6-K

 

 

 

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 6-K

 

 

Report of foreign private issuer pursuant to rule 13a-16 or 15d-16 of the securities exchange act of 1934

For the month of April 2016

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   ¨

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):  ¨

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):  ¨

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  ¨                 No   x

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

 

 

 


Index

 

Item

  

Description of Item

 

1.

  

 

Summary of Minutes of the 571st Meeting of the Board of Directors Held on July 3, 2013

 

2.   

Summary of Minutes of the 594th Meeting of the Board of Directors Held on April 30, 2014

 

3.   

Market Notice Dated February  3, 2016: Reply to BM&FBovespa Official Letter 285/2016–SAE, of February 2, 2016

 

4.   

Summary of Principal Decisions of the 653rd Meeting of the Board of Directors Held February 19, 2016

 

5.   

Material Announcement Dated March  1, 2016: Exchange of AGC Energia debentures for shares in Cemig

 

6.   

Material Announcement Dated March  3, 2016: Material Stock Transaction – BNDESPAR

 

7.   

Summary of Principal Decisions of the 654th Meeting of the Board of Directors Held on March 11, 2016

 

8.   

Summary of Principal Decisions of the 655th Meeting of the Board of Directors Held on March 11, 2016

 

9.   

Material Announcement Dated March 16, 2016: Mr.  Carlos Henrique Waack’s resignation as CEO of Renova Energia S.A.

 

10.   

Summary of Principal Decisions of the 656th Meeting of the Board of Directors Held on March 28, 2016

 

11.   

Summary of Principal Decisions of the 657th Meeting of the Board of Directors Held on March 28, 2016

 

12.   

Notice to Shareholders Dated March  29, 2016: Article 133 of Law 6,404 of December 15, 1976

 

13.   

Earnings Release – 2015

 

14.   

2015 Results – Presentation

 

15.   

Market Announcement Dated March  28, 2016: Creation of joint Directorate for Compliance and Corporate Risk Management

 

16.   

Convocation and Proposal of the Ordinary and Extraordinary General Meetings of Stockholders to be Held April 29, 2016

 

17.   

Summary of Minutes of the 656th Meeting of the Board of Directors Held on March 28, 2016

 

18.   

Material Announcement Dated April 2, 2016: Renova Energia S.A.: The ESPRA Agreement rescinded. Intention to exercise the option to sell Terraform Global’s shares held by Renova Energia S.A.

 

 


FORWARD-LOOKING STATEMENTS

This report contains statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties. Actual results could differ materially from those predicted in such forward-looking statements. Factors which may cause actual results to differ materially from those discussed herein include those risk factors set forth in our most recent Annual Report on Form 20-F filed with the Securities and Exchange Commission. CEMIG undertakes no obligation to revise these forward-looking statements to reflect events or circumstances after the date hereof, and claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.


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
Date: April 6, 2016     By:   /s/    Fabiano Maia Pereira
    Name:   Fabiano Maia Pereira
    Title:   Chief Officer for Finance and Investor Relations

 

 


 

1. SUMMARY OF MINUTES OF THE 571ST MEETING OF THE BOARD OF DIRECTORS HELD ON JULY 3, 2013

 

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COMPANHIA ENERGÉTICA DE MINAS GERAIS – CEMIG

LISTED COMPANY – CNPJ 17.155.730/0001-64 – NIRE 31300040127

BOARD OF DIRECTORS

SUMMARY OF MINUTES

OF THE

571ST MEETING

 

Date, time and place:   July 3, 2013 at 9 a.m. at the company’s head office.
Meeting Committee:  

Chair: Dorothea Fonseca Furquim Werneck;

Secretary: Alexandre de Queiroz Rodrigues

Summary of proceedings:

 

I Conflict of interest: The Chair asked the Board Members present whether any of them had conflict of interest in relation to the matter on the agenda of this meeting, and all stated there was no such conflict of interest, except following members who stated that they had conflict of interest:

 

Paulo Roberto Reckziegel Guedes,    Saulo Alves Pereira Junior,    Bruno Magalhães Menicucci,
Newton Brandão Ferraz Ramos,    Tarcísio Augusto Carneiro, and    Marina Rosenthal Rocha

These members withdrew from the meeting room at the time of discussion and voting on the matter, returning after the vote on it had been taken, to proceed with the meeting.

 

II The Board approved:

 

  a) Payment of subscription of shares in Acesa, referred to in subclause ‘c’ of item III below, in the amount of up to R$ 170 million, within 3 years.

 

  b) The minutes of this meeting.

 

III The Board authorized:

 

  a) Signature, jointly with Andrade Gutierrez Concessões S.A. (‘AGC’), Equatorial Energia S.A. (‘Equatorial’) and CPFL Energia S.A. (‘CPFL’), of the Term of Adhesion to the Memorandum of Understanding signed between CPFL and Equatorial.

 

  b) Signature, jointly with:

– AGC and the signatories of the Investment Commitment Undertaking (i.e., Equatorial and CPFL), as investors; Jorge Queiroz de Morais Junior, as vendor; and JQMJ Participações S.A, BBPM Participações S.A., Denerge Desenvolvimento Energético S.A., Rede Energia S.A. and Empresa de Eletricidade Vale Paranapanema S.A., as consenting parties,

– of the Term of Adhesion to the Share Sale Commitment Undertaking for participation in companies of the Rede Group (Grupo Rede), by a company to be constituted by Cemig, AGC and Equatorial.

 

  

 

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.

 

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  c) Constitution by Cemig, jointly with AGC and Equatorial, of the company that will be the vehicle for the acquisition referred to in subclause ‘b’ of this item, to be named ACESA, of which the total and voting stock will be owned as follows:

Equatorial 50%; Cemig 25%; AGC 25%.

 

  d) Signature, by Cemig, with AGC and Equatorial, of a Stockholders’ Agreement in relation to ACESA.

 

  e) Supplementation to the budget for expenses of the Chief Business Development Officer’s Department, in the period of 2013 and 2014, to provide from the payments to advisors and consultants specified in the Investment Commitment Undertaking and in the Term of Adhesion referred to above.

 

IV The Board ratified signature of the Memorandum of Agreement with AGC and Equatorial to govern, establish and/or provide details of the terms and conditions for a valuation to be the basis of the acquisition referred to in subclause ‘b’ of Item III above and will agree the manner in which the participation of Cemig and AGC in the potential acquisition of companies of the Rede Group will take place.

 

V Comment: The Chair made comments on a subject of interest to the Company.

The following were present:

 

Board members:   

Dorothea Fonseca Furquim Werneck,

Djalma Bastos de Morais,

Arcângelo Eustáquio Torres Queiroz,

Guy Maria Villela Paschoal,

João Camilo Penna,

Paulo Roberto Reckziegel Guedes,

Saulo Alves Pereira Junior,

Tadeu Barreto Guimarães,

Wando Pereira Borges,

   Adriano Magalhães Chaves,

Bruno Magalhães Menicucci,

Luiz Augusto de Barros,

Newton Brandão Ferraz Ramos,

Tarcísio Augusto Carneiro,

Christiano Miguel Moysés,

Franklin Moreira Gonçalves,

Marco Antonio Rodrigues da Cunha,

Marina Rosenthal Rocha,

Paulo Sérgio Machado Ribeiro;

Chief Officer:    Fernando Henrique Schüffner Neto;     
Secretary:    Alexandre de Queiroz Rodrigues.     

(Signed) Alexandre de Queiroz Rodrigues

Registered at:

Commercial Board of the State of Minas Gerais

I certify registry on: February 16, 2016

Under the number: 5701198

Filing Receipt number: 16/163.964-0

Marinely de Paula Bomfim

General Secretary

 

  

 

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.

 

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2. SUMMARY OF MINUTES OF THE 594TH MEETING OF THE BOARD OF DIRECTORS HELD ON APRIL 30, 2014

 

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COMPANHIA ENERGÉTICA DE MINAS GERAIS – CEMIG

LISTED COMPANY – CNPJ 17.155.730/0001-64 – NIRE 31300040127

BOARD OF DIRECTORS

SUMMARY OF MINUTES

OF THE

594TH MEETING

 

Date, time and place:  

April 30, 2014 at 8.30 a.m. at the company’s head office,

Av. Barbacena 1200, 21st floor, Belo Horizonte, Minas Gerais, Brazil.

Summary of proceedings:

 

I Meeting Committee: Due to vacancy of the position of Chair of this Board, as a result of the resignation, on April 7, 2014, of the board member Dorothea Fonseca Furquim Werneck, as per a letter in the Company’s possession, the Deputy Chair, Mr. Djalma Bastos de Morais, assumed the post of Chair, and invited Mr. Alexandre de Queiroz Rodrigues to be Secretary of the meeting.

 

II Conflict of interest: The board members listed below said they had no conflict of interest in the matters on the agenda of this meeting.

 

III The Board approved the minutes of this meeting.

 

IV The Board authorized acquisition, by Cemig GT, of 49.9% of the voting and total stock of Retiro Baixo Energética S.A., an unlisted special-purpose corporation, which has as its only asset the Retiro Baixo Hydroelectric Plant, jointly with Orteng Equipamentos e Sistemas Ltda. and Arcadis Logos Energia.

 

V Comment: The Chair made comments on a subject of interest to the Company.

The following were present:

 

Board members:   

Djalma Bastos de Morais,

Arcângelo Eustáquio Torres Queiroz,

Guy Maria Villela Paschoal,

João Camilo Penna,

Joaquim Francisco de Castro Neto,

Saulo Alves Pereira Junior,

Wando Pereira Borges,

   Bruno Magalhães Menicucci,

Luiz Augusto de Barros,

Marina Rosenthal Rocha,

Newton Brandão Ferraz Ramos,

Tarcísio Augusto Carneiro,

Adriano Magalhães Chaves,

José Augusto Gomes Campos;

Secretary:    Alexandre de Queiroz Rodrigues.     

(Signed) Alexandre de Queiroz Rodrigues

 

  

 

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.

 

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3. MARKET NOTICE DATED FEBRUARY 3, 2016: REPLY TO BM&FBOVESPA OFFICIAL LETTER 285/2016–SAE, OF FEBRUARY 2, 2016

 

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COMPANHIA ENERGÉTICA DE MINAS GERAIS – CEMIG

LISTED COMPANY – CNPJ 17.155.730/0001-64 – NIRE 31300040127

MARKET NOTICE

Reply to BM&FBovespa Official Letter 285/2016–SAE, of February 2, 2016

Question asked by BM&FBovespa

“ COMPANHIA ENERGÉTICA DE MINAS GERAIS – CEMIG

Mr. Fabiano Maia Pereira

Investor Relations Director

Subject: Atypical trading in shares

Dear Sir,

In view of the most recent variations in the prices of your company’s shares, the number of trades and volume traded, as set out below, we request you to inform us, by February 3, 2016, whether there is any fact you are aware of that could be the reason for this.

We note the obligation stated in the sole sub-paragraph of Article 4 of CVM Instruction 358/02, to question managers and controlling stockholders of the Company to ascertain whether they had knowledge of information that should be disclosed to the market.

 

ON shares

 

Prices (R$ per share)

 

Date

   Opening      Minimum      Maximum      Average      Last      Change %      No. of trades      Quantity      Volume  

19/01/2016

     4.72         4.47         4.82         4.62         4.47         –4.69         296         84,000         388,152.00   

20/01/2016

     4.48         4.39         4.59         4.53         4.53         1.34         267         78,200         354,114.00   

21/01/2016

     4.52         4.50         4.74         4.59         4.51         –0.44         94         36,600         168,133.00   

22/01/2016

     4.66         4.66         4.80         4.74         4.72         4.66         114         80,900         383,319.00   

26/01/2016

     4.85         4.60         4.85         4.71         4.76         0.85         187         86,300         406,189.00   

27/01/2016

     4.78         4.76         5.22         5.00         5.15         8.19         205         88,500         442,464.00   

28/01/2016

     5.27         5.06         5.51         5.34         5.38         4.47         381         299,000         1,597,442.00   

29/01/2016

     5.48         5.48         6.01         5.80         5.80         7.81         1,197         400,700         2,323,637.00   

01/02/2016

     5.97         5.66         6.70         6.35         6.70         15.52         810         201,900         1,281,571.00   

02/02/2016*

     6.80         5.39         6.86         6.03         5.46         –18.50         494         224,800         1,356,312.00   

 

* Updated to 5.04 p.m.

 

  

 

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.

