Av. Barbacena 1219 22
nd
Floor
In accordance with Paragraphs 1
and 6 of Article 8 of Law 6404/76, the Management of Companhia Energética de Minas Gerais Cemig (Cemig) appointed three accounting experts to prepare the Valuation Opinion on the equity of Luce Empreendimentos e
Participações S. A. (Lepsa or the Company), detailed in the attachment to this document, at book value. This appointment will be ratified in an Extraordinary General Meeting of Stockholders of Cemig.
The accountants identified below were appointed as expert accountants to prepare the valuation of the Equity of Lepsa, and have prepared this present Valuation
Opinion in accordance with accounting practices adopted in Brazil, as defined in Item 7 of Accounting Pronouncement NBC TG 26
Presentation of financial statements
:
In compliance with the requirements of CVM Instruction 565/2015, as amended, the expert accountant warrants that: (a) they have no direct or indirect
interest in the Company or in the operations carried out by it; and (b) they found no limitations imposed by the controlling stockholders or manager such as might hinder or might have compromised access to, use or knowledge of information,
goods and assets, documents or work methodologies relevant for issuance of their conclusions.
The accounting inspection was carried out in accordance
with NBC T 13, and comprised: (a) planning of the work; (b) application of procedures judged to be necessary in the circumstances; and (c) issuance of the expert opinion, namely the Valuation of the equity to be absorbed.
Luce Empreendimentos e Participações S. A. is a wholly-owned subsidiary of Companhia Energética de Minas Gerais S.A. Cemig, formed
on December 17, 2009, as an unlisted corporation with shares, and its objects are direct or indirect stockholdings in companies operating in the power industry. Lepsa is a direct investor in Light S.A., holding 26,576,149 common shares,
comprising 13.03% of the share capital of the investee.
The objective of the valuation of the net equity of Lepsa, at book value, on the base date of October 31, 2018, is absorption of its total net assets and
liabilities by its parent company Cemig, in accordance with Articles 226 and 227 of Law 6404/76.
To ensure accuracy of the accounting values of the asset and liability elements that comprise the balance sheet of Lepsa on October 30, 2018, we adopted
the following procedures:
On October 31, 2018 the accounting records of Lepsa were in compliance with the pertinent legal formalities
and are written in accordance with accounting practices adopted in Brazil.
The experts used historic information and data audited by third parties, and
data supplied by the management of Lepsa, via email. This being so, we assume that the data and information obtained for this Opinion is true.
This
Opinion was prepared for use solely and exclusively by Cemig, for the objective mentioned in Item 3.
The Balance Sheet at October 31, 2018 was prepared in accordance with accounting practices adopted in Brazil. The experts concluded that the assets and
liabilities of Lepsa have been properly accounted for.
The components of net equity of Lepsa at October 31, 2018 are represented, in summary form, by the following account lines:
Although Cemig is a listed company, valuation at market price or any other economic-financial valuation technique, as specified by Article 264 of Law 6404/76,
is not justified, since this is a case of absorption of a wholly-owned subsidiary company, and there is no determination of an exchange ratio that could be the object of comparison and/or right to withdraw. Thus, there will be no change in the net
equity of Cemig, nor issuance of new shares, for which reason valuation at market price is not applicable.
As a result of the procedures and analyses carried out, we conclude that the value of the stockholders equity of Lepsa on October 31, 2018 is R$
441,943,481.62 (four hundred forty one million nine hundred forty three thousand four hundred eighty one Reais and sixty two centavos).
subject to the terms and conditions herein Cemig intends to absorb Lepsa
and Lepsa intends to be absorbed by Cemig;
the managements of the Absorbing Company and the Absorbed Company believe that the absorption of Lepsa by
Cemig will be beneficial for the companies involved, because it will permit rationalization and simplification of the stockholding structure, and will result in a reduction of operational costs and expenses of the Company;
The parties now resolve to sign, in accordance with the terms of Articles 224, 225, 226 and 227 of Law 6404 of December 15, 1976 as amended (the
Corporate Law), this present Instrument of Protocol and Justification of Absorption of LUCE Empreendimentos e Participações S.A. by Companhia Energética de Minas Gerais, which, subject to the terms and conditions below,
will be submitted for consideration to the respective Extraordinary General Meetings of the Absorbing Company and the Absorbed Company (the Protocol and Justification)
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LUCE E
MPREENDIMENTOS
E
P
ARTICIPAÇÕES
S.A.
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Name:
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Name:
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Position:
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Position:
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Absorbing Company
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COMPANHIA ENERGÉTICA DE MINAS GERAIS
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Name:
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Name:
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Position:
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Position:
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1.
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2.
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Name:
RG:
CPF/MF:
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Name:
RG:
CPF/MF:
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Av. Barbacena 1200 Santo
Agostinho 30190-131 Belo Horizonte, Minas
Gerais, Brazil Tel.: +55 31 3506-5024 Fax +55 31 3506-5025
This text is a
translation, provided for information only. The original text in Portuguese is the legally valid version.
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49
Appendix VII Opinion of the Audit Board
Proposal by the Board of Directors Valuation of RME
OPINION OF THE AUDIT BOARD
The undersigned
members of the Audit Board of Companhia Energética de Minas Gerais Cemig, in the exercise of their functions under the law and the
by-laws,
have examined the Proposal by the Board of Directors to
the Extraordinary General Meeting to be called, in relation to: (a) ratification, in accordance with Article 8 of Law 6404/1976, of the appointment of 3 (three) accounting experts, namely: Flávio de Almeida Araújo, CRC/MG 86.861;
Leonardo Felipe Mesquita, CRC/MG 85260; and Leonardo George de Magalhães, CRC/MG 53.140, for valuation, in the terms of and for the purposes of Article 8 of Law 6404/1976, of the Equity of RME Rio Minas Energia
Participações S.A. RME; (b) approval of the Valuation Opinion on the Equity of RME, carried out in accordance with Law 6404/1976; (c) approval, and authorization of signature with RME, of the Protocol of Absorption and
Justification, to specify the terms and condition that will govern the absorption of RME by Cemig, in accordance with Articles 224 and 225 of Law 6404/1976; and (d) authorization for absorption of RME by Cemig and, subsequently, the consequent
extinction of the absorbed company. It is the opinion of the members of the Audit Board, after carefully analyzing the said proposal and further taking into account that the applicable rules governing the subject have been complied with, that the
proposal should be approved by the said General Meetings of Stockholders.
Belo Horizonte, December 14, 2018.
José Afonso Bicalho B. da Silva
Camila Nunes da C. P. Paulino
Cláudio Morais Machado
Marco
Antônio de Rezende Teixeira
Michele da Silva Gonsales
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Av. Barbacena 1200 Santo
Agostinho 30190-131 Belo Horizonte, Minas
Gerais, Brazil Tel.: +55 31 3506-5024 Fax +55 31 3506-5025
This text is a
translation, provided for information only. The original text in Portuguese is the legally valid version.
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50
Appendix VIII Opinion of the Audit Board
Proposal by the Board of Directors Valuation of Lepsa
OPINION OF THE AUDIT BOARD
The undersigned
members of the Audit Board of Companhia Energética de Minas Gerais Cemig, in the exercise of their functions under the law and the
by-laws,
have examined the Proposal by the Board of Directors to
the Extraordinary General Meeting to be called, in relation to: (a) ratification, in accordance with Article 8 of Law 6404/1976, of the appointment of 3 (three) accounting experts, namely: Flávio de Almeida Araújo, CRC/MG 86.861,
Leonardo Felipe Mesquita, CRC/MG 85.260, and Leonardo George de Magalhães, CRC/MG 53.140, for valuation, in the terms of and for the purposes of Article 8 of Law 6404/1976, of the Equity of Lepsa Rio Minas Energia
Participações S.A. Lepsa; (b) approval of the Valuation Opinion on the Equity of Lepsa, carried out in accordance with Law 6404/1976; (c) approval, and authorization of signature with Lepsa, of the Protocol of Absorption
and Justification, to specify the terms and condition that will govern the absorption of Lepsa by Cemig, in accordance with Articles 224 and 225 of Law 6404/1976; and (d) authorization for absorption of Lepsa by Cemig and, subsequently, the
consequent extinction of the absorbed company. It is the opinion of the members of the Audit Board, after carefully analyzing the said proposal and further taking into account that the applicable rules governing the subject have been complied with,
that the proposal should be approved by the said General Meetings of Stockholders.
Belo Horizonte, December 14, 2018.
José Afonso Bicalho B. da Silva
Camila Nunes da C. P. Paulino
Cláudio Morais Machado
Marco
Antônio de Rezende Teixeira
Michele da Silva Gonsales
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Av. Barbacena 1200 Santo
Agostinho 30190-131 Belo Horizonte, Minas
Gerais, Brazil Tel.: +55 31 3506-5024 Fax +55 31 3506-5025
This text is a
translation, provided for information only. The original text in Portuguese is the legally valid version.
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51
Appendix IX
Election of the Board of Directors:
Information on the candidates nominated by the controlling stockholder
(CVM Instruction 481/09, Article 10 (Items 12.5 to 12.10 of the Reference Form)
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Antônio Rodrigues dos Santos e
Junqueira
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Sitting Member
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Cláudio Araújo
Pinho
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Sitting Member
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José Reinaldo
Magalhães
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Sitting Member
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Márcio Luiz Simões
Utsch
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Sitting Member
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Romeu Donizete Rufino
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Sitting Member
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a. Name
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Antônio Rodrigues dos Santos e Junqueira
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Cláudio Araújo Pinho
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José Reinaldo Magalhães
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b. Date of birth
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July 26, 1983.
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August 24, 1968.
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January 6, 1956.
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c. Profession
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Company manager
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Lawyer
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Economist
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d. CPF or passport
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093.966.667-77
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912.744.867-34
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227.177.906-59
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e. Elected position
occupied:
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Sitting Member, Board of Directors
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Sitting Member, Board of Directors
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Sitting Member, Board of Directors
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f. Date of
election
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March 25, 2019.
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March 25, 2019.
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March 25, 2019.
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g. Date sworn in
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March 25, 2019.
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March 25, 2019.
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March 25, 2019.
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h. Period of
office
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Until AGM of 2020.
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Until AGM of 2020.
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Until AGM of 2020.
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i. Other positions /
functions held in the Issuer
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Does not exercise any other positions in the Issuer.
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Does not exercise any other positions in the Issuer.
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Does not exercise any other positions in the Issuer.
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j. Whether elected
by controlling stockholder or not
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Yes.
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Yes.
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Yes.
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k. Independent member /
criterion
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Information not given.
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Information not given.
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Information not given.
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l. Number of
consecutive periods of office
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0
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0
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0
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Av. Barbacena 1200 Santo
Agostinho 30190-131 Belo Horizonte, Minas
Gerais, Brazil Tel.: +55 31 3506-5024 Fax +55 31 3506-5025
This text is a
translation, provided for information only. The original text in Portuguese is the legally valid version.
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52
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m. Information on:
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Antônio Rodrigues dos Santos e Junqueira
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Cláudio Araújo Pinho
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José Reinaldo Magalhães
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i. Main professional
experience in the last 5 years:
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VINLAND CAPITAL Founding
Partner, and responsible for Analysis of Companies and Shares since May 2018.
BANCO BTG PACTUAL Executive Director and Partner responsible
for Electricity and Water Services Sectors, Sell Side January 2007 to April 2018.
UBS INVESTMENT BANK Companies and Equities Research
Department, January 2005 December 2006.
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Deputy Chair of the Constitutional Law
Committee of the Brazilian Bar Association (OAB), 2016 to date.
Member of the
Instituto Iberoamericano de Derecho Constitucional,
2001date.
Member of the Editorial Board of the Magazine of the Brazilian Infrastructure Institute, 2012date.
Member of the
Instituto Brasileiro de Petróleo
(IBP) 2010date.
Vice-Chair of the Oil and Natural Gas Exploration & Production Committee of the American Bar Association (USA), 20002001.
Second Secretary of the Brazilian Bar Association (OAB), 20046.
Member of the Committee in Defense of the Republic of OAB, Minas Gerais Chapter, 2005.
Constitutional Law Standing Committee of the Brazilian Bar Association (OAB): Chair, 20062009; Member, 2000-2004,
2010-11.
Member of the Constitutional Studies Commission of the Federal Council of the Brazilian Bar Association
(OAB), 2002-2009.
Council Member of the Interamerican Lawyers Federation, 20092018.
Vice-Chair of the Constitutional Law Committee of the Interamerican Lawyers Federation, 2009-2011.
Member of the Editorial Board of the Electronic Magazine of the Brazilian Bar Association (OAB), 2010-2011.
Member of the Oil, Gas and Biofuels Committee of the Brazilian Bar Association (OAB), 201011.
Chair of the Oil, Gas, Energy and Infrastructure Committee of the Brazilian Bar Association (OAB), 201617.
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BR-Investimentos
/ Bozano Investimentos:
Dec. 2009 Sep. 2015:
BR-Investimentos
and Bozano Investimentos Fund Managers managers of FIPs in the Private Equity segment. Member of the Team responsible for the Funds investment and divestment decisions.
PREVI (Banco do Brasil pension fund).
Jan. 2006 to
2008:
PREVI Investments Directorate Institutional Invest Director of Investments.
Banco do Brasil:
July 2004 Dec. 2005:
New York Branch: Assistant Manager.
Dec. 2002 Jun. 2004:
Representative Office Chicago, IL Assistant Manager.
PREVI:
May 1998 Nov. 2002:
Executive
Manager, Department for Planning and Risk Management.
Banco do Brasil:
Aug. 1995 Apr. 1998:
International Directorate/Financial Institutions Division Division Manager.
May 1994 Jul. 1995
Training Program for Managers outside Brazil São Paulo, Austin, TX (USA) and London (UK)
Trainee.
Jan. 1990 Apr. 1994:
Diban/Detec Technical Department, Brasília: Analyst, in
BB-B1,
Banco de Investimentos, and Technical Adviser, in Detec.
Dec. 1983 Dec. 1989
State Supervision Office of Minas Gerais Belo
Horizonte (MG) Technical Adviser.
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Av. Barbacena 1200 Santo
Agostinho 30190-131 Belo Horizonte, Minas
Gerais, Brazil Tel.: +55 31 3506-5024 Fax +55 31 3506-5025
This text is a
translation, provided for information only. The original text in Portuguese is the legally valid version.
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53
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Junqueira
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Pinho
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Magalhães
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ii. State all the
administrative positions that the candidate occupies in other companies or organizations of the third sector
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No
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No
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No
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n. Description of any of
the following events that have taken place in the last 5 years:
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i. any criminal
conviction
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No
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No
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No
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ii. any guilty judgment in
an administrative proceeding of the CVM, and penalties applied
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No
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No
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No
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iii. Any court or
administrative judgment against which there is no further appeal which has suspended or disqualified the person from carrying out any professional or commercial activity.
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No
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No
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No
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12.6. For each of the people who
acted as a member of the Board of Directors or the Audit Board in the last business year, state, in the form of a table, the percentage of participation in meetings held by each body in the period, subsequent to being sworn into the
position.
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0
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0
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0
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Av. Barbacena 1200 Santo
Agostinho 30190-131 Belo Horizonte, Minas
Gerais, Brazil Tel.: +55 31 3506-5024 Fax +55 31 3506-5025
This text is a
translation, provided for information only. The original text in Portuguese is the legally valid version.
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12.7. Please supply the
information mentioned in item 12.5 in relation to the members of the committees formed under the
by-laws,
and also of the audit committee, the risk committee, the finance committee and the remuneration
committee, even if such committees or structures are not created by the Bylaws
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Not applicable.
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Not applicable.
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Not applicable.
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12.8. For each of the people who
acted as a member of the committees established under the
by-laws,
and the audit, risk, financial and remuneration committees, even if such committees are not required to exist under the bylaws, state the
percentage of participation in meetings held by each body in the period, subsequent to being sworn into the position.
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0
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0
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0
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12.9. Information on the existence
of conjugal relationship, stable union or family relationship up to the second level of proximity, between:
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a) managers of the
Issuer
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No
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No
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No
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b) (i) managers of the Issuer
and
(ii) managers of direct or indirect subsidiaries of the Issuer
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No
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No
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No
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Av. Barbacena 1200 Santo
Agostinho 30190-131 Belo Horizonte, Minas
Gerais, Brazil Tel.: +55 31 3506-5024 Fax +55 31 3506-5025
This text is a
translation, provided for information only. The original text in Portuguese is the legally valid version.
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c) (i) managers of the
Issuer or of its direct or indirect subsidiaries and (ii) direct or indirect controlling stockholders of the Issuer
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No
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No
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No
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d) (i) managers of the
Issuer and (ii) managers of companies that direct or indirect controlling stockholders of the Issuer
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No
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No
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No
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12.10. Information on
relationships of subordination, provision of service or control existing in the last three business years between managers Issuer and
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No
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No
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No
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a) Direct or indirect
subsidiary of the Issuer, except where the Issuer directly or indirectly holds 100% of the share capital
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No
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No
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No
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b) Direct or indirect
controlling stockholder of the Issuer
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No
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No
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No
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c) If material, any
supplier, client, debtor or creditor of the Issuer; or of any of its subsidiaries; or of any parent company or subsidiary of any of these
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No
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No
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No
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Av. Barbacena 1200 Santo
Agostinho 30190-131 Belo Horizonte, Minas
Gerais, Brazil Tel.: +55 31 3506-5024 Fax +55 31 3506-5025
This text is a
translation, provided for information only. The original text in Portuguese is the legally valid version.
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6. NOTICE TO STOCKHOLDERS DATED MARCH 1, 2019: REQUEST FOR MULTIPLE VOTING PROCEDURE AND INCLUSION OF 3
CANDIDATES IN THE ELECTION OF THE BOARD OF DIRECTORS AT THE EGM TO BE HELD ON MARCH 25, 2019
57
COMPANHIA ENERGÉTICA DE MINAS GERAIS
CEMIG
LISTED COMPANY
CNPJ
17.155.730/0001-64
NIRE 31300040127
NOTICE TO STOCKHOLDERS
Extraordinary General Meeting of Stockholders of March 25, 2019:
(1) Request for multiple voting procedure
(2) Inclusion of 3 candidates for the Board of Directors
In accordance with CVM Instruction 481/09 and CVM Circular SEP/02/2018, and in accordance with best corporate governance practices,
Cemig
(
Companhia
Energética de Minas Gerais
) (the Company), a listed company with securities traded on the stock exchanges of São Paulo, New York and Madrid, hereby informs the public, the CVM (Brazilian Securities Commission) and the
São Paulo stock exchange (B3) as follows:
On February 28, 2019
Cemig
received from its minority stockholder
Fundo de Investimento em Ações Dinâmica Energia S.A.
(FIA Dinâmica Energia)
a request for adoption of the
multiple voting procedure
in the election of the members of the Board of Directors at the Extraordinary General Meeting
of Stockholders to be held on March 25, 2019 (the EGM), and also nomination, at that general meeting, of candidates for membership of that Board.
On todays date Cemig has
re-presented
the Remote Voting Form with inclusion of the candidates put forward by
FIA Dinâmica Energia
.
Any stockholder that has already submitted a voting instruction for this decision and wishes to alter it should send a
new instruction to the same service provider used previously, on or before March 18, 2019.
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Av. Barbacena 1200 Santo
Agostinho 30190-131 Belo Horizonte, Minas
Gerais, Brazil Tel.: +55 31 3506-5024 Fax +55 31 3506-5025
This text is a
translation, provided for information only. The original text in Portuguese is the legally valid version.
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58
On the following pages are descriptions of the newly nominated candidates, in the standard form given by Clauses 12.5 to 12.10 of the Companys Reference
Form:
Candidate nominated for election to the Board of Directors: (1) Mr. José Pais Rangel
12.5
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Information and professional experience:
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Name
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Date of birth
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Age
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Profession
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José Pais Rangel
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September 9, 1940
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78
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Lawyer
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CPF or Passport number
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Elective position
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Date of election
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Date sworn in
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239.775.667-68
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Board
of Directors
PN shares
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March 25, 2019.
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Period of office
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Other positions or functions
held or exercised in the
Company
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Whether was elected by the controlling stockholder or not
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EGM of 2020
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Member of Audit Committee
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No
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Independent member?
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Number of consecutive periods of office
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Yes
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2
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Professional experience:
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José Pais Rangel, of Brazilian nationality, is a
lawyer with a significant career in listed companies.
He has held the following
positions at the Brazilian Central Bank:
Inspector of Capital Markets Supervisor of Inspection of Capital Markets
Regional Head of Inspection of Capital Markets Head of the Public Debt Department Manager of Market Operations Project Coordinator and executive implementing the
Selic
System in the Brazilian financial market
Founder and Member of the Curator Council of Centrus the Private Pension Plan of the Brazilian Central Bank Coordinator of the Program for Privatization of companies controlled by the Brazilian Central Bank Chair of
the Board of Cia. América Fabril Member of the Board of Directors of Cia. Fábrica de Tecidos Dona Isabel, Advisor to the President of the Republics Office (Seplan)/Special Privatization Committee, CEO of
Cia. Nacional de Tecidos Nova América and Liquidator of the state companies Digibrás (Empresa Digital Brasileira S.A.), Digidata (Eletrônica S.A.); and Proel (Processos Eletrônicos Ltda.).
He currently serves as Deputy CEO of Banco Clássico S.A.; and on the Boards of
Directors of the following listed companies:
CEG (Companhia Distribuidora de Gás do Rio de Janeiro); Tractebel Energia
S.A.; Kepler Weber S.A.; and Cia. Energética de Minas Gerais CEMIG.
He in a
CVM-accredited
Investment Fund Manager.
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Statement of any convictions in criminal or other proceedings
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José Pais Rangel
has no criminal conviction, no adverse judgment in any administrative proceeding of the CVM, nor any conviction in
any judgment against which there is no further appeal, in the judicial or administrative sphere, which has suspended or disqualified him from carrying out any professional or commercial activity.
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Percentage participation in all meetings of the Board in the last business year, since taking office:
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Board member
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% attendance of meetings
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José Pais Rangel
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100%
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Av. Barbacena 1200 Santo
Agostinho 30190-131 Belo Horizonte, Minas
Gerais, Brazil Tel.: +55 31 3506-5024 Fax +55 31 3506-5025
This text is a
translation, provided for information only. The original text in Portuguese is the legally valid version.
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59
(1) Mr. José Pais Rangel Page 2 of 2
12.7
|
Information mentioned in item 12.5 in relation to the members of the committees formed under the
by-laws,
and also the audit committee, the risk committee, the finance committee and the remuneration committee, even if such committees or structures are formed under the
by-laws.
|
Member of the Audit Committee.
12.8
|
Information on activity as a member of the committees formed under the
by-laws,
and/or of the audit, risk, finance or remuneration committee/s:
|
Member of the Audit Committee.
12.9.
|
Information on the existence of conjugal relationship, stable union or family relationship up to the third
level of proximity, between:
|
a.
|
Managers of the company
|
There is no family relationship between the persons nominated.
b.
|
(i) managers of the Company and (ii) managers of direct or indirect subsidiaries of the Company
|
There is no family relationship between the persons nominated for membership of the Board of Directors and the managers and/or
members of the Boards of Directors of companies directly or indirectly controlled by the Company.
c.
|
(i) managers of the Company or of its direct or indirect subsidiaries and (ii) direct or
indirect controlling stockholders of the Company
|
There is no family relationship between the persons nominated for membership of
the Board of Directors and the controlling stockholders of the Company.
d.
|
(i) managers of the Company and (ii) managers of the companies that directly or indirectly
control the Company
|
There is no family relationship between the persons nominated for membership of the Board of Directors and
the managers and/or members of companies directly or indirectly controlling the Company.
