Energy Co of Minas Gerais Files 20-F Annual Report

TL;DR

<b>Energy Co of Minas Gerais has filed its 20-F annual report for the fiscal year ended December 31, 2023.</b>

AI Summary

ENERGY CO OF MINAS GERAIS (CIG-C) filed a Foreign Annual Report (20-F) with the SEC on April 30, 2024. Filing is a 20-F annual report for the period ending December 31, 2023. The company operates in the Electric Services industry (SIC 4911). Key entities mentioned include Itaipu Binacional, Ministry of Mines and Energy (MME), and National Electrical Energy Agency. Various segments and assets are detailed, including DistributionSegmentMember, HydroelectricGeneration, and InvestmentPropertyCompleted. The filing references financial instruments and risk management, such as DerivativeFinancialInstruments and ForeignCurrencyRisk.

Why It Matters

For investors and stakeholders tracking ENERGY CO OF MINAS GERAIS, this filing contains several important signals. This filing provides a comprehensive overview of the company's financial performance, operations, and risk factors for the fiscal year 2023. It serves as a crucial disclosure document for investors and stakeholders, detailing the company's compliance with regulatory requirements and its strategic positioning within the Brazilian energy sector.

Risk Assessment

Risk Level: — ENERGY CO OF MINAS GERAIS shows moderate risk based on this filing. The filing is a standard annual report (20-F), which is a routine disclosure for foreign private issuers, indicating a predictable reporting cycle rather than immediate significant risk.

Analyst Insight

Review the detailed financial statements and risk factor disclosures within the 20-F filing to assess the company's financial health and operational risks for FY2023.

Key Numbers

• 2023-12-31 — Conformed Period of Report (Fiscal year end)
• 2024-04-30 — Filed As Of Date (Date of filing)

Key Players & Entities

• ENERGY CO OF MINAS GERAIS (company) — Filer
• Itaipu Binacional (company) — Mentioned entity
• Ministry of Mines and Energy (company) — Mentioned entity
• National Electrical Energy Agency (regulator) — Mentioned entity
• GREENBERG TRAURIG, LLP (company) — Mail address contact
• 4911 (dollar_amount) — Standard Industrial Classification for Electric Services

FAQ

Industry Context

The company operates within the Electric Services sector, a critical component of the energy infrastructure in Brazil.

Regulatory Implications

As a foreign private issuer, the company is subject to SEC regulations, including the requirement to file annual reports on Form 20-F.

What Investors Should Do

1. Analyze the financial statements for revenue, net income, and debt levels.
2. Review the risk factors section for potential operational, regulatory, or market challenges.
3. Examine disclosures related to key subsidiaries and joint ventures mentioned in the filing.

Key Dates

• 2023-12-31: Conformed Period of Report — End of the fiscal year for which the report is filed.
• 2024-04-30: Filed As Of Date — Date the 20-F filing was submitted to the SEC.

Year-Over-Year Comparison

This is the 20-F filing for the fiscal year 2023, following previous filings which would contain comparative financial data and operational updates.

Key Financial Figures

• $5.00 — which registered: Preferred Shares, R$5.00 par value CIG New York Stock Exchan
• $4.8521 — ated from Reais at an exchange rate of R$4.8521 to US$1.00, as certified for customs pu
• $1 — is at an exchange rate of R$4.8521 to US$1.00, as certified for customs purposes b

Filing Documents

• cig-20231231.htm (20-F) — 24778KB
• cig-ex1_bylaws.htm (EX-1.BYLAWS) — 310KB
• cig-ex12_1.htm (EX-12.1) — 11KB
• cig-ex12_2.htm (EX-12.2) — 10KB
• cig-ex13_1.htm (EX-13.1) — 6KB
• cig-ex13_2.htm (EX-13.2) — 6KB
• cig-ex97_1.htm (EX-97.1) — 43KB
• img41038154_0.jpg (GRAPHIC) — 1178KB
• img41038154_1.jpg (GRAPHIC) — 8KB
• img41038154_2.jpg (GRAPHIC) — 37KB
• img41038154_3.jpg (GRAPHIC) — 105KB
• img41038154_4.jpg (GRAPHIC) — 40KB
• img41038154_5.jpg (GRAPHIC) — 8KB
• img41038154_6.jpg (GRAPHIC) — 8KB
• img55569768_0.jpg (GRAPHIC) — 4KB
• img96230274_0.jpg (GRAPHIC) — 6KB
• 0000950170-24-050630.txt (&nbsp;) — 114783KB
• cig-20231231.xsd (EX-101.SCH) — 5796KB
• cig-20231231_htm.xml (XML) — 37501KB

Item 18

Item 17 Item 18 If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) Yes No Table of Contents Table of Contents PART I

Identity of Directors, Senior Management and Advisers

Item 1. Identity of Directors, Senior Management and Advisers 12

Offer Statistics and Expected Timetable

Item 2. Offer Statistics and Expected Timetable 12

Key Information

Item 3. Key Information 12

Information on the Company

Item 4. Information on the Company 40

Unresolved Staff Comments

Item 4A. Unresolved Staff Comments 94

Operating and Financial Review and Prospects

Item 5. Operating and Financial Review and Prospects 95

Directors, Senior Managers and Employees

Item 6. Directors, Senior Managers and Employees 112

Major shareholders and related party transactions

Item 7. Major shareholders and related party transactions 124

Financial Information

Item 8. Financial Information 126

The Offer and Listing

Item 9. The Offer and Listing 133

Additional Information

Item 10. Additional Information 139

Quantitative and Qualitative Disclosures about Market Risk

Item 11. Quantitative and Qualitative Disclosures about Market Risk 159

Description of Securities Other than Equity Securities

Item 12. Description of Securities Other than Equity Securities 163 PART II

Defaults, Dividend Arrearages and Delinquencies

Item 13. Defaults, Dividend Arrearages and Delinquencies 165

Material Modifications to the Rights of Security Holders and Use of Proceeds

Item 14. Material Modifications to the Rights of Security Holders and Use of Proceeds 165