 

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PN shares

 

Prices (R$ per share)

 

Date

   Opening      Minimum      Maximum      Average      Last      Change %      No. of trades      Quantity      Volume  

19/01/2016

     4.57         4.28         4.60         4.49         4.29         –4.67         15,646         7,495,100         33,657,323.00   

20/01/2016

     4.25         4.10         4.35         4.25         4.35         1.40         19,127         7,806,400         33,168,684.00   

21/01/2016

     4.35         4.28         4.49         4.39         4.37         0.46         8,351         3,488,400         15,310,830.00   

22/01/2016

     4.50         4.37         4.51         4.45         4.47         2.29         11,023         3,764,600         16,743,219.00   

26/01/2016

     4.49         4.28         4.60         4.44         4.45         –0.45         14,118         4,761,900         21,119,273.00   

27/01/2016

     4.41         4.41         4.98         4.81         4.91         10.34         11,670         4,936,400         23,743,818.00   

28/01/2016

     4.86         4.78         5.34         5.10         5.34         8.76         11,158         6,132,600         31,270,477.00   

29/01/2016

     5.39         5.37         6.02         5.82         5.91         10.67         18,080         9,150,400         53,211,442.00   

01/02/2016

     5.84         5.76         6.70         6.45         6.65         12.52         16,394         8,800,500         56,774,586.00   

02/02/2016*

     6.45         5.25         6.48         5.69         5.30         –20.30         21,797         12,039,000         68,520,753.00   

 

* Updated to 5.05 p.m.

The file to be sent should contain the question that is asked above, preceding your company’s reply.

We remind you that this request is made under the Cooperation Working Agreement made between the CVM and BM&FBOVESPA on December 13, 2011, and that non-compliance with it may make your company subject to imposition of an incentive fine by the Company Relations Management Unit (SEP) of the CVM, subject to CVM Instruction 452/07.

Yours,

Nelson Barroso Ortega

Company Monitoring Management Unit”

Reply by CEMIG

Dear Mr. Nelson Barroso Ortega,

On the question of the most recent variations in the prices of our shares, and the increase in the number of trades and the quantity traded, we inform you that we have no knowledge of any fact or event resulting from our activities or business that would justify the events and which has not been duly publicized.

In compliance with Article 4 of CVM Instruction 358/02, the Company’s managers and controlling stockholders have been questioned to ascertain whether they had knowledge of information that should have been disclosed to the market. We have not yet received the replies.

Cemig reiterates its commitment to opportune and timely disclosure of all and any fact which is of interest to its stockholders.

Belo Horizonte, February 3, 2016.

Fabiano Maia Pereira

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.

 

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4. SUMMARY OF PRINCIPAL DECISIONS OF THE 653RD MEETING OF THE BOARD OF DIRECTORS HELD FEBRUARY 19, 2016

 

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COMPANHIA ENERGÉTICA DE MINAS GERAIS – CEMIG

LISTED COMPANY – CNPJ 17.155.730/0001-64 – NIRE 31300040127

BOARD OF DIRECTORS

Meeting of February 19, 2016

SUMMARY OF PRINCIPAL DECISIONS

At its 653rd meeting, held on February 19, 2016, the Board of Directors of Cemig (Companhia Energética de Minas Gerais) decided the following:

 

1. Guarantee in contracting of loans by Cemig D.

 

2. Communication to the Executive Board of decision on signature of terms of indemnity and quittance with Axxiom Soluções Tecnológicas S.A.

 

3. Signature of amendment to contract, between the federal government and Centroeste, with Cemig and Furnas as consenting parties.

 

4. Filing of a legal action.

 

5. Cost of capital.

 

6. Contracting of advertising agencies.

 

  

 

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.

 

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5. MATERIAL ANNOUNCEMENT DATED MARCH 1, 2016: EXCHANGE OF AGC ENERGIA DEBENTURES FOR SHARES IN CEMIG

 

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COMPANHIA ENERGÉTICA DE MINAS GERAIS – CEMIG

LISTED COMPANY – CNPJ 17.155.730/0001-64 – NIRE 31300040127

MATERIAL ANNOUNCEMENT

Exchange of AGC Energia debentures for shares in Cemig

With reference to the information already given in the Market Announcement published on December 1, 2015, Cemig (Companhia Energética de Minas Gerais), a listed company with securities traded on the stock exchanges of São Paulo, New York and Madrid, in compliance with CVM Instruction 358 of January 3, 2002, hereby reports to the Brazilian Securities Commission (CVM), the São Paulo Stock Exchange (BM&FBovespa S.A.) and the market in general as follows:

Cemig has today received correspondence from the stockholder AGC Energia S.A. (AGC Energia’) reporting that BNDES Participações S.A. – BNDESPar (‘BNDESPar’) has requested exchange of the totality of the debentures issued under the Deed of AGC Energia’s First Private Issue of Non-convertible Permanent Asset-guaranteed Exchangeable Shareholders’ Debentures, in a single series, dated February 28, 2011 and amended January 17, 2012, for 54,342,992 common shares and 16,718,797 preferred shares in Cemig, owned by AGC Energia, and asking Cemig that all payments to stockholders arising from the shares being exchanged, declared after February 25, 2016 and not paid by February 29, 2016 should be paid directly to BNDESPar.

Cemig will keep its stockholders and the market duly informed on all new information on this subject.

Belo Horizonte, March 1, 2016.

Fabiano Maia Pereira

Diretor de Finanças e Relações com Investidores

 

  

 

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.

 

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6. MATERIAL ANNOUNCEMENT DATED MARCH 3, 2016: MATERIAL STOCK TRANSACTION – BNDESPAR

 

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COMPANHIA ENERGÉTICA DE MINAS GERAIS – CEMIG

LISTED COMPANY – CNPJ 17.155.730/0001-64 – NIRE 31300040127

MATERIAL ANNOUNCEMENT

MATERIAL STOCK TRANSACTION – BNDESPAR

In accordance with CVM Instruction 358 of January 3, 2002, as amended, 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 Brazilian Securities Commission (CVM), the São Paulo Stock Exchange (BM&F Bovespa S.A.) and the market in general, as follows:

Cemig has received correspondence from BNDES Participações S.A. – BNDESPar (‘BNDESPar’) with the following content:

 

“1. In accordance with Article 12 of CVM Instruction 358/02 (“the CVM Instruction”) as amended, and CVM Official Circular CVM/SEP/N°002/2015, BNDES Participações S.A. –BNDESPar, a wholly-owned subsidiary of the Brazilian Development Bank (Banco Nacional de Desenvolvimento Econômico e Social – BNDES), registered in the CNPJ/MF under Nº 00.383.281/0001-09; with head office in Brasília, Federal District, at Centro Empresarial Parque Cidade, Setor Comercial Sul – SCS, Quadra 9, Torre C, 12th Floor, and offices in Rio de Janeiro, RJ, at Avenida República do Chile 100, hereby informs you as follows:

On March 3, 2016, BNDESPar exchanged the totality of its holding of debentures issued under the Deed of the First Private Issue by AGC Energia of Non-convertible Permanent Asset-guaranteed Exchangeable Shareholders’ Debentures, in a Single Series, dated February 28, 2011 and amended January 17, 2012, for 54,342,992 common shares and 16,718,797 preferred shares in Companhia Energética de Minas Gerais (“Cemig”), owned by AGC Energia.

 

2. After the exchange, the equity interest held by BNDESPar in Cemig — which on March 2, 2016 totaled 0% of the common shares and 1.13% of the preferred shares — increased to 12.9% of the common shares and 3.13% of the preferred shares. Under Article 12, §1º, of CVM Instruction 358/02, this characterizes a material transaction in the stock of Cemig.

 

3. On March 2, 2016 BNDESPar held an equity interest of 0.75% in the total capital of Cemig. This total equity interest has now increased to 6.4%.

 

4. We request you to transmit this information to the market, in accordance with the CVM Instruction.

Cemig will keep stockholders and the market duly informed of all new information on this subject.

Belo Horizonte, March 3, 2016.

Fabiano Maia Pereira

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.

 

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7. SUMMARY OF PRINCIPAL DECISIONS OF THE 654TH MEETING OF THE BOARD OF DIRECTORS HELD ON MARCH 11, 2016

 

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COMPANHIA ENERGÉTICA DE MINAS GERAIS – CEMIG

LISTED COMPANY – CNPJ 17.155.730/0001-64 – NIRE 31300040127

BOARD OF DIRECTORS

First meeting of March 11, 2016

SUMMARY OF PRINCIPAL DECISIONS

At its 654th meeting, held on March 11, 2016, the Board of Directors of Cemig (Companhia Energética de Minas Gerais) decided the following:

 

  Alteration of the value of a loan to Cemig D from the Federal Savings Bank (Caixa Econômica Federal), with guarantee by Cemig.

 

  

 

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.

 

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8. SUMMARY OF PRINCIPAL DECISIONS OF THE 655TH MEETING OF THE BOARD OF DIRECTORS HELD ON MARCH 11, 2016

 

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COMPANHIA ENERGÉTICA DE MINAS GERAIS – CEMIG

LISTED COMPANY – CNPJ 17.155.730/0001-64 – NIRE 31300040127

BOARD OF DIRECTORS

Second meeting of March 11, 2016

SUMMARY OF PRINCIPAL DECISIONS

At its 655th meeting, held on March 11, 2016, the Board of Directors of Cemig (Companhia Energética de Minas Gerais) decided the following:

 

  Change in the composition of the Executive Board:

Mr. Luiz Fernando Rolla no longer to be Chief Officer for Institutional Relations and Communication; and election of Mr. Luís Fernando Paroli Santos to this office, to serve the rest of the present period of office, that is to say until the first meeting of the Board of Directors after the Annual General Meeting of 2018.

 

  

 

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.

 

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9. MATERIAL ANNOUNCEMENT DATED MARCH 16, 2016: MR. CARLOS HENRIQUE WAACK’S RESIGNATION AS CEO OF RENOVA ENERGIA S.A.

 

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COMPANHIA ENERGÉTICA DE MINAS GERAIS – CEMIG

LISTED COMPANY – CNPJ 17.155.730/0001-64 – NIRE 31300040127

MATERIAL ANNOUNCEMENT

Cemig (Companhia Energética de Minas Gerais), a listed company with securities traded on the stock exchanges of São Paulo, New York and Madrid, in compliance with CVM Instruction 358 of January 3, 2002, hereby reports to the Brazilian Securities Commission (CVM), the São Paulo Stock Exchange (BM&FBovespa S.A.) and the market in general as follows:

On March 15, 2016 Cemig’s affiliated company Renova Energia S.A. (Renova’) published a Material Announcement with the following content:

“ Material Fact

In accordance with CVM Instruction 358/2002 as amended, Renova Energia S.A. (RNEW11) (“Renova” or “the Company”) hereby informs its stockholders and the market that the Board of Directors was informed on this date, of the resignation of Mr. Carlos Henrique Waack from the position of CEO.

On the same date, the Board of Directors elected Cristiano Corrêa de Barros to the position of CEO, who will provisionally cumulate the duties of his current position of CFO, Business Development and Investor Relations Officer.

Belo Horizonte, March 16, 2016

Fabiano Maia Pereira

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.

 

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10. SUMMARY OF PRINCIPAL DECISIONS OF THE 656TH MEETING OF THE BOARD OF DIRECTORS HELD ON MARCH 28, 2016

 

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COMPANHIA ENERGÉTICA DE MINAS GERAIS – CEMIG

LISTED COMPANY – CNPJ 17.155.730/0001-64 – NIRE 31300040127

 

BOARD OF DIRECTORS

First meeting of March 28, 2016

SUMMARY OF PRINCIPAL DECISIONS

At its 656th meeting, held on March 28, 2016, the Board of Directors of Cemig (Companhia Energética de Minas Gerais) decided the following:

 

  Grant of a guarantee for issue of Promissory Notes by Guanhães Energia S.A.

 

  

 

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.

 

22


 

11. SUMMARY OF PRINCIPAL DECISIONS OF THE 657TH MEETING OF THE BOARD OF DIRECTORS HELD ON MARCH 28, 2016

 

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COMPANHIA ENERGÉTICA DE MINAS GERAIS – CEMIG

LISTED COMPANY – CNPJ 17.155.730/0001-64 – NIRE 31300040127

BOARD OF DIRECTORS

Second meeting of March 28, 2016

SUMMARY OF PRINCIPAL DECISIONS

At its 657th meeting, held on March 28, 2016, the Board of Directors of Cemig (Companhia Energética de Minas Gerais) decided the following:

 

1. Technical feasibility study.

 

2. Report of Management and Financial Statements for the year 2015.

 

3. Allocation of the net profit for 2015.

 

4. Operational provisions in 2015.

 

5. Orientation of votes in the Annual General Meetings of Cemig D and Cemig GT.

 

6. Legal guarantee insurance, and corresponding counter-guarantee contract.

 

7. Sale of equity interest in Transchile.

 

8. Increase in the share capital of Light SESA; and orientation of vote, in a meeting of the Board of Directors of Light S.A.

 

9. Reduction of share capital, and orientation of vote in Extraordinary General Meeting of Stockholders, of Horizontes Energia S.A.

 

10. Amendment to private instrument of constitution of the exploration consortium.

 

11. Budget for April 2016.

 

12. Calling of Ordinary and Extraordinary General Meetings of Stockholders, to be held concurrently on April 29, 2016 at 11 a.m.

