Companhia Energetica de Minas Gerais CEMIG : Morgan Stanley 12th Annual Latin America Conference / 24th Santander Annual Latin America Conference

2020

Regaining

Financial Solidity

Some statements and estimates in this material may represent expectations about future events or results that involve risks and uncertainties known and unknown. There is no guarantee that the events or results referred to in these expectations will occur.

These expectations are based on present assumptions and analyses from the viewpoint of our management, based on their experience, the macroeconomic environment, market conditions in the energy sector and our expected future results, many of which are not under Cemig's control.

Important factors that can lead to significant differences between actual results and projections about future events or results include Cemig's business strategy, Brazilian and international economic conditions, technology, Cemig´s financial strategy, changes in the energy sector, hydrological conditions, conditions in the financial markets, uncertainty regarding future results of operations, plans and objectives as well as other factors. Because of these and other factors, our actual results may differ significantly from those indicated in or implied by these statements.

The information and opinions contained herein should not be understood as a recommendation to potential investors and no investment decision should be based on the truthfulness, or completeness as of the date hereof of this information or these opinions. None of Cemig's professionals nor any of their related parties or representatives shall have any liability for any losses that may result from the use of the content of this presentation.

To evaluate the risks and uncertainties as they relate to Cemig, and to obtain additional information about factors that could lead to different results from those estimated by Cemig, please consult the section on Risk Factors included in our Formulário de Referência filed with the Brazilian Securities Commission - CVM, and in Form 20-F filed with the U.S. Securities and Exchange Commission - SEC.

In this material, financial amounts are in R$ million (R$ mn) unless otherwise stated. Financial data reflect the adoption of IFRS

2

DISCLAIMER

Brazil's Leading Power Utility

3

Integrated Power	Market share in the
Utility in Brazil	free market

	(2)	1st	(2)
1st	5th
3rd

Market Cap	EBITDA 2018
US$5.2B (1)	US$810 mn(3)

In the Power Industry since 1952

LEADER

1. As of January 04th, 2020
2. In the Brazilian Energy Industry
3. FX R$/US$4,04 -on January 04th, 2020

Cemig: in Numbers

4

88 Power plants

80

6

1

1

5.9	Total installed capacity
GW

567,634 Electricity Distribution lines

km

9,830 Power Transmission lines

POWER UTILITY

km

Cemig at a Glance

5

	B N D E S P A R	F I A D i n â m i c a	O u t r o s A c i o n i s t a s
50.97% ON	17.30% Total 11.14% ON	5.52% Total	9.98% ON	7.11% Total	27.91% ON	70.07% Total
0% PN	2.70% PN		5.67% PN		91.63% PN

Oct 2019

1 Based in State of Minas Gerais

2 Among the most liquid stocks in Brazil's electricity sector

• listed on New York, São Paulo and Madrid
• More than 150,000 shareholders in more than 40 countries
• Average daily trading volume in 2019

R$162.3M in Bovespa and US$12.7M in NYSE

3 Solid dividend policy

SHAREHOLDER STRUCTURE

Cemig is Uniquely Positioned

6

Presence in

RR

AP

25

states

AM

PA

MA

CE

RN

PI

PB

TO

PE

AC

RO

AL

BA	SE
MT
GO DF
MG

Integrated Power Utility in Brazil

MS

SP

PR

SC

ES

RJ

(1)	2nd	6th	RS
1st			Power Generation
	Largest Power	Largest Power			Power Transmission
Electricity			Electricity Distribution
Transmission	Generation			Cemig "Free Consumer" Clients
Distributor
Group	Group			Wind Power Generation
					Natural Gas Distribution

INTEGRATED

1. In terms of length of electricity distribution lines - January, 2020

Leader in Renewable Hydro Power Energy

7

Power Generation by Source

9%1%

64%

	97%
1%
25%	2%
Brazil 2018	Cemig 2018

Fossil Source Fuels		Nuclear		Hydro		Others

RENEWABLE LEADER

Source: EPE [BEN 2017 - Preliminar Results and IEA [Key World EnergyStatistics-2015]

