Table of Contents

 

 

 

FORM 6-K

 

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

 

REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of December 2012

 

Commission File Number 1-15224

 

Energy Company of Minas Gerais

(Translation of Registrant’s Name Into English)

 

Avenida Barbacena, 1200

30190-131 Belo Horizonte, Minas Gerais, Brazil

(Address of Principal Executive Offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F x  Form 40-F o

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o

 

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

 

Yes o  No x

 

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):  N/A

 

 

 



Table of Contents

 

Index

 

Item

 

Description of Item

 

 

 

1.

 

Notice to Stockholders — Dividend Payment, December 13, 2012

 

 

 

2.

 

Market Announcement: Decisions on renewals of concessions, December 4, 2012

 

 

 

3.

 

Earnings Release - Third Quarter 2012

 

 

 

4.

 

Market Announcement: Cemig GT wins the Brazilian National Quality Prize (PNQ) for 2012, November 8, 2012

 

 

 

5.

 

Market Announcement: Concession Contract Renewal Applications, October 15, 2012

 

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SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

COMPANHIA ENERGÉTICA DE MINAS GERAIS – CEMIG

 

 

 

 

 

By:

/s/ Luiz Fernando Rolla

 

 

Name:

Luiz Fernando Rolla

 

 

Title:

Chief Officer for Finance and Investor Relations

 

Date: December 18, 2012

 

2



 

1. Notice to Stockholders — Dividend Payment, December 13, 2012

 

3



 

 

COMPANHIA ENERGÉTICA DE MINAS GERAIS – CEMIG

 

LISTED COMPANY

CNPJ 17.155.730/0001-64

 

NOTICE TO STOCKHOLDERS

 

Second dividend payment for 2011

 

We hereby advise stockholders that Cemig will make payment of the second part of the stockholder remuneration for the business year of 2011 on December 26, 2012. This payment, of R$ 647,020,000, equivalent to R$ 0,948538419 per share, is 50% of the amount decided by the Ordinary and Extraordinary General Meetings of Stockholders held concurrently on April 27, 2012.

 

The stockholders entitled to this payment are those whose names were on the Company’s Nominal Share Registry on April 27, 2012.

 

Stockholders whose bank details are up-to-date with the Custodian Bank for Cemig’s nominal shares (Banco Bradesco S.A.) will have their credits posted automatically on the day of payment, on which occasion they will receive the advice of the corresponding credit. In the event of not receiving the notice of credit, the stockholder should visit a branch of Banco Bradesco S.A. to update his/her registry details. Proceeds from shares deposited in custody at CBLC (Companhia Brasileira de Liquidação e Custódia — the Brazilian Settlement and Custody Company) will be credited to that entity, and the Depository Brokers will be responsible for passing the amounts through to stockholders.

 

Belo Horizonte, December 13, 2012

 

Luiz Fernando Rolla

Chief Finance and Investor Relations Officer

 

Av. Barbacena 1200

Santo Agostinho

30190-131 Belo Horizonte, MG

Brazil

Tel.: +55 31 3506-5024

Fax +55 31 3506-5025

 

This text is a translation, provided for information only. The original text in Portuguese is the legally valid version.

 

4



 

2. Market Announcement:  Decisions on renewals of concessions, December 4, 2012

 

5



 

 

COMPANHIA ENERGÉTICA DE MINAS GERAIS – CEMIG

 

LISTED COMPANY

CNPJ 17155.730/0001-64

NIRE: 31300040127

 

MARKET ANNOUNCEMENT

 

Cemig Board decisions on renewals of concessions

 

Cemig (Companhia Energética de Minas Gerais), a listed company with securities traded on the stock exchanges of São Paulo, New York and Madrid, hereby informs the public, the Brazilian Securities Commission (CVM), the São Paulo Stock, Commodities and Futures Exchange (“BM&FBovespa”) and the market in general — in accordance with CVM Instruction 358 of January 3, 2002, as amended — as follows:

 

By decision of its Board of Directors, Cemig has decided to sign a contract with the Mining and Energy Ministry for renewal, for 30 years, of the concession for operation and maintenance of the transmission assets of its subsidiary Cemig Geração e Transmissão S.A.

 

The Board also decided not to renew the concessions of 18 of the Company’s hydroelectric plants, the concession contracts of which expire in the coming years.

 

Cemig will call an Extraordinary General Meeting of Stockholders to submit the decision taken by the Board to the approval of the stockholders.

 

These decisions reflect the Company’s commitment to its stockholders, employees and other stakeholders to maintain the Company’s sustainability and growth.

 

Belo Horizonte, December 4, 2012,

 

Luiz Fernando Rolla

Chief Finance and Investor Relations Officer

 

Av. Barbacena 1200

Santo Agostinho

30190-131 Belo Horizonte, MG

Brazil

Tel.: +55 31 3506-5024

Fax +55 31 3506-5025

 

This text is a translation, provided for information only. The original text in Portuguese is the legally valid version.

 

6



 

3. Earnings Release - Third Quarter 2012

 

7



 

GRAPHIC

 

 

8



 

Your invitation Cemig

 

Third Quarter 2012 Results

 

Cemig

(BM&FBOVESRA: CMIG3, CMIG4; NYSE: CIG, CIG.C; Latibex: XCMIG)

 

announces its

 

TIMETABLE for publication of 3Q 2012 Results:

 

1 – Publication

 

November 14, 2012 (Wednesday)
(after close of market in São Paulo and New York)
The information will be available on our website: http://ri.cemig.com.br

 

2 – Video webcast and Conference call

 

November 19, 2012 (Monday), at 3:00 p.m. (Brasília time)

 

Transmission of the results with simultaneous translation into English

by video webcast at:
http://ri.cemig.com.br

 

or

 

by conference call at:

+ 55 (11) 4688-6341

Password: CEMIG

 

3 – Video Webcast Playback:         Site: http://ri.cemig.com.br

Available far 90 days              Click on the banner and download

 

4 – Conference call playback:       Phone: (+ 55 11) 4688-6312

Available Nov 19-25, 2012      

Passwords:

1177583# (Portuguese)

 

 

4544867# (English)

 

For any questions please call +55 31 3506-5024. Thank you.

 

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Table of Contents

 

Contents

 

DISCLAIMER

 

12

FROM THE CEO AND CFO

 

13

CEMIG, 3Q12: KEY NUMBERS

 

14

THE ECONOMIC CONTEXT

 

15

RENEWAL OF CONCESSIONS – PROVISIONAL MEASURE 579 OF SEPTEMBER 11, 2012

 

16

PERFORMANCE OF SHARES

 

20

SUMMARY OF 3Q RESULTS

 

21

ADOPTION OF IFRS

 

21

PROFIT AND LOSS ACCOUNTS

 

22

CEMIG’S CONSOLIDATED ELECTRICITY MARKET

 

23

THE ELECTRICITY MARKET OF CEMIG GT

 

26

THE ELECTRICITY MARKET OF CEMIG D

 

27

CONSOLIDATED OPERATIONAL REVENUE

 

29

CHARGES APPLIED TO REVENUE

 

31

OPERATIONAL COSTS AND EXPENSES

 

33

FINANCIAL REVENUES (EXPENSES)

 

35

INCOME TAX AND SOCIAL CONTRIBUTION TAX

 

37

EBITDA

 

37

LIGHT: 3Q12 HIGHLIGHTS

 

38

TAESA: 3Q12 HIGHLIGHTS

 

39

FINANCIAL STATEMENTS SEPARATED BY COMPANY

 

40

FINANCIAL INFORMATION BY OPERATIONAL SEGMENT

 

41

PERMITTED ANNUAL REVENUE — RAP

 

42

APPENDICES

 

43

CEMIG D: TABLES (R$ ‘000)

 

43

CEMIG GT: TABLES (R$ ‘000)

 

44

CEMIG CONSOLIDATED: TABLES (R$ MN)

 

45

 

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Disclaimer

 

Certain statements and estimates in this material may represent expectations about future events or results, which are subject to risks and uncertainties that may be known or unknown. There is no guarantee that the events or results will take place as referred to in these expectations.

