Edgar Filing: ENERGY CO OF MINAS GERAIS

6-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN ISSUER

PURSUANT TO RULE 13A-16 OR 15D-16 OF

THE SECURITIES EXCHANGE ACT OF 1934

For the month of February, 2019

Commission File Number: 1-15224

Energy Company of Minas Gerais

(Translation of Registrant’s Name Into English)

Avenida Barbacena, 1219

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 ☒ 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 ☒

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 Items
1. Market Announcement Dated November 27, 2018: CEMIG and CEMIG D submit restated ITR for 2Q and 3Q 2018
2. Revision of Quarterly Information (ITR) for 2Q 2018 (Restatement)
3. Revision of Quarterly Information (ITR) for 3Q 2018 (Restatement)
4. Market Announcement Dated December 20, 2018: Cross-holding elimination between CEMIG GT and Energimp is completed
5. Summary of Minutes of the 750^th Meeting of the Board of Directors Dated December 28, 2018
6. Market Announcement Dated January 2, 2019: Renova’s Board of Directors does not approve AES’s offer for Power Generation Complex
7. Market Announcement Dated January 3, 2019: TAESA’s Extraordinary General Meeting approves acquisition of transmission companies
8. Market Announcement Dated January 15, 2019: TAESA places winning bid on Eletrobras Auction
9. Market Announcement Dated January 15, 2019: Eletrobras accepts CEMIG’s exercise of first refusal right on Auction 01/2018
10. Summary of Minutes of the 751^th Meeting of the Board of Directors Dated January 18, 2019
11. Market Announcement Dated January 29, 2019: Cemig named most sustainable electricity company in the Americas

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
By:		/s/ Maurício Fernandes Leonardo Júnior
		Name: Maurício Fernandes Leonardo Júnior Title: Chief Finance and Investor Relations Officer

Date: February 8, 2019

1. MARKET ANNOUNCEMENT DATED NOVEMBER 27, 2018: CEMIG AND CEMIG D SUBMIT RESTATED ITR FOR 2Q AND 3Q 2018

LOGO

COMPANHIA ENERGÉTICA DE MINAS GERAIS – CEMIG

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

MATERIAL ANNOUNCEMENT

Revision of Quarterly Information (ITR) for 2Q and 3Q 2018

Cemig (Companhia Energética de Minas Gerais, listed in São Paulo, New York and Madrid), in compliance with CVM Instruction 358 of January 3, 2002 as amended, hereby reports to the Brazilian Securities Commission (CVM), the São Paulo Stock Exchange (B3) and the market as follows:

On today’s date Cemig and its wholly-owned subsidiary Cemig Distribuição S.A. (Cemig D) have voluntarily re-presented their formal Quarterly Information (ITR) reports for the second and third quarters of 2018.

The re-presentation arose from differences identified in the manner of accounting of the amortization of certain concession financial assets and liabilities related to the CVA (Portion A Compensation) Account and Other Financial Components in the tariff-setting process, approved in Cemig D’s 4th Periodic Tariff Review.

The adjustments result in higher net profit for Cemig D than in the figures published to the market in the Quarterly Information (ITR) for the second and third quarters of 2018.

The Company has opted to re-present this Interim Accounting Information, so as to better reflect its equity situation and operational performance.

Cemig invites its investors to participate in a webcast and conference call on its third quarter 2018 results, on Wednesday, November 28, 2018 at 2 p.m., as specified in its Corporate Events Calendar.

Belo Horizonte, November 27, 2018.

Maurício Fernandes Leonardo Júnior

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.

2. REVISION OF QUARTERLY INFORMATION (ITR) FOR 2Q 2018 (RESTATEMENT)

LOGO

CONTENTS


STATEMENTS OF FINANCIAL POSITION		5
STATEMENTS OF INCOME		7
STATEMENTS OF COMPREHENSIVE INCOME		9
STATEMENTS OF CHANGES IN EQUITY—CONSOLIDATED		11
STATEMENTS OF CASH FLOWS		13
STATEMENTS OF ADDED VALUE		15
CONDENSED NOTES TO THE INTERIM FINANCIAL INFORMATION		16
1.	OPERATING CONTEXT	16
2.	BASIS OF PREPARATION	18
3.	PRINCIPLES OF CONSOLIDATION	28
4.	CONCESSIONS AND AUTHORIZATIONS	29
5.	CASH AND CASH EQUIVALENTS	30
6.	SECURITIES	30
7.	CUSTOMERS, TRADERS AND TRANSPORT OF ENERGY CONCESSION HOLDERS	31
8.	RECOVERABLE TAXES	32
9.	INCOME AND SOCIAL CONTRIBUTION TAXES	33
10.	RESTRICTED CASH	35
11.	ACCOUNTS RECEIVABLE FROM THE STATE OF MINAS GERAIS	35
12.	ESCROW DEPOSITS	36
13.	REIMBURSEMENT OF TARIFF SUBSIDIES	37
14.	CONCESSION FINANCIAL ASSETS AND LIABILITIES	37
15.	INVESTMENTS	44
16.	PROPERTY, PLANT AND EQUIPMENT	54
17.	INTANGIBLE ASSETS	56
18.	SUPPLIERS	58
19.	TAXES PAYABLE, INCOME TAX AND SOCIAL CONTRIBUTION TAX AND AMOUNTS TO BE REIMBURSED TO CUSTOMERS	58
20.	LOANS, FINANCINGS AND DEBENTURES	60
21.	REGULATORY CHARGES	65
22.	POST-RETIREMENT OBLIGATIONS	65
23.	PROVISIONS	66
24.	EQUITY AND REMUNERATION TO SHAREHOLDERS	75
25.	REVENUE	77
26.	OPERATING COSTS AND EXPENSES	82
27.	FINANCE INCOME AND EXPENSES	87
28.	RELATED PARTY TRANSACTIONS	88
29.	FINANCIAL INSTRUMENTS AND RISK MANAGEMENT	92
30.	ASSETS CLASSIFIED AS HELD FOR SALE AND DISCONTINUED OPERATIONS	105
31.	OPERATING SEGMENTS	106
32.	THE ANNUAL TARIFF ADJUSTMENT	109
33.	NON-CASH TRANSACTIONS	109
34.	SUBSEQUENT EVENTS	109
CONSOLIDATED RESULTS		112
OTHER INFORMATION THAT THE COMPANY BELIEVES TO BE MATERIAL		126
REPORT ON THE REVIEW OF INTERIM INFORMATION—ITR		133

LOGO

STATEMENTS OF FINANCIAL POSITION

AS OF JUNE 30, 2018 AND DECEMBER 31, 2017

ASSETS

(Thousands of Brazilian Reais)


	Note		Consolidated				Holding company
	Note		June 30, 2018 (Restated)		Dec. 31, 2017		June 30, 2018 (Restated)		Dec. 31, 2017
CURRENT
Cash and cash equivalents		5		940,937		1,030,257		63,045		38,672
Securities		6		288,035		1,058,384		37,107		63,960
Customers and traders and Concession holders – Transport of electricity		7		3,759,200		3,885,392		24,274		—
Concession financial assets		14		646,904		847,877		—		—
Recoverable taxes		8		150,367		173,790		3,402		43
Income and Social Contribution taxes recoverable		9a		389,828		339,574		25,889		19,722
Dividends receivable				9,648		76,893		409,398		603,049
Restricted cash		10		111,220		106,227		90,663		87,872
Inventories				33,730		38,134		10		10
Advances to suppliers				96,563		116,050		—		—
Accounts receivable from the State of Minas Gerais		11		—		235,018		—		235,018
Reimbursement of tariff subsidies		13		85,827		77,086		—		—
Low-income subscriber subsidy				25,140		26,660		—		—
Derivative financial instruments—Swaps		29		6,854		—		—		—
Other				487,047		525,961		9,250		10,473

				7,031,300		8,537,303		663,038		1,058,819
Assets classified as Held for sale		30		281,578		—		281,578		—

TOTAL, CURRENT				7,312,878		8,537,303		944,616		1,058,819

NON-CURRENT
Securities		6		63,847		29,753		9,525		1,737
Advance to suppliers		28		99,118		6,870		—		—
Customers and traders and Concession holders – Transport of electricity		7		76,594		255,328		—		—
Recoverable taxes		8		230,781		230,678		4,100		1,810
Income and Social Contribution taxes recoverable		9a		11,248		20,617		11,248		20,617
Deferred income and Social Contribution taxes		9b		1,936,021		1,871,228		791,360		756,739
Escrow deposits		12		2,380,376		2,335,632		280,876		277,791
Derivative financial instruments—Swaps		29		125,577		8,649		—		—
Accounts receivable from the State of Minas Gerais		11		248,100		—		248,100		—
Other				666,606		628,443		29,150		34,978
Concession financial assets		14		7,277,562		6,604,625		—		—
Investments – Equity method		15		7,703,552		7,792,225		14,101,036		13,692,183
Property, plant and equipment		16		2,420,914		2,762,310		2,506		1,810
Intangible assets		17		11,184,952		11,155,928		6,730		2,458

TOTAL, NON-CURRENT				34,425,248		33,702,286		15,484,631		14,790,123

TOTAL ASSETS				41,738,126		42,239,589		16,429,247		15,848,942

The Condensed Notes are an integral part of the interim financial information.

