Companhia Energetica De Minas Gerais Sa · BMFBOVESPA:CMIG3
Companhia Energetica De Minas Gerais Sa — Energy Co of Minas Gerais — FY2011 Earnings Presentation
40 slides from Companhia Energetica De Minas Gerais Sa's earnings presentation, Apr 12, 2012
Slide 1: A Melhor Energia do Brasil
‘A Melhor Energia do Brasil.
Slide 2: Brazil's strong economic growth and consumer market
Brazil’s strong economic growth is sustained by its large consumer market, and by the solid fundamentals of its economic policies. These features have been central to its achieving an all-time low in unemployment, of 4.7%, in December 2011, when at the same time employed workers’ average real monthl
Slide 3: PAC 2 infrastructure investment and electricity consumption
To provide support for economic development and growth, in 2011 the Brazilian government demonstrated its interest in increasing investment in infrastructure: its Second Accelerated Growth Program ( PAC 2 ) specifies significant projects in numerous sectors of the economy. Electricity is prominent a
Slide 4: Electricity consumption by category
mResidencial industrial jm Comercial mural mOutras 5% 2011
Slide 5: Table of Contents
Table of Contents
Slide 6: Disclaimer
Disclaimer Some statements or estimates in this material may represent expectations about future events or results that are subject to risks and uncertainties both known and unknown. There is no guarantee that the events or results referred to in these expectations will in fact take place. These exp
Slide 7: Vision
Vision: To be, in 2020, one of the two largest energy groups in Brazil by market value, with significant presence in the Americas, and world leader in sustainability in the sector.
Slide 8: 2011 was a landmark year in Cemig's history
Not Revenue Net Income fonda 15,814 > 5351 2415 fa oa oi 01 2011 2011 a rN @@ 2011 wasa landmark year in Cemig’s history © Profit reflects success of Strategic Plan guidelines and increase in Cemig's operational efficiency © Growth strategy and solidity of Cemig’s fundamentals produce record net rev
Slide 9: Sustainability recognition and indices
oe oo ° Included in Dow Jones World Sustainability Index —for 12th consecutive year © The only Latin American electricity company in the DJSI World - since it began Included in BM&FBovespa Corporate Sustainability Index for 7th consecutive year emigrated “Prime” in sustainability by the German ratin
Slide 10: Generation based on renewable energy sources
? Generation based on renewable energy sources Investments in wind and solar energy, Small Hydro Plants, biomass and co- generation Indirect acquisition of stake in Renova: R$ 360 million ? Present in the largest hydroelectric generation project under construction in Brazil: Belo Monte ? Santo Antén
Slide 11: Cemig aims for leadership position in the transmission sector
Cemig aims Torleadersh p position Inthe transmission sector Growth in transmission shows the Cemig group's strategy: © Transmission network with more than 10,000 km © 13% Brazilian transmission market share in transmission market share: measured by percentage of total RAP. (Permitted Annual Revenue)
Slide 12: Transmission: now a national presence
ransmissio OW a national presence oP Comigis Brazil's third largest transmission group: © Totallines: 10.060 Km; @ Consolidated Permitted Annual Revenue (RAP-2011): 51,7 billion; © _ Presentin 19 States of Brazil and in Chile.
Slide 13: Cemig: largest electricity distribution group in Brazil
Cemig: largest electricity distribution group in Brazil Total length of lines: 467,679 Km ? Total consumers: 11.5 milhdes A Volume distributed in 2011: 31,883 GWh > Cemig D delivered: 78% do total Vf Cemig D — Investment of: RS 4 billion in 2008-2012 Includes Distribution Development Plan * Schedule
Slide 14: New record in supply of natural gas
Pf New record in supply of natural gas © More than 1 billion m’ supplied in 2011, @F Commercial gas volume grew 358.7 million m? in 2011 ¢ 807km of natural gas distribution networks built and inertized in 2012 © Start of works to serve central region of Posos de Gldas © Contracts signed with 35 hote
Slide 15: Exploration and production - Status
Exploration and production — Statu @@ SAO FRANCISCO BASIN: © Environmental licensing approved in Jan. 2012 for seismic data acquisition on 4 blocks © Start of 20 seismic acquisition confirmed for 2nd week of April Pf RECONCAVO BASIN © Conclusion of acquisition and reprocessing of 30 Seismicdata © Tw
Slide 16: Long-term Strategic Plan calls for sustainable growth
\¢ Long-term Strategic Plan calls for sustainable growth — to ensure addition of value for shareholders © Leadership in consolidation of Brazil's electricity sector © Balanced growth in the three segments of the business - through acquisitions and new projects © Efficiency of the growth model adopte
Slide 17: Growth strategy
