1

FINANCIAL STATEMENTS FINANCIAL STATEMENTS 33rdrd QUARTER 2001 QUARTER 2001

• Investor Relations OfficerInvestor Relations Officer• Chief Financial OfficerChief Financial Officer

• Investor Relations OfficerInvestor Relations Officer• Chief Financial OfficerChief Financial Officer

2

HIGHLIGHTS

OPERATING PERFORMANCE

P & L STATEMENT

OUTLOOK

AGENDA

3Result influenced by macro economical factors

• Real devaluation• Rationing• Increasing regulatory charges

(12)26

(209) (195)

324

-300

-200

-100

0

100

200

300

400

R$

mil

lion

HIGHLIGHTS

436% Real devaluation resulted in losses of R$650 million

0100200300400500600700800

R$

mil

ion

1st Q

uarte

r

2nd Q

uarte

r

3rd Q

uarte

r

Until S

ep.0

1

Until S

ep.0

0

Energy purchase from taipu

050

100150200250300350400450500

R$

mil

lio

n

1st Q

uarte

r

2nd Q

uarte

r

3rd Q

uarte

r

Until S

ep.0

1

Until S

ep.0

0

FX Expense

U.S. Dollar

1,80

2,00

2,20

2,40

2,60

2,80

3,00

R$

/US

$

.

Daily Rate Jan 2, 2001

HIGHLIGHTS

5Revenue reductionreached R$286 million

0500

1.0001.5002.0002.5003.0003.500

R$

mil

ion

1Q01 2Q01 3Q01 UntilSep. 01

UntilSep. 00

Gross Revenue

27,905

27,054

26,600

26,800

27,000

27,200

27,400

27,600

27,800

28,000

GW

h

Sales to Final Consumers

3rd Quarter 013rd Quarter 00

Reduction of 3%

HIGHLIGHTS

6Residential presentedthe rationing effects

1.898 1.873 1.882 1.922 1.8061.372

5.653 5.100

0

2,000

4,000

6,000

GWh Residential

0

5,000

10,000

15,000

20,000

GWh Industrial

0

1,000

2,000

3,000

GWh Commercial

Reduction of 9.8%

Reduction of4.3%

Reduction of 0.7%

HIGHLIGHTS

7Growth till Mayvery positive...

2.915

3.0402.982

3.2123.145

3.1993.274

3.125

3.3593.237

3.104 3.063

3.192 3.250

3.041

2.510

2.6192.683

2.0002.2002.400

2.6002.8003.0003.200

3.4003.600

Jan Feb Mar Apr May June July Aug Sep

GWh

2000 2001

...but, rationing has already reducedgrowth from June on

HIGHLIGHTS

8Fast growth after crisesFast growth after crisesshows the Company’s vigorshows the Company’s vigor

-200-100

0100200300400500600

R$

mill

ion

1996 1997 1998 1999 2000 UntilSep-01

Net profit (loss)

0

200

400

600

800R

$ m

illio

n

.

1996 1997 1998 1999 2000 UntilSep-01

CAPEX

In 1999 the Real devaluationreduced net income promptlyrecovered in 2000

Even under adverse conditions CEMIG was able to invest

HIGHLIGHTS

9

0

500

1000

1500

2000

2500

3000

3500

4000

R$ m

illi

on

.

1997 1998 1999 2000 Until Sep-00

Until Sep-01

Net Revenue Debt EBITDA

Even facing debt growth financial situation remains sound

HIGHLIGHTS

10

- Net loss R$ million (194.6)

- Stockholders' Equity R$ million 6,451

- Total debt R$ million 4,001

- Capital Expenditure R$ million 419

- Generating Installed Capacity MW 5,636

- Own Generation GWh 15,508

- Total Sales until Sep/ 01 GWh 27,015

- Retail Sales (last 12 months) % (1.9)

- Total Customers - Thousand # 5,343

- New Customers - Y to Sep/ 01 # 201,432

CEMIG as of September 2001

HIGHLIGHTS

11

US$ 90 MI Foreign debt rollover (up to Sept./2001)

Aimorés power plant – 330 MW: Construction start-up

Bovespa Level I of Corporate governance

NYSE ADR Level II listing

MAE electricity transactions recording

Material facts3rd Quarter 2001Material facts3rd Quarter 2001

HIGHLIGHTS

12

Net Operating Revenue

Operating Expenses

EBITDA

FX Losses

Net Loss

Operating Margin

EBITDA Margin

Sales (GWh)