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STATEMENTS OF FINANCIAL POSITION

AS OF JUNE 30, 2018 AND DECEMBER 31, 2017

LIABILITIES

(Thousands of Brazilian Reais)


	Note		Consolidated						Holding company
	Note		June 30, 2018 (Restated)			Dec. 31, 2017			June 30, 2018 (Restated)			Dec. 31, 2017
Suppliers		18		2,152,676			2,342,757			8,812			4,667
Regulatory charges		21		434,349			512,673			5,836			—
Profit sharing				19,490			9,089			1,135			348
Taxes payable		19a		294,755			704,572			6,546			5,841
Income and Social Contribution tax		19b		67,648			115,296			—			—
Interest on Equity and Dividends payable		24		427,790			427,832			425,832			425,838
Loans, financings and debentures		20		2,740,647			2,370,551			18,653			—
Payroll and related charges				222,530			207,091			15,921			11,072
Post-retirement obligations		22		236,663			231,894			12,906			12,974
Concessions payable				2,326			2,987			—			—
Concession financial liabilities		14		16,751			414,800			—			—
Derivative financial instruments—put options		29		569,286			507,232			569,286			507,232
Advances from clients		7		150,728			232,762			—			—
Derivative financial instruments—Swaps		29		1,214			12,596			—			—
Other obligations				523,782			570,152			12,990			6,218

				7,860,635			8,662,284			1,077,917			974,190
Liabilities directly associated with assets classified as held for sale		30		5,905			—			5,905			—

TOTAL, CURRENT				7,866,540			8,662,284			1,083,822			974,190

NON-CURRENT
Regulatory charges		21		278,888			249,817			—			—
Loans, financings and debentures		20		11,863,407			12,027,146			43,484			—
Taxes payable		19a		28,267			28,199			—			—
Deferred income tax and Social Contribution tax		9b		717,902			734,689			—			—
Provisions		23		668,434			678,113			75,316			63,194
Post-retirement obligations		22		4,004,593			3,954,287			460,706			446,523
Concessions payable				16,151			18,240			—			—
Concession financial liabilities		14		6,295			—			—			—
Pasep and Cofins taxes to be reimbursed to customers		19a		1,105,572			1,087,230			—			—
Derivative financial instruments—put options		29		336,199			307,792			—			—
Derivative financial instruments—Swaps		29		—			28,515			—			—
Other obligations				117,575			133,141			41,713			39,049

TOTAL, NON-CURRENT				19,143,283			19,247,169			621,219			548,766

TOTAL LIABILITIES				27,009,823			27,909,453			1,705,041			1,522,956

EQUITY		24
Share capital				7,293,763			6,294,208			7,293,763			6,294,208
Capital reserves				2,249,721			1,924,503			2,249,721			1,924,503
Profit reserves				5,728,574			5,728,574			5,728,574			5,728,574
Equity valuation adjustments				(836,528	)		(836,522	)		(836,528	)		(836,522	)
Subscription of shares, to be capitalized				—			1,215,223			—			1,215,223
Retained earnings				288,676			—			288,676			—

EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT				14,724,206			14,325,986			14,724,206			14,325,986

NON-CONTROLLING INTERESTS				4,097			4,150			—			—

TOTAL EQUITY				14,728,303			14,330,136			14,724,206			14,325,986

TOTAL LIABILITIES AND EQUITY				41,738,126			42,239,589			16,429,247			15,848,942

The Condensed Notes are an integral part of the interim financial information.

LOGO

STATEMENTS OF INCOME

FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2018 AND 2017

(Thousands of Brazilian Reais except earnings per share)


			Consolidated						Holding company
	Note		Jan to Jun 2018 (Restated)			Jan to Jun 2017			Jan to Jun 2018 (Restated)			Jan to Jun 2017
GOING CONCERN OPERATIONS
NET REVENUE		25		10,541,969			10,017,959			146			178
OPERATING COSTS
COST OF ENERGY AND GAS		26
Energy purchased for resale				(5,082,598	)		(4,742,418	)		—			—
Charges for use of the national grid				(808,580	)		(404,261	)		—			—
Gas purchased for resale				(556,459	)		(485,163	)		—			—

				(6,447,637	)		(5,631,842	)		—			—
OTHER COSTS		26
Personnel and managers				(532,260	)		(688,847	)		—			—
Materials				(22,966	)		(17,599	)		—			—
Outsourced services				(413,971	)		(341,397	)		—			—
Depreciation and amortization				(374,523	)		(385,455	)		—			—
Operating provisions, net				(1,901	)		(172,079	)		—			—
Infrastructure construction cost				(383,643	)		(441,034	)		—			—
Other				(41,227	)		(21,314	)		—			—

				(1,770,491	)		(2,067,725	)		—			—
TOTAL COST				(8,218,128	)		(7,699,567	)		—			—
GROSS PROFIT				2,323,841			2,318,392			146			178
OPERATING EXPENSES		26
Selling expenses				(167,557	)		(141,472	)		—			—
General and administrative expenses				(313,117	)		(437,894	)		(34,438	)		(28,293	)
Operating provisions				(102,795	)		(56,954	)		(78,189	)		(15,311	)
Other operating revenues (expenses)				(256,325	)		(313,114	)		(29,545	)		(25,030	)

				(839,794	)		(949,434	)		(142,172	)		(68,634	)
Share of (loss) profit, net, of associates and joint ventures		15		(26,233	)		60,118			529,803			511,625

Income before finance income (expenses) and taxes				1,457,814			1,429,076			387,777			443,169
Finance income		27		491,169			348,901			18,792			33,018
Finance expenses		27		(1,345,801	)		(1,083,201	)		(3,085	)		(1,961	)

Income before income tax and social contribution tax				603,182			694,776			403,484			474,226
Current income and Social Contribution taxes		9c		(196,419	)		(292,722	)		—			(2,533	)
Deferred income and Social Contribution taxes		9c		25,574			78,794			38,569			8,885

Net income for the period from going concern operations				432,337			480,848			442,053			480,578

DISCONTINUED OPERATIONS
Net income for the period from discontinued operations		30		21,372			—			11,358			—

NET INCOME FOR THE PERIOD				453,709			480,848			453,411			480,578

Total of net income for the period attributed to:
Equity holders of the parent
Net income for the period from going concern operations				432,039			480,578			442,053			480,578
Net income for the period from discontinued operations				21,372			—			11,358			—

Net income for the period attributable to equity holders of the parent				453,411			480,578			453,411			480,578

Non-controlling interests
Net income for the period from going concern operations				298			270			—			—
Net income for the period from discontinued operations				—			—			—			—

Net income for the period attributable to non-controlling interests				298			270			—			—

				453,709			480,848			453,411			480,578

Basic and diluted earnings per preferred share – R$		24		0.31			0.38			0.31			0.38
Basic and diluted earnings per common share – R$		24		0.31			0.38			0.31			0.38

The Condensed Notes are an integral part of the interim financial information.

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STATEMENTS OF INCOME

FOR THE THREE-MONTH PERIODS ENDED JUNE 30, 2018 AND 2017

(In thousands of Brazilian Reais – except earnings per share)


			Consolidated						Holding company
	Note		Apr to Jun 2018 (Restated)			Apr to Jun 2017			Apr to Jun 2018 (Restated)			Apr to Jun 2017
GOING CONCEERN OPERATIONS
NET REVENUE		25		5,606,538			5,205,029			73			84
OPERATING COSTS
COST OF ENERGY AND GAS		26
Energy purchased for resale				(2,818,905	)		(2,649,330	)		—			—
Charges for use of the national grid				(416,038	)		(197,764	)		—			—
Gas purchased for resale				(293,225	)		(262,651	)		—			—

				(3,528,168	)		(3,109,745	)		—			—
OTHER COSTS		26
Personnel and managers				(291,458	)		(401,340	)		—			—
Materials				(15,811	)		(11,301	)		—			—
Outsourced services				(243,201	)		(194,961	)		—			—
Depreciation and amortization				(179,837	)		(199,011	)		—			—
Operating provisions, net				10,876			(93,147	)		—			—
Infrastructure construction cost				(202,974	)		(240,475	)		—			—
Other				(37,941	)		(14,159	)		—			—

				(960,346	)		(1,154,394	)		—			—
TOTAL COST				(4,488,514	)		(4,264,139	)		—			—
GROSS PROFIT				1,118,024			940,890			73			84
OPERATING EXPENSES		26
Selling expenses				(91,374	)		(75,277	)		—			—
General and administrative expenses				(96,468	)		(231,896	)		(24,842	)		(8,789	)
Operating provisions				(59,109	)		6,450			(38,878	)		1,157
Other operating expenses				(124,165	)		(140,437	)		(15,170	)		(11,630	)

				(371,116	)		(441,160	)		(78,890	)		(19,262	)
Share of (loss) profit, net, of associates and joint ventures		15		(83,107	)		30,477			(31,433	)		152,163

Income before finance income (expenses) and taxes				663,801			530,207			(47,384	)		132,985
Finance income		27		249,315			169,010			7,544			9,438
Finance expenses		27		(946,147	)		(510,564	)		(2,191	)		(834	)