 

These expectations are based on the present assumptions and analyses from the point of view of our management, in accordance with their experience and other factors such as the macroeconomic environment, market conditions in the electricity sector, and expected future results, many of which are not under Cemig’s control.

 

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

 

The information and opinions herein should not be understood as a recommendation to potential investors, and no investment decision should be based on the veracity, currentness or completeness 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 use of the content of this material.

 

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

 

(Figures are in R$ ‘000, except where otherwise indicated)

 

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From the CEO and CFO

 

Cemig’s CEO, Mr. Djalma Bastos de Morais, comments:

 

“Cemig’s 3Q12 results are in line with the guidelines laid down in our Long-term Strategic Plan. Maintaining its growth strategy, Cemig ensures its leadership position in consolidation of the Brazilian electricity sector.  As part of this context, the company’s recent decisions aim to ensure funding for continuity of the Company’s policy of investments, including those associated with opportunities for new projects and acquisitions — contributing to the development of Brazil’s electricity sector and the provision of service to our consumers with quality and efficiency.”

 

Cemig’s CFO, Mr. Luiz Fernando Rolla, says:

 

“In third quarter 2012 Cemig earned Ebitda of R$ 1.8 billion, showing its strong capacity to generate operational cash flow through its diversified portfolio of businesses and its high levels of operational efficiency.  Our resulting net profit in the period is R$ 937 million, 43% more than in the same period of 2011. Our solid balance sheet, also reflected by our cash position of R$ 4.7 billion, supports continuity of the company’s projects, with an investment program always focused on profitability and addition of value for our stockholders in the long term, and for the community that we serve. Below — in this release — we present our highlights for 3Q12. “

 

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Cemig, 3Q12: Key numbers

 

·                   Cash flow, measured as Ebitda, of R$ 1.8 billion in 3Q12, 18% more than in 3Q11.

 

·                   Net income up 43.0% from 3Q11, at R$ 937 million.

 

·                   Non-recurring gain of R$ 259mn in 3Q12, arising from dilutions of a stockholding interest in jointly-controlled subsidiaries*

 


*(This is described in more detail in Note 12 to the Quarterly Information (ITR) published by the Cemig Holding Company).

 

·                   Net revenue of more than R$ 4.8 billion in 3Q12 — robust growth of 19.0%, from 3Q11.

 

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The economic context

 

Weak global economic activity continues to be the focus of uncertainty in 2012. The highlight is the threat to the Eurozone posed by the continuing fiscal tension in many of its countries — while in the US, slow below-potential growth, a historic unemployment level, and lack of a specific forward outlook on the “Fiscal Cliff”, are tending to hold back any significant progress on recovery.

 

In China, too, there is a moment of uncertainty, due to both the political transition and also the effects of the relative cooling of its economic growth in the context of the recent slowdown in growth rates worldwide. However, based on the improvement in certain economic activity indicators, and the short-term effects of monetary and fiscal easing policies, China’s economy is still expected to expand by more than 7.5% in 2012.

 

Brazil’s economic scenario continues to stand out from this overall perturbed international picture.  Its debt/GDP ratio continues to fall, and inflation is showing signs that it will be within the target range by the end of the year. The country’s robust international reserves of US$400 billion; its advanced and solid financial system; and the fiscal responsibility regime governing the states and municipalities all help to expand investors’ confidence in the country.

 

As a result Brazil still stands out as one of the world’s principal destinations for investors, as shown by foreign direct investment (FDI) equal to nearly 2.5% of GDP.  We expect the fiscal and monetary stimulus measures now in place — mainly affecting industry — to result in a resurgence in Brazilian economic activity as 2012 comes to a close.

 

Market forecasts are now indicating annualized Brazilian GDP growth of 4% in the fourth quarter of this year, likely maintained until the end of 2003.

 

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Renewal of concessions — Provisional Measure 579 of September 11, 2012

 

On September 11, 2012, Brazil’s federal government issued Provisional Measure 579 (“PM 579”), governing renewals for 30 years of electricity distribution, transmission and generation concessions that meet the renewal criteria in Law 9074/1995, made provisions for bringing forward the date of expiry of present concessions, requiring concession holders to sign an extension contract with the concession granting power (the federal government).

 

PM 579 makes extension of a concession conditional on express acceptance of criteria for remuneration, allocation of supply, and quality standards specified in it. It also specifies that indemnity of assets that have not yet been amortized or depreciated should be on the basis of replacement value — with the exception of transmission assets that existed on May 31, 2000, which are considered to be 100% amortized.

 

Finally, concessions that are not extended on the basis laid down in the Measure are to be offered by tender — by auction or by competing bids — for up to 30 years.

 

Cemig, through its subsidiaries and affiliated companies, has approximately 7 GW of installed generation capacity, and 5,000 kilometers of transmission lines, which will be affected to a greater or lesser degree by the measures announced.

 

In compliance with the procedure laid down in the Provisional Measure, on October 15, 2012 Cemig submitted to the Brazilian electricity regulator, Aneel, its statement of interest in extending those of its electricity transmission

 

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and generation Concession Contracts which, in Cemig’s understanding, were within the criteria specified in the Measure, without prejudice to any possible rights specified in the conversion law.

 

In accordance with the provisions and timing in PM 579, Ministerial Orders 578 and 579 of October 31, 2012, issued by the Mining and Energy Ministry (MME), laid down initial tariffs for the hydroelectric plants that come within the definition in Clause 6 of PM 579, applying to concession renewals brought forward under it.

 

On November 1, 2012, Interministerial Order 580, issued by the Mining and Energy Ministry and the Finance Ministry, set out the amounts of indemnity to be paid to holders of generation and transmission concessions that opt to bring forward renewals of concessions.

 

As mentioned above, renewals of the following concession contracts were required:

 

1. Concessions for electricity generation service, for the generating plants listed below, contained in Concession Contract 007/97 (Cemig — Generation), with provisos relating to the price of electricity, residual value of assets and operational conditions. For these concessions, Interministerial Order 580 of the Mining and Finance Ministries specifies that there will be no indemnity payable by the concession-granting power.

 

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Table of Contents

 

Generation Plant

 

Tariff published – in
MME Ministerial
Order 578/12 –

R$/kW.year

 

Corresponding
tariff value in

R$/MWh

 

Três Marias Hydroelectric Plant

 

58.48553

 

11.06220

 

Volta Grande Hydroelectric Plant

 

59.08092

 

11.19158

 

Salto Grande Hydroelectric Plant

 

89.27921

 

13.86070

 

Itutinga Hydroelectric Plant

 

94.88619

 

20.11612

 

Camargos Hydroelectric Plant,

 

92.23039

 

23.06261

 

Piau Small Hydro Plant

 

140.93844

 

21.41614

 

Gafanhoto Small Hydro Plant

 

127.51929

 

30.50868

 

Peti Small Hydro Plant

 

158.8735

 

27.58587

 

Tronqueiras Small Hydro Plant

 

146.19005

 

34.26354

 

Joasal Small Hydro Plant

 

160.02056

 

29.50853

 

Martins Small Hydro Plant

 

129.76072

 

45.08264

 

Cajuru Small Hydro Plant

 

152.18112

 

35.94264

 

Paciência Small Hydro Plant

 

188.19722

 

37.14131

 

Marmelos Small Hydro Plant

 

204.86441

 

32.48104

 

Dona Rita Small Hydro Plant

 

193.26319

 

51.62081

 

Sumidouro Small Hydro Plant

 

139.73608

 

99.46296

 

Anil Small Hydro Plant

 

216.85424

 

46.80955

 

Poquim Small Hydro Plant

 

251.18478

 

 

 

2. Transmission service concessions, under Concession Contract 006/97 (Cemig), relating to the transmission facilities under Cemig’s responsibility that are classified as part of the National Grid, under Law 9074/95 and related regulations, with provisos relating to authorized revenue, operational conditions and residual value of the assets. The indemnity specified in Mining and Finance Ministry Interministerial Order 580 for the Company’s transmission assets was R$ 285,438,000 (two hundred and eighty five million, four hundred and thirty eight thousand Reais). The annual revenue laid down by Order 579 was R$ 148,536,000.

