管理層發言
Good afternoon, everyone. Thank you for waiting. Welcome to Cemig's First Quarter 2025 Earnings Video Conference Call. Should you need simultaneous interpretation, the feature is available on this platform. Just click on the globe icon located on the bottom of the screen and choose interpretation. Then, select the language of your choice, Portuguese or English. Should you choose to follow the call in English, you may also select mute original audio to mute the Portuguese original audio on the back. This video conference is being recorded and will be available on the company's IR website, ri.cemig.com.br. Or, you'll also find the full package on our earnings call. You can also download the company's presentation via the chat icon in Portuguese or in English. During the company's presentation, all participants will have their microphones muted. After the presentation, we will start the Q&A session. So, now we would like to turn the floor to Carolina Senna, Cemig's Investor Relations Superintendent. Carolina, the floor is yours.
Good morning, everyone. I am Carolina Senna, Cemig's Investor Relations Superintendent. We start now the first quarter 2025 earnings video conference call. And with us, we have Reynaldo Passanezi Filho, our CEO; Andrea Marques de Almeida, CFO and IR officer; Cristiana Maria Fortini Pinto e Silva, Chief Legal Officer; Marco da Camino Ancona Lopez Soligo, Chief Generation and Transmission Officer; Sergio Lopes Cabral, Chief Commercialization Officer; Marney Tadeu Antunes, Chief Distribution Officer; and Luis Claudio Correa Villani, Chief Information Officer. For the initial remarks, I would like to turn the floor to our CEO, Reynaldo Passanezi Filho.
Good morning, everyone. Welcome to our earnings call for the first quarter of 2025, another quarter where we post, as you can see here, resilience and results; sound results. Of course, we had some impacts in our trading company. Andrea will go into the details. But it is important to highlight that we had an EBITDA of BRL1.8 billion, very significant EBITDA. Also, with positive results in all of the segments, exception made to the trading company, also net profit of BRL1 billion. We are paying dividends here, interest on equity of BRL541 million. Also, a very significant event to finance our investment program are the ventures, BRL5 billion and the ventures. But what I would like to highlight here is, our mantras, our direction. For me, it is to carry out the largest investment program in the company's history. We will see our CapEx, the investment program. It is still ramping up. We have grown 6x our investments since 2018. This is really a significant figure. We went from BRL950 million of investments in 2018 to BRL5.700 billion in 2024, and we have a forecast reaching BRL6.3 billion in 2025, and this is what we are showing investments growing 18% from 2024 to 2025. As all of you know, these investments will mature in the tariff review, and then we will be able the financial results of these investments after the tariff review, which is going to happen in 2028. And it is very important to understand the characteristic of these investments. Most of them, over 75% is dedicated to network, to infrastructure. We are talking about investments in distribution, transmission, and also in gas. All of that involves network development. And this is a topic that is currently being discussed. If you follow the energy transition, you see that investments in network is crucial for this energy transition. So, one-third of energy's investments is on a network, and this is what we are bringing to you here. 75% of our investments is dedicated to infrastructure and network. As you all know, this is a regulated investment with a profitability that is guaranteed. Therefore, it provides great stability to the company. Our second mantra, which is also very important is efficiency. Here, we have well, our first mantra is focus in Minas Gerais and when Minas Gerais. This is very important. And these investments are in areas where we know and sectors that we know about regulated sectors, and they have results, stability, as well as profitability. The second mantra is efficiency. So, we move on within the regulatory standards guaranteeing cash generation. So, we are within our regulatory losses. We are compliant with the regulatory expenses that we call regulatory PMSO. Therefore, everything that is in the tariff, we are complying with the expenses, and we can have cash generation to finance all this investment plan. We are not using our cash with expenses or with regulatory losses or losses above the regulatory metrics. So, the first mantra, once again is to focus in Minas Gerais and when to following this investment program, it's very important to stress that this investment program is all contracted in addition to being in regulated sectors. We can say that we have a lot to follow here in this growth process because today, it's already contracted. We know that it takes a while to start moving, but it is already there. It's contracted. The second mantra then is efficiency. We will always be focusing on that. This is in our objectives and we do intend to be within the regulatory expenses and losses. We are also working on an organization restructuring already, looking for more efficiency and being closer to clients. Maybe this would be our third topic here, which is working, with efficiency and being closer to clients as well as improving the results and all the results metrics. We had a company that