Vitor Sousa

Vitor Souza inquired about the implications of technical note 53 on CEMIG's distribution sector losses, specifically asking if it would lead to retroactive accounting adjustments or if the impact is purely prospective. He also sought clarity on how CEMIG's loss levels would have compared without this technical note.

Answer

Denis Molica, Strategy, Innovation, and Sustainability Officer, clarified that the new method for calculating losses is not applied retroactively to past calculations, and CEMIG remains within regulatory limits both before and after the note. He confirmed that adjustments are prospective, with no accounting effects on prior periods, and noted a positive tariff effect from recognizing distributed generation impacts.

Vitor Sousa from Genial Investimentos inquired about the implications of technical note 53 on CEMIG's distribution sector losses. He specifically asked if the change would lead to a republishing of past loss levels, potential retroactive accounting effects on receivables and provisions, or if the impact would be purely prospective. Sousa also sought clarification on how CEMIG's loss levels would have performed without this technical note for comparative assessment.

Answer

Denis Mollica, CEMIG's Strategy, Innovation, and Sustainability Officer, clarified that the new calculation method for losses is not applied retroactively to past calculations. He stated that even with simulations, prior losses would remain within limits, and practical accounting adjustments are prospective. Mollica affirmed that CEMIG remains within regulatory loss limits both before and after the technical note, with ongoing actions to manage losses, and noted a positive tariff effect from the recognition of distributed generation impacts.

Vitor Sousa inquired about the company's preference between share buybacks and dividends and asked if the proceeds from the thermal plant sale would be specifically allocated to dividend payouts.

Answer

Executive Elio de Meirelles Wolff stated that while he personally prefers buybacks, the company will utilize both methods as part of a broader 5-year capital allocation plan. He clarified that the cash from the thermal plant sale was already factored into the company's financial planning, which supported the recent decision to pay an additional BRL 1.8 billion in dividends. Executive Ivan de Souza Monteiro reinforced that the company built a strong liquidity position in 2024 to support both investments and shareholder returns.