1

• Investor Relation Directorship Investor Relation Directorship • Financial and Energy Trade DirectorshipFinancial and Energy Trade Directorship

FINANCIAL STATEMENTSFINANCIAL STATEMENTS33rdrd Quarter 2000 Quarter 2000

2

HIGHLIGHTS

OPERATING PERFORMANCE

INCOME STATEMENT

OUTLOOK

A

G

E

N

D

A

3

Cemig at the end of September/2000

• Net Profit R$ 324 million• Shareholders’ Equity R$ 7,727

million• Debt R$ 1,488 million • Capex R$ 345 million• Generating Installed Capacity 5,554 MW• Own Power Facility Output 23,661 GWh• Sales to final customers 28,077 GWh• Customers 5,085,644

Cemig TodayCemig Today

HIGHLIGHTS

4

Net Operating Revenue

Operating Expenses

EBITDA

Net Income

Operating Margin

EBITDA Margin

Sales ( GWh)

Values in Thousands of Reals

HIGHLIGHTS

2,666,443

2,147,882

879,802

324,067

19.4%

33.0%

32,404

Nine months endedSeptember 30, 2000

27.6%

19.4%

41.2%

39.6%

10.7%

6.5%

5

 

INSTALLED OUTPUT CHANGEFACILITIES CAPACITY

 

 

KW MWh 2000/1999

HYDROELECTRIC POWER PLANTS5,381,684 22.833.778 10.9

1. SÃO SIMÃO 1,710,000 9.180.090 13,3 2. EMBORCAÇÃO1,192,000 2.653.103 3,3 3. NOVA PONTE

510,000 2.079.312 7,4 4. JAGUARA424,000 2.317.380 0,6 5. TRÊS MARIAS396,000 1.683.208 22,4

6. VOLTA GRANDE 380,000 1.778.115 5,0

7. MIRANDA 408,000 1.800.875 19,9 8. SALTO GRANDE102,000 363.188 17,2

9. OTHERS 259,684 978.508  

THERMAL POWER PLANTS 131.440 622.979 59,7

WIND FARM 1.000 210 -68,3TOTAL5.514.124 23.456.967 12,8

IPATINGA THERMAL PLANT 40.000 204.899  

TOTAL 5.554.124 23.661.866  14,0

       THIRD PARTY’S POWER PLANTS OPERATED BY CEMIG 379.550 1.532.047  

A RECORD OUTPUT

HIGHLIGHTS

6ENERGYBALANCEENERGYBALANCE

HIGHLIGHTS

1.531 Gwh

Operation ServicesContracts Output

721 Gwh

Short Term Energy

840 Gwh

InitialContracts

Itaipú10.203 Gwh

11.764 GwhEnergy Purchase

216 Gwh

Ipatinga

Cemig23.457 Gwh

Cemig’s Plants23.673 Gwh

36.968 Gwh

Total AvailableEnergy

1.207 Gwh

OperationServices

Contracts

Losses 3.357 Gwh

9,1%

640 Gwh

InitialContracts

3.859 Gwh

Short TermEnergy

4.499 Gwh

Wholesale

13.780 Gwh

FreeConsumers

Market

14.326 Gwh

CaptiveMarket

32.404Gwh

Energy Sold

7ENERGYSOLD – GWh

HIGHLIGHTS

2.700

2.800

2.900

3.000

3.100

3.200

3.300

3.400

jan feb mar apr may jun jul aug sep oct nov dec

1998 - R 1999 - R 2000 - P 2000 - R

5,4% per year

4,8%last 12 months

Mercado Faturado

8

HIGHLIGHTS

Residential consumers have slowed the growth

3Q/2Q

2000/%

3Q00/

3Q99/%

Jan/Sep

00/99/%

Sales to end Consumers 4.9 4.9 4.8

Industrial 2.1 6.6 6.6

Residential 0,5 1.2 1.2

Commercial (2.7) 6.5 6.5

Rural 25.1 1.0 1.0

Others 2.8 2.4 1.9

9

28.07

7

26.78

1

2.0161.979

1.2281.217

2.6452.483

16.534

15.517

5.6535.585Res

Consumption (GWh) and Growth Rates (%)

1999 2000

Category

Ind

Com

Rur

Oth

6,5%

1,2%

6,6%

1,9%

Year to Sep.

HIGHLIGHTS

4,8%

1,0%

10

HIGHLIGHTS -6

-5

-4

-3

-2

-1

0

1

2

3

4

5

6

7

Consumption Increase (%) Last 12 months - Sep/00

Commercial

Industrial

Total

Residential

11

SALES

HIGHLIGHTS

RETAIL SALES

7500

8000

8500

9000

9500

10000

1Q 2Q 3Q 4Q

GW

h

.

