August, 2010. Total Shares Disclaimer Some statements in this presentation are regarded under U.S. Securities law as forward-looking statements, i.e.,

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Presentation transcript:

August, 2010

Total Shares Disclaimer Some statements in this presentation are regarded under U.S. Securities law as forward-looking statements, i.e., statements that are subject to risks and uncertainties. Forward-looking statements are forecasts which may differ materially from the final figures and which are not under our control. For further information on the risks and uncertainties as they relate to us, please see our 20-F form for 2009 in particular, item 3 which contains “Basic Information – Risk Factors.” All figures are expressed in Brazilian GAAP. 2

A Traditional Electric Power Business Chile Brazil PB AM AC RO PA MA RR AP PI CERN PE AL SE BA TO MT GO MS SP PR SC RS ES RJ MG Power Generation Power Generation (under construction) Power Transmission Power Transmission (under construction) Electricity Distribution Cemig “Free Consumer” Clients Purchase of Energy Wind Power Generation Wind Power Generation (under construction) Natural Gas Distribution DF 3

The largest integrated power utility in Brazil Power Generation: 6,875 MW of installed capacity Electricity Distribution: 474 thousand Km Power Transmission: 8,348 Km Free Customer: 25% of Brazil’s Market Share 4

Strong Management Highest Corporate Governance standards and integrity 14 Board of Directors Members 10 members are independent according to DJSI criteria Full SOX (Sarbanes Oxley) compliance Growth-driven Long Term Strategic Plan, incorporated into our bylaws Expansion opportunities evaluated using strict profitability criteria Investments in projects offering real internal rates of returns above our cost of capital Cemig is the only power utility and one of three Brazilian companies in the new Global Dow Index 5

Financial Highlights Ebitda margin (%) Ebitda (R$ million) Net income (R$ million) Dividends (R$ Million) Dividend pay-out (% of Net income) Net margin (%) 6

Dividend Policy 50% pay out: incorporated into our bylaws, we distribute a minimum of 50% of the net income accounted for the previous year. Plus extra dividends, every two years, if the availability of cash permits, we will distribute extraordinary dividends. Paid in semi-annual basis: on June 30 and by December 30 Preferred shares have preference in the event of reimbursement of shares, and receive an obligatory minimum dividend equal to the greater of: –10% of their nominal value, or –3% of the book value to which they correspond. Dividend Payout (% of Net Income) Dividend Yield (%) 7

Strong shareholders base assures liquidity 8 Brunei Singapore South Korea Japan Malasia Taiwan ASIA Australia OCEANIA Canada México United States North America South America Argentina Bolivia Brazil Chile Uruguay Central America Bermuda Bahamas Cayman Islands Turks & Caicos Islands Virgin Islands Middle East Saudi Arabia United Arab Emirates Kuwait Oman Syria EUROPA Luxembourg UK Spain Switzerland Ireland Guernsey Jersey Holland France Norway Denmark Italy Sweden Germany Belgium Austria Portugal Poland Romania Our Shares are traded in 3 Stock Exchanges 117,000 shareholders over 44 countries Average Daily Trading Volume Bovespa : R$ 47 million NYSE : US$ 33 million

Phone: (55 31) Fax: (55 31) Investor Relations 9