1

FINANCIAL STATEMENTSFINANCIAL STATEMENTS 20012001

FINANCIAL STATEMENTSFINANCIAL STATEMENTS 20012001

• Chief Financial Officer - DFNChief Financial Officer - DFN• Chief Investor Relation OfficerChief Investor Relation Officer

2

Net IncomeR$ 478 Million

Return on Equity7%

Proposed DividendsR$ 214 Million

EBITDAR$ 1.412 Million

Shareholders’ EquityR$ 6,948 Million

Total debtR$2.480 Million

Interest and ChargesR$ 221 Million

DebenturesR$ 625 Million

Highlights on Financials

3

CEMIG's SHAREHOLDING CAPITAL

DECEMBER/2001

State of Minas GeraisSouthern Electric Brasil Part. Ltda.Private Investors and Other ShareholdersForeign InvestorsOthers

ListingNew York Stock Exchange

BOVESPACorporate Governance

Level I

Highlights on institutional affairs

COMMON SHARES

51%

0% 33%4%

12%

PREFERRED SHARES

1%

0%

47%

50%

2%

TOTAL OF SHARES

23%

29%

1%

14%

33%

20,00

22,00

24,00

26,00

28,00

30,00

32,00

34,00

36,00

01/10

/200

1

04/10

/200

1

09/10

/200

1

15/10

/200

1

18/10

/200

1

23/10

/200

1

26/10

/200

1

31/10

/200

1

06/11

/200

1

09/11

/200

1

14/11

/200

1

20/11

/200

1

23/11

/200

1

28/11

/200

1

03/12

/200

1

06/12

/200

1

11/12

/200

1

14/12

/200

1

19/12

/200

1

26/12

/200

1

8,00

9,00

10,00

11,00

12,00

13,00

14,00

15,00

16,00

18/09

/200

1

21/09

/200

1

26/09

/200

1

01/10

/200

1

04/10

/200

1

10/10

/200

1

15/10

/200

1

18/10

/200

1

23/10

/200

1

26/10

/200

1

31/10

/200

1

05/11

/200

1

08/11

/200

1

14/11

/200

1

19/11

/200

1

23/11

/200

1

28/11

/200

1

03/12

/200

1

06/12

/200

1

11/12

/200

1

14/12

/200

1

19/12

/200

1

24/12

/200

1

28/12

/200

1

cig cmig4

4

Industry General Agreement

Industry Revitalization Expansion

IrapéFunding Structure

Porto Estrela112 MW

New consumers270 thousand

connected

CAPEXR$ 635 MI

Highlights on strategy

Revenue Losses

Non controllable costs

Purchase of non Regulated price energy

Other Regulatory costs

The MAE Energy transaction deadlock

Assurance on the capacity expansion

Moving along with the Industryrestructuring

5Incurred Costs and reimbursement on the wake of the Regulatory Agreement 2001

Incurred Costs and reimbursement on the wake of the Regulatory Agreement 2001

1 - INCURRED COSTS 643 - Purchase of Energy from IPP at MAE ) At $49.26 per MWh price not covered by the rate increase 179 At ( MAE price less R$ 49.26 ) per MWh 372 - Electric System Service Charges 922 - Reimbursed amounts 1.381 - derived from lower volume 657 - Sale of electricity produced by CEMIG as IPP 80 - CVA - Part. A ( Jan-Out/01 ) reimbursement 272 - Reimbursement of electricity purcahsed from IPP 3723 - OUTSTANDING BALANCE FAVORABLE TO CEMIG ( 2 - 1 ) 738

DescriptionEstimated amounts

subject to the ANELL auditing

Values in R$ million

6ECONOMIC INDICATORS

in 2001

IGP-DI 10.4

DOLLAR 18.7

IGP-M 10.4

INPC 9.4

IndexChange(% )

7

G E M IGIn teg ra ted

G A S M IG9 5 %

1 .8 M M M 3 /d ay

P o r to E str e la3 3 %

1 1 3 M W

IN F O V IA S4 8 %

A im o r és4 9 %

3 3 0 M W

Ip a t in ga1 0 0 %

4 0 M W

H o r izo n tes1 0 0 %

1 3 M W

S á C a r v a lh o1 0 0 %

7 8 M W

C E M IGH o ld in g

CEMIG Structure

Novas agências de atendimento

New Investments in Generation Capacity

8Consolidated statement of incomeConsolidated statement of income

Items Cemig Gasmig InfoviasSá

CarvalhoIpatinga TOTAL

Net Operating revenues

4,712.8 111.6 1.0 20.0 7.0 4,852.4

Operating Expenses

(3,803.8)

(93.7) (6.9) (4.7) (6.0) (3,915.0)

Financial income (expense)