 

  

 

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.

 

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12. NOTICE TO SHAREHOLDERS DATED MARCH 29, 2016: ARTICLE 133 OF LAW 6,404 OF DECEMBER 15, 1976

 

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COMPANHIA ENERGÉTICA DE MINAS GERAIS – CEMIG

BRAZILIAN LISTED COMPANY – CNPJ 17.155.730/0001-64

NOTICE TO SHAREHOLDERS

We advise our shareholders that the documents referred to in article 133 of Law # 6,404 of December 15, 1976, relating to the year 2015, are available for consultation at the head offices of this Corporation located at Av. Barbacena, 1,200, Belo Horizonte.

Belo Horizonte, March 29, 2016

Fabiano Maia Pereira

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.

 

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13. EARNINGS RELEASE – 2015

 

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2015 RESULTS

CEMIG REPORTS

2015 NET INCOME OF

R$ 2.492 BILLION

Highlights

¡     Cash flow, as measured by Ebitda: R$ 4.9 billion in 2015

¡     2015 Net revenue R$ 21.2 billion

¡     R$ 1.7 billion contribution from CVA/Other financial tariff components in 2015

¡     Gain on Aliança stockholding transaction R$ 729 million in 2015

¡     R$ 1.2 billion provision for loss on investments in the year

 

Indicators (GWh)

   2015      2014      Change %  

Electricity sold, GWh (excluding CCEE)

     56,904         63,470         –10.35   

 

Indicators – R$ ’000

   2015     2014     Change %  

Sales on the CCEE

     2,425        2,348        3.28   

Net debt

     11,732        11,610        1.05   

Gross revenue

     32,842        25,165        30.51   

Net revenue

     21,292        19,540        8.97   

Ebitda (IFRS)

     4,954        6,381        –22.36   

Net income

     2,492        3,137        –20.56   

Profit per share

     1.98        2.49        –20.48   

Ebitda margin

     23.27     32.66     –9.39 p.a.   

 

 


 

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Conference call

Publication of 2015 results

Video webcast and conference call

March 30, 2016 – Wednesday – at 11 am (Brasília time)

This transmission on Cemig’s results will have simultaneous translation into English and can be seen in real time by Video Webcast, at http://ri.cemig.com.br or heard by conference call on:

+ 55 (11) 2188-0155 (1st option) or

+ 55 (11) 2188-0188 (2nd option)

Password: CEMIG

 

Playback of Video Webcast:

Site:

http://ri.cemig.com.br

Click on the banner and download.

Available for 90 days

 

  

Conference call – Playback:

Telephone: (+55-11) 2188-0400

Password:

CEMIG Português

Available from March 30 to April 13, 2016

Cemig Investor Relations

http://ri.cemig.com.br/

ri@cemig.com.br

Tel.:(+55-31) 3506-5024

Fax:(+55-31) 3506-5025

Cemig’s Executive Investor Relations Team

 

¡ Chief Finance and Investor Relations Officer

Fabiano Maia Pereira

 

¡ General Manager, Investor Relations

Antônio Carlos Vélez Braga

 

¡ Manager, Investor Market

Robson Laranjo

 

 

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Contents

 

CONFERENCE CALL

     29   

CEMIG INVESTOR RELATIONS

     29   

CEMIG’S EXECUTIVE INVESTOR RELATIONS TEAM

     29   

CONTENTS

     30   

DISCLAIMER

     31   

CEMIG STOCK PRICE PERFORMANCE

     32   

CEMIG: LONG TERM RATINGS

     33   

ADOPTION OF IFRS

     33   

CEMIG’S CONSOLIDATED ELECTRICITY MARKET

     35   

THE ELECTRICITY MARKET OF CEMIG D

     37   

THE ELECTRICITY MARKET OF CEMIG GT

     39   

PHYSICAL TOTALS OF TRANSPORT AND DISTRIBUTION – MWH

     40   

QUALITY INDICATORS – SAIDI AND SAIFI

     40   

CONSOLIDATED OPERATIONAL REVENUE

     41   

TAXES AND CHARGES APPLIED TO REVENUE

     43   

OPERATIONAL COSTS AND EXPENSES

     44   

FINANCIAL REVENUE (EXPENSES)

     49   

EBITDA

     50   

DEBT

     51   

THE CEMIG GROUP’S PORTFOLIO OF GENERATION ASSETS

     53   

FINANCIAL STATEMENTS SEPARATED BY COMPANY AND BY OPERATIONAL SEGMENT

     54   

GENERATING PLANTS

     56   

GENERATION PLANTS: CONCESSION CONTRACT EXPIRY PERIODS

     57   

EXCHANGE OF SHAREHOLDERS’ DEBENTURES OWNED BY AGC ENERGIA FOR SHARES IN CEMIG

     58   

GENERATION: ANNUAL PERMITTED REVENUE (RAP)

     60   

APPENDICES

     61   

 

 

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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. Due to 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 give rise to 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.

 

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Cemig stock price performance

 

Security

   Ticker    Currency      Close of 2015      Close of 2014      Change in the
period %
 

Cemig PN

   CMIG4      R$         5.97         12.40         -51.86

Cemig ON

   CMIG3      R$         6.28         13.04         -51.84

ADR PN

   CIG      US$         1.46         4.60         -68.38

ADR ON

   CIG.C      US$         1.74         5.11         -65.96

Ibovespa

   Ibovespa      -         43,349         50,007         -13.31

IEEX

   IEEX      -         24,803         27,161         -8.68

 

Source: Economática.

Trading volume in Cemig’s preferred shares (CMIG4) totaled R$ 10.93 billion in full-year 2015, a daily average of R$ 44.46 million. At this level, Cemig continues to be one of the most liquid companies in the Brazilian electricity sector, and one of the most traded in the Brazilian capital markets.

On the New York Stock Exchange, the volume traded in ADRs for Cemig’s preferred shares (CIG) in full-year 2015 was US$ 3.11 billion. We see this as reflecting recognition by the investor market of Cemig as a global investment option.

The São Paulo stock exchange Ibovespa index was down 13.31% in 2015, closing the year at 43,349 points. The negative result directly reflects Brazil’s current adverse economic phase.

Cemig’s shares underperformed the Ibovespa. Over the year the price of Cemig’s common shares (Cemig ON) declined 51.84%, and the preferred stock (Cemig PN) was down 51.86%. A major factor adversely affecting Cemig’s stock price was the conclusion, with a judgment against Cemig, of the legal action on the Jaguara Hydroelectric Plant in the Higher Appeal Court (STJ), even though the case has now been taken to the Federal Supreme Court on an appeal. Other factors affecting the stock price in the year included: designation by the Mining and Energy Ministry (published September 15), of Cemig GT as responsible for operation of the São Simão hydroelectric plant under the quota regime; the fall in electricity consumption; the water supply crisis affecting the country; and the country’s macroeconomic situation.

 

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Cemig: long term ratings

This table shows credit risk ratings and outlook for Cemig’s companies as provided by the principal rating agencies:

Brazilian ratings:

 

Agency

   Cemig    Cemig D    Cemig GT
     Rating    Outlook    Rating    Outlook    Rating    Outlook

Fitch

   AA–(bra)    Negative    AA–(bra)    Negative    AA–(bra)    Negative

S&P

   brA    Negative    brA    Negative    brA    Negative

Moody’s

   A2.br    Negative    A2.br    Negative    A2.br    Negative

Global ratings:

 

Agency

   Cemig    Cemig D    Cemig GT
     Rating    Outlook    Rating    Outlook    Rating    Outlook

S&P

   BB–    Negative    BB–    Negative    BB–    Negative

Moody’s

   Ba3    Negative    Ba3    Negative    Ba3    Negative

 

(Fitch gives only Brazilian – not global – ratings.)

On February 25, 2016, Moody’s downgraded its Brazilian ratings for Cemig, its wholly-owned subsidiaries Cemig D and Cemig GT, and their debenture issues from Aa2.br to A2.br; and their global ratings from Ba1 to Ba3, changing the outlook to negative.

Adoption of IFRS

The results presented below are prepared in accordance with the new Brazilian accounting rules, which embody a process of harmonization between Brazilian accounting rules and IFRS (International Financial Reporting Standards).

 

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PROFIT AND LOSS ACCOUNTS

 

Consolidated – R$ ’000

   2015     2014     Change %  

REVENUE

     21,292,211        19,539,578        8.97   
      

OPERATIONAL COSTS

      

Personnel

     (1,435,001     (1,252,458     14.57   

Employees’ and managers’ profit shares

     (137,364     (249,369     -44.92   

Post-retirement liabilities

     (156,009     (211,916     -26.38   

Materials

     (69,522     (98,660     -29.53   

Raw materials and inputs for production of electricity

     (83,723     (282,447     -70.36   

Outsourced services

     (899,470     (953,033     -5.62   

Electricity purchased for resale

     (9,541,940     (7,428,381     28.45   

Depreciation and amortization

     (834,830     (800,918     4.23   

Operational provisions

     (1,401,455     (580,720     141.33   

Charges for use of national grid

     (998,756     (744,431     34.16   

Gas bought for resale

     (1,050,925     (254,488     312.96   

Infrastructure construction costs

     (1,251,836     (941,795     32.92   

Other operational expenses, net

     (457,159     (651,993     -29.88   
  

 

 

   

 

 

   

 

 

 

TOTAL COST

     (18,317,990     (14,450,609     26.76   
      

Equity gain (loss) in subsidiaries

     415,865        210,484        97.58   

Fair value gain (loss) on stockholding transaction

     729,442        —          —     

Gain (loss) on combination of businesses

     —          280,945        —     
      

Operational profit before Financial revenue (expenses) and taxes

     4,119,528        5,580,398        -26.18   
      

Financial revenues

     1,469,277        592,684        147.90   

Financial expenses

     (2,204,344     (1,693,672     30.15   
  

 

 

   

 

 

   

 

 

 

Pretax profit

     3,384,461        4,479,410        -24.44   
      

Current and deferred income tax and Social Contribution tax

     (892,583     (1,342,507     -33.51   
  

 

 

   

 

 

   

 

 

 

NET INCOME FOR THE PERIOD

     2,491,878        3,136,903        -20.56   
  

 

 

   

 

 

   

 

 

 

Interest of the controlling stockholders

     2,491,375        3,136,639     

Interest of non-controlling stockholder

     503        264     
  

 

 

   

 

 

   
     2,491,878        3,136,903        -20.56   
  

 

 

   

 

 

   

NET INCOME FOR THE PERIOD

     2,491,878        3,136,903        -20.56   
  

 

 

   

 

 

   
      

Fair value gain (loss) on stockholding transaction

     (573,182     —       

Transmission indemillionity revenue

     —          (235,421  

Employment-law provision – 2012 annual salary increase

     —          84,091     

Equity method less – Madeira Energia

     —          167,022     

Gain (loss) on combination of businesses – Gasmig

     —          (185,424  
  

 

 

   

 

 

   

ADJUSTED NET INCOME FOR THE PERIOD

     1,918,696        3,125,205        -38,61   

 

* AFAC = Advance against future capital increase.

 

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Cemig’s consolidated electricity market

The Cemig Group sells electricity through its distribution company, Cemig Distribuição (‘Cemig D’), its generation and transmission company Cemig Geração e Transmissão (‘Cemig Generation and Transmission’, or ‘Cemig GT’), and the wholly-owned subsidiaries Horizontes Energia, Termelétrica Ipatinga (up to January 2015), Sá Carvalho, Termelétrica de Barreiro, Cemig PCH, Rosal Energia and Cemig Capim Branco Energia (up to March 2015).

Total sales reported for Cemig’s consolidated electricity market comprises sales to:

 

(I) captive consumers in Cemig’s concession area in the State of Minas Gerais;

 

(II) Free Consumers in both the State of Minas Gerais and other States of Brazil, in the Free Market (Ambiente de Contratação Livre, or ACL);

 

(III) other agents of the electricity sector – traders, generators and independent power producers, also in the ACL;

 

(IV) Distributors, in the Regulated Market (Ambiente de Contratação Regulada, or ACR); and

 

(V) the Wholesale Trading Chamber (Câmara de Comercialização de Energia Elétrica, or CCEE)

( – eliminating transactions between companies of the Cemig Group).

In 2015 this Cemig group sold a total volume of 56,903,594 MWh, which was 10.3% less than in 2014.

Overall, electricity consumption in 2015 was affected by adverse Brazilian political and economic circumstances; and, in the captive market, by the successive increases in electricity rates charged to consumers, associated with application of the ‘Tariff Flag’ system – resulting in significant increases in consumers’ electricity invoices.

Sales to distributors, traders, other generating companies and independent power producers totaled 10,831,194 MWh – or 23.4% less than in 2014.

 

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In December 2015 the Cemig Group invoiced 8,079,771 customers – a growth of 0.9% in the customer base in the year since December 2014. Of these, 8,079,719 were final consumers (including Cemig’s own consumption); and 52 were other agents of the Brazilian electricity sector.

