Companhia Energetica de Minas Gerais CEMIG : Earnings Releases 2Q22

RESULTS

Video conference webcast

August 16 (Tuesday)

3:00 p.m. (Brasília time)

Link - CEMIG - WEBCAST

2Q22 HEADLINES

Cemig's 2Q22 results were boosted by its focus on	Gasmig reported 2Q Ebitda of R$ 160 million in 2Q22
operational efficiency, its successful trading strategy,	and profit of R$ 83 million, even with the very strong
and a higher volume of energy sold:	reduction in dispatching of gas-fired thermoelectric
• Adjusted Ebitda was R$ 1.81 billion - up 37% YoY;	generation plants.
and	Renova: In line with the strategic planning, disposal of
• Adjusted net profit was R$ 1.14 billion - up 62.7%	the equity interest in, and credits receivable from,
Renova was completed - resulting in a positive effect
YoY.	of R$ 60 million on Ebitda, and R$ 377 million on profit.
Cemig GT reports 2Q22 Ebitda of R$ 863 million, and	An amount of Financial assets comprising
adjusted Ebitda of R$ 804 million - 87.0% higher than	reimbursements receivable for generation assets was
in 2Q21. The trading strategy, and higher margins,	written off, with a negative effect of R$ 113 million on
were important factors in this result, which was	profit, and R$ 172 million on Ebitda.
achieved in spite of transfer of part of the trading
activity from Cemig GT to Cemig Holding.	Equity income was higher, at R$ 336 million in 2Q22,
Operational efficiency: Cemig D reports adjusted	compared to R$ 33 million in 2Q21. The main factor in
the improvement was reversal of a provision of R$ 171
Ebitda of R$ 602 million, 1.8% higher YoY, even with (i)	million for losses in Santo Antônio.
the current inflationary pressures, and (ii) the
postponement of the annual tariff adjustment, which	Exchange rate effects: The increase in the US dollar
cameinto effect only on June 22.	exchange rate had significant negative impacts, of
There was a negative impact of R$ 1.33 billion on	R$ 445 million in Net financial expenses, and R$ 294
million in 2Q Net profit. In 2Q21 was positive by R$617
profit,and R$1.66 billion on Ebitda, resulting from the	million in the financial result and R$407 million in net
effects of Law14385/22, which regulates passthrough	income
ofthe credits of PIS, Pasep and Cofins taxes to
consumers.

Contents
Consolidated results - 2Q22.............................................................................................................................................................................................................................	5
Cemig's consolidated electricity market ..........................................................................................................................................................................................................	8
Performance by company.................................................................................................................................................................................................................................	9
Cemig D .....................................................................................................................................................................................................................................	9
Billed electricity market............................................................................................................................................................................................................................	9
Client base ..............................................................................................................................................................................................................................................	10
Performance by sector ...........................................................................................................................................................................................................................	11
The annual Tariff Adjustment.................................................................................................................................................................................................................	11
Quality indicators - DEC and FEC ...........................................................................................................................................................................................................	11
Combating default ..................................................................................................................................................................................................................................	12
Energy losses ..........................................................................................................................................................................................................................................	13
Cemig GT / Holding Company ...................................................................................................................................................................................................	14
Electricity market....................................................................................................................................................................................................................................	14
Gasmig ....................................................................................................................................................................................................................................	15
Financial results .......................................................................................................................................................................................................................	16
Consolidated operational revenue .........................................................................................................................................................................................................	16
Operational costs and expenses.............................................................................................................................................................................................................	20
CONSOLIDATED EBITDA (IFRS and Adjusted) .............................................................................................................................................................................	24
CEMIG D - EBITDA ....................................................................................................................................................................................................................	25
Cemig GT - EBITDA...................................................................................................................................................................................................................	25
Finance income and expenses ..................................................................................................................................................................................................	27

Earnings Release - 2Q22

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Net profit.................................................................................................................................................................................................................................	28
Investments ............................................................................................................................................................................................................................................	29
Debt ........................................................................................................................................................................................................................................................	30
Covenants - Eurobonds............................................................................................................................................................................................................	32
Cemig's long term ratings.........................................................................................................................................................................................................	34
2Q22 ESG Performance Report ......................................................................................................................................................................................................................	35
Performance of Cemig's shares.................................................................................................................................................................................................	37
Generation plants ...................................................................................................................................................................................................................................	38
RAP - July 2022-June 2023 cycle ............................................................................................................................................................................................................	40
Complementary information ....................................................................................................................................................................................................	41
Cemig D...................................................................................................................................................................................................................................................	41
Cemig GT.................................................................................................................................................................................................................................................	43
Cemig Consolidated Tables.....................................................................................................................................................................................................................	45
Tables of adjustments.............................................................................................................................................................................................................................	53
Disclaimer................................................................................................................................................................................................................................	55

Earnings Release - 2Q22

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Consolidated results - 2Q22

	2Q22	2Q21	Change, %
Ebitda by company (R$ million)
Cemig D (IFRS)	-913.4	590.6	-
Cemig D Adjusted	601.4	590.6	1.8%
Cemig GT (IFRS)	862.8	1,698.9	-49.2%
Cemig GT Adjusted	803.7	429.7	87.0%
Gasmig (IFRS)	160.2	158.8	0.9%
Consolidated (IFRS)	353.7	2,590.2	-86.3%
Consolidated - Adjusted	1,809.1	1,320.3	37.0%

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