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

Strategic positioning and business overview

• Operates Brazil's largest integrated electric utility, serving over 9.5 million customers in 25 states and the Federal District, with a focus on Minas Gerais.

• Maintains a verticalized platform across distribution, generation, trading, and transmission, with a balanced and diversified portfolio.

• Holds a local AAA credit rating, supported by solid cash flow, low leverage, and disciplined financial management.

• 100% of energy comes from clean and renewable sources, with a strong ESG commitment and presence in major sustainability indices.

• State-owned enterprise with 62.35% free float and significant stakes in Taesa and Gasmig.

Financial performance and capital structure

• EBITDA margin ranged from 19.4% to 28.3% between 2018 and 2025, with net profit margin peaking at 16%.

• Net debt stood at R$16.8 billion with an average maturity of 6.9 years and a net debt/EBITDA ratio below 1.3x.

• Maintains high dividend yields, with a minimum 50% net income payout policy and strong total return on equity.

• Investment program from 2019 to 2025 totaled R$25.7 billion, with R$6.6 billion invested in 2025 alone.

• Planned investments for 2026–2030 exceed R$44 billion, focusing on modernization and expansion in Minas Gerais.

Operational highlights by segment

• Distribution: Largest concession in Brazil, serving 774 municipalities, with over 588,000 km of grid and >9.5 million customers.

• Generation: 4.8 GW installed capacity across 71 plants (hydro, wind, solar), with ongoing concession renewals and modernization.

• Transmission: 5,060 km of lines, 42 substations, and a 21.68% stake in Taesa, with R$3.5 billion planned investments (2026–2030).

• Trading: Leading power trader with 10,360 customer units, focusing on margin expansion and digital channels.

• Natural Gas: Concession until 2053, serving 47 municipalities and over 108,000 customers, with R$1.9 billion investment planned (2026–2030).