Good afternoon everyone. I am Carolina Sena, CEMIG's Investor Relations Superintendent.

Welcome to CEMIG's first quarter 2026 earnings video conference call. Please note that this video conference is being recorded, and it will be available on the company's IR website at ri.cemig.com.br, where you also find the company's presentation.

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Should you choose to follow the call in English, you may also select "Mute original audio." During the company's presentation, all participants will have their microphones disabled.

After that, we will open a Q&A session. Before turning to the results presentation, we would like to inform you that the appointment of Alexandre Ramos Peixoto as the new CEO of CEMIG has been approved as of yesterday.

Alexandre Ramos Peixoto replaces Reynaldo Passanezi, to whom the company recognizes and expresses its gratitude for the work carried out. Under his management, CEMIG conducted a consistent financial recovery process, resumed investment levels, and developed a strategic plan worth approximately R$70 billion through 2030.

During this period, the company has strengthened its infrastructure, expanded the number of substations, modernized the grid, and eliminated historical bottlenecks. It also resumed a sustainable growth and achieved the highest market value in its history, increasing it from R$8 billion to R$45 billion.

The departure stems from the term limit restriction provided for the State-Owned Enterprises Law by number 13303/2016. It is precisely to give continuity to this trajectory that Alexandre Ramos Peixoto comes in, a career employee of the company with solid experience in the Brazilian electric sector.

He is an engineer by training. He holds a degree in quality engineering management from PUC University and a degree in management and strategic planning from the University of Minas Gerais, in addition to specializations of an MBA in related areas related to generation and planning in the sector.

Throughout his career, he has worked at ANEEL, MME, and EPE, and at CEMIG itself served as regulatory and institutional relations officer. Since May 2023, he has chaired the board of directors of CCEE.

Now we will start the call, and with us we will have: Andrea Marques de Almeida, CFO and IR Officer; Luís Cláudio Corrêa Villani, Chief Information Technology Officer; Marco Da Camino Ancona Lopez Soligo, Chief Generation and Transmission Officer; Marney Tadeu Antunes, Chief Distribution Officer; Yury Araújo de Mendonça, CEMIG SIM CEO; and Marcos Vinicius de Castro Lobato, Trading Planning Superintendent. For the initial remarks, we would like to bring to the floor Andrea Marques de Almeida.

She is going to be making the presentation.

Good morning and good afternoon to all of you. It's a pleasure to be here again to bring you the results for CEMIG, and we are very proud of them.

We always start talking about the quarterly highlights. CEMIG has the benefit of being a diversified company, which is maintaining its results consistently.

These are the operating results, and this quarter it is just like the others. Of course, we reached results of R$1.79 billion in EBITDA and R$979 million in profit.

I usually say that we have to balance out all the plates here, and we have worked on our investment plan here of R$1.48 billion. We also have shareholders' remuneration, another important topic for our strategy, R$658 million.

We had small acquisitions, SPH Pipoca and Timóteo and Mesquita that we acquired in the quarter. Also we talked about this at the end of the year about the post-employment agreement and all the impact that we recorded at the time.

This is an agreement that in fact is going to allow us to have effects over time, and we can already see a reduction in our expenses in the amount of R$80 million, and that's an important highlight as well. Now we have a snapshot of the quarter.

The total of R$1.48 billion is in the main areas here, and distribution is always carrying the highest representativeness of our investment here with R$1.28 billion for distribution. We have Mais Energia, Minas Trifásico.

We are delivering substations, six new substations, and one substation that was modernized in the Mais Energia program, and also 765 km of low and average voltage network. At transmission, we usually grow in reinforcements and improvements, and it was just like that that we have investments in the quarter, R$103 million, which added in terms of RAP, the annual permitted revenue, and that was R$15 million.

For cash generation portfolio, for generation, I think we have a lower amount. Gasmig is still moving on with its project and the Midwest as the most relevant one, and CEMIG SIM here we start seeing that in our chart as a relevant investment with seven new solar photovoltaic plants and added 19 MW capacity to our portfolio.

The quarter results are in line with the results of last year, considering that the highlights of the distributing company, the positive highlights here is that we effectively had in May the rebuilding of Parcel B, which was 7.78%. Comparing quarter-to-quarter, this is the main impact in the distributing company, and we also had an increase in residential consumption, which is positive.

