Companhia Energetica De Minas Gerais Sa · BMFBOVESPA:CMIG3
Companhia Energetica De Minas Gerais Sa — Q3 2023 Earnings Presentation
23 slides from Companhia Energetica De Minas Gerais Sa's earnings presentation, Nov 10, 2023
Slide 1: Earnings: Our Energy Transforms
EARNINGS OUR ENERGY TRANSF RMS FOCUS ON OPERATIONAL EFFICIENCY AND MAXIMIZING RESULTS Classificação: Direcionado
Slide 2: Disclaimer
DISCLAIMER Certain statements and estimates in this material may represent The information and opinions herein should not be understood as expectations about future events or results which are subject to a recommendation to potential investors, and no investment risks and uncertainties that may be k
Slide 3: 3Q23: One More Quarter of Consistent Results
3Q23 ONE MORE QUARTER OF CONSISTENT RESULTS ‘ Successful auction of Small Hydro Plants R$100 million earned for disposal of 15 generation plants Ebitda R$2.0 billion (Adjusted Ebitda up 28.0% YoY) Consistent growth in operational cash flow Net profit R$ 1.2 bn – Adjusted net profit up 20.0% YoY Fina
Slide 4: Successful Sale of Assets – Cemig GT
SUCCESSFUL SALE OF ASSETS – CEMIG GT ➢ Optimizing the portfolio and discipline in capital allocation Public auction: Cemig sold 15 Small Hydro Plants (SHPPs) and small generating stations (CGHs) • Winning bid R$100.5 million – premium 108.6% – added R$45.8 million to 3Q profit. • 15 hydro plants, wi
Slide 5: Benchmark in ESG
BENCHMARK IN ESG Brazil’s first AGRIVOLTAIC project 23 consecutive years in the index. The only company in Cemig, Epamig and CPQD* form partnership the Americas from the energy sector • Developing production of solar energy and food at same Leader in the Brazilian location energy sector: AA • Expan
Slide 6: Investment Program Execution
INVESTMENT PROGRAM EXECUTION Cemig invested R$3.332 billion in 9M23 (61.1% of its complete investment program) R$1,623 million invested in 3Q23 Investment planned for 2023 Distribution R$2,346 million R$5,451 million Investments in maintenance and modernization of the electricity system 648 Distribu
Slide 7: Generation Expansion – 100% Renewable Projects
GENERATION EXPANSION – 100% RENEWABLE PROJECTS UFV Boa Esperança - 100 MWp • City: Montes Claros (MG state) Commitment to sustainable management (Advogado Eduardo Soares) • Planned capex: R$ 500 million Works in full swing • City: Três Marias (MG state) 80% of works completed UFV Três Marias Jusante
Slide 8: Analysis of Results 3Q
ANALYSIS OF RESULTS 3Q 23 Classificação: Direcionado
Slide 9: Highlights of 3Q23
HIGHLIGHTS OF 3Q23 Cemig D Cemig H Operational efficiency Excellent consolidated • Continuous efforts to comply with regulatory limits for: results LOSSES, OPEX and EBITDA • Market expanded 1% in spite of migration to DG • Ebitda: R$ 1,964 million in 3Q23 • Tariff Review implemented in May ‘23 had f
Slide 10: Cemig Consolidated 3Q23 Results
CEMIG CONSOLIDATED 3Q23 RESULTS Ebitda Net profit +11.7% +28.0% +4.6% +20.0% 2,010 1,965 1,799 1,237 1,535 1,182 1,233 1,028 3Q22 3Q23 3Q22 3Q23 3Q22 3Q23 3Q22 3Q23 IFRS IFRS Recurring Recurring IFRS IFRS Recurring Recurring EBITDA NET PROFIT ADJUSTMENTS R$'000 3Q22 3Q23 3Q22 3Q23 Result underlines
Slide 11: 3Q23 Consolidated Operational Costs and Expenses
3Q23 CONSOLIDATED OPERATIONAL COSTS AND EXPENSES Operating costs and expenses PMSO* costs up 11.1% (R$ million) from 3Q22 to 3Q23 -2.2% 17 1,122 7,977 16 7,803 11 PMSO 57 Others: 1,010 Energy 1,122 19 6 purchases, 1,010 5 7 provisions and other costs 6,967 6,681 3Q22 3Q23 3Q22 Post Personnel Profit
Slide 12: 9M23 Consolidated Cash Flow
9M23 CONSOLIDATED CASH FLOW Priorities: Execution of investment program, maintaining liquidity 6,336 63 1,569 1,216 780 951 3,466 3,319 4,168 Cash + Operational CVA Restitution of Interest on Loans Settlement of Investment Cash + Securities 2022 cash generation PIS, Pasep and Equity obtained/paid SA