Change in relation to 2000 shows impacts

2,760,750

2,455,389

680,695

(482,489)

(194,621)

11.06 %

24.66 %

33,439

3.5

14.3

(22.6 )

(1,637.5)

(160.1)

(43.1)

(25.3)

(0.5)

%Values in R$ thousandHIGHLIGHTS

13

Requirements Captive Market

Free Customers

Initial Contracts and Short-term Energy

13,566 GWh

13,141 GWh

5,740 GWh

TotalEnergy

33,439 GWh

Reduction(0.5) %

Losses 7.6 % 2,756 GWhReduction

(27) %

ENERGY BALANCE Year to September 2001ENERGY BALANCE Year to September 2001

Third party plant supply

992 GWh

Energy Generated 16,224 Own Generation 15,039 Third party plant output 716 Subsidiaries' Generation 469

Energy Purchased 19.971 Itaipu 8.929 FURNAS 2.171 Short-term Energy/MRE 8.808 Isolated Loads 44 Coruripe 19

Energy available for sale36,195 GWh

14Operating performance improves despite crises

5.2

39

4,2

48

4,4

73

4,7

23

4,9

17

5,1

41

5,1

86

5,3

43

11,23811,53611,73211,961

12,71815,060

11,596 11,233

0

1,000

2,000

3,000

4,000

5,000

6,000

1996 1997 1998 1999 2000 1Q01 2Q01 3Q01

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000Customers Employees

1997 1998 1999 2000Until

Sept/01Customers per Employee 352 391 418 446 480 MWh sold/ Employee 2.676 3.882 3.332 3.661 2.980 Labor expenses per net revenue( % ) 27,9 19,2 16,0 14,2 15,5 Net revenue per expenses 0,83 0,73 0,86 0,81 0,89 Added value ratio 1,21 1,38 1,16 1,24 1,12 Sales decreased (%) 2001/2000 3,10 2,20 (0,03) 7,00 (3,05) Operating expenses/ MWh 48,8 45,2 62,5 68,9 90,70

PDI

PDV

OPERAT I NG

15

2.7

1.7

2.3

3.33.6

1.8

2.31.8

1.2

1.4

3.9

2.1

1.2

1.4

0

2

4

6

Hou

rs p

er c

usto

mer

s

DEC FEC

Quartely figures

1Q/00 2Q/00 3Q/00 4Q/00 1Q/01 2Q/01 3Q/01

OperatingPerformance

Equivalent duration of outagesper consumer

Equivalent frequency of outages per consumer

OPERAT I NG

16

EBITDA – 22.63 %

121

60

29226

7

305336

292

252

22929

6

268

-50

100150200250300350400

1Q99 2Q99 3Q99 4Q99 1Q00 2Q00 3Q00 4Q00 1Q01 2Q01 3Q01

R$ m

illion

10,0%

20,0%

30,0%

40,0%

EBITDA EBITDA Margin

880

681600

700

800

900

2000 2001

R$

mill

ion

EBITDA

OPERAT I NG

17

Assets Sep-01 June-01 Change %

CURRENT 1.297.621 1.564.327 (17,05)

LONG TERM RECEIVABLES 2.277.367 2.023.665 12,54

PERMANENT 9.343.816 9.366.675 (0,24)

12.918.804 12.954.667 0,28)

Liabilities and EquitySep-01 June-01 Change %

CURRENT 1,967,698 2,020,995 (6.56)

LONG TERM LIABILITIES 4,500,246 4,274,039 7.15

SHAREHOLDER'S EQUITY 6,450,860 6,659,633 (3.13)

12,918,804 12,954,667 -0.28

Value in thousand of reais

Balance Sheet

OPERAT I NG

18Rationing already presentsits first impacts

1st Quarter

2001

2nd Quarter

2001

3rd Quarter

2001Until

Sep/01Until

Sep/00

Net Revenue 929 1,004 828 2,761 2,666

Operating Expenses (786) (835) (834) (2,455) (2,148)

EBIT 143 168 (6) 306 518

Financial Result (141) (120) (272) (533) (245)