 

As specified in the Provisional Measure, Cemig has until December 4, 2012 to state its position on agreement with the tariffs specified in the generation and transmission concessions referred to, and also on the amounts

 

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of the indemnities specified, for the purposes of signing the renewal of the concession contracts. If the Company does not accept the terms laid down by the concession-granting power, it will continue to operate the assets until the end of the period of each one of the concessions referred to.

 

Since the Company has not yet made its final statement of position on acceptance of the conditions specified in the Provisional Measure for bringing forward renewal of its concessions and its assessment of the indemnity value specified, it is not currently possible to determine the financial effects of the Provisional Measure on its Financial Statements.

 

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Performance of shares

 

Security

 

Ticker

 

Currency

 

Close of
3Q12 

 

Close of
2Q12 

 

Change
in period

 

Cemig PN

 

CMIG4

 

R$

 

24.58

 

37.53

 

-34.91

%

Cemig ON

 

CMIG3

 

R$

 

22.40

 

31.80

 

-29.56

%

ADR PN

 

CIG

 

U$

 

12.12

 

18.42

 

-34.20

%

ADR ON

 

CIG.C

 

U$

 

10.67

 

15.64

 

-31.78

%

Cemig ON (Latibex)

 

XCMIG

 

EUR

 

9.57

 

14.63

 

-34.62

%

Ibovespa

 

Ibovespa

 

 

59,175

 

54,354

 

8.87

%

IEEX

 

IEEX

 

 

30,091

 

35,415

 

-15.04

%

 

Sources: Economática, Latibex.

 

Brazil’s main equity index, the Ibovespa, recovered from a strong fall in the prior three months, to close 8.87% higher on the third quarter of 2012. Cemig’s equities traded in Brazil — preferred (CMIG4) and common shares (CMIG3) — fell by 34.91% and 29.56%, respectively, in the quarter. The movement was in the same direction as that of Brazil’s IEEX Electricity Index, which fell 15.04% over the quarter.

 

The fall in electricity stocks reflected the market’s reaction to the announcement of Provisional Measure 579, which provided for early renewals of concessions under a new tariff regime.

 

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Summary of 3Q Results

 

Item

 

3Q12

 

3Q11

 

(%)

 

Electricity sold, GWh

 

17,715

 

17,413

 

1.7

%

Gross revenue

 

6,686

 

5,827

 

15

%

Net revenue

 

4,810

 

4,036

 

19

%

Ebitda

 

1,752

 

1,489

 

18

%

Net income

 

937

 

657

 

43

%

 

Adoption of IFRS

 

The results below are reported under the new Brazilian accounting practices, resulting from the process of harmonization of Brazilian accounting rules with IFRS (International Financial Reporting Standards).

 

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PROFIT AND LOSS ACCOUNTS

 

PROFIT AND LOSS ACCOUNTS FOR THE

THIRD QUARTERS OF 2012 AND 2011

 

 

 

3rd Quarter
2012

 

3rd Quarter
2011

 

REVENUE

 

4,810,133

 

4,035,749

 

 

 

 

 

 

 

OPERATIONAL COSTS AND EXPENSES

 

 

 

 

 

Personnel

 

(320,692

)

(293,134

)

Employees’ and managers’ profit shares

 

(59,139

)

(46,659

)

Employee post-retirement benefits

 

(30,619

)

(30,887

)

Materials

 

(22,243

)

(17,351

)

Outsourced services

 

(267,158

)

(252,294

)

Electricity bought for resale

 

(1,580,014

)

(1,110,782

)

Depreciation and amortization

 

(229,237

)

(248,649

)

Royalties for use of water resources

 

(44,501

)

(38,728

)

Provisions (reversals) for operational losses

 

(33,975

)

(100,359

)

Charges for the use of the basic transmission grid

 

(138,614

)

(226,293

)

Gas purchased for resale

 

(138,150

)

(92,954

)

Infrastructure Construction Costs

 

(529,689

)

(266,550

)

Other operational expenses, net

 

(151,220

)

(70,569

)

 

 

(3,545,251

)

(2,795,209

)

 

 

 

 

 

 

Operational profit/loss before Equity gain/loss and Financial revenue/expenses

 

1,264,882

 

1,240,540

 

 

 

 

 

 

 

Goodwill on issuance of shares

 

258,705

 

––

 

Equity gain (loss) on subsidiaries

 

(1,024

)

––

 

Financial revenue

 

227,110

 

212,768

 

Financial expenses

 

(466,397

)

(484,654

)

 

 

 

 

 

 

Pre-tax profit (loss)

 

1,283,276

 

968,654

 

 

 

 

 

 

 

Current income tax and Social Contribution tax

 

(334,860

)

(275,397

)

Deferred income tax and Social Contribution tax

 

(11,285

)

(36,010

)

PROFIT FOR THE PERIOD

 

937,131

 

657,247

 

 

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Cemig’s consolidated electricity market

 

The figures we report for Cemig’s market include the sale of electricity by: Cemig D, Cemig GT consolidated (Cemig GT plus Cachoeirão, Pipoca and the proportionate holdings in the Parajuru, Morgado and Volta do Rio wind farms); the subsidiaries and affiliates (Horizontes, Ipatinga, Sá Carvalho, Barreiro, Cemig PCH, Rosal and Capim Branco); and Light (in proportion to Cemig’s holding).

 

This equates to: the sales of electricity to both captive and free consumers, in the concession area of Minas Gerais and outside that state; the sales of electricity to other agents of the electricity sector in the Free and Regulated Markets; the sales under the Proinfa Program to Encourage Alternative Electricity Sources; and the sales on the CCEE (the wholesale market) — eliminating transactions between companies of the Cemig group.

 

The volume of electricity sold to final consumers in Cemig’s concession area in 3Q12 was 3.8% higher than in 3Q11. This reflects the constant increase in Cemig’s total number of clients — to a total of 11.5 million consumers at the end of 3Q12, 1.0% more than at the end of 3Q11. Of this total number of consumers, Cemig D serves 7.5 million, and Light serves 4.0 million; Cemig GT has 367 clients; and the subsidiary and affiliate companies have 22 clients.

 

This growth can be seen in detail in the separate consumer categories:

 

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Residential:

 

Residential consumption represented 17% of the total electricity transacted by Cemig in 3Q12. The growth of 6.1% over the period reflects connection of new consumers, and increased private consumption of goods and services due to the more favorable conditions of the Brazilian consumer market, in turn reflecting the vigorous employment market, and growth in total real wages, associated with expansion of the supply of credit.

 

Industrial:

 

Consumption by Free Consumer clients represented 40% of the total volume of electricity transacted by Cemig in 3Q12, and was 0.4% more than in 3Q11. The increase basically reflects the recovery in the level of industrial activity in Cemig’s concession area.

 

Commercial:

 

This total volume of electricity transacted with this user group accounted for 11% of Cemig’s total in 3Q12, and was 13.2% more than the volume transacted in 3Q11.  This growth is also associated with the strong domestic consumer market, especially final consumption by private consumers.

 

Rural:

 

Rural consumption, representing 5% of total electricity sold by Cemig, was 2% higher than in 3Q11, with first-time connection of 91,605 rural properties in the interval.

 

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Other consumer categories:

 

The total of other types of consumption in 2012 — by public authorities, public illumination, public services, and Cemig’s own consumption — represented 6% of Cemig’s total transactions in electricity in the quarter, and was 7% higher than in 3Q11.

 

 

 

MWh (*)

 

 

 

3Q 2012

 

3Q 2011

 

Change, %

 

Residential

 

2,795,303

 

2,634,924

 

6.09

 

Industrial

 

6,728,401

 

6,700,287

 

0.42

 

Commercial, services and others

 

1,887,719

 

1,667,721

 

13.19

 

Rural

 

831,007

 

816,157

 

1.82

 

Public authorities

 

317,595

 

284,032

 

11.82

 

Public illumination

 

370,143

 

356,047

 

3.96

 

Public service

 

390,091

 

368,322

 

5.91

 

Subtotal

 

13,320,259

 

12,827,490

 

3.84

 

Own consumption

 

15,059

 

13,461

 

11.87

 

Uninvoiced supply , net

 

––

 

––

 

––

 

 

 

13,335,318

 

12,840,951

 

3.85

 

Wholesale supply to other concession holders

 

3,487,400

 

3,678,429

 

(5.19

)

Transactions in electricity on the CCEE

 

860,306

 

854,317

 

0.70

 

Sales under the Proinfa program

 

31,728

 

39,465

 

(19.60

)

Total

 

17,714,752

 

17,413,162

 

1.73

 

 


(*) The information in MWh has not been reviewed by the external auditors.

