United States
Securities and
exchange commission
washington, d.c. 20549
FORM 6-K
report of foreign
private issuer
pursuant to rule 13a-16 or 15d-16 of
the securities exchange act of 1934
For the month of December 2023
Commission File Number 1-15224
Energy Company of Minas Gerais
(Translation of Registrant’s Name into English)
Avenida Barbacena, 1200
30190-131 Belo Horizonte, Minas Gerais, Brazil
(Address of Principal Executive Offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.
Form 20-F a
Form 40-F ___
Index
Item Description
of Items
Forward-Looking Statements
This report contains statements about expected future events and financial
results that are forward-looking and subject to risks and uncertainties. Actual results could differ materially from those predicted in
such forward-looking statements. Factors which may cause actual results to differ materially from those discussed herein include those
risk factors set forth in our most recent Annual Report on Form 20-F filed with the Securities and Exchange Commission. CEMIG undertakes
no obligation to revise these forward-looking statements to reflect events or circumstances after the date hereof, and claims the protection
of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.
SIGNATURES
Pursuant to the requirements of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
COMPANHIA ENERGÉTICA DE MINAS GERAIS – CEMIG
By: /s/ Leonardo George de Magalhães .
Name:
Leonardo George de Magalhães
Title: Chief Finance and Investor Relations
Officer
Date: December 1, 2023
| 1. | Notice to the Market dated September 13, 2023 – CEMIG GT, HORIZONTES, and MANG execute a Purchase and Sale Agreement of Assets
of 15 SHPs / HGPs |
COMPANHIA ENERGÉTICA DE MINAS GERAIS - CEMIG
PUBLICLY HELD COMPANY
Corporate Taxpayer’s ID (CNPJ): 17.155.730/0001-64
Company Registry (NIRE): 31300040127
CEMIG GERAÇÃO E TRANSMISSÃO S.A.
PUBLICLY HELD COMPANY
Corporate Taxpayer’s ID (CNPJ): 06.981.176/0001-58
Company Registry (NIRE): 31300020550
NOTICE TO THE MARKET
CEMIG GT, HORIZONTES, and MANG execute a Purchase
and Sale Agreement of Assets of 15 SHPs / HGPs
COMPANHIA ENERGÉTICA DE MINAS GERAIS –
CEMIG (“CEMIG”), a publicly held company with shares traded on the stock exchanges of São Paulo, New York, and
Madrid, and CEMIG GERAÇÃO E TRANSMISSÃO S.A. (“CEMIG GT”), a publicly held company and a wholly-owned
subsidiary of CEMIG, hereby inform the Brazilian Securities and Exchange Commission (CVM), B3 S.A. – Brasil, Bolsa, Balcão
(“B3”), and the market in general that, further to the Notice to the Market of August 10, 2023, CEMIG GT and its wholly-owned
subsidiary HORIZONTES ENERGIA S.A. (“HORIZONTES”) executed, today, a Purchase and Sale Agreement of Assets (“PSA”)
aiming at the sale of 15 water generation SHPs / HGPs, of which 12 plants from CEMIG GT and 3 from HORIZONTES, to MANG PARTICIPAÇÕES
E AGROPECUÁRIA LTDA (“MANG”), the winner of bidding process 500-Y17124, for R$100.5 million.
The closing of the transaction is subject to compliance
with the usual conditions precedent defined in the PSA, which include obtaining the authorizations from ANEEL and the Brazilian antitrust
authority (CADE).
The aforementioned sale aims to comply with the guidelines
of CEMIG’s Strategic Planning that recommends optimizing the portfolio and capital allocation.
CEMIG and CEMIG GT reaffirm their commitment to keeping
shareholders, the market in general, and other stakeholders duly and timely informed about this matter, under the rules issued by the
CVM and the legislation in force.
Belo Horizonte, September 13, 2023.
Leonardo George de Magalhães
Chief Finance and Investor Relations Officer
| 2. | Notice to Shareholders dated September 20, 2023 – Dividends/Interest on Equity |
COMPANHIA ENERGÉTICA DE MINAS GERAIS - CEMIG
PUBLICLY-HELD COMPANY
Corporate Taxpayer’s ID (CNPJ): 17.155.730/0001-64
Company Registry (NIRE): 31300040127
NOTICE TO SHAREHOLDERS
We hereby inform our shareholders that the Executive Board
resolved on the declaration of Interest on Equity - IoE. Detailed information about the payment is as follows:
| 1. | Gross value: R$417,974,000.00
(four hundred, seventeen million, nine hundred and seventy-four thousand reais) |
| 2. | Gross value per share: R$
0.18994289564 per share, to be paid with the mandatory minimum dividend referring to 2023, with a 15% withholding income tax, except for
shareholders exempt from said withholding, under the law in force; |
| 3. | Date “with rights”:
shareholders of record on September 25, 2023 that hold common and preferred shares will be entitled to the payment; |
| 4. | Date “ex-rights”:
09-26-2023; |
| 5. | Payment date: 2 (two) equal
installments, the first of which to be paid by June 30, 2024, and the second by December 30, 2024. |
Shareholders whose shares are not held in custody at CBLC
(Companhia Brasileira de Liquidação e Custódia) and whose registration data is outdated are advised to go to a branch
of Banco Itaú Unibanco S.A. (the institution managing CEMIG’s Registered Share System) bearing their personal documents for
the due update.
Belo Horizonte, September 20, 2023.
Leonardo George de Magalhães
Chief Financial and Investor Relations Officer
| 3. | Material Fact dated October 7, 2023 – Conclusion of the sale of the equity interest held in Baguari Energia |
COMPANHIA ENERGÉTICA DE MINAS GERAIS - CEMIG
PUBLICLY-HELD
COMPANY
Corporate Taxpayer’s ID (CNPJ): 17.155.730/0001-64
Company Registry (NIRE): 31300040127
CEMIG GERAÇÃO E TRANSMISSÃO S.A.
PUBLICLY HELD COMPANY
Corporate Taxpayer’s ID (CNPJ): 06.981.176/0001-58
Company Registry (NIRE): 31300020550
MATERIAL FACT
Conclusion of the sale of the equity interest
held in Baguari Energia
COMPANHIA ENERGÉTICA DE MINAS GERAIS –
CEMIG (“CEMIG or Company”), a publicly held company with shares traded on the stock exchanges of São Paulo, New
York, and Madrid, according to CVM Resolution 44/2021, of August 23, 2021, hereby informs to the Brazilian Securities and Exchange Commission
(CVM), B3 S.A. – Brasil, Bolsa, Balcão (“B3”) and the market in general that, further to the Material Fact disclosed
on April 14, 2023, that CEMIG GERAÇÃO E TRANSMISSÃO S.A. (“CEMIG GT”), a wholly-owned subsidiary
of Cemig, concluded, on October 06, 2023, the sale to Furnas Centrais Elétricas S.A. (“Furnas”) of all of its indirect
equity interest (34%) held in Consórcio Baguari, accounting for 69.39% of the share capital of Baguari Energia S.A. (“Baguari
Energia”).
Baguari Energia holds an interest of 49% in Consórcio
Baguari, which operates the Baguari Hydroelectric Power Plant, located in Minas Gerais, which has an installed capacity of 140 MW and
81.9 MW of physical guarantee.
The transaction totaled R$393.0 million, adjusted for
100% of the CDI from December 31, 2022 to the payment made on October 06, 2023. Dividends of R$11.6 million received on October 03, 2023,
were deducted from this amount, resulting in the receipt of the closing amount of R$421.2 million.
The sale is in line with the Company’s Strategic
Planning, which provides for the divestment of minority interests of Grupo Cemig.
Cemig reaffirms the commitment to keeping shareholders,
the market in general, and other stakeholders duly and timely informed about the developments of the sale, according to the applicable
regulation, and in compliance with the restrictions outlined in CVM rules and other applicable laws.
Belo Horizonte, October 07, 2023.
Leonardo George de Magalhães
Chief Financial and Investor Relations Officer
| 4. | Earnings Release - 3Q2023 |
CONTENTS
3Q23 HIGHLIGHTS |
2 |
CONSOLIDATED RESULTS – THIRD QUARTER 2023 |
5 |
Profit and loss accounts |
6 |
Results by business segment |
7 |
CONSOLIDATED ELECTRICITY MARKET |
8 |
Cemig’s consolidated electricity market |
8 |
PERFORMANCE BY COMPANY |
8 |
Cemig D |
9 |
Billed electricity market |
9 |
Sources and uses of electricity – MWh |
10 |
Client base |
10 |
Performance by sector |
10 |
Annual Tariff Adjustment and Periodic Tariff Review |
11 |
Quality indicators – DEC and FEC |
12 |
Combating default |
12 |
Energy losses |
12 |
Cemig GT and the Cemig Holding Company (‘Cemig H’) |
14 |
Electricity market |
14 |
Gasmig |
15 |
Financial results |
16 |
Consolidated operational revenue |
16 |
Operational costs and expenses |
18 |
CONSOLIDATED EBITDA (IFRS and Adjusted) |
22 |
Ebitda of Cemig D |
23 |
Cemig GT – Ebitda |
24 |
Finance income and expenses |
25 |
Net profit |
26 |
Equity income (gain/loss in non-consolidated investees) |
27 |
Investments |
28 |
Debt |
29 |
Covenants – Eurobonds |
30 |
Cemig’s long-term ratings |
31 |
ESG – Report on performance |
32 |
Performance of our shares |
34 |
Cemig’s generation plants |
36 |
RAP: July 2023–June 2024 cycle |
37 |
Regulatory Transmission revenue – 3Q23 |
37 |
Complementary information |
38 |
Cemig D |
38 |
Cemig GT |
39 |
Cemig, Consolidated |
40 |
Disclaimer |
46 |
COMPANHIA ENERGÉTICA DE MINAS GERAIS S.A. | 4 | |
CONSOLIDATED
RESULTS – THIRD QUARTER 2023
Consolidated results
– 3Q23
|
3Q23 |
3Q22 |
Change, % |
Ebitda by company, IFRS |
|
|
|
(R$ ’000) |
Cemig D (IFRS) |
835,588 |
858,979 |
-2.7% |
Cemig GT (IFRS) |
790,747 |
501,153 |
57.8% |
Gasmig (IFRS) |
231,171 |
162,781 |
42.0% |
Consolidated (IFRS) |
2,011,189 |
1,799,292 |
11.8% |
|
|
|
|
|
|
|
|
|
3Q23 |
3Q22 |
Change, % |
Ebitda by company, Adjusted |
|
|
|
(R$ ’000) |
Cemig D |
835,588 |
781,838 |
6.9% |
Cemig GT |
744,956 |
334,859 |
122.5% |
Consolidated |
1,964,799 |
1,535,064 |
28.0% |
COMPANHIA ENERGÉTICA DE MINAS GERAIS S.A. | 5 | |
Profit and loss accounts
|
3Q23 |
3Q22 |
Change, |
Profit and loss accounts (R$ million) |
|
|
|
NET REVENUE |
9,426,629 |
9,223,311 |
2.2% |
|
|
|
|
Costs |
6,268,746 |
6,631,986 |
-5.5% |
Electricity bought for resale |
3,778,480 |
4,125,675 |
-8.4% |
Gas purchased for resale |
527,146 |
782,453 |
-32.6% |
Charges for use of national grid |
769,491 |
588,444 |
30.8% |
Infrastructure construction costs |
1,193,629 |
1,135,414 |
5.1% |
|
|
|
|
Operating Expenses |
1,534,303 |
1,345,825 |
14.0% |
People |
302,927 |
309,758 |
-2.2% |
Profit shares |
43,603 |
24,518 |
77.8% |
Post-retirement obligations |
168,786 |
163,946 |
3.0% |
Materials |
28,478 |
34,152 |
-16.6% |
Outsourced services |
466,584 |
409,378 |
14.0% |
Depreciation and amortization |
316,693 |
297,607 |
6.4% |
Operating provisions / adjustments |
99,522 |
86,428 |
15.2% |
Impairment |
-45,791 |
37,182 |
-223.2% |
Provisions for client default |
43,160 |
-84,852 |
-150.9% |
Reversal of Impairment of assets |
0 |
-504 |
-100.0% |
Other operational costs and expenses |
110,341 |
68,212 |
61.8% |
|
|
|
|
Net gain on disposal of asset held for sale |
- |
8,641 |
- |
Equity gain (loss) in subsidiaries |
70,916 |
247,544 |
-71.4% |
Net finance income (expenses) |
-214,852 |
-109,461 |
96.3% |
Income before income tax and social contribution tax |
1,479,644 |
1,392,224 |
6.3% |
Corporate income tax |
-242,337 |
-209,871 |
15.5% |
|
|
|
|
NET PROFIT FOR THE PERIOD |
1,237,307 |
1,182,353 |
4.6% |
COMPANHIA ENERGÉTICA DE MINAS GERAIS S.A. | 6 | |
Results by business segment
INFORMATION BY SEGMENT, 3Q23 |
Description |
Electricity |
Gas |
Equity interests (holding co.) |
Inter-segment transactions/ reconciliation |
Total |
Generation |
Transmission |
Trading |
Distribution |
|
|
NET REVENUE |
658,014 |
246,013 |
2,020,456 |
5,994,696 |
927,148 |
9,618 |
-429,316 |
9,426,629 |
|
|
|
|
|
|
|
|
|
COST OF ELECTRICITY AND GAS |
-38,888 |
-66 |
-1,758,373 |
-3,170,308 |
-527,146 |
-709 |
420,373 |
-5,075,117 |
|
|
|
|
|
|
|
|
|
OPERATIONAL COSTS AND EXPENSES |
|
|
|
|
|
|
|
|
People |
-34,155 |
-33,141 |
-6,054 |
-204,185 |
-15,910 |
-9,482 |
0 |
-302,927 |
Employees’ and managers’ profit shares |
-4,206 |
-4,481 |
-858 |
-27,486 |
0 |
-13,882 |
0 |
-43,603 |
Post-retirement obligations |
-18,310 |
-11,316 |
-2,593 |
-112,323 |
0 |
-64,749 |
0 |
-168,786 |
Materials, Outsourced services and Other expenses (revenues) |
-57,827 |
-25,174 |
-4,819 |
-497,449 |
-18,405 |
-10,672 |
8,943 |
-605,403 |
Depreciation and amortization |
-80,826 |
60 |
-4 |
-205,258 |
-23,769 |
-6,896 |
0 |
-316,693 |
Operating provisions / adjustments |
38,026 |
-3,772 |
-1,497 |
-117,183 |
394 |
-12,859 |
0 |
-96,891 |
Infrastructure construction costs |
0 |
-28,542 |
0 |
-1,030,176 |
-134,911 |
0 |
0 |
-1,193,629 |
Total cost of operation |
-157,298 |
-106,366 |
-15,825 |
-2,194,060 |
-192,602 |
-70,724 |
8,943 |
-2,727,932 |
|
|
|
|
|
|
|
|
|
OPERATIONAL COSTS AND EXPENSES |
-196,186 |
-106,432 |
-1,774,198 |
-5,364,368 |
-719,748 |
-71,433 |
429,316 |
-7,803,049 |
|
|
|
|
|
|
|
|
|
Share of profit (loss) in non-consolidated investees |
-626 |
0 |
0 |
0 |
0 |
294,788 |
0 |
70,916 |
Finance income (expenses) |
-28,977 |
-36,236 |
9,523 |
-99,428 |
1,205 |
-60,939 |
0 |
-214,852 |
Income before income tax and social contribution tax |
432,225 |
103,345 |
255,781 |
530,900 |
208,604 |
-51,211 |
0 |
1,479,644 |
Income tax and Social Contribution tax |
-93,507 |
-15,687 |
-78,275 |
-54,973 |
-69,265 |
69,370 |
0 |
-242,337 |
|
|
|
|
|
|
|
|
|
NET PROFIT FOR THE PERIOD |
338,718 |
87,658 |
177,506 |
475,927 |
139,339 |
18,159 |
0 |
1,237,307 |
|
|
|
|
|
|
|
|
|
COMPANHIA ENERGÉTICA DE MINAS GERAIS S.A. | 7 | |
CONSOLIDATED ELECTRICITY MARKET
Cemig’s consolidated
electricity market
In September 2023 the Cemig
Group invoiced 9.17 million clients – an addition of approximately 178,000 clients, or a 2.0% increase in its consumer base since
the end of September 2022. Of this total number of consumers, 9,166,273 are final consumers, and/or represent Cemig’s own consumption;
and 519 are other agents in the Brazilian power sector.