(204.5) (3.6) 3.8 1.0 1.0 (195.5)

Non-operating Result

(89.9) - - - - (89.9)

Income before income tax

614.7 21.5 (2.1) 16.3 1.6 651.9

Net Income 449.5 15.1 (1.4) 13.4 1.3 477.9

9

Assets 2001 2000 %

CURRENT 1.630.315 995.558 63,76

LONG TERM RECEIVABLES 3.503.619 1.460.129 139,95

PERMANENT 7.989.843 8.109.369 (1,47)

13.123.777 10.565.056 24,22

Liabilities and Equity

CURRENT 1.739.339 1.336.034 30,19

LONG TERM LIABILITIES 4.482.382 1.411.489 217,56

SHAREHOLDER'S EQUITY 6.902.056 7.817.533 (11,71)

Values in million of ReaisBalance Sheet: Holding

BS reflects the industry agreement booking rules

10

Net Operating Revenue

Operating Expenses

EBITDA

FX Losses

Net income (Loss)

Operating Margin (%)

EBITDA Margin (%)

Retail Sales (GWh)

R$ MI in 12/31/2001

4,712.9

3,803.8

1,412.1

209.5

477.9

19.3

30.0

34,896

29.9 %

29.9 %

19.2 %

123.3 %

15.2%

(0.2) %

(8.3) %

(7) %

% change

EPS growth was strong in 2001EPS growth was strong in 2001

Holding

11

82 136106

91

(12)

26

(209)

673

-300

-150

0

150

300

450

600

750

1stQua.00

2ndQua.00

3rdQua.00

4thQua.00

1stQua.01

2ndQua.01

3rdQua.01

4thQua.01

Quartely Net income growth

R$ million

12

12160 29

3

267

305

336

292

252

229

296

268

731

-100200300400500600

1stQ/99

2ndQ/99

3rdQ/99

4thQ/99

1stQ/00

2ndQ/00

3rdQ/00

4thQ/00

1st QT/01

2ndQ/01

3rdQ/01

4thQ/01

10.0%

20.0%

30.0%

40.0%

EBITDA (R$MI) Margin EBITDA

1,412.1

1.184,8

600.0

900.0

1,200.0

1,500.0

2001 2000

Quartely EBITDA growth

19.2 %19.2 %

13

4th QUARTER

2001

4th QUARTER

2000 2001 2000

Net Revenue 1.952 962 4.713 3.628

Operating Expenses (1.349) (779) (3.804) (2.927)

EBIT 603 183 909 701

Financial Result 328 (21) (205) (266)

Non Operating Result (28) (22) (90) (64)

Net Income 673 91 478 415

Statement of Income

Values in million of Reais

Net Income 15% higher in 2001

Holding

14

4th Qua 2001

4th Qua 2000 2001 2000

Retail Sales 1.091 1.210 4.553 4.476 Extraordinary revenues 1.058 - 1.058 - Wholesale 88 18 144 145 Transmission Grid Revenue 39 35 153 139 Others 26 28 108 98 Deductions (350) (329) (1.303) (1.231)

Net Revenue 1.952 962 4.713 3.627

Operating Revenue

Values in million of Reais

Net Revenue increased 30%due to tariff readjustment

Holding

15

ExpensesValues in million of Reais

2000 2001 Change

Controllable 1,464 1,655 13

Non controllable 1,453 2,149 48

Total 2,917 3,804 30

Non controllable costs increased faster

Holding

16

4th QUA 2001

4th QUA 2000 2001 2000

Energy Purchased 699 217 1.514 819 Labor 122 139 549 516 Depreciation and amortization 128 123 503 484 CCC 4 77 249 282 Transmission Grid Charges 46 64 251 243 Outsourced Services 51 59 214 194 Forluz - Employee post-retirement benefits 50 26 201 101 Other Expenses 98 74 323 288

Total 1.198 779 3.804 2.927

Operating ExpensesValues in million of Reais

Energy purchased reflects rationing adjustment

Holding

17

Financial Result( R$204,5 MI )

Financial Result( R$266,0 MI )

FX Losses( R$209,5 MI )

Expenses ( R$443,2 MI )

RevenueR$ 448,2 MI

RevenueR$239,9 MI

2001 2000

Expenses( R$412,0 MI )

FX Losses( R$93,9 MI )

FINANCIAL RESULTSFor the whole YearReal Depreciation:

Up to Dec/01: 18.67% Up to Dec/00: 9.30%

FX losses were higher evenwith the Real appreciation

Holding

18

Short-term Long term TotalForeign Currency 352 983 1,335 Local Currency 100 1,045 1,145