1997 1998 1999 2000

12PERFORMANCERATIOS

HIGHLIGHTS

DESCRIPTION 1998 1999GO

2000

UP TO

SET/00

EBITDA – R$ million 1,033.0 852.1 1,209.5 879.8

EBITDA Margin (%) 43.2 29.8 33.5 33.0

Expenses/MWh) – R$ 50.2 74.7 76.1 73.4

Net Operating Margin (%) 20.2 14.1 19.9 19.4

ROE (%) 6.4 0.4 6.9 4.5

Consumers per Employee 391.3 418.5 447.2 439.9

Energy Sold per Employee/MWh 246.5 254.6 301.3 305.0

13

Operating Performance

14.923

12.550 11.947 11.732 11.560

1996 1997 1998 1999 set/00

NUMBER OF EMPLOYEES

282

352391

419 439

1996 1997 1998 1999 set/00

CUSTOMER PER EMPLOYEES

CEMIG TODAY

14NET INCOME GROWTH

OPERATING

-315

64113

172

82

136106

-400

-300

-200

-100

0

100

200

R$

mil

lio

n

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

15

Net IncomeR$324 million

Net Losses(R$138 million)

Non-Operating Result(R$42 million)

Financial Expenses(R$246 million)

Operating ResultR$519 million

Non-Operating Result(R$52 million)

Financial Expenses(R$429 million)

Operating ResultR$290 million

2000 1999OPERATING

P&L STATEMENTS NINE MONTHS ENDED SEP, 30

16

GROWTH RESUMED IN 2000

NET REVENUE

OPERATING

400

500

600

700

800

900

1000

R$

mil

lio

n

.

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

17

OPERATING

Sales Volume

20%

9%4%

7%

60%

Industrial Residential CommercialRural Others

Revenues

33%

15%

4%10% 38%

SALES BREAKDOWN

18

Gross Revenue

R$3,567 million

Gross SalesR$3,266 million

WholesaleR$127 million

T Grid RevenueR$104 million

Other RevenuesR$70 million

Year to September 30, 2000

OPERATINGREVENUE

RESULTS

25.9%

21.1%

154.4%

160.2%

49.2%

DeductionsR$902 million

Net RevenueR$2,665 million

21.3% 27.6%

ICMSR$698 million

RGRR$76 million

COFINSR$105 million

PASEP + ISSR$23 million

26.8%

29.3%

24.5%

19.5%

19

Operating ExpensesR$2,148 million

Energy PurchaseR$602 million

LaborR$377 million

DepreciationR$361 million

CCCR$205 million

T Grid ChargesR$179 million

Up to September 30, 2000

OPERATINGEXPENSES

RESULTS

19.4%

11.6%

11.6%

8.5%

107.2%

83.8%

Outsorced servicesR$135 million

Pension Fund Contrib.R$75 million

SuppliesR$49 million

RoyaltiesR$ 28 million

ProvisionsR$19 million

29.3%

23.4%

27.1%

19.6%

(80.1)%

Other ExpensesR$ 118 million

65.9%

20

Operating ExpensesR$2,148 million

Energy PurchaseR$602 million Labor

R$377 million

DepreciationR$361 million

CCCR$205 million

T Grid ChargesR$179 million

Up to September 30, 2000

OPERATING EXPENSES

RESULTS

19.4%

11.6%

8.5%

107.2%

83.8%

Outsorced servicesR$135 million

Pension Fund Contrib.R$75 million

SuppliesR$49 million

RoyaltiesR$ 28 million

ProvisionsR$19 million

29.3%

23.4%

27.1%

19.6% (80.1%)

Other ExpensesR$ 118 million

65.9%

NON-CONTROLLABLE 33,6%CONTROLLABLE

9,0%

11.6%

21

OPERATING EXPENSES

OPERATING

400

450

500

550

600

650

700

750

800

R$

mil

lio

n

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

23

Financial Result(R$ 245,5 million)

IncomeR$109,4 million

Expenses(R$327,3 million)

Foreign Currency Losses

(R$27,7 million)

IncomeR$229,3 million

Expenses(R$269,1 million)

Foreign CurrencyLosses

(R$389,5 million)

Financial Result(R$429,3 million)