Controls and procedures

Item 15. Controls and procedures 165

[Reserved]

Item 16. [Reserved] 166

Audit Committee Financial Expert

Item 16A. Audit Committee Financial Expert 166

Code of Ethics

Item 16B. Code of Ethics 166

Principal Accountant Fees and Services

Item 16C. Principal Accountant Fees and Services 166

Exemptions from the Listing Standards for Audit Committees

Item 16D. Exemptions from the Listing Standards for Audit Committees 167

Purchases of Equity Securities by the Issuer and Affiliated Purchasers

Item 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers 167

Change in Registrant's Certifying Accountant

Item 16F. Change in Registrant's Certifying Accountant 167

Corporate Governance

Item 16G. Corporate Governance 167

Mine Safety Disclosure

Item 16H. Mine Safety Disclosure 168

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 16I. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 169

Insider trading policies

Item 16J. Insider trading policies 169

Cybersecurity

Item 16K. Cybersecurity 169 PART III

Financial Statements

Item 17. Financial Statements 171

Financial Statements

Item 18. Financial Statements 171

Exhibits

Item 19. Exhibits 172 ANNUAL REPORT AND FORM 20-F | 2023 4 Table of Contents PRESENTATION OF FINANCIAL INFORMATION The Companhia Energtica de Minas Gerais – CEMIG (or Company) is a state-controlled mixed capital company ( sociedade por aes, de economia mista' ) organized under the laws of the Federative Republic of Brazil, or Brazil. References in this annual report to CEMIG', the CEMIG Group', the Company', we', us', our' and ourselves' are to Companhia Energtica de Minas Gerais – CEMIG and its consolidated subsidiaries, and references to CEMIG Holding' are to Companhia Energtica de Minas Gerais – CEMIG on an individual basis, except when the context otherwise requires. References to the Real ,' Reais ' or R$' are to Brazilian Reais (plural) and the Brazilian Real (singular), the official currency of Brazil. References to U.S. Dollars', Dollars' or US$' are to United States Dollars. We maintain our books and records in Reais . We prepare our statutory financial statements in accordance with the accounting practices adopted in Brazil, and with the International Financial Reporting Standards (IFRS'), as issued by the International Accounting Standards Board (IASB'). For purposes of this annual report, we prepared our consolidated financial statements in accordance with the IFRS, as issued by the IASB. This annual report contains translations of certain Real amounts into U.S. dollars at specified rates solely for the convenience of the reader. Unless otherwise indicated, such U.S. dollar amounts have been translated from Reais at an exchange rate of R$4.8521 to US$1.00, as certified for customs purposes by the U.S. Federal Reserve Board as of December 29, 2023. We cannot guarantee that U.S. dollars can be converted into Reais , or that Reais can be converted into U.S. dollars, at the above rate or at any other rate. Certain figures included in this annual report have been subject to rounding adjustments. Accordingly, figures shown as totals and/or su

Ide ntity of Directors, Senior Management and Advisers

Item 1. Ide ntity of Directors, Senior Management and Advisers Not applicable.

Offe r Statistics and Expected Timetable

Item 2. Offe r Statistics and Expected Timetable Not applicable.

Key Information

Item 3. Key Information A. [Reserved] Not applicable. B. Capitalization and Indebtedness Not applicable. C. Reasons for the Offer and Use of Proceeds Not applicable. D. Risk Factors The investor should take into account the risks described below, and the other information contained in this Annual Report, when evaluating an investment in our Company. Risks Relating to CEMIG We are not certain whether new concessions or authorizations, as applicable, will be obtained, nor that our present concessions or authorizations will be extended on terms similar to those currently in effect, nor that any compensation we receive in the event of non-extension will be sufficient to cover the full value of our investment. We operate most of our power generation, transmission and distribution activities, and related services under concession agreements entered into with the Brazilian Federal Government or pursuant to authorizations granted to companies of the CEMIG Group. The Brazilian Constitution determines that all concessions related to public services must be granted through a bidding process. In 1995, in order to implement these constitutional provisions, the Brazilian Federal Government adopted certain laws and regulations, which are collectively known as the Concessions Law,' which governs bidding procedures in the electric power industry. On September 11, 2012, the Brazilian Federal Government issued Provisional Act 579 (PA 579'), later converted into Law 12,783 of January 11, 2013 (Law 12,783/13'), which governs the extensions of concessions granted prior to Law 9,074/95. Law 12,783/13 determines that, as of September 12, 2012, concessions prior to Law 9,074/95 can be extended once, for up to 30 years, provided that the concession operators accept and meet certain conditions described in such Law. With respect to generation activities, the Company chose not to accept the mechanism offered to extend the generation concessions that would expire in the

View Full Filing

View this 20-F filing on SEC EDGAR