Results in line with our Long Term Strategic Plan

1

Results in line with our Long Term Strategic PlanSolidity of fundamentals sustains growth

2007 Annual Results

http://cemig.infoinvest.com.br 2 / 49

Disclaimer

Some statements in this presentation are forward-looking statements within the meaning of the US Securities Acts and are subject to risks and uncertainties. Forward looking statements are forecasts that may differ from the final numbers and are not under our control. For a discussion of the risks and uncertainties as they relate to the Company, please refer to our Form 20F of 2006, and in particular Item 3, containing “Basic Information – Risk Factors”.

All figures are in BR GAAP.


Contents

Highlights and Investment Policy• Marcio Araujo de Lacerda

Chairman of the Board of Directors

Corporate management and expansion of our business• Djalma Bastos de Morais

Chief Executive Officer

Financial management and 2007 Results• Luiz Fernando Rolla

Chief Officer for Finance, Investor Relations and Control of Holdings

Strategy ensures sustainable growth• Marcio Araujo de Lacerda











Contents


Consolidated sales: a record 57,892 GWh – Growth of 11%Sales to Argentina and Uruguay billed R$ 71 million

Solid fundamentals and compliance with Strategic PlanSanto Antônio power plant: the Amazon Region is the new generationfrontier – essential element in our target for 20% market share

– Expected return suitable to our Investment Policy

Financial

to R$ 850 million

Ebitda

+26% 40%EbitdaMargin

Highlights

Strategic Plan

Ebitda: R$ 4.073 billion

Net Income: R$ 1.735 billionProposed dividend: R$ 868 million

Market


43 average MW from the Funil Hydro Plant sold for

Highlights

Electricity auction

New Bylaws create new organizational structure, preparing the company for the challenges of consolidation of the sector

Fiscal Council operates as Audit CommitteeInternal controls certified for Sarbanes-Oxley Sections 302, 404

Corporate governance

The A-5 “New Energy” Auction

Regulatory

Tariff Review of Cemig D – Repositioning as from April 8

R$ 125.90/ MWh – 30-year contract starting 2012

Renewal of Generation Concessions, totaling 1,735MW


Brazil’s “Best Large Company to Work In” – in “150 best” surveyEmployee profit shares reflect measures to reduce future payroll expenses.Starting in 2008, variable remuneration will be tied to corporate targets.

Highlights Management

Cemig is World Leader– in Utilities sector of Dow Jones Sustainability World index.

Brazilian consumers elect Cemig best concession holder in the South East in Aneel’s Consumer Satisfaction Survey (IASC)

Sustainability

Feasibility studies for new generation projects (hydraulic, thermal and eolic energy), in partnership with others players, totaling 4,000 MW:Higher Competitive standards in expansion opportunities

Expansion


Discipline in investing

Sustainability

Leadership in Consolidation of Brazil’s Electricity Sector

Focus on generation, transmission and distribution of electricity, and natural gas• Infovias sold Way TV for R$ 103 million

(profit of R$ 54 million)Return compatible with the risk of each business.Strategic partnerships• Risk mitigation• Improvement of competitiveness• Best corporate governance practices

Strategic Plan defines long-term targets




Corporate management and expansion of our business

• Djalma Bastos de MoraisChief Executive Officer





Contents


Our investment policy ensures sustainable growth:

– Our main principles:

• Focus on electric sector activities

• Profitability: return compatible with risk

• Partnership with strategic investors: corporate governance

– Growth through new projects: long term vision

• Impossible to stay out of the Amazon area

• Growth through acquisitions

• Accelerated growth

• Sinergies identification

Investments


2005, 2006 and 2007: actual figures.2008: figures estimated in accordance with corporate planning.

417

157

315 334

Total Holding

Cemig DCemig GT

2005 2007 2008

1,166

1,944

926

1,561

2006

691

1,229

601

1,184

58

558

10 43

Capex

Acquisitionof Light and

TBE

Minas Hydro Plants (PCHs)Baguari Hydro Plant

Capacity improvementsLight for Everyoneprogram

2005 2007 20082006

R$ million

R$ million

R$ million

R$ million

2005 2007 20082006

2005 2007 20082006

Light for Everyoneprogram and

improvements to existing system


Year Capacity added, MW

Total Plants

2004 178 5,949 Barreiro Thermal Plant,Pai Joaquim small hydro, Queimado and Rosal Hydro

2005 164 6,113 Aimorés Hydro Plant2006 521 6,634 Irapé Hydro Plant, RME and Capim Branco I Hydro Group2007 44 6,678 Capim Branco II Hydro Group

In the last four years we have added more than 1,000 MW to our generating capacity, and 71,000 km of network.

