PROFIT Cemig D’s 5th (5-yearly) Tariff Review: R$ million 4Q22 4Q23 4Q22 4Q23 IFRS 800
Slide 17: Cemig D – market
17 Cemig D – market Market grew strongly in 4Q23, in spite of continuous increase in Distributed Generation Cemig D: Billed market + transmission for clients Distributed Generation GWh +5.0% GWh 12,444 74 87 Energy injected 11,850 Distributors +17.6% 924 +4.5% 876 837 766 +61.5 % 1,437 1,737 Other +
Slide 18: Market evolution Cemig D and Distributed Generation
18 Market evolution Cemig D and Distributed Generation Cemig D – market Distributed Generation market +2.4% 44,557 44,951 44,499 46,714 46,562 47,696 Distributed Generation – +55.2% 19,286 19,351 20,259 22,340 22,784 23,836 GWh injected 4,720 3,041 1,921 25,271 25,600 24,240 24,374 23,778 23,860 1,0
Slide 19: CEMIG D: Energy losses within regulatory limit
19 CEMIG D: Energy losses within regulatory limit Total losses, 2023 7,000 6,613 6,549 15 6,371 6,239 6,500 6,135 6,172 14 6,000 Total losses, GWh 5,500 12.49 12.71 12.57 13 Robust investments, and 5,000 11.28 12 actions of our Energy Recovery Actual losses, % 11.23 10.84 4,500 11.51 11 Plan, have h
Slide 20: Combat of default in Cemig D
20 Combat of default in Cemig D Collection – digital channels (%) Payment-incentive campaigns, with new PIX, credit card, apps, automatic debit, terminals, other media payment channels, have created major benefit in the collection mix: Costs of 65.19 50.28 56.50 collection in 2023 were: 34.96 7.6% l
Slide 21: CEMIG D: Greater operational efficiency
21 CEMIG D: Greater operational efficiency Challenges of 2023 – Opex and Ebitda were kept within regulatory limits OPEX (R$ mn) EBITDA (R$ mn) 0.7% 3.8% 4,154 1,015 256 77 4,127 255 27 86 3,104 400 2,991 Regulatory PMSO Post- Fines, Provisions Defualt Opex, Regulatory OPEX Other Realized Ebitda Opex
Slide 22: Cemig GT – 4Q23 results
22 Cemig GT – 4Q23 results EBITDA Net profit +67.6% +37.7% 1,173 +96.3% +58.9% 844 884 700 642 642 430 404 4Q22 4Q23 4Q22 4Q23 4Q22 4Q23 4Q22 4Q23 IFRS IFRS Recurring Recurring IFRS IFRS Recurring Recurring Ebitda NET PROFIT Transfer of sales contracts to Cemig H R$ million 4Q22 4Q23 4Q22 4Q23 • In
Slide 23: Gasmig – Expansion Phase
23 – Expansion Phase Consumption by category Ebitda Net profit R$ million R$ million +21.9% +24.7% 948 91.5% 1.3% 2.4% –25.3% 778 Industrial Residential Commercial -28.0% 596 478 273 3.5% 1.3% 204 193 139 Vehicle Other natural gas 4Q22 4Q23 2022 2023 4Q22 4Q23 2022 2023 Natural gas volume – million
Slide 24: Meeting our established commitments
24 Meeting our established commitments Achieved In progress Future challenges and opportunities Opex below regulatory limit Divestment of minority holdings Investment in (annual basis) floating Digital transformation and Distributed Generation Non-technical losses investment in technology solar plan
Slide 25: Investor Relations
25 Transf rmig lives with our energy Investor Relations +55 (31) 3506-5024 ri@cemig.com.br www.ri.cemig.com.br IBRX100 B3 IEE B3 ISEB3 IEE B3 ICO2 B3 ISE B3 ICO2 B3 4Q23 RESULTS
Companhia Energética de Minas Gerais — Q4 2023 Earnings Presentation on 6ix