Foreign Currency

26%

74%

Short-term Long-term

Local Currency

14%

86%

Short-term Long-term

Total Debt

Foreign Currency

54%

Local Currency46%

Million of ReaisMillion of Reais

Foreign Currency debt reducedby Eurobond retirement

Holding

19Debt maturity

69,8 64,7 59,9

377,5343,6

99,9

222,6

299,2

12,1

18,4

37,6

8,4

111

321,8

0

75

150

225

300

375

450

525

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014/2024

Foreign Currency

Foreign Currency ( under 4131 facility )

Local Currency

Holding

20

Non-operating Result( R$89.9 MI )

Non-operating Result( R$63.6 MI )

FORLUZ – operating expenses( R$7.9 MI )

Write-off and Disposal losses( 44.0 MI )

Projects write-off and others( R$40.9 MI )

2001 2000

FORLUZ – operating expenses ( R$8.0 MI )

NON-OPERATING RESULTS

Projects write-off and others( R$38.0 MI )

Write-off and Disposal losses( R$14.7 MI )

For the whole For the whole YearYear

2001 Year end results:guidance

21

Energy delivered to the transmission grid Regulated price Market

Non regulated potencial market

Wholesale

17,557 GWh

16,875 GWh

7,636 GWh

Total Energy

43,391 GWh

Losses 7,6 % 3,593 GWh

ENERGY BALANCE 2001ENERGY BALANCE 2001

Third party plant supply

1,323 GWh

Energy Generated 20,629 Own Generation 18,957 Third party plant output 1,004 Subsidiaries'Generation 668

Energy Purchased 26.355 Itaipu 11.935 Other Utilities Acceptance 2.879 Short-term Energy/MRE 11.482 Isolated Loads 59 Coruripe -

Energy for sale 46.984 GWh

22

Sales in GWh

Industrial61%

Commercial9%

Residential19%

Others11% Sales

Residential37%

Commercial14%

Others11%

Industrial38%

Change QoQ 2001-20001st Qua 2nd Qua 3rd Qua 4th Qua Total

7% 3% -19% -18% -7%

Rationing reduced sales Volume in 7%

23PRODUCTIVITY GAINS

5,1

86

5,1

41

4,9

17

4,7

23

4,4

73

4,2

48

5.2

39

5,3

43

5.4

12

11,59615,060

12,71811,961 11,748 11,648 11,238 11,367 11,288

3,000

4,000

5,000

6,000

3,000

6,000

9,000

12,000

15,000

18,000

Customers Employees

1997 1998 1999 2000 2001Customers por Employee 352 391 418 441 479 MWh sold / Employee 2,676 3,282 3,332 3,647 3,093 Labor expenses per net revenue ( % )27.9 19.2 16.0 14.2 11.7 Net revenue per expenses 0.83 0.73 0.86 0.81 0.81 Added value ratio 1.21 1.38 1.16 1.24 1.24 Sales decreased (%) 2001/2000 3.10 2.20 (0.03) 7.00 (16.2) Operating expenses / MWh 48.8 50.2 74.7 68.9 109.0

24

Electricity sales – After rationing Electricity sales – After rationing

-7.00% 2.10%

8.40%

4.20% 4.30%4.00%

-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

2000 2001 2002 2003 2004 2005 2006

Reference: June/2001

GrowthGrowth

Outlook 2002

25

Market growth : before and after rationing

30,00032,00034,00036,00038,00040,00042,00044,00046,00048,000

2000 2001 2002 2003 2004 2005 2006

GW

h

Before Ratinoning After RationingReference: June/2001

Outlook 2002

26

R$3.9 billion planned for the next 5 yearsEconomic Basis

INVESTMENTS PROGRAM

2000(A) 2001(A) 2002 2003 2004 2005

Generation 144,4 169,0 416,7 201,3 91,2 13,8

Transmission 8,9 46,8 44,6 96,6 104,2 94,9

Sub-transmission 40,6 31,5 98,8 130,9 121,9 126,7

Distribution 291,8 348,1 399,5 354,9 321,0 292,4

Other 35,8 40,0 120,0 64,7 87,9 90,5

TOTAL 521,5 635,3 1.079,6 848,4 726,2 618,2

27

Major Projects

R$ MI Start-upUTE Barreiro 100 13 22 Mar. 03UHE Pai Joaquim 100 23 11 Dec. 03UTE Ouro Preto 100 24 15 Apr. 03UHE Aimorés 49 330 199 Dec. 03UTE Sulminas 31 488 186 Dec. 03UHE Capim Branco l ll 21 450 106 NDUHE Irapé 100 360 486 Jun. 05UHE Funil 49 180 95 Dec.02UTE Usiminas II 100 67 161

Total 1.935 1.281 Infovias 48 Efficientia S A 1

DescriptionCEMIG investment%

CEMIGMW