FINANCIALRESULTS

RESULTS

Year to Sep/00 Year to Sep/99

24

RESULTS

FINANCIALRESULTS

Values in Thousands

SEP/00 SEP/99 VAR. (%) INCOME 109.516 229.324 (52,2)CRC assignment agreement - Interest 59.192 43.293 36,7 CRC assignment agreement – Monetary Var. - 57.241 - Charges on overdue bills 21.846 22.517 (3,0)Short term investment income 27.467 21.635 27,0 Reversal of COFINS tax provision - 76.722 - Other Income 1.011 7.916 (87,2)

EXPENSES (140.277) (269.098) (47,9)Tax Charges (14.971) (42.215) (64,5)Interest Charges (106.139) (111.887) (5,1)Local currency inflationl losses (16.957) (34.203) (50,4)CPMF (9.928) (4.077) 143,5 Marketable security loss provision 16.954 (20.368) 183,2 Pre-paid energy sales (8.383) (62.053) (86,5)Equity Income (853) 5.705 -

INTEREST ON EQUITY (187.000) - -

FOREIGN CURRENCY DEBT LOSSES (27.770) (389.539) (92,9)Loans and Financing (25.136) (381.071) (93,4)Brazilian Treasury Notes 1.985 30.590 (93,5)Expenses - Suppliers (4.619) (39.058) (88,2)

TOTAL (245.531) (429.313) (42,8)

25

UPTURN IN 2000

OUTLOOK 0

500

1000

1500

2000

2500

3000

R$

mil

lio

n

.

1996 1997 1998 1999 3Q 2000

Net Income Debt EBITDA

26

38,4

119,0

541,8

179,7

0

100

200

300

400

500

600

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014-2024

Moeda Nacional Moeda Estrangeira

R$ Million as of September 30, 2000R$ Million as of September 30, 2000

DEBT MATURITY

OUTLOOK

LOCAL CURRENCY FOREIGN CURRENCY

27

OUTLOOK

DEBT ROLLOVER

STN AUTHORIZATION

DATE DESCRIPTION US$

721/COREF/DIREF 01/03/2000 Austria II (38.400.000,00)

3092/COREF 05/07/2000 ABN AMRO (18.313.541,66)

4250/COREF 12/09/2000 Citibank (38.000.000,00)

4726/COREF 13/10/2000 Banco do Brasil (35.500.000,00)

28

OUTLOOK

6%

8%

10%

12%

14%

16%

18%

20%

22%

24%

Mar-98

Apr-98

May-98

Jun-98Jul-98Aug-98

Sep-98Oct-98

Nov-98

Dec-98

Jan-99

Feb-99Mar-99

Apr-99

May-99

Jun-99Jul-99

Aug-99

Sep-99

Oct-99

Nov-99

Dec-99

Jan-00Feb-00Mar-00

Apr-00

May-00

Jun-00Jul-00

Aug-00

Sep-00Oct-00

D A T E

YIE

LD

(p

.a.)

CEMIG - 2004 BRASIL - 2001

EUROBONDSEUROBONDS

Cemig’s bonds show strong correlation with sovereign bonds

29

OUTLOOK

CAPITAL EXPENDITURE

R$ MILLIONUP TO

SEP/2000

TOTAL 345.375

1. Generation 42.614

2. Transmission 5.555

3. Distribution 262.958

4. Other Facilities 34.248

30

OUTLOOK

POWER PROJECTS

% CEMIG MW

CEMIG

FUNDING

R$ Mi

ESTIMATED START-UP

DATE

UHE Sá Carvalho 100 78 87 Oper.

UHE Porto Estrela 33 112 24 Sep/01

UHE Poço Fundo 100 21 8 Mar/02

Co-generation Mannesmann 49 13 7 Jun/02

UHE Pai Joquim 49 23 9 Dec/02

UHE Queimado 65 105 55 Apr/03

UHE Aimorés 49 330 151 May/03

UTE Sul Minas 31 500 300 Sep/03

UHE Funil 49 180 115 Aug/04

UHE Irapé 49 360 180 Apr/05

TOTAL 1722 936

Infovias 49 88

Gasmig 96 13

31

G E N C O1 0 0 %

5 ,5 5 4 M W

T R A N S C O1 0 0 %

4 ,5 0 0 K M

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

5 .1 m illio n clien ts

G A S M IG9 5 %

1 .8 M M M 3 /d a y

P o rto E strela3 3 %

1 1 3 M W

IN F O V IA S4 8 %

A im o rés4 9 %

3 3 0 M W

Ip a tin g a1 0 0 %

4 0 M W

C E M IGH o ld in g C o m p a n y

Future structure to meetregulatory requirements

Porto Estrela: work in progress

OUTLOOK

32

CRC Renegotiation

• Longer term : 25 to 30 years

• Higher interest rates

• Commit State dividends to repay

• Preserve present value

OUTLOOK

33

END