In terms of challenges also known already by the market, we had impacts of price that starting 2025 energy prices are more volatile, and as we have positions that need to be closed over time, and with higher prices, the positions closing ended up having negative results in the trading company and the generating company. Also the main effect was GSF, and if we compare year against year, we had 0.92 in the first quarter of 2026, and the purchase of energy to tackle the hydrological risk allowed us to have impact in the EBITDA of R$49 million.

Now we go into the details of what I just mentioned. We have the level of prices, and clearly we can see the change in the price volatility that started in the beginning of 2025.

We started from January to March of '25 the prices were around R$59 per megawatt, and then they went up. Last year we also had a GSF close to 1, which is no longer the reality in 2026 when we have a lower GSF and the price is much higher.

We reached levels of R$382 per megawatt, impacting the management of the hydrological risk. That's an impact of R$49 million.

Now turning into a zoom into our costs and expenses, the main item has been, and in the other quarters also it was the same, it is a recurrence, it is third-party services. This quarter maybe we had higher expenses in preventive maintenance, as well as corrective maintenance, and obviously we had the right-of-way cleaning, and all of these services are in order to deliver a better quality of services to our clients.

They come with all the investments that we are making on distribution branch. This is to provide better services to our clients, and we will go over that when we discuss our DEC and other expenses.

Also with this large investment program, we have decommissions, and we had a disposal of assets, which has been part of our management. We are disposing of assets that in the past had some use for CEMIG, but no longer have.

Now talking about the impacts already the post-employment restructuring that we had up to December of last year, we see that if we compare that growth including the post-employment effect, the growth is then 2.5% quarter-on-quarter. We will also be discussing how this increase can be seen in regards to the network kilometers, substations, which is also important for the distributing company.

Now we talk about our debt profile and all the work that we have been doing to match the profile of the debt with the profile of our investment. We know that we have five years of investments in the distributing company up to the tariff review that's going to happen in 2028.

That's why we are increasing to extend our debt, and so we reached at 6.6 years of average maturity. Also important is that 76%, that is the bulk of our debt, is due after the tariff review rebuilding in 2028.

This debt profile is being extended so that also it matches with the recovery time of the tariff that we'll have in the future. The last funding that we had in the quarter was a debenture combined with a loan of 4131.

In the last issuances, they have been made lower than the sovereign risk, and we were able to include R$2.6 billion to the distributing company in this quarter. We reached the leverage of 2.45 net debt over recurring EBITDA, very healthy, and this is a leverage that also includes the financing of the investment program, but this leverage is always going to be at very healthy levels over the whole program that of course will peak in 2028 when we are going to have that tariff review.

That cost also is very reasonable. It's 89% of the CDI.

Of course, interest rates are high for everyone, but this is a cost very positive for the company. Now going over the operating cash generation and how it has been used over the quarter, we start on the EBITDA of R$1.79 billion, and we discount the non-cash effects.

We reached the EBITDA of R$1.6 billion. We have the effect of the CVA, Parcel A variation account, which had a relevant impact because of the higher price.

The distributing company has a cash impact that is going to be recovered next year. Dividends received, working capital with a positive effect, and then we reached the operating cash flow of R$1.5 billion, and how we have used it over the quarter: income tax, social contribution, interest, leases, and our investments, which is the most representative share here of R$1.6 billion.

That cash delta was negative, and we showed that in the cash availability that we have from one quarter to another. Now going into the details of these companies, as we said, CEMIG D had a representative performance in EBITDA, an increase of 26.6%, reaching R$1 billion and R$10 million of EBITDA in the quarter, especially because of the fact I already mentioned of that adjustment of 7.78%, and also we had an increase in the residential market.

This is nice. It is representative, significant for us, as we know residential tariffs are higher, so that has a good impact in our revenue.

Now here we have our energy market. We have been saying that in the past quarter that there is a migration in the case of the transported energy to clients to the basic network.

We will no longer see this drop effect after the second or third quarter. We will no longer be seeing this effect because it will then have been integrated in the quarters, but we do see that reduction.

We also talked about the positive fact that we had in the residential area, but we did have a period with a lot of rainfall and milder temperatures, and we see rural with a significant drop especially because of the rainfall period. We still see the effects of GD, distributed generation, impacting Minas Gerais and a piece of information is that DG represents 26% and the captive market is very representative in our region.