Ebitda

5.538									4,915
								4,371
				3.492	3.781	4.534
		2.638
						3.383
									9M19
2015	2016	2017	2018		LTM	2019

Guidance

LTM: Last twelve months

R$ million

Net Income

3,632

2.469

1.700 2.630

1.001

335

9M19

2015 2016 2017 2018 LTM

8

GENERATION

Breakdown of Ebitda

Diversified, Low Risk Business Portfolio

2018		Sep/19
745	481	1.304
1.502
1.534	1.598

Cemig GT		Cemig D		Others

CASH

Most of the revenues are inflation protected

Solid dividend policy

Bylaws

• Guaranteed - The minimum annual dividend

Shares	Number of Shares	Guarantee	Minimum Annual
Common	487,614,213	-
Preferred	971,138,388	R$ 0.50	R$ 485,569,194
Total	1,458,752,601	-	R$ 485,569,194

• Minimum payout - 50% of the net profit

Dividends approved to be paid in 2019:

• R$867 million
• • R$210 million - Interest on Equity
  • • R$105mn paid on 06/28/2019
    • R$105mn paid on 12/27/2019
  • R$657 million - Dividends (paid on 12/27/2019)
• R$0.59 per share (preferred and common shares)
• Dividend yield of 4.2%*

9

DIVIDENDS

* closing price of preferred shares on December 30, 2018

Balance Sheet

10

3,03x Net debt to Ebitda - 9M19

42.4% Debt in foreign currency *

1.6 R$ billion Cash on hand

19.0 R$ billion Net Revenue - 9M19

STABILITY

* Debt in Dollar converted into CDI percentage per hedging instrument, within a band of Exchange variation

Ebitda Consolidated 2019 - Guidance

	354	199						4,915		237	82				5,239
	487															-4
					-49										4,832
	3,917					-136		4,534

1. 2018 Ebitda (3,781) updated to June 2019 R$.
2. Light, LightGer, Santo Antônio, Telecom, Wind farms (Parajuru and Volta do Rio), generation indemnity and Quotas revenue.
3. Calculation excludes cashflow from sale of Light.

Net debt/Ebitda - Eurobond	Net debt/Ebitda	Debentures - 7th Issue
			4,25	3,50	3,50
4,25	4,25		Cemig GT
	4,33
		3,50	3,22
			2,66
3,27					3,80
	2,68
	2,55	Cemig D
					2,02
Dec/18	jun/19	Dec/19	Dec/18	Jun/19	Dec/19
	Limit	Projection	Limit	Projection

11

PROJECTION

Net debt and Ebitda are adjusted according to the definitions in the debt contracts.

Cemig - consolidated debt profile

12

Maturities timetable - Average tenor: 4.4 years

Net debt: R$13.6 bn

6.720

2.333

1.795

						1.177	797			973
650
2019	2020	2021	2022	2023	2024	2025

R$ million - 9M19

Main indexors

42%

31%

2%

25%

CDI IPCA Dólar Others

• Debt in Dollar converted into CDI percentage per hedging instrument, within a band of Exchange variation

Cost of debt - %					Leverage - %
15,89					Net debt
14,28					4,98	3,52	3,46
					3,01	2,82	3,03
					Ebitda
9,09	9,12	9,32	9,04	7,96		50,4
					46,1	44,3	43,2		44,1
							39,8

8,40
6,01	5,23		5,53	Net debt
4,58	4,84

3,74																			Stockholders'
																				equity + Net debt	2016	2017	2018 mar/19 jun/19* sep/19*
2015	2016		2017	2018			mar/19	jun/19		sep/19
							Real						Nominal

* Adjusted Ebitda

Cemig D - debt profile

13

Maturities timetable - Average tenor: 4.1 years

Net debt : R$5.6 bn

				1.080							973
		802			778	777					738
										524
88
2019	2020	2021	2022	2023	2024	2025	2026

R$ million - 9M19

Main indexors

62%

1%

37%

CDI IPCA Others

Cost of debt - %		Leverage - %

15,87

14,31
		8,93	8,94	9,28	8,86
						6,65
	8,06
		5,87	5,08	4,56	5,37
4,01			3,68
2015	2016	2017	2018	mar/19	jun/19	sep/19