 

This chart shows the breakdown of the Cemig Group’s sales to final consumers:

 

 

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Table of Contents

 

The electricity market of Cemig GT

 

The consolidated total of electricity sold by Cemig GT means the total of: sales to Free Clients both in the state of Minas Gerais and outside it; sales under the Proinfa program to encourage new energy sources; and wholesale sales in the Regulated and Free Markets, and through the CCEE (Electricity Trading Chamber).

 

Cemig GT’s electricity market was 0.69% smaller, in aggregate, in 3Q12, than in 3Q11.  This was due to a lower volume of sales of electricity in the Free Market in the period.

 

The counterpart to this was that total revenue from electricity supply in 3Q12 was 15.2% higher year-on-year, at R$ 1.3 billion, compared to R$ 1.1 billion in 3Q11, which was a result of the Company’s commercial strategy.

 

This is mainly due to higher prices in the spot market; but is also due to sales being 2.3% higher year-on-year in the industrial consumer category — and 143.0% higher in the commercial category.

 

Although the volume of electricity sold to other concession holders was 7.6% lower YoY, revenue from that electricity sold to other concession holders was 19.2% higher, at R$ 453 million in 3Q12, compared to R$ 380 million in 3Q11.

 

Breakdown of Cemig GT’s supply of electricity, by type of consumer:

 

 

 

MWh (**)

 

 

 

3Q 12

 

3Q 11

 

Change, %

 

Industrial

 

5,303,774

 

5,183,193

 

2.33

 

Commercial

 

58,833

 

24,212

 

142.99

 

Uninvoiced supply, net

 

––

 

––

 

––

 

 

 

5,362,607

 

5,207,405

 

2.98

 

Wholesale supply to other concession holders (*)

 

3,554,682

 

3,845,669

 

(7.57

)

Transactions in electricity on the CCEE

 

695,937

 

619,334

 

12.37

 

Sales under the Proinfa program

 

31,728

 

39,465

 

(19.60

)

Total

 

9,644,954

 

9,711,873

 

(0.69

)

 


( * )      Includes Regulated Market Electricity Sale Contracts (CCEARs) and “bilateral contracts” with other agents.

( ** )   The information in MWh has not been reviewed by the external auditors.

 

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Table of Contents

 

The electricity market of Cemig D

 

The concession area of Cemig Distribuição S.A. (Cemig D) covers 567,748 km², approximately 97% of the Brazilian State of Minas Gerais.  Cemig D has four electricity distribution concessions in Minas Gerais, under four concession contracts — for the Western, Eastern, Northern and Southern areas of the State. These contracts have expiry date of February 18, 2016, and a clause providing for their extension by the concession-granting power for a further 20 (twenty) years, upon application by the concession holder.

 

Total sales of electricity by Cemig Distribuição were 0.43% higher in 3Q12 than 3Q11. The main positive contribution to this result comes from the residential, commercial and rural user categories. A negative contribution comes from the Industrial category of Cemig’s captive market, in which consumption was 8.6% lower year-on-year in 3Q12 — before any adjustment for the clients that migrated from the captive market to the Free Market.

 

The following are some comments on the figures for the main consumer categories:

 

Residential:

 

Residential consumption was 35.7% of the total electricity sold by Cemig D in 3Q12, and was 3.1% higher than in 3Q11.

 

Industrial:

 

Electricity used by (captive) industrial clients was 16.9% of the volume sold by Cemig D in 3Q12, and totaled 8.6% less than in 3Q11 — the main factor being the migration of captive clients to the status of free clients in 2012.

 

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Commercial and Services:

 

The volume of electricity sold to this consumer category accounted for 20.8% of the electricity sold by Cemig D in 3Q12, and was 3.0% higher than in 3Q11.

 

Rural:

 

Rural consumption was 1.74% higher year-on-year, with the connection of 91,624 new rural properties added in the 12-month period. These consumers accounted for 13.4% of the total electricity consumption.

 

Other consumer categories:

 

The total of the other types of consumption in 3Q12 — by public authorities, by public illumination, by public services, and Cemig’s own consumption — was 1.0% higher than in 3Q11, and was 13.3% of the total volume sold by Cemig D.

 

 

 

MWh (*)

 

 

 

3Q12

 

3Q11

 

Change, %

 

Residential

 

2,210,313

 

2,144,445

 

3.07

 

Industrial

 

1,043,940

 

1,142,526

 

(8.63

)

Commercial, services and others

 

1,290,234

 

1,253,096

 

2.96

 

Rural

 

826,937

 

812,788

 

1.74

 

Public authorities

 

201,149

 

197,181

 

2.01

 

Public illumination

 

313,113

 

311,564

 

0.50

 

Public service

 

299,377

 

296,564

 

0.95

 

Subtotal

 

6,185,063

 

6,158,164

 

0.44

 

Own consumption

 

8,140

 

8,237

 

(1.18

)

Transactions in electricity on the CCEE

 

69,256

 

50,504

 

37.1

 

Total

 

6,193,203

 

6,166,401

 

0.43

 

 


(*) The information in MWh has not been reviewed by the external auditors.

(**) Figures given in MWh are for net purchase/sale.

 

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Table of Contents

 

Consolidated operational revenue

 

Revenue from supply of electricity

 

Revenue from total supply of electricity to final consumers in 3Q12 was R$ 4.150 billion, compared to R$ 3.821 billion in 3Q11, an increase of 8.6%.

 

The main factors affecting revenue in 2012 were:

 

·                      Tariff increase for Cemig D with average effect on consumer tariffs of 3.85%, starting from April 8, 2012.

 

·                      Tariff increase for Cemig D with average effect on consumer tariffs of 7.24%, starting from April 8, 2011.

 

·                      Volume of energy invoiced to final consumers 3.84% higher (this excludes Cemig’s own internal consumption).

 

·                      Contractual upward indexed adjustment to the prices paid by Free Consumers, the main indexor being the IGP—M inflation index.

 

 

 

R$

 

 

 

3Q12

 

3Q11

 

Change,
%

 

Residential

 

1,518,270

 

1,378,182

 

10.16

 

Industrial

 

1,201,547

 

1,145,903

 

4.86

 

Commercial, services and others

 

845,747

 

753,475

 

12.25

 

Rural

 

218,343

 

204,788

 

6.62

 

Public authorities

 

146,516

 

131,076

 

11.78

 

Public illumination

 

99,828

 

94,866

 

5.23

 

Public service

 

119,651

 

112,929

 

5.95

 

Subtotal

 

4,149,902

 

3,821,219

 

8.60

 

Uninvoiced supply , net

 

17,047

 

3,901

 

336.99

 

 

 

4,166,949

 

3,825,120

 

8.94

 

Wholesale supply to other concession holders

 

487,684

 

420,897

 

15.87

 

Sales under the Proinfa program

 

9,345

 

12,416

 

(24.73

)

Total

 

4,663,978

 

4,258,433

 

9.52

 

 

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Revenue from wholesale electricity sales

 

Although the volume of electricity sold to other concession holders in 3Q12 was 5.19% lower than in 3Q11, revenue from these sales was 15.87% higher, at R$ 487.7 million (vs. R$ 420.9 million in 3Q11) due to the average sale price being 22.21% higher — at R$ 139.84/MWh, compared to R$ 114.42/MWh in 3Q11.

 

Revenue from use of electricity distribution systems (TUSD)

 

The revenue from the TUSD (Tariff for Use of the Distribution System), received by Cemig D and Light, was 5.97% lower in 3Q12, at R$ 527.7 million, compared to R$ 561.2 million in 3Q11. This revenue comes from charges made to Free Consumers on the electricity sold by other agents of the electricity sector.