Regarding operating efficiency for CEMIG D, we have already mentioned, I believe that the main effects have already been offset. We are working on an efficient management, and we have been working on the management of right-of-way cleaning and everything that we need to do to provide a better service to clients, and we are under the regulatory limits as we should.

Now for operating efficiency, our indicators for CEMIG D are within the regulatory indicators. For losses, here you have the loss indicator.

For our spot price, we did have a change in criteria. In 2025, we went from 24 to 35 months, and that's why we had a positive effect.

Over the period, it balances out. This was just because of a change in criteria, but we see that our delinquency is very low.

We have positive indicators. Here, we are very proud to bring you these results: our DEC of 8.75, the best one in our history, and also FEC that has a positive performance, bringing better services and better conditions to our clients.

For CEMIG GT, as I mentioned, and it's important to stress, CEMIG GT today, obviously it has generation, transmission, and it also has a share of the contracts coming from the trading company. The main effects, and we already mentioned and I'll talk more about them, but the main one is here as the management of hydrological risk at G, but when we break it down per business for generation, in fact here we had the hydrological risk and energy purchase at a much higher price, and in transmission, we had a lower IPCA, and we know that our contract asset is remunerated by IPCA or inflation, and that's the impact in the transmission company.

Now turning to the trading area here, we see the main challenge in the quarter, and the main impact has been the closing of positions. That was because we did not fulfill contracts that were not delivering P90 in some contracts that we were able to recover part of this amount at the end of the year because some of positions have been sold and also because of some credit events, and I believe the whole market is seeing that.

The main effect here, yes, is really price. CEMIG SIM, CEMIG SIM is adding capacity to its portfolio, and it did have a significant increase in recurring EBITDA of around 100%.

That's very nice to see CEMIG SIM's growth and the addition of new operations that will be bringing more energy to our portfolio. Gasmig this quarter also posted this effect.

As clients migrate to the free market, this margin is reduced, and that is the main impact that we see in Gasmig. We'll be seeing that happening over time because there is a migration of clients to the free market.

Now we end the presentation very proudly honoring our electricians. They are the heart of CEMIG.

We do exist because of them. They represent us, and they were the winners of the Rodeo champion team in Costa Rica.

We went there for the competition. We did compete.

We were the winners, and we did not have any safety failure, and this is the main message. We want to be efficient.

We want to provide the best services to our clients, but we also want to deliver services in a safe way. Special congratulations to our champions because they move energy, CEMIG's energy.

Thank you all very much, and now we open the floor for the Q&A session. We will right now start the Q&A session.

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Participants also may send their questions on the chat, and those will be organized according to the time available. Once again, I would like to say that all of us here are available to take any questions you might have.

First question is from André Sampaio, sell side from Santander Bank. André, please you can ask your question live.

I'm going to read his question. André's question is: I would like to understand how the discussion on the plant renewal is going.

I will turn that question to Marco Da Camino, Officer.

Hello André, thank you very much for your question. The discussion about the concessions renewal, Sá Carvalho, Emborcação, and Nova Ponte, is going well.

We have great contact and interaction with the Ministry of Energy and ANEEL, and we expect to renew these concessions in the next few months before they are due. Thank you.

The question is from Marco and Marcos Vinicius: how can we reduce hydrological risk with alternative energies so that we can address these deficiencies?

Good afternoon, thank you very much for your question. To reduce hydrological risk, if we diversify our portfolio, we are able to avoid dependency of a single generation.

Our portfolio is already designed like that. We have our hydrological plants, but also we have other wind and solar component.

We do have the GSF impact, but we believe that this is at a lower proportion rather than if we have everything concentrated on HPPs. The other way of managing that is really to hire ahead of time, and we are paying attention to that.

There was a reduction of GSF in the beginning of the year, but the second half of the year that would concern us, and GSF could be at a lower level, but we already have an adequate reserve for that to avoid significant impact over the year.

Thank you very much, Marcos Vinicius. I have two questions to our CFO and IR Officer, Andrea Almeida.

The first question is: what can we expect from the next tariff review in 2028? The second question is related to the increase of the debt vis-à-vis the investments, considering that we have a two-digit interest rate.

