Financial Position and Liabilities - As of December 31, 2024, the company has no outstanding indebtedness denominated in foreign currencies and does not have substantial revenues in foreign currencies [1052]. - The company has net liabilities exposed to interest rate fluctuations amounting to R2,565 million as of December 31, 2024, with significant liabilities indexed to inflation [1065]. - The company’s cash equivalents and marketable securities total R4,898 million, indicating a net liability exposure [1061]. - Total financial obligations amount to 22,300 million reais, with principal payments of 19,374 million reais and interest payments of 1,528 million reais [1074]. - Loans and debentures account for 18,646 million reais, with principal payments of 16,000 million reais and interest payments of 2,646 million reais over various time frames [1074]. - The pension plan deficit (FORLUZ) totals 695 million reais, with principal payments of 570 million reais and interest payments of 125 million reais [1074]. - Supplier obligations total 2,926 million reais, primarily consisting of 2,761 million reais in principal payments [1074]. - Future obligations include 5,672 million reais due in 1 to 5 years and 6,124 million reais due over 5 years [1074]. - The company has a total of 2,464 million reais in principal payments due within 3 months to 1 year [1074]. - The company has 5,354 million reais in principal payments due within 1 to 5 years for loans and debentures [1074]. - The company has a total of 2,298 million reais in interest payments due over 1 to 5 years [1074]. - Interest payments on loans and debentures are projected at 706 million reais for 3 months to 1 year and 2,217 million reais for 1 to 5 years [1074]. - Fixed rate obligations include 2,926 million reais to suppliers, with no interest payments reported [1074]. Risk Management - The company anticipates a probable scenario relief of R10 million in exposed liabilities due to foreign exchange fluctuations [1054]. - The company manages liquidity risk by projecting monthly cash flow balances over a 12-month period and daily liquidity over 180 days [1070]. - The company’s financial strategy includes investing in private credit investment funds and bank CDs to ensure liquidity while seeking profitability [1071]. - Any reduction in the company's ratings could lead to higher financing costs and more stringent covenants, impacting operational flexibility [1073]. Interest Rates and Projections - In a probable scenario, the company estimates the Selic rate to be 9.15% and the TJLP rate to be 7.94% by December 31, 2025 [1062]. - The company reported a net cash inflow of R381.1 million of outstanding debt, with a positive result of R$521 million from these transactions [1059].
CEMIG(CIG_C) - 2024 Q4 - Annual Report