was very centralized in the past. And today, we have developed. We have created six regional areas and 17 regional high-voltage management units. And here we are talking about Uberlândia, Montes Claros, Governador Valadares, Juiz de Fora, and, obviously, the Metro region, Belo Horizonte. So, what was centralized in Belo Horizonte in the past now is divided in six regional management units or regional superintendencies. They are larger than other concessions in some cases considering the size of the state. And we have this purpose here with the superintendents is we want to be closer to clients to see what are the challenges and the different areas. And now, so we are aiming for more efficiency because being closer to clients allows us to see possible optimization situations. We are already realizing how much of these new regional units and I congratulate all of those that have taken up these new positions. And our Distribution Officer can talk more about that. But we can see that there is a clear objective or greater integration in the areas, more efficiency of physical spaces, always aiming for greater efficiency. And also we have Cemig Agro, which is a very important topic that goes together with investments. Agribusiness is one of the main growth drivers of Minas Gerais' economy. And for us, it is very important to work driving up the agribusiness with investments, and that's what we call Mina's three phase. And also with a more efficient operation, improving service quality and providing greater agility in service. And this is what we are adding here with this reinforcement of our teams with several new units with 228 new electricians. And the objective here is very clear. We are looking for greater proximity with our clients. It's very important to follow these mantras. The first one is focus in Minas Gerais and win in Minas Gerais with prudent and cautious investment plan, but at the same time, a very bold one and always aim for our efficiency metrics, the regulatory ones, and also with metrics that are better than the regulatory ones and to improve our service to clients. And I would like to include another one, which is innovation and modernization. And talking about restructuring, the company, we have here this development of the regionalization. And also we have an IT area. I would like to congratulate Luis Claudio Villani, our new Chief Information Officer. And this shows how much we are investing in terms of more innovation and modernization. We are bringing in a new ADMS, a new SAP S4/HANA with great advancements in digitization. This will improve our integration between IT and OT and will bring us more simplification in processes, therefore providing more efficiency and service quality. When we talk about IT, we have a wonderful situation, right? We can be more efficient and also we can improve our service providing because it's not always like that. So, welcome, Villani. And that's what I say. These are the mantras. These are the topics we have always to stress, and they are our guidelines. They are our strategy, and this is a strategy that is consolidating itself over the past years and this transformation process in the company. I also congratulate everyone in the company for their work, especially in the divestment process. And now we are in a new path, and we created this new area, which is, the innovation and technology area, always aiming for innovation and modernization. These were my initial remarks. So, now, I would turn the floor to Andrea. She's going to talk about the wonderful figures, right, just BRL5 billion in debentures, and we will then be available for the Q&A session at the end of the presentation.
Thank you very much, Reynaldo. Good morning, everyone. I'm pleased to be here with you today to discuss our successful issuance. In the first quarter, we issued BRL2.5 billion in Cemig D and BRL625 million in Cemig GT. During that time, we compared ourselves to our peers and managed to have an issuance that was lower than theirs and very close to sovereign levels, which is significant for us. We were excited to see demand exceed our expectations, reaching over 2.5 times our booking. As a result of this high demand, we had the chance for an additional issuance of BRL1.9 billion, which occurred in April, allowing us to reduce the rate further. This issuance has a seven-year tenure, enabling us to extend our debt from 4.8 to 5.5 years. A notable achievement is that we maintained our AAA credit rating from Fitch Ratings, and this debenture is recognized as green and sustainable, reflecting our commitment to this matter. Now, turning to our results, Reynaldo has mentioned a 9% drop in our EBITDA, primarily due to price differences in the submarkets and the trading company, which affected us by around BRL133 million. We also anticipated lower margins from the trading company, which contributed to this drop as we progress through the year. We are aware of a nonrecurring effect related to the sale in 2024 amounting to BRL43 million, which did not carry over to 2025. This is important to consider in light of the efficiency improvements Reynaldo pointed out. We've offered our employees the option to transition from the PSI health care plan, a shift we are working on that ensures Cemig continues to cover health care expenses until retirement. Over 1,000 employees migrated, although the new plan offers different conditions. This change allowed us to reverse provisions by BRL28 million. Additionally, over 700 active employees have