CEMIG(US:CIG)2021-05-17 23:09Financial Data and Key Metrics Changes - The company reported an EBITDA of R$1.8 billion, with an adjusted EBITDA of R$1.6 billion for the quarter, indicating consistent positive results [3][4] - The net profit adjusted for non-recurring events increased by 36.5% year-on-year, from R$589 million to R$804 million [38] - The company achieved a significant EBITDA of R$1.845 billion, which is 22% higher than the previous year [18] Business Line Data and Key Metrics Changes - Cemig Distribution's EBITDA increased by 34.5%, from R$495 million to R$666 million, while net profit rose by 72.6%, from R$197 million to R$340 million [44] - The volume of electricity distributed saw a 3.3% growth, with transported energy for free clients up by 9.7% [41] - The captive market experienced a drop of 1.7%, but the overall performance remained strong due to the growth in distributed generation, which increased by 120% [42] Market Data and Key Metrics Changes - The company maintained a solid cash position of R$6.181 billion at the end of Q1 2021, up from R$5.8 billion at the end of 2020 [51] - The collection rate in the first quarter was 97.37%, higher than in 2019, indicating effective measures taken to manage collections [25] - The company reported a decrease in delinquency rates, with a significant increase in disconnections, but low-income clients were not affected [26] Company Strategy and Development Direction - The company is focusing on core businesses in distribution, generation, and trading within Minas Gerais, with a divestment plan of R$9 billion [2][3] - A bold investment program of R$22.5 billion is planned up to 2025, emphasizing efficiency and customer service improvements [3][4] - The company is transitioning towards wind and solar projects, moving away from a water matrix, which is a significant strategic shift [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving operational efficiency and reducing non-technical losses, with guidance for EBITDA between R$2.544 billion and R$2.581 billion for the year [58][59] - The company is optimistic about future cash generation from extended concessions, which will enhance liquidity [29] - Management highlighted ongoing negotiations regarding healthcare and pension plans to reduce actuarial risks and expenses [52][53] Other Important Information - The company is implementing a voluntary redundancy program to improve operational efficiency [27] - There is a focus on digitization and customer service improvements through integrated systems and machine learning initiatives [6][7] - The company is managing its debt effectively, with a comfortable leverage ratio of 1.1 times net debt over EBITDA [50] Q&A Session Summary Question: Impact of PIS and Cofins credits reimbursement on EBITDA - Management clarified that the R$178 million reimbursement does not affect EBITDA as it was accounted for in tariff adjustments, maintaining regulatory revenue [56] Question: Future expectations for distribution results - Management provided guidance for continued operational efficiency and a projected EBITDA range for distribution, indicating confidence in meeting expectations [58][59]