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October 2008

Business Portfolio. Ensures Value Adding. October 2008.

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October 2008

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  1. Business Portfolio Ensures Value Adding October 2008

  2. Some statements in this presentation constitute “forward-looking statements” as defined by the American Securities Law, and they are subject to risks and uncertainties. “Forward-looking statements” are projections that may differ from definitive numbers and are not under our control. For a discussion of the risks and uncertainties as they relate to us, please see our 2007 Form 20F, in particular item 3, which contains “Key Information – Risk Factors.” Disclaimer All amounts are in accordance with Brazilian GAAP and are in compliance with CVM Instruction 469 of 2008, in accordance with the Law 11.638 of 2007.

  3. Agenda • Summary • Report • Background • Strategy Overview • Business Outlook • Financial Highlights • Our Strategy shows Solid Results • Market Recognition • Appendix – Regulatory Framework

  4. Agenda • Summary • Report • Background • Strategy Overview • Business Outlook • Financial Highlights • Our Strategy shows Solid Results • Market Recognition • Appendix – Regulatory Framework

  5. Brazilian GDP growth is driven by domestic market Investment Grade (S&P and Fitch) Economics • Largest Latin America economy • 8th largest world economy • GDP (2007): US$ 1.5 trillion (+5.4%) • GDP expected CAGR (5yrs): 4% • Flow of Trade (2007): US$ 281 billion • Inhabitants: 188 million • Area: 8.5 million km2 • Currency(1): Reais (BRL) – US$1 = R$ 2.17 • Reserves(1): US$ 200 billion Electric Power Industry • Power Generation • Installed Capacity: 102 GW 81% Hydro; 11% Natural Gas 2% Nuclear; .5% Coal 1% Oil; 5% Others • Power Transmission • National Network: 101,858 km • Peak Demand in 2007: 62.7 GWh/h • Electricity Distribution • Energy Consumption: 376,905 GWh 46% industries and 24% householders • 99% penetration countrywide • More than 50% of South America • Peak Demand comparable to UK BRAZIL Economic Development Acceleration Plan (PAC) • Federal plan to invest US$ 250 billion in the period of 2007-2010 • Electric Power Generation: US$ 35 billion • Electric Power Transmission: US$ 7 billion • Renewable Fuel projects(2): US$ 9 billion (2) Ethanol, Biodiesel and Alcohol pipeline • Industry Total Revenue(2007): • US$61 Billion • Source: BrazilianInstitute for GeographyandStatistics (IBGE), BrazilianElectricityRegulator (ANEEL), BrazilianAssociationofTransmissionCompanies (ABRATEE), EnergyResearchCompany (EPE). • As of October 8, 2008

  6. Cemig focuses on sustainable strategic expansion in growing Brazilian and international energy markets Power Industry • Largest electricity distributor • Third largest power generation group • Third largest power transmission group Chile Brazil • (2Q08 – Last 12 month) • Total assets: US$ 14.9 billion • Stockholders’ equity: US$ 5.9 billion • Net revenue :US$ 6.7 billion • EBITDA: US$ 2.6 billion • Net Income: US$ 1.2 billion Finances RR AP AM PA MA CE RN PB PI PE AC TO AL RO SE BA MT GO DF MG Generation ES MS SP RJ Transmission PR P Cemig G Free Clients SC Distribution RS 4 Power purchase P

  7. Broadening of CEMIG's area of activity, focusing on the electric industry Growth within Brazil's geographical area First steps towards international investments Expansion in line with Brazilian regulatory limits and sustainable growth Invest only in the power industry and gas distribution related business Addressing shareholders’ long-term interests: Dividend policy: minimum a 50%of net income payout and extraordinary dividends, provided cash availability Corporate governance focused on transparency and respect of minority shareholders’ interests Incorporation of our goals and commitments to our bylaws secures stability of the company's long-term planning Capex limited to 40% of EBITDA: Debt limited to 2x EBITDA (2.5 x with acquisitions) Debt limited to 40% of Total Capitalization (50% with acquisitions) Long Term Strategic Plan addresses sustainable growth…