also transitioned, leaving about 24% still on the old PSI health care plan. Regarding our nonprofit side, we faced equity impacts from projects such as Belo Monte and Alliance, which were previously accounted for last year but not this year, along with the associated debt increase from competitive funds. In terms of submarkets, we began the year with minimal price differences, but by February, the difference was 35. A challenging hydrological situation in March caused prices to rise, peaking at BRL272. However, in April, this price difference decreased to around BRL120, indicating improvement in hydrological conditions. Focusing on our managerial expenses, we noted the reversal of post-retirement provisions as significant, alongside regular personnel adjustments and a slight decrease in expenses, all contributing to a reduction in manageable expenses for the first quarter. Our current debt is entirely Real denominated, with an average tenure of 5.5 years and leverage at 1.4. We are proud of our successful debenture issuance and the reaffirmation of our AAA rating by Fitch, alongside two additional AA+ corporate ratings from other agencies, placing us in a strong position for continued investment in Cemig's growth. Our consolidated cash flow at the end of 2024 was around BRL2.3 billion, with an operating cash flow of BRL1.5 billion. Payments on loans and debentures totaled BRL3 billion, while we invested approximately BRL1.2 billion. We have also set aside BRL5 billion to cover the debentures issued last year, ending with cash reserves of BRL4.7 billion. At the company level, the distribution segment benefited from a tariff increase, and the migration of the health care plan positively influenced net profits. While debt impacts financial expenses when comparing year-over-year IPCA, our indicators remain within regulatory limits. In Cemig GT, we maintain operating indicators in compliance, with a reduction in perceived outages over the past twelve months. Additionally, despite a 0.3% increase in the billed market and transfers to customers, rural areas experienced a decline due to heavy rainfall. The commercial sector continues to migrate towards DD, and we are also witnessing growth in energy transfers from the free market, with a slight increase in residential clients. Compliance with regulatory loss limits remains a priority, with ongoing inspections and replacement of outdated meters with new smart meters, integral to our investment strategy. Moving forward, we continue our well-executed investment program and expect to conclude it by the end of the year. Overall, the trading company faced a significant BRL12 billion EBITDA impact due to margins that we anticipated would decrease from one year to the next, while other segments performed positively. This illustrates the resilience and diversity of our portfolio, as Reynaldo mentioned. Thank you for your attention, and now we'll open the floor for questions.
分析師問答
Moving on, we will now start our Q&A session. Our first question is from sell-side analyst, Victor Cunha from Itau BBA. Please, Victor, feel free to ask your question.
Good morning, everyone. Good morning, Carol, and thank you for this opportunity. Now my question is looking at the energy balance that the company posted, we see an increase in the short position, especially for the next years. Can you share with us what was the rationale behind this decision, especially during a period of pressure for energy prices considering also the recent adoption of the hybrid new wave and the new parameters for risk aversion? Can we consider a marginal cost of expansion that might be higher than what we have today? I just would like to have your understanding regarding this decision. What was the rationale behind it and the perspective, that we have looking ahead?
Thank you, Victor. Now, who is going to answer the question is our trading officer, Sergio Cabral. Please, Sergio?
Good morning. Good morning, everyone. Good morning, Victor, and thank you for your question. Actually, we have not increased. We still have a short exposure this year because of the deliveries that have not been carried out. For 2026 and 2027, we will maintain a short position. We should bring it over to the future a little bit more when we analyze prices, and we are already looking at a price stabilization. And as Andrea said, the end of this submarket effect, but we do not intend to increase exposure; we are trying to work with the lowest exposure possible and also observing these changes and fluctuations in price.
Thank you, Sergio.
Thank you, Sergio.
Hello, everyone. Good morning, and thank you for the call and for this opportunity. I have two questions. The first, on the details that you mentioned and efficiency, in this quarter, we have seen, as you said, the initial impact of the health care plan migration. In fact, can you tell us what we could expect for the next quarters? And Andrea, you said that you have a new window for enrollment. I would like to understand how this is going to move forward over the year. Also, my second question on the trading company, I would like to understand if in 2025, you have been able or if you're looking for a way of mitigating the impact of the submarket. We see that there is a mismatch of prices or a detachment of prices, not with the same strength of March, but still a strong. But I would like to understand if the company is trying to mitigate these impacts for the next quarters in terms of the prices for the submarket. Thank you.