Non-Operating Result (23) (4) (35) (62) (42)

Net Income (13) 27 (209) (195) 324

Statement of income

Values in million of Reais

OPERAT I NG

19Operating revenue reflectsrationing losses from June on

1st Quarter

2001

2nd Quarter

2001

3rd Quarter

2001Until

Sep/01Until

Sep/00

Retail Sales 1,185 1,281 995 3,461 3,266 Wholesale 8 9 38 55 127 T Grid Revenue 36 36 42 114 104 Others 25 29 29 83 70 Deductions (325) (352) (275) (952) (902)

Net Revenue 929 1,003 829 2,761 2,665

Operating Revenue

Values in million of Reais

Wholesale revenues rose R$28 million as result of MAE electricity trading accounting

OPERAT I NG

20OPERATINGEXPENSES

ExpensesValues in million of Reais

3rd Quarter 00

3rd Quarter 01

Change

%

Controllable 382 337 -12

Non-Controllable 402 497 24

Total 784 834 6

OPERAT I NG

2114% increase in operating expenses in 2001

1st Quarter

2001

2nd Quarter

2001

3rd Quarter

2001Until

Sep/01Until

Sep/00

Energy Purchased 232 280 303 815 602 Labor 167 136 125 428 377 Depreciation and amortization 123 125 128 376 361 CCC 71 85 88 244 205 T Grid Charges 66 66 73 205 179 Outsourced Services 46 56 61 163 135 Forluz 75 Others Expenses 81 89 56 226 214

Total 786 837 834 2,457 2,148

Operating ExpensesValues in million of Reais

OPERAT I NG

22

Labor expenses

Description September/01 September/00 Charge (%)

Payroll 387.0 347.0 11.5

Voluntary dismissal program - PDV 32.5 - 0.0

Forluz Expenses 22.7 35.5 (36.1)

Fringe benefits 45.1 41.5 8.7

TOTAL EXPENSES 487.3 424.0 14.9

Capitalized expenses (60.3) (47.0) 28.3

P & L allocated expenses 427.0 377.0 13.3

Values in million of ReaisOPERAT I NG

23

Financial Result( R$532.6 million )

Financial Result( R$244.7 million)

FX Losses( R$482.5 million )

Expense ( R$364.3 million )

RevenueR$ 314.1 million

RevenueR$110.7 million

2001 2000

Expenses( R$327.6 million )

FX Losses(R$27.8 million)

FINANCIALRESULTSReal Depreciation: Until Sep/01: 36.61% Until Sep/00: 3.06%

F I NANC I ALS

24

Short-term Long-term TotalForeign Currency 661 956 1,617 Local Currency 70 414 484 Total 731 1,370 2,101

Foreign Currency

41%

59%

Short-term Long-term

Local Currency

14%

86%

Short-term Long-term

Total Debt

74%

26%

Foreign Currency Local Currency

Interest Rates

82%

18%

Fixed Variable

Foreign Debt increaseddue to Real devaluation

F I NANC I ALS

25

Non-operating Result( R$61.6 million )

Non-operating Result( R$42.1 million )

FORLUZ – Managerial cost(R$6.5 million)

Write-off and Disposal losses(R$32.8 million)

Projects write-off and others(R$25.2 million)

2001 2000

FORLUZ – Managerial cost (R$5.8 million)

NON-OPERATINGRESULTS

Projects write-off and others(R$22.3 million)

Write-off and Disposal losses(R$11.1 million)

F I NANC I ALS

26

Value in million of Reais Sep-30-01 Sep-30-00OPERATING ACTIVITIESNet Income (loss) (195) 324

Depreciation and amortization 375 361 Write-off of assets and other assets 75 59 Others 428 25

Cash provided by operating activities 683 769

Financing activities (70) (88) Proceeds from long-term debt 263 144 Proceeds from short-term debt - -Payments on long-term debt (252) (223) Special obligations – Consumers' Contributions 123 75 Early payment electricity sales (35) (58) Dividends and interest on capital (170) (26)

Cash for investing activities 613 681

Investing activities 415 331 Investments 31 20Capital expenditure 384 311

Net increase in cash and cash equivalents 198 350

Cash flow changeCash and cash equivalents at beginning of year 287 69Cash and cash equivalents at end of year 485 419