Net debt	12,55
Ebitda		5,84	3,49	2,99	3,01	2,91
	68,5	56,5
		53,5	51,5	46,0	48,4
Net debt
Stockholders'
equity + Net debt	2016	2017	2018	mar/19 jun/19* Sep/19*

Real Nominal

* Adjusted Ebitda

Maturities timetable - Average tenor: 4.4 years

Net debt : R$7.5 bn

Cemig GT - debt profile	14
			R$ million - 9M19
		Main indexors

6.196

77%

13%

8%

2%

502	634	618	348	0
2019	2020	2021	2022	2023	2024

CDI IPCA Dólar Others

• Debt in Dollar converted into CDI percentage per hedging instrument, within a band of Exchange variation

		Cost of debt - %					Leverage - %
14,41	16,03						Net debt
						5,60	3,78	5,14	3,95	3,55	3,58
							Ebitda
		9,23	9,36	9,46	9,3	9,12		62,9		60,7
									60,6
											57,7		56,4
	8,59											55,1
		6,14			5,77	5,89	Net debt
		5,45	4,71
3,66						Stockholders'
							equity + Net debt	2016	2017	2018 mar/19 jun/19*	sep/19
2015	2016	2017	2018	mar/19	jun/19	Sep/19
		Real		Nominal

* Adjusted Ebitda

Divestment program

Strategy was designed to deleverage Cemig

Company		Stake		Amount		Status
	%		R$ MM
						Realized
	9.86%	717¹		Block trade completed
		25%		80¹		Transfer, to Taesa, completed (November, 2017)
		100%		649¹		Auction for sale of assets concluded - August 08, 2018
Consórcios de		24.50%		0¹		Auction concluded- in the process of assignment of contracts
Exploração de Gás
		10.97% 5		625¹		Sales of 33,333,333 shares, through follow-on, on July 11, 2019
						In progress
		-		-³		Debt reprofiling and sale of assets
	22.58% 5	1,3574		Lock-up of 90 days. 68,621,264 shares available for sale
		15%		727²		Resumption of negotiations with the potential buyer
		49% ON	1,472²		Structuring of sale model in legal analysis
		100% PN
		12%		1,677²		Available for sale
Cachoeirão, Pipoca,	49%	128²		Available for sale
Paracambi

1. Total value
2. Book value
3. Amount related to the anticipation of receivables due by Renova
4. Market value(B3) on July 16th, 2019: R$19.78/share
5. Stake after dilution of 100,000,000 shares held on July 11th, 2019

15

ASSET SALE

Improvement in credit quality

16

A+(bra)

Cemig H, Cemig GT and Cemig D

National Scale

BB-

Cemig H, Cemig GT e Cemig D

Global Scale

Investment grade

Speculative Grade

AAA

AA+

AA

AA-

A+

A

A-

BBB+

BBB

BBB-

BB+

BB

BB-

B+

B

B-

CCC

CC

C

RD/D

Bond

brA+

Cemig H, Cemig GT e Cemig D

National Scale

B

Cemig H, Cemig GT e Cemig D

Global Scale

Investment grade

Speculative Grade

AAA

AA+

AA

AA-

A+

A

A-

BBB+

BBB

BBB-

BB+

BB

BB-

B+

B

B-

CCC+

CCC

CCC-

CC

C

D

Bond

Baa1.br

Cemig H, Cemig GT e Cemig D

National Scale

B1

Cemig H, Cemig GT e Cemig D

Global Scale

Investment grade

Speculative Grade

Aaa

Aa1

Aa2

Aa3

A1

A2

A3

Baa1

Baa2

Baa3

Ba1

Ba2

Ba3

B1

B2

B3

Caa1

Caa2

Caa3

Ca

C

RATING

Result for Cemig D Tariff Review

17

Aneel approved readjustment in the Technical Note 45/2018

• May 28th anniversary regulatory date

Main points of the Review for the 4th Tariff Cycle:

• Investment around R$ 5 billion
• Investment on 'Special obligations´ around R$ 1.2 billion
• Opex: Cemig D scores above average in efficiency metrics