2003 2004 2005 2006 2007 TOTAL

5,771

178

164

52144

6,67816%

MW

Installed Capacity

Growth of our assets

2003 2007

km

2003 2007

km

2003 2007

km

10%

3%

20%

4,829

5,313

16,185 16,676

359,304

429,560

Transmission lines

Sub-transmission lines

Distribution lines


Amazon Region: the new generation frontier

Renewal of generation concessions for 20 years – total: 1,735 MW

• Emborcação hydro plant 1,192 MW• Nova Ponte hydro plant 510 MW• 7 small hydro plants (“PCHs”) 53 MW

Baguari hydro plant(Installed capacity 140 MW)

• Total investment planned: R$ 489 million• Partners: Neoenergia (51%), Furnas (15%)• Construction begun: April 2007• Financing structure with BNDES (Brazilian

Development Bank)

Capacity improvement at :22 of the 32 existing PCHs

• First estimate of increase: 160 MW

The Minas PCH (Small Hydro Plant) Program

• New plants approved or under construction: • Total capacity: 91 MW• Planned investment: R$ 380 million

Cachoeirão PCH 27 MWPipoca PCH 20 MWSenhora do Porto PCH 12 MWDores de Guanhães PCH 14 MWJacaré PCH 9 MWFortuna II PCH 9 MW

• 16 PCHs with 236 MW are at an advanced stage of engineering study and business structuring.

• Project finance structure with BNDES as principal agent.

Santo Antônio power plant(Installed capacity 3,150 MW)

• Stake through Cemig GT (10%)• Partners: Odebrecht (18.6%), Andrade Gutierrez

(12.4%), Furnas (39%) and Fundo de InvestimentoAmazônia Energia (20%)

• Supply to start in 2012


Inter-American Development Bank contract for Transchile: US$51 million

Startup of new transmission lines:Companhia Transudeste de Transmissão : Transmission Line Itutinga–Juiz de Fora, 345kV, Length 140 km, Cemig (24%),

Companhia Transirapé de Transmissão: Transmission LineIrapé–Araçuaí, 230kV, Length 65km; and Irapé and Araçuaísubstations, Cemig (24.5%)

Cemig GT’s total Permitted Annual Revenue increased 2.2% with the startup of new facilities.

Transmission: growth in Brazil and other countries

( * ) Rede Básica Novas Instalações


279,000 new consumers connected in 2007

200,000 new consumers connected to Cemig D79,000 new consumers connected to Light

Program for Universal Access to Electricity: Cemig D

180,000 new consumers connected exceeds Aneel’s targetSuccess reveals additional need: program to provide universal access will be continued in accordance with the company’s financial capacity, complemented by new federal funds as well as Minas Gerais State funds.

27,000 km of distribution and sub-transmission networks added in 2007

Quality

Cemig Supply quality is recognized by our customersElected as the Best Southeast Concessionaire according to ANEEL’s surveyInvestments in automation of operation

Strengthening of networks ensures expansion with quality


Sustainability is a corporate value

Social and Environmental Responsibility is a perennial commitment in all corporate decisions and it is introduced in our

long-term vision, assuring the sustainability of the activities, and allow us to generate, transmit and distribute energy with profitability and respect for our stakeholders.


Sustainability : social and environmental highlights of 2007

Interaction with community

ASIN project

• strong stimulus to voluntary work by employees - 1,100 participants

• 83 projects developed through the state

Assist Chateaubriand Social Responsibility Award for programs devised by our volunteers: “Lighting up Lives” and “Solidarity School-kit”.

Interaction with environment

Funds applied in environmental programs: R$44 million

Environmental Management System now protects 82% of our total generation capacity

Biodiversity: Peixe Vivo (“Fish Alive”) program for preservation of aquatic species in the Minas Gerais river basins where we have hydro plants.

Terra de Gente (“Our Land”) program: environmental education in schools










Contents


Performance of aquisitions proves the excellence of our investments

Light

Light reflects positively in Cemig’s result

TBE - Transmissoras Brasileiras de Energia : Group of 5 transmission line companies, acquired in 2006.

8,138

2,035

1,105

276

1,077

141

518

68

Revenue Ebidta Net Income Dividends Revenue Ebidta Net

Income Dividends

455

71

382

61

180

29

171

35

TBE

Total

Cemig share

Total

Cemig share


Electricity sales GWH

Net revenueR$ million

Ebitda R$ million

Debt R$ million Consumers Employees

Total, consolidated 57,892 10,246 4,073 7,639 10,320,832 14,518

Company2007

Cemig GT 31,813 2,666 1,696 3,112 177 2,276

Cemig D 20,694 5,976 1,867 2,752 6,440,085 8,317

RME (25%) 5,791 1,253 254 488 3,880,570 3,627

TBE - 68 61 144 - 58

Others (406) 283 195 1,143 - - (4)

(3) (3)

(2)

(1)

A business portfolio focused on electricity

(1) Includes employees of Cemig holding company.(2) Includes R$ 990 million from FIDC fund.(3) Includes 100% of Light.(4) Net of sales by IPPs (1,853 GWh); and eliminating inter-company (2,259 GWh).