These charts shows the
breakdown of the Cemig Group’s sales to final consumers in 3Q22 and 3Q23:
COMPANHIA ENERGÉTICA DE MINAS GERAIS S.A. | 8 | |
PERFORMANCE BY COMPANY
Cemig D
Billed electricity
market
|
3Q23 |
3Q22 |
Change, % |
Captive clients + Transmission service (MWh) |
|
|
|
Residential |
2,874,159 |
2,706,219 |
6.2% |
Industrial |
5,652,811 |
5,666,290 |
–0.2% |
Captive market |
320,470 |
395,043 |
–18.9% |
Transport of energy |
5,332,341 |
5,271,247 |
1.2% |
Commercial, services and Others |
1,500,991 |
1,484,352 |
1.1% |
Captive market |
1,008,973 |
1,061,850 |
–5.0% |
Transport of energy |
492,018 |
422,502 |
16.5% |
Rural |
879,384 |
933,150 |
–5.8% |
Captive market |
867,641 |
924,189 |
–6.1% |
Transport of energy |
11,743 |
8,961 |
31.0% |
Public services |
844,521 |
848,819 |
–0.5% |
Captive market |
733,652 |
848,199 |
–13.5% |
Transport of energy |
110,869 |
620 |
17,782.1% |
Concession holders |
88,198 |
89,145 |
–1.1% |
Transport of energy |
88,198 |
89,145 |
–1.1% |
Own consumption |
6,783 |
6,761 |
0.3% |
Total |
11,846,847 |
11,734,736 |
1.0% |
Total, captive market |
5,811,678 |
5,942,261 |
–2.2% |
Total, energy transported for Free Clients |
6,035,169 |
5,792,475 |
4.2% |
In
3Q23, energy supplied to captive clients plus energy transported for Free Clients and distributors totaled 11,850 GWh, or 1.0% more
than in 3Q22, mainly reflecting higher consumption by residential consumers (increase of 167.9 GWh or 6.2%), reflecting a 3.2% increase
in the number of clients, and a 2.8% increase in average consumption.
The
growth of 1.0% in total energy distributed comprises: an increase of 4.2% (242.7 GWh) in use of the network by free clients, and a decrease
of 2.2% (130.6 GWh) in consumption by the captive market. The lower consumption by the captive market is mainly due to one major water
and sewerage utility client migrating to the Free Market, and to clients migrating to Distributed Generation.
Energy distributed, by segment
|
COMPANHIA ENERGÉTICA DE MINAS GERAIS S.A. | 9 | |
Sources and
uses of electricity – MWh
|
3Q23 |
3Q22 |
Change, % |
Metered market – MWh |
|
|
|
Transported for distributors |
87,590 |
88,746 |
–1.3% |
Transported for Free Clients |
5,956,175 |
5,718,552 |
4.2% |
Own load + Distributed generation |
8,427,677 |
8,333,677 |
1.1% |
Consumption by captive market |
5,575,300 |
5,852,332 |
–4.7% |
Distributed Generation market |
1,192,135 |
757,705 |
57.3% |
Losses in distribution network |
1,660,242 |
1,723,640 |
–3.7% |
Total volume carried |
14,471,442 |
14,140,974 |
2.3% |
Client base
In September 2023 Cemig
billed 9.16 million consumers, or 2.0% more than in September 2022.
Of this total, 2,884 were
Free Clients using the distribution network of Cemig D.
|
3Q23 |
3Q22 |
Change, % |
NUMBER OF CAPTIVE CLIENTS |
|
|
|
Residential |
7,673,463 |
7,438,683 |
3.2% |
Industrial |
28,653 |
29,398 |
–2.5% |
Commercial, services and Others |
940,938 |
944,794 |
–0.4% |
Rural |
428,177 |
479,882 |
–10.8% |
Public authorities |
69,458 |
70,019 |
–0.8% |
Public lighting |
6,554 |
7,128 |
–8.1% |
Public services |
13,679 |
13,570 |
0.8% |
Own consumption |
759 |
763 |
–0.5% |
Total, captive clients |
9,161,681 |
8,984,237 |
2.0% |
NUMBER OF FREE CLIENTS |
|
|
|
Industrial |
1,179 |
1,055 |
11.8% |
Commercial |
1,656 |
1,408 |
17.6% |
Rural |
18 |
14 |
28.6% |
Concession holder |
8 |
8 |
0.0% |
Other |
23 |
1 |
2,200.0% |
Total, Free Clients |
2,884 |
2,486 |
16.0% |
Total, Captive market + Free Clients |
9,164,565 |
8,986,723 |
2.0% |
Performance by sector
Industrial:
Energy distributed to Industrial clients totaled 0.2% less in 3Q23 than in 3Q22 reflecting the slowdown
in physical industrial production, and comprised 47.7% of Cemig D’s total distribution. The greater part was energy transported
for industrial free clients (45.0%), which was 1.2% higher in volume than in 3Q22. Energy billed to captive clients was 2.7% by volume
of the total distributed, and 18.9% less in total than in 3Q22 – mainly due to migration of clients to the Free Market.
Residential:
Residential consumption was 24.3% of total energy distributed by Cemig D, and 6.2% higher than
in 3Q22. Average monthly consumption per client in the quarter was 2.8% higher than in 3Q22. The number of clients increased by 234,800
(an increase of 3.2%), partly due to migration of consumers from the Rural category in compliance with Aneel Resolution 901/2020.
Commercial
and services: Energy distributed to these consumers
was 12.7% of the total distributed by Cemig D in 3Q23, and by volume 1.1% more than in 3Q22. This increase is the result of a 5.0%
reduction in energy billed to captive clients, and an increase of 16.5% in the volume of energy transported for Free Clients. The higher
figure mainly reflects the strong increase in service activities in 2023, and the increase in retail sales. It is worth noting that the
increase in this user category happened in spite of the migration of consumers to Distributed Generation, which was the major factor
in reduction of the captive market.
COMPANHIA ENERGÉTICA DE MINAS GERAIS S.A. | 10 | |
Rural
clients consumed 7.4% of the total energy distributed in 3Q23, by volume 5.8% less than in 3Q22, as a result
of the number of consumers in the category being 10.8% (51,700) lower – due to reclassification to other categories as required
by Aneel Normative Resolutions 901/2020 and 1000/2020.
Public
services consumed 7.1% of the energy distributed in 3Q23, a total of 0.5% lower by volume than
in 3Q22. Total captive consumption in 3Q23 was 114.5 GWh lower YoY, while the Free Market expanded by 110.2 GWh. This was mainly due to
one major client, a water and sewerage utility, migrating.
Annual Tariff Adjustment
and Periodic Tariff Review
The tariffs of Cemig
D are adjusted in May of each year; and every five years there is the Periodic Tariff Review, also in May. The aim of the Tariff Adjustment
is to pass on changes in non-manageable costs in full to the client, and to provide inflation adjustment for the manageable costs that
are specified in the Tariff Review. Manageable costs are adjusted by the IPCA inflation index, less a deduction factor known as the ‘X
Factor’, under a system using the price-cap regulatory model.
On May 22, 2023 Aneel ratified
the result of the Annual Tariff Adjustment for Cemig D, effective from May 28, 2023 to May 27, 2024, the result of which was an average
increase for consumers of 13.27%. The average effect for low-voltage clients was an increase of 15.55%, and for residential consumers
14.91%. The component of adjustment corresponding to the Company’s management costs (referred to as ‘Portion B’) was
0.66%. The ratified increase in non-manageable costs (‘Portion A’ – comprising purchase of energy, transmission, sector
charges and non-receivables) was 5.09%; the increase in the financial components of the tariff was 7.52%. The effect in the financial
component was mainly due to withdrawal of the component incorporated in the tariff adjustment process of 2022, relating to repayment to
consumers of R$ 2.81 billion in tax credits of PIS, Pasep and Cofins taxes, while the repayment to consumers incorporated in the
2023 Tariff Review was R$ 1.27 billion.
Average effects of the Tariff Adjustment |
High voltage – average |
8.94% |
Low voltage – average |
15.55% |
Average effect |
13.27% |
Comparison of the Tariff Review of 2023 with
the prior review (2018) – main points
The five-year Tariff Review |
2018 |
2023 |
Gross remuneration base – R$ million |
20,490 |
25,587 |
Net Remuneration Base – R$ million |
8,906 |
15,200 |
Average depreciation rate |
3.84% |
3.95% |
WACC (after taxes) |
8.09% |
7.43% |
Remuneration of ‘Special Obligations’ – R$ mn |
149 |
272 |
CAIMI*– R$ million |
333 |
484 |
QRR**, R$ = Annual Depreciation |
787 |
1,007 |
* CAIMI:
(Cobertura Anual de Instalações Móveis e Imóveis) – Annual support for facilities.
** QRR: ‘Regulatory Reintegration Quota’:
Gross value x annual depreciation rate.
See more details at this link:
https://www2.aneel.gov.br/aplicacoes/tarifa/arquivo/NT%2012%202023%20RTP%20Cemig.pdf
COMPANHIA ENERGÉTICA DE MINAS GERAIS S.A. | 11 | |
Quality indicators – DEC and FEC
The DEC indicator (Duração
Equivalente de Interrupções por Consumidor), of average outage time per consumer, was 9.89 hours in the moving window
up to September 2023. Although the target for 2023, 9.59 hours, was more challenging, the Company has addressed this aspect with major
investment in the distribution business to ensure provision of a quality service to its clients, and also to be within the regulatory
limit.
Combating default
Cemig has maintained its
high level of collection actions, achieving greater efficiency in combating default. A good indication of this is that the Receivables
Recovery Index hit a record level of 100.53% in September 2023, reflecting an increase of nearly 20% in the use of collection tools
(email, demand letters, posting on public credit records, formal protest proceedings, disconnections, and text messages).
New payment channels, and
online negotiation, made available in recent quarters (PIX instant payments, automatic debits, payments by card and app, etc.) have contributed
to increasing collection via digital channels to 62.70% of the total collected – compared with 54.72% in 3Q22. In September, 17.66%
of all collection was via the PIX nationwide instant payment system (launched 2021). This change in the collection mix reduced costs by
6.8% – a saving of R$ 3.8 million.
Receivables Collection Index (‘ARFA’) – %
(Collection / Billing) – 12 month moving average |
Energy losses
In the 12-month period energy
losses, at 10.57%, were compliant with the regulatory level (11.00%).
Highlights of our measures
to combat energy losses in 9M23 include: 288,000 inspections (76% of the total planned for 2023), and replacement of 551,000 obsolete
meters (600,000 projected for 2023). As well as these measures, Cemig plans to regularize supply for 49,000 families in low-rental communities
in 2023, using the BT Zero and 'panel bulletproofing’ methods, and replacement of 100,000 standard meters by smart meters.
(So far we currently have 296,000 smart meters installed).
COMPANHIA ENERGÉTICA DE MINAS GERAIS S.A. | 12 | |
COMPANHIA ENERGÉTICA DE MINAS GERAIS S.A. | 13 | |
Cemig GT and the
Cemig Holding Company (‘Cemig H’)
Electricity market
The total volume of electricity
sold by Cemig GT and by the Cemig holding company (‘Cemig H’), excluding sales on the wholesale power exchange
(CCEE) was 0.6% higher than in 3Q22.
Cemig GT itself sold
5,799 GWh (including quota sales) in 3Q23, 22.6% less than in 3Q22. This reduction reflects the transfer of contracts for sales of electricity
to the holding company, which totaled 1,750 GWh more than in 3Q22.
The holding company
posted sales of 4,253 GWh in 3Q23. Migration of contracts from Cemig GT to Cemig H began in 3Q21, and has been gradually increasing since
then:
|
3Q23 |
3Q22 |
Change, % |
Cemig GT – MWh |
Free Clients |
3,298,721 |
4,629,486 |
–28.7% |
Industrial |
2,325,940 |
3,627,964 |
–35.9% |
Commercial |
967,754 |
997,490 |
–3.0% |
Rural |
5,027 |
4,032 |
24.7% |
Free Market – traders and cooperatives |
1,429,907 |
1,774,770 |
–19.4% |
Quota supply |
530,439 |
556,410 |
–4.7% |
Regulated Market |
507,655 |
495,627 |
2.4% |
Regulated Market – Cemig D |
31,999 |
32,833 |
–2.5% |
Total, Cemig GT |
5,798,721 |
7,489,126 |
–22.6% |
Cemig H – MWh |
|
|
|
Free Clients |
2,265,520 |
775606 |
192.1% |
Industrial |
1,970,109 |
710,630 |
177.2% |
Commercial |
283,585 |
61,384 |
362.0% |
Rural |
11,826 |
3,592 |
229.2% |
Free Market – Traders |
1987902 |
1,727,848 |
15.1% |
Total Cemig H |
4,253,422 |
2,503,454 |
69.9% |
Cemig GT + H |
10,052,143 |
9,992,580 |
0.6% |
COMPANHIA ENERGÉTICA DE MINAS GERAIS S.A. | 14 | |
Gasmig
Gasmig is the exclusive
distributor of piped natural gas for the whole of the state of Minas Gerais. It serves industrial, commercial and residential users, and
users of compressed natural gas and vehicle natural gas; and supplies gas as fuel for thermoelectric generation plants.
Its concession expires in
January 2053. Cemig owns 99.57% of Gasmig.
Gasmig’s tariff
review process was completed in April 2022. Highlights:
| § | The WACC used (real, after taxes) was reduced from 10.02%
p.a. to 8.71% p.a. |
| § | The Net Remuneration Base was increased significantly, to
R$ 3.48 billion. |
| § | The regulator recognized the cost of PMSO (Personnel, Materials,
Services and Other expenses) in full. |
Market (’000 m³/day) |
2019 |
2020 |
2021 |
2022 |
9M22 |
9M23 |
9M22– 9M23 |
Residential |
21.28 |
25.52 |
29.69 |
31.21 |
31.67 |
34.56 |
9.1% |
Commercial |
47.7 |
49.14 |
56.24 |
63.34 |
62.59 |
60.3 |
-3.7% |
Industrial (including Free Market) |
2,085.32 |
2,007.45 |
2,398.47 |
2,422.69 |
2,648.59 |
2,596.05 |
-2.0% |
Other |
148.44 |
116.32 |
129.55 |
149.17 |
157.87 |
124.1 |
-21.4% |
Total excluding thermoelectric generation |
2,302.74 |
2,198.43 |
2,613.95 |
2,666.41 |
2,900.72 |
2,815.01 |
-3.0% |
Thermoelectric generation |
793.94 |
385.52 |
1,177.06 |
104.08 |
0 |
0 |
- |
Thermoelectric generation, Free Market (contracted) |
0 |
0 |
0 |
0 |
139.16 |
1,437.31 |
932.8% |
Total |
3,096.69 |
2,583.95 |
3,791.01 |
2,770.50 |
3,039.88 |
4,252.31 |
39.9% |
Total volume, ’000 m³ |
3Q23 |
3Q22 |
Change, % |
Residential |
3,410 |
3,245 |
5.1% |
Commercial |
5,876 |
6,545 |
–10.2% |
Industrial (including Free Market) |
237,819 |
253,068 |
–6.0% |
Other |
11,000 |
13,936 |
–21.1% |
Total excluding thermoelectric generation |
258,105 |
276,794 |
–6.8% |
Thermoelectric generation |
– |
6 |
– |
Thermoelectric generation, Free Market (distribution contracted) |
153,792 |
– |
– |
Total |
411,897 |
276,800 |
48.8% |
In 3Q23 the volume of gas
distributed to the non-thermal market was 6.8% lower than in 3Q22 (including the contracted volume of Industrial Free Market) influenced
by a 6.0% reduction in the industrial segment and 26% reduction in the automotive segment. Considering the volume of the Thermoelectric
generation market (including the volume contracted from the free market), there was an increase of 48.8%.
The number of Gasmig’s
clients increased by 16.0% from 3Q22, to a total of 92,350 consumers in 3Q23. This growth reflects expansion of the residential client
base (addition of 12,700 clients).