Regulatory asset base (RAB)	2013	2018
Remuneration Base - gross R$	15,724	20,490
Remuneration Base - net R$	5,849	8,906
Average depreciation rate	3.84 %	3.84%
WACC	7.51%	8.09%
Remuneration of the special obligations	-	149
CAIMI R$	147	333
QRR R$ - Depreciation (Gross RAB x Dep rate)	590	787
Remuneration of capital R$ (Net RAB x WACC)	587	1,236

FAIR READJUSTMENT

Currency - April/2018

Cemig GT: Supply/demand

Position in September, 2019

												Supply							Own generation
Average MW 5000																					Purchased
4000
3000		2.403	2.187							2.306	2.353		2.163
2000			1.869		1.713			2.057
																		2.057		2.052				1.633
1000		1.434	1.516		1.512		1.512	1.510	1.510		1.505		1.120
0							702			702				702
	2018	2019		2020		2021	2022	2023		2024		2025		2026		2027				2028
Total Supply	3,837	3,703		3,381		3,225	3,816	3,863		3,668	3,177	2,759	2,754			2,335
Current Balance		-	143		37		-204	147	1,038		1,431	1,243	1,251	1,366			824
	3,837	3,560		3,344		3,429	3,669	2,825		2,237	1,934	1,508	1,388			1,511
Total Demand
5000												Demand
Average MW	212
4000				171					841
3000								618				1.521		1.771		1.841
	3.040	3.013					2.882	3.122						1.799		1.783				1.803
2000			2.797		2.278
				1.690
					1.387
1000																961							964
																	841
0		585	547		547		547	547	547		547		547		547			547				547
	2018	2019		2020		2021	2022	2023		2024		2025		2026		2027				2028

Sales: Regulated Market Sales: Free Market Probable renewals Spot Market

18

POWER BALANCE

Investor Relations

Tel: [phone]

[e-mail]

http://ri.cemig.com.br

Cemig D: Ebitda 2019

20

										88	77	-8		2,380
531	84					2,135
				-6	-42										2,153
1,591		2,007

Guidance

Dívida Net Debt / Corporate Ebitda 3.49

2.04

1.46

2018

2019

2020

(1) 2018 Realized Ebitda (1,534) adjusted to June 2019 R$.

R$ mn (June 2019)

Cemig GT: Ebitda 2019

									Ebitda									2,544
	228	56				2,354	43	45	24
	237
	309					-99										2,232
					2,077
	1,557

Net Debt / Corporate Ebitda

5,14

2,982,59

2018

2019

2020

1. 2018 adjusted Ebitda (1,517) adjusted to June 2019 R$.
2. Parajuru, Volta do Rio and wholly-owned subsidiaries of the Cemig parent company.

(3)

Includes PMSO, PDV, other revenues and expenses and non-recurring items.

R$ mn (June 2019)

21

Guidance

CEMIG - Guidance, 2019-23

22

Ebitda breakdown

1. Cemig GT and its subsidiaries.

EBITDA

			5,982	6,195
		5,239	5,509
	4,915		5,786
		5,503
		4,832	5,124
3,917	4,534

2018

2019

2020

2021

2022

2023

R$ mn (June 2019)

Summary of Covenant Package (Eurobond)

23

Cemig Consolidated (Guarantor)

Cemig GT (Issuer & Restricted Subsidiaries)

 Maintenance Covenants

Leverage Maintenance

	Covenant Net Debt / Covenant EBITDA	Cemig
	31/Dec/2017 and 30/Jun/2018	5.00x
	31/Dec/2018 and 30/Jun/2019	4.25x
	31/Dec/2019 and 30/Jun/2020	3.50x
	31/Dec/2020 and s/a thereafter	3.00x
	Liens Maintenance
	Total Secured Debt / Covenant EBITDA	Cemig
	31/Dec/2017	2.00x
	30/Jun/2018 and semi-annually thereafter	1.75x