This chart shows the breakdown of sales to final consumers of the Cemig Group in the quarter, by consumer category:

 

LOGO

Total consumption of electricity (GWh)

 

LOGO

The volume of electricity sold to final consumers of Cemig in 2015 was 10.35% lower than in 2014.

 

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Consolidated

   MWh      Change, %      Average
price

2015
R$
     Average
price

2014
R$
 
   2015      2014           

Residential

     9,829,992         10,013,757         –1.84         742.38         517.60   

Industrial

     22,968,931         26,025,584         –11.74         251.67         184.18   

Commercial, Services and Others

     6,433,728         6,395,473         0.60         614.94         435.57   

Rural

     3,379,734         3,390,096         –0.31         416.18         267.97   

Public authorities

     892,368         891,454         0.10         613.77         427.55   

Public lighting

     1,325,525         1,298,047         2.12         401.81         275.72   

Public service

     1,204,461         1,272,365         –5.34         448.66         289.33   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Subtotal

    

 

46,036,754

4,739

  

  

     49,286,776         –6.60         435.80         299.83   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Own consumption

     37,661         37,590         0.19         —           —     

Wholesale supply to agents in Free and Regulated Markets ( * )

     10,831,194         14,146,109         –23.43         197.90         159.16   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     56,903,594         63,470,475         –10.35         395.87         271.50   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

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

The electricity market of Cemig D

Electricity billed to captive clients and electricity transported for Free Clients and distributors with access to Cemig D’s networks totaled 42,124 GWh in 2015, or 5.3% less than in 2014.

There are two components of this reduction: Consumption by the captive market 2.1% lower in the year; and use of the network by Free Clients 10.2% lower by volume.

Overall, consumption of electricity in 2015 was affected by adverse Brazilian political and economic circumstances; and, in the captive market, by the successive increases in electricity rates charged to consumers, associated with application of the ‘Tariff Flag’ system, resulting in significant increases in consumers’ electricity invoices.

In December 2015 Cemig billed 8,079,645 consumers, or 0.9% more than in December 2014. Of this total, 422 are Free Consumers using Cemig D’s distribution network.

Comments on the various consumer categories:

 

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Residential

Residential consumption was 17.27% of the total volume of electricity transacted by Cemig, and totaled 9,830 GWh, or 1.84% less than in 2014.

Average monthly consumption per consumer in 2015 was 126.5 KWh/month, or 3.6% less than the average in 2014 (131.2 KWh/month) – this is the first year-on-year reduction in this variable since 2008.

Industrial

Electricity used by captive industrial clients was 7.84% lower in total volume than in 2014, and the total of electricity transported for Free Clients was 10.0% lower.

The main Brazilian and international macroeconomic factors that could have influenced consumption by the industrial sector are:

 

  ¡ In Brazil: Retraction of domestic demand, accumulation of inventories, idle manufacturing capacity, loss of competitiveness, reduction of the number of employees and/or reduction of the use of labor (e.g. forced vacations, shorter work shifts), lack of entrepreneur confidence, low levels of public and private investment, uncertainties in the Brazilian political and economic situation, high cost of corporate credit due to high interest rates, and banks being more selective in granting loans.

 

  ¡ International: Lower exports due to lower external demand.

In manufacturing there was a reduction in consumption across all sectors – led by: steel (–2.0%), non-metallic minerals (–7.7%), chemicals (–9.6%), ferroalloys (–44.6%), non-ferrous metals (–10.8%), auto industry (–16.1%), and textiles (–11.9%).

The year-on-year comparison is affected by two factors in 2014: (i) a group of Free Clients migrated to the national grid; and (ii) some Free Clients stopped using the Cemig D network.

 

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The electricity market of Cemig GT

One factor in Cemig GT’s total sales volume in 2015 was termination of concession of plants. Following this change, payment for the output from these plants was redirected to the Physical Guarantee Quota regime, and to settlement on the spot market.

Cemig GT’s market comprises sales of power as follows:

 

  (I) sales in the Free Market, to Free Clients, in Minas Gerais or other States;

 

  (II) sales in the Free Market to other agents in the electricity sector – traders, generators and independent power producers;

 

  (III) sales to electricity distributors (in the Regulated Market); and

 

  (IV) sales in the CCEE (Electricity Trading Chamber).

The total supply billed by Cemig GT in 2015 was 29,966 GWh, or 15.6% less than in 2014.

Free Clients consumed 18,832 GWh in 2015, 11.8% less than in 2014, reflecting:

 

  ¡ termination of contracts with clients at the end of 2014 that were not renewed with Cemig GT; and

 

  ¡ reduction of consumption by clients due to weak demand in the Brazilian economy, with lower domestic demand for goods and services, also affected by the speed of recovery of the international market.

Cemig GT added 28 new free market clients in 2015, mainly outside Minas Gerais.

Trading of electricity to other agents in the electricity sector in the Free Market totaled 6,443 GWh in 2015, 24.5% less than in 2014; and the total sold in the Regulated Market was 4,690 GWh, 16.9% less than in 2014.

 

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Physical totals of transport and distribution – MWh

 

Description

   MWh      Change, %  
   2015      2014     

Total energy carried

     48,067,296         49,899,186         –3.67   

Electricity transported for distributors

     361,487         355,204         7.84   

Electricity transported for free clients

     15,315,122         16,736,754         –8.47   

Own load

        

Consumption by captive market

     26,453,478         27,010,669         –2.06   

Losses in distribution network

     5,933,209         5,816,560         2.01   

QUALITY INDICATORS – SAIDI AND SAIFI

Cemig is continuously taking action to improve operational management, organization of the logistics of its emergency services, and its permanent regime of preventive inspection and maintenance of substations, lines and distribution networks. It also invests in training of its staff for improvement of qualifications, state-of-the-art technologies, and standardization of work processes, aiming to uphold the quality of electricity supply, and as a result maintain the satisfaction of clients and consumers.

The charts below show Cemig’s indicators for duration and frequency of outages – SAIDI (System Average Interruption Duration Index, in hours), and SAIFI (System Average Interruption Frequency Index, in number of outages), since January 2014. These results reflect the investments made by the company in preventive maintenance, such as cleaning of power line pathways, tree pruning, replacement of cross-arms, maintenance of structures, replacement of poles, transformers and cables, and other work such as network shielding, and overhaul and interconnection of circuits. Another important initiative is the change of technological level, with systematic investment in automation of the electricity system, which will enable automatic remote re-establishment of supply after outages.

 

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Consolidated operational revenue

Revenue from supply of electricity:

Total revenue from supply of electricity to final consumers in 2015 was R$ 22.526 billion, or 30.72% more than the total revenue of R$ 17.232 billion in 2014.

Final consumers

Total revenue from electricity sold to final consumers, excluding Cemig’s own consumption, was R$ 20.319 billion in 2015 – or 36.17% more than the total of R$ 14.922 billion in 2014.

The main factors affecting revenue were:

 

  ¡ The Annual Tariff Adjustment for Cemig D, with average effect of 14.76% on consumer tariffs, effective from April 8, 2014 (full effect in 2015).

 

  ¡ The Extraordinary Tariff Adjustment for Cemig D, which resulted in an average impact on consumers’ tariffs of 28.76%, applicable from March 2, 2015.

 

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¡ The Annual Tariff Adjustment effective from April 8, 2015, with average effect on consumer tariffs of 7.07%.

 

¡ Creation, in 2015, of the ‘Tariff Flag’ mechanism – at the following rates per 100 kWh consumed: (i) as from January 2015, R$ 1.50 per 100kWh for the Yellow Flag tariff, and R$ 3.00 for the Red Flag tariff; (ii) as from March 2015, R$ 2.50 per 100kWh for the Yellow Flag tariff and R$ 5.50 for the Red Flag tariff; and finally (iii) from September 2015, R$ 2.50 for the Yellow Flag tariff and R$ 4.50 for the Red Flag tariff. In practice, the Red Flag rates were in effect for the whole of 2015.

 

¡ Total volume of electricity sold in 2015 was 10.35% lower than in 2014.

 

     R$      Change
%
     Average
price

2015
R$
     Average
price

2014
R$
     Change
%
 
   2015     2014              

Residential

     7,297,557        5,183,149         40.79         742.38         517.60         43.43   

Industrial

     5,780,660        4,793,414         20.60         251.67         184.18         36.64   

Commercial, Services and Others

     3,956,344        2,785,659         42.03         614.94         435.57         41.18   

Rural

     1,406,590        908,436         54.84         416.18         267.97         55.31   

Public authorities

     547,707        381,144         43.70         613.77         427.55         43.55   

Public lighting

     532,603        357,892         48.82         401.81         275.72         45.73   

Public service

     540,338        368,136         46.79         448.66         289.33         55.07   
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Subtotal

     20,061,849        14,777,830         35.76         435.80         299.83         45.35   

Supply not yet invoiced, net

     256,753        144,162         78.10         —           —           —     

Wholesale supply to other concession holders (*)

     2,358,466        2,251,431         4.75         217.75         159.16         24.34   

Wholesale supply not yet invoiced, net

     (150,793     58,682         —           —           —           —     
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     22,526,275        17,232,105         30.72         395.87         271.50         45.81   
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

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

Revenue from Use of Distribution Systems (the TUSD charge)

The revenue of Cemig D (Distribution) from the TUSD in 2015 was R$ 1.465 billion, or 71.35% higher than in 2014 (R$ 855 million). This reflects the impact of the tariff adjustments in 2015 – an increase of 96.21% for Free Consumers. The 2015 increases were mainly due to passing through of the CDE (Energy Development Account) amounts to the tariffs paid by consumers. The effect of the increase in tariffs was partially offset by the effect of lower activity in the industrial sector – which consumed 11.74% less electricity, year-on-year, in the period.

 

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Revenue from transactions in the Wholesale Trading Chamber (CCEE)

Revenue from transactions in electricity on the CCEE was R$ 2.425 billion in 2015, compared to R$ 2.348 billion in 2014 – an increase of 3.28%. The components of this figure were: Higher total volume sold, at 7,157,641 MWh in 2015 – compared to 3,354,224 MWh in 2014; and the Spot Price (Preço de Liquidação de Diferenças – PLD) in the wholesale market 58.31% lower (at R$ 287.20/MWh in 2015, vs. R$ 688.89/MWh in 2014).

CVA and Other financial components in the tariff adjustment calculation

Due to the alteration in the concession contracts of the distributors, Cemig started to recognize certain balances of non-controllable costs to be passed through to Cemig D’s next tariff adjustment – these represented an operational revenue of R$ 1.704 billion in 2015, compared to R$ 1.107 billion in 2014.

Revenue from supply of gas

Cemig reports revenue from supply of gas totaling R$ 1.667 billion in 2015, compared to R$ 422 million in 2014 – an increase of 295.02%. The variation basically reflects the fact that figures for Gasmig began to be consolidated into Cemig’s results in October 2014.

Taxes and charges applied to Revenue

The sector charges that are effectively deductions from reported revenue were 105.28% higher in 2015, at R$ 11.549 billion – compared to R$ 5.626 billion in 2014. The increase mainly reflects the higher charges under the Energy Development Account (CDE), and also the Tariff Flag charges.

The Energy Development Account – CDE

Payments to the Energy Development Account (CDE) are decided by an Aneel Resolution. The expenses included are: concession indemillionities, tariff subsidies, the subsidy for balanced tariff reduction, the low-income consumer subsidy, the coal consumption subsidy, and the Fuels Consumption Account (CCC).

 

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Charges for the CDE in 2015 were R$ 2.870 billion, compared to R$ 211 million in 2014. This is the result of the new budget for the CDE in 2015, in which Aneel increased the annual amount to be paid by Cemig D, which is passed through to the consumer in the Sector Charges component of tariffs.

Consumer charges – the ‘Tariff Flag’ system

In 2015, with the Tariff Flag mechanism coming into force, Cemig had an account under Consumer Charges related to the Tariff Flag payments, totaling R$ 1.067 billion.

The ‘Flag Account’ (Conta Bandeira) was created on February 5, 2015, to manage the funds collected from captive customers of utilities holding electricity distribution concessions and permissions – these funds are paid, on account of the CDE, directly to the Flag Account. The Wholesale Trading Chamber (CCEE) passes the proceeds through to distribution agents, based on the difference between the realized amounts of costs of thermal generation and the exposure to spot prices, and the amount covered by the tariff.

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

Operational costs and expenses

Operational costs and expenses, excluding Financial revenue (expenses), totaled R$ 18.318 billion in 2015, compared to R$ 14.451 billion in 2014 – an increase of 26.76%.

 

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The following paragraphs comment on the main variations:

Electricity purchased for resale

The expense on electricity bought for resale in 2015 was R$ 9.542 billion, or 28.46% more than in 2014 (R$ 7.428 billion). Over the course of 2015, this cost has been more than 50% of the Company’s total costs. The main factors in the higher figure are:

Cemig D:

 

  ¡ Expense on electricity acquired in auctions 20.74% higher, at R$ 4.098 billion, in 2015, compared to R$ 3.394 billion in 2014 – arising mainly from availability contracts, due to the expenditure on fuel for generation by the thermal plants.