COMPANHIA ENERGÉTICA DE MINAS GERAIS S.A. | 15 | |
Financial results
Consolidated operational revenue
|
3Q23 |
3Q22 |
Change, % |
R$ ’000 |
|
|
|
Revenue from supply of electricity |
8,130,020 |
7,105,782 |
14.4% |
Revenue from use of distribution systems (TUSD charge) |
1,125,693 |
985,150 |
14.3% |
CVA and Other financial components in tariff adjustments |
80,237 |
-395,653 |
-120.3% |
Reimbursement, paid to consumers, of credits of PIS, Pasep and Cofins taxes – Amount realized |
311,748 |
706,087 |
-55.8% |
Transmission operation and maintenance revenue |
95,828 |
105,628 |
-9.3% |
Transmission construction revenue |
39,394 |
100,492 |
-60.8% |
Financial remuneration of transmission contractual assets |
115,693 |
50,300 |
130.0% |
Generation indemnity revenue |
23,867 |
24783 |
-3.7% |
Distribution construction revenue |
1,165,087 |
1,063,302 |
9.6% |
Adjustment to expected cash flow from indemnifiable financial assets of the distribution concession |
49,577 |
-10,361 |
-578.5% |
Gain on financial updating of Concession Grant Fee |
85,073 |
59,722 |
42.4% |
Settlement on CCEE |
36,195 |
134,890 |
-73.2% |
Transactions in the Surpluses Sales Mechanism (MVE) |
0 |
125,463 |
-100.0% |
Retail supply of gas |
989,284 |
1,218,147 |
-18.8% |
Fine for continuity indicator shortfall |
-21,480 |
-13,668 |
57.2% |
Other operational revenues |
590,628 |
873,241 |
-32.4% |
Taxes and charges reported as deductions from revenue |
-3,390,215 |
-2,909,994 |
16.5% |
Net operational revenue |
9,426,629 |
9,223,311 |
2.2% |
COMPANHIA ENERGÉTICA DE MINAS GERAIS S.A. | 16 | |
Revenue from supply of electricity
|
3Q23 |
3Q22 |
Change, % |
|
MWh (2) |
R$ ’000 |
Average price billed – R$/MWh (1) |
MWh (2) |
R$ ’000 |
Average price billed – R$/MWh |
MWh |
R$ ’000 |
Residential |
2,874,159 |
2,698,430 |
938.86 |
2,706,219 |
2,079,671 |
768.48 |
6.2% |
29.8% |
Industrial |
4,616,519 |
1,517,529 |
328.72 |
4,733,637 |
1,548,322 |
327.09 |
-2.5% |
-2.0% |
Commercial, services and others |
2,260,311 |
1,507,626 |
667 |
2,124,316 |
1,339,523 |
630.57 |
6.4% |
12.5% |
Rural |
884,495 |
664,428 |
751.19 |
928,222 |
541,205 |
583.06 |
-4.7% |
22.8% |
Public authorities |
214,818 |
190,624 |
887.37 |
201,625 |
144,977 |
719.04 |
6.5% |
31.5% |
Public lighting |
263,431 |
120,576 |
457.71 |
287,126 |
120,307 |
419 |
-8.3% |
0.2% |
Public services |
255,403 |
203,362 |
796.24 |
359,448 |
192,393 |
535.25 |
-28.9% |
5.7% |
Subtotal |
11,369,136 |
6,902,575 |
607.13 |
11,340,593 |
5,966,398 |
526.11 |
0.3% |
15.7% |
Own consumption |
6,783 |
- |
- |
6,761 |
- |
- |
0.3% |
- |
Retail supply not yet invoiced, net |
- |
91,649 |
- |
- |
61,143 |
- |
- |
49.9% |
|
11,375,919 |
6,994,224 |
607.13 |
11,347,354 |
6,027,541 |
526.11 |
0.3% |
16.0% |
Wholesale supply to other concession holders (3) |
4,410,689 |
1,042,287 |
236.31 |
4,597,695 |
1,037,053 |
225.56 |
-4.1% |
0.5% |
Wholesale supply not yet invoiced, net |
- |
93,509 |
- |
- |
41,188 |
- |
- |
127.0% |
Total |
15,786,608 |
8,130,020 |
503.48 |
15,945,049 |
7,105,782 |
439.41 |
-1.0% |
14.4% |
| (1) | The calculation of average price does not include revenue from supply not
yet billed. |
| (2) | Information in MWh has not been reviewed by external auditors. |
| (3) | Includes Regulated Market Electricity Sale Contracts (CCEARs) and ‘bilateral
contracts’ with other agents. |
Consolidated volume of energy sold (GWh): –1.0% YoY
GWh |
Energy sold
to final consumers
Gross revenue from sales
to final consumers in 3Q23 was R$ 6,994.2 million, compared to R$ 6,027.5 million in 3Q22, a reduction of 16.0% YoY, in spite
of volume being 0.3% higher. The increase mainly reflects inclusion in the calculation base for ICMS tax of the targets for transmission
and distribution, as from Decree 45.572/2023, of February 2023.
Wholesale
Revenue from wholesale supply
was R$ 1,135.8 million in 3Q23, vs. R$ 1,078.2mn in 3Q22, due to the increase in the associated charges. The growth is linked
to the updating of contract values.
COMPANHIA ENERGÉTICA DE MINAS GERAIS S.A. | 17 | |
Transmission
|
3Q23 |
3Q22 |
Change, % |
TRANSMISSION REVENUE (R$ ’000) |
|
|
|
Operation and maintenance |
95,828 |
105,628 |
–9.3% |
Construction, upgrades and improvement of infrastructure |
39,394 |
100,492 |
–60.8% |
Financial remuneration of transmission contractual assets |
115,693 |
50,300 |
130.0% |
Total |
250,915 |
256,420 |
–2.1% |
Transmission revenue was
2.1% lower, mainly due to the construction revenue component being 60.8% (R$ 61.1 million) lower due to lower realization of
investments in upgrades and improvements in the period, the new projects being at initial phase, with disbursements associated with the
design and decision stages, which have lower costs. Revenue from financial remuneration of transmission contractual assets, on the other
hand, was 130% higher, due to the IPCA inflation index, the basis for remuneration of the contract, being higher: +0.61% in 3Q23, compared
to 1,32% negative in 3Q22. Operation and maintenance revenue was 9.3% lower.
Gas
Gross revenue from supply
of gas in 3Q23 totaled R$ 989.3 million, compared to R$ 1,218.1 million in 3Q22.
The lower figure results
from (i) passthrough of the downward adjustment in average price of gas acquired, in the last 12 months; and (ii) lower volume
in the industrial and automotive markets, in contrast to the volume contracted in Free Market supply for thermoelectric generation.
Revenue from Use of Distribution Systems –
The TUSD charge
|
3Q23 |
3Q22 |
Change, % |
TUSD (R$ ’000) |
Use of the Electricity Distribution System |
1,125,693 |
985,150 |
14.3% |
In 3Q23 revenue from the
TUSD – charged to Free Consumers on their distribution of energy – was 14.3% higher than in 3Q22. This reflects (i) volume
of energy transported for Free Clients 4.2% higher; (ii) the average tariff charged to Free Clients being 1.6% higher; and (iii) re-inclusion
in the basis for calculation of ICMS tax of transmission and distribution charges, as from February 2023.
|
3Q23 |
3Q22 |
Change, % |
POWER TRANSPORTED – MWh |
Industrial |
5,332,341 |
5,271,247 |
1.2% |
Commercial |
492,018 |
422,502 |
16.5% |
Rural |
11,743 |
8,961 |
31.0% |
Public services |
110,869 |
620 |
17,782% |
Concession holders |
88,198 |
89,145 |
–1.1% |
Total energy transported |
6,035,169 |
5,792,475 |
4.2% |
Operational costs and expenses
Operational costs and expenses
in 3Q23 totaled R$ 7.80 billion, compared to R$ 7.98 billion in 3Q22. The difference mainly reflects: (i) lower expenses
on purchase of energy (reduction of R$ 347.2 million) and gas (reduction of R$ 255.3 million), (ii) charges for use of
the national grid R$ 181.0 million higher; and (iii) provision for doubtful receivables from clients R$ 128.0 million higher,
given the reversal of R$84.8 million in 3Q22, due to a change in methodology which had a reduction effect of R$130.6 million in 3Q22.
See more details on costs and expenses in the pages below.
COMPANHIA ENERGÉTICA DE MINAS GERAIS S.A. | 18 | |
Operational costs and expenses |
3Q23 |
3Q22 |
Change, % |
R$ ’000 |
|
|
|
Electricity bought for resale |
3,778,480 |
4,125,675 |
-8.4% |
Charges for use of national grid |
769,491 |
588,444 |
30.8% |
Gas purchased for resale |
527,146 |
782,453 |
-32.6% |
Construction cost |
1,193,629 |
1,135,414 |
5.1% |
People |
302,927 |
309,758 |
-2.2% |
Employees’ and managers’ profit shares |
43,603 |
24,518 |
77.8% |
Post-retirement obligations |
168,786 |
163,946 |
3.0% |
Materials |
28,478 |
34,152 |
-16.6% |
Outsourced services |
466,584 |
409,378 |
14.0% |
Depreciation and amortization |
316,693 |
297,607 |
6.4% |
Operating provisions / adjustments |
99,522 |
86,428 |
15.2% |
Impairment – reversal |
-45,791 |
37,182 |
-223.2% |
Provisions (reversals) for client default |
43,160 |
-84,852 |
-150.9% |
Reversal of loss expected from related party |
0 |
-504 |
-100.0% |
Other operational costs and expenses |
110,341 |
68,212 |
61.8% |
Total |
7,803,049 |
7,977,811 |
-2.2% |
Electricity purchased for resale
|
3Q23 |
3Q22 |
Change, % |
CONSOLIDATED (R$ ’000) |
|
|
|
Electricity acquired in Free Market |
1,569,959 |
1,853,431 |
–15.3% |
Electricity acquired in Regulated Market auctions |
979,149 |
910,654 |
7.5% |
Distributed generation |
551,037 |
490,163 |
12.4% |
Supply from Itaipu Binacional |
323,440 |
425,463 |
–24.0% |
Physical guarantee quota contracts |
219,039 |
241,655 |
–9.4% |
Individual (‘bilateral’) contracts |
128,695 |
128,054 |
0.5% |
Proinfa |
127,894 |
151,414 |
–15.5% |
Spot market |
107,621 |
195,796 |
–45.0% |
Quotas for Angra I and II nuclear plants |
92,000 |
89,298 |
3.0% |
Credits of PIS, Pasep and Cofins taxes |
–320,354 |
–360,253 |
–11.1% |
|
3,778,480 |
4,125,675 |
–8.4% |
The expense on electricity
bought for resale in 3Q23 was R$ 3.78 billion, R$ 347.2 million (8.4%) less than in 3Q22. This arises mainly from the following
items:
| § | The costs of energy acquired in the Free Market, which are
the Company’s highest cost of purchased energy, at R$ 283.5 million, were 15.3% lower than in 3Q22. To make up a shortfall
in conventional and incentive-bearing energy, the amount purchased on the Free Market was higher in 2022. Also the average purchase price
was lower in 2023, due to conclusion of contracts in 2022 and start of new contracts at lower prices in 2023. |
| § | Expenses on purchase of electricity from Itaipu were R$ 102.0
million (24.0%) lower, mainly because the price for energy from Itaipu was reduced, from U$24.73 to U$20.23/kW, and also because the US
dollar exchange rate was 5.5% lower. |
| § | Expenses on energy acquired in the Regulated Market were
R$ 68.5 million (7.5%) higher than in 3Q22. This reflects the annual adjustments to contracts, by the IPCA inflation index, and entry
of a new auction. |
COMPANHIA ENERGÉTICA DE MINAS GERAIS S.A. | 19 | |
| § | Expenses on Distributed Generation were R$ 60.9 million
(12.4%) higher, reflecting the increase in the number of distributed generation plants installed, and the higher quantity of energy injected
into the grid (1.192 GWh in 3Q23, vs. 758 GWh in 3Q22). |
Note that for Cemig D purchased
energy is a non-manageable cost: the difference between the amounts used as a reference for calculation of tariffs and the costs actually
incurred is compensated for in the next tariff adjustment.
|
3Q23 |
3Q22 |
Change, % |
Cemig D (R$ ’000) |
|
|
|
Supply acquired in auctions on the Regulated Market |
1,010,691 |
925,614 |
9.2% |
Distributed generation |
551,036 |
490,163 |
12.4% |
Supply from Itaipu Binacional |
323,440 |
425,463 |
–24.0% |
Physical guarantee quota contracts |
219,654 |
254,182 |
–13.6% |
Individual (‘bilateral’) contracts |
128,695 |
128,054 |
0.5% |
Proinfa |
127,894 |
151,414 |
–15.5% |
Quotas for Angra I and II nuclear plants |
92,000 |
89,298 |
3.0% |
Spot market – CCEE |
80,826 |
184,796 |
–56.3% |
Credits of PIS, Pasep and Cofins taxes |
–173,189 |
–188,486 |
–8.1% |
|
2,361,047 |
2,460,498 |
–4.0% |
Charges for use of the transmission network
and other system charges
Charges for use of the transmission
network in 3Q23 totaled R$ 769.5 million, 30.8% higher year-on-year. The difference primarily reflects entry into operation of Reserve
Energy contracts under the Simplified Competitive Procedure (PCS) of 2021, with a consequent increase in the reserve energy charges in
the period. This is a non-manageable cost in the distribution business: the difference between the amounts used as a reference for calculation
of tariffs and the costs actually incurred is compensated for in the next tariff adjustment.
Gas purchased for resale
The expense on acquisition
of gas in 3Q23 was R$ 527.1 million, or 32.6% less than in 3Q22. This reflects the reduction in the price of gas acquired for resale.
Outsourced services
The
expense on outsourced services was 14.0% higher than in 3Q22. The main factor was an increase of R$ 29.0 million (22.5%) in expenses
on maintenance and conservation of facilities and equipment, (mainly, increase in the value of the services contracted, plus a higher
volume of preventive maintenance services in 2023, and an increase of R$ 11.5 million (40.7%) in expenses on information technology.
Provisions for client
default
The provision for expected
losses due to client default in 3Q23 was R$ 43.1 million, compared to R$ 84.8 million reversal in 3Q22, mainly reflecting (i) changes
in the measurement of these losses put in place in 3Q22, to be more compatible with actual performance of default by the Company’s
clients in practice, and (ii) an increase in settlement of regular debts by clients.
Impairment
On the sale of the small
hydroelectric plants and small generation centers (PCHs and CGHs) in the public auction held on August 10, 2023, there was a reversal
in 3Q23 of R$ 45.8 million of the provisions made for impairment in 1Q23. On the other hand, a provision of R$ 37.2 million
was recognized in 3Q22 for impairment of receivables from the client White Martins.
Post-retirement
obligations
The impact of the Company’s
post-retirement obligations on operational profit in 3Q23 was an expense of R$ 168.8 million, compared to an expense of R$ 163.9
million in 3Q22.
COMPANHIA ENERGÉTICA DE MINAS GERAIS S.A. | 20 | |
People
Expense on personnel in
3Q23 was R$ 302.9 million, 2.2% less than in 3Q22, even after the 6.46% increase in salaries under the Collective Work Agreement
of November 2022. In part this reflects the number of employees being 2.5% lower in 3Q23.
Cost of personnel
R$ million, excluding voluntary severance agreements |
Number of employees – by company |
COMPANHIA ENERGÉTICA DE MINAS GERAIS S.A. | 21 | |
CONSOLIDATED EBITDA
(IFRS and Adjusted)
Ebitda is a non-accounting
measure prepared by the Company, reconciled with its consolidated financial statements in accordance with the specifications in CVM Circular
SNC/SEP 01/2007 and CVM Resolution 156 of June 23, 2022. It comprises: Net profit adjusted for the effects of: (i) Net financial
revenue (expenses), (ii) Depreciation and amortization, and (iii) Income tax and the Social Contribution tax. Ebitda is not a measure
recognized by Brazilian GAAP nor by IFRS; it does not have a standard meaning; and it may be non-comparable with measures with similar
titles provided by other companies. Cemig publishes Ebitda because it uses it to measure its own performance. Ebitda should not be considered
in isolation or as a substitute for net profit or operational profit, nor as an indicator of operational performance or cash flow, nor
to measure liquidity nor the capacity for payment of debt. (2) The Company adjusts the Ebitda calculated in accordance with CVM Instruction
156/2022, to exclude items which, by their nature, do not contribute to information on the potential for gross cash flow generation since
they are extraordinary items.