  8. Investment policy to guarantee sustainable growth… • Pillars of our activity: • Focus on electricity sector and related activities • Profitability: return compatible with each business • Partnerships with strategic investors: corporate governance • Growth through new projects, long-term vision • Opportunities in electricity generation and transmission • Acquisitions, drivers for short-term growth • Investment Criteria Selection: • Investments that add value to our shareholders • Continuous technological and operational improvement • Best management practices • Guarantees to ensure profitability: • Investment only in power generation, transmission and distribution and gas projects that offer rates of return compatible with the risk of each business but higher than the level projected in the Strategic Plan, with the exception of legal obligations. • Operational expenses and revenues of electricity distribution companies, must be kept aligned to the tariff adjustments and reviews.

  9. Business portfolio seeks low risk exposure and ensures proper return – most of revenues are inflation protected Cemig Corporate Totals – 1H08 Net Income Gross Revenue Power Generation Electricity Distribution 2% 1 % 3% 2% • 13 companies • Revenue: R$ 1.198 billion • Net income R$ 424 million • Ebitda: R$ 817 million • Sales Volume 15,281 GWh • 76% free consumers • 24% distributors • Third largest in Brazil • 2 companies • Revenue R$ 6.150 billion • 88% captive market • 12% grid usage • Net income R$ 552 million • Ebitda R$ 1.035 billion • Sales Volume 22,452 GWh • Largest in Brazil (transport) 15% 2% 39% 51% 76% 5% Ebitda 2% 1% 41% 51% Gas Distribution 5% Power Transmission • 1 company • Revenue R$189 million • Net income R$21 million • Ebitda R$27 million • Sales Volume 450 million m3 • 4 % market share • Sixth largest in Brazil • 10 companies • Revenue R$ 185 million • Net Income R$ 60 million • Ebitda R$ 101 milion • 6% market share • Third largest in Brazil Others Holding Co. • 3 companies • Revenue R$ 75 million • Net income R$ 34 million • Ebitda R$ 50 million • Revenue R$ 249 million • Net income (R$ 71) million • Ebitda (R$ 66 million) • Reference: 1H08

  10. Ourpowermatrixensureshigheroperationalmargins and low environmental impacts Power Generation by Fuel Source Transmission lines 5,313 10% 4,829 km 2003 2007 Sub-transmission lines 16,676 3% 16,185 Power Generation km 2003 2007 44 521 Distribution lines 429,560 20% 164 359,304 178 6,678 km 16% 5,771 2003 2007 During last four years +1,000 MW power generation capacity added and 71,000 km of power network MW 2003 2004 2005 2006 2007 TOTAL

  11. Financial highlights Net income Ebitda margin (%) consolidated R$ million Ebitda* (R$ million) Dividend pay-out (% of Net income) ( * ) Ebitda of 2003 to 2005 is adjusted to reflect reclassification of account balances in accordance with changes in Plan of Accounts of Aneel (Brazilian electricity regulator). Dividends (R$ Million) Dividend Yield (%)

  12. Financial discipline to lower debt cost and reduce FX exposure Main Indices Consolidated Debt June 30, 2008 R$/million (1) Net Debt = Total Debt – Available – Regulatory Asset (RTE/BNDES) (2) As defined in loans contracts entered into with ItaúBBA Maturity Schedule Average real cost (%) Average period: 4.5 years

  13. Company's structure oriented towards electricity sector consolidation Operational excellence aligned with costs reduction Investment criteria defined by Strategic Plan to add value Risk management to ensure reliable processes Corporate governance a corporate value constantly evolving Financial management to improve credit quality and cost reduction Sustainability and governance contained in Company’s bylaws Committed to provide investors’ return on investment Results reflect long-term vision

  14. Agenda • Summary • Report • Background • Strategy Overview • Business Outlook • Financial Highlights • Our Strategy shows Solid Results • Market Recognition • Appendix – Regulatory Framework

