Companhia Energética de Minas Gerais - CEMIG (NYSE:CIG) Q4 2023 Earnings Conference Call March 21, 2024 2:00 PM ET

Company Participants

Carolina Senna - IR Superintendent
Reynaldo Passanezi Filho - CEO
Leonardo George de Magalhaes - CFO
Marney Tadeu Antunes - Chief Distribution Officer
Thadeu Carneiro da Silva - Chief Generation and Transmission Officer

Conference Call Participants

Carolina Senna

Yeah, thank you. Good afternoon, everyone. My name is Carolina Senna. I'm Investor Relations Superintendent of CEMIG. We now start CEMIG’s Fourth Quarter 2023 Earnings Call and Webcast. We have the following executives, Reynaldo Passanezi Filho, CEO; Dimas Costa Commercial VP; Leonardo George de Magalhaes, Chief Financial Officer and Investor Relations officer, Marco Soligo, Chief Participation Officer; Marney Tadeu Antunes, Chief Distribution Officer; and Thadeu Carneiro da Silva, Chief Generation and Transmission Officer.

For the initial remarks, I turn the floor over to our CEO, Reynaldo Passanezi Filho.

Reynaldo Passanezi Filho

Good afternoon, everyone. Again, it is a pleasure to be disclosing our earnings. These results we believe were extraordinary.

Okay, you can see my video now. I'll repeat. I'll start again. Good afternoon, everyone. It is a pleasure to be here to present our 2023 earnings. These results are extraordinary. And they show the success of our strategy.

I think it is very important to give you a summary of the 2023 results, but you have to understand that these are the results of our strategic planning results of the execution of a strategy that is focused on concentrating our activities on the businesses that CEMIG knows. The electricity sector in Minas trading all over Brazil with control efficiency and operating performance. So this is the strategy. And this is what justifies our record investment plan of BRL35.6 billion.

How are we executing? Well, I think that here we have these bullet items. And we see the consequences of this strategy. The first was concentrating, focusing on the assets that we know and divest from our minority equity stakes of assets, which are basically outside the state of Minas.

So we divested from light with diversity from Renova. And we ended up divesting this year from Santo Antôni, Retiro Baixo, Baguari and the first lot of SHPPs. And this was extremely positive not just in terms of the cash inflow because of these divestments. But also because we didn't need to inject capital. You will know that Renova required a capital increase. Light also needed a capital increase, Santo Antôni also required a capital increase. So CEMIG if we still have those shareholdings, and if we wanted to keep those share holdings, we would have to inject capital into these companies.