Consolidated 3Q23 Ebitda |
3Q23 Ebitda – R$ ’000 |
Generation |
Transmission |
Trading |
Distribution |
Gas |
Holding co. and equity interests |
Total |
Profit (loss) for the period |
338,718 |
87,658 |
177,506 |
475,927 |
139,339 |
18,159 |
1,237,307 |
Income tax and Social Contribution tax |
93,507 |
15,687 |
78,275 |
54,973 |
69,265 |
-69,370 |
242,337 |
Finance income (expenses) |
28,977 |
36,236 |
-9,523 |
99,428 |
-1,205 |
60,939 |
214,852 |
Depreciation and amortization |
80,826 |
-60 |
4 |
205,258 |
23,769 |
6,896 |
316,693 |
Ebitda (CVM Resolution 156) |
542,028 |
139,521 |
246,262 |
835,586 |
231,168 |
16,624 |
2,011,189 |
Net profit attributed to non-controlling stockholders |
- |
- |
- |
- |
-599 |
- |
-599 |
Reversal of impairment of assets – Small Hydro Plants held for sale |
-45,791 |
- |
- |
- |
|
- |
-45,791 |
Adjusted Ebitda |
496,237 |
139,521 |
246,262 |
835,586 |
230,569 |
16,624 |
1,964,799 |
|
|
|
|
|
|
|
|
Consolidated 3Q22 Ebitda |
3Q22 Ebitda – R$ ’000 |
Generation |
Transmission |
Trading |
Distribution |
Gas |
Holding co. and equity interests |
Total |
Profit (loss) for the period |
12,378 |
88,740 |
102,888 |
506,930 |
112,814 |
358,603 |
1,182,353 |
Income tax and the Social Contribution tax |
64,662 |
58,301 |
27,053 |
175,268 |
48,991 |
-164,404 |
209,871 |
Finance income (expenses) |
46,242 |
28,656 |
-6,414 |
-11,466 |
-22,043 |
74,486 |
109,461 |
Depreciation and amortization |
82,280 |
1 |
4 |
188,247 |
23,018 |
4,057 |
297,607 |
Ebitda (CVM Resolution 156) |
205,562 |
175,698 |
123,531 |
858,979 |
162,780 |
272,742 |
1,799,292 |
Net profit attributed to non-controlling stockholders |
- |
- |
- |
- |
-485 |
- |
-485 |
Gain on disposal of investments |
- |
- |
- |
- |
- |
-504 |
-504 |
Reversal of tax provision – social security contributions on profit sharing |
-40,648 |
-37,360 |
-6,839 |
-42,433 |
- |
-8,834 |
-136,114 |
Increasing tax provision – ‘Anuênio’ indemnity |
16,475 |
15,142 |
2,772 |
95,861 |
- |
3,581 |
133,831 |
Put option – SAAG |
- |
- |
- |
- |
- |
-34,748 |
-34,748 |
Change in client default provision |
- |
- |
- |
-130,569 |
- |
- |
-130,569 |
Impairment |
- |
- |
37,182 |
- |
- |
- |
37,182 |
Gain from agreement between FIP Melbourne and AGPar |
- |
- |
- |
- |
- |
-132,821 |
-132,821 |
Adjusted Ebitda |
181,389 |
153,480 |
156,646 |
781,838 |
162,295 |
99,416 |
1,535,064 |
COMPANHIA ENERGÉTICA DE MINAS GERAIS S.A. | 22 | |
Ebitda of Cemig D
|
3Q23 |
3Q22 |
Change, % |
Cemig D Ebitda – R$ ’000 |
|
|
|
Net profit for the period |
475,927 |
506,928 |
-6.1% |
Income tax and Social Contribution tax |
54,973 |
175,269 |
-68.6% |
Net finance revenue (expense) |
99,429 |
-11,465 |
- |
Amortization |
205,259 |
188,247 |
9.0% |
= Ebitda (1) |
835,588 |
858,979 |
-2.7% |
Reversal of tax provision – social security contributions on profit sharing |
- |
-42,433 |
- |
Tax provisions – Anuênio indemnity |
- |
95,861 |
- |
Change in client default estimation method |
- |
-130,569 |
- |
= Adjusted Ebitda (2) |
835,588 |
781,838 |
6.9% |
Cemig D posted Ebitda of
R$ 835.6 million, 6.9% more than the adjusted Ebitda of 3Q22. The main effects on Ebitda in the quarter were:
| § | Total volume of energy distributed 1.0% higher YoY (comprising
distribution to the captive market 2.2% lower, and distribution to the Free Market 4.2% higher). |
| § | The average tariff increase of 13.3% at the end of May 2023, with full effect
in this period. |
| § | Performance better than the regulatory parameters: |
| o | Energy losses, at 10.57%, lower than the regulatory threshold (11.00%),
and better than in 3Q22. |
| o | In 9M23 Opex was 4.7% lower than the regulatory level – and |
| o | Ebitda was 7.6% higher than the regulatory level. |
| § | Higher provision for non-payment by clients: R$ 41.1
million in 3Q23, vs. a reversal of R$ 82.2 million in 3Q22 – the 2022 figure reflected a change in the method of calculation,
to give a more faithful estimate of expected losses, by increasing the period for 100% write-off of client receivables from 12 to 24 months.
The effect of the change in method in 3Q22 was R$ 130.6 million. |
| § | New Replacement Value (Valor Novo de Reposição
– VNR) R$ 59.9 million higher: R$ 49.6 million in 3Q23, and R$ 10.3 million in 3Q22 |
| § | The total of Other expenses was R$ 29.7 million
higher, mainly due to a higher expense on de-activation of assets, and regulatory compensations paid to clients. |
Other non-recurring effects in 3Q22
| § | Reversal, of R$ 42.4 million, of a tax provision related
to social security contributions on payment of profit shares. |
| § | Recognition of a tax provision of R$ 95.8 million for
the legal action disputing charging of the Social Security contribution on ‘Anuênios’ (payments relating to time of
service). |
COMPANHIA ENERGÉTICA DE MINAS GERAIS S.A. | 23 | |
Cemig GT – Ebitda
Cemig GT 3Q23 Ebitda |
|
|
|
|
|
Ebitda (R$ ’000) |
Generation |
Transmission |
Trading |
Equity interests |
Total |
Profit (loss) for the period |
340,291 |
85,786 |
86,237 |
-22,300 |
490,014 |
Income tax and Social Contribution tax |
93,508 |
15,023 |
31,259 |
-27,154 |
112,636 |
Finance income (expenses) |
28,977 |
36,518 |
-9,524 |
51,296 |
107,267 |
Depreciation and amortization |
80,825 |
- |
5 |
- |
80,830 |
Ebitda as per CVM Resolution 156 |
543,601 |
137,327 |
107,977 |
1,842 |
790,747 |
– Reversal of Impairment of assets Small Hydro Plants held for sale |
-45,791 |
- |
- |
- |
-45,791 |
Adjusted Ebitda |
497,810 |
137,327 |
107,977 |
1,842 |
744,956 |
|
|
|
|
|
|
Cemig GT 3Q22 Ebitda |
|
|
|
|
|
Ebitda (R$ ’000) |
Generation |
Transmission |
Trading |
Equity interests |
Total |
Profit (loss) for the period |
12,954 |
83,332 |
-61,807 |
216,763 |
251,242 |
Income tax and Social Contribution tax |
64,662 |
55,555 |
-57,791 |
-41,878 |
20,548 |
Finance income (expenses) |
46,242 |
29,014 |
-6,414 |
78,233 |
147,075 |
Depreciation and amortization |
82,283 |
- |
5 |
- |
82,288 |
Ebitda as per CVM Resolution 156 |
206,141 |
167,901 |
-126,007 |
253,118 |
501,153 |
Reversal of tax provision - social security contributions on profit sharing |
-28,874 |
-29,494 |
-5,068 |
-4,016 |
-67,451 |
+ Impairment |
- |
- |
37,182 |
- |
37,182 |
+ Tax provisions – ‘Anuênio’ indemnity |
13,503 |
13,793 |
2,370 |
1,878 |
31,544 |
- Put option – SAAG |
- |
- |
- |
-34,748 |
-34,748 |
– Gain from agreement between FIP Melbourne and AGPar |
- |
- |
- |
-132,821 |
-132,821 |
Adjusted Ebitda |
190,770 |
152,200 |
-91,523 |
83,411 |
334,859 |
The Ebitda of Cemig GT in
3Q23 was R$ 790.7 million, 57.8% higher than in 3Q22. Adjusted Ebitda was 122.5% higher, YoY. Factors in the higher Ebitda include:
| § | Higher profit from trading of energy, as a result of (i) the
Company’s successful strategy (sale at moments of higher price, providing a higher margin); and (ii) continuing transfer of contracts
to the holding company – in this quarter there was migration of contracts with higher price. |
| § | Higher revenue from updating of (i) the amount of the
Concession Grant Fee (+R$ 25.4 million), and (ii) financial remuneration of transmission contractual assets (+R$ 72.7 million),
mainly reflecting the higher IPCA inflation index: +0.61% in 3Q23, and negative (–1.32%) in 3Q22; while (iii) the margin on
transmission construction was lower (–R$ 19.2 million) reducing transmission revenue, due to a lower volume of investment executed
in the quarter. |
| § | Reversal of a provision of R$ 45.8 million for impairment
of the Small Hydro Plants held for sale, after the successful sale of these assets in the auction held in 3Q23. |
| § | Lower equity income (share of gain/loss in non-consolidated
investees), at R$ 12.3 million in 3Q23, compared to R$ 175.1 million in 3Q22. The major positive effect in 3Q22 was R$ 132.8
million related to the payment made by AGPar to FIP Melbourne (holder of an interest in Santo Antônio), under the
agreement resulting from a successful arbitration. |
Other
effects in 3Q22:
| § | Reversal in 3Q22 of R$ 14.7 million relating to the
SAAG put option, reflecting the adjustment of R$ 34.7 to liabilities after the agreement with AGPar. |
| § | Provision of R$ 37 million for impairment, to take
account of challenge by a client of an amount charged. |
COMPANHIA ENERGÉTICA DE MINAS GERAIS S.A. | 24 | |
| § | Reversal, of R$ 67.4 million, of a tax provision related
to social security contributions on payment of profit shares. |
| § | Tax provision of R$ 31.5 million for the legal action
on application of Social Security contributions to ‘anuênio’ (time of service) indemnity payments. |
Finance income
and expenses
|
3Q23 |
3Q22 |
Change, % |
(R$ ’000) |
|
|
|
Finance income |
345,678 |
411,748 |
–16.0% |
Finance expenses |
–560,530 |
–521,209 |
–7.5% |
Finance income (expenses) |
–214,852 |
–109,461 |
–96.3% |
For 3Q23 Cemig reports Net
financial expenses of R$ 214.8 million, compared to Net financial expenses of R$ 109.5 million in 3Q22. This mainly reflects
the following factors:
| § | Costs of loans and debentures R$ 45.7 million higher
than in 3Q22, reflecting an increase of approximately 7% in gross debt, |
| § | Higher net monetary updating loans and debentures: an expense
of R$ 26.8 million in 3Q23, compared to a gain (revenue) of R$ 10.2 million in 3Q22. This is mainly due to the difference in
levels of the IPCA inflation index (the main indexor used for updating the Company’s debts) between the two periods – it was
1.32% negative in 3Q22, but 0.61% positive in 3Q23. |
| § | Monetary updating on the balances of CVA and Other
financial components in tariff increases: an expense of R$ 11.0 million in 3Q23, compared to a gain (revenue) of R$ 38.2
million in 3Q22. This is due to a lower amount of CVA items being ratified in the 2023 tariff increase process than in 2022. |
| § | In 3Q23 the US dollar appreciated by 3.9% against the Real,
compared to appreciation of 3.2% in 3Q22, generating an expense of R$ 142.5 million in 3Q23, compared to an expense of R$ 168.6
million in 3Q22. |
| § | The fair value of the financial instrument contracted to
protect risks related to the Eurobonds increased by R$ 102.4 million in 3Q23. This compares to recognition of an increase of R$ 100.1
million in 3Q22 – reflecting a rise in the yield curve compared to expectation of an increase in the Real/US$ exchange rate. |
Eurobonds
– Effect in the quarter (R$ ’000)
|
3Q23 |
3Q22 |
Effect of FX variation on the debt |
–142,451 |
–168,600 |
Effect of the hedge |
102,428 |
100,087 |
Net effect in Financial income (expenses) |
–40,023 |
–68,513 |
COMPANHIA ENERGÉTICA DE MINAS GERAIS S.A. | 25 | |
Net profit
Cemig reports net profit
of R$ 1,237 million in 3Q23, compared to net profit of R$ 1,182 million in 3Q22.
Adjusted net profit in 3Q23
was R$ 1,233 million, compared to R$ 1,028 million in 2Q22.
Factors in this result principally
include:
| § | A higher result from trading in energy by Cemig GT
and the holding company of approximately 40%, resulting from (i) a differentiated strategy, and (ii) higher margin. |
| § | Total energy distributed by Cemig D
1.0% higher, and an improved results in Costs, Ebitda and energy losses compared to the regulatory threshold.
|
| § | Profit of Gasmig 24% higher than in 3Q22, due to
higher volume contracted, and higher margin. |
| § | Reversal of the impairment posted for the Small Hydro Plants
(PCHs) held for sale, after the successful auction of these assets – contributing a positive effect of R$ 29.3 million to net
profit. |
| § | Equity income (gain/loss in equity value of non-controlled
subsidiaries) was R$ 176.6 million lower, reflecting the positive effect in 3Q22 of R$ 132.8 million from the payment by AGPar
to FIP Melbourne (holder of an interest in Santo Antônio) relating to the successful arbitration judgment. |
| § | The agreement between AGPar and FIP Melbourne had a further
effect of R$ 23 million on the profit for 3Q22, via the SAAG put option. |
| § | Combined negative effect of R$ 26.4 million on the
debt in US dollars and the hedge instrument, in 3Q23, which compares with a negative effect of R$ 45.2 million in 3Q22. |
Other
effects in the prior year (3Q22)
| § | Adjustment of the method for calculating the default provision,
to better reflect the estimate of expected losses, with positive effect of R$ 86 million on net profit. |
| § | Positive effect of R$ 90 million from reversal of tax
provisions due to cancellation of notices of infringement of Social Security liabilities on profit shares, with the chances of loss being
adjusted from ‘probable’ to ‘possible’. |
| § | The contingency for Social Security liability for anuênio
(time of service) indemnity payments was reclassified, with a negative impact of R$ 88 million. |
| § | Impairment provision relating to a challenge by a client
of an amount charged, with negative effect of R$ 25 million net profit. |
COMPANHIA ENERGÉTICA DE MINAS GERAIS S.A. | 26 | |
Equity income (gain/loss in non-consolidated
investees)
|
3Q23 |
3Q22 |
Change R$ ’000 |
EQUITY INCOME (R$ ’000) * |
|
|
|
Taesa |
58,196 |
63,986 |
–5,790 |
Aliança Geração |
33,621 |
28,819 |
4,802 |
Paracambi |
3,942 |
4,756 |
–814 |
Hidrelétrica Pipoca |
3,006 |
4,663 |
–1,657 |
Hidrelétrica Cachoeirão |
2,906 |
4,016 |
–1,110 |
Guanhães Energia |
2,291 |
721 |
1,570 |
Cemig Sim (Equity holdings) |
993 |
9,006 |
–8,013 |
FIP Melbourne (Santo Antônio plant) |
0 |
142,133 |
–142,133 |
Baguari Energia |
0 |
7,564 |
–7,564 |
Retiro Baixo |
0 |
3797 |
-3,797 |
Belo Monte (Aliança Norte and Amazônia Energia) |
–34,039 |
–21,937 |
–12,102 |
Other |
0 |
20 |
–20 |
Total |
70,916 |
247,544 |
–176,628 |
COMPANHIA ENERGÉTICA DE MINAS GERAIS S.A. | 27 | |
Investments
Cemig
invested a total of R$ 3.3 billion in the first 9 months of 2023 – 48.6% more than in 9M22. The investment realized
in 3Q23 was R$ 1.6 billion.
Works
on the Boa Esperança and Jusante solar generation plants are 80% complete – underlining Cemig’s intention
to expand generation capacity from renewable sources.
Gasmig’s
Centro-Oeste project is scheduled to invest R$ 780 million in construction of 300 km of pipeline network. R$ 207 million
had been invested by September 2023.
Execution of the largest investment program in Cemig’s
history will modernize and improve reliability of Cemig’s electricity system, as part of its strategic plan of focusing on Minas
Gerais and its core businesses, providing ever-improving service to the client.