 

  ¡ Expense on electricity from Itaipu Binacional was 108.92% higher. This amount is indexed to the US dollar, and was R$ 1.734 billion in 2015, compared to R$ 830 million in 2014. This reflects both an increase in the tariff – which was US$ 26.05/kW-month in 2014, and rose to US$ 38.07/kW-month as from January 2015 – and also the increase in the dollar exchange rate against the Real from 2014 to 2015. The average exchange rate used for the dollar in invoices in 2015 was R$ 3.38, compared to R$ 2.35 in 2014 – an increase of 43.83%.

 

  ¡ Purchases of supply in the short-term market were 24.67% lower – at R$ 849 million in 2015, compared to R$ 1.127 billion in 2014, due to the lower cost of electricity in the wholesale market in 2015.

 

 

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Cemig GT:

The expense on electricity bought for resale in 2015 was R$ 2.601 billion, or 53.72% more than in 2014 (R$ 1.692 billion). The difference mainly reflects electricity bought for resale 48.10% higher in 2015 (at 15,273,685 MWh), than in 2014 (10,313,226 MWh) – reflecting lower generation capacity, with the termination of the concessions of some plants.

Operational provisions

Operational provisions in 2014 totaled R$ 1.401 billion, compared to R$ 581 million in 2014, an increase of 141.14%. This change mainly reflected a provision of R$ 1.079 billion made in 2015 for losses relating to the put options for the equity interests in Parati and a provision of R$ 119 million for SAAG – Santo Antonio Investment.

 

  a) Put options for Units in FIP Melbourne

Option contracts for sale of Units (‘put options’) were signed between Cemig GT and the pension plan entities that participate in the investment structure of SAAG, which those entities may exercise in the 84th month from June 2014. The exercise price of the put options will correspond to the amount invested by each pension plan company in the Investment Structure, updated pro rata temporis by the IPCA inflation index (Índice National de Preços ao Consumidor Amplo, published by the Brazilian Geography and Statistics Institute – IBGE), plus 7% per year, less such dividends and Interest on Equity as have been paid by SAAG to the pension plan entities.

 

 

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To decide the method to be used for measuring the fair value of the put options, since Madeira Energia is an unlisted company, the Company adopted the discounted cash flow method to measure the fair value of those options. The fair value of this option has been calculated on the basis of the estimated exercise price on the day of exercise of the option, less the fair value of the shares that are the subject of the put option, also estimated for the date of exercise, brought to present value at the interim reporting date, at the effective rate of 8% p.a. (discounting inflation effects). Based on the studies made, the amount of R$ 148 million is recorded in Cemig GT as the best estimate of the loss on these options.

 

  b) FIP Redentor

Cemig has granted to Fundo de Participações Redentor, which is a stockholder of Parati, an option to sell the totality of the shares which that fund holds in Parati, exercisable in May 2016. The price of the option is calculated using the sum of the value of the injections of capital by the fund into Parati, plus the running expenses of the fund, less any Interest on Equity, and dividends, distributed by Parati. The exercise price is subject to monetary updating by the CDI (Interbank CD) Rate plus financial remuneration at 0.9% per year.

For the purposes of determining the method to be used to measure the fair value of this option, the Company observed the daily trading volume of the shares of Light, and also the fact that such option, if exercised by the Fund, will require the sale to the Company, in a single transaction, of shares in Light in a quantity higher than the daily exchange trading averages. Thus, the Company has adopted the discounted cash flow method for measurement of the fair values of the option. The fair value of this option has been calculated on the basis of the estimated exercise price on the day of exercise of the option, less the fair value of the underlying shares, also estimated for the date of exercise, brought to present value at the interim reporting date, at the effective rate of 7.5% p.a. (discounting inflation effects).

Based on the studies carried out, a liability in the amount of R$ 1.245 billion has been recorded in the financial statements, for the best estimate of the loss on this option.

 

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Personnel

Personnel expenses were R$ 1.435 billion in 2015, compared to R$ 1.252 billion in 2014, an increase of 14.62%. This arises mainly from the following items:

 

  ¡    Salary increases, under the Collective Agreement, of 6.34%, coming into effect in November 2014 (full effect in 2015).

 

  ¡    Salary increases of 3% from March 2015, as a result of the collective negotiation decided by the courts on application from organizations representing the employees.

 

  ¡    Salary adjustments applied at the 10.33%, from November 2015, under the Collective Agreement.

Cemig: number of employees

 

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Gas bought for resale

The expense that Cemig reports for Gas bought for resale was R$ 1.051 billion in 2015, vs. R$ 254 million in 2014. Cemig started consolidating the results of Gasmig in October 2014, after Cemig acquired the 40% interest in Gasmig held by Petrobras.

 

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Raw materials and inputs for production of electricity

The expense on raw material and inputs for production of electricity in 2015 was R$ 84 million, compared to R$ 282 million in 2014 – a reduction of 70.21%. This reflects the temporary stoppage of the Igarapé thermal plant in 2015, due to the need for maintenance and installation of new equipment, and the federal government’s decision to stop generation by thermal plants that have the highest Variable Unit Cost (CVU).

Financial revenue (expenses)

 

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Cemig reports net financial expenses of R$ 735million in 2015, compared to net financial expenses of R$ 1.101 billion in 2014. The main factors are:

 

  ¡ Recognition, as from 2015, of the foreign exchange variation and monetary updating on the balances of the CVA and the Other financial components elements of tariff adjustments, representing and increase in financial revenue of R$ 68 million in 2015.

 

  ¡ A higher gain on updating of financial assets of the Remuneration Base of Assets (Base Regulatória de Remuneração, or BRR): R$ 606 million in 2015, vs. R$ 58 million in 2014. In November 2015 Aneel ordered an alteration of the indexor of the BRR, from the IGP-M inflation index to the IPCA inflation index. This change generated an updating adjustment backdated to January 2013. The effect of this change in financial revenue recorded in December 2015 was R$ 143 million. This difference also arises from the higher variation in the present indexor of the BRR – the IPCA index – which was 10.67% in 2015, compared to variation of 3.69% in the IGP-M index in 2014. Additionally, in June 2014 there was a reversal in the monetary updating of the BRR, totaling R$ 110 million, due to the final, definitive, homologation of the value of the BRR of Cemig D.

 

 

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  ¡ Recognition, starting in 2015, of monetary updating on deposits linked to legal actions, representing a gain in financial revenue of R$ 212 million in 2015.

 

  ¡ Higher expenses of exchange rate variations on loans and financings, and on Itaipu Binacional, which totaled R$ 172 million in 2015, vs. R$ 26 million in 2014. This mainly reflects the effects on Cemig D of the higher variation of the US dollar in 2015 (47.01% in full-year 2015, compared to 13.39% in 2014);

 

  ¡ Charges for loans and financings 48.44% higher, at R$ 1.382 billion in 2015, compared to R$ 931 million in 2014. This mainly reflects higher debt indexed to the CDI Rate; and also the higher CDI rate itself, in 2015 – representing 13.23% in the year, compared to 10.81% in 2014.

 

  ¡ Expense on monetary updating of loans and financings 42.80% higher, at R$ 387 million in 2015, compared to R$ 271 million in 2014. This is mainly the effect of higher variation in the IPCA inflation index in the period (10.67% in 2015, compared to 6.41% in 2014).

Ebitda

Cemig’s consolidated Ebitda in 2015 was 22.36% lower than in 2014. This mainly reflects operational costs and expenses (excluding depreciation and amortization) 28.08% higher in 2015 – an outstanding element of this expense being provisions totaling R$ 1.198 billion for losses on investments.

 

Ebitda – R$ ’000

   2015      2014      Change, %  

Profit (loss)

     2,491,878         3,136,903         -20.56   

+ Income tax and Social Contribution tax

     892,583         1,342,507         -33.51   

+ Net financial revenue (expenses)

     735,067         1,100,988         -33.24   

+ Depreciation and amortization

     834,830         800,918         4.23   
  

 

 

    

 

 

    

 

 

 

= Ebitda

     4,954,358         6,381,316         -22.36   
  

 

 

    

 

 

    

 

 

 

 

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DEBT

 

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The Company’s consolidated total debt on December 31, 2015 was R$ 15.167 billion, 12.27% more than at December 31, 2014.

 

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THE CEMIG GROUP’S PORTFOLIO OF GENERATION ASSETS

 

Cemig – generation portfolio, in MW*

 

Stage

   Hydro plants      Small Hydro Plants      Wind power      Solar      Thermal plants      Total  

In operation

     7,195         257         158         31         144         7,785   

Under construction / contracted

     1,699         29         658         45         –           2,431   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     8,894         286         816         76         144         10,216   

 

* The amounts refer only to direct or indirect equity interests held by Cemig on December 31, 2015.

4Q15 HIGHLIGHTS:

Santo Antônio Hydroelectric Plant

Rotor 35 of the Santo Antônio Hydroelectric plant started operation in December. The original physical offtake guarantee level of 2,218 MW average was reached in September 2014.

 

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FINANCIAL STATEMENTS SEPARATED BY COMPANY AND BY OPERATIONAL SEGMENT

 

FINANCIAL STATEMENTS SEPARATED BY COMPANY: DECEMBER 31, 2015

 

R$ ’000

   Holding
Company
    CEMIG
GT
    CEMIG D     GASMIG     CEMIG
TELECOM
   
CARVALHO
    ROSAL     Other
subsidiaries
    Eliminations
/ transfers
    Total,
subsidiaries
    TAESA     LIGHT     MADEIRA     ALIANÇA
GERAÇÃO
    Other
jointly-
controlled
subsidiaries
    Eliminations/
transfers
    Subsidiaries
and jointly-
controlled
subsidiaries
 

ASSETS

     16,342,013        15,369,754        16,191,234        2,054,460        317,346        152,827        129,487        264,987        (9,942,144     40,879,964        4,728,754        5,052,431        2,496,533        1,044,606        4,575,766        (7,871,106     50,906,948   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents

     256,484        283,703        318,834        33,746        5,015        1,254        1,082        24,514        —          924,632        130,575        196,844        29,996        31,394        126,019        —          1,439,460   

Accounts receivable

     —          1,008,021        2,785,980        88,774        16,172        5,774        3,617        5,568        (15,738     3,898,168        100,346        787,420        30,093        70,590        52,748        (14,715     4,924,650   

Securities – cash investments

     129,665        1,916,804        288,759        71,381        17,655        6,126        4,902        75,020        —          2,510,312        1,588        —          —          —          54,446        —          2,566,346   

Taxes

     995,131        142,328        1,227,384        59,741        17,255        136        449        685        —          2,443,109        309,497        410,182        67,323        2,568        13,523        —          3,246,202   

Other assets

     1,532,377        853,410        1,671,470        471,741        4,957        4,905        1,277        30,770        (983,817     3,587,090        154,536        842,237        151,648        27,017        383,640        (204,864     4,941,304   

Investments, PP&E, Intangible and Financial assets of concession

     13,428,356        11,165,488        9,898,807        1,329,077        256,292        134,632        118,160        128,430        (8,942,589     27,516,653        4,032,212        2,815,748        2,217,473        913,037        3,945,390        (7,651,527     33,788,986   

LIABILITIES AND STOCKHOLDERS’ EQUITY

     16,342,013        15,369,754        16,191,234        2,054,460        317,346        152,827        129,487        264,987        (9,942,144     40,879,964        4,728,754        5,052,431        2,496,533        1,044,606        4,575,766        (7,871,106     50,906,948   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Suppliers and supplies

     8,765        331,823        1,307,893        244,551        11,405        7,670        4,210        5,318        (20,482     1,901,153        22,102        472,122        144,636        16,528        171,518        (106,904     2,621,155   

Loans, financings and debentures

     —          7,739,072        7,020,042        368,398        39,023        —          —          2        —          15,166,537        1,860,409        2,468,539        1,451,202        —          1,215,707        —          22,162,394   

Interest on Equity, and dividends

     1,318,022        728,832        185,105        45,667        —          2,464        —          90        (961,927     1,318,253        5,012        43,966        —          —          21,779        (70,757     1,318,253   

Post-retirement liabilities

     303,191        721,470        2,228,710        —          —          —          —          —          —          3,253,371        —          10,436        —          —          —          —          3,263,807   

Taxes

     53,123        759,122        1,742,350        306,265        10,381        38,975        2,782        10,115        —          2,923,113        837,599        486,479        37,982        17,414        73,965        —          4,376,552   

Other liabilities

     1,663,777        394,928        1,011,285        167,028        87,531        792        674        9,580        (17,171     3,318,424        107,285        374,205        137,604        140,148        79,535        8,473        4,165,674   

