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Operating Segments
 12 Months Ended
Dec. 31, 2024
Operating Segments  
Operating Segments

5.                 OPERATING SEGMENTS

The operating segments of the Company and its subsidiaries reflect their management and their organizational structure, in which the Company’s chief operating decision maker (CODM) evaluates the operating segments performance and used to monitoring its results.

The segment information is disclosed separately into the following 6 reportable segments:

             Generation: comprise production of energy from hydroelectric, wind and solar facilities, being characterized for the sale of the energy produced by the Company itself in the Regulated Market (‘ACR’); under physical guarantee quotas; and to the segment of Trading.

             Transmission: comprise construction, operation and maintenance of transmission lines and substations.

             Trading: comprises the sale of electricity to free customers and the provision of related services. To serve the market, the trading segment buys energy from the generation segment, and/or from parties outside the Cemig group.

             Distribution: comprises the distribution and sale of electricity to captive customers, and the operation and maintenance of infrastructure and related services.

             Gas: this business segment includes commercial operation of industrial, institutional and residential distribution and sale of piped gas in the State of Minas Gerais.

             Investees: Comprise management of the equity interests in jointly controlled, in line with the Company’s business strategies. The results of the Parent Company, with holding activities, and of the subsidiary Cemig Sim are also included in this segment.

Transfer of energy from the generation activity to the trading activity comprises a transaction between segments, since it consists of obtaining of revenue from the sale of energy generated, and costs for purchase of energy to be traded - these are measured at sale prices estimated in accordance with criteria based on the Company’s model for management of these businesses, using market prices as a reference.

Information by Segment as of and for The Year Ended December 31, 2024

Description

Energy

Gas

Investees

Eliminations (1)

Total

Generation

Transmission

Trading

Distribution

NET REVENUE

2,919

1,293

7,279

26,617

3,477

131

(1,896)

39,820

 

 

 

 

 

 

 

 

 

COST OF ENERGY, GAS AND CHARGES FOR USE OF THE NATIONAL GRID

(383)

-

(6,509)

(14,735)

(2,127)

(86)

1,862

(21,978)

 

 

 

 

 

 

 

 

 

COSTS AND EXPENSES (2)

 

 

 

 

 

 

 

 

Personnel

(150)

(149)

(29)

(968)

(73)

(44)

-

(1,413)

Employees’ and managers’ profit sharing

(18)

(16)

(2)

(104)

-

(19)

-

(159)

Post-employment obligations

(51)

(32)

(7)

(323)

-

(71)

-

(484)

Materials, outsourced services and other expenses (revenues)

(249)

(97)

(26)

(2,295)

(83)

(97)

34

(2,813)

Depreciation and amortization

(325)

(9)

-

(922)

(98)

(22)

-

(1,376)

Operating provisions and impairment (3)

8

5

(76)

(8)

(1)

(63)

-

(135)

Construction costs

-

(290)

-

(4,379)

(333)

-

-

(5,002)

Other revenues

43

1,521

-

-

-

1,631

-

3,195

Total costs and expenses of operation

(742)

933

(140)

(8,999)

(588)

1,315

34

(8,187)

 

 

 

 

 

 

 

 

 

COSTS AND EXPENSES

(1,125)

933

(6,649)

(23,734)

(2,715)

1,229

1,896

(30,165)

 

 

 

 

 

 

 

 

 

Share of profit of equity-accounted investees and joint ventures, net of taxes

-

-

-

-

-

 224

 -

224

 

 

 

 

 

 

 

 

 

INCOME BEFORE FINANCE INCOME (EXPENSES)

1,794

2,226

630

2,883

762

1,584

 -

9,879

Finance net income (expenses)

(180)

(108)

24

(17)

(52)

(188)

 -

(521)

INCOME BEFORE INCOME TAX AND SOCIAL CONTRIBUTION TAX

1,614

2,118

654

2,866

710

1,396

 -

9,358

Income tax and social contribution tax

(334)

(557)

(136)

(662)

(213)

(337)

 -

(2,239)

NET INCOME FOR THE YEAR

1,280

1,561

518

2,204

497

1,059

 -

7,119

Equity holders of the parent

1,280

1,561

518

2,204

495

1,059

 -

7,117

Non-controlling interests

-

-

-

-

2

 -

 -

2

 

(1)

The reconciliation between the values of the reportable segments and the accounting information on revenues and costs reflects the elimination of intercompany transactions.

(2)

The information on operational costs and expenses separated by type is segregated in accordance with the internal business model, which has immaterial differences in relation to the accounting information.

(3)

Includes the impairment loss on Cemig GT’s investment in Aliança Norte, disclosed in Investees Segment.

 

Information by Segment as of and for The Year Ended December 31, 2023

Description

Energy

Gas

Investees

Eliminations (1)

Total

Generation

Transmission

Trading

Distribution

NET REVENUE

2,875

1,091

7,686

23,348

3,618

18

(1,786)

36,850

 

 

 

 

 

 

 

 

 

COST OF ENERGY, GAS AND CHARGES FOR USE OF THE NATIONAL GRID

(347)

-

(6,318)

(12,656)

(2,237)

(4)

1,740

(19,822)

 

 

 

 

 

 

 

 

 

COSTS AND EXPENSES (2)

 

 

 

 

 

 

 

 

Personnel

(148)

(137)

(27)

(875)

(73)

(48)

-

(1,308)

‘Employees and managers’ profit sharing

(16)

(16)

(3)

(102)

-

(20)

-

(157)

Post-employment obligations

(59)

(36)