 

Transmission concession revenue

 

Transmission concession revenue in 3Q12 was R$ 548,798, 25.81% more than in 3Q11 (R$ 436,217). This variation mainly reflects the expansion of Cemig GT’s transmission assets arising from the new acquisitions made in 2011 — principally of Abengoa, acquired through Cemig GT’s subsidiary Taesa. The transmission revenue aggregated by Taesa in 3Q12 (stated in proportion to Cemig’s stake) was R$ 318,502, compared to R$ 274,986 in 3Q11.

 

Transactions in electricity on the CCEE

 

Revenue from transactions in electricity on the CCEE (Electricity Trading Chamber) in 3Q12 was R$ 69,256, an increase of 37.13% relative to 3Q11,

 

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when it was R$ 50,504). This reflects the significantly higher average spot market price in 3Q12 — of R$ 131.14 — compared to R$ 20.61 in 3Q11.

 

Other operational revenues

 

This total includes charged services, supply of gas, sharing of infrastructure, the subsidy for the low-income electricity tariff, and other services provided under the concession.

 

It was 36.69% higher, at R$ 344,744, in 3Q12 than in 3Q11 (R$ 252,204).  The difference mainly reflects (i) supply of gas 35.62% higher in 3Q12 than in 3Q11; and (ii) the new criteria for the low-income rate subsidy, set by Aneel Resolution 472 of January 2012. Resolution 472 laid down the method for calculating the monthly difference of revenue resulting from application of the Social Electricity Tariff, and the resulting amount of funds to be paid to the distributors to pay for the difference.

 

Charges applied to revenue

 

The charges applied to revenue in 3Q12 totaled R$ 1,875,314, an increase of 4.70% compared to 3Q11 (R$ 1,791,149). The main variations in these deductions from revenue between the two years are as follows:

 

Global Reversion Reserve — RGR

 

The deduction from revenue for the RGR in 3Q12 was R$ 76,891, 51.53% higher than the figure for 3Q11 (R$ 50,742).  The RGR is charged to providers of public electricity service under concessions and permissions, to provide funds for reversion, compulsory takeover of concessions, and expansion and improvement of service. The annual RGR payments are calculated as 2.5% of the concession holder’s capital expenditure, pro rata tempore per quarter, with a maximum of 3.0% of each concession holder’s total revenue from retail and wholesale supply (except supply originating from Itaipu),

 

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use of the electricity network, and charged services, less the related amounts of ICMS tax embedded in revenue, where applicable.

 

The Fuel Consumption Account — CCC

 

The CCC quota in 3Q12 was R$ 114,256, 39.91% less than in 3Q11 (R$ 190,141). This charge is for the costs of operation of the thermal plants in the national grid and in the isolated systems. It is shared between electricity concession holders, on a basis set by an Aneel Resolution.

 

CDE — Energy Development Account

 

The payments of the CDE are set by an Aneel Resolution, and were 17.13% higher in 3Q11 than 3Q11. The amount of the CDE charge in the quarter was R$ 151,978, compared to R$ 129,751 in 3Q11.

 

The other deductions from revenue are taxes, calculated as a percentage of amounts invoiced. Hence their variations are substantially proportional to the changes in revenue.

 

 

 

3Q12

 

3Q11

 

Change,
%

 

Charges on revenue:

 

 

 

 

 

 

 

ICMS tax

 

983,688

 

906,331

 

8.54

 

Cofins tax

 

408,922

 

385,911

 

5.96

 

PIS and Pasep taxes

 

88,752

 

83,776

 

5.94

 

ISS value added tax on services, and other taxes

 

2,070

 

1,536

 

34.77

 

 

 

1,483,432

 

1,377,554

 

7.69

 

Charges to the consumer

 

 

 

 

 

 

 

Global Reversion Reserve — RGR

 

76,891

 

50,742

 

51.53

 

Energy Efficiency Program — P.E.E.

 

12,629

 

11,112

 

13.65

 

CDE — Energy Development Account

 

151,978

 

129,751

 

17.13

 

Fuel Consumption Account — CCC

 

114,256

 

190,141

 

(39.91

)

Research and Development — R&D

 

11,869

 

10,233

 

15.99

 

National Scientific and Technological Development Fund (FNDCT)

 

10,254

 

9,003

 

13.90

 

Energy system expansion research — EPE (Mining and Energy Ministry)

 

12,772

 

4,565

 

179.78

 

Emergency Capacity Charge

 

 

93

 

 

0.30% additional payment (Law 12111/09)

 

1,233

 

7,955

 

(84.50

)

 

 

1,233

 

413,595

 

(5.25

)

 

 

1,875,314

 

1,791,149

 

4.70

 

 

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Operational costs and expenses

(Excluding Financial revenues (expenses))

 

Operational costs and expenses (excluding Financial revenue/expenses) totaled R$ 3.545 billion in 3Q12, 26.83% more than in 3Q11 (R$ 2.795 billion). This mainly reflects higher costs on employee profit shares, electricity bought for resale, operational reversals, charges for use of the national transmission grid, and gas bought for resale.

 

The following paragraphs outline the main variations in expenses:

 

Employees’ and managers’ profit shares

 

The expense on employees’ and managers’ profit shares in 3Q12 was R$ 59,139, compared to R$ 46,659 in 3Q11, an increase of 26.75%.  The considerable difference reflects recognition in 3Q12 of profit shares previously agreed with the unions for this business year; in 2011 the largest portion was provisioned only in the fourth quarter of the year — since in that year the negotiations were completed in December.

 

Electricity bought for resale

 

The expense on electricity bought for resale in 3Q12 was R$ 1,580,014 — 42.24% more than in 3Q11 (R$ 1,110,782). This primarily reflects:

 

·                      Financial exposure of Cemig D to the spot market 114.34% higher — R$ 208,634 in 3Q12, compared to R$ 97,339 in 3Q11, due to considerably higher average spot market prices in all the sub-markets — these averaged R$ 20.61/MWh in 3Q11, and R$ 131.14/MWh in 3Q12.

 

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·                      Electricity acquired by auction by Cemig D in the Regulated Market 24.67% higher — as part of a strategy to reduce risk of exposure to the spot market.

 

·                      Expense on electricity from Itaipu 22.32% higher, at R$ 231,112 in 3Q12, vs. R$ 188,948 in 3Q11, since this expense is indexed to the US dollar. In the first half of 2012 the Real depreciated against the dollar, whereas in the first half of 2011 it appreciated against the dollar. The average value of the dollar applied to invoices in 3Q12 was R$ 2.038, 22.62% higher than the value of R$ 1.662 applied in 3Q11.

 

Charges for use of the transmission grid

 

Charges for use of the transmission network totaled R$ 138,614 in 3Q12, compared to R$ 226,293 in 3Q11 — a reduction of 38.75%. This expense is for the charges payable by electricity distribution and generation agents for use of facilities that are components of the national grid. The amounts to be paid are set by an Aneel Resolution.

 

Gas purchased for resale

 

The cost of gas purchased for resale was R$ 138,150 in 3Q12, 48.62% more than in 3Q11 (R$ 92,954). This reflects the higher volume of gas purchased, to supply higher sales of gas by Gasmig in 2012, on increased industrial consumption following the expansion of Gasmig’s client base in the ‘Steel Valley’ (Vale do Aço) and South of Minas (Sul de Minas) regions.

 

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Table of Contents

 

Financial revenues (expenses)

 

Net financial expenses in 3Q12 were 11.99% lower than in 3Q11 — at R$ 239,287, vs. R$ 271,886 a year before.

 

The main factors in the difference between 2Q12 and 2Q11 are

 

·                      Revenue from late charges on overdue electricity bills in 3Q12, at R$ 49.019, was 61.59% higher than in 3Q11 (R$ 30,336). Among other factors, this reflects implementation of collection follow-up by e-mail and text message, with more effort applied also to standard methods such as follow-up letters and formal demands.

 

·                      Revenue from cash investments was 29.72% lower — on less cash invested in 2012.