Distribution business provides 52% of net income

Company (R$ '000) Net profit Ebitda

Cemig Distribuição 771,208 1,867,193 Cemig Geração/Transmissão 747,024 1,696,080 RME (Light) 147,779 254,125 TBE (EATE, ENTE, ETEP, ECTE, ERTE) 28,936 61,104 Gasmig 46,137 55,641 Capim Branco 39,166 40,214 Infovias 56,422 38,381 Sá Carvalho 24,044 31,158 Rosal Energia 18,956 20,207 Cemig PCH 14,742 15,482 Ipatinga 7,200 12,320 Horizontes 8,184 9,368 Transleste 1,891 4,179 Transudeste 757 2,181 Efficientia 1,195 1,416 Transirapé 293 1,328 Trading (8) 8 Pai Joaquim 12 (20) Cogeração 334 (23) UTE Barreiro (2,742) (791) Cemig Holding (176,081) (36,827) Cemig Consolidated 1,735,449 4,072,724

EBITDA

CEMIG DCEMIG GT

RME

GASMIGTBE

OTHERS

42%43%

8%2% 2% 3%

40%46%

8%2% 1% 3%

2007Net income

Contribution by business


Continuous improvement of our indicators

2003 2004 20062005 2007Debt / Debt + ShE

2650

10380

Ebitda/Interest

Dividend payout (%)

Leaverage (%)Debt / (Debt + Stockholders’ equity)

37 36

40

5048

2.1

1.8 1.9 2.52.2

4.6 4.54.2

3.3

4.0

Payment capacity (%)

Debt/Ebitda

Indicators’ Performance in line with Long Term Strategic Plan

Profit per share (R$)

2.52.9

4.13.5 3.6

2003 2004 20062005 2007

2003 2004 20062005 2007

2003 2004 20062005

50

2007


Credit quality kept at sufficient levels for a low risk rating over the long term• Moody’s: AA3.br; Fitch: A+.br

Reduction of exposure to FX rate riskExposure in CDI and Selic rates aligned to expectation of reduction of interest rates Introduction of IPCA inflation as indexor (Cemig D Debentures – R$400 million)Transactions in 2007 totaled R$ 1.4 billion

R$/million CEMIG consolidated CEMIG GT CEMIG D

Debt 7.639 3.112 2.752Debt in foreign currency 457 (6%) 120 (4%) 258 (9%)Net debt 5.625 2.210 2.127Ebitda / Interest 4,53Debt / Ebitda 1,96Net debt / (Stockholder's equity + Net debt) 47,66%

(1) Net debt = Total debt – Cash and cash equivalents – Regulatory Asset (RTE/BNDES)

(2) As defined in loan contracts signed with ItaúBBA

OTHERS

5%

71%

DollarURTJCDI/Selic

RGR/Finel

IGP-M

9%3%5%1%5%

(1)(2)

(2)

(2)

1%

IPCA

Indicators show superior credit quality

Indexors usedDebt, consolidated

12/31/2007


Debt profile lengthened

2008 2009 2010 2011 2012 2013 2014 2015 2016to

2031

1,020928

739837

1,0371,167

945

378

588

Maturity timetable

Averagetenor

5 years

Balance in 2007R$ 7.6 billion

Main creditors

R$ million

Banco do Brasil R$1,784 (23%)

Debenture holders R$ 1,709 (22%)

Banco Itaú BBA(*) R$ 1,311 (17%)

Unibanco R$ 533 (7%)

Bradesco (*) R$ 731 (9%)

Eletrobrás R$ 420 (5%)

Caixa Econ.Federal R$ 200 (3%)

BNDES R$ 168 (2%)

(*) – Includes FIDC

Cemig’s consolidated debtat 12/31/07 (R$ million )

12.09 11.67

9.15 9.478.56 7.85 7.94

DEC/04 DEC/05 DEC/06 MAR/07 JUN/07 SEP/07 DEC/07

Average cost (%)Real after taxes


Changes in cash flow

1,402

+1,028 -826

+462 2,066

Cash atend ofperiod

Dec.06

Dec.07

Cash atend ofperiod

Cashgenerated

byoperations

Financingactivity

Investmentactivity

R$ million

Robust operational cashflowR$ 1.382 billion in Cemig dividends paid in 2007


Net sales revenue: strong growth

2006

8,467

+1,824 + 112 +327 +44 -1 +52 -57910,246

20062007

21%

Sales tofinal

consumersTUSD

Wholesale+

CCEE

Revenue for use of grid Supply of

gas Others DeductionsNet

revenue

R$ million

Growth of net sales revenue reflects consolidation of the acquisitionsLower revenue from supply of gas (due to less use of thermal plants in first half of year), did not impact result of Gasmig, which posted net income of R$ 46 million in the year (Cemig’s Stake)