  15. Key Key Key Transmission companies Transmission companies Transmission companies Distribution companies Distribution companies Distribution companies Generation companies Generation companies Generation companies Generation consortia Generation consortia Generation consortia Financial operations Financial operations Financial operations Non Non Non - - - profit profit profit Gas distribution Gas distribution Gas distribution Telecommunications Telecommunications Telecommunications Trading Trading Trading Holding company Holding company Holding company Services Services Services CIA. ENERGÉTICA DE MINAS GERAIS CEMIG´s Business Structure • Rio Minas Energia • Participações S.A. • 25% • CEMIG • Distribuição S.A. • 100% • CEMIG • Geração e • Transmissão S.A. • 100% • Usina Térmica • Ipatinga S.A. • 100% • Cia. Transleste • de Transmissão • 25% • Cia. de Gás de • Minas Gerais • 55,2% • Efficientia S.A. • 100% • Consortium da • Usina Hidrelétrica de • Aimorés • 49% • CEMIG PCH S.A. • 100% • Cia. Transirapé • de Transmissão. • 24,5% • Light S.A. • 52,25% • Consortium • AHE Funil • 49% • Axxiom Soluções • TecnológicasS.A. • 49% • Horizontes • Energia S.A. • 100% Cia. Centroeste Minas de Transmissão 51% • Light Serviços • de Eletricidade • S.A. • 100% Light Energia S.A. 100% Consortium da Usina Hidrelétrica de Igarapava 14,5% • CEMIG Trading S.A. • 100% • Sá Carvalho S.A. • 100% • Cia. Transudeste • de Transmissão • 24% • Light Overseas • Investments • Ltd. • 100% Lightger Ltda. 100% • Consortium • AHE Porto Estrela • 33,33% • Centro de Gestão • Estratégica de • Tecnologia • 100% • Rosal Energia S.A. • 100% • Transchile Charrúa • Transmisión S.A. • 49% LIR Energy Ltd. 100% Lighthidro Ltda. 100% • Consortium • AHE Queimado • 82,5% • Empresa de • Infovias S.A. • 100% • Usina Termelétrica • Barreiro S.A. • 100% • Empresa Catarinense • de Transmissão • de Energia S.A. • 7,49% • Light Esco • Prest. Serviços • Ltda. • 100% Itaocara Energia Ltda. 100% • Hidrelétrica • Cachoeirão S.A • 49% CEMIG Serviços S.A. 100% • CEMIG • Capim Branco • Energia S.A. • 100% • Empresa Regional • de Transmissão • de Energia S.A. • 18,35% • Instituto Light • de Desenvolvim. • Social e Urbano • 100% • Guanhães Energia S.A. • 49% Empresa Paraense de Transmissão de Energia S.A. VS: 25% TS: 18,83% • Consortium • Capim Branco • Energia • 21,5% • Madeira Energia S.A. • 10% • Empresa Norte • de Transmissão • de Energia S.A. • 18,35% • Hidrelétrica Pipoca S.A. • 49% Empresa Amazonense de Transmissão de Energia S.A. VS: 25% TS: 16,63% 43 Companies 07 Consortia • Baguari EnergiaS.A. • 69,39% • CEMIG Baguari EnergiaS.A. • 100% VS = Voting Shares TS= Total Shares • Consortium • AHE Baguari • 34% Position as of july 2008 Note: Two companies – Central Hidrelétrica Pai Joaquim S.A. and Central Termelétrica de Cogeração S.A. – are not included as they are in the process of being wound up.