 

·                      Lower expense on costs of loans and financings, at R$ 298,955 in 3Q12, compared to R$ 357,496 in 3Q11. This basically reflects a lower volume of loans linked to the CDI rate in 3Q12 than in 3Q11, and also the lower variation represented by applying the CDI rate in the quarter.  In 3Q12 this variation was 1.91%, compared to 3.01% in 3Q11.

 

·                      Expense on monetary updating of loans and financing 199.67% higher, at R$ 48,049, in 3Q12 than in 3Q11 (R$ 16,034). This reflects the higher value of the IGP—M inflation index in the third quarter of 2012 than in 3Q11, and also the effect of new capital raised as from 2Q11.

 

·                      Expense of monetary updating on paid concessions: a total of R$ 17,086 in 3Q12, compared to R$ 4,135 in 3Q11. This reflects the significantly higher variation in the IGP—M inflation index in 3Q12 — which was 0.97% in 3Q11, but 3.78% in 3Q12.

 

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·                      Net expense of exchange rate variations in 3Q12 totaling R$ 1,893, compared to net expense of R$ 23,182 in 3Q11, on loans and financings in foreign currency, and on purchases of electricity from Itaipu, indexed to the dollar. There was a significant difference in the appreciation of the dollar against the Real in the two periods: by 18.79% in 3Q11, but 0.46% in 3Q12.

 

Net financial revenue (expenses)

 

 

 

3Q12

 

3Q11

 

Change,
%

 

FINANCIAL REVENUES

 

 

 

 

 

 

 

Interest income from cash investments

 

80,826

 

115,010

 

(29.72

)

Late charges on overdue electricity bills

 

49,019

 

30,336

 

61.59

 

Monetary variations

 

25,171

 

20,944

 

20.18

 

Interest and monetary updating on accounts receivable from Minas Gerais state government

 

44,035

 

38,525

 

14.30

 

Foreign exchange variations

 

8,397

 

(7,836

)

(207.16

)

Pasep and Cofins taxes on financial revenues

 

(1,666

)

(27,006

)

(93.83

)

Gains on financial instruments

 

 

29,865

 

 

Other

 

21,328

 

12,930

 

64.95

 

FINANCIAL EXPENSES

 

227,110

 

212,768

 

6.74

 

Costs of loans and financings

 

(298,955

)

(357,496

)

(16.38

)

Foreign exchange variations

 

(10,290

)

(15,346

)

(32.95

)

Monetary updating — loans and financings

 

(48,049

)

(16,034

)

199.67

 

Monetary updating — paid concessions

 

(17,086

)

(4,135

)

313.20

 

Monetary Updating — R&D and P.E.E.

 

(5,509

)

(9,112

)

(39.54

)

Monetary updating — Other items

 

(8,466

)

(10,347

)

(18.18

)

Losses on financial instruments

 

(332

)

 

 

Adjustment to present value

 

 

(2,800

)

 

Charges and monetary updating on Post-retirement liabilities

 

(27,878

)

(18,451

)

51.09

 

Other

 

(49,832

)

(50,933

)

(2.16

)

 

 

(466,397

)

(484,654

)

(3.77

)

NET FINANCIAL REVENUE (EXPENSES)

 

(239,287

)

(271,886

)

(11.99

)

 

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Table of Contents

 

Income tax and Social Contribution tax

 

Cemig’s expenses on income tax and the Social Contribution in 3Q12 totaled R$ 346,145, on pre-tax profit of R$ 1,283,276, a percentage of 26.97%. In 3Q11 the expense on income tax and the Social Contribution tax was R$ 311,407, on pre-tax profit of R$ 968,654, before tax effects — a percentage of 32.15%.

 

Ebitda

(Method of calculation not reviewed by external auditors)

 

Cemig’s Ebitda in 3Q12 was 17.63% higher than 3Q11:

 

EBITDA - R$ ‘000

 

3Q12

 

3Q11

 

Change, %

 

Profit for the period

 

937,131

 

657,247

 

42.58

 

+ Income tax and Social Contribution tax

 

346,145

 

311,407

 

11.16

 

+ Net financial revenue (expenses)

 

239,287

 

271,886

 

(11.99

)

+ Depreciation and amortization

 

229,237

 

248,649

 

(7.81

)

Ebitda

 

1,751,800

 

1,489,189

 

17.63

 

 

Ebitda

 

 

The higher Ebitda in 3Q12 than in 3Q11 primarily reflects net revenue 17.63% higher, mainly due to the gain on issue of shares referred to above, and revenue 19.19% higher, partially offset by operational costs and expenses (excluding effects of depreciation and amortization) 30.22% higher. The higher Operational costs and expenses in 3Q12 than 3Q11 are reflected in Ebitda margin, which was 36.90% in 3Q11, and 36.42% in 3Q12.

 

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Light: 3Q12 highlights

 

·                  Total electricity consumption in 3Q12, at 5,486 GWh, 3.5% higher than in 3Q11.

 

·                  Consumption by the Commercial user category up 13.3% YoY.

 

·                  Consolidated net revenue in the quarter, excluding construction revenue, was R$ 1.578 billion, up 10.6% from 3Q11.

 

·                  Revenue was higher year-on-year in all the segments of Light’s business, with a highlight for sales and services, in which revenue was up 103.4% YoY.

 

·                  Consolidated Ebitda in the quarter was R$ 269.5 million, 12.4% up from 3Q11, with a strong component from generation.

 

·                  3Q12 Ebitda margin was 17.1% — compared to 16.8% in 3Q11.

 

·                  Net income in the quarter was R$ 84.1 million, up from a loss of R$1.6 mn in 3Q11.

 

·                  Realized revenues from electricity invoices in the 12 months to end-3Q12 were 98.3% of the total invoiced, 1.1 percentage points better than the percentage achieved a year before.

 

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Table of Contents

 

Taesa: 3Q12 highlights

 

·                  “Re-IPO”, on July 19, 2012, raised R$ 1.729 billion.

 

·                  Objective: to finance Taesa’s strategy of growth based on M&A with addition of value, disciplined approach in auctions, and operational strengthening projects.

 

·                  Steps taken to refinance short-term debt, issued to finance acquisition of the assets of Abengoa.

 

·                  Debenture issue: R$ 2.16 billion, in 3 series, with maturities at 5, 8 and 12 years.

 

·                  Starting in 3Q12, Taesa consolidates 100% of Unisa, following the payment of R$ 904mn on July 3.

 

·                  9M12 Net income is R$ 470mn, 11.1% higher than in 9M11.

 

·                  3Q12 IFRS Net income includes the effect of updating valuation of the financial asset — carried out in the third quarter of each year — at R$ 299.5 mn — an increase of 8.2% from the end of 3Q11.

 

·                  9M12 Non-IFRS adjusted Ebitda was R$ 793.3mn, up 47.9% from 9M11, with adjusted Ebitda margin of 88.0%.

 

·                  3Q12 Non-IFRS adjusted Ebitda was R$ 296.3mn, up 56.3% from 3Q11, with Ebitda margin of 88.2%.