Net salesrevenue


Consolidated Expenses: Evolution

• Bought energy accounts for 66% of the increase in operational expenses

• Bought energy expenses are passed through to the tariff

5,9176,951

20062007

Consolidated

17%

R$ million

Change in operationalexpenses

66%

34%

R$ 1.034 billion

Other expensesR$ 353 million

EnergyboughtR$ 681 million

Payroll-120

Depreciation106

Grid charges-14

Third parties115

Post-employmentbenefits

-47

Materials12

Royalties-2

Gasfor resale

-4

Operational provisions239

Otherexpenses

68

• Increase in operationalprovisions mainly due to Light consolidation


Changes on Net income

Net income grows even after the investment in employee profit shares to reduce future payroll expensesNet income adjusted for non-recurring factors and profit shares: 6% growth

1,719

+1,641 -523

-373-306

+27 -96-109 1,735

2006 2007

1%

Non-controllableoperationalexpenses

Controllableoperationalexpenses

Financial revenue

(expenses)

Non-operational

revenue(expenses)

Provision for federal taxes

includingdeferred

Minorityinterests

Net income

R$

mill

ion

-245

Employees’profit shares

6% 2,092

1,974

Net income Net

revenue

Adjusted for non-recurring itemsand profit shares

20072006


Human capital: alignment with the Strategic PlanPerformance management: compensation linked to business results.

• Company’s adequacy to new industry challenges

• Engaged and stimulated employees

Succession Management Program: involving 752 professionals in management position and 1,800 to assume strategic functions, ensures development of skills necessary to lead the company’s growth.

Technical and Managerial Training investment of R$ 15.5 million ensures operational excellence

Workplace Management: permanent pursuance of better quality standards

Dow Jones Sustainability Index recognizes excellence of our HR• Occupational Health and Safety Index: 100%

• Human Capital Development Index: 100%

• Labor-law Practices Index: 92%

“Proteção Brasil” award 2007: best electricity safety system

• Recognition by companies and specialist professionals for improvement in work, health and safety conditions.


Progressive reduction in personnel expenses

Nov 2005 Ago 2007 Nov 2007 Jan 2008 Mar 2008

Especial bonuselimination:

16.7%

“Anuenio”elimination

Efficiency programwith

ConsultantsVoluntary

dismissal programBylaws

alteration

Net Revenue

Operational Expenses

Operational Result

Financial Result

Non Operational Result

Earnings Before Income Taxes

Profit Shares

Minority Interests

Net Income

Charges

Salary

Charges

Salary

Anuenio

Bonus

New EmployeeCurrent Employee


Extraordinary Profit Shares payment, totaling R$358 million

16.67% especial bonus elimination for futures employees

hired from November 2007: IRR = 14.48%Includes productivity and real rise, paid in a unique installmentCompensation linked to business results from 2008Expected turnover of 300 employees/year

Voluntary dismissal program in place.

Permanent

Almost fully provisioned

Cash impact: one year return

Expected adherence: 1,800 employees

Profit shares: investment with adequate return

2002 2003 20052004 2006 2007

4.43%

2.95%

5.21%

3.26%

Profit shares./EBITDA(%)

Anuênio

2001

8.49%

11.16%

6.51%

Bonus 16.67%

4.47%


Consolidated sales volume (GWh)

Energy volume grew 46% in two years, after Initial Contracts end andLight aquisition on 2006

8,72

5

10,3

04

11,8

88

13,8

51

10,1

49

10,4

37

12,4

44

14,2

48

14,3

19

14,7

70

13,9

22

14,9

52

4,000

1T05 2T05 3T05 4T05 1T06 2T06 3T06 4T06 1T07 2T07 3T07 4T07

Evolução Trimestral

36,5

84

35,9

47 39,6

14

37,8

97

57,8

92

52,2

63

Evolução Anual

2002 2003 2004 2005 2006 2007

30,000

46%


Consumer category 2007 2006 Change, %

Change, % without

LightResidential 8,649 7,430 16% 2.5%

Industrial 24,686 23,973 3% 1.9%

Commercial 5,549 4,439 25% 6.3%

Rural 2,212 1,942 14% 13.6%

Others 3,560 3,007 18% 2.8%

Wholesale (1) 13,236 11,472 15% 16.9%

TOTAL 57,892 52,263 11% 6.1%* Includes 25% of RME

Total sales of electricity, GWh*Consolodated

Growth reflects stake in Light S.A.