(8)

(400)

-

(88)

-

(591)

Materials, outsourced services and other expenses (revenues)

(223)

(88)

(18)

(2,157)

(63)

275

46

(2,228)

Depreciation and amortization

(327)

(1)

-

(834)

(94)

(18)

-

(1,274)

Operating provisions and impairment

(29)

(14)

(7)

(455)

2

(106)

-

(609)

Construction costs

-

(172)

-

(3,600)

(300)

-

-

(4,072)

Total costs and expenses of operation

(802)

(464)

(63)

(8,423)

(528)

(5)

46

(10,239)

 

 

 

 

 

 

 

 

 

COSTS AND EXPENSES

(1,149)

(464)

(6,381)

(21,079)

(2,765)

(9)

1,786

(30,061)

 

 

 

 

 

 

 

 

 

Share of profit of equity-accounted investees and joint ventures, net of taxes

(2)

-

-

-

-

434

-

432

Gains arising from the sale of non-current asset held for sale

-

-

-

-

-

9

-

9

Result of business combination

-

-

-

-

-

-

-

-

 

 

 

 

 

 

 

 

 

INCOME BEFORE FINANCE INCOME (EXPENSES)

1,724

627

1,305

2,269

853

452

-

7,230

Finance net income (expenses)

(11)

(48)

82

(253)

(9)

(140)

-

(379)

INCOME BEFORE INCOME TAX AND SOCIAL CONTRIBUTION TAX

1,713

579

1,387

2,016

844

312

-

6,851

Income tax and social contribution tax

(326)

(114)

(428)

(405)

(248)

437

-

(1,084)

NET INCOME FOR THE YEAR

1,387

465

959

1,611

596

749

-

5,767

Equity holders of the parent

1,387

465

959

1,611

593

749

-

5,764

Non-controlling interests

-

-

-

-

3

-

-

3

 

(1)

The reconciliation between the values of the reportable segments and the accounting information on revenues and costs reflects the elimination of intercompany transactions.

(2)

The information on operational costs and expenses separated by type is segregated in accordance with the internal business model, which has immaterial differences in relation to the accounting information.

 

Information by Segment as of and for The Year Ended December 31, 2022 (restated)

Description

Energy

Gas

Investees

Eliminations (1)

Total

Generation

Transmission

Trading

Distribution

NET REVENUE

2,661

1,195

7,918

20,919

3,690

7

(1,927)

34,463

 

 

 

 

 

 

 

 

 

COST OF ENERGY, GAS AND CHARGES FOR USE OF THE NATIONAL GRID

(331)

 

(6,880)

(11,938)

(2,735)

(1)

1,865

(20,020)

 

 

 

 

 

 

 

 

 

OPERATING COSTS AND EXPENSES (3)

 

 

 

 

 

 

 

 

Personnel

(162)

(135)

(12)

(913)

(66)

(64)

 

(1,352)

‘Employees and managers’ income sharing

(15)

(11)

(6)

(40)

-

(11)

 

(83)

Post-employment obligations

(66)

(42)

(10)

(421)

-

(87)

 

(626)

Materials, outsourced services and other expenses (revenues)

(395)

(96)

(14)

(1,786)

(57)

(84)

62

(2,370)

Depreciation and amortization

(328)

-

-

(738)

(91)

(25)

 

(1,182)

Operating provisions and impairment

(18)

(3)

(34)

(398)

-

(3)

 

(456)

Construction costs

 

(291)

-

(3,193)

(52)

-

 

(3,536)

Total costs and expenses of operation

(984)

(578)

(76)

(7,489)

(266)

(274)

62

(9,605)

 

 

 

 

 

 

 

 

 

OPERATING COSTS AND EXPENSES

(1,315)

(578)

(6,956)

(19,427)

(3,001)

(275)

1,927

(29,625)

 

 

 

 

 

 

 

 

 

Share of profit of equity-accounted investees and joint ventures, net of taxes

(2)

3

 

 

 

842

 

843

Fair value of business combination

-

 

 

 

 

5

 

5

 

 

 

 

 

 

 

 

 

OPERATING INCOME BEFORE FINANCE INCOME (EXPENSES)

1,344

620

962

1,492

689

579

—

5,686

Finance net income (expenses)

(150)

(96)

34

(1,115)

(9)

(230)

 

(1,566)

INCOME BEFORE INCOME TAX AND SOCIAL CONTRIBUTION TAX

1,194

524

996

377

680

349

-

4,120

Income tax and social contribution tax

(307)

(174)

(314)

67

(199)

901

 

(26)

NET INCOME FOR THE YEAR

887

350

682

444

481

1,250

-

4,094

Equity holders of the parent

887

350

682

444

479

1,250

 

4,092

Non-controlling interests

 

 

 

 

2

 

 

2

 

(1)

The reconciliation between the values of the reportable segments and the accounting information on revenues and costs reflects the elimination of intercompany transactions.

(2)

The information on operational costs and expenses separated by type is segregated in accordance with the internal business model, which has immaterial differences in relation to the accounting information.

 

The information for assets by segment is not presented, because this is not part of the information made available to the Company’s Chief Operating Decision Maker (‘CODM’), that is the Board of Directors.

Accounting policy

The operating results of all operating segments, for which discrete financial information is available, are reviewed regularly by the CODM, to make decisions about resources to be allocated to the segment, and to assess its performance.

Segment results that are reported to the CODM include items directly attributable to the segment, as well as those that can be allocated on a reasonable basis. Unallocated items mainly comprise corporate assets and head office expenses.