STOCKHOLDERS’ EQUITY

     12,995,135        4,694,507        2,695,848        922,551        169,006        102,926        121,821        239,883        (8,942,564     12,999,113        1,896,347        1,196,684        725,109        870,516        3,013,262        (7,701,918     12,999,113   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Attributed to controlling stockholders

     12,995,135        4,694,507        2,695,848        918,573        169,006        102,926        121,821        239,883        (8,942,564     12,995,135        1,896,347        1,196,684        725,109        870,516        3,013,262        (7,701,918     12,995,135   

Interest of non-controlling stockholder

     —          —          —          3,978        —          —          —          —          —          3,978        —          —          —          —          —          —          3,978   

PROFIT AND LOSS ACCOUNT

                                

Net operational revenue

     292        7,377,198        12,386,671        1,394,725        122,569        58,197        51,800        169,056        (268,297     21,292,211        855,669        3,459,848        254,173        408,846        697,693        (231,129     26,737,311   

Operational costs and expenses

     (1,157,525     (4,133,629     (11,779,022     (1,235,867     (111,828     (41,877     (28,121     (59,477     229,356        (18,317,990     (121,383     (3,209,417     (216,366     (257,816     (511,512     1,118        (22,633,366
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Electricity purchased for resale

     —          (2,601,484     (6,992,822     —          —          (30,970     (13,551     (23,395     120,282        (9,541,940     —          (2,326,933     (50,617     (158,895     (53,562     148,842        (11,983,105

Charges for use of national grid

     —          (293,484     (813,313     —          —          —          (3,065     (1,179     112,285        (998,756     —          —          (53,100     (15,388     (271,035     59,542        (1,278,737

Gas bought for resale

           (1,050,925     —          —          —          —          —          (1,050,925     —          —          —          —          —          —          (1,050,925

Construction cost

     —          (146,030     (1,043,806     (62,000     —          —          —          —          —          (1,251,836     (17,060     (304,413     —          —          (3,817     —          (1,577,126

Personnel

     (31,895     (334,845     (999,655     (43,092     (15,431     (1,362     (1,221     (7,500     —          (1,435,001     (44,205     (110,654     (7,564     (10,064     (35,057     —          (1,642,545

Employee profit shares

     (4,816     (35,383     (94,815     —          (2,062     (139     (149     —          —          (137,364     (5,888     —          —          (1,467     (97     —          (144,816

Post-retirement liabilities

     (3,867     (30,939     (121,203     —          —          —          —          —          —          (156,009     —          —          —          —          —          —          (156,009

Materials

     (262     (99,312     (50,651     (1,830     (129     (368     (404     (314     25        (153,245     (20,764     (5,904     (1,631     (863     (2,961     —          (185,368

Outsourced services

     (10,991     (159,432     (697,484     (15,035     (25,491     (3,239     (5,112     (13,673     30,987        (899,470     (22,309     (155,676     (10,546     (22,133     (56,794     4,076        (1,162,852

Depreciation and amortization

     (1,601     (252,897     (443,766     (54,177     (48,968     (5,526     (4,391     (10,243     (13,261     (834,830     (1,296     (149,282     (48,076     (51,255     (75,112     (195,164     (1,355,015

Operational provisions

     (1,084,757     (106,443     (209,072     —          (1,181     —          (1     (1     —          (1,401,455     484        (92,148     (36,771     —          (1,124     —          (1,531,014

Other expenses, net

     (19,336     (73,380     (312,434     (8,808     (18,566     (273     (227     (3,173     (20,962     (457,159     (10,345     (64,407     (8,061     2,249        (11,953     (16,178     (565,854
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operational profit before Equity gains (losses) and Financial revenue (expenses)

     (1,157,233     3,243,569        607,649        158,858        10,741        16,320        23,679        109,579        (38,941     2,974,221        734,286        250,431        37,807        151,030        186,181        (230,011     4,103,945   

Equity gain (loss) in subsidiaries

     3,296,744        38,125          —          (27,769     —          —          1,343        (2,892,578     415,865        6,884        (39,698     (79,312     (455     (16,471     (348,258     (61,445

Gain on stockholding reorganization

       729,442          —          —          —          —          —          —          729,442        —          —          —          —          16,375        —          745,817   

Financial revenue

     65,180        204,741        1,148,437        23,082        4,054        2,966        4,545        16,272        —          1,469,277        333,487        446,993        94,983        13,711        26,705        —          2,385,156   

Financial expenses

     (36,024     (990,235     (1,129,969     (41,531     (5,794     (172     (85     (534     —          (2,204,344     (577,332     (612,626     (113,173     (21,877     (107,287     —          (3,636,639
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Profit before income and Social Contribution tax

     2,168,667        3,225,642        626,117        140,409        (18,768     19,114        28,139        126,660        (2,931,519     3,384,461        497,325        45,100        (59,695     142,409        105,503        (578,269     3,536,834   

Income tax and Social Contribution tax

     322,708        (887,979     (255,908     (23,339     (16,096     (5,392     (3,431     (23,146     —          (892,583     (104,542     (29,214     61,498        (13,788     (66,327     —          (1,044,956
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Profit (loss)

     2,491,375        2,337,663        370,209        117,070        (34,864     13,722        24,708        103,514        (2,931,519     2,491,878        392,783        15,886        1,803        128,621        39,176        (578,269     2,491,878   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Interest of the controlling stockholders

     2,491,375        2,337,663        370,209        116,567        (34,864     13,722        24,708        103,514        (2,931,519     2,491,375        392,783        15,886        1,803        128,621        39,176        (578,269     2,491,375   

Interest of non-controlling stockholder

     —          —          —          503        —          —          —          —          —          503        —          —          —          —          —          —          503   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
     2,491,375        2,337,663        370,209        117,070        (34,864     13,722        24,708        103,514        (2,931,519     2,491,878        392,783        15,886        1,803        128,621        39,176        (578,269     2,491,878   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

54


LOGO

 

 

INFORMATION BY MARKET SEGMENT AT DECEMBER 31, 2015

 

R$ ’000

   ELECTRICITY     TELECOMS     GAS     OTHERS     Eliminations     TOTAL  
   GENERATION     TRANSMISSION     DISTRIBUTION            

ASSETS OF THE SEGMENT

     13,404,398        4,880,161        17,738,194        317,346        2,529,757        2,997,172        (987,064     40,879,964   

ADDITIONS TO THE SEGMENT

     577,330        146,030        1,043,806        42,488        62,000        —          —          1,871,654   

INVESTMENTS IN JOINTLY-CONTROLLED SUBSIDIARIES

     5,773,838        2,423,084        1,546,960        —          —          23,840        —          9,767,722   

NET REVENUE

     7,046,513        518,671        12,386,671        122,569        1,394,725        91,358        (268,296     21,292,211   

COSTS

                

Electricity purchased for resale

     (2,669,371     —          (6,992,822     —          —          (29     120,282        (9,541,940

Charges for use of national grid

     (297,423     (305     (813,313     —          —          —          112,285        (998,756

Gas bought for resale

     —          —          —          —          (1,050,925     —          —          (1,050,925
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operational costs

     (2,966,794     (305     (7,806,135     —          (1,050,925     (29     232,567        (11,591,621

OPERATIONAL COSTS AND EXPENSES

                

Personnel

     (224,197     (113,230     (999,655     (15,431     (43,092     (39,396     —          (1,435,001

Employees’ and managers’ profit shares

     (23,552     (12,119     (94,815     (2,062     —          (4,816     —          (137,364

Post-retirement liabilities

     (21,274     (9,664     (121,204     —          —          (3,867     —          (156,009

Materials

     (95,381     (4,969     (50,651     (129     (1,830     (310     25        (153,245

Outsourced services

     (142,931     (36,844     (697,484     (25,491     (15,035     (12,672     30,987        (899,470

Depreciation and amortization

     (273,053     —          (443,766     (48,968     (54,177     (14,866     —          (834,830

Operational provisions (reversals)

     (108,728     2,283        (209,072     (1,181     —          (1,084,757     —          (1,401,455

Construction costs

     —          (146,030     (1,043,806     —          (62,000     —          —          (1,251,836

Other operational expenses, net

     (60,692     (15,983     (312,434     (18,566     (8,808     (45,393     4,717        (457,159
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total cost of operation

     (949,808     (336,556     (3,972,887     (111,828     (184,942     (1,206,077     35,729        (6,726,369

OPERATIONAL COSTS AND EXPENSES

     (3,916,602     (336,861     (11,779,022     (111,828     (1,235,867     (1,206,106     268,296        (18,317,990

OPERATIONAL PROFIT BEFORE EQUITY GAIN (LOSS) IN SUBSID. AND FINANCIAL REV (EXP.)

     3,129,911        181,810        607,649        10,741        158,858        (1,114,748     —          2,974,221   

Equity gain (loss) in subsidiaries

     39,468        410,052        (6,408     (27,769     —          522        —          415,865   

Gain on stockholding reorganization

     729,442          —          —          —          —          —          729,442   

Financial revenues

     199,200        21,892        1,148,437        4,054        23,082        72,612        —          1,469,277   

Financial expenses

     (984,018     (6,875     (1,129,969     (5,794     (41,531     (36,157     —          (2,204,344
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

PRETAX PROFIT

     3,114,003        606,879        619,709        (18,768     140,409        (1,077,771     —          3,384,461   

Income tax and Social Contribution tax

     (835,791     (71,104     (255,908     (16,096     (23,339     309,655        —          (892,583
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

PROFIT AND LOSS ACCOUNT

     2,278,212        535,775        363,801        (34,864     117,070        (768,116     —          2,491,878   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Interest of the controlling stockholders

     2,278,212        535,775        363,801        (34,864     116,567        (768,116     —          2,491,375   

Interest of non-controlling stockholder

     —          —          —          —          503        —          —          503   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
     2,278,212        535,775        363,801        (34,864     117,070        (768,116     —          2,491,878   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

55


LOGO

 

Generating plants

 

Plant

   Type    Company    Cemig’s
Interest
    Installed
Capacit
(MW)
     Assured
Energy
(average
MW)
     Installed
Capacit
(MW)*
     Assured
Energy
(average
MW)*
     Year
Concession or
Authorization
Expires

São Simão

   Hydroelectric    CEMIG GT      100.0     1,710.00         1,281.00         1,710.00         1,281.00       1/11/2015

Emborcação

   Hydroelectric    CEMIG GT      100.0     1,192.00         497.00         1,192.00         497.00       7/23/2025

Nova Ponte

   Hydroelectric    CEMIG GT      100.0     510.00         276.00         510.00         276.00       7/23/2025

Jaguara

   Hydroelectric    CEMIG GT      100.0     424.00         336.00         424.00         336.00       8/28/2013

Miranda

   Hydroelectric    CEMIG GT      100.0     408.00         202.00         408.00         202.00       12/23/2016

Irapé

   Hydroelectric    CEMIG GT      100.0     399.00         210.70         399.00         210.70       2/28/2035

Três Marias

   Hydroelectric    CEMIG GT      100.0     396.00         239.00         396.00         239.00       1/4/2046

Volta Grande

   Hydroelectric    CEMIG GT      100.0     380.00         229.00         380.00         229.00       2/23/2017

lgarapé

   Thermal    CEMIG GT      100.0     131.00         71.30         131.00         71.30       8/13/2024

Salto Grande

   Hydroelectric    CEMIG GT      100.0     102.00         75.00         102.00         75.00       1/4/2046

ltutinga

   Hydroelectric    CEMIG GT      100.0     52.00         28.00         52.00         28.00       1/4/2046

Camargos

   Hydroelectric    CEMIG GT      100.0     46.00         21.00         46.00         21.00       1/4/2046