  16. CIG/2007 300 US$ million CIG.C/2007 82 US$ million CMIG4/2007 680 CMIG3/2007 37 R$ million R$ million 16th BOVESPA XCMIG/2007 1st Electricity sector € 1.2 million 5% in volume on Bovespa Strong shareholders base assures liquidity Latibex XCMIG NYSE CIG.C CIG ADR ADR Bovespa CMIG3 CMIG4 Average Daily Trade (2ndQ2008) Bovespa: RS 60 million NYSE: US$ 33 million US$ mn (*) US$ 11.2 billion Preferred Shares: CMIG4, CIG, XCEMIG Common Shares: CMIG3, CIG.C Market Cap. (*) On June 30, 2008

  17. Shareholders in 45 countries EUROPA Luxembourg UK Spain Switzerland Ireland Guernsey Virgin Islands Jersey Holland France Norway Denmark Italy Sweden Germany Belgium Austria Portugal Poland Romania ASIA Brunei China Singapore South Korea Japan Malasia North America Canada United States Central America Bermuda Bahamas Cayman Islands Mexico Turks & Caicos Islands Middle East Saudi Arabia United Arab Emirates Kuwait Lebanon Oman Syria South America Argentina Bolivia Brazil Chile Uruguay OCEANIA Australia 115,000 September/2008 shareholders

  18. Total shares 486,461 thousand Common 212,622 thousand Preferred 273,839 thousand MG 51% International investors 68% SEB(*) 33% Local investors 29% International investors 6% MG and others 3% Local investors 10% Shares in Treasury 207 thousand Share nominal value = R$5.00 The blend of shareholders provides long term perspective • Our shareholder diversity provides a global business management vision focused on sustainability of the company's activities • Listed in major stock exchanges • BOVESPA (Brazil) • NYSE (USA) • LATIBEX (Spain) Total Shares ON 44% PN 56% ON 10% 6% 51% 33% PN 3% 33% 64% Local investors SEB(*) International investors MG (*) Controlled by international investors ADR outstanding aproximately 16% of capital 1 ADR = 1 share in Bovespa

  19. Corporate Governance: implementation of best practices Highlights • Code of ethics; • 6 BoD members appointed by minority shareholders; • BoD approves all investments above R$5mn; • BoD approves nomination of external auditors; • Executive Board coordinates external auditor selection process (in compliance with the Brazilian Procurement Legislation for state owned companies); • Fiscal Council plays Audit Committee key role, including: • Accounting practices; • Dividend policy; • Prevention of fraud; • Financial statements analysis. • SOX compliance: • Sections 302 and 404 Certification; • BOVESPA level 1; • NYSE listed company practices.

  20. Agenda • Summary • Report • Background • Strategy Overview • Business Outlook • Financial Highlights • Our Strategy shows Solid Results • Market Recognition • Appendix – Regulatory Framework

  21. Expansion: Acquisition of Light S.A. in 2006, through RME, a company formed in partnership with private investors, achieved 100% Pay Back in 2008 Over 3.8 million consumers in 31 municipalities in the state of Rio de Janeiro; Third largest electricity distributor in Brazil. Acquisition of TBE, a group of five power transmission companies located in the North and South of Brazil, totaling 2,000 km of transmission lines. 20% stake in 2006 + 20% in 2008 Acquisition of Lumitrans (40 km, 525 kV) and STC (195 km, 230 kV) in 2008 Construction of a transmission line in Chile. Generation capacity increased more than 900 MW over the last 12 months Baguari power plant construction started – 140 MW (34% Cemig); Small Hydros Program: 91MW (49% Cemig) Santo Antönio Power plant 3,150 MW (10% Cemig) Generation greenfields Feasibility studies: more than 4,000 MW of Hydros, Wind and Gas Partnership with Light in Hydro Generation: 237MW, R$856m in investments (total) Strategic Plan Results

  22. Dividends: R$ 1.3 billion were paid in 2007, representing 80% of 2006 net income: Interest on Equity: R$ 169mn ; Complementary dividend: R$ 716mn; Extraordinary dividend: R$ 497mn; R$ 434 million paid in June,08, as the first part of the total R$ 868 million approved by General Shareholders Meeting to be paid in 2008, representing 50% of 2007 net income Strategic Plan Results Dividends (R$ Million) Dividend Yield (%)

  23. Strategic Plan Results • Solid Financial Situation: • Complying with Strategic Plan commitments; • Return on investment compatible with each business risk; • Extended debt profile and lower costs; • Last twelve month Ebitda reaching R$4,195 mm Ebitda margin (%) Net income R$ million Ebitda (R$million)

  24. Performance Indicators Economic Profit (R$ million - Consolidated) • Strategy of growth through acquisitions boost economic profit *Calculated to represent the opportunity cost of the period. Not a reference for economic-financial evaluation calculations.