12.10.
|
Information on relationships of subordination, provision of service or control existing in the last three
business years between managers of the Company and
|
a.
|
Any company directly or indirectly controlled by the Company
|
Not applicable, since there are no relationships of subordination, of provision of services or of control between the person nominated for the Board of
Directors (other than those relating to the exercise of the duties of his respective positions in the Company), the Company and the controlling stockholders of the Company.
b.
|
Any party that is direct or indirect holder of control of the Company
|
Not applicable, since there are no relationships of subordination, of provision of services or of control between the person nominated for the Board of
Directors (other than those relating to the exercise of the duties of his respective positions in the Company), the Company and the controlling stockholders of the Company.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Av. Barbacena 1200 Santo
Agostinho 30190-131 Belo Horizonte, Minas
Gerais, 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.
|
60
c.
|
If material, any supplier, client, debtor or creditor of the Company, or of any of its subsidiaries, or
parent companies, or subsidiaries of any of these
|
Not applicable, since there are no relationships of subordination, of
provision of services or of control between the person nominated for the Board of Directors (other than those relating to the exercise of the duties of his respective positions in the Company), the Company and/or any of its subsidiary companies or
controlling stockholders.
Candidate nominated for election to the Board of Directors:
(2) Mr. José João Abdalla Filho
12.5
|
Information and professional experience:
|
|
|
|
|
|
|
|
Name
|
|
Date of birth
|
|
Age
|
|
Profession
|
José João Abdalla Filho
|
|
May 30, 1945
|
|
73
|
|
Banker
|
CPF or Passport number
|
|
Elective position
|
|
Date of election
|
|
Date sworn in
|
245.730.788-00
|
|
Board of Directors ON shares Minority stockholders
|
|
March 25, 2019
|
|
|
Period of office
|
|
Other positions or functions
held or exercised in the
Company
|
|
Whether was elected by the controlling stockholder or not
|
EGM of 2020
|
|
Not applicable.
|
|
No
|
Independent member?
|
|
Number of consecutive periods of office
|
Yes
|
|
2
|
Professional experience
|
José João Abdalla Filho is CEO of Banco
Clássico S.A. He is:
A Substitute Member of the Board of Directors of CEG
(Companhia Distribuidora de Gás do Rio de Janeiro);
a Substitute Member of
the Board of Directors of Tractebel Energia S.A.;
CEO of Dinâmica Energia
S.A.; and CEO of Social S.A. Mineração e Intercâmbio Comercial e Industrial.
He was mayor of Juiz de Fora, from Jan. 2008 to Dec. 20012; and serves as a Substitute Member of the Boards of Directors of Cemig D and Cemig GT, companies of
the same economic group as Cemig, since 2014.
|
Statement of any convictions in criminal or other proceedings
|
Mr.
José João Abdalla Filho
has no criminal conviction, no adverse judgment in any administrative
proceeding of the CVM, nor any conviction in any judgment against which there is no further appeal, in the judicial or administrative sphere, which has suspended or disqualified him from carrying out any professional or commercial
activity.
|
Percentage participation in all meetings of the Board in the last business year, since taking office:
|
|
|
Board member
|
|
% attendance of meetings
|
José João Abdalla Filho
|
|
65%
|
12.7
|
Information mentioned in item 12.5 in relation to the members of the committees formed under the
by-laws,
and also the audit committee, the risk committee, the finance committee and the remuneration committee, even if such committees or structures are formed under the
by-laws.
|
Not applicable.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Av. Barbacena 1200 Santo
Agostinho 30190-131 Belo Horizonte, Minas
Gerais, 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.
|
61
(2) Mr. José João Abdalla Filho Page 2 of 2
12.8
|
Information on activity as a member of the committees formed under the
by-laws,
and/or of the audit, risk, finance or remuneration committee/s:
|
Not
applicable.
12.9.
|
Information on the existence of conjugal relationship, stable union or family relationship up to the third
level of proximity, between:
|
a.
|
Managers of the company.
|
There is no family relationship between the persons nominated.
b.
|
(i) managers of the Company and (ii) managers of direct or indirect subsidiaries of the Company
|
There is no family relationship between the persons nominated for membership of the Board of Directors and the managers and/or
members of the Boards of Directors of companies directly or indirectly controlled by the Company.
c.
|
(i) managers of the Company or of its direct or indirect subsidiaries and (ii) direct or
indirect controlling stockholders of the Company
|
There is no family relationship between the persons nominated for membership of
the Board of Directors and the controlling stockholders of the Company.
d.
|
(i) managers of the Company and (ii) managers of the companies that directly or indirectly
control the Company
|
There is no family relationship between the persons nominated for membership of the Board of Directors and
the managers and/or members of companies directly or indirectly controlling the Company.
12.10.
|
Information on relationships of subordination, provision of service or control existing in the last three
business years between managers of the Company and
|
a.
|
Any company directly or indirectly controlled by the Company
|
Not applicable, since there are no relationships of subordination, of provision of services or of control between the person nominated for the Board of
Directors (other than those relating to the exercise of the duties of his respective positions in the Company), the Company and the controlling stockholders of the Company.
b. Any party that is direct or indirect holder of control of the Company
Not applicable, since there are no relationships of subordination, of provision of services or of control between the person nominated for the Board of
Directors (other than those relating to the exercise of the duties of his respective positions in the Company), the Company and the controlling stockholders of the Company.
c. If material, any supplier, client, debtor or creditor of the Company, or of any of its subsidiaries, or parent companies, or subsidiaries of any of
these
Not applicable, since there are no relationships of subordination, of provision of services or of control between the person nominated for
the Board of Directors (other than those relating to the exercise of the duties of his respective positions in the Company), the Company and/or any of its subsidiary companies or controlling stockholders.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Av. Barbacena 1200 Santo
Agostinho 30190-131 Belo Horizonte, Minas
Gerais, 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.
|
62
Candidate nominated for election to the Board of Directors: (3) Mr. Marcelo Gasparino da Silva
12.5
|
Information and professional experience:
|
|
|
|
|
|
|
|
Name
|
|
Date of birth
|
|
Age
|
|
Profession
|
Marcelo Gasparino da Silva
|
|
February 13, 1971
|
|
48
|
|
Counsel
|
CPF or Passport number
|
|
Elective position
|
|
Date of election
|
|
Date sworn in
|
807.383.469-34
|
|
Board of Directors ON Shares Multiple Vote
|
|
March 25, 2019
|
|
|
Period of office
|
|
Other positions or functions
held or exercised in the
Company
|
|
Whether was elected by the controlling stockholder or not
|
EGM of 2020
|
|
Not applicable.
|
|
No
|
Independent member?
|
|
Number of consecutive periods of office
|
Yes
|
|
03
|
Professional experience:
|
In listed companies Mr. Marcelo Gasparino da Silva
has served as a Member of Boards of Directors and Audit Boards; Chair of the Board of Directors, and member and coordinator of finance, audit, risks, legal and related party committees. He is a lawyer specializing in corporate tax law, with a degree
from ESAG, and MBA course in progress in Controllership, Auditing and Finance.
He
currently serves as Chair of the Board of Directors of Eternit; as a member of the Boards of Directors of Cemig, Celesc, and Kepler Weber; and is a member of the Audit Board of Braskem.
He has served as Chair of the Board of Directors of Usiminas, as a member of the Boards
of Directors of Bradespar, Eletrobras, Tecnisa, SC Gás and Vale, and as a member of the Audit Board of Bradespar, AES Eletropaulo, AES Tietê, Eletrobras, Renuka Brasil and Petrobras.
In law, he was CEO of the Gasparino, Sachet, Roman, Barros & Marchiori law
office, practicing until 2006.
He began his executive career as Legal and
Institutional Director of Celesc in 2007.
He participated in the 2016 FGV
(IBE/FGV/IDE) CEO program, and in London attended the London Business School Executive Program on Mergers and Acquisition, and courses in finance and strategy at the Institute of Directors.
In the Brazilian Corporate Governance Institute (IBGC), he is Coordinator of the Santa
Catarina State Chapter, Holder of Board Member Certification from, and a member of the Council.
He is a member of the Technical Committee of the Capital Markets Investors Association (AMEC), and has a strong body of knowledge in corporate governance
and experience on Boards of Directors and Audit Boards. He contributed to the efforts of IBGC (Brazilian Corporate Governance Association) and AMEC in construction of the Brazilian Code of Corporate Governance (CBGC) and since its launch has
inserted it as an instrument of work in all the companies where he serves, especially the APPLY OR EXPLAIN discipline and method which recognizes that the practice of Corporate Governance is a process, not to be understood as a model of
rigid rules equally applicable to all companies.
He has worked in companies in:
electricity generation, transmission and distribution; oil and natural gas; mining, steel and steel manufacturing; ports, warehousing, and basic industries; construction, construction materials and finishings; vehicle distribution; and holding
companies acquiring knowledge and skills in industry, trade, retailing and services that enable him to make a constructive contribution in a very wide range of subjects and sites that are dealt with in the Boards in which he participates
such as turnarounds, capital structure, judicial recovery, M&A, sales of
non-core
assets, and executive succession.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Av. Barbacena 1200 Santo
Agostinho 30190-131 Belo Horizonte, Minas
Gerais, 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.
|
63
(3) Mr. Marcelo Gasparino da Silva Page 2 of 3
|
Statement of any convictions in criminal or other proceedings
|
Mr.
Marcelo Gasparino da Silva
has no criminal conviction, no adverse judgment in any administrative proceeding of the CVM, nor any
conviction in any judgment against which there is no further appeal, in the judicial or administrative sphere, which has suspended or disqualified him from carrying out any professional or commercial activity.
|
12.6
|
Percentage participation in all meetings of the Board in last business year, since taking office:
|
|
|
|
Board member
|
|
% attendance of meetings
|
Marcelo
Gasparino da Silva
|
|
100%
|
12.7
|
Information mentioned in item 12.5 in relation to the members of the committees formed under the
by-laws,
and also the audit committee, the risk committee, the finance committee and the remuneration committee, even if such committees or structures are formed under the
by-laws.
|
Not applicable.
12.8
|
Information on activity as a member of the committees formed under the
by-laws,
and/or of the audit, risk, finance or remuneration committee/s:
|
Not
applicable.
12.9.
|
Information on the existence of conjugal relationship, stable union or family relationship up to the third
level of proximity, between:
|
a.
|
Managers of the company.
|
There is no family relationship between the persons nominated.
b.
|
(i) managers of the Company and (ii) managers of direct or indirect subsidiaries of the Company
|
There is no family relationship between the persons nominated for membership of the Board of Directors and the managers and/or
members of the Boards of Directors of companies directly or indirectly controlled by the Company.
c.
|
(i) managers of the Company or of its direct or indirect subsidiaries and (ii) direct or
indirect controlling stockholders of the Company
|
There is no family relationship between the persons nominated for membership of
the Board of Directors and the controlling stockholders of the Company.
d.
|
(i) managers of the Company and (ii) managers of the companies that directly or indirectly
control the Company
|
There is no family relationship between the persons nominated for membership of the Board of Directors and
the managers and/or members of the Audit Boards of companies directly or indirectly controlled by the Company.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Av. Barbacena 1200 Santo
Agostinho 30190-131 Belo Horizonte, Minas
Gerais, 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.
|
64
(3) Mr. Marcelo Gasparino da Silva Page 3 of 3
12.10.
|
Information on relationships of subordination, provision of service or control existing in the last three
business years between managers of the Company and
|
a.
|
Any company directly or indirectly controlled by the Company
|
Not applicable, since there are no relationships of subordination, of provision of services or of control between the person nominated for the Board of
Directors (other than those relating to the exercise of the duties of his respective positions in the Company), the Company and the controlling stockholders of the Company.
b.
|
Any party that is direct or indirect holder of control of the Company
|
Not applicable, since there are no relationships of subordination, of provision of services or of control between the person nominated for the Board of
Directors (other than those relating to the exercise of the duties of his respective positions in the Company), the Company and the controlling stockholders of the Company.
c.
|
If material, any supplier, client, debtor or creditor of the Company, or of any of its subsidiaries, or
parent companies, or subsidiaries of any of these
|
Not applicable, since there are no relationships of subordination, of
provision of services or of control between the person nominated for the Board of Directors (other than those relating to the exercise of the duties of his respective positions in the Company), the Company and/or any of its subsidiary companies or
controlling stockholders.
* *
Purpose of this Notice
The purpose of this Notice is to
provide optimum instruction and background to stockholders in the decisions to be taken at the EGM referred to.
Belo Horizonte,
March 1, 2019.
Maurício Fernandes Leonardo Júnior
Chief Finance and Investor Relations Officer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Av. Barbacena 1200 Santo
Agostinho 30190-131 Belo Horizonte, Minas
Gerais, 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.
|
65
7. NOTICE TO STOCKHOLDERS DATED MARCH 1, 2019: SUBSTITUTION OF CANDIDATE IN THE ELECTION OF THE BOARD OF
DIRECTORS AT THE EGM TO BE HELD ON MARCH 25, 2019
66
COMPANHIA ENERGÉTICA DE MINAS GERAIS CEMIG
LISTED COMPANY CNPJ
17.155.730/0001-64
NIRE 31300040127
NOTICE TO STOCKHOLDERS
Extraordinary General Meeting of Stockholders of March 25, 2019
Substitution of candidate
In accordance
with CVM Instruction 481/09 and CVM Circular SEP/02/2018, and in accordance with best corporate governance practices,
Cemig
(
Companhia Energética de Minas Gerais
) (the Company), a listed company with securities
traded on the stock exchanges of São Paulo, New York and Madrid, hereby informs the public, the CVM (Brazilian Securities Commission) and the São Paulo stock exchange (B3) as follows:
On February 28, 2019 Cemig received from its majority stockholder
The State of Minas Gerais
a request for
replacement of the candidate
Cláudio Araújo Pinho
by the candidate
Cledorvino Belini
in the election of members of the
Board of Directors
at the Extraordinary General Meeting of Stockholders to be held on March 25, 2019 (the
EGM).
Cemig has today
re-presented
the Remote Voting Form including this substitution.
Any votes already given for the substituted candidate will be considered as not being valid. We recommend that any stockholder wishing to make a new
instruction should send it to the same service provider used previously, by March 18, 2019.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Av. Barbacena 1200 Santo
Agostinho 30190-131 Belo Horizonte, Minas
Gerais, 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.
|
67
Candidate nominated for election to the Board of Directors: (1) Mr. Cledorvino Belini
12.5
|
Information and professional experience:
|
|
|
|
|
|
|
|
Name
|
|
Date of birth
|
|
Age
|
|
Profession
|
Cledorvino Belini
|
|
May 3, 1949
|
|
69
|
|
Administration
|
CPF or Passport number
|
|
Elective position
|
|
Date of election
|
|
Date sworn in
|
116.050.068-15
|
|
Board
of Directors
ON shares
|
|
March 25, 2019
|
|
|
Period of office
|
|
Other positions or functions
held or exercised in the
Company
|
|
Whether was elected by the controlling stockholder or not
|
EGM of 2020
|
|
Chief Executive Officer
|
|
Yes
|
Independent member?
|
|
Number of consecutive periods of office
|
No
|
|
0
|
Professional experience:
|
Since February 2019 Mr.
Cledorvino Belini
has served as
CEO of Cemig.
From Nov. 2015 to Jun. 2017 he was President
for Latin America Development of Fiat Chrysler Automobiles.
He has served as an
Independent Member of the Boards of Directors of:
JBS, Since October 2017; and Odebrecht Holding, since August 2018.
He was CEO for Latin America of Fiat Automóveis / FCA, from 20042015.
Since 2007 he has been Vice-President of
Instituto Minas Pela Paz
(IMPP), an NGO
created at the initiative of the Minas Gerais State Industries Federation (Fiemg).
|
Statement of any convictions in criminal or other proceedings
|
Mr. Belini has no criminal conviction, no adverse judgment in any administrative proceeding of the CVM, nor any conviction in any judgment
against which there is no further appeal, in the judicial or administrative sphere, which has suspended or disqualified him from carrying out any professional or commercial activity.
|
12.6
|
Percentage participation in all meetings of the Board in last business year, since taking office:
|
|
|
|
Board member
|
|
% attendance of meetings
|
Cledorvino Belini
|
|
0%
|
12.7
|
Information mentioned in item 12.5 in relation to the members of the committees formed under the
by-laws,
and also the audit committee, the risk committee, the finance committee and the remuneration committee, even if such committees or structures are formed under the
by-laws.
|
Not applicable.
12.8
|
Information on activity as a member of the committees formed under the
by-laws,
and/or of the audit, risk, finance or remuneration committee/s:
|
Not
applicable.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Av. Barbacena 1200 Santo
Agostinho 30190-131 Belo Horizonte, Minas
Gerais, 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.
|
68
12.9.
|
Information on the existence of conjugal relationship, stable union or family relationship up to the third
level of proximity, between:
|
a.
|
Managers of the company
|
There is no family relationship between the persons nominated.
b.
|
(i) managers of the Company and (ii) managers of direct or indirect subsidiaries of the Company
|
There is no family relationship between the persons nominated for membership of the Board of Directors and the managers and/or
members of the Boards of Directors of companies directly or indirectly controlled by the Company.
c.
|
(i) managers of the Company or of its direct or indirect subsidiaries and (ii) direct or
indirect controlling stockholders of the Company
|
There is no family relationship between the persons nominated for membership of
the Board of Directors and the controlling stockholders of the Company.
d.
|
(i) managers of the Company and (ii) managers of the companies that directly or indirectly
control the Company
|
There is no family relationship between the persons nominated for membership of the Board of Directors and
the managers and/or members of companies directly or indirectly controlling the Company.
12.10.
|
Information on relationships of subordination, provision of service or control existing in the last three
business years between managers of the Company and
|
a.
|
Any company directly or indirectly controlled by the Company
|
Not applicable, since there are no relationships of subordination, of provision of services or of control between the person nominated for the Board of
Directors (other than those relating to the exercise of the duties of his respective positions in the Company), the Company and the controlling stockholders of the Company.
b.
|
Any party that is direct or indirect holder of control of the Company
|
Not applicable, since there are no relationships of subordination, of provision of services or of control between the person nominated for the Board of
Directors (other than those relating to the exercise of the duties of his respective positions in the Company), the Company and the controlling stockholders of the Company.
c.
|
If material, any supplier, client, debtor or creditor of the Company, or of any of its subsidiaries, or
parent companies, or subsidiaries of any of these
|
Not applicable, since there are no relationships of subordination, of
provision of services or of control between the person nominated for the Board of Directors (other than those relating to the exercise of the duties of his respective positions in the Company), the Company and/or any of its subsidiary companies or
controlling stockholders.
* *
Purpose of this Notice
The purpose of this Notice is to
provide optimum instruction and background to stockholders in the decisions to be taken at the EGM referred to.
Belo Horizonte,
March 1, 2019.
Maurício Fernandes Leonardo Júnior
Chief Finance and Investor Relations Officer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Av. Barbacena 1200 Santo
Agostinho 30190-131 Belo Horizonte, Minas
Gerais, 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.
|
69
8. MARKET NOTICE DATED MARCH 14, 2019: CHANGES TO THE REMOTE VOTING FORM FOR THE EGM TO BE HELD ON
MARCH 25, 2019
70
COMPANHIA ENERGÉTICA DE MINAS GERAIS CEMIG
LISTED COMPANY CNPJ
17.155.730/0001-64
NIRE 31300040127
MARKET NOTICE
March 25 EGM: Changes to the remote voting form
In accordance with Chapter
III-A
of Appendix
21-F
to CVM Instruction 481/2009,
Cemig
(
Companhia Energética de Minas Gerais,
listed with securities traded on the stock exchanges of São Paulo, New York and Madrid)
hereby informs the
Brazilian Securities Commission (CVM), the São
Paulo Stock Exchange (B3), its stockholders and the general public
as follows:
Cemig has
re-presented
the
Remote Voting Form
for the
Extraordinary General Meeting of Stockholders
to be held on
March
25
, 2019, at 11 a.m. (the EGM).
The changes made arise from receipt by the Company of Official Letter Nº
81/2019/CVM/SEP/GEA-1,
dated March 13, 2019. They are:
|
a)
|
Inclusion of the candidate
Marcelo Gasparino da Silva
(proposed as sitting member by the Minority
Stockholders) in the
Election of the Board of Directors by Candidate
Items 3 and 5; and, consequently, exclusion of Items 14 and 15.
|
|
b)
|
Exclusion of Items 8 and 9.
|
Votes given by stockholders in relation to Items 8, 9, 14 and 15 will be deemed not to be valid.
To prevent a voting instruction being considered to be conflicted, it is recommended that the stockholder should send any new voting
instruction to the same service provider previously used, still obeying, for submission of the new Remote Voting Form, the cutoff date of seven days prior to the date on which the EGM is held.
For further information, contact Cemig by email on: ri@cemig.com.br
Belo Horizonte, March 14, 2019.
Maurício Fernandes Leonardo Júnior
Chief Finance and Investor Relations Officer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Av. Barbacena 1200 Santo
Agostinho 30190-131 Belo Horizonte, Minas
Gerais, 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.
|
71
9. SUMMARY OF PRINCIPAL DECISIONS OF THE 754
TH
MEETING OF
THE BOARD OF DIRECTORS DATED MARCH 21, 2019
72
COMPANHIA ENERGÉTICA DE MINAS GERAIS CEMIG
LISTED COMPANY CNPJ
17.155.730/0001-64
NIRE 31300040127
BOARD OF DIRECTORS
Meeting of March 21, 2019
SUMMARY OF PRINCIPAL DECISIONS
At its
754
th
meeting, held on March 21, 2019, the Board of Directors of
Companhia Energética de Minas Gerais
decided the following:
|
|
Grant of Surety to Renova;
|
|
|
Injection of capital by LightCom into Light.
|
2.
|
Mr. Ronaldo Gomes de Abreu no longer to be Interim Chief Generation and Transmission Officer, but to
continue to be Chief Distribution Officer, and also interim Chief Corporate Management Officer.
|
3.
|
Election of Mr. Paulo Mota Henriques to the post of Chief Generation and Transmission Officer.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Av. Barbacena 1200 Santo
Agostinho 30190-131 Belo Horizonte, Minas
Gerais, 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.
|
73
10. MATERIAL ANNOUNCEMENT DATED MARCH 21, 2019: SIGNATURE OF CONTRACT FOR ACQUISITION OF AN EQUITY
INTEREST IN RENOVA AND PUBLIC OFFER TO ACQUIRE SHARES
74
COMPANHIA
ENERGÉTICA DE MINAS GERAIS CEMIG
LISTED COMPANY CNPJ
17.155.730/0001-64
NIRE 31300040127
CEMIG GERAÇÃO E TRANSMISSÃO S.A.
LISTED COMPANY CNPJ
06.981.176/0001-58
NIRE 31300020550
MATERIAL ANNOUNCEMENT
Acquisition of interests in Renova
In
accordance with CVM Instruction 358 of January 3, 2002 as amended,
Cemig
(
Companhia Energética de Minas Gerais
(listed, with securities traded on the stock exchanges of São Paulo, New York and Madrid), and its
wholly-owned subsidiary
Cemig Geração e Transmissão S.A.