198 350

Until

Sound Cash Flow affords negative impacts

F I NANC I ALS

27Debt maturity

Debt restructuring and local bonds included

159,8 146,3 129,4 134,3

448,3 422,429,0

362,7 351,9 374,3

100,3

61,9157,4

81,888,7 85,6 87,4

503,3

107,316,0

40,0

72,7

96,3

17,8 14,3 14,3

10,9

7,6

0

100

200

300

400

500

600

700

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014a

2024

R$

mill

ion

LOCAL CURRENCY FOREIGN CURRENCY

53,5

202,7 161,3 152,4 151,2 122,9

446,8

345,3338,5

208,7

54,9

115,9

359,5

85,18791,5 77,9150,9

59,87,6

10,9

14,314,317,8

96,2

27,3 17,816

0

100

200

300

400

500

600

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

a 2

024

R$

Mil

lion

LOCAL CURRENCY FOREIGN CURRENCY

OUTLOOK

28

Current situationCurrent situation

2001 Funding2001 Funding

1. Supplier´s and Buyer´s ....................................….R$ 111.5 million

2. Roll-over

a) Already done …….......................................….US$121.2 million Up to September/2001 .......................….US$ 91.2 million Central Bank approval in progress...….US$ 30.0 million

b) Eurobonds .................................................….US$148.1 million “Waiver”............................................…....US$ 26.7 million Loans under 4131-STN/BACEN facility ...US$115.0 million To be repaid ............................................US$ 6.4 million

3. Local bonds A Series: .........................................................R$ 312.5 million B Series:….......................................................R$ 312.5 million

OUTLOOK

29

R$3.9 billion planned for the next 5 years

CAPEX

2000(a)3rd Q 01(a)

2001 2002 2003 2004 2005

Generation 147.4 116.1 196.2 279.0 201.3 91.2 13.8

Transmission 8.0 21.4 89.1 71.1 96.6 104.2 94.9

Sub-transmission 40.6 16.0 67.7 86.2 130.9 121.9 126.7

Distribution 309.4 238.7 355.3 357.1 354.9 321.0 292.4

Others 43.8 26.9 42.2 133.1 64.7 87.9 90.5

TOTAL 549.2 419.1 750.5 926.5 848.4 726.2 618.2

OUTLOOK

30

MAJOR PROJECTS

SHARE CEMIGCEMIG MW R$ million START-UP

UHE Porto Estrela 33 112 39 Sep-01UTE Barreiro 100 13 22 Dec-02UHE Pai Joaquim 49 23 11 Sep-03UHE Queimado 83 105 110 April-03UHE Aimorés 49 330 206 Nov-03UTE Sul Minas 31 500 186 Dec-03UHE Capim Branco l ll 20 450 110 Not definedUHE Irapé 100 360 April-05UHE Funil 49 180 101 Dec-02PCH Poço Fundo 100 21 8 Jun-02

Total 2,094 793

Infovias (investments in 2001) 21 Gasmig (investments in 2001) 9

OUTLOOK

31

G E N C O1 0 0 %

5 .5 5 4 M W

T R A N S C O1 0 0 %

4 9 .6 3 K M

D IS C O /C O M E R C1 0 0 %

5 ,1 m ilh õ es c lien tes

G A S M IG9 5 %

1 ,8 M M M 3 /d ia

P o rto E strela3 3 %

1 1 3 M W

IN F O V IA S4 9 %

A im o rés4 9 %

3 3 0 M W

Ip a tin g a1 0 0 %

4 0 M W

H o rizo n tes E n erg ia1 0 0 %

S á C a rv a lh o1 0 0 %

7 8 M W

C E M IGH o ld in g

CEMIG’SRESTRUCTURING

OUTLOOK

32

• BOVESPA Level I: CMIG3 AND CMIG4BOVESPA Level I: CMIG3 AND CMIG4• NYSE Level II ADR: CIGNYSE Level II ADR: CIG• Dow Jones Sustainability Index 2000 and 2001Dow Jones Sustainability Index 2000 and 2001

• BOVESPA Level I: CMIG3 AND CMIG4BOVESPA Level I: CMIG3 AND CMIG4• NYSE Level II ADR: CIGNYSE Level II ADR: CIG• Dow Jones Sustainability Index 2000 and 2001Dow Jones Sustainability Index 2000 and 2001