Dividend Payments

Minimum Legally Required Only

 Maintenance Covenants

Leverage Maintenance

Covenant Net Debt / Covenant EBITDA	Cemig GT
31/Dec/2017 and 30/Jun/2018	5.50x
31/Dec/2018 and 30/Jun/2019	5.00x
31/Dec/2019 and 30/Jun/2020	4.50x
31/Dec/2020 and 30/jun/2021	3.00x
31/Dec/2021 and s/a thereafter	2.50x
Liens Maintenance
Total Secured Debt / Covenant EBITDA	Cemig GT
31/Dec/2017 and semi-annually thereafter	1.50x

• Incurrence Covenants

Limitation on Incurrence of Indebtedness

Covenant Net Debt / Covenant EBITDA	Cemig GT
On or Before 31/Dec/2018	5.50x
On or Before 31/Dec/2019	5.00x
On or Before 31/Dec/2020	4.50x
On or Before 31/Dec/2021	3.00x
Thereafter	2.50x
(+) General Basket of US$100mm or 3% of CNTA
Limitation on Incurrence of Liens
Total Secured Debt / Covenant EBITDA	1.50x
Restricted Payments
% of Net Income from Sept. 30, 2017	Cemig GT
If Cov. Net Debt / Cov. EBITDA > 2.5x	0%
If Cov. Net Debt / Cov. EBITDA ≤ 2.5x	50%

1. Minimum Legally Required Dividends Carve-Out

1. US$30mm or PF 2.5x Cov. Net Debt / Cov. EBITDA

Asset Sales

Transaction with Affiliates

Limitation on Sale and Lease-Backs

Limitation on Dividend Restrictions on Restricted Subs

Consolidation, Merger, Conveyance, Sale or Lease

Change of Control Put @ 101%

Additional Provisions

• Penalty Interest for Failure to Comply with any Maintenance Covenant: +2.0% p.a. for as long as any Maintenance Covenant is breached

 Penalty Interest for Failure to Implement Bank Debt Refinancing:

+2.0% p.a. if Bank Debt Refinancing not implemented by Feb. 15, 2018

Covenant Ebitda reconciliation

24

12 months	9M19
R$ (in million)	GT	H
Net income for the period/year	1,547	3,633
Net financial expenses	-1,025	-2,232
Income tax and Social Contribution tax	1,032	1,918
depreciation and amortization; minus	261	975
EBTIDA	1,815	4,294
minority interest result; minus	113	-134
provisions for the variation in value of put option obligations; minus	78	64
non-operating result (which includes any gains on asset sales and any asset write-off or	107	147
impairments); plus
non-cash revenues related to transmission and generation indemnification; plus	-139	-139
cash dividends received from minority investments (as measured in the statement of cash flows);	118	263
minus
monetary updating of concession grant fees; plus	-320	-320
cash inflows related to concession grant fees; plus	257	257
cash inflows related to transmission revenue for cost of capital coverage; plus	179	179
cash inflows from generation indemnification, provided that such amount shall not exceed 30,0%	1,027	521
of the sum of clauses (i) through (xvii) of this definition,
Covenant EBITDA	3,235	5,132

Covenant Net Debt reconciliation

25

12 months	9M19
R$ (in million)	GT			H
Consolidated Indebtedness	8,298			15,184
debt contracts with Forluz; plus	134			590
the carrying liability of any put option obligation, less	467			467
consolidated cash and cash equivalents and consolidated marketable securities recorded as	-843			-1,558
current assets.
Covenant Net Debt	8.056			14.683
Covenant Net Debt to Covenant EBITDA Ratio	2,49			2,86
Limit Covenant Net Debt to Covenant EBITDA Ratio	5.00			4.25
Total Secured Debt				1.000
Total Secured Debt to Covenant EBITDA Ratio				0,19

										Covenant	26
				Net debt/Ebitda
		Eurobonds´ Covenant - (LTM - Last twelve months)
	5,00	5,00						5,50	5,50	5,00	5,00	5,00
										4,50
			4,25	4,25	4,25
H						3,50	GT
Cemig	3,58	3,45					Cemig	3,53	3,62
3,21						2,62	2,43
	2,99	2,97				2,14
	2017	jun/18	2018	mar/19	jun/19	2019		2017	jun/18	2018	mar/19	jun/19	2019
			Limit	Realized					Limit	Realized

Reprofiling´s Covenant - (LTM - Last twelve months)