Piau

   SHP    CEMIG GT      100.0     18.01         13.53         18.01         13.53       1/4/2046

Gafanhoto

   SHP    CEMIG GT      100.0     14.00         6.68         14.00         6.68       1/4/2046

Peti

   SHP    CEMIG GT      100.0     9.40         6.18         9.40         6.18       1/4/2046

Rio de Pedras

   SHP    CEMIG GT      100.0     9.28         2.15         9.28         2.15       9/19/2024

Poço Fundo

   SHP    CEMIG GT      100.0     9.16         5.79         9.16         5.79       8/19/2025

Tronqueiras

   SHP    CEMIG GT      100.0     8.50         3.39         8.50         3.39       1/4/2046

Joasal

   SHP    CEMIG GT      100.0     8.40         5.20         8.40         8.40       1/4/2046

Martins

   SHP    CEMIG GT      100.0     7.70         1.84         7.70         1.84       1/4/2046

Cajuru

   SHP    CEMIG GT      100.0     7.20         2.69         7.20         2.69       1/4/2046

Ervália

   SHP    CEMIG GT      100.0     6.97         3.03         6.97         3.03       1/4/2046

São Bernado

   SHP    CEMIG GT      100.0     6.82         3.42         6.82         3.42       8/19/2025

Neblina

   SHP    CEMIG GT      100.0     6.47         4.66         6.47         4.66       1/4/2046

Cel. Domiciano

   SHP    CEMIG GT      100.0     5.04         3.59         5.04         3.59       1/4/2046

Paraúna

   SHP    CEMIG GT      100.0     4.28         1.90         4.28         1.90       –    

Pandeiros

   SHP    CEMIG GT      100.0     4.20         0.47         4.20         0.47       9/22/2021

Paciência

   SHP    CEMIG GT      100.0     4.08         2.36         4.08         2.36       1/4/2046

Marmelos

   SHP    CEMIG GT      100.0     4.00         2.74         4.00         2.74       1/4/2046

Dona Rita

   SHP    CEMIG GT      100.0     2.40         1.03         2.40         1.03       1/4/2046

Salto de Moraes

   SHP    CEMIG GT      100.0     2.39         0.60         2.39         0.60       7/1/2020

Sumidouro

   SHP    CEMIG GT      100.0     2.12         0.53         2.12         0.53       –    

Anil

   SHP    CEMIG GT      100.0     2.08         1.10         2.08         1.10       –    

Xicão

   SHP    CEMIG GT      100.0     1.81         0.61         1.81         0.61       8/19/2025

Luiz Dias

   SHP    CEMIG GT      100.0     1.62         0.61         1.62         0.61       8/19/2025

Sinceridade

   SHP    CEMIG GT      100.0     1.42         0.35         1.42         0.35       1/4/2046

Central Mineirão

   Solar    CEMIG GT      100.0     1.42         –             1.42         –           –    

Poquim

   SHP    CEMIG GT      100.0     1.41         0.39         1.41         0.39       7/8/2015

Santa Marta

   SHP    CEMIG GT      100.0     1.00         0.58         1.00         0.58       7/8/2015

Pissarrão

   SHP    CEMIG GT      100.0     0.80         0.55         0.80         0.55       –    

Jacutinga

   SHP    CEMIG GT      100.0     0.72         0.57         0.72         0.57       –    

Santa Luzia

   SHP    CEMIG GT      100.0     0.70         0.23         0.70         0.23       2/25/2026

Lages*

   SHP    CEMIG GT      100.0     0.68         –             0.68         –           –    

Bom Jesus do Galho

   SHP    CEMIG GT      100.0     0.36         0.13         0.36         0.13       –    

Pai Joaquim

   SHP    CEMIG PCH      100.0     23.00         4.26         23.00         4.26       4/1/2032

Salto Voltão

   SHP    Horizontes Energia      100.0     8.20         6.63         8.20         6.63       10/4/2030

Salto do Paraopeba

   SHP    Horizontes Energia      100.0     2.46         –             2.46         –           10/4/2030

Salto do Passo Velho

   SHP    Horizontes Energia      100.0     1.80         1.06         1.80         1.06       10/4/2030

Machado Mineiro

   SHP    Horizontes Energia      100.0     1.72         1.03         1.72         1.03       7/8/2025

Rosal

   Hydroelectric    Rosal Energia      100.0     55.00         30.00         55.00         30.00       5/8/2032

Sá Carvalho

   Hydroelectric    Sá Carvalho      100.0     78.00         58.00         78.00         58.00       12/1/2024

Barreiro

   Thermal    Usina Termelétrica Barreiro      100.0     12.90         11.37         12.90         11.37       4/30/2023

Queimado

   Hydroelectric    CEMIG GT      82.5     105.00         58.00         86.63         47.85       1/2/2033

Praias de Parajuru

   Wind Farm    CEMIG GT      49.0     28.80         8.39         14.11         4.11       9/24/2032

Praia do Morgado

   Wind Farm    CEMIG GT      49.0     28.80         13.20         14.11         6.47       12/26/2031

Paracambi

   SHP    CEMIG GT      49.0     25.00         19.53         12.25         9.57       2/16/2031

Volta do Rio

   Wind Farm    CEMIG GT      49.0     42.00         18.41         20.58         9.02       12/26/2031

Santo Antônio

   Hydroelectric    Santo Antônio Energia      17.7     2,714.72         2,218.00         480.06         392.22       6/12/2046

Aimorés

   Hydroelectric    ALIANÇA      45.0     330.00         172.00         148.50         77.40       12/20/2035

Amador Aguiar I (Capim Bra

   Hydroelectric    ALIANÇA      39.3     240.00         155.00         94.36         60.94       8/29/2036

Amador Aguiar II (Capim Br

   Hydroelectric    ALIANÇA      39.3     210.00         131.00         82.56         51.50       8/29/2036

lgarapava

   Hydroelectric    ALIANÇA      23.7     210.00         136.00         49.75         32.22       12/30/2028

Funil

   Hydroelectric    ALIANÇA      45.0     180.00         89.00         81.00         40.05       12/20/2035

Candonga

   Hydroelectric    ALIANÇA      22.5     140.00         64.50         31.50         14.51       5/25/2035

Porto Estrela

   Hydroelectric    ALIANÇA      30.0     112.00         55.80         33.60         16.74       7/10/2032

Baguari

   Hydroelectric    BAGUARI ENERGIA      34.0     140.00         80.20         47.60         27.27       8/15/2041

Cachoeirão

   SHP    Hidrelétrica Cachoeirão      49.0     27.00         16.37         13.23         8.02       7/25/2030

Pipoca

   SHP    Hidrelétrica Pipoca      49.0     20.00         11.90         9.80         5.83       9/10/2031

Retiro Baixo

   Hydroelectric    Retiro Baixo Energética      25.0     82.00         38.50         20.46         9.61       8/25/2041
   Hydroelectric    Lightger      49.0     855.14         637.00         419.02         312.13      
   SHP    Lightger      25.0     25.00         19.53         6.25         4.88      
   SHP    Brasil PCH      31.2     291.00         188.85         90.67         20.31      
   Wind Farm    Renova Energia      35.2     680.50         325.91         239.21         114.56      
   SHP    Renova Energia      35.2     41.80         18.74         14.69         6.59      

 

*The installed capacit and the assured energy are already on cemig’s share

 

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Generation plants: Concession contract expiry periods

In November 2015 Cemig was the winner of Lot D in the first auction of concessions held by Aneel with a new structure: placement of concessions for hydroelectric plants under a regime of allocation of generating capacity and physical offtake guarantees.

 

  ¡ Number of generation plants: 18 (eighteen).

 

  ¡ Total installed generation capacity: 699.57 MW.

 

  ¡ Percentage of the guaranteed physical power offtake allocated to the Regulated Market: 100% (one hundred per cent), from January 1 to December 31, 2016; and 70% (seventy per cent), on and after January 1, 2017.

 

  ¡ Payment: R$ 2.216 billion in Concession Grant Fee (Bonificação pela Outorga), of which R$ 1.4 billion (65%) was paid on January 5, 2016 and R$ 770 million is to be paid within 180 days.

 

  ¡ Revenue received by Cemig GT for provision of the service: R$ 498.6 million/year.

Under that contract, as from this termination the assets of each plant that had not been fully depreciated are to be returned to the concession-granting power, and the company is to be indemillionified for them, on terms specified in the contract. The accounting balances corresponding to these assets, including the Deemed Cost, were transferred from Fixed assets to Financial assets on the date of termination of the concession in July 2015, and total R$ 546 million.

As specified in Aneel Normative Resolution 615/2014, the Valuation Opinions proposing the amounts of the indemillionity of the assets were delivered to Aneel on December 31, 2015. The company is in the process of preparation of these Opinions. Based on the discussions and valuations currently in progress, management believes that there is no indication that the amounts to be indemillionified by the Grantor Power will be lower than those recognized in its interim financial statements at December 31, 2015

 

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Power Plant

   Installed Capacit (MW)      Assured Energy
(average MW)
 

Três Marias

     396,0         239,0   

Salto Grande

     102,0         75,0   

Itutinga

     52,0         28,0   

Camargos

     46,0         21,0   

Piau

     18,0         13,5   

Gafanhoto

     14,0         6,7   

Peti

     9,4         6,2   

Tronqueiras

     8,5         3,4   

Joasal

     8,4         5,2   

Martins

     7,7         1,8   

Cajuru

     7,2         3,7   

Ervália

     7,0         3,0   

Neblina

     6,5         4,7   

Coronel Domiciano

     5,0         3,6   

Paciência

     4,1         2,4   

Marmelos

     4,0         2,7   

Dona Rita

     2,4         1,0   

Sinceridade

     1,4         0,4   
  

 

 

    

 

 

 

Total

     699,6         421,3   
  

 

 

    

 

 

 

Exchange of Shareholders’ Debentures owned by AGC Energia for shares in Cemig

On March 3, 2016, BNDES Participações (‘BNDESPar’) exchanged the totality of its holding of debentures issued under the Deed of the First Private Issue by AGC Energia of Non-convertible Permanent Asset-guaranteed Exchangeable Shareholders’ Debentures, in a Single Series, dated February 28, 2011 and amended January 17, 2012, for 54,342,992 common shares and 16,718,797 preferred shares in Cemig, owned by AGC Energia.

After the exchange, the equity interest held by BNDESPAR in Cemig — which on March 2, 2016 totaled 0% of the common shares and 1.13% of the preferred shares — increased to 12.9% and 3.13%, respectively. This characterizes a material transaction in the stock of Cemig in the terms of Article 12, §1º, of CVM Instruction 358/02. On March 2, 2016 BNDESPAR held an equity interest of 0.75% in the total capital of Cemig. This percentage has risen to 6.4%.

http://cemig.infoinvest.com.br/enu/13329/c-13329-enu.html?idioma=enu

 

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LOGO

After this exchange, the stockholders’ agreement between Cemig and AGC Energia remains unchanged.

http://cemig.infoinvest.com.br/ptb/8867/AcordodeAcionistas_por.pdf

 

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Generation: Annual Permitted Revenue (RAP)

 

Resolução Homologatoria ANEEL - nº 1.313*

 

Receita Anual Permitida - RAP

   RAP     %
Cemig
    Cemig
Consolidado
     Cemig GT  

Cemig GT

     234.340.198        100,0     234.340.198         234.340.198   

Cemig Itajuba

     36.345.194        100,0     36.345.194         36.345.194   

Centroeste

     15.420.427        51,0     7.864.418      

Transirapé

     26.287.112        24,5     6.440.342      

Transleste

     36.163.304        25,0     9.040.826      

Transudeste

     22.414.358        24,0     5.379.446      

Taesa

     43,36 %        

ETEO

     155.851.060        43,4     67.576.823      

ETAU

     38.433.513        22,8     8.762.945      

NOVATRANS

     460.994.392        43,4     199.886.586      

TSN

     449.086.299        43,4     194.723.252      

GTESA

     8.238.429        43,4     3.572.172      

PATESA

     18.930.852        43,4     8.208.394      

Munirah

     32.335.023        43,4     14.020.425      

Brasnorte

     22.865.011        16,8     3.833.291      

São Gotardo

     4.594.930        43,4     1.992.356      

Abengoa

         

NTE

     135.672.013        43,4     58.827.214      

STE

     72.452.041        43,4     31.415.113      

ATEI

     132.046.398        43,4     57.255.152      

ATEII

     204.000.305        43,4     88.454.275      

ATEIII

     102.659.854        43,4     44.513.183      

TBE

         

EATE

     381.289.719        21,7     82.634.235      

STC

     36.934.709        17,3     6.403.873      

Lumitrans

     23.591.101        17,3     4.090.187      

ENTE

     199.517.005        21,7     43.245.595      

ERTE

     44.785.760        21,7     9.706.942      

ETEP

     86.906.931        21,7     18.835.509      

ECTE

     84.200.833        8,3     6.970.657      

EBTE

     40.614.511        32,3     13.118.164      

ESDE

     11.542.416        21,7     2.501.610      

ETSE

     19.741.437        8,3     1.634.316      

Light

     7.924.732        32,6     2.581.878      

Transchile**

     21.396.000        49,0     10.484.040      
      

 

 

    

 

 

 

RAP TOTAL CEMIG

         1.284.658.610         270.685.392   
      

 

 

    

 

 

 

 

* Receitas anuais permititidas com vigência entre 1º de julho de 2015 e 30 de junho de 2016.
** A receita de transmissão da Transchile é dada em Dólar Norte Americano e é corrigida, anualmente, de acordo com o Decreto Nº 163 (http://www.cne.cl/images/stories/normativas/otros%20niveles/electricidad/DOC65_-_decreto163obrasurgentes.pdf).