  25. Continuous improvement of our KPI Key debt indicators (%) Leverage (%) Debt / (Debt + Stockholders’ equity) Key performance indicators in line with Long Term Strategic Plan Earnings per share (R$) Dividend payout (%)

  26. Agenda • Summary • Report • Background • Strategy Overview • Business Outlook • Financial Highlights • Our Strategy shows Solid Results • Market Recognition • Appendix – Regulatory Framework

  27. Power generation More competitive environment Regulated market : long term contracts with distributors sales through public auctions. Un-regulated market : medium term contract with large clients. Contract terms bilaterally negotiated. Power transmission Most successful regulation Stable cash flow: fixed income alike investment Electricity distribution Strongly regulated Operating expenses: Full pass-through mechanism. Yearly adjustment for non controllable costs and inflation. 5 year rate setting review: sharing productivity gains with users Revenues come from grid use and sales to captive market Natural gas distribution Same concession area of Cemig Distribuição Partnership with Petrobrás (Petrobrás 40% and Cemig 55%) Telecommunication backbone services Synergy: usage of power transmission lines for fiber optics cables 60% of capacity used by Cemig Group Basics of our business portfolio

  28. Power Generation: Cemig Cemig´s consolidated generation assets (June/08) • Cemig provides 7% of Brazil’s generation capacity and supplies 19% of Brazil’s free customers market

  29. The power purchased to meet client´s needs Cemig GT - Consolidated capacity breakdown Average MW Planned purchases Own resources (concessions to be renewed for the 2nd time) Bilateral purchase contracts / trading Own resources

  30. Our power generation contracts start re-pricing in 2010 Cemig GT - Balance of supply and demand Detailing of requirements Own capacity Average MW Guidance for 2008-2012 Constant prices as of June/08 R$/MWh Planned purchase Uncontracted power Probable renewals of old contracts to free consumers and traders Free Market New Contracts (market share increase) Free Market Sales (old contracts to free consumers and traders) Sales to be decided (concessions to be renewed for 2nd time) Regulated Market Sales (distributors) Pass-through (operational agreement with self-producers) • Actual contract prices + forward price trend for the re-contracting. • After 2014 all free customer’s contracts will have been re-priced

  31. New Energy Regular Auctions: 2008 Auctions Reserve - August 14th 513 MWAvg from 2012 15 year long contracts Price: R$58/MWh + R$96/MWh (Competitiveness Index > ICE+ Variable Expected Revenue > RVE) A-3 – September 17nd 1,076 MWAvg from 2011 15 year long contracts Average Price: R$128.42/MWh A-5 - September, 30th 3,125 MWAvg from 2011 15 year long thermo contracts and 30 years long for hydro Thermo Price: R$145.47/MWh Hydro price: R$ 98.98/MWh Power Generation Auctions • New Energy Special Auctions – Madeira River Projects: • Santo Antônio Power Plant: December 10, 2007: • 3,150 MW of installed capacity • 2,218 MWAverage of energy > Capacity Factor (CF) of 69%; • Price: R$78.87/MWh (equivalent to R$99/MWh for a traditional 55% CF Hydro Power in Brazil) • Winner consortium: • 10% Cemig • 39% Furnas • 20% Equity Fund (Santander-Banif) • 17.6% Odebrecht • 12.4% Andrade Gutierrez • Start-up schedule: • 140 MW in 2012; 860 MW in 2013; 860 MW in 2014; 860 MW in 2015 and 430 MW in 2016 • Installation license granted on 08/12/08 • Jirau: 3,326 MW of installed capacity: May 19 2008: • start-up in 2013 • Winner Consortium: EnergiaSustentável leaded by Suez • Price: R$ 71.40/MWh • Effective power of 2,000 Average MW • Capacity factor of 60% • Old Energy Auction: • Every year on last working day of November; • Power delivery from the next year on; • 8 year long contracts (can be from 3 to 15 years).