 

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FINANCIAL STATEMENTS SEPARATED BY COMPANY

 

FINANCIAL STATEMENTS SEPARATED BY COMPANY, AT SEPTEMBER 30, 2012

 

Item

 

HOLDING

 

CEMIG - GT

 

CEMIG - D

 

LIGHT

 

ETEP, ENTE,
ERTE, EATE, ECTE

 

GASMIG

 

CEMIG TELECOM

 

SÁ CARVALHO

 

ROSAL

 

OUTRAS

 

ELIMINAÇÓES/
TRANSFERENCIAS

 

TOTAL

 

ASSETS

 

16,012,281

 

16,265,199

 

11,818,850

 

2,956,855

 

1,362,149

 

915,654

 

468,210

 

178,752

 

148,940

 

1,565,839

 

(12,470,072

)

39,222,657

 

Cash and cash equivalents

 

128,210

 

1,016,930

 

713,770

 

304,105

 

23,950

 

33,528

 

133,658

 

5,431

 

3,425

 

175,773

 

 

2,538,780

 

Accounts receivable from clients

 

 

667,333

 

1,979,618

 

435,267

 

36,905

 

179,700

 

 

5,333

 

3,693

 

128,247

 

(176,969

)

3,259,127

 

Securities - cash investments

 

199,195

 

1,900,350

 

112,214

 

4,037

 

 

11,695

 

 

13,178

 

9,326

 

91,156

 

 

2,341,151

 

Taxes

 

537,856

 

178,079

 

1,098,657

 

184,458

 

 

55,192

 

35,724

 

500

 

58

 

81,816

 

 

2,172,340

 

Other assets

 

2,097,489

 

343,605

 

1,425,335

 

159,542

 

69,126

 

37,870

 

37,119

 

4,036

 

359

 

88,324

 

(53,478

)

4,209,327

 

Investments / Fixed / Intangible / Financial Assets of Concession

 

13,049,531

 

12,158,902

 

6,489,256

 

1,869,446

 

1,232,168

 

597,669

 

261,709

 

150,274

 

132,079

 

1,000,523

 

(12,239,625

)

24,701,922

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES

 

16,012,281

 

16,265,199

 

11,818,850

 

2,956,855

 

1,362,149

 

915,654

 

468,210

 

178,752

 

148,940

 

1,565,839

 

(12,470,072

)

39,222,657

 

Suppliers and supplies

 

4,867

 

249,051

 

929,780

 

192,309

 

16,915

 

51,724

 

8,548

 

671

 

2,278

 

57,596

 

(60,931

)

1,452,808

 

Loans, financings and debentures

 

1,087,591

 

8,243,626

 

4,326,696

 

1,254,635

 

366,305

 

119,550

 

141,253

 

 

 

390,353

 

682,936

 

16,612,945

 

Interest on Equity, and dividends

 

674,424

 

138,146

 

352,781

 

63,118

 

10,685

 

33,480

 

 

8,290

 

6,753

 

62,406

 

(707,379

)

642,704

 

Employee post-retirement benefits

 

103,298

 

442,362

 

1,405,255

 

284,025

 

 

 

 

 

 

69,861

 

 

2,304,801

 

Taxes

 

22,432

 

656,446

 

1,008,645

 

36,776

 

152,103

 

21,209

 

17,597

 

43,341

 

1,171

 

67,294

 

 

2,027,014

 

Other liabilities

 

284,766

 

593,697

 

973,484

 

276,118

 

41,726

 

198,384

 

13,792

 

2,794

 

1,960

 

101,195

 

(140,434

)

2,347,482

 

Stockholders’ equity

 

13,834,903

 

5,941,871

 

2,822,209

 

849,874

 

774,415

 

491,307

 

287,020

 

123,656

 

136,778

 

817,134

 

(12,244,264

)

13,834,903

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PROFIT AND LOSS ACCOUNT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net operational revenue

 

264

 

3,931,244

 

6,981,507

 

1,420,506

 

239,086

 

434,975

 

101,679

 

42,063

 

29,782

 

549,026

 

(357,664

)

13,372,468

 

Operational costs and expenses

 

(77,617

)

(1,625,133

)

(6,158,426

)

(1,231,533

)

(37,479

)

(392,785

)

(86,742

)

(10,110

)

(14,531

)

(439,605

)

357,664

 

(9,716,297

)

Electricity bought for resale

 

 

(429,297

)

(2,800,406

)

(825,551

)

 

 

 

(310

)

(3,916

)

(208,516

)

156,403

 

(4,111,593

)

Charges for the use of the basic transmission grid

 

 

(198,853

)

(594,585

)

 

 

 

 

 

(1,907

)

(2,933

)

174,475

 

(623,803

)

Gas purchased for resale

 

 

 

 

 

 

(356,028

)

 

 

 

 

 

(356,028

)

Construction costs

 

 

(77,385

)

(980,799

)

(122,496

)

(15,338

)

 

 

 

 

(31,514

)

 

(1,227,532

)

Personnel

 

(32,784

)

(236,187

)

(569,822

)

(57,814

)

(7,934

)

(13,230

)

(27,177

)

(1,041

)

(1,116

)

(25,713

)

 

(972,818

)

Employee profit shares

 

(13,288

)

(43,819

)

(117,521

)

 

 

 

(1,630

)

(196

)

(136

)

(904

)

 

(177,494

)

Employee post-retirement liabilities

 

(7,583

)

(22,494

)

(70,416

)

 

 

 

 

 

 

 

 

(100,493

)

Materials

 

(93

)

(13,725

)

(34,954

)

(4,353

)

563

 

(800

)

(131

)

(173

)

(255

)

(2,260

)

 

(56,181

)

Outsourced services

 

(8,895

)

(132,050

)

(499,535

)

(79,565

)

(10,981

)

(5,569

)

(16,549

)

(1,905

)

(2,576

)

(44,467

)

24,326

 

(777,766

)

Royalties for use of water resources

 

 

(134,914

)

 

 

 

 

 

(1,652

)

(883

)

(2,587

)

 

(140,036

)

Depreciation and amortization

 

(279

)

(260,750

)

(278,209

)

(67,919

)

(1,465

)

(17,786

)

(27,428

)

(4,136

)

(3,178

)

(50,792

)

 

(711,952

)

Operational provisions

 

8,817

 

(3,267

)

(66,384

)

(58,472

)

 

2,862

 

(10

)

(1

)

(1

)

(14,052

)

 

(130,508

)

Other expenses, net

 

(23,512

)

(72,392

)

(145,795

)

(15,363

)

(2,324

)

(2,234

)

(13,807

)

(696

)

(563

)

(55,867

)

2,460

 

(330,093

)

Operational profit before Equity gains (losses) and Fin. Rev (exp.)

 

(77,353

)

2,306,111

 

823,081

 

188,973

 

201,607

 

42,190

 

14,937

 

31,953

 

15,251

 

109,421

 

 

3,656,171

 

Gain on dilution of interest in jointly-controlled subsidiaries

 

 

253,538

 

 

4,147

 

 

 

 

 

 

1,020

 

 

258,705

 

Equity gain (loss) on subsidiaries

 

2,228,782

 

(2,201

)

 

(225

)

(266

)

(4,336

)

 

 

 

(57

)

(2,224,179

)

(2,482

)

Financial revenue

 

98,793

 

191,683

 

227,381

 

33,535

 

3,126

 

27,922

 

8,243

 

872

 

880

 

79,113

 

 

671,548

 

Financial expenses

 

(84,590

)

(679,627

)

(433,250

)

(127,964

)

(32,040

)

(9,480

)

(10,177

)

(374

)

(74

)

(97,971

)

 

(1,475,547

)

Profit before income tax and Social Contribution tax

 

2,165,632

 

2,069,504

 

617,212

 

98,466

 

172,427

 

56,296

 

13,003

 

32,451

 

16,057

 

91,526

 

(2,224,179

)

3,108,395

 

Income tax and Social Contribution tax

 

 

(596,395

)

(372,797

)

(24,293

)

(30,287

)

(19,106

)

(7,171

)

(11,850

)

(1,244

)

(30,992

)

 

(1,094,135

)

Deferred income tax and Social Contribution tax

 

7,119

 

(11,407

)

164,896

 

2,008

 

2,172

 

 

(1,909

)

871

 

(27

)

(5,232

)

 

158,491

 

Profit for the period

 

2,172,751

 

1,461,702

 

409,311

 

76,181

 

144,312

 

37,190

 

3,923

 

21,472

 

14,786

 

55,302

 

(2,224,179

)

2,172,751

 

 

39



Table of Contents

 

FINANCIAL INFORMATION BY OPERATIONAL SEGMENT

 

PROFIT AND LOSS ACCOUNTS SEPARATED BY ACTIVITY, SEPTEMBER 30, 2012

 

 

 

ELECTRICITY

 

 

 

 

 

 

 

 

 

 

 

Item

 

GENERATION

 

TRANSMISSION

 

DISTRIBUITION

 

GAS

 

TELECOMS

 

OTHER

 

ELIMINATIONS

 

TOTAL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSETS

 

12,965,466

 

10,189,277

 

14,513,020

 

935,961

 

468,292

 