Income before income tax and social contribution tax				(33,031	)		188,653			(42,031	)		141,589
Current income and Social Contribution taxes		9c		(11,393	)		(59,265	)		—			(2,533	)
Deferred income and Social Contribution taxes		9c		12,166			8,726			19,635			(1,074	)

Net income (loss) for the period from going concern operations				(32,258	)		138,114			(22,396	)		137,982
DISCONTINUED OPERATIONS
Net income (loss) for the period from discontinued operations		30		21,372			—			11,358			—

NET INCOME (LOSS) FOR THE PERIOD				(10,886	)		138,114			(11,038	)		137,982

Total of net income for the period attributed to:
Equity holders of the parent
Net income for the period from going concern operations				(32,410	)		138,114			(22,396	)		137,982
Net income for the period from discontinued operations				21,372			—			11,358			—

Net income for the period attributable to equity holders of the parent				(11,038	)		137,982			(11,038	)		137,982

Non-controlling interests
Net income for the period from going concern operations				152			132			—			—

Net income for the period attributable to non-controlling interests				152			132			—			—

				(10,886	)		138,114			(11,038	)		137,982

Basic and diluted earnings (loss) per preferred share – R$		24		(0.01	)		0.11			(0.01	)		0.11
Basic and diluted earnings (loss) per common share – R$		24		(0.01	)		0.11			(0.01	)		0.11

The Condensed Notes are an integral part of the interim financial information.

LOGO

STATEMENTS OF COMPREHENSIVE INCOME

FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2018 AND 2017

(Thousands of Brazilian Reais)


	Consolidated						Holding company
	Jan to Jun 2018 (Restated)			Jan to Jun 2017			Jan to Jun 2018 (Restated)			Jan to Jun 2017
NET INCOME FOR THE PERIOD		453,709			480,848			453,411			480,578
OTHER COMPREHENSIVE INCOME
Items not to be reclassified to statements of income in subsequent periods
Post retirement obligations – premeasurement of obligations of the defined benefit plans, net of taxes		(416	)		(680	)		—			—
Equity gain (loss) on other comprehensive income in subsidiary and jointly-controlled entity, net of taxes		—			(4,851	)		(416	)		(5,531	)

		(416	)		(5,531	)		(416	)		(5,531	)
Items to be reclassified to statements of income in subsequent periods
Equity gain on other comprehensive income, in subsidiary and jointly-controlled entity, relating to fair value of financial asset, net of taxes		—			(38,134	)		—			(38,134	)

COMPREHENSIVE INCOME FOR THE PERIOD		453,293			437,183			452,995			436,913

Total of comprehensive income for the period attributed to:
Equity holders of the parent		452,995			436,913			452,995			436,913
Non-controlling interests		298			270			—			—

		453,293			437,183			452,995			436,913

The Condensed Notes are an integral part of the interim financial information.

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STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE-MONTH PERIODS ENDED JUNE 30, 2018 AND 2017

(Thousands of Brazilian Reais)


	Consolidated						Holding company
	Apr to Jun 2018 (Restated)			Apr to Jun 2017			Apr to Jun 2018 (Restated)			Apr to Jun 2017
NET INCOME FOR THE PERIOD		(10,886	)		138,114			(11,038	)		137,982
OTHER COMPREHENSIVE INCOME
Items not to be reclassified to statements of income in subsequent periods
Equity gain (loss) on other comprehensive income in jointly-controlled entity, net of tax		—			(3,984	)		—			(3,984	)

		—			(3,984	)		—			(3,984	)
Items to be reclassified to statements of income in subsequent periods
Equity gain on other comprehensive income, in subsidiary and jointly-controlled entity, relating to fair value of financial assets, net of taxes		—			(73,825	)		—			(73,825	)

COMPREHENSIVE INCOME FOR THE PERIOD		(10,886	)		60,305			(11,038	)		60,173

Total of comprehensive income for the period attributed to:
Equity holders of the parent		(11,038	)		60,173			(11,038	)		60,173
Non-controlling interests		152			132			—			—

		(10,886	)		60,305			(11,038	)		60,173

The Condensed Notes are an integral part of the interim financial information.

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STATEMENTS OF CHANGES IN EQUITY - CONSOLIDATED

FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2018 AND 2017

(Thousands of Brazilian Reais)


	Share capital		Subscription of shares to be capitalized			Capital reserves		Profit reserves		Equity valuation adjustments			Retained earnings			Total equity holders of the parent			Non-controlling interests			Total Equity
BALANCES ON DEC. 31, 2017		6,294,208		1,215,223			1,924,503		5,728,574		(836,522	)		—			14,325,986			4,150			14,330,136

First adoption CPC 48		—		—			—		—		—			(181,846	)		(181,846	)		—			(181,846	)
Net income for the period		—		—			—		—		—			453,411			453,411			298			453,709
Other comprehensive income
Measurement of obligations of the defined benefit plans, net of taxes		—		—			—		—		(416	)		—			(416	)		—			(416	)

Total comprehensive income for the period		—		—			—		—		(416	)		453,411			452,995			298			453,293

Subscription of Shares to be Capitalized		—		109,550			—		—		—			—			109,550			—			109,550
Capital subscribed		999,555		(999,555	)		—		—		—			—			—			—			—
Constitution of reserves				(325,218	)		325,218		—		—			—			—			—			—
Other changes in Equity:
Interest on Equity		—		—			—		—		—			—			—			(351	)		(351	)
Realization of reserves
Realization of deemed cost of PP&E		—		—			—		—		410			17,111			17,521			—			17,521

BALANCES ON JUNE 30, 2018 (RESTATED)		7,293,763		—			2,249,721		5,728,574		(836,528	)		288,676			14,724,206			4,097			14,728,303

The Condensed Notes are an integral part of the interim financial information.

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STATEMENTS OF CHANGES IN EQUITY—CONSOLIDATED

FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2017 AND 2016

(Thousands of Brazilian Reais)


	Share capital		Capital reserves		Profit reserves		Equity valuation adjustments			Retained earnings			Total equity holders of the parent			Non-controlling interests			Total Equity
BALANCES ON DECEMBER 31, 2016		6,294,208		1,924,503		5,199,855		(488,285	)		—			12,930,281			4,090			12,934,371

Net income for the period		—		—		—		—			480,578			480,578			270			480,848
Other comprehensive income
Measurement of obligations of the defined benefit plans, net of taxes		—		—		—		(680	)		—			(680	)		—			(680	)
Equity gain (loss) on Other comprehensive income in subsidiary and jointly-controlled entity		—		—		—		(42,985	)		—			(42,985	)		—			(42,985	)

Total comprehensive income for the period		—		—		—		(43,665	)		480,578			436,913			270			437,183
Other changes in Equity:
Additional dividends proposed to non-controlling interests		—		—		—		—			—			—			(424	)		(424	)
Tax incentives reserve		—		—		2,192		—			(2,192	)		—			—			—
Realization of reserves
Realization of deemed cost of PP&E		—		—		—		(854	)		598			(256	)		—			(256	)

BALANCES ON JUNE 30, 2017		6,294,208		1,924,503		5,202,047		(532,804	)		478,984			13,366,938			3,936			13,370,874

The Condensed Notes are an integral part of the interim financial information.

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STATEMENTS OF CASH FLOWS

FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2018 AND 2017

(Thousands of Brazilian Reais)


			Consolidated						Holding company
	Note		Jan to Jun 2018 (Restated)			Jan to Jun 2017			Jan to Jun 2018 (Restated)			Jan to Jun 2017
CASH FLOW FROM OPERATIONS
Net income for the period from going concern operations				432,337			480,848			442,053			480,578
Adjustments to reconcile net income to net cash flows:
Income tax and Social Contribution taxes				170,845			213,928			(38,569	)		(6,352	)
Depreciation and amortization		26		411,300			410,800			216			236
Loss on write off of net residual value of unrecoverable Concession financial assets, PP&E and Intangible assets				14,818			14,651			155			23
Share of profit (loss) in associates and joint ventures		15		26,233			(60,118	)		(529,803	)		(511,625	)
Interest and monetary variation				279,744			624,221			(23,933	)		(952	)
Foreign exchange variation on loans		20		554,278			121			—			—
Amortization of loans’ transaction costs		20		15,548			29,827			153			—
Provisions for operating losses, net		26		267,319			369,918			78,189			15,311
Fair value adjustment of derivative financial instruments – Swap		29		(180,429	)		—			—			—
CVA (Portion A Compensation) Account and Other Financial Components in tariff adjustments		25		(1,150,672	)		331,896			—			—
Post-retirement obligations		22		202,556			228,012			21,990			21,242

				1,043,877			2,644,104			(49,549	)		(1,539	)

(Increase) / decrease in assets
Customers and traders and Concession holders				(14,147	)		(220,199	)		3,928			—
CVA (Portion A Compensation) Account and Other Financial Components, in tariff adjustments		14		280,453			145,502			—			—
Energy Development Account (CDE)				(8,741	)		(9,594	)		—			—
Recoverable taxes				(45,383	)		526			285			(141	)
Income and Social Contribution taxes credit				(72,663	)		55,284			3,652			79,081
Escrow deposits				(29,521	)		(13,655	)		9,472			6,448
Dividends received from investments				197,247			157,445			484,408			228,196
Concession financial assets				379,893			(36,162	)		—			—
Advances to suppliers				(63,707	)		5,656			—			—
Gas drawing rights				317			366,954			—			—
Others				92,759			30,053			(1,110	)		5,857

