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4Q 2019 Results Cemig Reports 4Q19 Ebitda of R$ 993 Million

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4Q 2019 Results Cemig Reports 4Q19 Ebitda of R$ 993 Million 4Q 2019 RESULTS CEMIG REPORTS 4Q19 EBITDA OF R$ 993 MILLION Highlights of 4Q19: . Continuing improvement in Cemig D’s results in 4Q19. o 4Q19 net profit: R$ 393 million, vs. R$ 189mn in 4Q18 o 2019 net profit: R$ 1.64 billion (all-time record) . Total energy distributed practically flat in 4Q: o From 4Q18 to 4Q19: down 0.12% o From 2018 to 2019: up 0.88% . Non-recurring expenses in Cemig GT o R$ 71.7 million write-off for Igarapé thermal plant o R$ 32.1 million in obligations under investment contract (Aliança) o R$ 21.7 mn impairment at Volta do Rio wind farm. Indicators (GWh) 4Q19 4Q18 % 2019 2018 % Electricity sold (excl. 14,202 14,340 -0.97 55,045 55,555 -0.92 CCEE) – GWh Total energy carried 4,783 4,906 -2.50 19,351 19,286 0.34 Indicators (R$ ’000) 4Q19 4Q18 % 2019 2018 % Sales on CCEE 24,746 28,095 -11.92 431,994 217,218 98.88 Net debt 13,486,593 13,068,690 3.20 13,486,593 13,068,690 3.20 Gross revenue 9,518,421 8,966,628 6.15 37,726,177 34,577,851 9.11 Net revenue 6,389,549 5,471,966 16.77 25,390,306 22,266,217 14.03 Ebitda (IFRS) 993,364 988,646 0.48 4,376,087 3,780,925 15.74 Net profit 497,534 1,002,368 -50.36 3,127,398 1,700,099 83.95 Ebitda margin 15.55% 18.07% -2,52p.p. 17.24% 16.98% +0,25p.p. 1 Cem Conference call Publication of 4Q19 results Webcast and Conference call This Friday, March 20, 2020, at 11:00 a.m. (Brasília time) The transmission will have simultaneous translation in English: See it in webcast, at http://ri.cemig.com.br, or take part by conference call via: + 55 (11) 2188-0155 (1st option) or + 55 (11) 2188-0188 (2nd option) Password: CEMIG Playback of Video Webcast: Conference call – Playback: http://ri.cemig.com.br Tel: (+55-11) 2188-0400 Password: Click on the banner and download. CEMIG Português Available for 90 days. Available from 03/20 to 04/03/2020 Cemig Investor Relations http://ri.cemig.com.br/ [email protected] Tel.: +55 (31) 3506-5024 Fax: +55 (31) 3506-5025 Cemig’s Executive Investor Relations Team . Chief Finance and Investor Relations Officer Maurício Fernandes Leonardo Júnior . General Manager, Investor Relations Antônio Carlos Vélez Braga 2 Cem Summary CONFERENCE CALL ............................................................................................................................... 2 CEMIG INVESTOR RELATIONS .......................................................................................................... 2 CEMIG’S EXECUTIVE INVESTOR RELATIONS TEAM .................................................................. 2 SUMMARY ................................................................................................................................................ 3 DISCLAIMER............................................................................................................................................ 4 OUR SHARES ........................................................................................................................................... 5 CEMIG’S LONG-TERM RATINGS ........................................................................................................ 6 ADOPTION OF IFRS .............................................................................................................................. 7 PROFIT AND LOSS ACCOUNTS .......................................................................................................... 7 4Q19 RESULTS ....................................................................................................................................... 8 CEMIG’S CONSOLIDATED ELECTRICITY MARKET ..................................................................... 8 THE ELECTRICITY MARKET OF CEMIG D .................................................................................... 10 PHYSICAL TOTALS OF TRANSPORT AND DISTRIBUTION – MWH ..................................... 12 THE ELECTRICITY MARKET OF CEMIG GT ................................................................................. 12 SUPPLY QUALITY INDICATORS – DECI AND FECI .................................................................... 13 CONSOLIDATED OPERATIONAL REVENUE ................................................................................ 14 TAXES AND CHARGES REPORTED AS DEDUCTIONS FROM REVENUE .............................. 17 OPERATIONAL COSTS AND EXPENSES ........................................................................................ 18 DEFAULT ................................................................................................................................................ 21 SHARE OF PROFIT (LOSS) OF ASSOCIATES AND JOINT VENTURES, NET ........................ 23 FINANCIAL REVENUE AND EXPENSES ......................................................................................... 24 EBITDA ................................................................................................................................................... 25 DEBT………………………………………………………………………………………………………………………26 COVENANTS – EUROBONDS ............................................................................................................ 28 RESULTS SEPARATED BY BUSINESS SEGMENT – 2019 AND Q4 ......................................... 29 APPENDICES ......................................................................................................................................... 30 INVESTMENTS / CAPEX – PLANNED AND REALIZED .............................................................. 30 SOURCES AND USES OF SUPPLY – BILLED MARKET ............................................................... 31 LOSSES .................................................................................................................................................... 32 GENERATION PLANTS ....................................................................................................................... 33 RAP (PERMITTED ANNUAL REVENUE – TRANSMISSION) – 2019-20 CYCLE .................. 34 CEMIG D TABLES (R$ MILLION) ..................................................................................................... 35 CEMIG GT TABLES (R$ MILLION) .................................................................................................. 36 TABLES – CEMIG CONSOLIDATED (R$ MILLION) ..................................................................... 36 3 Cem 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 the events or results will take place 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 Cemig’s 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, Cemig’s 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, Cemig’s results may differ significantly from those indicated in or implied by such statements. The information and opinions herein 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 Cemig’s professionals nor any of their related parties or representatives shall have any liability for any losses that may result from use of the content of this material. 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 on Risk Factors included in the Reference Form filed with the Brazilian Securities Commission (CVM) – and in the 20-F form filed with the US Securities and Exchange Commission (SEC). 4 Cem Our shares Close of Close of Change in the Security / index Ticker Currency 2019 2018 period % Cemig PN CMIG4 R$ 13.79 13.16 4.79% Cemig ON CMIG3 R$ 15.59 14.39 8.35% ADR PN CIG US$ 3.34 3.38 -1.14% ADR ON CIG.C US$ 3.90 3.76 3.72% Ibovespa IBOV – 115,645 87,887 31.58% Power industry index IEEX – 76,627 49,266 55.54% Source: Economática – Adjusted for corporate action, including dividends. Trading volume in Cemig’s preferred shares (CMIG4) in 2019 was R$ 33.75 billion, of which R$ 6.14 billion was traded in the fourth quarter, corresponding to a daily average of R$ 100.63 million - 51.29% higher than in 4Q18 (R$ 206.61 mn). Trading volume in Cemig’s common shares in 4Q19 was R$ 6.49 bn, with average daily trading volume of R$ 22.61 mn. Cemig’s shares, by volume (aggregate of common (ON) and preferred (PN) shares), were the second most liquid in Brazil’s electricity sector in the period, and among the most traded in the whole Brazilian equity market. On the New York Stock Exchange the volume traded in ADRs for Cemig’s preferred shares (CIG) in full-year 2019 was US$ 3.19 billion: we see this as reflecting recognition by the investor market of Cemig as a global investment option.
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