CEMIG growthwithoutLight

Light contribution

2007

52,263

3,029

2,600 57,892

11%

1,219

52,263

57,892Energy sold - GWh: 2006-7, by company

713

1,110 270553

1,764Energy sold – GWh: 2006-7, by consumer category

2006

2007

2006

Residential Industrial Comercial Rural Others Wharehouse

49,80552,834

Growth of energy sold, without Light - GWh

6.1%

2006 2007

(1) Sales in Free and Regulated Markets + Light’s settlements in CCEE.

11%

Strong contribution from Light reflects consolidation from August 2006

Excluding Light, total sales grew by 6.1%


Figures reflect solidity of the fundamentalsSustainable growth of Ebitda margin – to 40.7% in last quarter2007 Ebitda is R$ 4.073 billionEbitda for the year in line with the projection (between R$ 3.859 and R$ 4.175 bn)Ebitda more than R$ 1 bn per quarter

Consolidated Ebitda (R$ million)and Ebitda margin (%)

EBITDA in line with guidance - margin 41% in 4Q07

1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07

Ebitda margin (%) consolidated

EBITDA (R$ million)

2005 20072004 20062003

2,798

4,073

2,2663,222

1,797

4240

38 38

34

( * ) 2003 to 2005 EBITDA were adjusted to reflect Reclassification on accounting setlement, According to changes on ANEEL´s Accounting Plan

35

28

37

52

3740 41 41

711534

8571,120

8681,037 1,098 1,070


4Q07 Resullts Analysis

Consolidated 4Q07 3Q07 4Q06

Net Revenue 2,627 2,699 2,171 Operational Expenses (1,751) (1,807) (1,244)Operational Results 876 892 927 Depreciation 192 206 193 EBITDA 1,068 1,098 1,120 Financial Results (195) (38) (11)Non Operational Results 23 (14) (24)Provision for Income, Social Contribution, Deferred Income Taxes

44 (279) (71)

Profit Share (455) - (210)Minority Shareholders (27) (14) (5)Net Income 266 547 606

Quarter results impacted by financial results and profit shares


2,243

+206

+250 -26 +31 -382,666

2006

2007

Net salesrevenue

Sales to final

consumers

Revenue for use of grid

+CCEE Other Deductions

Net sales

revenueWholesale

sales

R$ million

Cemig GT: net sales revenue growth

19%

Growth decurrent of new power plants, exports and energy resaleSales to Argentina and Uruguay contribute R$ 71 mn for wholesale revenue


Cemig GT: increase in net income

Growth of market boosts net income

614

-129-14 -1 -86

+423

747

2006 2007

R$ million

-60

Net income Net sales

revenueOperationalexpenses

Financial expenses

Non-operationalexpenses

Provision for federal taxes

incl. deferred

Net income

Employeeprofit shares

22%


CEMIG GT: Growing sales, consolidating new consumer profile

7.6% higher volume of energy sold in 2007 and 2006: Startup of Irapé Plant4Q07: large volume of secondary energy (generation exceeded assured energy) and higher whole sales (distributors and trading companies)

1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07

6,8007,227

8,007

7,5337,688 7,698

8,187 8,240

4Q07

Cemig GT quarterly sales, GWh


Cemig D: increase in net sales revenue

2006

Increase in sales revenue from final consumers due to growth of the market (3.6%) and tariff readjustments of 2006 and 2007

5,419

+582 +60 -37 +12 -60 5,976

2007

Sales to final

consumers

Revenue for use of

distributionnetword

Other DeductionsNet salesrevenue

Wholesale+

CCEE

R$ million

Net salesrevenue

10%


Cemig D: change in net income

Growth of the market allowed maintaining net income level after investment in reduction of future personnel expenses.

770

-163-181

-18 -12

+557

771

2006 2007

0.12%

R$ million

-182

Net income Net sales

revenueOperationalexpenses

Financial expenses

Non-operationalexpenses

Federal taxes incl.

deferred

Net incomeEmployee

profit shares


Electricity distributed in 2007 grew 4.2% from 2006

Electricity transported for clients and other agents grew 4.8% (TUSD market)

Energy sale to captive market grew 3.6% from 2006.

Cemig D: Sales resume growth after migration of free clients

Cemig DistribuiçãoSales – GWh

1Q05 2Q053Q05 4Q051Q06 2Q06 3Q064Q061Q07 2Q073Q07

5,19

23,

042

5,04

83,

923

5,00

43,

063

5,06

54,

119

5,85

64,

050

5,98

64,

207

5,06

94,

286

5,05

94,

194

4,91

24,

128

5,26

74,

438

5,16

54,

516

Transport marketCaptive market

Total electricity distributed

Sales of elecricity to final consumers(Captive market)

5,19

2

4,85

6

4,91

2

5,04

8

4,98

6

5,26

7

5,00

4

5,06

9

5,16

5

1Q05 1Q06 1Q07 2Q05 2Q06 2Q07 3Q05 3Q06 3Q07 4Q05 4Q06 4Q07

5,06

5

5,05

9

5,35

0

5,35

04,

457

4Q07

2005 2006 2007


Highlights• Marcio Araujo de Lacerda






Strategy ensures sustainable growth• Marcio Araujo de Lacerda Chairman of the Board of Directors

Contents


55 years old: Cemig is operating as a corporation ...