(
Cemig GT
), a Brazilian corporation registered for listing,
hereby
inform
the public, the Brazilian Securities Commission (CVM),
the São Paulo stock exchange (B3), and the market in general
as follows:
I.
|
Signature of Contract for Acquisition of an Equity Interest in Renova Energia S.A. (Renova) and
Public Offer to Acquire Shares
|
|
1.1.
|
A Share Purchase Agreement (the Agreement) was signed on todays date governing acquisition by
Cemig GT
and
Light Energia S.A.
(
Light Energia
) of up to 7,282,036 shares in Renova, of which 6,637,878 are common shares and 644,158 are preferred shares, all nominal and without par value, and all owned by
CG I Fundo de Investimento em Participações
(
CG I
) and certain related parties of CG I (the Share Acquisition). The shares to be acquired from CGI include the shares currently bound by the
Stockholders Agreement of Renova, signed on December 19, 2014 (the Stockholders Agreement).
|
|
1.2.
|
Under the Agreement, the shares owned by CGI will be acquired in the proportion of 67.85% by
Cemig GT
and 32.15% by
Light Energia
, and, in consideration, CG I will receive securities issued by Light Energia and securities issued by Cemig GT (as described below), subject to the proportion stated above, and corresponding to the nominal
value of R$ 14.68 per share in Renova, both common and preferred (the Exchange Ratio). The Exchange Ratio will be subject to adjustments arising, among other factors, from (i) the costs incurred for regularization of landholdings of
Renova; and (ii) existence of certain contingencies up to the date of closing of the transaction (the Closing).
|
|
1.3.
|
The Agreement also provides that certain common shares owned by CGI shall be converted into preferred shares,
enabling Cemig GT to form Units in Renova in the terms specified in Article 54 of the
by-laws
of Renova. After the Closing, these transactions will result in Cemig GT being the owner of 50% or less
of the common shares in Renova. Under the Agreement, Cemig GT and Light Energia must notify BNDES Participações S.A. (BNDESPar) for it to state its position on exercise (or not) of its
(tag-along)
right to joint sale, as specified in the stockholders agreement signed on November 6, 2012.
|
|
1.4.
|
The Closing of the Acquisition of Shares is subject to compliance with the conditions that are usual in this
type of transaction, and to completion of the acts of financial restructuring of Renova.
|
|
1.5.
|
Also, the Board of Directors of Cemig GT have approved, subject to the Closing of the Acquisition of Shares, a
Public Offer to Acquire Shares in Renova, to be made by Cemig GT and Light Energia, on a date to be announced, in which the stockholders of Renova will be offered equal treatment to that being offered to CG I (the Public Offer to Acquire
Shares).
|
|
|
|
|
|
|
|
|
|
|
|
Av. Barbacena 1200 Santo
Agostinho 30190-131 Belo Horizonte, Minas
Gerais, 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.
|
75
II.
|
Re-profiling
of the debts between related parties
|
|
2.1.
|
Further, on todays date, the Board of Directors of Cemig GT has approved lengthening and restructuring of
the credit of R$ 768 million (base: March 2019) held by Cemig GT against Renova (the Cemig GT Credit). As part of the financial restructuring of Renova, both the Cemig GT Credit and the credit held by Light Comercializadora de
Energia S.A. (
LightCom
), in the amount of R$ 253 million (base: March 2019) (The LightCom Credit) will be
re-profiled
into the following instruments:
|
|
2.2.
|
Securities issued by Renova and subscribed by Cemig GT and Light Energia in the total amount of approximately
R$ 298 million (base: March 2019), with maturity at six years, grace period of one year, and interest of 155% of the CDI rate, with asset guarantee and surety guarantee, which will be used for the Acquisition of Shares (and/or, as the case may
be, for acquisition of the shares owned by BNDESPar and the shares in circulation in the market, in the Public Offer to Acquire Shares).
|
|
2.3.
|
The remaining balance of the Cemig GT Credits and the LightCom credits will be reprofiled substantially in the
form of Debt Recognition Agreements (TARDs) or securities subscribed by Cemig GT and LightCom, in the amount of approximately R$ 723 million (base: March 2019), issued by Renova with six year maturity, payment bullet, interest at
155% of the CDI rate, and asset guarantee.
|
|
2.4.
|
Conclusion of the reprofiling of the Cemig GT credits and the LightCom credits will be subject to the
conditions that are usual in this type of transaction.
|
|
2.5.
|
The reprofiling of the Cemig GT credits and the LightCom Credits, and the acquisition of the shares held by CG
I, using part of the credits, will be jointly-executed and mutually contingent transactions, taking effect as a single transaction.
|
Cemig will keep its stockholders and the market opportunely and appropriately informed on developments on the matters that are the subject of this Material
Announcement.
Belo Horizonte, March 21, 2019.
Maurício Fernandes Leonardo Júnior
Chief Finance and Investor Relations Officer
|
|
|
|
|
|
|
|
|
|
|
Av. Barbacena 1200 Santo
Agostinho 30190-131 Belo Horizonte, Minas
Gerais, 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.
|
76
11. MATERIAL ANNOUNCEMENT DATED MARCH 21, 2019: RENOVAS BOARD OF DIRECTORS DELIBERATED TO ACCEPT
AES OFFER FOR ALTO SERTÃO III WIND COMPLEX
77
COMPANHIA ENERGÉTICA DE MINAS GERAIS CEMIG
LISTED COMPANY CNPJ
17.155.730/0001-64
NIRE 31300040127
MATERIAL ANNOUNCEMENT
Renova Board: AES offer for Alto Sertão III accepted
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:
Today Cemigs affiliated company Renova Energia S.A. (
Renova
) has published the following Material Announcement:
|
Renova Energia SA (RNEW11) (Company), in compliance with CVM Instruction 358/2002, as amended,
informs its shareholders and the market in general that the Companys Board of Directors deliberated to accept the new binding offer presented by AES Tietê Energia S.A. (AES), for the acquisition of the shares representing the
totality of the capital of special purpose entities that make up the Alto Sertão III wind complex (Transaction).
|
The
transaction is still subject to satisfactory negotiation of final documents between the parties involved, which should include, among other provisions, accomplishment of precedent conditions and the required approvals for its conclusion.
The Company reiterates its commitment to keep the shareholders and the market in general
informed in accordance with applicable legislation.
Belo Horizonte, March 21, 2019.
Maurício Fernandes Leonardo Júnior
Chief Finance and Investor Relations Officer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Av. Barbacena 1200 Santo
Agostinho 30190-131 Belo Horizonte, Minas
Gerais, 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.
|
78
12. SUMMARY OF PRINCIPAL DECISIONS OF THE 755
TH
MEETING
OF THE BOARD OF DIRECTORS DATED MARCH 21, 2019
79
COMPANHIA ENERGÉTICA DE MINAS GERAIS CEMIG
LISTED COMPANY CNPJ
17.155.730/0001-64
NIRE 31300040127
BOARD OF DIRECTORS
Meeting of March 21, 2019
SUMMARY OF PRINCIPAL DECISIONS
At its
755
th
meeting, held on March 21, 2019, the Board of Directors of
Companhia Energética de Minas Gerais
decided the following:
1.
|
Mr. Ronaldo Gomes de Abreu no longer to be Interim Chief Generation and Transmission Officer, but to
continue to be Chief Distribution Officer, and also interim Chief Corporate Management Officer.
|
2.
|
Election of Mr. Paulo Mota Henriques to the post of Chief Generation and Transmission Officer.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Av. Barbacena 1200 Santo
Agostinho 30190-131 Belo Horizonte, Minas
Gerais, 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.
|
80
13. SUMMARY OF PRINCIPAL DECISIONS OF THE 757
TH
MEETING
OF THE BOARD OF DIRECTORS DATED MARCH 28, 2019
81
COMPANHIA ENERGÉTICA DE MINAS GERAIS CEMIG
LISTED COMPANY CNPJ
17.155.730/0001-64
NIRE 31300040127
BOARD OF DIRECTORS
Meeting of March 28, 2019
SUMMARY OF PRINCIPAL DECISIONS
At its
757
th
meeting, held on March 28, 2019, the Board of Directors of
Cemig
(
Companhia Energética de Minas Gerais
) decided the following:
1.
|
Actuarial updating and reconciliation Forluz (
Fundação Forluminas de Seguridade
Social
).
|
2.
|
Technical feasibility study for realization of tax credits (CVM Instruction 371).
|
3.
|
Report of Management and Financial Statements for the 2018 business year.
|
4.
|
Allocation of the net profit for the 2018 business year.
|
5.
|
Convocation of Annual General Meeting to be held on April 30, 2019, at 11 a.m.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Av. Barbacena 1200 Santo
Agostinho 30190-131 Belo Horizonte, Minas
Gerais, 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.
|
82
14. EARNINGS RELEASE 4Q2018: PUBLICATION OF RESULTS DATED APRIL 3, 2019
83
PUBLICATION OF RESULTS
CEMIG REPORTS
4Q18
EBITDA
R$ 989 MILLION
Main factors in 4Q18:
|
◾
|
Gain of
R$ 378 mn
on
sales of telecom assets.
|
|
◾
|
Lower equity method loss
, of
R$ 104 mn
, from
non-consolidated
investees.
|
|
◾
|
R$ 119 mn loss with restatement of prior equity holding in the subsidiaries acquired
, on elimination of
crossover stockholdings (Windfarms, Light and Lightger).
|
|
◾
|
Net financial revenues in the year gains related to the Eurobond issue:
R$ 570 mn on hedge
instruments
; and
R$
199 mn in exchange rate variation
(Eurobond)
.
|
|
◾
|
Covenant Net debt of R$ 22,984 mn
(with Eurobonds adjusments).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Indicators (GWh)
|
|
4Q18
|
|
|
4Q17
|
|
|
%
|
|
|
2018
|
|
|
2017
|
|
|
%
|
|
Electricity sold (excluding CCEE)
|
|
|
14,340
|
|
|
|
14,426
|
|
|
|
(0.60
|
)
|
|
|
55,555
|
|
|
|
55,277
|
|
|
|
0.50
|
|
Indicators (R$ 000)
|
|
4Q18
|
|
|
4Q17
|
|
|
%
|
|
|
2018
|
|
|
2017
|
|
|
%
|
|
Sales on CCEE
|
|
|
28
|
|
|
|
324
|
|
|
|
(91.36
|
)
|
|
|
217
|
|
|
|
860
|
|
|
|
(74.77
|
)
|
Net Debt
|
|
|
13,069
|
|
|
|
12,279
|
|
|
|
6.43
|
|
|
|
13,069
|
|
|
|
12,279
|
|
|
|
6.43
|
|
Gross revenue
|
|
|
8,967
|
|
|
|
9,401
|
|
|
|
(4.62
|
)
|
|
|
34,578
|
|
|
|
32,862
|
|
|
|
5.22
|
|
Net revenue
|
|
|
5,472
|
|
|
|
6,558
|
|
|
|
(16.56
|
)
|
|
|
22,266
|
|
|
|
21,712
|
|
|
|
2.55
|
|
Ebitda (IFRS)
|
|
|
989
|
|
|
|
1,552
|
|
|
|
(36.28
|
)
|
|
|
3,781
|
|
|
|
3,492
|
|
|
|
8.28
|
|
Net profit
|
|
|
1,002
|
|
|
|
604
|
|
|
|
65.89
|
|
|
|
1,700
|
|
|
|
1,001
|
|
|
|
69.83
|
|
Ebitda Margem
|
|
|
18.82%
|
|
|
|
23.67%
|
|
|
|
-4.85pp
|
|
|
|
16.98%
|
|
|
|
16.09%
|
|
|
|
0.89pp
|
|
Covenant Net debt/Covenant Ebitda (Eurobond)
|
|
|
3.21
|
|
|
|
3.58
|
|
|
|
(10,34
|
)
|
|
|
3.21
|
|
|
|
3.58
|
|
|
|
(10,34
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Av. Barbacena 1200 Santo
Agostinho 30190-131 Belo Horizonte, Minas
Gerais, 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.
|
84
Conference call
Publication of 4Q18 results
Webcast and Conference call
Wednesday, April 3, 2019, 2 p.m. Brasília time
The transmission will have simultaneous translation in English and can be seen by Webcast, at http://ri.cemig.com.br, or through conference call on:
+ 55 (11) 2188-0155 (1st option) or
+ 55 (11) 2188-0188 (2nd option)
Password: CEMIG
|
|
|
Playback of Video Webcast:
Website: http://ri.cemig.com.br
Click on the banner and download.
Available for 90 days
|
|
Conference call Playback:
Tel: (11) 2188-0400
Password:
CEMIG Português
Available from
April 3 to 17, 2019
|
Cemig Investor Relations
|
|
|
Web:
|
|
http://ri.cemig.com.br/
|
Email:
|
|
ri@cemig.com.br
|
Tel.:
|
|
+55 (31) 3506-5024
|
Fax:
|
|
+55 (31) 3506-5025
|
Cemigs Executive Investor Relations Team
|
◾
|
Chief Finance and Investor Relations Officer
|
Maurício Fernandes Leonardo Júnior
|
◾
|
General Manager, Investor Relations
|
Antônio Carlos Vélez Braga
|
◾
|
Manager, Investor Market
|
Robson Laranjo
|
|
|
|
|
|
|
|
|
|
|
Av. Barbacena 1200 Santo
Agostinho 30190-131 Belo Horizonte, Minas
Gerais, 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.
|
85
Contents
|
|
|
|
|
|
|
|
|
|
|
Av. Barbacena 1200 Santo
Agostinho 30190-131 Belo Horizonte, Minas
Gerais, 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.
|
86
Disclaimer
Certain statements and estimates in this material may represent expectations about future events or results, which are subject to risks and uncertainties,
which may be known or unknown. There is no guarantee that the events or results will take place as referred to in these expectations.
These expectations
are based on the present assumptions and analyses from the point of view of our management, in accordance with their experience and other factors such as the macroeconomic environment, market conditions in the electricity sector, and expected future
results, many of which are not under Cemigs control.
Important factors that could lead to significant differences between actual results and the
projections about future events or results include Cemigs business strategy, Brazilian and international economic conditions, technology, Cemigs financial strategy, changes in the electricity sector, hydrological conditions, conditions
in the financial and energy markets, uncertainty on our results from future operations, plans and objectives, and other factors. Due to these and other factors, Cemigs results may differ significantly from those indicated in or implied by such
statements.
The information and opinions herein should not be understood as a recommendation to potential investors, and no investment decision should be
based on the veracity, currentness or completeness of this information or these opinions. None of Cemigs professionals nor any of their related parties or representatives shall have any liability for any losses that may result from use of the
content of this material.
To evaluate the risks and uncertainties as they relate to Cemig, and to obtain additional information about factors that could
give rise to different results from those estimated by Cemig, please consult the section on Risk Factors included in the Reference Form filed with the Brazilian Securities Commission (CVM) and in the
20-F
form filed with the U.S. Securities and Exchange Commission (SEC).
|
|
|
|
|
|
|
|
|
|
|
Av. Barbacena 1200 Santo
Agostinho 30190-131 Belo Horizonte, Minas
Gerais, 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.
|
87
Our shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset / index
|
|
Ticker
|
|
|
Currency
|
|
Close of
2018
|
|
|
Close of
2017
|
|
|
Change in the
period %
|
|
Cemig PN
|
|
|
CMIG4:
|
|
|
R$
|
|
|
13.86
|
|
|
|
6.39
|
|
|
|
116.76
|
|
Cemig ON
|
|
|
CMIG3
|
|
|
R$
|
|
|
15.03
|
|
|
|
6.32
|
|
|
|
137.78
|
|
ADR PN
|
|
|
CIG
|
|
|
US$
|
|
|
3.56
|
|
|
|
1.91
|
|
|
|
86.55
|
|
ADR ON
|
|
|
CIG.C
|
|
|
US$
|
|
|
3.93
|
|
|
|
1.83
|
|
|
|
115.25
|
|
Ibovespa
|
|
|
IBOV
|
|
|
|
|
|
87,887
|
|
|
|
76,402
|
|
|
|
15.03
|
|
Power industry index
|
|
|
IEEX
|
|
|
|
|
|
49,266
|
|
|
|
39,732
|
|
|
|
24.00
|
|
Source:
Economática adjusted for corporate action, including dividends.
Trading volume in Cemigs preferred shares (CMIG4) totaled
R$ 26.65 billion in full-year 2018 (9M18), a daily average of R$ 108.79 million that is 57.27% higher than in full-year 2017. Trading volume in the common (ON) shares was R$ 2.78 billion. By volume (in the
aggregate of common (ON) and preferred (PN) shares) Cemigs shares were the second most liquid in Brazils electric power sector in the period, and among the most traded in the whole Brazilian equity market.
On the New York Stock Exchange the volume traded in ADRs for Cemigs preferred shares (CIG) in full-year 2018 was US$ 2.96 billion: we see this as
reflecting recognition of Cemigs position as a global investment option.
The principal Brazilian stock index the Ibovespa of the São
Paulo Stock Exchange was up 15.03% in full-year 2018, closing the period at 87,887 points. Cemigs shares very significantly outperformed that index and also the Brazilian electric power sector index: in 2018 the common (ON) shares
appreciated by 137.78%, and the preferred (PN) shares rose 116.76%. The ADRs traded in New York for Cemigs shares appreciated by similar high percentages in 2018: the ADR for the preferred shares ticker
CIG
rose 86.55%;
and the ADR for the common shares
CIG.C
rose 115.25%, in the year.
|
|
|
|
|
|
|
|
|
|
|
Av. Barbacena 1200 Santo
Agostinho 30190-131 Belo Horizonte, Minas
Gerais, 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.
|
88
Appreciation of Cemig
securities, vs. market, in 2018 %
Cemigs long-term ratings
This table shows long-term credit ratings and outlook for Cemigs companies as provided by the principal rating agencies:
Brazilian rating:
|
|
|
|
|
|
|
|
|
|
|
|
|
Agency
|
|
Cemig
|
|
Cemig D
|
|
Cemig GT
|
|
|
Rating
|
|
Outlook
|
|
Rating
|
|
Outlook
|
|
Rating
|
|
Outlook
|
Fitch
|
|
A(bra)
|
|
Positive
|
|
A(bra)
|
|
Positive
|
|
A(bra)
|
|
Positive
|
S&P
|
|
brA+
|
|
Stable
|
|
brA+
|
|
Stable
|
|
brA+
|
|
Stable
|
Moodys
|
|
Baa2.br
|
|
Stable
|
|
Baa2.br
|
|
Stable
|
|
Baa2.br
|
|
Stable
|
Global rating:
|
|
|
|
|
|
|
|
|
|
|
|
|
Agency
|
|
Cemig
|
|
Cemig D
|
|
Cemig GT
|
|
|
Rating
|
|
Outlook
|
|
Rating
|
|
Outlook
|
|
Rating
|
|
Outlook
|
Fitch
|
|
B+
|
|
Positive
|
|
B+
|
|
Positive
|
|
B+
|
|
Positive
|
S&P
|
|
B
|
|
Stable
|
|
B
|
|
Stable
|
|
B
|
|
Stable
|
Moodys
|
|
B1
|
|
Stable
|
|
B1
|
|
Stable
|
|
B1
|
|
Stable
|
Ratings of Cemig Eurobond:
|
|
|
|
|
|
|
|
|
Agency
|
|
Cemig
|
|
Cemig GT
|
|
|
Rating
|
|
Outlook
|
|
Rating
|
|
Outlook
|
Fitch
|
|
B+
|
|
Positive
|
|
B+
|
|
Positive
|
S&P
|
|
B
|
|
Stable
|
|
B
|
|
Stable
|
|
|
|
|
|
|
|
|
|
|
|
Av. Barbacena 1200 Santo
Agostinho 30190-131 Belo Horizonte, Minas
Gerais, 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.
|
89
Adoption of IFRS
The results presented below are prepared in accordance with Brazilian accounting rules, which now embody harmonization to IFRS (International Financial
Reporting Standards), and are in thousands of Reais (R$ 000)
PROFIT AND LOSS ACCOUNTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
R$ 000
|
|
4Q18
|
|
|
4Q17
|
|
|
%
|
|
|
2018
|
|
|
2017
|
|
|
%
|
|
REVENUE
|
|
|
5,471,966
|
|
|
|
6,557,909
|
|
|
|
(16.56
|
)
|
|
|
22,266,217
|
|
|
|
21,711,690
|
|
|
|
2.55
|
|
OPERATING COSTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Personnel
|
|
|
(422,110
|
)
|
|
|
(351,359
|
)
|
|
|
20.14
|
|
|
|
(1,410,491
|
)
|
|
|
(1,627,026
|
)
|
|
|
(13.31
|
)
|
Employees and managers profit shares
|
|
|
(53,940
|
)
|
|
|
21,137
|
|
|
|
|
|
|
|
(76,761
|
)
|
|
|
(4,640
|
)
|
|
|
1.554.33
|
|
Post-retirement benefits
|
|
|
(86,677
|
)
|
|
|
522,277
|
|
|
|
|
|
|
|
(337,005
|
)
|
|
|
228,660
|
|
|
|
|
|
Materials
|
|
|
(29,997
|
)
|
|
|
(27,621
|
)
|
|
|
8.60
|
|
|
|
(104,416
|
)
|
|
|
(70,927
|
)
|
|
|
47.22
|
|
Outsourced services
|
|
|
(334,574
|
)
|
|
|
(293,388
|
)
|
|
|
14.04
|
|
|
|
(1,087,409
|
)
|
|
|
(973,957
|
)
|
|
|
11.65
|
|
Electricity purchased for resale
|
|
|
(2,508,133
|
)
|
|
|
(3,234,084
|
)
|
|
|
(22.45
|
)
|
|
|
(11,084,194
|
)
|
|
|
(10,919,476
|
)
|
|
|
1.51
|
|
Depreciation and amortization
|
|
|
(215,489
|
)
|
|
|
(232,985
|
)
|
|
|
(7.51
|
)
|
|
|
(834,593
|
)
|
|
|
(849,768
|
)
|
|
|
(1.79
|
)
|
Operating provisions
|
|
|
(64,650
|
)
|
|
|
(294,875
|
)
|
|
|
(78.08
|
)
|
|
|
(466,768
|
)
|
|
|
(853,668
|
)
|
|
|
(45.32
|
)
|
Charges for use of the national grid
|
|
|
(338,511
|
)
|
|
|
(382,584
|
)
|
|
|
(11.52
|
)
|
|
|
(1,479,414
|
)
|
|
|
(1,173,923
|
)
|
|
|
26.02
|
|
Gas bought for resale
|
|
|
(340,182
|
)
|
|
|
(280,762
|
)
|
|
|
21.16
|
|
|
|
(1,238,085
|
)
|
|
|
(1,070,623
|
)
|
|
|
15.64
|
|
Infrastructure construction costs
|
|
|
(305,284
|
)
|
|
|
(381,995
|
)
|
|
|
(20.08
|
)
|
|
|
(897,490
|
)
|
|
|
(1,118,749
|
)
|
|
|
(19.78
|
)
|
Other operating expenses, net
|
|
|
(140,460
|
)
|
|
|
(71,365
|
)
|
|
|
(96.82
|
)
|
|
|
(403,601
|
)
|
|
|
(382,946
|
)
|
|
|
5.39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL COST
|
|
|
(4,840,007
|
)
|
|
|
(5,007,604
|
)
|
|
|
(3.35
|
)
|
|
|
(19,420,227
|
)
|
|
|
(18,817,043
|
)
|
|
|
3.21
|
|
Share of profit (loss) in associates and joint ventures
|
|
|
(27.563
|
)
|
|
|
(231,560
|
)
|
|
|
(88.10
|
)
|
|
|
(103,549
|
)
|
|
|
(252,240
|
)
|
|
|
(58.95
|
)
|
Restatement of prior equity holding in the subsidiaries acquired
|
|
|
(119,117
|
)
|
|
|
|
|
|
|
|
|
|
|
(119,117
|
)
|
|
|
|
|
|
|
|
|
Adjustment for impairment of Investments
|
|
|
(127,427
|
)
|
|
|
|
|
|
|
|
|
|
|
(127,427
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operational profit before financial revenue (expenses) and taxes
|
|
|
357,852
|
|
|
|
1,318,745
|
|
|
|
(72.86
|
)
|
|
|
2,495,897
|
|
|
|
2,642,407
|
|
|
|
(5.54
|
)
|
Finance income
|
|
|
854,217
|
|
|
|
253,648
|
|
|
|
236.77
|
|
|
|
1,705,679
|
|
|
|
803,713
|
|
|
|
112.22
|
|
Finance expenses
|
|
|
(185,369
|
)
|
|
|
(528,313
|
)
|
|
|
(64.91
|
)
|
|
|
(2,224,161
|
)
|
|
|
(1,800,264
|
)
|
|
|
23.55
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax
profit
|
|
|
1,026,700
|
|
|
|
1,044,080
|
|
|
|
(1.66
|
)
|
|
|
1,977,415
|
|
|
|
1,645,856
|
|
|
|
20.15
|
|
Current and deferred income tax and Social Contribution tax
|
|
|
(311,010
|
)
|
|
|
(439,666
|
)
|
|
|
(29.26
|
)
|
|
|
(599,124
|
)
|
|
|
(644,260
|
)
|
|
|
(7.01
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the business year from going concern operations
|
|
|
715,690
|
|
|
|
604,414
|
|
|
|
18.41
|
|
|
|
1,378,291
|
|
|
|
1,001,596
|
|
|
|
37.61
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Profit for the business year from discontinued operationsLight
|
|
|
113,733
|
|
|
|
|
|
|
|
|
|
|
|
113,733
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Profit for the business year from discontinued operations telecom
assets
|
|
|
214,041
|
|
|
|
|
|
|
|
|
|
|
|
249,689
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET PROFIT FOR THE YEAR
|
|
|
1,043,464
|
|
|
|
604,414
|
|
|
|
72.64
|
|
|
|
1,741,713
|
|
|
|
1,001,596
|
|
|
|
73.89
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net profit for the period attributable to equity holders of the parent
|
|
|
1,002,368
|
|
|
|
604,204
|
|
|
|
65.90
|
|
|
|
1,700,099
|
|
|
|
1,000,954
|
|
|
|
69.85
|
|
Net profit for the period attributable to
non-controlling
interests
|
|
|
41,096
|
|
|
|
210
|
|
|
|
19,469.5
|
|
|
|
41,614
|
|
|
|
642
|
|
|
|
6,381.9
|
|
|
|
|
|
|
|
|
|
|
|
|
Av. Barbacena 1200 Santo
Agostinho 30190-131 Belo Horizonte, Minas
Gerais, 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.
|
90
4Q18 RESULTS
Cemig reports net profit of R$ 1,002,368 in 4Q18, compared to R$ 604,204 in 4Q17.