COMPANHIA ENERGÉTICA DE MINAS GERAIS S.A. | 28 | |
Debt
CONSOLIDATED (R$ ’000) |
Sep. 2023 |
Dec. 2022 |
Change, % |
Gross debt |
12,105,914 |
10,579,498 |
14.4% |
Cash and equivalents + Securities |
4,168,072 |
3,318,838 |
25.6% |
Net debt |
7,937,842 |
7,260,660 |
9.3% |
Debt in foreign currency |
3,911,139 |
3,959,805 |
–1.2% |
|
|
|
|
CEMIG GT – R$ ’000 |
Sep. 2023 |
Dec. 2022 |
Change, % |
Gross debt |
4,954,690 |
4,959,066 |
-0.1% |
Cash and equivalents + Securities |
1,736,389 |
1,650,444 |
5.2% |
Net debt |
3,218,301 |
3,308,622 |
–2.7% |
Debt in foreign currency |
3,911,139 |
3,959,805 |
–1.2% |
|
|
|
|
CEMIG D (R$ ’000) |
Sep. 2023 |
Dec. 2022 |
Change, % |
Gross debt |
6,099,168 |
4,575,998 |
33.3% |
Cash and equivalents + Securities |
1,231,156 |
721,469 |
70.6% |
Net debt |
4,868,012 |
3,854,529 |
26.3% |
Debt in foreign currency |
0 |
0 |
– |
Debt amortization timetable
R$ mn |
In 9M23 Cemig amortized
debt of R$ 719.8 million, of which R$ 699.8 million in Cemig D – which in June completed its 9th debenture
issue, for R$ 2 billion. This issue pays the CDI rate +2.05%, with settlement in two installments, 50% in May 2025 and 50% in May
2026.
|
3Q23 |
2023 |
DEBT AMORTIZED – R$ ’000 |
|
|
Cemig GT |
0 |
0 |
Cemig D |
135,509 |
699,848 |
Other |
20,000 |
20,000 |
Total |
155,509 |
719,848 |
COMPANHIA ENERGÉTICA DE MINAS GERAIS S.A. | 29 | |
Covenants –
Eurobonds
Last 12 months |
Sep. 2023 |
|
2022 |
R$ mn |
GT |
H |
|
GT |
H |
net income (loss) |
1,990 |
5,287 |
|
2,085 |
4,094 |
financial results net |
179 |
351 |
|
477 |
1,567 |
income tax and social contribution |
446 |
1,148 |
|
118 |
26 |
depreciation and amortization |
324 |
1,235 |
|
328 |
1,182 |
minority interest result |
-178 |
-367 |
|
-519 |
-843 |
provisions for the variation in value of put option obligations |
18 |
18 |
|
36 |
36 |
non-operating result (which includes any gains on asset sales and any asset write-off or impairments) |
-106 |
-225 |
|
119 |
83 |
any non-cash expenses and non-cash charges, to the extent that they are nonrecurring |
1 |
2 |
|
-35 |
830 |
any non-cash credits and gains increasing net income, to the extent that they are non-recurring |
0 |
-128 |
|
0 |
-209 |
non-cash revenues related to transmission and generation indemnification |
-521 |
-529 |
|
-561 |
-575 |
cash dividends received from minority investments (as measured in the statement of cash flows) |
170 |
506 |
|
258 |
708 |
monetary updating of concession grant fees |
-429 |
-429 |
|
-467 |
-467 |
cash inflows related to concession grant fees |
329 |
329 |
|
309 |
309 |
cash inflows related to transmission revenue for cost of capital coverage |
705 |
713 |
|
601 |
607 |
Covenant EBITDA |
2,928 |
7,911 |
|
2,749 |
7,348 |
|
|
|
|
|
|
Last 12 months |
Sep. 2023 |
|
2022 |
Last 12 months - R$ mn |
GT |
H |
|
GT |
H |
consolidated Indebtedness |
4,955 |
12,106 |
|
4,959 |
10,579 |
Derivative financial instruments |
-337 |
-337 |
|
-612 |
-612 |
Debt contracts with Forluz |
150 |
664 |
|
181 |
799 |
The carrying liability of any put option obligation |
0 |
0 |
|
720 |
720 |
Consolidated cash and cash equivalents and consolidated marketable securities recorded as current assets. |
-1,736 |
-4,168 |
|
-1,650 |
-3,319 |
Covenant Net Debt |
3,032 |
8,265 |
|
3,598 |
8,167 |
|
|
|
|
|
|
Covenant Net Debt to Covenant EBITDA Ratio |
1.04 |
1.04 |
|
1.31 |
1.11 |
Limit Covenant Net Debt to Covenant EBITDA Ratio |
2.50 |
3.00 |
|
2.50 |
3.00 |
Total Secured Debt (R$ mn) |
- |
0 |
|
- |
74 |
Total Secured Debt to Covenant EBITDA Ratio |
- |
0.00 |
|
- |
0.01 |
Limit Covenant Net Debt to Covenant EBITDA Ratio |
- |
1.75 |
|
- |
1.75 |
COMPANHIA ENERGÉTICA DE MINAS GERAIS S.A. | 30 | |
Cemig’s long-term
ratings
Cemig’s ratings have
improved significantly in recent years, and are currently at their highest-ever level.
In 2021 the three principal
rating agencies upgraded their ratings for Cemig.
In April 2022, Moody’s again upgraded its rating for Cemig, this time by one notch.
Details in this table:
COMPANHIA ENERGÉTICA DE MINAS GERAIS S.A. | 31 | |
ESG – Report
on performance
Cemig highlights
| § | The new Carmo do Rio Claro 2 substation started operation,
an investment of R$ 53 million, providing energy availability and quality to 61,000 people in the Southeastern region of Minas Gerais.
A total of 12 substations have been inaugurated this year. |
| § | Cemig has now registered more than 1 million clients to
receive their electricity bills by email, helping reduce urban solid waste. |
| § | Cemig intensifies its efforts against theft of energy, with
its “Moralizing Irregular Consumption” project, which emphasizes the legal consequences of such actions, and the importance
of ethical and moral consumption of resources. |
Environment
| § | Cemig has signed a contract for supply of clean renewable
energy with Sigma Lithium, a net-zero producer of pre-chemical lithium concentrate. This was an agreement in the Free Market, and will
contribute to economic development and job creation in the Vale do Jequitinhonha region. |
| § | The possibility of producing food and electricity at the
same location will become a reality with Brazil’s first agrivoltaic project, a partnership between Cemig, the Minas Gerais Farming
Research Company (Epamig), and the Telecommunications Research and Development Center (CPQD). This will be an investment of R$ 10.5
million, with research over 30 months. |
Social
Cemig runs various programs with the communities
living or working around its operations:
| § | Cemig’s Proximidade (Proximity) Program explains the
operating and security procedures of its hydroelectric plants to the population, and also provides information on the meteorological and
hydrological situation of the related river basins. Events were held in this quarter at the Rosal and Queimado hydroelectric plants. |
| § | The Vamos Program aims to raise awareness on safety, and
mobilization of the population in the event of emergencies. It holds meetings with civil defense bodies, including training on simulation
of evacuations of hydroelectric dam areas in the event of significant damage. |
| § | The Environmental Education Program of the Nova Ponte hydroelectric
Plant held two events at schools in municipalities (Nova Ponte and Santa Juliana) around its reservoirs, and at the local primary school
near the Poço Fundo Small Hydro Plant, exploring concepts related to nearby natural and cultural heritage. |
| § | The Participatory Management Program for the area surrounding
the Theodomiro Carneiro Santiago hydroelectric plant held three meetings of its Management Committee Working Group. |
| § | At the Salto Grande hydroelectric plant the Environmental
Education Program and the Participatory Management Program held meetings with communities local to the plant (Braúnas, Dores de
Guanhães, Ferros and Joanésia). |
| § | In Madre de Deus de Minas they gave a presentation on preservation
of springs, and discarding of weedkiller packaging, since selective public collection has started only recently in the area. |
| § | The Environmental Education Program of the Itutinga plant
held training for secondary school pupils on the theme of Soil and Water Conservation. |
| § | In 3Q23 the Participatory Management Programs at the Ervália
and São Bernardo Small Hydro Plants provided training for students on solid wastes. |
| § | The Participatory Management Program for the Joasal, Piau
and Marmelos generating plants held a meeting to present the status of their activities and decide on a new plan of action for the areas
surrounding these plants. |
Governance
| § | The Public Attorneys of Minas Gerais terminated the Inquiry
investigating allegations made about Cemig in the Inquiry held by the Minas Gerais state legislature. The decision determined that all
the acts of Cemig management were regular and in harmony with satisfaction of the public interest. |
| § | The Instruction on Management of Solid Wastes was updated,
aiming to optimize procedures for packaging, transport, storage and environmentally appropriate disposal of wastes produced. |
COMPANHIA ENERGÉTICA DE MINAS GERAIS S.A. | 32 | |
Cemig present in the leading sustainability
indices
COMPANHIA ENERGÉTICA DE MINAS GERAIS S.A. | 33 | |
Performance of
our shares
Security |
Sep. 2023 |
2022 |
Change, % |
Our share prices (2) |
CMIG4 (PN) at the close (R$/share) |
12.41 |
10.52 |
17.9% |
CMIG3 (ON) at the close (R$/share) |
19.10 |
15.55 |
22.8% |
CIG (ADR for PN shares), at close (US$/share) |
2.42 |
1.9 |
27.2% |
CIG.C (ADR for ON shares) at close (US$/share) |
3.95 |
3.12 |
26.6% |
XCMIG (Cemig PN shares on Latibex), close (€/share) |
2.34 |
1.81 |
29.3% |
Average daily volume |
CMIG4 (PN) (R$ mn) |
119.52 |
120.66 |
–0.9% |
CMIG3 (ON) (R$ mn) |
6.53 |
9.36 |
–30.2% |
CIG (ADR for PN shares) (US$ mn) |
9.52 |
14.99 |
–36.5% |
CIG.C (ADR for ON shares) (US$ mn) |
0.18 |
0.25 |
–26.4% |
Indices |
IEE |
85443 |
78679 |
8.6% |
IBOV |
116,565 |
109,735 |
6.2% |
DJIA |
33,508 |
33,147 |
1.1% |
Indicators |
Market valuation at end of period, (R$ mn) |
32,231 |
28,200 |
14.3% |
Enterprise value (EV) (1) (R$ mn) |
40,342 |
34,805 |
15.9% |
Dividend yield of CMIG4 (PN) (3) (%) |
8.91 |
12.22 |
–3.31 p.p |
Dividend yield of CMIG3 (ON) (%) (3) |
5.79 |
8.43 |
–2.64 p.p |
(1) EV = Market valuation (R$/share x number of shares) plus consolidated Net debt. |
|
|
(2) Share prices adjusted for corporate action payments, including dividends. |
|
|
|
(3) (Dividends distributed in last four quarters) / (Share price at end of period). |
|
|
COMPANHIA ENERGÉTICA DE MINAS GERAIS S.A. | 34 | |
Cemig’s shares, by
volume (aggregate of common (ON) and preferred (PN) shares), were the third most liquid in Brazil’s electricity sector, and among
the most traded in the Brazilian equity market.
Trading volume of ADRs for
Cemig’s preferred shares (CIG) on the New York Stock Exchange in 9M23 totaled US$ 1,781 million.
We see this as reflecting
recognition by the investor market – and maintaining Cemig’s position as a global investment option.
The benchmark Ibovespa
index of the São Paulo Stock Exchange rose 6.22% in the period, while Cemig’s shares performed better:
In São Paulo, Cemig
preferred (PN) shares rose 17.92%, and the common (ON) shares rose 22.8%.
In New York, the ADRs of
Cemig preferred shares rose 27.15%, and the ADRs for the common shares rose 26.6%.
COMPANHIA ENERGÉTICA DE MINAS GERAIS S.A. | 35 | |
Cemig’s generation
plants
Power Plant |
Company |
Cemig Installed Capacity
(MW) |
Cemig Assured Energy
(MW) |
Expiration of Concession |
Type of plant |
Cemig's Stake |
Emborcação |
CEMIG GT |
1,192 |
475 |
May-27 |
Hydroelectric |
100.00% |
Nova Ponte |
CEMIG GT |
510 |
257 |
Aug-27 |
Hydroelectric |
100.00% |
Três Marias |
CEMIG GT |
396 |
227 |
Jan-53 |
Hydroelectric |
100.00% |
Irapé |
CEMIG GT |
399 |
198 |
Sep-37 |
Hydroelectric |
100.00% |
Salto Grande |
CEMIG GT |
102 |
74 |
Jan-53 |
Hydroelectric |
100.00% |
Sá Carvalho |
Sá Carvalho S.A |
78 |
54 |
Aug-26 |
Hydroelectric |
100.00% |
Rosal |
Rosal Energia S. A |
55 |
28 |
Dec-35 |
Hydroelectric |
100.00% |
Itutinga |
CEMIG G. ITUTINGA |
52 |
27 |
Jan-53 |
Hydroelectric |
100.00% |
Camargos |
CEMIG G. CAMARGOS |
46 |
22 |
Jan-53 |
Hydroelectric |
100.00% |
Volta do Rio |
CEMIG GT |
42 |
18 |
Dec-31 |
Wind Farm |
100.00% |
Poço Fundo |
CEMIG GT |
30 |
17 |
May-52 |
Hydroelectric |
100.00% |
Pai Joaquim |
CEMIG PCH S.A |
23 |
14 |
Oct-32 |
Hydroelectric |
100.00% |
Piau |
CEMIG G. SUL |
18 |
14 |
Jan-53 |
Hydroelectric |
100.00% |
Praias de Parajuru |
CEMIG GT |
29 |
8 |
Sep-32 |
Wind Farm |
100.00% |
Salto Voltão |
Horizontes Energia |
8 |
7 |
Jun-33 |
Hydroelectric |
100.00% |
Gafanhoto |
CEMIG G. OESTE |
14 |
7 |
Jan-53 |
Hydroelectric |
100.00% |
Peti |
CEMIG G. LESTE |
9 |
6 |
Jan-53 |
Hydroelectric |
100.00% |
Joasal |
CEMIG G. SUL |
8 |
5 |
Jan-53 |
Hydroelectric |
100.00% |
Queimado |
CEMIG GT |
87 |
53 |
Jul-34 |
Hydroelectric |
82.50% |
Belo Monte |
Norte |
1,313 |
534 |
Jul-46 |
Hydroelectric |
11.69% |
Aimorés |
ALIANÇA |
149 |
78 |
Nov-39 |
Hydroelectric |
45.00% |
Amador Aguiar I (Capim Branco I) |
ALIANÇA |
94 |
58 |
Nov-42 |
Hydroelectric |
39.31% |
Amador Aguiar II (Capim Branco II) |
ALIANÇA |
83 |
49 |
Aug-36 |
Hydroelectric |
39.31% |
Funil |
ALIANÇA |
81 |
36 |
May-40 |
Hydroelectric |
45.00% |
Igarapava |
ALIANÇA |
50 |
30 |
Sep-31 |
Hydroelectric |
23.69% |
Porto Estrela |
ALIANÇA |
34 |
18 |
Jun-35 |
Hydroelectric |
30.00% |
Candonga |
ALIANÇA |
32 |
14 |
Dec-38 |
Hydroelectric |
22.50% |
Gravier |
ALIANÇA |
32 |
13 |
Aug-55 |
Wind Farm |
45.00% |
Santo Inácio III |
ALIANÇA |
13 |
6 |
Jun-46 |
Wind Farm |
45.00% |
São Raimundo |
ALIANÇA |
10 |
5 |
Jun-46 |
Wind Farm |
45.00% |
Santo Inácio IV |
ALIANÇA |
10 |
5 |
Jun-46 |
Wind Farm |
45.00% |
Garrote |
ALIANÇA |
10 |
5 |
Jun-46 |
Wind Farm |
45.00% |
Retiro Baixo |
Retiro Baixo Energética |
42 |
17 |
Mar-47 |
Hydroelectric |
49.90% |
Paracambi |
Lightger |
12 |
10 |
Jan-34 |
Hydroelectric |
49.00% |
Cachoeirão |
Hidrelétrica Cachoeirão |
13 |
8 |
Sep-33 |
Hydroelectric |
49.00% |
Pipoca |
Hidrelétrica Pipoca |
10 |
6 |
Dec-34 |
Hydroelectric |
49.00% |
Others |
|
132 |
60 |
|
|
|
Total |
|
5,218 |
2,462 |
|
|
|
Cemig Sim (MWp) |
|
29 |
- |
|
Photovoltaic |
49.00% |
Cemig Sim (MWp) |
|
23 |
- |
|
Photovoltaic |
100.00% |
Total |
|
5,270 |
2,462 |
|
|
|
COMPANHIA ENERGÉTICA DE MINAS GERAIS S.A. | 36 | |
RAP: July 2023–June
2024 cycle
The RAP of Cemig has been
increased by 23.5%, as from July, incorporating the effects of (i) inflation in the period, (ii) strengthening and improvement
of the network, and (iii) a significant increase in the amount allocated by Aneel for reimbursement of the value of National Grid assets
(second table, below).