				716,507			481,810			500,635			319,441

Increase (decrease) in liabilities
Suppliers				(190,081	)		(23,660	)		(552	)		594
Taxes payable				(307,204	)		(225,049	)		831			(80,821	)
Income and Social Contribution taxes payable				—			128,753			—			(452	)
Payroll and related charges				15,439			9,357			2,869			1,309
Regulatory charges				(49,253	)		15,439			5,836			—
Advances from clients				(88,849	)		57,560			—			—
Post-retirement obligations		22		(147,481	)		(133,592	)		(7,875	)		(7,381	)
Others				(86,407	)		(193,594	)		59			(9,202	)

				(853,836	)		(364,786	)		1,168			(95,953	)

Cash generated by going concern operations				906,548			2,761,128			452,254			221,949

Interest paid on loans and financings		20		(671,651	)		(711,474	)		(438	)		—
Income and Social Contribution taxes paid				(292,981	)		(283,024	)		(38	)		(2,081	)
Settlement of derivative financial instruments (Swap)				12,981			—			—			—

NET CASH FROM (USED IN) GOING CONCERN OPERATIONS				(45,103	)		1,766,630			451,778			219,868

Net cash from (used in) Discontinued operations		30		36,602			—			18,944			—

NET CASH FROM (USED IN) OPERATING ACTIVITIES				(8,501	)		1,766,630			470,722			219,868

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	Note		Consolidated						Holding company
	Note		Jan to Jun 2018 (Restated)			Jan to Jun 2017			Jan to Jun 2018 (Restated)			Jan to Jun 2017
INVESTING ACTIVITIES
Marketable securities				738,632			(103,864	)		19,065			117,226
Restricted cash				(4,993	)		(20,810	)		(2,500	)		(20,719	)
Investments
Capital contributions in investees				(149,918	)		(186,231	)		(569,105	)		(100,111	)
Cash received through merger				—			—			428			—
Property, plant and equipment		16		(18,641	)		(31,364	)		—			—
Intangible assets		17		(368,570	)		(407,733	)		(15	)		—

NET CASH FROM (USED IN) INVESTING IN GOING CONCERN OPERATIONS				196,510			(750,002	)		(552,127	)		(3,604	)

Net cash used in investment activities—discontinued operations		30		(7,631	)		—			—			—

NET CASH FROM (USED IN) INVESTING ACTIVITIES				188,879			(750,002	)		(552,127	)		(3,604	)

FINANCING ACTIVITIES
New loans and debentures		20		395,860			60,109			—			—
Capital increase		24		109,550			—			109,550			—
Payment of loans, financings and debentures		20		(774,715	)		(855,057	)		(3,766	)		—
Interest on capital and dividends paid				(393	)		(270,709	)		(6	)		(270,709	)

NET CASH FROM (USED IN) FINANCING ACTIVITIES				(269,698	)		(1,065,657	)		105,778			(270,709	)

Increase (decrease) in cash and cash equivalents				(89,320	)		(49,029	)		24,373			(54,445	)

Cash and cash equivalents at the beginning of the period		5		1,030,257			995,132			38,672			69,352

Cash and cash equivalents at the end of the period		5		940,937			946,103			63,045			14,907

The Condensed Notes are an integral part of the interim financial information.

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STATEMENTS OF ADDED VALUE

FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2018 AND 2017

(Thousands of Brazilian Reais)


	Consolidated								Holding company
	Jan to Jun 2018 (Restated)				Jan to Jun 2017				Jan to Jun 2018 (Restated)					Jan to Jun 2017
REVENUES
Sales of electricity, gas and services (1)		15,214,311				14,282,104				161					196
Distribution construction revenue		378,911				434,009				—					—
Transmission construction revenue		4,732				7,025				—					—
Gain on financial updating of the Concession Grant Fee		156,980				150,476				—					—
Adjustment to expectation of cash flow from the indemnifiable Financial assets of the distribution concession		3,066				1,511				—					—
Transmission indemnity revenue		146,519				269,855				—					—
Generation indemnity revenue		34,463				—				—					—
Investments in PP&E		28,539				12,149				—					—
Other revenues		3,717				1,479				—					—
Provision for Doubtful Receivables (PECLD)		(162,063	)			(140,885	)			—					—

		15,809,175				15,017,723				161					196
INPUTS ACQUIRED FROM THIRD PARTIES
Energy purchased for resale		(5,575,380	)			(5,197,883	)			—					—
Charges for use of national grid		(900,253	)			(451,216	)			—					—
Outsourced services (1)		(663,913	)			(638,744	)			(9,377	)				(3,602	)
Gas purchased for resale		(556,458	)			(485,163	)			—					—
Materials (1)		(195,821	)			(217,936	)			3,707					(66	)
Other operational costs (1)		(229,758	)			(356,713	)			(82,895	)				(20,872	)

		(8,121,583	)			(7,347,655	)			(88,565	)				(24,540	)
GROSS VALUE ADDED		7,687,592				7,670,068				(88,404	)				(24,344	)
RETENTIONS
Depreciation and amortization (1)		(411,300	)			(410,800	)			(216	)				(236	)

NET ADDED VALUE PRODUCED BY GOING CONCERN OPERATIONS		7,276,292				7,259,268				(88,620	)				(24,580	)
NET ADDED VALUE PRODUCED BY DISCONTINUED OPERATIONS		21,372				—				11,358					—
ADDED VALUE RECEIVED BY TRANSFER
Share of (loss) profit, net, of associates and joint ventures		(26,233	)			60,118				529,803					511,625
Finance income (1)		491,169				348,901				18,792					33,018

ADDED VALUE TO BE DISTRIBUTED		7,762,600				7,668,287				471,333					520,063

DISTRIBUTION OF ADDED VALUE
				%				%				%					%

Employees		816,235		10.52		1,072,781		13.99		43,703		9.27			39,991		7.69
Direct remuneration		521,283		6.72		600,072		7.83		19,122		4.06			14,217		2.73
Post-employment obligations and Other benefits		236,605		3.05		270,294		3.52		21,998		4.67			20,729		3.99
FGTS		32,681		0.42		36,993		0.48		762		0.16			682		0.13
Programmed Voluntary Retirement Plan		25,666		0.33		165,422		2.16		1,821		0.38			4,363		0.84
Taxes		5,079,531		65.44		4,945,812		64.50		(35,652	)	(7.56	)		(4,071	)	(0.78	)
Federal		2,551,327		32.87		2,285,738		29.81		(36,137	)	(7.67	)		(4,613	)	(0,89	)
State		2,520,154		32.47		2,652,340		34.59		267		0.06			392		0.08
Municipal		8,050		0.10		7,734		0.10		218		0.05			150		0.03
Remuneration of external capital		1,413,125		18.20		1,168,846		15.24		9,871		2.09			3,565		0.69
Interest		1,360,908		17.53		1,122,148		14.63		3,085		0.65			1,961		0.38
Rentals		52,217		0.67		46,698		0.61		6,786		1.44			1,604		0.31
Remuneration of own capital		453,709		5.84		480,848		6.27		453,411		96.20			480,578		92.40
Retained earnings		453,411		5.84		480,578		6.27		453,411		96.20			480,578		92.40
Non-controlling interest in Retained earnings		298		—		270		—		—		—			—		—

		7,762,600		100.00		7,668,287		100.00		471,333		100.00			520,063		100.00

(1)	Includes the effect of net incomes arising from the discontinued operations.

The Condensed Notes are an integral part of the interim financial information.

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CONDENSED NOTES TO THE INTERIM FINANCIAL INFORMATION

FOR THE SIX-MONTH PERIOD ENDED AS OF JUNE 30, 2018

(In Thousands of Brazilian Reais – except where otherwise indicated)

1.	OPERATING CONTEXT

a)	The Company

Companhia Energética de Minas Gerais (´Parent company’ or ‘Holding Company’) is a listed corporation, registered in the Brazilian Registry of Corporate Taxpayers (CNPJ) under number 17.155.730/0001-64, with shares traded on the São Paulo Stock Exchange (‘B3’) at Corporate Governance Level 1; through ADRs on the New York Stock Exchange (‘NYSE’); and on the stock exchange of Madrid (‘Latibex’). It is domiciled in Brazil, Belo Horizonte, Minas Gerais. It operates exclusively as a holding company, with subsidiaries and investments in associates or jointly controlled entities (collectively referred to as “Cemig” or the “the Company”), which are engaged in the construction and operation of infrastructure used in the generation, transformation, transmission, distribution and sale of electricity, and also activities in the various fields of the energy sector, for the purpose of commercial operation.