This reflected:
|
◾
|
A gain of R$ 378,316, on sales of telecom assets.
|
|
◾
|
Lower equity method loss in
non-consolidated
investees this year, due
to a less negative result from Renova Energia, and a higher gain than last year arising from Belo Monte.
|
|
◾
|
A gain on restatement of prior equity holding in the subsidiaries acquired, of R$ 79,693 this year, resulting
from the elimination of crossover stockholdings between Cemig and Energimp in the wind power companies Praia de Parajuru, Volta do Rio and Praia de Morgado. (This resulted in Cemig GT becoming owner of 100% of Parajuru and Volta do Rio, and Energimp
becoming owner of 100% of Morgado.)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Parajuru
|
|
|
Volta do
Rio
|
|
|
Total
|
|
Fair Value at December 31, 2018
|
|
|
145,880
|
|
|
|
180,976
|
|
|
|
326,856
|
|
Equity interest held by the Company before the acquisition of control
|
|
|
49%
|
|
|
|
49%
|
|
|
|
49%
|
|
Cemig GTs original interest, valued at fair value on the acquisition date
|
|
|
71,481
|
|
|
|
88,679
|
|
|
|
160,160
|
|
Original book value
|
|
|
50,652
|
|
|
|
29,815
|
|
|
|
80,467
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restatement of prior equity holding in the subsidiaries acquired
|
|
|
20,829
|
|
|
|
58,864
|
|
|
|
79,693
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
◾
|
A loss on restatement of prior equity holding in the subsidiaries acquired of R$ 198,810 results from the
remeasurement of the fair value of Light and Lightger. After the disposal of the shares of RME by the other shareholders, Cemig now holds a direct and indirect interest of 49.99% of Light and now has control of the same. Considering that the Company
had sole control with Light, in the investees Lightger, Axxiom, Amazônia Energia, Guanhães Energia and Itaocara, these investees also began to be controlled, and this
re-evaluation
was necessary.
On November 30, 2018, the Company classifies its investment in Light, Lightger, Axxiom, Amazônia Energia, Guanhães Energia and Itaocara as assets held for sale and results of discontinued operations.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Light
|
|
|
Lightger
|
|
|
Total
|
|
Fair Value at November 30, 2018
|
|
|
3,197,686
|
|
|
|
256,853
|
|
|
|
3,454,539
|
|
Equity interest held by the Company before the acquisition of control
|
|
|
47.265%
|
|
|
|
49.00%
|
|
|
|
|
|
Cemigs original interest, valued at fair value on the acquisition date
|
|
|
1,511,386
|
|
|
|
125,858
|
|
|
|
1,637,244
|
|
Original book value
|
|
|
(1,794,187
|
)
|
|
|
(41,868
|
)
|
|
|
(1,836,055
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restatement of prior equity holding in the subsidiaries acquired
|
|
|
(282,799
|
)
|
|
|
83,990
|
|
|
|
(198,811
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
◾
|
Cemig reported financial
revenue
of R$ 570,454 with a gain on the hedge transaction related to the
Eurobond issue and a foreign exchange variation gain of R$ 199,104, on that (dollar-denominated) issue in 4Q18.
|
|
|
|
|
|
|
|
|
|
|
|
Av. Barbacena 1200 Santo
Agostinho 30190-131 Belo Horizonte, Minas
Gerais, 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.
|
91
Cemigs
consolidated electricity market
The Cemig Group sells electricity through its distribution company, Cemig Distribuição (Cemig
D), its generation and transmission company, Cemig Geração e Transmissão (Cemig GT), and other wholly-owned subsidiaries: Horizontes Energia, Sá Carvalho, Cemig PCH, Rosal Energia, Cemig
Geração Camargos, Cemig Geração Itutinga, Cemig Geração Salto Grande, Cemig Geração Três Marias, Cemig Geração Leste, Cemig Geração Oeste, and Cemig
Geração Sul.
This market comprises sales of electricity to:
(i)
|
Captive consumers in Cemigs concession area in the State of Minas Gerais;
|
(ii)
|
Free Consumers in both the State of Minas Gerais and other States of Brazil, in the Free Market (
Ambiente de
Contratação Livre
, or ACL);
|
(iii)
|
other agents of the electricity sector traders, generators and independent power producers, also in the
ACL; and
|
(iv)
|
Distributors, in the Regulated Market (
Ambiente de Contratação Regulada
ACR).
|
In 4Q18 the Cemig group sold a total volume of 14,340,377 MWh, which was 0.59% less than in 4Q17. The total in the year was 55,554,644
MWh, or 0.50% higher than in
full-year
2017.
Sales of electricity to final consumers in 4Q18, plus Cemigs
own consumption, totaled 11,117,364 MWh, or 2.78% more than in 4Q17.
Sales to distributors, traders, other generating companies and independent power
producers in 2018 were 3,223,013 MWh, or 10.71% less than in 2017.
In December 2018 the Cemig Group billed 8,409,535 customers growth of 0.74% in
the client base from December 2017. Of these, 8,409,183 were in the group comprising final consumers and Cemigs own consumption; and 352 were other agents in the Brazilian power industry.
|
|
|
|
|
|
|
|
|
|
|
Av. Barbacena 1200 Santo
Agostinho 30190-131 Belo Horizonte, Minas
Gerais, 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.
|
92
The chart below itemizes the Cemig Groups sales
to final consumers in the year, by consumer category:
Total consumption of electricity (GWh)
|
|
|
|
|
|
|
|
|
|
|
Av. Barbacena 1200 Santo
Agostinho 30190-131 Belo Horizonte, Minas
Gerais, 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.
|
93
This table itemizes the Cemig Groups sales to
final consumers, by consumer category:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
MWh (**)
|
|
|
Change, %
|
|
|
Average
price
4Q18
R$/MWh
|
|
|
Average
price
4Q17
R$/MWh
|
|
|
MWh (**)
|
|
|
4Q18
|
|
|
4Q17
|
|
|
2018
|
|
|
2017
|
|
Residential
|
|
|
2,618,259
|
|
|
|
2,518,443
|
|
|
|
3.96
|
|
|
|
912.72
|
|
|
|
811.83
|
|
|
|
10,266,434
|
|
|
|
10,008,423
|
|
Industrial
|
|
|
4,554,482
|
|
|
|
4,597,863
|
|
|
|
(0.94
|
)
|
|
|
286.32
|
|
|
|
276.87
|
|
|
|
17,689,182
|
|
|
|
17,760,807
|
|
Commercial, Services and Others
|
|
|
2,185,009
|
|
|
|
1,926,097
|
|
|
|
13.44
|
|
|
|
595.96
|
|
|
|
583.11
|
|
|
|
8,380,346
|
|
|
|
7,507,310
|
|
Rural
|
|
|
837,708
|
|
|
|
882,390
|
|
|
|
(5.06
|
)
|
|
|
558.53
|
|
|
|
481.80
|
|
|
|
3,615,402
|
|
|
|
3,651,472
|
|
Public authorities
|
|
|
229,774
|
|
|
|
221,182
|
|
|
|
3.88
|
|
|
|
719.81
|
|
|
|
641.17
|
|
|
|
871,325
|
|
|
|
865,803
|
|
Public lighting
|
|
|
345,642
|
|
|
|
336,739
|
|
|
|
2.64
|
|
|
|
465.36
|
|
|
|
414.69
|
|
|
|
1,383,878
|
|
|
|
1,366,938
|
|
Public services
|
|
|
338,328
|
|
|
|
323,378
|
|
|
|
4.62
|
|
|
|
541.58
|
|
|
|
490.16
|
|
|
|
1,315,479
|
|
|
|
1,301,135
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal
|
|
|
11,109,202
|
|
|
|
10,806,092
|
|
|
|
2.80
|
|
|
|
537.69
|
|
|
|
491.00
|
|
|
|
43,522,046
|
|
|
|
42,461,888
|
|
Own consumption
|
|
|
8,161
|
|
|
|
10,531
|
|
|
|
(22.50
|
)
|
|
|
|
|
|
|
|
|
|
|
41,244
|
|
|
|
37,477
|
|
Wholesale supply to agents in Free and Regulated Markets ( * )
|
|
|
3,223,014
|
|
|
|
3,606,529
|
|
|
|
(10.71
|
)
|
|
|
232.56
|
|
|
|
121.44
|
|
|
|
11,991,355
|
|
|
|
12,777,405
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
14,340,377
|
|
|
|
14,426,152
|
|
|
|
(0.59
|
)
|
|
|
467.79
|
|
|
|
437.65
|
|
|
|
55,554,645
|
|
|
|
55,276,770
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
|
Includes Regulated Market Electricity Sale Contracts (CCEARs) and bilateral contracts with other
agents.
|
(**)
|
Information not reviewed by the external auditors.
|
The electricity market of Cemig D
Electricity billed to captive clients and electricity transported for Free Clients and distributors with access to Cemig Ds networks ( excluding own
consumption) in 4Q18 totaled 11,304,557 MWh, or 4.18% more than in 4Q17.
There are two components of this increase: consumption by the captive market
2.22% higher YoY, and use of the network by Free Clients 6.86% higher YoY.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Captive market + Energy carried
|
|
4Q18
|
|
|
4Q17
|
|
|
%
|
|
|
2018
|
|
|
2017
|
|
|
%
|
|
Residential
|
|
|
2,618,259
|
|
|
|
2,518,443
|
|
|
|
3.96
|
|
|
|
10,266,434
|
|
|
|
10,008,423
|
|
|
|
2.58
|
|
Industrial
|
|
|
5,198,468
|
|
|
|
4,898,271
|
|
|
|
6.13
|
|
|
|
20,381,534
|
|
|
|
19,027,580
|
|
|
|
7.12
|
|
Commercial, Services and Others
|
|
|
1,650,362
|
|
|
|
1,582,477
|
|
|
|
4.29
|
|
|
|
6,358,255
|
|
|
|
6,237,494
|
|
|
|
1.94
|
|
Rural
|
|
|
840,779
|
|
|
|
885,102
|
|
|
|
(5.01
|
)
|
|
|
3,627,418
|
|
|
|
3,655,571
|
|
|
|
(0.77
|
)
|
Public authorities
|
|
|
229,774
|
|
|
|
221,182
|
|
|
|
3.88
|
|
|
|
871,325
|
|
|
|
865,803
|
|
|
|
0.64
|
|
Public lighting
|
|
|
345,642
|
|
|
|
336,739
|
|
|
|
2.64
|
|
|
|
1,383,878
|
|
|
|
1,366,938
|
|
|
|
1.24
|
|
Public services
|
|
|
338,329
|
|
|
|
323,378
|
|
|
|
4.62
|
|
|
|
1,315,479
|
|
|
|
1,301,135
|
|
|
|
1.10
|
|
Concession holder
|
|
|
82,944
|
|
|
|
84,895
|
|
|
|
(2.30
|
)
|
|
|
311,146
|
|
|
|
328,743
|
|
|
|
(5.35
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
11,304,557
|
|
|
|
10,850,486
|
|
|
|
4.18
|
|
|
|
44,515,469
|
|
|
|
42,791,687
|
|
|
|
2.58
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Cemig group billed a total of 8,408,342 customers in December 2018 (this excludes the groups own consumption).
Of this total, 1,138 are Free Clients that use Cemig Ds distribution network.
|
|
|
|
|
|
|
|
|
|
|
Av. Barbacena 1200 Santo
Agostinho 30190-131 Belo Horizonte, Minas
Gerais, 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.
|
94
|
|
|
|
|
|
|
|
|
|
|
|
|
Cemig D
|
|
Number of clients
|
|
|
Change, %
|
|
|
Dec. 31, 2018
|
|
|
Sep. 30, 2018
|
|
Residential
|
|
|
6,817,365
|
|
|
|
6,823,525
|
|
|
|
(0.09
|
)
|
Industrial
|
|
|
72,341
|
|
|
|
72,870
|
|
|
|
(0.73
|
)
|
Commercial, Services and Others
|
|
|
720,535
|
|
|
|
720,339
|
|
|
|
0.03
|
|
Rural
|
|
|
712,792
|
|
|
|
710,689
|
|
|
|
0.30
|
|
Public authorities
|
|
|
64,322
|
|
|
|
64,503
|
|
|
|
(0.28
|
)
|
Public lighting
|
|
|
6,418
|
|
|
|
6,252
|
|
|
|
2.66
|
|
Public services
|
|
|
13,431
|
|
|
|
12,948
|
|
|
|
3.73
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,407,204
|
|
|
|
8,411,126
|
|
|
|
(0.05
|
)
|
Total energy carried
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial
|
|
|
574
|
|
|
|
565
|
|
|
|
1.59
|
|
Commercial
|
|
|
555
|
|
|
|
530
|
|
|
|
4.72
|
|
Rural
|
|
|
6
|
|
|
|
5
|
|
|
|
20.00
|
|
Concession holder
|
|
|
3
|
|
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,138
|
|
|
|
1,103
|
|
|
|
3.17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
8,408,342
|
|
|
|
8,412,229
|
|
|
|
(0.05
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Physical totals of transport and distribution MWh
|
|
|
|
|
|
|
|
|
|
|
|
|
Metered market
|
|
MWh
|
|
|
Change, %
|
|
|
4Q18
|
|
|
4Q17
|
|
Total energy carried
|
|
|
|
|
|
|
|
|
|
|
|
|
Transported for distributors (metered)
|
|
|
78,888
|
|
|
|
79,009
|
|
|
|
(0.15
|
)
|
Transported for Free Clients (metered)
|
|
|
4,910,682
|
|
|
|
4,620,180
|
|
|
|
6.29
|
|
Own load + Distributed generation
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumption by captive market Billed supply
|
|
|
6,403,350
|
|
|
|
6,259,053
|
|
|
|
2.35
|
|
Losses in distribution network
|
|
|
1,495,894
|
|
|
|
1,738,008
|
|
|
|
(13.93
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total energy carried
|
|
|
12,891,814
|
|
|
|
12,696,250
|
|
|
|
1.54
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Includes distributed microgeneration.
|
The electricity market of Cemig GT
Cemig GT billed a total of 7,647,778 MWh in 4Q18, 4.33% higher than in 4Q17.
The number of clients billed 1,306 was 5.07% higher than in December 2017.
Of these: 1,257 were in the
industrial, commercial
and
rural
categories, 29 were distribution companies, and 20 were traders, generators and
independent power producers.
Free Clients in the
industrial
,
commercial
and
rural
categories consumed 4,544,107 MWh in 4Q18, or
3.80% more than in 4Q17. This growth is due to the
commercial
category consuming 37.59% more
year-on-year.
|
|
|
|
|
|
|
|
|
|
|
Av. Barbacena 1200 Santo
Agostinho 30190-131 Belo Horizonte, Minas
Gerais, 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.
|
95
Trading of electricity to other agents in the
electricity sector in the Free Market in 4Q18 totaled 2,482,617 MWh, 17.13% less than in 4Q17. In 2017 Cemig GTs sales to electricity traders, including short-term contracts, had been higher. Sales and trading transactions in electricity with
other agents of the electricity sector in the Free Market often result from taking previously-created selling opportunities, which lead to short-term sales contracts.
Sales in the Regulated Market in 4Q18, including sales to Cemig D, totaled 620,663 MWh, which was 0.15% less than in 1Q16. This was due to:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cemig GT
|
|
(MWh)
|
|
|
Change, %
|
|
|
4Q18
|
|
|
4Q17
|
|
Free Clients
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial
|
|
|
3,463,264
|
|
|
|
3,530,574
|
|
|
|
(1.91
|
)
|
Commercial
|
|
|
833,517
|
|
|
|
605,813
|
|
|
|
37.59
|
|
Rural
|
|
|
548
|
|
|
|
|
|
|
|
|
|
Free Market Free contracts
|
|
|
2,482,617
|
|
|
|
2,995,687
|
|
|
|
(17.13
|
)
|
Regulated Market
|
|
|
586,404
|
|
|
|
586,704
|
|
|
|
(0.05
|
)
|
Regulated Market Cemig D
|
|
|
34,259
|
|
|
|
33,028
|
|
|
|
3.72
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
7,400,607
|
|
|
|
7,751,806
|
|
|
|
(0.05
|
)
|
SPCs of Cemig GT
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Clients
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial
|
|
|
246,778
|
|
|
|
241,568
|
|
|
|
2.16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
7,647,385
|
|
|
|
7,993,374
|
|
|
|
(4.33
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supply quality indicators DEC and FEC
Cemig is continuously taking action to improve operational management, organization of the logistics of its emergency services, and its permanent routine of
preventive inspection and maintenance of substations and distribution lines and networks. It also invests in training of its staff for improved qualifications,
state-of-the-art
technologies, and standardization of work processes, aiming to maintain the quality of electricity supply, and as a result maintain satisfaction of clients and consumers.
The charts below show Cemigs indicators for duration and frequency of outages DEC (Average Interruption Duration, in hours), and FEC (Average
Interruption Frequency, in number of outages), since January 2016.
|
|
|
|
|
|
|
|
|
|
|
Av. Barbacena 1200 Santo
Agostinho 30190-131 Belo Horizonte, Minas
Gerais, 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.
|
96
Consolidated operational revenue
Revenue from supply of electricity
Total revenue from
supply of electricity in 4Q18 was R$ 6,708,348, or 6.25% higher than in 4Q17 (R$ 6,313,607).