  32. Power Generation Auctions by Fuel Type

  33. Business Opportunities: Small Hydros Program • Short-term supply alternative • Successful funding format: • 30% Equity • Cemig 49% • Private Investor 51% • 70% Debt • BNDES • Current status • 6 plants contracted : 91 MW • PCH Cachoeirão 27 MW • PCH Pipoca 20 MW • PCH Senhora do Porto 12 MW • PCH Dores de Guanhães 14 MW • PCH Jacaré 9 MW • PCH Furtuna II 9 MW • Investments of R$ 380 million • Under Negotiation • 16 Plants • 236 MW os installed capacity Àrea reservada para o mapa (*) PCH = Small Hydro Power Plant

  34. Approximately 75% of the plants are located in the heavy-industry region known as the Minas Triangle Generation available from April to September, the dry season for the hydro power plants Plants Quantity Generatn. (MWa*) Surplus (MWa*) 26 530 420 Existing 59 2046 1755 Expected With Protocol 34 1191 953 Without Protocol** 13 591 591 Other*** 12 264 211 TOTAL 85 2576 2175 * Average generation in 6 months of the year ** Data provided to Cemig on consultation access *** Crushing data from 9 mills with no expected startup date Note: Protocol entered into with the State of Minas Gerais Business Opportunities: biomass cogeneration Sugar and ethanol potencial in Minas gerais

  35. Power Transmission: Cemig (June/2008) • Operational Start-up of two transmission lines in 2007: • Itutinga-Juiz de Fora (Transudeste) - 345 kv, 34 km; • Irapé-Araçuaí (Transirapé) - 230 kv, 15 km. • Start-up of Charrúa – Nueva Temuco transmission line in 2008: • 220 kV, 205 km • With acquisition of the interest held by Brookfield in TBE (still depends of the approval by ANEEL) • Cemig Corporation will stand for 6% of Brazil´s transmission capacity and • will be the third largest transmission company.

  36. Power Transmission tariff review and auctions • June 27th auction results: • Largest auction organized by Aneel since 1998 • Average discount of 20.18% • 3,000 km (19 lines and 20 substations) to be added to the National Grid among 12 Brazilian States • Estimated total investment of R$ 2.86 billion • Operational start-up ranging from 15 to 36 months • Cemig´s consortia won a set of 5 lines, with 775 km and 2 substations, operating at 230 kV, annual revenue of R$ 26 million • October 3rd auction results: • Average discount of 37.62% • 356 km (6 lines and 7 substations) to be added to the National Grid among 6 Brazilian States • Estimated total investment of R$ 500 million • Operational start-up ranging from 16 to 24 months • Allowed return on asset approach (existing assets in 1995): • Benchmark WACC: currently 8.45%; • Tariff review: WACC enlarged to 9.18%; • Asset base review every 10 years (2 cycles) • 2007 Tariff Review: • Due since 2005; • New methodology disclosed on March, 09, 2007; • Small part of Cemig´s revenue was reviewed. As a result our total transmission revenue was reduced by 3%; • Asset base review shall occur in 2009, with effects retroactive to 2005

  37. Electricity Distribution: Cemig (June/2008) • Cemig supplies 10% of Brazil´s captive market • Largest distribution company (by km of lines, number of consumers and transported energy)

  38. Electricity Distribution tariff review • Allowed return on asset approach: • Benchmark WACC: was 11.26%; • Tariff review: WACC of 9.95%. • New Tariff Review methodology: • Reference company model disclosed: • Black box opened. • Asset base review every 10 years (2 cycles): CEMIG in 2013; • Regulatory energy losses and delinquency rate specific for each concession area; • Special obligation financed asset depreciation will be granted in the long run; • X Factor: excluded the influence of Consumers Satisfaction Index. • Cemig Distribution Companies tariff reviews: • Cemig Distribuição: -12,24% valid from April 8, 2008 forward. • Regulatory Ebitda Margin: 21% • Losses coverage: sufficient • Market Growth: 3.17% p.a. ( less risk than in 2003) • X Factor (Xe) : 0.84% • Light: November, 2008.