Slide 13: Debt Profile – Consolidated
DEBT PROFILE – CONSOLIDATED Debt and leverage remain low – ensuring financial sustainability to execute our investment program Maturities timetable Net debt (Debt – Cash and securities): R$7.9 billion Ratings Breakdown by type Average tenor: 2.6 years Total net debt (Net debt – Hedge): R$7.6 billion
Slide 14: Cemig D – 3Q23 Results
CEMIG D – 3Q23 RESULTS Ebitda Net profit -2.7% +6.9% -6.1% +4.4% 859 836 836 782 507 476 476 456 3Q22 3Q23 3Q22 3Q23 3Q22 3Q23 3Q22 3Q23 IFRS IFRS Recurring Recurring IFRS IFRS Recurring Recurring Cemig D - 5th Tariff Review granted average EBITDA NET PROFIT increase of 13.3%, in effect starting May
Slide 15: Cemig D - Electricity Market
CEMIG D - ELECTRICITY MARKET Market growth in 3Q23, despite continuous increase of Distributed Generation Cemig D: billed market + transmission for clients (GWh) Injected Energy - DG +1.0% 90 89 +53.6% Discos -1.1% 855 851 11,734 11,847 933 879 1,501 Other -0.5% 1,192 1,484 Rural -5.8% 5,792 +4.2% 6
Slide 16: Cemig D's Market and Distributed Generation
CEMIG D’S MARKET AND DISTRIBUTED GENERATION Cemig D - market Distributed Generation market +1,6% Injected energy DG – GWh +57.0% 44,557 44,951 44,499 46,714 46,562 34,687 35,252 3,303 19,286 19,351 20,259 22,340 22,784 2,998 16,980 17,768 1,921 2,104 25,271 25,600 24,240 24,374 23,778 17,707 1,090 1
Slide 17: Cemig D: Energy Losses Within Regulatory Limit
CEMIG D: ENERGY LOSSES WITHIN REGULATORY LIMIT TOTAL LOSSES COMPLETED INITIATIVES 12-month mobile window 9M23 7,000 6,613 15 6,549 6,371 6,500 6,135 6,172 14 5,989 288,000 inspections made - 76% of total planned 6,000 12.49 12.71 12.57 13 for 2023 5,500 11.28 12 5,000 11.23 11.00 11.51 11.43 11 4,50
Slide 18: Cemig D – Combating Default
CEMIG D – COMBATING DEFAULT • Payment incentive campaigns with new payment COLLECTIONS VIA ONLINE PAYMENTS channels: (%) PIX, credit cards, apps, automatic direct debit, terminals, and other channels • Significant increase in means-of-payment mix 56.50 54.72 62.70 • Cost of collection 6.8% lower YoY
Slide 19: Cemig D: Increased Operational Efficiency
CEMIG D: INCREASED OPERATIONAL EFFICIENCY Opex and Ebitda within regulatory parameters – 9M23 OPEX EBITDA (R$ million) (R$ million) 3,049 811 2,906 189 5 144 192 19 292 2,299 2,136 Regulatory PMSO Post- Fines Provisions Default Realized Regulatory Ebitda OPEX Other Realized Ebitda Opex retirement Of
Slide 20: Cemig GT – 3Q23 Results
CEMIG GT – 3Q23 RESULTS Ebitda Net profit +57.9% +112.4% 138 883 +95.2% +201.9% 577 91 791 745 501 335 490 486 251 3Q22 3Q23 3Q22 3Q23 3Q22 3Q23 161 IFRS IFRS Recurring Recurring Transf. Transf. 3Q22 3Q23 3Q22 3Q23 3Q22 3Q23 Cemig H Cemig H IFRS IFRS Recurring Recurring Transf. Transf. Cemig H Cemig
Slide 21: Gasmig – Growing Profit in 3Q23
GASMIG – GROWING PROFIT IN 3Q23 Segments served EBITDA NET PROFIT +42.6% 91.4% 1.4% 2.4% 231 +24.1% Residential Commercial 162 Industrial 139 112 1.2% 3.6% Other Natural gas 3Q22 3Q23 3Q22 3Q23 vehicle Natural gas volume | (sold + distributed) Higher net profit reflects: million m3 (i) higher volume
Slide 22: Complying with Commitments
COMPLYING WITH COMMITMENTS ACHIEVED IN PROGRESS FUTURE CHALLENGES AND • Divestment of assets with minority OPPORTUNITIES • OPEX below regulatory limit stake (annual basis) • Investment in renewable floating Generation sources - DG • Digital transformation and • Energy loss within the Regulatory inve
Slide 23: Investor Relations
INVESTOR RELATIONS +55 31 3506 5024 ri@cemig.com.br www.ri.cemig.com.br IBRX100 B3 IEE B3 ISE B3 ICO2 B3 Apresentação de Resultados 2T23 Classificação: Direcionado
Companhia Energética de Minas Gerais — Q3 2023 Earnings Presentation on 6ix