Final consumers
Total revenue from electricity sold to final consumers, excluding Cemigs own consumption, in 2Q18 was R$ 5,973,290, or 12.58% more than in 4Q17
(R$ 5,305,759). The main factors in this revenue were:
|
◾
|
The Annual Tariff Adjustment for Cemig D effective May 28, 2018, with an average upward effect of 23.19%
on consumer tariffs.
|
|
◾
|
Higher revenues under the Flag Tariffs: R$ 279,989 in 4Q18, vs. R$ 195,716 in 4Q17. This reflects
the low level of reservoirs, activating the Yellow Flag and Red Flag additional tariff rates, leading to higher revenue in 2018.
|
|
◾
|
Volume of electricity sold to final consumers was 2.80% higher
year-on-year.
|
|
|
|
|
|
|
|
|
|
|
|
Av. Barbacena 1200 Santo
Agostinho 30190-131 Belo Horizonte, Minas
Gerais, 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.
|
97
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
R$ 000
|
|
4Q18
|
|
|
4Q17
|
|
|
%
|
|
|
2018
|
|
|
2017
|
|
Residential
|
|
|
2,389,729
|
|
|
|
2,044,538
|
|
|
|
16.88
|
|
|
|
8,658,157
|
|
|
|
7,841,851
|
|
Industrial
|
|
|
1,304,031
|
|
|
|
1,272,999
|
|
|
|
2.44
|
|
|
|
4,892,887
|
|
|
|
4,906,865
|
|
Commercial, Services and Others
|
|
|
1,302,171
|
|
|
|
1,123,123
|
|
|
|
15.94
|
|
|
|
4,683,418
|
|
|
|
4,341,962
|
|
Rural
|
|
|
467,888
|
|
|
|
425,134
|
|
|
|
10.06
|
|
|
|
1,793,459
|
|
|
|
1,628,883
|
|
Public authorities
|
|
|
165,394
|
|
|
|
141,816
|
|
|
|
16.63
|
|
|
|
574,975
|
|
|
|
531,761
|
|
Public lighting
|
|
|
160,847
|
|
|
|
139,641
|
|
|
|
15.19
|
|
|
|
585,260
|
|
|
|
536,788
|
|
Public services
|
|
|
183,230
|
|
|
|
158,508
|
|
|
|
15.60
|
|
|
|
646,399
|
|
|
|
589,451
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal
|
|
|
5,973,290
|
|
|
|
5,305,759
|
|
|
|
12.58
|
|
|
|
21,834,555
|
|
|
|
20,377,561
|
|
Supply not yet invoiced, net
|
|
|
(38,852
|
)
|
|
|
105,621
|
|
|
|
|
|
|
|
47,602
|
|
|
|
60,880
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total, final consumers
|
|
|
5,934,438
|
|
|
|
5,411,380
|
|
|
|
9.67
|
|
|
|
21,882,157
|
|
|
|
20,438,441
|
|
Wholesale supply to other concession holders (*)
|
|
|
749,547
|
|
|
|
438,339
|
|
|
|
71.00
|
|
|
|
3,001,538
|
|
|
|
1,727,527
|
|
Wholesale supply not yet invoiced, net
|
|
|
24,363
|
|
|
|
463,888
|
|
|
|
(94.75
|
)
|
|
|
(11,700
|
)
|
|
|
1,535,393
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
6,708,348
|
|
|
|
6,313,607
|
|
|
|
6.25
|
|
|
|
24,871,995
|
|
|
|
23,701,361
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
|
Includes Regulated Market Electricity Sale Contracts (CCEARs) and bilateral contracts with other
agents.
|
Revenue from Use of Distribution Systems (the TUSD charge)
This is revenue from charging Free Consumers the Tariff for Use of the Distribution System (
Tarifa de Uso do Sistema de Distribuição
, or
TUSD), for transport of electricity sold. In 4Q18 this revenue was R$ 624,641, or 64.39% higher than in 4Q17 (R$ 379,970), with the following factors:
|
◾
|
Upward adjustment of approximately 36% in the TUSD, in Cemig Ds 2018 annual tariff adjustment, effective
from May 28, 2018.
|
|
◾
|
Growth in use of the network (MWh) and in billed demand (MW).
|
|
◾
|
Increase in the number of facilities being billed for the charge for use of the distribution system.
|
CVA
and
Other financial components
in tariff adjustment
In its interim accounting information Cemig recognizes the difference between actual
non-controllable
costs (in which
the contribution to the CDE the Energy Development Account and electricity bought for resale are significant components) and the costs that were used in calculating rates charged to consumers. In 4Q18 the amount for reimbursement in
the subsequent tariff was R$ 189,274 this is 77.47% below the amount subject to reimbursement in 4Q17, of R$ 840,044.
|
|
|
|
|
|
|
|
|
|
|
Av. Barbacena 1200 Santo
Agostinho 30190-131 Belo Horizonte, Minas
Gerais, 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.
|
98
Changes in balances of financial assets and
liabilities:
|
|
|
|
|
|
|
R$ 000
|
|
Balance at Sep. 30, 2017
|
|
(603,961)
|
|
Net total of financial liabilities constituted
|
|
|
588,401
|
|
Asset realized
|
|
|
251,643
|
|
Payments from the Flag Tariff Centralizing Account (CCRBT)
|
|
|
(280,686
|
)
|
Updating Selic rate
|
|
|
(1,187
|
)
|
|
|
|
|
|
Balance at Dec. 31, 2017
|
|
|
(45,790
|
)
|
|
|
|
|
|
Balance at Sep. 30, 2018
|
|
|
1,204,748
|
|
Net constitution of financial assets
|
|
|
229,676
|
|
Assets realized
|
|
|
(40,402
|
)
|
Payments from the Flag Tariff Centralizing Account
|
|
|
(340,172
|
)
|
Updating Selic rate
|
|
|
26,843
|
|
|
|
|
|
|
Balance at Monday, December 31, 2018
|
|
|
1,080,693
|
|
|
|
|
|
|
Payments from the Flag Tariff Centralizing Account
The Flag Account (
Conta Centralizadora de Recursos de Bandeiras Tarifárias
CCRBT, or
Conta Bandeira
)
manages the funds that are collected from captive customers of distribution concession and permission holders operating in the national grid, and are paid, on behalf of the CDE, directly to the Flag Account. The resulting funds are passed through by
the Wholesale Trading Chamber (CCEE) to distribution agents, based on the differences between (i) realized costs of thermal generation and exposure to short-term market prices, and (ii) the amounts covered by the tariff.
Revenue from reimbursements Transmission assets
In 4Q18 this revenue was R$ 42,211, a reduction of 45.51% compared to 4Q17 (R$ 77,468). The indemnity to be received, updated to December 31,
2018, in the amount of R$ 1,296,314 (R$ 1,928,038 on December 31, 2017), corresponds to the following credits:
Revenue from
transactions on the Wholesale Trading Exchange (CCEE)
Revenue from transactions in electricity on the CCEE in 4Q18 was R$ 28,095, compared to
R$ 323,601 in 4Q17 a
year-on-year
reduction of 91.32%. The lower revenue from this source reflects the lower quantity of energy available for settlement in
the wholesale market in 4Q18, and the average Spot Price (PLD Southeastern Region) being 60.24% lower (R$ 158.8824/MWh in 4Q18, vs. R$ 398.3902/MWh in 4Q17).
|
|
|
|
|
|
|
|
|
|
|
Av. Barbacena 1200 Santo
Agostinho 30190-131 Belo Horizonte, Minas
Gerais, 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.
|
99
Revenue from supply of gas
Revenue from supply of gas in 4Q18 was 19.85% higher YoY, at R$ 542,979, compared to R$ 453,056 in 4Q17. This basically reflects increases in
tariffs, taking into account the reduction in volume of gas sold to the thermal electricity generating plants, since in this period they were not dispatched by the National Electricity System Operator (ONS).
Gasmigs continuation of its more assertive sales policy as from 2017 helped to keep the global volume of gas sold to the
non-thermoelectric
segment of the market practically stable, mitigating the effects of that retraction.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market (000
m
3
/day)
|
|
2013
|
|
|
2014
|
|
|
2015
|
|
|
2016
|
|
|
2017
|
|
|
2018
|
|
Residential
|
|
|
0.17
|
|
|
|
0.72
|
|
|
|
1.04
|
|
|
|
3.38
|
|
|
|
11.44
|
|
|
|
17.73
|
|
Commercial
|
|
|
20.38
|
|
|
|
23.15
|
|
|
|
22.42
|
|
|
|
24.68
|
|
|
|
32.67
|
|
|
|
39.37
|
|
Industrial
|
|
|
2,734.95
|
|
|
|
2,849.24
|
|
|
|
2,422.78
|
|
|
|
2,173.76
|
|
|
|
2,453.22
|
|
|
|
2,400.41
|
|
Other expenses
|
|
|
106.33
|
|
|
|
99.64
|
|
|
|
119.87
|
|
|
|
120.19
|
|
|
|
126.15
|
|
|
|
155.14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total market excluding thermal plants
|
|
|
2,861.83
|
|
|
|
2,972.75
|
|
|
|
2,566.11
|
|
|
|
2,322.01
|
|
|
|
2,623.47
|
|
|
|
612.65
|
|
Thermal generation
|
|
|
1,214.50
|
|
|
|
1,223.99
|
|
|
|
1,309.13
|
|
|
|
591.52
|
|
|
|
990.89
|
|
|
|
414.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
4,076.33
|
|
|
|
4,196.74
|
|
|
|
3,875.24
|
|
|
|
2,913.53
|
|
|
|
3,614.36
|
|
|
|
3,026.69
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supply of gas to the residential market began in March 2013. In December 2018, a total of 41,377 households were invoiced.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of clients
|
|
2013
|
|
|
2014
|
|
|
2015
|
|
|
2016
|
|
|
2017
|
|
|
2018
|
|
Residential
|
|
|
455
|
|
|
|
1,446
|
|
|
|
3,820
|
|
|
|
14,935
|
|
|
|
30,605
|
|
|
|
41,377
|
|
Commercial
|
|
|
152
|
|
|
|
177
|
|
|
|
218
|
|
|
|
394
|
|
|
|
591
|
|
|
|
756
|
|
Industrial
|
|
|
119
|
|
|
|
111
|
|
|
|
113
|
|
|
|
112
|
|
|
|
107
|
|
|
|
109
|
|
Others
|
|
|
91
|
|
|
|
88
|
|
|
|
62
|
|
|
|
49
|
|
|
|
50
|
|
|
|
57
|
|
Thermal generation
|
|
|
2
|
|
|
|
2
|
|
|
|
2
|
|
|
|
2
|
|
|
|
2
|
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
819
|
|
|
|
1,824
|
|
|
|
4,215
|
|
|
|
15,492
|
|
|
|
31,355
|
|
|
|
42,301
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Av. Barbacena 1200 Santo
Agostinho 30190-131 Belo Horizonte, Minas
Gerais, 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.
|
100
Taxes and charges on
revenue
The total of these taxes and charges reported as deductions from revenue in 4Q18 was R$ 3,494,662 or 22.93% more than in 4Q17
(R$ 2,842,711). Significant variations:
Consumer charges the Flag Tariff system
The Flag Tariff bands are activated as a result of low levels of water in the systems reservoirs tariffs are temporarily increased due
to scarcity of rain. The Red band has two levels Level 1 and Level 2. Level 2 comes into effect when scarcity is more intense. Activation of the flag tariffs generates an impact on billing in the subsequent month.
Consumer charges under the Flag Tariff band system were 43.06% higher, totaling R$ 279,989, in 4Q18, than in 4Q17 (R$ 195,716).
|
|
|
|
|
|
|
|
|
|
|
The Flag Tariff component
history
|
Jan. 2018
|
|
Feb. 2018
|
|
Mar. 2018
|
|
Apr. 2018
|
|
May 2018
|
|
Jun. 2018
|
Green
|
|
Green
|
|
Green
|
|
Green
|
|
Yellow
|
|
Red II
|
Jan. 17
|
|
Feb. 2017
|
|
Mar. 2017
|
|
Apr. 2017
|
|
May 2017
|
|
Jun. 2017
|
Green
|
|
Green
|
|
Yellow
|
|
Red
|
|
Red
|
|
Green
|
Jul. 2018
|
|
Aug. 2018
|
|
Sep. 2018
|
|
Oct. 18
|
|
Nov. 2016
|
|
Dec. 18
|
Red II
|
|
Red II
|
|
Red II
|
|
Red II
|
|
Yellow
|
|
Green
|
Jul. 2017
|
|
Aug. 2017
|
|
Sep. 2017
|
|
Oct. 17
|
|
Nov. 2017
|
|
Dec. 17
|
Yellow
|
|
Red
|
|
Yellow
|
|
Red II
|
|
Red II
|
|
Red
|
Operating costs and expenses
Operational costs and expenses totaled R$ 4,840,007 in 4Q18, or 3.35% less than in 4Q17 (R$ 5,007,604).
|
|
|
|
|
|
|
|
|
|
|
Av. Barbacena 1200 Santo
Agostinho 30190-131 Belo Horizonte, Minas
Gerais, 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.
|
101
The following paragraphs comment on the main
variations:
Personnel
The expense on personnel in
4Q18 was R$ 422,110, or 20.14% more than in 4Q17 (R$ 351,359). The higher expense reflects the accounting of R$ 65,596 with the 2019 PDVP, the increased number of employees hired in the most recent public competition (282 hirings in 4Q18),
and the salary adjustment of 4.00% as from November 2018, under the Collective Work Agreement.
Number of employees
2019 Programmed Voluntary Retirement Plan (PDVP)
In December 2018 the Company approved the 2019 Programmed Voluntary Retirement Plan (the 2019 PDVP). Those eligible to take part were any employees
who had worked with the Company for 25 years or more by December 31, 2018. The acceptance period was from January 7 to 31, 2019. The plan will pay the standard legal severance payments including: payment for the period of notice,
deposit of an amount equal to the penalty payment of 40% of the Base Value of the employees FGTS fund, as well as the other payments specified by the legislation, with no provision for any additional premium.
An amount of R$ 65,596 was appropriated as expense on the 2019 PDVP, including severance payments, corresponding to acceptance by 559 employees during
2018.
|
|
|
|
|
|
|
|
|
|
|
Av. Barbacena 1200 Santo
Agostinho 30190-131 Belo Horizonte, Minas
Gerais, 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.
|
102
Reopening of the Scheduled Voluntary Withdrawal
Program (PDVP 2019)
In March 2019, the Company approved the reopening of the voluntary termination program (PDVP 2019), with an adhesion period from
April 1 to 10, 2019, with changes in the requirements for membership, maintaining the same financial conditions.
Electricity purchased for resale
The expense on electricity bought for resale in 4Q18 was R$ 2,508,133, or 22.45% less than in 4Q17 (R$ 2,234,084). This reflects the lower
expense on power supply acquired by auction in the Regulated Environment 41.80% lower in 4Q18, at R$ 787,752, compared to R$ 1,353,632 in 4Q17.
Due to the low level of the water reservoirs of the hydroelectric plants in the system, the number of thermoelectric plants dispatched was larger in 4Q17
with a consequent higher expense on fuel.
|
|
|
|
|
|
|
|
|
|
|
|
|
R$ 000
|
|
4Q18
|
|
|
4Q17
|
|
|
%
|
|
Supply from Itaipu Binacional
|
|
|
343,216
|
|
|
|
309,751
|
|
|
|
10.80
|
|
Physical guarantee quota contracts
|
|
|
178,277
|
|
|
|
117,286
|
|
|
|
52.00
|
|
Quotas for Angra I and II nuclear plants
|
|
|
66,711
|
|
|
|
60,944
|
|
|
|
9.46
|
|
Spot market
|
|
|
155,360
|
|
|
|
317,341
|
|
|
|
(51.04
|
)
|
Proinfa Program
|
|
|
85,002
|
|
|
|
76,831
|
|
|
|
10.64
|
|
Bilateral contracts
|
|
|
126,304
|
|
|
|
114,676
|
|
|
|
10.14
|
|
Electricity acquired in Regulated Market auctions
|
|
|
787,752
|
|
|
|
1,353,632
|
|
|
|
(41.80
|
)
|
Acquired in Free Market
|
|
|
1,005,740
|
|
|
|
1,197,313
|
|
|
|
(16.00
|
)
|
Pasep and Cofins credits
|
|
|
(240,229
|
)
|
|
|
(313,690
|
)
|
|
|
(23.42
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,508,133
|
|
|
|
3,234,084
|
|
|
|
(22.45
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating provisions
Operational provisions were 78.08% lower
year-on-year
in the quarter at
R$ 64,650 in 4Q18, compared to R$ 294,875 in 4Q17. The main factors are:
◾
|
In 2017 there were was an increase in provisions for
employment-law
legal actions relative to the prior year due to
re-evaluations
of potential losses in various legal actions as a result of change in the procedural phase of provisional execution, and case law This affects
actions disputing: the basis for calculation of hazardous work remuneration; claims for equal payment for allegedly unlawful outsourcing; and subsidiary/joint liability. In 2018, new case law of the Federal Supreme Court (STF) on the lawfulness of
outsourcing of any activities, whether for means or for
end-use,
led to
re-evaluation
of the potential loss on several actions on this subject, with consequent reduction
of the amounts previously provisioned.
|
◾
|
Reduction of the fair value of the Parati/RME and SAAG investment options.The exercise price of the option was
calculated from the sum of the value of the amounts injected by the fund into the investee, plus the running expenses of the fund, less Interest on Equity, and dividends, distributed by RME and Lepsa. The exercise price is subject to monetary
updating by the CDI (Interbank CD) rate plus financial remuneration at 0.9% per year. The mechanism for exercise of the options was divided into two stages, as follows: The first was exercised on November 30, 2017, when Cemig acquired the
totality of the shares in Lepsa, and the totality of the preferred shares in RME, held by
BB-BI,
BV Financeira and Santander, which corresponded to fair value of R$ 185,358, comprising R$ 147,163 in Lepsa and
R$ 38,195 in RME. On November 30, 2018 the second stage of the options was exercised, in which Cemig acquired the totality of the common shares in RME held by
BB-Banco
de Investimento S.A., BV Financeira
S.A. Crédito, Financiamento e Investimento and Banco Santander (Brasil) S.A., for R$ 659,378, and settled all commitments to these stockholders in relation to the Put Option. With this acquisition Cemig became holder of 100% of the
share capital of RME.
|
|
|
|
|
|
|
|
|
|
|
|
Av. Barbacena 1200 Santo
Agostinho 30190-131 Belo Horizonte, Minas
Gerais, 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.
|
103
The changes in the value of the options in 2018 and
2017 were as follows:
|
|
|
|
|
R$ 000
|
|
Consolidated
|
|
Balance at Dec. 31, 2016
|
|
|
1,149,881
|
|
Variation in fair value
|
|
|
187,568
|
|
Exercise of put option 1st stage
|
|
|
(830,217
|
)
|
|
|
|
|
|
Balance at Dec. 31, 2017
|
|
|
507,232
|
|
|
|
|
|
|
Change in fair value
|
|
|
152,146
|
|
Exercise of put option 2nd stage
|
|
|
(659,378
|
)
|
Balance at Monday, December 31, 2018
|
|
|
|
|
|
|
|
|
|
The effects of the options contract on the profit for 2017 and 2018 were recognized at fair value based on the
Black-Scholes-Merton analysis. The following variables were taken into account: exercise price of the option; closing price of the stock of Light on the record dates (as a reference for the value of the indirect equity interest held by the direct
stockholders of RME and Lepsa in Light); the risk-free interest rate; volatility of the price of the underlying asset; and the time to maturity of the option.
Default Moving average
In 2018 two marked features of the economy were: instability in the financial market, combined with continuation of the slow process of recovery in economic
activity.
GDP growth in 2018 was an improvement on 2017, but the initial higher growth in the year was contained after the acute adverse supply shock
caused by the truck drivers strike in May.
The business confidence index, and consumer expectations, are both improving, and although unemployment
is still high it diminished by two percentage points in relation to 2017.
To combat a record level of default, in 2018 Cemig redoubled efforts to collect
overdue customer bills. This effort used an additional budget approved for this year in an attempt to recover the previous losses of revenue. Some results have already been achieved. Since December 2016 there has been no significant increase in
Cemigs default percentages, showing that this situation is being held under control. In the residential consumer category the largest segment of the captive market default in 2018 was 7.6% lower than in 2017, and 11.6% lower than
in 2016. In view of this, we expect to see a more consistent fall in the total financial volume of default from now on.
Cemig uses various tools of
communication and collection to prevent increase in default. These include contact by telephone and email, collection requests by text and by letter, negative posting on credit registers, collection through the courts and, principally, disconnection
of supply. Aneel Resolution 414 allows supply to be cut off after 15 days from receipt of a notice by a defaulting consumer.
|
|
|
|
|
|
|
|
|
|
|
Av. Barbacena 1200 Santo
Agostinho 30190-131 Belo Horizonte, Minas
Gerais, 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.
|
104
In 2018 the Company carried out a robust program of
consumer disconnections, and thanks to an additional budget approved by the Executive Board to combat default it was possible to disconnect more than 1,340,000 consumer units, across all the consumer categories. This was the largest-ever number of
consumer disconnections ever carried out by the Company in a single year.
As well as these various collection tools, in 2018 Cemig launched a campaign
offering special conditions for negotiation and
re-negotiation
for
low-voltage
consumers, hospitals and public authorities.
With the more intense application of the tools for collection, and actual disconnection of past due consumers, the Company is even more confident that default
indices will be reduced in the coming years.
Moving Average Delinquency
Gas bought for resale
In 4Q18 the Companys expense on acquisition of gas was R$ 340,182, 21, which was 21.16% more than its comparable expense of R$ 280,762 in 4Q17.
This higher expense mainly reflects increases in the prices of gas purchased, reflecting the lower quantity of gas bought for resale, principally to the thermal electricity generation market (242,953 m³ in 4Q8, vs. 330,341 m³ in 4Q17). The
price of gas suffered a significant effect from exchange rate variation in 2018.
Share of profit (loss) in associates and
joint ventures
In 4Q18 Cemig posted a net loss by the equity method in unconsolidated investees of R$ 27,563, which compares with a net loss of
R$ 231,560 in 4Q17. This lower negative figure mainly reflecting a lower equity method gain in Renova (loss of R$ 106,100 in 4Q18, vs. R$ 340,201 in 4Q17).
|
|
|
|
|
|
|
|
|
|
|
Av. Barbacena 1200 Santo
Agostinho 30190-131 Belo Horizonte, Minas
Gerais, 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.
|
105
Financial revenue and
expenses
Cemig reported net financial revenue in 4Q18 of R$ 668,848, which compares with net financial expenses of R$ 274,665 in 4Q17. The
main factors are:
|
◾
|
Revenue from late charges on client electricity bills were 36.67% higher
year-on-year,
at R$ 92,373 in 4Q18, compared to R$ 67,588 in 4Q17. A major component in this came from renegotiation of amounts owed on electricity bills by entities of the Minas Gerais State administration
with recognition of monetary updating.
|
|
◾
|
In 4Q18 there was also a gain, of R$ 570,454, on the hedge transaction related to the Eurobond issue. In this
quarter the adjustment to fair value resulted in a positive effect, due to a lower variation in the future curve for the DI (Interbank Deposit) rate than in the future curve for the US dollar exchange rate. This gain should be seen together with the
expense on foreign exchange variation arising from the Eurobond.
|
|
◾
|
Recognition in 2018 of a gain of R$ 56,320 relating to charges for credits owed by related parties. Of this
total, R$ 38,943 arose from the Debt Recognition Agreement (TARD) with Renova.
|
See more details in this
Material Announcement:
http://cemig.infoinvest.com.br/enu/17248/Fato%20Relevante_Cemig_CemigGT_Renova_ing.pdf
|
◾
|
There was a foreign exchange variation gain of R$ 199,104, in 4Q18, relating to the Eurobond issue (denominated
in US dollars).That issue was placed in two parts: US$1 billion (R$ 3.2 billion) in 2017, and US$500 million (R$ 1.9 billion) in July 2018).
|
|
◾
|
Revenue from financial updating in the arbitration proceedings between Cemig GT and Energimp, comprising a gain
of R$ 76,896:
|
|
o
|
Energimps debt to the Company arose from
non-compliance
with the
deadline for start of operation of the three wind farms in February 2009. This delay gave rise to an adjustment to the original acquisition price, with the related financial updating and indemnities, through an Arbitration Proceeding held in the
Market Arbitration Chamber, in which judgment was given on May 30, 2017. On December 20, 2018, upon compliance with the suspensive conditions specified in the related Transaction Agreement, elimination of crossover stockholdings was
completed, with Cemig GT acquiring the 51% equity interest held by Energimp in the companies Parajuru and Volta do Rio, which thus became wholly-owned subsidiaries of Cemig GT. At the same time, Energimp became owner of 100% of the share capital of
Morgado, having acquired Cemig GTs 49% equity interest in that company.
|
|
◾
|
Monetary updating of the balances of CVA: a financial gain of R$ 26,843 in 4Q18. The positive and negative
balances of CVA are updated by the Selic rate. This variation arises from there being an asset balance of CVA in 4Q18, leading to posting of a financial gain for updating the balance.
|
|
|
|
|
|
|
|
|
|
|
|
Av. Barbacena 1200 Santo
Agostinho 30190-131 Belo Horizonte, Minas
Gerais, 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.
|
106
Ebitda
Cemigs consolidated Ebitda in 4Q18 was 36.29% lower than in 4Q17. This mainly reflects the reversal of R$ 619,297 in expenses on post-employment
obligations, recorded on December, 31, 2017, arising from the changes in the life insurance policy. Ebitda margin in 4Q18 was 18.07%, compared to 23.67% in 4Q17.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ebitda R$000
|
|
4Q18
|
|
|
4Q17
|
|
|
%
|
|
|
2018
|
|
|
2017
|
|
|
%
|
|
Net profit (loss) for the period
|
|
|
1,002,368
|
|
|
|
604,414
|
|
|
|
65.84
|
|
|
|
1,700,099
|
|
|
|
1,001,596
|
|
|
|
69.74
|
|
+ Income tax and Social Contribution tax
|
|
|
311,010
|
|
|
|
439,666
|
|
|
|
(29.26
|
)
|
|
|
599,124
|
|
|
|
644,260
|
|
|
|
(7.01
|
)
|
+ Income tax and Social Contribution tax from discontinued operations telecom
assets
|
|
|
128,627
|
|
|
|
|
|
|
|
|
|
|
|
128,627
|
|
|
|
|
|
|
|
|
|
+ Net finance income (expenses)
|
|
|
(668,848
|
)
|
|
|
274,665
|
|
|
|
|
|
|
|
518,482
|
|
|
|
996,551
|
|
|
|
(47.97
|
)
|
+ Depreciation and amortization
|
|
|
215,489
|
|
|
|
232,985
|
|
|
|
(7.51
|
)
|
|
|
834,593
|
|
|
|
849,768
|
|
|
|
(1.79
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
= Ebitda
|
|
|
988,646
|
|
|
|
1,551,730
|
|
|
|
(36.29
|
)
|
|
|
3,780,925
|
|
|
|
3,492,175
|
|
|
|
8.27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Av. Barbacena 1200 Santo
Agostinho 30190-131 Belo Horizonte, Minas
Gerais, Brazil Tel.: +55 31 3506-5024 Fax +55 31 3506-5025
This text is a
translation, provided for information only. The original text in Portuguese is the legally valid version.
|
107
DEBT
The Companys total consolidated debt at December 31, 2018 was R$ 14,771,828. This is 2.60% higher than at
December 31, 2017. In July 2018 Cemig raised US$500 million (R$ 1.9 billion) outside Brazil, through Cemig GT, in the second tranche (retap) of Cemig GTs Eurobond issue, initially placed in December 2017 with maturity in 2024 and
six-monthly
coupon of 9.25% p.a. The Company contracted a hedge structure comprising: a Call Spread on the principal, in which Cemig GT was hedged in the interval between R$ 3.85/US$ and R$ 5.00/US$; and a
swap for 100% of the interest, in which the 9.25% p.a. coupon was replaced by a rate equivalent to 125.52% of the CDI rate a significant improvement in relation to the hedge transaction on the original issue, in which the rate was equivalent
to 150% of the CDI rate. The proceeds were allocated to payment of debts with shorter maturities and higher average cost, resulting in lengthening of the debt profile and reduction of the Cemig GTs financial expenses.
