Companhia Energética de Minas Gerais Q1 FY2025 earnings call

• Carrying out the largest investment program in company history, with CapEx growing from BRL950 million in 2018 to BRL5.7 billion in 2024, forecasted to reach BRL6.3 billion in 2025 (18% growth from 2024), with over 75% of investments in network infrastructure. - Focus on Minas Gerais, efficiency, and being closer to clients through regionalization (six regional areas and 17 regional high-voltage management units). - Migrated over 1,000 employees from PSI health care plan, resulting in a BRL28 million reversal of provisions. - Successful debenture issuance: BRL2.5 billion Cemig D and BRL625 million Cemig GT, extending debt tenure to 5.5 years and maintaining AAA credit rating. - IT modernization with new ADMS and SAP S4/HANA for digitization and process simplification.

Cemig reported an EBITDA of BRL1.8 billion and net profit of BRL1 billion for the first quarter of 2025. The trading company was impacted by submarket price differences and lower margins, while other segments were positive. The distribution company benefited from tariff increases, and Gasmig had reduced sold volume but an ongoing investment program. EBITDA saw a 9% drop due to trading company effects and nonrecurring items from 2024.

• Investment program forecast to reach BRL6.3 billion in 2025, showing 18% growth from 2024. - Extended debt tenure from 4.8 to 5.5 years through successful debenture issuance. - Dividends policy to continue paying 50% of net profit, consistent with prior years.

• Trading company facing lower margins and submarket price differences impacting EBITDA. - Submarket price volatility leading to EBITDA drops, with ongoing monitoring of hydrological conditions. - Uncertainty in health care plan migration negotiations with unions, affecting provision reversals and financials.

Q: Looking at the energy balance and short position increase, what's the rationale?

A: Still have short exposure due to uncarried deliveries, maintaining short position for 2026-2027, aiming for price stabilization and lowest exposure.

Q: Details on health care plan migration and trading company submarket mitigation?

A: Expect further reversals from health care plan migrations, working on mitigation tools for trading submarket impacts, studying energy agency transference to reduce submarket differences.

Q: Dividends policy and capital structure?

A: Dividends policy to remain 50% of net profit, capital structure conservative with low leverage, expecting leverage to adjust post-tariff review in 2028.