4,50	4,50	4,25	4,25
			3,50
H			GT

5,50

5,00

5,00

4,50

4,50

7,50	7,50
	4.50
D	3,80	3,80

Cemig	3,23	3,12	3,07	2,47	Cemig

3,04 3,10

3,71 3,61

Cemig	4,09	3,47	3,97
		2,40
	2017	jun/18	2018 jun/19 2019

2017	jun/18	2018	jun/19	2019
	Limit		Realized

2017 jun/18 2018 jun/19 2019

Limit Realized

Limit

Realized

Brazilian National Grid: projections for 2019 - 23

27

				90.000
				80.000
average	70.000
40.000
				60.000
MW	50.000
30.000
				20.000
				10.000
				-
				2018		2019		2020		2021		2022		2023
			Surplus (%)			17,8%		14,9%		13,0%		9,4%		5,8%
			Suplus			12.372		10.933		9.897		7.426		4.758
			Reserve			2.792		2.585		2.646		3.879		3.906
			Thermal			15.081		18.220		19.514		19.585		19.598
			Wind, Bio, Solar			9.403		8.268		8.548		8.762		9.260
			Hydro				57.300		57.649		57.709		57.792		57.801
			Market			69.412		73.203		75.874		78.712		81.901

Source: May 2019 monthly operational survey (PMO).

*Source:

-

10

20

30

40

50

60

70

80

90

100

ONS

Mar-14

Jan-14

Feb-14

Apr-14

May-14

Jun-14

Jul-14

Aug-14

Sep-14

Oct-14

Nov-14

Dec-14

Jan-15

Feb-15

Mar-15

Apr-15

May-15

Jun-15

Northeast

Jul-15

Aug-15

Sep-15

Oct-15

Nov-15

Dec-15

Jan-16

Feb-16

Mar-16

Apr-16

May-16

North

Jun-16

Sep-16

Jul-16

Aug-16

Oct-16

Nov-16

Dec-16

South

Jan-17

Level

Feb-17

Mar-17

Apr-17

May-17

Jun-17

Jul-17

Aug-17

of

Sep-17

Oct-17

Southeast/Midwest

Nov-17

regionby

reservoirs

Dec-17

Jan-18

Feb-18

Mar-18

Apr-18

May-18

Jun-18

Jul-18

Aug-18

Sep-18

Oct-18

Nov-18

(%)*

(%)

Dec-18

Jan-19

Feb-19

Mar-19

Apr-19

May-19

Jun-19

Jul-19

Aug-19

Sep-19

Oct-19

Nov-19

28

Dec-19

20,11

29,82

37,95

15,08

Spot price

29

Brazil: eletricity spot price - monthly average (R$/MWh)