Debt amortization (R$ mn)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dec. 31, 2018
|
|
|
Dec. 31, 2017
|
|
|
Change%
|
|
Cemig
|
|
|
|
|
|
|
|
|
|
|
|
|
Total debt
|
|
|
14,771,828
|
|
|
|
14,397,697
|
|
|
|
2.60
|
|
Net debt
|
|
|
13,068,790
|
|
|
|
12,279,303
|
|
|
|
6.43
|
|
Cemig GT
|
|
|
|
|
|
|
|
|
|
|
|
|
Total debt
|
|
|
8,198,912
|
|
|
|
8,320,163
|
|
|
|
-1.46
|
|
Net debt
|
|
|
7,713,870
|
|
|
|
7,381,202
|
|
|
|
4.51
|
|
Cemig D
|
|
|
|
|
|
|
|
|
|
|
|
|
Total debt
|
|
|
6,263,408
|
|
|
|
5,682,691
|
|
|
|
10.22
|
|
Net debt
|
|
|
5,347,136
|
|
|
|
4,851,213
|
|
|
|
10.22
|
|
|
|
|
|
|
|
|
|
|
|
|
Av. Barbacena 1200 Santo
Agostinho 30190-131 Belo Horizonte, Minas
Gerais, 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.
|
108
Covenants
Eurobonds
For as long as the Eurobonds are in circulation, Cemig and Cemig GT will publish the calculations of each
sub-item
of the Ebitda Covenant, the Net Debt Covenant, and the Total Debt Guaranteed, and also calculations for the following agreed financial indicators: Net Debt Covenant / Ebitda Covenant; and Total Debt
Guaranteed / Ebitda.
Below is the current example of the calculation:
|
|
|
|
|
|
|
|
|
12 months R$ (in million)
|
|
December 31, 2018
|
|
|
GT
|
|
|
H
|
|
Net income for the period/year (i)
|
|
|
825
|
|
|
|
1,906
|
|
Net financial expenses
|
|
|
375
|
|
|
|
1,181
|
|
Income tax and Social Contribution tax
|
|
|
420
|
|
|
|
747
|
|
Depreciation and amortization
|
|
|
193
|
|
|
|
1,406
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
|
1,813
|
|
|
|
5,240
|
|
|
|
|
|
|
|
|
|
|
minus
minority interest result
|
|
|
352
|
|
|
|
189
|
|
minus
provision for the variation in value of the put option
obligations
|
|
|
108
|
|
|
|
156
|
|
minus
non-operating
result (which includes
any gains on asset sales and any asset
write-off
or impairments)
|
|
|
106
|
|
|
|
134
|
|
plus
non-cash
expenses and
non-cash
charges, to the extent they are
non-recurring
|
|
|
|
|
|
|
|
|
minus
non-cash
credits and gains
increasing net income, to the extent they are
non-recurring
|
|
|
(80
|
)
|
|
|
119
|
|
minus
any cash payments made on a consolidated basis during such period
relating to
non-cash
charges that were added back in determining covenant EBITDA in any prior period
|
|
|
|
|
|
|
|
|
plus
expenses related to adherence to the Minas Gerais State Tax Credits
Regularization Plan (Plano de Regularização de Créditos Tributários PRCT), incurred in the third quarter of 2017
|
|
|
|
|
|
|
|
|
minus
non-cash
revenues related to
transmission and generation indemnification
|
|
|
(306
|
)
|
|
|
(306
|
)
|
plus
cash dividends received from minority investments (as measured in the statement
of cash flows)
|
|
|
108
|
|
|
|
313
|
|
minus
monetary updating of concession grant fees
|
|
|
(321
|
)
|
|
|
(321
|
)
|
plus
cash inflows related to power generation concession grant fee
|
|
|
250
|
|
|
|
250
|
|
plus
cash inflows related to transmission revenue for cost of capital
coverage
|
|
|
249
|
|
|
|
249
|
|
plus
cash inflows from generation indemnification, provided that such amount shall
not exceed 30% of the sum of clauses (i) through this definition of Covenant EBITDA
|
|
|
932
|
|
|
|
1,139
|
|
|
|
|
|
|
|
|
|
|
Covenant EBITDA
|
|
|
3,211
|
|
|
|
7,162
|
|
|
|
|
|
|
|
|
|
|
Consolidated Indebtedness
|
|
|
8,199
|
|
|
|
24,800
|
|
plus
debt contracts with Forluz
|
|
|
233
|
|
|
|
1,029
|
|
plus
carrying liability of any put option obligation
|
|
|
433
|
|
|
|
433
|
|
minus
escrow account amounts deposited to satisfy any put option obligation
|
|
|
|
|
|
|
|
|
minus
consolidated cash and cash equivalents; plus consolidated marketable
securities recorded as current assets
|
|
|
(464
|
)
|
|
|
(3,278
|
)
|
|
|
|
|
|
|
|
|
|
Covenant Net Debt
|
|
|
8,401
|
|
|
|
22,984(2
|
)
|
|
|
|
|
|
|
|
|
|
Covenant net debt/covenant EBITDA
|
|
|
2.62
|
|
|
|
3.21
|
|
Limit Covenant Net Debt to Covenant EBITDA Ratio
|
|
|
5.00
|
|
|
|
4.25
|
|
Total Secured Debt
|
|
|
|
|
|
|
7,244
|
|
Covenant EBITDA
|
|
|
|
|
|
|
7,162
|
|
Total Secured Debt to Covenant EBITDA Ratio
|
|
|
|
|
|
|
1.01
|
|
Limit Covenant Net Debt to Covenant EBITDA Ratio
|
|
|
|
|
|
|
1.75
|
|
(1)
|
The limits on financial indicators are required to be complied with
six-monthly,
in December and June.
|
(2)
|
Cemig + Light
pro forma
|
|
|
|
|
|
|
|
|
|
|
|
Av. Barbacena 1200 Santo
Agostinho 30190-131 Belo Horizonte, Minas
Gerais, 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.
|
109
Appendices
Results by business segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INFORMATION BY SEGMENT ON DECEMBER 31,
2018
|
|
DESCRIPTION
|
|
ELECTRICITY
|
|
|
GAS
|
|
|
TELECOMS (1)
|
|
|
OTHER
|
|
|
ELIMINATIONS
|
|
|
TOTAL
|
|
|
GENERATION(1)
|
|
|
TRANSMISSION
|
|
|
DISTRIBUTION(1)
|
|
ASSETS OF THE SEGMENT
|
|
|
14,670,719
|
|
|
|
3,862,238
|
|
|
|
37,840,059
|
|
|
|
1,822,176
|
|
|
|
9,584
|
|
|
|
2,606,857
|
|
|
|
(956,960
|
)
|
|
|
59,854,673
|
|
INVESTMENT IN AFFILIATES AND JOINTLY-CONTROLLED ENTITIES
|
|
|
4,055,190
|
|
|
|
1,162,879
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16,509
|
|
|
|
|
|
|
|
5,234,578
|
|
ADDITIONS TO THE SEGMENT
|
|
|
558,649
|
|
|
|
|
|
|
|
129,602
|
|
|
|
91
|
|
|
|
8,646
|
|
|
|
195
|
|
|
|
|
|
|
|
697,183
|
|
ADDITIONS TO FINANCIAL ASSETS
|
|
|
|
|
|
|
95,712
|
|
|
|
726,713
|
|
|
|
70,228
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
892,653
|
|
GOING CONCERN OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET REVENUE
|
|
|
6,374,319
|
|
|
|
675,656
|
|
|
|
13,756,860
|
|
|
|
1,618,942
|
|
|
|
|
|
|
|
133,704
|
|
|
|
(293,264
|
)
|
|
|
22,266,217
|
|
COST OF ELECTRICITY AND GAS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Electricity purchased for resale
|
|
|
(3,917,436
|
)
|
|
|
|
|
|
|
(7,237,526
|
)
|
|
|
|
|
|
|
|
|
|
|
(2
|
)
|
|
|
70,770
|
|
|
|
(11,084,194
|
)
|
Charges for use of the national grid
|
|
|
(216,413
|
)
|
|
|
|
|
|
|
(1,463,469
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
200,468
|
|
|
|
(1,479,414
|
)
|
Gas bought for resale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,238,085
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,238,085
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
(4,133,849
|
)
|
|
|
|
|
|
|
(8,700,995
|
)
|
|
|
(1,238,085
|
)
|
|
|
|
|
|
|
(2
|
)
|
|
|
271,238
|
|
|
|
(13,801,693
|
)
|
OPERATING COSTS AND EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Personnel
|
|
|
(229,871
|
)
|
|
|
(108,125
|
)
|
|
|
(965,345
|
)
|
|
|
(59,812
|
)
|
|
|
(17,854
|
)
|
|
|
(29,484
|
)
|
|
|
|
|
|
|
(1,410,491
|
)
|
Employees and managers profit shares
|
|
|
(10,278
|
)
|
|
|
(6,651
|
)
|
|
|
(50,506
|
)
|
|
|
|
|
|
|
351
|
|
|
|
(9,677
|
)
|
|
|
|
|
|
|
(76,761
|
)
|
Post-retirement obligations
|
|
|
(45,619
|
)
|
|
|
(26,716
|
)
|
|
|
(224,041
|
)
|
|
|
|
|
|
|
|
|
|
|
(40,629
|
)
|
|
|
|
|
|
|
(337,005
|
)
|
Materials
|
|
|
(38,516
|
)
|
|
|
(5,059
|
)
|
|
|
(57,526
|
)
|
|
|
(1,802
|
)
|
|
|
(1,209
|
)
|
|
|
(325
|
)
|
|
|
21
|
|
|
|
(104,416
|
)
|
Outsourced services
|
|
|
(123,462
|
)
|
|
|
(40,338
|
)
|
|
|
(880,318
|
)
|
|
|
(20,472
|
)
|
|
|
(8,707
|
)
|
|
|
(29,517
|
)
|
|
|
15,405
|
|
|
|
(1,087,409
|
)
|
Depreciation and amortization
|
|
|
(164,158
|
)
|
|
|
|
|
|
|
(594,922
|
)
|
|
|
(73,505
|
)
|
|
|
(1,291
|
)
|
|
|
(717
|
)
|
|
|
|
|
|
|
(834,593
|
)
|
Operational provisions (reversals)
|
|
|
(106,697
|
)
|
|
|
(11,526
|
)
|
|
|
(332,200
|
)
|
|
|
1,516
|
|
|
|
605
|
|
|
|
(18,466
|
)
|
|
|
|
|
|
|
(466,768
|
)
|
Construction costs
|
|
|
|
|
|
|
(95,712
|
)
|
|
|
(756,964
|
)
|
|
|
(44,814
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(897,490
|
)
|
Other operational expenses net
|
|
|
(64,961
|
)
|
|
|
(16,906
|
)
|
|
|
(203,352
|
)
|
|
|
(12,884
|
)
|
|
|
(3,218
|
)
|
|
|
(108,878
|
)
|
|
|
6,600
|
|
|
|
(403,599
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cost of operation
|
|
|
(783,562
|
)
|
|
|
(311,033
|
)
|
|
|
(4,065,174
|
)
|
|
|
(211,773
|
)
|
|
|
(31,323
|
)
|
|
|
(237,693
|
)
|
|
|
22,026
|
|
|
|
(5,618,532
|
)
|
OPERATING COSTS AND EXPENSES
|
|
|
(4,917,411
|
)
|
|
|
(311,033
|
)
|
|
|
(12,766,169
|
)
|
|
|
(1,449,858
|
)
|
|
|
(31,323
|
)
|
|
|
(237,695
|
)
|
|
|
293,264
|
|
|
|
(19,420,225
|
)
|
Share of profit (loss) in associates and joint ventures
|
|
|
(352,389
|
)
|
|
|
230,406
|
|
|
|
33,655
|
|
|
|
|
|
|
|
(763
|
)
|
|
|
(14,458
|
)
|
|
|
|
|
|
|
(103,549
|
)
|
Restatement of prior equity holding in the subsidiaries acquired
|
|
|
79,693
|
|
|
|
|
|
|
|
(52,186
|
)
|
|
|
|
|
|
|
|
|
|
|
(146,624
|
)
|
|
|
|
|
|
|
(119,117
|
)
|
Adjustment for impairment of Investments
|
|
|
(127,427
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(127,427
|
)
|
OPER. PROFIT BEFORE FIN. REV. (EXP.) AND TAXES
|
|
|
1,056,785
|
|
|
|
595,029
|
|
|
|
972,160
|
|
|
|
169,084
|
|
|
|
(32,086
|
)
|
|
|
(265,073
|
)
|
|
|
|
|
|
|
2,495,899
|
|
Financial revenues
|
|
|
1,112,547
|
|
|
|
60,959
|
|
|
|
433,976
|
|
|
|
83,537
|
|
|
|
1,223
|
|
|
|
13,437
|
|
|
|
|
|
|
|
1,705,679
|
|
Financial expenses
|
|
|
(1,536,595
|
)
|
|
|
(4,507
|
)
|
|
|
(620,874
|
)
|
|
|
(37,649
|
)
|
|
|
(4,871
|
)
|
|
|
(19,665
|
)
|
|
|
|
|
|
|
(2,224,161
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PRE-TAX
PROFIT
|
|
|
632,737
|
|
|
|
651,481
|
|
|
|
785,262
|
|
|
|
214,972
|
|
|
|
(35,734
|
)
|
|
|
(271,301
|
)
|
|
|
|
|
|
|
1,977,415
|
|
Income tax and Social Contribution tax
|
|
|
(276,236
|
)
|
|
|
(122,073
|
)
|
|
|
(216,737
|
)
|
|
|
(53,288
|
)
|
|
|
11,500
|
|
|
|
57,710
|
|
|
|
|
|
|
|
(599,124
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RESULT OF GOING CONCERN OPERATIONS
|
|
|
356,501
|
|
|
|
529,408
|
|
|
|
568,525
|
|
|
|
161,684
|
|
|
|
(24,234
|
)
|
|
|
(213,591
|
)
|
|
|
|
|
|
|
1,378,293
|
|
DISCONTINUED OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit (loss) in the period from discontinued operations (Note 30).
|
|
|
12,253
|
|
|
|
|
|
|
|
61,239
|
|
|
|
|
|
|
|
289,928
|
|
|
|
|
|
|
|
|
|
|
|
363,420
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET PROFIT FOR THE PERIOD
|
|
|
368,754
|
|
|
|
529,408
|
|
|
|
629,764
|
|
|
|
161,684
|
|
|
|
265,694
|
|
|
|
(213,591
|
)
|
|
|
|
|
|
|
1,741,713
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest of the controlling shareholders
|
|
|
360,938
|
|
|
|
529,408
|
|
|
|
598,840
|
|
|
|
160,923
|
|
|
|
265,694
|
|
|
|
(215,704
|
)
|
|
|
|
|
|
|
1,700,099
|
|
Interest of
non-controlling
shareholder
|
|
|
7,816
|
|
|
|
|
|
|
|
30,924
|
|
|
|
761
|
|
|
|
|
|
|
|
2,113
|
|
|
|
|
|
|
|
41,614
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
368,754
|
|
|
|
529,408
|
|
|
|
629,764
|
|
|
|
161,684
|
|
|
|
265,694
|
|
|
|
(213,591
|
)
|
|
|
|
|
|
|
1,741,713
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Av. Barbacena 1200 Santo
Agostinho 30190-131 Belo Horizonte, Minas
Gerais, 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.
|
110
Power losses
|
|
|
|
|
|
|
|
|
|
|
Av. Barbacena 1200 Santo
Agostinho 30190-131 Belo Horizonte, Minas
Gerais, 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.
|
111
Capex
|
|
|
|
|
R$ million
|
|
2018 Realized
|
|
GENERATION
|
|
|
268
|
|
Investment program
|
|
|
32
|
|
Capital injections
|
|
|
236
|
|
Aliança Norte
|
|
|
44
|
|
SPC Guanhães
|
|
|
60
|
|
SPC Amazônia Energia Participações (
Belo Monte
)
|
|
|
71
|
|
Usina Hidrelétrica Itaocara S.A.
|
|
|
5
|
|
Madeira Energia Mesa
|
|
|
25
|
|
Madeira Energia SAAG
|
|
|
26
|
|
Cemig GT wind farms
|
|
|
5
|
|
TRANSMISSION
|
|
|
99
|
|
Investment program
|
|
|
99
|
|
Cemig D
|
|
|
823
|
|
Investment program
|
|
|
823
|
|
Holding company
|
|
|
|
|
Capital injections
|
|
|
668
|
|
Rio Minas Energia RME
|
|
|
659
|
|
Efficientia Distributed generation
|
|
|
9
|
|
TOTAL
|
|
|
1,858
|
|
|
|
|
|
|
|
|
|
|
|
|
Av. Barbacena 1200 Santo
Agostinho 30190-131 Belo Horizonte, Minas
Gerais, 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.
|
112
Sources and Uses of
power supply billed market
|
|
|
|
|
|
|
|
|
|
|
Av. Barbacena 1200 Santo
Agostinho 30190-131 Belo Horizonte, Minas
Gerais, 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.
|
113
|
|
|
|
|
|
|
|
|
|
|
Av. Barbacena 1200 Santo
Agostinho 30190-131 Belo Horizonte, Minas
Gerais, 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.
|
114
Plants
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Generation Power Plant
|
|
Cemig Group Company
|
|
Type of
Power Plant
|
|
CEMIGs
Stake
|
|
|
Installed
Capacity (MW)
|
|
|
Assured
Power Levei
(avg. MW)
|
|
|
Expiration of
Concession
|
|
Emborcação
|
|
CEMIG GT
|
|
UHE
|
|
|
100.00%
|
|
|
|
1,192.00
|
|
|
|
499.70
|
|
|
|
23-jul-25
|
|
Belo Monte
|
|
Norte
|
|
UHE
|
|
|
12.91%
|
|
|
|
976.52
|
|
|
|
589.93
|
|
|
|
26-ago-45
|
|
Santo Antônio
|
|
SAE
|
|
UHE
|
|
|
18.13%
|
|
|
|
646.90
|
|
|
|
439.45
|
|
|
|
12~jun~43
|
|
Nova Ponte
|
|
CEMIG GT
|
|
UHE
|
|
|
100.00%
|
|
|
|
510.00
|
|
|
|
270.10
|
|
|
|
23-jul-25
|
|
Irapé
|
|
CEMIG GT
|
|
UHE
|
|
|
100.00%
|
|
|
|
399.00
|
|
|
|
207.90
|
|
|
|
28-fev-35
|
|
Três Marias
|
|
CEMIG G. TRÊS MARIAS
|
|
UHE
|
|
|
100.00%
|
|
|
|
396.00
|
|
|
|
71.70
|
|
|
|
4-jan-46
|
|
Nilo Peçanha
|
|
Light Energia
|
|
PCH
|
|
|
48.86%
|
|
|
|
185.69
|
|
|
|
163.05
|
|
|
|
4-jun-26
|
|
Aimorés
|
|
ALIANÇA
|
|
UHE
|
|
|
45.00%
|
|
|
|
148.50
|
|
|
|
81.86
|
|
|
|
20-dez-35
|
|
Igarapé
|
|
CEMIG GT
|
|
UTE
|
|
|
100.00%
|
|
|
|
131.00
|
|
|
|
71.30
|
|
|
|
13-ago-24
|
|
Salto Grande
|
|
CEMIG G. SALTO GRANDE
|
|
UHE
|
|
|
100.00%
|
|
|
|
102.00
|
|
|
|
22.50
|
|
|
|
4-jan-46
|
|
Amador Aguiar I
|
|
ALIANÇA
|
|
UHE
|
|
|
39.32%
|
|
|
|
94.36
|
|
|
|
60.70
|
|
|
|
29-ago-36
|
|
Ilha dos Pombos
|
|
Light Energia
|
|
PCH
|
|
|
48.86%
|
|
|
|
91.46
|
|
|
|
53.41
|
|
|
|
4-jun-26
|
|
Queimado
|
|
CEMIG GT
|
|
UHE
|
|
|
82.50%
|
|
|
|
86.63
|
|
|
|
56.02
|
|
|
|
2-jan-33
|
|
Amador Aguiar II
|
|
ALIANÇA
|
|
UHE
|
|
|
39.32%
|
|
|
|
82.56
|
|
|
|
51.78
|
|
|
|
29-ago-36
|
|
Funil
|
|
ALIANÇA
|
|
UHE
|
|
|
45.00%
|
|
|
|
81.00
|
|
|
|
38.07
|
|
|
|
20-dez-35
|
|
Sá Carvalho
|
|
Sá Carvalho S.A
|
|
UHE
|
|
|
100.00%
|
|
|
|
78.00
|
|
|
|
56.10
|
|
|
|
l-dez-24
|
|
Fontes Nova
|
|
Light Energia
|
|
PCH
|
|
|
48.86%
|
|
|
|
64.49
|
|
|
|
48.28
|
|
|
|
4-jun-26
|
|
Rosal
|
|
Rosal Energia S. A
|
|
UHE
|
|
|
100.00%
|
|
|
|
55.00
|
|
|
|
29.10
|
|
|
|
8-mai-32
|
|
Itutinga
|
|
CEMIG G. ITUTINGA
|
|
UHE
|
|
|
100.00%
|
|
|
|
52.00
|
|
|
|
8.40
|
|
|
|
4-jan-46
|
|
Igarapava
|
|
ALIANÇA
|
|
UHE
|
|
|
23.69%
|
|
|
|
49.75
|
|
|
|
31.80
|
|
|
|
30-dez-28
|
|
Pereira Passos
|
|
Light Energia
|
|
PCH
|
|
|
48.86%
|
|
|
|
48.81
|
|
|
|
23.70
|
|
|
|
4-jun-26
|
|
Baguari
|
|
BAGUARI ENERGIA
|
|
UHE
|
|
|
34.00%
|
|
|
|
47.60
|
|
|
|
28.80
|
|
|
|
15-ago-41
|
|
Camargos
|
|
CEMIG G. CAMARGOS
|
|
UHE
|
|
|
100.00%
|
|
|
|
46.00
|
|
|
|
6.30
|
|
|
|
4-jan-46
|
|
Volta do Rio
|
|
CEMIG GT
|
|
EOL
|
|
|
100.00%
|
|
|
|
42.00
|
|
|
|
18.41
|
|
|
|
26-dez-31
|
|
Retiro Baixo
|
|
Retiro Baixo Energética SA
|
|
UHE
|
|
|
49.90%
|
|
|
|
40.92
|
|
|
|
18.26
|
|
|
|
25-ago-41
|
|
Porto Estrela
|
|
ALIANÇA
|
|
UHE
|
|
|
30.00%
|
|
|
|
33.60
|
|
|
|
18.54
|
|
|
|
10-jul-32
|
|
Praias de Pajuru
|
|
CEMIG GT
|
|
EOL
|
|
|
100.00%
|
|
|
|
28.80
|
|
|
|
8.39
|
|
|
|
24-set-32
|
|
Santa Branca
|
|
Light Energia
|
|
PCH
|
|
|
48.86%
|
|
|
|
27.39
|
|
|
|
14.85
|
|
|
|
4-jun-26
|
|
Pai Joaquim
|
|
CEMIG PCH S.A
|
|
PCH
|
|
|
100.00%
|
|
|
|
23.00
|
|
|
|
13.91
|
|
|
|
l-abr-32
|
|
Piau
|
|
CEMIG G. SUL
|
|
PCH
|
|
|
100.00%
|
|
|
|
18.01
|
|
|
|
4.06
|
|
|
|
4-jan-46
|
|
Gafanhoto
|
|
CEMIG G. OESTE
|
|
PCH
|
|
|
100.00%
|
|
|
|
14.00
|
|
|
|
2.00
|
|
|
|
4-jan-46
|
|
Cachoeirão
|
|
Hidrelétrica Cachoeirão
|
|
PCH
|
|
|
49.00%
|
|
|
|
13.23
|
|
|
|
8.02
|
|
|
|
25-jul-30
|
|
Dores de Guanhães
|
|
Guanhães Energia
|
|
PCH
|
|
|
73.92%
|
|
|
|
10.35
|
|
|
|
5.28
|
|
|
|
22-nov-32
|
|
Outras
|
|
|
|
|
|
|
|
|
|
|
241.15
|
|
|
|
113.17
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
6,057.72
|
|
|
|
3,134.84
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Av. Barbacena 1200 Santo
Agostinho 30190-131 Belo Horizonte, Minas
Gerais, 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.