As of June 30, 2018 Company´s current liabilities exceeded its current assets by R$ 553,662 and R$ 139,206, respectively, in the consolidated and the Holding Company. In the half-year then ended, the Company generated negative consolidated operating cash flow in the amount of R$ 8,501 (positive in the amount of R$ 1,766,630 in the same period of 2017), arising mainly from higher than budgeted costs on purchase of energy – which will be the subject of reimbursement in the next tariff adjustment. The Holding Company generated a positive operating cash flow of R$ 470,722 (R$ 219,868 in the same period of 2017). Additionally, as of June 30, 2018, Cemig’s consolidated indebtedness from loans, financings and debentures on current and non-current liabilities comprised R$ 2,740,647 and R$ 11,863,407, respectively. The Company’s Management monitors its cash flow and, in that way, studies actions in order to the adjustment of its current financial position to the levels considered adequate to meet its necessities.

As part of the Company’s indebtness management, in December 2017 and July 2018 the subsidiary Cemig GT issued Eurobonds for an amount of US$ 1 billion (R$ 3.2 billion) and US$ 500 million (R$ 1.9 billion), respectively, which mature in 2024. In addition, at the end of 2017, Cemig entered into negotiations with its main creditors aiming at a Bank Debt Refinancing representing up to R$ 3.4 billion of which R$ 2.7 billion of the subsidiary Cemig D and R$ 741 million of the subsidiary Cemig GT. These initiatives have balanced the Company’s cash flows, extended average debt maturities, and improved its credit quality.

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Based on the facts and circumstances that existed on this reporting date, Management has evaluated the Company’s ability to continue on a going concern basis and is convinced that its operations have the capacity to generate funds to continue its business in the future. In addition, Management is not aware of any material uncertainties that could generate significant doubts about its ability to continue operating. Therefore, these interim financial information have been prepared on a going concern basis.

Merger of Cemig Telecomunicações S.A. (‘Cemig Telecom’) and sale of telecom assets

On March 31, 2018, Cemig completed the merger of its wholly-owned subsidiary Cemig Telecom at book value. As a result, Cemig Telecom has been wound up and Cemig has taken over all the subsidiary’s assets, rights and obligations. Considering this is a wholly-owned subsidiary merger there has not been capital increase nor new shares issuance. The Cemig Telecom shares have been extinguished on the merger date.

The balance sheet of Cemig Telecom used for the merger, at March 31, 2018, is as follows:


	Mar. 31, 2018			Mar. 31, 2018
Assets			Liabilities
Current		24,986	Current		33,816
Non-current			Non-current		55,407
Non-current assets		15,313
Investments		17,116
Net PP&E		271,766
Intangible assets		11,716

		315,911	Equity		251,674

Total assets		340,897	Total liabilities and Equity		340,897

The Company’s Management is in the process of sale of the assets merged from Cemig Telecom. See details in Note 30.

Changes in the Company’s by-laws – improvement of corporate governance

On June 11, 2018 a General Meeting of Shareholders approved changes to the Company’s by-laws, to formalize best corporate governance practices and meet the requirements of Law 13303/2016 (the ‘State Companies Law’). The improvements now formally incorporated in the by-laws include:

◾	Reduction of the number of members of the Board of Directors from 15 to 9, in line with the IBGC Best Corporate Governance Practices Code, and the Corporate Sustainability Evaluation Manual of the Dow Jones Sustainability Index.

◾	Creation of the Audit Committee (Comitê de Auditoria). The Fiscal Council (Conselho Fiscal) remains in existence.

The changes in the by-laws have had no effect on the Company’s dividend policy.

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2.	BASIS OF PREPARATION

2.1

Statement of compliance

The interim financial information has been prepared in accordance with IAS 34 – Interim Financial Reporting, issued by the International Accounting Standards Board (IASB), Technical Pronouncement 21 (R1) – ‘CPC 21’, which applies to interim financial information, and the rules issued by the Brazilian Securities Commission (Comissão de Valores Mobiliários, or CVM), applicable to preparation of Interim Financial Information (Informações Trimestrais, or ITR).

This interim financial information have been prepared according to principles, practices and criteria consistent with those adopted in the preparation of the December 31, 2017 financial statements, except for the adoption of new pronouncements that came into force as from January 1, 2018, which impacts are presented in Note 2.2 to this interim financial information.

Thus, this consolidated interim financial information should be read in conjunction with the said financial statements, approved by the Company’s Fiscal Council on March 28, 2018.

Material information in the interim financial information is being disclosed, which is used by Management in its administration of the Company.

On August 13, 2018, the Company’s Executive Board authorized the issuance of this interim financial information for the six-month period ended on June 30, 2018. On November 27, 2018 the Company’s Executive Board authorized its restatement to reflect the effect of adjustments described in note 2.3.

2.2

Adoption of new pronouncements effective as from January 1, 2018

IFRS 15/CPC 47 – Revenue from contracts with customers

IFRS 15/CPC 47 – Revenue from contracts with customers establishes a five-step model to account for revenues arising from contracts with customers. Under IFRS 15, revenue is recognized at an amount which reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer. This new pronouncement will supersede all current requirements for recognition of revenue under the CPCs/IFRS. Additionally, IFRS 15/CPC 47 establishes requirements for more detailed presentation and disclosure than the standards currently in effect.

The Company and its subsidiaries adopted the new standard based on the prospective method, with the impacts accounted for as of January 1, 2018.

The Company and its subsidiaries performed an assessment of the five steps for recognition and measurement of revenue, as required by IFRS 15/CPC 47:

Identify the contracts signed with its customers;

Identify the performance obligations in each type of contract;

Determine the price of each type of transaction;

Allocate the price to the performance obligations contained in the contract; and

Recognize the revenue when (or to the extent that) the entity satisfies each performance obligation of the contract.

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The impact of the adoption of this pronouncement occurred in the recognition of reimbursements to customers resulting from the penalties for breach of quality indicators in the electricity supply, mainly the indicators DIC, FIC, DMIC and DICRI, as a reduction of revenues from use of the distribution network (TUSD). Until December 31, 2017, these reimbursements were recognized as operating expense.

This table shows the impact of adoption of IFRS 15 (CPC 47) on the statement of income for the periods of six and three months ended June 30, 2018:


	Jan to Jun 2018 with adoption of IFRS 15/CPC 47			Adjustment (1) IFRS 15/CPC 47			Jan to Jun 2018 without adoption of IFRS 15/CPC 47
GOING CONCERN OPERATIONS
NET REVENUE		10,541,969			25,681			10,567,650
OPERATING COSTS		(8,218,128	)		—			(8,218,128	)
OPERATING EXPENSES		(839,794	)		(25,681	)		(865,475	)
Share of (loss) profit, net, of associates and joint ventures		(26,233	)		—			(26,233	)
Net Finance income (expenses)		(854,632	)		—			(854,632	)
Income and Social Contribution taxes		(170,845	)		—			(170,845	)

Net income from going concern operations in the period		432,337			—			432,337


	Apr to Jun 2018 with adoption of IFRS 15/CPC 47			Adjustment (1) IFRS 15/CPC 47			Apr to Jun 2018 without adoption of IFRS 15/CPC 47
GOING CONCERN OPERATIONS
NET REVENUE		5,606,538			9,235			5,615,773
OPERATING COSTS		(4,488,514	)		—			(4,488,514	)
OPERATING EXPENSES		(371,116	)		(9,235	)		(380,351	)
Share of (loss) profit, net, of associates and joint ventures		(83,107	)		—			(83,107	)
Net Finance income (expenses)		(696,832	)		—			(696,832	)
Income and Social Contribution taxes		773			—			773

Net income from going concern operations in the period		(32,258	)		—			(32,258	)

(1)	Refers to penalties for violation of energy supply quality indicators, mainly the indicators DIC, FIC, DMIC and DICRI, reclassified from Other operational revenue (expenses).

IFRS 9/CPC 48 – Financial instruments

IFRS 9/CPC 48 establishes that all financial activities recognized that are within the scope of IAS 39 (equivalent to CPC 38) should subsequently be measured at amortized cost or fair value, reflecting the business model in which the assets are administered, and their cash flow characteristics, not affecting accounting recognition of the Company’s financial assets and liabilities. IFRS 9/CPC 48 contains three categories of accounting for financial instruments: Amortized cost; Fair value through other comprehensive income; and fair value through profit or loss. The standard has eliminated the existing categories under IAS 39/CPC 38 and, thus, the Company and its subsidiaries have reclassified those categories to comply with the new standard, as follows:

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Consolidated	Classification
Consolidated	IFRS 39/CPC 38		IFRS 9/CPC 48
Financial assets:
Cash equivalents – Investments		Loans and receivables		Amortized cost
Securities – Investments (1)		Held to maturity		Amortized cost
Securities – Investments (1)		Available for sale		Fair value through profit or loss
Customers and Traders; Concession holders (Transport of energy)		Loans and receivables		Amortized cost
Restricted cash		Loans and receivables		Amortized cost
Advances to suppliers		Loans and receivables		Amortized cost
Accounts receivable from the State of Minas Gerais		Loans and receivables		Amortized cost
Receivables from related parties		Loans and receivables		Amortized cost
Concession financial assets – CVA (Portion ‘A’ Costs Variation Compensation) Account, and Other financial components, in tariff adjustments		Loans and receivables		Amortized cost
Reimbursement of tariff subsidies		Loans and receivables		Amortized cost
Low-income subsidy		Loans and receivables		Amortized cost
Escrow deposits		Loans and receivables		Amortized cost
Derivative financial instruments (swap transactions)		Fair value through profit or loss		Fair value through profit or loss
Concession financial assets – Transmission infrastructure		Loans and receivables		Amortized cost
Concession financial assets – Distribution infrastructure		Available for sale		Fair value through profit or loss
Indemnities receivable – Transmission		Loans and receivables (2)		Fair value through profit or loss
Indemnities receivable – Generation		Loans and receivables (2)		Fair value through profit or loss
Concession grant fee – Generation concessions		Loans and receivables		Amortized cost
Other		Loans and receivables		Amortized cost
Financial liabilities
Loans, financings and debentures		Amortized cost		Amortized cost
Debt agreed with pension fund (Forluz)		Amortized cost		Amortized cost
Concession financial liabilities – CVA (Portion ‘A’ Costs Variation Compensation) Account, and Other financial components, in tariff adjustments		Amortized cost		Amortized cost
Concessions payable		Amortized cost		Amortized cost
The Minas Gerais State Tax Debits Regularization Plan (PRCT)		Amortized cost		Amortized cost
Suppliers		Amortized cost		Amortized cost
Advances from clients		Amortized cost		Amortized cost
Derivative financial instruments (swap transactions)		Fair value through profit or loss		Fair value through profit or loss
Derivative financial instruments – Put options		Fair value through profit or loss		Fair value through profit or loss

(1)	The Company has ‘securities’ with various classifications under IFRS 9 / CPC 48.

(2)	Recognized at their nominal realization values, which are similar to fair value.

Impairment

The material impact resulting from the adoption of the standard as from January 1, 2018 is related to the impairment of trade accounts receivable. The new pronouncement also establishes that in relation to the impairment losses of financial assets, the expectation of loss model in the credit is no longer losses incurred, but a prospective model of expected credit losses, based on probabilities. Based on the new pronouncement, provisions for expected losses were measured based on the losses expected in the next 12 months, as a function of the potential default events, or losses of credit expected for the whole life of a financial instrument, if the credit risk has significantly increased since its initial recognition.

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The Company and its subsidiaries have adopted, in its analyses, a simplified approach, considering that the balance of its accounts receivable from clients do not have a significant financial component, and have calculated the expectation of loss considering the historic average of non-collection over the total billed in each month (based on the last 12 months of billing), segregated by type of customers and projected for the next 12 months, taking into account the aging of receivables, including those not yet due. The estimated loss for the past due balances of customers who renegotiated their debt has been calculated based on the maturity date of the original invoice, with the new terms negotiated not being taken into account. For the balances that are more than 12 months past due, expectation of total loss was assumed.

The estimated effects at January 1, 2018 arising from adoption of IFRS 9/CPC 48, resulted in an increase in the provision for doubtful accounts and a corresponding effect in Equity, as follows:


	Jan. 1, 2018
Customers and Traders; Transport of energy (a)		150,114
Reflex of the adjustment due to the jointly controlled—Light		82,770
Deferred income and Social Contribution taxes (a)		(51,038	)

		181,846

(a)	Refers to estimated losses on doubtful accounts receivable from customers of Cemig D.

2.3

Restatement of the interim financial information

As mentioned in Note 32, on May 28, 2018 Aneel confirmed the result of the Fourth Tariff Review of Cemig Distribuição S.A. (‘Cemig D’), a wholly-owned subsidiary of the Company. Part of this result comprised direct pass-throughs to the tariff of amounts arising from variations in non-manageable costs (‘Portion A’), arising primarily from: purchase ofpower supply, transmission charges, and other financial components of the tariff, for which Cemig D recorded the accounting effects as from May 2018.

After publication of the interim financial information for the quarter and six months ended June 30, 2018, differences were identified in the accounting of the amortization of certain concession financial assets and liabilities related to CVA Account (Portion A Compensation) and Other Financial Components approved in the tariff review referred to above. The effect of these differences on the individual interim financial information of the Company is limited to the share of profit, recorded by the equity method, related to the equity ownership that the company holds in Cemig D. As a result, Cemig and its subsidiary have opted to re-present the individual and consolidated interim financial information, so as to better reflect their financial position and operational performance. These changes caused no effects on the individual and consolidated financial statements for the year ended December 31, 2017, which are presented for the purposes of comparison, nor in the individual and consolidated financial statements for the quarter ended March 31, 2018.

Based on the orientation given in CPC 23 / IAS 8 – Accounting Policies, Changes in Accounting Estimates and Errors, the interim financial information is being restated with the following adjustments:

(a)

Correction of the divergences in the accounting of the amortization of certain Concession financial assets and liabilities related to the CVA (Variation in ‘Portion A’ Items) account and Other Financial Components approved in the Tariff Review of May 28, 2018 – in the net amount of R$ 81,623 for the six and three-month periods ended June 30, 2018.

(b)	Effects of the adjustment indicated in item (a) on calculations of current and deferred income tax and Social Contribution tax, in the amount of R$ 16,375 and R$ 7,480, respectively, for the six and three-month periods ended June 30, 2018.

(c)	Effects of the adjustment indicated in item (a) on calculations of Pasep and Cofins taxes, in the amounts of R$ 7,550 for the six and three-month periods ended June 30, 2018.

(d)	Effects of the adjustment indicated in item (a) on calculations of the regulatory charges, in the amounts of R$ 734 for the six and three-month periods ended June 30, 2018.

(e)	Net aggregate effects, of the adjustments indicated in items (a), (b), (c), and (d), in the amount of R$ 49,484, in calculation of the gain by the equity method arising from the Company’s investment in Cemig D, for the six and three-month periods ended June 30, 2018.

(f)	Net effect of all the adjustments, in the amount of R$ 49,484, in the profit of the six and three-month periods ended June 30, 2018.

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STATEMENTS OF FINANCIAL POSITION


Assets	Consolidated							Holding company
Assets	Jun. 30, 2018		Adjustments			Jun. 30, 2018 (Restated)		Jun. 30, 2018		Adjustments		Jun. 30, 2018 (Restated)
CURRENT
Concession financial assets (a)		565,281		81,623			646,904		—		—		—
Income and Social Contribution taxes recoverable (b) and (e)		406,203		(16,375	)		389,828		25,889		—		25,889
Other		5,994,568		—			5,994,568		637,149		—		637,149

		6,966,052		65,248			7,031,300		663,038		—		663,038
Assets classified as Held for sale		281,578		—			281,578		281,578		—		281,578

TOTAL, CURRENT		7,247,630		65,248			7,312,878		944,616		—		944,616

NON-CURRENT
Deferred income and Social Contribution taxes (b)		1,943,501		(7,480	)		1,936,021		791,360		—		791,360
Investments – Equity method (g)		7,703,552		—			7,703,552		14,051,552		49,484		14,101,036
Other		24,785,675		—			24,785,675		592,235		—		592,235

TOTAL, NON-CURRENT		34,432,728		(7,480	)		34,425,248		15,435,147		49,484		15,484,631

TOTAL ASSETS		41,680,358		57,768			41,738,126		16,379,763		49,484		16,429,247


Liabilities	Consolidated								Holding company
Liabilities	Jun. 30, 2018			Adjustments		Jun. 30, 2018 (Restated)			Jun. 30, 2018			Adjustments		Jun. 30, 2018 (Restated)
CURRENT
Regulatory charges (d)		434,129			220		434,349			5,836			—		5,836
Taxes payable (c)		287,205			7,550		294,755			6,546			—		6,546
Other obligations		7,131,531			—		7,131,531			1,065,535			—		1,065,535

		7,852,865			7,770		7,860,635			1,077,917					1,077,917
Liabilities directly associated with assets classified as held for sale		5,905			—		5,905			5,905			—		5,905

TOTAL, CURRENT		7,858,770			7,770		7,866,540			1,083,822			—		1,083,822

NON-CURRENT
Regulatory charges (d)		278,374			514		278,888			—			—		—
Other obligations		18,864,395			—		18,864,395			621,219			—		621,219

TOTAL, NON-CURRENT		19,142,769			514		19,143,283			621,219			—		621,219

TOTAL LIABILITIES		27,001,539			8,284		27,009,823			1,705,041			—		1,705,041

EQUITY
Share capital		7,293,763			—		7,293,763			7,293,763			—		7,293,763
Capital reserves		2,249,721			—		2,249,721			2,249,721			—		2,249,721
Profit reserves		5,728,574			—		5,728,574			5,728,574			—		5,728,574
Equity valuation adjustments		(836,528	)		—		(836,528	)		(836,528	)		—		(836,528	)
Subscription of shares, to be capitalized		—			—		—			—					—
Retained earnings (f)		239,192			49,484		288,676			239,192			49,484		288,676

EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT		14,674,722			49,484		14,724,206			14,674,722			49,484		14,724,206

NON-CONTROLLING INTERESTS TOTAL EQUITY		4,097			—		4,097			—			—		—

TOTAL EQUITY		14,678,819			49,484		14,728,303			14,674,722			49,484		14,724,206

TOTAL LIABILITIES AND EQUITY		41,680,358			57,768		41,738,126			16,379,763			49,484		16,429,247

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STATEMENTS OF INCOME

FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2018


	Consolidated									Holding company
	Jan to Jun 2018			Adjustments			Jan to Jun 2018 (Restated)			Jan to Jun 2018			Adjustments		Jan to Jun 2018 (Restated)
Going concern operations
Net revenue (a), (c) and (d)		10,468,630			73,339			10,541,969			146			—		146
Total cost		(8,218,128	)		—			(8,218,128	)		—			—		—