900

800

700

600

655,52

500

400

260,53

280,35

300

270,84

303,81

163,94

227,30

200

191,89

115,57

100

0

jul/12 set/12

jul/13

set/13

jul/14

set/14

jul/15

set/15

jul/16

set/16

jul/17 set/17

jul/18

set/18

jul/19

set/19

jan/12

jan/13

jan/14

jan/15

jan/16

jan/17

jan/18

abr/18

jan/19

dez/19

fev/12

abr/12 jun/12

ago/12

out/12

dez/12

fev/13 abr/13 jun/13

ago/13

out/13

dez/13

fev/14 abr/14 jun/14

ago/14

out/14 dez/14

fev/15 abr/15 jun/15

ago/15

out/15

dez/15 fev/16 abr/16 jun/16

ago/16

out/16

dez/16

fev/17 abr/17

jun/17

ago/17

out/17 dez/17 fev/18

jun/18

ago/18

out/18

dez/18

fev/19 abr/19 jun/19

ago/19

out/19

mar/12 mai/12

nov/12

mar/13 mai/13

nov/13

mar/14

mai/14

nov/14

mar/15 mai/15

nov/15

mar/16 mai/16

nov/16

mar/17

mai/17

nov/17

mar/18

mai/18

nov/18

mar/19 mai/19

nov/19

SE/CO

2012 average

2013 average

2014 average

2015 average

2016 average

2017 average

2018 average

2019 average

Cemig D Losses

30

Total losses/Total load

7.112	6.687	6.761	6.776	6.606	6.577	6.691	6.747
14,24%	13,29%	13,29%	13,21%	12,82%	12,68%	12,84%	12,94%
10,92%	10,92%	11,75%	11,75%	11,75%	11,75%	11,75%	11,75%
dez/17	mar/18	jun/18	set/18	dez/18	mar/19	jun/19	sep/19*
	Non-technical losses/Total Low voltage market	20,00%
2.627
							18,00%
	2.159	2.177	2.277	2.087		2.121	2.174	16,00%
		2.028
		14,00%
13,11%	12,86%	13,00%	12,82%					12,00%
11,65%		11,68%	11,68%	10,00%
				11,09%
								8,00%
7,63%	7,63%	7,31%	7,31%	7,31%	7,31%	7,04%	7,04%	6,00%
								4,00%
								2,00%
								0,00%
dez/17	mar/18	jun/18	set/18	dez/18	mar/19	jun/19	sep/19*

Cemig D: 9M19 Ebitda, Opex - Regulatory vs. Real

31

R$ mn

Opex

2.133	485				824	129	2,927	109
206	26	94	764
		Profit shares			Opex:
								Regulatory vs. Real
					Opex Regulatory vs. Real adj	2,163	137.2%
					101.4%
					Difference: R$ 30mn		Difference: R$ 794mn
Regulatory	PMSO	Pension	Voluntary	Fines, etc.	Provisions	AFDA*	Real	Profit
		plan	Retirement…					shares
						( * Allowance for doubtful accounts )

1.691

62

30

764

830

1.598

Ebitda:

126

65

Adjusted vs. Regulatory

Ebitda

94.5%

Difference: R$ -93mn

Regulatory

Other

Opex

Provisions

Non-

Other

Adjustment Real Ebitda

Ebitda

revenues

for

technical

differences

ICMS*

profit

losses

sharing

case

* Exclusion of ICMS tax from the taxable base for Pasep and Cofins taxes

Strong shareholders base assures liquidity

32

Average daily trading volume in 2018

BOVESPA:	R$120.1 million
NYSE:	US$10.4 million	EUROPE
		Austria	Germany	Italy	Portugal
	North America	Belgium	Guernsey	Malta	Spain
	Canada	Denmark	Greece	Jersey	Sweden
	France	Holland	Liechtenstein Switzerland
	USA
	Finland	Ireland	Luxembourg	UK

Norway

Central America

Bahamas

Bermuda

Cayman islands

South America

Argentina

Brazil

Chile

Uruguay

LATIBEX (2018)

XCMIG € 1.1 million

NYSE (2018)

CIG US$ 2.33 billion CIG.C US$ 2.5 million

BOVESPA (2018)

CMIG4 R$ 26.6 billion

CMIG3 R$ 2.8 billion

Middle East

UAE

Kuwait

Oman

Saudi Arabia

Africa	OCEANIA
South Africa	Australia
	New Zeland

ASIA

Brunei

Japan

India

Malaysia

Singapore

South Korea

Taiwan

China

• Shares traded on 3 stock exchanges
• Over 140,000 stockholders in 38 countries

Ebitda companies

33

3.453
		1.598	2.044
	1.304
				1.113	921
						383	182
Cemig	Cemig GT	Cemig D	Light (1)	Santo	Taesa	Aliança*	Gasmig*
				Antônio

Companies	9M19	% Cemig	Proportional	Guidance 2019
Cemig	3,383			4,534	-	4,915
Cemig GT	1,304	100.00	1,304	2,077	-	2,354
Cemig D	1,598	100.00	1,598	2,007	-	2,135
Light	2,044	22.58	462
Santo Antônio	1,113	15.51	173
Taesa	921	21.68	200
Aliança*	383	45.00	172
Gasmig*	182	99.57	181