|
115
RAP (Permitted Annual
Transmission Revenue) 2018-2019 cycle
|
|
|
|
|
|
|
|
|
|
|
|
|
RAP (Permitted Annual
RevenueTransmission )2018/2019 cycle
|
|
Annual Permitted Revenue (RAP)
|
|
RAP
|
|
|
% Cemig
|
|
|
Cemig
|
|
Cemig GT
|
|
|
636,554,792
|
|
|
|
100.00%
|
|
|
|
636,554,792
|
|
Cemig GT
|
|
|
613,825,685
|
|
|
|
100.00%
|
|
|
|
613,825,685
|
|
Cemig Itajuba
|
|
|
22,729,108
|
|
|
|
100.00%
|
|
|
|
22,729,108
|
|
Centroeste
|
|
|
18,140,778
|
|
|
|
51.00%
|
|
|
|
9,251,797
|
|
Taesa
|
|
|
2,603,803,047
|
|
|
|
21.68%
|
|
|
|
564,504,501
|
|
NOVATRANS
|
|
|
413,508,982
|
|
|
|
|
|
|
|
89,648,747
|
|
TSN
|
|
|
279,621,010
|
|
|
|
|
|
|
|
60,621,835
|
|
ETEO
|
|
|
91,908,539
|
|
|
|
|
|
|
|
19,925,771
|
|
ETAU
|
|
|
25,248,700
|
|
|
|
|
|
|
|
5,473,918
|
|
PATESA
|
|
|
26,074,447
|
|
|
|
|
|
|
|
5,652,940
|
|
GTESA
|
|
|
5,821,869
|
|
|
|
|
|
|
|
1,262,181
|
|
MUNIRAH
|
|
|
38,039,315
|
|
|
|
|
|
|
|
8,246,924
|
|
BRASNORTE
|
|
|
10,222,969
|
|
|
|
|
|
|
|
2,216,340
|
|
NTE
|
|
|
125,209,896
|
|
|
|
|
|
|
|
27,145,505
|
|
STE
|
|
|
85,255,564
|
|
|
|
|
|
|
|
18,483,406
|
|
ATE I
|
|
|
155,388,531
|
|
|
|
|
|
|
|
33,688,233
|
|
ATE II
|
|
|
240,249,968
|
|
|
|
|
|
|
|
52,086,193
|
|
ATE III
|
|
|
119,808,219
|
|
|
|
|
|
|
|
25,974,422
|
|
EATE
|
|
|
113,603,471
|
|
|
|
|
|
|
|
24,629,232
|
|
ETEP
|
|
|
25,613,916
|
|
|
|
|
|
|
|
5,553,097
|
|
ENTE
|
|
|
117,370,143
|
|
|
|
|
|
|
|
25,445,847
|
|
ECTE
|
|
|
9,417,220
|
|
|
|
|
|
|
|
2,041,653
|
|
ERTE
|
|
|
26,343,256
|
|
|
|
|
|
|
|
5,711,218
|
|
STC
|
|
|
18,095,274
|
|
|
|
|
|
|
|
3,923,055
|
|
Lumitrans
|
|
|
11,114,590
|
|
|
|
|
|
|
|
2,409,643
|
|
EBTE
|
|
|
35,751,304
|
|
|
|
|
|
|
|
7,750,883
|
|
ESDE
|
|
|
6,735,387
|
|
|
|
|
|
|
|
1,460,232
|
|
ETSE
|
|
|
3,828,599
|
|
|
|
|
|
|
|
830,040
|
|
São Gotardo
|
|
|
5,175,272
|
|
|
|
|
|
|
|
1,121,999
|
|
Transleste
|
|
|
12,762,885
|
|
|
|
|
|
|
|
2,766,994
|
|
Transirapé
|
|
|
10,187,862
|
|
|
|
|
|
|
|
2,208,728
|
|
Transudeste
|
|
|
7,646,872
|
|
|
|
|
|
|
|
1,657,842
|
|
Mariana
|
|
|
14,678,343
|
|
|
|
|
|
|
|
3,182,265
|
|
Miracema
|
|
|
62,138,421
|
|
|
|
|
|
|
|
13,471,610
|
|
Aimorés
|
|
|
37,920,467
|
|
|
|
|
|
|
|
8,221,157
|
|
Paraguaçu
|
|
|
56,602,538
|
|
|
|
|
|
|
|
12,271,430
|
|
ESTE
|
|
|
53,611,420
|
|
|
|
|
|
|
|
11,622,956
|
|
Janaúba
|
|
|
185,421,948
|
|
|
|
|
|
|
|
40,199,478
|
|
ERB1
|
|
|
140,457,477
|
|
|
|
|
|
|
|
30,451,181
|
|
EDTE
|
|
|
32,968,372
|
|
|
|
|
|
|
|
7,147,543
|
|
Light
|
|
|
9,728,156
|
|
|
|
48.86%
|
|
|
|
4,753,177
|
|
RAP TOTAL CEMIG
|
|
|
|
|
|
|
|
|
|
|
1,215,064,267
|
|
|
|
|
|
|
|
|
|
|
|
|
Av. Barbacena 1200 Santo
Agostinho 30190-131 Belo Horizonte, Minas
Gerais, 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.
|
116
Tables
Cemig D
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CEMIG D Market
|
|
|
|
(GWh)
|
|
|
GW
|
|
Quarter
|
|
Captive Consumers
|
|
|
TUSD ENERGY(1)
|
|
|
T.E.D(2)
|
|
|
TUSD PICK(3)
|
|
4Q16
|
|
|
6,402
|
|
|
|
4,409
|
|
|
|
10,811
|
|
|
|
30
|
|
1Q17
|
|
|
6,249
|
|
|
|
4,274
|
|
|
|
10,523
|
|
|
|
30
|
|
2Q17
|
|
|
6,314
|
|
|
|
4,287
|
|
|
|
10,601
|
|
|
|
30
|
|
3Q17
|
|
|
6,232
|
|
|
|
4,586
|
|
|
|
10,817
|
|
|
|
31
|
|
4Q18
|
|
|
6,259
|
|
|
|
4,591
|
|
|
|
10,850
|
|
|
|
31
|
|
1Q18
|
|
|
6,213
|
|
|
|
4,637
|
|
|
|
10,850
|
|
|
|
31
|
|
2Q18
|
|
|
6,343
|
|
|
|
4,873
|
|
|
|
11,216
|
|
|
|
30
|
|
3Q18
|
|
|
6,309
|
|
|
|
4,870
|
|
|
|
11,179
|
|
|
|
30
|
|
4Q18
|
|
|
6,406
|
|
|
|
4,906
|
|
|
|
11,313
|
|
|
|
31
|
|
(1)
|
Refers to the quantity of electricity for calculation of the regulatory charges charged to free consumer clients
(Portion A)
|
(2)
|
Total electricity distributed
|
(3)
|
Sum of the demand on which the TUSD is invoiced, according to demand contracted (Portion B).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Revenues (R$ million)
|
|
4Q18
|
|
|
4Q17
|
|
|
Change%
|
|
|
2018
|
|
|
2017
|
|
|
Change%
|
|
Sales to end consumers
|
|
|
4,868
|
|
|
|
4,327
|
|
|
|
12.5
|
|
|
|
17,840
|
|
|
|
16,395
|
|
|
|
8.8
|
|
Revenue from Use of Distribution Systems (the TUSD charge)
|
|
|
629
|
|
|
|
389
|
|
|
|
61.7
|
|
|
|
2,066
|
|
|
|
1,643
|
|
|
|
25.7
|
|
CVA and Other financial components in tariff adjustment
|
|
|
190
|
|
|
|
840
|
|
|
|
-77.4
|
|
|
|
1,973
|
|
|
|
988
|
|
|
|
99.7
|
|
Construction revenue
|
|
|
213
|
|
|
|
339
|
|
|
|
-37.2
|
|
|
|
757
|
|
|
|
1,045
|
|
|
|
-27.6
|
|
Others
|
|
|
367
|
|
|
|
543
|
|
|
|
-32.4
|
|
|
|
1,347
|
|
|
|
1,418
|
|
|
|
-5.0
|
|
Subtotal
|
|
|
6,267
|
|
|
|
6,438
|
|
|
|
-2.7
|
|
|
|
23,983
|
|
|
|
21,489
|
|
|
|
11.6
|
|
Deductions
|
|
|
2,954
|
|
|
|
2,408
|
|
|
|
22.7
|
|
|
|
10,226
|
|
|
|
9,177
|
|
|
|
11.4
|
|
Net Revenues
|
|
|
3,313
|
|
|
|
4,030
|
|
|
|
-17.8
|
|
|
|
13,757
|
|
|
|
12,312
|
|
|
|
11.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses (R$ million)
|
|
4Q18
|
|
|
4Q17
|
|
|
Change%
|
|
|
2018
|
|
|
2017
|
|
|
Change%
|
|
Personnel
|
|
|
295
|
|
|
|
246
|
|
|
|
19.92
|
|
|
|
965
|
|
|
|
1,123
|
|
|
|
-14.07
|
|
Employees and managers profit sharing
|
|
|
39
|
|
|
|
-15
|
|
|
|
|
|
|
|
51
|
|
|
|
3
|
|
|
|
1,600.00
|
|
ForluzPost-retirement obligations
|
|
|
58
|
|
|
|
-382
|
|
|
|
|
|
|
|
224
|
|
|
|
-180
|
|
|
|
|
|
Materials
|
|
|
19
|
|
|
|
11
|
|
|
|
72.73
|
|
|
|
58
|
|
|
|
43
|
|
|
|
34.88
|
|
Outsourced services
|
|
|
261
|
|
|
|
234
|
|
|
|
11.54
|
|
|
|
880
|
|
|
|
785
|
|
|
|
12.10
|
|
Amortization
|
|
|
155
|
|
|
|
160
|
|
|
|
-3.13
|
|
|
|
595
|
|
|
|
561
|
|
|
|
6.06
|
|
Operating provisions
|
|
|
81
|
|
|
|
121
|
|
|
|
-33.06
|
|
|
|
332
|
|
|
|
469
|
|
|
|
-29.21
|
|
Charges for Use of Basic Transmission NetWork
|
|
|
344
|
|
|
|
341
|
|
|
|
0.88
|
|
|
|
1,463
|
|
|
|
1,002
|
|
|
|
46.01
|
|
Energy purchased for resale
|
|
|
1,541
|
|
|
|
2,066
|
|
|
|
-25.41
|
|
|
|
7,238
|
|
|
|
6,783
|
|
|
|
6.71
|
|
Construction Cost
|
|
|
213
|
|
|
|
340
|
|
|
|
-37.35
|
|
|
|
757
|
|
|
|
1,045
|
|
|
|
-27.56
|
|
Other Expenses
|
|
|
78
|
|
|
|
168
|
|
|
|
-53.57
|
|
|
|
255
|
|
|
|
408
|
|
|
|
-37.50
|
|
Total
|
|
|
3,084
|
|
|
|
3,290
|
|
|
|
-6.26
|
|
|
|
12,818
|
|
|
|
12,042
|
|
|
|
6.44
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statement of Results (R$ million)
|
|
4Q18
|
|
|
4Q17
|
|
|
Change%
|
|
|
2018
|
|
|
2017
|
|
|
Change%
|
|
Net Revenue
|
|
|
3,313
|
|
|
|
4,030
|
|
|
|
(17.79
|
)
|
|
|
13,757
|
|
|
|
12,312
|
|
|
|
11.74
|
|
Operating Expenses
|
|
|
3,084
|
|
|
|
3,290
|
|
|
|
(6.26
|
)
|
|
|
12,818
|
|
|
|
12,042
|
|
|
|
6.44
|
|
EBIT
|
|
|
229
|
|
|
|
740
|
|
|
|
(69.05
|
)
|
|
|
939
|
|
|
|
270
|
|
|
|
247.78
|
|
EBITDA
|
|
|
384
|
|
|
|
900
|
|
|
|
(57.33
|
)
|
|
|
1,534
|
|
|
|
831
|
|
|
|
84.60
|
|
Financial Result
|
|
|
4
|
|
|
|
-105
|
|
|
|
|
|
|
|
-187
|
|
|
|
-418
|
|
|
|
(55.26
|
)
|
Provision for Income Taxes, Social Cont & Deferred Income Tax
|
|
|
-44
|
|
|
|
-215
|
|
|
|
(79.53
|
)
|
|
|
-217
|
|
|
|
31
|
|
|
|
|
|
Net Income
|
|
|
189
|
|
|
|
420
|
|
|
|
(
55
.
00
|
)
|
|
|
535
|
|
|
|
-117
|
|
|
|
(
557
.
26
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Av. Barbacena 1200 Santo
Agostinho 30190-131 Belo Horizonte, Minas
Gerais, 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.
|
117
Cemig GT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Revenues
|
|
4Q18
|
|
|
4Q17
|
|
|
Change%
|
|
|
2018
|
|
|
2017
|
|
|
Change%
|
|
Sales to end consumers
|
|
|
1,015
|
|
|
|
1,026
|
|
|
|
-1.1
|
|
|
|
3,954
|
|
|
|
3,944
|
|
|
|
0.3
|
|
Supply
|
|
|
741
|
|
|
|
910
|
|
|
|
-18.6
|
|
|
|
2,908
|
|
|
|
3,244
|
|
|
|
-10.4
|
|
Revenues from Trans. Network
|
|
|
146
|
|
|
|
192
|
|
|
|
-24.0
|
|
|
|
589
|
|
|
|
519
|
|
|
|
13.5
|
|
Gain on monetary updating of Concession Grant Fee
|
|
|
75
|
|
|
|
77
|
|
|
|
- 2.6
|
|
|
|
321
|
|
|
|
317
|
|
|
|
1.3
|
|
Transactions in the CCEE
|
|
|
17
|
|
|
|
130
|
|
|
|
-86.9
|
|
|
|
185
|
|
|
|
651
|
|
|
|
-71.6
|
|
Construction revenue
|
|
|
83
|
|
|
|
14
|
|
|
|
492.9
|
|
|
|
95
|
|
|
|
25
|
|
|
|
280.0
|
|
Transmission indemnity revenue
|
|
|
42
|
|
|
|
77
|
|
|
|
-45.5
|
|
|
|
250
|
|
|
|
373
|
|
|
|
-33.0
|
|
Generation indemnity revenue
|
|
|
-27
|
|
|
|
12
|
|
|
|
|
|
|
|
55
|
|
|
|
272
|
|
|
|
-79.8
|
|
Others
|
|
|
72
|
|
|
|
-15
|
|
|
|
|
|
|
|
127
|
|
|
|
-6
|
|
|
|
|
|
Subtotal
|
|
|
2,164
|
|
|
|
2,423
|
|
|
|
-10.7
|
|
|
|
8,484
|
|
|
|
9,339
|
|
|
|
-9.2
|
|
Deductions
|
|
|
411
|
|
|
|
352
|
|
|
|
16.8
|
|
|
|
1,610
|
|
|
|
1,552
|
|
|
|
3.7
|
|
Net Revenues
|
|
|
1,753
|
|
|
|
2,071
|
|
|
|
-15.4
|
|
|
|
6,874
|
|
|
|
7,787
|
|
|
|
-11.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses
|
|
4Q18
|
|
|
4Q17
|
|
|
Change%
|
|
|
2018
|
|
|
2017
|
|
|
Change%
|
|
Personnel
|
|
|
93
|
|
|
|
82
|
|
|
|
13.4
|
|
|
|
332
|
|
|
|
383
|
|
|
|
-13.3
|
|
Employees and managers profit sharing
|
|
|
13
|
|
|
|
-5
|
|
|
|
|
|
|
|
17
|
|
|
|
1
|
|
|
|
1,600.0
|
|
ForluzPost-retirement obligations
|
|
|
18
|
|
|
|
-121
|
|
|
|
|
|
|
|
72
|
|
|
|
-59
|
|
|
|
|
|
Materials
|
|
|
10
|
|
|
|
15
|
|
|
|
-33.3
|
|
|
|
43
|
|
|
|
24
|
|
|
|
79.2
|
|
Outsourced services
|
|
|
51
|
|
|
|
47
|
|
|
|
8.5
|
|
|
|
148
|
|
|
|
143
|
|
|
|
3.5
|
|
Depreciation and Amortization
|
|
|
39
|
|
|
|
35
|
|
|
|
11.4
|
|
|
|
149
|
|
|
|
158
|
|
|
|
-5.7
|
|
Operating provisions
|
|
|
39
|
|
|
|
43
|
|
|
|
-9.3
|
|
|
|
117
|
|
|
|
150
|
|
|
|
-22.0
|
|
Charges for Use of Basic Transmission Network
|
|
|
45
|
|
|
|
93
|
|
|
|
-51.6
|
|
|
|
214
|
|
|
|
350
|
|
|
|
-38.9
|
|
Energy purchased for resale
|
|
|
987
|
|
|
|
1,179
|
|
|
|
-16.3
|
|
|
|
3,853
|
|
|
|
4,170
|
|
|
|
-7.6
|
|
Construction Cost
|
|
|
83
|
|
|
|
14
|
|
|
|
492.9
|
|
|
|
96
|
|
|
|
25
|
|
|
|
284.0
|
|
Other Expenses
|
|
|
9
|
|
|
|
85
|
|
|
|
|
|
|
|
81
|
|
|
|
126
|
|
|
|
-35.7
|
|
Total
|
|
|
1,387
|
|
|
|
1,467
|
|
|
|
-5.5
|
|
|
|
5,122
|
|
|
|
5,471
|
|
|
|
-6.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statement of Results
|
|
4Q18
|
|
|
4Q17
|
|
|
Change%
|
|
|
2018
|
|
|
2017
|
|
|
Change%
|
|
Net Revenue
|
|
|
1,753
|
|
|
|
2,071
|
|
|
|
(15.35
|
)
|
|
|
6,874
|
|
|
|
7,787
|
|
|
|
(11.72
|
)
|
Operating Expenses
|
|
|
1,387
|
|
|
|
1,467
|
|
|
|
(5.45
|
)
|
|
|
5,122
|
|
|
|
5,471
|
|
|
|
(6.38
|
)
|
EBIT
|
|
|
366
|
|
|
|
604
|
|
|
|
(39.40
|
)
|
|
|
1,752
|
|
|
|
2,316
|
|
|
|
(24.35
|
)
|
Equity gain in subsidiaries
|
|
|
-101
|
|
|
|
-361
|
|
|
|
(72.02
|
)
|
|
|
-352
|
|
|
|
-519
|
|
|
|
(32.18
|
)
|
Restatement of prior equity holding in the subsidiaries acquired
|
|
|
80
|
|
|
|
|
|
|
|
|
|
|
|
80
|
|
|
|
|
|
|
|
|
|
Adjustment for impairment of Investments
|
|
|
-127
|
|
|
|
|
|
|
|
|
|
|
|
-127
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
|
257
|
|
|
|
278
|
|
|
|
(7.55
|
)
|
|
|
1,502
|
|
|
|
1,955
|
|
|
|
(23.17
|
)
|
Financial Result
|
|
|
669
|
|
|
|
-219
|
|
|
|
|
|
|
|
-377
|
|
|
|
-948
|
|
|
|
(60.23
|
)
|
Provision for Income Taxes, Social Cont & Deferred Income Tax
|
|
|
-301
|
|
|
|
-121
|
|
|
|
148.76
|
|
|
|
-385
|
|
|
|
-421
|
|
|
|
(8.55
|
)
|
Net Income
|
|
|
633
|
|
|
|
-97
|
|
|
|
|
|
|
|
591
|
|
|
|
428
|
|
|
|
38.08
|
|
Cemig H
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy Sales (Consolidated)(GWh)
|
|
4Q18
|
|
|
4Q17
|
|
|
Change%
|
|
|
2018
|
|
|
2017
|
|
|
Change%
|
|
Residential
|
|
|
2,618
|
|
|
|
2,518
|
|
|
|
3.97%
|
|
|
|
10,266
|
|
|
|
10,008
|
|
|
|
2.58%
|
|
Industrial
|
|
|
4,554
|
|
|
|
4,598
|
|
|
|
-0.96%
|
|
|
|
17,689
|
|
|
|
17,761
|
|
|
|
-0.41%
|
|
Commercial
|
|
|
2,185
|
|
|
|
1,926
|
|
|
|
13.45%
|
|
|
|
8,380
|
|
|
|
7,507
|
|
|
|
11.63%
|
|
Rural
|
|
|
837
|
|
|
|
882
|
|
|
|
-5.10%
|
|
|
|
3,615
|
|
|
|
3,651
|
|
|
|
-0.99%
|
|
Others
|
|
|
916
|
|
|
|
884
|
|
|
|
3.62%
|
|
|
|
3,573
|
|
|
|
3,536
|
|
|
|
1.05%
|
|
Subtotal
|
|
|
11,110
|
|
|
|
10,808
|
|
|
|
2.79%
|
|
|
|
43,523
|
|
|
|
42,463
|
|
|
|
2.50%
|
|
Own Consumption
|
|
|
8
|
|
|
|
10
|
|
|
|
-20.00%
|
|
|
|
41
|
|
|
|
37
|
|
|
|
10.81%
|
|
Supply
|
|
|
3,223
|
|
|
|
3,609
|
|
|
|
-10.70%
|
|
|
|
11,991
|
|
|
|
12,777
|
|
|
|
-6.15%
|
|
TOTAL
|
|
|
14,341
|
|
|
|
14,427
|
|
|
|
-0.60%
|
|
|
|
55,555
|
|
|
|
55,277
|
|
|
|
0.50%
|
|
|
|
|
|
|
|
|
|
|
|
|
Av. Barbacena 1200 Santo
Agostinho 30190-131 Belo Horizonte, Minas
Gerais, 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.