Growth strategy Growth model sustains Cemig’s leadershij Brazilian electricity sector @ Addition of value for financial partners is a permanent commitment of Dividends received from investees reached R$ 1.047 billion in 2011 © Provided 33% of 2011 consolidated net income @@ Investees are vehicles fo
Slide 18: Pecame M011 net Sept eet edt aes ay +238 7% 29%
Pecame M011 net Sept eet edt aes ay +238 7% 29%
Slide 19: Cemig GT's debenture issue was a Brazilian market highlight
VM Cemig GT's debenture issue was a Brazilian market highlight © 4th Commercial Paper issue - R$ 1bn (at 103%, 104%, 105% of CDI): bridge loan to debenture issue © 31d debenture issue (non-convertible) © Firstissue in ANBIMA’s Fixed Income Novo Mercado © Strong demand: three times the initial offer
Slide 20: Proposal for allocation of net income
Proposal for allocation of net income A On April 27, 2012 the Board will propose allocation of the 2011 net income of R$ 2.415bn: © R$ 1.294 billion to dividends (53.58% of net income) © Dividends equivalent to R$ 1.90/share (based on total shares before stock bonus to be proposed on April 27) © R$
Slide 21: 2011 Results
2011 Results
Slide 22: 2011 Results
2011 Results =e
Slide 23: Record consolidated sales of 70,178 GWh in 2011
A Record consolidated sales of 70,178 GWh in 2011 Robust growth in all consumer categories ® Expansion of the economy boosted demand in and outside concession area ® Sales volume on CCEE reflected secondary supply
Slide 24: Cemig GT - Sales volume
Cemig GT — Sales volume ° ° Higher spot price positive for total sales free market strengthened Cemig’s leadership in Braz © Market share: Cemig now has more than 25% of the free market Sales boosted by growth of economy and increased market share © Free consumers: now 51% of Cemig GT's total sales
Slide 25: Cemig D - Sales in 2011
CmigD-salesinzoll ales eco 226 ayer of Sales to final consumers up 5% © Robust growth in all consumer categories © Concession area dynamics- growth above Brazilian average cat “ ry rr no annne nena Q ‘Sales by category — %, 2011 sco a BE vous P
Slide 26: Record net revenue in 2011
eg ad ve, 20-2018 Record net revenue in 2011 reflects balanced business portfolio V Growth strategy in transmission sector - robust expansion of revenue from use of grid Record natural gas sales by Gasmig add R$ 181 million to consolidated net revenue a
Slide 27: Operational efficiency and cost reduction
A Record results are also fruits of the program for operational efficiency and reduction of costs previously put in place © Strong reduction in profit share expense reflects change in methods applied © Bonus 100% performance-inked - greater alignment in ques for corporate results © Intense monitorin
Slide 28: Balanced portfolio of operations sustains growing Ebitda
Balanced portfolio of operations sustains growing Ebitda Ebitda by business - 2011 8 Senetaton I tersmssic ( carbscio Datreton Cemigd 168 Ww ght 2B 16 Gsmig 2 a Tee 285 194 TAESA 43 m thes 2 a5
Slide 29: Portfolio of businesses powers Ebitda growth
a a | me ste 3% A Portfolio of businesses powers Ebitda growth an 6% PF Comig GT's result reflects selling strategy, 5% quality of contracts o* ) “se of Almost 31% of Ebitda growth comes from * investees a
Slide 30: Net income by company
Net income by company Robust growth of Cemig D reflects substantial increase in consumption in the concession area oP Results of Cemig GT reflects our commercial strategy A Transmission sector reflects growth strategy conor Bh como Wh tess Bre Bin BE coum comp toee
Slide 31: Strong cash position sustains investments
Slide 32: Investment
INVESTMENT Cemig Holding Company) 4 1 ns Light for Everyone Mandi 414 B - - OE NS. 85 = = ‘Minas Gerais State 50 106, 50 = Gasmig—acquistion ofshares 67 SPEParatiSA 358 = 5 : TBE (stock buyback) 5 = = : TOTALINVESIMENTS 540 1989 5
Slide 33: Long-term target is 20% market share
Long-term target is 20% market share in the various segments of the electricity market ® Transmission © Generation @ tension ander onsrcion Generation under construction © cariareeciet © wend povergenaton © Purchase of eletricty © Telecommunication
Slide 34: Stockholding base is in more than countries
_ Stockholding base is in more than 40 countries ar 6 10,7 uLioNs canc3/2011 5549 MILLIONS © Average Daily Trading Volume - 2071 © OurShares traded in 3 Stock Exchanges cera © More than 115,000 shareholders in 44 counties NYSE US538 millon
Slide 35: sa,caneran
sa,caneran
Slide 36: Capital Markets
Capital Markets Hy
Slide 37: Highest market valuation in the sector
Slide 38: Contact
mig.com.br Phone: (55-31) 3506-5024 Fax: (55-31) 3506-5025 CBee CEMIG A Melhor Energia do Brasil.
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Slide 40: Summary of Minutes of the Board of Directors Meeting
8. Summary of Minutes of the 533 rd Meeting of the Board of Directors
Energy Co of Minas Gerais — FY2011 Earnings Presentation on 6ix