GROSS PROFIT		2,250,502			73,339			2,323,841			146			—		146
Operating expenses		(839,794	)		—			(839,794	)		(142,172	)		—		(142,172	)
Share of (loss) profit, net, of associates and joint ventures (e)		(26,233	)		—			(26,233	)		480,319			49,484		529,803

Income before finance income (expenses) and taxes		1,384,475			73,339			1,457,814			338,293			49,484		387,777
Finance income		491,169			—			491,169			18,792			—		18,792
Finance expenses		(1,345,801	)		—			(1,345,801	)		(3,085	)		—		(3,085	)

Income before income tax and Social Contribution tax		529,843			73,339			603,182			354,000			49,484		403,484
Current income and Social Contribution taxes (b)		(180,044	)		(16,375	)		(196,419	)		—			—		—
Deferred income and Social Contribution taxes (b)		33,054			(7,480	)		25,574			38,569			—		38,569

Net income (loss) for the period from going concern operations		382,853			49,484			432,337			392,569			49,484		442,053

Net income (loss) for the period from discontinued operations		21,372			—			21,372			11,358			—		11,358

Net income (loss) for the period (f)		404,225			49,484			453,709			403,927			49,484		453,411

Basic and diluted earnings (loss) per share – R$		0.28			0.03			0.31			0.28			0.03		0.31

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STATEMENTS OF INCOME

FOR THE THREE-MONTH PERIOD ENDED JUNE 30, 2018


	Consolidated									Holding company
	Apr to Jun 2018			Adjustments			Apr to Jun 2018 (Restated)			Apr to Jun 2018			Adjustments		Apr to Jun 2018 (Restated)
Net revenue (a), (c) and (d)		5,533,199			73,339			5,606,538			73			—		73
Total cost		(4,488,514	)		—			(4,488,514	)		—			—		—

GROSS PROFIT		1,044,685			73,339			1,118,024			73			—		73
Operating expenses		(371,116	)		—			(371,116	)		(78,890	)		—		(78,890	)
Share of (loss) profit, net, of associates and joint ventures (e)		(83,107	)		—			(83,107	)		(18,051	)		49,484		31,433

Income before finance income (expenses) and taxes		590,462			73,339			663,801			(96,868	)		49,484		(47,384	)
Finance income		249,315			—			249,315			7,544			—		7,544
Finance expenses		(946,147	)		—			(946,147	)		(2,191	)		—		(2,191	)

Income before income tax and Social Contribution tax		(106,370	)		73,339			(33,031	)		(91,515	)		49,484		(42,031	)
Current income and Social Contribution taxes (b)		4,982			(16,375	)		(11,393	)		—			—		—
Deferred income and Social Contribution taxes (b)		19,646			(7,480	)		12,166			19,635			—		19,635

Net income (loss) for the period from going concern operations		(81,742	)		49,484			(32,258	)		(71,880	)		49,484		(22,396	)

Net income (loss) for the period from discontinued operations		21,372			—			21,372			11,358			—		11,358

Net income (loss) for the period (f)		(60,370	)		49,484			(10,886	)		(60,522	)		49,484		(11,038	)

Basic and diluted earnings (loss) per share – R$		(0.04	)		0.03			(0.01	)		(0.04	)		0.03		(0.01	)

STATEMENTS OF COMPREHENSIVE INCOME

FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2018

Consolidated

Holding company

Jan to
Jun 2018

Adjustments

Jan to
Jun 2018
(Restated)

Jan to
Jun 2018

Adjustments

Jan to
Jun 2018
(Restated)

Net income for the period (f)

404,225

49,484

453,709

403,927

49,484

453,411

Other comprehensive income

(416

)

—

(416

)

(416

)

—

(416

)

Comprehensive income for the period

403,809

49,484

453,293

403,511

49,484

452,995

STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE-MONTH PERIOD ENDED JUNE 30, 2018

Consolidated

Holding company

Apr to
Jun 2018

Adjustments

Apr to
Jun 2018
(Restated)

Apr to Jun
2018

Adjustments

Apr to
Jun 2018
(Restated)

Net income for the period (f)

(60,370

)

49,484

(10,886

)

(60,522

)

49,484

(11,038

)

Comprehensive income for the period

(60,370

)

49,484

(10,886

)

(60,522

)

49,484

(11,038

)

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STATEMENTS OF CASH FLOWS

FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2018


	Consolidated									Holding company
	Jan to Jun 2018			Adjustments			Jan to Jun 2018 (Restated)			Jan to Jun 2018			Adjustments			Jan to Jun 2018 (Restated)
CASH FLOW FROM OPERATIONS
Net income for the period from going concern operations (f)		382,853			49,484			432,337			392,569			49,484			442,053
Adjustments to reconcile net income to net cash flows
Income tax and Social Contribution taxes (b)		146,990			23,855			170,845			(38,569	)					(38,569	)
Share of profit (loss) in associates and joint ventures (e)		26,233						26,233			(480,319	)		(49,484	)		(529,803	)
CVA (Portion A Compensation) Account and Other Financial Components in tariff adjustments (a)		(1,069,049	)		(81,623	)		(1,150,672	)		—			—			—
Others		1,565,134			—			1,565,134			76,770			—			76,770

		1,052,161			(8,284	)		1,043,877			(49,549	)		—			(49,549	)

(Increase) / decrease in assets		716,507			—			716,507			500,635			—			500,635

Increase (decrease) in liabilities
Taxes payable (c)		(314,754	)		7,550			(307,204	)		831						831
Regulatory charges (d)		(49,987	)		734			(49,253	)		5,836						5,836
Others		(497,379	)		—			(497,379	)		(5,499	)		—			(5,499	)

		(862,120	)		8,284			(853,836	)		1,168						1,168

Cash generated by going concern operations		906,548			—			906,548			452,254			—			452,254

Interest paid on loans and financings		(671,651	)		—			(671,651	)		(438	)		—			(438	)
Income and Social Contribution taxes paid		(292,981	)		—			(292,981	)		(38	)		—			(38	)
Settlement of derivative financial instruments (Swap)		12,981			—			12,981			—			—			—

NET CASH FROM (USED IN) GOING CONCERN OPERATIONS		(45,103	)		—			(45,103	)		451,778			—			451,778

Net cash from (used in) Discontinued operations		36,602			—			36,602			18,944			—			18,944

NET CASH FROM (USED IN) OPERATING ACTIVITIES		(8,501	)		—			(8,501	)		470,722			—			470,722

NET CASH FROM (USED IN) INVESTING IN GOING CONCERN OPERATIONS		196,510			—			196,510			(552,127	)		—			(552,127	)
Net cash used in investment activities—discontinued operations		(7,631	)		—			(7,631	)		—			—			—

NET CASH FROM (USED IN) INVESTING ACTIVITIES		188,879			—			188,879			(552,127	)		—			(552,127	)
NET CASH FROM (USED IN) FINANCING ACTIVITIES		(269,698	)		—			(269,698	)		105,778			—			105,778
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(89,320	)		—			(89,320	)		24,373			—			24,373
Cash and cash equivalents at the beginning of the period		1,030,257			—			1,030,257			38,672			—			38,672

Cash and cash equivalents at the end of the period		940,937			—			940,937			63,045			—			63,045

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STATEMENTS OF ADDED VALUE

FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2018


	Consolidated								Holding company
	Jan to Jun 2018			Adjustments		Jan to Jun 2018 (Restated)			Jan to Jun 2018			Adjustments		Jan to Jun 2018 (Restated)
Gross value added (a)		7,605,969			81,623		7,687,592			(88,404	)		—		(88,404	)
Retentions		(411,300	)		—		(411,300	)		(216	)		—		(216	)

Net added value produced by going concern operations		7,194,669			81,623		7,276,292			(88,620	)		—		(88,620	)
Net added value produced by discontinued operations		21,372			—		21,372			11,358			—		11,358
Added value received by transfer (e)		464,936			—		464,936			499,111			49,484		548,595

Added value to be distributed		7,680,977			81,623		7,762,600			421,849			49,484		471,333

Distribution of added value
Employees		816,235			—		816,235			43,703			—		43,703
Taxes (b), (c) and (d)		5,047,392			32,139		5,079,531			(35,652	)		—		(35,652	)
Remuneration of external capital		1,413,125			—		1,413,125			9,871			—		9,871
Remuneration of own capital (f)		404,225			49,484		453,709			403,927			49,484		453,411

		7,680,977			81,622		7,762,600			421,849			49,484		471,333

2.4

Correlation between the Explanatory Notes published in the annual financial statements and those in the interim financial information

The table below shows the correlation between the Explanatory Notes published in the financial statements at December 31, 2017 and the interim financial information at June 30, 2018.

The Company understands that this interim financial information presents the material updating of information relating to its financial position, and its results for the six-month period ended June 30, 2018, in compliance with the requirements for disclosure stated by the CVM (Brazilian Securities Commission).