  39. CAPEX • New investment program: • Transmission assets expansion (acquisitions)> R$ 500 million • Gasmig expansion (capital contribution) > R$ 94 million Estimated amounts as per company planning for the 2008/2012 cycle.

  40. Planned expansion

  41. Light for All Program – Phase 2 R$ thousand • Expansion of the Light for Everyone Program is made possible because of government subsidies.

  42. Lower Upper Lower Upper Year Year limit limit limit limit Lower Upper 2008 1,745 1,885 2008 1,725 1,875 Year 2009 1,760 1,900 2009 1,470 1,620 limit limit 2008 4,005 4,360 2009 3,844 4,207 2010 4,139 4,529 2011 4,492 4,940 2012 4,730 5,228 Lower Upper Year limit limit 2008 620 720 2009 650 750 EBITDA Guidance 2008/2012 (Constant as of June 2008 R$ million) Power Generation and Transmission Company Consolidated figures Consolidated including amounts for Holding companies and affiliates Distribution Tariff Review Electricity Distribution Company Holdings

  43. Agenda • Summary • Report • Background • Strategy Overview • Business Outlook • Financial Highlights • Our Strategy shows Solid Results • Market Recognition • Appendix – Regulatory Framework

  44. How we will finance our growth • Our strategy encompasses key elements in financing our expansion • We will seek partners who can add value via: • reduced need for equity; • transparency of the economic/financial projects valuation; • access to low-cost financing. • Maximization of cash management: • Generation of surplus; • Rollover of maturing debt. • Search for the best opportunities to raise funds to finance expansion; • Continual improvement of our credit risk rating.

  45. Indicators show superior credit quality • Debt management meets the following directives: • Preservation of long-term credit quality at levels sufficient to have a low-risk rating • Rating: Aa3.br by Moody’s and A+.br by Fitch • Reduction of exposure to exchange rate risk • Extension of debt maturity profile Main Indicators R$/million (1) Net Debt = Total Debt – Available – Regulatory Asset (RTE/BNDES) (2) As defined in loans contracts entered into with ItaúBBA

  46. Opportunities: financial market high liquidity • Bank Loans • Debt rollover • Assignment of receivables • Local Capital Market • Debentures are the major funding source (long-term, denominated in Wholesale Prices Index [IGP-M]) • FIDC (receivables fund) • Multilateral Agencies • IFC, JBIC, CAF • Long Term • Tax breaks on remittance of interests • International Capital Market • Eurobonds • Perpetual bonds

  47. Agenda • Background • Strategy Overview • Business Outlook • Financial Highlights • Our Strategy shows Solid Results • Market Recognition • Appendix– Regulatory Framework

  48. Results of Cemig’s participation in RME (Light acquisition) Sale of Option Rights (*) Dividends Received Acquisition price (CEMIG’s share) R$ 67.6 R$ 26.5 R$ 82.7 R$ 174 R$ million Aug. 10, 2006 Nov. 30, 2007 Mar. 31, 2008 Jun. 20, 2008 • (*)The amount related to financial compensation due to Cemig’s renunciation of exercising the option to purchase RME’s partners rights over the Light’s generation assets, that will be paid as shown below: • One partner already paid its part in full in July 2008 • The two other partners will pay the amount in parcels equal to 10% of the dividends distributed to them, and the period for total payment cannot be more than 9 years. The amounts are corrected by CDI + 1% per year.

  49. Consolidated net revenue • Growth in net revenue reflects business diversification, and positive effects of acquisitions (RME/Light S.A. and TBE companies) • Cemig Distribution provides 58% of total net revenue

  50. Operating Expenses Cemig Distribuição contributes with 65 % of total costs

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