Note: Two companies – Central Hidrelétrica Pai Joaquim S.A. andCentral Termelétrica de Cogeração S.A. – are not included as they are in the process of being wound up.

VS = Voting stockTS = Total stock

40 companies

7 consortia

CIA. ENERGÉTICADE MINAS GERAIS

Capim BrancoEnergia

Consortium21.5%

CEMIGCapim BrancoEnergia S.A.

100%

Usina TérmicaIpatinga S.A.

100%

CEMIG PCH S.A.100%

Horizontes Energia S.A.

100%

Sá Carvalho S.A.100%

Rosal Energia S.A.100%

Usina TermelétricaBarreiro S.A.

100%

Cia. Translestede Transmissão S.A.

25%

Empresa Catarinensede Transmissãode Energia S.A.

7.49%

Empresa Regionalde Transmissãode Energia S.A.

18.35%

Empresa Paraensede Transmissãode Energia S.A.

VS: 25% TS: 18.41%

Empresa Nortede Transmissãode Energia S.A.

18.35%

Empresa Amazonensede Transmissãode Energia S.A.

VS: 25% TS: 16.09%

Cia. Transirapéde Transmissão S.A.

24.5%

Cia. Centroeste Minas de Transmissão S.A.

51%

Cia. Transudestede Transmissão S.A.

24%

Transchile CharrúaTransmissión S.A.

49%

Cia. de Gás deMinas Gerais

55,2%

Centro de GestãoEstratégica de

Tecnologia*100%

Empresa deInfovias S.A.

100%

Efficientia S.A.100%

Cemig Trading S.A.100%

CEMIGGeração e

Transmissão S.A.100%

CEMIG Baguari S.A.100%

HidrelétricaCachoeirão S.A

49%

AHE Funilhydroelectric plant

consortium49%

Igarapavahydroelectric plant

consortium14.5%

Porto Estrelahydroelectric plant

consortium33.33%

Queimado hydroelectric plant

consortium82.5%

Aimorés hydroelectric plant

consortium49%

Baguarihydroelectric plant

consortium34%

Focus Soluções Tecnológicas S.A.

49%

Guanhães Energia S.A.49%

Rio Minas EnergiaParticipações S.A.

25%

Light S.A.52.25%

CEMIGDistribuição S.A.

100%

Light Energia S.A.

100%

LIR Energy Ltd.

100%

Light Serviçosde Eletricidade

S.A.100%

Light Social andUrgan Development

Institute*100%

Light EscoPrest. Serviços

Ltda.100%

Light OverseasInvestments

Ltd.100%

Lightger Ltda.

100%

ItaocaraEnergia Ltda.

100%

Lighthidro Ltda.

100%

Madeira Energia S.A.10%

* Instituto Light de DesenvolvimentoSocial e Urbano

Transmission companiesDistribution companiesGeneration companiesGeneration consortiaFinancial operationsNon-profitGas distributionTelecommunicationsTradingHolding companyServices

Key

* Strategic Technology Management Center

Note: Two companies – Central Hidrelétrica Pai Joaquim S.A. andCentral Termelétrica de Cogeração S.A. – are not included as they are in the process of being wound up.

VS = Voting stockTS = Total stock

40 companies

7 consortia

CIA. ENERGÉTICADE MINAS GERAIS

Capim BrancoEnergia

Consortium21.5%

CEMIGCapim BrancoEnergia S.A.

100%

Usina TérmicaIpatinga S.A.

100%

CEMIG PCH S.A.100%

Horizontes Energia S.A.

100%

Sá Carvalho S.A.100%

Rosal Energia S.A.100%

Usina TermelétricaBarreiro S.A.

100%

Cia. Translestede Transmissão S.A.

25%

Empresa Catarinensede Transmissãode Energia S.A.

7.49%

Empresa Regionalde Transmissãode Energia S.A.

18.35%

Empresa Paraensede Transmissãode Energia S.A.

VS: 25% TS: 18.41%

Empresa Nortede Transmissãode Energia S.A.

18.35%

Empresa Amazonensede Transmissãode Energia S.A.

VS: 25% TS: 16.09%

Cia. Transirapéde Transmissão S.A.

