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

Strategic positioning and business overview

• Operates Brazil's largest integrated utility with 100% renewable generation and presence in 26 states, serving over 9.3 million customers and managing a grid the size of Spain.

• Holds leading market positions in energy trading, distribution, and natural gas, with a 15% share in the free market and over 10,273 client consumer units.

• Shareholder structure is diversified, with strong state participation and over 460,000 shareholders globally; listed on major stock exchanges.

• Concessions for distribution, transmission, and gas extended up to 2053, ensuring long-term operational stability.

• Recognized for best-in-class corporate governance and a solid dividend policy with a minimum 50% payout.

Financial performance and capital allocation

• EBITDA reached R$8,078 million in 2023, up 23.8% year-over-year, with net income rising 40.9% to R$5,669 million in 9M24.

• Maintains a low-risk, diversified business portfolio with most revenues inflation-protected.

• Dividend yield of 12.4% in 2023, with R$3,124 million distributed; among the highest dividend payers in the sector.

• Net debt stands at R$6.9 billion, with an average tenure of 4.3 years and strong investment-grade ratings from Fitch, S&P, and Moody’s.

• Asset sales since 2019 generated R$5.6 billion in cash, optimizing capital allocation and reducing leverage.

Investment plan and operational execution

• Largest investment plan in history: R$35.6 billion for 2024–2028, focusing on Minas Gerais in distribution (R$23bn), transmission (R$3.8bn), gas (R$1.8bn), generation (R$2.1bn), and innovation.

• 9M24 investments totaled R$4,044 million, with 65.1% of 2024’s plan already executed, mainly in distribution modernization.

• Programs like Mais Energia and Minas Three-phase aim to expand substations, increase power availability, and improve rural networks.

• Distributed generation is a key growth area, with a target of R$3.3 billion investment by 2028 and 540MWp added capacity.

• Gasmig plans R$1.8 billion investment, expanding the network by 1,331 km and adding 105,000 new clients by 2028.