*Estimated

(1) ICMS tax from the taxable base for Pasep and Cofins taxes

34

637 R$ mn RAP - Annual Permitted Revenues (2019/2020 )

RR

4,930 Km in transmission line

AM

2.9	Total installed capacity	AC	RO
GW

Net revenue 5.964

5.121				Ebitda
		Net profit
			792	1.244	1.304
		5
9M18	9M19	9M18	9M19	9M18	9M19

AP

PA		MA		CE	RN
			PI		PB
	TO				PE
				AL
MT			BA		SE
GO	DF	MG
MS
SP					ES
PR
					RJ
SC

RS

Power Generation

Power Transmission

Cemig "Free Consumer" Clients

Wind Power Generation

Natural Gas Distribution

35

8,9 R$ bn Net RAB - Regulatory Asset Base

536,569 Km in distribution line

8.5 Number of consumers (thousands)

Net revenue

RR

AM

AC RO

AP

PA

MA

RN

CE

PB

PI

PE

TO

AL

MT

BA

SE

GO DF

MG

MS

ES

SP

PR

RJ

10.444

11.695

Net profit		Ebitda
346	1.252	1150	1.598

SC

RS

Electricity Distribution

9M18

9M19

9M18

9M19

9M18

9M19

36

8.5 R$ bn Net RAB - Regulatory Asset Base

1,024 MW installed capacity

648 MWavg Assured Energy

RR

5.9 R$ bn of market capitalization

Nov,21st

				AM
Net revenue		AC	RO
5.621	5.811	Net profit	Ebitda

918 959

67 175

9M18

9M19

9M18

9M19

9M18

9M19

BNDESPAR Market

22.6%

6.3%

71.1%

AP

	PA		MA		CE	RN
				PI		PB
					PE
		TO
					AL
MT						SE
			BA
		GO DF

MS		MG	ES
SP
		RJ
	PR
			Power Generation
	SC		Power Transmission
	RS		Electricity Distribution
			Cemig "Free Consumer" Clients
			Wind Power Generation

37

2.6 R$ bn RAP - Annual Permitted Revenues (2018/2019 )

ISA Brasil		Market

12,135 Km in transmission line

9.5 R$ bn of market capitalization

Nov,21st

Net revenue
1.367	Net profit		Ebitda
1.139
	802	824	873	921

9M18

9M19

9M18

9M19

9M18

9M19

21.68%

14.88%

63.45%

1. AP

AM

PA

MA

CE

RN

PI

PB

PE

TO

AC

RO

AL

BA

MT

SE

GO

DF

MG

MS

SP

ES

PR		RJ
	SC	Power Transmission
RS

38

8 Enterprises in operation

1,257 MW installed capacity

695 MWavg Assured Energy

RR

		AM
Net revenue
	AC	RO
920 907	Ebitda

Net profit

497 511

215 198

2017 2018 2017 2018 2017 2018

VALE

45%55%

AP

PA

MA

RN

CE

PB

PI

TO

PE

AL

MT

BA

SE

GO DF

MS

MG

ES

SP

RJ

PR

Power Generation

SC

Wind Power Generation

RS

39

Furnas

3,568	MW installed capacity	43,06%

2,424 MWavg Assured Energy

50 Generator units - bulb turbine

20 R$ billion - Capex

Net revenue
2.271	2.361			Ebitda
				851	1.113
		Net loss
			-782
		-1.133
9M18	9M19	9M18	9M19	9M18	9M19

Caixa FIP		Odebrecht		SAAG		Cemig GT
Amazônia Energia		Energia		Investimentos
19,63%	18,25%		10,53%		8,53%

1. AP

AM

PA

MA

RN

CE

PB

PI

TO

PE

AC

RO

AL

MT

BA

SE

GO DF

MS	MG	ES
SP
	RJ
	PR
		Power Generation
	SC
	RS

40

1,184 Km pipeline

In 2018

1,1 Billion m³/year

42.301 Consumers units

99.57%

RR

AM

Municipality of

Belo Horizonte

0.43%

AP

PA	MA			RN
		CE
			PB
		PI
			PE

Net revenue

1.574

1.400

Net profit

Ebitda

AC RO

			TO	AL
MT					SE
				BA
		GO DF
					MG
MS					ES
	SP
	PR				RJ

149 177 271 243

2017 2018 2017 2018 2017 2018

SC

RS

Natural Gas Distribution