24.5%

Cia. Centroeste Minas de Transmissão S.A.

51%

Cia. Transudestede Transmissão S.A.

24%

Transchile CharrúaTransmissión S.A.

49%

Cia. de Gás deMinas Gerais

55,2%

Centro de GestãoEstratégica de

Tecnologia*100%

Empresa deInfovias S.A.

100%

Efficientia S.A.100%

Cemig Trading S.A.100%

CEMIGGeração e

Transmissão S.A.100%

CEMIG Baguari S.A.100%

HidrelétricaCachoeirão S.A

49%

AHE Funilhydroelectric plant

consortium49%

Igarapavahydroelectric plant

consortium14.5%

Porto Estrelahydroelectric plant

consortium33.33%

Queimado hydroelectric plant

consortium82.5%

Aimorés hydroelectric plant

consortium49%

Baguarihydroelectric plant

consortium34%

Focus Soluções Tecnológicas S.A.

49%

Guanhães Energia S.A.49%

Rio Minas EnergiaParticipações S.A.

25%

Light S.A.52.25%

CEMIGDistribuição S.A.

100%

Light Energia S.A.

100%

LIR Energy Ltd.

100%

Light Serviçosde Eletricidade

S.A.100%

Light Social andUrgan Development

Institute*100%

Light EscoPrest. Serviços

Ltda.100%

Light OverseasInvestments

Ltd.100%

Lightger Ltda.

100%

ItaocaraEnergia Ltda.

100%

Lighthidro Ltda.

100%

Madeira Energia S.A.10%

* Instituto Light de DesenvolvimentoSocial e Urbano

Transmission companiesDistribution companiesGeneration companiesGeneration consortiaFinancial operationsNon-profitGas distributionTelecommunicationsTradingHolding companyServices

KeyTransmission companiesDistribution companiesGeneration companiesGeneration consortiaFinancial operationsNon-profitGas distributionTelecommunicationsTradingHolding companyServices

Key

* Strategic Technology Management Center


– ... that is redrawing the map of Brazilian electricity!

PB

States Type Consumers GWh MW kmES Free 1 40 55GO Free 1 18MA 29

GT + subsidiaries (free + auction) 115 29.254

Captive 20.694MS Free 1 12MT Free 1 66PA 288

Cemig, free 3 48Light 5.791

RS Free 1 33SC Free 6 84 10 19SP Free 5 1.852

134 57.892 6.678 5.300

4.948

16

6.501MG

Total

112RJ

Supply13,236 GWh

93 contracts with Distributors and

Traders

(1) (2)

(1) 25% fromLight, (2) 13% from Light

Transmission

Cemig Free Clients

Generation

AM

ACRO

PA MA

RR AP

PI

CE RN

PEAL

SEBA

TO

MT

GO DF

MS

SP

PR

SC

RS

ES

RJ

MG

Generation underconstruction

DistribuiçãoDD

D


R$ 4.3 billion paid as dividends on the last three years

Financial indicators mantained in line with covenants established by our bylaws

Operational Excellence guide costs reduction, taking to higher efficiency gains

Risk management assures confiability to acquisition consolidation

Human capital management modernizes the relation with employees and prepares the company to the new reality of the sector

Tariff Review: repositioning as from April 8

Solidity of fundamentals allows us to grow more


Commitment with shareholders return assures sustainable growth centered in long term – Strategic Plan in line with Investment Policy

• Aquisition opportunities along 2008

• New concession auctions: Jirau Power Plant and Madeira Complex Transmission System

• Shareholders to approve new limits for kew indicators

Total Assets: R$ 24.3 bilion

Consolidated debt R$ 7.6 bilion

Stockholders’ equity R$ 8.4 bilion

Consolidated net sales revenue (2007) R$ 10.2 bilion

Solidity of fundamentals allows us to grow more

47

Investor Relations

[email protected]

Telephone: (55-31) 3506-5024

Fax: (55-31) 3506-5025

mailto:[email protected]

http://cemig.infoinvest.com.br

Aneel: The Brazilian electricity sector is regulated by Aneel, an independent federal regulatory agency.BR GAAP – Accounting Principles Generally Accepted in Brazil.CRC – The Results Compensation Account: Prior to 1993 Brazilian electricity concession holders were guaranteed by law a rate of return on investment in

assets used in the provision of electricity services to clients; rates charged to users were uniform all over the country; and the profits generated by the more profitable concession holders were reallocated to less profitable concession holders, in such a way that the rate of return of all the companies was equal to the national average. The deficits which the majority of the Brazilian electricity concession holders suffered were accounted in the “CRC Account” of each company. When the CRC Account itself, and the concept of guaranteed return, were abolished, the concession holders with positive balances were allowed to set these balances off against amounts owed by them to the federal government.