974,207

 

(823,566

)

39,222,657

 

CAPEX

 

460,566

 

94,107

 

1,133,425

 

78,640

 

20,437

 

467

 

 

1,787,642

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET OPERATIONAL REVENUE

 

3,376,309

 

1,149,501

 

8,464,293

 

434,975

 

101,679

 

208,224

 

(362,513

)

13,372,468

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COST OF ELECTRICITY SERVICE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COST OF ELECTRICITY AND GAS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Electricity bought for resale

 

(449,834

)

 

(3,690,520

)

 

 

(127,642

)

156,403

 

(4,111,593

)

Charges for the use of the national grid

 

(212,449

)

(158

)

(594,585

)

 

 

 

183,389

 

(623,803

)

Gas purchased for resale

 

 

 

 

(356,028

)

 

 

 

(356,028

)

Total operational costs, electricity and gas

 

(662,283

)

(158

)

(4,285,105

)

(356,028

)

 

(127,642

)

339,792

 

(5,091,424

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONAL COSTS AND EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Personnel and managers

 

(147,641

)

(106,946

)

(631,023

)

(13,230

)

(27,177

)

(46,801

)

 

(972,818

)

Employees’ and managers’ profit shares

 

(28,065

)

(16,086

)

(117,521

)

 

(1,630

)

(14,192

)

 

(177,494

)

Post-retirement obligations

 

(15,116

)

(7,378

)

(70,416

)

 

 

(7,583

)

 

(100,493

)

Materials

 

(7,236

)

(7,013

)

(39,117

)

(800

)

(131

)

(1,884

)

 

(56,181

)

Outsourced services

 

(106,926

)

(61,371

)

(577,088

)

(5,569

)

(16,549

)

(30,524

)

20,261

 

(777,766

)

Depreciation and amortization

 

(293,230

)

(2,885

)

(345,733

)

(13,450

)

(27,438

)

(29,216

)

 

(711,952

)

Operational provisions

 

(5,071

)

1,234

 

(138,591

)

2,862

 

(10

)

9,068

 

 

(130,508

)

Royalties for use of water resources

 

(140,036

)

 

 

 

 

 

 

(140,036

)

Construction costs

 

 

(94,107

)

(1,133,425

)

 

 

 

 

(1,227,532

)

Others

 

(61,535

)

(25,625

)

(162,531

)

(2,234

)

(8,996

)

(71,632

)

2,460

 

(330,093

)

Total — Cost of operation

 

(804,856

)

(320,177

)

(3,215,445

)

(32,421

)

(81,931

)

(192,764

)

22,721

 

(4,624,873

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL COST

 

(1,467,139

)

(320,335

)

(7,500,550

)

(388,449

)

(81,931

)

(320,406

)

362,513

 

(9,716,297

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operational profit before Equity gains (losses) and Fin. rev. (exp.)

 

1,909,170

 

829,166

 

963,743

 

46,526

 

19,748

 

(112,182

)

 

3,656,171

 

Gain on dilution of interest in jointly-controlled subsidiaries

 

 

253,538

 

5,167

 

 

 

 

 

258,705

 

Equity gain (loss) on subsidiaries

 

(2,482

)

 

 

 

 

 

 

(2,482

)

Financial revenue

 

107,362

 

105,014

 

259,944

 

27,922

 

8,243

 

163,063

 

 

671,548

 

Financial expenses

 

(328,865

)

(242,542

)

(736,825

)

(9,480

)

(10,177

)

(147,658

)

 

(1,475,547

)

PRE-TAX PROFIT (LOSS)

 

1,685,185

 

945,176

 

492,029

 

64,968

 

17,814

 

(96,777

)

 

3,108,395

 

Income tax and Social Contribution tax

 

(569,174

)

(97,516

)

(398,417

)

(19,106

)

(7,171

)

(2,751

)

 

(1,094,135

)

Deferred income tax and Social Contribution tax

 

40,343

 

(63,308

)

183,404

 

 

(1,909

)

(39

)

 

158,491

 

PROFIT (LOSS) FOR THE PERIOD

 

1,156,354

 

784,352

 

277,016

 

45,862

 

8,734

 

(99,567

)

 

2,172,751

 

 

40



Table of Contents

 

Permitted Annual Revenue – RAP

 

Values of RAP (Permitted Annual Revenue)
Specified by Aneel Homologating Resolution N
o 1313*

 

Company

 

RAP

 

Cemig %
interest

 

In Cemig
Consolidated
result

 

Cemig GT

 

Taesa

 

 

 

43,0

%

 

 

638.566.429

 

ETEO

 

130.695.987

 

100,0

%

56.199.275

 

 

 

ETAU

 

32.230.169

 

52,6

%

7.287.048

 

 

 

Novatrans

 

386.271.534

 

100,0

%

166.096.760

 

 

 

TSN

 

361.361.807

 

100,0

%

155.385.577

 

 

 

Gtesa

 

6.610.066

 

100,0

%

2.842.328

 

 

 

Patesa

 

15.875.326

 

100,0

%

6.826.390

 

 

 

Munirah

 

27.116.003

 

100,0

%

11.659.881

 

 

 

Brasnorte

 

21.983.585

 

38,7

%

3.655.453

 

 

 

Abengoa

 

 

 

 

 

 

 

 

 

NTE

 

113.773.931

 

100,0

%

48.922.790

 

 

 

STE

 

60.710.249

 

100,0

%

26.105.407

 

 

 

ATEI

 

110.733.507

 

100,0

%

47.615.408

 

 

 

ATEII

 

168.557.454

 

100,0

%

72.479.705

 

 

 

ATEIII

 

77.884.667

 

100,0

%

33.490.407

 

 

 

Cemig GT

 

485.248.168

 

100,0

%

485.248.168

 

485.248.168

 

Cemig Itajubá

 

30.478.914

 

100,0

%

30.478.914

 

30.478.914

 

Centroeste

 

12.931.500

 

51,0

%

6.595.065

 

 

 

Transirapé

 

16.767.372

 

24,5

%

4.108.006

 

 

 

Transleste

 

30.326.381

 

25,0

%

7.581.595

 

 

 

Transudeste

 

18.796.578

 

24,0

%

4.511.179

 

 

 

TBE

 

 

 

 

 

 

 

 

 

EATE

 

319.747.817

 

50,0

%

159.809.959

 

 

 

STC

 

30.054.382

 

40,0

%

12.018.747

 

 

 

Lumitrans

 

19.783.390

 

40,0

%

7.911.378

 

 

 

ENTE

 

167.314.049

 

50,0

%

83.640.293

 

 

 

ERTE

 

29.567.524

 

50,0

%

14.780.805

 

 

 

ETEP

 

72.846.843

 

50,0

%

36.408.852

 

 

 

ECTE

 

70.610.434

 

19,1

%

13.479.532

 

 

 

EBTE (Stakes of Cemig GT + EATE)

 

33.500.428

 

74,5

%

24.954.469

 

 

 

ESDE

 

10.098.940

 

50,0

%

5.046.440

 

4.948.480

 

Light

 

6.645.644

 

32,6

%

2.165.151

 

 

 

Transchile**

 

17.138.480

 

49,0

%

8.397.855

 

 

 

RAP: CEMIG TOTALS

 

 

 

 

 

1.545.702.836

 

1.159.241.991

 

 


*            Permitted Annual Revenue in effect from July 1, 2012 to June 30, 2013.

**     Transmission revenue of Chile-based Transchile is set in US$, and adjusted annually by Chilean government Decree 163 (http://www.cne.cl/images/stories/normativas/otros%20niveles/electricidad/DOC65_-_decreto163obrasurgentes.pdf). For the year 2012 (January through December) its budgeted transmission revenue was in the order of US$ 8,314,000.

For the year 2013 the figure currently expected is US$ 8,462,000.00.

For conversion into Reais in this table, the exchange rate of November 13, 2012 was used: R$ 2.0614/US$.

 

41



Table of Contents

 

Appendices

 

Cemig D: Tables (R$ ‘000)

 

CEMIG D Market

 

 

 

(GWh)

 

GW

 

Quarter

 

Captive Consumers