ANEEL RATIFYING RESOLUTION (REH) 3216/2023 (2023–2024 cycle) |
Company |
RAP
(R$ ’000) |
% Cemig |
Cemig (R$ ’000) |
Expiration |
Cemig |
1,143,036 |
100.00% |
1,143,036 |
|
Cemig GT |
1,045,366 |
100.00% |
1,045,366 |
Dec. 2042 |
Cemig Itajubá |
59,266 |
100.00% |
59,266 |
Oct. 2030 |
Centroeste |
29,268 |
100.00% |
29,268 |
Mar. 2035 |
Sete Lagoas |
9,136 |
100.00% |
9,136 |
Jun. 2041 |
Taesa |
4,052,200 |
21.68% |
878,517 |
|
TOTAL RAP |
|
|
2,021,553 |
|
* RAP including amounts of the Adjustment Portion.
REIMBURSEMENT FOR ASSETS – NATIONAL GRID** |
R$ ’000 – per cycle |
2020–2021 |
2021–2022 |
2022–2023 |
2023–2024 |
From
2024-2025
to 2027-2028 |
Economic |
144,547 |
144,547 |
144,547 |
144,375 |
28,514 |
Financial |
332,489 |
88,662 |
129,953 |
275,556 |
275,556 |
TOTAL |
477,036 |
233,209 |
274,499 |
419,931 |
304,070 |
** The figures for indemnity of National Grid components
are included in the RAP of Cemig (first table).
Note: Cemig currently has Aneel approvals (REAs) for additional
large-scale Upgrading and Improvements, with total capex of R$ 663 million.
Expected start of operation |
Capex (R$ mil) |
RAP (R$ mil) |
2023 |
301,917 |
44,248 |
2024 |
204,148 |
30,359 |
2025 |
277,664 |
43,943 |
2026 |
156,556 |
23,798 |
Total |
940,285 |
142,349 |
Regulatory Transmission
revenue – 3Q23
Regulatory Transmission revenue – 3Q23 |
R$ ’000 |
GT |
Centroeste |
Sete Lagoas |
REVENUE |
403,486 |
7,192 |
2,548 |
Transmission operations revenue |
403,486 |
7,192 |
2,548 |
Taxes on revenue |
-33,329 |
-263 |
-235 |
PIS and Pasep taxes |
-5,943 |
-47 |
-42 |
Cofins tax |
-27,377 |
-216 |
-193 |
ISS tax |
-9 |
- |
- |
Sector charges |
-85,935 |
-242 |
-222 |
Research and Development (R&D) |
-2,877 |
-67 |
-21 |
Global Reversion Reserve (RGR) |
0 |
-148 |
-192 |
Energy Development Account (CDE) |
-65,883 |
- |
- |
Electricity Services Inspection Charge (TFSEE) |
-1114 |
-27 |
-9 |
Other charges |
-16,061 |
- |
- |
Net revenue |
284,222 |
6,687 |
2,091 |
COMPANHIA ENERGÉTICA DE MINAS GERAIS S.A. | 37 | |
Complementary information
Cemig D
CEMIG D Market |
Quarter |
Captive
Consumers |
TUSD ENERGY1 |
T.E.D2 |
TUSD PICK3 |
3Q21 |
6,098 |
5,592 |
11,689 |
35.5 |
4Q21 |
6,116 |
5,629 |
11,746 |
35.2 |
1Q22 |
6,013 |
5,612 |
11,626 |
36.1 |
2Q22 |
5,738 |
5,397 |
11,136 |
36.2 |
3Q22 |
6,050 |
5,853 |
11,904 |
36.7 |
4Q22 |
5,942 |
5,790 |
11,733 |
34.7 |
1Q23 |
5,723 |
5,566 |
11,289 |
38.0 |
2Q23 |
5,949 |
6,058 |
12,007 |
38.5 |
3Q23 |
5,812 |
6,028 |
11,840 |
39.2 |
1. Refers to the quantity of electricity for calculation of the regulatory charges charged to free consumer clients ("Portion A") |
2. Total electricity distributed |
3. Sum of the demand on which the TUSD is invoiced, according to demand contracted ("Portion B"). |
Cemig D |
3Q23 |
2Q23 |
3Q22 |
chg. % |
chg. % |
Operating Revenues (R$ million) |
|
|
|
3Q/2Q |
3Q/3Q |
Revenue from supply of energy |
5,490 |
5,098 |
4,500 |
7.7% |
22.0% |
Reimbursement of PIS/Pasep and Cofins credits to customers |
312 |
562 |
706 |
-44.4% |
-55.8% |
Revenue from Use of Distribution Systems (the TUSD charge) |
1,134 |
1,126 |
991 |
0.7% |
14.4% |
CVA and Other financial components in tariff adjustment |
80 |
-165 |
-396 |
- |
- |
Construction revenue |
1,030 |
860 |
1,050 |
19.8% |
-1.9% |
Adjustment to expectation of cash flow from indemnifiable financial assets of distribution concession (VNR) |
50 |
47 |
-10 |
5.5% |
- |
Others |
532 |
525 |
963 |
1.3% |
-44.8% |
Subtotal |
8,628 |
8,052 |
7,804 |
7.15% |
10.6% |
Deductions |
2,633 |
2,503 |
2,063 |
5.2% |
27.6% |
Net Revenues |
5,995 |
5,549 |
5,741 |
8.0% |
4.4% |
|
3Q23 |
2Q23 |
3Q22 |
chg. % |
chg. % |
Cemig D - Expenses (R$ million) |
|
|
|
3Q/2Q |
3Q/3Q |
Personnel |
204 |
217 |
208 |
-6.0% |
-1.9% |
Employees' and managers' profit sharing |
27 |
26 |
11 |
3.8% |
145.5% |
Forluz – Post-retirement obligations |
112 |
106 |
110 |
5.7% |
1.8% |
Materials |
21 |
25 |
28 |
-16.0% |
-25.0% |
Outsourced services |
389 |
377 |
338 |
3.2% |
15.1% |
Amortization |
204 |
197 |
188 |
3.6% |
8.5% |
Operating provisions |
117 |
106 |
3 |
10.4% |
3800.0% |
Charges for Use of Basic Transmission Network |
809 |
733 |
617 |
10.4% |
31.1% |
Energy purchased for resale |
2,361 |
2,306 |
2,460 |
2.4% |
-4.0% |
Construction Cost |
1,030 |
860 |
1,050 |
19.8% |
-1.9% |
Other Expenses |
90 |
106 |
57 |
-15.1% |
57.9% |
Total |
5,364 |
5,059 |
5,070 |
6.0% |
5.8% |
COMPANHIA ENERGÉTICA DE MINAS GERAIS S.A. | 38 | |
Cemig D |
3Q23 |
2Q23 |
3Q22 |
chg. % |
chg. % |
Statement of Results |
3Q/2Q |
3Q/3Q |
Net Revenue |
5,995 |
5,549 |
5,741 |
8.0% |
4.4% |
Operating Expenses |
5,364 |
5,058 |
5,070 |
6.0% |
5.8% |
EBIT |
631 |
491 |
671 |
28.4% |
-6.0% |
EBITDA |
835 |
689 |
859 |
21.1% |
-2.8% |
Financial Result |
-99 |
12 |
11 |
- |
- |
Provision for Income Taxes, Social Cont & Deferred Income Tax |
-56 |
-138 |
-175 |
-59.4% |
-68.0% |
Net Income |
476 |
365 |
507 |
30.2% |
-6.2% |
Cemig GT
Cemig GT - Operating Revenues |
3Q23 |
2Q23 |
3Q22 |
chg. % |
chg. % |
(R$ million) |
|
|
|
3Q/2Q |
3Q/3Q |
Sales to end consumers |
979 |
1,008 |
1,319 |
-2.9% |
-25.8% |
Supply |
548 |
521 |
552 |
5.2% |
-0.7% |
Revenues from Trans. Network |
198 |
182 |
191 |
8.8% |
3.7% |
Gain on monetary updating of Concession Grant Fee |
85 |
94 |
60 |
-9.6% |
41.7% |
Transactions in the CCEE |
0 |
9 |
96 |
- |
- |
Construction revenue |
36 |
68 |
100 |
-47.1% |
-64.0% |
Financial remuneration of transmission contractual assets |
114 |
105 |
42 |
8.6% |
171.4% |
Others |
59 |
51 |
47 |
15.7% |
25.5% |
Subtotal |
2,019 |
2,038 |
2,407 |
-0.9% |
-16.1% |
Deductions |
398 |
406 |
488 |
-2.0% |
-18.4% |
Net Revenues |
1,621 |
1,632 |
1,919 |
-0.7% |
-15.5% |
Cemig GT - Operating Expenses |
3Q23 |
2Q23 |
3Q22 |
chg. % |
chg. % |
(R$ million) |
|
|
|
3Q/2Q |
3Q/3Q |
Personnel |
77 |
80 |
78 |
-3.8% |
-1.3% |
Employees' and managers' profit sharing |
10 |
9 |
9 |
11.1% |
11.1% |
Forluz – Post-retirement obligations |
36 |
33 |
35 |
9.1% |
2.9% |
Materials |
6 |
5 |
6 |
20.0% |
0.0% |
Outsourced services |
60 |
64 |
57 |
-6.3% |
5.3% |
Depreciation and Amortization |
81 |
80 |
82 |
1.3% |
-1.2% |
Operating provisions |
13 |
13 |
-18 |
0.0% |
-172.2% |
Charges for Use of Basic Transmission Network |
70 |
64 |
64 |
9.4% |
9.4% |
Energy purchased for resale |
574 |
683 |
1255 |
-16.0% |
-54.3% |
Construction Cost |
27 |
47 |
72 |
-42.6% |
-62.5% |
Impairment |
-46 |
0 |
37 |
- |
- |
SAAG - Put option |
0 |
25 |
-14 |
- |
|
Other Expenses |
15 |
5 |
11 |
200.0% |
36.4% |
Total |
923 |
1,108 |
1,674 |
-16.7% |
-44.9% |
COMPANHIA ENERGÉTICA DE MINAS GERAIS S.A. | 39 | |
Cemig GT - Statement of Results |
3Q23 |
2Q23 |
3Q22 |
chg. % |
chg. % |
(R$ million) |
|
|
|
3Q/2Q |
3Q/3Q |
Net Revenue |
1,621 |
1,632 |
1,919 |
-0.7% |
-15.5% |
Operating Expenses |
923 |
1,108 |
1,674 |
-16.7% |
-44.9% |
EBIT |
698 |
524 |
245 |
33.2% |
184.9% |
Equity gain in subsidiaries |
12 |
25 |
175 |
-52.0% |
-93.1% |
EBITDA |
791 |
629 |
501 |
25.8% |
57.9% |
Financial Result |
-107 |
14 |
-147 |
- |
- |
Provision for Income Taxes, Social Cont & Deferred Income Tax |
-113 |
-104 |
-21 |
- |
- |
Net Income |
490 |
459 |
251 |
6.8% |
95.2% |
Cemig, Consolidated
Energy Sales |
3Q23 |
2Q23 |
3Q22 |
chg. % |
chg. % |
(in GWh) |
|
|
|
3Q/2Q |
3Q/3Q |
Residential |
2,874 |
2,944 |
2,706 |
-2.4% |
6.2% |
Industrial |
4,617 |
4,595 |
4,734 |
0.5% |
-2.5% |
Commercial |
2,260 |
2,424 |
2,124 |
-6.8% |
6.4% |
Rural |
884 |
805 |
928 |
9.8% |
-4.7% |
Others |
734 |
761 |
848 |
-3.5% |
-13.4% |
Subtotal |
11,369 |
11,529 |
11,340 |
-1.4% |
0.3% |
Own Consumption |
7 |
7 |
7 |
0.0% |
0.0% |
Supply |
4,411 |
4,137 |
4,598 |
6.6% |
-4.1% |
TOTAL |
15,787 |
15,673 |
15,945 |
0.7% |
-1.0% |
Revenue from supply of electricity |
3Q23 |
2Q23 |
3Q22 |
chg. % |
chg. % |
(R$ million) |
|
|
|
3Q/2Q |
3Q/3Q |
Residential |
2,698 |
2,532 |
2,080 |
6.6% |
29.7% |
Industrial |
1,518 |
1,475 |
1,548 |
2.9% |
-1.9% |
Commercial |
1,508 |
1,597 |
1,340 |
-5.6% |
12.5% |
Rural |
664 |
539 |
541 |
23.2% |
22.7% |
Others |
515 |
481 |
457 |
7.1% |
12.7% |
Subtotal |
6,903 |
6,624 |
5,966 |
4.2% |
15.7% |
Unbilled supply |
91 |
-48 |
61 |
-289.6% |
49.2% |
Supply |
1136 |
952 |
1079 |
19.3% |
5.3% |
TOTAL |
8,130 |
7,528 |
7,106 |
8.0% |
14.4% |
COMPANHIA ENERGÉTICA DE MINAS GERAIS S.A. | 40 | |
Operating Revenues - consolidated |
3Q23 |
2Q23 |
3Q22 |
chg. % |
chg. % |
(R$ million) |
|
|
|
3Q/2Q |
3Q/3Q |
Sales to end consumers |
6,994 |
6,576 |
6,027 |
6.4% |
16.0% |
Supply |
1,136 |
952 |
1,079 |
19.3% |
5.3% |
TUSD |
1,126 |
1,118 |
985 |
0.7% |
14.3% |
CVA and Other financial components in tariff adjustment |
80 |
-165 |
-395 |
- |
- |
Reimbursement of PIS/Pasep and Cofins over ICMS credits to customers |
312 |
562 |
706 |
-44.5% |
-55.8% |
Transmission revenue plus RTP |
96 |
96 |
106 |
0.0% |
-9.4% |
Financial remuneration of transmission contractual assets |
115 |
107 |
50 |
7.5% |
130.0% |
Transactions in the CCEE |
36 |
14 |
135 |
157.1% |
-73.3% |
Gas supply |
989 |
1,074 |
1,218 |
-7.9% |
-18.8% |
Construction revenue |
1,204 |
986 |
1,163 |
22.1% |
3.5% |
Others |
729 |
732 |
1,059 |
-0.4% |
-31.2% |
Subtotal |
12,817 |
12,052 |
12,133 |
6.3% |
5.6% |
Deductions |
3,390 |
3,232 |
2,910 |
4.9% |
16.5% |
Net Revenues |
9,427 |
8,820 |
9,223 |
6.9% |
2.2% |
Operating Expenses - consolidated |
3Q23 |
2Q23 |
3Q22 |
chg. % |
chg. % |
(R$ million) |
|
|
|
3Q/2Q |
3Q/3Q |
Personnel |
303 |
321 |
310 |
-5.6% |
-2.3% |
Employees’ and managers’ profit sharing |
44 |
37 |
25 |
18.9% |
76.0% |
Forluz – Post-Retirement Employee Benefits |
169 |
158 |
164 |
- |
3.0% |
Materials |
28 |
31 |
34 |
-9.7% |
-17.6% |
Outsourced services |
467 |
456 |
409 |
2.4% |
14.2% |
Energy purchased for resale |
3,778 |
3,468 |
4,126 |
8.9% |
-8.4% |
Depreciation and Amortization |
317 |
303 |
298 |
4.6% |
6.4% |
Operating Provisions |
53 |
132 |
123 |
-59.8% |
-56.9% |
Charges for use of the national grid |
769 |
705 |
588 |
9.1% |
30.8% |
Gas bought for resale |
527 |
572 |
782 |
-7.9% |
-32.6% |
Construction costs |
1,194 |
964 |
1,135 |
23.9% |
5.2% |
Expected credit losses of accounts receivable |
43 |
21 |
-84 |
- |
- |
Other Expenses |
111 |
145 |
68 |
-23.4% |
63.2% |
Total |
7,803 |
7,313 |
7,978 |
6.70% |
-2.19% |
COMPANHIA ENERGÉTICA DE MINAS GERAIS S.A. | 41 | |
Financial Result Breakdown |
3Q23 |
2Q23 |
3Q22 |
chg. % |
chg. % |
(R$ million) |
|
|
|
3Q/2Q |
3Q/3Q |
FINANCE INCOME |
|
|
|
|
|
Income from cash investments |
121 |
106 |
144 |
14.2% |
-16.0% |
Arrears fees on sale of energy |
67 |
80 |
74 |
-16.3% |
-9.5% |
Monetary variations – CVA |
0 |
65 |
38 |
-100.0% |
-100.0% |
Monetary updating on Court escrow deposits |
23 |
22 |
23 |
4.5% |
0.0% |
Pasep and Cofins charged on finance income |
-49 |
-49 |
-37 |
- |
32.4% |
Gains on financial instruments - Swap |
102 |
0 |
100 |
- |
2.0% |
Exchange |
0 |
197 |
10 |
-100.0% |
-100.0% |
Others |
81 |
91 |
60 |
-11.0% |
35.0% |
|
345 |
512 |
412 |
-32.6% |
-16.3% |
|
|
|
|
|
|
FINANCE EXPENSES |
|
|
|
|
|
Costs of loans and financings |
279 |
233 |
234 |
19.7% |
19.2% |
Foreign exchange variations |
143 |
0 |
169 |
- |
-15.4% |
Monetary updating – loans and financings |
26 |
22 |
0 |
18.2% |
- |
Charges and monetary updating on post-retirement obligation |
3 |
6 |
4 |
-50.0% |
-25.0% |
Negative effect on financial instruments - Hedge |
0 |
150 |
0 |
-100.0% |
- |
Monetary updating on PIS/Pasep and Cofins taxes credits |
26 |
16 |
49 |
62.5% |
-46.9% |
Others |
|
|
|
|
|
|
560 |
472 |
521 |
- |
7.5% |
|
|
|
|
|
|
NET FINANCE INCOME (EXPENSES) |
-215 |
40 |
-109 |
- |
- |
Statement of Results |
3Q23 |
2Q23 |
3Q22 |
chg. % |
chg. % |
(R$ million) |
|
|
|
3Q/2Q |
3Q/3Q |
Net Revenue |
9,427 |
8,820 |
9,223 |
6.9% |
2.2% |
Operating Expenses |
7,803 |
7,313 |
7,978 |
6.7% |
-2.2% |
EBIT |
1,624 |
1,507 |
1,245 |
7.8% |
30.4% |
Equity gain (loss) in subsidiaries |
71 |
69 |
247 |
2.9% |
-71.3% |
Result of business combination |
0 |
0 |
8 |
- |
- |
EBITDA |
2,011 |
1,879 |
1,799 |
7.0% |
11.8% |
Financial Result |
-215 |
40 |
-109 |
- |
- |
Provision for Income Taxes, Social Cont & Deferred Income Tax |
-242 |