To ask the question about the health care plan, Andrea Almeida, our CFO. Thanks, Andrea.
Thank you very much for your question. What we can expect in the next quarter in terms of this migration, we have 700 employees migrating, so we will have an amount to be reduced because of this provision reversal. But this is not as significant as we saw we had a migration of 1,000 and we had 28 million in reversal. As a provision, as a whole of course, we are negotiating with our Unions in order to come to an agreement. And as this agreement is finalized, we might have it, but we don't have a final date for that. We don't know when it's going to happen, and not even the amount because it's still something we are working on that's not possible to define right now. Now already answering the other question on the trading, yes of course, we are looking at mitigation tools for the current year. And for the current year, of course, the instruments considering the price differences are very expensive. But if we have an opportunity to have clients buying in the regions where we have that production, we will be working on it. So, yes, we are always looking at it, but we have to come up to a price that is reasonable. We are also looking at the development of what is happening and also the possibility of having the energy agency being less conservative and to make a more feasible transference from the Northeast to the Southeast to reduce the difference between the submarkets. So, this is all part of a study that we are running in house about this issue. Thank you very much.
Thank you, Andrea for your answers. If there are no further questions, we will now end.
Good morning, everyone and thank you very much for taking my question. You can ask if someone wants to ask another question also. Well, it's now being back this in discussion in the media, the decision of CEMIG regarding Propag, and it has to do with the decision of Romeu Zema, the Minas Gerais Governor. Is there anything you knew about this topic comparing to what has already been discussed? The legislative assembly Minas Gerais has anything new. It's a feeling like things come and go and we are kind of lost regarding whatever has been discussed. What can we expect from this topic now?
I turn the floor to Reynaldo, our CEO, to answer this question.
Well, Victor, I think the matter here is just the same. The government just sent a project to deal with Propag. And in this project to deal with Propag, it included some assets. Among the assets, we have CEMIG. And just like you're asking about CEMIG, COPASA is also included here. So, this is a relevant topic for the Minas Gerais legislative assembly, and it has to be discussed there. So, what is new is that this topic is going to be prioritized, to be discussed at this legislative assembly.
The next question comes from the analyst. Yes, we can hear you.
I would like to know if you will have any changes in the dividends policy of the company in regards to the payout. What are you considering for 2025?
Thank you, Xin. Who's going to answer your question? It's Andrea Almeida, our CFO.
Thank you, Xin, for your question. We do not expect any changes to our dividend policy. We will continue to pay 50% of our profits. As you have noticed in previous years, even with non-recurring effects, we were still able to pay dividends, despite not generating cash. This practice will continue this year as well. The policy remains the same: 50% of net profit, as stated in our bylaws.
Hello, and thank you for this opportunity. I would like to hear from you about the capital structure. And this has to do with what Andrea talked about related to dividends. But how do you see this indebtedness structure and capital? Because some companies in the sector are indicating that they should be more conservative considering the price volatility in the energy market. Thank you.
Thank you. And I turn the floor to our CFO, Andrea Almeida.
Thank you very much for your question. I think Cemig was already being conservative. We had a low leverage. We know that leverage over the investment period was going to reach around 2.5 times net over EBITDA up to 2027. In 2028, we have the tariff review, or Cemig D that will bring us to another level. So, it's fine. Our leverage will come down then. So, we believe we have room to adjust that additional volatility that we see now. And with those prices, I believe that when compared to other companies, you are already in a more conservative situation. I'm sorry. Reynaldo wants to comment as well.
Our results are of great resiliency. So, we are bringing resilient results in this quarter in spite of the volatility. And I think that we also mentioned that we aim to reduce risk exposure. So, both banks are moving towards keeping the dividends distribution policy and not changing our investment plan. Either we will keep on working with our investment plan as well as our dividends distribution policy on the same terms and dates. I see the last question here, the same periods of time that the company already does. We'll keep on following that. Thank you very much.
Thank you, Reynaldo. If there are further questions, please feel free to ask them. Since there are no further questions, we end here our Q&A session. Thank you very much for participating in the first quarter 2025 videoconference call. If you have additional questions, Amelia and our website is available to get your questions, and we will be answering them. Thank you all very much, and have a nice day.