Companhia Energética de Minas Gerais - CEMIG (CMIG4) Investor Presentation summary

Business overview and strategy

• Operates across distribution, generation, trading, transmission, and natural gas, with a focus on regulated businesses and infrastructure investments in Brazil, especially Minas Gerais.

• Maintains a 100% clean and renewable energy portfolio, with leadership in hydro, wind, and solar power.

• Strategic priorities include network modernization, operational efficiency, customer focus, risk mitigation, innovation, and sustainable operations.

• Plans to invest over R$39 billion between 2025 and 2029, mainly in distribution, generation, and transmission.

• Visionary management team drives disciplined capital allocation, portfolio optimization, and shareholder value creation.

Financial performance and fundamentals

• Consistent EBITDA and net profit growth, with 2023 EBITDA at R$11.07 billion and net profit at R$7.0 billion.

• Maintains low leverage, with a net debt/EBITDA ratio of 0.89 in 1Q25 and AAA Fitch credit rating.

• Strong recurring cash flows support high dividend payouts, with a 50% net profit payout policy.

• Dividend yields have ranged from 5.2% to 15.1% over recent years.

• Stock has significantly outperformed sector and market indices since 2018.

Operational highlights

• Serves over 9.4 million customers across 774 municipalities, operating the largest electricity distribution network in South America.

• Distribution network modernization and expansion are ongoing, with substantial CAPEX focused on Minas Gerais.

• Distributed generation capacity is expanding, targeting leadership in Minas Gerais solar farms with R$2.6 billion investment by 2029.

• Gas business aims to add 105,000 new clients and build 1,331 km of network by 2029, investing R$1.6 billion.

• Transmission segment manages 5,060 km of lines and 41 substations, with R$4.3 billion investment planned through 2029.