-370 |
-210 |
- |
- |
Net profit for the period |
1,238 |
1,245 |
1,182 |
-0.6% |
4.7% |
COMPANHIA ENERGÉTICA DE MINAS GERAIS S.A. | 42 | |
Cash Flow Statement |
9M23 |
9M22 |
(R$ million) |
|
|
Cash at beginning of period |
1,441 |
825 |
Cash generated by operations |
4767 |
5571.04 |
Net income for the period from going concern operations |
3,881 |
2,687 |
Tributos compensáveis |
869 |
977 |
Depreciation and amortization |
923 |
870 |
CVA and other financial components |
63 |
1368 |
Equity gain (loss) in subsidiaries |
-293 |
-768.44 |
Provisions (reversals) for operational losses |
407 |
247 |
Deferred income and social contribution taxes |
223 |
-808.52 |
Refund of PIS/Pasep and Cofins credits to consumers |
-1569 |
-1642 |
Dividends receivable |
279 |
480 |
Interest paid on loans and financings |
-521 |
-538 |
Net gain on derivative instruments at fair value through profit or loss |
60 |
302 |
Interest and monetary variation |
-159 |
-174 |
Escrow deposits |
35 |
-35 |
Others |
569 |
2606 |
Investment activity |
-4155 |
-3169 |
Securities - Financial Investment |
66 |
-836 |
Financial assets |
30 |
6 |
Fixed and Intangible assets/distribution and gas infrastructure |
-4251 |
-2339 |
Financing activities |
304 |
-1236 |
Lease payments |
-52 |
-53 |
Payments of loans and financings |
-719 |
-1136 |
Interest on Equity, and dividends |
-912 |
-1035 |
Proceeds from Loans, financings and debentures |
1987 |
988 |
Cash at end of period |
2,356 |
1,991 |
COMPANHIA ENERGÉTICA DE MINAS GERAIS S.A. | 43 | |
|
9M23 |
9M22 |
BALANCE SHEETS - ASSETS |
|
|
(R$ million) |
|
|
CURRENT |
|
|
Cash and cash equivalents |
2,356 |
1,991 |
Marketable securities |
1,812 |
2,779 |
Customers, traders, concession holders and Transport of energy |
4,993 |
4,642 |
Concession financial assets |
835 |
1,266 |
Concession contract assets |
832 |
704 |
Tax offsetable |
803 |
1,500 |
Income tax and Social Contribution tax recoverable |
683 |
799 |
Dividends receivable |
69 |
71 |
Public lighting contribution |
240 |
201 |
Refund tariff subsidies |
196 |
97 |
Other credits |
692 |
656 |
Assets classified as held for sale |
408 |
0 |
TOTAL CURRENT |
13,919 |
14,706 |
NON-CURRENT |
|
|
Securities |
0 |
134 |
Consumers and traders |
45 |
46 |
Tax offsetable |
1,263 |
1,672 |
Income tax and Social Contribution tax recoverable |
223 |
294 |
Deferred income tax and Social Contribution tax |
2,963 |
3,117 |
Escrow deposits in legal actions |
1,232 |
1,247 |
Derivative financial instruments – Swaps |
379 |
744 |
Accounts receivable from the State of Minas Gerais |
13 |
13 |
Financial assets of the concession |
5,621 |
4,376 |
Contractual assets |
7,410 |
6,568 |
Investments |
4,798 |
5,373 |
Property, plant and equipment |
2,958 |
2,405 |
Intangible assets |
14,865 |
13,524 |
Leasing – rights of use |
376 |
221 |
Other credits |
99 |
74 |
TOTAL NON-CURRENT |
42,245 |
39,808 |
|
|
|
TOTAL ASSETS |
56,164 |
54,514 |
COMPANHIA ENERGÉTICA DE MINAS GERAIS S.A. | 44 | |
BALANCE SHEETS LIABILITIES AND SHAREHOLDERS' EQUITY |
9M23 |
9M22 |
(R$ million) |
|
|
CURRENT |
|
|
Suppliers |
2,783 |
2,740 |
Regulatory charges |
531 |
540 |
Profit sharing |
121 |
125 |
Taxes |
547 |
431 |
Income tax and Social Contribution tax |
78 |
260 |
Interest on Equity, and dividends, payable |
2102 |
1945 |
Loans and financings |
1162 |
1189 |
Payroll and related charges |
247 |
261 |
Public Lighting Contribution |
384 |
290 |
Post-retirement liabilities |
374 |
375 |
Accounts payable related to energy generated by consumers |
608 |
455 |
PIS/Pasep and Cofins taxes to be reimbursed to customers |
1193 |
1873 |
Derivative financial instruments |
41 |
92 |
Derivative financial instruments - options |
0 |
654 |
Leasing operations |
76 |
30 |
Other obligations |
469 |
312 |
|
|
|
TOTAL CURRENT |
10,716 |
11,572 |
|
|
|
NON-CURRENT |
|
|
Regulatory charges |
36 |
67 |
Loans and financings |
10,944 |
10,180 |
Income tax and Social Contribution tax |
362 |
364 |
Deferred Income tax and Social Contribution tax |
1018 |
810 |
Provisions |
2170 |
2012 |
Post-retirement liabilities |
5325 |
5984 |
PASEP / COFINS to be returned to consumers |
634 |
1724 |
Leasing operations |
333 |
215 |
Others |
193 |
507 |
TOTAL NON-CURRENT |
21,015 |
21,863 |
TOTAL LIABILITIES |
31,731 |
33,435 |
|
|
|
TOTAL EQUITY |
|
|
Share capital |
11,007 |
11,007 |
Capital reserves |
2,249 |
2,250 |
Profit reserves |
10,395 |
8,408 |
Equity valuation adjustments |
-1,837 |
-2,218 |
Profit reserves |
2,613 |
1,627 |
NON-CONTROLLING INTERESTS |
24,427 |
21,074 |
Non-Controlling Interests |
6 |
5 |
TOTAL EQUITY |
24,433 |
21,079 |
TOTAL LIABILITIES AND EQUITY |
56,164 |
54,514 |
COMPANHIA ENERGÉTICA DE MINAS GERAIS S.A. | 45 | |
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 expectations are based
on the present assumptions and analyses from the point of view of our management, in accordance with their experience and other factors
such as the macroeconomic environment, market conditions in the electricity sector, and expected future results, many of which are not
under our control.
Important factors that could
lead to significant differences between actual results and the projections about future events or results include: Cemig’s business
strategy, Brazilian and international economic conditions, technology, our financial strategy, changes in the electricity sector, hydrological
conditions, conditions in the financial and energy markets, uncertainty on our results from future operations, plans and objectives, and
other factors. Due to these and other factors, our results may differ significantly from those indicated in or implied by such statements.
The information and opinions
in this document should not be understood as a recommendation to potential investors, and no investment decision should be based on the
veracity, currentness or completeness of this information or these opinions. None of our staff nor any party related to any of them or
their representatives shall have any responsibility for any losses that may arise as a result of use of the content of this presentation.
To evaluate the risks and
uncertainties as they relate to Cemig, and to obtain additional information about factors that could give rise to different results from
those estimated by Cemig, please consult the section Risk Factors included in (i) the Reference Form filed with the Brazilian
Securities Commission (CVM) and (ii) the 20-F Form filed with the U.S. Securities and Exchange Commission (SEC).
Financial amounts are in
R$ million (R$ mn) unless otherwise stated.
Financial data reflect the
adoption of IFRS.
COMPANHIA ENERGÉTICA DE MINAS GERAIS S.A. | 46 | |
COMPANHIA ENERGÉTICA DE MINAS GERAIS S.A. | 47 | |
| 5. | Notice to the Market dated November 3, 2023 – Clarification about Official Letter 1240/2023-SLS |
COMPANHIA ENERGÉTICA DE MINAS GERAIS - CEMIG
PUBLICLY-HELD COMPANY
Corporate Taxpayer’s ID (CNPJ): 17.155.730/0001-64
Company Registry (NIRE): 31.300.040.127
NOTICE TO THE MARKET
Request for clarification on an atypical fluctuation
On
November 1, 2023, the Company received Official Letter CVM B3 1240/2023-SLS,
as follows:
B3 Questioning
COMPANHIA ENERGÉTICA DE MINAS GERAIS - CEMIG
Attn.: Mr. Leonardo George de Magalhães
Investor Relations Officer
Ref: Request for clarification
on an atypical fluctuation
Dear Sir/Madam,
Given the latest fluctuations in the price of the company’s securities, the number of trades, and the trading volume, as shown below,
we hereby request you to inform us, by 11/03/2023, if you are aware of any fact that can justify these fluctuations.
Preferred Shares |
Prices (R$ per share) |
Date |
Opening |
Minimum |
Maximum |
Average |
Close |
Fluctuation % |
# Trades |
Amount |
Volume (R$) |
10/19/2023 |
11.66 |
11.61 |
11.92 |
11.79 |
11.78 |
0.86 |
14,838 |
9,541,600 |
112,451,306.00 |
10/20/2023 |
11.71 |
11.63 |
11.83 |
11.78 |
11.81 |
0.25 |
13,751 |
20,546,400 |
242,024,918.00 |
10/23/2023 |
11.81 |
11.75 |
11.99 |
11.92 |
11.91 |
0.85 |
10,033 |
6,187,900 |
73,753,071.00 |
10/24/2023 |
12.04 |
11.85 |
12.04 |
11.93 |
11.93 |
0.17 |
10,728 |
4,901,000 |
58,459,210.00 |
10/25/2023 |
11.93 |
11.85 |
11.99 |
11.90 |
11.85 |
-0.67 |
11,929 |
5,503,800 |
65,498,990.00 |
10/26/2023 |
11.95 |
11.90 |
12.18 |
12.11 |
12.16 |
2.62 |
12,803 |
7,682,800 |
93,026,386.00 |
10/27/2023 |
12.21 |
11.89 |
12.27 |
12.02 |
11.93 |
-1.89 |
11,748 |
6,954,900 |
83,572,418.00 |
10/30/2023 |
11.95 |
11.73 |
12.07 |
11.87 |
11.77 |
-1.34 |
13,865 |
8,387,800 |
99,562,691.00 |
10/31/2023 |
11.77 |
11.66 |
11.84 |
11.73 |
11.74 |
-0.25 |
9,803 |
5,916,500 |
69,406,150.00 |
11/01/2023* |
11.82 |
11.81 |
12.35 |
12.16 |
12.30 |
4.77 |
29,605 |
23,145,700 |
281,475,263.00 |
* Last updated at 5:57 p.m.
CEMIG’s
Answer
Dear Ms. Ana Lucia Pereira,
Companhia Energética de Minas Gerais - CEMIG (“Cemig”
or “Company”), in response to the Official Letter 1240/2023-SLS of November 01, 2023, through which you request information
on any fact known by the Company about the latest fluctuations recorded in its shares, the increase in the number of trades, and the quantity
traded, according to the tables above, clarifies that it is not aware of any fact arising from its activities or business that could cause
fluctuations, which has not been properly disclosed by the Company under the specific regulations, especially CVM Resolution 44/2021.
The Company reiterates its commitment to transparency
and the best market disclosure practices.
Belo Horizonte, November 03, 2023.
Leonardo George de Magalhães
Chief Financial and Investor Relations Officer
| 6. | Material Fact dated November 22, 2023 – Conclusion of the sale of the equity interest held in Retiro Baixo Energética |
COMPANHIA ENERGÉTICA DE MINAS GERAIS - CEMIG
PUBLICLY-HELD
COMPANY
Corporate Taxpayer’s ID (CNPJ): 17.155.730/0001-64
Company Registry (NIRE): 31300040127
CEMIG GERAÇÃO E TRANSMISSÃO S.A.
PUBLICLY-HELD COMPANY
Corporate Taxpayer’s ID (CNPJ): 06.981.176/0001-58
Company Registry (NIRE): 31300020550
MATERIAL FACT
Conclusion of the sale of the equity interest held in Retiro
Baixo Energética
COMPANHIA ENERGÉTICA DE MINAS GERAIS
– CEMIG (“CEMIG” or “Company”), a publicly-held company with shares traded on the stock exchanges
of São Paulo, New York, and Madrid, pursuant to CVM Resolution 44/2021, of August 23, 2021, hereby informs to the
Brazilian Securities and Exchange Commission (CVM), B3 S.A. – Brasil, Bolsa, Balcão (“B3”) and the market
in general that, further to the Material Fact disclosed on April 14, 2023, that CEMIG GERAÇÃO E TRANSMISSÃO
S.A. (“CEMIG GT”), a wholly-owned subsidiary of Cemig, concluded, on this date, the sale of its direct equity
interest of 49.9% in the share capital of Retiro Baixo Energética S.A. (“Retiro Baixo”) to Furnas Centrais
Elétricas S.A. (“Furnas”).
The transaction totaled R$223.4 million, adjusted for
100% of the CDI from December 31, 2022. Dividends of R$5.9 million received on June 28, 2023 were deducted from this amount, resulting
in the net receipt of the closing amount of R$217.5 million.
The sale is in line with the Company’s Strategic
Planning, which provides for the divestment of minority interests of Grupo Cemig.
Cemig reaffirms its commitment to keeping shareholders,
the market in general, and other stakeholders duly and timely informed about the developments of the sale, according to the applicable
regulation, and in compliance with the restrictions outlined in CVM rules and other applicable laws.
Belo Horizonte, November 22, 2023.
Leonardo George de Magalhães
Chief Financial and Investor Relations Officer
| 7. | Notice to the Market dated November 22, 2023 – Clarifications about Official Letter 350/2023/CVM/SEP/GEA-1 |
COMPANHIA ENERGÉTICA DE MINAS GERAIS - CEMIG
PUBLICLY-HELD COMPANY
Corporate Taxpayer’s ID (CNPJ): 17.155.730/0001-64
Company Registry (NIRE): 31.300.040.127
NOTICE TO THE MARKET
Clarifications about Official Letter 350/2023/CVM/SEP/GEA-1
CVM Questioning
Cia. Energética de Minas Gerais - CEMIG
Attn.: Mr. Leonardo George de Magalhães
Investor Relations Officer.
Ref: Request for clarification on a news article
Dear Director,
1.