Talking about the tariff review, obviously we are making the most effective investments according to our plans in the distributing company, and we are sure that these investments will be well acknowledged in our tariff review. Of course, and we will know that in the future, but we take into consideration the increase of the asset base, discount the depreciation, and we will see the impact of the rebuilding of the EBITDA based on what we will see in the five years, maybe we will have R$22 billion.

Considering these investments, we will have a rebuilding of the base, we reduce depreciation, and then we will get to a variation that's going to vary the level of the EBITDA in 2028. We are very optimistic about the recognition of this investment because we are very cautious in our investment.

Now and thank you for your questions, I forgot to thank you. Now moving to the other question on the leverage, CEMIG finds itself at a very healthy leverage stage, and we do believe that over the investment program, leverage tends to grow so that we can carry out the investment program of R$44 billion in the next five years.

Leverage tends to increase to grow up to 2028 when it's going to come down, and of course with the tariff review of the distributing company, always considering very healthy levels. Much so that we got another AAA, now we have two AAA ratings by Fitch and Moody's, proving that CEMIG's credit quality is very positive.

Yes, we have high interest rates right now in the country, but we do have a return on our investments that are higher than and that's why we are focusing investments, especially in the regulated sectors of distribution and transmission. Yes, we do believe that these investments generate value for shareholders, and this leverage is at a level that is very comfortable for the company.

Thank you, Andrea. Our next questions are for Marcos Vinicius.

First from Ricardo Bella from Safra: he would like to understand which are the possible impacts with the change of the risk parameter of CVAR in the price curve? Is that already impacting you at the trading level?

Thank you for your question. We are following up this discussion.

We did have a public hearing, and the SM-A is going to discuss the change of these parameters for next year. There is an initial assessment of maintaining them, but we have seen that in the public hearing a lot of contributions arose, considering a possibility to reduce the levels of CVAR, considering that we already have a more controlled situation and simulations show that it is possible to have a risk level, the right protection at a lower price.

We would not be so risk averse. If that changes, of course we are going to have prices impact, the prices could be lower, and that would be beneficial for our positions because we still have open positions.

We have long positions for '27, '28, which are the closer years, and the ones that will be more affected in the spot price. If that happens and we are observing this movement, and it might be interesting for us to start closing these positions.

Thank you, Marcos. Next question it's for you again from Rafael Corrêa.

He wants us to talk more about the strategy of the company's trading branch and considering that for 2026 we have a challenging GSF, and what are going to be the impact in the market?

Thank you. 2026 is a challenging year for us, and we did discuss that in our CEMIG Day because we did have a development of our margins in 2020 that would be the lower margin of our history, and it's going to recover in the future.

In 2026, because of the history of prices in the market, we contracted ahead of time, and we know that we had a decrease in the contracts, and the contracts had a reduced margin. In addition to that, we have short-term elements that could reduce results.

Difference in submarket prices that are high in the beginning of the year, we expect them to drop of course for the rest of the year, but that's an impact, also reduction in some contracts. There are factors that could turn this year into a more challenging once, but our vision is that in the future these impacts will come down because of the systemic progress and our margin because of the prices of the market also is going to evolve.

The hydrological risk, once again, we had in the first quarter a realization that was lower than the expectation. The challenging situation usually comes in the second quarter, we believe that's going to happen according to what we are planning in a way that in the second half of the year, that's not going to be an impact as we had in the first quarter.

Thank you, Marcos. Another question now coming from João Fagundes from Banco Bradesco.

Can you tell us how is the seasonal profile of our plants if it's like MRE, and what is our discussion in the risk parameters, you already talked about this, right?

Our seasonality is very close to MRE. We did have smallest difference in January.

Maybe we suffered this effect a little bit more because it's concentrated in the rest of the year, but it is very close. About CVAR, as I mentioned, because of the contributions from the public hearing, we see that there is room for reduction.

We had 45 contributions, and 2/3 of them were for CVAR parameters that were not averse or less averse to risk. We might have a review, and by having a review, we will see this beneficial effect to close the positions as I mentioned.

Thank you Marcos Vinicius, and we thank you all very much for your participation. The IR Superintendence are available for any other questions you might have.

We end the video conference for the earnings of the first quarter of 2026 for CEMIG. Have a nice afternoon.