|
118
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy Sales
|
|
4Q18
|
|
|
4Q17
|
|
|
Change%
|
|
|
2018
|
|
|
2017
|
|
|
Change%
|
|
Residential
|
|
|
2,390
|
|
|
|
2,045
|
|
|
|
16.87%
|
|
|
|
8,658
|
|
|
|
7,842
|
|
|
|
10.41%
|
|
Industrial
|
|
|
1,304
|
|
|
|
1,273
|
|
|
|
2.44%
|
|
|
|
4,893
|
|
|
|
4,907
|
|
|
|
-0.29%
|
|
Commercial
|
|
|
1,302
|
|
|
|
1,123
|
|
|
|
15.94%
|
|
|
|
4,683
|
|
|
|
4,342
|
|
|
|
7.85%
|
|
Rural
|
|
|
467
|
|
|
|
425
|
|
|
|
9.88%
|
|
|
|
1,793
|
|
|
|
1,629
|
|
|
|
10.07%
|
|
Others
|
|
|
509
|
|
|
|
440
|
|
|
|
15.68%
|
|
|
|
1,806
|
|
|
|
1,658
|
|
|
|
8.93%
|
|
Electricity sold to final consumers
|
|
|
5,972
|
|
|
|
5,306
|
|
|
|
12.55%
|
|
|
|
21,833
|
|
|
|
20,378
|
|
|
|
7.14%
|
|
Unbilled Supply, Net
|
|
|
2,999
|
|
|
|
761
|
|
|
|
294.09%
|
|
|
|
3,050
|
|
|
|
1,788
|
|
|
|
70.58%
|
|
Supply
|
|
|
-2,264
|
|
|
|
246
|
|
|
|
|
|
|
|
-12
|
|
|
|
1,535
|
|
|
|
|
|
TOTAL
|
|
|
6,707
|
|
|
|
6,313
|
|
|
|
6.24%
|
|
|
|
24,871
|
|
|
|
23,701
|
|
|
|
4.94%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Revenues
|
|
4Q18
|
|
|
4Q17
|
|
|
Change%
|
|
|
2018
|
|
|
2017
|
|
|
Change%
|
|
Sales to end consumers
|
|
|
5,887
|
|
|
|
5,351
|
|
|
|
10.0%
|
|
|
|
21,835
|
|
|
|
20,378
|
|
|
|
7.1%
|
|
TUSD
|
|
|
625
|
|
|
|
380
|
|
|
|
64.5%
|
|
|
|
2,045
|
|
|
|
1,611
|
|
|
|
26.9%
|
|
CVA and Other financial components in tariff adjustment
|
|
|
190
|
|
|
|
840
|
|
|
|
-77.4%
|
|
|
|
1,973
|
|
|
|
988
|
|
|
|
99.7%
|
|
Transmission concession revenue
|
|
|
101
|
|
|
|
150
|
|
|
|
-32.7%
|
|
|
|
411
|
|
|
|
371
|
|
|
|
10.8%
|
|
Transmission Indemnity Revenue
|
|
|
42
|
|
|
|
78
|
|
|
|
-46.2%
|
|
|
|
250
|
|
|
|
373
|
|
|
|
-33.0%
|
|
Generation Indemnity Revenue
|
|
|
-27
|
|
|
|
12
|
|
|
|
|
|
|
|
55
|
|
|
|
272
|
|
|
|
-79.8%
|
|
Gain on monetary updating of Concession Grant Fee
|
|
|
75
|
|
|
|
77
|
|
|
|
-2.6%
|
|
|
|
321
|
|
|
|
317
|
|
|
|
1.3%
|
|
Transactions in the CCEE
|
|
|
28
|
|
|
|
323
|
|
|
|
-91.3%
|
|
|
|
217
|
|
|
|
860
|
|
|
|
-74.8%
|
|
Supply
|
|
|
750
|
|
|
|
439
|
|
|
|
70.8%
|
|
|
|
3,002
|
|
|
|
1,728
|
|
|
|
73.7%
|
|
Gas supply
|
|
|
543
|
|
|
|
453
|
|
|
|
19.9%
|
|
|
|
1,995
|
|
|
|
1,759
|
|
|
|
13.4%
|
|
Construction revenue
|
|
|
306
|
|
|
|
1,047
|
|
|
|
-70.8%
|
|
|
|
898
|
|
|
|
1,784
|
|
|
|
-49.7%
|
|
Others
|
|
|
447
|
|
|
|
250
|
|
|
|
78.8%
|
|
|
|
1,575
|
|
|
|
2,421
|
|
|
|
-34.9%
|
|
Subtotal
|
|
|
8,967
|
|
|
|
9,400
|
|
|
|
-4.6%
|
|
|
|
34,577
|
|
|
|
32,862
|
|
|
|
5.2%
|
|
Deductions
|
|
|
3,495
|
|
|
|
2,842
|
|
|
|
23.0%
|
|
|
|
12,311
|
|
|
|
11,150
|
|
|
|
10.4%
|
|
Net Revenues
|
|
|
5,472
|
|
|
|
6,558
|
|
|
|
-16.6%
|
|
|
|
22,266
|
|
|
|
21,712
|
|
|
|
2.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses
|
|
4Q18
|
|
|
4Q17
|
|
|
Change%
|
|
|
2018
|
|
|
2017
|
|
|
Change%
|
|
Personnel
|
|
|
422
|
|
|
|
351
|
|
|
|
20.01%
|
|
|
|
1,410
|
|
|
|
1,627
|
|
|
|
-13.34%
|
|
Employees and managers profit sharing
|
|
|
54
|
|
|
|
-21
|
|
|
|
|
|
|
|
77
|
|
|
|
5
|
|
|
|
1440.00%
|
|
ForluzPost-Retirement Employee Benefits
|
|
|
87
|
|
|
|
-523
|
|
|
|
|
|
|
|
337
|
|
|
|
-229
|
|
|
|
|
|
Materials
|
|
|
30
|
|
|
|
28
|
|
|
|
6.81%
|
|
|
|
104
|
|
|
|
71
|
|
|
|
46.48%
|
|
Outsourced services
|
|
|
334
|
|
|
|
293
|
|
|
|
13.88%
|
|
|
|
1,087
|
|
|
|
974
|
|
|
|
11.60%
|
|
Energy purchased for resale
|
|
|
2,508
|
|
|
|
3,234
|
|
|
|
-22.44%
|
|
|
|
11,084
|
|
|
|
10,919
|
|
|
|
1.51%
|
|
Depreciation and Amortization
|
|
|
216
|
|
|
|
233
|
|
|
|
-7.43%
|
|
|
|
835
|
|
|
|
850
|
|
|
|
-1.76%
|
|
Operating Provisions
|
|
|
65
|
|
|
|
295
|
|
|
|
-78.02%
|
|
|
|
467
|
|
|
|
854
|
|
|
|
-45.32%
|
|
Charges for use of the national grid
|
|
|
338
|
|
|
|
383
|
|
|
|
-11.65%
|
|
|
|
1,479
|
|
|
|
1,174
|
|
|
|
25.98%
|
|
Gas bought for resale
|
|
|
340
|
|
|
|
281
|
|
|
|
20.97%
|
|
|
|
1,238
|
|
|
|
1,071
|
|
|
|
15.59%
|
|
Construction costs
|
|
|
307
|
|
|
|
382
|
|
|
|
-19.74%
|
|
|
|
899
|
|
|
|
1,119
|
|
|
|
-19.66%
|
|
Other Expenses
|
|
|
140
|
|
|
|
70
|
|
|
|
98.61%
|
|
|
|
403
|
|
|
|
382
|
|
|
|
5.50%
|
|
TOTAL
|
|
|
4,840
|
|
|
|
5,008
|
|
|
|
-3.35%
|
|
|
|
19,420
|
|
|
|
18,817
|
|
|
|
3.20%
|
|
|
|
|
|
|
|
|
|
|
|
|
Av. Barbacena 1200 Santo
Agostinho 30190-131 Belo Horizonte, Minas
Gerais, 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.
|
119
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Result Breakdown
|
|
4Q18
|
|
|
4Q17
|
|
|
Change%
|
|
|
2018
|
|
|
2017
|
|
|
Change%
|
|
FINANCE INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from cash investments
|
|
|
35
|
|
|
|
33
|
|
|
|
6.1%
|
|
|
|
116
|
|
|
|
205
|
|
|
|
-43.4%
|
|
Arrears fees on sale of energy
|
|
|
92
|
|
|
|
68
|
|
|
|
35.3%
|
|
|
|
352
|
|
|
|
261
|
|
|
|
34.9%
|
|
Monetary variations CVA
|
|
|
27
|
|
|
|
|
|
|
|
|
|
|
|
62
|
|
|
|
|
|
|
|
|
|
Monetary updating on Court escrow deposits
|
|
|
2
|
|
|
|
105
|
|
|
|
-98.1%
|
|
|
|
34
|
|
|
|
191
|
|
|
|
-82.2%
|
|
Pasep and Cofins charged on finance income
|
|
|
-34
|
|
|
|
-17
|
|
|
|
100.0%
|
|
|
|
-68
|
|
|
|
-53
|
|
|
|
28.3%
|
|
Gain on Financial instruments Swap
|
|
|
570
|
|
|
|
|
|
|
|
|
|
|
|
893
|
|
|
|
|
|
|
|
|
|
Financial update obtained in the arbitration process
|
|
|
77
|
|
|
|
|
|
|
|
|
|
|
|
77
|
|
|
|
|
|
|
|
|
|
Liabilities with related parties
|
|
|
56
|
|
|
|
|
|
|
|
|
|
|
|
56
|
|
|
|
|
|
|
|
|
|
Others
|
|
|
30
|
|
|
|
64
|
|
|
|
-53.1%
|
|
|
|
184
|
|
|
|
199
|
|
|
|
-7.5%
|
|
|
|
|
855
|
|
|
|
253
|
|
|
|
237.9%
|
|
|
|
1,706
|
|
|
|
803
|
|
|
|
112.5%
|
|
FINANCE EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs of loans and financings
|
|
|
-312
|
|
|
|
-306
|
|
|
|
2.0%
|
|
|
|
-1,256
|
|
|
|
-1,467
|
|
|
|
-14.4%
|
|
Foreign exchange variations
|
|
|
199
|
|
|
|
-56
|
|
|
|
|
|
|
|
-582
|
|
|
|
|
|
|
|
|
|
Monetary updating loans and financings
|
|
|
-24
|
|
|
|
-34
|
|
|
|
-29.4%
|
|
|
|
-134
|
|
|
|
-109
|
|
|
|
22.9%
|
|
Charges and monetary updating on post-retirement obligation
|
|
|
-14
|
|
|
|
-17
|
|
|
|
-17.6%
|
|
|
|
-68
|
|
|
|
-65
|
|
|
|
4.6%
|
|
Monetary updating AFAC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
239
|
|
|
|
|
|
Others
|
|
|
-35
|
|
|
|
-115
|
|
|
|
-
69
.
6
%
|
|
|
|
-184
|
|
|
|
-227
|
|
|
|
-46.2%
|
|
|
|
|
-
186
|
|
|
|
-
528
|
|
|
|
-64.8%
|
|
|
|
-2,224
|
|
|
|
-1,800
|
|
|
|
23.6%
|
|
NET FINANCE INCOME (EXPENSES)
|
|
|
669
|
|
|
|
-275
|
|
|
|
|
|
|
|
-518
|
|
|
|
-997
|
|
|
|
-48.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statement of Results
|
|
4Q18
|
|
|
4Q17
|
|
|
Change%
|
|
|
2018
|
|
|
2017
|
|
|
Change%
|
|
Net Revenue
|
|
|
5,472
|
|
|
|
6,558
|
|
|
|
-16.6%
|
|
|
|
22,266
|
|
|
|
21,712
|
|
|
|
2.6%
|
|
Operating Expenses
|
|
|
4,840
|
|
|
|
5,008
|
|
|
|
-3.4%
|
|
|
|
19,420
|
|
|
|
18,817
|
|
|
|
3.2%
|
|
EBIT
|
|
|
632
|
|
|
|
1,550
|
|
|
|
-59.2%
|
|
|
|
2,846
|
|
|
|
2,895
|
|
|
|
-1.7%
|
|
Share of profit (loss) in associates and joint ventures
|
|
|
29
|
|
|
|
-231
|
|
|
|
-87.4%
|
|
|
|
104
|
|
|
|
-252
|
|
|
|
-58.7%
|
|
Result of business combinations
|
|
|
-119
|
|
|
|
|
|
|
|
|
|
|
|
119
|
|
|
|
|
|
|
|
|
|
Adjustment for impairment of Inwestments
|
|
|
-127
|
|
|
|
|
|
|
|
|
|
|
|
127
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
|
989
|
|
|
|
1,553
|
|
|
|
0.36
|
|
|
|
3,782
|
|
|
|
3,493
|
|
|
|
8.3%
|
|
Financial Result
|
|
|
670
|
|
|
|
-275
|
|
|
|
-343.6%
|
|
|
|
-518
|
|
|
|
-997
|
|
|
|
-48.0
%
|
|
Provision for Income Taxes, Social Cont & Deferred Income Tax
|
|
|
311
|
|
|
|
-439
|
|
|
|
-29.2%
|
|
|
|
-600
|
|
|
|
-644
|
|
|
|
-6.8%
|
|
Profit for the business year from going concern operations
|
|
|
716
|
|
|
|
605
|
|
|
|
18.3%
|
|
|
|
1,378
|
|
|
|
1,002
|
|
|
|
37.5%
|
|
Net Profit for the business year from discontinued operations
|
|
|
287
|
|
|
|
|
|
|
|
|
|
|
|
322
|
|
|
|
|
|
|
|
|
|
Net profit for the period attributable to equity holders of the parent
|
|
|
1,003
|
|
|
|
605
|
|
|
|
65.7%
|
|
|
|
1,700
|
|
|
|
1,002
|
|
|
|
69.7%
|
|
Net profit for the period attributable to
non-controlling
interests
|
|
|
42
|
|
|
|
|
|
|
|
|
|
|
|
42
|
|
|
|
|
|
|
|
|
|
NET PROFIT FOR THE YEAR
|
|
|
1,045
|
|
|
|
605
|
|
|
|
72.6%
|
|
|
|
1,742
|
|
|
|
1,002
|
|
|
|
73.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
Av. Barbacena 1200 Santo
Agostinho 30190-131 Belo Horizonte, Minas
Gerais, 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.
|
120
|
|
|
|
|
|
|
|
|
Cash Flow Statement
|
|
2018
|
|
|
2017
|
|
Cash at beginning of period
|
|
|
1,030
|
|
|
|
995
|
|
Cash generated by operations
|
|
|
1,008
|
|
|
|
580
|
|
Net income for the period from going concern operations
|
|
|
1,700
|
|
|
|
1,002
|
|
Current and deferred income tax and Social Contribution tax
|
|
|
-650
|
|
|
|
-226
|
|
Depreciation and amortization
|
|
|
849
|
|
|
|
848
|
|
CVA and other financial components
|
|
|
-1,064
|
|
|
|
-402
|
|
Equity gain (loss) in subsidiaries
|
|
|
104
|
|
|
|
252
|
|
Provsions (reversals) for operational losses
|
|
|
467
|
|
|
|
854
|
|
Dividends received from equity holdings
|
|
|
311
|
|
|
|
354
|
|
Interest and monetary variation
|
|
|
1,207
|
|
|
|
1,498
|
|
Interest paid on loans and financings
|
|
|
-1,290
|
|
|
|
-1,797
|
|
Others
|
|
|
-626
|
|
|
|
-1,803
|
|
Financing activities
|
|
|
-937
|
|
|
|
-158
|
|
Financings obtained and capital increase
|
|
|
2,990
|
|
|
|
3,297
|
|
Payments of loans and financings
|
|
|
-3,527
|
|
|
|
-4,131
|
|
Interest on Equity, and dividends
|
|
|
-509
|
|
|
|
-539
|
|
Capital Increase / Subscription of shares to be capitalized
|
|
|
109
|
|
|
|
1,215
|
|
Investment activity
|
|
|
-211
|
|
|
|
-386
|
|
SecuritiesFinancial Investment
|
|
|
291
|
|
|
|
257
|
|
Acquisition of ownership interest and future capital commitments
|
|
|
70
|
|
|
|
|
|
Financial assets
|
|
|
305
|
|
|
|
474
|
|
Fixed and Intangible assets
|
|
|
-877
|
|
|
|
-1,117
|
|
Cash at end of period
|
|
|
890
|
|
|
|
1,031
|
|
|
|
|
|
|
|
|
|
|
|
|
Av. Barbacena 1200 Santo
Agostinho 30190-131 Belo Horizonte, Minas
Gerais, 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.
|
121
|
|
|
|
|
|
|
|
|
BALANCE SHEETS (CONSOLIDATED)ASSETS
|
|
2018
|
|
|
2017
|
|
CURRENT
|
|
|
27,796
|
|
|
|
8,536
|
|
Cash and cash equivalents
|
|
|
891
|
|
|
|
1,030
|
|
Securities
|
|
|
703
|
|
|
|
1,058
|
|
Consumers and traders
|
|
|
4,092
|
|
|
|
3,885
|
|
Financial assets of the concession
|
|
|
1,070
|
|
|
|
848
|
|
Contractual assets
|
|
|
131
|
|
|
|
|
|
Tax offsetable
|
|
|
124
|
|
|
|
174
|
|
Income tax and Social Contribution tax recoverable
|
|
|
386
|
|
|
|
339
|
|
Dividends receivable
|
|
|
120
|
|
|
|
77
|
|
Restricted cash
|
|
|
91
|
|
|
|
106
|
|
Inventories
|
|
|
36
|
|
|
|
38
|
|
Advances to suppliers
|
|
|
7
|
|
|
|
116
|
|
Accounts receivable from the State of Minas Gerais
|
|
|
|
|
|
|
235
|
|
Refund tariff subsidies
|
|
|
91
|
|
|
|
77
|
|
Low Income Subsidy
|
|
|
30
|
|
|
|
27
|
|
Derivative financial instrumentsSwaps
|
|
|
70
|
|
|
|
|
|
Other credits
|
|
|
508
|
|
|
|
526
|
|
Assets classified as held for sale
|
|
|
19,446
|
|
|
|
|
|
NON-CURRENT
|
|
|
32,058
|
|
|
|
33,703
|
|
Securities
|
|
|
109
|
|
|
|
30
|
|
Consumers and traders
|
|
|
81
|
|
|
|
7
|
|
Tax offsetable
|
|
|
242
|
|
|
|
231
|
|
Income tax and Social Contribution tax recoverable
|
|
|
6
|
|
|
|
21
|
|
Deferred income tax and Social Contribution tax
|
|
|
2,147
|
|
|
|
1,871
|
|
Escrow deposits in legal actions
|
|
|
2,502
|
|
|
|
2,336
|
|
Derivative financial instrumentsSwaps
|
|
|
743
|
|
|
|
8
|
|
Accounts receivable from the State of Minas Gerais
|
|
|
246
|
|
|
|
|
|
Other credits
|
|
|
784
|
|
|
|
884
|
|
Financial assets of the concession
|
|
|
4,927
|
|
|
|
6,605
|
|
Contractual assets
|
|
|
1,598
|
|
|
|
|
|
Investments
|
|
|
5,234
|
|
|
|
7,792
|
|
Property, plant and equipment
|
|
|
2,662
|
|
|
|
2,762
|
|
Intangible assets
|
|
|
10,777
|
|
|
|
11,156
|
|
TOTAL ASSETS
|
|
|
59,854
|
|
|
|
42,239
|
|
|
|
|
|
|
|
|
|
|
|
|
Av. Barbacena 1200 Santo
Agostinho 30190-131 Belo Horizonte, Minas
Gerais, 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.
|
122
|
|
|
|
|
|
|
|
|
BALANCE SHEETS LIABILITIES AND SHAREHOLDERS EQUITY
|
|
2018
|
|
|
2017
|
|
CURRENT
|
|
|
23,394
|
|
|
|
8,662
|
|
Suppliers
|
|
|
1,801
|
|
|
|
2,343
|
|
Regulatory charges
|
|
|
514
|
|
|
|
513
|
|
Profit sharing
|
|
|
79
|
|
|
|
9
|
|
Taxes
|
|
|
410
|
|
|
|
705
|
|
Income tax and Social Contribution tax
|
|
|
112
|
|
|
|
115
|
|
Interest on Equity, and dividends, payable
|
|
|
864
|
|
|
|
428
|
|
Loans and financings
|
|
|
2,198
|
|
|
|
2,371
|
|
Payroll and related charges
|
|
|
284
|
|
|
|
207
|
|
Post-retirement liabilities
|
|
|
253
|
|
|
|
232
|
|
Other obligations
|
|
|
607
|
|
|
|
1,232
|
|
Derivative financial instruments
|
|
|
|
|
|
|
507
|
|
Liabilities classified as held for sale
|
|
|
16,272
|
|
|
|
|
|
NON-CURRENT
|
|
|
20,521
|
|
|
|
19,247
|
|
Regulatory charges
|
|
|
178
|
|
|
|
250
|
|
Loans and financings
|
|
|
12,574
|
|
|
|
12,027
|
|
Taxes
|
|
|
29
|
|
|
|
28
|
|
Income tax and Social Contribution tax
|
|
|
728
|
|
|
|
735
|
|
Provisions
|
|
|
641
|
|
|
|
678
|
|
Post-retirement liabilities
|
|
|
4,736
|
|
|
|
3,954
|
|
PASEP / COFINS to be returned to consumers
|
|
|
1,124
|
|
|
|
1,087
|
|
Derivative financial instrumentsoptions
|
|
|
419
|
|
|
|
308
|
|
Derivative financial instrumentsSwap
|
|
|
|
|
|
|
29
|
|
Others
|
|
|
92
|
|
|
|
151
|
|
TOTAL EQUITY
|
|
|
15,939
|
|
|
|
14,330
|
|
Share capital
|
|
|
7,294
|
|
|
|
6,294
|
|
Capital reserves
|
|
|
2,250
|
|
|
|
1,924
|
|
Profit reserves
|
|
|
6,362
|
|
|
|
5,729
|
|
Equity valuation adjustments
|
|
|
-1,327
|
|
|
|
-836
|
|
Subscription of shares, to be capitalized
|
|
|
|
|
|
|
1,215
|
|
Non-Controlling
Interests
|
|
|
1,360
|
|
|
|
4
|
|
TOTAL LIABILITIES AND EQUITY
|
|
|
59,854
|
|
|
|
42,239
|
|
|
|
|
|
|
|
|
|
|
|
|
Av. Barbacena 1200 Santo
Agostinho 30190-131 Belo Horizonte, Minas
Gerais, 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.
|
123