In response to the news article published by Folha de São
Paulo in its Market section, on November 18, 2023, under the headline: “Pacheco articulates the federalization of Cemig to reduce
the debt of Minas Gerais", containing the following statements:
The president of the Senate, Rodrigo Pacheco
(PSD-MG), articulates a proposal for the federalization of state-owned companies in Minas Gerais, including Cemig (energy), as a way of
reducing the state government's debt with the federal government, which is already approaching R$160 billion.
[...]
The topic has already been discussed in two
meetings with President Luiz Inácio Lula da Silva (PT). The Minister of Mines and Energy, Alexandre Silveira, a former state senator,
is also participating in the negotiations.
According to Pacheco's interlocutors, the president
of the Senate should soon present a draft to formalize the proposal to Lula.
2. Because of the above, we request that you clarify whether
the news article is true and, if so, explain why you believe it is not a material fact, and comment on other information deemed as important
on the matter.
CEMIG’s Answer
In response to Official Letter 350/2023/CVM/SEP/GEA-1,
Companhia Energética de Minas Gerais - CEMIG (“Cemig” or “Company”) clarifies that:
The news article published by Folha de São Paulo,
on November 18, 2023, under the headline “Pacheco articulates the federalization of Cemig to reduce the debt of Minas Gerais",
is an investigation being carried out by the press vehicle itself.
Cemig is not participating in this process, in any way,
and, if ongoing, it is being conducted without the Company’s knowledge as it is unaware of any fact beyond what is being disclosed
by the media.
The Company states there is no new information to date,
according to CVM Resolution 44/21, that justifies the disclosure of a Material Act or Fact on the matter.
Cemig reiterates its commitment to transparency and the
best market disclosure practices.
Belo Horizonte, November 22, 2023.
Leonardo George de Magalhães
Chief Financial and Investor Relations Officer
| 8. | Notice to the Market dated October 20, 2023 – Clarification about Official Letter 313/2023 |
COMPANHIA ENERGÉTICA DE MINAS GERAIS - CEMIG
PUBLICLY HELD COMPANY
Corporate Taxpayer’s ID (CNPJ): 17.155.730/0001-64
Company Registry (NIRE): 31.300.040.127
NOTICE TO THE MARKET
Clarifications about Official Letter 313/2023/CVM/SEP/GEA-1
CVM Questioning
Mr.
Leonardo George de Magalhães
Investor Relations Officer of
CIA ENERGETICA DE MINAS GERAIS - CEMIG
Avenida Barbacena, 1200, 18º Andar/B1
Belo Horizonte - MG
CEP: 30190-131
Email: ri@cemig.com.br
c/c: emissores@b3.com.br
Subject: Request for clarification on the news article
Dear Director,
1. In response to the news article published electronically
by Folha de São Paulo in its market section on October 18, 2021, under the headline: "Zema wants to turn Cemig into a private
company with no controlling shareholder", with the following statements:
The privatization model proposed by Governor
Romeu Zema (Novo) for Cemig (Companhia Energética de Minas Gerais) will leave the company without a controlling shareholder. The
idea is to turn the company into a corporation.
The state is expected to act as a reference
shareholder with veto power over decisions if it uses the so-called golden share.
The plan was presented by Zema to the lawmakers
of his base on Tuesday (17) during a cocktail event at the Palácio da Liberdade, the former government headquarters. The privatization
needs to be approved by the State Legislature.
According to the government, preferred shares,
which entitle the holder to dividends, will be converted into common shares. Thus, 100% of the company's shares will be common shares.
These are the shares that give their holders the right to vote on corporate decisions.
[...]
The state will retain 17.04% of the total Cemig
shares, which gives it control over the state-owned company. However, with the conversion of shares and under the new management system,
it will no longer be the main shareholder.
2. Because of the above, we request that you clarify whether
the news article is true and, if so, explain why you believe it is not a material fact, and comment on other information deemed as important
on the matter.
3. It is worth noting that according to article 3 of CVM
Resolution 44/21, the Investor Relations Officer is responsible for disclosing and informing the CVM and, if applicable, the stock exchange
and the organized over-the-counter market entity where the Company’s securities are traded, any material act or fact occurred or
related to its business, as well as ensure its wide and immediate communication, simultaneously in all the markets in which such securities
are traded.
CEMIG’s Answer
Dear Srs.,
In response to Official Letter 313/2023/CVM/SEP/GEA-1,
Companhia Energética de Minas Gerais - CEMIG (“Cemig” or “Company”) clarifies that:
The news article published electronically by Folha de
São Paulo in its market section on October 18, 2021, under the headline: Zema wants to turn Cemig into a private company without
a controlling shareholder", was an investigation, according to the news outlet itself, that Governor Romeu Zema announced a plan
to lawmakers who need to approve the privatization.
It is worth noting the context of the news article involves
the interest of the Minas Gerais State Government, which represents the Company’s controlling shareholder, in line with the Notice
to the Market already published on August 21, 2023.
It consists of an exclusive process under the authority
of the controlling shareholder and other external agents, according to the State of Minas Gerais legislation.
The Company states that there is no new information to
date, according to CVM Resolution 44/21, to justify the disclosure of a Material Act or Fact about the matter.
The Company reiterates its commitment to transparency
and the best market disclosure practices.
Belo Horizonte, October 20, 2023.
Leonardo George de Magalhães
Chief Financial and Investor Relations Officer
| 9. | Notice to the Market dated October 19, 2023 – Fitch reaffirms CEMIG’s ratings |
COMPANHIA ENERGÉTICA DE MINAS GERAIS - CEMIG
PUBLICLY-HELD COMPANY
Corporate Taxpayer’s ID (CNPJ): 17.155.730/0001-64
Company Registry (NIRE): 31.300.040.127
NOTICE TO THE MARKET
Fitch reaffirms CEMIG’s ratings
COMPANHIA ENERGÉTICA
DE MINAS GERAIS – CEMIG (“Cemig or Company”),
a publicly-held company with shares traded on the stock exchanges of São Paulo, New York and Madrid, hereby informs the Brazilian
Securities and Exchange Commission – CVM, B3 S.A. – Brasil, Bolsa, Balcão (“B3”) and the market in general
that the credit rating agency Fitch Ratings (“Fitch”)
reaffirmed the corporate ratings of the Company and its wholly owned subsidiaries Cemig Distribuição S.A.
(CEMIG D) and Cemig Geração e Transmissão S.A. (CEMIG GT) as BB on a global scale and AA+ (bra) on
a national scale, with a stable outlook.
According to Fitch, the maintenance of the ratings reflects
Grupo Cemig’s solid and diversified asset base, robust financial profile and good operational performance in the Brazilian electric
energy sector.
For
more information, the credit rating agency’s report is available on the Company’s Investor Relations website https://ri.cemig.com.br/informacoes-financeiras/ratings.
Belo Horizonte, October 19, 2023.
Leonardo George de Magalhães
Chief Financial and Investor Relations Officer
| 10. | Notice to the Market dated October 19, 2023 – Clarification about Official Letter 1.207/2023 - SLS – CEMIG, dated October
18, 2023 |
COMPANHIA ENERGÉTICA DE MINAS GERAIS - CEMIG
PUBLICLY-HELD COMPANY
Corporate Taxpayer’s ID (CNPJ): 17.155.730/0001-64
Company Registry (NIRE): 31.300.040.127
NOTICE TO THE MARKET
Clarification about Official Letter 1.207/2023
- SLS – CEMIG, dated October 18, 2023.
B3 Questioning
COMPANHIA ENERGÉTICA DE MINAS GERAIS - CEMIG
FAO Mr. Leonardo George de Magalhães
Investor Relations Officer.
Re: Request for clarification on a news article published in the press
Dear Sirs,
The news article published by the Valor Econômico newspaper on October
18, 2023, entitled “Cemig’s privatization model predicts that the company will not have a definite control,” states,
among others, that the proposal of the Minas Gerais State Government:
| 1. | consists of converting all Cemig shares into common shares; |
| 2. | includes the creation of the “golden share,”
which gives the State veto power over certain decisions and ensures that no shareholder will have more voting rights than the State. |
We hereby request for clarification on the aforementioned items by October
19, 2023, with your confirmation or refutation, as well as other information considered to be important.
CEMIG’s Answer
Dear Ms. Ana Lucia da Costa Pereira,
In response to Official Letter 1.207/2023 –
SLS, dated October 18, 2023, Companhia Energética de Minas Gerais - CEMIG (“Cemig” or “Company”) clarifies
that:
The news article published by the Valor Econômico
newspaper on October 18, 2023, entitled “Cemig’s privatization model predicts that the company will not have a definite control,”
was an assessment, according to the newspaper itself, presented by Governor Romeu Zema to state congresspeople of his support base.
It is worth noting the context of the news article
that involves the interest of the Minas Gerais State Government, which represents the Company’s controlling shareholder, in line
with the Notice to the Market already published on August 21, 2023.
It consists of an exclusive process under the authority
of the controlling shareholder and other external agents, according to legislation of the State of Minas Gerais.
The Company states that there is no new information
to date, according to CVM Resolution 44/21, to justify the disclosure of a Material Act or Fact about the matter.
The Company reiterates its commitment to transparency
and the best market disclosure practices.
Belo Horizonte, October 19, 2023.
Leonardo George de Magalhães
Chief Financial and Investor Relations Officer
| 11. | Notice to the Market dated November 22, 2023 – Cemig joins the UN Global Compact's 100% Transparency Movement |
COMPANHIA ENERGÉTICA DE MINAS GERAIS - CEMIG
PUBLICLY-HELD COMPANY
Corporate Taxpayer’s ID (CNPJ): 17.155.730/0001-64
Company Registry (NIRE): 31.300.040.127
NOTICE TO THE MARKET
Cemig joins the UN Global Compact's 100% Transparency
Movement
COMPANHIA ENERGÉTICA DE MINAS GERAIS –
CEMIG (“CEMIG” or “Company”), a publicly held company with shares traded in the stock exchanges of São
Paulo, New York, and Madrid, hereby informs, to the Brazilian Securities and Exchange Commission (CVM), B3 S.A. – Brasil, Bolsa,
Balcão (“B3”), and the market in general, that it has become a signatory of the UN Global Compact's 100% Transparency
Movement. The initiative is aimed at advancing in the Sustainable Development Goal 16 (SDG16), to combat all forms of corruption. This
document establishes targets and actions to engage companies in committing to the subject.
By joining this 100% Transparency Movement, the Company
commits to moving towards the following goals:
·
100% transparency in interactions with the Public Administration;
·
100% integrity in Senior Management Remuneration;
·
100% of the high-risk value chain trained in integrity;
·
100% transparency in Compliance and Governance structures;
·
100% transparency on whistleblowing channels.
The Movement has established the year of 2030 as the deadline
for fully achieving the goals. Cemig has been advancing in meeting the requirements and plans to deliver the results prior to the established
deadline.
With this initiative, Cemig publicly expresses the Company's
decision to strengthen integrity and transparency throughout the value chain.
Belo Horizonte, November 22, 2023.
Leonardo George de Magalhães
Chief Finance and Investor Relations Officer
| 12. | Material Fact dated November 23, 2023 - Official Letter Received from the Controlling Shareholder |
COMPANHIA ENERGÉTICA DE MINAS GERAIS - CEMIG
PUBLICLY-HELD COMPANY
Corporate Taxpayer’s ID (CNPJ): 17.155.730/0001-64
Company Registry (NIRE): 31300040127
MATERIAL FACT
Official Letter Received from the Controlling Shareholder
COMPANHIA ENERGÉTICA DE MINAS GERAIS –
CEMIG (“CEMIG” or “Company”), a publicly held company with shares traded on the stock exchanges of
São Paulo, New York, and Madrid, hereby informs, under CVM Resolution 44/2021, of August 23, 2021, the Brazilian Securities and
Exchange Commission (CVM), B3 S.A. – Brasil, Bolsa, Balcão (“B3”), and the market in general that it received,
today, the Official Letter SECGERAL/GAB GOVERNADOR nº. 241/2023, from the State of Minas Gerais, the Company’s controlling
shareholder, with the following content:
“Your
Excellencies Chairmen of the Boards of Directors,
With
my cordial greetings, I inform you that the State of Minas Gerais has been committed in solving the situation of Minas Gerais' contractual
public debt with the Federal Government, which is projected to reach R$161 billion on December 31, 2023.
Within this
context, I inform you that, on November 22, 2023, in a meeting with the Presidents of the National Congress and the Legislative House
of Minas Gerais, I received the attached official letter (Official Letter 1174.2023-PRESID - 77396758), which presents alternative
proposals for the settlement, treatment, and evolution of said debt (Official Letters 1172.2023-PRESID - 77396860, 77396894, 77396932 and 77396885). Also,
on the same date, I met with the Ministry of Finance and, given the discussions, we issued the Official Letter SECGERAL/GAB GOVERNADOR
nº. 240/2023 (77393438).
I emphasize
that the alternatives presented will be subject to detailed analyses by technicians of both the Federal Government and the State Government,
which is why no public manifestation or acceptance has been issued by the State Government regarding the possible federalization of state-owned
companies with shares listed on the Stock Exchange.
In this sense,
I am forwarding this Official Letter for your knowledge and to be verified if it should be disclosed as a material act or fact, pursuant
to CVM Resolution 44/2021.
I reiterate
my admiration and respect and put myself at your disposal.
Sincerely,
Romeu
Zema Neto
Governor of the State of Minas Gerais”
Cemig reaffirms its commitment to keeping shareholders,
the market in general, and other stakeholders duly and timely informed on the developments of this matter.
Belo Horizonte, November 23, 2023.
Leonardo George de Magalhães
Chief Financial and Investor Relations Officer
| 13. | Material Fact dated November 24, 2023 - Cemig GT expresses an interest in extending the concessions of Emborcação and
Nova Ponte |
COMPANHIA ENERGÉTICA DE MINAS GERAIS - CEMIG
PUBLICLY-HELD
COMPANY
Corporate Taxpayer’s ID (CNPJ): 17.155.730/0001-64
Company Registry (NIRE): 31300040127
CEMIG GERAÇÃO E TRANSMISSÃO S.A.
PUBLICLY-HELD COMPANY
Corporate Taxpayer’s ID (CNPJ): 06.981.176/0001-58
Company Registry (NIRE): 31300020550
MATERIAL FACT
Cemig GT expresses an interest in extending the concessions
of Emborcação and Nova Ponte
COMPANHIA ENERGÉTICA DE MINAS GERAIS –
CEMIG (“CEMIG”
or “Company”), a publicly-held company with shares traded on the stock exchanges of
São Paulo, New York and Madrid, pursuant to CVM Resolution 44/2021, of August 23, 2021, hereby informs the Brazilian Securities
and Exchange Commission (CVM), B3 S.A. – Brasil, Bolsa, Balcão (“B3”) and the market in general that CEMIG
GERAÇÃO E TRANSMISSÃO S.A. (“Cemig GT”), a publicly-held company and wholly-owned subsidiary of CEMIG,
to ensure its right to request for a new concession award, as per articles 26, 27, 28 and 30 of Federal Law 9,074/1995 and complying with
the advance period regulated in article 1º of Federal Decree 9,271/2018, filed, on November 24, 2023, its “Interest”
in the extension of the concessions of Theodomiro Carneiro Santiago HPP (“Emborcação HPP”) and Nova Ponte HPP
(“Nova Ponte HPP”) (“Plants”), through the “Transfer of Shareholding Control” of the Plants. CEMIG
GT holds the concessions of the Plants, pursuant to Concession Agreement No. 07/1997. The plants have an installed capacity of 1,192 MW
and 510 MW, respectively. The concession agreements of the Emborcação and Nova Ponte HPPs will end on May 26, 2027 and
August 12, 2027, respectively.
With its Interest, Cemig GT reiterates that it solely
aims to ensure its right to potentially extend Concession Agreement No. 07/1997 for up to 30 (thirty) years, at the discretion of the
granting authority, considering the option of transferring direct or indirect shareholding control pursuant to the legislation in force,
which also has assumptions pending definition by the Ministry of Mines and Energy - MME.
MME will disclose all the conditions for the extension
of the concession, which shall be submitted for resolution of the Company’s governance bodies in due course. Additionally, any actual
decision regarding the topic is subject to resolution of the Company’s shareholders and the analysis of the legislative branch of
the state government, in line with what was already published in the Notice to the Market dated August 21, 2023.
Lastly, the Company clarifies that such Interest does
not suspend the analysis of legal alternatives in progress for the extension of the expiring concessions.
Belo Horizonte, November 24, 2023.
Leonardo George de Magalhães
Chief Financial and Investor Relations Officer
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