 

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Appendices

Electricity losses – 4Q15

Control of electricity losses is one of Cemig D’s strategic objectives, and the Company has a structure dedicated to this – its Distribution Losses Measurement and Control Management Unit. Compliance with the objective is monitored monthly through the Total Distribution Losses Index (Índice de Perdas Totais da Distribuição, or IPTD): the result at December 31, 2015 was 11.52% – compared to a regulatory target of 10.48% by the end of 2017. In the decision on the regulatory target, taken during the 3rd Tariff Review Cycle, the regulator, Aneel, made significant changes in the method of calculation of technical losses, imposing extremely challenging limits for Cemig D. Total losses are composed of technical losses plus non-technical losses. The indicators for measurement are the PPTD (Distribution Technical Losses Percentage –percentual de perdas técnicas da distribuição), and the PPNT (Distribution Non-technical Losses Percentage – or percentual de perdas não técnicas da distribuição). The projected result for the PPTD on December 31, 2015 was 9.46%, for a regulatory target of 7.84 %, and the projected result for the PPNT was 3.06%, for a regulatory target of 2.64%.

Aneel measures non-technical losses with reference to the low-voltage market. Taking this into account, the result for the PPNT in relation to the low voltage market as invoiced at December 31, 2015 was 7.85%, for a regulatory target of 7.63% (2.88% above the limit set by the Regulator).

 

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LOGO

Cemig D Tables (R$ million)

 

CEMIG D Market

 
     (GWh)      GW  

Quarter

   Captive Consumers      TUSD ENERGY1      T.E.D2      TUSD PICK3  

3Q13

     6,486         5,017         11,503         29   

4Q13

     6,615         4,975         11,591         29   

1Q14

     6,744         4,464         11,208         29   

2Q14

     6,646         4,485         11,132         29   

3Q14

     6,686         4,298         10,984         27   

4Q14

     6,935         4,201         11,136         29   

1Q15

     6,780         4,034         10,814         30   

2Q15

     6,371         3,896         10,268         28   

3Q15

     6,471         3,803         10,274         29   

4Q15

     6,850         3,937         10,787         28   

 

1. Ref ers to the quantity of electricity f or calculation of the regulatory charges charged to f ree consumer clients (“Portion A”)
2. Total electricity distributed
3. Sum of the demand on w hich the TUSD is invoiced, according to demand contracted (“Portion B”).

 

Operating Revenues

   4Q15     4Q14     Change %     2015     2014     Change %  

Sales to end consumers

     4,498        3,050        47        16,515        11,443        44   

TUSD

     296        254        17        1,500        893        68   

Transactions in the CCEE

     —          —          —          50        —          —     

CVA and Other financial components in tariff adjustment

     397        1,107        (64     1,704        1,107        54   

Construction revenue

     353        315        12        1,044        861        21   

Others

     301        256        18        1,194        1,039        15   

Subtotal

     5,846        4,982        17        22,007        15,344        43   

Deductions

     (2,753     (1,168     136        (9,620     (4,103     134   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Revenues

     3,093        3,814        (19 )      12,387        11,241        10   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

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Operating Expenses

   4Q15     4Q14      Change %     2015      2014      Change %  

Personnel/Administrators/Councillors

     316        252         25        1,000         886         13   

Employee Participation

     (48     47         —          95         184         (48

Forluz – Post-Retirement Employee Benefits

     (4     38         —          121         153         (21

Materials

     13        43         (69     51         80         (37

Contracted Services

     199        256         (22     697         737         (5

Purchased Energy

     1,619        1,730         (6     6,993         5,748         22   

Depreciation and Amortization

     108        110         (1     444         428         4   

Operating Provisions

     31        191         (84     209         300         (30

Charges for Use of Basic Transmission Network

     183        159         16        813         573         42   

Cost from Operation

     353        315         12        1,044         861         21   

Other Expenses

     10        31         (68     312         299         4   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total

     2,781        3,173         (12 )      11,779         10,249         15   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

 

Statement of Results

   4Q15     4Q14     Change %     2015     2014     Change %  

Net Revenue

     3,093        3,814        (19     12,387        11,241        10   

Operating Expenses

     2,781        3,173        (12     11,779        10,249        15   

EBIT

     312        641        (51 )      608        992        (39 ) 

EBITDA

     421        751        (44 )      1,051        1,420        (26 ) 

Financial Result

     191        (70     —          18        (393     —     

Provision for Income Taxes, Social Cont & Deferred Income

     (199     (148     34        (256     (169     51   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Income

     305        424        (28 )      370        430        (14 ) 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cemig GT Tables (R$ million)

 

Operating Revenues

   4Q15     4Q14     Change %     2015     2014     Change %  

Sales to end consumers

     943        634        49        3,716        3,394        9   

Supply

     426        851        (50     2,199        2,225        (1

Transactions in the CCEE

     535        61        775        2,356        2,281        3   

Revenues from Trans. Network

     97        410        (76     339        629        (46

Construction revenue

     57        32        77        146        80        82   

Transmission indemnity revenue

     40        357        (89     101        420        (76

Others

     12        11        8        26        26        (2

Subtotal

     2,111        2,357        (10 )      8,883        9,055        (2 ) 

Deductions

     (386     (243     58        (1,506     (1,341     12   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Revenues

     1,725        2,114        (18 )      7,377        7,715        (4 ) 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

Operating Expenses

   4Q15     4Q14      Change %     2015      2014      Change %  

Personnel/Administrators/Councillors

     97        82         18        335         304         10   

Employee Participation

     (17     12         —          35         55         (36

Forluz – Post-Retirement Employee Benefits

     (7     12         —          31         48         (36

Materials

     3        5         (48     16         16         (5

Raw Materials and Supplies Energy Production

     2        79         (97     84         282         (70

Contracted Services

     63        63         1        159         172         (7

Depreciation and Amortization

     51        78         (35     253         297         (15

Operating Reserves

     50        53         (5     106         84         26   

Charges for Use of Basic Transmission Network

     76        73         4        293         273         7   

Purchased Energy

     621        415         50        2,601         1,692         54   

Construction Cost

     57        32         77        146         80         82   

Other Expenses

     19        209         (91     73         283         (74
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total

     1,015        1,113         (9 )      4,134         3,588         15   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

 

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Statement of Results

   4Q15     4Q14     Change%     2015     2014     Change%  

Net Revenue

     1,725        2,114        (18     7,377        7,715        (4

Operating Expenses

     (1,015     (1,113     (9     (4,134     (3,588     15   

EBIT

     710        1,001        (29 )      3,244        4,127        (21 ) 

Equity equivalence results

     48        (61     —          38        (388     —     

Fair value gain (loss) on stockholding transaction

     —          —          —          729        —          —     

EBITDA

     808        1,018        (21 )      4,264        4,035        6   

Financial Result

     (167     (224     (25     (785     (534     47   

Provision for Income Taxes, Social Cont & Deferred Income Tax

     (104     (170     (38     (888     (1,115     (20
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Income

     486        546        (11 )      2,338        2,089        12   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cemig Tables (R$ million)

 

Energy Sales (Consolidated)(GWh)

   4Q15      4Q14      Change%     2015      2014      Change%  

Residential

     2,517         2,556         (2     9,830         10,014         (2

Industrial

     5,685         6,701         (15     22,969         26,026         (12

Commercial

     1,691         1,678         1        6,434         6,395         1   

Rural

     907         854         6        3,380         3,390         —     

Others

     879         885         (1     3,422         3,462         (1

Subtotal

     11,679         12,674         (8 )      46,035         49,287         (7 ) 

Own Consumption

     10         10         —          38         38         —     

Supply

     1,880         4,007         (53     10,831         14,146         (23
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

TOTAL

     13,568         16,691         (19 )      56,904         63,470         (10 ) 
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

 

Energy Sales

   4Q15      4Q14      D%     2015      2014      D%  

Residential

     1,994         1,379         45        7,298         5,183         41   

Industrial

     1,500         1,027         46        5,781         4,793         21   

Commercial

     1,085         765         42        3,956         2,786         42   

Rural

     399         240         66        1,407         908         55   

Others

     446         298         50        1,621         1,107         46   

Electricity sold to final consumers

     5,424         3,709         46        20,062         14,778         36   

Unbilled Supply, Net

     65         103         (37     106         203         (48

Supply

     439         784         (44     2,358         2,251         5   
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

TOTAL

     5,928         4,596         29        22,526         17,232         31   
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

 

Operating Revenues

   4Q15     4Q14     D%     2015     2014     D%  

Sales to end consumers

     5,464        3,723        47        20,319        14,922        36   

TUSD

     288        225        28        1,465        855        71   

Supply

     464        872        (47     2,208        2,310        (4

Transactions in the CCEE

     539        70        665        2,425        2,348        3   

CVA and Other financial components in tariff adjustment

     397        1,107        (64     1,704        1,107        54   

Revenues from Trans. Network

     76        395        (81     261        557        (53

Construction revenue

     472        348        36        1,252        942        33   

Gas supply

     401        422        (5     1,667        422        295   

Transmission Indemnity Revenue

     40        357        (89     101        420        (76

Others

     367        325        13        1,441        1,282        12   

Subtotal

     8,508        7,844        8        32,842        25,165        31   

Deductions

     (3,242     (1,513     114        (11,549     (5,626     105   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Revenues

     5,267        6,331        (17 )      21,292        19,540        9   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

64


LOGO

 

 

 

Operating Expenses

   4Q15     4Q14      D%     2015      2014      D%  

Personnel/Administrators/Councillors

     448        354         27        1,435         1,252         15   

Employee Participation

     (70     56         —          137         249         (45

Forluz – Post-Retirement Employee Benefits

     (17     53         —          156         212         (26

Materials

     17        49         (66     70         99         (30

Raw materials and inputs for production of electricity

     2        79         (97     84         282         (70

Contracted Services

     282        339         (17     899         953         (6

Purchased Energy

     2,274        2,146         6        9,542         7,428         28   

Depreciation and Amortization

     206        213         (3     835         801         4   

Operating Provisions

     977        433         126        1,401         581         141   

Charges for Use of Basic Transmission Network

     231        208         11        999         744         34   

Gas bought for resale

     261        254         3        1,051         254         313   

Cost from Operation

     472        348         36        1,252         942         33   

Other Expenses

     49        269         (82     457         652         (30
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

TOTAL

     5,133        4,803         7        18,318         14,451         27   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

 

Financial Result Breakdown

   4Q15     4Q14     D%     2015     2014     D%  

Financial revenues

     629        171        269        1,469        593        148   

Revenue from cash investments

     91        62        47        251        298        (16

Arrears penalty payments on electricity bills

     72        41        76        230        166        38   

Exchange rate

     21        1        1,537        76        15        405   

Monetary updating

     233        36        547        248        53        367   

Monetary updating - CVA

     (72     —          —          68        —          —     

Taxes applied to Financial Revenue

     (66     (38     75        (84     (38     125   

Monetary updating of the Financial Asset of the Concession

     323        58        455        606        58        941   

Other

     28        10        190        75        39        90   

Financial expenses

     (559 )      (700 )      (20 )      (2,204 )      (1,694 )      30   

Costs of loans and financings

     (384     (300     28        (1,386     (931     49   

Exchange rate

     (8     (16     (48     (172     (26     553   

Monetary updating – loans and financings

     (108     (81     34        (387     (271     43   

Monetary updating – paid concessions

     (2     (9     —          (11     (17     (35

Charges and monetary updating on Post-employment obligations

     (31     (24     31        (129     (99     30   

Other

     (25     (270     (91     (120     (349     (66
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Financial revenue (expenses)

     71        (529 )      (113 )      (735 )      (1,101 )      (33 ) 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

Statement of Results

   4Q15     4Q14     D%     2015     2014     D%  

Net Revenue

     5,267        6,331        (17     21,292        19,540        9   

Operating Expenses

     5,133        4,803        7        18,318        14,451        27   

EBIT

     134        1,528        (91 )      2,974        5,089        (42 ) 

Equity gain in subsidiaries

     156        177        (12     416        210        98   

Gain on stockholding reorganization

                          729                 

Gain on change of accounting status in subsidiary

            281                      281          

Depreciation and Amortization

     206        213        (3     835        801        4   

EBITDA

     496        2,200        (77 )      4,954        6,382        (22 ) 

Financial Result

     71        (529            (735     (1,101     (33

Tax

     (55     (340     (84     (893     (1,343     (34
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Income

     306        1,117        (73 )      2,492        3,137        (21 ) 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

65


LOGO

 

 

Cash Flow Statement

   2015     2014     Change%  

Cash at beginning of period

     887        2,202        (60 ) 

Cash generated by operations

     3,007        3,734        (19 ) 

Net profit

     2,492        3,137        (21

Current and deferred income tax and Social Contribution tax

     893        1,343        (34

Depreciation and amortization

     835        801        4   

Gain on the Aliança stockholding reorganization

     (729     —          —     

Passthrough from CDE

     (1,704     (1,107     54   

Equity gain (loss) in subsidiaries

     (416     (210     98   

Provisions (reversals) for operational losses

     1,401        581        141   

Dividends received from equity holdings

     487        683        (29

Other adjustments

     (252     (1,493     (83

Financing activities

     247        (750 )      (133 ) 

Financings obtained and capital increase

     5,739        4,562        26   

Interest on Equity, and dividends

     (796     (3,918     (80

Payments of loans and financings

     (4,696     (1,394     237