Strategic Plan

Market
Premises
Continued economic concession area Reduced energy losses Residential and commercial segments strongly correlated with temperature Temperature: use of historical average Industrial segments correlated with the Manufacturing Industry Production Index (IPIT)
2010

Captive Market (GWh)

growth in the
+2.5% p.a.

22,113 19,877 20,054

19,459

2010

2011

2011

2012

2012

2016

2016

OPEX
Premises
Matrix Management of Expenses Synergy Project: gains of efficiency by redefining processes and seeking synergies with Cemig Continuous contract negotiation Implementation control center of a field service

Manageable Costs and Expenses (R$ MN)*

+4.5% p.a.

Opex

922

716 619

772

Feasibility study to the decision-making process Efficiency combined with regulatory costs

2010 2010

2011 2011

2012 2012

2016 2016

* Nominal amounts

Inflation estimates for the period: 5.8% p.a. (2013-16)

PDA
Premises
PDA / BILLED SUPPLY

PDD/Forn Faturado
Implantation of the PPUs, with an increase in the collected volume Expansion of the Light Legal program (APZ) New technologies that allow remote cuts Implementation of Resolution 414 suspension of clients with permanent default
1.9% 3.2% 3.0% 3.2%
-1.5% b.p.s.

1.7%

2010 2010

2011 2011

2012 2012

2016 2016

Non-recurring provisioning

EBITDA
Premises
Market growth
Loss reduction PDA reduction Operational efficiency gain
1,433

(R$ MN)*
EBITDA
1,595 1,456 23
+8.0% p.a.

1,980 196

1,238

1,784

Re-pricing of the existing energy Impacts of the 3rd regulatory cycle on the distributor

Higher generation/sale share: around 40% in 2016 (including interest)

2010 2010

2011 2011

2012 2012

2016 2016

* Nominal amounts

Interest
Note: in accordance with the IFRS rules, interest in joint ventures will no longer be consolidated as of 2013.

EBITDA proportionate to the following interest: Renova, Itaocara, Guanhes, Belo Monte, LightGer and Axxiom.

Investments
Premises
Total Investment (2013-16): R$2.5 bn BNDES financing: 50% of CAPEX for distribution and 60% of the new generation projects
62 90

(R$ MN)* Investimentos

929 2 73 26 775 797 26 62 38 672 682 37 56 35 545

620 34

495

2011 2011
* Nominal amounts

2012 2012 Distribution Management

2013 2013

2014 2016 Mdia Average

2014-16

Generation Energy Efficiency

2014-16 Average 10 89 1 100

INVESTMENTS (MN) BELO MONTE HPP ITAOCARA HPP GUANHES SPPs AXXIOM TOTAL

2013 48 55 103

Net Debt
Premises
Financing of generation expansion
4,273

NET DEBT* AND NET DEBT/EBITDA (R$ MN)

4,745

Gradual leverage reduction

3,383

Excludes pension plan debt, except in the calculation of the net debt/EBITDA (definition of covenants)

1,947 2.89 2.83 2.70 1.20 2010 2010 2011 2011 2012 2012

2016 2016

* Nominal amounts

Net Debt

Net Debt / EBITDA

Excludes net debt of R$1.5 bn related to interest held.

Important Notice
This presentation may include declarations that represent forward-looking statements according to Brazilian regulations and international movable values. These declarations are based on certain assumptions and analyses made by the Company in accordance with its experience, the economic environment, market conditions and future events expected, many of which are out of the Companys control. Important factors that can lead to significant differences between the real results and the future declarations of expectations on events or business-oriented results include the Companys strategy, the Brazilian and international economic conditions, technology, financial strategy, developments of the public service industry, hydrological conditions, conditions of the financial market, uncertainty regarding the results of its future operations, plain, goals, expectations and intentions, among others. Because of these factors, the Companys actual results may significantly differ from those indicated or implicit in the declarations of expectations on events or future results. The information and opinions herein do not have to be understood as recommendation to potential investors, and no investment decision must be based on the veracity, the updated or completeness of this information or opinions. None of the Companys assessors or parts related to them or its representatives will have any responsibility for any losses that can elapse from the use or the contents of this presentation. This material includes declarations on future events submitted to risks and uncertainties, which are based on current expectations and projections on future events and trends that can affect the Companys businesses. These declarations include projections of economic growth and demand and supply of energy, in addition to information on competitive position, regulatory environment, potential growth opportunities and other subjects. Various factors can adversely affect the estimates and assumptions on which these declarations are based on.