LOGO


Number of the Note		Title of the Note
Dec. 31, 2017	Jun. 30, 2018	Title of the Note
1	1	Operational context
2	2	Basis of preparation
3	3	Consolidation principles
4	4	Concessions and authorizations
5	31	Operational segments
6	5	Cash and cash equivalents
7	6	Securities
8	7	Customers and traders; Concession holders (transport of energy)
9	8	Recoverable taxes
10	9	Income and Social Contribution tax
11	10	Restricted cash
12	11	Accounts Receivable from the State of Minas Gerais
13	12	Escrow deposits
14	13	Reimbursement of tariff subsidies
15	14	Concession financial assets and liabilities
16	15	Investments
17	16	Property, plant and equipment
18	17	Intangible assets
19	18	Suppliers
20	19	Taxes payable, Income tax and Social Contribution tax and amounts to be reimbursed to customers
21	20	Loans, financings and debentures
22	21	Regulatory charges
23	22	Post-retirement obligations
24	23	Provisions
25	24	Equity and remuneration to shareholders
26	25	Revenue
27	26	Operating costs and expenses
28	27	Finance income and expenses
29	28	Related party transactions
30	29	Financial instruments and risk management
31	29	Measurement at fair value
—	30	Assets classified as held for sale
35	33	Transactions not involving cash
36	34	Subsequent events

LOGO

The Notes to the 2017 financial statements that have not been included in these interim financial information because they had no material changes, and/or were not applicable to the interim information, are as follows:


Number		Title of the Note
32		Insurance
33		Commitments
34		Annual tariff adjustment

3.	PRINCIPLES OF CONSOLIDATION

The reporting dates for the interim financial information of subsidiaries and jointly-controlled entities used for the purposes of consolidation and equity method gains (losses), respectively, coincide with those of the Company. Accounting practices are applied uniformly in line with those used by the Company.

The following subsidiaries are included in the consolidated interim financial information:


Subsidiary	Criteria		Jun. 30, 2018		Dec. 31, 2017
Subsidiary	Criteria		Direct interest,%		Direct interest,%
Cemig Geração e Transmissão		Consolidated		100.00		100.00
Cemig Distribuição		Consolidated		100.00		100.00
Gasmig		Consolidated		99.57		99.57
Cemig Telecom (2)		Consolidated		—		100.00
Rosal Energia		Consolidated		100.00		100.00
Sá Carvalho		Consolidated		100.00		100.00
Horizontes Energia		Consolidated		100.00		100.00
Cemig Geração Distribuída (Usina Térmica Ipatinga) (1)		Consolidated		100.00		100.00
Cemig PCH		Consolidated		100.00		100.00
Cemig Trading		Consolidated		100.00		100.00
Efficientia		Consolidated		100.00		100.00
Cemig Comercializadora de Energia Incentivada		Consolidated		100.00		100.00
UTE Barreiro		Consolidated		100.00		100.00
Empresa de Serviços e Comercialização de Energia Elétrica		Consolidated		100.00		100.00
Luce Empreendimentos e Participações S.A.		Consolidated		100.00		100.00

(1)	In 2018, the corporate name of UTE Ipatinga was changed to Cemig Geração Distribuída S.A.

(2)	Company merged into Cemig on March 31, 2018.

LOGO

4.	CONCESSIONS AND AUTHORIZATIONS

Cemig and its subsidiaries hold the following concessions and authorizations with Aneel:


	Company holding concession or authorization	Concession or authorization contract	Expiration date
POWER GENERATION
Hydroelectric plants
Emborcação (1)	Cemig GT	07/1997	07/2025
Nova Ponte (1)	Cemig GT	07/1997	07/2025
Santa Luzia (1)	Cemig GT	07/1997	02/2026
Sá Carvalho (1)	Sá Carvalho	01/2004	12/2024
Rosal (1)	Rosal Energia	01/1997	05/2032
Machado Mineiro (1) Salto Voltão (1) Salto Paraopeba (1) Salto do Passo Velho (1)	Horizontes Energia	Resolution 331/2002	07/2025 10/2030 10/2030 10/2030
PCH Pai Joaquim (1)	Cemig PCH	Resolution 377/2005	04/2032
Irapé (1)	Cemig GT	14/2000	02/2035
Queimado (Consortium) (1)	Cemig GT	06/1997	01/2033
Salto Morais (1)	Cemig GT	02/2013	07/2020
Rio de Pedras (1)	Cemig GT	02/2013	09/2024
Luiz Dias (1)	Cemig GT	02/2013	08/2025
Poço Fundo (1)	Cemig GT	02/2013	08/2025
São Bernardo (1)	Cemig GT	02/2013	08/2025
Xicão (1)	Cemig GT	02/2013	08/2025
Três Marias (2)	Cemig Geração Três Marias	08/2016	01/2046
Salto Grande (2)	Cemig Geração Salto Grande	09/2016	01/2046
Itutinga (2)	Cemig Geração Itutinga	10/2016	01/2046
Camargos (2)	Cemig Geração Camargos	11/2016	01/2046
Coronel Domiciano, Joasal, Marmelos, Paciência and Piau (2)	Cemig Geração Sul	12/2016 and 13/2016	01/2046
Dona Rita, Ervália, Neblina, Peti, Sinceridade and Tronqueiras (2)	Cemig Geração Leste	14/2016 and 15/2016	01/2046
Cajurú, Gafanhoto and Martins (2)	Cemig Geração Oeste	16/2016	01/2046
Thermal plants
Igarapé (1)	Cemig GT	07/1997	08/2024
POWER TRANSMISSION
National grid (3)	Cemig GT	006/1997	01/2043
Itajubá Substation (3)	Cemig GT	79/2000	10/2030
ELECTRICITY DISTRIBUTION (4)	Cemig D	002/1997 003/1997 004/1997 005/1997	12/2045
GAS DISTRIBUTION (4)	Gasmig	State Law 11,021/1993	01/2053

(1)	Generation concession contracts that are not within the scope of ICPC 01/IFRC 12, whose infrastructure assets are recorded as PP&E since the concession grantor does not have control over whom the service is provided to as the output is being sold mainly in the Free Market (‘ACL’).

(2)	Generation concession contracts whose revenue related to the Concession Grant Fee is within the scope of ICPC 01 /IFRIC 12, and is classified as concession financial assets.

(3)

Transmission concession contracts that are within the scope of ICPC 01 /IFRIC 12, considering the financial asset model, andthe income and costs of the construction works related to the formation of the financial asset is recognized as expenses are incurred. The financial asset to be reimbursed is identified when the implementation of the infrastructure is finalized and included as remuneration for the services of implementation of the infrastructure.

(4)	Concession contracts that are within the scope of ICPC 01 /IFRIC 12 and under which the concession infrastructure assets are recorded under the intangible and financial assets bifurcation model.

LOGO

5.	CASH AND CASH EQUIVALENTS


	Consolidated				Holding Company
	Jun. 30, 2018		Dec. 31, 2017		Jun. 30, 2018		Dec. 31, 2017
Bank accounts		43,984		113,495		4,669		4,645
Cash equivalents
Bank certificates of deposit (CDBs) (1)		786,378		685,826		44,748		20,799
Overnight (2)		110,575		226,629		13,628		13,228
Others		—		4,307		—		—

		896,953		916,762		58,376		34,027

		940,937		1,030,257		63,045		38,672

(1)

Bank Certificates of Deposit (Certificados de Depósito Bancário, or CDBs), accrued interest at 60% to 106% of the CDI Rate (Interbank Rate for Interbank Certificates of Deposit or Certificados de Depósito Inter-bancário – CDIs) published by the Custody and Settlement Chamber (Câmara de Custódia e Liquidação, or Cetip) on June 30, 2018 (50% to 106% on December 31, 2017). For these CDBs, the Company has repo transactions which state, on their trading notes, the bank’s commitment to repurchase the security, on demand, on the maturity date of the transaction, or earlier, at the Company’s option.

(2)

Overnight transactions are repos available for redemption on the following day.They are usually backed by Treasury Bills, Notes or Bonds and referenced to a pre-fixed rate of 6.39%, on June 30, 2018 (6.89% on December 31, 2017). Their purpose is to settle the Company’s short-term obligations, or to be used in the acquisition of other assets with better return to replenish the portfolio.

The Company’s exposure to interest rate risks and sensitivity analysis for financial assets and liabilities are disclosed in Note 29.

6.	SECURITIES


	Consolidated				Holding Company
	Jun. 30, 2018		Dec. 31, 2017		Jun. 30, 2018		Dec. 31, 2017
Investments
Current
Bank certificates of deposit (CDBs) (1)		935		2,652		115		144
Financial Notes (LFs) – Banks (2)		158,949		303,355		19,589		17,706
Treasury Financial Notes (LFTs) (3)		121,124		739,945		14,928		43,189
Debentures (4)		4,775		10,663		1,825		2,142
Others		2,252		1,769		650		779

		288,035		1,058,384		37,107		63,960
Non-current
Bank certificates of deposit (CDBs) (1)		234		—		43		—
Financial Notes (LFs) – Banks (2)		57,957		—		7,143		—
Debentures (4)		4,951		29,753		2,339		1,737
Others		705		—		—		—