CCC – The Fossil Fuel Consumption Account: The CCC was created to generate financial reserves to cover the increase in costs associated with greater use of thermal generating plants, in the event of drought: the marginal operational costs of the thermal plants are higher than those of hydroelectric plants. Each energy company is obliged to make an annual contribution to the CCC. The annual contributions are calculated based on the estimates of the cost of fuel consumption by the thermal plants necessary in the subsequent year. CCEE – the Electricity Trading Chamber: Provides the mechanism for transactions in electricity within the Brazilian National Grid system.

CDE – Energy Development Account: This is a source of subsidy created to make alternative sources of energy competitive (e.g. wind energy, or biomass), and to promote the “universalization” of electricity services – their extension to every citizen and location. It is funded from annual payments made by the concession holders for the use of public assets, and penalty payments imposed by Aneel. The CDE will remain in effect for a period of 25 years and will be administered by Eletrobrás.

DEC – Average Customer Outage Duration: In electricity distribution, the average time of outage suffered by consumption units in a given group in the period referred to.

Dividend Yield (dividend per share/share price): The annual return the stockholder receives in the form of dividends and Interest on Equity (per share) calculated as a percentage of the stock price.

FEC – Average Customer Outage Frequency: In electricity distribution, the average number of outages per consumption unit in a given group in the period referred to.

FIDC: A receivables Fund, made up of assets receivable.Ebitda (Earnings Before Interest, Tax, Depreciation and Amortization): Net income before interest (including all items included as financial

revenue/expenses), taxes, depreciation and amortization. This is an expression of operational cash flow, and provides a view of how much a company is generating in cash from its principal business.

Hedge: A mechanism by which holders of asset or liability positions protect themselves from price fluctuations in, e.g., the commodities or FX markets. ( >> continued on next page >> )

Glossary

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Luz no Campo (“Light in the Countryside”): The national rural electrification program, created by the federal government aiming to take electricity to one million rural properties and homes all over Brazil. It is coordinated by the Mining and Energy Ministry, and conducted by Eletrobrás with funds obtained from the Global Reversion Reserve (RGR).

Payout – Percentage of net income distributed as dividends.P/E (Price/Earnings): Ratio between the price of a share and its profit per share.(ShE – Stockholders’ equity)RTE – The “Extraordinary Tariff Recomposition”: This is a tariff adjustment granted in December 2001 to the distributors and generators of the regions

that were under rationing at that time. It is settled in the General Agreement for the Electricity Sector, and resulted in an increase of 2.9% in the tariffs of residential consumers (with the exception of low-income consumers) and rural consumers, and 7.9% for the other consumers. The objective of the adjustment was to restore the losses that distributors and generators of electricity had suffered from the reduction of consumption imposed by the government. The duration of the adjustment varies in accordance with the time necessary for the recovery of the losses of each concession holder.

RGR – Global Reversion Reserve: This is an annual amount included in the costs of concession holders, for generation of funds for expansion and improvement of public electricity services. The amounts are paid monthly to Eletrobrás, which is responsible for administration of the funds, and will also be employed in the Procel program.

RTD – The “Deferred Tariff Adjustment”: Aneel decided the results of the periodic tariff revision of Cemig Distribuição which covers the repositioning of electricity retail supply tariffs at a level compatible with the preservation of the economic-financial equilibrium of the concession contract, providing sufficient revenue to cover efficient operational costs and adequately remunerate investments. The average adjustment applied to Cemig’s tariffs on April 8, 2003, provisionally, was 31.53%, but the final tariff repositioning for Cemig should have been 44.41%. The percentage difference of 12.88% will be compensated through an increase in each of the tariff adjustments planned to occur in 2004 and 2007, cumulatively. The difference between the tariff repositioning to which Cemig Distribuição has the right and the tariff actually charged to consumers is recognized as a Regulatory Asset.

Total return to stockholder – Sum of (change in stock price) and (dividend per share) TUSD – Tariff for Use of the Distribution System: This is paid by generation companies and by Free Consumers for the use of the distribution system of

the distribution concession holder to which the respective generator or consumer is linked, and is revised annually in accordance with the inflation index and the investments made by the distributors in the previous year to maintain and expand the network. The amount to be paid by the user who is linked to the distribution system is calculated by multiplication of the amount of energy contracted with the distribution concession holder for each link point, in kW, on the basis of the tariff in R$/kW which is set by Aneel.

UHE – (“Usina Hidrelétrica”) – Hydroelectric power plant: Electricity generation plant which uses the mechanical energy of water to turn rotors and generate electricity.

UTE – (“Usina Térm(o)Elétrica”) – Thermal generation plant: One in which chemical energy contained in fossil fuels is converted into electricity.WACC – Weighted average cost of capital.

Documents

Results in line with our Long Term Strategic Plan